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gtn20190820_8k.htm

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) August 21, 2019 (August 21, 2019)

Gray Television, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Georgia

(State or Other Jurisdiction of Incorporation)

001-13796		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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock (no par value)	GTN.A	New York Stock Exchange
common stock (no par value)	GTN	New York Stock Exchange

Item 7.01 - Regulation FD Disclosure.

On August 21, 2019, the Company published on its corporate website certain unaudited selected historical operating data for the three month and year-to-date periods ended March 31 and June 30, 2019 and March 31, June 30, September 30, and December 31, 2018, 2017 and 2016. A copy of such unaudited selected historical operating data is furnished as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.

The information set forth under this item 7.01 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 to be incorporated by reference in any filing under the Securities Act of 1933, except as may be expressly set forth by specific reference in such filing.

Item 9.01 - Financial Statements and Exhibits

Number	Name

99.1	Unaudited selected historical operating data

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.

Date: August 21, 2019

	By:	/s/ James C. Ryan
	Name:	James C. Ryan
	Title:	Executive Vice President and
		Chief Financial Officer

ex_156008.htm

Exhibit 99.1

Gray Television, Inc.
Selected Operating Data (Unaudited)
(in thousands)

As Reported Basis

	2019
	Three Months Ended						Year To Date Ended
	March 31		June 30		September 30	December 31	June 30		September 30	December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	211,142	$	226,318			$	437,460
National		50,029		55,678				105,707
Political		2,628		5,408				8,036
Retransmission consent		203,940		201,335				405,275
Other		13,174		10,666				23,840
Total Broadcast revenue		480,913		499,405				980,318
Production companies revenue		36,781		8,980				45,761
Total revenue	$	517,694	$	508,385			$	1,026,079

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	216,517	$	208,311			$	424,828
Retransmission expenses		104,201		104,131				208,332
Transaction Related Expenses		35,362		1,221				36,583
Non-cash stock-based compensation		33		654				687
Total broadcast expenses	$	356,113	$	314,317			$	670,430

Production companies expense	$	35,336	$	9,016			$	44,352

Corporate and administrative:
Corporate expenses	$	13,507	$	17,370			$	30,877
Transaction Related Expenses		32,022		1,175				33,197
Non-cash stock-based compensation		2,521		2,285				4,806
Total corporate and administrative expense	$	48,050	$	20,830			$	68,880

Total Transaction Related Expenses	$	67,384	$	2,396			$	69,780
Total non-cash stock-based compensation	$	2,554	$	2,939			$	5,493

See last page of exhibit for note

Page 1 of 8

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

As Reported Basis

	2018
	Three Months Ended									Year To Date Ended
	March 31		June 30			September 30		December 31		June 30		September 30		December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	105,469	$	112,921		$	106,929	$	117,409	$	218,390	$	325,319	$	442,728
National		24,512		29,873			29,199		30,608		54,385		83,584		114,192
Political		5,775		18,070			48,018		83,211		23,845		71,863		155,074
Retransmission consent		85,551		85,307			91,603		92,962		170,858		262,461		355,423
Other		4,951		4,173			3,561		4,030		9,124		12,685		16,715
Total Broadcast revenue		226,258		250,344			279,310		328,220		476,602		755,912		1,084,132
Production companies revenue		-		-			-		-		-		-		-
Total revenue	$	226,258	$	250,344		$	279,310	$	328,220	$	476,602	$	755,912	$	1,084,132

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	106,733	$	100,185		$	103,034	$	116,660	$	206,918	$	309,952	$	426,612
Retransmission expenses		41,713		39,171			41,415		42,735		80,884		122,299		165,034
Transaction Related Expenses		-		2,583			300		-		2,583		2,883		2,883
Non-cash stock-based compensation		1,208		(20	)		343		343		1,188		1,531		1,874
Total broadcast expenses	$	149,654	$	141,919		$	145,092	$	159,738	$	291,573	$	436,665	$	596,403

Production companies expense	$	-	$	-		$	-	$	-	$	-	$	-	$	-

Corporate and administrative:
Corporate expenses	$	7,122	$	5,938		$	7,368	$	7,236	$	13,060	$	20,428	$	27,664
Transaction Related Expenses		188		3,661			2,371		2,238		3,849		6,220		8,458
Non-cash stock-based compensation		949		1,234			1,302		1,302		2,183		3,485		4,787
Total corporate and administrative expense	$	8,259	$	10,833		$	11,041	$	10,776	$	19,092	$	30,133	$	40,909

Total Transaction Related Expenses	$	188	$	6,244		$	2,671	$	2,238	$	6,432	$	9,103	$	11,341
Total non-cash stock-based compensation	$	2,157	$	1,214		$	1,645	$	1,645	$	3,371	$	5,016	$	6,661

See last page of exhibit for note

Page 2 of 8

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

As Reported Basis

	2017
	Three Months Ended										Year To Date Ended
	March 31		June 30			September 30			December 31		June 30		September 30		December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	102,597	$	117,917		$	110,033		$	120,714	$	220,514	$	330,547	$	451,261
National		24,814		30,981			31,027			31,995		55,795		86,822		118,817
Political		1,321		3,708			4,005			7,464		5,029		9,034		16,498
Retransmission consent		67,573		69,371			70,150			69,509		136,944		207,094		276,603
Other		7,156		4,704			3,762			3,927		11,860		15,622		19,549
Total Broadcast revenue		203,461		226,681			218,977			233,609		430,142		649,119		882,728
Production companies revenue		-		-			-			-		-		-		-
Total revenue	$	203,461	$	226,681		$	218,977		$	233,609	$	430,142	$	649,119	$	882,728

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	99,583	$	99,664		$	104,017		$	111,489	$	199,247	$	303,264	$	414,753
Retransmission expenses		32,265		33,758			34,733			35,590		66,023		100,756		136,346
Transaction Related Expenses		1,344		(95	)		436			880		1,249		1,685		2,565
Non-cash stock-based compensation		364		356			356			2,823		720		1,076		3,899
Total broadcast expenses ⁽¹⁾	$	133,556	$	133,683		$	139,542		$	150,782	$	267,239	$	406,781	$	557,563

Production companies expense	$	-	$	-		$	-		$	-	$	-	$	-	$	-

Corporate and administrative:
Corporate expenses	$	6,180	$	6,813		$	7,218		$	5,838	$	12,993	$	20,211	$	26,049
Transaction Related Expenses		556		541			(64	)		103		1,097		1,033		1,136
Non-cash stock-based compensation		974		1,078			1,176			1,176		2,052		3,228		4,404
Total corporate and administrative expense ⁽¹⁾	$	7,710	$	8,432		$	8,330		$	7,117	$	16,142	$	24,472	$	31,589

Total Transaction Related Expenses	$	1,900	$	446		$	372		$	983	$	2,346	$	2,718	$	3,701
Total non-cash stock-based compensation	$	1,338	$	1,434		$	1,532		$	3,999	$	2,772	$	4,304	$	8,303

See last page of exhibit for note

Page 3 of 8

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

As Reported Basis

	2016
	Three Months Ended								Year To Date Ended
	March 31		June 30		September 30		December 31		June 30		September 30		December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	89,354	$	104,727	$	102,172	$	107,083	$	194,081	$	296,253	$	403,336
National		22,079		26,070		25,426		24,776		48,149		73,575		98,351
Political		9,655		9,649		22,272		48,519		19,304		41,576		90,095
Retransmission consent		47,269		50,549		51,096		51,965		97,818		148,914		200,879
Other		5,366		5,638		3,524		5,276		11,004		14,528		19,804
Total Broadcast revenue		173,723		196,633		204,490		237,619		370,356		574,846		812,465
Production companies revenue		-		-		-		-		-		-		-
Total revenue	$	173,723	$	196,633	$	204,490	$	237,619	$	370,356	$	574,846	$	812,465

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	85,828	$	92,657	$	95,323	$	101,836	$	178,485	$	273,808	$	375,644
Retransmission expenses		22,338		23,950		25,058		26,338		46,288		71,346		97,684
Transaction Related Expenses		55		390		-		-		445		445		445
Non-cash stock-based compensation		315		302		302		302		617		919		1,221
Total broadcast expenses ⁽¹⁾	$	108,536	$	117,299	$	120,683	$	128,476	$	225,835	$	346,518	$	474,994

Production companies expense	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Corporate and administrative:
Corporate expenses	$	7,965	$	7,041	$	5,760	$	7,234	$	15,006	$	20,766	$	28,000
Transaction Related Expenses		6,735		510		488		709		7,245		7,733		8,442
Non-cash stock-based compensation		970		969		969		969		1,939		2,908		3,877
Total corporate and administrative expense ⁽¹⁾	$	15,670	$	8,520	$	7,217	$	8,912	$	24,190	$	31,407	$	40,319

Total Transaction Related Expenses	$	6,790	$	900	$	488	$	709	$	7,690	$	8,178	$	8,887
Total non-cash stock-based compensation	$	1,285	$	1,271	$	1,271	$	1,271	$	2,556	$	3,827	$	5,098

See last page of exhibit for note

Page 4 of 8

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

Combined Historical Basis⁽²⁾

	2019
	Three Months Ended						Year To Date Ended
	March 31		June 30		September 30	December 31	June 30		September 30	December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	212,311	$	226,318			$	438,629
National		50,438		55,678				106,116
Political		2,628		5,408				8,036
Retransmission consent		205,062		201,335				406,397
Other		13,168		10,666				23,834
Total Broadcast revenue		483,607		499,405				983,012
Production companies revenue		36,781		8,980				45,761
Total revenue	$	520,388	$	508,385			$	1,028,773

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	218,657	$	208,290			$	426,947
Retransmission expenses		104,812		104,130				208,942
Transaction Related Expenses		35,362		1,221				36,583
Non-cash stock-based compensation		33		654				687
Total broadcast expenses	$	358,864	$	314,295			$	673,159

Production companies expense	$	35,336	$	9,016			$	44,352

Corporate and administrative:
Corporate expenses	$	13,507	$	17,370			$	30,877
Transaction Related Expenses		32,022		1,175				33,197
Non-cash stock-based compensation		2,521		2,285				4,806
Total corporate and administrative expense	$	48,050	$	20,830			$	68,880

Total Transaction Related Expenses	$	67,384	$	2,396			$	69,780
Total non-cash stock-based compensation	$	2,554	$	2,939			$	5,493

See last page of exhibit for notes

Page 5 of 8

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

Combined Historical Basis⁽²⁾

	2018
	Three Months Ended									Year To Date Ended
	March 31		June 30			September 30		December 31		June 30		September 30		December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	215,380	$	229,829		$	220,254	$	242,675	$	445,209	$	665,463	$	908,138
National		53,985		61,407			60,498		65,397		115,392		175,890		241,287
Political		8,893		31,065			67,606		126,900		39,958		107,564		234,464
Retransmission consent		163,362		163,568			170,410		176,908		326,930		497,340		674,248
Other		10,844		11,697			10,416		9,631		22,541		32,957		42,588
Total Broadcast revenue		452,464		497,566			529,184		621,511		950,030		1,479,214		2,100,725
Production companies revenue		35,362		9,278			18,978		22,496		44,640		63,618		86,114
Total revenue	$	487,826	$	506,844		$	548,162	$	644,007	$	994,670	$	1,542,832	$	2,186,839

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	216,175	$	212,275		$	214,749	$	241,243	$	428,450	$	643,199	$	884,442
Retransmission expenses		85,941		83,838			88,636		90,499		169,779		258,415		348,914
Transaction Related Expenses		-		2,583			300		-		2,583		2,883		2,883
Non-cash stock-based compensation		1,208		(20	)		343		343		1,188		1,531		1,874
Total broadcast expenses	$	303,324	$	298,676		$	304,028	$	332,085	$	602,000	$	906,028	$	1,238,113

Production companies expense	$	33,390	$	8,831		$	15,145	$	16,281	$	42,221	$	57,366	$	73,647

Corporate and administrative:
Corporate expenses	$	13,526	$	11,574		$	13,492	$	25,097	$	25,100	$	38,592	$	63,689
Transaction Related Expenses		188		3,661			2,371		2,238		3,849		6,220		8,458
Non-cash stock-based compensation		3,023		2,632			3,378		3,716		5,655		9,033		12,749
Total corporate and administrative expense	$	16,737	$	17,867		$	19,241	$	31,051	$	34,604	$	53,845	$	84,896

Total Transaction Related Expenses	$	188	$	6,244		$	2,671	$	2,238	$	6,432	$	9,103	$	11,341
Total non-cash stock-based compensation	$	4,231	$	2,612		$	3,721	$	4,059	$	6,843	$	10,564	$	14,623

See last page of exhibit for notes

Page 6 of 8

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

Combined Historical Basis⁽²⁾

	2017
	Three Months Ended										Year To Date Ended
	March 31		June 30			September 30			December 31		June 30		September 30		December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	221,926	$	242,510		$	226,477		$	246,024	$	464,436	$	690,913	$	936,937
National		58,413		65,179			65,377			66,930		123,592		188,969		255,899
Political		2,017		6,450			8,456			14,366		8,467		16,923		31,289
Retransmission consent		131,188		132,180			136,046			138,442		263,368		399,414		537,856
Other		13,453		11,026			10,209			9,628		24,479		34,688		44,316
Total Broadcast revenue		426,997		457,345			446,565			475,390		884,342		1,330,907		1,806,297
Production companies revenue		35,121		7,975			16,942			24,712		43,096		60,038		84,750
Total revenue	$	462,118	$	465,320		$	463,507		$	500,102	$	927,438	$	1,390,945	$	1,891,047

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	219,850	$	215,765		$	215,723		$	234,269	$	435,615	$	651,338	$	885,607
Retransmission expenses		69,159		69,255			70,513			71,468		138,414		208,927		280,395
Transaction Related Expenses		1,344		(95	)		436			880		1,249		1,685		2,565
Non-cash stock-based compensation		364		356			356			2,823		720		1,076		3,899
Total broadcast expenses ⁽¹⁾	$	290,717	$	285,281		$	287,028		$	309,440	$	575,998	$	863,026	$	1,172,466

Production companies expense	$	32,568	$	7,335		$	12,883		$	18,111	$	39,903	$	52,786	$	70,897

Corporate and administrative:
Corporate expenses	$	11,104	$	11,663		$	12,354		$	17,900	$	22,767	$	35,121	$	53,021
Transaction Related Expenses		556		541			(64	)		103		1,097		1,033		1,136
Non-cash stock-based compensation		1,657		2,482			2,853			2,829		4,139		6,992		9,821
Total corporate and administrative expense ⁽¹⁾	$	13,317	$	14,686		$	15,143		$	20,832	$	28,003	$	43,146	$	63,978

Total Transaction Related Expenses	$	1,900	$	446		$	372		$	983	$	2,346	$	2,718	$	3,701
Total non-cash stock-based compensation	$	2,021	$	2,838		$	3,209		$	5,652	$	4,859	$	8,068	$	13,720

See last page of exhibit for notes

Page 7 of 8

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

Combined Historical Basis⁽²⁾

	2016
	Three Months Ended								Year To Date Ended
	March 31		June 30		September 30		December 31		June 30		September 30		December 31

Revenue (less agency commissions):
Broadcast:
Local (including internet/digital/mobile)	$	221,777	$	241,353	$	234,059	$	242,729	$	463,130	$	697,189	$	939,918
National		61,058		66,378		64,926		63,767		127,436		192,362		256,129
Political		25,703		16,853		46,123		96,976		42,556		88,679		185,655
Retransmission consent		107,032		107,652		111,387		114,958		214,684		326,071		441,029
Other		12,317		9,341		9,792		10,652		21,658		31,450		42,102
Total Broadcast revenue		427,887		441,577		466,287		529,082		869,464		1,335,751		1,864,833
Production companies revenue		34,380		8,503		16,338		23,398		42,883		59,221		82,619
Total revenue	$	462,267	$	450,080	$	482,625	$	552,480	$	912,347	$	1,394,972	$	1,947,452

Operating expenses before depreciation, amortization and gain or loss on disposal of assets, net:
Broadcast:
Station expenses	$	222,532	$	219,609	$	222,658	$	235,169	$	442,141	$	664,799	$	899,968
Retransmission expenses		49,562		49,551		51,168		54,092		99,113		150,281		204,373
Transaction Related Expenses		55		390		-		-		445		445		445
Non-cash stock-based compensation		315		302		302		302		617		919		1,221
Total broadcast expenses ⁽¹⁾	$	272,464	$	269,852	$	274,128	$	289,563	$	542,316	$	816,444	$	1,106,007

Production companies expense	$	32,021	$	7,921	$	12,673	$	17,826	$	39,942	$	52,615	$	70,441

Corporate and administrative:
Corporate expenses	$	13,417	$	12,076	$	10,590	$	17,656	$	25,493	$	36,083	$	53,739
Transaction Related Expenses		6,735		510		488		709		7,245		7,733		8,442
Non-cash stock-based compensation		1,426		1,403		1,560		1,726		2,829		4,389		6,115
Total corporate and administrative expense ⁽¹⁾	$	21,578	$	13,989	$	12,638	$	20,091	$	35,567	$	48,205	$	68,296

Total Transaction Related Expenses	$	6,790	$	900	$	488	$	709	$	7,690	$	8,178	$	8,887
Total non-cash stock-based compensation	$	1,741	$	1,705	$	1,862	$	2,028	$	3,446	$	5,308	$	7,336

See last page of exhibit for notes

(1) Amounts in 2017 and 2016 have been reclassified for the implementation of Accounting Standards Update 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Postretirement Benefit Cost.

(2) Due to the significant effect that our acquisitions and divestitures have had on our results of operations, and in order to provide more meaningful period over period comparisons, we present herein certain financial information on a “Combined Historical Basis.” Combined Historical Basis (or "CHB") reflects financial results that have been compiled by adding Gray’s historical revenue and broadcast expenses to the historical revenue and broadcast expenses of stations (or other businesses as applicable) acquired by Gray and acquired businesses and removing the historical revenues and historical broadcast expenses of divested by Gray and acquired businesses (or other businesses as applicable) as if they had been acquired or divested, respectively, on January 1, 2016 (the beginning of the earliest period presented). Combined Historical Basis financial information reflects station (or other businesses as applicable) acquisition and divestitures occurring between January 1, 2016 and June 30, 2019. Combined Historical Basis financial information does not reflect all purchase accounting and other adjustments required to comply with accounting principles generally accepted in the United States of America ("GAAP"), and includes certain other amounts not included, in pro forma financial information under Regulation S-X under the Securities Act. Combined Historical Basis information also does not include expected synergies from any transaction during the periods presented.

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