Benzinga | Aug 5, 2021 06:36AM EDT

Gray Television Sees Q3 Core Revenue $278M-$282M

Guidance for the Three-Months Ending September 30, 2021:

Before the impact of the Quincy Transaction (and related divestures under the Allen Transaction), our Local, National, and together, our Total Core Revenue are anticipated to exceed the third quarter of 2019, the most recent non-political and pre-pandemic year, by low single digit percentage increases.

Based on our current forecasts for the third quarter of 2021, we anticipate changes from the third quarter of 2020 (excluding the Quincy Transaction, discussed below), as outlined below:

* Revenue, less agency commissions:

* Local revenue will increase by 18% to 20% to approximately $222 to $225 million.

* National revenue will increase by 14% to 16% to approximately $56 to $57 million. Total Core Revenue will increase by 17% to 19% to approximately $278 to $282 million.

* Political revenue will decrease by 95% to 96% to approximately $5 to $6 million.

* Retransmission consent revenue will increase by 17% to 18% to approximately $254 to $256 million.

* Total broadcasting revenue will decrease by 6% to 7% to approximately $549 to $557 million.

* Production company revenue will increase to approximately $18 to $19 million.

* Operating expenses (before depreciation, amortization and (gain) loss on disposal of assets, net):

* Broadcasting expenses will increase by 14% to 15%, to approximately $373 to $375 million. This increase primarily reflects an increase in retransmission expense by approximately $21 million. This increase also includes Transaction Related Expenses within a range of $2 to $3 million.

* Production company expenses will increase to approximately $12 to $13 million.

* Corporate and administrative expenses will be approximately $27 to $30 million. This increase primarily reflects an increase in Transaction Related Expenses within a range of $6 to $8 million.

On August 2, 2021, we completed the Quincy Transaction (and related divestitures under the Allen Transaction). We currently expect that the addition of Quincy will have the following incremental effects on our broadcasting revenue and broadcasting operating expenses (before depreciation, amortization and (gain) loss on disposal of assets, net), as outlined below:

* Third quarter of 2021:

* Broadcasting revenue, less agency commissions will increase by approximately $22 to $24 million.

* Broadcasting operating expenses expenses (before depreciation, amortization and (gain) loss on disposal of assets, net) will increase by approximately $14 to $15 million. Broadcasting revenue, less broadcasting operating expenses expenses (before depreciation, amortization and (gain) loss on disposal of assets, net) will increase by approximately $8 to $9 million.

* Fourth quarter of 2021:

* Broadcasting revenue, less agency commissions will increase by approximately $32 to $35 million.

* Broadcasting operating expenses (before depreciation, amortization and (gain) loss on disposal of assets, net) will increase by approximately $22 to $24 million. Broadcasting revenue, less broadcasting operating expenses (before depreciation, amortization and (gain) loss on disposal of assets, net) will increase by approximately $10 to $11 million.