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Gray Reports Record Operating Results for the Quarter Ended June 30, 2019

ATLANTA, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (GTN) today announces record results of operations for the three-months ended June 30, 2019.

Financial Highlights and Selected Operating Data:

  • Record Second Quarter Results - Our revenue for the second quarter of 2019 was our best second quarter ever at $508 million, an increase of $258 million, or 103%, from the second quarter of 2018.
  • Integration of Raycom – We have made great progress integrating Gray and Raycom operationally. We have completed various actions that we expect will yield approximately $85 million of annualized first-year synergies, $5 million more than previously estimated.  As we continue the integration, we may be able to secure additional revenue and cost synergies by year end.
  • Transaction Related Expenses and Non-Cash Stock-based Compensation - During our second quarter and year to date periods, in connection with acquisition activities (including pending transactions), we incurred transaction related expenses (“Transaction Related Expenses”) which are incremental expenses incurred specific to acquisitions and divestitures, including but not limited to legal and professional fees, severance and incentive compensation and contract termination fees. In addition we have recorded certain non-cash stock based compensation expenses. These expenses are summarized as follows (in millions):
  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2019   2018   2019   2018
Transaction Related Expenses:              
Broadcast $ 1   $ 3   $ 37   $ 3
Corporate and administrative 1   4   33   4
Total Transaction Related Expenses $ 2   $ 7   $ 70   $ 7
               
Total non-cash stock-based compensation $ 2   $ 1   $ 5   $ 3
               
               
  • Selected Statement of Operations Data - Selected statement of operations data on an As-Reported basis and excluding the impact of Transaction Related Expenses and non-cash stock-based compensation for the second quarter and year to date periods for 2019 and 2018 as follows (in millions, except for per share data):
  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2019   2018   2019   2018
As-Reported:              
Net income attributable to common stockholders $  31   $  41    $ -   $  61
Net income attributable to common stockholders, diluted, per share $  0.31   $  0.46    $ -   $  0.68
Adjusted EBITDA (1) $  168   $  105   $  318   $  176
               
Excluding Transaction Related Expenses and non-cash stock-based comp:              
Net income attributable to common stockholders (1) $  34   $  47   $  56   $  68
Net income attributable to common stockholders, diluted, per share (1) $  0.34   $  0.53   $  0.56   $  0.76
               
(1) See reconciliation of non-GAAP amounts to net income, included elsewhere herein. 
  • Total Leverage Ratio, Net of all Cash - As of June 30, 2019, our total leverage ratio, as defined in our senior credit facility, was 4.71 times on a trailing eight-quarter basis, netting our total cash balance of $251 million and giving effect to all Transaction Related Expenses. We currently anticipate that our leverage ratio will continue to decline into the “4’s" by the end of this year and further decline into the “3’s” by the end of 2020.

Combined Historical Basis Information

We refer to the businesses acquired and stations divested, due to market overlaps, in connection with, the merger with Raycom Media, Inc. (the “Raycom Merger”) completed on January 2, 2019 and the United Acquisition completed on May 1, 2019 as the “2019 Acquisitions.” Including the 2019 Acquisitions, from January 1, 2017 through June 30, 2019, we completed 7 acquisition transactions and 2 divestiture transactions. Due to the significant effect that these transactions have had on our results of operations, and in order to provide more meaningful period over period comparisons, we present certain financial information below on a “Combined Historical Basis” or “CHB.” Our Combined Historical Basis presentation reflects financial results that have been compiled by adding Gray’s historical revenue, broadcast expenses and corporate and administrative expenses to the historical revenue, broadcast expenses and corporate and administrative expenses of the net stations acquired in those acquisitions, and subtracting the historical revenues and broadcast expenses of the divested stations as if all stations had been acquired or divested, respectively, on January 1, 2017, the beginning of the earliest period that CHB information is presented herein.  For more information on CHB, see “Effects of Acquisitions and Divestitures on Our Results of Operations and Non-GAAP Terms” at the end of this release.

Selected Operating Data (unaudited):                      
  As-Reported Basis    
  Three Months Ended June 30,    
  2019   2018   % Change
2019 to
2018
 
  2017   % Change
2019 to
2017
 
       
  (dollars in millions)    
Revenue (less agency commissions):                      
Broadcast $  499   $  250   100 %   $  227   120 %
Production companies  9    -          -      
Total revenue $  508   $  250   103 %   $  227   124 %
                       
Political advertising $  5   $  18   (72) %   $  4   25 %
                       
Operating expenses (1)(3):                      
Broadcast $  314   $  142   121 %   $  134   134 %
Production companies $  9    $ -          $ -      
Corporate and administrative $  21   $  11   91 %   $  8   163 %
                       
Net income available to common stockholders $  31   $  41   (24) %   $  71   (56) %
                       
Non-GAAP cash flow (2):                      
Broadcast Cash Flow(3) $  185   $  108   71 %   $  93   99 %
Broadcast Cash Flow Less                      
Cash Corporate Expenses(3) $  166   $  98   69 %   $  86   93 %
Free Cash Flow $  69   $  59   17 %   $  56   23 %
                       
Transaction Related Expenses included in operating expenses (4):                      
Broadcast $  1   $  3          $ -      
Production companies  $ -    $ -          $ -      
Corporate and administrative $  1   $  4         $  1      
                       


  As-Reported Basis    
  Six Months Ended June 30,    
  2019   2018   % Change
2019 to
2018
  2017   % Change
2019 to
2017
       
  (dollars in millions)    
Revenue (less agency commissions):                      
Broadcast $  980   $  477   105 %   $  430   128 %
Production companies  46    -          -      
Total revenue $  1,026   $  477   115 %   $  430   139 %
                       
Political advertising $  8   $  24   (67) %   $  5   60 %
                       
Operating expenses (1)(3):                      
Broadcast $  670   $  292   129 %   $  267   151 %
Production companies $  44    $ -          $ -      
Corporate and administrative $  69   $  19   263 %   $  16   331 %
                       
Net income available to common stockholders  $ -   $  61   (100) %   $  81   (100) %
                       
Non-GAAP cash flow (2):                      
Broadcast Cash Flow(3) $  308   $  186   66 %   $  164   88 %
Broadcast Cash Flow Less                      
Cash Corporate Expenses(3) $  244   $  169   44 %   $  150   63 %
Free Cash Flow $  73   $  92   (21) %   $  93   (22) %
                       
Transaction Related Expenses included in operating expenses (4):                      
Broadcast $  37   $  3         $  1      
Production companies  $ -    $ -          $ -      
Corporate and administrative $  33   $  4         $  1      
                       


  1. Excludes depreciation, amortization and (gain) loss on disposal of assets.
  2. See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included elsewhere herein.
  3. Amounts in 2017 have been reclassified for the implementation of Accounting Standards Update 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Postretirement Benefit Cost (“ASU 2017-07”).
  4. Transaction Related Expenses are incremental expenses incurred specific to acquisitions and divestitures, including but not limited to legal and professional fees, severance and incentive compensation and contract termination fees.

 

Selected Operating Data - Continued (unaudited):      
  Combined Historical Basis    
  Three Months Ended June 30,    
  2019   2018   % Change
2019 to
2018
 
  2017   % Change
2019 to
2017
 
       
  (dollars in millions)    
Revenue (less agency commissions):                      
Broadcast $  499   $  498   0 %   $  457   9 %
Production companies  9    9   0 %    8   13 %
Total revenue $  508   $  507   0 %   $  465   9 %
                       
Political advertising $  5   $  31   (84) %   $  7   (29) %
                       
Operating expenses (1)(3):                      
Broadcast $  314   $  299   5 %   $  285   10 %
Production companies $  9   $  9   0 %   $  7   29 %
Corporate and administrative $  21   $  18   17 %   $  15   40 %
                       
Non-GAAP cash flow (2):                      
Broadcast Cash Flow $  184   $  199   (8) %   $  174   6 %
Broadcast Cash Flow Less                      
Cash Corporate Expenses (3) $  166   $  186   (11) %   $  162   2 %
Operating Cash Flow as defined in                      
our 2019 Senior Credit Facility (3) $  167   $  210   (20) %   $  183   (9) %
Free Cash Flow $  70   $  124   (44) %   $  82   (15) %
                       
Transaction Related Expenses included in operating expenses (4):                      
Broadcast $  1   $  3          $ -      
Production companies  $ -    $ -          $ -      
Corporate and administrative $  1   $  4         $  1      

 

  Combined Historical Basis    
  Six Months Ended June 30,    
  2019   2018   % Change
2019 to
2018
 
  2017   % Change
2019 to
2017
 
  (dollars in millions)    
Revenue (less agency commissions):                      
Broadcast $  983   $  950   3 %   $  884   11 %
Production companies  46    45   2 %    43   7 %
Total revenue $  1,029   $  995   3 %   $  927   11 %
                       
Political advertising $  8   $  40   (80 )%   $  8   0 %
                       
Operating expenses (1)(3):                      
Broadcast $  673   $  602   12 %   $  576   17 %
Production companies $  44   $  42   5 %   $  40   10 %
Corporate and administrative $  69   $  35   97 %   $  28   146 %
                       
Non-GAAP cash flow (2):                      
Broadcast Cash Flow $  345   $  356   (3 )%   $  319   8 %
Broadcast Cash Flow Less                      
Cash Corporate Expenses (3) $  281   $  327   (14 )%   $  295   (5 )%
Operating Cash Flow as defined in                      
our 2019 Senior Credit Facility (3) $  314   $  371   (15 )%   $  335   (6 )%
Free Cash Flow $  143   $  198   (28 )%   $  156   (8 )%
                       
Transaction Related Expenses included in operating expenses (4):                      
Broadcast $  37   $  3         $  1      
Production companies  $ -    $ -          $ -      
Corporate and administrative $  33   $  4         $  1      
                       
  1. Excludes depreciation, amortization and (gain) loss on disposal of assets.
  2. See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included elsewhere herein.
  3. Amounts in 2017 have been reclassified for the implementation of Accounting Standards Update 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Postretirement Benefit Cost (“ASU 2017-07”).
  4. Transaction Related Expenses are incremental expenses incurred specific to acquisitions and divestitures, including but not limited to legal and professional fees, severance and incentive compensation and contract termination fees.

Results of Operations for the Second Quarter of 2019

Revenue (less agency commissions) on As-Reported Basis.

The table below presents our revenue (less agency commissions) on an as-reported basis by type for the second quarter of 2019 and 2018 (dollars in millions):

    Three Months Ended June 30,  
    2019     2018     Amount   Percent  
        Percent         Percent     Increase   Increase  
    Amount   of Total     Amount   of Total     (Decrease)   (Decrease)  
Revenue (less agency commissions):                              
Local (including internet/digital/mobile)   $  226   44.5 %   $  113   45.2 %   $  113   100 %
National    56   11.0 %    30   12.0 %    26   87 %
Political    5   1.0 %    18   7.2 %     (13 (72 )%
Retransmission consent    201   39.6 %    85   34.0 %    116   136 %
Production companies    9   1.8 %    -    0.0 %    9   100 %
Other    11   2.1 %    4   1.6 %    7   175 %
Total   $  508   100.0 %   $  250   100.0 %   $  258   103 %
                               

The 2019 Acquisitions accounted for $264 million of the increase in our total revenue for the second quarter of 2019 compared to the second quarter of 2018. Excluding the revenue attributable to the 2019 Acquisitions, revenue increased primarily due to increases in local and retransmission revenue, but was partially offset by decreases in political advertising revenue, resulting primarily from 2019 being an “off-year” of the two-year political advertising cycle.

Revenue (less agency commissions) on Combined Historical Basis.

On a Combined Historical Basis, total revenue increased $2 million to $508 million in the second quarter of 2019 compared to $507 million in the second quarter of 2018. On a Combined Historical Basis, the changes in revenue for the second quarter of 2019 compared to the second quarter of 2018 were approximately as follows:

  • Local advertising revenue (including internet/digital/mobile) decreased $4 million, or 2%, to $226 million.
  • National advertising revenue decreased $5 million, or 8%, to $56 million.
  • Political advertising revenue decreased $26 million, or 84%, to $5 million.
  • Retransmission consent revenue increased $37 million, or 23%, to $201 million.
  • Production company revenue was unchanged at $9 million.
  • Other revenue decreased $1 million, or 8%, to $11 million.

The decreases in local and national advertising revenue were consistent with our guidance yet, on a relative basis showed improvement from the results of our first quarter 2019 compared to 2018. Political advertising revenue decreased consistent with 2019 being an “off-year” in the two-year political advertising cycle, yet it significantly exceeded our guidance for the second quarter of 2019 due to apparently stronger and more widespread demand from political ad buyers across our larger portfolio of stations than we had anticipated. Retransmission consent revenue continued to grow, reflecting the increasing rate environment. Retransmission revenue for the quarter was below our guidance range due to issues with the incorporation of the 2019 Acquisitions into our forecasting models. Our subscriber count remained stable and within our modeled range for the second quarter.

Operating Expenses (before depreciation, amortization and gain or loss on disposal of assets) on As- Reported Basis.

Broadcast operating expenses increased $172 million, or 121%, to $314 million for the second quarter of 2019 compared to the second quarter of 2018. The 2019 Acquisitions accounted for all of the increase in broadcast operating expenses for the second quarter of 2019. Our operating expenses for the second quarter of 2019 were better than previously expected. Broadcast operating expenses of $314 million for the second quarter of 2019 was well below our earlier guidance range of $318 million to $320 million.

Production company operating expenses, which relate to the video production companies acquired in the Raycom Merger, were $9 million in the second quarter of 2019. Approximately half of these operating expenses were for personnel costs and approximately half for production operating costs at sporting and other events.

Corporate and administrative expenses increased $10 million, or 91%, to $21 million in the second quarter of 2019. The increase reflects, in part, the following:

  • Non-compensation expense increased by $3 million, including Transaction Related Expenses of $1 million in professional fees related to the 2019 Acquisitions and $1 million for corporate events.
  • Compensation expense increases of $7 million, primarily due to $3 million of severance pay, $1 million of incentive compensation and $2 million of increases in regular salaries and wages of which a portion was a result of the 2019 Acquisitions. Non-cash stock-based compensation expenses were $2 million and $1 million in the second quarters of 2019 and 2018, respectively.

Operating Expenses (before depreciation, amortization and gain or loss on disposal of assets) on Combined Historical Basis.

On a Combined Historical Basis, broadcast operating expenses increased $15 million, or 5%, to $314 million in the second quarter of 2019 compared to the second quarter of 2018. The increase reflects, in part, the following:

  • Retransmission expense paid to broadcast networks increased $20 million, or 24%, to $104 million in the second quarter of 2019 compared to the second quarter of 2018 consistent with increases in retransmission consent revenue. Transaction Related Expenses in the second quarter of 2019 included $1 million in fees related to the termination of sales representation agreements.
  • Compensation expense decreased by approximately $5 million, or 3%, in the second quarter of 2019 compared to the second quarter of 2018. Approximately half of the decrease resulted from the elimination of redundant positions related to the 2019 Acquisitions. Non-cash stock-based compensation expenses were $1 million in the second quarter of 2019, but were not significant in the second quarter of 2018.

On a Combined Historical Basis, production company operating expenses were unchanged at $9 million in the second quarter of 2019 compared to the second quarter of 2018.

On a Combined Historical Basis, corporate and administrative operating expenses increased $3 million, or 17%, to $21 million in the second quarter of 2019 as compared to the second quarter of 2018. The increase included Transaction Related Expenses of $1 million. Non-cash stock-based compensation expenses were $2 million and $1 million in the second quarters of 2019 and 2018, respectively.

Results of Operations for the Six-Month Period Ended June 30, 2019

Revenue (less agency commissions) on As-Reported Basis.

The table below presents our revenue (less agency commissions) on an as-reported basis by type for the six-month periods ended June 30, 2019 and 2018 (dollars in millions):

    Six Months Ended June 30,  
    2019     2018     Amount   Percent  
        Percent         Percent     Increase   Increase  
    Amount   of Total     Amount   of Total     (Decrease)   (Decrease)  
Revenue (less agency commissions):                              
Local (including internet/digital/mobile)   $  437   42.6 %   $  219   45.9 %   $  218   100 %
National    106   10.3 %    54   11.4 %    52   96 %
Political    8   0.8 %    24   5.0 %      (16 ) (67 )%
Retransmission consent    405   39.5 %    171   35.8 %    234   137 %
Production companies    46   4.5 %    -    0.0 %    46   100 %
Other    24   2.3 %    9   1.9 %    15   167 %
Total   $  1,026   100.0 %   $  477   100.0 %   $  549   115 %
                               

Total revenue increased $549 million, or 115%, to $1.026 billion for the six-months ended June 30, 2019 compared to the six-months ended June 30, 2018. The stations and production companies acquired in the 2019 Acquisitions accounted for $545 million of the increase in our total revenue for the 2019 six-month period. Excluding the revenue attributable to these stations, revenue increased due to increases in retransmission revenue.

Revenue (less agency commissions) on Combined Historical Basis.

On a Combined Historical Basis, total revenue increased $34 million to $1.029 billion in the 2019 six-month period compared to $995 million in the 2018 six-month period. On a Combined Historical Basis, the changes in revenue for the of 2019 six-month period compared to the 2018 six-month period were approximately as follows:

  • Local advertising revenue (including internet/digital/mobile) decreased $6 million, or 1%, to $439 million.
  • National advertising revenue decreased $9 million, or 8%, to $106 million.
  • Political advertising revenue decreased $32 million, or 80%, to $8 million.
  • Retransmission consent revenue increased $79 million, or 24%, to $406 million.
  • Production company revenue increased $1 million, or 2%, to $46 million.
  • Other revenue increased $1 million, or 4%, to $24 million.

The decreases in local and national advertising revenue largely reflect softness in the automobile category. Political advertising revenue decreased consistent with 2019 being an off-year in the two-year political advertising cycle. Retransmission consent revenue continues to grow reflecting the increasing rate environment and increasing OTT subscriber revenue.

Operating Expenses (before depreciation, amortization and gain or loss on disposal of assets) on As-Reported Basis.

Broadcast operating expenses increased $378 million, or 129%, to $670 million for 2019 six-month period compared to the 2018 six-month period. The 2019 Acquisitions and the Transaction Related Expenses of $37 million accounted for nearly all of the increase in broadcast operating expenses for the 2019 six-month period.

Production company operating expenses, related to the video production companies acquired in the Raycom Merger, were $44 million in the 2019 six-month period.

Corporate and administrative expenses increased $50 million, or 263%, to $69 million in 2019 six-month period compared to the 2018 six-month period. The increase reflects, in part, the following:

  • Non-compensation expenses increased $28 million, primarily due to Transaction Related Expenses of $23 million for professional fees related to the 2019 Acquisitions and to $2 million for corporate events.
  • Compensation expense increased $22 million, primarily due to Transaction Related Expenses of $10 million of incentive compensation and severance costs. Non-cash stock-based compensation expenses were $4 million and $2 million in the 2019 and 2018 six-month periods, respectively.

Operating Expenses (before depreciation, amortization and gain or loss on disposal of assets) on Combined Historical Basis.

On a Combined Historical Basis, broadcast operating expenses increased $71 million, or 12%, to $673 million in the 2019 six-month period compared to the 2018 six-month period. The increase reflects, in part, the following:

  • Retransmission expense increased $39 million, or 23%, to $209 million in the 2019 six-month period, compared to the 2018 six-month period, which was consistent with the increase in retransmission consent revenue. Professional services expense increased $22 million, or 61%, to $58 million primarily as a result of Transaction Related Expenses of $29 million for costs incurred to terminate sales representation agreements, partially offset by decreases in other expenses.
  • Compensation expense increased by approximately $6 million, or 2%, in the 2019 six-month period, compared to the 2018 six-month period. Compensation expenses also included Transaction Related Expenses of approximately $8 million primarily due to incentive compensation and severance costs related to the 2019 Acquisitions, offset by $2 million of decreases in various other components of compensation expense. Non-cash stock-based compensation expenses were $1 million in each of the second quarters of 2019 and 2018, respectively.

On a Combined Historical Basis, Production company operating expenses, related to the production companies acquired in the Raycom Merger, were $44 million in the 2019 six-month period, compared to $42 million in the 2018 six-month period.

On a Combined Historical Basis, corporate and administrative expenses increased $34 million, or 97%, to $69 million in 2019 six-month period compared to the 2018 six-month period. The increase reflects the following:

  • Non-compensation expense increased by $23 million to $39 million, due to Transaction Related Expenses of $23 million for professional fees.
  • Compensation expense increased $12 million to $30 million, resulting from Transaction Related Expenses of $10 million for incentive compensation and severance compensation expenses. Non-cash stock-based amortization expenses were $4 million and $2 million in the 2019 and 2018 six-month periods, respectively.

Taxes.

During the 2019 and 2018 six-month periods, we made aggregate federal and state income tax payments of approximately $8 million and $12 million, respectively. During the remainder of 2019, we anticipate making income tax payments (net of refunds) of approximately $3 million. We have approximately $770 million of federal operating loss carryforwards, which expire during the years 2021 through 2037. We expect to have federal taxable income in the carryforward periods, therefore we believe that it is more likely than not that these federal operating loss carryforwards will be fully utilized. Additionally, we have an aggregate of approximately $858 million of various state operating loss carryforwards, of which we expect that the majority will be utilized.

Gray Television, Inc.  
Selected Operating Data (Unaudited)  
(in millions, except for per share data)  
                 
             
  Three Months Ended   Six Months Ended  
  June 30,   June 30,  
  2019   2018   2019   2018  
                 
Revenue (less agency commissions)                
Broadcasting $  499   $  250   $  980   $  477  
Production companies  9    -    46    -  
Total revenue (less agency commissions)  508    250    1,026    477  
Operating expenses before depreciation, amortization                
and gain on disposal of assets, net:                
Broadcast  314    142    670    292  
Production companies  9    -    44    -  
Corporate and administrative  21    11    69    19  
Depreciation  20    13    40    27  
Amortization of intangible assets  28    5    57    11  
Gain on disposals of assets, net    (3    (1    (13    (2 )
Operating expenses  389    170    867    347  
Operating income  119    80    159    130  
Other income (expense):                
Miscellaneous income, net  1    1    4    1  
Interest expense    (58    (25    (116    (49 )
Income before income tax expense  62    56    47    82  
Income tax expense  18    15    21    21  
Net income  44    41    26    61  
Preferred stock dividends  13    -    26    -  
Net income attributable to common stockholders $  31   $  41    $ -   $  61  
                 
Basic per share information:                
Net income attributable to common stockholders $  0.31   $  0.46    $ -   $  0.69  
Weighted-average shares outstanding  100    88    100    88  
                 
Diluted per share information:                
Net income attributable to common stockholders $  0.31   $  0.46    $ -   $  0.68  
Weighted-average shares outstanding  101    88    100    89  
                 


Other Financial Data:

  As of  
  June 30,   December 31,
  2019   2018
   
  (in millions)
           
Cash $  251     $  667  
Restricted Cash  $ -     $  752  
Long-term debt, including current portion $  3,895     $  2,549  
Borrowing availability under our revolving credit facility $  200     $  100  
           
  Six Months Ended June 30,
  2019   2018
  (in millions) 
           
Net cash provided by operating activities $  105     $  98  
Net cash used in investing activities    (2,599 )      (22 )
Net cash provided by (used in) financing activities  1,326        (27 )
Net (decrease) increase in cash $  (1,168 )   $  49  
           

Guidance for the Three-Months Ending September 30, 2019 

Based on our current forecasts for the quarter ending September 30, 2019 (the “third quarter of 2019”) and excluding the anticipated results of any pending transactions, we anticipate the following changes from the quarter ended September 30, 2018 (the “third quarter of 2018”) on an As-Reported basis as outlined below:

...
    As Reported Basis  
Selected operating data:   Three Months Ending September 30,  
    Low End Guidance   High End Guidance    
    Low
Guidance for
the Third
Quarter of
  Amount
Change From
Third
Quarter of
  Percentage
Change
From
Third
Quarter
of
  High
Guidance for
the Third
Quarter of
  Amount
Change From
Third
Quarter of
  Percentage
Change
From
Third
Quarter
of
   Third
Quarter of
    2019   2018   2018   2019   2018   2018   2018
       
    (dollars in millions)  
REVENUE (less agency commissions):                                
Broadcast:                                
Local (including internet/digital/mobile)   $  215   $  108   101 %   $  220   $  113   106 %   $  107
National    55    26   90 %    57    28   97 %    29
Political    11      (37)   (77 )%    12      (36)   (75 )%    48
Retransmission consent    200    108   117 %    202    110   120 %    92
Other    9    6   200 %    10    7   233 %    3
Total Broadcast revenue    490    211   76 %    501    222   80 %    279
Production companies revenue    19    19          20    20          -
Total revenue   $  509   $  230   82 %   $  521   $  242   87 %   $  279
                                 
OPERATING EXPENSES (before                                
depreciation, amortization and                                
(gain) loss on disposal of assets):                                
Broadcast:                                
Station expenses   $  213   $  109   105 %   $  214   $  110   106 %   $  104
Retransmission expense    107    66   161 %    108    67   163 %    41
Transaction Related Expenses    -    -          1    1