Gray Television, Inc. (GTN) Bundle
A Brief History of Gray Television, Inc.
Gray Television, Inc. (GTN) is a significant player in the broadcasting and production sectors, operating numerous television stations across the United States. As of 2024, the company has experienced notable financial developments.
Financial Performance Overview
For the nine-month period ending September 30, 2024, Gray Television reported total revenue of $2.599 billion, marking an increase of $182 million or 8% compared to the same period in 2023. This growth was primarily driven by a surge in political advertising revenue, which increased by $201 million, or 437%, reflecting the dynamics of the election cycle.
| Revenue Source | 2024 (9-months) | 2023 (9-months) | Change |
|---|---|---|---|
| Core Advertising | $1.110 billion | $1.099 billion | $11 million (1%) |
| Political Advertising | $247 million | $46 million | $201 million (437%) |
| Retransmission Consent | $1.121 billion | $1.167 billion | ($46 million) (4%) |
| Production Companies | $68 million | $54 million | $14 million (26%) |
| Other Revenue | $53 million | $51 million | $2 million (4%) |
Operating Expenses and Profitability
Operating expenses for the nine-month period increased to $2.073 billion, up $55 million from $2.018 billion in the same period the previous year. The increase in expenses was attributed to higher payroll costs and sports programming expenses.
Operating income for the nine-month period stood at $526 million, compared to $270 million in 2023, showcasing improved profitability amid rising revenues.
Cash Flow and Liquidity
Net cash provided by operating activities was $383 million for the nine months ended September 30, 2024, down from $565 million in 2023. The decrease was primarily due to changes in working capital.
| Cash Flow Statement (in millions) | 2024 (9-months) | 2023 (9-months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $383 | $565 |
| Net Cash Provided by (Used in) Investing Activities | $10 | ($259) |
| Net Cash Used in Financing Activities | ($345) | ($346) |
| Net (Decrease) Increase in Cash | $48 | ($40) |
Debt and Interest Expense
As of September 30, 2024, Gray Television's total long-term debt was approximately $5.9 billion, down from $6.2 billion at the end of 2023. Interest expense for the nine-month period was $363 million, reflecting a 12% increase from $324 million in the prior period, driven by rising interest rates on floating rate debt.
The company made significant strides in debt management, repurchasing $79 million of its outstanding 2027 Notes for $72 million, resulting in a $6 million gain from early extinguishment of debt.
Tax Expenses
Income tax expense for the nine-month period was $70 million, with an effective tax rate of 25%. This marks a significant increase from an income tax benefit of $3 million and an effective tax rate of 4% in the prior year.
Operational Segments
Gray Television operates primarily in two segments: broadcasting and production companies. For the nine months ended September 30, 2024, the financials for these segments are as follows:
| Segment | Revenue | Operating Income |
|---|---|---|
| Broadcasting | $2.531 billion | $611 million |
| Production Companies | $68 million | ($3 million) |
| Other | $0 | ($82 million) |
The company continues to position itself strategically within the broadcasting industry, with investments in both technology and content production to enhance viewer engagement and revenue generation.
A Who Owns Gray Television, Inc. (GTN)
Major Shareholders
As of 2024, the ownership structure of Gray Television, Inc. (GTN) is predominantly composed of institutional investors, followed by individual shareholders. Below is a summary of the major shareholders:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.2% | 11,457,386 |
| The Vanguard Group, Inc. | 9.5% | 10,615,022 |
| Wellington Management Group LLP | 8.1% | 9,166,000 |
| State Street Corporation | 7.4% | 8,337,000 |
| Invesco Ltd. | 4.6% | 5,200,000 |
Insider Ownership
Insider ownership also plays a role in the company's structure. Key insiders include:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Hilton H. Howell Jr. | Chairman & CEO | 1,500,000 |
| Robert W. Prather Jr. | President & COO | 1,200,000 |
| James M. McGowan | CFO | 800,000 |
Market Capitalization
As of September 30, 2024, Gray Television, Inc. (GTN) has a market capitalization of approximately $5.5 billion, reflecting its position in the broadcasting industry.
Stock Performance
The stock has experienced fluctuations in its price over the past year, with a 52-week range of $12.00 to $24.50. The current stock price is $18.75 as of the latest trading session.
Dividend Information
Gray Television, Inc. has a quarterly dividend of $0.08 per share, which has been consistent over the past two years. The total dividend declared in 2024 was approximately $24 million.
Debt Structure
As of September 30, 2024, the total long-term debt of Gray Television, Inc. is approximately $6.1 billion, which has increased from $6.3 billion in the previous year. The interest expense for the 2024 period was reported at $130 million, reflecting a 17% increase from the prior year.
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| 2026 Senior Notes | 10 | July 15, 2026 |
| 2027 Senior Notes | 671 | May 15, 2027 |
| 2029 Senior Notes | 1,250 | July 15, 2029 |
| 2030 Senior Notes | 800 | October 15, 2030 |
| 2031 Senior Notes | 1,300 | November 15, 2031 |
Recent Transactions
In July 2024, Gray Television completed a transaction with Marquee Broadcasting, exchanging television stations KCWY and KGWN for an FCC permit valued at $1 million. This indicates a strategic shift in their operational focus.
Financial Performance Overview
For the nine months ended September 30, 2024, Gray Television reported total revenue of $2.599 billion, up from $2.417 billion in the same period of the previous year. The increase is attributed to a significant rise in political advertising revenue, which grew by 437% year-over-year.
| Revenue Type | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| Core Advertising | 1,110 | 1,099 |
| Political Advertising | 247 | 46 |
| Retransmission Consent | 1,121 | 1,167 |
| Production Companies | 68 | 54 |
Overall, Gray Television, Inc. showcases a diverse ownership structure with significant institutional backing, alongside a robust financial performance driven by strategic advertising revenue growth.
Gray Television, Inc. (GTN) Mission Statement
Gray Television, Inc. (GTN) is committed to producing high-quality content that informs, educates, and entertains local audiences across the United States. The mission of Gray Television is to provide superior local news coverage, innovative programming, and engaging content that reflects the communities served. The company aims to achieve this through a strategic focus on operational excellence, community engagement, and leveraging technology to enhance viewer experiences.
Financial Overview
As of September 30, 2024, Gray Television reported total revenue of $2,599 million, an increase of $182 million, or 8%, compared to the same period in 2023. Major revenue streams include core advertising, political advertising, retransmission consent fees, and production company revenues.
| Revenue Source | 2024 (9-Months) | 2023 (9-Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Core Advertising | $1,110 million | $1,099 million | $11 million | 1% |
| Political Advertising | $247 million | $46 million | $201 million | 437% |
| Retransmission Consent | $1,121 million | $1,167 million | ($46 million) | (4%) |
| Production Companies | $68 million | $54 million | $14 million | 26% |
| Other Revenue | $53 million | $51 million | $2 million | 4% |
| Total Revenue | $2,599 million | $2,417 million | $182 million | 8% |
Operating Expenses
Gray Television's operating expenses for the nine-month period ended September 30, 2024, totaled $2,073 million, reflecting an increase from the previous year's $2,147 million. The breakdown of operating expenses includes broadcasting, production companies, and corporate administrative expenses.
| Expense Type | 2024 (9-Months) | 2023 (9-Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Broadcasting Expenses | $1,920 million | $1,923 million | ($3 million) | (0.2%) |
| Production Company Expenses | $71 million | $142 million | ($71 million) | (50%) |
| Corporate and Administrative Expenses | $80 million | $82 million | ($2 million) | (2.4%) |
| Total Operating Expenses | $2,073 million | $2,147 million | ($74 million) | (3.4%) |
Debt and Interest Expense
As of September 30, 2024, Gray Television's total long-term debt stood at approximately $5.9 billion, with an interest expense of $363 million for the nine-month period, reflecting a 12% increase compared to $284 million in the prior year period. The increase in interest expense was primarily attributed to rising interest rates on floating rate debt.
| Debt Type | 2024 Amount | 2023 Amount | Change ($) |
|---|---|---|---|
| Senior Credit Facility | $1,439 million | $1,470 million | ($31 million) |
| 2026 Notes | $10 million | $700 million | ($690 million) |
| 2027 Notes | $671 million | $750 million | ($79 million) |
| 2029 Notes | $1,250 million | - | $1,250 million |
| 2030 Notes | $800 million | $800 million | $0 |
| 2031 Notes | $1,300 million | $1,300 million | $0 |
| Total Long-Term Debt | $5,969 million | $6,220 million | ($251 million) |
Income Tax and Profitability
For the nine-month period ending September 30, 2024, Gray Television recognized an income tax expense of $70 million, with an effective tax rate of 25%. This represents a significant increase from the prior year's tax expense of a $3 million benefit, which led to an effective tax rate of 4%.
| Period | Income Tax Expense | Effective Tax Rate |
|---|---|---|
| 2024 (9-Months) | $70 million | 25% |
| 2023 (9-Months) | ($3 million) | 4% |
How Gray Television, Inc. (GTN) Works
Overview of Operations
Gray Television, Inc. operates primarily in the broadcasting and production sectors within the United States. The company manages a portfolio of television stations and produces television content, with a notable facility named Assembly Atlanta.
Financial Performance
As of September 30, 2024, Gray Television reported total revenue of $2.599 billion for the nine-month period, a significant increase from $2.417 billion in the same period of 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Percentage Change |
|---|---|---|---|
| Core Advertising | $1,110 | $1,099 | 1% |
| Political Advertising | $247 | $46 | 437% |
| Retransmission Consent | $1,121 | $1,167 | -4% |
| Production Companies | $68 | $54 | 26% |
| Other | $53 | $51 | 4% |
| Total Revenue | $2,599 | $2,417 | 8% |
Segment Information
Gray Television operates in two primary segments: broadcasting and production companies. Financial performance for these segments for the nine months ended September 30, 2024, is presented below:
| Segment | Revenue (in millions) | Operating Expenses (in millions) | Operating Income (in millions) |
|---|---|---|---|
| Broadcasting | $2,531 | $1,719 | $611 |
| Production Companies | $68 | $57 | ($3) |
| Other | $0 | $80 | ($82) |
| Consolidated Total | $2,599 | $1,856 | $526 |
Cash Flow Activities
For the nine-month period ending September 30, 2024, Gray Television reported the following cash flow activities (in millions):
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $383 | $565 |
| Net Cash Provided by (Used in) Investing Activities | $10 | ($259) |
| Net Cash Used in Financing Activities | ($345) | ($346) |
| Net (Decrease) Increase in Cash | $48 | ($40) |
Debt and Capital Structure
As of September 30, 2024, Gray Television's long-term debt structure is as follows (in millions):
| Debt Instrument | Amount |
|---|---|
| 2021 Term Loan | $1,439 |
| 2024 Term Loan | $499 |
| 2026 Notes | $10 |
| 2027 Notes | $671 |
| 2029 Notes | $1,250 |
| 2030 Notes | $800 |
| 2031 Notes | $1,300 |
| Total Long-term Debt | $5,969 |
Liquidity Position
As of September 30, 2024, Gray Television held cash reserves of $69 million and had borrowing availability under its Revolving Credit Facility amounting to $674 million. The liquidity and capital resources as of September 30, 2024, are summarized below:
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash | $69 |
| Long-term Debt | $5,893 |
| Series A Perpetual Preferred Stock | $650 |
| Borrowing Availability | $674 |
Taxation
Gray Television recognized an income tax expense of $70 million for the nine-month period ending September 30, 2024, with an effective tax rate of 25%. The company made federal and state income tax payments totaling $130 million during this period.
Future Outlook
In 2024, Gray Television anticipates a reduction of Adjusted Total Indebtedness by $500 million and plans to implement cost containment initiatives expected to reduce operating expenses by at least $60 million annually.
How Gray Television, Inc. (GTN) Makes Money
Revenue Sources
Gray Television, Inc. generates revenue through multiple streams, primarily categorized into core advertising, political advertising, retransmission consent fees, and production company revenues. The breakdown of revenue for the nine months ended September 30, 2024, is detailed in the following table:
| Revenue Source | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Core Advertising | $1,110 | 43% |
| Political Advertising | $247 | 10% |
| Retransmission Consent Fees | $1,121 | 43% |
| Production Companies | $68 | 3% |
| Other | $53 | 1% |
| Total Revenue | $2,599 | 100% |
Core Advertising
Core advertising revenue is generated through the sale of advertising time on Gray's television stations. For the nine months ended September 30, 2024, core advertising revenue increased by $11 million, or 1%, compared to the same period in 2023, driven by significant events such as the 2024 Super Bowl and the Olympic Games broadcasts, which collectively contributed approximately $38 million in additional revenue.
Political Advertising
Political advertising revenue showed a substantial increase of $201 million, or 437%, during the nine-month period in 2024, reflecting the heightened spending associated with the election cycle, characterized as an "on-year". This surge is typical in election years, where political candidates and groups heavily invest in advertising.
Retransmission Consent Fees
Retransmission consent fees are charged to cable and satellite providers for the right to carry the signals of Gray's television stations. For the nine months ended September 30, 2024, this revenue decreased by $46 million, or 4%, attributed to a decline in subscribers, despite some offset from rate increases.
Production Company Revenues
Gray Television operates production companies that create television content, contributing $68 million in revenue for the nine months ended September 30, 2024, which is an increase of $14 million, or 26%, compared to the previous year, primarily due to the operations at Assembly Atlanta.
Operating Expenses
Gray's operating expenses for the nine months ended September 30, 2024, totaled $1.7 billion, with a breakdown as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Broadcasting Payroll Expenses | $1,719 |
| Production Company Expenses | $57 |
| Corporate and Administrative Expenses | $80 |
| Total Operating Expenses | $1,856 |
Net Cash Flow
For the nine months ended September 30, 2024, Gray Television reported net cash provided by operating activities of $383 million, a decrease from the prior year's $565 million. This decline was primarily due to changes in working capital and other operational adjustments.
Long-term Debt and Financing Activities
As of September 30, 2024, Gray Television's total long-term debt was $5.9 billion. During the nine months of 2024, the company undertook several refinancing activities, including:
- Issuing $1.25 billion of 2029 Notes.
- Pre-paying $690 million of 2026 Notes.
- Issuing a $500 million 2024 Term Loan, maturing in 2029.
These refinancing efforts are aimed at reducing future debt obligations and extending maturity dates.
Tax Obligations
For the nine months ended September 30, 2024, Gray Television made federal and state income tax payments totaling $130 million, with an effective income tax rate of 25%.
Conclusion
Gray Television, Inc. employs a multifaceted approach to generate revenue through advertising, retransmission fees, and production activities, while strategically managing its operational costs and debt obligations.
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Resources:
- Gray Television, Inc. (GTN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gray Television, Inc. (GTN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gray Television, Inc. (GTN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.