Gray Television, Inc. (NYSE:GTN) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 11:00 am ET

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Gray Television, Inc. (NYSE:GTN) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Gray Television Third Quarter 2019 Earnings Conference Call.[Operator Instructions]

I would now like to hand the conference over to your speaker today, Hilton Howell, Executive Chairman and CEO. Thank you. Please go ahead.

Executive
Hilton H. Howell

Thank you, Cheryl. Good morning, everyone. Thank you for joining us this morning for our third quarter 2019 earnings call. As usual, I'm joined by our President and co-CEO Patrick LaPlatney, our Chief Legal and Development Officer, Kevin Latek and our Chief Financial Officer, Jim Ryan. We will begin this morning with a disclaimer that Kevin will provide and at the end of our comments we will open up the line for questions. Kevin?

Executive
Kevin P. Latek

Thank you, Hilton. Good morning everyone. Certain matters discussed on this call may include forward-looking statements regarding among other things, future operating results. These statements are subject to a number of risks and uncertainties, actual results in the future could differ from those described in the forward-looking statements as a result of various important factors. Such factors have been set forth in the company's most recent reports filed with the SEC and included in today's earnings release. The company undertakes no obligation to update these forward-looking statements. Gray uses its website as a key source of company information, the website address is www.gray.tv. We also will post an updated investor deck to the website within the next few weeks. Included on the call will be a discussion of non-GAAP financial measures and, in particular, broadcast cash flow -- broadcast cash flow less corporate expenses, operating cash flow, free cash flow, adjusted EBITDA and certain leverage ratios. These metrics are not meant to replace GAAP measurements but are provided as supplements to assist the public in their analysis and valuation of our company.

Included in our earnings release as well as on our website are reconciliations of the non-GAAP financial measures to the GAAP measures reported in our financial statements.

I now return the call to Hilton.

Executive
Hilton H. Howell

Thank you, Kevin. We are extremely pleased to report the results for the third quarter of 2019. This is a quarter of exceeding expectations, both on the high-end and the low-end of our guidance. Our as-reported total revenue for the third quarter was $517 million, which was at the high-end of our previously issued guidance. At this level, our total revenue increased by approximately 85% from the third quarter of 2019. Our broadcast and corporate operating expenses were each below the low side of our guidance. Our Adjusted EBITDA significantly exceeded the high side of our guidance. For the past several quarters in a row, we have set new records for broadcast cash flow.

The third quarter of 2019 also set another all-time record for a third quarter at $192 million, increasing $57 million or 42% from the third quarter of 2018. This figure also set a new best broadcast cash flow for any quarter in our company's history. Our political advertising was a distinct high