EXHIBIT 99.1
GRAY
Television, Inc.
NEWS RELEASE
GRAY REPORTS OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2003
ATLANTA, GEORGIA - MAY 13, 2003 . . . GRAY TELEVISION, INC. (NYSE: GTN)
today announced its results for the three months ("first quarter") ended March
31, 2003.
SUMMARY HIGHLIGHTS
For the three months ended March 31, 2003 the Company reported:
Total net revenue of $65.0 million;
Broadcast net revenue of $52.6 million;
Broadcast Media Cash Flow of $18.7 million (see Note 3) and
Operating Cash Flow of $19.8 million (see Note 3).
These results generally exceeded previously issued guidance for the
first quarter of 2003.
Total debt outstanding at March 31, 2003 was $656.5 million compared to
$658.2 million at December 31, 2002. The Company's cash balance was $22.3
million at March 31, 2003 compared to $12.9 million at December 31, 2002.
The Company's net leverage ratio was 5.65 times at March 31, 2003,
compared to 5.73 times at December 31, 2002. The net leverage ratio is
calculated by dividing debt, net of cash on hand, by the trailing twelve month
adjusted Operating Cash Flow (see Notes 1 & 3).
The Company recorded net income of $0.2 million for the three months
ended March 31, 2003 compared to a net loss of $38.0 million in the first
quarter of 2002.
On October 25, 2002 the Company completed its acquisition of Stations
Holding Company, Inc. ("Stations Holding") and acquired 15 network affiliated
television stations serving 13 television markets. Effective with the completion
of the transaction, Stations Holding changed its name to Gray MidAmerica
Television, Inc. ("Gray MidAmerica Television"). On December 18, 2002 the
Company completed its acquisition of KOLO-TV, the ABC affiliate serving Reno,
Nevada. Both acquisitions are collectively referred to as the "2002
Acquisitions".
The Company has provided information on its operating results on an
actual "as reported(1)" basis which incorporates the results of operations for
these acquisitions as of the respective acquisition dates. The Company has also
provided information on its operating results on an "as adjusted (1)" basis
which gives effect to the 2002 Acquisitions as if they had occurred on January
1, 2002 (see Note 1).
4370 Peachtree Road, NE * Atlanta, GA 30319
(404) 504-9828 * Fax (404) 261-9607
COMMENTS ON AN "AS REPORTED (1)" BASIS FOR THE QUARTER ENDED MARCH 31, 2003
COMPARED TO THE QUARTER ENDED MARCH 31, 2002
Revenues. Total revenues for the three months ended March 31, 2003
increased 73% to $65.0 million as compared to the same period of the prior year.
- Broadcasting revenues increased 107% to $52.6 million. The
primary reason for the increase in revenues was due to the
2002 Acquisitions. The acquired stations had revenue of $27.5
million in the first quarter of 2003. For the television
stations that were owned continuously for the quarters ended
March 31, 2002 and 2003, revenue decreased 1%. A local revenue
increase of 2% was offset by a decrease in national revenue of
3%, a decrease in political revenue of $399,000 and decreased
network revenue. National advertising revenue decreased, in
part, due to uncertainties surrounding the War with Iraq.
- Publishing revenues increased 3% to $10.4 million. Retail
advertising revenue increased 6%. Classified advertising
revenue and circulation revenue were consistent with that of
the prior year.
Operating expenses. Operating expenses increased 82.3% to $53.3
million.
- Broadcasting expenses, before depreciation and amortization,
increased 125% to $34.9 million. The primary reason for the
increase in broadcast expenses was due to the 2002
Acquisitions. The acquired stations had broadcast expense of
$18.5 million in the first quarter of 2003. For the television
stations that were owned continuously for the quarters ended
March 31, 2002 and 2003, broadcast expenses increased 6%
reflecting increased payroll and related benefits expense
increases of $721,000 including $216,000 of non-cash expenses
relating to Company contributions to its 401(k) plan.
Broadcasting depreciation and amortization expense for the
quarter was $6.3 million.
- Publishing expenses, before depreciation and amortization,
increased 1% to $7.8 million with decreased newsprint expense
partially offsetting increase in other operating expenses.
Publishing depreciation and amortization expense for the
quarter was $372,000.
COMMENTS ON AN "AS ADJUSTED(1)" BASIS FOR THE QUARTER ENDED MARCH 31, 2003
COMPARED TO THE QUARTER ENDED MARCH 31, 2002
The following comments give effect to the acquisitions of Gray
MidAmerica Television and KOLO-TV as if each had occurred on January 1, 2002.
Operating results for the Company's publishing and paging operations were not
affected by the 2002 Acquisitions.
Adjusted Broadcasting Revenues. Adjusted broadcasting revenues
decreased 1% to $52.6 million. An increase in local revenue of 1% was offset by
a decrease in political advertising revenue of $167,000 and decreases in network
and other production revenues.
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 2 of 11
National advertising revenue, while consistent with the results for 2002 was, in
part, negatively affected by uncertainties surrounding the War with Iraq. This
decrease in national advertising revenue also reflects that in the first quarter
of 2002, the Company earned approximately $2.2 million of adjusted broadcast
revenues from advertising associated with broadcasts of the 2002 Winter Olympics
while there was no similar event broadcast during 2003.
Adjusted Broadcasting Expenses Before Depreciation And Amortization.
Adjusted broadcasting operating expenses before depreciation and amortization
increased 3% to $34.9 million. Increases in payroll and other compensation
expenses were partially offset by decreases in the cost of syndicated
programming and other operating costs. The 2003 payroll costs include $665,000
of non-cash expenses relating to contributions to the Company's 401(k) plan.
NON-GAAP MEASURES (SEE NOTE 3)
Media Cash Flow. On an as reported(1) basis, Total Media Cash Flow
increased 65% to $21.9 million and broadcasting Media Cash Flow increased 85% to
$18.7 million for the three months ended March 31, 2003 compared to the same
period of the prior year primarily reflecting the impact of the 2002
Acquisitions. Publishing Media Cash Flow increased 9% to $2.8 million primarily
reflecting the combination of increased revenues and operating expenses
discussed above.
On an adjusted basis Media Cash Flow decreased 1% to $21.9 million for
the three months ended March 31, 2003 compared to the same period of the prior
year. Adjusted broadcasting Media Cash Flow decreased 2% to $18.7 million
primarily reflecting the absence of any Olympic broadcasts in the first quarter
of 2003 and the cyclical decline in political revenues.
Operating Cash Flow. Total Operating Cash Flow increased 61% to $19.8
million for the three months ended March 31, 2003 compared to the same period of
the prior year primarily reflecting the impact of the 2002 Acquisitions. On an
adjusted basis for the same three month period, Operating Cash Flow decreased 2%
primarily reflecting the decrease in adjusted broadcasting Media Cash Flow
discussed above. For the twelve months ended March 31, 2003 Operating Cash Flow
on an adjusted basis was $112.2 million compared to $112.7 million for the
twelve months ended December 31, 2002.
Free Cash Flow. Free Cash Flow for the three months ended March 31,
2003 was $2.4 million compared to a negative $2.1 million for the same period of
2002 and the increase primarily reflects the impact of the 2002 Acquisitions.
DIGITAL TELEVISION CONVERSION AND OTHER CAPITAL EXPENDITURES
The Company is currently broadcasting a digital signal at 16 of its 29
stations. The Company currently intends to have all such required installations
completed as soon as practicable. The FCC required that all commercial stations
be operational by May of 2002.
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 3 of 11
As necessary, the Company has requested and received approval from the FCC to
extend the May 2002 deadline by varying periods of time for all of the Company's
remaining stations that are not currently broadcasting in digital. Given the
Company's good faith efforts to comply with the existing deadline and the facts
specific to each extension request, the Company believes the FCC will grant any
further deadline extension requests that become necessary.
For the three months ended March 31, 2003, the Company paid in cash
approximately $2.0 million in capital expenditures toward the cost of digital
television broadcast systems. The Company currently anticipates total cash
expenditures for digital television broadcast systems of approximately $12.0
million and $10.5 million in 2003 and 2004, respectively.
For the full year of 2003, the Company currently anticipates that the
aggregate cash payments with respect to capital expenditures, including digital
television broadcast systems, will range between $18.0 million and $19.0
million. Included in this amount are anticipated expenditures of approximately
$2.0 million for certain real estate which includes a broadcast tower in Florida
and approximately $750,000 for certain anticipated leasehold improvements,
associated production equipment and furnishings relating to a new operating
facility for the Gwinnett Daily Post newspaper.
GUIDANCE FOR SECOND QUARTER OF 2003
The Company currently anticipates that total net revenues for the
second quarter of 2003 will range between $76.0 million and $77.0 million. We
believe total Operating Cash Flow for the second quarter of 2003 will range
between $29.0 million and $30.0 million.
We also believe our broadcast net revenues for the second quarter of
2003 will range between $63.0 million and $64.0 million and broadcast Media Cash
Flow will range between $27.0 million and $28.0 million
The Company estimates second quarter 2003 publishing revenues and
publishing Media Cash Flow will be generally consistent with the results
reported for the second quarter of 2002.
FOR INFORMATION CONTACT:
BOB PRATHER JIM RYAN
PRESIDENT AND CHIEF OPERATING OFFICER SENIOR V. P. AND CHIEF FINANCIAL OFFICER
(404) 266-8333 (404) 504-9828
WEB SITE: www.graytvinc.com
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 4 of 11
CONFERENCE CALL INFORMATION
Gray Television, Inc. will host a conference call to discuss its first
quarter operating results on Tuesday, May 13, 2003. The call will begin at 11:00
a.m. Eastern Time. The live dial-in number is (888) 789-0089. The call will be
webcast live and available for replay at www.graytvinc.com. The taped replay of
the conference call will be available at (866) 518-1010 until May 20, 2003.
THE COMPANY
Gray Television, Inc. is a communications company headquartered in
Atlanta, Georgia, and currently owns 29 television stations serving 25
television markets. The stations include 15 CBS affiliates, seven NBC affiliates
and seven ABC affiliates. Gray Television, Inc. has 22 stations ranked #1 in
local news audience and 22 stations ranked #1 in overall audience within their
respective markets based on the results of the Nielsen November 2002 ratings
reports. The TV station group reaches approximately 5.3% of total U.S. TV
households. The Company also owns four daily newspapers, three in Georgia and
one in Indiana.
SUMMARY FINANCIAL TABLES
Summary Tables of Operating Results for the Three Months Ended March 31, 2003
and 2002 follow beginning on the next page.
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 5 of 11
GRAY TELEVISION, INC.
(IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES)
AS REPORTED(1)
SELECTED OPERATING DATA: THREE MONTHS ENDED MARCH 31,
--------------------------------------------
%
2003 2002 CHANGE
-------- -------- ------
OPERATING REVENUES
Broadcasting (less agency commissions) $ 52,601 $ 25,453 107%
Publishing 10,397 10,143 3%
Paging 1,977 2,009 (2)%
-------- --------
TOTAL OPERATING REVENUES 64,975 37,605 73%
-------- --------
EXPENSES
Operating expenses before depreciation and amortization
Broadcasting 34,898 15,481 125%
Publishing 7,755 7,651 1%
Paging 1,469 1,383 6%
Corporate and administrative 2,136 1,000 114%
Depreciation and amortization 7,052 3,733 89%
-------- --------
TOTAL EXPENSES 53,310 29,248 82%
-------- --------
Operating income 11,665 8,357 40%
Miscellaneous income, net 65 38 71%
Appreciation in value of derivatives, net -0- 389 (100)%
Interest expense (11,270) (8,965) 26%
Loss on early extinguishment of debt -0- (11,275) (100)%
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 460 (11,456) NA
Income tax expense (benefit) 289 (4,003) NA
-------- --------
NET INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 171 (7,453) NA
Cumulative effect of accounting change, net of $8,873 income tax benefit -0- (30,592) NA
-------- --------
NET INCOME (LOSS) 171 (38,045) NA
Preferred dividends 822 154 434%
-------- --------
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $ (651) $(38,199) (98)%
======== ========
BASIC AND DILUTED PER SHARE INFORMATION:
Net loss before cumulative effect of
accounting change available to common stockholders $ (0.01) $ (0.49) (97)%
Cumulative effect of accounting change, net of income taxes -0- (1.95) NA
-------- --------
Net loss per share available to common stockholders $ (0.01) $ (2.44) (99)%
======== ========
Weighted average shares outstanding 50,327 15,647 222%
POLITICAL REVENUE $ 741 $ 760 (3)%
CAPITAL EXPENDITURES $ 3,730 $ 5,244 (29)%
MEDIA CASH FLOW(3):
Broadcasting $ 18,657 $ 10,101 85%
Publishing 2,754 2,535 9%
Paging 529 638 (17)%
-------- --------
Consolidated $ 21,940 $ 13,274 65%
======== ========
MEDIA CASH FLOW(3) MARGINS:
Broadcasting 35% 40%
Publishing 26% 25%
Paging 27% 32%
Consolidated 34% 35%
OPERATING CASH FLOW(3) $ 19,804 $ 12,274 61%
TRAILING 12 MONTH OPERATING CASH FLOW(3) $ 81,814 $ 51,202 60%
SELECTED BALANCE SHEET DATA: MARCH 31, DECEMBER 31,
2003 2002
--------- ------------
Cash and cash equivalents $ 22,294 $ 12,915
Total Debt(2) 656,478 658,220
Total debt net of cash 634,184 645,305
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 6 of 11
GRAY TELEVISION, INC.
(IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES)
AS ADJUSTED(1)
SELECTED OPERATING DATA: THREE MONTHS ENDED MARCH 31,
---------------------------------------------
%
2003 2002 CHANGE
-------- -------- --------
OPERATING REVENUES
Broadcasting (less agency commissions) $ 52,601 $ 53,162 (1)%
Publishing 10,397 10,143 3%
Paging 1,977 2,009 (2)%
-------- --------
TOTAL OPERATING REVENUES 64,975 65,314 (1)%
-------- --------
EXPENSES
Operating expenses before depreciation and amortization
Broadcasting 34,898 33,930 3%
Publishing 7,755 7,651 1%
Paging 1,469 1,383 6%
Corporate and administrative 2,136 1,960 9%
Depreciation and amortization 7,052 5,594 26%
-------- --------
TOTAL EXPENSES 53,310 50,518 6%
-------- --------
Operating income 11,665 14,796 (21)%
Miscellaneous income, net 65 38 71%
Appreciation in value of derivatives, net -0- 389 (100)%
Interest expense (11,270) (13,382) (16)%
Loss on early extinguishment of debt -0- (11,275) NA
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 460 (9,434) NA
Income tax expense (benefit) 289 (3,235) NA
-------- --------
NET INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 171 (6,199) (103)%
Cumulative effect of accounting change, net of $8,873 income tax benefit -0- (30,592) NA
-------- --------
NET INCOME (LOSS) 171 (36,791) NA
Preferred dividends 822 154 434%
-------- --------
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $ (651) $(36,945) (98)%
======== ========
BASIC AND DILUTED PER SHARE INFORMATION:
Net loss before cumulative effect of
accounting change available to common stockholders $ (0.01) $ (0.13) (90)%
Cumulative effect of accounting change, net -0- (0.61) NA
-------- --------
Net loss per share available to common stockholders $ (0.01) $ (0.74) (98)%
======== ========
Weighted average shares outstanding 50,327 50,147 0%
POLITICAL REVENUE $ 741 $ 908 (18)%
MEDIA CASH FLOW(3):
Broadcasting $ 18,657 $ 19,079 (2)%
Publishing 2,754 2,535 9%
Paging 529 638 (17)%
-------- --------
Consolidated $ 21,940 $ 22,252 (1)%
======== ========
MEDIA CASH FLOW(3) MARGINS:
Broadcasting 35% 36%
Publishing 26% 25%
Paging 27% 32%
Consolidated 34% 34%
OPERATING CASH FLOW(3) $ 19,804 $ 20,292 (2)%
TRAILING 12 MONTH OPERATING CASH FLOW(3) $112,169 NA
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 7 of 11
NOTES
Note 1. "As Reported(1)" and "As Adjusted"
Information in this earnings release has been presented under two different
methods: as reported and as adjusted. The as reported basis of presentation
gives effect to the acquisitions as of their respective acquisition dates. The
as adjusted presentation gives effect to the acquisitions of Stations Holding on
October 25, 2002 and KOLO-TV on December 18, 2002 as if each had occurred on
January 1, 2002. Accordingly, the adjusted presentation combines the Company's
historical results of operations with the respective acquired operation's
historical pre-acquisition operating results. Certain amounts of corporate
overhead were eliminated in the adjusted presentation. Depreciation and
amortization expense in the adjusted presentation give effect to accounting for
the respective acquisitions. Adjusted income tax expense or benefit assumes an
effective tax rate of 38% on the adjusted incremental net pre-tax income or
loss. Adjusted interest expense and shares outstanding give effect to the
Company's issuance of additional debt and common equity to finance, in part, the
acquisitions.
An unaudited reconciliation between the as reported and the as adjusted
condensed consolidated statements of operations for the three months ended March
31, 2002 follows (in thousands):
THREE MONTHS ENDED MARCH 31, 2002
--------------------------------------
AS EFFECT OF AS
REPORTED ACQUISITIONS ADJUSTED
-------- ------------ --------
Total operating revenues $ 37,605 $ 27,709 $ 65,314
-------- -------- --------
Operating expenses before depreciation and amortization 25,515 19,409 44,924
Depreciation and amortization 3,733 1,861 5,594
-------- -------- --------
Total expenses 29,248 21,270 50,518
-------- -------- --------
Operating income 8,357 6,439 14,796
Miscellaneous income, net 38 -0- 38
Appreciation in value of derivatives, net 389 -0- 389
Interest expense (8,965) (4,417) (13,382)
Loss on early extinguishment of debt (11,275) -0- (11,275)
-------- -------- --------
Income (loss) before income taxes and cumulative effect of
accounting change (11,456) 2,022 (9,434)
Income tax expense (benefit) (4,003) 768 (3,235)
-------- -------- --------
Net income (loss) before cumulative effect of accounting change (7,453) 1,254 (6,199)
Cumulative effect of accounting change, net of $8,873 income
tax benefit (30,592) -0- (30,592)
-------- -------- --------
Net income (loss) (38,045) 1,254 (36,791)
Preferred dividends 154 -0- 154
-------- -------- --------
Net income (loss) available to common stockholders $(38,199) $ 1,254 $(36,945)
======== ======== ========
Basic and diluted weighted average shares outstanding 15,647 34,500 50,147
Note 2. Debt
Total debt as of March 31, 2003 and December 31, 2002 does not include $1.3
million of unamortized debt discount on the Company's 9 1/4% Senior Subordinated
Notes due March 2011.
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 8 of 11
Note 3. Non-GAAP Measures
The terms Media Cash Flow, Operating Cash Flow and Free Cash Flow are non-GAAP
measures which the Company believes are commonly used in the broadcast industry
as measures of operating performance, valuation and a company's ability to
service debt. These terms are defined below. Media Cash Flow, Operating Cash
Flow and Free Cash Flow should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with GAAP. The Company
considers income from operations, a GAAP performance measure, contained in the
statement of operations and net cash provided by operating activities, a GAAP
liquidity measure, contained in the statement of cash flows to be the most
comparable GAAP measures. Accordingly, the Company has provided a reconciliation
of Media Cash Flow, Operating Cash Flow and Free Cash Flow to operating income
and net cash provided by operating activities. Such reconciliation is included
in this release and is available on the Company's web site at www.graytvinc.com.
Media Cash Flow is defined as operating income, plus depreciation and
amortization (including amortization of program broadcast rights), loss on early
extinguishment of debt, non-cash compensation and corporate overhead, less
payments for program broadcast obligations.
Operating Cash Flow is defined as Media Cash Flow less corporate overhead.
Free Cash Flow is defined as Operating Cash Flow less:
1. interest expense, excluding non-cash amortization of bond discounts and
deferred financing costs;
2. dividends;
3. cash capital expenditures and
4. cash paid for taxes, net of refunds.
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 9 of 11
GRAY TELEVISION, INC.
RECONCILIATION OF AS REPORTED NET CASH PROVIDED BY OPERATING ACTIVITIES TO AS
ADJUSTED OPERATING CASH FLOW
(IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2003 2002
-------- --------
Net cash provided by operating activities $ 22,989 $ 266
Adjustments to reconcile net cash provided by operating
activities to net income (loss):
Depreciation (5,190) (3,627)
Amortization of intangible assets (1,862) (106)
Amortization of deferred loan costs (426) (353)
Amortization of bond discount (36) (36)
Amortization of directors' restricted stock award (21) -0-
Amortization of program broadcast rights (2,693) (1,321)
Write-off loan acquisition costs from early extinguishment of debt -0- (3,030)
Payments for program broadcast rights 2,404 1,321
Supplemental employee benefits 18 23
Common Stock contributed to 401(k) Plan (868) (194)
Deferred income taxes (374) 3,560
Appreciation in value of derivatives, net -0- 389
Intangible adjustment, net -0- (30,592)
Gain (loss) on asset sales (13) 16
Changes in operating assets and liabilities:
Receivables, inventories and other current assets (9,172) (3,904)
Accounts payable and other current liabilities (4,585) (457)
-------- --------
Net income (loss) 171 (38,045)
Adjustments to reconcile net income (loss) to operating income:
Appreciation in value of derivatives, net -0- (389)
Miscellaneous income, net (65) (38)
Interest expense 11,270 8,965
Loss on early extinguishment of debt -0- 11,275
Federal and state income tax expense (benefit) 289 (4,003)
Cumulative effect of accounting change, net of income tax
benefit of $8,873 -0- 30,592
-------- --------
Operating income 11,665 8,357
Adjustments to reconcile operating income to Media Cash Flow:
Amortization of program broadcast rights 2,693 1,321
Depreciation and amortization of intangible assets 7,052 3,733
Corporate and administrative expenses 2,136 1,000
Common Stock contributed to 401(k) Plan excluding corporate
401(k) contributions 798 184
Payments for program broadcast rights (2,404) (1,321)
-------- --------
Media Cash Flow 21,940 13,274
Adjustments to reconcile Media Cash Flow to Operating Cash Flow:
Corporate and administrative expenses (2,136) (1,000)
-------- --------
Operating Cash Flow (as reported) 19,804 12,274
Adjustments to reconcile As Reported Operating Cash Flow to
Adjusted Operating Cash Flow:
2002 Acquisitions -0- 8,018
-------- --------
Operating Cash Flow (as adjusted) $ 19,804 $ 20,292
======== ========
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 10 of 11
GRAY TELEVISION, INC.
RECONCILIATION OF AS REPORTED OPERATING CASH FLOW TO AS REPORTED FREE CASH FLOW
(IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2003 2002
-------- --------
Operating Cash Flow (as reported) $ 19,804 $ 12,274
Adjustments to reconcile Operating Cash Flow (as reported) to Free Cash Flow:
Interest expense excluding non-cash amortization bond discounts and financing costs (10,845) (8,612)
Common and preferred cash dividends (1,807) (467)
Capital expenditures (3,730) (5,244)
Cash paid for income taxes, net of refunds received (1,006) (10)
-------- --------
Free Cash Flow (as reported) $ 2,416 $ (2,059)
======== ========
CAUTIONARY STATEMENTS FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT
The preceding comments on Gray's current expectations of operating results
for the second quarter of 2003 and its capital expenditure plans for the full
year of 2003 are "forward looking" for purposes of the Private Securities
Litigation Reform Act of 1995. Actual results of operations are subject to a
number of risks and may differ materially from the current expectations
discussed in this press release. See the Company's annual report on Form 10K for
a discussion of risk factors that may affect the Company.
Gray Television, Inc.
Earnings Release for the Three Months Ended March 31, 2003 Page 11 of 11