Gray Media, Inc. · NYSE:GTN
Gray Media — Gray Television — Investor Presentation (March 2024)
30 slides from Gray Media's investor presentation, March 2024
Slide 1: Gray Television, Inc. Investor Presentation March 2024
Gray Television, Inc. (NYSE: GTN) Investor Presentation March 2024 Updated for December 31, 2023 Financial Information
Slide 2: Notes and Disclaimer
Notes and Disclaimer As of March 2024, Gray Television, Inc. (“Gray”) owns local network-affiliated television stations in 114 markets. Station rankings (i.e., number 1, number 2) reflect all-day ratings in 2023 according to Comscore. DMA population estimates and ranks according to Nielsen. All nume
Slide 3: Investment Highlights
Investment Highlights 1 Best-in-class broadcaster with diverse assets and national reach 2 Highly desired and relevant content that reaches mass audiences 3 Resilient, scalable revenue streams with stable revenue base 4 Demonstrated strong Operating Cash Flow generation driving deleveraging 5 Demons
Slide 4: Company Overview
Company Overview 4
Slide 5: Gray Is the Nation's Second Largest Television Broadcaster
Gray Is the Nation’s Second $3.5 Billion L8QA Revenue Largest Television Billion L8QA Operating Cash $1.1 Broadcaster Flow 32% L8QA Operating Cash Flow / Revenue Margin Gray Owns the Most #1 Ranked Local News 89% Markets with #1 and/or #2 Ranked Local TV Station Television Stations of Any Broadcaste
Slide 6: Gray's National Footprint in 2024
Gray’s National Footprint in 2024 Reaches 36% of Total US Television Households 48% of Gray TVHH in Midsize Markets 45% of Gray TVHH in Large Markets 7% of Gray TVHH in Small Markets 6
Slide 7: Gray's Local Stations Deliver Viewers
Gray’s Local Stations Deliver Viewers Gray Local Newscasts Deliver More Household Viewership in their Markets than All Competing Premium Content 101,383,761 ü More than Total Network Prime Viewership on NBC, CBS, ABC and FOX Combined 70,424,405 ü More than Total NFL Game Viewership on ABC (MNF), CBS
Slide 8: Leading Partnerships with Networks and MVPDs
Leading Partnerships with Networks and MVPDs Owned and/or Operated Big Four Affiliates 19% 15% 33 O&O channels 26 O&O Channels (Expires 2H 2025) (Expires 12/31/24) 32% 33% 57 O&O channels 55 O&O channels (Expires 12/31/25) (Expires 2H 2025) Successful History of Retransmission Renewals ü As of March
Slide 9: Gray's Stations Outperforming Peers in Core Advertising Growth in 2023
Gray’s Stations Are Best-In-Class, Outperforming Peers in Core Advertising Growth in 2023 6% 4% 4% 2% 2% 1% 1% 0% -2% -1% -2% -4% -4% -6% -6% -8% Q1 2023A Q2 2023A Q3 2023A Q4 2023A Peer Average Gray ”Core Advertising Revenue” is total net advertising and marketing revenue excluding net political ad
Slide 10: Gray Excels at Political Advertising Revenue
Gray Excels at Political Advertising Revenue 2022 Political Ad Revenue per TV Household $20 $14.66 $15 $10 $9.13 $8.73 $7.65 $5 $2.99 $0 Gray TEGNA Sinclair Nexstar Scripps 2020 Political Ad Revenue per TV Household $20 $18.06 $15 $11.64 $9.52 $10 $8.13 $5 $3.66 $0 Gray TEGNA Sinclair Nexstar Scripp
Slide 11: Well Positioned for 2024 Political Revenue
Well Positioned for 2024 Political Revenue Approximate Political Advertising +38% Political Advertising Revenue Increase in 2022 over Prior Mid-Term Year of +38% Revenue by Race Type 2016-2022 CHB and As Reported, as indicated, in millions of dollars Political Advertising Revenue 2018 on a Combined
Slide 12: Professional Sports Teams Are Growing Their Fan Bases With Gray's Local Stations
Professional Sports Teams Are Growing Their Fan Bases With Gray’s Local Stations Full Season of Local Games (as of March 1, 2024) Arizona – Phoenix Suns and Mercury (WNBA) are airing in Arizona’s 3 markets on Gray’s stations on Phoenix- Flagstaff, Tucson, and Yuma Georgia – Atlanta Dream airing in a
Slide 13: Gray Streams Over 1,000 Video Channels Across Every Major Digital Video Platform
Gray Streams Over 1,000 Video Channels Across Every Major Digital Video Platform +38% Virtual MVPDs simulcast Gray’s Big Four primary broadcast channels and additional channels Political Advertising such as CW Revenue affiliates and local Increase in 2022 over Prior news/sports independent stations
Slide 14: Gray Digital Revenue Growing In Scale, Reach, and Profitability
Gray Digital Revenue Growing In Scale, Reach, and Profitability Gray Digital Media is an in-house Digital Agency that serves over 5,500 clients and executes more than 11,000 campaigns monthly. Visit www.graydigitalmedia.com +38% Station Apps Programmatic Digital Ad Revenues are roughly equally split
Slide 15: New Transmission Standard Presents Even Greater Opportunities Ahead
New Transmission Standard Presents Even Greater Opportunities Ahead • The NextGen TV transmission standard enables broadcasters to provide superior video and audio quality content using a standard IP-based framework, thereby also enabling new targeting and datacasting business opportunities anywhere
Slide 16: Investments to Diversify into Production / Studio Facilities
Gray Has Substantially Completed its Investments to Diversify into Production / Studio Facilities • In late 2023, Gray substantially completed construction of soundstages, offices, warehouses, mill spaces, parking and related facilities in our Assembly Studios real estate complex located in the Atla
Slide 17: Financial Highlights
Financial Highlights 17
Slide 18: Financial Policy Overview
Financial Policy Overview § Financial strategy aimed at deleveraging to low-4x range Leverage § Deleveraging to be driven by OCF growth that funds debt repayment § We believe sufficient liquidity will be maintained to support business operations Liquidity § We believe strong cash-flow generation, ca
Slide 19: No Significant Maturities until 2026
No Significant Maturities until 2026 ($ in Millions) Robust Free 2,500 Cash Flow Allows Rapid 2,000 $15 Deleveraging. 1,500 $700 Interest rate caps $1,410 entered into in 1,000 ( $15 February 2023 $1,190 $1,300 effectively 500 $800 $750 eliminate further $15 $15 exposure to 0 2024 2025 2026 2027 202
Slide 20: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Presidential Midterm Election Non-Election Non-Election Midterm Election Non-Election Election 2022/2023 Year 2018 Year 2019 Year 2021 Year 2022 Year 2023 Year 2020 Average OCF Buildup OCF Buildup OCF Buildup OCF Buildup OCF Buildup OCF Buildup FCF as
Slide 21: Financial Overview
Financial Overview ($ in Millions) Total Revenue L8QA Operating Cash Flow1 $3,676 $1,232 $1,216 $1,194 $1,107 $3,352 $3,281 $3,153 FY 2020 FY 2021 FY 2022 FY 2023 CHB CHB AR AR FY 2020 FY 2021 FY 2022 FY 2023 First Lien Leverage Ratio “FLR” and Total Leverage Ratio “TLR”2 Total Debt 5.6x TLR $6,835
Slide 22: Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions
Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions 22
Slide 23: Selected Operating Data
Selected Operating Data (see notes on slide 27) Dollars in Millions Year Ended December 31, 2023 As 2022 As Reported Reported 2021 CHB 2020 CHB Revenue (less agency commissions): Broadcasing $ 3,195 $ 3,583 $ 3,080 $ 3,291 Production Companies 86 93 73 61 Total Revenue $ 3,281 $ 3,676 $ 3,153 $ 3,35
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation (see notes on slide 27) Reconciliation of Non-GAAP terms on an As Reported Basis, in millions Year Ended December 31, 2023 2022 2021 2020 2019 2018 Net (loss) income $ (76) $ 455 $ 90 $ 410 $ 179 $ 211 Adjustments to reconcile from net (loss) income to Free Cash Flow: Depreci
Slide 25: Non-GAAP Reconciliation (Combined Historical Basis)
Non-GAAP Reconciliation (see notes on slide 27) Reconciliation of Non-GAAP terms on a Combined Historical Basis (“CHB”) consistent with defined terms in our Senior Credit Facility, in millions Ye ar Ende d De ce mbe r 31, 2023 2022 2021 2020 2019 2018 Net (loss) income $ (76) $ 455 $ 265 $ 635 $ 310
Slide 26: L8QA Operating Cash Flow Reconciliation
L8QA Operating Cash Flow Reconciliation Reconciliation of Non-GAAP terms on a Combined Historical Basis (“CHB”) consistent with defined terms in our Senior Credit Facility, in millions L8QA December 31, 2023 2022 Net income $ 379 $ 545 Adjustments to reconcile from net income to operating cash flow
Slide 27: Notes to Slides 23, 24, and 25
Notes to Slides 23, 24, and 25 1 Excludes depreciation, amortization, impairment and loss (gain) on disposal of assets, net. 2 See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income (loss) included herein. 3 Excludes approximately $240 million, $264 million, and
Slide 28: 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 29: Additional Disclaimers, Definitions, and Non-GAAP Financial Data
Additional Disclaimers, Definitions, and Non-GAAP Financial Data The financial information attributable to acquired businesses for each of the periods presented are based on good faith estimates and assumptions of Gray management derived entirely from financial information provided by each respectiv
Slide 30: Gray Television, Inc. contact details
Gray Television, Inc. 4370 Peachtree Rd., NE Atlanta, Georgia 30319 www.gray.tv