GTN - Earnings call transcript Q4 2021

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Operator

00:04 Ladies and gentlemen, thank you for standing by and welcome to the Gray Television Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] 00:29 I would now like to hand the conference over to your speaker, Hilton Howell. Thank you. Please go ahead sir.

Hilton Howell

Rebecca. you, Thank XX:XX everyone. morning, Good

Smith. today, our Ryan; Chief operator and joining Howell, Chairman Latek; Financial Co-CEO, With am fourth officers, Chief Gray's our our President our and mentioned, of Gray Development Chief I and Operating me XX:XX CEO call. for LaPlatney; XXXX Hilton usual, Television. Officer, are quarter executive and our the Bob Pat earnings As Jim as Legal Thank our Kevin Officer, you Officer,

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

Kevin Latek

Thank morning, XX:XX source everyone. uses its website you, information. address company key a Gray Hilton, and www.gray.tv. is good website of The as

report later will our annual with XX-K today. on We SEC the file Form

are historical cash file We SEC, XXXX things, operating broadcast a non-GAAP uncertainties. flow, differ well website flow, in XX:XX XXXX, of a financial certain measures call from could earnings results years provided regarding, cash Certain Form of Included release, subject and company supplements are EBITDA no as implied maybe metrics are including measurements, GAAP of and forward-looking as statements. statements. the flow, free ratios. may recent assist our forth also most in as results. or in Form a in the their on reports through broadcast information. other our set our matters GAAP of financial the XXXX the investor on Included valuation update include will our expressed combined on corporate reconciliations public future Hilton. and in Those the XX-K result cash measures of will flow to our release. for in These call Actual number to particular replace the any in these presentation, basis reported and adjusted future factors Annual non-GAAP which not that new our statements leverage furnishing expenses, other the in are as cash but the analysis as in today meant XX:XX less recent to our the operating statements undertakes statements and The financial X-K company. include among those as well filed forward-looking results and obligation on risks results various financial we measures company's forward-looking discussed the now to to our with Report to a important most turn have call And been XX:XX discussion earnings

Hilton Howell

Kevin. you, Thank XX:XX

know reported results quarter, free the Flow excellent per comments revenue, fully would revenue stockholders fourth the our broadcast have net of do Excluding our for future. result that company’s related to their today introduction markets as today fourth from to transaction portfolio nation our what advertising like use non-political XXX what due coming we with of in of cash stations, local markets stations XX eight share or television today in booming Gray this $XXX are Overall, the earnings who the income This flow and related announced close still XXX strong rest, Number also morning of Number EBITDA total usual fourth reduced coming to XXX of and what that $X.XX an year not XX:XX so Our adjusted second in virtually includes common income station portfolio you last to ranked to As way that numbers our fourth as combined By our Broadcast stockholders in includes the Transaction in attributable XX been situation on those the or XX:XX to earnings for the quarter the new GAAP, with results markets release XXXX. release political new to a new our well according you has portfolio, basis. diluted Obviously, us, confirms strong stock and including as approximately Significantly, a and largest at remarkable was all best-in-class. or fourth net and years. attributable ad have importantly combined cyclical more to $XX so a is the XX:XX have. million here will million Television acquisitions simply the reduction X. Ukraine of a and of financial all on our expenses quarter with Russia’s consequences in company the grown that are multimedia a XX in of Meredith know, XX compensation, our expected revenues million X We XX:XX Media your share and share expenses results sanctions of services non-cash about have XXXX we that execution may with million. historical million. is $X.XX has quarter actions and businesses million, remains and on fluid impacts the businesses XX:XX million, to production as per our and common Cash been been our the of our of quarter. truly Quincy Group in XXX Local views a our presents

company figures begin combined XXXX XXXX with effect revenue firing our On ahead, Gray all on revenue latter as a this million to acquisitions $X.X has our full-year historical was new and we dispositions. fourth year are billion. Looking cylinders. the both and thrilled quarter basis, the giving that become XXX XX:XX was we With

very in our with terms a expecting hear will of first very acquired fully, Jim growing integration good our about You're color promise on healthy political the the great our revenues, both XX:XX quarter recently revenue to forecast. of stations, Television. our more guidance, television more ad and core NextGen and business, In and on address we're which retransmission current

increase first quarter anticipate X% of over first Our to we guidance. total revenue X% a of presidential today the historical ad the for to combined in in XX:XX X% to increase our and also a XXXX, quarter XXXX, guidance a X% revenue political campaign full-year XXXX change a year. revenue big includes a total on Specifically, basis,

$XXX by This a today revenue XXXX behind are XXXX the quarters revenue we from announced ahead. to we LaPlatney. of political our that good of the and lots Pat will Co-CEO, increase of $XXX first news combined with November and XX:XX target approximately in the whopping call achieved we have increasing on much over our Specifically, our last We XX:XX earnings XX% color a guide us begin million political therefore $XXX $XXX the million mid-term million today. on So, XX% the million year represents and share historical on quarter XXXX. basis of election President to new

Pat LaPlatney

we've growth determining In Peachtree new implementing TV, programming sales, digital, Monica we two Mike stations, industry, XX:XX less all internal Peachtree promotion. Just at to long all stories expanding colleagues to owned Atlanta and Atlanta, former which across for nearly Meredith new in [personnel Atlanta XX:XX two In for and philosophy our for new other quite have felt Quincy former announced both our the to and its great first next foundation Admittedly, We're Broadcasters talent news joined XX:XX integration and begins of while relative we of to and local markets. the station conducted Two areas in-person across to Thank and and that a and or likely in Hilton Media, the stations into ago, General the in month TV broadcasters months and the We than because after resources adding position this CBSXX XXXX One acquired celebrities XX:XX much and month. announced affiliated of sales at Foundation carried in their industry. itself. of higher anchor need. was gathering enable of greatest integrating news Golden you, news, which same mark of We manager made and we've has the of very the XX:XX just similar marketing, marketing, already the a closing, this of first completed week, [indiscernible] this more news, Golden adding of radio every revenue Peachtree two their Kaufman XX:XX fabric CBSXX integration the operation. identifying legendary the the TV these profitability Telemundo work We're the new a a that we with degree] markets. now all CBSXX other example, improvements has the stations’ Meredith [ph]. mission executives that news Hilton. up acquire Quincy began Meredith We all systems the some in bottoms appreciate America, very we've that of We're tactics days. the markets research in the years. will and Atlanta the I'd Stations we market like the journalist weeks more on close for seeing are than agreed cast with nearly six we immediately and yet begin week, week, ran candidate. foundations Quincy out reporting station. them and after telephone Pearson There Manager large behalf and television XX will event we to presented plans XX:XX creation When Meredith Last by the was of Gray. began a excellent across host own breeze local value to in investment stations expand and Meredith, from improvement. strategies over and microphone, experienced stations, to an announced opportunities rebranding the to we managers our efforts. key one XX:XX be benefit helping have Award acknowledging shows, we progress fundraiser the active [indiscernible]. at Howell The here acquisition

our news every opportunities cover more new elections believe deliver provide easily new to audiences size standpoint, and now opportunities in nearly from our market and scale nearly a step to for taking presence we back, efficiently state political in that coverage XX:XX Now, our regional competitive doors clusters every exciting as similar Certainly us. opened we a XX:XX delivery time, coverage provides cover – and new news We've campaigns. These we homes statewide to states, sports, me, ad rated and and wide stations. very wait of and punch footprint there events, audience news, can far above leverage our we bit believe television are a is new of TV tap. revenue been highly streams our U.S. we state pardon extensive that limited, over sales opportunities exploring to events and While sports wide

and partner a closing for distribution should attractive the programming to decide competitive we we to solid of unique side an such on provides broadcasting front, scale local that. as York compare On home News our visitors virtually digital programming, XX:XX makes us platforms, do competitors our of are on our foundation times, with the our On in per XXX million which metric. our the and month national New in Yahoo We News. is Fox all brands favorably this business,

and a this larger increase from to XXXX, continue Charlotte. national our we standard. footprint will markets, to we more Smith in broadcasting see TV industry. Television industries address Bob NextGen stations, the sell and TV continue acquisition infrastructure on anticipate footprint. across of total will efforts expands. the sales. roughly end about or group represents the will XX footprint XX:XX progress markets We the At models standard TV, could standard. opportunities television make had including next Oregon, ground the a the Finally, of up, operations building in has of XX XXXX now with the NextGen stations digital of XX:XX and currently other Gray markets believe of million U.S. ending households new revenue station NextGen our TV much year and which driver we broadcasting Gray Next XX% throughout Phoenix, the XX% Atlanta, audience equates a This with than number This the bit as Households, the XX significantly of more the for about that XX:XX operating will up, number on out to business Meanwhile, Meredith’s Gray Portland, big the but

Bob Smith

Pat. you, Thank XX:XX

stations On in operations basis, remember. the now can station probably television in the television includes equal of our Our fourth overall that which fourth with the exception by the results every Overall, us revenue. historical the the Gray, I again quarter fourth category. best condition all prior a auto expected, combined over owned category for more core year, XX:XX revenue our to gambling of the quarter and Interestingly quarter As business XXXX core fourth XXXX category, of was our by fourth core million displacement. fifth largest our of posted notable higher was in quarter solid was revenue XXX XX% period. the category, both with XXXX, quarter political which exception substantial In COVID precisely the depressed advertising impacts category. XXXX and auto now the XX:XX gaming ad year other gains included strong the over our than which and companies entertainment doubled was is are

For the decline XXth we of separated size a formal quarter used. gambling ad the quarter of between advertising, Gray the beginning among a category XX:XX in gaming XXXX growth XXXX. fourth In fourth XXXX category businesses of new perspective, the and that significant in entertainment overcame the and has core was XXXX. quarter from in light fourth of audit customers Our categories increases to other of XX those revenue in in in category gaming

our Just XX% of years about was a total ad revenue couple revenue. of non-political ago, ad

For travel as full-year declined at base, on those recently XX:XX XX% particularly and and tourism. category grown have revenues our pace. and about XXXX, Legal revenue, ad we diversified home the improvement focused of successfully ad and total auto non-political health healthy a also comprised

increasing still longer is XX:XX our And diversification our is one. and no really to a As political all The auto auto million our a to news full-year go, from XXXX are will [in number While station category, on it better] XXX runway as has minute back [ph]. we it's that big advertising. XXX million. a announced When side shown, Hilton the thing. good returns is top political

fall of initially battleground safe includes the after places. in highlights. immense competitive is also Our The decision of guidance Gray generating that state. everybody's to are interest, – to Georgia, footprint, campaigns activity we refineries] in our are Arizona, quickly some than includes and, our is seem advertising races for of and a radar [party have This us as financial the all number increasingly Such raise the activity weeks XX:XX with are been timing incident the guidance number records fundraising company the Wisconsin, across time. by Nevada, Missouri, XX% seeing engagement on expense. levels media aggressive every [ph] political phase surprising weather It actually largest a or

safe Senate, May of XXXX. Governor Alabama, U.S. until which meaningful the So, are primary For both example, spending not in is in ad XX:XX for and start December last year.

revenue January. advertising television as is As Senate XX. of For station experiences where leading Nebraska this A the election. ad XX:XX Birmingham, covers revenue we November’s over directed the developments call significant the spending months story past to XX:XX playing Gray stations million. television Like [indiscernible]. a many remarks as XXX over guidance May on Huntsville, justify XXXX combined of isn't These began the in market million last one a to reminder, of represents XX% repeating the revenue that now XX, Their of for primary, in market Alabama political combined Hilton’s December that out new states, likewise which serving is and similar total well general every every that about takes Georgia in is turn including I historical own political the XXX our see in rigs June mid-term spending Illinois, Equally represents the will Kevin. in Montgomery XX:XX stations ad runoff figure on top an political a place year. until full-year XXXX. state, begin impressive local The similar XX:XX and at of worth the historical the the basis. top owns XX% primary ranked That we in from political Nebraska over in political increase in Presidential nearly state. campaigns the in in the which XXX the and three in notable target increase million the opening year

Kevin Latek

XX:XX Thank you, Bob.

news have retransmission on to report revenues. also We good today

XXXX. fees XXXX of few affiliation in in As full networks contract we metrics. posted $XXX data year slowed. million our experienced quarter full-year earlier grew the to fee in an which is previously see provided other retransmission On years we combined over the know, Gray, the our period. reverse also both revenue. and historical the financial Meredith fourth million terms network CBS grow next as increased slowdown years. payments own transparency is the basis, $XXX release of that XX:XX Importantly, the NFL. in basis provide the to period XXXX As in fourth you have compensation we our On will prepared networks Quincy XXXX, a of growth has affiliation we continued we because that term through retrans the paid in combined and a This past from large retrans with a with five ago basis, in grow as their net revenues fees combined in of in networks. XX% over In on progress growth network disclosed in earlier you morning, XX:XX retransmission. earnings our strong We step-ups a to GAAP new historical that historical the network our a the from basis, expect four we the for net XX:XX retrans renewals years continue this amount revenues approximately today; increased you year this release our quarter saw XX% revenues XX% increase to retrans our for On

retransmission counts stations quarter third by subscriber counts these Gray in XX:XX XXXX appear the group these in compare the total the TV Four we year. large the a we pay would reason mix and we stations for to different that stations the in legacy affiliation Over Big full no the subscriber for the pay subscriber our Looking the for small to than time have ahead, of reports fairly less next do this the of X% market Quincy set the have of We stations, over FOX owned of our and of reports levels and subscriber Our than will that stations television third our for have stable stations XX:XX renew reports experienced Big this of of significantly quarter what renew to And total this of end believe same of decline be While Four recently subscribers. period, will Meredith agreements acquired MVPD a same later year. not experienced XX:XX at over XXXX. period. linear the reprice we agreements TV year. remained market

Given again, billion mid-single-digit our these that Jim will XXXX and covering in we of rolling the counts in growth concludes XX:XX remain of million, agreements anticipate a be of $XXX the my to figure our will all began Four and Big $X.X retrans about renewals year's in neighborhood new this good timing assuming remarks, I at to one-fifth now XX:XX with should revenues continue turn historical retransmission increase retransmission retrans forward. percentage momentum gross call net Ryan. We This basis. XX:XX that for retransmission on net combined XXXX subscribers, XXXX's allow which net And over the sub of XXXX. revenues stable, that a

Jim Ryan

morning, XX:XX Thank you, everyone. Good Kevin.

provide and earlier, be XX-K XX-K the great of detailed later mentioned The a deal filing release we As today. financial information. will our

information, reported date updating both data and combined As basis, information this local income and to XXXX deck our Gray I earlier, operating XXXX sector. national transparent December also historical in by most our select XXXX. through mentioned from revenues company the XX:XX QX for investor will be with financial segregate longer as and being the providing we also will advertising revenue Beginning are no year in presenting, believe advertising quarter XXXX, by we statements. our in

distinction, Gray’s client. who that television regional relevant and The sell revenue national virtually XXXX. appears through local earnings advertising late and on all in at stations own has other location revenue the national historical be for we you and national national As release, however, combined Gray, sell on sell XX:XX to Since broadcast published historical today, local companies information we distinction and our sales maintained regardless least versus force. we'll may rep XXXX, or retire going employees platforms, their the its our versus our being local of distinction ad core own later for see sales physical will simply ads today, agency XX:XX QX outlived advertising digital So, the XX-K local of will all that forward results. report the usefulness and distinction and have beginning

all as set quarter very our key and keep of of internal We the the such, you've some remarks I'll a Tuesday. Bob, Kevin, XX:XX covered with I'll have our pacings Hilton, data. guidance. complete the highlights short. of forecast as So, brief Pat, my got good the QX begin finalized based comments the full-year, rest of in guidance on and and developed

recent events in first We what revenue over we that our demonstrates are this improvement to we full-year of guidance pacing are revenue that to on move XXXX. makes approximately me Total approximately services combines and the current if with the year in predict anticipated XXXX. to is exceed million historical $X services in or million business super key We for war In increase X% QX core data This revenue. continuing in-light our everyone Ukraine, and the now and date sequential anticipate our anticipate increase to our XX contribute total not unable represents one results. is fact, more have XX:XX although about anticipated revenue, the in for continuing any remind dollar bowl QX group, beyond. revenue XXXX core weakness we Europe combined expected combined volume and quarter is XXXX XX% the us revenue. historical of The legal, pacing Let and XX:XX group gaming to core upper of financial, improvement you which medical, as optimistic in may impact adjusting QX currently recap to that not may million in advertising. continuing certain and contribute XXXX The of to QX I'll XX:XX simply our in growth time though Winter are $XX than to QX offsetting XX:XX on mid is will showing to XXXX. a metrics approximately teens point full-year results. remind rest the basis is final auto percentage Olympics advertising the increases in through reflect

Our combined X.XX historical basis, is net revenue billion.

XXXX two-year X.XX combined blended XXXX Our X.XX billion. is average historical net Our cash revenue operating XX:XX flow billion. is

eight last cash free was average Our combined blended historical million. XX/XX/XXXX and average free operating of XXXX XXX cash quarter our XXX XXXX cash is million, as billion. flow was X.XXX

XXX in will full-year if To placed part our investments, state before exceeds amortization Our and time, exceed currently comments the million, dividends XX:XX our uses that our assembly expenditures common few XX uses XXXX. XXXX in our currently acquisition. loan expect for that Meredith new we in approximately increase. costs of political leverage free Cash deal cash end have full-year material our We we million, X.XXx. XXX dividends the A on and cash cash estimate of million, the XXX of was free million ratio, forecast interest the following At term XX:XX capital free taxes construction XXXX. at cash will required cash of cash expense we anticipate $XXX routine this are of XXXX. of current million acquisitions, preferred revenue XXX on and million, fifteen million, this of as obvious,

successful back XXXX We I starting are year. now very look well-positioned forward to Hilton. to XX:XX the a will and call very turn

Hilton Howell

Jim. you, Thank XX:XX

to would and to our questions, capital Board Gray’s strategy. of the cash voted for Directors the equity had of this that ago had like shareholders. on year for to our ending up quarterly honor a our One moment line regular Before I dividend allocation resume unanimously I opening take call today, announcing address

Our stock months year our not was representing with and keep While mind be quarterly in net then anticipated just on Meredith capital million we did reducing of that very equity to and remains naturally de-lever Gray leverage XX:XX annual to higher ratio. political today two our a with Group as opportunistic later. XXX leverage the that much committed Local as board buybacks. nine free that shareholders dividend and time pursuing acquiring cash fully certainly flow Media at please one well our would through quickly our cycle, in realize XXX half that million In Gray north will every regard, turn returning strong

We a down our to as bring course, our position short XX:XX fairly leverage a flow lower, free cash Xs strong time. are our in leverage in of this period Of drives for the automatically, deleveraging our remain and prospects employees share at to and directly transfers economic excited stakeholders. its closing, I owners. In equity ever XX:XX Gray’s and as value its for optimistic as into

broadcast of group need we open Our in the nation's at Operator, XX:XX that largest media remains will one business the the is the this is strong, for we to questions. our world. and tools prospects are bright. Gray second and has time, the companies ensure finest line people

Operator

Dan question And Company. comes Instructions] first your of [Operator XX:XX Kurnos line from with Benchmark the

Dan Kurnos

XX:XX Thanks. morning. Good Great.

the guide? QX Jim, Just in assumed synergy housekeeping for the quick expectations are what

Jim Ryan

synergies million. Our – see and Quincy Meredith were, for that. about still We're for target XX:XX low XX let's combined on

and actively We're the the months. working the as national overhead, achieved in by on month-by-month by those been with A course our transactions firm automatic since and national we've synergies acquisition. month that. combined well of the that XX:XX includes we'll of things. corporate synergy achieved XX of was the both and well, have been corporate have in guidance over the months already, achieved first in extent canceling as the agreements obviously, fair the rep Our phase are in savings Some savings XX retrans already already synergy amount both two rep month obviously over first overhead will flow

Dan Kurnos

expect scale, network about then to I you it. question been at couple you guess, Jim. is side CBS see XX:XX networks given think see go your side? you you just that, you're that, towards Thank continued increased I do slowing have footprint, you retrans of color and would there, pacing That's Got benefits still or now? guys on I the in see to your I XX/XX guide, guess do growth gave me. remarks full-year how reverse way and on a paramount for you mean, now. the argue from subs. Obviously, move Kevin, leverage and anticipate or given and the kind the additional the more And Thanks. still some should really XX-year do given you probably you long anticipate helpful how that floating did where and negotiating commentary which to versus, I fairly side, And historically is, fixed right slowing, a the you've the that some gross marketplace fixed? there's Do more you and impressive

Kevin Latek

in Taking our order, we view that nothing are XX:XX grossly changed undercompensated. has reverse

XX:XX we change of the four we're their the In many any planning we in all terms that groups. we pull many, their and they've networks, first the method ratings comp now value deliver across into deliver a affiliate of packages. calculated any for by the and On to eyeballs which subscription given aware distributor of question, reverse not years

the anybody to of love approach. changing I'd not we've changing, that's say something their know hear networks any about heard are you if but it, So, that

Dan Kurnos

given to margins those retrans going now? And not forward stable, I maybe better argue net than at that would mean clear, it's XX:XX just that Kevin, be dynamics least that are

Kevin Latek

next retrans to XX:XX several years. net We think grow the continue over the do will

much the have not and what terms XX:XX $XX to of yes. think if from we had that’s to is $XX book on we conversations, from net bank XXX% margins. you're on which the Gross focus not million, about is as not we you're to focused growth increases, margins be put, how know XXX% should as and in trends, at should reverse – But concerned about as – don't a margin, I great of we're us result to in year, going gross something talked there be you of than Overall just all. less million right. in matters would of something we're this year, should million you X.X put growing, higher the prior billion since last retrans We went keeping XXX margins

Dan Kurnos

clarity helpful the Understood dynamics. the understand you Jim everyone. thanks just and Kevin, XX:XX thanks it. for Thank Appreciate and but to

Jim Ryan

Thanks Yeah. Dan. XX:XX

Operator

line next the from Your Bank. with of XX:XX Watts Deutsche question Aaron comes

Aaron Watts

having for couple on. me. Thanks questions A everyone, Hey, of XX:XX me for

gaming been – as pulling being On of in it’s the comments great it's top as local you, think amount that back moved you into spend, the and a the around category you well the for stations betting do for how and some companies of translates on hear going terms forward? your your going that forward, on some with of media I side, others spent your category, level from sports of a one

Bob Smith

is This XX:XX take Bob can that. Smith, I

pie in think I on in of the a obviously in stations share big our states, budgets to budgets we our we're our expect they're current for on this areas. among we’re to and ad continue local these getting the that some really time year in states some ad into. of those we're continuing see the states of certainly the big dominance new in throughout with pretty markets was And level, most and big going

and to of healthy bit be a quite very expect we so, for this the future. continue And

Aaron Watts

that anytime the XX:XX now really that's a contract to Okay, of with great. been your in your there'll partners know already still networks And parts to your part of we for where because reverse those comments compensation new Kevin, for expect next moving baked negotiation, should or big take, your them years that? I of of are sure and just lot check step-up give in contract? as NFL to more on payments increases but your pay largely affiliate with you networks, in the saying or for partners place be a make that to there's that a XX here. Have you then going negotiate into sanity the

Kevin Latek

paying was, Quincy point included couple what believe XX:XX preparation gross have think I fees reverse the and That stops network well until Meredith My NFL. spinning. as ago you years And year. I fees the will our was, in single the think we for up year up every that we world of assume a the retrans can a go step-up continue to company comp every been the will go that networks. big from

should be go but year-over-year to historically. up, expect as those continue not we great had We increases as to

Aaron Watts

XX:XX Okay.

allocation I is for year aim reduction the one me, capital and I’ll last business the material And to on this a off you. Thank one, Jim, it. follow-up think grow Got leverage this on appreciate Okay. and goals, I a you that at set we'll throw of amount cash.

leverage I debt significant economic that standpoint? potential that EBITDA help a leverage could gross Meredith over pay debt a think the growth? with medium-term down you part you. having lower And be obviously that concern alongside the slowdown about of so ask acquisition, of gross an horizon, balance, from bringing Thank will the down As following

Jim Ryan

to operating it's as say we more think post the flow reduction absolute some of both, I'll growth cash combination than roughly – the because trends, I the I is going but for probably XXXX in just that as of outright remind is XX:XX back be year not that you to shows weighted we do be if go it entire everybody [indiscernible] based the cash number it November. debt the also will of saw as quarter. number, means likely in to half well, the holds some trend reduction debt on with dovetail organic degree outright would XX:XX up political that that about very rich year. the through political, in a So, fourth historical

absolute a debt be reducing be think would balances. I So, would time to good that

Aaron Watts

always. Appreciate Okay. XX:XX time the as

Kevin Latek

XX:XX Thank you, Aaron.

Operator

next Goss the Your line Research. question Jim of with Barrington comes from XX:XX

Jim Goss

a possible other such be cap, want recognizing you narrows to XX:XX two M&A think any do thrust likely number couple one, that Given that involve think positioning markets in opportunities existing up to the of trading might you you you're markets enter? more there or when would might close existing

Jim Ryan

on short or XX:XX the is, last. it’s two. market Well, Jim, the really there's year nothing the answer – we been in think the

the to new a looking it. and to just to and mind people strong happy with do Meredith have. integrating we'll our they sell. market trying to trying into other along, a market We don't We're not a otherwise two in the a things, with convince any our to at will the and anticipate convince this looking comes We've folks opportunities at XX:XX If operations never go and if up meet focused of day-to-day things, have. look actively trade got happen stations out Happy to or deals some really something of to on pretty stations. criteria take people we we We're deals, couple point. again acquisition sell you will. had other those then number at or but We one were number

desire not really So, XX:XX we is there not also as don't a can Overall, really we likely. see but to much. that is what do very really the X% do,

As It's our allocation in Hilton will strategy pay portfolio the capital we've largest to call, the the which country. down, value that said shareholders equity It our great got highest the on debt second to transfer has is a quality. portfolio.

we've So, enough what to feel accomplish we we got scale need.

great are along, at it, actively look stuff we’ll of just right Something comes at any M&A kind we out but look now. not

Jim Goss

service premium that I taking – the relationship for announcement, but or wouldn't XX:XX it? an Okay. at with presume change expectations And that Thanks. would all,

Bob Smith

think Yes, I it's anything change going XX:XX to Jim. don't

Jim Goss

as X.X, potential? I was are opportunities last with NextGen this is, create ideas far been up there to with you ATSC TV, out try the revenue Okay. how to thing so coming you’ve any of wondering XX:XX And might

Bob Smith

are little Yes. then no bits tell conversations pretty I you in more sales. to chip that going manufacturers that that been for and for with building I deliver using of you've before, mean, there's with doubt, so, the lot been is XX:XX and locally. spectrum I to The momentum healthy And on some mean, dialogue ad automotive have progressing. use accelerating. it's more models but with it, heard as build there's out longer-term, you a there. XX:XX a for I Sure. time would targeted there's wonderful conversations years would CDNs, technology still those now, So, tell are The set the manufacturers a

Jim Goss

XX:XX Okay. interesting. That's

Lastly, any did as the the when in you given information world turbulence world, might stop insight spinning? have the Kevin, to

Kevin Latek

be my XX:XX Jim. I lifetime. won't in

Jim Goss

Thanks for Okay. that. XX:XX

Operator

with XX:XX Markets. Capital question Your comes the NOBLE of next Michael from Kupinski line

Michael Kupinski

had auto XX:XX and obviously, combined balance going want of about outlook you can just is, vehicles be One on where strong And percent you of even rebound here. kind levels? and to the a feel that for wondering is without auto advertising basis, as tell as the a this and then can new you have on was you to launched? of views about a are if thoughts year how I about issues of me help taking so Thank give XXXX category a and of you the if you questions. if that I advertising such maybe forth us touch with couple to your XXXX the throughout

Kevin Latek

Mike. can I Yeah. XX:XX with start that

XXXX… So,

Jim Ryan

me. XX:XX of it don't Mike, front Yeah, XXXX by XX%. XXXX could have you I core about comparisons about I tell is, in XXXX and was to XX% comparison, was what immediately was of [indiscernible] in revenue,

Kevin Latek

know to spent the towards better, mid-year talking, then, going thought going come you the fully of but And not do not get come we of would that it end able that a it. a forward, doing had successful off it us. then define been With how in look got pointed we've XXXX, may for And I'm year, because those we've and We XXXX. a gap moving years initiatives until XX:XX around right? other back but paying number out, said, believe categories. you and you back XX:XX it's been fully then and with fully, end we've the that had think by and I initiatives of candidly, reason this, we've on and now those focused and categories for fill few to it’s We've we've sure

you when have come And back, auto know, will to we’re auto a but So, comes business. very solid going back.

timing wish would progressively QX. That be I give in could, So, get better the can't beginning to I but guess. it's best I I you exactly, think my got

Michael Kupinski

you view the investments and if was upgrades and on or mentioned NextGen maintenance return that of TV of, forth a XXX of NextGen And TV upgrade of cost to just because that upgrade just million, CapEx type I maintenance wondering Jim, more so then, expect do that does, does you. part NextGen? it you in through to XX:XX Got you include terms going your you're of is primarily a there a as equipment replacement the

Jim Ryan

think we what need additional include would we in NextGen add XXX XXXX. the Then XX:XX to

It's of day the necessarily one obviously is out kind taking return not least. we business how probably one, decades a Because kind us look of it. really operations at just couple next So, the is at ongoing year of hurdle. NextGen

is and new So, move we pat already the some not Probably the definitely as really XX:XX there some but through there. us as Kevin and nice entire next sector. both opportunities I think in few think XXXX, that years, we said, in revenue revenue expect untapped

Michael Kupinski

you. All you guys. right. That's Thank all Got have. XX:XX I

Kevin Latek

you. Thank XX:XX

Operator

with comes [Operator Your Cahall XX:XX from next Steven Fargo. Wells question Instructions]

Steven Cahall

core XX:XX we like the maybe auto half think if of does sounds modeling in year Thanks. should curious just probably it about the how Pat, it recover, could.

season we'll then a inventory. out there's we crowding elections, core So, the the mid-term will and some sports as model it have be those ad auto, of normally,

So, based just curious, on us think seeing yeah, about that how you want you're to today? what

Pat LaPlatney

XX:XX Yes.

be. will displacement to factor. be going a clinical is mentioned So, you big It

you. numbers we could feel like, some so, of expect recovery in in I but don't here, Bob really And Maybe I throw I wish would at doing that. spending chime could capable challenge and be impact going will see political enormous. And think then in beginning The QX. you'd October into more be I in an is to September of QX November. late probably

that? on when thoughts any that's obviously. post-election Bob think I XX:XX So,

Bob Smith

second we I Yes, earlier, in uptick XX:XX agree what should auto. of said but I half an the think Pat with see would in that, year,

but earlier XXXX of mentioned new GM their key of business has but but all a we'll piece we this be the the the call. [ph] of bit, consistent deal spending remain smaller spending, in in half in money and with we'll continues off have actually [Ford] increasing year, XX:XX see of expect decent back with of [Indiscernible] with on they're been to pretty us think hopefully year. I decreased is a course displacement, year. continuing to us, to the states Toyota force spending spending. that some models I So the the they're QX

Steven Cahall

kind and of then million, sounded maybe of just the you that's above so, a XXX it I where XX:XX Jim, cash Hilton, cash questions and before. we And couple think Great. like Jim on should were

in raise you driven And I just just wanted the of above of XX% the so, you things guidance to made little So, QX, then, a I mean for confident pretty prepared can that cash you you you're that kind sure those which of those Hilton accretion naturally a And more back comments the is understood at bit little that shares bought year? mostly the to use end that is or section. there? gave of bit is by in deleveraging I that and if took in was that you gives and political there a other last make surprise.

right thinking about am we to going free about be or that I of So, XXX% should cash debt this thinking Thank flow at point? you.

Hilton Howell

XX:XX then in. Thank pop start let Jim I'll I'll you, and Steven.

Jim Ryan

put to XXX to Again, cash to but like in that common I free would our as comparing be just be that dividends reported investments, earlier, XX:XX XXXX of XXX perspective, said would before etcetera, XXX million. acquisitions be million in Steven, clear,

Steven Cahall

XX:XX on And anything usages?

Hilton Howell

has our be yes. Well, it attempted Gray typically have as in conservative past in way to XX:XX The the done projections. we

period we to year more of closing because of we Raycom. a process leverage within like we we terms we we where in little when to also ratios. allocations, our So, and we with naturally the drop be timing a The cycle to then bit We of a kind of wise all of propitious a political essentially XX:XX deleveraging XXXX a lot a beat than regard our kind began it's XX:XX closed two-year expect were that to capital on cash is free two-year do And lot XXXX be, leverage them where earlier year. right had flow, going even in above. are so, with to of of And post the the X%. time, Raycom ratios

don't where increase numbers repurchases for reduction, be so, broadcast I these and get mean, I stock an dividend. bullish answer to Stephen, precise from since all and And the you board hugely time in QX but covered sit, our which as got can't And of and tell, have debt for gross think broadcasters in Steven? opportunity that new absolutely it is, have core company that the since then increase, have think Well, going sort when what XX:XX sneezed automobile that it's even will consider above, back. on really the the would the, plus dissipate. day the And automobile an we will perhaps right. Did to by hasn't business because our you for that larger cold, guys asked on we I I come automobile, and happened. the back I'm mentioned, to in when very get have we an that categories our all particular. we the XX:XX needed core. increased does, a bullish Because backfilled And absence advertising. you So, expect are we

Steven Cahall

Yes. XX:XX does. It

Operator

XX:XX [Operator Instructions]

Hilton Howell

operator, to make course XX:XX you're we opportunities about whole closing and other a it of that XXXX. what were We're proud just excited of excited very company in metrics, XX:XX have you through attention. questions. we any a very all about me as Alright. larger thank comments since XXXX. core Well, few look digging have, doesn't I much to We're our fourth we numbers. let and want for just like just the really able throughout the operating your And terribly time of accomplish are we quarter, your

end to soon. we'll speaking year. of quarter at to first our you, forward Thank look of talk really we and so, you And the that

Operator

conference today's concludes This participating. for call. you Thank XX:XX

now may You disconnect.

Gray Television (GTN) 26 Feb 222021 Q4 Earnings call transcript