Gray Television, Inc. (NYSE:GTN) Files An 8-K Results of Operations and Financial Condition

ME Staff 8-k
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Gray Television, Inc. (NYSE:GTN) Files An 8-K Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition.

On May 8, 2018, Gray Television, Inc. (the “Company”) issued a press release reporting its financial results for the three months ended March 31, 2018 (the “Release”), and furnished the Release as Exhibit 99.1 to a Current Report on Form 8-K (the “Original Form 8-K”). Subsequent to the issuance of the Release and the furnishing of the Original Form 8-K to the SEC, the Company identified a typographical error in a component of the presented non-GAAP term “Free Cash Flow” (as defined in the Release) for the three months ended March 31, 2018 that also resulted in an error in the calculation of Free Cash Flow for that period. This Current Report on Form 8-K/A is being furnished to correct such information.

As reported in the Release, the $8.451 million component of Free Cash Flow titled “Income taxes paid, net of refunds” for the three months ended March 31, 2018 was identified as a benefit and added to the non-GAAP term “Broadcast Cash Flow Less Cash Corporate Expenses” (as defined in the Release), resulting in the Company reporting in the Release Free Cash Flow for the three months ended March 31, 2018 of $49.298 million. As corrected herein, the amount of such component should have been deducted from Broadcast Cash Flow Less Cash Corporate Expenses, resulting in Free Cash Flow of $32.396 million for the three months ended March 31, 2018.

Set forth below is the tabular and related information originally contained in the Release, as corrected by the information set forth above:

Three Months Ended March 31,

% Change

% Change
2018 to 2018 to

(dollars in thousands)

Free Cash Flow (1)

 $ 32,396 $ 36,593 (11 )% $ 24,215 %

(1) Amounts for the three months ended March 31, 2018, and related percentage changes from prior periods, are as corrected.

Reconciliation of Non-GAAP Terms, in thousands:

Three Months

Ended

March 31, 2018

Net income

 $ 19,945

Adjustments to reconcile from net income to Broadcast Cash Flow Less Cash Corporate Expenses:

Depreciation

 13,694

Amortization of intangible assets

 5,436

Non-cash stock-based compensation

 2,157

(Gain) loss on disposal of assets, net

 (821 )

Miscellaneous income, net

 (560 )

Interest expense

 24,250

Loss from early extinguishment of debt

 –

Income tax expense

 6,400

Amortization of program broadcast rights

 5,346

Payments for program broadcast rights

 (5,474 )

Common stock contributed to 401(k) plan

 –

Corporate and administrative expenses excluding depreciation, amortization of intangible assets and non-cash stock-based compensation

 7,311

Broadcast Cash Flow

 77,684

Corporate and administrative expenses excluding depreciation, amortization of intangible assets and non-cash stock-based compensation

 (7,311 )

Broadcast Cash Flow Less Cash Corporate Expenses

 70,373

Contributions to pension plans

 –

Interest expense

 (24,250 )

Amortization of deferred financing costs

 1,157

Amortization of net original issue premium on 5.875% senior notes due 2026

 (153 )

Purchases of property and equipment

 (6,280 )

Income taxes paid, net of refunds (1)

 (8,451 )

Free Cash Flow (1)

 $ 32,396

(1) Amounts for the three months ended March 31, 2018, are as-corrected.

Except as set out above, the information in the Release is not updated or changed hereby.


About Gray Television, Inc. (NYSE:GTN)

Gray Television, Inc. is a television broadcast company. The Company owns and operates television stations and digital assets in markets across the United States. The Company owns and/or operates television stations in approximately 50 television markets broadcasting over 180 separate programming streams, including approximately 40 affiliates of the CBS Network (CBS), over 30 affiliates of the NBC Network (NBC), approximately 20 affiliates of the ABC Network (ABC) and over 10 affiliates of the FOX Network (FOX). Along with primary broadcast channels, the Company can also broadcast secondary digital channels within a market. Its secondary digital channels are generally affiliated with networks different from those affiliated with its primary broadcast channels. It also broadcasts local news/weather channels in certain of its existing markets. Its television stations include WVLT and WBXX in Knoxville, Tennessee; WOWT in Omaha, Nebraska, and WDBJ in Roanoke-Lynchburg, Virginia.