GTN - Earnings call transcript Q2 2024

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Operator

Welcome, ladies and gentlemen, to the Gray Media conference call. [Operator Instructions].

And without further ado, I will now turn the program over to our Chairman and CEO, Hilton Howell, Jr.

Hilton Howell

Thank you, operator. Good morning, everyone.

I'm the mentioned, of and operator Television. Gray the Hilton Chairman Howell, CEO As for second joining call. all you Thank our quarter earnings XXXX . With of Development our as Officer are [ Atlanta Officer; Jim Kevin Breland, me Ryan our Chief Operating July. Jeff here officers, Legal on Gignac, our executive succeeded and our all Chief Financial Atle and and the our President of ], Chief Latek, first Co-CEO; Officer, Sandy Patna in who

with the begin that Kevin As Kevin? will usual, disclaimer will provide. we

Kevin Latek

Hilton. Good as source address you, as uses morning, Thank website Television, everyone. key commonly Gray its known of a Gray, The www.graymedia.com. Gray company information. Media or is website

investor on XX-Q These in call a as can quarterly leverage financial will replace that non-GAAP measures ratio as release the to denominator in well are earnings assist measurements our SEC valuation on in to website reported supplements presentation but these be financial are particular, public our found We certain and, on provided updated our ratios. a EBITDA, Investor be meant with analysis financial the our our this GAAP company. not as of reconciliation Included Form on GAAP and of posted file website, its to measures metrics measures Relations. . Included in the leverage statements. our morning today. report of the discussion under may an We and issued adjusted

set recent update Actual most no the any that quarterly as regarding, could other Those are number most expressed report XX-Q statements Form various forward-looking have The forward-looking the our with most Certain those and filed of on company earnings a these matters call forth of obligation results. in results company's result operating and a recent implied to future discussed the things, SEC, subject future release. forward-looking in including undertakes factors in important on statements. reports statements our from include uncertainties. among this differ or may to statements recent been risks

turn to now I the Hilton. And call

Hilton Howell

you, Kevin. Thank

was there of very and exciting for this summer into last couple We a usual, collaboration As down straightforward certainly no quality lot the packed months. slowing journalism of innovation, Gray.

stations game. news top performing our are at local the production of Our companies and their

the Our of as financial Journalists. this Minimal from evidenced as the past work recognized Health editors success Professional just that fantastic several Broadcasters ] results have the the Foundation, stations the award-winning a much Leadership [ and and National America Society investigative over Association months and few reporters of been Association

level are story dedicated honored are to a we of work We investigative at with involved at time. employees a journalism and one congratulate impact making projects these on award-winning who with every those real this all company,

to and be [ launching [ in network Entertainment produced Entertainment Raycom from Rock and new ] South in ways the like networks our Ohio in subsidiary, August which by ] has and expand of also the broadcast content Globetrotters upcoming will our to reach many live Gray announcement game of Palmetto on XX, Harland of Sports works Carolina. our [ Sports continued the ]

inform to are looking our entertain ways for and We constantly viewers.

With am our today. results I you to quarter for company our pleased this review backdrop, second with personally

from to EBITDA Adjusted million in in $XXX $X $XX second an was quarter quarter last XXXX. XXXX. the of million, was increase quarter compared essentially million, from $XXX the second X% revenue total second the year. second million Our of income in was of second quarter Net the unchanged the quarter

quarter million, second was the slightly the end in $XXX revenue which advertising low was below range. of our core Our guidance

QX But of and less X% an million XXXX's please that our was specific, revenue be than ahead remember results. exceptionally core advertising result. To was $X.X XXXX about XXXX strong

quarter second we excludes the in are. quite basis, and [ in feel was $XX stations combined which ] divested we includes results a all, where our our results with good the acquired advertising On of all million. of So the stations. Political historical revenue

year Our the second XX%. quarter election XXXX, flopping political ad revenues blew by second quarter by Presidential the last of

this $XX have we digital business, earnings local for revenues full our in and continuing retransmission are amount political you a core strong healthy As release, our significant adjustments million revenue revenue ad for reflect guide million of a morning's revenue. expectations political continuing displacement. $XX These lowering current may continuing seen economy, and ad for growing by

Atlanta. we we review always opportunities time, company really all Meanwhile, share film even same that on our the and intensely does. carefully ] cover trade industry. the ratified have already the ] production revenue, [ important of agreements are expenses [indiscernible] At new to craft Union week, workers reduce in television efficient to Last Assembly increase to good this news collective bargaining continuing more than [

here alerted, With the and and film our in Hollywood up [ lining television ] risk busy of again, are facilities sound stages another strike we Atlanta. now fares related productions

for lease for the long-term networks. we lease stages of needed facilities to of drama the of big by assembly new suite our not the one that Gray multiple full week, studio with episodic portion into fact, X X television already studio entered the major signed a In Last broadcast studios for support first leased of are a high-quality within NBCUniversal. companies

year. affiliates airing early next of that this Our will that start are network new network actually show own stations

Atlanta are area long-term to production beneficial to to it be a our expect at and Metro welcome Atlanta, production sincerely we the relationship. We this mutually world-class complex thrilled Assembly into studio

XXXX refinancing our the operational most recent of While was we significant the our of proud activity achievements, the in and for maturities. Gray undoubtedly are quarter debt anticipated successful second

our $X credit million. increasing maturities In to also debt billion almost we facility of revolving while $XXX to XXXX, extended particular,

of material a near costs business, to and decisions result the capital thoughtful efforts, maturities around no have increased and these expenditures. longer smart of revenues raise we execution through As efforts including reducing

off debt. significant that pay generate and to can this later year and through to expect flow used and be cash repurchase We will free XXXX

open of our effort his closing the that immediately will and into Gignac XXXX quarter. this explain refinancing, soon market began notes Jeff of continues As after remarks, our we in repurchases

leverage debt and capital remains allocation for Reducing our [indiscernible]. top

will and to down guiding and our for we levels. have until few We to back this said comfortable debt continue now comes usual our leverage more this quarters, reiterate a principle

[ it to well importantly, some great pledging ] to provide it recent every our leverage, other experiences would do continue Pat and as said color as the what our will doing support this see topic team opportunities. will reducing around in upcoming and the you More more on now regard. rest of critical

Patrick LaPlatney

Thanks, Hilton.

the revenue revenues than advertising tailed but XXXX second core off June. little strong the are ad started Our in quarter X.X less In XXXX. end, quarter second a about

quarter quarter 'XX. and driven this [ year X% for not in quarter an ] the Olympics, to attributable be that And to were broadcast third of primarily by up include which second Hilton NCAA percentages games ahead the mentioned, to did in compared plus flat Looking 'XX, from advertisers. comp are core million of of to have [ expect 'XX. about did we ] the event $X both viewers 'XX, extraordinary core not QX proving will be 'XX, the third we of low context, we single-digit but working For X to at a revenues as against pretty final in tough

third U.S. will political. about affiliates XX% impacted that you displacement We moved quarter. approximately Olympic for cover currently of $XX the will is in anticipate of wondering, generate demand of our as strong from September. that by that third of [ And political homes through XX Obviously, in of core advertising 'XX, be ] quarter we especially million some NBC those the revenue

the be in to with likely is more commercial year room political in to that we [ we it arriving to the fourth ads ] core as us forecast ranges year more quarter. fourth displace for be Displacement reduce ] [ window, Consequently, later forcing our ads. would the revenues determined a quarter, in than possible originally political compact make expected ] to for core internal [ impactful revenue ad this prudent of more political consider we in

Core guidance our year $X.XXX million. of $XX full XXXX million full guide broadcast for expenses full to billion by result from expenses for reduced year our important corporate remember It's our another that guide for $XX $X.X and year by a million, admin earnings Today, As for lowering OpEx our we additional last range decision, we ] reduced our approximately we $XX that [ today billion. are operating an the expense broadcast and by capital on and call. to

Gray costs operating efforts made to progress our and expenses. are While managing good expenses year, redoubling ways this to and capital thoughtful we reduce find

effort in-house training local to sales our relentless business, and direct developing finding programs essentially new We to our which are Gray. new that's in a customer is sales local strong force lean continuing on

second July July the double-digit a records for delivered new In business into which results XX% by increase the over we direct direct to strong 'XX. of posting second break new continued again quarter, than business percentage revenue local 'XX. These local continued again more 'XX, quarter

the is which ] likely [ NBC stations. our of Some to attributable on Olympics

businesses double-digit advertisers as which core the in we digital revenue revenues. growth continuing in of to in revenue. new as second ad well again grow also digital and Our quarter, In once and the for audience records are we engagement number digital set total include

out important and fast the and ecosystem. part channel to continue growing offerings Our in Connected finding and [ attracting roll ] TV this advertisers of viewers

million half $XX In basis. political that of historical revenues the year, of XXXX on recorded combined to our advertising the XX, political first million half June [indiscernible] the were through revenue terms $XX ad in we of compared a

half Steyer ad Presidential known predict this first that the political this spending we effect. $XX [ year's up given First achieved of XXXX, end in ] half revenue Presidential year million we We nature primary will the -- of unprecedented race. from the lower certainly political Bloomberg otherwise cannot XXXX revenues in where as achieved benefited that

substantially see races to [ second become ball the and We are and very particularly up of race the fundraising. quarter ], competitive more energized encouraged Presidential fueling since down the end the

to full anticipate we turn political ad reasons, year. now Sandy. for these For the revenues continue over I the very call to strong

McNamara Breland

our P Thank and quarter, not recent well high-quality as we new on and . Throughout documenting as journalism. sales breaking releases. most have you, with second the on Pat. again, press once the have we awards, serve importantly, been audiences recognitions calls continued stories important audiences local We numerous success gathering side, as we only

audit markets. It in some we local these our of that are that local our in third-party stations proud as resonating to stories want. from television-only track local participate as in markets, shares is great obtained our provide the investing sports efforts news, television weather allow local the are markets. businesses solutions large be clearly investigative ad In the to with with to all our other our portion of advertising stations sales communities and that political franchise to well We team and

the At same by that [indiscernible] did however, Gray quarter strong markets audit quarter that total decrease the well revenue their the political some sales total ad second second slightly time, in revealed grew of year. core as their These digital stations dollars and shares the as over fueled audits of revenue. indicate advertising ad shares past

We results are and seen a community involvement again these again strong not regardless focus because we on maintaining local conditions. retains newscast economic viewers surprised that have of by and

strong working [indiscernible] [ partnership been sports In teams and over they Caroline with year aggressively Dan stations. stations broadcast sports ]. new a statewide network Entertainment bring well the past weeks, as to Rock a television we mentioned, of properties,as the of X entertainment of Our to of Sports television Throughout number proved fans the and local launch as sports sports in [ alike. last local a other professional entertainment, South large on back this Gilbert we themselves year, number the in as demonstrated more Hilton announced opportunities ], power local to have sports

have optimistic announce this exciting We will to some news are soon. we that area in

stay tuned. So please

I'll now to turn the Kevin. call over

Kevin Latek

Thank you, Sandy.

pay-TV of you roughly X-year [ Gray of signals mutual covering to know, TV tens to consent retransmission course station customers. As of traditional be ] the our our millions operators cycle, most . renews of agreements a over XXX

Our current half of cycle began in XXXX. the second

reached has in year, cycle. final that the this past XXXX, can and half days, principle the renewals throughout second While we renewal now of XXXX anticipated had report agreements few we current within completing the agreements Gray some

our Our MVPD next of renewals occurs XX% material MVPD first operators base. traditional set serve sub of quarter XXXX, in of retrans with the who approximately

mutual of come traditional our the quarter about group of traditional second first business, the the The these impacting our about of of in with will next will our the subscribers. without In XXXX. retrans subs third subs covering quarter covered or of final the Gray has in XX% XX% XXXX, dispute cover XXXX, in public Once quarter XX% of MVPD business up tranche MVPD remaining occurring a single our the customers. renewals distributors completed again, renewal renewals a cycle

[indiscernible] with of our the our collaborative to distribution secure continued interruption. evaluate strong retrans partners approach We without

obtained deliver of price ] value and payment that apps products, the remain to Gray proliferation terms going carriage MVPD distributors. the channel content for more forward. the that the ] the the and cable to watch more is over of slow formidable [ increases Importantly, that This of sub and MVPD these broadcast streaming of We of migration the the and bundles streaming increases the to little necessary pace in reflect ads and networks sports local rate [ optimistic declines addition stations. control our stations a result will

earlier is expectations in to this about date, decline to [indiscernible] same has as at more This last year. our pace To however, base optimistic year. contrast MVPD the traditional continued subscriber

XXXX, experiences about up these X%, full $X.XXX retransmission down guidance our are approximately for the we of ] Given [ billion. bringing half by first year to through

We million essentially line network approximately the with continue in affiliation to fees for of anticipate year's $XXX amount. year, last

XX As The reminder, affiliates each know and with trends the networks the that local same new see also be the networks to value we next we only months. provide. businesses see we a they will their big do, that of same can affiliation agreements X strong over the negotiating

into or of strictly affiliation will details agreements, confidential. not which get our We network specifics remains

changes you the I'll television reflect and years. committed to the the This is adjusting to has tell significant concludes ecosystem remain occurred will few that the can equation the Gray to and we What that over they that cost call been side now my the ensure have remarks, network of past retransmission to Jeff. turn

Jeff Gignac

to highlights key detailed quarter, which in Thanks, like EBITDA end we the for our of on sheet. low the the at as This therefore $XXX most focus point adjusted improvements big I'll made QX guidance our I'd Kevin. release out mentioned, But our remarks million earnings Hilton million. $XX financial to . are the came balance the were expectations my covered the expenses that as our exceeded Hilton million. our $XXX of operating of recently and XX-Q. Pat range of below first, and in

conditions During the billion quarter, we maturities. $X.XX XXXX extend capitalized market on receptive of debt to our

We financing liquidity on revolving XXXX sight and us cash facility year to with also and December using which to million, is clear due commitments increased maturity expect XX, XXXX. $XXX This the of our in our notes credit all sheet flow significant provides XXXX. of to line this on-balance addressing we generate later again

banks stood the joined appreciate lending our as that who sincerely for the group group We last our months. lending as in well those us in few by have years many

very the the notes. purchase business We followed understood our and our and support also appreciate of senior sincerely loan plans with to senior through secured investors our many and our commitments secured new strong new who

XX.X% of face following an earlier, open and approximately priority. market our quarter the additional reducing mentioned end, $XX XX% we allocation via remains end, completion QX, that we price XXXX to at retired at to million As our average of Hilton notes refinancing debt the par. $XX notes of repurchases the of value top And leverage capital July, of over XXXX million just Subsequent an acquired in par. of of in

market we'll under million conditions X, $XXX opportunities. million of continue repurchase additional open market remaining purchase for and have we August As the market monitor program, previously announced $XXX to open

of generation Further, August us our revolver drawn. repay allowed strong in million $XX currently cash leaving X, $XXX flow to July our on million

activities, the over us repay X, with we on market to quarter August to to that revolver to and liquidity offer notes capacity. fully related the timing up end. from last hand tender QX. had additional One interest by of refinancing expected I'd Depending currently timing open to undrawn our on on our of $XXX and item repurchase of out metrics did revolver QX related million leaves the was expect tick cash paid and available expenses As point that to leverage like prior to as is XXXX the fees and end. is our slightly mostly This refinancing quarter of from settle we

leverage The denominator. other factor the is notable on ratio

we have to side 'XX, related that's the rolling timing political $XX equation, -- that on a political our the of $XX political On quarter that In swing was of million. of revenue. In million. side, have X-quarter QX we out QX 'XX, of calculation, was

denominator guidance and XXXX our expect quarter Our cash 'XX which political flows. for our the year-to-date approximate will to year-to-date and normalize QX through with we aligned 'XX indicates that calculation QX in political, third

the back remarks, my call I'll concludes This to over Hilton. turn and

Hilton Howell

open time, any . you for I to have. this like may the would Thank much. at Operator, call anyone up questions very

Operator

[Operator Benchmark Company. looks our It Kurnos will from first come Daniel Instructions] question of The

Daniel Kurnos

if Three, could. I

on first political. Just

have already substantially sources Democratic transition the up Third-party party the of before and even who's taken for the year running. pretty estimates

peers dropped just ex -- are in runoff let's the now all for records. out super slow, of Biden say, until limited the was And July obviously, visibility that calling your is race. know peers I -- at least

might can Just on political assume going to you what to here. market share give confidence guys here update? XXXX any relative you're guys level to your of think out. gauge this you I play I how take just -- us want

Kevin Latek

I we're the been also to I crystal think that political, think we've pretty for not on year. clear give all full optimistic but going a we're guide

But is despite didn't puts So as what we and good money. -- also what the signs, seeing But million are the everyone worth, put primary going it very number actions a spot full be spot what out. we Presidential their year going XXXX, on to we're same to going guide have leave but to for I make a We're the same QX of else be. not pretty will optimistic. provided fact like we to we're and at XXXX. And to is strong of QX, lots $XX that for is QX

Hilton Howell

and tell bullish here days. I year. to We've is and on states, extremely I understand Dan, everybody political you, they in some but XX only hope that, you this the got about XX-something entire voting election will start for days

so we coming And and a good tremendous amount we're be in, is political really seeing to of expect year. it a advertising that

Daniel Kurnos

the returns Housekeeping, renewals enough. ask when not just when are network the ], Kevin, up? to are one Fair [ Okay. -- network

Kevin Latek

list investor in that deck the There's network We have next a all network. up the months. for March out XX our from by renewals schedule them

Daniel Kurnos

then on of how to assembly, how flow on payback And cash guys optimism sunk? the And from about kind the gauge now Hilton, thinking cost any Okay. you of that most of your you're way just the evolves here? kind have

Hilton Howell

are Well, as studios the right? know, -- from And you profitable we they day were X. built, have

this conclusion, in that put has this in to coming [indiscernible] getting lot full everyone the really and in sales. the of folks votes are are afternoon after a With behind in we remarks, [indiscernible] in this I And are -- at prepared prominent our look meet business. as that individuals with and mentioned fact, really I call the team wind the studios

quickly how things unbelievable It's turned.

and very sure with secured, But had make we very we and secured dotted solid actually we that have is important very [ a ] to eyes that our talk like of, now. right you we before Gray, operating client lease things. have We very, know proud we're cost about a teas

we near future. be so leased expect all studios in fairly of up And the our to

Operator

of Barrington Next Research. have Goss James up, we

James Goss

is about sports. have I question One local

can your a have peers involved the clearly years. leaning lot in been additional I might into And that might you been about wonder to approach it, area. to always even you especially talk in that's a Raycom. involved people into way recent the . more you and And You've if with broad obviously you any identify be attractive more ways since take keep

McNamara Breland

Yes.

really I with year doing [ local -- we're that clear concluded that Phoenix sports our just more partnerships. we've Suns], interested a successful. think been We had in first the extremely

] and a with the with news how [ a And it's working happy we're Vegas increased Dream, [ the TEGNA Aces And or NBA team. Mercury well. partnership Indiana Las great markets. how as the is the We're We several a and are [ in working happy with teams with Atlanta going local local I ] that [ teams, and mean are ], going, distribution that's the so X ], sports Phoenix through we're the seeing reach. competition. great that it's fever with currently

guys hope additional calls And we on and absolutely that really working And to news multiple said, are on we shared so interested we as have are soon. I've with exciting partnerships. have you some

Operator

Huber. Our next question will at come Craig from

Craig Huber

first you question, in about further a elaborate you parts ad June? little saw month it your comment X the you off on feel you My of that, or you economic can the is core just that X of comment in driven? third June, it more revenue just carried was on there, negative Do tailing the bit can forward that side And quarter? whatever what categories? have Or please. in Anything

Patrick LaPlatney

here was auto it's primarily possibly I Yes, to seen last Olympics. digits, Pat. our In weeks, although uptick by [ couple auto driven second. would the end third an it quarter, the say due of at off the the is of down ], tailing in we've mid-single

look, positive in broader of I to X. flat think out to economic outlook, projecting pretty be there. plus Things we're are terms So

many down are third large quarter. one, track, up you up categories auto is in we are the as while and that more list there If at and down of And well. long ones a we big look that have other it's

we Street third far Main are in as pretty So goes as bullish quarter.

McNamara Breland

P Yes.

and [ new over setting had quarter, and really saw again record increase XX% with new in increase direct of direct]. our a again, Pat, just teams. I local finished second with we with we and think double on digits, ] our sales performance And the a we see we've in July just an too, add there over that strong to [ that, to local emphasis

Operator

of we Next up, JPMorgan. have Avraham Steiner

Avi Steiner

a guide. give not you're going recognize political I to

little so and if I ask And going try a could. differently, to it I'm bit

you the don't think way, step if better for down political answer revenue took Gray it down? since the year you political that way Biden much BIA their [ for by has decline? for You Is for by the do And How full year took $XXX right become offsets it about of ] as spend this that X%. think up think about they estimates to million. think I

Patrick LaPlatney

Really down hard the a just the on not make clearly, stepping positive ballot. back call. to but Presidential, significant mean, Biden that I had impact, right

but there's position really not year. what to look, there, It's be a to in out to we're that quantify be So going good exactly more . very money is. going a

Hilton Howell

really feel with every both election are this Gray Hilton. in decided be single And We have to good. to will exciting battleground significate on one well -- as like about [ you footprint as to competitive. to state is just exposure races things because senatorial the and very I'd of our going and point particular, Presidential very be is a this significant that we level to ] [indiscernible] essentially that

a very not that bullish I about we're giving while guide, are reiterate are coming. very, so where will And we we

asking But a going And would at this all or we and I pace. have remember last rapid in in year. come political is quarter, everybody it's any questions very to not was at about coming whether

Operator

[Operator Instructions] of Cahall So Steven have next Fargo. Wells up, we

Steven Cahall

and from Dan's leverage little Jeff, number the refinancing wondering kind many where EBITDA any up for mind more benefit studios up at some year there repurchasing to assembly the of those can maybe of follow on political, and just the at then drove has on year higher and notes. generate, if as you done rate thing. in been run question, I is signed obviously, the know this a that's -- you you'll to a I that end that what of big the for you getting flow exit [indiscernible]. think way a that cash of think XXXX be chugging sort have . And Thanks, assembly quarter. there. leverage commentary about you're the free you you the focus was the so And along have between been

come? what all mean the to in can trying for generation earnings we're to think I understand, years that

finally, And get then just more I your Kevin, love little subscriber maybe thinking on outlook. to a would

start point. at you're said some subscriber could to optimistic here declines improve that You that

As see start long much think it analyst, I've on to would my to when of you necessarily ] a isn't notes observed love been just it [ media happen? might but and compare something have career, just kind that in

Jeff Gignac

it's Yes, Steven, Jeff.

So still it say line, [ I guess production with at on what production companies. expectations the at studios, change along ] other didn't the I reflected around same companies our guide. That's our the XXX number, the we would leasing and

to So that will get expect piece you from I full think year we it. for what the directionally of that .

it relates people the the sure was ], quarter, X.X a timing we generate. when with maybe As the scratching. to head -- to was view leverage, it I'm we the there the And of get thing little time cash third of as it [ by bit a saw we to expect that end

political cash shakes the is remarks, in exactly the for out I we flow priority out As should the prepared my to get said be the of political number revolver debt depending on where repaid. and final the

things just where should depending to shake on the in we So shakes low something be again, political mid of out, depending Xs probably exactly at the year, on where end out. the exactly

Operator

Securities. Next Kerrane [ Mike Truist ] up, we of have

Unknown Analyst

one different to way. slightly I the question political wanted ask to maybe try

is core that that you expecting You displacement to And to Or it much it QX. full But from of million remaining expecting maybe were that $XX of that what the by is the core $XX in about how continue from kind be or are for lower in end to out? [ was like due weakness like to to X much is weaker? how the that ] a ] looks year looks saw due the X guidance guidance at QX your you was bit the crowding million. $XX And core decline QX, or you displacement Core of than little really million lowered part political? -- your just like results expecting maybe [ where of --

Kevin Latek

be and and a fact days. provide we despite into Pat a cramming still billion, Sandy can you versus I'll the shaking of revised to political of it's I some are I mean $X.XXX our Yes. up if guess at lot the that that's color. next ] start, going [ heck look out 'XX and XX the whole where guide

I performing business From point So That's new point. me read at look direct a let cite of local that just that's well. we specific there. the know a don't that's out outlook a itself, there's we've the through. specific economic data view, data for broader a got When barometer

you if our about the -- of in QX if displacement cycle, compare in XXXX political XXXX to XXXX, compare Presidential So cycle. XX% of the we QX last had you

point data number that to So a it's on see we're much . impact a specific very at difficult least can but going exactly you put it's to how think there. about,

Patrick LaPlatney

I covers. think that

Operator

question Morgan David next of Stanley. [ The Hamburger from ] is

Unknown Analyst

your distribution out to know subscriber And revenue, I years the of the last being trends primary as So churn driver deteriorate. a called few over continue that. you

Now you've growth flattened. renewals the of has as of your for distribution years, it all next I'm expense couple curious, in locked seems though affiliate that the

you you into some a do? months,renewal pretty the how position the what this go model? necessary persistent? have the get here. And kind next to get the get you numbers that of balance? process structural yourself relief can trend can significant it you So networks I'm is networks, a mean, I as more in And pricing back of wondering, you imbalance in to seems XX bit variable mean onto your do pernicious how to see be Or reversing of a trying that with

Kevin Latek

This Kevin Sure. is Latek.

in quarter. probably seen decline this retrans our peak a We have

less. and do not declines of should be for we of less the we There's forward, into get that, to going a the contracts. our details couple reasons but Going should see

is, of reiterate come [ and slowed has it the of of side about times, growth underpin of What the had of a growth lot fee we went last has happened subscriber ] said largely down. network networks equation that couple what's everyone kind the stable else into the then the couple the pricing. the a to discussions we've years and again right, affiliation to have with numbers as the network and growth been assumptions You're the not that

[ as contracts, you I'm owned subscriber models, the affiliates the through of networks we been more sure between and had paying run result, not operated X/X from we good ] to expected. have were us, that in the to And ] next X/X fairly, in current for as Certainly, appears as and we and not numbers met contracts, appropriately. they had their not and a our expectations eyeballs the that had need their and will stations. of we remind price revenue [ compensate the selling we're more and network markets, advertising what cash networks I'll derived models

are than our network stronger the them. allowing more ratings The significant and are networks. airing for peers on programs compensation network to other we networks monetize delivering are that those that their is stations we opportunities. amount compensation providing affiliates local the part these programs, a ads are eyeballs the to airing of who better are of are Those That

what eyeballs the with we're for us the eyeballs, these level be the and you and above networks conversation And are compensating that with will money, we delivering to appropriate at in are continue which both to our we affiliate set delivering an in average. you rewards So dollars. that amount we compensating are compensating you need we're

And we current strong that next exactly is is months. happen next something too will the environment again, network our those belief because and conversations be in round. fees need for -- high happens, end not XX the result how are months over And that to can that very speculate adjusted and the vacillation XX down our

doubt negotiate people months and in of company before then, networks and are things of several a going to are the lot with lot over happen this industry to going next years. A no

outcome the headline to order both that parties. expect and speculate the to works to networks, there remain we on a the cost not going we need to So this is for we're in down that is there affiliated except exact number come that

Operator

]. [ ahve of ] [ Longport Darnley Richard we up, Next

Unknown Analyst

any Could years, refi the thought turning term for is for you about that there of -- X longer debt? some a

Jeff Gignac

Yes, it's Jeff.

tenure yes, and of really a with in availability balance most accomplished opportunities looked that range the our and at way place right ultimately, So of the to and And in the We we the objective of maturities . terms. getting XXXX of came it look, down our was something different evaluated cost of putting best rid market. whole efficient capital. that

Operator

have Next Huber up, Research. at Craig we Huber

Craig Huber

be on cost this based the at can and your what in On sounds will us it assembly gross then end like just year? your on the the for net you project Atlanta, And of update Assembly, commentary return also, quarter number that final start meaningful we we rest that XXX the should of the Is to benefits . the maybe ] for on first the guidance fair? assume next [ for a that year year see your P&L?

Hilton Howell

quarter. fair that's think I first Yes. in

Jeff Gignac

cost, the was of Craig, final $XXXmillion. question, on other And Yes. part that your the

Operator

[ Truist from today final for Securities. be of ] our question will Kerrane Mike And

Unknown Analyst

] [ guys continue more Are the capital the authorization. you one on bond to only to bonds other would look in Or target X [ structure? Just ]? or at XX question repurchase you the planning

Jeff Gignac

Yes.

we by at I be a think the with return will think be XX%] the where in the -- where time. the guided that any balancing best have is maturity look, [ we'll fact where pricing point I

we of and do that. more revolver. -- execute in have don't any We million So $XXX to the have on meantime, on the

will tell be totally guided by opportunistic. markets can it's us. So We what the

Hilton Howell

in a us positive talk be which November. for this operator, on was numbers question, is broadcast next thank give morning, very time want right. we'll entire -- being you real Thank talk we'll very we that for to able because a the to everyone about for political just to with get got All race, morning. the this to and We're you way I've If you time I the . chance to you in industry. excited this last to your evolving

Operator

conclude does With this and ladies that, the call. gentlemen,

you and You joining again us thank disconnect may now for your lines, today.

Gray Television (GTN) 8 Aug 242024 Q2 Earnings call transcript