Gray Media, Inc. · NYSE:GTN
Gray Media — Gray Television — Guggenheim 2020 Broadcast Conference
22 slides from Gray Media's conference presentation, Mar 5, 2020
Slide 1: Gray Television, Inc. Investor Presentation
Gray Television, Inc. Investor Presentation NYSE:GTN March 2020 Updated for December 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 157 “Big Four” 2019 All-Day Ratings Affiliates in 93 Markets #1 Ranked ABC Station in US 68 #1 Ranked Local Stations #1 Ranked CBS Station in US 29 #2 Ranked Local Stations #1 Ranked NBC Statio
Slide 3: National Footprint
National Footprint 93 markets program 515+ streams 2
Slide 4: Power of A Strong Portfolio
Power of A Strong Portfolio #1 86/93 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 $917 2018
Slide 5: Strong Network and Distribution Positions
Strong Network and Distribution Positions Retransmission Revenue ($ in millions) $1,000 Retransmission Revenue Retransmission Expense (“Reverse Comp.”) Retransmission Revenue net of Expense $799 MVPD $796 Subscribers $800 $677 Renewal Schedule $600 420 $540 422 56% - 2020 $444 351 $355 24% - 2021 $4
Slide 6: Well Positioned for Political Revenue
Well Positioned for Political Revenue $9.63 2016 Political Revenue Per $5.03 $4.67 $4.25 $4.20 TV Household $3.31 Nexstar Scripps TEGNA Meredith Sinclair+Tribune 2016 Political Revenue $118 $228 $101 $155 $52 $276 2016 TV Households 12.2 45.3 21.6 36.5 12.4 83.4 Revenue per company filings shown in
Slide 7: 2019-20 Presents Attractive Opportunity
2019-20 Presents Attractive Opportunity Gray’s Local News Stations Located Throughout the Most Competitive Political Areas in 2020 February 2020 Presidential Nominating Contests Gray Stations in All Four Races – IA, NH, NV and SC 2020 Presidential Election Gray Stations in 12 of 13 Lean or Toss-Up E
Slide 8: Successful Digital Ventures
Successful Digital Ventures Significant Growth for Gray’s O&O Digital Platforms in 2019 over 2018 (CHB Basis): ↑ 20% Increase in Sessions ↑ 31% Increase in Video Plays ↑ 32% Increase in Unique Viewers • Premion delivers brand-safe CTV and OTT impressions at Gray Surpassed 100 Million Unique Monthly
Slide 9: Diversified Revenue
Diversified Revenue Approximate Advertising 2019 CHB Revenues Revenue Contributors 4% 2% Local 10% Local Local Spot News National Network Political 42% 20% Prime 38% 50% Retransmission Syndication Production 20% Other Companies 3% Other-TV Stations 11% 2019 Big 4 2019 CHB 2019 CHB Affiliate Revenue
Slide 10: Consistent Growth (As Reported Basis)
Consistent Growth (As Reported Basis) ($ in millions) Revenue 318% Net Income 273% $2,500 $300 $2,122 $262 $2,000 $250 $211 $200 $179 $1,500 $1,084 $150 $1,000 $812 $883 $597 $100 $508 $62 $48 $39 $500 $50 $0 $0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Operating Income 210% Total
Slide 11: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Presidential Midterm Election Non-Election Year Non-Election Year Election Year Year 2018 OCF 2018/2019 Average 2017 OCF Buildup 2019 OCF Buildup 2016 OCF Buildup Buildup FCF Per Diluted Share FCF Per Diluted Share FCF Per Diluted Share FCF Per Diluted
Slide 12: Successful Integration of Acquisitions And Meaningful Deleveraging
Successful Integration of Acquisitions And Meaningful Deleveraging Financial Leverage Net of All Cash (As Reported Basis) 6.0x Guidance YE 2020 Net 5.1x Leverage Ratio: 4.8x 4.4x 3.4x 4.2x 3.7x – 3.8x Projected total debt 2.9x 3.0X 2.4x (excluding preferred 4.3x stock) net of all cash, 3.6x assuming
Slide 13: Staggered Debt Maturity Profile
Staggered Debt Maturity Profile No Significant Maturities until 2024 ($ in Millions) $2,500 $200 Million Revolver Due Nov 2023 (Undrawn) $3.760 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 Oct
Slide 14: As Reported Year-End
As Reported Year-End Year Ended December 31, % Change % Change 2019 to 2019 to 2019 2018 2018 2017 2017 (dollars in millions) Revenue (less agency commissions): Broadcast $ 2,035 $ 1,084 88 % $ 883 130 % Production companies $ 87 $ - $ - Total revenue $ 2,122 $ 1,084 96 % $ 883 140 % Political $ 68
Slide 15: CHB Year-End
CHB Year-End Year Ended December 31, % Change % Change 2019 to 2019 to 2019 2018 2018 2017 2017 (dollars in millions) Revenue (less agency commissions): Broadcast $ 2,044 $ 2,110 (3)% $ 1,813 13 % Production companies $ 87 $ 86 1% $ 85 2% Total revenue $ 2,131 $ 2,196 (3)% $ 1,898 12 % Political $ 6
Slide 16: Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions
Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions 15
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on As Reported Basis, in millions Year Ended December 31, 2019 2018 2017 Net income $ 179 $ 211 $ 262 Adjustments to reconcile from net income to Free Cash Flow: Dep reciation 80 54 52 Amortization of intangible assets 115 21 25 Non-cash stock
Slide 18: 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 19: Reconciliation of Total Leverage Ratio (in millions)
Reconciliation of Total Leverage Ratio (in millions) Eight Quarters Ended December 31, 2019 Net income $ 390 Adjustments to reconcile from net income to operating cash flow as defined in our Senior Credit Agreement: Depreciation 134 Amortization of intangible assets 136 Non-cash stock-based compensa
Slide 20: 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 21: 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 22: Gray Television, Inc.
Gray Television, Inc. 4370 Peachtree Rd., NE Atlanta, Georgia 30319 www.gray.tv 21
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