Gray Television (GTN) 8 Nov 242024 Q3 Earnings call transcript

Welcome, ladies and gentlemen, to the Gray Media Q3 2024 Earnings Call. I will now turn the program over to Chairman and CEO, Mr. Hilton Howell, Jr.

Thank you, operator, and good morning, everyone, and thank you all for being here.

As the operator mentioned, I'm Hilton Howell, the Chairman and CEO of Gray Television. our in our all Breland, our President Operating Kevin here officers, our our Chief me Development Officer; LaPlatney, and Pat and Latek, Financial with Officer. Atlanta Jeff of are executive Chief Officer; And and Legal Gignac, Chief Co-CEO; Sandy

As will a begin disclaimer provide. Kevin will usual, we with that

Thank Good everyone. morning, you, Hilton.

company Television, www.graymedia.com. as a website Inc., uses Gray, its is commonly Gray address source known information. of or website as Gray Media The key

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

Included call financial be ratio of valuation discussion measures in provided ratios. meant a and, certain are company. supplements leverage our but not These as and public on its EBITDA, to to may analysis the measurements the of replace metrics are and in non-GAAP particular, denominator GAAP leverage adjusted assist

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

Hilton. now give And the to I'll call

you, Thank Kevin.

to of stakeholders. great serving continuing an and company and in for grow in all and financial take reporting is to our you We to ever-changing our our evolve continued that pride great communities Media quarter, success deliver has the strong results in opportunities challenges to every invest industry. exceptionally meet Gray and

you strong with earnings political morning's our Gray release, a exception in saw As guidance, revenues. advertising line of lower-than-expected all our the with had quarter, largely third with in this revenues slightly

well focus efficient. In that our to to addition, you the be on continue guidance expenses low of ways as range below we more our end saw were

alone quarter third the of third XXXX, Political of $XX Net ad quarter Specifically, quarter million only revenue in quarter an XXXX. $XXX to due increase increase was EBITDA political income $XXX shareholders the million, $XXX quarter XX% Core the million, are but year was the political increase the from ad quarter XXXX range, of highlights below of an the third of of Adjusted X% record revenue which advertising revenue third the of from in third for of third from million our follows. Total increase third a in in XXXX as quarter common was third XXXX. $XX in in the million, was advertising an $XXX quarter was XX% guidance revenues XXXX. compared revenue. third of slightly the attributable of net the million $XX in to million was loss the in quarter the to quarter XXXX. of our below the

senior million total a X as of leverage during to repaid is X.XX quarter, are year. all at the looking ratio repayment calculated net $XXX billion $X.X the of end and our end the of quarter third the At of was third our in agreement, the cash, we by credit almost

our revenue have to managed displacement. we in quarter We political the grow are that core headwinds some third despite proud ad and

the our Hurricane made ramped a reach that channels a local storm, delivering believe before of for mission and particularly we threat significant areas suspended of within commercials they on from value of core continuing difference exceptional the drive the and/or third number the days that Southeastern communities our last Georgia, the up digital Helene commitment and after Particularly and sales of and exceptionally quarter direct of our sales station strong clients. Many execute ad in curtailed Our markets teams by coverage North terrible believe the those as and growth, new to to in affected communities. damage perhaps our continue the of and airing Florida, advertising revenue to We saved lives. followed. Carolina

first began was saw We with when adjust record political the and of revenue relative the in ingredients quarter the ad strong cycle. strength all either presidential Our for optimism primary year you to political a the absence competitive half third XXXX we of very the party. in of as a

many years were and saw ago, we X by ballot the of races expected Day. competitive simply Labor competitive not As that races

our quite political was shifted tremendous Thereafter, In spending fell finished largely XXXX. below political third ad of political amounts outside of in our footprint, quarter of a that essentially fewer number races strong end, more record ad revenues Montana to revenue and quarter Pennsylvania. station competitive third yet the ad our

expect because of for us to That our year of, political something -- exceptionally largest of of recipient in some business the XXXX, which the are a reached TV on gross as proud double billion and a makes basis. that both full and we approximately per we us, ad political television the XX $X.X appears competitors is revenue, broadcasting reach. For dollars it our household we

top that So to the of at we're pile. be happy

the company not release is highlighted also earnings Today's sitting still. that

focus our business direct are on across digital We developing our and keen station footprint. local continuing

audiences We produce to are continuing pieces local news investigated and that want.

journalism. national our Awards X had X for received in recently national investigating In fact, excellence Murrow Edward unit, InvestigateTV, and stations we

are local continuing to broadcast. our expand We sports also

past the side, August launched significant a expense nearly aspects this that cost On exercise containment we the of touches all company.

to team or and explain, commitment our service ways As our find the our to has hard to impacting continuing values, more our news coverage our level customers communities. Pat will highest the sincere local efficient to worked leadership delivering here of communities without local

top priority. our and capital allocation leverage Reducing debt remains

act area. steps concrete and priority, to to goals have will taken on so this do we continue until we in have achieved our We this

later recent most will Jeff in which address further Our details efforts, call. earnings our the release

ahead beyond, and long-term actions that will for business compete company are we positioning our the ever-changing What in reinforce impactful to the read more in hear equipped stronger, in Looking is and the you efficient taking press today's and environment. to a XXXX best necessary commitment success. to will be call, release, company today's to

color now And operations. more on to Pat ask our we'll provide

you, Thank Hilton.

core this Our 'XX. third than were the higher XXXX, X% quarter of quarter ahead of of X% the revenues third also which was quarter ad

of This achievement is political occurred recruiting in stations our our displacement. number driven digital headwinds, particularly despite mentioned, by new Hilton advertise local As core platforms. to revenue ad our strength and/or on a success businesses

QX up almost XXXX QX in Our new local XX% direct XXXX. was over business

to local local very encouraging and are in of of FOX, this that so markets gratifying, posting especially competing ABC TV share our Olympics audits ad quarter affiliates the Paris growth stations our results against the a CBS, new In because of summer. and share record. these by third audited as party, a markets increased many These are did total we third audit the that a showed record viewership

million, performed stations the north some at Summer Our political $XX advertising. well of of generating which was NBC Olympics,

for bright to be sales us. spot a ad continues Digital

digital seeing we that $X the every digital record had third and rates is for accounts than year-over-year month. which nearly ad double-digit million more quarter, growth for are and records XX markets new sales, a digital We us. In new new in ad revenue

ad political of of good the terms a landscape for In provided revenue, us. Hilton description political ad

third going a were revenues basis, from ad into strong historical political quarter. quite Our

gubernatorial As races the third political quarter felt fewer progressed, our it Senate in footprint. were there competitive appears the and parties truly

when the in and see ad decrease saw as level We initiatives. house has only long been exceeding level, category the state revenue which ad year our local where that as expect XXXX we well largest level, ends, or the and we category. will races, meeting revenue presidential at numbers Senate our political issue occurred XXXX ballot political The in

end, less The used lot In of pay difference spending to Senate competitive we million Georgia which XXXX, in including is million political year, political billion, our some XXXX. and $X.X the versus to from station footprint races brought races, debt. about this In year. about of for races runoffs, $XXX $XXX current two revenue from had resulted revenue which ad money, $XXX Senate of a portfolio we our this down the Senate compared in million

third 'XX. the and end In quarter. Gray the led in average beaten momentum, group peer ad public group compared of peer since again in average appears to it year-over-year pandemic, fourth the performance, the be revenues this quarters the down we will core Despite has quarter we revenue most the core ad the that anticipate in

political to the 'XX, ad in in XXXX, displacement group from In core X% the 'XX. pressures. prior revenue station COVID declined XX% context, due current our from from year primarily For our fourth quarter QX and core revenue QX ad declined

slowdown of ad attribute We a also revenue from football to core significant the of piece Southeastern move to CBS ABC. Conference our

are to we political our CBS owner, Baton Overall, core SEC core Atlanta, of revenue quarter. reduce Lexington, Rouge, be Waco, and ad others. the Southeastern will down which Ten we political in full unusual The have in revenue the year ad Station, as year. with the slightly, not We College Knoxville, affiliation CBS replacement and expect is affiliate for largest XXXX, markets. fourth in the Think many Big among

million operating corporate of for million end $X respectively. ranges, XXXX, operating side below low guidance the expenses and broadcast were expense the On of the expenses $XX quarter third our and the expense

serve to an our we to We're ways involve 'XX, expenses. identified on across closely in for will run prepare review find to August, $XX mission year and to and also streamline August guidance approximately XXXX. allow our our reductions broadcast initial February. without of capital our expenditure basis. major we currently to our personnel Most needs taken provided Since operating OpEx us evaluating year implementing nonpersonnel that steps a be our effort OpEx in communities. various back million launched expense initiatives expect corporate we've operations To annualized reduce We've rate full on expense below the reduce expense for company and cutting categories. XXXX, full the by begun For significantly to to also spending

we positions the ordinary in by suspending and not Beginning eliminated by recruiting certain positions attrition following August, course. filling in

difficult our particularly for reductions personally has role affected who's an directly targeted in These in some actions individual made Gray, Every also headcount. of played everyone We and the at are painful success for company. other communities long-term the necessary benefit the all efficiently company They on employees depend impacted the are, us. those for to job operate the that for more of by however, and important restructurings.

will developments. now address important Sandy some operational

third devastating information along for in the communities and quarter storms. Gulf into quarter, lifeline with the served critical Coast as again fourth the a our Once of stations dealing

employees own teams Hurricanes a our coverage local storms. and while even of best where suffered provided Milton, from weather news those round-the-clock damage their homes is and trusted the broadcasters community. of Our This Helene Francine, serve some of

But late network, we venture didn't and multistate significant let the In announced It New through Orleans nonnational our New the rights every Coast households anchored our entertainment distribution Gulf September, storm television we game station. down. X.X Pelicans. Pelicans Orleans to NBA brings deal by us million new that's slow with sports media a

Continuing the of and with ever-increasing the games NHL and local NBA be from college games and fall regional Bulls, White Chicago our this teams Mavericks number an Sox momentum, the and Blackhawks this to stations and will broadcasting next spring, Kraken. professional through from

averaged local we October me of on Still, the political television. own Day. in XXXX and FOX question campaigns dive our our as newscasts. In why News XX the and with available news a local an keep question program, XXXX, news results, which this the that local of available p.m. an Investor cable a X.X program on million top-rated X/X can are get than sports reaching than from homes. comparison sharing political that. reach in this households. between I viewers less as sports need, businesses, broadcast X homes by any brings but and of many is including than viewers. businesses, want pulled to cable, the is show p.m. not Media. it's to newscast, local worth X more asked television. That's We an teams quarter think to Gray as in deep answering local local as viewers. about teams want the impressive, Collectively, in more sometimes million XX% XX% with the our million nearly and X.X impressive and Gray's That And average power newscast reach get campaigns U.S. Five which of despite Think impressive that's That's as investors viewers be ratings third Five, Finally, interesting

And coast. work great of proud coast ratings viewers these appreciate their from the important teams depends We're our work. of obviously news and show, very to loyal our on

turn to Jeff. over the I call now

Sandy. Thank you,

covered already and The QX team has our our outlook.

our focus sheet. will on comments balance my So

reducing earlier, Hilton remains our top As leverage priority. mentioned allocation debt capital and

improve to balance sheet continued We in QX. our

million, we outstanding June quarter, and line first our the with early total balance and debt X.XXx, quarter previously principal During in our the open returning a approximately was levels of combination and reduced to levels XX, respectively. This leverage by of our lien authorization third market XXXX. The repurchases X.X announced Board $XXX from X/X refinancing is during sequential under a leverage repayments par. at reduction of debt improvement turn our completed through and June following

of addition $XX D of $XX XXXX our million par. an announced price to previously of XX% XXXX we the loan at notes repurchased just term approximately of In par, XX.X% repurchase average under at of million our

$XXX million June we will into $XX XX.X% XXXX credit loan par, we million of full the November retire of additional at our expect repaid of QX, million our an Also an we whereby QX, XX. revolving we during under XXXX. to in that entered was of at drawn price close facility average agreements During term $XXX which

Looking total capitalize opportunities debt million, continue our approach $XXX reduce and net $XXX our a for full Board our this authorization has efficiently expect repurchase to to on million. of morning that debt. take reduce authorized XXXX, approximately announced by We balanced reset to market to a will our we to open and look forward we year outstanding

the like One side. outlook notable I'd on our is to flow highlight free tax change cash that to

fully in than seen during limited tax our of determined portion our have that XXXX interest course we real to As online, to assembly Atlanta under expense the release, is the you rules. attributable IRS deductible filing due our of may primarily return rather estate, coming

As payments a in from that on a result, this tax year our we and basis. expect cash to deduction go-forward benefit

repaying and flow. The expense have continuing the closer pulling summarize, taken look that actions a side, remarks. enhance turn plan all needs levers capital us that back for execute flow burden, my to we've to our interest to remarks, the So debt to XXXX. This we're will I to some our and on the available we generate cash our to into now going the closing Hilton cash our and at concludes call reduce profile on

Jeff. you, Thank

our any Operator, at for leadership this the questions you you line ask that any we time, team. for open up of

Watts take question [Operator Instructions] Deutsche first of We'll our Aaron from Bank.

questions. I have a couple of

to And you is more. first core can out corner on was hear you're strength, XX.X% ad of related? guidance. The your ad XQ that be question to weather postelection parse really how cetera, how down it'd I'm XXXX? things in turning a et your weakness, into and hoping what the a guide environment say of bit Are generally, you able much feel the seeing areas helpful core

the and any further how over million P&L maybe, exploring phasing second, with of actions should announced, rate that And way Jeff, any to of the point incremental we guess cost several hitting quarters? that there you're opportunity? kind about to I are frame in of you timing savings in ways next the I'd your $XX regards think run the

first remains maturities? it dividend? markets finally, been timing the on then reduction. like accessing reducing And in the repurchasing think you How further there continuing you to your any just front-end debt sounds And loans regarding to on potentially address the capital and allocation, consideration about envision do capital bonds? the market of Do the has focus be

Thanks, I'll Aaron. It's LaPlatney. Pat start.

I is your I number crowd question, of then cautiously the we say we which for right? have forward, We there's about think thrust remainder of material. some out. the optimistic going And at are was about is, which -- a I'd here, the of quarter. factors QX, So -- would talked play SEC, us, political

just which to seen have days, in And is we some We think unexpected. a last green completely not shoots candid, the couple sign. of be good

'XX. the So -- we we the remainder 'XX in more by see the optimistic the and better QX, improvement QX more of are

think there. Jeff, you I bunch questions. of a So I some for there's optimism know got reason

list. jotted Aaron, a Yes. I down

So just them through anything, in if weigh order I'll and miss in. try tick the to I

run $XX that, of savings is and personnel of the I most the of timing the of that rate piece million those. completed. of first all, especially guess So on already

-- we're already will start and filtering that already already rearview It's we've achieved mirror, in -- that's that. So the through.

the think anything as you about bending I think should as that curve. as much

over you If quarters, rate of look the last years couple and on come you've our expense run growth seen down.

So longer, will There were those will of actions. of quarter. that you'll -- number to a it continue see down take that but make things a these first bit starting result the year of as were be to in beginning of that and contracts workflow a renegotiation little and come we able changes in are

further specific right of but it, monitoring actions, that's now. nothing look, been cost terms In of there's continuously as identified we're

things, So at but look the moment. nothing at we'll to else continue planned

Capital allocation.

you the from the Board. the can -- $XXX So reloaded see we that million authorization

we're where debt. any So it's be guided to can going due we can continue not get We of good -- go tranche by to value. to

And things so where look trading. we'll at are

opportunity We against there's that interest. markets an doesn't much us too will certainly look if at of price tap delevering. cash and That's reasonable flow a the in work terms to capital of

as we through can then from but And say well, that quarter-to-quarter. at this I it And on weigh sit dividend, we quarter. where we're the paying today, it in look Hilton would on this comfortable

further Hilton, I know want to on if don't that? you comment any

further right No comment now.

have we Marlene up Next [indiscernible].

just many one them. actually of addressed quick A You though.

potentially has is the provide possible around impact? would hurricane that the specifically, it In political been impact hurricane without some to the from terms political, number what of meaning

few a million dollars. It's

Next Patrick Research. of Sholl we Barrington have up,

wondering with political. the was I

sort on you're just able some your there? and affiliates and maybe the of capture seeing selling you're between shift share to station apps within networks that viewing the If any difference ability local and opportunities

and cut -- Could question? you there. kind you in out I'm of Patrick, we sorry. repeat that didn't

of Yes. trying what was I in local -- to shift any there? capture networks between share there on reach networks? the and broadcast that to political on was, I any trying to the the versus to Or versus ask guess and ability buying stations able versus inventory your sell of shift and apps -- is sort station political buying linear being

Yes.

political results, this little about you So a look through talked bit. if our we

away categories far different were our the with the Senate, has were political largest. our up. of up spending historically and All categories exception of All which of been

money -- got was So it, Montana. the lot Hilton footprint Pennsylvania It we in our and And landed a of essentially. as out just of market. shifted there the mentioned, in

just Okay. seeing within industries? then like strength sort or And categories different ad the any are you core verticals, or weaknesses of across

Yes.

there but their the Auto the on understanding fourth economic was during bag. quarter, category third which political about quarter. ads on to -- or it not given elections, been in been party depending what not Candidly, of a And So right? categories. money has was would the then, weak. held prevail third was look, lot as that outlook really weak wanting mixed it's crowd It also a hesitancy air a somewhat different for political to either the well. be out, weak weak impacted us. in there People on little we has during of be onslaught was So -- quarter. political bit talked Communications

fourth would cautiously most about we're green the next the As categories those optimistic, remainder before, year. up out to -- we see then of quarter pick election. improve so shoots we're to expect we And coming starting talked but of some of for

direct had the And consistent laser mainly fueled digital, new Even direct. local growing we've in that's one October, up our local by with Yes. and new over on year-over-year, with political interesting note on just other -- focus that. the is strong

Capital we have up Doug Pardon Brigade of Management. Next

year? expense some that basis? number confidence after with been -- biggest of you a the it both on about at little lost net bit bit, looks Just you couple talk Can maybe noise and of the And down a a retrans that. wanted a on I directions change that probably just the think more year. our look one and Is gross a your might in be political as bad you bit Can to of something Because me have a talked to luck kind you talk the hurricanes. like with beat about concerns retrans and that's just investors. little guys little next for retrans then about. I And

Doug, this is Kevin.

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do. We have to work more

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guidance next we're we're giving the ingredients year, So things not any obviously but those are of kind at. of looking

Yes.

emphasize Let made. The that agreements. $XX Kevin point related anything to million network include does me just one any not

just then And Great. changing gears.

On side, case causes a bad concern? just is the is you footprint Or anything political there simply luck? this about your structural of that

we gross political any broadcast largest have bad ads the of hit which any number in billion, the didn't We luck. $X.X of sector. Actually, is peer

so And only... really the

just Yes, of did where but because expectations. people's -- some of you And met. said, races kind think guys that you I these of least did it's miss at

a not little I'm to I'm So -- that just bit? trying understand

consistent with did years ballot was ago. house more which ago, Kevin. X made We come to into in in made and back we than years we X ago. We did is than presidential This going all I'd in X money we state initiative ago. of year. money races We made as made more more more X did money our expectations races this than money did years local years we -- on we

this we everybody see at -- in the expectations, and was had Nevada, the think look to time. way spending time we polls close the places worked results it, did Gray sides match has big the I Our Senate. Arizona, ahead And Wisconsin, And of else Michigan. we it by internal spending results both a really not the got footprint. -- from And really, not where out. and frankly, happens today was

spent week. And turns a just out lot for all was there's polls and as lot that that wasted well And expected. There tighter and was are ton than of a of or unfortunately, to of examples of a be stronger. of nowhere that the ahead not for stations lot turns money race near another candidate. where money was flip people couple Gray was And is be expected Sometimes it there -- candidate side. on the spent lot of states The There's had the happened are you a money in this the again, race. out much races Senate to because not to sometimes most, a a indicate people races was markets. that competitor as where if us, that a

So we have share people of obviously story expectations, for is XXXX miss a felt a quite think that's make in that outcome, of And political political in bit and I to really that the came lot a entirely in expectations it's leaving a about shortfall from people's to confident have kind every had these guidance, really, races in is of the internal Senate have this I in right, that we've our expected we've political that with give what any and -- we races. difficult we seen is people Because Gray. believe hard you've folks other really with we on category, which and We And got right. there our not going are races just same that factors are to It about their think expensive our whole and exceed some going would very handful Senate beyond based Gray we just excelled That's ago. market to and money markets. control. never we seen on said lots but estimates years really, certainty. not and that Senate X broadcasters sector. and you've story. It of it's the We -- dollars But of shared. a people and but the that's cautioned not predict was about got completely

the expectations beat Street's none And that's and control. based not. really that people on some Some did can us factors of

State long of the a changed we're But what there. doing to our may market spend $XXX we may of outcome not party we can't Nevada, in or as can. the have getting we're another the So race as force share, million which

exactly that what super no, it's is looking -- I for, That's was context helpful.

So -- comment. know it's of long it, with more I structural issues the just a people footprint. My and short about no the last dividend. asked

We are shareholders.

you and of at really time, So take back kind point cash significant strategy. for just buy interest reduces guys I deleveraging we think it could ability that shareholders, to helpful that out debt of help over But thank and discounts questions. with is would compound expense really that some for the our you the

of have we up, Huber Research. Huber Craig Next

easy a make for to time. try you, at one I'll question I'll it go

the new your media potential here, don't On M&A environment any what expectations we with starting general? with space there, Why XX regulatory the here regulatory in the front, start for in the January please? administration cap broad changes ownership for are

Yes, for the ATSC next-gen on expect importantly, X.X entities. that matters, just on and a ownership and operational will not as broadcasters would importantly, be if and deregulatory FCC more for we regulated issues future of series our other

on In be. court actual guidance terms jurisdiction the courts from are the and depend of that's going FCC's who further pending some outcome commissioners the to the of specific policies, on cases, absolutely to going

policy position but really headlines, say to don't I FCC would I right be we're think specific do issues in now. strokes, coming, we handicapping broad regulatory a see So

net debt-to-EBITDA And term, your is what your then goal a on X-year for here longer basis? ratio

repay Craig, then has levered X-year Yes. make aggressively to On up company the term, acquisitions basis, and a debt. look, longer

year. of piece to the for that actions of repaid I rest far proving expectations debt that getting and the by we're our think so our back the we're

below it And realize X, but more little away longer so, term, that's still. gets when a ways look, we're comfortable I

it's take profile influx when the It's So going number take us just got going beyond point of runway longer we to cycle cash -- maturity from get big Xx the political back down 'XX and to have the have liquidity, to we've into that the right the we ideally to next view a there. term. get around Xs

costs the out on I more over talked as the you you there's XX-plus Next cost-cutting out take here question, the the feel Do of guys, you appreciate that. that $XX in think another you without million, business, about doing damage significantly next to months, front, could course? round

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on cost for bigger be we think where the land the us, renewals. I side more will it's savings affiliate impactful

that the all of is the them next months. over and we renew pinch XX point on So XXXX,

part next the So of the discussion.

Okay. question. last And

core you would the if -- is On fourth it. get advertising to hard for so, outlook mind, quarter, in know XX% this down I your or to the

that number What land it where football, at? If Is close crowding for slightly you do or you you chatted stuff, the about you adjust would flat would think political out down? to it and do SEC think?

out The crowd SEC? from

the overall Ten on line. revenue The have -- -- cost out. to yes, crowd CBS Ten then And points crowd that a percentage we moving in would Where of Big lot out inventory political to mean a change cost from Big it few landed. without SEC a the of terms in the us more look, we plus SEC to do And moving SEC. I sell, the us couple

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for Look, number we haven't noise crowd-out the right as what here there's term. and we're here that. And a we from the on a seeing. to Pat near as for there's what hard data tell sit optimism described, it number can quantify the Pat really on commit -- you guide in and hesitancy But that, of it's reasons is specific covers historically as we we think It's what see there based lot is it, now. today, exactly quantified is. cautious in What described we our to

And starting see of hard so the we're to stuff on it, right now. can't any I but a number specific to of too it's give some --

Michael have we Truist up, Securities. Next Kerrane of

if within to want opportunity you're margins will up market. a operational that specifically one something a than for allowed own more opportunity huge you be that guys about cost just follow were a Is to regulatory market? consolidate the you I single to and your able on question, in if station for the potential

one or overlapping any a in cost a stations than but doesn't news then a XXX the MyNetwork of station tasks two put lot acquire. markets, it's acquire depends have not have revenue, If have station. we significant have we or -- is that to Big we and This with X affiliate there's pretty we not the certainly news, It -- there's going facilities, we markets If that more second a there's and out. If Kevin. synergies. more lots not our on a Telemundo, it, acquired particularly of to CW we additional take is on it's If helpful. station be

pretty they're local went So we stations years where industry record identifying just And a buying synergies I creating think with the they already when new there's -- of in-market news a XX local good track through duopolies. companies have station. of

to and that together. depend we're market type the is on stations So going putting completely the the amount of

to So themselves if we active pretty and we're would to that been it. the we've permits continue opportunities expect sheet active balance obviously -- in present in space, be

Next Bill up, we of have Matthews MUFG.

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a year advocating and your $XX for to a is million in that the conversation boardroom boardroom? pause there even leverage that So until take Is it is voice the down? you a get there in

Yes.

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up, of Loop we Capital. Gould have Alan Next

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you the Kevin? want with to start XQ do Okay,

me put number why don't the up, Let you.

Yes.

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your -- Kevin and fourth think, of the Jeff... question I terms quarter, In around and Kevin

on XXXX back If Sure. XXXX. historical combined XXXX I and go our to

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network the cash the shift but all local, from there nitpicky, Pat, that Or flow the is on helpful. SEC a any is ramification? just revenue there, That's change impact?

It's revenue.

deep Jeff, then, dive just appreciate expenses. And Okay. on the the

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Yes.

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have Steven of we Fargo. Next Cahall Wells

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of As year, CBS, you the FOX, up end next of NBC is summer, know, year. ABC end this

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of Hamburger David have Morgan Stanley. we up, Next

we leverage Jeff, for where us think last the shake year low expect And had Can to you you spoke how you some leverage will I next you mentioned that the update longer you year-end? how to think out know could we see debt XXXX? kind mid-Xs. will about that? year? you should And of expected reduction to term, the execute on in now about on end but quarter,

Yes.

me Let continue ability sure actions take to In 'XX. down to some designed pay make the into the that our we mean 'XX. second to part are we the first. that debt I took of have going

year. the and of that, are we plan. With be finish maybe should market of from overall the on activities today by we the So where part open third slightly things where depending the respect 'XX, down like we flat quarter, that's end for to to

earnings need we're we after into to that So late to. first call get running the

-- queue. up the there's we're folks we end point, this and public wrap apologize, at still see the in to a of need the So calls couple other to going

with we have scheduled think individually. of calls all I you

we So rest day. stay schedule this the for the end need of to to on do

So, Hilton?

$X.X being quarter. peers next both of political particularly, our we We're that stack we impressed our to and terms most we're I'm pretty paid will end look everyone, talking happy we with quarter. for of particularly year, we're forward the have and billion core Well, proud actually and And time, spending quite in actually our in -- here. against all the to and you pretty which proud debt off of. Thank for our by advertising, our thanks, of proud you up

conclude does All right. your this call. Ladies and gentlemen,

joining for disconnect thank us You today. your lines, you again and now may