Revenue Performance - Total revenue for the six months ended June 30, 2025, was $1.6 billion, consistent with the same period in 2024, but decreased by $95 million or 6% year-over-year [100][117]. - Core advertising revenue decreased by $40 million or 5% in the six-month period, impacted by macro-economic softness and one less selling day due to Leap Day [117]. - Political advertising revenue decreased by $52 million or 70% in the six-month period, attributed to 2025 being the "off-year" of the two-year political advertising cycle [125]. - Retransmission consent revenue decreased by $4 million or 1% due to a decrease in subscribers, partially offset by an increase in rates [125]. Expenses - Broadcasting expenses decreased by $8 million or 1% to $1.1 billion in the six-month period [118]. - Corporate and administrative expenses were $57 million in the six-month period, with non-cash stock-based compensation expenses increasing to $12 million [119]. - Depreciation of property and equipment totaled $66 million for the six-month period, down from $72 million in 2024 [120]. - Amortization of intangible assets decreased to $57 million in the six-month period from $63 million in 2024 [121]. - Interest expense increased by $2 million to $235 million for the six-month period, with an average total interest rate of 7.4% [124]. Income and Cash Flow - Income tax expense for the six-month period ended June 30, 2025, was $6 million, compared to $38 million for the same period in 2024, resulting in an effective income tax rate of (10%) for 2025 versus 26% for 2024 [127]. - Net cash provided by operating activities increased to $163 million in the 2025 six-month period from $86 million in 2024, a net increase of $77 million, despite a $175 million decrease in net income [128]. - Cash on hand as of June 30, 2025, was $199 million, up from $135 million as of December 31, 2024 [128]. - Long-term debt as of June 30, 2025, was $5.59 billion, slightly down from $5.621 billion as of December 31, 2024 [128]. Debt Management - The company anticipates approximately $458 million in debt interest payments over the twelve months following June 30, 2025 [131]. - The company has authorized up to $250 million for debt repurchase, with approximately $232 million remaining available under this authorization [139]. - On July 18, 2025, the company issued the 2032 Notes and used the proceeds to repurchase $528 million of the 2027 Notes and repay $403 million of the 2024 Term Loan [140]. Acquisitions and Divestitures - The company entered into agreements for television station acquisitions and divestitures, which are expected to contribute to reducing the company's Leverage Ratio [142]. - On July 31, 2025, the company agreed to acquire two television stations from SGH for a total purchase price of less than $2 million [144]. - The company announced an agreement to acquire BCI's television stations for $80 million, including WDRB (FOX) and WBKI (CW) in Louisville, Kentucky, and WAND (NBC) in Springfield, Illinois [145]. - The company reached an agreement with AMG to acquire television stations in ten markets for $171 million, including WAAY (ABC) in Huntsville, AL and WEVV (CBS/FOX) in Evansville, IN [146]. - The company anticipates closing transactions with Scripps, SGH, BCI, and AMG in Q4 2025, pending regulatory approvals [147]. Capital Expenditures and Tax Matters - Routine capital expenditures are expected to be approximately $40 million to $45 million for the remainder of 2025, with anticipated reimbursements of about $20 million [148]. - The company made $39 million in federal or state income tax payments during the 2025 six-month period and expects no material income tax payments for the remainder of 2025 [149]. - As of June 30, 2025, the company has approximately $252 million in state operating loss carryforwards, with about $173 million expected to be unused due to limitations [149]. - The company did not contribute to its defined benefit pension plan during the 2025 six-month period and does not expect to contribute for the remainder of 2025 [152]. - The company is evaluating the impact of recent tax reform legislation on its financial statements, which may affect income taxes payable and deferred tax assets [151]. Market Risk - The market risk profile as of June 30, 2025, has not materially changed since December 31, 2024 [155].
Gray Television(GTN_A) - 2025 Q2 - Quarterly Report