Core Advertising Revenue - Local Media division core advertising revenue increased by 2% in Q3, driven by services category and national advertising growth due to strong sales execution and Scripps' sports strategy [1] - The company anticipates strong core revenue growth in Q4, supported by a new agreement with the NHL's Tampa Bay Lightning and growth in live sports markets [1] Financial Performance - E.W. Scripps reported a revenue decline of 18.6% year-on-year to $525.9 million in Q3, meeting Wall Street's expectations [2][6] - Free Cash Flow was -$15.07 million, down from $127.4 million in the same quarter last year [2] - Operating margin decreased to 7.2%, down from 18.8% in the same quarter last year [2][9] Revenue Growth and Projections - Over the last five years, E.W. Scripps experienced a sluggish sales growth rate of 6.5% compounded annually, which is below the standard for the consumer discretionary sector [4] - Analysts project a further revenue decline of 1.5% over the next 12 months, indicating a lack of excitement regarding the company's newer products and services [6] Cost Management and Profitability - The Scripps Networks division achieved a 27% margin, aided by a 7% reduction in expenses [1] - Despite a higher efficiency reflected in the operating margin averaging 7.5% over the last two years, the company still faces challenges with profitability [8] Strategic Moves - Scripps announced the sale of two network-affiliated stations for total proceeds of $123 million, aligning with its strategy to optimize its portfolio and improve local station performance [1] - The company successfully closed on the placement of $750 million in new senior secured second-lien notes, which were used to pay off existing debt [1]

Core Viewpoint - Gray Media, Inc. is set to release its earnings results for the quarter ended September 30, 2025, on November 7, 2025, and will host a conference call to discuss these results [1]. Group 1: Earnings Announcement - Gray Media, Inc. will announce its earnings results for Q3 2025 on November 7, 2025 [1]. - A conference call and webcast will be held on the same day at 11:00 a.m. Eastern Time to discuss the operating results [1]. - The live dial-in number for the conference call is 1-800-715-9871, with a conference ID of 3663076 [1]. Group 2: Company Overview - Gray Media, Inc. is the largest owner of top-rated local television stations and digital assets in the U.S., serving 113 television markets [2]. - The company reaches approximately 37 percent of U.S. television households, with 78 markets having the top-rated television station [2]. - Gray Media also owns the largest Telemundo Affiliate group with 44 markets and operates Gray Digital Media, a full-service digital agency [2].

Financial Performance - Gray Media's 2Q25 total revenue exceeded guidance, reaching $772 million [9] - Core advertising revenue for 2Q25 was $361 million, a 3% decline [9] - Retransmission revenue for 2Q25 was $369 million, aligning with guidance [9] - Adjusted EBITDA for the six months ending June 30, 2025, was $329 million [11] - The company reduced debt principal by $22 million in 2Q25 [12] Debt and Leverage - As of 2Q25, Gray Media's leverage ratio was 560x [12] - First lien leverage ratio at 2Q25 was 299x [12] - Total outstanding principal secured by a first lien as of June 30, 2025, was $3112 billion [15] - Adjusted Total Indebtedness was $5460 billion as of June 30, 2025 [15] Strategic Initiatives - Gray Media is focused on a multi-pronged deleveraging approach, including refinancing and debt reduction [21] - The company issued 9625% 2L Secured Notes to extend portfolio duration and reduce 1L leverage [23]

Group 1 - Gray Media stations and InvestigateTV received awards for outstanding investigative journalism at the IRE annual conference [1][2] - WANF in Atlanta and InvestigateTV won Video Division II for their investigation "In Plane Sight: The Fix," which led to significant changes in the US Department of Justice's practices [2] - WSMV in Nashville won Video Division III for "Predator: System Failure," revealing serious flaws in the handling of sexual assault complaints and resulting in the arrest of a predator [2] - KMOV in St. Louis was a finalist in Video Division III for "Secrets of a School Shooting Revealed," uncovering critical information about a school shooting and the failures that allowed it to occur [2] Group 2 - Gray Media, Inc. is the largest owner of local television stations in the US, serving 113 television markets and reaching approximately 37% of US television households [3] - The company operates 78 markets with top-rated television stations and has the largest Telemundo Affiliate group with 44 markets [3] - Gray Media also includes Gray Digital Media, which provides advanced digital marketing strategies, and owns various video production companies and studio facilities [3]

Financial Performance - Gray Media's 1Q25 total revenue exceeded guidance, reporting $782 million compared to the guidance of $764-$775 million[9] - Retransmission revenue in 1Q25 also surpassed guidance, reaching $379 million against a guidance of $375-$377 million[9] - Core revenue for 1Q25 aligned with guidance at $344 million[9] - Broadcasting expenses for 1Q25 were below the low end of guidance at $577 million, compared to the guidance of $582-$587 million[9] - Production companies' expenses for 1Q25 were also below the low end of guidance at $20 million, versus a guidance of $21-$22 million[9] - Corporate expenses for 1Q25 were below the low end of guidance at $32 million, compared to the guidance of $33-$35 million[9] - Adjusted EBITDA for the quarter ending March 31, 2025, was $160 million[12] - Net loss for the quarter ending March 31, 2025, was $9 million, compared to a net income of $88 million for the same period in 2024[12] - Total revenue for the year ending December 31, 2024, was $3644 million, compared to $3281 million in 2023[12] Debt and Leverage - Gray Media reduced debt principal by $17 million in 1Q25 and $520 million in 2024[13, 15] - As of March 31, 2025, the company had $240 million remaining under its debt repurchase authorization[15] - The leverage ratio at 1Q25 was 548x, with a leverage ratio denominator of $998 million[13] - First lien leverage ratio at 1Q25 was 292x[13] - Total outstanding principal including current portion was $5673 million as of March 31, 2025[20]