On May 7, 2024, Gray Television Inc (GTN.A, Financial) disclosed its financial outcomes for the first quarter, ending March 31, 2024, through an 8-K filing. The company, a major player in the television broadcast industry, reported a robust total revenue of $823 million and operating expenses of $632 million before depreciation, amortization, and loss on disposal of assets.
Gray Television Inc, headquartered in Atlanta, Georgia, operates as the nation’s largest owner of top-rated local television stations and digital assets. The company's portfolio includes 79 markets with the top-rated television station and 102 markets with the first or second highest-rated television station. It also owns various video program production companies and studio production facilities.
Financial and Operational Highlights
The first quarter of 2024 saw a $15 million or 4% increase in core advertising revenue, amounting to $372 million, compared to the same period in 2023. This growth underscores a full recovery from the pandemic, with current figures surpassing pre-pandemic levels by 3%. The quarter benefited significantly from high advertiser demand for local content, including major sporting events broadcasted on Gray's stations.
Political advertising is poised for growth, with revenue expected to increase by 55% to 72% in the second quarter compared to the second quarter of 2020. This anticipation is based on the competitive political races across numerous markets in the country.
Financially, Gray Television has been proactive in strengthening its balance sheet. Notably, the company received $110 million in pre-tax cash proceeds from the sale of Broadcast Music, Inc. (BMI), using $50 million to fully pay off its Revolving Credit Facility. Additionally, Gray has upsized its revolving credit facility to $625 million due to strong demand from its banking group.
Strategic Financial Decisions
On May 6, 2024, Gray's Board of Directors authorized a new debt repurchase program, allowing the company to use up to $250 million of available liquidity to repurchase outstanding indebtedness through December 31, 2025. This strategic move is aimed at optimizing the company's capital structure and enhancing shareholder value.
Forward Guidance and Future Outlook
Looking ahead to the second quarter of 2024, Gray Television anticipates core advertising revenue to range between $379 million and $385 million. The company also expects total revenue to be between $828 million and $846 million for the same period. These projections reflect the company's confidence in its operational strategy and market conditions.
For the full year of 2024, Gray Television projects significant financial metrics including an interest expense of $440 million and total capital expenditures ranging from $115 million to $120 million. These figures are part of the company's comprehensive strategy to maintain its industry leadership and capitalize on market opportunities.
Gray Television's first quarter performance of 2024 demonstrates a solid start to the year, driven by strategic initiatives and strong market demand. With its robust portfolio and proactive financial management, Gray is well-positioned to continue its growth trajectory and enhance value for its stakeholders.
Conference Call and Additional Information
Gray Television will host a conference call on May 7, 2024, to discuss detailed first quarter results and provide further insights into its operations and strategy. More information about the company and its operations can be found on its website at www.gray.tv.
Explore the complete 8-K earnings release (here) from Gray Television Inc for further details.
