Gray Media, Inc. · NYSE:GTN
Gray Media — Gray Television — Investor Presentation (March 2021)
21 slides from Gray Media's investor presentation, March 2021
Slide 1: Gray Television, Inc. Investor Presentation
Gray Television, Inc. Investor Presentation NYSE:GTN March 2021 Updated for December 31, 2020 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 Television's National Footprint
Gray Television’s National Footprint As of March 1, 2021 94 Markets 70 #1 Stations Big 4 160 Affiliations 500+ Program Streams 2
Slide 4: Gray to Acquire Quincy Media, Inc. for $925 Million
Gray to Acquire Quincy Media, Inc. for $925 Million Pro Forma Company Highlights 102 Markets #1 ranked TV station in 77 markets 25.4% of U.S. TV Households #1/#2 ranked TV station in 93 markets § On February 1, 2021, Gray announced its agreement to acquire Quincy Media, Inc. for $925 million in cash
Slide 5: Combined Company Snapshot
Combined Company Snapshot ($ in Millions, except metrics per TV HH) Gray Quincy (Post-Divestitures) Gray + Quincy Financial Profile 2020A / 2021E Blended Net Revenue $2,318 $153 $2,471 2020A / 2021E Blended EBITDA $808 $49 $880(1) % Margin 35% 32% 36% Scale (2) Markets 94 10 102 (2) Gross TV Househo
Slide 6: 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 7: 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 3 VA markets. $8.80 2022 Gubernatorial Races (37) 2016 2018 2020 Gray stations in 28 states: AK, A
Slide 8: Strong Network and Distribution Positions
Strong Network and Distribution Positions MVPD Subscribers Year-End Retransmission Revenue ($ 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 $80
Slide 9: Successful Digital Ventures
Successful Digital Ventures RECORD BREAKING GROWTH FOR OVER 1,000 CHANNELS GRAY’S PLATFORM IN 2020 OVER 2019: STREAMED ACROSS ALL PLATFORMS 2020 SESSIONS: +24% 2020 VIDEO PLAYS: +13% 2020 USERS: +37% 2020 PAGE VIEWS: +13% 1.1 BILLION MONTHLY AGGREGATE USERS IN 2020 Gray’s in-house Digital Agency Ser
Slide 10: Consistent Growth (As Reported Basis)
Consistent Growth (As Reported Basis) ($ 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 $0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017
Slide 11: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Presidential Non-Election Midterm Election Non-Election Presidential Year Year 2018 OCF 2019 CHB 2020 Election Year 2017 OCF Buildup Buildup Year 2019 OCF 2019 CHB Election Year Average 2016 OCF Buildup Buildup 2020 OCF Buildup 2020 FCF Per Diluted Sha
Slide 12: Successful Integration of Acquisitions And Meaningful Deleveraging
Successful Integration of Acquisitions And Meaningful Deleveraging Financial Leverage Net of All Cash (As Reported Basis) 2.1x red uction in leverage Guidance 6.0x 2 0 1 4 th r ough 20 YE 2021(1) Net 20 Leverage Ratio: 5.1x 4.8x 4.4x Approximately 4.0x 4.2x 3.4x 3.95x Projected total debt (excluding
Slide 13: Staggered Debt Maturity Profile
Staggered Debt Maturity Profile No Maturities until 2024 ($ in Millions) $2,500 $300 Million Revolver Due Jan 2026 (Undrawn) $4.0 Billion Total Term Loan B Due Feb 2024 (L+225) $2,000 Principal Amount of Incremental Term Loan B Due Nov 2025 (L+250) Debt Outstanding Senior Notes Due Jul 2026 (5.875%)
Slide 14: 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 15: Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions
Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions 14
Slide 16: 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 17: 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 18: Reconciliation of Total Leverage Ratio (in millions)
Reconciliation of Total Leverage Ratio (in millions) Eight Quarte rs Ende d De ce mbe r 31, 2020 Net income $ 589 Adjustments to reconcile from net income to operating cash flow as defined in our Senior Credit Agreement: Depreciation 176 Amortization of intangible assets 220 Non-cash stock-based com
Slide 19: 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 20: 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 21: Gray Television, Inc.
Gray Television, Inc. 4370 Peachtree Rd., NE Atlanta, Georgia 30319 www.gray.tv 20