Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $1 billion, an increase of 21% from Q4 2023 [12] - Net income attributable to common stockholders was $156 million in Q4 2024, compared to a net loss of $22 million in Q4 2023 [13] - Adjusted EBITDA was $402 million in Q4 2024, an increase of 86% from Q4 2023, primarily due to political advertising revenue [13] - Total principal debt was reduced by $520 million during 2024, exceeding the $500 million goal [14] Business Line Data and Key Metrics Changes - Political advertising revenue in Q4 2024 was $250 million, which displaced a significant amount of core advertising revenue [22] - Core advertising revenue showed hesitancy in Q4 2024, particularly among automobile advertising customers due to economic uncertainty [24] Market Data and Key Metrics Changes - Core advertising revenue for Q1 2025 is expected to decline by 7% to 8% compared to Q1 2024, influenced by political and economic uncertainty [25] - The company anticipates improvement in core advertising revenue pacing in Q2 2025 [44] Company Strategy and Development Direction - The company is focusing on enhancing local content offerings and expanding its sports broadcasting capabilities, including a deal to air Atlanta Braves games [15][16] - There is optimism regarding potential deregulation that could benefit local broadcasters and improve competitive positioning against tech giants [19][20] - The company is exploring partnerships for further development at Assembly Studios without significant capital expenditure [18][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing improvements in local sports broadcasting and potential regulatory changes that could benefit the company [19][20] - The company is preparing for the next political cycle in 2026, expecting significant cash flow from political advertising [34] Other Important Information - The company declared a quarterly common dividend of $0.08 per share, which is a small cash outflow [36] - The company is experiencing a decline in traditional MVPD subscribers but sees signs of improvement in subscriber retention rates [38] Q&A Session Summary Question: Can core ads move to growth on a full-year basis? - Management is encouraged by second-quarter pacing and believes core ads can grow, particularly as challenges in certain categories show improvement [44] Question: What factors are influencing expenses in Q1? - Approximately 2/3 to 75% of cost efficiencies are expected to flow through in Q1, with efforts to keep expense growth below inflation [48][49] Question: What is the total cost for the Assembly Atlanta project? - The total cost for the project is roughly $500 million [74] Question: How does the company view M&A opportunities with potential deregulation? - The company is open to smart deals and swaps, particularly if deregulation occurs, which could enhance local news content [86][120] Question: How is the company budgeting subscriber declines for this year? - The company expects the rate of subscriber declines to slow but is not projecting a material increase or decrease [91] Question: What are the expectations for network-affiliate relationships with deregulation? - The company is focused on relaxing market rules and improving network-affiliate relationships, particularly with virtual MVPDs [126]

Revenue and Income - Total revenue for 2024 increased by $363 million, or 11%, to $3.6 billion compared to 2023[208] - Core advertising revenue decreased by $24 million, while political advertising revenue increased by $418 million in 2024[210] - The company generated $1.49 billion from core advertising, contributing 41% to total revenue in 2024[207] - Miscellaneous income increased significantly to $117 million in 2024, primarily due to a $110 million gain from the sale of an investment[216] - Net cash provided by operating activities increased by $103 million to $751 million in 2024 compared to $648 million in 2023, primarily due to a $451 million increase in net income[224] Expenses and Costs - Broadcasting expenses increased by $49 million, or 2%, to $2.3 billion for 2024 compared to 2023[209] - Interest expense increased by $45 million, or 10%, to $485 million for 2024, primarily due to higher average interest rates[217] - The effective income tax rate increased to 24% for 2024 from 7% for 2023[220] - The company experienced moderate inflation in operating expenses and increased interest rates during 2024, which may adversely affect future operating results[250] Debt and Financing - The company completed several refinancing activities, resulting in a $520 million reduction in outstanding debt compared to December 31, 2023[206] - The company repurchased and retired $373 million of outstanding debt, utilizing $327 million in cash[205] - As of December 31, 2024, the principal outstanding of the company's long-term debt was $5.7 billion, down from $6.2 billion in 2023[279] - The fair value of the company's long-term debt as of December 31, 2024, was $4.6 billion, compared to $5.6 billion in 2023[279] - The company entered into a three-year $300 million revolving accounts receivable securitization facility to provide additional liquidity for debt repayment[247] Cash Flow and Investments - Net cash used in investing activities decreased by $263 million to $28 million in 2024 from $291 million in 2023, mainly due to reduced cash used for property and equipment purchases[225] - Net cash used in financing activities increased by $212 million to $609 million in 2024 compared to $397 million in 2023, with $474 million used for principal payments on long-term debt[226] - As of December 31, 2024, cash on hand was $135 million, a significant increase from $21 million in 2023[223] - The company anticipates that future cash flows from operations and borrowing availability will be sufficient to fund capital expenditures and debt service obligations for the foreseeable future[227] Capital Expenditures and Future Projections - Capital expenditures are expected to range between $85 million to $90 million during 2025, including reimbursements of approximately $25 million from the Doraville Community Improvement District[244] - The company estimates approximately $450 million in debt interest payments over the next twelve months following December 31, 2024[227] Asset Valuation and Impairment - As of December 31, 2024, the recorded value of broadcast licenses was $5.3 billion and goodwill was $2.6 billion[264] - For the annual impairment test in 2024, the company concluded that all evaluated broadcast licenses were not impaired based on qualitative assessments[260] - The company recorded a non-cash charge of $43 million for impairment of goodwill and other intangible assets due to the bankruptcy of Diamond Sports Group, LLC in 2023[265] - The company performed qualitative assessments for 56 broadcast licenses and three reporting units in 2024, compared to 59 licenses and one reporting unit in 2023[257] - The company utilizes a discounted cash flow model supported by a market multiple approach for estimating the fair value of its reporting units[261] Pension and Contributions - The Gray Pension Plan had a discount rate of 5.48% as of December 31, 2024, up from 4.79% in 2023[238] - Matching contributions to the Gray 401(k) Plan were approximately $28 million in 2024, compared to $26 million in 2023[240] Economic Risks and Management - The company manages economic risks, including interest rate and liquidity risks, through debt funding management and interest rate swap agreements[274] - The company entered into interest rate caps with a combined fixed notional value of approximately $1.9 billion, effective through December 31, 2025[277] - The interest rate caps limit the annual interest on variable rate debt to a maximum one-month SOFR rate of 5 percent, plus the Applicable Margin[277] - A 100 basis point increase in market interest rates would have increased the company's interest expense and decreased income before income taxes by $6 million for the year ended December 31, 2024[277] - A 100 basis point decrease in market interest rates would have decreased interest expense and increased income before income taxes by $6 million for the year ended December 31, 2024[277] - The company pays fixed interest rates on its 2031, 2030, 2029, 2027, and 2026 Notes, reducing the risk of potential interest rate increases[278]

Core Points - The Memphis Grizzlies, Gray Media, and FanDuel Sports Network will simulcast five upcoming Grizzlies games in Tennessee's largest media markets [1][2] - This partnership aims to enhance fan access to the Memphis Grizzlies through free over-the-air broadcasts [4] - The Grizzlies are currently performing well, ranking second in the NBA's Western Conference and fourth overall [2] Broadcast Details - In Memphis, games will be broadcast on WMC-TV, Action News Five channel 5.1, and simulcast on WMC-TV Plus, channel 5.3 [1] - In Nashville, broadcasts will occur on WSMV-TV, channel 4.1, and simulcast on the Tennessee Valley Sports and Entertainment Network, channel 4.2 [2] - In Knoxville, broadcasts will be available on WBXX, Knoxville's CW, channel 20.1, and MyVLT, MyNetworkTV, channel 8.2 [2] Game Schedule - The five-game schedule includes matchups against the Utah Jazz, Miami Heat, Oklahoma City Thunder, Golden State Warriors, and Dallas Mavericks, with specific dates and times provided [6] Broadcast Team - The FanDuel Sports Network Grizzlies broadcast team will include Pete Pranica, Brevin Knight, and sideline reporter Rob Fisher, featuring pregame and postgame shows [3]

Core Points - The Memphis Grizzlies, Gray Media, and FanDuel Sports Network will simulcast five upcoming Grizzlies games in Tennessee's largest media markets [1][4] - The partnership aims to enhance fan engagement by providing free, over-the-air broadcast options for the games [2][4] - The Grizzlies are currently performing well, ranking second in the NBA's Western Conference and fourth overall [2] Broadcast Details - In Memphis, games will be aired on WMC-TV, Action News Five channel 5.1, and simulcast on WMC-TV Plus, channel 5.3 [2] - In Nashville, broadcasts will occur on WSMV-TV, channel 4.1, and simulcast on the Tennessee Valley Sports and Entertainment Network, channel 4.2 [2] - In Knoxville, games will be shown on WBXX, Knoxville's CW, channel 20.1, and MyVLT, MyNetworkTV, channel 8.2 [2] Game Schedule - March 12 at 7:00 p.m. CT: Grizzlies vs Utah Jazz [7] - March 15 at 7:00 p.m. CT: Grizzlies vs Miami Heat [7] - March 27 at 7:00 p.m. CT: Grizzlies at Oklahoma City Thunder [7] - April 1 at 7:00 p.m. CT: Grizzlies vs Golden State Warriors [7] - April 13 at 2:30 p.m. CT: Grizzlies vs Dallas Mavericks [7] Company Background - Gray Media, Inc. is the largest owner of top-rated local television stations in the U.S., reaching approximately 37% of U.S. television households [5] - The company operates in 113 television markets and includes a diverse portfolio of media properties [5]

Financial Performance - Total revenue for the fourth quarter of 2024 was $1.0 billion, an increase of 21% from the fourth quarter of 2023[8] - Total revenue for the three months ended December 31, 2024, was $1,045 million, representing a 21% increase compared to $864 million in the same period of 2023[20] - Net income attributable to common stockholders was $156 million in the fourth quarter of 2024, compared to a net loss of $22 million in the fourth quarter of 2023[8] - Net income for the year ended December 31, 2024, was $375 million, a significant recovery from a net loss of $76 million in 2023[20] - Adjusted EBITDA was $402 million in the fourth quarter of 2024, an increase of 86% from the fourth quarter of 2023[8] - Adjusted EBITDA for the year ended December 31, 2024, was $1,162 million, up 42% from $816 million in 2023[20] - Core advertising revenue decreased by 8% to $380 million in Q4 2024 from $415 million in Q4 2023[20] - Total broadcasting revenue for the year increased by 11% to $3,539 million from $3,195 million in 2023[20] Advertising Revenue - Political advertising revenue in the fourth quarter of 2024 was $250 million, an increase of 658% from the fourth quarter of 2023[8] - Political advertising revenue surged to $250 million, a 658% increase compared to $33 million in Q4 2023[20] Debt and Leverage - The company reduced the outstanding principal amount of its debt by $520 million during 2024[3] - Long-term debt decreased to $5,621 million as of December 31, 2024, from $6,160 million in 2023[23] - The company’s total outstanding principal debt as of December 31, 2024, was $5,690 million, with a leverage ratio of 5.49, below the maximum permitted incurrence of 7.00 to 1.00[40] - As of December 31, 2024, the First Lien Leverage Ratio was 2.97 to 1.00 and the overall Leverage Ratio was 5.49 to 1.00[8] - Gray Media's borrowing availability under its Revolving Credit Facility increased to $674 million from $494 million[26] - The company incurred $485 million in interest expense for the year ended December 31, 2024, up from $440 million in 2023[38] Operating Expenses and Cash Flow - Operating expenses for the year were $2,793 million, a decrease from $2,898 million in 2023[20] - Cash provided by operating activities for the year was $751 million, compared to $648 million in 2023[23] Future Expectations - Core advertising revenue is expected to decline approximately 7% to 8% in the first quarter of 2025 compared to the first quarter of 2024[12] - The company anticipates achieving or exceeding an annual run-rate of $60 million in cost containment measures during the current quarter[13] - The company has a current authorization to repurchase up to $250 million of additional debt in the open market[14] - The company expects to receive approximately $35 million from agreements related to third-party leases for space at Gray-owned tower sites[7] Other Financial Metrics - The impairment of investments for the three months ended December 31, 2024, was $25 million, compared to $21 million in the same period of 2023[37] - Gray Media's depreciation expense for the year ended December 31, 2024, was $144 million, slightly down from $145 million in 2023[38] - The company reported a loss on disposal of assets of $20 million for the year ended December 31, 2024, compared to a loss of $21 million in 2023[38] - Common stock dividends for the year ended December 31, 2024, were $32 million, an increase from $30 million in 2023[38] Conference Call - Gray Media plans to host a conference call on February 27, 2025, to discuss its fourth quarter operating results[27]

Financial Performance - Gray Media reported quarterly earnings of $1.59 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.24 per share a year ago [1] - The company posted revenues of $1.05 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.19%, and up from $864 million in the previous year [2] - Over the last four quarters, Gray Media has surpassed consensus revenue estimates two times [2] Stock Performance - Gray Media shares have increased approximately 22.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $795 million, and -$0.28 on revenues of $3.23 billion for the current fiscal year [7] - The estimate revisions trend for Gray Media is favorable ahead of the earnings release, which may influence future stock movements [6][5] Industry Context - The Broadcast Radio and Television industry, to which Gray Media belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a positive outlook for the sector [8]

Core Insights - Gray Media, Inc. reported financial results for Q4 2024, with total revenue reaching $1.0 billion, a 21% increase from Q4 2023, and political advertising revenue soaring by 658% to $250 million [7][19] - The company achieved a net income of $156 million in Q4 2024, a significant turnaround from a net loss of $22 million in Q4 2023 [7][18] - For the full year 2024, Gray Media generated $497 million in political advertising revenue, the highest among peers, and reduced outstanding debt by $520 million [1][19] Financial Performance - Total operating expenses for Q4 2024 were $648 million, 2% below the low end of guidance [1] - Adjusted EBITDA for Q4 2024 was $402 million, an 86% increase from Q4 2023, primarily driven by political advertising revenue [7][18] - The company ended 2024 with a First Lien Leverage Ratio of 2.97 to 1.00 and a total Leverage Ratio of 5.49 to 1.00 [7][34] Strategic Developments - Gray Media enhanced local content offerings, optimized cost structure, and strengthened its balance sheet throughout 2024 [2] - In December 2024, the company entered agreements to receive approximately $35 million for leasing rights at its tower sites, retaining ownership and control of the sites [5] - Cost containment measures are expected to achieve or exceed an annual run-rate of $60 million during Q1 2025 [10] Future Guidance - For Q1 2025, core advertising revenue is anticipated to decline by approximately 7% to 8% compared to Q1 2024, influenced by the Super Bowl airing on different channels [9] - The company expects to see strong double-digit growth in digital advertising revenue and from local customers who have not previously purchased advertising [9] - Guidance for total revenue in Q1 2025 is projected to be between $764 million and $775 million [12]

Core Viewpoint - Gray Media (GTN) is anticipated to report a significant year-over-year increase in earnings and revenues for the quarter ended December 2024, with earnings per share (EPS) expected to be $1.59, reflecting a 762.5% increase, and revenues projected at $1.04 billion, a 20.7% rise from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for February 27, and the stock may experience upward movement if the reported figures exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 11.77% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates the prediction of an earnings beat [10][11]. - Despite the Earnings ESP being neutral, the stock holds a Zacks Rank of 2, indicating a potential for positive performance [11]. Historical Performance - In the last reported quarter, Gray Media was expected to post earnings of $0.94 per share but delivered only $0.86, resulting in a surprise of -8.51% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - While Gray Media does not currently appear to be a strong candidate for an earnings beat, investors should consider other influencing factors when making decisions regarding the stock ahead of the earnings release [16].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Gray Media Inc. (GTN) as a potentially undervalued stock based on various financial metrics [2][4][6] Company Analysis - Gray Media Inc. (GTN) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - The stock is trading at a P/E ratio of 28.08, which is lower than the industry average P/E of 30.07, suggesting it may be undervalued [4] - GTN's Forward P/E has fluctuated between a high of 54.90 and a low of -64.84 over the past year, with a median of 2.29, indicating volatility in earnings expectations [4] - The P/S ratio for GTN is 0.11, significantly lower than the industry average P/S of 0.3, reinforcing the notion of undervaluation [5] Investment Outlook - The combination of GTN's favorable Zacks Rank, strong value metrics, and positive earnings outlook positions it as a compelling investment opportunity for value investors [3][6]

Group 1 - Gray Media has appointed Blake Sebo as the General Manager of KTUU and KYES, its NBC and CBS affiliates in Anchorage, Alaska [1] - Blake Sebo has nearly twenty years of experience in the broadcast television industry, previously serving as a Sales Manager at KHBS/KHOG-TV and as Marketing and Research Director at KFSM-TV [2] - Gray Media is the largest owner of top-rated local television stations in the U.S., reaching approximately 37 percent of U.S. television households [4] Group 2 - Gray Media's portfolio includes 78 markets with the top-rated television station and 99 markets with the first and/or second highest rated television station during 2024 [4] - The company also owns Gray Digital Media, which provides digital marketing strategies and services [4] - Gray Media has additional media properties including video production companies and studio production facilities [4]