ATLANTA, June 02, 2025 (GLOBE NEWSWIRE) -- On August 15, 2025, Gray Media’s local television station WANF will end its 31-year affiliation with the CBS Network to begin a new chapter as an independent television station. Going forward, WANF will leverage its successful local news operation, complete control of its daily program schedule, and the resources of the locally based Gray Media to better serve the local community with on-air and online content throughout the day that is more responsive to the growi ...

Group 1 - CBS, a subsidiary of Paramount Global, and Gray Media have renewed 52 of Gray's existing 53 CBS network affiliations, ensuring continued local availability on Paramount+ and across traditional and virtual MVPD platforms [1] - Effective August 16, 2025, Gray's Atlanta station WANF will cease its CBS affiliation and operate as an independent television station focused on the Atlanta market [1] Group 2 - Gray Media is the largest owner of top-rated local television stations in the U.S., serving 113 television markets and reaching approximately 37% of U.S. television households [4] - Gray's portfolio includes 78 markets with the top-rated television station and 99 markets with the first or second highest-rated television station in 2024 [4] - Paramount Global is a leading media and entertainment company with a diverse portfolio that includes CBS, Paramount Pictures, Nickelodeon, and streaming services like Paramount+ and Pluto TV [5][6]

Core Points - Gray Media received a total of 81 regional Edward R. Murrow awards for excellence in journalism, awarded to 38 of its local stations, with WMTV in Madison, Wisconsin receiving 9 awards and WVUE in New Orleans, Louisiana receiving 8 awards [1][2] - The Edward R. Murrow Awards have been recognizing outstanding broadcast and digital journalism since 1971, with Gray's regional winners advancing to the national competition, with results to be announced in August [2] Company Overview - Gray Media, Inc. is headquartered in Atlanta, Georgia, and is the largest owner of top-rated local television stations and digital assets in the U.S., serving 113 television markets that reach approximately 37% of U.S. television households [3] - The company operates 78 markets with the top-rated television station and 99 markets with the first and/or second highest-rated television station during 2024, along with the largest Telemundo Affiliate group comprising 44 markets [3] Awards Breakdown - Four awards for Overall Excellence were given to KTUU in Anchorage, Alaska; WVLT in Knoxville, Tennessee; WPTA in Fort Wayne, Indiana; and WMTV in Madison [4] - Nine awards for News Series were awarded to Hawaii News Now in Honolulu, WMTV in Madison, and several other stations [4] - Seven awards for Best Newscast were given to stations including KKTV in Colorado Springs and WMTV in Madison [4] - Six awards each for Investigative Reporting, Excellence in Innovation, Continuing Coverage, Hard News, and News Documentary were distributed among various stations, including multiple awards to WMTV and WVUE [4] - Five awards for Digital and Podcast categories were also awarded to several stations, including WMTV and Hawaii News Now [4]

Company Moves - Gray Media announced the appointment of Shannon Booth as the new General Manager of WOWT (NBC) in Omaha, Nebraska, succeeding Jim McKernan who is retiring after 44 years in broadcasting [1] - Jacque Harms will take over Shannon's previous role as General Manager of KOLN (CBS) and KSNB (NBC) in Lincoln, Nebraska, as well as KNOP (NBC) and KNPL (CBS) in North Platte, Nebraska [1] Leadership Background - Shannon Booth has over eight years of experience overseeing market-leading television, digital, and streaming products in various Nebraska communities and has held multiple management positions at KCRG in Cedar Rapids, Iowa, for 18 years [3] - Jacque Harms has a media career spanning over 35 years, starting at KNOP in North Platte and previously serving as General Manager of WTOK (ABC) in Meridian, Mississippi, and KKTV (CBS) in Colorado Springs [5][6] Company Overview - Gray Media, Inc. is the largest owner of top-rated local television stations and digital assets in the U.S., serving 113 television markets and reaching approximately 37% of U.S. television households [7] - The company operates 78 markets with the top-rated television station and 99 markets with the first and/or second highest-rated television station during 2024, along with the largest Telemundo Affiliate group [7]

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Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $782 million, a decrease of 5% from Q1 2024, but 1% above the high end of guidance [8] - Net loss was $9 million in Q1 2025 compared to net income of $88 million in Q1 2024 [10] - Adjusted EBITDA was $160 million in Q1 2025, a decrease of 19% from Q1 2024 [10] - Total operating expenses were 1% below the low end of previously announced guidance [9] Business Line Data and Key Metrics Changes - Core advertising revenue for Q1 2025 was down 8% compared to Q1 2024, primarily due to the Super Bowl airing on different channels [18] - Political advertising revenue exceeded expectations, coming in at $13 million against a guidance of $2 million to $4 million [21] - Digital advertising revenue was up double digits, indicating growth in this segment [20] Market Data and Key Metrics Changes - Automotive advertising revenue was down in high single digits, reflecting ongoing macroeconomic uncertainties [18] - Categories linked to consumer discretionary spending, such as restaurants and department stores, were soft, while essential categories like education and financial services performed better [20] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing its balance sheet, with a top capital allocation priority being debt reduction [24] - There is a commitment to enhancing local content offerings and entering new sports rights agreements to increase relevance in local markets [12][13] - The company is exploring opportunities for mergers and acquisitions, particularly in creating new duopolies [30][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for a more favorable regulatory environment that could facilitate strategic transactions [34] - There is cautious optimism regarding the second half of the year, particularly in political advertising, despite overall uncertainty in the advertising market [50] - Management noted that the recent trade deal with the UK could stabilize the advertising market, which has been affected by uncertainties [51] Other Important Information - The company declared a quarterly dividend of $0.08 per share [12] - The Assembly Studios project is progressing, with multiple productions currently shooting and plans for future developments [15][69] Q&A Session Summary Question: What are the most attractive options for market expansion? - Management is actively pursuing various opportunities and is optimistic about potential regulatory changes that could allow for new duopolies [30][34] Question: How does the new regulatory environment affect affiliate negotiations? - Management is encouraged by the changing tone from regulators regarding local news and broadcasters, which may positively impact negotiations [37][62] Question: Are there any cancellations in advertising? - There are no cancellations, but there is hesitancy in booking ads due to economic uncertainty [48] Question: What is the outlook for political advertising? - Political ad buys are currently strong, with significant orders coming in, indicating a positive trend for the upcoming election cycle [58] Question: What is the status of Assembly Studios? - Assembly Studios is currently around 75% to 80% leased, with ongoing inquiries and productions actively shooting [75][69]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $782 million, a decrease of 5% from Q1 2024, but 1% above the high end of guidance [6] - Net loss was $9 million in Q1 2025 compared to net income of $88 million in Q1 2024 [7] - Adjusted EBITDA was $160 million in Q1 2025, a decrease of 19% from Q1 2024 [7] - Total operating expenses decreased by 1% compared to the low end of previously announced guidance [6][7] Business Line Data and Key Metrics Changes - Core advertising revenue for Q1 2025 finished down 8% versus Q1 2024, attributed partly to the Super Bowl airing on different channels [15] - Political advertising revenue was significantly higher than expected, reaching $13 million against a guidance of $2 million to $4 million [19] - Digital advertising revenue continued to grow in double digits, indicating a positive trend [19] Market Data and Key Metrics Changes - The automotive advertising category saw a decline in high single digits, reflecting ongoing macroeconomic uncertainties [15][17] - Essential categories like education and financial services performed better, while discretionary spending categories like restaurants were soft [17] - Political ad buys are expected to continue growing, with early signs of spending for upcoming elections [20][44] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing its balance sheet, with a top priority on capital allocation [22] - There is a commitment to expanding local content offerings and entering new sports rights agreements [10][11] - The company is exploring opportunities for mergers and acquisitions, particularly in light of a more relaxed regulatory environment [22][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for deregulation to create new opportunities for growth and consolidation [31][41] - There is cautious optimism regarding the advertising market, with expectations for some recovery in key verticals despite ongoing uncertainties [44][47] - The company is committed to maintaining cost discipline and expects to see benefits from cost-saving initiatives throughout 2025 [24][90] Other Important Information - The company declared a quarterly dividend of $0.08 per share [10] - The Assembly Studios project is progressing, with several productions currently in operation and plans for future developments [61][62] Q&A Session Summary Question: How creative could the company get if deregulation allows for attractive opportunities? - The company is actively pursuing various options and is optimistic about potential regulatory changes that could facilitate new transactions [31] Question: What impact does the new regulatory environment have on affiliate negotiations? - Management is encouraged by the changing tone from regulators regarding local news and broadcasters, which may positively influence negotiations [34] Question: What is the margin lift from creating new duopolies? - The margin improvement from creating duopolies varies significantly based on market conditions and the specific stations involved [38] Question: Are there actual cancellations in advertising or just hesitancy? - The company is not seeing cancellations but rather hesitancy in ad bookings due to economic uncertainties [43] Question: What is the outlook for political advertising in the upcoming cycles? - Political ad buys are currently strong, with significant orders coming in, indicating a potentially robust political advertising cycle ahead [54] Question: What is the current occupancy rate at Assembly Studios? - The occupancy rate is estimated to be around 75% to 80%, with ongoing inquiries for additional leases [68]

Revenue Performance - Total revenue decreased by $41 million, or 5%, to $782 million for the three months ended March 31, 2025, compared to $823 million in the same period of 2024[94]. - Core advertising revenue decreased by $28 million, with Super Bowl advertising revenue on FOX channels increasing to $9 million in 2025 from $6 million in 2024[94]. - Political advertising revenue decreased by $14 million, primarily due to 2025 being the "off-year" of the two-year election cycle[94]. - Retransmission consent revenue decreased by $2 million, attributed to a decrease in subscriptions offset by an increase in rates[94]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $132 million in the 2025 three-month period from $68 million in 2024[103]. - Cash on hand as of March 31, 2025, was $210 million, up from $135 million at the end of 2024[103]. - The company anticipates sufficient cash flows from operations and borrowing availability to meet future capital expenditures and long-term debt service obligations[106]. Debt and Financial Ratios - Long-term debt, including current portion, was $5.609 billion as of March 31, 2025, compared to $5.621 billion at the end of 2024[103]. - Interest expense increased by $3 million to $118 million for the 2025 three-month period, primarily due to higher average interest rates[99]. - The company has a Leverage Ratio of 5.48, which is below the maximum permitted incurrence of 7.00 to 1.00[113]. - The First Lien Leverage Ratio stands at 2.92, under the maximum permitted incurrence of 3.5 to 1.00[113]. - Adjusted Total Indebtedness, net of all cash, is $5.471 billion[113]. - As of March 31, 2025, the total outstanding principal of long-term debt is $5.673 billion, with various senior notes maturing between 2026 and 2031[114]. - As of March 31, 2025, the company was in compliance with all required covenants under its debt obligations[114]. Expenses and Capital Expenditures - Corporate and administrative expenses increased by $4 million to $32 million, mainly due to increases in non-cash stock-based compensation[96]. - The company expects routine capital expenditures to be in the range of $70 million to $75 million for the remainder of 2025[116]. - Anticipated reimbursements from the Doraville Community Improvement District for infrastructure projects are approximately $20 million during the remainder of 2025[116]. - The company has approximately $240 million remaining under the debt repurchase authorization, which is valid through December 31, 2025[115]. Tax Obligations - The company expects to make income tax payments between $48 million and $68 million during the remainder of 2025[117]. Leverage Ratio Calculation - The Leverage Ratio Denominator, calculated for the total eight quarters ended March 31, 2025, is $998 million[113].

Financial Performance - Gray Media's 1Q25 total revenue exceeded guidance, reporting $782 million compared to the guidance of $764-$775 million[9] - Retransmission revenue in 1Q25 also surpassed guidance, reaching $379 million against a guidance of $375-$377 million[9] - Core revenue for 1Q25 aligned with guidance at $344 million[9] - Broadcasting expenses for 1Q25 were below the low end of guidance at $577 million, compared to the guidance of $582-$587 million[9] - Production companies' expenses for 1Q25 were also below the low end of guidance at $20 million, versus a guidance of $21-$22 million[9] - Corporate expenses for 1Q25 were below the low end of guidance at $32 million, compared to the guidance of $33-$35 million[9] - Adjusted EBITDA for the quarter ending March 31, 2025, was $160 million[12] - Net loss for the quarter ending March 31, 2025, was $9 million, compared to a net income of $88 million for the same period in 2024[12] - Total revenue for the year ending December 31, 2024, was $3644 million, compared to $3281 million in 2023[12] Debt and Leverage - Gray Media reduced debt principal by $17 million in 1Q25 and $520 million in 2024[13, 15] - As of March 31, 2025, the company had $240 million remaining under its debt repurchase authorization[15] - The leverage ratio at 1Q25 was 548x, with a leverage ratio denominator of $998 million[13] - First lien leverage ratio at 1Q25 was 292x[13] - Total outstanding principal including current portion was $5673 million as of March 31, 2025[20]

Exhibit 99.1 NEWS RELEASE Gray Media Announces First Quarter Financial Results Atlanta, Georgia – May 8, 2025. . . Gray Media, Inc. ("Gray," "Gray Media," "we," "us" or "our") (NYSE: GTN) today announced its financial results for the quarter ended March 31, 2025, which included total revenues above the high end of our guidance for the quarter. Total operating expenses were also below our guidance for the quarter. Moreover, for the first time since the COVID slowdown in 2020, our broadcasting operating expen ...