Gray Television(US:GTN)2023-05-05 16:39Revenue Performance - Total revenue for the three months ended March 31, 2023, decreased by $26 million, or 3%, to $801 million compared to $827 million in the same period of 2022[96]. - Core advertising revenue decreased by $8 million to $357 million, while retransmission consent revenue increased by $2 million to $395 million[95][96]. - Political advertising revenue dropped significantly by $18 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, driven by a $12 million rise in payroll expenses and a $13 million increase in non-payroll expenses[96]. - Interest expense increased by $25 million to $104 million in the 2023 period, mainly due to rising interest rates on the floating rate credit facility[104]. Cash Flow - Net cash provided by operating activities surged to $412 million in the 2023 period, up from $141 million in 2022, largely due to $339 million from the sale of accounts receivable[108]. - Net cash used in investing activities rose to $95 million in 2023, compared to $53 million in 2022, attributed to increased property and equipment purchases[109]. - Net cash used in financing activities increased significantly to $322 million in 2023 from $30 million in 2022, primarily due to debt repayments[110]. Debt and Financing - As of March 31, 2023, long-term debt was $6.162 billion, down from $6.455 billion at the end of 2022[108][113]. - The company entered into a three-year $300 million revolving accounts receivable securitization facility to provide additional liquidity[119]. Taxation - The effective income tax rate for the three months ended March 31, 2023, was 26%, compared to 25% in the same period of 2022[106]. - The company anticipates making income tax payments between $35 million and $45 million for the remainder of 2023[116]. - As of March 31, 2023, the company has approximately $344 million in state operating loss carryforwards, with an expectation that one-third will be utilized[116]. - The company carried back certain net operating losses during 2020, resulting in an outstanding refund of $21 million[117]. Capital Expenditures - 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 of the same range[114]. Market and Accounting - The market risk profile as of March 31, 2023, has not materially changed since December 31, 2022[122]. - Critical accounting policies related to intangible assets and income taxes are highlighted as requiring significant judgments and estimations[120]. Transactions - A transaction was completed on May 1, 2023, involving the sale of television station KNIN for $6 million and the purchase of WPGA for $6 million, expanding the television station portfolio to 102 markets[115]. - No contributions were made to the defined benefit pension plan during the 2023 three-month period, but a contribution of $4 million is expected for the remainder of 2023[118].