Revenue Performance - Total revenue decreased by $26 million, or 3%, to $801 million for the three months ended March 31, 2023, compared to $827 million in the same period of 2022[96]. - Core advertising revenue was $357 million, contributing 45% to total revenue, down from $365 million and 44% in the prior year[95]. - Retransmission consent revenue increased by $2 million to $395 million, representing 49% of total revenue, compared to $393 million in the previous year[95]. - Political advertising revenue fell by $18 million to $8 million, primarily due to 2023 being an "off-year" in the election cycle[96]. Expenses - Broadcasting expenses increased by $25 million, or 5%, to $555 million in the 2023 period[96]. - Interest expense rose by $25 million to $104 million, attributed to higher interest rates on the floating rate 2019 Senior Credit Facility, which increased to 7.3%[104]. Cash Flow - Net cash provided by operating activities was $412 million in the 2023 period, a significant increase of $271 million from $141 million in 2022[108]. - Net cash used in investing activities increased to $95 million in 2023 from $53 million in 2022, mainly due to higher property and equipment purchases[109]. Debt and Capital Expenditures - Long-term debt as of March 31, 2023, was $6.162 billion, down from $6.455 billion at the end of 2022[108]. - The company anticipates making approximately $434 million in debt interest payments over the twelve months following March 31, 2023[111]. - Routine capital expenditures are expected to be approximately $86 million to $96 million for the remainder of 2023, excluding Assembly Atlanta expenditures[114]. - Assembly Atlanta construction expenditures are projected to be in the range of $95 million to $100 million, offset by expected proceeds from property sales and CID incentive payments also estimated at $95 million to $100 million[114]. Transactions and Tax - The company completed a transaction on May 1, 2023, selling television station KNIN for $6 million and purchasing WPGA for $6 million, expanding its portfolio to 102 markets[115]. - Anticipated income tax payments for the remainder of 2023 are expected to be between $35 million and $45 million[116]. - The company expects to contribute $4 million to its defined benefit pension plan during the remainder of 2023[118]. - The company has approximately $344 million in state operating loss carryforwards, with an expectation that about one-third will be utilized[116]. - The company carried back certain net operating losses in 2020, resulting in an outstanding refund of $21 million[117]. Accounting and Forward-Looking Statements - Critical accounting policies related to intangible assets and income taxes are highlighted as requiring significant judgments and estimations[120]. - Forward-looking statements reflect management's expectations and are subject to risks and uncertainties that may cause actual results to differ materially[121].
Gray Television(GTN_A) - 2023 Q1 - Quarterly Report