Q2:16 HIGHLIGHTS

• Total revenue for the three months ended June 30, 2016 was $196.6, the highest for any quarter in GTN’s history and a 37% increase from the second quarter of 2015. The record-setting performance resulted in basic net income per share of $0.25. On a Combined Historical Basis, to reflect organic growth by adjusting for the effects of acquisitions, revenue increased 8%.
• A result of prudent cost controls, broadcast operating expenses, on a Combined Historical Basis, were unchanged in the second quarter of 2016, when compared to the second quarter of 2015.
• Net income was $17.7 million for the second quarter of 2016, the highest for any second quarter in GTN’s history and a 46% increase from the second quarter of 2015. On a Combined Historical Basis, net income increased 6%.
• Reported results in total revenue, political revenue and corporate expenses met management’s 2Q16 guidance above the midpoint at each range and broadcast expenses finished about $4 million below the low end of management guidance.
• The Summer Olympic Games and the Presidential elections in 2016 will continue to have positive influence on revenues. GTN is able to capture a large part of local ad spending and political advertising dollars in their respective markets. Senate and House seats will be in contention and GTN has a well positioned portfolio of market leading stations in almost every one of the significant battleground states.
• We forecast EPS of $1.34 in 2016. We continue to maintain a BUY rating and a price target of $22.00.