First Quarter Financial Highlights
First Quarter Financial Highlights (in thousands, except per share data) Three Months Ended March 31, Historical Pro Forma* 1999 1998 1999 1998 OPERATING REVENUES Broadcasting $21,168 $19,511 $21,168 $21,815 Publishing 8,022 6,537 8,704 7,601 Paging 2,202 1,934 2,202 1,934 TOTAL OPERATING REVENUES 31,392 27,982 32,074 31,350 EXPENSES Broadcasting 12,989 12,118 12,989 13,322 Publishing 6,355 5,458 6,941 6,318 Paging 1,514 1,256 1,514 1,256 Corporate and administrative 747 660 747 660 Depreciation and amortization 5,454 3,622 5,553 4,934 TOTAL EXPENSES 27,059 23,114 27,744 26,490 4,333 4,868 4,330 4,860 Miscellaneous income (expense) 422 (241) 422 (241) 4,755 4,627 4,752 4,619 Interest expense 6,770 5,927 6,991 7,833 LOSS BEFORE INCOME TAXES (2,015) (1,300) (2,239) (3,214) Income tax expense (benefit) (455) 183 (762) (1,093) NET LOSS (1,560) (1,483) (1,477) (2,121) Preferred dividends 253 359 253 359 NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $(1,813)$ (1,842) $(1,730) $(2,480) Media Cash Flow**: Broadcasting $ 8,297 $ 7,428 $ 8,297 $ 8,527 Publishing 1,690 1,097 1,785 1,301 Paging 699 687 699 687 Consolidated $10,686 $ 9,212 $10,781 $10,515 Media Cash Flow** margins: Broadcasting 39 % 38 % 39 % 39 % Publishing 21 % 17 % 21 % 17 % Paging 32 % 36 % 32 % 36 % Consolidated 34 % 33 % 34 % 34 % Loss per share available to common stockholders: Basic $(0.15) $(0.16) $(0.14) $(0.21) Diluted $(0.15) $(0.16) $(0.14) $(0.21) Weighted average shares outstanding: Basic 11,955 11,881 11,955 11,881 Diluted 11,955 11,881 11,955 11,881
* Gray (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 and amortization (including amortization of program license rights), non-cash compensation 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, and 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.