Group 1: Core Initiative - Graham Media Group and Gray Media have launched a donation drive to support flood relief efforts in Texas, raising over $120,000 in the first 24 hours, including a $25,000 contribution from Gray and an additional $15,000 from Graham Media Group [1][2] - The campaign aims to provide essential resources such as food, housing, and financial aid to communities affected by the floods, with 100% of the funds raised going directly to on-the-ground efforts [2][3] Group 2: Company Commitment - Graham Media Group's CEO emphasized the responsibility of broadcasters to inform and assist communities during crises, highlighting the role of The Salvation Army's rapid response teams in providing essential services [2] - Gray Media's Co-CEO expressed commitment to serving affected communities for as long as necessary, acknowledging the generous response from viewers [2] Group 3: Company Background - Graham Media Group operates seven local media outlets and is involved in various digital media and marketing solutions, serving multiple states and communities [4] - Gray Media, headquartered in Atlanta, is the largest owner of local television stations in the U.S., reaching approximately 37% of U.S. television households and owning a diverse portfolio of media properties [5][6]

Core Insights - Lee Enterprises, Inc. is hosting a "Draw Off" event series featuring editorial cartoonists Phil Hands and Adam Zyglis alongside D.J. Coffman from VeeFriends, aimed at blending local news with a broader digital audience through creativity and storytelling [1][3][4] Event Details - The events will be streamed live on Facebook, with the first session on May 20, 2025, featuring Phil Hands, and the second on May 22, 2025, featuring Adam Zyglis [2][4] - Each session will last one hour, allowing viewers to engage by commenting and voting while the cartoonists create new sketches in real time [2][3] Company Background - Lee Enterprises serves 72 markets across 25 states, focusing on quality journalism and digital innovation to provide valuable content and advertising solutions [5] - VeeFriends is an entertainment company that creates a universe of over 250 characters, promoting storytelling and community-driven experiences [6]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $782 million, a decrease of 5% from Q1 2024, but 1% above the high end of guidance [8] - Net loss was $9 million in Q1 2025 compared to net income of $88 million in Q1 2024 [10] - Adjusted EBITDA was $160 million in Q1 2025, a decrease of 19% from Q1 2024 [10] - Total operating expenses were 1% below the low end of previously announced guidance [9] Business Line Data and Key Metrics Changes - Core advertising revenue for Q1 2025 was down 8% compared to Q1 2024, primarily due to the Super Bowl airing on different channels [18] - Political advertising revenue exceeded expectations, coming in at $13 million against a guidance of $2 million to $4 million [21] - Digital advertising revenue was up double digits, indicating growth in this segment [20] Market Data and Key Metrics Changes - Automotive advertising revenue was down in high single digits, reflecting ongoing macroeconomic uncertainties [18] - Categories linked to consumer discretionary spending, such as restaurants and department stores, were soft, while essential categories like education and financial services performed better [20] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing its balance sheet, with a top capital allocation priority being debt reduction [24] - There is a commitment to enhancing local content offerings and entering new sports rights agreements to increase relevance in local markets [12][13] - The company is exploring opportunities for mergers and acquisitions, particularly in creating new duopolies [30][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for a more favorable regulatory environment that could facilitate strategic transactions [34] - There is cautious optimism regarding the second half of the year, particularly in political advertising, despite overall uncertainty in the advertising market [50] - Management noted that the recent trade deal with the UK could stabilize the advertising market, which has been affected by uncertainties [51] Other Important Information - The company declared a quarterly dividend of $0.08 per share [12] - The Assembly Studios project is progressing, with multiple productions currently shooting and plans for future developments [15][69] Q&A Session Summary Question: What are the most attractive options for market expansion? - Management is actively pursuing various opportunities and is optimistic about potential regulatory changes that could allow for new duopolies [30][34] Question: How does the new regulatory environment affect affiliate negotiations? - Management is encouraged by the changing tone from regulators regarding local news and broadcasters, which may positively impact negotiations [37][62] Question: Are there any cancellations in advertising? - There are no cancellations, but there is hesitancy in booking ads due to economic uncertainty [48] Question: What is the outlook for political advertising? - Political ad buys are currently strong, with significant orders coming in, indicating a positive trend for the upcoming election cycle [58] Question: What is the status of Assembly Studios? - Assembly Studios is currently around 75% to 80% leased, with ongoing inquiries and productions actively shooting [75][69]