Second Quarter Financial Highlights
Gray Communications Systems, Inc.
Financial Highlights
(in thousands, except per share data)
Three Months Ended June 30,
Historical Pro Forma*
1999 1998 % Change 1999 1998 % Change
OPERATING REVENUES
Broadcasting $23,138 $22,690 2 % $23,138 $24,944 (7)%
Publishing 9,536 7,380 29 % 9,536 8,617 11 %
Paging 2,355 1,991 18 % 2,355 1,991 18 %
TOTAL OPERATING
REVENUES 35,029 32,061 9 % 35,029 35,552 (1)%
EXPENSES
Broadcasting 13,684 12,662 8 % 13,684 13,518 1 %
Publishing 7,355 5,983 23 % 7,355 6,880 7 %
Paging 1,724 1,327 30 % 1,724 1,327 30 %
Corporate and
administrative 941 657 43 % 941 657 43 %
Depreciation and
amortization 5,664 4,221 34 % 5,664 5,520 3 %
TOTAL EXPENSES 29,368 24,850 18 % 29,368 27,902 5 %
5,661 7,211 (21)% 5,661 7,650 (26)%
Miscellaneous
income (expense) 34 (73) NA 34 (53) NA
5,695 7,138 (20)% 5,695 7,597 (25)%
Interest expense 7,005 6,040 16 % 7,005 7,833 (11)%
INCOME (LOSS)
BEFORE INCOME
TAXES (1,310) 1,098 (219)% (1,310) (236) 455 %
Income tax expense
(benefit) (229) 260 (188)% (229) (193) 19 %
NET INCOME
(LOSS) (1,081) 838 (229)% (1,081) (43) 2414 %
Preferred dividends 252 359 (30)% 252 359 (30)%
NET INCOME (LOSS)
AVAILABLE TO
COMMON
STOCKHOLDERS $(1,333) $ 479 (378)% $(1,333) $(402) 232 %
Media Cash Flow**:
Broadcasting $9,584 $10,118 (5)% $9,584 $11,510 (17)%
Publishing 2,211 1,416 56 % 2,211 1,756 26 %
Paging 637 670 (5)% 637 670 (5)%
Consolidated $12,432 $12,204 2 % $12,432 $13,936 (11)%
Media Cash Flow** margins:
Broadcasting 41 % 45 % 41 % 46 %
Publishing 23 % 19 % 23 % 20 %
Paging 27 % 34 % 27 % 34 %
Consolidated 35 % 38 % 35 % 39 %
Income (loss) per share
available to common
stockholders:
Basic $(0.11) $0.04 $(0.11) $(0.03)
Diluted $(0.11) $0.04 $(0.11) $(0.03)
Weighted average
shares outstanding:
Basic 11,966 11,917 0 % 11,966 11,917 0 %
Diluted 11,966 12,516 (4)% 11,966 11,917 0 %
Gray Communications Systems, Inc.
Financial Highlights
(in thousands, except per share data)
Six Months Ended June 30,
Historical Pro Forma*
1999 1998 % Change 1999 1998 % Change
OPERATING REVENUES
Broadcasting $44,306 $42,201 5 % $44,306 $46,759 (5)%
Publishing 17,558 13,917 26 % 18,240 16,218 12 %
Paging 4,557 3,925 16 % 4,557 3,925 16 %
TOTAL OPERATING
REVENUES 66,421 60,043 11 % 67,103 66,902 0 %
EXPENSES
Broadcasting 26,673 24,780 8 % 26,673 26,840 (1)%
Publishing 13,710 11,441 20 % 14,296 13,202 8 %
Paging 3,238 2,583 25 % 3,238 2,583 25 %
Corporate and
administrative 1,687 1,317 28 % 1,687 1,317 28 %
Depreciation and
amortization 11,119 7,843 42 % 11,284 10,519 7 %
TOTAL EXPENSES 56,427 47,964 18 % 57,178 54,461 5 %
9,994 12,079 (17)% 9,925 12,441 (20)%
Miscellaneous
income (expense) 456 (314) NA 470 (276) NA
10,450 11,765 (11)% 10,395 12,165 (15)%
Interest expense 13,775 11,967 15 % 13,996 15,666 (11)%
LOSS BEFORE
INCOME TAXES (3,325) (202) 1546 % (3,601) (3,501) 3 %
Income tax
expense (benefit) (684) 443 (254)% (778) (678) 15 %
NET LOSS (2,641) (645) 309 % (2,823) (2,823) 0 %
Preferred dividends 505 718 (30)% 505 718 (30)%
NET LOSS AVAILABLE
TO COMMON
STOCKHOLDERS $(3,146) $(1,363) 131 % $(3,328) $(3,541) (6)%
Media Cash Flow**:
Broadcasting $17,881 $17,546 2 % $17,881 $20,037 (11)%
Publishing 3,901 2,513 55 % 3,997 3,053 31 %
Paging 1,336 1,357 (2)% 1,336 1,357 (2)%
Consolidated $23,118 $21,416 8 % $23,214 $24,447 (5)%
Media Cash Flow** margins:
Broadcasting 40 % 42 % 40 % 43 %
Publishing 22 % 18 % 22 % 19 %
Paging 29 % 35 % 29 % 35 %
Consolidated 35 % 36 % 35 % 37 %
Loss per share available
to common stockholders:
Basic $(0.26) $(0.11) $(0.28) $(0.30)
Diluted $(0.26) $(0.11) $(0.28) $(0.30)
Weighted average shares outstanding:
Basic 11,961 11,899 1 % 11,961 11,899 1 %
Diluted 11,961 11,899 1 % 11,961 11,899 1 %
The following tables exclude political revenue from Gray's historical and
pro forma financial information. These tables present certain financial
results of Gray without the impact of cyclical political revenue. Excluding
the impact of the political revenue, Gray's revenue and Media Cash Flow**
increased over the prior year on a historical and pro forma basis.
Gray Communications Systems, Inc.
Financial Highlights Excluding Political Revenue
(in thousands)
Three Months Ended June 30,
Historical Pro Forma*
(Excluding Political (Excluding Political
Revenues) Revenues)
1999 1998 % Change 1999 1998 % Change
OPERATING REVENUES -
excluding political
revenue
Broadcasting -
excluding
political
revenue $22,998 $20,694 11 % $22,998 $22,911 0 %
Publishing 9,536 7,380 29 % 9,536 8,617 11 %
Paging 2,355 1,991 18 % 2,355 1,991 18 %
TOTAL OPERATING
REVENUES -
excluding
political
revenue $34,889 $30,065 16 % $34,889 $33,519 4 %
Media Cash Flow** -
excluding political
revenue
Broadcasting -
excluding
political
revenue $9,444 $8,122 16 % $9,444 $9,477 (0)%
Publishing 2,211 1,416 56 % 2,211 1,756 26 %
Paging 637 670 (5)% 637 670 (5)%
Consolidated -
excluding
political
revenue $12,292 $10,208 20 % $12,292 $11,903 3 %
Media Cash Flow**
margins: - excluding
political revenue
Broadcasting -
excluding
political
revenue 41 % 39 % 41 % 41 %
Publishing 23 % 19 % 23 % 20 %
Paging 27 % 34 % 27 % 34 %
Consolidated -
excluding
political
revenue 35 % 34 % 35 % 36 %
Six Months Ended June 30,
Historical Pro Forma*
(Excluding Political (Excluding Political
Revenues) Revenues)
1999 1998 % Change 1999 1998 % Change
OPERATING REVENUES -
excluding political
revenue
Broadcasting -
excluding
political
revenue $44,117 $40,016 10 % $44,117 $44,375 (1)%
Publishing 17,558 13,917 26 % 18,240 16,218 12 %
Paging 4,557 3,925 16 % 4,557 3,925 16 %
TOTAL OPERATING
REVENUES -
excluding
political
revenue $66,232 $57,858 14 % $66,914 $64,518 4 %
Media Cash Flow** -
excluding
political
revenue
Broadcasting -
excluding
political
revenue $17,692 $15,361 15 % $17,692 $17,653 0 %
Publishing 3,901 2,513 55 % 3,997 3,053 31 %
Paging 1,336 1,357 (2)% 1,336 1,357 (2)%
Consolidated -
excluding
political
revenue $22,929 $19,231 19 % $23,025 $22,063 4 %
Media Cash Flow**
margins: -
excluding
political
revenue
Broadcasting -
excluding
political
revenue 40 % 38 % 40 % 40 %
Publishing 22 % 18 % 22 % 19 %
Paging 29 % 35 % 29 % 35 %
Consolidated -
excluding
political
revenue 35 % 33 % 34 % 34 %
* Gray Communications Systems, Inc. (the “Company”) acquired the assets
of The Goshen
News on March 1, 1999. The Company also acquired Busse Broadcasting
Corporation and disposed
of WALB-TV, the NBC affiliate serving Albany, Georgia on July 31, 1998.
The results of
operations of these acquired businesses have been included in the Company’s
historical
financial statements since their respective acquisition dates.
The pro forma results of
operations of these acquired businesses have been included in the Company’s
pro forma financial
statements since the first day of the respective reporting period.
The results of operations
of WALB -TV have been excluded from the Company’s pro forma financial
statements since the
first day of the respective reporting period.
** Media Cash Flow is defined as operating income, plus depreciation, non-cash
compensation,
amortization (including amortization of program license rights), and
corporate overhead,
less payments for program license liabilities. The Company has
included Media Cash Flow
data because such data is commonly used as a measure of performance
for media companies and
is also used by investors to measure a company’s ability to service
debt. Media Cash Flow is
not, and should not, be used as an indicator or alternative to operating
income, net income
or cash flow as reflected in the Company’s consolidated financial statements.
It is not a
measure of financial performance under generally accepted accounting
principles and should
not be considered in isolation or as a substitute for measures of performance
prepared in
accordance with generally accepted accounting principles.