Gray Media, Inc. · NYSE:GTN
Gray Media — Gray Television — Investor Presentation (March 2022)
24 slides from Gray Media's investor presentation, March 2022
Slide 1: Gray Television, Inc. Investor Presentation
Gray Television, Inc. Investor Presentation NYSE:GTN February 2022 Updated for December 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: A Leading Multimedia Company
A Leading Multimedia Company Due to the significant effect that material transactions have had on our results of our operations, we present the financial information herein consistent with both U.S. Generally Accepted Accounting Principles (“GAAP” or “As Reported Basis”) GRAY TELEVISION, INC. and on
Slide 3: National Footprint in 2022
National Footprint in 2022 1 Albany. GA(161) wavs, wocw 2 Alexanceia,LA(180) KALB 9 Amorillo, TX (137) KFDA, KEVU 4 Anchorage, AK (148) KTUU, KYES, KAUN 5 Allan, GA (10) wsct, wc 6 Auguste, Ga (111) wnow, wacT 7 Bangor, E181) Wasi {8 Baton Rouge, LA (33) WAFS, WEXH Biloxi Gulfport, MS (169) WLOX 10.
Slide 4: In 2021, Gray Television Acquired Meredith Corporation's Local Media Group and Quincy Media
In 2021, Gray Television Acquired Meredith Billion Average 2020/21 $3.25 Revenue (CHB) Corporation’s Local Media Group and Billion Average 2020/21 $1.2 Operating Cash Flow (CHB) Quincy Media, 37% Average 2020/21 OCF/ Transforming Gray Revenue Margin (CHB) Into the Nation’s Second Largest Broadcaster
Slide 5: The Highest Quality and Most Diverse Station Group
The Highest Quality and Most Diverse Station Group Owned and/or Operated Big Four Affiliates 113 71% 88% 10.2 55 channels Markets with Markets Markets Billion owned with #1 with #1 minutes in 57 channels and/or ranked and/or #2 2021 spent on operated TV local TV ranked our digital stations stations
Slide 6: The Power of #1 Stations
The Power of #1 Stations Key Financial Metrics 9/30/21 LTM $40.00 Core Revenue/TVHH $35.00 $33.34 Retrans Revenue/TVHH $31.49 $30.83 $30.59 $30.03 $30.00 $28.58 $28.69 Adj. EBITDA/TVHH $24.66 $25.00 $23.52 $23.41 $20.87 $20.44 $20.00 $15.00 $10.00 $8.14 $7.41 $7.02 $5.00 $0.00 Gray CHB Nexstar Tegna
Slide 7: Growing and Diversifying Revenue (CHB, $ in millions)
Growing and Diversifying Revenue (CHB, $ in millions) 3500 $3,253 $3,011 $3,147 4% $2,847 5% 3000 5% 5% 42% 2500 39% 36% 32% 2000 Approximate Advertising Revenue Contributions 1500 54% 63% 59% • 56% News 1000 56% • 50% Local News 500 • 6% Network News 0 • 12% Network Prime 2017/18 2018/19 2019/20 20
Slide 8: Solid Distribution Profile
Solid Distribution Profile Retransmission Revenue (CHB) ($ in millions) All Network Renewals: 2022 MVPD Retrans 1600 Renewals (subs): 21% $1,429 1400 $1,276 $1,175 All Network 1200 Renewals: 587 $1,004 1000 544 Legacy $802 544 2023 Meredith 800 Renewals: 480 MVPD Retrans 600 399 Renewals (subs): 56%
Slide 9: Gray Excels at Political Revenue
Gray Excels at Political Revenue $9.67 $8.33 2016 Political $5.03 Revenue Per $4.68 $4.25 $4.19 $3.31 TV Household z Quincy (Net) Nexstar Scripps TEGNA Meredith Sinclair+ Tribune 2016 Political Revenue $118 $15 $228 $101 $155 $52 $276 2016 TV Households 12.2 1.8 45.3 21.6 36.5 12.4 83.4 $18.06 $17.5
Slide 10: Well Positioned for 2022 Political Revenue
Well Positioned for 2022 Political Revenue Approximate Political Advertising Revenue by Race Type 2014-20 Gray’s Local News Stations Located Throughout the Most (Excluding Meredith and Quincy Competitive Political Areas in 2022 Transactions, figures in millions of dollars) 2022 Senate Races 500 Gray
Slide 11: Successful Digital Content and Sales
Successful Digital Content and Sales Gray’s digital revenue (included in ”Local Advertising Revenue”) is derived from organically created and sold inventory across virtually all online/digital platforms including OTT and Connected TV platforms and owned and third-party mobile apps. 2021 Digital Metr
Slide 12: Multifaceted Digital Ventures
Multifaceted Digital Ventures Gray’s in-house Digital Agency serves over 5,500 clients and executes more than 11,000 campaigns monthly. Premion delivers brand-safe CTV and OTT impressions at scale, with full transparency for advertisers. All stations participate on VUit, a free, ad-supported streami
Slide 13: Focus on Shareholder Returns
Focus on Shareholder Returns Task One: Focus on Execution and Growth to Drive Stock Price Growth Deleverage Balance Sheet $600M+ TWO-YEAR AVG. Opportunistic Stock Buybacks ANNUAL FCF approx. $174 million authority remaining TARGET Quarterly Cash Dividend re-instituted in early 2021 12
Slide 14: Robust Free Cash Flow Allows Rapid Deleveraging
No Maturities until 2024 Robust Free Cash 2500 $2,390 Flow Allows Rapid 2000 $500 $2,100 Deleveraging. $1,500 1500 $1,300 Gray’s staggered debt $1,190 1000 maturity profile is well $595 $750 supported by its 500 $800 industry-leading $700 margins, efficient cost 0 2024 2025 2026 2027 2028 2029 and T
Slide 15: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Non-Election Midterm Election Non-Election Presidential Non-Election 2020 CHB 2021 Year 2017 OCF Year 2018 OCF Year 2019 OCF Election Year Year 2021 OCF Average Buildup Buildup Buildup 2020 OCF Buildup Buildup FCF Per Diluted Share FCF Per Diluted Shar
Slide 16: Additional Related Businesses
Additional Related Businesses Investments in Content, Owned Video Production Companies Physical Sports and E-Sports, OTT and Technology Companies Owned Real Estate/Studio Companies 15
Slide 17: Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions
Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions 16
Slide 18: As Reported 2021
As Reported 2021 Dollars in millions Year Ended December 31, % Change % Change 2021 to 2021 to 2021 2020 2020 2019 2019 (dollars in millions) Revenue (less agency commissions): Broadcasting $ 2,340 $ 2,320 1% $ 2,035 15 % Production companies 73 61 20 % 87 (16)% Total revenue $ 2,413 $ 2,381 1% $ 2,
Slide 19: Combined Historical Basis 2021
Combined Historical Basis 2021 Dollars in millions Year Ended December 31, % Change % Change 2021 to 2021 to 2021 2020 2020 2019 2019 (dollars in millions) Revenue (less agency commissions): Broadcast $ 3,080 $ 3,291 (6)% $ 2,854 8% Production companies 73 61 20 % 87 (16)% Total revenue $ 3,153 $ 3,
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on As Reported Basis, in millions Year Ended December 31, 2021 2020 2019 2018 2017 Net income $ 90 $ 410 $ 179 $ 211 $ 262 Adjustments to reconcile from net income to Free Cash Flow: Dep reciation 104 96 80 54 52 Amortization of intangible ass
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on A Combined Historical Basis, in millions Year Ended December 31, 2021 2020 2019 2018 2017 Net income $ 265 $ 635 $ 310 $ 523 $ 782 Adjustments to reconcile from net income to Free Cash Flow: Dep reciation 128 128 111 114 116 Amortization of
Slide 22: 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 23: 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 24: Gray Television, Inc.
Gray Television, Inc. 4370 Peachtree Rd., NE Atlanta, Georgia 30319 www.gray.tv 23