Gray Media, Inc. · NYSE:GTN
Gray Media — Gray Television — Investor Presentation (May 2021)
26 slides from Gray Media's investor presentation, May 17, 2021
Slide 1: Gray Television, Inc. Investor Presentation
Gray Television, Inc. Investor Presentation NYSE:GTN May 2021 Updated for March 31, 2021 Financial Information 4370 Peachtree Road, NE, Atlanta, GA 30319 | P 404.504.9828 | F 404.261.9607 | www.gray.tv 0
Slide 2: Leading the Industry with the Highest Quality Portfolio of Local Television Stations
GRAY TELEVISION, INC. Leading the Industry with the Highest Quality Portfolio of Local Television Stations Financial data reflects results “as reported” except where “Combined Historical Basis” (or “CHB”) is noted. Revenue is presented net of agency commissions. Ratings data derived from Comscore, I
Slide 3: Gray Announces Two Acquisitions Transforming It Into the Nation's Second Largest Broadcaster
Gray Announces Two Acquisitions TV markets reaching Transforming It 113 36% US TVHH Into the Nation’s 89% Markets with #1/#2 Ranked Stations Second Largest Broadcaster 2
Slide 4: Gray Television's New National Footprint
Gray Television’s New National Footprint 3
Slide 5: Two Excellent Acquisitions
Two Excellent Acquisitions February 1: Gray to Acquire Quincy Media Combination Highlights(1) ▪ On February 1, 2021, Gray announced its acquisition of Quincy Media, Inc. for $925 million in cash. On April 29, 2021, Gray announced the divestiture of 10 of Quincy’s stations in seven overlap markets to
Slide 6: Combined Company Snapshot
Combined Company Snapshot ($ in Millions) Meredith Local Media Group Pro Forma Gray + Quincy (1) Gray + RemainCo (RemainCo) Impact Financial Profile 2019 / 2020 CHB Blended Net Revenue $2,372 $770 $3,141 32% 2019 / 2020 CHB Blended OCF $889 $286 $1,230 (2) 38% % Margin 37% 37% 39% Scale Markets 101
Slide 7: Gray Will be the Second Largest TV Broadcast Group with the Highest Quality Assets
Gray Will be the Second Largest TV Broadcast Group with the Highest Quality Assets 2019 / 2020 CHB Blended Adj. EBITDA(1) $1,837 $1,230 $959 $925 TV Broadcast Affiliate $889 Group Owners $660 $435 $320 $286 $180 (4 ) (4 ) (5 ) Nexstar Gray + Sinclair (TV) TEGNA Gray + Scripps Hearst Cox Media Meredi
Slide 8: An Industry Leading Power
An Industry Leading Power The following data is for Gray Television, Inc. BEFORE giving effect to the pending Quincy and Meredith Acquisitions. 7
Slide 9: Diversified Revenue
Diversified Revenue Approximate Advertising 2020 Revenues Revenue Contributions 2019-2020 3% 3% Local 9% Local News National Network Prime 32% 13% Political 3% Network News 36% 50% Retransmission 9% Network Sports Production Companies 8% Syndication 16% 18% Other Other-TV Stations 2020 Big 4 2020 20
Slide 10: Well Positioned for Political Revenue
Well Positioned for Political Revenue Political Revenue Per TV Household Gray’s Local News Stations Serve the Most Competitive $17.57 Political Areas 2021 Gubernatorial Races (2) $9.63 Gray Stations in 4 VA markets. $8.80 2022 Gubernatorial Races (37) 2016 2018 2020 Gray stations in 28 states: AK, A
Slide 11: Strong Network and Distribution Positions
Strong Network and Distribution Positions MVPD Subscribers Year-End Retransmission Revenue ($ in millions) Renewal Retransmission Revenue Schedule Retransmission Expense (“Reverse Comp.”) 55% - 2020 Retransmission Revenue net of Expense (and 2023) $1,000 $867 $867 25% - 2021 (and 2024) $796 $799 $80
Slide 12: Successful Digital Ventures
Successful Digital Ventures RECORD BREAKING GROWTH FOR OVER 1,000 CHANNELS GRAY’S PLATFORM IN 2020 OVER 2019: STREAMED ACROSS ALL PLATFORMS 2020 SESSIONS: +24% 2020 VIDEO PLAYS: +13% 2020 USERS: +37% 2020 PAGE VIEWS: +13% 1.1 BILLION MONTHLY AGGREGATE USERS IN 2020 Gray’s in-house Digital Agency Ser
Slide 13: Consistent Growth (As Reported Basis)
Consistent Growth (As Reported Basis) ($ in millions) Revenue 369% Net Income 754% $3,000 $450 $410 $2,381 $400 $2,500 $2,122 $350 $2,000 $300 $262 $250 $211 $1,500 $179 $1,084 $200 $812 $883 $150 $1,000 $508 $597 $100 $48 $62 $500 $39 $50 $0 $0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017
Slide 14: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Presidential Non-Election Midterm Election Non-Election Presidential 2019 CHB 2020 Election Year Year Year 2018 OCF Year 2019 OCF Election Year Average 2016 OCF Buildup 2017 OCF Buildup Buildup Buildup 2020 OCF Buildup FCF Per Diluted Share FCF Per Dil
Slide 15: Successful Integration of Acquisitions And Meaningful Deleveraging
Successful Integration of Acquisitions And Meaningful Deleveraging Financial Leverage Net of All Cash (as defined in our Senior Credit Facility) 6.0x Guidance YE 2021(1) Net 5.1x Leverage Ratio: 4.8x 4.4x 3.4x 4.2x 3.95x 3.88x Approximately 5.3x Projected total debt 2.9x 3.0x 2.4x (excluding preferr
Slide 16: Staggered Debt Maturity Profile
Staggered Debt Maturity Profile No Maturities until 2024 ($ in Millions) $2,500 $300 Million Revolver Due Jan 2026 ($299 Million Undrawn; $1 Million Letter of Credit Issued) $299 Term Loan B Due Feb 2024 (L+225) $2,000 Term Loan C Due Jan 2026 (L+250) $4.0 Billion Total Senior Notes Due Jul 2026 (5.
Slide 17: As Reported 1Q 2021
As Reported 1Q 2021 Three Months Ended March 31, % Change % Change 2021 to 2021 to 2021 2020 2020 2019 2019 Revenue (less agency commissions): Broadcasting $ 530 $ 515 3% $ 481 10 % Production companies 14 19 (26)% 37 (62)% Total revenue $ 544 $ 534 2% $ 518 5% Political advertising revenue $ 9 $ 36
Slide 18: As Reported Year-End
As Reported Year-End Year Ended December 31, % Change % Change 2020 to 2020 to 2020 2019 2019 2018 2018 (dollars in millions) Revenue (less agency commissions): Broadcasting $ 2,320 $ 2,035 14 % $ 1,084 114 % Production companies 61 87 (30)% - Total revenue $ 2,381 $ 2,122 12 % $ 1,084 120 % Politic
Slide 19: Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions
Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions 18
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on As Reported Basis, in millions Thre e Months Ende d March 31, 2021 2020 2019 Net income (loss) $ 39 $ 53 $ (18) Adjustments to reconcile from net income (loss) to Free Cash Flow: Depreciation 25 21 20 Amortization of intangible assets 26 26
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on As Reported Basis, in millions Year Ended December 31, 2020 2019 2018 2017 Net income $ 410 $ 179 $ 211 262 Adjustments to reconcile from net income to Free Cash Flow: Dep reciation 96 80 54 52 Amortization of intangible assets 105 115 21 2
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on a Combined Historical Basis, in millions Year Ended December 31, 2019 2018 2017 Net income $ 157 $ 288 $ 648 Adjustments to reconcile from net income to Free Cash Flow: Dep reciation 81 86 86 Amortization of intangible assets 115 117 124 No
Slide 23: Reconciliation of Total Leverage Ratio (in millions)
Reconciliation of Total Leverage Ratio (in millions) Eight Quarte rs Ende d March 31, 2021 Net income $ 648 Adjustments to reconcile from net income to Operating Cash Flow as defined in our Senior Credit Agreement: Depreciation 181 Amortization of intangible assets 218 Non-cash stock-based compensat
Slide 24: Non-GAAP Terms
Non-GAAP Terms From time to time, Gray supplements its financial results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) by disclosing the non-GAAP financial measures Broadcast Cash Flow, Broadcast Cash Flow Less Cash Corporate Expenses,
Slide 25: Disclaimers, Definitions, and Non-GAAP Financial Data
Disclaimers, Definitions, and Non-GAAP Financial Data This presentation contains certain forward looking statements that are based largely on Gray Television, Inc.’s (“Gray”, “Gray Television”, “GTN” or the “Company”) current expectations and reflect various estimates and assumptions by Gray. These
Slide 26: Gray Television, Inc.
Gray Television, Inc. 4370 Peachtree Rd., NE Atlanta, Georgia 30319 www.gray.tv 25