GRAY EXHIBIT 99.1
Television, Inc.
- -------------------------------------------------------------------------------
NEWS RELEASE
GRAY REPORTS OPERATING RESULTS
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2003
ATLANTA, GEORGIA - MARCH 8, 2004 . . . GRAY TELEVISION, INC. (THE
"COMPANY") (NYSE: GTN) today announced its results for the three months ("fourth
quarter") and year ended December 31, 2003.
The Company's reported results for 2003 reflect the impact of the
acquisition of Stations Holding Company, Inc., on October 25 2002, comprising 15
network affiliated television stations serving 13 television markets and the
acquisition on December 18, 2002 of KOLO-TV, the ABC affiliate serving Reno,
Nevada. Both acquisitions are collectively referred to as the "2002
Acquisitions". The Company has also provided information on its operating
results on a "pro forma" basis which gives effect to the 2002 Acquisitions as if
they had occurred on January 1, 2002 (see Note 1).
FOURTH QUARTER OF 2003 COMPARED TO THE FOURTH QUARTER OF 2002
Revenues. Total revenues for the three months ended December 31, 2003
increased 6% to $80.4 million as compared to the corresponding period of the
prior year primarily reflecting the impact of the 2002 Acquisitions.
Broadcasting revenues increased 7% to $66.5 million. The stations acquired in
2002 had revenue of $35.1 million in the fourth quarter of 2003 compared to
$25.4 million from the respective acquisition date in 2002 through December 31,
2002. For the television stations that were owned continuously for the quarters
ended December 31, 2003 and 2002, total revenue for 2003 decreased $5.3 million,
or 14%. This decrease primarily reflects the net result of increases in local
and national advertising revenue of approximately 7% and 8%, respectively,
offset by a decrease in political advertising revenue of 88% or $6.9 million. On
a pro forma basis, total broadcasting revenues decreased 12% from the pro forma
results of the fourth quarter of 2002. Broadcasting local and national revenues
increased approximately 9% and 6% respectively from the pro forma results of
2002 while political advertising revenue decreased $12.8 million to $2.3 million
from the pro forma results for the fourth quarter of 2002.
Operating expenses. Operating expenses before depreciation,
amortization and certain other non-cash charges increased 13% to $51.5 million
primarily reflecting the impact of the 2002 Acquisitions. Broadcasting expenses
increased 18% to $39.4 million. The stations acquired in 2002 had broadcast
expense of $20.2 million in the fourth quarter of 2003 compared to $13.2 million
from the respective acquisition date in 2002 through December 31, 2002. For the
television stations that were owned continuously for the quarters ended December
31, 2003 and 2002, broadcast expenses decreased 4% from the prior period. On a
pro forma basis, broadcasting operating expenses decreased 2% from the prior
period.
4370 Peachtree Road, NE * Atlanta, GA 30319
(404) 504-9828 * Fax (404) 261-9607
YEAR ENDED DECEMBER 31, 2003 COMPARED TO THE YEAR ENDED DECEMBER 31, 2002
Revenues. Total revenues for the year ended December 31, 2003 increased
49% to $295.4 million as compared to the same period of the prior year primarily
reflecting the impact of the 2002 Acquisitions. Broadcasting revenues increased
66% to $243.1 million. The stations acquired in 2002 had revenue of $127.9
million for 2003 compared to $25.4 million from the respective acquisition date
in 2002 through December 31, 2002. For the television stations that were owned
continuously for the years ended December 31, 2003 and 2002, total revenue for
2003 decreased $6.2 million, or 5%. This decrease primarily reflects the net
result of increases in local and national advertising revenue of 5% and 4%,
respectively, offset by a decrease in political advertising revenue of 82% or
$10.8 million. On a pro forma basis total broadcasting revenues decreased 4%
from the pro forma results for the full year of 2002. Broadcasting local and
national revenue increased approximately 5% and 4%, respectively from the pro
forma results of 2002 while political advertising revenue decreased $19.7
million to $5.7 million from the pro forma results for the full year of 2002.
Operating expenses. Operating expenses before depreciation,
amortization and certain other non-cash charges increased 53% to $191.7 million
primarily reflecting the impact of the 2002 Acquisitions. Broadcasting expenses
increased 78% to $145.7 million. The stations acquired in 2002 had broadcast
expense of $76.4 million for 2003 compared to $13.2 million from the respective
acquisition date in 2002 through December 31, 2002. For the television stations
that were owned continuously for the years ended December 31, 2003 and 2002,
broadcast expenses increased 1%. On a pro forma basis broadcasting operating
expenses decreased 1% from the prior year.
BALANCE SHEET
Total debt outstanding at December 31, 2003 was $655.9 million compared
to $658.2 million at December 31, 2002. The Company's cash balance was $11.9
million at December 31, 2003 compared to $12.9 million at December 31, 2002.
SETTLEMENT OF IRS LITIGATION
In January 2004, the Company settled its litigation with the IRS
relating to the acquisition of certain television assets in 1996. The settlement
requires no cash payments from the Company. The Company agreed in the settlement
to forego certain claimed depreciation and amortization deductions relating to
the 1996 through 1999 tax years, which in turn resulted in a reduction of the
Company's current federal income tax net operating loss carryforwards by
approximately $16.3 million. After giving effect to the settlement, the
Company's federal net operating loss carryforwards approximate $190 million.
During the three months ended December 31, 2003, the Company recorded a non-cash
charge to decrease its deferred tax assets by approximately $5.8 million to
reflect this settlement. As a result of the settlement, the Company is also
entitled to collect a previously claimed federal tax cash refund from 1996 of
approximately $1.2 million, plus statutory interest.
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 2 of 10
RESTATEMENT OF 2002 TRANSITIONAL IMPAIRMENT CHARGE
The Company has restated its 2002 and 2001 consolidated financial
statements for the items discussed below. These restatements had no impact on
cash or on income (loss) before cumulative effect of accounting change.
Reclassification Between Broadcast Licenses and Goodwill for Acquisitions Prior
to 2002
Broadcast licenses of television stations acquired by the Company prior to
January 1, 2002 were valued using a residual value methodology where the excess
of the purchase price over the fair value of all identified tangible and
intangible assets was attributed to the broadcast license. In applying this
methodology, the Company previously reported deferred tax liabilities for the
excess of book over tax basis of assets acquired with a corresponding increase
in goodwill. The Company has determined that, instead of recognizing that amount
as additional goodwill, the amount should have been included with the residual
amount attributed to the broadcast license. Accordingly, the Company has
restated its December 31, 2002 balance sheet to reflect the reclassification of
approximately $36.4 million of amounts previously reported as "goodwill" to
"broadcast licenses". This reclassification, in turn, created additional book
over tax basis of the broadcast licenses, requiring recognition of additional
deferred tax liabilities and recognition of a corresponding increase in the
amount of broadcast licenses. This grossing up effect resulted in an additional
increase to broadcast licenses and an increase to deferred tax liabilities of
approximately $29.0 million at December 31, 2002.
Revision of the Initial Transition Impairment Charge Calculation Upon Adoption
of SFAS 142
The adjustment mentioned above and the correction of certain other
computational errors in the initial transition impairment calculation caused the
pre-tax impairment charge as of January 1, 2002 to increase from $39.5 million
to $39.9 million and caused the related tax benefit to increase from $8.9
million to $13.2 million. Therefore, the cumulative effect of accounting change
of $30.6 million previously reported in the statement of operations for the year
ended December 31, 2002 has been restated and is now reduced to $26.6 million.
This net adjustment was recorded as an increase in broadcast licenses of $6.4
million, an increase in deferred taxes of $2.4 million and a decrease in the
cumulative effect of accounting change of $4.0 million.
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 3 of 10
The following table summarizes the effects of the restatements
discussed above. These restatements had no impact on cash or on income (loss)
before cumulative effect of accounting change. (Dollars in thousands except per
share data):
BALANCE SHEET AS OF DECEMBER 31, 2002
-----------------------------------------
AS PREVIOUSLY REPORTED AS RESTATED
---------------------- -------------
ASSETS:
Broadcast licenses $ 878,631 $ 950,321
Goodwill $ 173,341 $ 136,969
Other intangible assets, net $ 8,900 $ 8,905
Total assets $ 1,296,724 $ 1,332,048
LIABILITIES:
Deferred income taxes $ 174,765 $ 206,143
Total liabilities $ 888,114 $ 919,492
STOCKHOLDERS' EQUITY:
Retained deficit $ 28,176 $ 24,230
Total stockholders' equity $ 369,420 $ 373,366
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2002
AS PREVIOUSLY REPORTED AS RESTATED
---------------------- -------------
Cumulative effect of accounting change, net $ (30,592) $ (26,646)
Net loss $ (27,887) $ (23,941)
Net loss available to common stockholders $ (34,317) $ (30,371)
Net loss per share available to common stockholders
Basic $ (1.55) $ (1.37)
Diluted $ (1.53) $ (1.37)
For the year ended December 31, 2001 the Company has restated its
intangible asset amortization expense and its income tax benefit increasing each
by $958,000 to reflect, in that period, the impact of the reclassification
between broadcast licenses and goodwill plus the related "tax-on-tax" gross-up
mentioned above.
RECLASSIFICATIONS
Certain prior year amounts have been reclassified to conform with the
2003 presentation. Specifically, the Company has reclassified amounts relating
to the loss on disposal of assets from miscellaneous income (expense) to a
separate line item entitled "Loss on disposal of assets, net" included in
operating expenses.
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 4 of 10
GUIDANCE FOR THE FIRST QUARTER OF 2004
The Company currently anticipates that its results of operations for
the three months ended March 31, 2004 will approximate the ranges presented in
the table below.
THREE MONTHS ENDED
Dollars in Thousands MARCH 31, 2004
ESTIMATED RANGE
LOW HIGH
--------- ---------
OPERATING REVENUES
Broadcasting (less agency commissions) $ 59,000 $ 60,000
Publishing 10,500 10,700
Paging 1,700 1,800
--------- ---------
TOTAL OPERATING REVENUES 71,200 72,500
--------- ---------
OPERATING EXPENSES
Operating expenses before depreciation and amortization
Broadcasting 37,000 37,250
Publishing 8,000 8,100
Paging 1,425 1,450
Corporate 2,000 2,500
Depreciation and amortization 6,000 6,100
Amortization of restricted stock award 75 100
Loss on disposal of assets 50 100
--------- ---------
TOTAL OPERATING EXPENSES 54,550 55,600
--------- ---------
OPERATING INCOME $ 16,650 $ 16,900
========= =========
The Company currently estimates that net political revenue for the
three months ended March 31, 2004 will range between $2.3 million and $2.5
million compared to $741,000 earned in the three months ending March 31, 2003.
Such estimate for 2004 is included in the broadcast operating revenue estimates
presented above. In addition the Company currently estimates that non-cash
401(k) plan expense will range between $475,000 and $550,000 for the three
months March 31, 2004 and such estimate is included in the operating expense
estimates presented above.
For the full year of 2004, the Company currently anticipates that total
operating expenses before depreciation, amortization and certain other non-cash
charges will increase approximately 3% over the results for 2003. The Company
currently anticipates that broadcast operating expenses for the full year of
2004 will increase approximately 3.5% over the results for 2003. These increased
operating costs primarily reflect general increases in payroll and related
employee benefit costs as well as sales commissions on political revenue sold by
national sales representatives.
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 5 of 10
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
CONFERENCE CALL INFORMATION
Gray Television, Inc. will host a conference call to discuss its fourth
quarter operating results on March 8, 2004. The call will begin at 11:00 AM
Eastern Time. The live dial-in number is (877) 888-3855 and the reservation
number is T485854G. 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
(888) 509-0081 until March 22, 2004.
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 2003 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.
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 6 of 10
GRAY TELEVISION, INC.
(IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES)
AS REPORTED(1) PRO FORMA(1)
THREE MONTHS ENDED THREE MONTHS ENDED
SELECTED OPERATING DATA: DECEMBER 31, DECEMBER 31,
-------------------------------------- ------------------------
% %
2003 2002 CHANGE 2002 CHANGE
-------- -------- --------- -------- -------
OPERATING REVENUES
Broadcasting (less agency commissions) $ 66,537 $ 62,173 7 % $ 75,404 (12)%
Publishing 11,831 11,583 2 % 11,583 2 %
Paging 2,029 2,070 (2)% 2,070 (2)%
-------- -------- --------
TOTAL OPERATING REVENUES 80,397 75,826 6 % 89,057 (10)%
-------- -------- --------
OPERATING EXPENSES
Operating expenses before depreciation and amortization
Broadcasting 39,422 33,374 18 % 40,167 (2)%
Publishing 8,176 8,373 (2)% 8,373 (2)%
Paging 1,551 1,684 (8)% 1,684 (8)%
Corporate and administrative 2,301 2,322 (1)% 2,706 (15)%
Depreciation and amortization 6,178 6,663 (7)% 5,503 12 %
Amortization of restricted stock award 454 -0- NA -0- NA
Loss on disposal of assets 1,075 592 82 % 592 82 %
-------- -------- --------
TOTAL OPERATING EXPENSES 59,157 53,008 12 % 59,025 0 %
-------- -------- --------
Operating income 21,240 22,818 (7)% 30,032 (29)%
Miscellaneous income (expense), net (192) 141 (236)% 141 (236)%
Interest expense (10,637) (10,759) (1)% (11,654) (9)%
Loss on early extinguishment of debt -0- (5,563) (100)% (5,563) (100)%
-------- -------- --------
INCOME BEFORE INCOME TAXES 10,411 6,637 57 % 12,956 (20)%
Income tax expense 9,146 2,682 241 % 5,084 80 %
-------- -------- --------
NET INCOME 1,265 3,955 (68)% 7,872 (84)%
Preferred dividends 822 858 (4)% 858 (4)%
-------- -------- --------
NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS $ 443 $ 3,097 (86)% $ 7,014 (94)%
======== ======== ========
DILUTED PER SHARE INFORMATION:
Net income per share available to common stockholders $ 0.01 $ 0.08 (88)% $ 0.14 (94)%
======== ======== ========
Weighted average shares outstanding 50,210 41,232 22 % 50,281 (0)%
======== ======== ========
OTHER SELECTED DATA
POLITICAL REVENUE $ 2,251 $ 11,213 (80)% $ 15,062 (85)%
SELECTED BALANCE SHEET DATA: DECEMBER 31,
----------------------
2003 2002
-------- --------
Cash and cash equivalents $ 11,947 $ 12,915
Total Debt (2) 655,902 658,220
Total debt net of cash 643,955 645,305
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 7 of 10
GRAY TELEVISION, INC.
(IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES)
AS REPORTED(1) PRO FORMA(1)
TWELVE MONTHS ENDED TWELVE MONTHS ENDED
SELECTED OPERATING DATA: DECEMBER 31, DECEMBER 31,
------------------------------------- ------------------------
RESTATED % %
2003 2002 CHANGE 2002 CHANGE
-------- -------- ------- -------- ------
OPERATING REVENUES
Broadcasting (less agency commissions) $243,061 $146,714 66% $253,824 (4)%
Publishing 44,366 43,657 2% 43,657 2%
Paging 7,944 8,269 (4)% 8,269 (4)%
-------- -------- --------
TOTAL OPERATING REVENUES 295,371 198,640 49% 305,750 (3)%
-------- -------- --------
OPERATING EXPENSES
Operating expenses before depreciation and amortization
Broadcasting 145,721 81,996 78% 146,648 (1)%
Publishing 31,781 31,583 1% 31,583 1%
Paging 5,785 5,798 (0)% 5,798 (0)%
Corporate and administrative 8,460 5,607 51% 9,010 (6)%
Depreciation and amortization 27,337 17,728 54% 22,152 23%
Amortization of restricted stock award 454 -0- NA -0- NA
Loss on disposal of assets 1,155 699 65% 699 65%
-------- -------- --------
TOTAL OPERATING EXPENSES 220,693 143,411 54% 215,890 2%
-------- -------- --------
Operating income 74,678 55,229 35% 89,860 (17)%
Miscellaneous income, net 20 303 (93)% 303 (93)%
Appreciation in value of derivatives, net -0- 1,581 (100)% 1,581 (100)%
Interest expense (43,337) (35,674) 21% (49,731) (13)%
Loss on early extinguishment of debt -0- (16,838) (100)% (16,838) (100)%
-------- -------- --------
INCOME BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 31,361 4,601 582% 25,175 25%
Income tax expense 17,337 1,896 814% 9,715 78%
-------- -------- --------
NET INCOME BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 14,024 2,705 418% 15,460 (9)%
Cumulative effect of accounting change, net
of $13,215 income tax benefit -0- (26,646) (100)% (26,646) (100)%
-------- -------- --------
NET INCOME (LOSS) 14,024 (23,941) (159)% (11,186) (225)%
Preferred dividends 3,287 2,461 34% 2,461 34%
Preferred dividends associated with the redemption
of preferred stock -0- 3,969 (100)% 3,969 (100)%
-------- -------- --------
NET INCOME (LOSS) AVAILABLE
TO COMMON STOCKHOLDERS $ 10,737 $(30,371) (135)% $(17,616) (161)%
======== ======== ========
DILUTED PER SHARE INFORMATION:
Net income (loss) before cumulative effect of
accounting change available to common stockholders $ 0.21 $ (0.17) (226)% $ 0.18 19%
Cumulative effect of accounting change, net of
income taxes -0- (1.20) (100)% (0.53) (100)%
-------- -------- --------
Net income (loss) per share available to common
stockholders $ 0.21 $ (1.37) (115)% $ (0.35) (161)%
======== ======== ========
Weighted average shares outstanding 50,535 22,127 128% 50,462 0%
======== ======== ========
OTHER SELECTED DATA
POLITICAL REVENUE $ 5,668 $ 16,612 (66)% $ 25,349 (78)%
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 8 of 10
NOTES:
Note 1. "As Reported" and "Pro forma"
Information in this earnings release has been presented under two different
methods: as reported and pro forma. The as reported basis of presentation gives
effect to the acquisitions as of their respective acquisition dates. The pro
forma presentation gives effect to the acquisitions of Stations Holding Company,
Inc. which occurred on October 25, 2002 and KOLO-TV which occurred on December
18, 2002 as if each had occurred on January 1, 2002. Accordingly, the pro forma
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 pro forma
presentation. Depreciation and amortization expense in the pro forma
presentation give effect to accounting for the respective acquisitions. Pro
forma income tax expense or benefit assumes an effective tax rate of 38% on the
pro forma incremental net pre-tax income or loss. Pro forma 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 pro forma condensed consolidated statements of
operations for the three months and year ended December 31, 2002 follows:
Data in Thousands THREE MONTHS ENDED DECEMBER 31, 2002
-----------------------------------------------
AS EFFECT OF
REPORTED ACQUISITIONS PRO FORMA
-------- ------------ ----------
Operating revenues
Broadcasting (less agency commissions) $ 62,173 $ 13,231 $ 75,404
Publishing 11,583 -0- 11,583
Paging 2,070 -0- 2,070
-------- -------- --------
Total operating revenues 75,826 13,231 89,057
-------- -------- --------
Operating expenses before depreciation and amortization
Broadcasting 33,374 6,793 40,167
Publishing 8,373 -0- 8,373
Paging 1,684 -0- 1,684
Corporate and administrative 2,322 384 2,706
Depreciation and amortization 6,663 (1,160) 5,503
Loss on disposal of assets 592 -0- 592
-------- -------- --------
Total operating expenses 53,008 6,017 59,025
-------- -------- --------
Operating income 22,818 7,214 30,032
Miscellaneous income, net 141 -0- 141
Interest expense (10,759) (895) (11,654)
Loss on early extinguishment of debt (5,563) -0- (5,563)
-------- -------- --------
Income before income tax 6,637 6,319 12,956
Income tax expense 2,682 2,402 5,084
-------- -------- --------
Net income 3,955 3,917 7,872
Preferred dividends 858 -0- 858
-------- -------- --------
Net income available to common stockholders $ 3,097 $ 3,917 $ 7,014
======== ======== ========
Diluted weighted average shares outstanding 41,232 9,049 50,281
======== ======== ========
Other Selected Data:
Broadcast Revenue
Local $ 31,760 $ 6,351 $ 38,111
National 15,193 2,427 17,620
Network compensation 2,441 251 2,692
Political 11,213 3,849 15,062
Other 1,566 353 1,919
-------- -------- --------
Total Broadcast Revenue $ 62,173 $ 13,231 $ 75,404
======== ======== ========
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 9 of 10
Data in Thousands YEAR ENDED DECEMBER 31, 2002
-------------------------------------------------
AS EFFECT OF
RESTATED ACQUISITIONS PRO FORMA
--------- ------------ ---------
Operating revenues
Broadcasting (less agency commissions) $ 146,714 $ 107,110 $ 253,824
Publishing 43,657 -0- 43,657
Paging 8,269 -0- 8,269
--------- --------- ---------
Total operating revenues 198,640 107,110 305,750
--------- --------- ---------
Operating expenses before depreciation and amortization
Broadcasting 81,996 64,652 146,648
Publishing 31,583 -0- 31,583
Paging 5,798 -0- 5,798
Corporate and administrative 5,607 3,403 9,010
Depreciation and amortization 17,728 4,424 22,152
Loss on disposal of assets 699 -0- 699
--------- --------- ---------
Total operating expenses 143,411 72,479 215,890
--------- --------- ---------
Operating income 55,229 34,631 89,860
Miscellaneous income, net 303 -0- 303
Appreciation in value of derivatives, net 1,581 -0- 1,581
Interest expense (35,674) (14,057) (49,731)
Loss on early extinguishment of debt (16,838) -0- (16,838)
--------- --------- ---------
Income (loss) before income tax and cumulative effect of accounting 4,601 20,574 25,175
change
Income tax expense (benefit) 1,896 7,819 9,715
--------- --------- ---------
Net income (loss) before cumulative effect of accounting change 2,705 12,755 15,460
Cumulative effect of accounting change, net of $13,215 income tax (26,646) -0- (26,646)
benefit
--------- --------- ---------
Net income (loss) (23,941) 12,755 (11,186)
Preferred dividends 6,430 -0- 6,430
--------- --------- ---------
Net income (loss) available to common stockholders $ (30,371) $ 12,755 $ (17,616)
========= ========= =========
Diluted weighted average shares outstanding 22,127 28,085 50,462
========= ========= =========
Other Selected Data:
Broadcast Revenue
Local $ 79,631 62,663 142,294
National 39,288 28,528 67,816
Network compensation 6,422 2,917 9,339
Political 16,612 8,737 25,349
Other 4,761 4,265 9,026
--------- --------- ---------
Total Broadcast Revenue $ 146,714 $ 107,110 $ 253,824
========= ========= =========
Note 2. Debt
Total debt as of December 31, 2003 and December 31, 2002 does not include $1.2
million and $1.3 million, respectively, of unamortized debt discount on the
Company's 9 1/4% Senior Subordinated Notes due March 2011.
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 first quarter of 2004 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 10-K for a discussion of risk factors that may affect the Company.
Gray Television, Inc.
Earnings Release for the Three Months and
Year ended December 31, 2003 Page 10 of 10