GTN - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Gray Television's First Quarter 2018 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn conference over to Chairman, President and CEO, Mr. Hilton Howell. Please go ahead, sir.

Hilton Howell

operator. much, so you, Thank Good morning, everyone.

XXXX mentioned, As and for Howell, quarter Chairman Hilton of the joining Gray first you operator CEO of Television. the all I'm I call. earnings our thank

Kevin joined today Officer, Chief Development Chief As usual, Latek; by our I'm and Ryan. Legal our and Officer, Jim Financial

morning a disclaimer that will will provide. We with begin Kevin this brief

Kevin Latek

been to other differ undertakes Gray uses Thank various update result www.gray.tv. in and a the statements include source forward-looking may on the this forth you, call statements. included Those and in risks recent Hilton. no Good these of described information. as future earnings forward-looking results. as the regarding, is number website morning, the important things, among uncertainties. of factors everyone. are website in Company's a operating The Certain release. obligation statements Company SEC forward-looking factors. subject The today's from have to Company matters set discussed results in key a reports Such its future most filed statements of Actual those with address could

on but supplements GAAP non-GAAP financial are These the call in website. We and We be metrics non-GAAP assist broadcast in as investor leverage to reconciliations post Company. an measurements, the evaluation the public discussion meant made that certain measures are flow the corporate flow, to within a provided analysis cash included next GAAP particular, not financial and ratios. expenses, and broadcast will in our available less statements few cash Included financial cash our of our are flow on replace deck measures, the of to weeks. cash the free also website to measures their updated of will flow, operating

to call the turn Hilton. I'll Now,

Hilton Howell

better Kevin. stronger income a Television busy balance statement. ever year began sheet company, as this Thank larger, as and you, Gray and building

national and XXXX by $XX release, our to advertising million our approximately first compared saw or year. local this earnings from morning last you XX% revenue As quarter increased quarter first

was increasing the income the million XXXX, net for XXXX. of first quarter first of $XX.X from Our XX% quarter

flow QX XXXX, year million cash increasing earlier broadcast XX% the period. was Our from for $XX.X

Our income per million of was first stock for of share share. on our commissions Further XXXX approximately per $X.XX for of share repurchased million. quarter diluted the we including per price shares at average market $XX.X approximately the net $XX.XX of fully X.X total cost common an open

of XXXX, $XXX.X in eight-quarter XX, that As March our trailing credit as X.XX senior facility basis, of netting ratio our our all was a cash leverage calculation. total balance defined times on of against total million

with We for remained and very are balance XXXX. extremely the optimistic pleased about we these results

softness note unexpected However, have it's we important that as also to some we began QX. had

to Consequently, enormously for selling are all example is individual and access varied. ad might But core the they our soft of advertising time based as he quite Wisconsin. are they their in some a but word than month spend strong XX in selling back areas, to exhausts he periods. over typical some as advertising vehicles reasons dealer spend. our need his have just during this traditional have on of traditional markets, all mouth, of available of car Our pulled Out clients doesn't much, many one of of so the national that economy their long-time economies typically headline suggest. consequently markets, of is many softer advertisers our is our are That inventory literally somewhat had which the has A XXX of this this on inventory.

third-party the top-ranked individual experienced. those up revenue markets when audit, the Indeed stations television we saw see volatile. market in continue also better than we that all declines our quarter had markets than in becomes rank revenues total to market our we lower stations across hold stations in greater This which

quarter revenue that the top revenue television we markets our markets. several significant ranked and extremely recognition local by our advertising brand in peers. showed Results or each humbled most enduring station fact, like of value in and In honored prove of of of audits, national we times. platforms dynamic bestowed In legacy in in Gray's it safe first and had advertising aggregate the April, increases trusted our of were share by our local in these

Gray's Murrow was commitment Journalism. of affiliate and for this at the also market which of the wanted in the honors WMTV, most Associations category, small Gray's Once in KWTX Wisconsin. individual We National learned to exceptionally winning service our WCTV, Eau Gray's Tallahassee, station WJRT, Foundation affiliate doing job the dedicated first finalist and winners each actually Associations as XXXX In ABC political at We the the two televisions Flint, noticeable. CBS Educational this quarter as four replicated stations for Texas take great Television separate the stations fantastic one our the Broadcasting Awards Waco, Gray's of in outstanding In advertising for increasing journalism the years Claire, as local affiliate winners for the Educational named R. competition, of the finalists that becoming Madison, a On and Association the the combined Florida annual winner. employed two salute Foundation guidance. It the the affiliate prestigious of regional in broadcasters. news, Educational television revenues four to of The NAB other is Foundation Michigan radio WEAU on world. this category, XX News this In ago. the award. in award. time again, finalists First, set these Gray are America Broadcasting quite several the well. named political TV, Service Community demand announced to won which its of Digital public to among now National respected award. media top awards Radio CBS as television in beat the named of of Service two Excellence a in Murrow stations the market end Awards honors Edward NBC of Wisconsin The the in April, chose for

The second be as usual quarter will much political the than for better revenue. quarter first

Ohio, we In South North Iowa, just had Maine, Kentucky. June, Dakota Alabama, this Indiana, have primaries Dakota, Virginia, and in Colorado. in fact, we month Mississippi, West Nevada, Idaho, In Carolina, primaries Georgia and Nebraska, will North

the base house quarter we have addition, campaigns a issue for In third buys for groups. gubernatorial fourth few million and dollars number in of and already and booked a

top remarks, begun to quite a stations. prove point, and their that with well very remain we Jim We season very turn XXXX XXXX and political year line will have I will the the for this and for after over Ryan, open our good optimistic anyone. strong At then to we call Latek, to performing a from will Kevin be questions

Kevin Latek

Good morning.

in saw have earnings the the you of expired morning, this all retransmission around year. that our completed we end agreements release last As of

in Specifically, course XX% are base All at In growth signaling rather with signal especially or significant impasse XXXX. result complex of our our with end and small. does remain tone an from that volume in subs a negotiations. had although plus operator, we cable negotiations, same OTT nor hosting pleased pulled seeing of starting very of consent attention. the the the are several XXX the Access platforms reached negotiation. satellite and to of Despite OTT never pure At our tremendous many any we end, roughly MVPDs we and base separate sometimes CBS we once or the ran covering The the tenor, NOW get over subs, single XXXX, this even these difficult combined the announcements of we the negotiated call up months over year-end total sub agreements newly time transmission DIRECTV

universe total more year. our than half our in the In of fact, declines MVPD last universe erased subs sub OTT

unchanged great end In the stations XXXX is count operators since combined XXXX. throughout OTT have and the Moreover, country. continued sub for addition, our total from launch to MVPD roughly OTT XXXX, year

three you at closing. CBS signal very may or launched Access launched affiliate any Access we Gray the know, necessary as As CBS ago, after where service CBS All on acquired years on All soon launched every just and

the Access, platforms as in year we at occur the OTT of will million range retransmission different $XXX been millions to simply revenue criteria. enough we net the our linear the of CBS modest XXXX million. multiple remain subs, net year-end of our gross year Today carried will in of retransmission have not subscription addition, guidance $XXX revenues. result This within quarters every currently having as few other and has and throughout call. to are a gross satisfy some in increase be in these million dollars platforms In expiring revenues launched on Through what we of revenue the a addition sub and years, assuming boost first announced expect which past. to our than will points contracts, retransmission to it now in Meanwhile, guidance which few better quarter to this Based affiliate will year. we while as All subsequent moving now some in in had of of retransmission around we from results for termination morning. the necessarily raising the XXX approximately revenue acquisition within Rather agreements what will both in particular, last opportunities, we net than revenue for revenue pricing In retransmission $XXX slightly of approximately the $XXX.X anticipate realize end higher somewhat million, increases retransmission range station expense some past OTT our retransmission retrans the growth OTT basically XXXX, on should we retrans in be returns sand a from full be M&A number in expected with last gross the year XXXX. large the this we of perfectly signal in have year posted

healthy does overall bar. acquisition criteria our the While present high a pipeline is

add affiliate have committed a These that relatively growing a will to flow by we portfolio our will transactions adding quality of few additional year, our Specifically, be a we handful second in three through immediately the cash build markets. opportunities operations. that big only to existing to into television network entered smaller high acquisitions Since continue of stations scale beginning this remain accretive.

you and Jim as to call your We of to over opportunities Thank now M&A we are working more have ever the months. coming will the time for turn Ryan. busy in on and weeks hopefully I'll and announce

Jim Ryan

everyone. morning Good Kevin. you, Thank

for record full said of to all-time look expect revenue XXXX our revenue, the $X As would exceed out year we Company. billion we on as still be last which we call, to an

end times our the the was on Secondly, trailing we all we continue said, activity. eight a our call, expect lower net cash quarter in X.XX significant cash leverage net leverage all as M&A at the of of our any to to the absent by last be since of year and March, end Xs, of basis

as full definitely like of Finally, of QX $XXX.X Kevin our $XXX retransmission to net was to growth discussed call. the million is I'd we that million million guide mention year again, higher increased than $XXX at said, million $XXX to

given the you million. retrans we told we million firmly finish $XXX $XXX between that that had range within growth If of on we we the midpoint that call, recall would people and would believe of

I as will not pleased back this of Kevin linear. the half of the point, of negotiations. the be Also and want show back we're to over QX. in perfectly back increases QX At just obviously very I'll year reiterate XXXX portion turn the revenue Hilton. So, well, will final to with mentioned that The larger call year, as results retran the the

Hilton Howell

Jim. Operator, for questions. we'll up Thank the open any you, call now

Operator

RBC our [Operator come with Instructions] Leo question first And Kulp from will Capital Markets.

Leo Kulp

for taking the Thanks morning. question. good Hi

around talk X% core, versus, just XQ about to XQ. historical for down seeing in So, what you us much you and XQ was it auto normally X% combined like on down X% in what about terms have would booked Can specifically seems for and have? category you how core to basis – of are a pacing combined you on its

Jim Ryan

In X.X%. pacing of I high-single QX little But I is The in general, bit about of color categories than some down was QX and think were on would already softer furniture getting from date some and current on little softer on legal QX down currently local else basis little, all, it it It's home well. QX. to pace, as as combined and QX categories auto on a were as is to as home you a is a two historical had national know is looking in And up, again specific, Everything time. digits. in a well most category appliances, communications Hilton first some slightly core is The change pacing the improvement looking up actually we've comments about in made markets. legal been will improvement, up And as comment QX. last a over so QX. Friday soft. stress we in down is was up

Leo Kulp

much Jim. one two Alright, increased thanks the on much retrans subscriber coming from of coming deals And the that better is on from then pricing versus revenue, is follow-up how how final outlook? better

Kevin Latek

parsed don't back Hi, gone I I Leo. that much. and know, honestly haven't

reports and get put and just subs carried, We markets can file across massive all get at chart retrans versus that's OTT XX and a it's there, I'm – we the payments. this I recalculating. different the from to came increases there we of and a back that new parse sub to I'd fair a anything we new sub and bit signals call. the we in I have in say, subs what little numbers We of sub – counts new else. as the We It's some didn't just you in took color that looked small I figure on with changes and versus on mean there's – in call. the – are expectations negotiate the a our numbers part is keep percentage, go for from little getting get revenue and out today's and and sub we all say currently the imagine bit contracts contracts there but

better picture call. we on it's So, our than last expecting all-in-all, a were obviously

Leo Kulp

Got it. Thanks a lot Kevin.

Kevin Latek

Sure.

Hilton Howell

Leo. you, Thank

Operator

And Bank. Watts with moving on, we'll go to Deutsche Aaron

Aaron Watts

how of on. more kind the is whether temporary kind is your you on you just know they in thanks that more of of issue, X, are auto, that? their money declines a a your shift something there long-term more digital or allocating they any dealers there to sense the national, local commentary Hey for or how guys, somewhat having One tier guys, me feel around shift are follow-up like but up in budgets, shifting it are a is

Kevin Latek

been especially one but we that's are with being outside We that large and think seeing clearly call to in to digital not a both auto, the we've price commented what there is there on other saying that seeing television. if spending a spending budgets I a on Anecdotally, don't as too is we and It's in shift are agency for think And – They accelerating. call, a patterns remember other to at QX they've is the correctly medium recently while, that in has down. opportunities. – of wound certainly bit. the not Dodge continuing just talked jeep are we QX little don't indicated they are shift

people other commented some have think I on that.

but go of to The the we basically have as in the we the up. nothing is down really it's up given auto than two us up shifts other, any those numbers. are add happens you canceling that Ford pronounced, literally two seeing each accounts things what a real are quarter. little to air lot thousands for and be Other on

of their if that people somewhat You off dollars the as mid-range the that said think is are dealers the a a And temporary which be are on normal, the situation more that dollars get they to out table I last few putting call realigning businesses. table. in than we is a coming as few kind in but people taking that coming and just seem

dealer, don't anecdotal business now, really know as hot one to so pocket right for it's their I As need Hilton in said they some to but advertise. put save when dollars they time is a really they if need it can you why their earlier, see it.

Hilton Howell

Hilton. is this Aaron,

ad number managers, the of vast And spoke Let and that shifting anecdotal, then general actually XX instances RVPs opportunity me to we EVPs. the seen advertising really through just than, vast in our days. number examples everything the other quite and heard agencies almost mean, number I've every with and went significant that, talk we've to say I really I of a a spoke had to about stood, many that low – agency in last them really – where from of from

that so confidence And gives a that temporary me great of deal this a is situation.

Aaron Watts

That's helpful right. All Thank you. context.

posts years distribution growth give deals, the this, about also after few kind now Just majority on as to thing I fee that but the if your apologize us goal of year your in that able missed of horizon next Are you've locked agreements. in some three next somewhere a your think you about I some Kevin, over ballpark? affiliation -- of maybe good we retransmission

Kevin Latek

retrans a We've numbers in We large of up affiliations our NBC will of any to believe third at and of continue about is are continue part in year, this of NBC grow. to the end third sub-base, net not put portfolio. because around our all our it

know So foolish to net is comps it is be, and estimate to to that would reverse until therefore what for be number what be, to what be. be on going us our trying going our going is we to

Hilton Howell

that little Aaron bit. a add to to

will year. X%, the end couple only times have August our a CBS And new will with as up of X% of a XXXX. of last before of we'll extended price we to well, extension majority the agreements said a remind renewal we've small year, of reset in for our the X according great agreements terms those XXXX. NBC ordinary that of everybody the rate said, we As as January course in that Kevin to basically sub-base percentage, And very this at affiliation

the which three amount XXXX next that we've we've grow because years, also the confluence in the everyone seen So, while told show that over years expect those we of of growth several net to events. of lowest many

Aaron Watts

All right, Got I more. one thanks. if for last And me Okay. it. one sneak could

Hilton Howell

that in in and basically growth that. XXXX reprice better all we our sub-base expect We'll XXXX, would of

Aaron Watts

picture. it. a bigger One help Okay. Got one last me, for

are Just looking at think as outside a of buyers opportunities you rather about like are from acquisition sellers. lot like that seems the least and groups it the there, than out talking

groups it's us Gray? could to platform? and the going terms there in in maybe are into be opportunities what singles station to So, going just be one-off pipeline you you tell Whether think be existing you are of that what more to you doubles will seeing the plug for or able

Kevin Latek

it's Aaron, in only I platform. a company are M&A also said new both will don't Gray to that the happening. a coin that. opportunity in markets. marketplace excited to are put Sioux about And we going willing big with no and willing the in open We stations rules trying an a when and tell put at But and able lot really of intend our fashion first there to say, the lot you, a than transactions. its acquisition the that done of opportunity not a We've work new much And to why a into been seller it. there but to and growing recent are we for this And very acquisitions we help our the of I you, which look build to be continue together. then, we but we working think team about that you've allow. in-markets, on know total to possibility it's the companies have to talk small have be acquisitions line I at to but an the of been was out have balance we year larger a partner got look enough this company, really think to there to I execute, what had to tremendously seller, in just assure at oh, very willing bottom it the We other going add is going ability has regard that nonstop is see Falls to a public continue to with or the is continue one to was of very market can management to our optimistic sides a we think to buyer large in is world, forward. variety that of

we look as our platform and wonderful at do. we what television a have own stations We

we And trench there a is think opportunities. so, of

give right more couldn't I you nature the now. world of So concrete, any the that's but

Aaron Watts

I understood. Thanks guys.

Operator

Markets, Capital we'll Michael And next from Kupinski. to Noble go

Michael Kupinski

Thanks the I the you. Thank questions. taking quarter? the in this, am if stated CapEx you was sorry but what for

Jim Ryan

looking $X.X million. between about I just up before it as and we're you. said and was, am minute, It million somewhere million $XX for expecting CapEx full a $XX year was we

Michael Kupinski

strategy that terms Got What the X.X. it. in And standard? regarding of this investment point the many broadcasters the progress are broadcast highlighting at new of ATSC is company's

Kevin Latek

This is Kevin.

size participated been are the the extent I market is outside test The is of think on some the to of that we've of transition right Dallas of market and well ATSC vocal markets supporters Phoenix and Gray standards. Knoxville. this of X.X now adoption clearly

not top markets. are any We XX

We did the to that as many rollouts next the occur we as XX the trench markets they'll markets ago. into the transition market move with DTV next just and in markets, trench test the – expect years top will then and then

time for Gray. to going ATSC before some it's an be So X.X opportunity becomes

where now have XXXX. Gray told to of station-by-station do be cost XXXX for and so be transition, done will of to is X.X a basis going are don't if we is to years we or where station, there we of any but and to number ROI. open a One folks expect broadcasting eager a in ROI it's in cost So transition a on there

up our a there mobile screened We at online pick no of of there no and signals previously ago was ago markets, leader years years number pick have in DTV a bunch building then We and many a of was been with either. there up.

money ones mistakes. hills, So lot over lot we've started first and of this of the spent time being the a a than around make we rather

a the develop to bit let and ripping it. are plans business technology we plunge going before We and into wait

Gray, event maybe for not a event us. it's XXXX So extent to some at for it XXXX

Michael Kupinski

at And CapEx X.X are plans at point. point it. this allocation for you Got for this have no

Kevin Latek

Well, clear, be and today you can't white. buy to just Everything, It's X.X we X.X. go comparable. doesn't and the in we'll buy has can't black today X.X equipment Whether TV done require that the set X.X upgrades the you like work out all encoders, standard, in that some or actually with market. compliant broadcast some and entity been then are transmitters that's additional

to it's capability, not So fair we just that over say we we transition – there that return are that capability not won't investment. aren't until have the is any of actually to on going

Michael Kupinski

confidence Got in actual indicated political or And year? you're that of advance seeing of you bookings the in And it. I number already a are the of far that lot political a of expecting placeholders a you was are rest are wondering coming. and getting political? large expressing to lot races going of terms you you how visibility in in

Hilton Howell

more our minute, political last most at in revenue year after XX% the quarter. comes of year fourth the – or after always political political year comes So in

So obviously that. away far we are from

Kevin Latek

by seen base made As Hilton call, the and gubernatorial issues. we buys mentioned and have on in some campaigns house

have back mean number to this is do many minute, said, a signs going A point of and our to and of fourth been In it's and race, weeks. far turned But days books not show to will expensive is last The the we way we to as to significant out. political years Election as going of so XXXX XX be and year cycle, have gets Senate spending changed. very saw XX quarter. more amount measures. race booked lot will up two the finishing QX which I is until That's last up we spend for as we Wisconsin beforehand, last a that's book the the every is would just Wisconsin had Wisconsin in no Wisconsin the number have political to quiet almost would for been ready out not typical we we race of we would half very, on QX. show you at rather in end any copout, days thought races, last up very that's Senate be Senate as until competitive know polls the days Political a asked have good In the going in some and strong. So that – year, up all very the typically have XX in going money political business. said the very and it this so very than as Day we've we

just any how going number go, what it's therefore to predict guidance be. individual any is us for impossible the to of year So are political for race on and any planning will we not the

Hilton Howell

more Michael we of after the so base know whole I actually obviously, say a on am Indiana. that had and pleased will is that today. are we in results the pretty we lot with buyers I sign occurred received the far, And which a primaries will optimistic heavy very

dramatic will have we in Republicans know pretty We races who once tomorrow. off heavy nominate West more, are Depending because it's a that finished, really start on those the races very Virginia. could in primary even

Michael Kupinski

I Got appreciate the Thank greatly it. you. color.

Operator

Wells Marci to go Ryvicker we'll Next with Fargo.

Marci Ryvicker

just QX Thanks. I to the have couple want first, X.X% excluding couple, core Olympics? a clarify a of I the was down things. it

Jim Ryan

No, of inclusive that Olympics. the would be

Marci Ryvicker

a Okay. was anything it say about softer was QX, just I than And then, QX. you think could

Jim Ryan

in data little said It auto softer. a was day one about obviously one QX. a in We is for time. X% QX, pace which a in It as little down was again minus just XX was was about current softer. up point It a or XX

Marci Ryvicker

Okay.

have much And I this than mean plan? tracking quarter? Can how when how then inventory much June? probably softer So, QX is in QX. get to the is do we until this second booked change visibility you

Jim Ryan

a about this bit maybe which is at this in, unusual. quarter roughly point the the in quarter but say than point that, half not I'd would in little book a at be more

Marci Ryvicker

than And where quarter QX your shifts then came the quarter tough second quarter? lower call. the there first It Expenses get I the first a is. street was am sorry if Was the on I from timing guide, higher expenses in for missed to than to are your it.

Hilton Howell

There little was a bit.

quarter most worked also of implementing first some in the We hard recently efficiencies acquired in station. some

that bit. out think little I helped a us So

you look If ended X%. at being historical payroll up our and back down go first a basis, combined about quarter

are probably I more timing year Obviously, probably basis very full differences. efficiencies. QX, first got also round think at that doing some uptick flattish, which work things, as very, a QX, few of will be we will probably We've we we the is good. historical a QX, combined For is too. through in it There

things for it there. mean year, think about year against comp and if range basis always takes going in my comes – the little it's got we full a planned beginning a payroll out combined bit You is on the about really historical, it the flattish, again, longer. All reverse I out if all, then you of

Non-payroll can for driver dollars. few So you if you combined see that's the be million entire expense that are few basically low might numbers. expenses year comparing historical the against dollars up year-over-year, million

expense real standpoint, hard. from So are the trying we

Marci Ryvicker

court? back Thanks. might a I just on then, one And might of big am What maybe thoughts we just picture. and decision from happen there? discount UHF a Kevin, think the lastly, your you hear Okay. curious when

Kevin Latek

relevant UHF plead Honest, rules. here. to I have the ownership am discount not ignorance relevance does as about as to any Gray going us to radio

to JSA us. mean someone if on us focus rules to of anything as but it there lot the So interesting, it, dominating is a is obviously doesn't on

as FCC but where there have an a obviously, focused A for of can hell last some right U.S., on it's it's We'll UHF some without pleased because to the because the not a turning not. summer. on we had and rules, the little it And price FCC is Hopefully, so any that I JSA FCC the haven't, for discount on local hard national didn't is of it a which whether is XX% working do ownership unfortunate seems our court are because adopted was we impact up cap/UHF know our people relaxation. we issue JSA's the So, about really obviously there is an us. and frustrating questions. think stock it the now. asking we that on regard very at, focus we is or is overhang, have both That's some discount resolution lot ownership there TV

Marci Ryvicker

you. Thank right. All

Operator

Our question Company. from with Dan Benchmark will Kurnos come next

Dan Kurnos

Thanks. here. one Most asked, questions have of, my of two kind been housekeeping just but

assuming political come bit fair bit the your say half tracking little we to going But there there higher you make no in sure QX, in little guidance? X% close I than know to any out Sioux just the acquisition crowd on bulks QX, Falls is to so to I back it obviously anticipated. Just that a QX? going is is the is the or year. QX or are am that said of And from maybe

Hilton Howell

it's the I There not not QX – a in to have in that It's QX. in it's QX it mean a if in no but acquisition the play, given reasonably us. it big a would because closes It's significant little is going great or just really not be market. for closes impact reflecting it's if market. market small the for Great guidance. size matter No. acquisition the of on QX

Dan Kurnos

or there get QX half all Jim, you're any in not fact the really back seeing crowd until on at that of is And year? you a out, is the

Jim Ryan

any a have and factor it's of think it. really don't would any expected I nor we significance

the with advertising not wouldn't a the the Virginia it's – in today, widespread enough seen today, but demand deep little say I yet. be primary might like enough bit nor it's in You'd West with yet for primaries political Indiana

to it's if and So, stage be there which see some to very out, hard normal. would be going identify. is I mean perfectly this At crowding

Dan Kurnos

most competitive. then beneficial of sense. about you your from a would think I curious point of it's point M&A. the I more broader on as regardless That landscape on if ad Kevin, landscape it make this assets makes think Alternatively, it way. maybe be bringing lumped if think issue just space perspective. market gets competitive a love question discount talking the at that overhang to that ends kind just get with a Yeah. just fact alters if – I ask in an competitive the you up or more you would clarity am know unfairly UHF to more more resolution And different Marci's overturned makes you much that

Kevin Latek

last our negotiations up few I I have ones other. few some been way there bumped much situation which undoubtedly between did that XX see we most is and And and Gray very us. very, be or we prevail have private couple the would not think have odd one or acquisitions good. don't any In been we impact against Resolution as it's involved changing on in. Sinclair the options of obviously the We've Nexstar don't party. the years, other in of clear in last and a acquisitions very, done times.

buying, is. We there in that buyer lot done as as to them we've at more you there whatever – point certainly opportunities in It together is I we roll is there competition would now logical there combined be are particular And are on at we know, all cap they for markets, a lot larger look good to folks thing. other and markets. that no focused markets. on and in which particularly small the have there this and others is think often seems of are – seem I assets basis. we larger we And they – mid-sized than is those a a two acquisitions a close –

buying, for quality able high multiple we've We off good we included given contracts, negotiate pretty stations. to think been side Our eight a it's how well X.X. buy trailing basis is that about our is that are – quarter we synergies time a on pretty think

Potentially, is on it don't for ownership margin people stations. maybe few there see a cap, an interested if is ownership more there the impacting We So, is cap. competition a in stations. it's market discount, at there discount, it larger no is the

for we've very know, stations. been market you in TV As successful not large bidding

really think don't I on So, there impact is us. any

Dan Kurnos

decisions And is period for with so you is these of case of know that longer sense market, a not call. since pot some or guys here asked to cross political Scripps the maybe factoring being finish the really line, this because right gold more is come the year, they waiting end there that the a a people's maybe there know now. of pressure down then was or any into think at there of test just, sort that But I is on bit little

Kevin Latek

not, more now. people I a I can't mean mean hypothesized not can we've engaged I I lot right – to speak are of people why are reasons.

is or whether have that to forward things, the about time They reading to family, by even or headlines. different motivated and I always the logical You are selling are people experience, unique like of unique to we're largest those megaphone know I folks and every multi-generational what every broadcasters. two day than we They scale ecosystem FCC in years the what bearing focused to the the anything are them, have we that to these a in tends our that on companies market. coms, basically seem public talking to nothing to us completely so reason. in no to are factors debts always anything almost find far almost who have us the bad in. their sell seems to now their what Market companies with are almost think is we are are But by of step and et have children are absolutely that every talking an know are day. motivated people OAs, case maybe folks have in That's they learned of family. want almost that and own a them, and they almost every They cetera They operating be – in the just do and and that actions, market in vanity practice that's fight, assets MVPD them prices, the are convince and ask about to they often unique who about. don't public weddings and not on

So, headlines XXXX XXXX bit probably big are of XXXX. I one did our transactions we sell, waiting – till who but you There some was as maybe, the to are in people in some transaction over difference. don't we shares see having know protocol and

couple was a a to going Now wait transactions other of did and the those clearly presidential for didn't be for year, presidential the we folks heck before year return we it of when thought XXXX all political a folks.

years I subscribe headlines don't the don't selling, people to I lead selling, are in why we cross a line. really the the as as what's and you to there is of last said So, the in lot that just years it's into ago were not in that And still and true call, can't finish headline, M&As three I macro busy a today. guess idea We're and ago. two we just year going ago predict

of but things, optimistic you more fall control now pipeline We're line. opportunity and And, we – just is cross right actually dozen finish and or work us, as can something we ahead apart. what's they can't to control Other about the can't going know then bigger had cross now and half sometimes the we pipeline. they the to time work a Some the we on, small just more things those it's take finish and we're and just lot complicated very eager but become line be the we made seeing things, just we on can so I of as deals. are really

Dan Kurnos

Thanks super That's helpful color. Perfect. guys.

Operator

go Company. to we'll & Barry on, Moving Gabelli with Instructions] Lucas [Operator

Barry Lucas

purchase morning. was good buying just the repurchases, just and about there hoping some made the comments stock, you in and fact how you Sioux Thank about earlier as I and back and think Falls wondering you allocation you of at opportunistic capital was on repurchase? share it look

Hilton Howell

of may considers folks to time, may price it the shareholders, and basis we step that Annual enter our of knows consider they I returns have with And we the on stock particular, rules in regular Television, obviously market. dividends, We the responsible are a to not mean No. when very but But Directors performance we're stock are we protecting so – in obviously when there shares, we yesterday and to we're are or our know pull going not back opportunistic step Meeting progress, not are can, in broadcast back our we is time that's when everybody it will to with can't. we the doing we you just are from and of the terms into depends consider we but if negotiations on They for in and buy we're and Gray for sometimes buybacks. what out mentioned for, shareholders. have to Board the and of we look which our be capital price of I that different – into entire price sector, that. one continue stock to do much able to on times happy

Barry Lucas

is. Great. if Thanks and maybe one I one for sneak Kevin, can

As that little there, touch base of oversight at Falls Sioux seemed and footprint share me on the with revenue – your been look in bit an regulation particular, existing to a the in let because acquisition your we with have issue Sinclair.

much how would and you get? So, expect to about scrutiny how feel do that you

Kevin Latek

not Barry owned a we by TV there ratings and is many that – many, legacy and in which for a Gray in many, this led market market years station is is the revenue has Television.

local can't you up down at have the this where But local than and into of It's party combine is approved and continue not the TV more local ad a of if the XX% arrangement we effort in own less stations just ad if were the we would we my ratings will more narrow closed. to a And not this a if not transaction we – XX% offering of having a that local the advertisers that we on ad the folks and station competitive Sioux think Our acquire TV, buy station also market whatever TV reason to just than one take focus than party in the half competitive half stations combined that's current dollars It's silly. than – provide That to local proposed dollars. Falls and viewers for is station sweeps owned smallest you still look be why have would confident obviously be deal and we know all list think market. less pro-competitive and transaction lot possible the of market this the than transaction and the guess on that completely market. signed definition, of this TV one we're invested I basis, on market. question

Barry Lucas

Great. Thank Kevin. you,

Hilton Howell

Barry. Thank you,

Operator

with And go Goss we'll to Jim Barrington next Research.

Jim Goss

Thanks.

couple Kevin. small First of for ones

someone beginning in economics All stages, now to early CBS still in I'm your but air You up. as Access waves versus mentioned – is such whether signal that your wondering, through or it's receives indifference whether over cable? to right the that are earlier the roll OTT the form very

Kevin Latek

We we Jim. the within were of three of ago All needs be It's Hi all to clear. weeks years stations Access our live. of launched with all-in going launched couple and Access All All on Access a that.

beginning. we've as from So, Access a been with very the All party major pretty

of were I three think TV were group stations. – the quarters of we we probably first of launches

time. for So, with some partnering them we've been

– have of platforms. We all available stations our are on kinds

I We a been to we app ago, have have our we've at. Roku – we talked stations viewers our Watch of – everywhere had – of calls think came created as we couple all the our this We've are own ago, of about tried out, app, soon own apps. years couple Apple Alexa be Watch our Apple

example. we really think things as to for discreetly, broad Comcast do as I as analysts versus don't as be So, of think Access trying really All think We possible. of of

and couple some cable we're I to I and Access economics. generally think coming think to the We're versus of Comcast good a calls we All in to people the pretty can subs to are that. of do the we who can the probably those other people time that's are viewers and now, of subscribed monetize – of that's – versus other OTT thing. said some programming platform. of somebody us serve any terms for delivers have from past between terms which In indifferent our and watching are We've period to in subscribe not are still us platform indifferent for

and anywhere our at trouble So, anywhere no we to have any want they viewers finding us time. are anywhere –

Jim Goss

I terms I I was years, stage been know around for it because believe. uptake it's was early thinking I just what in several the but pretty is the still after, of indifference

differ pipeline? issues. your the might closing were there question, pipeline seller talking type Another acquisitions of the on just family and how you method of Is some about more of normalized because of that to might any mentioned smaller time that or is bubbling Is you enough up think number dozen the sort an deals. be there I consistency at that? half given a

Hilton Howell

I think it's us for the rain. like

sometimes is to can't you time how quiet do. it's Some and – it's very there much believe

Jim Goss

differ willing advertisers Jim, more getting total what does maybe point? pay in are your product than issue? flexibility displacement the cancelation factor a then, the there they when a the less advertisers it start type later that to important and sort at the for down are Is to prices that of to to become they can decide that And is year, a

Jim Ryan

The a some No. too regular That's period high to get go exactly just of over. is and lines advertisers is. the what political it and of great side the core prices number

Jim Goss

that elements growth be of about? looking things its the things certain to you that at great digital franchise? of we other that any terms there is are either finally, or nature, adding would issue maybe help, directional or think are should And of Some competitors or in to it there thinking are be programming thinking that

Hilton Howell

we're first on Kevin you path know Well, station the terms to in portfolio. TV on going of trying that – the grow we're to continue

launched has have which endeavor. other been and money division we We with separate programming successful know Moms day, the Company not very a every than within you a do what making

is have within there programmatic where breaking a before and unlike put basis. of because point, that's – have is right remains things think that things in going many we that. in, Right money one forward something on we places as don't put a many go a We our return start to at from investments that applies we to need period M&A even. and to margin those to profit an we're the don't of do it. to expect attempt time better continues money on but think this to see for extended digital we differentiation we distinguishing that now, losing significant to immediately, we that things Gray do be we Our others, things grow have And a

direct but focus grow what Now, the have path very profile, no so a we feel period with of have we of X.X. time. that is for still Kevin but is to will and late, matures, go, as not we a our mentioned market, telling of new there markets, end done this just where that and which remain company grows we also ATSC

all case, will the as smaller be XXXX. very that. on are that you our is markets I about probably to excited medium we often sized know But think taking

of handling that that we we transpires way we and to about we and out, of So, be excited very know sort will see rest XXXX capitalize, the the how but have XXXX are it. before XXXX

Jim Goss

Thanks Okay. very much.

Operator

turn And the conference closing there Mr. additional queue Hilton comments. for or I are further to the at Howell time. questions back no any will over this in

Jim Ryan

clarify I is in to wanted The Marci, down Leo Again because to X.X%. core wanted saying I to number. on X.X%. and something question apologize I about This Jim, the it I wrong sheet. both I local what and was, my would misread and was misread national column apologize QX, be clarify for the it will cheat that. was just I

Hilton Howell

Jim. you be I'm glad for Thank you, with taking the Thank did. morning to you time us. everyone this

you, about very We this when future all with our look growth great XXXX. Have what close we day. QX. speaking a is and We happen are in excited company to to forward and going

Operator

for conclude thank their does We'd that And today's conference. like to everyone participation.

may You disconnect. now

Gray Television (GTN) 8 May 182018 Q1 Earnings call transcript