Slide 1: Gray Television, Inc. Investor Presentation
Gray Television, Inc. Investor Presentation NYSE:GTN February 2023 Updated for December 31, 2022 Financial Information 4370 Peachtree Road, NE, Atlanta, GA 30319 | P 404.504.9828 | F 404.261.9607 | www.gray.tv 1
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 2023
National Footprint in 2023 1 Albany, GA (161) WALB, wecw, Wrse 2 Alexanaria, LACI80) KALS 8 Amaro, TX (187) KFDA, KEYU 44 Anchorage, AK (148) KTUU, KYES, KAUU 83 Allanta, GA (10) WANE, WPCH, WKTB 6 Augusta, GA (ITT) WDM, WAGT WERT 7 Bangor, ME (151) WABI 8 Baton Rouge, LA (63) WAFS, wax 9 Bllox!-Gul
Slide 4: Gray Is the Nation's Second Largest Broadcaster
Gray Is the Nation’s Second Largest $3.4 Billion Average 2021/22 Revenue (CHB) Broadcaster Billion Average 2021/22 $1.2 Operating Cash Flow (CHB) Gray Owns the Most 35% Average 2021/22 OCF/ #1 Ranked Local News Revenue Margin (CHB) Television Stations of Any Broadcaster 4
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 70% 89% 629 55 channels Markets with Markets Markets Million video owned with #1 with #1 plays on 56 channels and/or ranked and/or #2 Gray-owned operated TV local TV ranked digital stations stations loca
Slide 6: Growing and Diversifying Revenue
Growing and Diversifying Revenue (Average 2018-2022 CHB, $ in millions) 4000 $3,415 3500 $3,253 5% $3,011 $3,147 4% 5% 3000 5% 43% 2500 42% 36% 39% 2000 1500 59% 56% 1000 54% 52% 500 0 2018/19 2019/20 2020/21 2021/22 Revenue Type CHB ($ in 2018/ 2019/ 2020/ 2021/ Millions) 2019 2020 2021 2022 Advert
Slide 7: Solid Distribution Profile
Solid Distribution Profile Retransmission Revenue (2018-2022 CHB) ($ in millions) All Network Renewals: e ve nu Re Legacy ns 1600 tr a 2023 Meredith T Re Renewals: n NE $1,496 G Ri $1,429 1400 CA MVPD Retrans 22% (Q1) .5 % +5 $1,276 Renewals (subs): 18% (Q2) 1200 $1,175 593 587 $1,004 1000 544 All N
Slide 8: Gray Excels at Political Revenue
Gray Excels at Political Revenue $14.66 2022 Political $9.13 $8.73 $7.65 Revenue Per TV Household $2.99 Gray TEGNA Sinclair (TV) Nexstar Scripps 2022 Political Revenue $515 $341 $332 $506 $208 2022 TV Households 35.1 37.4 38.0 66.1 69.5 $18.06 2020 Political $11.64 $9.52 Revenue Per $8.13 TV Househo
Slide 9: Well Positioned for 2024 Political Revenue
Well Positioned for 2024 Political Revenue Approximate Political Advertising Revenue by Race Type 2016-2022 +38% Political Advertising Revenue (CHB and As Reported, as indicated below, Increase in 2022 over Prior figures in millions of dollars) Mid-Term Election Year of 2018 on a Combined Historical
Slide 10: 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. 2022 Digital Metr
Slide 11: 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 12: Robust Free Cash Flow Allows Rapid Deleveraging
No Significant Maturities until 2026* Robust Free Cash 2500 $2,405 $500 $2,100 Flow Allows Rapid 2000 Deleveraging. 1500 $1,410 $1,300 $1,190 Interest rate caps 1000 $765 entered into in $700 $750 $800 February 2023 500 effectively eliminate 0 $15 2023 $15 2024 $15 2025 $15 2026 $15 2027 2028 2029 a
Slide 13: Robust Free Cash Flow Generation and Conversion
Robust Free Cash Flow Generation and Conversion Midterm Election Non-Election Presidential Non-Election Midterm Election 2021 CHB / Year 2018 OCF Year 2019 OCF Election Year Year 2021 OCF Year 2022 OCF 2022 Average Buildup Buildup 2020 OCF Buildup Buildup Buildup FCF Per Diluted Share FCF Per Dilute
Slide 14: Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions
Appendix: Non-GAAP Reconciliations, Disclaimers, and Definitions 14
Slide 15: As Reported 2022
Corporate and administrative $ 24 $ 84 (71)% $ 18 33 % Net income $ 186 $ 29 541 % $ 224 (17)% As Reported 2022 Non-GAAP Cash Flow (2): Broadcast Cash Flow $ 485 $ 258 88 % $ 424 14 % Dollars in millions Broadcast Cash Flow Less Cash Corporate Expenses $ 465 $ 177 163 % $ 409 14 % Free Cash Flow (3)
Slide 16: Combined Historical Basis 2022
Production companies $ 27 $ 23 17 % $ 20 35 % Corporate and administrative $ 24 $ 84 (71)% $ 18 33 % Non-GAAP Cash Flow (2): Combined Historical Basis$ 2022 Broadcast Cash Flow Broadcast 484 $ 311 56 % $ 624 (22)% Dollars in Cash Flow Less Cash Corporate Expenses millions 464 $ 230 102 % $ 609 (24)
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on As Reported Basis, in millions Ye ar Ende d De ce mbe r 31, 2022 2021 2020 2019 2018 Net income $ 455 $ 90 $ 410 $ 179 $ 211 Adjustments to reconcile from net income to Free Cash Flow: Depreciation 129 104 96 80 54 Amortization of intangibl
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP terms on A Combined Historical Basis, in millions Ye ar Ende d De ce mbe r 31, 2022 2021 2020 2019 2018 Net income $ 455 $ 265 $ 635 $ 310 $ 523 Adjustments to reconcile from net income to Free Cash Flow: Depreciation 129 128 128 111 114 Amortizatio
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 21