Gray Media, Inc. · NYSE:GTN
Gray Media — Gray Television — Barrington Research Spring Investment Conference 2019
25 slides from Gray Media's conference presentation, May 23, 2019
Slide 1: Gray Television, Inc. Investor Presentation
Gray Television, Inc. Investor Presentation NYSE:GTN May 2019 Updated for March 31, 2019 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 NOTES: Financial data reflects results “as reported” except where Combined Historical Basis (“CHB”) is noted. Revenue is presented net of agency commissions. Ratings data derived from Comscore,
Slide 3: Gray Television's National Footprint
Gray Television’s National Footprint As of May 2019 93 markets “Big 4” network 150 program streams total 400 program streams 2 2
Slide 4: Recognized Industry Leader
Recognized Industry Leader 2019 Top Ranked Top Ranked 6PM Stations Local Newscasts NAB Leadership All-Day Ratings for Newscast Ratings for Foundation’s Service All US TV Stations All US TV Stations to America Awards: November 2018 November 2018 Winner, Small Market Category, and 5 of 6 Finalists in
Slide 5: Consistent Growth from Superior Execution and Accretive Acquisitions – As Reported Basis
Consistent Growth from Superior Execution and Accretive Acquisitions – As Reported Basis ($ in Millions) Revenue Net Income 339% 113% $1,200 $1,084 $300 $262 $1,000 $883 $250 $211 $812 $800 $200 $597 $600 $508 $150 $400 $100 $62 $48 $39 $200 $50 $0 $0 2014 2015 2016 2017 2018 2014 2015 2016 2017 201
Slide 6: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Presidential Election Year Non-Election Year Midterm Election Year 2016 OCF Buildup 2017/2018 Average 2017 OCF Buildup 2018 OCF Buildup FCF Per Diluted Share FCF Per Diluted Share FCF Per Diluted Share FCF Per Diluted Share $2.04 $4.68 $2.32 $3.43 $2.9
Slide 7: Gray + Raycom: A Highly Complimentary Combination
Gray + Raycom: A Highly Complimentary Combination Transaction closed effective January 2, 2019 ~$3.6 billion enterprise value Purchase price represented a multiple of ~7.8x blended ’17 / ’18E CHB OCF, including $80 million of year-1 expected annualized synergies and $136 million estimated NPV
Slide 8: Power of A Strong Portfolio
Power of A Strong Portfolio #1 87/93 markets With #1 or #2 ranked #2 local television station $78.28 2018 $64.13 Broadcast $56.50 $55.79 $48.00 Revenue $41.14 Per Television Household Meredith Sinclair TEGNA Nexstar + Tribune Scripps 2018 Broadcast Revenue $2,081 $846 $2,715 $2,207 $4,765 $917 2018
Slide 9: New Combined Scale
New Combined Scale Combined Historical Basis Three Months Ended March 31, % Change % Change 2019 to 2019 2018 2019 to 2018 2017 2017 ($ in millions except per share data) Revenue (less agency commissions): Total $ 518 $ 484 7% $ 458 13% Total Broadcast $ 481 $ 449 7% $ 423 14% Production Companies $
Slide 10: New Combined Scale
New Combined Scale Combined Historical Basis Year ended December 31, % Change % Change 2018 to 2018 2017 2018 to 2017 2016 2016 ($ in millions except per share data) Revenue (less agency commissions): Total $ 2,167 $ 1,875 16% $ 1,932 12% Total Broadcast $ 2,081 $ 1,790 16% $ 1,849 13% Production Co
Slide 11: Diversified Revenue
Diversified Revenue 2018 CHB Revenue 4% 2% Local National 31% 41% Political Retransmission Production Companies Other-TV Stations 11% 11% Broadcast Markets Revenues Cash Flow All Others All Others 8% 6% 21 11% 10% 33% 44 34% 25 16% 18% 42 32% 32% 10
Slide 12: Strong Network and Distribution Positions
Strong Network and Distribution Positions Gross Retransmission Revenue ($ in Millions) $668 MVPD Subs $700 Renewals $600 $534 373% 22% at YE 2019 $500 $437 $400 $355 56% at YE 2020 $277 $300 $201 22% at YE 2021 $200 $152 $100 $75 $0 2014 2015 2016 2017 2018 2016 2017 2018 As Reported CHB Generally,
Slide 13: 2019-20 Presents Attractive Opportunity
2019-20 Presents Attractive Opportunity 2019-20: Gray Serves Most of the Most Competitive Political Markets 2019 Gubernatorial Races 2020 11 Gubernatorial Races 2020 Presidential Election Gray Stations in All Three States – Gray Stations in IN, MO, NC, ND, Gray Stations in 12 of 13 Cook KY, LA, MS N
Slide 14: Successful Digital Media Initiatives
Successful Digital Media Initiatives First Quarter 2019: Over 2 Billion Pageviews across Desktop, Mobile and App Platforms Over 80 Million Average Monthly Web Users (Q1 2019) Over 85 Million Video Plays Across All Digital Platforms OTT Subs Doubled between December 2017 and December 2018 887 T
Slide 15: Successful Integration of Acquisitions And Meaningful Deleveraging
Successful Integration of Acquisitions And Meaningful Deleveraging Financial Leverage Net of All Cash 6x 5.1x 4.8x 4.7x Over $1.5 Billion 3.4x 4.2x of Acquisitions 2.9x 3.0x 2.5x 4.3x Completed 3.6x 2014-2018 3.0x 2.6x 7.1 1.9x 2.2x 0.8x 0.6x 2014 2015 2016 2017 2018 2018 Year Ended December 31 CHB
Slide 16: Staggered Debt Maturity Profile
Staggered Debt Maturity Profile No Significant Maturities until 2024 ($ in Millions) $2,500 $200 Million Revolver Due Nov 2023 (Undrawn) $3.97 Billion Total Gray Term Loan B Due Feb 2024 (L+225) $2,000 Principal Amount of Incremental Term Loan B Due Nov 2025 (L+250) Debt Outstanding At Gray Notes Du
Slide 17: Appendix: Non-GAAP Reconciliations and Glossary
Appendix: Non-GAAP Reconciliations and Glossary 16
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation on As Reported Basis, in thousands: Three Months Ended March 31, 2019 2018 2017 Net (loss) income $ (18,132) $ 19,945 $ 10,505 Adjustments to reconcile from net (loss) income to Broadcast Cash Flow: Depreciation 20,120 13,694 12,629 Amortization of intangible a
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Reconciliation on Combined Historical Basis, in thousands: March 31, 2019 2018 2017 Net (loss) income $ (18,201) $ 20,269 $ 7,488 Adjustments to reconcile from net (loss) income to Broadcast Cash Flow: Depreciation 20,120 21,943 20,917 Amortization of intan
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation on As-Reported Basis, in thousands: Year Ended December 31, 2018 2017 2016 Net income $ 210,803 $ 261,952 $ 62,273 Depreciation 53,883 51,973 45,923 Amortization of intangible assets 20,570 25,072 16,596 Non-cash stock based compensation 6,661 8,303 5,101 (Gain
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended Reconciliation on Combined Historical Basis, in thousands: December 31, 2018 2017 2016 Net income $ 280,899 $ 600,156 $ 153,625 Depreciation 85,422 85,029 83,436 Amortization of intangible assets 116,428 124,070 129,261 Non-cash stock based compensation 14,622 13,7
Slide 22: Reconciliation of Total Leverage Ratio
Reconciliation of Total Leverage Ratio Reconciliation of Total Leverage Ratio, Net of All Cash, in thousands except for ratio: Eight Quarters Ended March 31, 2019 Net income $ 443,118 Adjustments to reconcile from net income to operating cash flow as defined in our Senior Credit Agreement: Depreciat
Slide 23: 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 24: Disclaimer, Definitions, and Non-GAAP Financial Data
Disclaimer, 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 s
Slide 25: Gray Television, Inc.
Gray Television, Inc. 4370 Peachtree Rd., NE Atlanta, Georgia 30319 www.gray.tv 24
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