Slide 1: Gray Television, Inc. Investor Presentation
Gray Television, Inc. Investor Presentation NYSE:GTN August 2021 Updated for June 30, 2021 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 Completes the Quincy Acquisition and Prepares to Complete the Meredith Acquisition
Gray Completes the Quincy Acquisition and Prepares to Complete 113 TV markets reaching 36% US TVHH the Meredith Acquisition, Transforming It Into the 89% Markets with #1/#2 Ranked Stations Nation’s Second Largest Broadcaster 2
Slide 4: Gray Television's New National Footprint
Gray Television’s New National Footprint 3
Slide 5: Two Excellent Acquisitions
Two Excellent Acquisitions Gray Acquires Quincy Media Combination Highlights(1) ▪ On August 2, 2021, Gray completed its acquisition of Quincy Media, Inc. for $925 million in cash and the related divestiture of 10 of Quincy’s ▪ 79 #1 Rated TV Stations stations in seven overlap markets to Allen Media
Slide 6: Combined Company Snapshot
Combined Company Snapshot ($ in Millions) Meredith Local Media Group Pro Forma Gray + Quincy (1) Gray + RemainCo (RemainCo) Impact Financial Profile 2019 / 2020 CHB Blended Net Revenue $2,372 $770 $3,141 32% 2019 / 2020 CHB Blended OCF $889 $286 $1,230 (2) 38% % Margin 37% 37% 39% Scale Markets 101
Slide 7: Gray Will be the Second Largest TV Broadcast Group with the Highest Quality Assets
Gray Will be the Second Largest TV Broadcast Group with the Highest Quality Assets 2019 / 2020 CHB Blended Adj. EBITDA(1) $1,837 $1,230 $959 $925 TV Broadcast Affiliate $889 Group Owners $660 $435 $320 $286 $180 (4 ) (4 ) (5 ) Nexstar Gray + Sinclair (TV) TEGNA Gray + Scripps Hearst Cox Media Meredi
Slide 8: Excels at Political Revenue
Excels at Political Revenue $9.63 $7.91 2016 Political Revenue Per $5.03 $4.67 $4.25 $4.20 TV Household $3.31 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 Revenue per compan
Slide 9: Well Positioned for Political Revenue
Well Positioned for Political Revenue $19.19 $18.77 $17.57 $17.12 2020 Political $11.60 $9.50 Revenue Per $8.10 TV Household $3.70 (PF) . (Net) Meredith TEGNA Sinclair (TV) Nexstar Scripps + Ion 2020 Political Revenue $692 $473 $430 $186 $446 $374 $508 $265 2020 TV Households 36.1 25.2 24.5 10.9 38.
Slide 10: An Industry Leading Power
An Industry Leading Power The following data is for Gray Television, Inc. BEFORE giving effect to the completed Quincy Acquisition and pending Meredith Acquisition. 9
Slide 11: Diversified Revenue
Diversified Revenue Approximate Advertising 2020 Revenues Revenue Contributions 2019-2020 3% 3% Local 9% Local News National Network Prime 32% 13% Political 3% Network News 36% 50% Retransmission 9% Network Sports Production Companies 8% Syndication 16% 18% Other Other-TV Stations 2020 Big 4 2020 20
Slide 12: Strong Network and Distribution Positions
Strong Network and Distribution Positions MVPD Subscribers Year-End Retransmission Revenue ($ 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 $80
Slide 13: Successful Digital Ventures
Successful Digital Ventures RECORD BREAKING GROWTH FOR OVER 1,000 CHANNELS GRAY’S PLATFORM IN 2020 OVER 2019: STREAMED ACROSS ALL PLATFORMS 2020 SESSIONS: +24% 2020 VIDEO PLAYS: +13% 2020 USERS: +37% 2020 PAGE VIEWS: +13% 1.1 BILLION MONTHLY AGGREGATE USERS IN 2020 Gray’s in-house Digital Agency Ser
Slide 14: Consistent Growth (As Reported Basis)
Consistent Growth (As Reported Basis) ($ 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 $0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017
Slide 15: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Presidential Non-Election Midterm Election Non-Election Presidential 2019 CHB 2020 Election Year Year Year 2018 OCF Year 2019 OCF Election Year Average 2016 OCF Buildup 2017 OCF Buildup Buildup Buildup 2020 OCF Buildup FCF Per Diluted Share FCF Per Dil
Slide 16: Successful Integration of Acquisitions And Meaningful Deleveraging
Successful Integration of Acquisitions And Meaningful Deleveraging Financial Leverage Net of All Cash (as defined in our Senior Credit Facility) 6.0x Guidance YE 2021 Net 5.1x Leverage Ratio: 4.8x 4.4x 3.4x 4.2x 3.95x 3.92x Approximately 5.4x Projected total debt 2.9x 3.0x 2.4x (excluding preferred
Slide 17: Staggered Debt Maturity Profile
Staggered Debt Maturity Profile No Maturities until 2024 ($ in Millions) $2,500 $300 Million Revolver Due Jan 2026 ($299 Million Undrawn; $1 Million Letter of Credit Issued) $299 Term Loan B Due Feb 2024 (L+225) $2,000 Term Loan C Due Jan 2026 (L+250) $4.0 Billion Total Senior Notes Due Jul 2026 (5.
Slide 18: As Reported 2Q 2021
As Reported 2Q 2021 Six Months Ended June 30, % Change % Change 2021 to 2021 to 2021 2020 2020 2019 2019 Revenue (less agency commissions): Broadcasting $ 1,067 $ 964 11 % $ 980 9% Production companies 24 21 14 % 46 (48)% Total revenue $ 1,091 $ 985 11 % $ 1,026 6% Political advertising revenue $ 15
Slide 19: 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 20: Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions
Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions 19
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on As Reported Basis, in millions Six Months Ende d June 30, 2021 2020 2019 Net income $ 78 $ 64 $ 26 Adjustments to reconcile from net income to Free Cash Flow: Depreciation 50 42 40 Amortization of intangible assets 53 52 57 Non-cash stock-b
Slide 22: 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
Slide 23: 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 24: Reconciliation of Total Leverage Ratio (in millions)
Reconciliation of Total Leverage Ratio (in millions) Eight Quarters Ended June 30, 2021 Net income $ 642 Adjustments to reconcile from net income to Operating Cash Flow as defined in our Senior Credit Agreement: Depreciation 186 Amortization of intangible assets 216 Non-cash stock-based compensation
Slide 25: 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 26: 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 27: Gray Television, Inc.
Gray Television, Inc. 4370 Peachtree Rd., NE Atlanta, Georgia 30319 www.gray.tv 26