Gray Television : Q2 22 Financial Highlights ▶

NEWS RELEASE

Gray Television Delivers Solid Second Quarter Operating Results

Atlanta, Georgia -August5, 2022. . . Gray Television, Inc. ("Gray," "we," "us" or "our") (NYSE: GTN) today announced its strong financial results for the second quarter ended June 30, 2022, including a 231% increase in net income attributable to common stockholders, compared to the second quarter of 2021. Overall, the second quarter of 2022 produced record results, including $868 million in total revenue, due to the combination of recent acquisitions, added scale, increasingly efficient integrated operations, and the "on-year" of the two-year political advertising cycle. We anticipate continued strong financial results for the remainder of the year, especially political advertising revenue. Based on our current forecasts, we now anticipate that our political advertising revenue for calendar year 2022 will match the $652 million of political advertising revenue that our current portfolio of stations recorded in 2020, a presidential election year.

Gray's strong cash flow in the second quarter of 2022 enabled us to return $125 million of capital to our shareholders during the second quarter by, paying down $54 million of outstanding debt; repurchasing $50 million of our common stock in the open market; and paying $21 million of cash dividends to our preferred and common shareholders. Even after these actions, Gray ended the quarter with $162 million of cash on hand. Strong operating results and political advertising revenue are expected to enable Gray to fund additional de-leveraging and cash dividend payments during the remainder of the year.

Due to the significant effect that material transactions have had on our results of our operations, we present the financial information herein consistent with both U.S. Generally Accepted Accounting Principles ("GAAP" or "As Reported Basis") and on a Combined Historical Basis ("CHB"), which incorporates certain historical results of acquired businesses, less the historical results of divested businesses. We also furnish certain other detailed non- GAAP metrics to provide more meaningful period-over-period comparisons to assist the public in its analysis and valuation of the Company. This additional information includes a summary of incremental expenses that were specific to our acquisitions, divestitures, and related financing activities ("Transaction Related Expenses"), non- cash stock-based compensation expenses and certain non-GAAP terms common in our industry. Please refer to the detailed discussion of the foregoing terms and concepts included elsewhere herein.

Summary of Second Quarter Operating Results

As Reported Basis(the respective 2021 periods reflect the "off-year" of the two-year political advertising cycle):

• Total revenue was $868 million, an increase of 59% from the second quarter of 2021.
• Net income attributable to common stockholders was $86 million, or $0.91 per fully diluted share, an increase of 231% from the second quarter of 2021.
• Broadcast Cash Flow was $327 million, an increase of 79% from the second quarter of 2021.
• Adjusted EBITDA was $309 million, an increase of 82% from the second quarter of 2021.

Combined Historical Basis(the respective 2021 periods reflect the "off-year" of the two year political advertising cycle):

• Revenue was $868 million, an increase of 15% from the second quarter of 2021.
• Core Advertising Revenue decreased less than 1% from the second quarter of 2021.
• Broadcast Cash Flow was $330 million, an increase of 25% from the second quarter of 2021.

Other Key Metrics

• As of June 30, 2022, our Total Leverage Ratio, Net of all Cash, was 5.16 times on a trailing eight-quarter basis, netting our total cash balance of $162 million and giving effect to all Transaction Related Expenses, which is calculated as set forth in our Senior Credit Facility.

4370 Peachtree Road, NE, Atlanta, GA 30319 | P 404.504.9828 F 404.261.9607 | www.gray.tv

• During the three and six-months ended June 30, 2022 and 2021, we incurred Transaction Related Expenses on an As Reported Basis that included but were not limited to legal and professional fees, severance and incentive compensation and contract termination fees. In addition, we recorded certain non-cashstock-based compensation expenses. These expenses are summarized as follows:

	Three Months Ended			Six Months Ended
	June 30,				June 30,
	2022					2021				2022				2021
						(in millions)
Transaction Related Expenses:
Broadcasting	$	2	$	-	$	4	$	-
Corporate and administrative		-				7				1				8
Miscellaneous expense, net		-				7				-				7
Total Transaction Related Expenses	$	2		$	14		$	5		$	15
Total non-cashstock-based compensation	$	6	$	4	$	11	$	7

Taxes

• During the six-months ended June 30, 2022 and 2021, we made income tax payments of $119 million and $38 million, respectively. During the remainder of 2022, based on our current forecasts, we anticipate making income tax payments (net of our expected $21 million refund) within a range of $70 million to $90 million.
• As of June 30, 2022, we have an aggregate of $337 million of various state operating loss carryforwards, of which we expect that approximately half will be utilized.

FOX Network Affiliation Agreement Renewal

On August 4, 2022, we renewed the network affiliations for all of our FOX affiliated television stations across 27 markets, including Portland, Oregon; Cincinnati, Ohio; Greenville-Spartanburg, South Carolina; West Palm Beach, Florida; Las Vegas, Nevada; Birmingham, Alabama; and New Orleans, Louisiana.

Guidance for the Three-Months Ending September 30, 2022

Based on our current forecasts for the quarter ending September 30, 2022, we anticipate the following key financial results, as outlined below in approximate ranges. We present revenue net of agency commissions. We exclude depreciation, amortization and gain/loss on disposal of assets from our estimates of operating expenses.

• Revenue:

• 1. Core advertising revenue of $345 million to $355 million.
  1. Retransmission revenue of $365 million to $370 million.
  1. Political revenue of $193 million to $195 million.
  1. Production company revenue of $20 million to $21 million.
  1. Total revenue of $940 million to $959 million.
• Operating Expenses:
• 1. Broadcasting expenses of $545 million to $550 million, including retransmission expense of approximately $225 million and transaction related expenses of approximately $1 million and non-

cash stock-based compensation expense of approximately $1 million.

1. Production company expenses of approximately $17 million.

1. Corporate expenses of $30 million to $35 million, including transaction related expenses of approximately $1 million and non-cashstock-based compensation expense of approximately $5 million.

Gray Television, Inc.
Earnings Release for the three and six-month periods ended June 30, 2022	Page 2 of 19

Selected Operating Data on As Reported Basis (Unaudited)

								Three Months Ended June 30,
															% Change					% Change
															2022 to					2022 to
			2022					2021			2021				2020			2020
Revenue (less agency commissions):								(dollars in millions)
Broadcasting	$	855	$	537	59 %			$	449		90 %
Production companies		13					10	30 %				2		550 %
Total revenue	$	868				$	547					59 %			$	451		92 %
Political advertising revenue	$	90	$	6	1400 %			$	21		329 %
Operating expenses (1):
Broadcasting	$	528	$	354	49 %			$	324		63 %
Production companies	$	14	$	9	56 %			$	5		180 %
Corporate and administrative	$	25	$	25	0 %			$	17		47 %
Net income	$	99	$	39	154 %			$	11		800 %
Non-GAAP cash flow (2):
Broadcast Cash Flow	$	327	$	183	79 %			$	123		166 %
Broadcast Cash Flow Less
Cash Corporate Expenses	$	306	$	161	90 %			$	108		183 %
Free Cash Flow	$	38	$	34	12 %			$	35		9 %
								Six Months Ended June 30,
															% Change					% Change
															2022 to					2022 to
			2022					2021			2021				2020			2020
Revenue (less agency commissions):								(dollars in millions)
Broadcasting	$	1,659	$	1,067	55 %			$	964		72 %
Production companies		36					24	50 %				21		71 %
Total revenue		$	1,695		$	1,091			55 %			$	985		72 %
Political advertising revenue	$	116	$	15	673 %			$	57		104 %
Operating expenses (1):
Broadcasting	$	1,058	$	715	48 %			$	659		61 %
Production companies	$	40	$	26	54 %			$	24		67 %
Corporate and administrative	$	53	$	43	23 %			$	32		66 %
Net income	$	161	$	78	106 %			$	64		152 %
Non-GAAP cash flow (2):
Broadcast Cash Flow	$	598	$	351	70 %			$	304		97 %
Broadcast Cash Flow Less
Cash Corporate Expenses	$	554	$	314	76 %			$	276		101 %
Free Cash Flow	$	177	$	112	58 %			$	120		48 %

1. Excludes depreciation, amortization and gain on disposal of assets.
2. See definition of non-GAAP terms and a reconciliation of the non-GAAP amounts to net income included elsewhere herein.

Gray Television, Inc.
Earnings Release for the three and six-month periods ended June 30, 2022	Page 3 of 19

Selected Operating Data on As Reported Basis (Unaudited)

								Three Months Ended June 30,
				2022							2021							Amount				Percent
								Percent											Percent						Increase				Increase
			Amount			of Total				Amount			of Total					(Decrease)				(Decrease)
														(dollars in millions)
Revenue (less agency commissions):
Core advertising	$	366				42%			$	279					51%	$	87	31 %
Political				90				10%						6					1%							84	1400 %
Retransmission consent				382				44%						242					44%							140	58 %
Production companies				13				1%						10					2%							3	30 %
Other				17				3%						10					2%							7	70 %
Total		$	868				100%				$	547					100%				$	321	59 %
Operating expenses (before
depreciation, amortization and
gain on disposal of assets):
Broadcasting:
Station expenses	$	300				57%		$	209					59%	$	91	44 %
Retransmission expense				225				43%					144					41%							81	56 %
Transaction Related Expenses				2				0%					-					0%							2	100 %
Non-cashstock-based compensation				1				0%					1					0%							-	0 %
Total broadcasting expense												$	354					100%				$	174		49 %
	$	528				100%
Production companies expense	$	14							$	9						$	5	56 %
Corporate and administrative:
Corporate expenses	$	20				80%		$	15					60%	$	5	33 %
Transaction Related Expenses				-				0%					7					28%							(7)	(100)%
Non-cashstock-based compensation				5				20%					3					12%							2	67 %
Total corporate and
administrative expense		$	25				100%			$	25					100%			$	-		0 %

Gray Television, Inc.
Earnings Release for the three and six-month periods ended June 30, 2022	Page 4 of 19

Selected Operating Data on As Reported Basis (Unaudited)

									Six Months Ended June 30,
			2022						2021					Amount	Percent
								Percent										Percent				Increase	Increase
		Amount			of Total				Amount			of Total			(Decrease)	(Decrease)
													(dollars in millions)
Revenue (less agency commissions):
Core advertising	$	731					43%	$	539					49%			$	192		36 %
Political			116					7%					15					1%					101		673 %
Retransmission consent			775					46%					489					45%					286		58 %
Production companies			36					2%					24					2%					12		50 %
Other			37					2%					24					3%					13		54 %
Total	$	1,695					100%			$	1,091					100%			$	604		55 %
Operating expenses (before
depreciation, amortization and
gain on disposal of assets):
Broadcasting:
Station expenses	$	600					57%	$	425					60%			$	175		41 %
Retransmission expense			452					43%					289					40%					163		56 %
Transaction Related Expenses			4					0%					-					0%					4		100 %
Non-cashstock-based compensation			2					0%					1					0%					1		100 %
Total broadcasting expense		$	1,058					100%				$	715					100%				$	343		48 %
Production companies expense	$	40						$	26								$	14		54 %
Corporate and administrative:
Corporate expenses	$	43					81%	$	29					67%			$	14		48 %
Transaction Related Expenses			1					2%					8					19%					(7)		(88)%
Non-cashstock-based compensation			9					17%					6					14%					3		50 %
Total corporate and
administrative expense		$	53					100%			$	43					100%				$	10		23 %

Gray Television, Inc.
Earnings Release for the three and six-month periods ended June 30, 2022	Page 5 of 19