8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 7, 2013 (November 7, 2013)

 

 

Gray Television, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Georgia

(State or Other Jurisdiction

of Incorporation)

 

1-13796   58-0285030

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

4370 Peachtree Road, NE, Atlanta, Georgia   30319
(Address of Principal Executive Offices)   (Zip Code)

404-504-9828

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

The information set forth under this Item 2.02 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

On November 7, 2013, Gray Television, Inc. issued a press release reporting its financial results for the three-month and nine-month periods ended September 30, 2013. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1    Press release issued by Gray Television, Inc. on November 7, 2013


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    Gray Television, Inc.
November 7, 2013     By:  

/s/ James C. Ryan

      Name:   James C. Ryan
      Title:   Chief Financial Officer and Senior Vice President


Exhibit Index

 

Exhibit
No.

  

Description

99.1    Press release issued by Gray Television, Inc. on November 7, 2013
EX-99.1

LOGO

Exhibit 99.1

NEWS RELEASE

Gray Reports Operating Results

For the Three-Month and Nine-Month Periods Ended September 30, 2013

Atlanta, Georgia – November 7, 2013… Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN and GTN.A) today announced results from operations for the three-month period (the “third quarter of 2013”) and nine-month period ended September 30, 2013 as compared to the three-month period (the “third quarter of 2012”) and nine-month period ended September 30, 2012.

Highlights:

For the third quarters of 2013 and 2012, our revenue, broadcast expense and corporate and administrative expense were as follows:

 

     Three Months Ended September 30,  
     2013      2012      % Change  
     (in thousands except for percentages)  

Revenue (less agency commissions)

   $ 88,288       $ 102,879         (14 )% 

Operating expenses (before depreciation, amortization and loss on disposal of assets):

        

Broadcast expense

   $ 53,516       $ 52,034         3

Corporate and administrative expense

   $ 4,470       $ 4,010         11

We are pleased with our operating results for the third quarter of 2013. We experienced period over period increases in local advertising, internet advertising and retransmission consent revenue. Our period over period decrease in total revenue was primarily due to the expected decrease in political advertising revenue during the “off-year” of the two-year political advertising cycle.

Our period over period increase in broadcast expenses (excluding depreciation, amortization and loss on disposal of assets) was due primarily to routine increases in salaries, healthcare expense and pension expense, offset in part by a decrease in incentive compensation. Our period over period increase in corporate and administrative expenses (excluding depreciation, amortization and loss on disposal of assets) was due primarily to increases in salaries, relocation expense and stock-based compensation expense, offset in part by a decrease in incentive compensation.

Comments on Results of Operations for the Third Quarter of 2013:

Revenue.

Total revenue decreased $14.6 million, or 14%, to $88.3 million for the third quarter of 2013 compared to the third quarter of 2012. Local and internet advertising revenue, retransmission consent and consulting revenue increased, while political advertising revenue, national advertising revenue and other revenue decreased. In the third quarter of 2013, our local and national advertising revenue did not have the benefit of Olympic advertising revenue as it did in 2012. During the third quarter of 2012, we earned approximately $4.0 million of revenue from local and national advertisers and $1.1 million of revenue from political advertisers during the broadcast of the 2012 Summer Olympics on our ten primary NBC stations.

 

4370 Peachtree Road, NE, Atlanta, GA 30319 | P 404.504.9828 F 404.261.9607 | www.gray.tv


Retransmission consent revenue increased primarily due to increased subscriber counts and rates. Political advertising revenue decreased due to decreased advertising from political candidates and special interest groups in the “off year” of the two-year political advertising cycle.

As previously disclosed, during the third quarter of 2013, we recognized a one-time payment of $7.1 million as incentive consulting revenue associated with a now-expired consulting agreement for services rendered prior to the expiration thereof. We do not expect to recognize any further revenue from this agreement.

The principal components of our revenue for the third quarter of 2013 compared to the third quarter of 2012 were as follows:

Local advertising revenue increased $2.1 million, or 4%, to $48.7 million.

National advertising revenue decreased $0.8 million, or 5%, to $13.6 million.

Internet advertising revenue increased $0.1 million, or 2%, to $6.5 million.

Political advertising revenue decreased $23.1 million, or 94%, to $1.4 million.

Retransmission consent revenue increased $0.6 million, or 8%, to $9.2 million.

Other revenue decreased $0.1 million, or 6%, to $1.8 million.

Consulting revenue increased $6.6 million to $7.1 million.

For the third quarter of 2013, our five largest nonpolitical advertising customer categories on a combined local and national basis, by customer type, demonstrated the following changes in revenue compared to the third quarter of 2012: automotive increased 5%; restaurant increased 2%; medical decreased 9%; communications increased 6%; and furniture and appliances increased 2%.

Operating expenses.

Broadcast expenses (before depreciation, amortization and loss on disposal of assets) increased $1.5 million, or 3%, to $53.5 million for the third quarter of 2013 compared to the third quarter of 2012. This increase was due primarily to an increase in compensation expense of $1.7 million, offset in part by a decrease in non-compensation expense of $0.2 million. Compensation expense increased primarily due to routine increases in salaries, healthcare expense and pension expense, offset in part by a decrease in incentive compensation. Non-compensation expense increased primarily due to increases in programming costs, software license fees and bad debt expense offset in part by decreases in national sales commissions, legal expense and repairs and maintenance expense.

Corporate and administrative expenses (before depreciation, amortization and loss on disposal of assets) increased $0.5 million, or 11%, to $4.5 million. The increase was due primarily to increases in compensation expense of $0.2 million and non-compensation expense of $0.3 million. Compensation expense increased primarily due to an increase in salaries, relocation expense and stock-based compensation expense, offset in part by a decrease in incentive compensation. We recorded non-cash stock-based compensation expense during the third quarter of 2013 and the third quarter of 2012 of $0.3 million and $0.2 million, respectively.

Comments on Results of Operations for the Nine-Month Period Ended September 30, 2013:

Revenue.

Total revenue decreased $27.5 million, or 10%, to $250.7 million for the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012. Local, national and internet advertising revenue, retransmission consent revenue and consulting revenue increased while political advertising revenue and other revenue decreased. Local and national net advertising revenue in the nine months ended September 30, 2013 was positively influenced by the broadcast of the 2013 Super Bowl on our 20 CBS channels, earning us approximately $1.1 million, an increase of approximately $0.3 million compared to the broadcast of the 2012 Super Bowl on our 10 NBC channels that earned us approximately $0.8 million. However, local and national advertising revenue in the nine months ended September 30, 2013 did not

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 2 of 11


benefit from any Olympic Games advertising. Retransmission consent revenue increased primarily due to increased subscriber counts and rates. Political advertising revenue reflected decreased advertising from political candidates and special interest groups during the “off year” of the two-year political advertising cycle. Other revenue decreased due to an anticipated reduction of certain copyright royalty payments during the 2013 period.

As noted in our discussion of our revenue for the third quarter of 2013, we recorded a one-time payment of $7.1 million as incentive consulting revenue associated with a now-expired consulting agreement for services rendered prior to the expiration thereof.

The principal components of our revenue for the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012 were as follows:

Local advertising revenue increased $5.1 million, or 4%, to $146.0 million.

National advertising revenue increased $0.4 million, or 1%, to $42.1 million.

Internet advertising revenue was consistent with the prior year period at $18.4 million.

Political advertising revenue decreased $39.8 million, or 94%, to $2.8 million.

Retransmission consent revenue increased $3.0 million, or 12%, to $28.3 million.

Other revenue decreased $1.4 million, or 18%, to $6.1 million.

Consulting revenue increased $5.2 million to $7.1 million.

In the nine-months ended September 30, 2013, our five largest nonpolitical advertising customer categories on a combined local and national basis, by customer type, demonstrated the following changes in revenue compared to the nine-months ended September 30, 2012: automotive increased 8%; medical decreased 6%; restaurant decreased 1%; communications increased 3%; and furniture and appliances increased 4%.

Operating expenses.

Broadcast expenses (before depreciation, amortization and gain on disposal of assets) increased $3.2 million, or 2%, to $158.8 million for the nine-months ended September 30, 2013 compared to the nine-months ended September 30, 2012. This increase was due primarily to increases in compensation expense of $2.6 million and non-compensation expense of $0.6 million. Compensation expense increased primarily due to increases in salaries, healthcare expense and pension expense, offset in part by a decrease in incentive compensation. Non-compensation expense increased primarily due to increases in programming costs, market research and software license fees, offset in part by a decrease in national sales commissions, legal expense and repairs and maintenance expense.

Corporate and administrative expenses (before depreciation, amortization and gain on disposal of assets) increased $2.8 million, or 26%, to $13.6 million The increase was due primarily to increases in compensation expense of $1.5 million and non-compensation expense of $1.3 million. Compensation expense increased primarily due to an increase in stock-based compensation expense and severance expense resulting from the resignation of a former employee in June 2013. We recorded non-cash stock-based compensation expense during the nine-month periods ended September 30, 2013 and 2012 of $1.7 million and $0.3 million, respectively. Non-compensation expense increased primarily due to increased consulting expenses, legal expenses and travel expenses.

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 3 of 11


Detailed table of operating results:

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands except for net income per share data)

 

     Three Months Ended  
     September 30,  
     2013     2012  

Revenue (less agency commissions)

   $ 88,288      $ 102,879   

Operating expenses before depreciation, amortization and loss on disposal of assets, net:

    

Broadcast

     53,516        52,034   

Corporate and administrative

     4,470        4,010   

Depreciation

     6,024        5,725   

Amortization of intangible assets

     9        19   

Loss on disposals of assets, net

     49        28   
  

 

 

   

 

 

 

Operating expenses

     64,068        61,816   
  

 

 

   

 

 

 

Operating income

     24,220        41,063   

Other expense:

    

Interest expense

     (12,656     (15,155
  

 

 

   

 

 

 

Income before income tax

     11,564        25,908   

Income tax expense

     4,491        10,035   
  

 

 

   

 

 

 

Net income

     7,073        15,873   

Preferred stock dividends (includes accretion of issuance cost of $0 and $479, respectively)

     —          1,233   
  

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 7,073      $ 14,640   
  

 

 

   

 

 

 

Basic per share information:

    

Net income attributable to common stockholders

   $ 0.12      $ 0.26   
  

 

 

   

 

 

 

Weighted-average shares outstanding

     57,713        57,155   
  

 

 

   

 

 

 

Diluted per share information:

    

Net income attributable to common stockholders

   $ 0.12      $ 0.26   
  

 

 

   

 

 

 

Weighted-average shares outstanding

     58,078        57,287   
  

 

 

   

 

 

 

Political advertising revenue (less agency commissions)

   $ 1,377      $ 24,508   

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 4 of 11


Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands except for net income per share data)

 

     Nine Months Ended  
     September 30,  
     2013     2012  

Revenue (less agency commissions)

   $ 250,742      $ 278,244   

Operating expenses before depreciation, amortization and gain on disposal of assets, net:

    

Broadcast

     158,817        155,635   

Corporate and administrative

     13,587        10,745   

Depreciation

     17,762        17,332   

Amortization of intangible assets

     40        56   

Gain on disposals of assets, net

     (56     (454
  

 

 

   

 

 

 

Operating expenses

     190,150        183,314   
  

 

 

   

 

 

 

Operating income

     60,592        94,930   

Other income (expense):

    

Miscellaneous income, net

     —          2   

Interest expense

     (37,790     (45,444
  

 

 

   

 

 

 

Income before income tax expense

     22,802        49,488   

Income tax expense

     9,715        19,250   
  

 

 

   

 

 

 

Net income

     13,087        30,238   

Preferred stock dividends (includes accretion of issuance cost of $0 and $633, respectively)

     —          3,591   
  

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 13,087      $ 26,647   
  

 

 

   

 

 

 

Basic per share information:

    

Net income attributable to common stockholders

   $ 0.23      $ 0.47   
  

 

 

   

 

 

 

Weighted-average shares outstanding

     57,600        57,151   
  

 

 

   

 

 

 

Diluted per share information:

    

Net income attributable to common stockholders

   $ 0.23      $ 0.47   
  

 

 

   

 

 

 

Weighted-average shares outstanding

     57,907        57,209   
  

 

 

   

 

 

 

Political advertising revenue (less agency commissions)

   $ 2,769      $ 42,605   

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 5 of 11


Other Financial Data:

 

     September 30, 2013      December 31, 2012  
     (in thousands)  

Cash

   $ 43,320       $ 11,067   

Long-term debt

   $ 833,073       $ 832,867   

Borrowing availability under our senior credit facility

   $ 40,000       $ 40,000   

 

     Nine Months Ended September 30,  
     2013     2012  
     (in thousands)  

Net cash provided by operating activities

   $ 51,590      $ 90,338   

Net cash used in investing activities

     (19,603     (17,227

Net cash provided by (used in) financing activities

     266        (32,606
  

 

 

   

 

 

 

Net increase in cash

   $ 32,253      $ 40,505   
  

 

 

   

 

 

 

Internet Initiatives:

Our website page view data for the three-month and nine-month periods ended September 30, 2013 compared to the three-month and nine-month periods ended September 30, 2012 is as follows:

Gray Websites - Data

 

     Three Months Ended September 30,  
     2013      2012      % Change  
     (in millions, except percentages)  

Advertising impressions generated

     1,075.7         1,214.6         (11 )% 

Total page views (including mobile page views)

     392.7         399.4         (2 )% 
     Nine Months Ended September 30,  
     2013      2012      % Change  
     (in millions, except percentages)  

Advertising impressions generated

     3,465.6         3,323.5         4

Total page views (including mobile page views)

     1,162.8         1,163.2         0

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 6 of 11


Guidance for the Three Months Ending December 31, 2013 (the “fourth quarter of 2013”)

We currently anticipate that our results of operations for the fourth quarter of 2013 will be within the ranges presented in the table below. These estimates include the expected results of operations of the stations owned by Yellowstone Television, LLC and Excalibur Broadcasting, LLC, each of which will be included in our consolidated results of operations in accordance with US GAAP from their respective dates of acquisition.

 

     Low End      % Change     High End      % Change        
     Guidance for      From     Guidance for      From     Actual  
     the Fourth      Actual Fourth     the Fourth      Actual Fourth     Fourth  
     Quarter of      Quarter of     Quarter of      Quarter of     Quarter of  

Selected operating data:

   2013      2012     2013      2012     2012  
            (dollars in thousands)  

OPERATING REVENUE:

            

Revenue (less agency commissions)

   $ 92,000         (27 )%    $ 94,000         (26 )%    $ 126,587   

OPERATING EXPENSES

            

(before depreciation, amortization and (gain) loss on disposals of assets):

            

Broadcast

   $ 58,000         2   $ 59,000         4   $ 56,651   

Corporate and administrative

   $ 4,000         (23 )%    $ 4,500         (13 )%    $ 5,182   

OTHER SELECTED DATA:

            

Political advertising revenue (less agency commissions)

   $ 800         (98 )%    $ 1,000         (98 )%    $ 43,368   

Comments on Guidance:

Fourth Quarter of 2013.

Based on our current forecasts for the fourth quarter of 2013, we anticipate the following changes from the three-month period ended December 31, 2012 (the “fourth quarter of 2012”):

Revenue.

 

    We believe our fourth quarter of 2013 local advertising revenue, excluding political advertising revenue, will increase from the fourth quarter of 2012 by approximately 10%.

 

    We expect our fourth quarter of 2013 national advertising revenue, excluding political advertising revenue, will increase from the fourth quarter of 2012 by approximately 8%.

 

    We anticipate our fourth quarter of 2013 internet advertising revenue, excluding political advertising revenue, will increase from the fourth quarter of 2012 by approximately 5%.

 

    We believe our fourth quarter of 2013 retransmission consent revenue will increase from the fourth quarter of 2012 by approximately 28%.

 

    We do not anticipate any significant political advertising revenue in the fourth quarter of 2013, continuing to reflect the “off year” of the two-year political advertising cycle and the absence of any special elections and special political issue advertising campaigns in our markets.

 

    We do not anticipate recording any consulting revenue in the fourth quarter of 2013.

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 7 of 11


Revenue (less agency commissions) by Category:

The table below presents our revenue (less agency commissions) or “net revenue” by type for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively (dollars in thousands):

 

     Three Months Ended September 30,  
     2013     2012  
            Percent            Percent  
     Amount      of Total     Amount      of Total  

Revenue (less agency commissions):

  

    

Local

   $ 48,728         55.2   $ 46,670         45.4

National

     13,585         15.4     14,341         13.9

Internet

     6,476         7.3     6,369         6.2

Political

     1,377         1.6     24,508         23.8

Retransmission consent

     9,165         10.4     8,518         8.3

Other

     1,814         2.1     1,923         1.9

Consulting

     7,143         8.0     550         0.5
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 88,288         100.0   $ 102,879         100.0
  

 

 

    

 

 

   

 

 

    

 

 

 
     Nine Months Ended September 30,  
     2013     2012  
            Percent            Percent  
     Amount      of Total     Amount      of Total  

Revenue (less agency commissions):

  

    

Local

   $ 146,025         58.2   $ 140,962         50.7

National

     42,061         16.8     41,668         15.0

Internet

     18,439         7.4     18,420         6.6

Political

     2,769         1.1     42,605         15.3

Retransmission consent

     28,253         11.3     25,275         9.1

Other

     6,052         2.4     7,419         2.7

Consulting

     7,143         2.8     1,895         0.6
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 250,742         100.0   $ 278,244         100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

The aggregate internet revenues presented above are derived from: (i) direct internet revenue and (ii) internet-related commercial time sales.

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 8 of 11


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 and Broadcast Cash Flow Less Cash Corporate Expenses. These non-GAAP amounts are used by us to approximate the amount used to calculate a key financial performance covenant contained in our debt agreements. Broadcast Cash Flow is defined as net income plus corporate and administrative expenses, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense and any income tax expense, less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast obligations and network compensation revenue and network payments. Corporate and administrative expenses (excluding depreciation, amortization and non-cash stock based compensation) are deducted from Broadcast Cash Flow to calculate “Broadcast Cash Flow Less Cash Corporate Expenses.” These non-GAAP terms are not defined in GAAP and our definitions may differ from, and therefore not be comparable to, similarly titled measures used by other companies, thereby limiting their usefulness. Such terms are used by management in addition to and in conjunction with results presented in accordance with GAAP and should be considered as supplements to, and not as substitutes for, net income and cash flows reported in accordance with GAAP.

Reconciliations:

Reconciliation of net income to the non-GAAP terms (dollars in thousands):

 

     Three Months Ended September 30,  
     2013     2012     % Change  

Net income

   $ 7,073      $ 15,873     

Adjustments to reconcile from net income to Broadcast Cash Flow Less Cash Corporate Expenses:

      

Depreciation

     6,024        5,725     

Amortization of intangible assets

     9        19     

Non-cash stock based compensation

     255        170     

Loss on disposals of assets, net

     49        28     

Interest expense

     12,656        15,155     

Income tax expense

     4,491        10,035     

Amortization of program broadcast rights

     2,829        2,773     

Common stock contributed to 401(k) plan excluding corporate 401(k) contributions

     7        6     

Network compensation revenue recognized

     (156     (157  

Payments for program broadcast rights

     (2,849     (2,790  
  

 

 

   

 

 

   

Broadcast Cash Flow Less Cash Corporate Expenses

     30,388        46,837        (35 )% 

Corporate and administrative expenses excluding depreciation, amortization of intangible assets and non-cash stock based compensation

     4,215        3,840     
  

 

 

   

 

 

   

Broadcast Cash Flow

   $ 34,603      $ 50,677        (32 )% 
  

 

 

   

 

 

   

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 9 of 11


     Nine Months Ended September 30,  
     2013     2012     % Change  

Net income

   $ 13,087      $ 30,238     

Adjustments to reconcile from net income to Broadcast Cash Flow Less Cash Corporate Expenses:

      

Depreciation

     17,762        17,332     

Amortization of intangible assets

     40        56     

Non-cash stock based compensation

     1,719        324     

Gain on disposals of assets, net

     (56     (454  

Miscellaneous income, net

     —          (2  

Interest expense

     37,790        45,444     

Income tax expense

     9,715        19,250     

Amortization of program broadcast rights

     8,492        8,250     

Common stock contributed to 401(k) plan excluding corporate 401(k) contributions

     21        18     

Network compensation revenue recognized

     (470     (470  

Network compensation per network affiliation agreement

     —          (60  

Payments for program broadcast rights

     (8,549     (8,386  
  

 

 

   

 

 

   

Broadcast Cash Flow Less Cash Corporate Expenses

     79,551        111,540        (29 )% 

Corporate and administrative expenses excluding depreciation, amortization of intangible assets and non-cash stock based compensation

     11,868        10,421     
  

 

 

   

 

 

   

Broadcast Cash Flow

   $ 91,419      $ 121,961        (25 )% 
  

 

 

   

 

 

   

The Company

We are a television broadcast company headquartered in Atlanta, Georgia, that owns and operates television stations in 31 television markets broadcasting 46 channels affiliated with one of the “Big 4 Networks” (ABC, CBS, FOX and NBC) and 42 additional channels of programming. We also operate additional television stations that broadcast channels affiliated with ABC, CBS, NBC, CW, and Telemundo. Our owned and/or operated television stations collectively broadcast twenty-three channels affiliated with the CBS Network, fourteen channels affiliated with the NBC Network, nine channels affiliated with the ABC Network and five channels affiliated with the FOX Network.

Within a market, our additional broadcast channels are generally affiliated with networks different from those affiliated with our “Big 4 Network” channels, and are operated by us to make better use of our broadcast spectrum by providing supplemental and/or alternative programming to our “Big 4 Network” channels. Certain of our additional channels are affiliated with more than one network simultaneously. Our additional channels are affiliated with networks such as “MyNetworkTV”, the CW Network or the CW Plus Network, the MeTV Network, This TV Network, the Live Well Network, Antenna TV and Telemundo. We also broadcast eight local news/weather channels in certain of our existing markets. Our combined TV station group reaches approximately 6.5% of total United States households.

Cautionary Statements for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act

This press release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. These “forward-looking statements” are not statements of historical facts, and may include, among other things, statements regarding our current expectations and beliefs of operating results for the fourth quarter 2013 or other periods, business and internet strategies, future expenses and other future events. Actual results are subject to a number of risks and uncertainties and may differ materially from the current expectations and beliefs discussed in this press release. All information set forth in this release is as of November 7, 2013. We do not intend, and undertake no duty, to update this information to reflect future events or circumstances.

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

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Information about certain potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2012 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013, each of which is on file with the U.S. Securities and Exchange Commission (the “SEC”) and available at the SEC’s website at www.sec.gov.

Conference Call Information

We will host a conference call to discuss our third quarter operating results on November 7, 2013. The call will begin at 9:00 AM Eastern Time. The live dial-in number is 1 (888) 505-4369 and the confirmation code is 6261107. The call will be webcast live and available for replay at www.gray.tv. The taped replay of the conference call will be available at 1 (888) 203-1112, Confirmation Code: 6261107 until December 7, 2013.

 

For information contact:   
Hilton Howell    Jim Ryan
President and Chief Executive Officer    Senior V.P. and Chief Financial Officer
(404) 266-5512    (404) 504-9828
Web Site: www.gray.tv   

 

Gray Television, Inc.

Earnings Release for the three-month and nine-month periods ended September 30, 2013

  Page 11 of 11