Gray Television (GTN) 5 May 232023 Q1 Earnings call transcript

Welcome to the Gray Television Q1 2023 Earnings Call. I will now turn the call over to our Chairman and CEO, Hilton Howell.

You may begin.

Thank you, Misty. Good morning, everyone.

I Television. Howell, mentioned, CEO Chairman operator Gray of our am the Hilton and As to all want XXXX I thank earnings first joining call. quarter our of you for

Co-CEO, executive With are Latek; and Officer, and officers, Pat Financial Kevin LaPlatney; Chief Ryan. our Development me Officer, our our President Jim today our Legal Chief and

wish best As you Operating since from. and Bob he his has Smith, sure, company distinguished Officer, our for and a singularly earnings thank long still the initiatives and began last extraordinary some all our know, him career. adventures next of benefits that We that retired in and I'm Chief call, all after him our bold the

begin the will we that will that, With with disclaimer Kevin provide. Kevin?

Gray source a everyone. address website Thank The website Good uses of www.gray.tv. information. you, key is morning, as company its Hilton.

We the our with on SEC Form later will XX-Q quarterly file report today.

cash and are and financial broadcast not Included cash discussion of metrics but These replace on non-GAAP meant operating free as may a are to the GAAP in particular, be leverage ratios. flow, measurements measures, provided cash call flow, well financial certain assist on reconciliations measures their the public as valuation website financial and our our reported Included measures statements. non-GAAP to to our in the earnings of in release analysis the company. are our supplements of in as GAAP flow

to a number the report subject future including expressed recent a these set forward-looking statements other XX-K forward-looking earnings the as forth things, our on reports most The among from no our have most statements. to various those include risks of future filed the Results in regarding, discussed Those in matters or been obligation annual forward-looking undertakes result company's call company results. factors Form statements release. this recent any update differ and recent that most Certain are SEC, with important may on and statements could operating implied in of uncertainties.

the to return call now I Hilton.

the strong exceptionally strongly reported fears Television and interest Gray rates, recession Kevin. start cycle. an of raising of despite to you, Thank political year XXXX off the

Our advertising year with $XXX broadcasts. the year's adjusting surpassed the the total last Bowl guidance, Winter our even after first was for Olympics our quarter core revenue Super last and million impact of and of revenue

Our ahead quarter guidance. beating of XX% retransmission revenue XXXX, was also last of the our

in noted benefited local quarter As our advertiser continued market-leading from and earnings release, local our stations television the Gray's products. results first demand digital from strong

recession find a particularly and are Even away, are a customers is as to their months country businesses, many telling services. strong move a local demand to their still with hard working businesses, this few sell products that just still to

cycles. the want economy our the that particular, continue therefore, And of one are and achieve audience goals proposition in increasingly, businesses who We, grow value the that businesses. television bullish its of those broadcast to our regardless channels state the of of regardless industry in this of offer and to ways support local digital be their the most fragmentation, age it company effective own very new their that rediscovering to on and to provide

that have earnings and that Third operating. we lease be will Studios, our to call, and under join vibrant Rail happy are Studios, strong film time morning, and company this Assembly the convene have Gray by with NBCUniversal long-term our happy conjunction the Besides the television are And industry. Georgia opening in earnings our esteemed Studios will we report next welcomed to

to I outstanding broadcast the first teams our time local more will reiterate that local advertising. to from broadcast As businesses value fact who are people an to sports the coming regard of political from pleased want also television to we are essential you extremely we're ever. hear Pat, seeing with rediscovering for

ad a major buys presidential time is and first in candidates the year. parties. a next significant great and year before year for presidential from sign for ever we this all receiving the For election, This are

stations. at congratulate operating last call of have over that would we stewardship want to TV months, out all also I the XX our like the some They acquired some respective top I stations particularly and to are of Meredith games, for stations. had of but the particularly their

dramatic We Greenville. have to seen Atlanta, particular the improvements with company a Nashville important improvement board across very and in our markets but in Phoenix,

and increased Hartford. top-performing success, the portfolio in Vegas, St. have Further, Las we purchased in their a that stations particularly Louis

from not So from now the synergies are revenue seeing acquisitions. while Meredith, just acquisition, we also our Quincy we predicted synergy, but cost from

could teams and perhaps be even by value, challenges, the gets will that value revenues. and however, content XXXX the local the producing XXXX want tremendous for efficiency drives that televisions our -- and be investors. in remembered Gray While and local solid audiences nevertheless I believe, that continue by may the reach advertising broadcast new advertisers, retransmission many the delivering 'XX which of and year and Wall sports existing rediscovered leagues Street by

its wrong without go market we should personally all remain valuation report to on is and with appropriate today, Gray's return its that price with we that and saying place. tremendously and especially and undervalued have very It ability prove Gray's the industry to to and the both operations promise. its this company that future are bullish This all on current naysayers for yet, we stock valuation, professionally. and unhappy And company's

introduce Pat? LaPlatney like operations. would to Pat I provide color more to our now on

parts well Hilton. Thanks, the are better executing ecosystem. television other seemingly companies stations of advertising than Gray's and production and

returns when to to continues softer, is the National it Our advertising while economy local a advertising, our of positive results. growth. portion tends small and to demonstrate recover business,

throughout its year. include and home improving and Overall, is services continue QX recovery continued improvement. auto Other in the to categories strong pacing category the

first has the leads business, and local the than continues ad broaden accounts the Our direct for of X% more new over local of new years ours XXXX. new quarter few which contracts. a quarter, big direct been to our In first and new revenue X,XXX yield priority past

stations second is 'XX, of million which This April business, XX nearly momentum brought into the continued had. we number has best quarter. monthly in our our new of In

us Our how April than new platforms 'XX that new this and own their in our after drive XX.X% help linear What learning business cost-efficient is tells and year manner. 'XX. a was are year, business can success digital revenue higher advertisers brand-safe them April

audits markets the our In of television revealed stations revenue. markets, large some At of some stations the dollars are core of TV third-party local spot time, in their that growing the our same declined. are ad

clearly Gray Hilton businesses. the revenue the Phoenix. we these, market performance maintain solutions providing seeing at and former right who people success quite in markets, successes their and Meredith local new our the our like right price and to including for this individual core mentioned, Between own business right As the Atlanta we're result has need know advertisers that overall, grow

also is good quarter in a portfolio pre-presidential of in sign. of included First double which the political pleasant year revenue our in ad [indiscernible], cycle. at posted coming the amount obviously first quarter the surprise television station current the of last a is This

stations states. first the Hilton I'm Already Gray early presidential political not in our on pleased X already as buys, we've to quarter, referenced. ad presidential campaigns advertising the second received that primary in X report but

coming the the ad scope With this away, these and election months size still early buys presidential is encouraging. XX of

quarter, set In the are records excelling. with first audiences. engagement for our new digital Meanwhile, digital we also businesses

digital we revenue. Importantly, continue growth double-digit in to experience

there and TV development, campaigns Live season Amazon's Plus, dozens like news launch to the to News our new literally the political to TV category broadcast momentum Samsung channels Roku industry From medium long-standing business the fast on continue the and Fire advertisers is of auto TV. by business. We on Channel returning early real

sports that world reach see seeking accelerated stations explore really enthusiasm beyond. the how professional in last expand mentioned. also had promotional We for calls coming to our sports many could last weeks. Hilton fall, with few and markets from their the footprint home medium we've in their and Since teams That's

deal rights announced conditioned Mercury Friday, expiring. a and existing the Phoenix Suns Phoenix Last on that's we deal with the new RSN Sun's broadcast

proceeds, the the and Assuming stations have games deal make roughly all current Xx RSN model. available Mercury with to will people Arizona reaching more the of been than the teams our Suns

now, challenges, that's growing shifted new but local with with professional and partnerships base real us. teams. creative sports past repeatedly We've faces a new ways right nothing course advertiser our moving in over business our Yet for new we're with know the few with decades. We our forward

expect more doors also even will our and us industry's for our that work We company's the term. open TV technology on medium next-gen in the

business. In a broadcast short, it's very for good in Kevin? Gray the time

successfully Thank you, another Pat. renewal Today, that can retransmission Gray announce cycle. we has completed

since with principle have very agreements just beginning year. agreements X in of MVPDs this the or large We

secure retransmission negotiations, content met strength we were new Gray's important for or any or content of Equally operations, our important, history without these our with local rhetoric. Consistent budgets. managed consumer of reached also have to X-decade exceeded and disruptions due to the retrans public our that rates deals

retrans with most of will negotiations renew round end of of partners. MVPD occur the will our this next when at we Our year

In news, TV first Fubo. and since ABC entered opting for Gray the of this has Hulu into TV, and YouTube year, agreement for the agreements opting Hulu related CBS

X and accept present us As a MVPDs these to agreements big the virtual agreements reminder, networks negotiate for or with reject.

MVPD to We affiliates are directly. negotiate not with a to big virtual permitted X

in have to We news space. virtual report however, the breaking MVPD do,

Gray's virtual are, our agreements YouTube deal is in in that in of Just first-ever and this X negotiating for fully retransmission this largest news TV the Phoenix. and local secures provide large independent distribution retransmission an scope, family distributor. stations Atlanta week, linear TVX that agreement television Peachtree TV local This including proves Gray local non-affiliated in sophisticated fact, MVPD virtual with that in stations. television content a of capable with a agreement Limited with reached of Arizona's of Gray's carriage markets, sports-focused broadcasters

door are to affiliated to for like eventually TV right helps return As stations their one our our of these X Fubo carriage TV with that to independent bring customers negotiate with stations the YouTube deals with and this our lead deals such, to opens we hopeful the similar customers MVPDs. all big Hulu and of and the a

better posted The XX% that in results quarter basis revenue distribution in These related than XX% first a compared to our year's are rates with In results the higher net benefited from retrans were on to basis. and of we adjustments as and expected. the XXXX quarter grew positive particular, quarter retransmission true-ups as today some distribution. last last contracts

year. the net for single-digit We and forecast growth gross continue in low retrans to

a throughout a -- as next base will first first result, -- and of in renew MVPD our we XX% renew about the or we will year of in quarter dollars reverse year, As first next primarily sub that next in the time, as produce that reminder, expect with we quarter improvement higher XXXX rates rates retrans net some comp higher will retrans well. of in in the At year. about

I and turn remarks, the back call my Ryan. concludes Jim This now to

Pat is Hilton, the given believe good I'm remarks everyone. over expected revenue to QX our to revenues guidance, QX Kevin, Thanks, last Relating morning, brief, Kevin 'XX demonstrates and continuing year. have core the start up keep company and in good covered going XXXX. guidance very We be a my very is the to highlights.

for full we when on change obviously, up And year, the few were talking progresses numbers of Covering make comments the as dollars, our will year. full or billions I'll a down. expectations in

Our our significantly since call. not last have changed expectations QX

-- billion, XXXX to the presidential Total $X.XX would revenue approximately would approximately from and low revenue day by if single week billion, again, be to of an date our that approximately digits. of And Retransmission that spend. not single on $XX provided million, we is that of up $X revenue which last approximately range improvement $X.X including Political million presidential $X.XX billion, digits. of day, be low $XX And spend core week. by changing increasing call. million up obviously, of million revenue $XX is which

going the a spot that's rest through this So bright year. of

$X.X broadcast expect We billion. revenue of total about

Our about loss of total reverse comp amortization, of about with network noncash $X $XXX depreciation, on approximately expenses of operating $X.X $X.X noncash expense about stock expenses million, XXX(k) gain $XX assets of broadcast about billion billion, and of before and million comp million.

million including Our noncash stock corporate be to expenses comp. tracking approximately $XX of [indiscernible] million, are

do $XXX a of we 'XX, agreement. floating flow interest cash is significant X% our rate of in credit year cap about SOFR expect in full We cash on million cash We Continuing senior for currently billion $XXX to rate our For debt. of defined $XXX to on million. $XXX million range 'XX, anticipate operating $X.X usages our million. interest

from in insulated increases SOFR. are we So further

is expenditures of is Cash our about positive us. estimates million, our million which previous preferred to and dividend $XX a million, million on to for Term is and reduction dog capital $XXX million. taxes $XX our million. The D in of a $XX required from Loan Routine amortization as $XX about $XXX

in be will estimate range to free our currently We million. million a $XXX of cash about $XXX

to into as well forward of successful very strong return are XXXX and presidential another with We positioned year the look cycle. XXXX a continuing a starting we

I'll turn the Hilton. to now call back

to from At Jim. operator, up this open you, anyone call Thank would our in like our point, I audience. for questions

first It come Instructions]. like from question from Kurnos looks Dan [Operator is our to Benchmark. going

this Maybe, I in substantial I only the one that services brought from you is think, up, synergies since have Pat, Meredith have I already, think generated guess, guys and XQ so you strong said and far are Quincy. revenue

trying So you've kind market just how the now levels I'm that outperformance? market How versus sort of underperformance to intrinsic to much parse just of sort much underlying is of out end of brought that there. up is

Yes.

have us So services along, right for been healthy Dan.

focused some sales of look, think categories. these have So we on I team

think helps that I us.

other we doing guys. the think could of little that's than So I why one better be a the reasons

for -- arc But literally for last that improvement for us for a been home . instance, legal, steady upward the years. years, category continues to take be has on just you And if

I we there. yes, So where are like

services XX% of XX% is Dan, of 'XX was QX core. in 'XX about QX core. services

a else far. so Okay. your I XQ is better mean, in [indiscernible] than result better are everybody it

good a it's call So out.

We've Kevin, guess, out to kind of know don't you of in up. outpacing. just some I a up. upside heard and kind we've if QX you And the net size been the true heard virtuals. I dynamics, have can subs, of that from called sort virtuals on true

kind just thoughts think of of negotiation both and I and up all your you full know but true from guide, mix then virtual the of shift. given year virtual pace can help subs -- of But and kind us have kind just recent the the of the dynamics, kind we impact through on this

adjustments and true-ups tend hit have the QX. They year, us we primarily every to Dan, in throughout year. be

-- true-ups are little positive. turned of a they're part negative. is true-ups story, year. QX to be remember, There we primarily year, in the the Sometimes very X out But every

guidance, OTT providers. the we the don't the across set the, we have better-than-expected we saw down versus on seen -- from call since virtual direct-to-consumer. coming true-ups primarily And some we prior call, board, We what break

continued seeing at new sub point, are We're the Our think, consistent trends, everybody. growth with seeing really declines the traditionals. distributors. pretty large in this I strong We're on

continued clients DPDs We the are distributors. continued OTT and traditional growth modeling parts to in in

change or So either I don't of see those that trends anything one term in the would trajectories. near

the -- like overall virtuals becoming is direct-to-consumer folks. everybody mix it's the So obviously, else, and the shifting more towards

still getting our So We're signals. we're are great happy distribution. that getting people

everybody if of economics would The doing certainly were an be better this rate getting we the instead for negotiations the country. average in ourselves

-- have We we're get and content should paid the . Those command we value have we for delivering. that And again, better higher the rates.

way I think, that's, hope your long-winded I a question. of So answering

a you're the in know trying One one very helpful. of anyone know last that's of sort Or more guys having color be the But this, Atlanta -- share kind about how thoughtful kind here. of something excited to process just unlock, -- No, to the the how Hilton. and for in are obviously proposition, guys just with for you and disclosure can are jump to of close Yes. getting I on I it's us? Atlanta kind economic... tricky giving this. of you launch Assembly us is But on and/or the

Sure, Dan.

spending be NBCU be quarter-to-quarter. on not largely terms We releasing has the disclosing. But with we And obviously up. NDA have the an that numbers revenue will we will lease wound our Assembly

see to because remarkable love on going to be. I'm engine host is Assembly Dan understand phone when really, at what this you're so a proud everyone I'm economic going candidly, and -- so call would it, you the to

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portfolio. you that think anything so to But end the it being important can of in back at And most our entire one up into you want we assets point. could single

come to Barclays. question from Our next going [indiscernible] is from

the quarter. Congrats on

Suns for trying and lot you're out, the how limited lot But deal or a the still really we what you you a of do think to still know in Just economics can mention. trying are quick about... one figure of Phoenix probably I guys me.

it. nailed You

of think How towards of a Is do How that move strategy the the on do kind as think longer-term more Yes. How this we kind a the about inherently a side? hedge cyclical model? about back think retrans like company? we do we balance? of the about

This is Courtney. Kevin,

they adding them professional that adding are games, -- guess, so broadcasters me, as just we're TV Let that are clarify adding we sports stations. X to to are I adding first non-big independent them stations generally

other have gets those of displayed. content that Some

were spectrum up that stations and up, spinning of scratch. are sort Some from spinning are

impact across broadcaster no big TV we're the a when we're but as independent there's sports, bringing not about any industry, again, on about general us, to of -- we're X whole stations. the as the talking matter, So operations talking -- adding sports

industry think several pretty opportunities And is lie next years. the may what so over I ahead excited the about whole

TV But X, revenue news. a focus. it stations local going be remains the business local affiliate for new Gray, and not core to impacted. That's big of comes from our Majority means

whole So country, if going to at it's stations add, region the example, -- Telemundo business add of had to a it's not something of to that's if stations a we in last we going sports suddenly be year, the we for make cyclical. bunch that

news. that do fundamentally business around flow is in of to see revenue drives one just fact, local several a much it's built next is of -- you're and of to sort not ebb the of in that going not the given change going our and years, we the In probably because change our from business much out numbers, at think probably its to least going be

on any I I -- see this retrans. again, know From would don't don't impact retrans, have

we mentioned outside our with the we first have what that of today, now do YouTube, I is We have driven by and that have. deal ever sports --

And it's sports driver. sports And are other some are of big added a cover these ready, stations different markets. and in

rediscovering reach can sports. but time. cannot. development conversations. the a mediums stations other But stuff that the to independent is sports least come and broadcast a local over local have these at this in said, the deliver it's what's YouTube news stations move that amount we along of in and fair not new some -- local and In on news folks Obviously, the independent are Phoenix, the particular, have needle, the But Pat driving Atlanta the business that's with can it as are is, going way in that we shows already

question is from going Watts next Our Aaron Deutsche come to with Bank.

into got I've about couple you're to be Can you your more a you seems came [indiscernible] it core in advertising rest? the an the That holding follow-up or improved from the what and hearing One a on steady confidence from guidance core? around little month worse of questions. bit [indiscernible] side. your . seeing or talk Are

kind hate tell missed broke that. you repeat? I could there, you you, to Aaron, up Could chance we -- of any so

Sure.

I'm talk seems improve you've you the hear confidence reps from side, into you little a provided? be you're XQ. that to seeing Can encouraged your from XQ into about seeing or guidance core sentiment advertising Are worsen steady on to On and month-to-month your cadence the hearing or monthly how what year full currently in holding Street? The that bit more you're plays

to I Or... Yes. take want that? you did Jim, mean,

strong healthy is core well. up as X-ish is obviously say April I'd percent, single looking digits, in plus

little rate on in second at third quarter rates, a to that point is starts call, are but is And from quarter rates. higher depending June quarter kicking than tricky scenario June some month which third industry a early cycles June, the too always the think in. I

maybe is positive June still quite May, not why and but looking looking April as probably that's territory. healthy as and strong in So

below Jim, margin here, about Okay. bit in you And maybe I you Can again the both factors them of think That's profile aiming a quarter, a of where your resulting some report the then, talk business, question the being margins but the XQ historically? first we've at helpful. you guide. seen just around in

of million that in were you the QX Two One, us for charges things. $XX things expense line to control. spot that I basically out the onetime hit think need production of

running many talked remember. this and the they QX been this Secondly, operating fall last longer year in about we've been broadcast, than and expenses -- our both in especially well, call, higher are than can have in I have

inflation calls, from frankly, all cost the out has we up couple We've the wrung years issue, at quite X were us. But as adequate talked to available as our on we've recruiting as -- talked synergies caught we And ago. stations. having time the that and are staffing about we call, an hard of retaining levels the acquisitions QX a in a we at deem the last have operational

wages where that, years. running to the But model and next are year to understaffed our the and continuing I that was that. We and think optimum you're adjusting progress this on still we part address several cost progress we're making of benefits. seeing don't going through increases would from be, are that continue over significantly necessarily are

-- I then in can years. we a to it increase lower of think bring for hold this we reset future is kind can us, year the and

Okay.

And Okay. this operating nuance, [indiscernible] in are that I those onetime per Got Jim, it. highlighted, are expenses is agreement? as your defined you've credit your but those know

yes. Unfortunately, Yes.

it. Got

appreciate efforts. can for thinking ask unrestricted a that wear about moment, relates as I for If Okay. just debt? and is in your that to of the And the credit deleveraging And me, it Assembly I one then hat one my your all subsidiary to confirm I time. last context an wanted

to towards cash raised platform monetization in about those group? at and/or Assembly flows begins should cash the the As profit if the proceeds, going the that paying debt be you we have around and generate down project deleveraging events restricted future thinking

First, are you correct.

centralized reasonable, I the presently. would it think, got monetizations. possible that, be company and/or the like I about run just flows subsidiary mean, talking going cash assume system. a about of unrestricted to treasury -- careful I future an I'm to a Assembly be rest is we Obviously, But

clear debt calls the been capital pay down very So over for company. is our several as and from last #X cash our that all in And the to as we allocation sources quickly possible. priority have in comes

from is Our next [indiscernible] come BNP. question with to going

The A so. high to the million $XX From or liquidity end flow, cash -- I million just Good clarify related me. the in was onetime. reduction piece. the there's to And on facility. via What wanted $XX just was clarify from couple the securitization prior see to? question, bolstered to another of the that guidance, broadcast the that

I'm the not you're a to, sure is. not Is sure what total -- speaking I'm expense? what XX that exactly that

flow the was Sorry, cash today, prior I versus guidance, think, broadcast I think you're seeing...

Oh. in XX direct coming. is Well, we didn't obviously, yes, a hit QX, see which

I is it bit rest just all. estimates, delta. a big fine-tuning $XXX-plus full not not of million million of year a think and $XX very significant the certainly on is very little And at

I focused No, make you're obviously on takes. I And totally. separately, wanted and deleveraging. sure just puts understood the then to

You as deleveraging. equity. in to discounted depressed see the with for like it given make on -- seems market is, trading wanted your on way market low I prospect, Clearly, the you that cap bonds sense accelerate unsecured your it buy would XXs. where especially potentially hear I debt the the cap a it it thoughts mean, just like to sounds to

So a where appreciate that the significant comment of saying say today, But we at rates never. never least that of as fact tranches my at I'll as discounts. preface are I are. short-term view interest trading But bond by

I more And loan lean an term tend all aggregate as E have the coupons And longer-term would shorter term the is now bond at the at to our with We look maturities, rate maturities X% and I loan at shorter-term paying. expensive maturities. down compare the to issues cap the currently in. that of paying towards capped we're absolute pricing X.X% that the and coupons that

in in are like terms that potential, other it any by of Got even consider be flow still you'd it. the XXXX, asset prior the accelerate expected more, that least Because either you expect years then there maybe deleveraging potentially X. cetera, generate et levered if of full numbers, would deleveraging? sales, you at Very in cash noncore my into in sort looks and the And finally, helpful. of you -- to level

or terms of would any So be deleveraging any further in plans thoughts further helpful. accelerating

assets, that's are iota. we of. tiny move not would noncore anything is plan core noncore, dispose that to X the so quite no There frankly, or that And needle it

Instructions]. [Operator

Stephens next come Zangler question from going to Our Inc. with Nick is

This is on Dean for Nick.

there I with Gray some indication within some And You've the local local seeing programs think any Are been dealership been the of seeing industry you pressure news stations. across are peers there's on various segment? markets. overlap

answer quickly reverse The no. We're is of exact doing the that.

that we in have, been actually cases local of ranges product news our market, to every content the the increasing significantly. market -- news with across quite cases, board and in more regardless We own our some are local almost in that And and coverage are syndicated may moving sizes, others aggressively supplanting have. create many

eliminating there So is no potential of Gray news coverage anywhere.

acquisition I think strategy many many, of this many, years. our a validation is over

and #X markets. centered #X, generating TV stations news in focused gathering important have We stations, news always upon

of for of the having watch the market want at end news in in from far, the but to viewers the by anyone I XX number And they months the the smallest the Atlanta, of morning, in station it because news-producing news hours so want because gone every here when instance, day, we've news. largest

there provide it. we to so to need And be

So you'll on pullback see from no news us.

that And then mentioned more being bottleneck you Got a getting on it. Is aggressive of that any expanding news markets. some I for know coverage? news local local in content, -- that more is just

and bottleneck, on a Pat let those. not follow all It's up I'll

across indication to is it's the there's good folks trying have Everybody and fill enough many industries different country think post-COVID. not an just just them. find people, I out companies and good that there to

so of to as not Hilton every news We've been mentioned, caused way. us -- to it number too. producing yes, able I has hours in market, we're company a pull is -- labor going up any Tight mean as back produce year. the

But do last that over make little and significant progress months. hiring some effectively. technology sure get through and as we yes, X the staffed, to fairly with use it we've been we've to X we made able to it in We best can efficiently a bit short

direction. So that's the sort of headed right in

come to from Jim going is question next with Our Barrington. Goss

reverse I cost past? they've less at Kevin, any you been requests rationalizations typically in the this they might undergoing. than from on was networks been aggressive programming comment stage that with been any have if Okay. comp Have

At I at be think to -- reasons. I several few talk the this couple expectation. a about have expect think coming that prefacing say are I don't not been our Jim, high is that it comp grow, we to level, of negotiations because reverse I peers the last will And -- over calls, fair folks have we're down specific for that to specific changed. a negotiations. do in It's rate and we the our said want we our time and

I'm just are industry across talking the several high at level, a So saying now. but fairly folks right

too and offsetting to any with started even to in they next have is that extent, that retrans isn't addition hit think hit base max, a you somewhat But a to some total? from your have aside that in retrans from off think with limit some for wonder which sales. expressed, to quarter of I little net of increasing the you've seem guidance a leveling stable bit do that Okay. reverse provide a comp somewhat requests in and subs maybe reasonable suggest to erosion the been I seems in thoughts bad ad to we've maybe prices

not you sure -- about -- net. I wasn't I'm gross or your about question were talking of

they as another, you're there higher reverse and if wondering both sort well, the offset a I they I'm the you then probably or more the going retrans are the of think upside. and one that subs comp of reverse or net is do guess if far if Well, the -- issue, might [indiscernible] as gross some you're about already have losing getting

has everybody point we shouldn't the in terms. those slow years, that's I'm and argued be for wondering if Over a that upward. starting to maybe onward thinking -- that to past

I reiterate, I'd we comp this just new and have gross And think year. low we we rate expect agreements. a net be to and still single reset, next year, up large network digits have

reverse level different a comp have we'll So year. next

reiterate, we just see So net. both that and still I in expect growth can gross we will

from introduced the of that wondered update deal I relationship? about impact you any might that uncertainties Then a Okay. be any Premion and from with

Jim. no Really impact,

a It's and is high of product Our growth market, demand in are Premion. is job excellent. in stations year-over-year substantial. doing great the there The selling

finally, And your within With separate big driver. programs own business or effort it emphasized, feel? either is to provide any broadened for you've across, get your least at to platform sort of enough a news a is news Okay. national maybe your national as key local,

We're board. really the looking to sort markets across remain on very focused of local

things the we a footprint to have particular have all on of across our basis with that do things the opportunity done is markets. statewide One

so are we've in Georgia, of far most And XX immediately we've Oh is markets. what an working statewide done eventual -- The Telemundo Alabama, one it to because Susan in her Telemundo taken and team to Tennessee. total relevant in with take above

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from John is question going come Kornreich Media. to next with Our JK

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this granularity guidance not at giving level that point. We're on of

for are whole you But retrans net the year for reiterating up Okay. 'XX?

Yes.

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Correct, yes.

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'XX sorry. Say again,

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to Onex. going come from is from question next Our Monica Liu

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is Our to going from next question Steven Wells come with Cahall Fargo.

been you you've flow. you Hilton, is talked helpful just a maybe how tying first movers much free cash about you of, undervalued, together. things think said few kind Hilton, on and and the So stock Jim, Jim

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last X.X. So X.X. about quarter, the In fourth about we're were we currently

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sports talked on deal TV deal now you've with vMVPDs, sports. the and you about And it. just Got some then and YouTube got the independents, the for

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Yes.

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content we that TV stations again, always audiences have -- to want we it comes back think So what done, it's -- local which for to that is have see. we've

sometimes And sometimes content. that's news, sometimes it's sports, other local and and it's

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shows. it's Sometimes game

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big the half we're Yes, X talking Steven, now. with right

talk So I'm and not of really deals. terms -- appropriate to about I don't us think it's structures for really

of So our negotiations. confidentiality the we respect need to

is with come Loop Capital. question Gould from to Our next going Alan

I've for Kevin. got one you, Hilton, a then and couple for

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here And we long up have come have lined to people of a line to their movies. that produce

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XXXX, XXXX And so from I it. to said revenue In earlier, as on. will it we'll start full seeing, be

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watching visible we've numbers land be included place. for expect you're but taking sales there's you. are standing activity some excitement that as there we around to while, those expect and So a conversations more here And we

Absolutely.

an you incumbent quickies. there [indiscernible] the primaries And you when race? versus the Kevin, is in And Can us much in secondly, difference sub sense. Makes not just the update X year-over-year? trends how historically, on have

digits. Yes. On growing we mirroring down nothing point, mirroring double and this we direct-to-consumer nicely. There's the sub our virtuals, industry largely peers. our The are is at the the OTT, -- are sub Again, at look and our which trends, trends. MVPDs

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from XX we're a day. Now has election seeing ads name before months already who recognition someone

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Research. question going Huber from next Our with Craig is to Huber come

average that You and for guys the X-plus quite environment was percent. in core given that we're mentioned up here April It's good, stuff. particularly

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those due -- can are at to, a you level. some what Quincy I stations tell can't percent as want that I can Hilton look if and mean, to very you tell exactly of numbers, I X% performing high to I you the is alluded Yes, Meredith.

#X. -- Phoenix #X. they're stations we and Today, I'll and Anecdotally, for acquired When can of I rankings and talk X 'XX, the these about ratings their in a December second. #X were #X

share higher group. out advertising a Arizona. that they're across reason, that And really market Phoenix, is that's For that taking playing of in a the phenomenon much

the So I increase. you an is Meredith exact that give from number, can't contribution to stations a material I'm fairly there while sure

you the piece, it's mean, And can with down. help it I sounds us that? national like then Okay.

national national small a down. first relatively quarter, But core. was of In is we earlier, overall component as commented

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last X call, sub year-over-year. And said down conference then about here, side guys your in X.X% retrans months you were the of subs things you ago Okay. on retrans

about talking the you're Now it with being market. in line

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generally reported in virtuals media. are with We're are we're doing. We're everyone and on seeing consistent the estimates else and numbers what public consistent generally estimates now. that DTC, And with is seeing the seeing what that numbers both

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went before in basis rates was That points XXX a up interest year.

come leverage will will will we -- 'XX, down. we So our through --

to to the cycle of on out I think whether low election 'XX Xs in the somewhere depend in going the it's what or entirely Xs is the come be.

about we're the Obviously, presidential. optimistic

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going national a implying broadcasting going now that to We're are broadcaster, to be We we're do it locally. nationally. not

largest markets. XXX second the the We're in in broadcast company country. We're

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gotten And so scale shareholders capital the buybacks sees is then Board we increases they reducing to be returning our fit leverage that the have need X as feel and our will both doing dividend largest that things and the comfortable. as already we through stock since we and

and ratified that's we're Board at Our doing. meeting, what yesterday dividend to Board going our our be

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on So now don't in with unless down There's do about us just our we Quincy the laws coming. see pay same not just the go like acquisitions and business, room I And enough our and huge it operate did to year we for debt. cap change. Meredith the

prove see assets the to as of the delever, I So of and underlying year the we price really continue company. improve expect this are over quality this our stock that course to and we next dramatically

percent quick year-over-year in the Maybe question. your appreciate I last what's that change what was quarter? My there, outlook time here. Auto, your please?

Somewhere in mid-teens. the

around trying I'm last it. in to of It XX.X% was on, compared XX%, QX grab 'XX core QX Auto to hang Yes, year. XX% healthy. was very in

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Michael Our Capital. is NOBLE with Kupinski to last going come question from

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out data XXXX $X.X to its And about Gray offer if core casting Where to others a the industry. what data see saying some the data billion are building so, you data And in $XX indicated do you'll casting? opportunities that in as casting industry? of does And [indiscernible] in be stand revenues casting? you have in from terms billion think could

last your think first, So to don't question answer I 'XX.

'XX is possibility. think a I

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it's 'XX. I I guess don't better a So little And starting material it a think in number clear, into be we'd think be would to in 'XX. will To come I start seeing money focus.

Okay. questions There more in are no queue.

back you it to closing remarks. turn for any I'll So

But before signs that few morning. to this you you, current just of to operator. this. up know want it We Thank proud up I wrap very don't of the our a we're recession say candidly looming horizon. we results close all like on I'd and things just see

in the the the station largest business. producer news the We're portfolio have local in best We television industry. television

XXXX. presidential XXXX in first have money coming for of half We the

comes liquidity. And that, online Sports I we're model. local returning and our emphasize, must Assembly with having the month. all to are said tremendously businesses comfortable next broadcast

maturities. near-term no had We

we to our We LIBOR variable debt in and rate converted have from place. already rate interest have caps SOFR,

to fully this we of benefits reap year, core well but later political begin as pressures of enough sheet significant any we balance not station weather remains television may amounts as XXXX. Our business macroeconomic that face to the in just our revenue, strong before

thank Thank you We future time. the to for So for you you individual your you morning. to this conversations. need if your have look forward bright. is time And all to talking

call. This concludes your

You may now disconnect.