Gray Warns of Default
March 15, 2010
Television today warned that it would likely fall out of leverage compliance at
the end of the month as it issued preliminary results for 4Q and full-year
“Based upon our financial projections as of the
date of this press release, we do not expect to be in compliance with our
leverage ratio as of March 31, 2010,” when Gray’s
allowed leverage ratio drops from 8.75x to 7x.“We have commenced
discussions with lenders under the senior credit facility to seek certain
modifications to the terms of that credit facility, including the leverage
ratio covenant,” Gray said.
Preliminary 4Q09 revenues from Gray 36 TV stations came in at $77.5
million, down 18 percent from the year-earlier quarter. Local advertising
revenue was up 5 percent to $47.1 million. National decreased 1 percent to
$15.9 million. Internet was flat at $3.2 million. Political fell 82 percent to
$5 million. Retrans was up 346 percent to $3.7 million. Production and other
revenues fell 10 percent to $1.9 million.
Gray brought in $600,000 from Young Broadcasting stations that it was tapped to
run in the wake of that company’s bankruptcy.
Full-year revenues fell 17 percent to $270.4 million. Local was down 7 percent
to $170.8 million. National fell 21 percent to $53.9 million. Internet fell 4
percent to $10 million. Retrans increased 414 percent to $15.6 million.
Production and other decreased 13 percent to $7.1 million. The Young
consultancy brought in $900,000.
Gray (NYSE: GTN) did not report preliminary income figures. It ended 2009 with
$16 million in cash and $791.8 million in long-term debt, including current
portion but not an accrued facility fee of $18.3 million.
Shares of Gray were up nearly 70 percent year-to-date at $2.55 this afternoon; though down about 6 percent for the day.-- Deborah D. McAdams
More on Gray:
9, 2009: “Gray Swings to $10 Million Loss”
Gray Television shares dropped 20 percent this morning after the broadcaster
reported a third-quarter loss of nearly $10 million.
October 15, 2009
“Gray Increases Guidance
Gray Television, expects third-quarter results will be better than
October 1, 2009
“Gray Regains NYSE
Gray was notified last Nov. 4 that the price of its common stock was
trading beneath the Exchange’s required minimum
September 3, 2009
Successful Mobile DTV Tests”
Gray said it commenced its first successful mobile DTV signal at WOWT-TV,
its NBC affiliate in Omaha, Nebr., on July 24.
August 10, 2009
:“Gray’s 2Q Reflects
Gray posted a net loss of $6.6 million on revenues of $65 million for the
three months ending June 30. Wachovia had GTN coming in with revenues of $66
million for the quarter.
July 22, 2009
“Gray Tapped to Run
Reorganized Young Stations”
Gray Television will run the 10 TV stations that went to senior lenders in
the Young Broadcasting bankruptcy, pending court approval.
May 8, 2009
Revenues Drop 14 Percent”
Revenues at Gray Television’s 36 TV stations were down 14 percent to $61.4
million compared to $71 million in 1Q08.
March 16, 2009
“Gray Posts Loss on $339
Gray posted full-year revenues of $327 million, up 6 percent from
2007. Revenues for 4Q08 totaled $94.8 million, up 12 percent from the same
period a year previous.
February 9, 2009
“Gray TV Stations Get
Gray Television will launched interactive TV technology from Backchannelmedia,
a Boston-based firm specializing in TV click-throughs.
December 30, 2008
“Gray Expects $11
Million From Retrans in ’09”
Gray Television announced that it has reached agreements “in principle”
with 27 cable operators comprising 3.3 million subscribers.
November 26, 2008
“Gray TV Executes
Gray Television has repurchased 883,200 shares of its own common stock at
20 cents per plus commission.
July 16, 2008
“Gray Television Issues
$25 Million in Stock”
Gray Television issued $25 million worth of Series D preferred stock in a
private placement to make a prepayment on its outstanding term loan.
July 2, 2008
“Gray Television Puts
$65 Million Toward Debt”
Gray Television made a voluntary $65 million payment on an outstanding loan on June