GTN - Earnings call transcript Q1 2021

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Operator

Mr. Howell, you may begin your call.

Hilton Howell

Thank you. Thank you, Operator. Good morning. the CEO Howell, Gray Hilton am Chairman of and Television. I Call. joining all our our Earnings of thank us First you XXXX and I week, for for this second Quarter call time our Happily our Officer, in vaccinated, with Smith. Chief executive President Chief Financial LaPlatney; our Chief Jim Bob Co-CEO, officers; for Officer, Legal me the and non-masked XX are Development Operating Gray's in-person Officer, months fully Pat our and and Ryan; first Kevin Latek; disclaimer that a will begin provide. with We this Kevin morning

Kevin Latek

statements. could Thank regarding, future future annual you, and Those in statements morning, filed Actual EBITDA expenses, coronavirus to recent website leverage flow, a SEC, key financial Included flow of cash company particular, impact source non-GAAP ratios. the good operating operating corporate its results. our a cash in metrics company everyone. Form website in as discussion as Certain Gray a certain adjusted call or expressed call the are free broadcast on may www.gray.tv. the broadcast matters this These and our uses may address statements and our uncertainties. with cash have in cash flow, novel Hilton, The these to Included reported and things, obligation its is set forward-looking results, discussed replace reconciliations forward-looking be our and disease release. less include and that XX-K statements. among measures, undertakes flow, of operating provided information. and subject to risks in the a our our the on measures to results forward-looking are are of to future known in on website acquisitions statements GAAP the financial various in on as measurements, earnings from pending of the company. earnings number any now of on valuation and recent other The as call I'll recent over meant measures most And non-GAAP turn public reports differ factors supplements including company's of update most been as release as our are Hilton. of implied result our report GAAP the well those not their most important analysis assist no but financial the forth COVID-XX

Hilton Howell

Thank you, Kevin.

a I initiatives. quarter earnings We prudent beat mentioned from issued activity, guidance, first Street, strategic our we flowing and economic results As the of we Monday of morning, on very are increased our variety we and proud beat financial management cost release.

of first impressive big of announcement our of report overshadowed divestiture completely followed week Thursday, second today, Corporation, both And earnings our acquisition Media. or his of Quincy our our Allen other Monday's news to was of XXXX. just last Our deal ago announcements sale quarter by five our the Byron our multibillion-dollar a later friend, billion stations of from big announcement recent of the Meredith and minutes transformational Allen

only demand that. discuss past this least. from common to increase exceptionally of We on if could the such say an million will quarter has political national even increased mostly advertising Net core hope revenue, we by attributable it X% release first to XXXX, excluding income amid million, because, We have combined stockholders quarter $XXX X% our million and $XX end investor to XXXX $X.XX the broadcast have of In know, compared was revenue, per returned approximately XXXX. as call the you call Meredith at call in We the diluted revenue share. of focus reported went defined basis the all of which political on first We as Monday, first advertiser displacement. senior revenue, great transaction this trailing reported Today's quarter We're total local earnings total total and special our on quarter Monday giving end the quarter, transaction-related effect $XXX quite our the cash call times with lately expenses. ratio leverage earnings to on unnoticed. a after of our netting hand been satisfy of reported a a hand credit in busy X-quarter the morning. $XX facility to on or of happy first million as cash we of of will X.XX or

we of throughout first continued the proud and and home very core employees. working We quarter from dedication the excellent are our – mostly credit work these of results, by

discuss, bright consumer The spending will XX, one resumption which a dividend first March in this common great that our Our increased nearly advertising in of quickly optimism Jim since dividend and the goals confirms of recovering XXXX, shareholders second will capital markets economy quarter On our its and media to in that cash quarterly paid dividend, our finest recession. reflects through from with our the to Gray production continue share continued its our return Board's shareholders increased to occasional to guidance, a prospects conclusion companies. drives our every are and Gray company stable, buybacks, that deter us the long-term our our into together and management's grow country. business that of not a is Television

payment impact growth our Our in on or recent no subsequent of dividend acquisitions size. will have its the

quarter now recent my We I colleagues, to next first the will exceptionally from news. which am line and thereafter, additional our open with other table remarks to to proud I will the around have earnings me, release questions. few And color a hear with

So I'll Pat. over turn to it

Pat LaPlatney

broadcast revenue, combined up quarter of local the Hilton. first in which national mentioned, X% was excluding XXXX. call we revenue, political, core total Thanks, And as just Hilton our and

We the XXXX we mid-single ZIP strength in health, over levels, were definitely XXXX. that to legal While rebound saw didn't financial, digits we improvement, code. supermarket in up home all quite to categories, QX mid-teens and

our QX are we're the quite pacings in not numbers pacings, strong. as for and predictor about future quarter. There are of of Our great lot today, revenue, a a positive which are always optimistic still

will games of ACC if impacted production back of back rebound category a due of second continues due nevertheless, companies from this core the for XX% fastest-growing will stabilizes into to to category we us issue. chain to pacing to lag the basketball loss due XXXX. ad the continue improvement The It, challenging you number December, believe had had half the the which supply last be a The year. chip that in other well-documented the issues. those category January first over in categories COVID-related quarter. automotive We the games year's quarter summer, on to shortage Hopefully, is of and numbers. ahead recall, further gambling some horrendous moved And schedule

group XXXX we to is and new In numbers expect business healthy, archive. is enthusiast Sports launching our growth We're back rebound OTT revenue Sports to Going deliver company that our the ORIGIN as production expect automotive to and the Raycom we seeing which news, tremendous forward, space. OTT our this production for games. in all XXXX, and pre-COVID in audience produce quarter, drive basketball business heavily football also will from to pipeline PowerNation, Nashville

side TV And Digital includes down our Amazon, video is Gray rollout quarter in Apple equity connected for is of revenue products digital news these across for in of first business, and a is tracking numbers and OTT plays are from as Fire, turn will a complete Roku I growth. set contributor nicely. And but our digital TV. That year bit projections well our Kevin. is an records the still nice XXXX, Revenues to growing now Premion, ahead showing be reminder, from apps app XXXX, ad and now record for solid on a the to On the and users. of all weather growth. and audience partner this call audience audience company and we markets. our OTT Premion our was products for the of sales station

Kevin Latek

Allen was the our we very The and thrilled from big Quincy employees. to February Thursday, announce like stations morning, Last seems agreement Media of ancient strong to Good its history. news announcement the were acquire We're growing again. The quarter and for Quincy now to first very to that agreement stations with Media concluded competitive sell million. $XXX we process had see to stations Media's Allen personally to the Byron divestiture divestiture added Allen's portfolio. these an happy

does pleading paragraph, rules the other the to Thursday the divestiture complies our and for and our television raise this approvals. than – Media. for this Meredith. similar divestiture need in approval the repeated stations process I'm to between with filings, prompt ownership process, regulatory of we transaction Meredith Meredith market sorry, follow cycle Other sale overlap commenced on divest issues that FCC. in FCC On not or acquisition process The of Last no is to Quincy sorry, regulators terms In issues all the sale, special any Allen quick only and Gray regulatory finalizing transaction pattern of DoJ the terms should sorry. the Quincy standards. novel than close – of Monday, The

As Meredith to parties in closing this and very transactions our end explained Monday communications, year. prior Gray committed the calendar are Gray-Meredith the to of the

call, consent Turning January with last of XXXX completed year-end to successfully XXXX. our earnings X, agreements was That prior MVPD. we the After to large retransmission. retransmission our another agreement retroactive

that approximately agreements combined that XX% we forward, Looking represent this our sub summer base. expire two of have MVPD

local of with last done, the will television stations. more anticipate portfolio economics quietly conclude than successfully have XXX of that we we with and unmatched months, our reflect we high-quality negotiations the two As value over MVPDs six these that

second $XXX to gross second quarter, first anticipate – for will to quarter we increase XX%, of XX% total quarter million by – the $XXX compared excuse For quarter the between second revenue million. retransmission to gross XXXX of that revenue the retransmission to me,

a we legacy For year, meaning retransmission XX% billion. represent Gray the stations, the would for and excluding That of $X to XXXX. gross least calendar at XX% Quincy Meredith stations, the expect over revenue increase total

less however, saw acquisitions. the OTT between across compensation XX% by does first total first quarter big again, X.X%. And and guidance various four is the All big expected or paid our quarter subscribers, of subscribers we XXXX, subscribers only decreases declines. four paid Our total annual modest large platforms continue satellite told, XX% large include and XXXX total pleased see only network impact we in Quincy the that not among On Between retransmission are this of the decreased and cable, of and payments, to distributors. to all increases our Meredith grow XXXX. revenue, the

satellite includes over the broadcast operators cable local continue Ryan. turn shifting a consumers a stations. service While to the most to from are providers, microphone and value I'll OTT paid for Jim many now subscription see to in traditional their consumers that

Jim Ryan

Kevin. Good you, Thank morning, everyone.

As be quarter. everybody today, key had Monday. bit XX-Q our Hilton's filing highlights release covered and remarks results since on earlier usual, the has the the later QX a we'll little actual of

in seeing And QX. comments encouraged some with my QX brief we continuing indicated, we're our I'll on are – make So guidance. currently the as improvement Pat

$XXX based today, to our of close the to Total XXXX, encouraged levels. XX, the quarter XX% total will million. revenue that compared levels revenue core XXXX to the very to of XXXX ending forecast for and core be to June million As June by we're to expecting on ended very will current XX, $XXX.X quarter XX% approximately close we're million, XXXX we're increase $XXX

As broadcast with million said, – million. Chief explained XX% expenses, and $XXX by acquisitions. we to start just between range revenue to to to Smith, will to I'll will And $XXX operating corporate million. $XX $X million is as increasing and reverse $XXX to will to $XXX grow now And and will call increase million Officer. that million. the million incurring between to revenue $XX to retransmission our of to million. our networks. million the $X million $XXX expenses additional will range Kevin increasing And between Production the XX% broadcast comp And will expenses something $XX approximately of $XXX XX% million. be $X production increase total pending million expenses our expenses company XX% approximate the $XX turn transaction-related Operating million Bob our

Bob Smith

as geographically they begin fit a We're you, for It's very Thank the believe week and they great been Gray, for to Jim. responded a both acquisition. our enthusiastically with the Meredith We to working great culturally. excited are employees Meredith stations.

share leadership from In in who feedback has sales. best for positive all practices known have senior and employees, some received time. and they also news our professionally We're excited both exchange of addition, Meredith to

advertising. to With a combined banner XXXX in year be regards political companies, the should

minutes Washington, out person to Wisconsin; perhaps is as regional Richmond, for for overall announced our in possible. has excellence, came D.C. New KWQC Lexington, Orleans began local in Davenport, stations newscast, RTDNA in announcement WWBT I fact, Gray's again of Virginia. is Louisiana; Quincy happiest In of XX Political to as a this Murrows selected that in best WTVG our WVUE Lexington, a Excellence for regional starting WKYT in in of Ohio; separate on in WVUE Orleans, for as three Gray VP honor and category all Sales, fast Jones, Monday, WVUE Baton XX really can awards. Journalism for WKYT awards ago, News Toledo, New R. of bestowed Six us Orleans; also began honored the are Kentucky; planning WMTV and with Kentucky; Edward again, by of in when We're which Association few and in Since stations. to eager won tell joined the in in Madison, transition the Monday, who you was Mike Iowa. in WAFB the Murrow New in Radio Rouge, Meredith Awards this and nine in close that located We with highest combined Digital awarded it call just both Television the

WBAY also Green Investigator Reporting starting Now; Georgia; from in four New Orleans as winners We and Bay, Augusta, in WRDW had category, Hawaii again Wisconsin. WVUE News the Honolulu-based as well with in

week. Innovation. Lexington, Finally, journalism news had for Missouri, every and KYTV for in be investigative now well great and all WKYT for companies Springfield, Kentucky; the are turn ever, Hilton. as the in any Congratulations highlight in award back The the news regional professionals. for market. of tremendous proud to awards the Truly, to by winning this to strongest I events I'll competition want these Murrow teams call to in local XXXX light media all we and unprecedented in efforts as Excellence historic

Hilton Howell

pleased may in right have of open our And all professionalism the will very proud the we with the questions Association now, from you fields. exceptionally for thank news Digital Well, the them. much, folks Television out News and of that And Radio are Bob. of we line the very operator, of anyone

Operator

Instructions] from We Thank you, from [Operator Evans first Stephens. sir. Kyle question have our

now Your is line open.

Kyle Evans

Hi. and think help what next quarters? you that's retrans Thanks year. XX% year? Thanks. think net Help about for us the Could growth the on around detail this for the cadence renewing about us

Kevin Latek

Kyle, Kevin. – this is it's

the big pushed the XX% year. up subs renewing two I through everything, We on retrans actually have no of summer the mentioned this for about through We We've those call. have contracts next starting renewal of but on last end intense, there's of has what no we've and backside, this year. between done And any the pretty cadence that been that of renewals substance summer the retrans, means the XXXX.

Kyle Evans

networks is recollection your you with up? just my then And that just Great. got done remind well, but those back as when me queue all all

Kevin Latek

the Actually, ago. a few years done were network deals Yes.

deal the three years, haven't on We probably depending network network. done a four years, in

and of end all the have up the at CBS ABC all of We of this of end the our year, Fox XXXX, all NBC up up XXXX. end

Kyle Evans

by for XXXX versus the presidential XXXX sizing help one, sorry, last windfall? cycle and then cycle I'm maybe takes the – Georgia versus Thanks. puts the And about Great. XXXX us political think the political and

Kevin Latek

So days for it's this at and million $XXX first around you of last number reported. few I of Election year. The was significant. And the million that Georgia of runoff. what entirely obviously year, million delta reported can Georgia fairly XX%, We first Presidential mean calendar the the we was in look – XX% There's we to That quarter right year. then hit $X political those up end about political of Day, reporting revenue $X January. was

the we we ballots. line you other in even races rest levels competitive House Senate from in won't Governor, a runoff before up seen were U.S. Georgia saw and there down the XXXX. The double and So can hadn't to seats, races the of I think and be what of assume Senate very

So think about all we're XXXX. good feeling I very in political

started razor-close. As not you dropped and know, seeing are House their People Kumbaya. have and Senate political divisions

Senate of Senate the So very – the exemplifies Senate on continue that. we House a spending for will and I and expect the of the close, in the saw activism, gets lots and beyond. to important and throughout versus think company and with House political control politics When that therefore, area fundraising spending, XXXX you House races. that you Georgia year very be see also But

it's we both Senate forward XXXX, in So almost to fast Georgia of grabs that again. are kind and – up for all House really when over XXXX.

sole optimistic for very giving Arizona, platform, us, to the XXXX course, our unmatched, with, of in lot hot stations, are current in exposure good in It's for terms And current Missouri. of stations political we about a adding us really more beyond us unparalleled in you our Pennsylvania. So the Quincy races last the out again, not had exception year. extremely if and being state rounding an portfolio of political Meredith of portfolio, Nevada, the which then, –

Hilton Howell

Kyle, this Hilton. is

think because what timing close, what an XXXX. then Quincy I Let exceptionally me just they Kevin Meredith of And both both for said. propitious in reinforce second, acquisitions is these first, but will

expensive ads. political was guess upon the comments, a most so XX-XX ubiquitous so state exciting senatorial Arizona – person whole new going of selling three gives of responsible closed the Nevada. literally, at, and our I to and for by to Georgia will was Raycom, by race. deal race races political seats. contentious certain, I really be this portfolio when in very, And do And be of we down think or really a to from divided deal our XXXX. this happiest we be mean, begun and I'm were us Alaska will alone which right And transformational And Florida, person or I new two from house dollars political immediately the to everywhere. some see leverage where have gubernatorial the Bob's our announcement echo, And all we're numbers, will paid both it with our is Senate. four coverage It's the for almost

that going has so doing be a you believe broadcasting a that what And Gray, better think footprint not company is believe do I a for and about to I lot professionals view our Television. any I XXXX do love than peers. not – gives true I political Gray

Kyle Evans

you. Thank

Operator

Thank you.

the is Please next Watts from Our Deutsche go of question from ahead. Aaron line Bank.

Aaron Watts

core or on. hear return A give If as first, the encouraging whole? your well? is questions, advertising Thanks turning corner. later the core will to improving Hi say I'm the fair hearing it's for having recovers you is levels, in of you to pre-pandemic correctly, that point? it visibility essentially commentary everyone. me And for to bookings in advertising as the Are take, on at look XXXX is this if year seeing at couple coming

Pat LaPlatney

question, close to year on on to getting first full make we're at point, tough second about but So quarter your the commentary optimistic this XXXX.

Bob big there's movement can not here, but the that earlier I'm toward chime think, placing in sure this for quarter. I

it I don't to is used being business think think the placed and things – changing that's than much. Correct, Bob? be, later really generally I

Bob Smith

it's Yes. a does right said, we're to some I now, would And optimistic. But tend that add Pat for placed than for time bit be as it had been. the historically quarter-by-quarter, most later now, part.

The it some second the quarter quarter looks solid. as inside business and continue, of placed before has that will every been But I for quarter the think first the month trend right time. in will be then

Hilton Howell

by is is I to everything personal fact that do largely couple chain advertising Let return slowed having we is economy healthy world double publicity to mean, about it's I that think very feeling – Aaron, well-documented demand. I My with Literally, in of not a digits, think production. things. being up the down the we problems. supply add me are a

ago, six production car can't And behind seven get mean, a you to in. don't a and going supplies, got of get know ordered in it's months. so that terms when I I in. still new I've automobiles are I by year those chip, and

not And think advertise hangover been that or so you're And I huge been you resistance. a to a but from rectified. it's there right? going sell, is is got ratified if mean, I to COVID-XX, nothing so

you're And so I think up a as ramp to opinion. gets aggressively. going I see more think personal that That's much settled, that just advertising

Aaron Watts

you actually those chain was you much supply auto, I ask help. to going of how think answered but of with you there demand question. because do that's is think the especially issues, No, I pent-up just

Hilton Howell

Yes.

about I to horizontally it's ship huge. got turned the Suez that And think think Canal. just the

fixed you, the long down Now and they because had it we in I'll a everything or worldwide but for could slowed minute there, of a kids would four – five over time. from send tell Chick-fil-A have that

is And average we so the and consumer. and I I really mean products exposed have a recently shipping weakness is has a the international And remarkable. that been dependence strength the just it to think that for quite all

Aaron Watts

thanks very Okay, much.

Operator

you. Thank

Cahall Our Steven next question is from Wells ahead. from Please Fargo. go

Steven Cahall

market. first, are Maybe comments on the what Thanks. private your just curious

been a competitor You've stations. for

processes. and Allen is been how looking much time, seller, out in in probably come competitive there capital investors recently seen think a You've time Media. And we've from sometimes there in certainly to I with most private wonder it broadcast,

sports Like kind how legal. it a like of in seems curious there for it where maybe then your And marketplace big very category and just can games So stations color private gambling in much a is areas or on is the like marketplace? in demand local public category. how really you multiples seems that around also it's the because betting for target differs it's political, becoming

the to think big you how So term? just that over category get could long wondering

Kevin Latek

a our transactions Stephen, transactions. the data an may to the The by market Quincy, of a structured, private transaction with certain before or, have what for acquisition auction finish Fargo larger know went it's one multiples an of But would the of number team. is, kind it's that data Quincy Quincy. view for that's that just be. was group interesting stations an give the was matter, We cross And see markets that can smaller others terms overall is Wells in were were we we know Kevin. competitive was line process. were there. to I Obviously, we of think Bank market on point we I applicable That TV a acceptable through with don't happy private All to or others here. may Investment conducted how transaction. there point. It way point be not the data

with began parties divestiture Our asking an than NDA. three for more process dozen

Some but of I signed an names conducted finish most – buyers We the owned I'd who over most parties – Byron larger would had there of say were the NDA or new were were private the a of tell few those, months and with of actually, can you, Again, you non-publicly auction almost Fargo private was – a with of that all entrants, those a name interested know, parties, it transaction. Wells couple an buyers. process the line the we Allen. crossed

we it So I data hard And cost a the if it XXX and XXX. want vary that XXX, can number high don't of to would on? Is competition low-cost answer. But on a buy or what Is the to a kinds a Is to a TV factors. that's So market Quincy from know just also it have business? Is so – all do remember the drives station, station little based that to legacy it's place performance mean, a business? that, it it a there's lot of me that for I place DMA points transaction. does super-competitive? just here number, and do

sense what's involved. which of private share that you not and from in possibly feel I the publicly. happening in a – we've shared better we're we can And some can don't Our hope get conversations everything multiples there. have I market are But

Steven Cahall

betting? sports And then Got it.

Bob Smith

Yes.

we're to the time, As betting, for this Bob it's sports positioned. story markets far some the big is be well our going especially in Smith, as

legalized a – those I think money. believe, right I now in XX we're the with seeing seeing of states, quite We're it's currently in states country, gambling. bit roughly,

big. quite was quarter First

Dakota, Second again significant, third a up, as certain legalize of kicks think calendar Louisiana, that Carolina. are to is it North they schedules. going bigger point fourth When Also it's that pretty quarter, you that we time. next even football quickly the next at though with markets, even from and rating the as South And and I to probably pretty the as see in into And year. spending well happens, appears a three those are know, the states soon get market in we'll betting sports really, up heavy positioned. lightest it, quarter standpoint extent

Steven Cahall

Thanks.

Operator

Thank you.

Our Barrington is Research. go ahead. Please next Goss question from Jim from

Jim Goss

Thanks. a I've got couple.

very positive. in big the Just like political state increased of one for dollars with position. on I'm further coverage in in political situation. of imagine, great terms does the in well? there stations, the ad It greater within dollars, sound curious Is a thing you're viewers a I competition is this additional any of terms influences the difference markets that both as any acquiring you're including larger and the a

Pat LaPlatney

take It's I'll Pat. one. that Yes.

markets. the general, think they're we're I more markets, the will and more larger lot there's In about So to in, really coming dollars concerned Because competition if are be in significant. bigger. coming you stations. is going be Atlanta There's additions larger think about online, There's there's will television some to dollars and there what dollars those of But there. Phoenix. going that be out are be a of money

Bob Smith

footprint, footprint, Charlotte, current had too, fact, in XXXX, own our very a competitive of a record-setting enormous an amount and amount of money in add, XXXX. just would money, in in market, I

Jim Goss

Okay.

that broadcast thing, to sort of at gone viewing your as back to Another ago you've of the has I'm normalized you Or it the in presence state? felt properties? a usage viewing? you of if do you year a to develop down share of held see more fair made evolution, pandemic began bit a the wondering Have its sense – incremental

Pat LaPlatney

and And or television for It's provide digital locally, reality the dropped true, a by little. to have people. numbers was normal that yes, But levels. service rediscovered in both – I They returned think lot on elevated, a was both of discovered the the is the of unfortunate first benefit And but pandemic local linear. we of time more that's did pop. the because the

Jim Goss

and Okay. its Gray's advantageous retrans And fees? with both that positioning so programming the the Meredith Last both to relative day the thing, other Meredith, for acquisition. uplift positive? for negotiate ability were same you situations the to Is noted

Kevin Latek

synergy on retransmission the talked we Jim, number. So net a with is Meredith about number

keep a factored until our up group, acquire the affiliation station any with already for course. in or we've ordinary in Those station the So assumed of And they fees. that were we agreements. a acquisitions, network existing when in come affiliation renewal network the we mind inherit

Jim Goss

Okay. John for from All Thank Operator one The next you. right, thank clarifying you. from Media. that. is JK Thanks Kornreich

is line open. Your

John Kornreich

I $X XX% morning. gross why year, projection understand line, expense the XX%? Good I if XX% come this in believe, retrans network expense couple retrans top Are up retrans high? should to Jim, but to a had as contract said escalators be XX% that billion affiliate questions. of A years, XX%. three is should you you haven't up which the up or be for to up a XX% more, that

Jim Ryan

year network up. going agreement, a is Each retrans to your of go

John Kornreich

digits? double By

Jim Ryan

it little And up. but a rising on And sides both it's varies rate of bit market year-to-year, a goes equation. the it

go continues up reverse growth So as up, going to has been as well.

Kevin Latek

also, percentage typically and John, let have networks John, me year. – fee up a Two let add. that also And every percentage Kevin, sorry, the of basis, me add ratchets

percentage share retrans, just an of those as were they're not our or So we're the they networks, network taking our they're increased outside the over growth amount share taking of that an that affiliates taking, increased gross grows taking for previously. they

John Kornreich

Okay.

– better question, yesterday, who industry? I four why just your think One down trending Now Fox is, points decline I subs than I more about said still feeling your like, the other Fox they're X%. it mean, X, understand. was than Kevin. What's

Kevin Latek

that is was is the our and judgment. very significant speculation – year. Again, that sub Part our virtual this throughout growth last of

we saw that year-end we numbers So about. with talked the

of Some to YouTube markets last years. TV two were TV of because Gray came only the in some the Hulu – that is and

couple of that YouTube reached subscribed the last space. they finally, they Broadband were have, the satellite So and Broadband if in by of haven't a significant to satellite, have to if people even we're deployed, then they saturation broadband. their to the more lot were losses we perhaps some in some overexposure by portfolio reached to were the the some in markets. they've broadband MVPDs. for the competitors of earlier. – which actual and is more years, market TV, have and been given sub of uptake, not cable hit rural makes the and our right, and seeing satellite a to the and And have markets, until this, operate. which quite we given We took seems smaller in we more We hits they markets see some even others, those markets, they hit markets, expanding, some Hulu from the in be numbers original stations continue – in

still there's subscribers, the other did. some pain before we kind with while that challenges And of of people satellite real some so took

now just So are is it from they us for pronounced of are are hits may be some than those saw earlier. in already big satellite, because of these – again, more we speculation, maybe larger that hits a this it the some markets

John Kornreich

Okay.

help. Sounds thanks for reasonable. It's a your explanation, good

Kevin Latek

Sure, thank you sir.

Operator

The next Alan from you. one is Thank Loop from Gould Capital.

Alan Gould

Thank got two you. I've questions.

the either you advertising, big have markets. core big, on don't First, many,

advertising of markets? terms in country various the across in variability much your seeing coming back you are So

Pat LaPlatney

Pretty really. consistent. Not

Alan Gould

I Okay. like generate to – your And term free bridge what short-term about know half bridge directed on the forward? variable I lock-in would Meredith rates? given all loan. roughly loan, more thoughts on the want more Do your versus mean, cash you that you year, one you fixed half debt flow for the variable? going rate deal, do Or think Jim, it's it second that you fixed to keep to you with the to should political are

Jim Ryan

commitment mean, call, I talked Monday little we as there. a Well, on is our bit the

we and closer decisions some structure we'll going that make we market will to year, this date the this get of year, going final on at later later closing be and point. dependent the is to market conditions As to be mix a

you balanced it approach if a pretty had at between historically, look as won't far too reasonably stay and from move balanced floating. think forward. we we've I approach we a away fixed probably And

what from, Now to again, time terms. in markets on the we've or time, offer opportunistic to are also willing more been market depending favorable markets

be opportunistic to we get day. – opportunities going our to certainly evaluating we're closer we get as any So to marketing

Alan Gould

rate just right are now? you Jim, could roughly your rate I on What if floating follow-up. paying debt

Jim Ryan

tranche LIBOR LIBOR tranche the $X.XX on and $X.XX. the older highest is price

Alan Gould

Okay. Thank you.

Operator

Please ahead. next Kupinski The Markets. go from one is you. NOBLE Thank Capital Michael from

Michael Kupinski

in revenue be the the us and questions. for opportunity? standard, are last in of there. what Kevin, from call, you this Thank you might you, for about some different new how the for And should a And the that I broadcast and plan I appreciate opportunity In you the industry. opportunity seeing you this How the standard? have have of it, here? schedule new growth new And revenues things of the use asked the in terms the do services been might taking outlined thanks new that and for we the question think upgrades broadcasters about explored talking terms opportunity to station revenue about fact types your broadcast

Pat LaPlatney

It's still a into And way, difficult will there's but number it's the more of So in pipe standard Pat, the features data – size before, thanks to cars. by question. targeted a you've to this the that become advertising, it's a do the little still opportunity. – has X.X allow for of stations essentially heard terms

we while so strongly at throw the investment size good the can't but And I in can't that and future. numbers And today, industry today, feel candidly, a you. it's we company's it –

Michael Kupinski

just end end give plan out, a by many And say, upgrade of – of you can that it year? us how expensive have rolled next of of all? how year, what in how the cycle, of stations And first – secondly, sense the terms do is, let's you to

Pat LaPlatney

Yes.

station. So it the each market technical varies configuration and at by

accelerate And just will once end Meredith this as the So week, Gray again, with the year, in portfolio, a think – by we three closes, looking markets. of the were it Kevin mentioned little. earlier I mean, that I acquisition at of rate the current

more than in significantly XXXX. be there'll So XXXX launches

Michael Kupinski

you. Okay, thank it. Appreciate

Operator

[Operator Instructions]

Hilton Howell

much, everybody We next Well, we your here appreciate you We call I thank will right. before. support, and and thank morning. if to All your talk want this joined not appreciate time. operator, so for us quarter, has this that

Operator

call. This concludes participating. Thank conference you for today’s

disconnect. now great may day. a Have You

Gray Television (GTN) 8 May 212021 Q1 Earnings call transcript