Gray Expects to Exceed "High Point" of Q2 Revenue Guidance by Over 9%

Gray Expects to Exceed "High Point" of Q2 Revenue Guidance by Over 9%

Announces Summary Preliminary Operating Results For the Three Month and Six Month Periods Ended June 30, 2012

ATLANTA, July 12, 2012 /PRNewswire/ -- Gray Television, Inc. ("Gray," "we," "us" or "our") (NYSE: GTN and GTN.A) today announced summary preliminary results of operations for the three month and six month periods ended June 30, 2012 ("second quarter of 2012" and "first half of 2012", respectively).

Summary Preliminary Operating Results for the Second Quarter of 2012

The table below sets forth certain preliminary results of our operations for the second quarter of 2012 in comparison to our actual results of operations for the three month period ended June 30, 2011 (the "second quarter of 2011") and to the high end of the guidance for the second quarter of 2012 that we issued on May 2, 2012:


Three Months Ended June 30,
---------------------------
2012 % Change % Change
Selected operating
data: Preliminary 2011 From High End of From High End of
Actual 2011 May 2, 2012 Guidance May 2, 2012 Guidance
Actual
--- ------
(in thousands except for percentages)
OPERATING REVENUE: $94,691 $76,201 24% $86,500
Revenue (less
agency
commissions) 9%


OPERATING
EXPENSES: $52,829 $47,930 10% $52,500 1%
(before
depreciation,
amortization and
gain or loss on
disposal of
assets)
Broadcast
Corporate $3,629 $3,402 7% $4,000 (9%)

Other selected
data: $13,138 $2,316 467% $5,500 139%
Political
advertising
revenue (less
agency
commissions)


Based on our preliminary operating results for the second quarter of 2012:

Net Revenue.


-- We attribute the increase in political net revenue primarily to
political advertising associated with the special gubernatorial election
in Wisconsin; a state where we operate three television stations.
-- We currently believe our second quarter of 2012 local revenue, excluding
political advertising revenue, has increased from the three months ended
June 30, 2011 by approximately 1% in comparison to our previous
expectation of an increase of approximately 3% to 4%.
-- We currently believe our second quarter of 2012 national revenue,
excluding political advertising revenue, has increased from the second
quarter of 2011 by approximately 7% in comparison to our previous
expectation of an increase of approximately 10%.
-- The slight downward revision to our expectations of second quarter 2012
local and national revenue, excluding political advertising revenue,
reflects, in part, the significant demand from political advertisers
placed upon our available commercial advertising inventory.
-- We anticipate our second quarter of 2012 internet revenue, excluding
political advertising revenue, has increased from the second quarter of
2011 by approximately 31% in comparison to our previous expectation of
an increase of approximately 22%.
-- We anticipate our second quarter of 2012 retransmission consent revenue
has increased from the second quarter of 2011 by approximately 64% to
approximately $8.3 million reflecting the impact of the improved terms
of the retransmission consent agreements that were renewed effective as
of January 1, 2012.
-- We continue to estimate that our base consulting revenue will be $0.6
million for the second quarter of 2012.
Broadcast Operating Expense (before depreciation, amortization and gain or loss on disposal of assets).


-- The anticipated increase in broadcast operating expense for the second
quarter of 2012 compared to the second quarter of 2011 is due primarily
to anticipated increases in compensation expense (including certain
incentive compensation), programming expense and sales commissions to
national sales representatives for the previously mentioned increase in
certain political advertising.
Corporate and Administrative Expense (before depreciation, amortization and gain or loss on disposal of assets).


-- The anticipated increase in corporate expense for the second quarter of
2012 compared to the second quarter of 2011 is due primarily to expected
increases in compensation expense.
Summary Preliminary Operating Results for the First Half of 2012

The table below sets forth certain preliminary results of our operations for the first half of 2012 in comparison to our actual results of operations for the six month period ended June 30, 2011 ("the first half of 2011").


Six Months Ended June 30,
-------------------------
% Change
2012 2011 From
Preliminary Actual 2011
Selected operating data: Actual
------------------------ ------
(in thousands except for percentages)

OPERATING REVENUE: $175,365
Revenue (less agency commissions) $145,943 20%


OPERATING EXPENSES:
(before depreciation, amortization
and gain or loss on disposal of
assets) $103,601 $96,109 8%
Broadcast
Corporate $6,735 $6,440 5%

Other selected data:
Political advertising revenue (less
agency commissions) $18,097 $3,697 390%
Comments on Summary Preliminary Operating Results for the First Half of 2012:

Based on our preliminary operating results for the first half of 2012:

Net Revenue.


-- We attribute the increase in political net revenue primarily to
political advertising associated with the special gubernatorial election
in Wisconsin; a state where we operate three television stations.
-- We currently believe our first half of 2012 local revenue, excluding
political advertising revenue, has increased from the first half of 2011
by approximately 3%.
-- We currently believe our first half of 2012 national revenue, excluding
political advertising revenue, has increased from the first half of 2011
by approximately 3%.
-- We anticipate our first half of 2012 internet revenue, excluding
political advertising revenue, has increased from the first half of 2011
by approximately 32%.
-- We anticipate our first half of 2012 retransmission consent revenue has
increased from the first half of 2011 by approximately 66% to
approximately $16.8 million reflecting the impact of the improved terms
of the retransmission consent agreements that were renewed effective as
of January 1, 2012.
-- We continue to estimate that our base consulting revenue will be $1.3
million for the first half of 2012.
Continued - Comments on Summary Preliminary Operating Results for the First Half of 2012

Broadcast Operating Expense (before depreciation, amortization and gain or loss on disposal of assets).


-- The anticipated increase in broadcast operating expense for the first
half of 2012 compared to the first half of 2011 is due primarily to
anticipated increases in compensation expense (including certain
incentive compensation), programming expense and sales commissions to
national sales representatives for the previously mentioned increase in
certain political advertising.
Corporate and Administrative Expense (before depreciation, amortization and gain or loss on disposal of assets).


-- The anticipated increase in corporate expense for the first half of 2012
compared to the first half of 2011 is due primarily to expected
increases in compensation expense.


The Company

Gray Television, Inc. is a television broadcast company headquartered in Atlanta, GA. Gray currently operates 36 television stations serving 30 markets. We broadcast a primary channel from each of our stations and also operate at least one secondary channel from the majority of our stations. Each of our primary channels are affiliated with either CBS (17 channels), NBC (10 channels), ABC (8 channels) or FOX (1 channel). In addition, we currently operate 40 digital second channels that are affiliated with either ABC (1 channel), FOX (4 channels), CW (8 channels), MyNetworkTV (18 channels), Untamed Sports Network (1 channel) and The Country Network (1 channel) or are operated as local news/weather channels (7 channels).

Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act

This press release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. These "forward-looking statements" are not statements of historical facts, and may include, among other things, statements regarding our current expectations and beliefs of actual operating results for the second quarter and/or first half of 2012. Actual results are subject to a number of risks and uncertainties and may differ materially from the current expectations and beliefs discussed in this press release. All information set forth in this release is as of July 12, 2012. Information about certain potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our Annual Report on Form 10-K for the year ended December 31, 2011 and may be contained in reports subsequently filed with the U.S. Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov.

SOURCE Gray Television, Inc.

Gray Television, Inc.

CONTACT: Bob Prather, President and Chief Operating Officer, +1-404-266-8333, or Jim Ryan, Senior V.P. and Chief Financial Officer, +1-404-504-9828

Web Site: http://www.gray.tv


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