美国
证券交易委员会
华盛顿特区20549
表格
(做一个标记)
截至2024年6月30日季度结束
过渡期间从_________ 至_________ 。
委员会文件编号
| 灰色电视台公司。 |
| （依凭章程所载的完整登记名称） |
| | | |
| (成立地或组织其他管辖区) | （国税局雇主身份识别号码） | |
| | | |
| (总部办公地址) | （邮递区号） |
| ( |
| (注册公司之电话号码，包括区号) |
| 不适用 |
| (如自上次报告以来有更改，请提供前名称、前地址和前财政年度。) |
根据法案第12(b)条规定注册的证券：
| 每个类别的标题 | 交易标的（s） | 每个注册交易所的名称 |
请复选，以表示以下情况：（1）在过去12个月内（或对于公司必须提交此类报告的更短时期），公司已提交证券交易法案第13条或第15(d)条要求提交的所有报告；并且（2）公司在过去90天内一直受到此类报告要求的限制。
在前12个月内（或公司需要提交这些文件的较短时间内），公司是否已通过选中标记表明已阅读并提交了应根据S-t法规第405条规定（本章第232.405条）提交的所有互动式数据文件？
勾选此格以指示登记人是否为大型高速进行申报的申报人、高速进行申报的申报人、非高速进行申报的申报人、较小型报告公司或新兴成长公司。请参阅《交易所法令》第120亿2条中有关“大型高速进行申报人”、“高速进行申报人”、“较小型报告公司”和“新兴成长公司”的定义。
| 加速提交人 ☐ | |||
| 非加速申报者 ☐ | 较小的报告公司 | ||
| 新兴成长型公司 |
如果是新兴成长型企业，在符合任何依据证券交易法第13(a)条所提供的任何新的或修改的财务会计准则的遵循的延伸过渡期方面，是否选择不使用核准记号进行指示。☐
在核准的名册是否属于壳公司（如股市法规第1202条所定义之意义）方面，请用勾选符号表示。是
请指示每一类常股的流通股份数目，截至最近实际可行日期。
| 普通股（无面值） | A类普通股（无面值） | |
| | |
指数
灰色电视公司。
| 第一部分。 |
财务信息 |
页码 |
| 项目 1。 |
基本报表 |
|
| 未经审核的总合资产负债表 - 2024年9月30日和2023年12月31日 |
3 |
|
| 未经审核的综合营运报表 - 截至2024年9月30日和2023年的三个月和九个月 |
5 |
|
| 未经审核的综合损益报表 - 截至2024年9月30日和2023年的三个月和九个月 |
6 |
|
| 未经审核的股东权益简明综合基本报表──截至2024年和2023年3月31日、6月30日和9月30日的三个月期间 |
7 |
|
| 未经审核的简明综合基本报表──截至2024年和2023年9月30日的九个月期间现金流量简表 |
9 |
|
| 未经审核的简明综合基本报表附注 |
10 |
|
| 项目2。 |
管理层对财务状况和营运成果的讨论与分析 |
26 |
| 项目3。 |
市场风险的定量和定性披露。 |
35 |
| 项目 4。 |
内部控制及程序 |
35 |
| 第二部分。 |
其他信息 |
|
| 项目 1。 | 法律诉讼 | 35 |
| 项目1A。 |
风险因素 |
35 |
| 项目5。 |
其他信息 |
36 |
| 第6项。 |
展品 |
36 |
| 签名 |
37 |
| 第一部分。 |
财务信息 |
| 项目1. |
基本报表 |
格雷电视，有限公司。
简明合并资产负债表（未经审计）
(单位：百万)
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 资产: | ||||||||
| 流动资产： | ||||||||
| 现金 | $ | $ | ||||||
| 应收账款，减去信用损失准备金 $ 和 $, 分别 | ||||||||
| 当前节目广播权的净资产 | ||||||||
| 应收所得税退款 | ||||||||
| 预付所得税 | ||||||||
| 预付账款及其他流动资产 | ||||||||
| 总流动资产 | ||||||||
| 物业及设备（净额） | ||||||||
| 经营租赁使用权资产 | ||||||||
| 广播许可证 | ||||||||
| 商誉 | ||||||||
| 其他无形资产，净值 | ||||||||
| 对广播和科技公司的投资 | ||||||||
| 递延养老金资产 | ||||||||
| 其他 | ||||||||
| 总资产 | $ | $ | ||||||
请参阅简化合并基本报表的附注。
格雷电视，有限公司。
简明合并资产负债表（未经审计）
(以百万为单位，除股票数据外)
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 负债和股东’ 产权： | ||||||||
| 流动负债： | ||||||||
| 应付账款 | $ | $ | ||||||
| 员工薪酬和福利 | ||||||||
| 应计利息 | ||||||||
| 应计网络节目费用 | ||||||||
| 其他应计费用 | ||||||||
| 联邦和州所得税 | ||||||||
| 当前节目广播义务部分 | ||||||||
| 递延收入 | ||||||||
| 应付股息 | ||||||||
| 当前运营租赁负债部分 | ||||||||
| 长期债务的流动部分 | ||||||||
| 总流动负债 | ||||||||
| 长期债务，扣除当前部分和递延融资成本 | ||||||||
| 节目的广播义务，扣除当前部分 | ||||||||
| 递延所得税 | ||||||||
| 经营租赁负债，扣除流动部分 | ||||||||
| 其他 | ||||||||
| 总负债 | ||||||||
| 承诺及或有事项（附注10） | ||||||||
| A系列永久优先股， 面值；累计；可赎回；指定 股份，已发行并流通 股份，在每个日期和$ 总清算价值，在每个日期 | ||||||||
| 股东权益： | ||||||||
| 普通股， 面值; 授权 股票，已发行 股份和 股份，分别为流通在外的 股份和 股份，分别 | ||||||||
| Class A common stock, 面值; 授权 股票，已发行 股份和 股份，分别是流通的 股份和 股份，分别 | ||||||||
| 滚存收益 | ||||||||
| 累计其他综合损失，扣除所得税利益 | ( | ) | ( | ) | ||||
| 以成本计的库存股，普通股， 股份和 股份，分别 | ( | ) | ( | ) | ||||
| 以成本计的库存股，A类普通股， 股份和 股份，分别 | ( | ) | ( | ) | ||||
| 股东权益总额 | ||||||||
| 总负债和股东权益 | $ | $ | ||||||
见简明合并财务报表附注。
格雷电视，有限公司。
浓缩合并经营报表（未经审计）
(以百万为单位，除每股数据外)
| 截至三个月 |
截至九个月 |
|||||||||||||||
| 九月三十日 |
九月三十日 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 营业收入（减去代理佣金）： |
||||||||||||||||
| 广播 |
$ | $ | $ | $ | ||||||||||||
| 制作公司 |
||||||||||||||||
| 总收入（扣除代理佣金） |
||||||||||||||||
| 在折旧、摊销、减值以及资产处置的损失（收益）之前的营业费用，净值： |
||||||||||||||||
| 广播 |
||||||||||||||||
| 制作公司 |
||||||||||||||||
| 企业及管理 |
||||||||||||||||
| 折旧 |
||||||||||||||||
| 无形资产摊销 |
||||||||||||||||
| 商誉及其他无形资产的减值 |
||||||||||||||||
| 资产处置损失（收益），净额 |
( |
) | ||||||||||||||
| 营业费用 |
||||||||||||||||
| 营业收入 |
||||||||||||||||
| 其他收入（费用）： |
||||||||||||||||
| 其他收入（支出），净额 |
( |
) | ( |
) | ||||||||||||
| 利息支出 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 债务提前清偿的收益（亏损） |
( |
) | ( |
) | ||||||||||||
| 税前收入（亏损） |
( |
) | ( |
) | ||||||||||||
| 所得税费用（收益） |
( |
) | ||||||||||||||
| 净利润（亏损） |
( |
) | ( |
) | ||||||||||||
| 优先股分红 |
||||||||||||||||
| 归属于普通股东的净利润（亏损） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 每股基本信息： |
||||||||||||||||
| 归属于普通股东的净利润（亏损） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 加权平均流通股数 |
||||||||||||||||
| 每股摊薄信息： |
||||||||||||||||
| 归属于普通股东的净利润（亏损） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 加权平均流通股数 |
||||||||||||||||
| . | ||||||||||||||||
| 每股分红派息 |
$ | $ | $ | $ | ||||||||||||
请参阅简化合并基本报表的附注。
格雷电视，有限公司。
压缩合并综合收益表（损失）（未经审计）
(单位：百万)
| 截至三个月 |
截至九个月 |
|||||||||||||||
| 九月三十日 |
九月三十日 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 净利润（亏损） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 其他全面损失： |
||||||||||||||||
| 调整 - 利率上限的公允价值 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 所得税优惠 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 其他综合损益，净额 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 综合收益（损失） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
请参阅简化合并基本报表的附注。
格雷电视，有限公司。
简明合并股东权益报表（未经审计）
(以百万为单位，除股票数量外)
| 累计 |
||||||||||||||||||||||||||||||||||||||||
| A类 |
A类 |
普通股 |
其他 |
|||||||||||||||||||||||||||||||||||||
| 普通股 |
普通股 |
留存收益 |
库存股 |
库存股 |
综合的 |
|||||||||||||||||||||||||||||||||||
| 股份 |
金额 |
股份 |
金额 |
财报 |
股份 |
金额 |
股份 |
金额 |
Loss |
总计 |
||||||||||||||||||||||||||||||
| 截至2022年12月31日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
| 净损失 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 优先股分红 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股股息 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 利率上限公允价值调整，税后净额 |
- | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股发行： |
||||||||||||||||||||||||||||||||||||||||
| 401(k)计划 |
||||||||||||||||||||||||||||||||||||||||
| 2017年股权和激励补偿计划： |
||||||||||||||||||||||||||||||||||||||||
| 限制性股票奖励 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| 限制性股票单位奖励 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
| 基于股票的补偿 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 截至2023年3月31日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
| 净利润 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 优先股分红 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股股息 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 利率上限的公允价值调整，扣除税费 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 普通股发行： |
||||||||||||||||||||||||||||||||||||||||
| 2017年股权和激励补偿计划： |
||||||||||||||||||||||||||||||||||||||||
| 限制性股票奖励 |
( |
) | ||||||||||||||||||||||||||||||||||||||
| 基于股票的补偿 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 截至2023年6月30日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
| 净损失 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 优先股分红 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股送转 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 利率上限公允价值调整，税后净额 |
- | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
| 基于股票的补偿 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 截至2023年9月30日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
请参阅简化合并基本报表的附注。
格雷电视，有限公司。
简明合并股东权益报表（未经审计）
(以百万为单位，除股票数量外)
| 累计 |
|||||||||||||||||||||||||||||||||||||
| A类 |
A类 |
普通股 |
其他 |
||||||||||||||||||||||||||||||||||
| 普通股 |
普通股 |
留存收益 |
库存股 |
库存股 |
综合的 |
||||||||||||||||||||||||||||||||
| 股份 |
金额 |
股份 |
金额 |
财报 |
股份 |
金额 |
股份 |
金额 |
Loss |
总计 |
|||||||||||||||||||||||||||
| 截至2023年12月31日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
| 净利润 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 优先股分红 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股股息 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股发行： |
|||||||||||||||||||||||||||||||||||||
| 401(k)计划 |
|||||||||||||||||||||||||||||||||||||
| 2022年股权和激励补偿计划： |
|||||||||||||||||||||||||||||||||||||
| 限制性股票奖励 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||
| 限制性股票单位奖励 |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
| 基于股票的补偿 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 截至2024年3月31日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
| 净利润 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 优先股分红 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股送转 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 利率上限公允价值调整，扣除税款 |
- | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||
| 普通股发行： |
|||||||||||||||||||||||||||||||||||||
| 2022年股权与激励补偿计划： |
|||||||||||||||||||||||||||||||||||||
| 限制性股票奖励 |
( |
) | |||||||||||||||||||||||||||||||||||
| 基于股票的补偿 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 截至2024年6月30日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
| 净利润 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 优先股分红 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股送转 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 利率上限公允价值调整，税后净额 |
- | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||
| 基于股票的补偿 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 截至2024年9月30日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
请参阅简化合并基本报表的附注。
格雷电视，有限公司。
缩减合并现金流量表（未经审计）
(以百万为单位)
| 截至九个月 |
||||||||
| 九月三十日 |
||||||||
| 2024 |
2023 |
|||||||
| 经营活动： |
||||||||
| 净利润（亏损） |
$ | $ | ( |
) | ||||
| 对净利润（亏损）与净现金提供之间的调整 |
||||||||
| 经营活动： |
||||||||
| 折旧 |
||||||||
| 无形资产摊销 |
||||||||
| 递延贷款成本的摊销 |
||||||||
| 基于股票的补偿摊销 |
||||||||
| 节目播出权的摊销 |
||||||||
| 节目播出义务上的支付 |
( |
) | ( |
) | ||||
| 递延所得税 |
( |
) | ( |
) | ||||
| 资产处置损失，净额 |
||||||||
| 投资出售的收益 |
( |
) | ||||||
| 提前偿还债务造成的损失 |
||||||||
| 投资减值 |
||||||||
| 商誉及其他无形资产的减值 |
||||||||
| 其他 |
( |
) | ||||||
| 经营资产和负债的变动： |
||||||||
| 应收账款，净额 |
( |
) | ||||||
| 应收或预付的所得税 |
( |
) | ||||||
| 其他流动资产 |
( |
) | ||||||
| 应付账款 |
( |
) | ( |
) | ||||
| 员工薪酬、福利和养老金费用 |
( |
) | ( |
) | ||||
| 应计网络费用和其他开支 |
||||||||
| 应计利息 |
||||||||
| 应付所得税 |
( |
) | ( |
) | ||||
| 递延收入 |
||||||||
| 经营活动提供的净现金 |
||||||||
| 投资活动： |
||||||||
| 企业及广播许可证的收购，扣除已获取现金 |
( |
) | ||||||
| 出售电视台的收入 |
||||||||
| 购买房产和设备 |
( |
) | ( |
) | ||||
| 资产出售的收入 |
||||||||
| 投资出售的收入 |
||||||||
| 开发成本的报销 |
||||||||
| 对广播、制作和科技公司的投资 |
( |
) | ( |
) | ||||
| 其他 |
( |
) | ( |
) | ||||
| 投资活动提供的（使用的）净现金 |
( |
) | ||||||
| 融资活动： |
||||||||
| 长期债务借款的借款额 |
||||||||
| 长期债务的借款偿还 |
( |
) | ( |
) | ||||
| 普通股的送转支付 |
( |
) | ( |
) | ||||
| 优先股的送转支付 |
( |
) | ( |
) | ||||
| 递延及其他贷款成本 |
( |
) | ||||||
| 与股权奖励净分享结算相关的税款支付 |
( |
) | ( |
) | ||||
| 融资活动所使用的净现金 |
( |
) | ( |
) | ||||
| 现金的净增加（减少） |
( |
) | ||||||
| 期初现金 |
||||||||
| 期末现金 |
$ | $ | ||||||
请参阅简化合并基本报表的附注。
格雷电视，有限公司。
压缩合并基本报表的附注（未经审计）
| 1. | 财务报表的基础 |
格雷电视公司及其合并子公司的伴随简明合并资产负债表（除非上下文另有规定，以下称为“格雷”、“公司”、“我们”、“我们”、“我们的”）截至 2023年12月31日， 该财务数据来源于截至的公司经审计的基本报表 2023年12月31日， 以及我们截至的伴随未经审计的简明合并基本报表 2024年9月30日 并且针对 三 和 九个月期间-月末期间结束 2024年9月30日 和 2023, 已按照在美国普遍接受的会计原则（“美国通用会计准则”）为临时基本报表编制，并遵循表格的指示 10-Q 10 的S-规定X. 因此，根据这些规则和规定，通常包含在符合美国公认会计原则（U.S. GAAP）编制的年度基本报表中的某些信息和注释披露已被缩减或省略，尽管我们相信所做的披露已足够以使信息。 不 具有误导性。在我们看来，为了公正呈现而考虑的所有调整（仅包括正常的定期调整）都已被包括在内。我们根据以下方式管理我们的业务： 业务部门：广播和制作公司。除非另有说明，否则本文中所有电台排名、市场份额和电视家庭数据均来自尼尔森公司（The Nielsen Company, LLC）和/或康姆斯克（Comscore, Inc.）准备的报告。虽然我们相信这些数据是准确和可靠的，但我们并未 不 独立核实这些数据，也未确认其中所依赖的基本假设，因此不能保证这些数据的准确性或完整性。有关更多信息，请参阅我们的年度报告（Annual Report）中包含的合并基本报表及其脚注，表格 10-k截至 2023年12月31日（在 “2023 表格 10-K）。我们截至目前的金融控件及运营结果为 三 和 九个月期间-月结束 截止到2024年9月30日， 被 不 并不一定表明基本报表或结果的控件 可能 在任何未来的间歇性期间或截至 2024年12月31日。
概述。 我们是一家总部位于佐治亚州亚特兰大的多媒体公司。我们是美国收视率最高的本地电视台和数字资产服务的最大所有者
对广播、制作和科技公司的投资。 我们对几家电视、制作和科技公司进行了投资。我们根据权益法对所有重大投资进行会计处理，对我们有重大影响的被投资单位的投资进行记录。在初始投资时，我们按成本确认权益法投资。最初确认的金额随后根据我们在被投资单位净收益或损失中的相应份额进行调整。我们记录被投资单位的损失，最多不超过投资的账面金额以及向被投资单位提供的预付款和贷款，以及为被投资单位提供的任何财务担保。我们在我们的简明合并经营报告中，将我们在被投资单位的收益和损失的份额确认作为其他收入（费用），净额。投资还通过对被投资单位的出资增加，对被投资单位的分配减少。我们每当发生事件或情况变化时，都会评估权益法投资是否存在减值。 可能 被减值。
对有这种情况的非上市企业的投资 不 有易于确定的价格，我们为此做了 不 要么控制要么做 不 施加重大影响力，按成本减去减值（如果有）加上或减去这些投资的可观测价格变动。这些投资账面价值变动产生的收益或亏损作为杂项收入（支出）计入我们的简明合并运营报表中。这些投资在我们的合并资产负债表上合并为非流动资产。
BMI Investment Proceeds. On February 8, 2024, we received $
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Our actual results could differ materially from these estimated amounts. Our most significant estimates are our allowance for credit losses in receivables, valuation of goodwill and intangible assets, amortization of program rights and intangible assets, pension costs, income taxes, employee medical insurance claims, useful lives of property and equipment and contingencies.
Earnings Per Share. We compute basic earnings per share by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the relevant period. The weighted-average number of common shares outstanding does not include restricted shares. These shares, although classified as issued and outstanding, are considered contingently returnable until the restrictions lapse and, in accordance with U.S. GAAP, are not included in the basic earnings per share calculation until the shares vest. Diluted earnings per share is computed by including all potentially dilutive common shares, including restricted shares, in the diluted weighted-average shares outstanding calculation, unless their inclusion would be antidilutive.
The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding for the three and nine-month periods ended September 30, 2024 and 2023, respectively (in millions):
| 截至三个月 | 截至九个月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 加权平均基本流通股数 | ||||||||||||||||
| 期权和限制股票的普通股等值 | ||||||||||||||||
| 加权平均稀释流通股数 | ||||||||||||||||
累计其他综合损失。 截至我们的累计其他综合损失余额为 2024年9月30日 和 2023年12月31日， 包括对我们养老金负债的调整、利率上限的公允价值以及相关的所得税影响。我们的综合收益（损失）为 九个月期间-月报告期结束 2024年9月30日 和 2023 包括我们养老金资产和利率上限的公允价值调整，扣除税费和净利润。截至 2024年9月30日 和 2023年12月31日 余额如下（以百万计）：
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 累积在其他综合损益中的项目的累积余额： | ||||||||
| 对养老金资产的调整 | $ | ( | ) | $ | ( | ) | ||
| 对利率上限公允价值的调整 | ( | ) | ( | ) | ||||
| 所得税优惠 | ( | ) | ( | ) | ||||
| 累计其他综合损失 | $ | ( | ) | $ | ( | ) | ||
财产和设备。 财产和设备按成本计量，对于收购的企业，按公允价值计量。折旧主要采用直线法计算。下表列出了按主要类别分类的财产和设备的元件（单位：百万美元）：
| 预计 | |||||||||||||
| 九月三十日 | 12月31日 | 使用寿命 | |||||||||||
| 2024 | 2023 | （以年为单位） | |||||||||||
| 物业和设备，净值: | |||||||||||||
| 土地 | $ | $ | |||||||||||
| 建筑物及改善 | 到 | ||||||||||||
| 设备 | 到 | ||||||||||||
| 建设中的工程 | |||||||||||||
| 累计折旧 | ( | ) | ( | ) | |||||||||
| 总物业及设备，净值 | $ | $ | |||||||||||
维护、维修和小型更换费用在发生时计入运营成本；主要更换和改善费用则资本化。任何处置、出售或删除的资产成本及其相关的累计折旧在处置时从账目中移除，任何因此产生的收益或损失在该期间的收入或费用中反映。
我们在亚特兰大组装项目中 incurred 了建设公共基础设施的成本。根据我们与多拉维尔社区改进区（“CID”）的购买和销售协议，我们获得了将特定基础设施项目转让给CID以及以前 incurred 的其他施工成本的现金补偿。在 三 和 九个月期间- 个月期间结束于 2024年9月30日 和 2023, 我们从CID收到了现金收益。下表列出了收到的收益类型（单位：百万）:
| 截至三个月 | 截至九个月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 资产销售前收到的收益 | $ | $ | $ | $ | ||||||||||||
| 用于补偿开发成本的收益 | ||||||||||||||||
| 从CID收到的总收益 | $ | $ | $ | $ | ||||||||||||
以下表格提供与资产处置的（损失）收益相关的额外信息，净额包括在我们的简明合并经营报表中，以及包括在我们的简明合并现金流量表中的财产和设备购买数据（单位：百万）:
| 截至三个月 | 截至九个月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (损失) 资产处置净收益： | ||||||||||||||||
| 固定资产出售收入 | $ | $ | $ | $ | ||||||||||||
| 处置资产的净账面价值 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 非现金（损失）处置收益 | ( | ) | ( | ) | ( | ) | ||||||||||
| 证券化工具 | ||||||||||||||||
| 其他 | ||||||||||||||||
| 总计 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
| 购买物业和设备： | ||||||||||||||||
| 定期采购 - 运营 | $ | $ | ||||||||||||||
| 亚特兰大组装项目 | ||||||||||||||||
| 总计 | $ | $ | ||||||||||||||
应收账款和信贷损失准备金。 我们在合并的资产负债表中按摊余成本记录销售和服务交易的应收账款，调整任何冲销，并净额计入信贷损失准备金。我们主要通过向各种直接和基于代理的广告客户销售广播和数字广告、与多频道视频节目分销商的重传同意协议以及程序制作销售和服务来面临信用风险。
我们针对信用损失的准备金是对我们应收账款在剩余合同期限内预期损失的估计，基于对可收回性的持续分析、历史收款经验、当前经济和行业板块条件以及合理且可支持的预测。该准备金是通过将历史损失率应用于当前的逾期分析来计算的。我们 可能 在具体事实和情况需要时，我们也会提供额外的准备金。我们通常在客户申请破产或所有常用的收款方法都已用尽时，注销应收账款余额。
在 2023年2月23日， 我们，某些子公司和一个全资特殊目的子公司（“SPV”），签订了一个 三-年$
在证券化设施下，特殊目的实体（SPV）向买方出售某些应收款，包括与相关应收款的所有权利、所有权和利益（“出售的应收款”）。各方意图将应收款转让给买方，以便买方按比例受益，这将构成应收款的买卖， 不 以及对安防-半导体的担保。SPV已向每位买方保证及时支付出售的应收款，并为了确保及时支付和履行这些担保义务，SPV已向买方在SPV的所有资产上授予了安保权益。作为证券化设施下的服务提供者，我们负责管理和收集应收款，并进行了惯常的陈述、保证、契约和赔偿。我们不 不 记录服务资产或负债，因为估计的应收款服务的公允价值接近服务收入。我们还为买方提供了履约担保。
证券化工具需支付利息费用，按照调整后的 一个-个月担保隔夜融资利率 (“”) 以及存款基点（
证券化设施的收益在我们的简明合并现金流量表中被归类为经营活动。从出售应收账款的收款中获得的现金由特殊目的公司用于循环方式资助额外的应收账款购买，或退回买方所有或部分未偿还资本。对质押应收账款的后续收款， 不 将会在收款时被归类为经营现金流。
售给购买者的金额为$
The following table provides a roll-forward of the allowance for credit losses. The allowance is deducted from the amortized cost basis of accounts receivable in our condensed consolidated balance sheets (in millions):
| 截至9月30日的九个月 | ||||||||
| 2024 | 2023 | |||||||
| 期初余额 | $ | $ | ||||||
| (减少) 信贷损失准备金的增加 | ( | ) | ||||||
| 已注销的金额 | ( | ) | ( | ) | ||||
| 期末余额 | $ | $ | ||||||
最近的会计公告。 在 2023年11月， 财务会计准则委员会（“FASB”）发布了会计准则更新（“ASU” 2023-07, 部门报告（主题 280），对可报告分部披露的改进。 此次修订的目的是改善与可报告分部相关的披露。此ASU中的修订在2023年12月15日之后开始的财政年度生效。 及在财政年度内的中期。 2024年12月15日之后。 目前我们不 不 预计这些变化的实施将对我们的基本报表产生重大影响。
在 2023年12月， FASB发布了ASU 2023-09, 所得税（主题 740），对所得税披露的改进。 此次修订的目的是提高所得税披露的透明度和决策实用性。此ASU中的修订适用于2024年12月15日之后开始的年度期间。 2024年12月15日。 目前我们正在做 不 预计这些变更的实施将对我们的基本报表产生重大影响。
In November 2024, The FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses. The purpose of this amendment was to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Currently we do not expect that the implementation of these changes will have a material impact on our financial statements.
In addition to the accounting standards described above, certain amounts in the condensed consolidated balance sheets and condensed consolidated statements of cash flows have also been reclassified to conform to the current presentation.
| 2. | Revenue |
收入确认。 我们在完成特定服务并有效地将该服务的控制权转移给客户时确认收入，以换取我们预计有权收取的对价金额。确认的营业收入金额由与我们的客户签订的合同中规定的对价金额决定。我们选择将政府机构对与客户进行交易所征收的税款排除在我们的营业收入之外。任何未支付的余额计入我们资产负债表的流动负债中。
递延收入。我们会记录从客户那里收到的现金存款的递延收入，一旦履约义务产生并得到满足，这些存款将作为付款方式使用。这些存款在我们简明的合并资产负债表中作为递延收入记作广告存款负债。当我们为客户开具已完成的履约义务的发票时，我们无条件地有权收到发票金额的付款。因此，我们在资产负债表上的应收账款中记录发票金额。我们通常要求提前支付根据与政治广告客户签订的广告合同应付的款项。我们将收到的这笔现金记录为广告押金负债。广告播出后，即获得收入，我们会记录收入并减少该存款负债账户中的余额。我们记录了 $
The following table presents our deferred revenue by type (in millions):
| September30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Advertising deposit liabilities | $ | $ | ||||||
| Other deposit liabilities | ||||||||
| Total deferred revenue | $ | $ | ||||||
Disaggregation of Revenue. Revenue from our production companies segment is generated through our direct sales channel. Revenue from our broadcasting and other segment is generated through both our direct and advertising agency intermediary sales channels. The following table presents our revenue from contracts with customers disaggregated by type of service and sales channel (in millions):
| 截至三个月 | 截至九个月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 市场和服务类型： | ||||||||||||||||
| 广告： | ||||||||||||||||
| 岩心 | $ | $ | $ | $ | ||||||||||||
| 政治 | ||||||||||||||||
| 广告总额 | ||||||||||||||||
| 重传同意 | ||||||||||||||||
| 制作公司 | ||||||||||||||||
| 其他 | ||||||||||||||||
| 总营业收入 | $ | $ | $ | $ | ||||||||||||
| 销售渠道： | ||||||||||||||||
| 直接 | $ | $ | $ | $ | ||||||||||||
| 广告代理中介 | ||||||||||||||||
| 总营业收入 | $ | $ | $ | $ | ||||||||||||
| 3. | 收购与剥离 |
在 2024年7月1日， 我们与Marquee广播公司（“Marquee”）完成了交易，出售了我们在怀俄明州卡斯珀市场（DMA 198）的电视台KCWY（NBC）和在怀俄明州夏延市场（DMA 194）的KGWN（CBS），以换取Marquee的FCC许可证，该许可证授权在犹他州盐湖城市场（DMA 27）建设一座新的电视台，名称为KCBU。 否 以现金或其他形式的对价交换，以履行此交易的条款。
从Marquee获取的施工许可证的价值为$
获得KCBU站的施工许可证以及出售电视台KCWY和KGWN导致了净非现金损失$
| 4. | 开多期债务 |
截至 2024年9月30日 和 2023年12月31日， 长期债务包括我们高级信贷设施下的义务（如下定义），我们的
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 长期债务： | ||||||||
| 2019年高级信贷设施： | ||||||||
| 2019年定期贷款（到期日：2026年1月2日） | $ | $ | ||||||
| 2021年定期贷款（到期日：2028年12月1日） | ||||||||
| 2024年定期贷款（到期日：2029年6月4日） | ||||||||
| 2026年票据（到期日：2026年7月15日） | ||||||||
| 2027 年债券（到期日：2027年5月15日） | ||||||||
| 2029 年债券（到期日：2029年7月15日） | ||||||||
| 2030 年债券（到期日：2030年10月15日） | ||||||||
| 2031 年债券（到期日：2031年11月15日） | ||||||||
| 未偿还的本金总额，包括当前部分 | ||||||||
| 未摊销的递延贷款费用 - 高级信贷设施 | ( | ) | ( | ) | ||||
| 未摊销的递延贷款费用 - 2026 年债券 | ( | ) | ||||||
| 未摊销的递延贷款费用 - 2027 年债券 | ( | ) | ( | ) | ||||
| 未摊销的递延贷款成本 - 2029年票据 | ( | ) | ||||||
| 未摊销的递延贷款成本 - 2030年票据 | ( | ) | ( | ) | ||||
| 未摊销的递延贷款成本 - 2031年票据 | ( | ) | ( | ) | ||||
| 未摊销的溢价 - 2026年票据 | ||||||||
| 减去当前部分 | ( | ) | ( | ) | ||||
| 长期债务，扣除当前部分和递延融资成本 | $ | $ | ||||||
| 循环信用额度下的借款可用性 | $ | $ | ||||||
2024 再融资活动。 在 2024年6月3日， 我们发行了$
净筹集的资金来自于 2029 票据的净收益与一笔$
本 2029 票据和相关担保是我们的高级担保债务。 首先 担保负担。 2029 票据的等级为：
| ● | 与我们所有现有及未来的债务平等享有付款权； pari passu 对我们所有现有及未来的次级债务享有优先付款权； |
| ● | 在所有现有和未来的无担保债务或次级留置权债务中，与担保物的价值相当的部分具有更高的优先权； 2029 票据； |
| ● | 实际上受限于任何现有和未来的债务，这些债务是通过对任何资产的留置权进行担保的 不 构成担保的抵押品 2029 在这些资产的价值范围内；以及 |
| ● | 在结构上次于我们子公司现有及未来的债务和负债，这些子公司并不 不 对 2029 票据提供担保。 |
On June 4, 2024, we entered into a third amendment to the Fifth Amended and Restated Credit Agreement (the “Third Amendment” and as amended, including by the Third Amendment, the “Senior Credit Facility”), dated as of December 1, 2021.
第三修正案，除了其他事项外，规定了(i)新的$
本 2024 定期贷款按我们选择的方式计息，可以是担保隔夜融资利率（“SOFR”）加上适用的利差，或者基准利率加上适用的利差。“基准利率”被定义为以下三者中的最大者：(i) 行政代理人的优先利率，(ii) 隔夜联邦基金利率加
循环信贷额度的利息由我们选择，基于SOFR加上
与这些 2024 再融资活动相关的成本总计为$
债务回购及后续事件在 2024年5月6日， 我们的董事会授权我们使用最多
在 2024年9月25日， 我们与一位贷款人达成协议，购买我们部分的 2021 定期贷款。因此，该贷款人已购买了我们未偿还的 定期贷款面值的百万 2021 为百万，按照该计划。我们计划稍后回购并注销这些部分的 $30 定期贷款在 2021 中。 第四 的季度 2024 使用手头现金。
利率上限在 2023年2月23日， 我们签署了 两个 根据国际掉期及衍生品协会主协议（“ISDA主协议”）签订的利率上限 两个 合约方为Wells Fargo Bank, NA和Truist Bank，分别在 2024年6月25日， 我们修改了利率上限的名义金额，以更好地匹配相关未偿债务的未偿还金额。在 截止到2024年9月30日， 这些上限的名义总值约为$
经修订的利率上限实际上限制了我们向我们收取的年度利息 2021 定期贷款和我们的 2024 定期贷款最高为 1-月期限的 SOFR 4.96% 和 5.047%. 我们需要支付与利率上限相关的总费用，约为美元
ISDA主协议及其相关附表包含通常的声明、保证和契约。利率上限是 不 出于投机交易目的而签订的。利率上限公允价值的变动作为其他综合收益的一个元件进行报告。实际的收益和损失在对冲交易影响收益的同一期间或期间内重新分类到收益，并在同一收益表项目中呈现，与对冲交易的收益影响相同。代表被排除在效果评估之外的对冲元件的衍生工具的收益和损失被立即确认在收益中，并在被对冲项目的收入表中的同一行中呈现。我们确认了$
对于我们所有的利息负债，我们支付的利息约为$
截至 截止到2024年9月30日， 我们开多期债务的总最低本金到期时间为： 2024 以及接下来的 5 年如下（单位：百万）：
| 最低本金到期 | ||||||||||||||||||||||||||||
| 年份 | 高级信贷 设施 | 2026年票据 | 2027年票据 | 2029年票据 | 2030年票据 | 2031年期票据 | 总计 | |||||||||||||||||||||
| 2024年剩余时间 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||||
| 2026 | ||||||||||||||||||||||||||||
| 2027 | ||||||||||||||||||||||||||||
| 2028 | ||||||||||||||||||||||||||||
| 2029 | ||||||||||||||||||||||||||||
| 之后 | ||||||||||||||||||||||||||||
| 总计 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
截至 截止到2024年9月30日， 有 无 我们的子公司在向我们或担保子公司分配现金方面存在显著限制。高级信贷设施包含我们必须遵守的正面和限制性契约。 2026 票据， 2027 票据， 2029 票据， 2030 备注和 2031 备注还包括我们必须遵守的契约。
| 5. | 公允价值计量 |
我们以公允价值计量某些资产和负债，根据FASB编纂的公允价值等级体系将其分类为Level 1, 2, 或 3, 测量依据是使用可观察或不可观察输入。可观察输入反映来自独立来源的市场数据，而不可观察输入反映公司的自我假设，并考虑到有关市场参与者假设的信息。
| ● | 级别 1: 活跃市场中相同工具的报价 |
| ● | 级别 2: 活跃市场中类似工具的报价；在市场中相同或类似工具的报价， 不 活跃的；以及在所有重要输入和重要价值驱动因素都可以在活跃市场中观察到的情况下进行的模型衍生估值。 |
| ● | 级别 3: 根据估值技术得出的估值，其中 一个 一个或多个重要输入或重要价值驱动因素是不可观察的 |
公允价值被定义为在计量日期市场参与者之间有序交易中，出售资产所能收到的价格或转移负债所需支付的价格。使用不同的市场假设或方法可能对公允价值的计量产生重大影响。
应收账款、预付账款及其他流动资产、应付账款、员工薪酬和福利、应计利息、其他应计费用以及递延营业收入的账面金额在双方近似公允价值。 2024年9月30日 和 2023年12月31日。
截至 2024年9月30日 和 2023年12月31日， 我们开多债务的账面价值为$
| 6. | 股东’ 权益 |
我们被授权发行
我们的普通股和A类普通股在宣布时有权按每股相等的基础收取现金分红派息。董事会宣布每股派发季度现金分红$
Under our various employee benefit plans, we may, at our discretion, issue authorized and unissued shares, or previously issued shares held in treasury, of our Class A common stock or common stock. As of September 30, 2024, we had reserved
| 7. | Retirement Plans |
The components of our net periodic pension benefit are included in miscellaneous income (expense), net in our condensed consolidated statements of operations. During the nine-months ended September 30, 2024, the amount recorded as a benefit was not material.
During the nine-month period ended September 30, 2024, we contributed $
| 8. | Stock-based Compensation |
We recognize compensation expense for stock-based payment awards made to our employees, consultants and directors. The following table provides our stock-based compensation expense and related income tax benefit for the three and nine-month periods ended September 30, 2024 and 2023 (in millions):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Stock-based compensation expense, gross | $ | $ | $ | $ | ||||||||||||
| Income tax benefit at our statutory rate associated with share-based compensation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Stock-based compensation expense, net | $ | $ | $ | $ | ||||||||||||
All shares of Class A common stock and common stock underlying outstanding restricted stock units and performance awards are counted as issued at target levels under the 2022 EICP for purposes of determining the number of shares available for future issuance.
A summary of restricted Class A common stock, common stock and restricted stock units activity for the nine-month periods ended September 30, 2024 and 2023 is as follows:
| Nine Months Ended | ||||||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||||
| Weighted- | Weighted- | |||||||||||||||
| average | average | |||||||||||||||
| Grant Date | Grant Date | |||||||||||||||
| Number of | Fair Value | Number of | Fair Value | |||||||||||||
| Shares | Per Share | Shares | Per Share | |||||||||||||
| Restricted stock - common: | ||||||||||||||||
| Outstanding - beginning of period (1) | $ | $ | ||||||||||||||
| Granted(1) | $ | $ | ||||||||||||||
| Vested | ( | ) | $ | ( | ) | $ | ||||||||||
| Forfeited | ( | ) | $ | $ | ||||||||||||
| Outstanding - end of period (1) | $ | $ | ||||||||||||||
| Restricted stock - Class A common: | ||||||||||||||||
| Outstanding - beginning of period (1) | $ | $ | ||||||||||||||
| Granted(1) | $ | $ | ||||||||||||||
| Vested | ( | ) | $ | ( | ) | $ | ||||||||||
| Outstanding - end of period (1) | $ | $ | ||||||||||||||
| Restricted stock units - common stock: | ||||||||||||||||
| Outstanding - beginning of period | $ | $ | ||||||||||||||
| Granted | $ | $ | ||||||||||||||
| Vested | ( | ) | $ | ( | ) | $ | ||||||||||
| Forfeited | ( | ) | $ | ( | ) | $ | ||||||||||
| Outstanding - end of period | $ | $ | ||||||||||||||
| (1) | For awards subject to future performance conditions, amounts assume target performance. |
| 9. | Leases |
We determine if an arrangement is a lease at its inception. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. We generally use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments, because the implicit rate of the lease is generally not known. Right-of-use (“ROU”) assets related to our operating lease liabilities are measured at lease commencement based on the initial measurement of the lease liability, plus any prepaid lease payments and less any lease incentives. Our lease terms that are used in determining our operating lease liabilities at lease commencement may include options to extend or terminate the leases when it is reasonably certain that we will exercise such options. We amortize our ROU assets as operating lease expense generally on a straight-line basis over the lease term and classify both the lease amortization and imputed interest as operating expenses. We have lease agreements with lease and non-lease components, and in such cases, we generally account for the components separately with only the lease component included in the calculation of the ROU asset and lease liability.
We have operating leases that primarily relate to certain of our facilities, data centers and vehicles. As of September 30, 2024, our operating leases substantially have remaining terms of year to
Cash flow movements related to our lease activities are included in other assets and accounts payable and other liabilities as presented in net cash provided by operating activities in our condensed consolidated statement of cash flows.
As of September 30, 2024, the weighted-average remaining term of our operating leases was approximately
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Lease expense | ||||||||||||||||
| Operating lease expense | $ | $ | $ | $ | ||||||||||||
| Short-term lease expense | ||||||||||||||||
| Total lease expense | $ | $ | $ | $ | ||||||||||||
The maturities of operating lease liabilities as of September 30, 2024, for the remainder of 2024 and the succeeding years were as follows (in millions):
| Year ending December 31, | Operating Leases | |||
| Remainder of 2024 | $ | |||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| Thereafter | ||||
| Total lease payments | ||||
| Less: Imputed interest | ( | ) | ||
| Present value of lease liabilities | $ | |||
As a Lessor. We lease or sublease our owned or leased production facilities, land, towers and office space through operating leases with third parties. Payments received associated with these leases consist of fixed and variable payments. Fixed payments are received for the rental of space including fixed rate rent escalations over the applicable term of the lease agreements. Variable payments are received for short-term rental of space, variable rent escalations and reimbursement of operating costs related to the asset leased or subleased.
We recognize revenue from fixed payments on a straight-line basis over the applicable term of the lease agreements, whose lives range between and
Cash flow activities related to our lease activities for assets we lease to third parties are included in other assets and accounts receivable as presented in net cash provided by operating activities in our condensed consolidated statement of cash flows.
The following table describes the nature of our lease revenue and classification of operating lease revenue recognized in the three and nine-months ended September 30, 2024 and 2023 (in millions):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating lease revenue: | ||||||||||||||||
| Fixed lease revenue | $ | $ | $ | $ | ||||||||||||
| Variable lease revenue | ||||||||||||||||
| Total operating lease revenue | $ | $ | $ | $ | ||||||||||||
The following table presents our future minimum rental receipts for non-cancelable leases and subleases as of September 30, 2024 (in millions):
| Year ending December 31, | Operating Leases | |||
| Remainder of 2024 | $ | |||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| Thereafter | ||||
| Total lease receipts | $ | |||
| 10. | Commitments and Contingencies |
We are and expect to continue to be subject to legal actions, proceedings and claims that arise in the normal course of our business. In the opinion of management, the amount of ultimate liability, if any, with respect to these actions, proceedings and claims will not materially affect our financial position, results of operations or cash flows, although legal proceedings are subject to inherent uncertainties, and unfavorable rulings or events could have a material adverse impact on our financial position, results of operations or cash flows.
| 11. | Goodwill and Intangible Assets |
A summary of changes in our goodwill and other intangible assets, on a net basis, for the nine-months ended September 30, 2024 is as follows (in millions):
| Net Balance at | Disposals | Net Balance at | ||||||||||||||
| December 31, | And | September 30, | ||||||||||||||
| 2023 | Adjustments, Net | Amortization | 2024 | |||||||||||||
| Broadcast licenses | $ | $ | ( | ) | $ | - | $ | |||||||||
| Goodwill | ( | ) | - | |||||||||||||
| Finite-lived intangible assets | ( | ) | ||||||||||||||
| Total intangible assets net of accumulated amortization | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
A summary of the changes in our goodwill, on a gross basis, for the nine-months ended September 30, 2024, is as follows (in millions):
| As of | Disposals | As of | ||||||||||
| December 31, | And | September 30, | ||||||||||
| 2023 | Adjustments, Net | 2024 | ||||||||||
| Goodwill, gross | $ | $ | ( | ) | $ | |||||||
| Accumulated goodwill impairment | ( | ) | - | ( | ) | |||||||
| Goodwill, net | $ | $ | ( | ) | $ | |||||||
As of September 30, 2024 and December 31, 2023, our intangible assets and related accumulated amortization consisted of the following (in millions):
| As of September 30, 2024 | As of December 31, 2023 | |||||||||||||||||||||||
| Accumulated | Accumulated | |||||||||||||||||||||||
| Gross | Amortization | Net | Gross | Amortization | Net | |||||||||||||||||||
| Intangible assets not currently subject to amortization: | ||||||||||||||||||||||||
| Broadcast licenses | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Goodwill | ||||||||||||||||||||||||
| $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||
| Intangible assets subject to amortization: | ||||||||||||||||||||||||
| Network affiliation agreements | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Other finite lived intangible assets | ( | ) | ( | ) | ||||||||||||||||||||
| $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||
| Total intangibles | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Amortization expense for the nine-month periods ended September 30, 2024 and 2023 was $
| 12. | Income Taxes |
For the three and nine-month periods ended September 30, 2024 and 2023, our income tax expense and effective income tax rates were as follows (dollars in millions):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Income tax expense (benefit) | $ | $ | $ | $ | ( | ) | ||||||||||
| Effective income tax rate | % | ( | )% | % | % | |||||||||||
We estimate our differences between taxable income or loss and recorded income or loss on an annual basis. Our tax provision for each quarter is based upon these full year projections, which are revised each reporting period. These projections incorporate estimates of permanent differences between U.S. GAAP income or loss and taxable income or loss, state income taxes and adjustments to our liability for unrecognized tax benefits to adjust our statutory federal income tax rate of
During the nine-months ended September 30, 2024, we made $
| 13. | Segment information |
We operate in business segments: broadcasting and production companies. The broadcasting segment operates television stations in local markets in the U.S. The production companies segment includes the production of television content and our productions facilities, primarily Assembly Atlanta. Costs identified as other are primarily corporate and administrative expenses. The following tables present certain financial information concerning our operating segments (in millions):
| Production | ||||||||||||||||
| As of and for the nine months ended September 30, 2024: | Broadcasting | Companies | Other | Consolidated | ||||||||||||
| Revenue (less agency commissions) | $ | $ | $ | $ | ||||||||||||
| Operating expenses before depreciation, amortization, impairment and loss on disposal of assets, net: | ||||||||||||||||
| Depreciation and amortization | ||||||||||||||||
| Loss on disposal of assets, net | ||||||||||||||||
| Operating expenses | ||||||||||||||||
| Operating income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
| Interest expense | $ | $ | $ | $ | ||||||||||||
| Capital expenditures (excluding business combinations) | $ | $ | $ | $ | ||||||||||||
| Goodwill | $ | $ | $ | $ | ||||||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||
| For the nine months ended September 30, 2023: | ||||||||||||||||
| Revenue (less agency commissions) | $ | $ | $ | $ | ||||||||||||
| Operating expenses before depreciation, amortization and (gain) loss on disposal of assets, net: | ||||||||||||||||
| Depreciation and amortization | ||||||||||||||||
| Impairment of goodwill and other intangible assets | ||||||||||||||||
| Loss on disposal of assets, net | ||||||||||||||||
| Operating expenses | ||||||||||||||||
| Operating income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
| Interest expense | $ | $ | $ | $ | ||||||||||||
| Capital expenditures (excluding business combinations) | $ | $ | $ | $ | ||||||||||||
| As of December 31, 2023: | ||||||||||||||||
| Goodwill | $ | $ | $ | $ | ||||||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Executive Overview
Introduction. The following discussion and analysis of the financial condition and results of operations of Gray Television, Inc. and its consolidated subsidiaries (except as the context otherwise provides, “Gray Media,” “Gray,” the “Company,” “we,” “us” or “our”) should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included elsewhere herein, as well as with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”) filed with the SEC.
Business Overview. We are a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets serving 113 television markets that collectively reach approximately 36 percent of US television households. The portfolio includes 77 markets with the top-rated television station and 100 markets with the first and/or second highest rated television station, as well as the largest Telemundo Affiliate group with 43 markets totaling nearly 1.5 million Hispanic TV Households. We also own Gray Digital Media, a full-service digital agency offering national and local clients digital marketing strategies with the most advanced digital products and services. Our additional media properties include video production companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, and studio production facilities Assembly Atlanta and Third Rail Studios. Gray also owns a majority interest in Swirl Films.
Our operating revenues are derived primarily from broadcasting and internet advertising, retransmission consent fees and, to a lesser extent, other sources such as production of television and event programming, television commercials, tower rentals and management fees. For the nine-months ended September 30, 2024 and 2023, we generated revenue of $2.6 billion and $2.4 billion, respectively.
Revenues, Operations, Cyclicality and Seasonality. Broadcast advertising is sold for placement generally preceding or following a television station’s network programming and within local and syndicated programming. Broadcast advertising is sold in time increments and is priced primarily on the basis of a program’s popularity among the specific audience an advertiser desires to reach. In addition, broadcast advertising rates are affected by the number of advertisers competing for the available time, the size and demographic makeup of the market served by the station and the availability of alternative advertising media in the market area. Broadcast advertising rates are generally the highest during the most desirable viewing hours, with corresponding reductions during other hours. The ratings of a local station affiliated with a major network can be affected by ratings of network programming. Most advertising contracts are short-term, and generally run only for a few weeks.
We also sell internet advertising on our stations’ websites and mobile apps. These advertisements may be sold as banner advertisements, video advertisements and other types of advertisements or sponsorships.
Our broadcast and internet advertising revenues are affected by several factors that we consider to be seasonal in nature. These factors include:
| ● |
Spending by political candidates, political parties and special interest groups increases during the even-numbered “on-year” of the two-year election cycle. This political spending typically is heaviest during the fourth quarter of such years; |
| ● |
Broadcast advertising revenue is generally highest in the second and fourth quarters each year. This seasonality results partly from increases in advertising in the spring and in the period leading up to and including the holiday season; |
| ● |
Core advertising revenue on our NBC-affiliated stations increases in certain years as a result of broadcasts of the Olympic Games; and |
| ● |
Because our stations and markets are not evenly divided among the Big Four broadcast networks, our local and national advertising revenue can fluctuate between years related to which network broadcasts the Super Bowl. |
We derived a material portion of our non-political broadcast advertising revenue from advertisers in a limited number of industries, particularly the services sector, comprising financial, legal and medical advertisers, and the automotive industry. The services sector has become an increasingly important source of advertising revenue over the past few years. During the nine-months ended September 30, 2024 and 2023, approximately 24% and 26%, respectively, of our broadcast advertising revenue (excluding political advertising revenue) was obtained from advertising sales to the services sector. During the nine-months ended September 30, 2024 and 2023 approximately 19% and 20%, respectively, of our broadcast advertising revenue (excluding political advertising revenue) was obtained from advertising sales to automotive customers. Revenue from these industries may represent a lower percentage of total revenue in even-numbered years due to, among other things, the decreased availability of advertising time, as a result of such years being the “on-year” of the two-year election cycle.
Our primary broadcasting operating expenses are employee compensation, related benefits and programming costs. In addition, the broadcasting operations incur overhead expenses, such as maintenance, supplies, insurance, rent and utilities. A large portion of the operating expenses of our broadcasting operations is fixed. We continue to monitor our operating expenses and seek opportunities to reduce them where possible.
2024 Refinancing Activities. During 2024, we have undertaken several steps to implement our strategy to reduce our debt and extend the maturity of portions of our debt obligations that were scheduled to mature in the near future. Collectively, these actions are intended to resolve concerns over upcoming maturities, and to take advantage of other opportunities in the markets. Please refer to Note 4. “Long-Term Debt” for further information. During the nine-months ended September 30, 2024, we have:
| ● |
Amended our Senior Credit Facility to: |
| o |
Increase lender commitments under our Revolving Credit Facility to $680 million and extend the maturity date to December 31, 2027; |
| o |
Fully repay the $1.15 billion 2019 Term Loan that was scheduled to mature on January 2, 2026; |
| o |
Issue the $500 million 2024 Term Loan that will mature on June 4, 2029; |
| ● |
Pre-paid through a tender offer, $690 million of the $700 million in outstanding 2026 Notes that was scheduled to mature on July 15, 2026; and |
| ● |
Issued $1.25 billion of our 2029 Notes, that are secured pari passu with our Senior Credit Facility and that will mature on July 15, 2029. |
In addition, during 2024 we used $72 million of cash to repurchase and retire $79 million of our outstanding 2027 Notes on the open market and we have used $14 million of cash to repurchase and retire $15 million of our outstanding 2021 Term Loans on the open market.
We project, including actions taken to date, a reduction of our Adjusted Total Indebtedness (also referred to as “Net Debt”) during the full-year 2024 of $500 million.
Cost Containment Initiatives. Starting in August 2024, we began identifying and implementing various measures throughout the company that we expect will further reduce operating expenses by at least $60 million on an annualized basis. As part of our routine budgeting process, we are carefully evaluating our capital expenditure needs for 2025.
We have taken several steps to reduce personnel expenses in 2025. These steps include streamlining workflows at our television stations and other business units, eliminating over 150 unfilled positions for which we were recruiting, eliminating certain positions which will not be filled following expected normal attrition throughout the second half of this year, and, for the first time in many years, eliminating certain positions across our television stations and certain business units. Importantly, despite these staffing changes, we will continue to employ journalists and meteorologists and continue to produce local newscasts in all of our existing local news markets, including small markets.
As a result of, and to account properly for, the costs to achieve these and certain additional cost containment measures, we currently anticipate recording a one-time charge of approximately $2 million in the fourth quarter of 2024.
Please see our “Results of Operations” and “Liquidity and Capital Resources” sections below for further discussion of our operating results.
Revenue
Set forth below are the principal types of revenue, less agency commissions, earned by us for the periods indicated and the percentage contribution of each type of revenue to our total revenue (dollars in millions):
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 |
2023 |
2024 |
2023 |
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| Percent |
Percent |
Percent |
Percent |
|||||||||||||||||||||||||||||
| Amount |
of Total |
Amount |
of Total |
Amount |
of Total |
Amount |
of Total |
|||||||||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||||||||||
| Core advertising |
$ | 365 | 38 | % | $ | 363 | 45 | % | $ | 1,110 | 43 | % | $ | 1,099 | 45 | % | ||||||||||||||||
| Political |
173 | 18 | % | 26 | 3 | % | 247 | 10 | % | 46 | 2 | % | ||||||||||||||||||||
| Retransmission consent |
369 | 39 | % | 378 | 47 | % | 1,121 | 43 | % | 1,167 | 48 | % | ||||||||||||||||||||
| Production companies |
26 | 3 | % | 20 | 3 | % | 68 | 3 | % | 54 | 3 | % | ||||||||||||||||||||
| Other |
17 | 2 | % | 16 | 2 | % | 53 | 1 | % | 51 | 2 | % | ||||||||||||||||||||
| Total |
$ | 950 | 100 | % | $ | 803 | 100 | % | $ | 2,599 | 100 | % | $ | 2,417 | 100 | % | ||||||||||||||||
Results of Operations
Three-Months Ended September 30, 2024 (“the 2024 three-month period”) Compared to Three-Months Ended September 30, 2023 (“the 2023 three-month period”)
Revenue. Total revenue increased $147 million, or 18% in the 2024 three-month period. During the 2024 three-month period:
| ● |
Core advertising revenue increased by $2 million or 1%, due in part to $20 million of advertising revenue on our 53 NBC channels from the broadcast of the 2024 Olympic Games; |
| ● |
Consistent with 2024 being the “on-year” of the two-year election cycle, political advertising revenue increased by $147 million, or 565%; |
| ● |
Retransmission consent revenue decreased by $9 million or 2%, due to a decrease in subscribers, offset, in part, by an increase in rates; and |
| ● |
Production company revenue increased by $6 million, or 30%, in the 2024 three-month period due to the start-up of our operations at Assembly Atlanta. |
Broadcasting Expenses. Broadcasting expenses (before depreciation, amortization and gain or loss on disposal of assets) increased $14 million, or 3%, to $571 million in the 2024 three-month period. During the 2024 three-month period:
| ● |
Broadcasting payroll expenses increased by $12 million as a result of routine increases in compensation and the filling of vacant positions. |
| ● |
Broadcasting non-payroll expenses increased by $1 million due to a combination of factors, none of which were individually significant. |
| ● |
Broadcasting non-cash stock-based compensation expense was approximately $1 million in each of the 2024 and 2023 three-month periods. |
Production Company Expenses. Production company operating expenses (before depreciation, amortization and gain or loss on disposal of assets) increased $4 million or 22% in the 2024 three-month period compared to the 2023 three-month period due primarily to increases in utilities, maintenance and property taxes at Assembly Atlanta is operational.
Corporate and Administrative Expenses. Corporate and administrative expenses (before depreciation, amortization and gain or loss on disposal of assets) increased by $1 million, or 4%, to $24 million. During the 2024 three-month period compensation expense increased by $2 million and professional services decreased by $1 million. Non-cash stock-based compensation expenses were $4 million in each of the 2024 and 2023 three-month periods.
Depreciation. Depreciation of property and equipment totaled $36 million in each of the 2024 and 2023 three-month periods.
Amortization. Amortization of intangible assets totaled $31 million and $48 million in the 2024 three-month period and the 2023 three-month period, respectively. The decrease in amortization expense was the result of finite-lived intangible assets becoming fully amortized and the impairment of certain finite-lived intangible assets in 2023.
Impairment of Goodwill and Other Intangible Assets. During the 2023 three-month period, we recognized a loss of $43 million for impairment of goodwill and other intangible assets related to the bankruptcy of Diamond Sports Group, LLC (“Diamond”)
Loss (Gain) on Disposal of Assets, Net. Loss on disposal of assets was $16 million in the 2024 three-month period primarily resulting from the acquisition of a construction permit to build Television station KCBU in exchange for the divestiture of television stations KCWY and KGWN that resulted in a loss of $14 million. In the 2023 three-month period, we reported a gain of $6 million.
Miscellaneous Income (Expense), Net. Miscellaneous income, net totaled $2 million in the 2024 three-month period and miscellaneous expense, net totaled $10 million in the 2023 three-month period, primarily due the write-off of an investment in the 2023 three-month period.
Interest Expense. Interest expense increased $19 million, or 17%, to $130 million for the 2024 three-month period compared to the 2023 three-month period. This increase was primarily attributable to increases in interest rates on our floating rate Senior Credit Agreement to 8.9% in the 2024 three-month period compared to 8.1% in the 2023 three-month period. Our average outstanding total long-term debt balance was $6.1 billion and $6.3 billion during the 2024 and 2023 three-month periods, respectively. Interest expense in the 2024 and 2023 three-month periods also included $3 million in each period, related to the non-cash amortization of fees for our interest rate cap agreement. Interest expense in each of the 2024 and 2023 three-month periods included $5 million, related to the amount outstanding under the Securitization Facility representing the amount outstanding under the facility at the one-month SOFR rate plus 1%.
Gain (Loss) from Early Extinguishment of Debt. During the 2024 three-month period, we have recorded a gain of $6 million primarily as a result of purchases of our 2027 Notes and 2021 Term Loans on the open market at a discount to their face value.
Income Tax Expense. We recognized income tax expense of $32 million and $3 million in the 2024 and 2023 three-month periods, respectively. Our effective income tax rates were 25% and (8%) in the 2024 and 2023 three-month periods, respectively. We estimate our differences between taxable income or loss and recorded income or loss on an annual basis. Our tax provision for each interim period is based upon these full year projections that are revised each reporting period. These projections incorporate estimates of permanent differences between U.S. GAAP income or loss and taxable income or loss, state income taxes and adjustments to our liability for unrecognized tax benefits. For the 2024 three-month period, these estimates increased our statutory federal income tax rate of 21% to our effective income tax rate of 25% as follows: state income taxes added 5%, permanent differences between our U.S. GAAP income and taxable income added 1% and changes to our reserve accounts reduced our rate by 2%.
Nine-Months Ended September 30, 2024 (“the 2024 nine-month period”) Compared to Nine-Months Ended September 30, 2023 (“the 2023 nine-month period”)
Revenue. Total revenue increased $182 million, or 8%, in the 2024 nine-month period from the 2023 nine-month period. During the 2024 nine-month period:
| ● |
Core advertising revenue increased by $11 million or 1%, due in part to advertising revenue of $18 million from the broadcast of the Super Bowl on our 54 CBS channels in the 2024 nine-month period, compared to $6 million of revenue relating to the broadcast of the Super Bowl on our 27 FOX channels during the 2023 nine-month period, and $20 million of advertising revenue on our 53 NBC channels from the broadcast of the 2024 Olympic Games; |
| ● |
Consistent with 2024 being the “on-year” of the two-year election cycle, political advertising revenue increased by $201 million, or 437%; |
| ● |
Retransmission consent revenue decreased by $46 million or 4%, due to a decrease in subscribers, offset, in part, by an increase in rates; and |
| ● |
Production company revenue increased by $14 million, or 26%, in the 2024 nine-month period due to the start-up of our operations at Assembly Atlanta. |
Broadcasting Expenses. Broadcasting expenses (before depreciation, amortization and gain or loss on disposal of assets) increased $55 million or 3%, to $1.7 billion. During the 2024 nine-month period:
| ● |
Broadcasting payroll expenses increased by $47 million as a result of routine increases in compensation, accruals for incentive compensation and the filling of vacant positions. |
| ● |
Broadcasting non-payroll expenses increased by $8 million primarily due to an increase in sports programming expenses, partially offset by reductions in retransmission expense. |
| ● |
Broadcast non-cash stock-based compensation expense was $4 million in each of the 2024 and 2023 nine-month periods. |
Production Company Expenses. Production company expenses (before depreciation, amortization, impairment and gain or loss on disposal of assets) decreased by approximately $31 million in the 2024 nine-month period to $57 million, compared to $88 million in the 2023 nine-month period. Production company operating expenses in the 2023 nine-month period included a $17 million allowance for credit losses related to the bankruptcy of Diamond, a counterparty in contracts with us and $18 million to settle litigation related to Assembly Atlanta.
Corporate and Administrative Expenses. Corporate and administrative expenses (before depreciation, amortization and gain or loss on disposal of assets) increased by $1 million, to $80 million in the 2024 nine-month period compared to the 2023 nine-month period. Non-cash stock-based compensation expenses increased to $13 million in the 2024 nine-month period compared to $11 million in the 2023 nine-month period.
Depreciation. Depreciation of property and equipment totaled $108 million and $106 million in the 2024 nine-month period and the 2023 nine-month period, respectively. Depreciation increased primarily due to the addition of depreciable assets.
Amortization. Amortization of intangible assets totaled $94 million and $147 million in the 2024 nine-month period and the 2023 nine-month period, respectively. Amortization decreased primarily due to finite-lived intangible assets becoming fully amortized.
Impairment of Goodwill and Other Intangible Assets. During the 2023 nine-month period we recognized a loss of $43 million for impairment of goodwill and other intangible assets related to the bankruptcy of Diamond.
Loss (Gain) on Disposals of Assets, Net. We recognized a loss on disposal of assets of $15 million in the 2024 nine-month period compared to a loss on disposal of assets of $20 million in the 2023 nine-month period. The loss in the 2024 nine-month period was primarily related to the acquisition of a construction permit to build television station KCBU in exchange for the divestiture of television stations KCWY and KGWN in which we recognized a loss of $14 million in the 2024 nine-month period. The loss in the 2023 nine-month period primarily related to the sale of television station KNIN, in which we recognized a loss of $14 million in the 2023 nine-month period.
Miscellaneous Income (Expense), Net. Miscellaneous income, net totaled $114 million in the 2024 nine-month period and $13 million of miscellaneous expense, net in the 2023 nine-month period. Miscellaneous income, net in the 2024 nine-month period was due primarily to a gain of $110 million from the sale of our investment in BMI. Miscellaneous expense, net in the 2023 nine-month period was due to the write-off of an investment.
Interest Expense. Interest expense increased $39 million, or 12%, to $363 million for the 2024 nine-month period compared to the 2023 nine-month period. This increase was primarily attributable to increases in interest rates on our floating rate Senior Credit Agreement to 8.5% in the 2024 nine-month period compared to 7.8% in the 2023 nine-month period. Our average outstanding total long-term debt balance was $6.2 billion and $6.3 billion during the 2024 and 2023 nine-month periods, respectively. Interest expense in the 2024 and 2023 nine-month periods also included $9 million and $7 million, respectively, related to the non-cash amortization of fees for our interest rate cap agreement. Interest expense in the 2024 and 2023 nine-month periods included $15 million and $11 million, respectively, related to the amount outstanding under the Securitization Facility representing the amount outstanding under the facility at the one-month SOFR rate plus 1%.
Loss from Early Extinguishment of Debt. The actions taken in our 2024 refinancing activities have resulted in a total net loss on early extinguishment of debt of $1 million in the 2024 nine-month period. The components of this net loss include:
| ● |
A gain of $6 million from the repurchase of our 2027 Notes in the open market at a discount; |
| ● |
A gain of $1 million from the repurchase of our 2021 Term Loans in the open market at a discount; and |
| ● |
A loss of $8 million from the write-off of unamortized deferred financing costs related to the loans that were pre-paid in the 2024 refinancing activities. |
Income Tax (Benefit) Expense. We recognized an income tax expense of $70 million and an income tax benefit of $3 million in the 2024 and 2023 nine-month periods, respectively. Our effective income tax rates were 25% and 4% in the 2024 and 2023 nine-month periods, respectively. We estimate our differences between taxable income or loss and recorded income or loss on an annual basis. Our tax provision for each interim period is based upon these full year projections that are revised each reporting period. These projections incorporate estimates of permanent differences between U.S. GAAP income or loss and taxable income or loss, state income taxes and adjustments to our liability for unrecognized tax benefits. For the 2024 nine-month period, these estimates increased our statutory federal income tax rate of 21% to our effective income tax rate of 25% as follows: state income taxes added 5%, permanent differences between our U.S. GAAP income and taxable income added 1% and changes to our reserve accounts reduced our rate by 2%.
Liquidity and Capital Resources
General
The following table presents data that we believe is helpful in evaluating our liquidity and capital resources (in millions):
| Nine Months Ended September 30, |
||||||||
| 2024 |
2023 |
|||||||
| Net cash provided by operating activities |
$ | 383 | $ | 565 | ||||
| Net cash provided by (used in) investing activities |
10 | (259 | ) | |||||
| Net cash used in financing activities |
(345 | ) | (346 | ) | ||||
| Net (decrease) increase in cash |
$ | 48 | $ | (40 | ) | |||
| As of |
||||||||
| September 30, 2024 |
December 31, 2023 |
|||||||
| Cash |
$ | 69 | $ | 21 | ||||
| Long-term debt, including current portion, less deferred financing costs |
$ | 5,893 | $ | 6,160 | ||||
| Series A Perpetual Preferred Stock |
$ | 650 | $ | 650 | ||||
| Borrowing availability under Revolving Credit Facility |
$ | 674 | $ | 494 | ||||
Net Cash Provided By (Used In) Operating, Investing and Financing Activities. Net cash provided by operating activities was $383 million in the 2024 nine-month period compared to $565 million in the 2023 nine-month period. The decrease in net cash provided by operating activities in the 2024 nine-month period compared to the 2023 nine-month period was due primarily to an increase in net income, a decrease in impairment of goodwill and intangible assets, an increase in gain on sale of investments and a decrease in working capital.
Net cash provided by investing activities was $10 million in the 2024 nine-month period compared to net cash used in investing activities of $259 million for the 2023 nine-month period. The increase in the net amount provided was primarily due to a decrease in cash used for purchases of property and equipment and an increase in proceeds received from the sale of investments and other assets.
Net cash used in financing activities was $345 million in the 2024 nine-month period compared to net cash used in financing activities of $346 million in the 2023 nine-month period. Excluding temporary borrowings and re-payments of amounts under our Revolving Credit Facility, in the 2024 nine-month period, we issued $1.25 billion in of our 2029 Notes and $500 million of the 2024 Term Loan to pre-pay our $1.2 billion 2019 Term Loan all under the Senior Credit Facility. In addition, we repurchased in a tender offer, $690 million of face value of our outstanding 2026 Notes. In connection with these transactions, we paid $47 million in fees and expenses. Furthermore, in the 2024 nine-month period, we used $72 million, to repurchase a portion of our 2027 Notes, and $14 million, to repurchase a portion of our 2021 Term Loan on the open market. During each period, we used $39 million of cash to pay dividends to holders of our preferred stock. During 2024 and 2023 nine-month periods, we used $24 million and $22 million, respectively, to pay dividends to holders of our common stock.
Liquidity. Based on our debt outstanding as of September 30, 2024, we estimate that we will make approximately $487 million in debt interest payments over the twelve months immediately following September 30, 2024. Although our cash flows from operations are subject to a number of risks and uncertainties, we anticipate that our cash on hand, future cash expected to be generated from operations, borrowings from time to time under the Senior Credit Facility (or any such other credit facility as may be in place at the appropriate time) and, potentially, external equity or debt financing, will be sufficient to fund any debt service obligations, estimated capital expenditures and acquisition-related obligations for the next twelve months and the forseeable future. Any potential equity or debt financing would depend upon, among other things, the costs and availability of such financing at the appropriate time. We also believe that our future cash expected to be generated from operations and borrowing availability under the Senior Credit Facility (or any such other credit facility) will be sufficient to fund our future capital expenditures and long-term debt service obligations for the next twelve months and the forseeable future.
Collateral, Covenants and Restrictions of our credit agreements. Our obligations under the Senior Credit Agreement and the 2029 Notes are secured by substantially all of our consolidated assets, excluding real estate. In addition, substantially all of our subsidiaries are joint and several guarantors of, and our ownership interests in those subsidiaries are pledged to collateralize, our obligations under the Senior Credit Agreement. Gray Television, Inc. is a holding company, and has no material independent assets or operations. For all applicable periods, the 2026 Notes, 2027 Notes, 2030 Notes and 2031 Notes have been fully and unconditionally guaranteed, on a joint and several, senior unsecured basis, by substantially all of Gray Television, Inc.’s subsidiaries. Any subsidiaries of Gray Television, Inc. that do not guarantee the 2026 Notes, 2027 Notes, 2030 Notes and 2031 Notes are not material or are designated as unrestricted under the Senior Credit Agreement. As of September 30, 2024, June 30, 2024 and March 31, 2024, there were no significant restrictions on the ability of Gray Television, Inc.’s subsidiaries to distribute cash to Gray or to the guarantor subsidiaries.
The Senior Credit Agreement contains affirmative and restrictive covenants with which we must comply, including: (a) limitations on additional indebtedness, (b) limitations on liens, (c) limitations on the sale of assets, (d) limitations on guarantees, (e) limitations on investments and acquisitions, (f) limitations on the payment of dividends and share repurchases, (g) limitations on mergers and (h) maintenance of the First Lien Leverage Ratio while any amount is outstanding under the revolving credit facility, as well as other customary covenants for credit facilities of this type. The 2026 Notes, 2027 Notes, 2029 Notes, 2030 Notes and 2031 Notes include covenants with which we must comply which are typical for financing transactions of their nature. As of September 30, 2024, June 30, 2024 and March 31, 2024, we were in compliance with all required covenants under all of our debt obligations.
In addition to results prepared in accordance with U.S. GAAP, “Leverage Ratio Denominator” is a metric that management uses to calculate our compliance with our financial covenants in our indebtedness agreements. This metric is calculated as specified in our Senior Credit Agreement and is a significant measure that represents the denominator of a formula used to calculate compliance with material financial covenants within the Senior Credit Agreement that govern our ability to incur indebtedness, incur liens, make investments and make restricted payments, among other limitations usual and customary for credit agreements of this type. Accordingly, management believes this metric is a very material metric to our debt and equity investors.
Leverage Ratio Denominator gives effect to the revenue and broadcast expenses of all completed acquisitions and divestitures as if they had been acquired or divested, respectively, on October 1, 2022. It also gives effect to certain operating synergies expected from the acquisitions and related financings, and adds back professional fees incurred in completing the acquisitions. Certain of the financial information related to the acquisitions, if applicable, has been derived from, and adjusted based on, unaudited, un-reviewed financial information prepared by other entities, which Gray cannot independently verify. We cannot assure you that such financial information would not be materially different if such information were audited or reviewed and no assurances can be provided as to the accuracy of such information, or that our actual results would not differ materially from this financial information if the acquisitions had been completed on the stated date. In addition, the presentation of Leverage Ratio Denominator as determined in the Senior Credit Agreement and the adjustments to such information, including expected synergies, if applicable, resulting from such transactions, may not comply with U.S. GAAP or the requirements for pro forma financial information under Regulation S-X under the Securities Act of 1933. Leverage Ratio Denominator, as determined in the Senior Credit Agreement, represents an average amount for the preceding eight quarters then ended.
Our “Adjusted Total Indebtedness”, “First Lien Adjusted Total Indebtedness” and “Secured Adjusted Total Indebtedness”, in each case “Net of All Cash”, represents the amount of outstanding principal of our long-term debt, plus certain other obligations as defined in our Senior Credit Agreement, less all cash (excluding restricted cash) for the applicable amount of indebtedness.
Below is a calculation of our “Leverage Ratio”, “First Lien Leverage Ratio” and “Secured Leverage Ratio” as defined in our Senior Credit Agreement as of September 30, 2024:
| Eight Quarters Ended |
||||
| September 30, 2024 |
||||
| (in millions) |
||||
| Net income |
$ | 316 | ||
| Adjustments to reconcile from net income to Leverage Ratio Denominator as defined in our Senior Credit Agreement: |
||||
| Depreciation |
287 | |||
| Amortization of intangible assets |
339 | |||
| Non-cash stock-based compensation |
42 | |||
| Common stock contributed to 401(k) plan |
19 | |||
| Loss on disposal of assets, net |
39 | |||
| Gain on disposal of investment, not in the ordinary course |
(110 | ) | ||
| Interest expense |
903 | |||
| Loss on early extinguishment of debt |
4 | |||
| Income tax expense |
122 | |||
| Impairment of investment |
90 | |||
| Amortization of program broadcast rights | 69 | |||
| Payments for program broadcast rights |
(71 | ) | ||
| Pension benefit |
(5 | ) | ||
| Contributions to pension plans |
(4 | ) | ||
| Adjustments for unrestricted subsidiaries |
37 | |||
| Adjustments for stations acquired or divested, financings and expected synergies during the eight quarter period |
(1 | ) | ||
| Transaction Related Expenses |
3 | |||
| Other |
3 | |||
| Total eight quarters ended September 30, 2024 |
$ | 2,082 | ||
| Leverage Ratio Denominator (total eight quarters ended September 30, 2024, divided by 2) |
$ | 1,041 | ||
| September 30, 2024 |
||||
| (dollars in millions) |
||||
| Total outstanding principal, including current portion |
$ | 5,969 | ||
| Letters of credit outstanding |
6 | |||
| Cash |
(69 | ) | ||
| Adjusted Total Indebtedness |
$ | 5,906 | ||
| Leverage Ratio (maximum permitted incurrence is 7.00 to 1.00) |
5.67 | |||
| Total outstanding principal secured by a first lien |
$ | 3,188 | ||
| Cash |
(69 | ) | ||
| First Lien Adjusted Total Indebtedness |
$ | 3,119 | ||
| First Lien Leverage Ratio (maximum permitted incurrence is 3.50 to 1.00) (1) |
3.00 | |||
| Total outstanding principal secured by a liens |
$ | 3,188 | ||
| Cash |
(69 | ) | ||
| Secured Adjusted Total Indebtedness |
$ | 3,119 | ||
| Secured Leverage Ratio (maximum permitted incurrence is 5.50 to 1.00) |
3.00 | |||
| (1) At any time any amounts are outstanding under our revolving credit facility, our maximum First Lien Leverage Ratio cannot exceed 4.25 to 1.00. |
Debt. As of September 30, 2024, long-term debt consisted of obligations under our Senior Credit Facility, the $10 million in aggregate principal amount outstanding under 2026 Notes, the $671 million in aggregate principal amount outstanding of our 2027 Notes, the $1.25 billion in aggregate principal amount of our 2029 Notes, the $800 million in aggregate principal amount outstanding of our 2030 Notes and the $1.3 billion outstanding of our 2031 Notes. As of September 30, 2024, the Senior Credit Facility provided total commitments of $2.6 billion, consisting of a $1.4 billion term loan facility, a $499 million term loan facility, and $674 million available under our revolving credit facility. We were in compliance with the covenants in these debt agreements at September 30, 2024.
Repurchase of Debt and Subsequent Event. 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. On November 7, 2024, our Board of Directors authorized an increase in our debt repurchase authorization to repurchase additional debt in the open market, which replenished the previous authorization, bringing the total current authorization to $250 million. 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. During the nine-months ended September 30, 2024, we used $72 million of cash to repurchase and retire $79 million of the face value of our outstanding 2027 Notes, resulting in a $7 million gain from early extinguishment of debt. In addition, during the nine-months ended September 30, 2024, we used $14 million of cash to repurchase and retire $15 million of the face value of our 2021 Term Loans on the open market, resulting in a $2 million gain from early extinguishment of debt. At September 30, 2024, we were obligated to repurchase and additional $7 million of face value of our 2021 Term Loans on the open market for $6 million and this transaction will be completed later in the fourth quarter of 2024, using cash on hand.
On September 25, 2024, we entered into a forward debt repurchase agreement with a lender to purchase on the open market up to $50 million of our 2021 Term Loans. As a result of this agreement, the lender has repurchased $32 million of the face value of our outstanding 2021 Term Loans for $30 million, under this plan. We plan to repurchase and retire these portions of our 2021 Term Loan in the fourth quarter of 2024 using cash on hand.
Capital Expenditures. We currently expect capital expenditures for full-year 2024 of $135 million, which includes approximately $35 million, net of reimbursements, related to Assembly Atlanta. We expect additional reimbursements of approximately $18 million in first quarter of 2025 related to 2024 capital expenditures at Assembly Atlanta.
Acquisition and Divestitures. On July 1, 2024, we completed a transaction with Marquee Broadcasting, Inc. (“Marquee”) in which we sold our television stations KCWY (NBC) in the Casper, Wyoming market (DMA 198) and KGWN (CBS) in the Cheyenne, Wyoming market (DMA 194) in exchange for Marquee’s FCC permit authorizing the construction of a new television station, that will be built in the Salt Lake City, Utah market (DMA 27), and will be known as KCBU. No cash or other consideration was exchanged to fulfill the terms of this exchange. The sale of television station KCWY and KGWN resulted in a non-cash loss on disposal of $14 million.
Other. We file a consolidated federal income tax return and such state and local tax returns as are required. During the nine-months ended September 30, 2024, we made federal or state income tax payments totaling $130 million, net of refunds. During the fourth quarter of 2024, we anticipate making income tax payments, net of refunds, of approximately $3 million. As of September 30, 2024, we have an aggregate of approximately $282 million of various state operating loss carryforwards, of which we expect that approximately $201 million will not be utilized due to section 382 limitations and those that will expire prior to utilization. After applying our state effective tax rate, this amount is included in our valuation allowance for deferred tax assets.
Critical Accounting Policies
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments and estimations that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. We consider our accounting policies relating to intangible assets and income taxes to be critical policies that require judgments or estimations in their application where variances in those judgments or estimations could make a significant difference to future reported results. These critical accounting policies and estimates are more fully discussed in our 2023 Form 10-K.
Cautionary Note Regarding Forward-Looking Statements
This quarterly report on Form 10-Q contains and incorporates by reference “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. Forward-looking statements are all statements other than those of historical fact. When used in this annual report, the words “believes,” “expects,” “anticipates,” “estimates,” “will,” “may,” “should” and similar words and expressions are generally intended to identify forward-looking statements. These forward-looking statements reflect our then-current expectations and are based upon data available to us at the time the statements are made. Forward-looking statements may relate to, among other things, the economy in general, our strategies, expected results of operations, general and industry-specific economic conditions, future pension plan contributions, future capital expenditures, future proceeds from Assembly Atlanta CID infrastructure related payments and land sales, future income tax payments, future payments of interest and principal on our long-term debt, future interest expenses under our Securitization Facility, future interest expense under our interest rate caps, assumptions underlying various estimates and estimates of future obligations and commitments, and should be considered in context with the various other disclosures made by us about our business. Readers are cautioned that any forward-looking statements, including those regarding the intent, belief or current expectations of our management, are not guarantees of future performance, results or events and involve significant risks and uncertainties, and that actual results and events may differ materially from those contained in the forward-looking statements as a result of various factors including, but not limited to, those listed in Item 1A. of our Annual Report and the other factors described from time to time in our SEC filings. The forward-looking statements included in this quarterly report are made only as of the date hereof. We undertake no obligation to update such forward-looking statements to reflect subsequent events or circumstances.
| Item 3. |
Quantitative and Qualitative Disclosure About Market Risk |
We believe that the market risk of our financial instruments as of September 30, 2024 has not materially changed since December 31, 2023. Our market risk profile on December 31, 2023 is disclosed in our 2023 Form 10-K.
| Item 4. |
Controls and Procedures |
Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this Quarterly Report, an evaluation was carried out under the supervision and with the participation of management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the design and operation of the Company’s “disclosure controls and procedures” (as defined in Rule 13a-15(e))under the Securities Exchange Act of 1934, as amended. Based on this evaluation, the CEO and CFO have concluded that our controls and procedures were effective as of September 30, 2024.
Changes in Internal Control Over Financial Reporting. There have been no changes in the Company’s internal control over financial reporting during the nine-months ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II. OTHER INFORMATION
| Item 1. |
Legal Proceedings |
As of the date of this filing, there have been no additional material legal proceedings or material developments in the legal proceedings disclosed in Part 1, Item 3, of our Annual Report on Form 10-K for the year ended December 31, 2023. For more information, see Note 10. “Commitments and Contingencies” within the accompanying condensed consolidated financial statements.
| Item 1A. |
Risk Factors |
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors that affect our business and financial results that are discussed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. These factors could materially adversely affect our business, financial condition, liquidity, results of operations and capital position, and could cause our actual results to differ materially from our historical results or the results contemplated by the forward-looking statements contained in this report. There have been no material changes to such risk factors.
| Item 5. | Other Information |
of the Company’s directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as defined in Item 408 of Regulation S-K, during the Company’s fiscal quarter ended September 30, 2024.
| Item 6. |
Exhibits |
The following exhibits are filed as part of this Quarterly Report:
| Exhibit Number |
Description of Document |
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| 31.1 |
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| 31.2 |
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| 32.1 |
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| 32.2 |
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| 101.SCH |
Inline XBRL Taxonomy Extension Schema Document |
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| 101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
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| 101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
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| 101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document |
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| 101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
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| 104 |
The cover page from Gray Television, Inc.’s Quarterly Report on Form 10-Q for the fiscal period ended September 30, 2024 has been formatted in Inline XBRL and contained in Exhibit 101. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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GRAY TELEVISION, INC. (Registrant) |
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| Date: November 8, 2024 |
By: |
/s/ Jeffrey R. Gignac |
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Jeffrey R. Gignac |
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Executive Vice President and Chief Financial Officer |
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