Gray Television reports strong financial second quarter
Aug. 7—ATLANTA — Gray Television Inc. recently announced strong financial results for the second quarter that ended June 30, including a 231% increase in net income attributable to common stockholders, compared to the second quarter of 2021.
Overall, the second quarter of 2022 produced record results, including $868 million in total revenue, due to the combination of recent acquisitions, added scale, increasingly efficient integrated operations, and the "on-year" of the two-year political advertising cycle. Company officials said they anticipate continued strong financial results for the remainder of the year, especially political advertising revenue.
Based on current forecasts, the company now anticipate that its political advertising revenue for calendar year 2022 will match the $652 million of political advertising revenue that the current portfolio of stations recorded in 2020, a presidential election year.
Gray's strong cash flow in the second quarter of 2022 enabled the company to return $125 million of capital to its shareholders during the second quarter by paying down $54 million of outstanding debt; repurchasing $50 million of common stock in the open market, and paying $21 million of cash dividends to preferred and common shareholders. Even after these actions, Gray ended the quarter with $162 million cash on hand. Strong operating results and political advertising revenue are expected to enable Gray to fund additional de-leveraging and cash dividend payments during the remainder of the year.
Summary of Second Quarter Operating Results: As Reported Basis (the respective 2021 periods reflect the "off-year" of the two-year political advertising cycle):
—Total revenue was $868 million, an increase of 59% from the second quarter of 2021.
—Net income attributable to common stockholders was $86 million, or $0.91 per fully diluted share, an increase of 231% from the second quarter of 2021.
—Broadcast Cash Flow was $327 million, an increase of 79% from the second quarter of 2021.
—Adjusted EBITDA was $309 million, an increase of 82% from the second quarter of 2021.
Combined Historical Basis (the respective 2021 periods reflect the "off-year" of the two year political advertising cycle):
—Revenue was $868 million, an increase of 15% from the second quarter of 2021.
—Core Advertising Revenue decreased less than 1% from the second quarter of 2021.
—Broadcast Cash Flow was $330 million, an increase of 25% from the second quarter of 2021.
Other Key Metrics
As of June 30, 2022, Gray TV's Total Leverage Ratio, Net of all Cash, was 5.16 times on a trailing eight-quarter basis, netting a total cash balance of $162 million and giving effect to all Transaction Related Expenses, which is calculated as set forth in our Senior Credit Facility.
During the and six-months ended June 30, Gray incurred Transaction Related Expenses on an As Reported Basis that included but were not limited to legal and professional fees, severance and incentive compensation and contract termination fees.
