美國
證券交易委員會
華盛頓特區20549
表格
(做一個標記)
截至2024年6月30日季度結束
過渡期間從_________ 至_________ 。
委員會文件編號
| 灰色電視台公司。 |
| （依憑章程所載的完整登記名稱） |
| | | |
| (成立地或組織其他管轄區) | （國稅局雇主身份識別號碼） | |
| | | |
| (總部辦公地址) | （郵遞區號） |
| ( |
| (註冊公司之電話號碼，包括區號) |
| 不適用 |
| (如自上次報告以來有更改，請提供前名稱、前地址和前財政年度。) |
根據法案第12(b)條規定註冊的證券：
| 每個類別的標題 | 交易標的（s） | 每個註冊交易所的名稱 |
請複選，以表示以下情況：（1）在過去12個月內（或對於公司必須提交此類報告的更短時期），公司已提交證券交易法案第13條或第15(d)條要求提交的所有報告；並且（2）公司在過去90天內一直受到此類報告要求的限制。
在前12個月內（或公司需要提交這些文件的較短時間內），公司是否已通過選中標記表明已閱讀並提交了應根據S-t法規第405條規定（本章第232.405條）提交的所有互動式數據文件？
勾選此格以指示登記人是否為大型高速進行申報的申報人、高速進行申報的申報人、非高速進行申報的申報人、較小型報告公司或新興成長公司。請參閱《交易所法令》第120億2條中有關“大型高速進行申報人”、“高速進行申報人”、“較小型報告公司”和“新興成長公司”的定義。
| 加速提交人 ☐ | |||
| 非加速申報者 ☐ | 較小的報告公司 | ||
| 新興成長型公司 |
如果是新興成長型企業，在符合任何依據證券交易法第13(a)條所提供的任何新的或修改的財務會計準則的遵循的延伸過渡期方面，是否選擇不使用核准記號進行指示。☐
在核准的名冊是否屬於殼公司（如股市法規第1202條所定義之意義）方面，請用勾選符號表示。是
請指示每一類常股的流通股份數目，截至最近實際可行日期。
| 普通股（無面值） | A類普通股（無面值） | |
| | |
指数
灰色電視公司。
| 第一部分。 |
財務信息 |
頁碼 |
| 項目 1。 |
基本報表 |
|
| 未經審核的總合資產負債表 - 2024年9月30日和2023年12月31日 |
3 |
|
| 未經審核的綜合營運報表 - 截至2024年9月30日和2023年的三個月和九個月 |
5 |
|
| 未經審核的綜合損益報表 - 截至2024年9月30日和2023年的三個月和九個月 |
6 |
|
| 未經審核的股東權益簡明綜合基本報表──截至2024年和2023年3月31日、6月30日和9月30日的三個月期間 |
7 |
|
| 未經審核的簡明綜合基本報表──截至2024年和2023年9月30日的九個月期間現金流量簡表 |
9 |
|
| 未經審核的簡明綜合基本報表附註 |
10 |
|
| 项目2。 |
管理層對財務狀況和營運成果的討論與分析 |
26 |
| 项目3。 |
市場風險的定量和定性披露。 |
35 |
| 項目 4。 |
內部控制及程序 |
35 |
| 第二部分。 |
其他信息 |
|
| 項目 1。 | 法律訴訟 | 35 |
| 项目1A。 |
風險因素 |
35 |
| 项目5。 |
其他信息 |
36 |
| 第6項。 |
展品 |
36 |
| 簽名 |
37 |
| 第一部分。 |
財務信息 |
| 項目1. |
基本報表 |
格雷電視，有限公司。
簡明合併資產負債表（未經審計）
(單位：百萬)
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 資產: | ||||||||
| 流動資產： | ||||||||
| 現金 | $ | $ | ||||||
| 應收賬款，減去信用損失準備金 $ 和 $, 分別 | ||||||||
| 當前節目廣播權的淨資產 | ||||||||
| 應收所得稅退款 | ||||||||
| 預付所得稅 | ||||||||
| 預付賬款及其他流動資產 | ||||||||
| 總流動資產 | ||||||||
| 物業及設備（淨額） | ||||||||
| 經營租賃使用權資產 | ||||||||
| 廣播許可證 | ||||||||
| 商譽 | ||||||||
| 其他無形資產，淨值 | ||||||||
| 對廣播和科技公司的投資 | ||||||||
| 遞延養老金資產 | ||||||||
| 其他 | ||||||||
| 總資產 | $ | $ | ||||||
請參閱簡化合並基本報表的附註。
格雷電視，有限公司。
簡明合併資產負債表（未經審計）
(以百萬爲單位，除股票數據外)
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 負債和股東’ 產權： | ||||||||
| 流動負債： | ||||||||
| 應付賬款 | $ | $ | ||||||
| 員工薪酬和福利 | ||||||||
| 應計利息 | ||||||||
| 應計網絡節目費用 | ||||||||
| 其他應計費用 | ||||||||
| 聯邦和州所得稅 | ||||||||
| 當前節目廣播義務部分 | ||||||||
| 遞延收入 | ||||||||
| 應付股息 | ||||||||
| 當前運營租賃負債部分 | ||||||||
| 長期債務的流動部分 | ||||||||
| 總流動負債 | ||||||||
| 長期債務，扣除當前部分和遞延融資成本 | ||||||||
| 節目的廣播義務，扣除當前部分 | ||||||||
| 遞延所得稅 | ||||||||
| 經營租賃負債，扣除流動部分 | ||||||||
| 其他 | ||||||||
| 總負債 | ||||||||
| 承諾及或有事項（附註10） | ||||||||
| A系列永久優先股， 面值；累計；可贖回；指定 股份，已發行並流通 股份，在每個日期和$ 總清算價值，在每個日期 | ||||||||
| 股東權益： | ||||||||
| 普通股， 面值; 授權 股票，已發行 股份和 股份，分別爲流通在外的 股份和 股份，分別 | ||||||||
| Class A common stock, 面值; 授權 股票，已發行 股份和 股份，分別是流通的 股份和 股份，分別 | ||||||||
| 滾存收益 | ||||||||
| 累計其他綜合損失，扣除所得稅利益 | ( | ) | ( | ) | ||||
| 以成本計的庫存股，普通股， 股份和 股份，分別 | ( | ) | ( | ) | ||||
| 以成本計的庫存股，A類普通股， 股份和 股份，分別 | ( | ) | ( | ) | ||||
| 股東權益總額 | ||||||||
| 總負債和股東權益 | $ | $ | ||||||
見簡明合併財務報表附註。
格雷電視，有限公司。
濃縮合並經營報表（未經審計）
(以百萬爲單位，除每股數據外)
| 截至三個月 |
截至九個月 |
|||||||||||||||
| 九月三十日 |
九月三十日 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 營業收入（減去代理佣金）： |
||||||||||||||||
| 廣播 |
$ | $ | $ | $ | ||||||||||||
| 製作公司 |
||||||||||||||||
| 總收入（扣除代理佣金） |
||||||||||||||||
| 在折舊、攤銷、減值以及資產處置的損失（收益）之前的營業費用，淨值： |
||||||||||||||||
| 廣播 |
||||||||||||||||
| 製作公司 |
||||||||||||||||
| 企業及管理 |
||||||||||||||||
| 折舊 |
||||||||||||||||
| 無形資產攤銷 |
||||||||||||||||
| 商譽及其他無形資產的減值 |
||||||||||||||||
| 資產處置損失（收益），淨額 |
( |
) | ||||||||||||||
| 營業費用 |
||||||||||||||||
| 營業收入 |
||||||||||||||||
| 其他收入（費用）： |
||||||||||||||||
| 其他收入（支出），淨額 |
( |
) | ( |
) | ||||||||||||
| 利息支出 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 債務提前清償的收益（虧損） |
( |
) | ( |
) | ||||||||||||
| 稅前收入（虧損） |
( |
) | ( |
) | ||||||||||||
| 所得稅費用（收益） |
( |
) | ||||||||||||||
| 凈利潤（虧損） |
( |
) | ( |
) | ||||||||||||
| 優先股分紅 |
||||||||||||||||
| 歸屬於普通股東的凈利潤（虧損） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 每股基本信息： |
||||||||||||||||
| 歸屬於普通股東的凈利潤（虧損） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 加權平均流通股數 |
||||||||||||||||
| 每股攤薄信息： |
||||||||||||||||
| 歸屬於普通股東的凈利潤（虧損） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 加權平均流通股數 |
||||||||||||||||
| . | ||||||||||||||||
| 每股分紅派息 |
$ | $ | $ | $ | ||||||||||||
請參閱簡化合並基本報表的附註。
格雷電視，有限公司。
壓縮合並綜合收益表（損失）（未經審計）
(單位：百萬)
| 截至三個月 |
截至九個月 |
|||||||||||||||
| 九月三十日 |
九月三十日 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 凈利潤（虧損） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| 其他全面損失： |
||||||||||||||||
| 調整 - 利率上限的公允價值 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 所得稅優惠 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 其他綜合損益，淨額 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 綜合收益（損失） |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
請參閱簡化合並基本報表的附註。
格雷電視，有限公司。
簡明合併股東權益報表（未經審計）
(以百萬爲單位，除股票數量外)
| 累計 |
||||||||||||||||||||||||||||||||||||||||
| A類 |
A類 |
普通股 |
其他 |
|||||||||||||||||||||||||||||||||||||
| 普通股 |
普通股 |
留存收益 |
庫存股 |
庫存股 |
綜合的 |
|||||||||||||||||||||||||||||||||||
| 股份 |
金額 |
股份 |
金額 |
業績 |
股份 |
金額 |
股份 |
金額 |
Loss |
總計 |
||||||||||||||||||||||||||||||
| 截至2022年12月31日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
| 淨損失 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 優先股分紅 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股股息 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 利率上限公允價值調整，稅後淨額 |
- | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股發行： |
||||||||||||||||||||||||||||||||||||||||
| 401(k)計劃 |
||||||||||||||||||||||||||||||||||||||||
| 2017年股權和激勵補償計劃： |
||||||||||||||||||||||||||||||||||||||||
| 限制性股票獎勵 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
| 限制性股票單位獎勵 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
| 基於股票的補償 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 截至2023年3月31日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
| 凈利潤 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 優先股分紅 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股股息 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 利率上限的公允價值調整，扣除稅費 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 普通股發行： |
||||||||||||||||||||||||||||||||||||||||
| 2017年股權和激勵補償計劃： |
||||||||||||||||||||||||||||||||||||||||
| 限制性股票獎勵 |
( |
) | ||||||||||||||||||||||||||||||||||||||
| 基於股票的補償 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 截至2023年6月30日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
| 淨損失 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 優先股分紅 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股送轉 |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||||||||||||||||||
| 利率上限公允價值調整，稅後淨額 |
- | - | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
| 基於股票的補償 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
| 截至2023年9月30日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||
請參閱簡化合並基本報表的附註。
格雷電視，有限公司。
簡明合併股東權益報表（未經審計）
(以百萬爲單位，除股票數量外)
| 累計 |
|||||||||||||||||||||||||||||||||||||
| A類 |
A類 |
普通股 |
其他 |
||||||||||||||||||||||||||||||||||
| 普通股 |
普通股 |
留存收益 |
庫存股 |
庫存股 |
綜合的 |
||||||||||||||||||||||||||||||||
| 股份 |
金額 |
股份 |
金額 |
業績 |
股份 |
金額 |
股份 |
金額 |
Loss |
總計 |
|||||||||||||||||||||||||||
| 截至2023年12月31日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
| 凈利潤 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 優先股分紅 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股股息 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股發行： |
|||||||||||||||||||||||||||||||||||||
| 401(k)計劃 |
|||||||||||||||||||||||||||||||||||||
| 2022年股權和激勵補償計劃： |
|||||||||||||||||||||||||||||||||||||
| 限制性股票獎勵 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||
| 限制性股票單位獎勵 |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
| 基於股票的補償 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 截至2024年3月31日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
| 凈利潤 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 優先股分紅 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股送轉 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 利率上限公允價值調整，扣除稅款 |
- | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||
| 普通股發行： |
|||||||||||||||||||||||||||||||||||||
| 2022年股權與激勵補償計劃： |
|||||||||||||||||||||||||||||||||||||
| 限制性股票獎勵 |
( |
) | |||||||||||||||||||||||||||||||||||
| 基於股票的補償 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 截至2024年6月30日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
| 凈利潤 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 優先股分紅 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 普通股送轉 |
- | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||
| 利率上限公允價值調整，稅後淨額 |
- | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||
| 基於股票的補償 |
- | - | - | - | |||||||||||||||||||||||||||||||||
| 截至2024年9月30日的餘額 |
$ | $ | $ | ( |
) | $ | ( |
) | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||
請參閱簡化合並基本報表的附註。
格雷電視，有限公司。
縮減合併現金流量表（未經審計）
(以百萬爲單位)
| 截至九個月 |
||||||||
| 九月三十日 |
||||||||
| 2024 |
2023 |
|||||||
| 經營活動： |
||||||||
| 凈利潤（虧損） |
$ | $ | ( |
) | ||||
| 對凈利潤（虧損）與淨現金提供之間的調整 |
||||||||
| 經營活動： |
||||||||
| 折舊 |
||||||||
| 無形資產攤銷 |
||||||||
| 遞延貸款成本的攤銷 |
||||||||
| 基於股票的補償攤銷 |
||||||||
| 節目播出權的攤銷 |
||||||||
| 節目播出義務上的支付 |
( |
) | ( |
) | ||||
| 遞延所得稅 |
( |
) | ( |
) | ||||
| 資產處置損失，淨額 |
||||||||
| 投資出售的收益 |
( |
) | ||||||
| 提前償還債務造成的損失 |
||||||||
| 投資減值 |
||||||||
| 商譽及其他無形資產的減值 |
||||||||
| 其他 |
( |
) | ||||||
| 經營資產和負債的變動： |
||||||||
| 應收賬款，淨額 |
( |
) | ||||||
| 應收或預付的所得稅 |
( |
) | ||||||
| 其他流動資產 |
( |
) | ||||||
| 應付賬款 |
( |
) | ( |
) | ||||
| 員工薪酬、福利和養老金費用 |
( |
) | ( |
) | ||||
| 應計網絡費用和其他開支 |
||||||||
| 應計利息 |
||||||||
| 應付所得稅 |
( |
) | ( |
) | ||||
| 遞延收入 |
||||||||
| 經營活動提供的淨現金 |
||||||||
| 投資活動： |
||||||||
| 企業及廣播許可證的收購，扣除已獲取現金 |
( |
) | ||||||
| 出售電視台的收入 |
||||||||
| 購買房產和設備 |
( |
) | ( |
) | ||||
| 資產出售的收入 |
||||||||
| 投資出售的收入 |
||||||||
| 開發成本的報銷 |
||||||||
| 對廣播、製作和科技公司的投資 |
( |
) | ( |
) | ||||
| 其他 |
( |
) | ( |
) | ||||
| 投資活動提供的（使用的）淨現金 |
( |
) | ||||||
| 融資活動： |
||||||||
| 長期債務借款的借款額 |
||||||||
| 長期債務的借款償還 |
( |
) | ( |
) | ||||
| 普通股的送轉支付 |
( |
) | ( |
) | ||||
| 優先股的送轉支付 |
( |
) | ( |
) | ||||
| 遞延及其他貸款成本 |
( |
) | ||||||
| 與股權獎勵淨分享結算相關的稅款支付 |
( |
) | ( |
) | ||||
| 融資活動所使用的淨現金 |
( |
) | ( |
) | ||||
| 現金的淨增加（減少） |
( |
) | ||||||
| 期初現金 |
||||||||
| 期末現金 |
$ | $ | ||||||
請參閱簡化合並基本報表的附註。
格雷電視，有限公司。
壓縮合並基本報表的附註（未經審計）
| 1. | 財務報表的基礎 |
格雷電視公司及其合併子公司的伴隨簡明合併資產負債表（除非上下文另有規定，以下稱爲「格雷」、「公司」、「我們」、「我們」、「我們的」）截至 2023年12月31日， 該財務數據來源於截至的公司經審計的基本報表 2023年12月31日， 以及我們截至的伴隨未經審計的簡明合併基本報表 2024年9月30日 並且針對 三 和 九個月期間-月末期間結束 2024年9月30日 和 2023, 已按照在美國普遍接受的會計原則（「美國通用會計準則」）爲臨時基本報表編制，並遵循表格的指示 10-Q 10 的S-規定X. 因此，根據這些規則和規定，通常包含在符合美國公認會計原則（U.S. GAAP）編制的年度基本報表中的某些信息和註釋披露已被縮減或省略，儘管我們相信所做的披露已足夠以使信息。 不 具有誤導性。在我們看來，爲了公正呈現而考慮的所有調整（僅包括正常的定期調整）都已被包括在內。我們根據以下方式管理我們的業務： 業務部門：廣播和製作公司。除非另有說明，否則本文中所有電臺排名、市場份額和電視家庭數據均來自尼爾森公司（The Nielsen Company, LLC）和/或康姆斯克（Comscore, Inc.）準備的報告。雖然我們相信這些數據是準確和可靠的，但我們並未 不 獨立核實這些數據，也未確認其中所依賴的基本假設，因此不能保證這些數據的準確性或完整性。有關更多信息，請參閱我們的年度報告（Annual Report）中包含的合併基本報表及其腳註，表格 10-k截至 2023年12月31日（在 “2023 表格 10-K）。我們截至目前的金融控制項及運營結果爲 三 和 九個月期間-月結束 截止到2024年9月30日， 被 不 並不一定表明基本報表或結果的控制項 可能 在任何未來的間歇性期間或截至 2024年12月31日。
概述。 我們是一家總部位於佐治亞州亞特蘭大的多媒體公司。我們是美國收視率最高的本地電視臺和數字資產服務的最大所有者
對廣播、製作和科技公司的投資。 我們對幾家電視、製作和科技公司進行了投資。我們根據權益法對所有重大投資進行會計處理，對我們有重大影響的被投資單位的投資進行記錄。在初始投資時，我們按成本確認權益法投資。最初確認的金額隨後根據我們在被投資單位淨收益或損失中的相應份額進行調整。我們記錄被投資單位的損失，最多不超過投資的賬面金額以及向被投資單位提供的預付款和貸款，以及爲被投資單位提供的任何財務擔保。我們在我們的簡明合併經營報告中，將我們在被投資單位的收益和損失的份額確認作爲其他收入（費用），淨額。投資還通過對被投資單位的出資增加，對被投資單位的分配減少。我們每當發生事件或情況變化時，都會評估權益法投資是否存在減值。 可能 被減值。
對有這種情況的非上市企業的投資 不 有易於確定的價格，我們爲此做了 不 要麼控制要麼做 不 施加重大影響力，按成本減去減值（如果有）加上或減去這些投資的可觀測價格變動。這些投資賬面價值變動產生的收益或虧損作爲雜項收入（支出）計入我們的簡明合併運營報表中。這些投資在我們的合併資產負債表上合併爲非流動資產。
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):
| 截至三個月 | 截至九個月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 加權平均基本流通股數 | ||||||||||||||||
| 期權和限制股票的普通股等值 | ||||||||||||||||
| 加權平均稀釋流通股數 | ||||||||||||||||
累計其他綜合損失。 截至我們的累計其他綜合損失餘額爲 2024年9月30日 和 2023年12月31日， 包括對我們養老金負債的調整、利率上限的公允價值以及相關的所得稅影響。我們的綜合收益（損失）爲 九個月期間-月報告期結束 2024年9月30日 和 2023 包括我們養老金資產和利率上限的公允價值調整，扣除稅費和凈利潤。截至 2024年9月30日 和 2023年12月31日 餘額如下（以百萬計）：
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 累積在其他綜合損益中的項目的累積餘額： | ||||||||
| 對養老金資產的調整 | $ | ( | ) | $ | ( | ) | ||
| 對利率上限公允價值的調整 | ( | ) | ( | ) | ||||
| 所得稅優惠 | ( | ) | ( | ) | ||||
| 累計其他綜合損失 | $ | ( | ) | $ | ( | ) | ||
財產和設備。 財產和設備按成本計量，對於收購的企業，按公允價值計量。折舊主要採用直線法計算。下表列出了按主要類別分類的財產和設備的元件（單位：百萬美元）：
| 預計 | |||||||||||||
| 九月三十日 | 12月31日 | 使用壽命 | |||||||||||
| 2024 | 2023 | （以年爲單位） | |||||||||||
| 物業和設備，淨值: | |||||||||||||
| 土地 | $ | $ | |||||||||||
| 建築物及改善 | 到 | ||||||||||||
| 設備 | 到 | ||||||||||||
| 建設中的工程 | |||||||||||||
| 累計折舊 | ( | ) | ( | ) | |||||||||
| 總物業及設備，淨值 | $ | $ | |||||||||||
維護、維修和小型更換費用在發生時計入運營成本；主要更換和改善費用則資本化。任何處置、出售或刪除的資產成本及其相關的累計折舊在處置時從賬目中移除，任何因此產生的收益或損失在該期間的收入或費用中反映。
我們在亞特蘭大組裝項目中 incurred 了建設公共基礎設施的成本。根據我們與多拉維爾社區改進區（「CID」）的購買和銷售協議，我們獲得了將特定基礎設施項目轉讓給CID以及以前 incurred 的其他施工成本的現金補償。在 三 和 九個月期間- 個月期間結束於 2024年9月30日 和 2023, 我們從CID收到了現金收益。下表列出了收到的收益類型（單位：百萬）:
| 截至三個月 | 截至九個月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 資產銷售前收到的收益 | $ | $ | $ | $ | ||||||||||||
| 用於補償開發成本的收益 | ||||||||||||||||
| 從CID收到的總收益 | $ | $ | $ | $ | ||||||||||||
以下表格提供與資產處置的（損失）收益相關的額外信息，淨額包括在我們的簡明合併經營報表中，以及包括在我們的簡明合併現金流量表中的財產和設備購買數據（單位：百萬）:
| 截至三個月 | 截至九個月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (損失) 資產處置淨收益： | ||||||||||||||||
| 固定資產出售收入 | $ | $ | $ | $ | ||||||||||||
| 處置資產的淨賬面價值 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 非現金（損失）處置收益 | ( | ) | ( | ) | ( | ) | ||||||||||
| 證券化工具 | ||||||||||||||||
| 其他 | ||||||||||||||||
| 總計 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
| 購買物業和設備： | ||||||||||||||||
| 定期採購 - 運營 | $ | $ | ||||||||||||||
| 亞特蘭大組裝項目 | ||||||||||||||||
| 總計 | $ | $ | ||||||||||||||
應收賬款和信貸損失準備金。 我們在合併的資產負債表中按攤餘成本記錄銷售和服務交易的應收賬款，調整任何沖銷，並淨額計入信貸損失準備金。我們主要通過向各種直接和基於代理的廣告客戶銷售廣播和數字廣告、與多頻道視頻節目分銷商的重傳同意協議以及程序製作銷售和服務來面臨信用風險。
我們針對信用損失的準備金是對我們應收賬款在剩餘合同期限內預期損失的估計，基於對可收回性的持續分析、歷史收款經驗、當前經濟和行業板塊條件以及合理且可支持的預測。該準備金是通過將歷史損失率應用於當前的逾期分析來計算的。我們 可能 在具體事實和情況需要時，我們也會提供額外的準備金。我們通常在客戶申請破產或所有常用的收款方法都已用盡時，註銷應收賬款餘額。
在 2023年2月23日， 我們，某些子公司和一個全資特殊目的子公司（「SPV」），簽訂了一個 三-年$
在證券化設施下，特殊目的實體（SPV）向買方出售某些應收款，包括與相關應收款的所有權利、所有權和利益（「出售的應收款」）。各方意圖將應收款轉讓給買方，以便買方按比例受益，這將構成應收款的買賣， 不 以及對安防的擔保。SPV已向每位買方保證及時支付出售的應收款，併爲了確保及時支付和履行這些擔保義務，SPV已向買方在SPV的所有資產上授予了安保權益。作爲證券化設施下的服務提供者，我們負責管理和收集應收款，並進行了慣常的陳述、保證、契約和賠償。我們不 不 記錄服務資產或負債，因爲估計的應收款服務的公允價值接近服務收入。我們還爲買方提供了履約擔保。
證券化工具需支付利息費用，按照調整後的 一個-個月擔保隔夜融資利率 (“”) 以及存款點子（
證券化設施的收益在我們的簡明合併現金流量表中被歸類爲經營活動。從出售應收賬款的收款中獲得的現金由特殊目的公司用於循環方式資助額外的應收賬款購買，或退回買方所有或部分未償還資本。對質押應收賬款的後續收款， 不 將會在收款時被歸類爲經營現金流。
售給購買者的金額爲$
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日的九個月 | ||||||||
| 2024 | 2023 | |||||||
| 期初餘額 | $ | $ | ||||||
| (減少) 信貸損失準備金的增加 | ( | ) | ||||||
| 已註銷的金額 | ( | ) | ( | ) | ||||
| 期末餘額 | $ | $ | ||||||
最近的會計公告。 在 2023年11月， 財務會計準則委員會（「FASB」）發佈了會計準則更新（「ASU」 2023-07, 部門報告（主題 280），對可報告分部披露的改進。 此次修訂的目的是改善與可報告分部相關的披露。此ASU中的修訂在2023年12月15日之後開始的財政年度生效。 及在財政年度內的中期。 2024年12月15日之後。 目前我們不 不 預計這些變化的實施將對我們的基本報表產生重大影響。
在 2023年12月， FASB發佈了ASU 2023-09, 所得稅（主題 740），對所得稅披露的改進。 此次修訂的目的是提高所得稅披露的透明度和決策實用性。此ASU中的修訂適用於2024年12月15日之後開始的年度期間。 2024年12月15日。 目前我們正在做 不 預計這些變更的實施將對我們的基本報表產生重大影響。
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 |
收入確認。 我們在完成特定服務並有效地將該服務的控制權轉移給客戶時確認收入，以換取我們預計有權收取的對價金額。確認的營業收入金額由與我們的客戶簽訂的合同中規定的對價金額決定。我們選擇將政府機構對與客戶進行交易所徵收的稅款排除在我們的營業收入之外。任何未支付的餘額計入我們資產負債表的流動負債中。
遞延收入。我們會記錄從客戶那裏收到的現金存款的遞延收入，一旦履約義務產生並得到滿足，這些存款將作爲付款方式使用。這些存款在我們簡明的合併資產負債表中作爲遞延收入記作廣告存款負債。當我們爲客戶開具已完成的履約義務的發票時，我們無條件地有權收到發票金額的付款。因此，我們在資產負債表上的應收賬款中記錄發票金額。我們通常要求提前支付根據與政治廣告客戶簽訂的廣告合同應付的款項。我們將收到的這筆現金記錄爲廣告按金負債。廣告播出後，即獲得收入，我們會記錄收入並減少該存款負債賬戶中的餘額。我們記錄了 $
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):
| 截至三個月 | 截至九個月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 市場和服務類型： | ||||||||||||||||
| 廣告： | ||||||||||||||||
| 岩心 | $ | $ | $ | $ | ||||||||||||
| 政治 | ||||||||||||||||
| 廣告總額 | ||||||||||||||||
| 重傳同意 | ||||||||||||||||
| 製作公司 | ||||||||||||||||
| 其他 | ||||||||||||||||
| 總營業收入 | $ | $ | $ | $ | ||||||||||||
| 銷售渠道： | ||||||||||||||||
| 直接 | $ | $ | $ | $ | ||||||||||||
| 廣告代理中介 | ||||||||||||||||
| 總營業收入 | $ | $ | $ | $ | ||||||||||||
| 3. | 收購與剝離 |
在 2024年7月1日， 我們與Marquee廣播公司（「Marquee」）完成了交易，出售了我們在懷俄明州卡斯珀市場（DMA 198）的電視台KCWY（NBC）和在懷俄明州夏延市場（DMA 194）的KGWN（CBS），以換取Marquee的FCC許可證，該許可證授權在猶他州鹽湖城市場（DMA 27）建設一座新的電視台，名稱爲KCBU。 否 以現金或其他形式的對價交換，以履行此交易的條款。
從Marquee獲取的施工許可證的價值爲$
獲得KCBU站的施工許可證以及出售電視台KCWY和KGWN導致了淨非現金損失$
| 4. | 開多期債務 |
截至 2024年9月30日 和 2023年12月31日， 長期債務包括我們高級信貸設施下的義務（如下定義），我們的
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 長期債務： | ||||||||
| 2019年高級信貸設施： | ||||||||
| 2019年定期貸款（到期日：2026年1月2日） | $ | $ | ||||||
| 2021年定期貸款（到期日：2028年12月1日） | ||||||||
| 2024年定期貸款（到期日：2029年6月4日） | ||||||||
| 2026年票據（到期日：2026年7月15日） | ||||||||
| 2027 年債券（到期日：2027年5月15日） | ||||||||
| 2029 年債券（到期日：2029年7月15日） | ||||||||
| 2030 年債券（到期日：2030年10月15日） | ||||||||
| 2031 年債券（到期日：2031年11月15日） | ||||||||
| 未償還的本金總額，包括當前部分 | ||||||||
| 未攤銷的遞延貸款費用 - 高級信貸設施 | ( | ) | ( | ) | ||||
| 未攤銷的遞延貸款費用 - 2026 年債券 | ( | ) | ||||||
| 未攤銷的遞延貸款費用 - 2027 年債券 | ( | ) | ( | ) | ||||
| 未攤銷的遞延貸款成本 - 2029年票據 | ( | ) | ||||||
| 未攤銷的遞延貸款成本 - 2030年票據 | ( | ) | ( | ) | ||||
| 未攤銷的遞延貸款成本 - 2031年票據 | ( | ) | ( | ) | ||||
| 未攤銷的溢價 - 2026年票據 | ||||||||
| 減去當前部分 | ( | ) | ( | ) | ||||
| 長期債務，扣除當前部分和遞延融資成本 | $ | $ | ||||||
| 循環信用額度下的借款可用性 | $ | $ | ||||||
2024 再融資活動。 在 2024年6月3日， 我們發行了$
淨籌集的資金來自於 2029 票據的淨收益與一筆$
本 2029 票據和相關擔保是我們的高級擔保債務。 首先 擔保負擔。 2029 票據的等級爲：
| ● | 與我們所有現有及未來的債務平等享有付款權； pari passu 對我們所有現有及未來的次級債務享有優先付款權； |
| ● | 在所有現有和未來的無擔保債務或次級留置權債務中，與擔保物的價值相當的部分具有更高的優先權； 2029 票據； |
| ● | 實際上受限於任何現有和未來的債務，這些債務是通過對任何資產的留置權進行擔保的 不 構成擔保的抵押品 2029 在這些資產的價值範圍內；以及 |
| ● | 在結構上次於我們子公司現有及未來的債務和負債，這些子公司並不 不 對 2029 票據提供擔保。 |
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，除了其他事項外，規定了(i)新的$
本 2024 定期貸款按我們選擇的方式計息，可以是擔保隔夜融資利率（「SOFR」）加上適用的利差，或者基準利率加上適用的利差。「基準利率」被定義爲以下三者中的最大者：(i) 行政代理人的優先利率，(ii) 隔夜聯邦基金利率加
循環信貸額度的利息由我們選擇，基於SOFR加上
與這些 2024 再融資活動相關的成本總計爲$
債務回購及後續事件在 2024年5月6日， 我們的董事會授權我們使用最多
在 2024年9月25日， 我們與一位貸款人達成協議，購買我們部分的 2021 定期貸款。因此，該貸款人已購買了我們未償還的 定期貸款面值的百萬 2021 爲百萬，按照該計劃。我們計劃稍後回購並註銷這些部分的 $30 定期貸款在 2021 中。 第四 的季度 2024 使用手頭現金。
利率上限在 2023年2月23日， 我們簽署了 兩個 根據國際掉期及衍生品協會主協議（「ISDA主協議」）簽訂的利率上限 兩個 合約方爲Wells Fargo Bank, NA和Truist Bank，分別在 2024年6月25日， 我們修改了利率上限的名義金額，以更好地匹配相關未償債務的未償還金額。在 截止到2024年9月30日， 這些上限的名義總值約爲$
經修訂的利率上限實際上限制了我們向我們收取的年度利息 2021 定期貸款和我們的 2024 定期貸款最高爲 1-月期限的 SOFR 4.96% 和 5.047%. 我們需要支付與利率上限相關的總費用，約爲美元
ISDA主協議及其相關附表包含通常的聲明、保證和契約。利率上限是 不 出於投機交易目的而簽訂的。利率上限公允價值的變動作爲其他綜合收益的一個元件進行報告。實際的收益和損失在對沖交易影響收益的同一期間或期間內重新分類到收益，並在同一收益表項目中呈現，與對沖交易的收益影響相同。代表被排除在效果評估之外的對沖元件的衍生工具的收益和損失被立即確認在收益中，並在被對沖項目的收入表中的同一行中呈現。我們確認了$
對於我們所有的利息負債，我們支付的利息約爲$
截至 截止到2024年9月30日， 我們開多期債務的總最低本金到期時間爲： 2024 以及接下來的 5 年如下（單位：百萬）：
| 最低本金到期 | ||||||||||||||||||||||||||||
| 年份 | 高級信貸 設施 | 2026年票據 | 2027年票據 | 2029年票據 | 2030年票據 | 2031年期票據 | 總計 | |||||||||||||||||||||
| 2024年剩餘時間 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||||
| 2026 | ||||||||||||||||||||||||||||
| 2027 | ||||||||||||||||||||||||||||
| 2028 | ||||||||||||||||||||||||||||
| 2029 | ||||||||||||||||||||||||||||
| 之後 | ||||||||||||||||||||||||||||
| 總計 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
截至 截止到2024年9月30日， 有 無 我們的子公司在向我們或擔保子公司分配現金方面存在顯著限制。高級信貸設施包含我們必須遵守的正面和限制性契約。 2026 票據， 2027 票據， 2029 票據， 2030 備註和 2031 備註還包括我們必須遵守的契約。
| 5. | 公允價值計量 |
我們以公允價值計量某些資產和負債，根據FASB編纂的公允價值等級體系將其分類爲Level 1, 2, 或 3, 測量依據是使用可觀察或不可觀察輸入。可觀察輸入反映來自獨立來源的市場數據，而不可觀察輸入反映公司的自我假設，並考慮到有關市場參與者假設的信息。
| ● | 級別 1: 活躍市場中相同工具的報價 |
| ● | 級別 2: 活躍市場中類似工具的報價；在市場中相同或類似工具的報價， 不 活躍的；以及在所有重要輸入和重要價值驅動因素都可以在活躍市場中觀察到的情況下進行的模型衍生估值。 |
| ● | 級別 3: 根據估值技術得出的估值，其中 一個 一個或多個重要輸入或重要價值驅動因素是不可觀察的 |
公允價值被定義爲在計量日期市場參與者之間有序交易中，出售資產所能收到的價格或轉移負債所需支付的價格。使用不同的市場假設或方法可能對公允價值的計量產生重大影響。
應收賬款、預付賬款及其他流動資產、應付賬款、員工薪酬和福利、應計利息、其他應計費用以及遞延營業收入的賬面金額在雙方近似公允價值。 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， 我們開多債務的賬面價值爲$
| 6. | 股東’ 權益 |
我們被授權發行
我們的普通股和A類普通股在宣佈時有權按每股相等的基礎收取現金分紅派息。董事會宣佈每股派發季度現金分紅$
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, |
|||||||||||||||||||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||||||||
| 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 |
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| September 30, 2024 |
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| (in millions) |
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| Net income |
$ | 316 | ||
| Adjustments to reconcile from net income to Leverage Ratio Denominator as defined in our Senior Credit Agreement: |
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| 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 |
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| (dollars in millions) |
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| 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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