Revenue Performance - Total revenue for the nine months ended September 30, 2024, was $2.6 billion, an increase of 8.3% from $2.4 billion in the same period of 2023[109]. - Total revenue increased by $182 million, or 8%, in the 2024 nine-month period compared to the 2023 nine-month period[130]. - Political advertising revenue surged by $201 million, or 437%, during the 2024 nine-month period[130]. - Core advertising revenue increased by $2 million, or 1%, during the same three-month period, aided by $20 million from the broadcast of the 2024 Olympic Games[120]. - Political advertising revenue surged by $147 million, or 565%, in the three-month period ended September 30, 2024, compared to the same period in 2023[120]. Expenses and Cost Management - Broadcasting expenses increased by $14 million, or 3%, to $571 million in the three-month period ended September 30, 2024[121]. - Broadcasting expenses rose by $55 million, or 3%, totaling $1.7 billion in the 2024 nine-month period[131]. - Production company expenses decreased by approximately $31 million to $57 million in the 2024 nine-month period[132]. - Cost containment initiatives are expected to reduce operating expenses by at least $60 million on an annualized basis starting in August 2024[116]. Debt and Financing - The company undertook refinancing activities, including amending its Senior Credit Facility to increase commitments to $680 million and extending the maturity date to December 31, 2027[114]. - A projected reduction of $500 million in Adjusted Total Indebtedness is anticipated for the full year 2024[115]. - Long-term debt decreased to $5.893 billion as of September 30, 2024, from $6.160 billion as of December 31, 2023[142]. - The total outstanding principal, including the current portion, was $5.969 billion, with an adjusted total indebtedness of $5.906 billion, resulting in a leverage ratio of 5.67[153]. - The company has long-term debt obligations totaling $4.6 billion, including $1.3 billion outstanding of 2031 Notes[155]. - The company authorized a debt repurchase program of up to $250 million, with $72 million used to repurchase $79 million of 2027 Notes, resulting in a $7 million gain[156]. Cash Flow and Income - Net cash provided by operating activities was $383 million in the 2024 nine-month period, down from $565 million in the 2023 nine-month period[142]. - Net cash provided by investing activities was $10 million in the 2024 nine-month period, compared to net cash used of $259 million in the 2023 nine-month period[143]. - Cash on hand as of September 30, 2024, was $69 million, up from $21 million as of December 31, 2023[142]. - As of September 30, 2024, the company reported a net income of $316 million[152]. Taxation - The effective income tax rate for the three-month period ended September 30, 2024, was 25%, compared to (8%) in the same period of 2023[129]. - The effective income tax rate was 25% in the 2024 nine-month period, compared to 4% in the 2023 nine-month period[141]. - During the nine months ended September 30, 2024, the company made federal or state income tax payments totaling $130 million[160]. - The company anticipates making income tax payments of approximately $3 million in the fourth quarter of 2024[160]. Interest Expense - Interest expense rose by $19 million, or 17%, to $130 million for the three-month period ended September 30, 2024, primarily due to increased interest rates[127]. - Interest expense increased by $39 million, or 12%, to $363 million in the 2024 nine-month period[139]. Capital Expenditures - Capital expenditures for the full year 2024 are expected to be $135 million, including $35 million related to Assembly Atlanta[158]. Other Transactions - The company completed a transaction on July 1, 2024, selling two television stations for a non-cash loss of $14 million[159]. - The first lien leverage ratio was reported at 3.00, below the maximum permitted of 3.50[153]. - The secured leverage ratio was also reported at 3.00, below the maximum permitted of 5.50[153].
Gray Television(GTN_A) - 2024 Q3 - Quarterly Report