Gray Television (GTN)
Q4 2010 Earnings Call
March 01, 2011 11:00 am ET
Robert Prather - President, Chief Operating Officer, Director and Member of Executive Committee
Hilton Howell - Vice Chairman, Chief Executive Officer and Member of Executive Committee
James Ryan - Chief Financial Officer and Senior Vice President
Michael McCaffrey - Shankman Capital
Charles Abry - Oppenheimer
Aaron Watts - Deutsche Bank
Marci Ryvicker - Wells Fargo Securities, LLC
Bishop Cheen - Wachovia
Good day, everyone, welcome to the Gray Television’s Fourth Quarter 2010 and Year-to-Date Earnings Release Conference Call. [Operator Instructions] For opening remarks and introductions, I'd like to turn the call over to Mr. Hilton Howell, CEO and Vice Chairman of Gray Television Inc. Please go ahead, sir.
Thank you very much, operator, and good morning, everyone. Thank you for joining us to review Gray's 2010 fourth quarter and year-to-date results. Quite simply, it was a blowout quarter, a quarter for the record books. Revenues for the fourth quarter increased 48% to a new record for Gray of $114.6 million. Revenues for the year grew by 28%, also a new record for Gray of $346.5 million. These increases in revenue, coupled with excellent expense control, resulted a net income of $21.9 million for the quarter or $0.35 per share and net income of $23.2 million for the year or $0.16 per share. These outstanding results allowed us to pay down $50.2 million of our debt by year-end.
Obviously, this political season was very good for Gray Television because we hit an all-time record in political advertising even eclipsing prior presidential election cycles at $57.6 million. We believe that these results portend extremely well for Gray in the next political cycle of 2012. It is widely reported that President Obama will likely raise and spend over $1 billion on his re-election campaign. And with the Republican victories of 2010, we anticipate that whoever the Republican challenger may be, he or she will be able to match the president's fund-raising prowess.