gtn20180517_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): May 21, 2018 (May 21, 2018)

 

Gray Television, Inc.

(Exact name of registrant as specified in its charter)

 

Georgia

 

001-13796

 

58-0285030

(State or other jurisdiction

of incorporation)

 

(Commission File Number)

 

(IRS employer

Identification No.)

 

 4370 Peachtree Road, Atlanta GA

 

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 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. ☐

 

 

 

 

 Item 7.01 - Regulation FD Disclosure

 

Gray Television, Inc. (the “Company”) adopted Accounting Standards Update 2017-07, Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Postretirement Benefit Cost (“ASU 2017-07”) in the first quarter of 2018, with the impact thereof not being material to the Company’s financial statements included in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018. On May 21, 2018, the Company published on its corporate website selected unaudited historical operating data for the three month and year-to-date periods ended March 31, June 30, September 30, and December 31, 2017, 2016, 2015 and 2014, giving effect to the adoption of ASU 2017-07. A copy of such selected unaudited historical operating data is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

Also, beginning on May 21, 2018, the Company intends to meet from time to time and make presentations to prospective investors. A copy of the slides that may be used in connection with and/or referenced in such meetings is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is 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

99.2

Prospective investor meeting slides

 

 

 

 

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: May 21, 2018

 

 

 

By:

      /s/ James C. Ryan                       

 

 

Name:  

James C. Ryan 

 

 

Title: 

Executive Vice President and 

Chief Financial Officer 

 

3

ex_114803.htm

Exhibit 99.1

 

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):

                                                       

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 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:

                                                       

Payroll, programming and other (1)

  $ 101,291     $ 99,925     $ 104,809     $ 115,192     $ 201,216     $ 306,025     $ 421,217  

Retransmission

    32,265       33,758       34,733       35,590       66,023       100,756       136,346  

Total broadcast expenses

  $ 133,556     $ 133,683     $ 139,542     $ 150,782     $ 267,239     $ 406,781     $ 557,563  
                                                         

Corporate and administrative (1)

  $ 7,710     $ 8,432     $ 8,330     $ 7,117     $ 16,142     $ 24,472     $ 31,589  

 

 

   

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):

                                                       

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 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:

                                                       

Payroll, programming and other (1)

  $ 86,198     $ 93,349     $ 95,625     $ 102,138     $ 179,547     $ 275,172     $ 377,310  

Retransmission

    22,338       23,950       25,058       26,338       46,288       71,346       97,684  

Total broadcast expenses

  $ 108,536     $ 117,299     $ 120,683     $ 128,476     $ 225,835     $ 346,518     $ 474,994  
                                                         

Corporate and administrative (1)

  $ 15,670     $ 8,520     $ 7,217     $ 8,912     $ 24,190     $ 31,407     $ 40,319  
                                                         

See last page of exhibit for note

                                                       

 

Page 1 of 4

 

 

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

As Reported Basis

 

   

2015

 
   

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):

                                                       

Local (including internet/digital/mobile)

  $ 74,865     $ 83,091     $ 83,972     $ 94,543     $ 157,956     $ 241,928     $ 336,471  

National

    17,767       18,949       20,889       23,505       36,716       57,605       81,110  

Political

    1,159       2,197       4,594       9,213       3,356       7,950       17,163  

Retransmission consent

    36,251       36,909       39,329       39,468       73,160       112,489       151,957  

Other

    3,261       2,318       2,318       2,758       5,579       7,897       10,655  

Total revenue

  $ 133,303     $ 143,464     $ 151,102     $ 169,487     $ 276,767     $ 427,869     $ 597,356  
                                                         

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

                                                       

Broadcast:

                                                       

Payroll, programming and other (1)

  $ 69,227     $ 69,099     $ 80,949     $ 83,598     $ 138,326     $ 219,275     $ 302,873  

Retransmission

    16,949       16,978       17,972       18,366       33,927       51,899       70,265  

Total broadcast expenses

  $ 86,176     $ 86,077     $ 98,921     $ 101,964     $ 172,253     $ 271,174     $ 373,138  
                                                         

Corporate and administrative (1)

  $ 6,828     $ 6,428     $ 10,022     $ 11,032     $ 13,256     $ 23,278     $ 34,310  

 

 

   

2014

 
   

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):

                                                       

Local (including internet/digital/mobile)

  $ 57,083     $ 63,884     $ 69,460     $ 83,586     $ 120,967     $ 190,427     $ 274,013  

National

    13,348       14,826       16,158       20,626       28,174       44,332       64,958  

Political

    2,792       8,616       22,029       48,538       11,408       33,437       81,975  

Retransmission consent

    16,117       17,659       19,674       21,444       33,776       53,450       74,894  

Other

    1,957       2,264       4,381       3,692       4,221       8,602       12,294  

Total revenue

  $ 91,297     $ 107,249     $ 131,702     $ 177,886     $ 198,546     $ 330,248     $ 508,134  
                                                         

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

                                                       

Broadcast:

                                                       

Payroll, programming and other (1)

  $ 56,226     $ 61,563     $ 67,700     $ 79,978     $ 117,789     $ 185,489     $ 265,467  

Retransmission

    3,945       4,234       5,259       6,185       8,179       13,438       19,623  

Total broadcast expenses

  $ 60,171     $ 65,797     $ 72,959     $ 86,163     $ 125,968     $ 198,927     $ 285,090  
                                                         

Corporate and administrative (1)

  $ 6,484     $ 9,833     $ 5,253     $ 7,569     $ 16,317     $ 21,570     $ 29,139  

 

See last page of exhibit for note

 

Page 2 of 4

 

 

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):

                                                       

Local (including internet/digital/mobile)

  $ 109,096     $ 119,757     $ 110,033     $ 120,714     $ 228,853     $ 338,886     $ 459,600  

National

    27,091       31,948       31,027       31,995       59,039       90,066       122,061  

Political

    1,346       3,723       4,005       7,464       5,069       9,074       16,539  

Retransmission consent

    70,215       69,938       70,150       69,509       140,153       210,303       279,812  

Other

    5,435       3,947       3,762       3,927       9,382       13,143       17,069  

Total revenue

  $ 213,183     $ 229,313     $ 218,977     $ 233,609     $ 442,496     $ 661,472     $ 895,081  
                                                         

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

                                                       

Broadcast:

                                                       

Payroll, programming and other (1)

  $ 109,437     $ 102,323     $ 104,809     $ 115,192     $ 211,760     $ 316,569     $ 431,760  

Retransmission

    34,268       34,227       34,733       35,590       68,495       103,227       138,818  

Total broadcast expenses

  $ 143,705     $ 136,550     $ 139,542     $ 150,782     $ 280,255     $ 419,796     $ 570,578  
                                                         

Corporate and administrative (1)

  $ 7,710     $ 8,432     $ 8,330     $ 7,117     $ 16,142     $ 24,472     $ 31,589  

 

 

   

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):

                                                       

Local (including internet/digital/mobile)

  $ 110,190     $ 119,764     $ 114,796     $ 120,812     $ 229,954     $ 344,750     $ 465,562  

National

    28,547       31,261       30,112       29,493       59,808       89,920       119,413  

Political

    14,770       11,218       28,181       63,369       25,988       54,169       117,538  

Retransmission consent

    55,529       56,024       56,928       58,002       111,553       168,481       226,483  

Other

    5,469       3,903       3,781       3,852       9,372       13,153       17,005  

Total revenue

  $ 214,505     $ 222,170     $ 233,798     $ 275,528     $ 436,675     $ 670,473     $ 946,001  
                                                         

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

                                                       

Broadcast:

                                                       

Payroll, programming and other (1)

  $ 110,272     $ 106,218     $ 107,811     $ 116,806     $ 216,490     $ 324,301     $ 441,107  

Retransmission

    27,126       27,159       27,965       29,624       54,285       82,250       111,874  

Total broadcast expenses

  $ 137,398     $ 133,377     $ 135,776     $ 146,430     $ 270,775     $ 406,551     $ 552,981  
                                                         

Corporate and administrative (1)

  $ 15,670     $ 8,520     $ 7,217     $ 8,912     $ 24,190     $ 31,407     $ 40,319  

 

See last page of exhibit for notes

 

Page 3 of 4

 

 

Gray Television, Inc.

Selected Operating Data (Unaudited)

(in thousands)

Combined Historical Basis(2)

 

   

2015

 
   

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):

                                                       

Local (including internet/digital/mobile)

  $ 107,486     $ 119,452     $ 113,776     $ 126,298     $ 226,938     $ 340,714     $ 467,012  

National

    29,641       31,785       32,175       33,648       61,426       93,601       127,249  

Political

    1,372       2,939       5,535       12,088       4,311       9,846       21,934  

Retransmission consent

    45,524       46,423       47,983       48,660       91,947       139,930       188,590  

Other

    5,201       3,845       3,754       4,014       9,046       12,800       16,814  

Total revenue

  $ 189,224     $ 204,444     $ 203,223     $ 224,708     $ 393,668     $ 596,891     $ 821,599  
                                                         

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

                                                       

Broadcast:

                                                       

Payroll, programming and other (1)

  $ 104,956     $ 104,813     $ 111,961     $ 115,711     $ 209,769     $ 321,730     $ 437,441  

Retransmission

    20,477       20,671       21,551       23,101       41,148       62,699       85,800  

Total broadcast expenses

  $ 125,433     $ 125,484     $ 133,512     $ 138,812     $ 250,917     $ 384,429     $ 523,241  
                                                         

Corporate and administrative (1)

  $ 6,828     $ 6,428     $ 10,022     $ 11,032     $ 13,256     $ 23,278     $ 34,310  

 

 

   

2014

 
   

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):

                                                       

Local (including internet/digital/mobile)

  $ 104,591     $ 113,891     $ 105,662     $ 119,303     $ 218,482     $ 324,144     $ 443,447  

National

    29,117       30,926       30,013       34,658       60,043       90,056       124,714  

Political

    5,537       16,517       41,110       79,548       22,054       63,164       142,712  

Retransmission consent

    27,826       29,445       28,515       30,188       57,271       85,786       115,974  

Other

    7,317       5,427       6,004       5,104       12,744       18,748       23,852  

Total revenue

  $ 174,388     $ 196,206     $ 211,304     $ 268,801     $ 370,594     $ 581,898     $ 850,699  
                                                         

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

                                                       

Broadcast:

                                                       

Payroll, programming and other (1)

  $ 106,695     $ 109,300     $ 109,570     $ 122,738     $ 215,995     $ 325,565     $ 448,303  

Retransmission

    8,170       8,123       8,123       9,209       16,293       24,416       33,625  

Total broadcast expenses

  $ 114,865     $ 117,423     $ 117,693     $ 131,947     $ 232,288     $ 349,981     $ 481,928  
                                                         

Corporate and administrative (1)

  $ 6,484     $ 9,833     $ 5,253     $ 7,569     $ 16,317     $ 21,570     $ 29,139  

 

(1) Amounts in 2017, 2016, 2015 and 2014 have been reclassified to give effect to 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 ("ASU 2017-07").

 
   

(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 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 acquired and removing the historical revenues and historical broadcast expenses of divested stations as if they had been acquired or divested, respectively, on January 1, 2014 (the beginning of the earliest period presented). Combined Historical Basis financial information reflects station acquisition and divestitures ocurring between January 1, 2014 and December 31, 2017. 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.

 

 

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Image Exhibit

 Exhibit 99.2