ATLANTA, May 07, 2024 (GLOBE NEWSWIRE) -- Gray Television, Inc. ("Gray," "we," "us" or "our") (NYSE:GTN) today announced financial results for the first quarter ended March 31, 2024, reflecting our total revenue of $823 million and total operating expenses (before depreciation, amortization and loss on disposal of assets) of $632 million. Overall, we believe that our businesses have started 2024 in a strong position. The first quarter of 2024 produced strong core advertising results, including $372 million in core advertising revenue, an increase of $15 million or 4% compared to 2023. Our core advertising business has more than fully recovered from the pandemic, with core advertising revenues 3% higher in the first quarter of 2024 than the corresponding quarter of the pre-pandemic year of 2019. Our first quarter results benefited from continued strong advertiser demand for our local content including numerous professional sporting events on our stations, from the Super Bowl to local packages of NBA games. We believe these solid results are attributable to real-world confidence among advertisers and businesses in local markets who rely on our high-quality television stations to reach local audiences. Our portfolio and strong local news stations is positioned well to capitalize on competitive political races in dozens of markets across the country, although we do not yet have sufficient visibility to provide guidance for political advertising revenue for the full year.  We continue to anticipate strong political advertising revenues for the full year that will materialize later in the year than they historically have done. Consistent with expectations, we are currently guiding for political advertising revenue in the second quarter of 2024 to range between 55% and 72% higher than the second quarter of 2020. On February 8, 2024, we received $110 million in pre-tax cash proceeds from the closing of the previously announced sale of Broadcast Music, Inc. ("BMI"). Fifty million dollars of the net proceeds from the sale of BMI were used to pay in full the amount then outstanding under our Revolving Credit Facility. Also, in addition to our required minimum principal payments that were paid during the first quarter, on April 1, 2024, we used a further $50 million of cash on hand to voluntarily pre-pay additional portions of our outstanding term loans. On February 16, 2024, we completed an extension and upsizing of our revolving credit facility. Due to strong demand, our banking group increased their commitments to our revolving credit facilities to $625 million, which includes a new $552.5 million revolving credit facility maturing on December 31, 2027, and $72.5 million facility maturing on December 1, 2026. On May 6, 2024, our Board of Directors authorized us to use up to $250 million of available liquidity to repurchase our outstanding indebtedness through December 31, 2025. The extent of such repurchases, including the amount and timing of any repurchases, will depend on general market conditions, regulatory requirements, alternative investment opportunities and other considerations. This repurchase program does not require us to repurchase a minimum amount of debt, and it may be modified, suspended or terminated at any time without prior notice. Summary of First Quarter Operating Results Operating Highlights (the respective 2024 periods reflect the "on-year" of the two-year political advertising cycle): Total revenue was $823 million, an increase of 3% from the first quarter of 2023. Core Advertising Revenue was $372 million, an increase of 4% from the first quarter of 2023. In the first quarter of 2024, we earned approximately $18 million of net revenue from the broadcast of the Super Bowl on our 54 CBS channels compared to an aggregate of $6 million of net revenue relating to the broadcast of the Super Bowl on our 27 FOX channels during the first quarter of 2023. Net income attributable to common stockholders was $75 million, or $0.79 per fully diluted share, a significant improvement compared to a loss of $44 million, or $0.48 per fully diluted share, in the first quarter of 2023. Adjusted EBITDA was $197 million, an increase of 21% from the first quarter of 2023. Other Key Metrics As of March 31, 2024, our Leverage Ratio, which is calculated as set forth in our Senior Credit Agreement, was 5.63 to 1.00. Non-cash stock compensation was $6 million during the first quarter of 2024, and $2 million in the first quarter of 2023. Taxes During the first quarter of 2024 and 2023, we did not make any material income tax payments. During the remainder of 2024, we currently anticipate making income tax payments within a range of $195 million to $215 million. As of March 31, 2024, we have an aggregate of $282 million of various state operating loss carryforwards, of which we currently expect that approximately $201 million will not be utilized. During 2020, we carried back certain net operating losses to offset taxable income reported in earlier years, resulting in a refund to us of $23 million, including interest, that was collected in the second quarter of 2024. Guidance Based on our current forecasts for the quarter ending June 30, 2024, we anticipate the following key financial results, as outlined below in approximate ranges and as compared to the quarter ending March 31, 2024, as well as certain currently anticipated full-year financial results. As always, guidance may change in the future based on a number of factors and therefore may not reflect actual results:     Quarter Ending           March 31, 2024(Actual)   June 30, 2024(Guidance)   December 31, 2024Approximate EstimatesAs of May 7, 2024(Guidance)         Low   High         (in millions)   Revenue (less agency commissions):                   Core advertising   $ 372   $ 379   $ 385   $ 1,600   Political     27     45     50       Retransmission consent     381     370     375     1,500   Production companies     24     18     19     105   Other     19     16     17     70   Total revenue   $ 823   $ 828   $ 846                           Operating expenses (excluding deperciation, amortization and loss on disposal of assets):       Broadcasting:                   Station expenses   $ 348   $ 339   $ 344   $ 1,410   Network affiliation fees     234     235     235     935   Non-cash stock-based compensation     1     1     1     5   Total broadcasting expense   $ 583   $ 575   $ 580   $ 2,350                       Production companies   $ 21   $ 16   $ 17   $ 85                       Corporate and administrative:                   Corporate expenses   $ 23   $ 28   $ 33   $ 106   Non-cash stock-based compensation     5     5     5     19   Total corporate and administrative expense   $ 28   $ 33   $ 38   $ 125                                       Approximate Estimates                   As of May 7, 2024(Guidance)   Annual 2024 estimated supplemetal information:             (in millions)   Interest expense               $ 440   Amortization of deferred financing costs               $ 12   Preferred stock dividends               $ 52   Common stock dividends               $ 32   Total capital expenditures, excluding Assembly Atlanta           $115-$120   Capital expenditures for Assembly Atlanta, net of anticipated reimbursements       $ 15   Income tax payments               $195-$215                             Selected Operating Data (Unaudited)                                   Three Months Ended March 31,                     % Change         % Change               2024 to         2024 to     2024   2023     2023