Revenue Performance - Total revenue for the nine months ended September 30, 2025, was $2.3 billion, a decrease of $296 million or 11% compared to $2.6 billion in the same period of 2024[91] - Core advertising revenue decreased by $50 million, or 5%, primarily due to macro-economic softness, with political advertising revenue decreasing by $217 million, or 88%[117] - Political advertising revenue saw a significant decline of $165 million, or 95%, in the three months ended September 30, 2025, consistent with it being an "off-year" in the election cycle[109] - Core advertising revenue decreased by $10 million or 3% in the three months ended September 30, 2025, primarily due to a $16 million revenue drop from the broadcast of the 2024 Olympic Games[109] - Total revenue decreased by $296 million, or 11%, in the 2025 nine-month period compared to the 2024 nine-month period[117] Expenses - Broadcasting expenses decreased by $29 million, or 5%, to $542 million in the three months ended September 30, 2025[106] - Broadcasting expenses decreased by $37 million, or 2%, to $1.7 billion in the 2025 nine-month period[118] - Corporate and administrative expenses increased by $4 million, or 17%, to $28 million, primarily due to increased professional services related to pending business combination transactions[108] - Corporate and administrative expenses increased by $5 million to $85 million, with professional services costs rising due to pending business combination transactions[119] - Interest expense decreased by $10 million to $120 million in the three months ended September 30, 2025, due to a reduction in outstanding debt and lower interest rates[114] - Interest expense decreased by $8 million, or 2%, to $355 million, with an average outstanding total long-term debt balance of $5.7 billion[125] Cash Flow and Tax - Net cash provided by operating activities was $177 million in the 2025 nine-month period, down from $383 million in the 2024 nine-month period[128] - Net cash used in investing activities was $34 million in the 2025 nine-month period, compared to net cash provided of $10 million in the 2024 nine-month period[129] - The effective income tax benefit rate for the three months ended September 30, 2025, was 64%, compared to an income tax expense rate of 25% in the same period of 2024[116] - The company recognized an income tax benefit of $12 million in the 2025 nine-month period, compared to an income tax expense of $70 million in the 2024 nine-month period[127] - The company made $39 million in federal or state income tax payments during the 2025 three and nine-month period, with no material income tax payments expected for the remainder of 2025[147] Debt and Financing - The company issued $900 million in 2032 Notes (2L) and $775 million in 2033 Notes (1L) to refinance existing debt and pay transaction expenses[98][100] - The company anticipates making approximately $453 million in debt interest payments over the twelve months following September 30, 2025[131] - As of September 30, 2025, long-term debt included $1.25 billion in 2029 Notes and $1.2 billion in 2031 Notes, with total commitments under the Senior Credit Facility amounting to $1.5 billion[141] - The company has approximately $232 million of availability remaining under its debt repurchase authorization, which allows for the repurchase of outstanding indebtedness[142] - The company has total outstanding principal secured by a first lien of $2,774 million, resulting in a First Lien Adjusted Total Indebtedness of $2,592 million[139] Acquisitions and Capital Expenditures - The company entered into agreements for television station acquisitions and divestitures, expecting to enter six new markets and create 11 new full-power "duopolies" of stations affiliated with a "Big Four" network[144] - The total purchase price for the acquisitions includes $2 million for SGH, $80 million for BCI, and $171 million for AMG, with additional non-cash swaps involved[146] - Capital expenditures for the remainder of 2025 are expected to be in the range of $37 million to $42 million, with anticipated reimbursements of approximately $25 million from the Doraville Community Improvement District[146] Impairment and Adjustments - The company recorded a non-cash impairment charge of $28 million related to changes in network affiliation at one station during the 2025 nine-month period[121] - As of September 30, 2025, the company reported a net income of $290 million, with total adjustments to reconcile from net income to Leverage Ratio Denominator amounting to $1,909 million[139] - The First Lien Leverage Ratio was reported at 2.72, while the Secured Leverage Ratio stood at 3.66, both below the maximum permitted incurrence levels of 3.5 to 1.00 and 5.50 to 1.00 respectively[139]
Gray Television(GTN_A) - 2025 Q3 - Quarterly Report