BALTIMORE, May 6, 2020
/PRNewswire/ -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the
"Company" or "Sinclair," today reported financial results for the
three months ended March 31,
2020.
First Quarter Highlights
- Consolidated revenue increased 123% to $1,609 million as compared to first quarter 2019,
with gains driven in large part by the Company's acquisition of 21
Regional Sports Networks (RSNs) and Fox
College Sports in August 2019. Excluding the RSN
acquisition, media revenues increased by 17%, aided by an increase
in political advertising and higher retransmission revenues.
Consolidated Media Revenue was $31
million below the low end of guidance due in part to the
impact of the novel coronavirus (COVID-19) pandemic on certain
advertising revenues.
- Consolidated operating income increased 248% to $327 million.
- Consolidated adjusted EBITDA of $281
million increased 69% versus the first quarter of 2019 and
was $22M greater than the high end of
Company guidance, due in part to cost reduction efforts in the wake
of COVID-19.
- Ten million shares of common stock, 11% of the Company's
outstanding shares, were repurchased during the first quarter.
- Withdrawing all fiscal year 2020 previously-issued guidance due
to the COVID-19 pandemic impact and lack of visibility on
resumption of professional sports.
CEO Comment:
"These are unprecedented times with the COVID-19 pandemic
continuing to impact the economy, businesses and lifestyles in
extraordinary and uncommon ways," commented Chris Ripley, President and Chief Executive
Officer. "Despite these macro challenges, Sinclair was quick to
manage non-essential costs and provide for a smooth
'work-from-home' transition. We are confident that our
diversified revenue streams, content, and delivery platforms will
allow us to see our Company through the pandemic's effects and that
we will be able to meet our liquidity needs. Nonetheless, in
an abundance of caution, we have and continue to take steps to
manage our costs including deferring non-critical capital
expenditures, delaying non-essential hiring actions, and reducing
discretionary expenses until conditions improve."
Ripley continued, "Furthermore, we have a social responsibility
to help our communities and employees through these difficult
times. In addition to the numerous charitable fundraising
initiatives in which Sinclair outlets have participated in their
local markets, raising millions of dollars, we have also partnered
with the Salvation Army on 'Sinclair Cares: Your Neighbor Needs
You,' which to-date has raised over $750,000 for those financially impacted by
COVID-19. I am especially proud of our employees, who have
stepped up and positively impacted their communities during these
difficult times. We call them Sinclair Heroes and their
selfless acts of kindness have helped make a difficult time more
bearable for those in need. Ripley continued, "Among the
actions we have taken as a company to assist our employees include
expanding the use of sick leave for employees unable to work due to
child or dependent care issues, allowing eligible employees to cash
out vacation hours to assist with family hardships, and revamping
how we pay our commissioned employees at a time when advertising
revenues are impacted."
Ripley concluded, "We also want to thank the many employees in
our news, on-air operations and other essential departments who
continue to perform their duties on-site in order to ensure that
our outlets remain on the air and broadcasting entertainment and
critical local news information."
Recent Company Developments:
Content and Distribution:
- In March, the Company and YouTube TV reached agreement for the
carriage of 19 RSNs across the country.
- In March, the Company launched a new channel on STIRR, the
Company's fast-growing, free ad-supported streaming service. The
new channel is dedicated to COVID-19 coverage, including live feeds
of press conferences as well as other local and national news.
STIRR finished the quarter with strong momentum, setting all-time
highs across all key metrics with total impressions increasing 25%
over the fourth quarter of 2019.
Community
- In March and April, the Company partnered with the Salvation
Army on the "Sinclair Cares: Your Neighbor Needs You" initiative
which has raised over $750,000 for
those financially impacted by COVID-19. In addition, the Company
delivered over 2,200 protective masks to the Red Cross and donated
millions of dollars of air time to multiple parties for public
service announcements around the COVID-19 pandemic.
- In April, Sinclair entered into a new public service
initiative, in partnership with the University
of Maryland School of Medicine, to provide consumers with
important and timely news and information about COVID-19.
- In April, the Company's Nashville affiliate, WZTV FOX17, was named AP
Outstanding News Operation in the state of Tennessee. The station was awarded the honor
for its remarkable agility in chasing breaking news and
demonstrating a sustained commitment to public service.
- In April, the Company won four National Headliner Awards and,
for the second consecutive year, Sinclair's Project Baltimore
investigative reporting team received the Investigative Reporters
and Editors Inc. (IRE) recognition for exposing local education
issues that reflected governmental neglect and lack of
oversight.
ATSC 3.0:
- The Company expects to deploy ATSC 3.0 in approximately 12
Sinclair markets in 2020. The new platform allows for expanded
usage of the broadcast frequency on which a station is
transmitting, enabling more targeted and content-rich advertising
and programming to be delivered to the consumer as well as new
non-television data services.
Three Months Ended March 31,
2020 Consolidated Financial Results:
- Total revenues increased 123% to $1,609
million versus $722 million in
the prior year period. Media revenues increased 134% to
$1,574 million versus $673 million in the first quarter of 2019.
Political revenues were $42 million
in the first quarter versus $2
million in the first quarter of 2019. Distribution revenues
were $1,156 million versus
$352 million in the first quarter of
2019. Revenues from our digital businesses increased 38%, as
compared to the first quarter of 2019.
- Operating income was $327
million, including $20 million
of non-recurring costs for transaction fees, legal, litigation, and
regulatory ("Adjustments"), versus operating income of $94 million in the prior year period, which
included $2 million of Adjustments.
Operating income when excluding the Adjustments, increased to
$347 million from $96 million for the same prior-year period.
- Adjusted EBITDA, which excludes Adjustments, increased 69% to
$281 million from $166 million in the first quarter of 2019.
- Net income attributable to the Company was $123 million versus net income of $22 million in the prior year period.
- Diluted earnings per common share was $1.35 as compared to $0.23 in the prior year period. The impact of
Adjustments in the first quarter of 2020, on a diluted per-share
basis, was $(0.18) and the impact of
Adjustments in the first quarter of 2019 was $(0.02).
Consolidated and Segment Highlights
Segment financial information is included in the following
tables for the periods presented (in millions). The Local
News and Marketing Services segment consists primarily of broadcast
television stations, which the Company owns or to which the Company
provides services. The Sports segment consists primarily of
the RSNs, Marquee, and a 20% equity interest in the YES
Network. The Corporate/Other segment includes corporate,
original networks and content, including Tennis, non-broadcast
digital and internet solutions, technical services, and other
non-media investments.
For the three
months ended March 31, 2020
|
Local News
and Marketing
Services
|
|
Sports
|
|
Corporate,
Other &
Elimination
|
|
Consolidated
|
($ in
millions)
|
|
|
|
Revenue
Highlights:
|
|
|
|
|
|
|
|
Distribution
revenue
|
$
|
355
|
|
|
$
|
752
|
|
|
$
|
49
|
|
|
$
|
1,156
|
|
Advertising
revenue
|
310
|
|
|
55
|
|
|
35
|
|
|
400
|
|
Other media
revenue
|
36
|
|
(a)
|
5
|
|
|
(23)
|
|
(a)
|
18
|
|
Media
revenues
|
$
|
701
|
|
|
$
|
812
|
|
|
$
|
61
|
|
|
$
|
1,574
|
|
Non-media
revenue
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
Total
revenues
|
$
|
701
|
|
|
$
|
812
|
|
|
$
|
96
|
|
|
$
|
1,609
|
|
Expense
Highlights:
|
|
|
|
|
|
|
|
Media programming
& production expenses and
media selling, general and administrative expenses
|
456
|
|
|
535
|
|
(a)
|
47
|
|
(a)
|
1,038
|
|
Sports rights
amortization included in media
production expenses
|
—
|
|
|
391
|
|
|
—
|
|
|
391
|
|
Non-media
expenses
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
Corporate general and
administrative expenses
|
44
|
|
|
2
|
|
|
3
|
|
|
49
|
|
Other
Highlights:
|
|
|
|
|
|
|
|
Sports rights
payments
|
—
|
|
|
612
|
|
|
—
|
|
|
612
|
|
Program contract
payments
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
Capital
expenditures(b)
|
21
|
|
|
4
|
|
|
—
|
|
|
25
|
|
Interest expense
(net) (c)
|
1
|
|
|
111
|
|
|
52
|
|
|
164
|
|
Adjusted
EBITDA(d)
|
|
|
|
|
|
|
281
|
|
|
|
(a)
|
For the quarter ended
March 31, 2020 Local News and Marketing Services includes $24
million of revenue and the Sports segment includes $23 million of
selling, general, and administrative expenses for services provided
by the Local News and Marketing Services segment to the Sports and
Corporate/Other segments. Such amounts are eliminated in
consolidation.
|
(b)
|
Capital expenditures
exclude $21 million of repack capital expenditures expected to be
reimbursed in the future from the TV Broadcaster Relocation Fund
administered by the FCC.
|
(c)
|
Interest expense is
net of deferred finance costs, original issue discount
amortization, other non-cash interest expense, and interest
income.
|
(d)
|
"Adjusted EBITDA" is
defined as earnings before interest, tax, depreciation and
amortization, plus non-recurring transaction, legal, litigation and
regulatory costs, as well as certain non-cash items such as
stock-based compensation expense and sports rights amortization;
less sports rights payments and programming payments. Refer to the
reconciliation on the last page of this press release and the
Company's website.
|
For the three
months ended March 31, 2019
|
Local News
and Marketing
Services
|
|
Sports
|
|
Corporate
&
Other
|
|
Consolidated
|
($ in
millions)
|
|
|
|
Revenue
Highlights:
|
|
|
|
|
|
|
|
Distribution
revenue
|
$
|
320
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
352
|
|
Advertising
revenue
|
288
|
|
|
—
|
|
|
20
|
|
|
308
|
|
Other media
revenue
|
11
|
|
|
—
|
|
|
2
|
|
|
13
|
|
Media
revenues
|
$
|
619
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
673
|
|
Non-media
revenue
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
Total
revenues
|
$
|
619
|
|
|
$
|
—
|
|
|
$
|
103
|
|
|
$
|
722
|
|
Expense
Highlights:
|
|
|
|
|
|
|
|
Media programming
& production expenses and
media selling, general and administrative expenses
|
419
|
|
|
—
|
|
|
60
|
|
|
479
|
|
Non-media
expenses
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
Corporate general and
administrative expenses
|
26
|
|
|
—
|
|
|
2
|
|
|
28
|
|
Other
Highlights:
|
|
|
|
|
|
|
|
Program contract
payments
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
Capital
expenditures(a)
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
Interest expense
(net)(b)
|
1
|
|
|
—
|
|
|
47
|
|
|
48
|
|
Adjusted
EBITDA(c)
|
|
|
|
|
|
|
166
|
|
|
|
(a)
|
Capital expenditures
exclude $13 million of repack capital expenditures expected to be
reimbursed in the future from the TV Broadcaster Relocation Fund
administered by the FCC.
|
(b)
|
Interest expense is
net of deferred finance costs, original issue discount
amortization, other non-cash interest expense, and interest
income.
|
(c)
|
"Adjusted EBITDA" is
defined as earnings before interest, tax, depreciation and
amortization, plus non-recurring transaction, legal, litigation and
regulatory costs, as well as certain non-cash items such as
stock-based compensation expense and sports rights amortization;
less sports rights payments and programming payments. Refer to the
reconciliation on the last page of this press release and the
Company's website.
|
Consolidated Balance Sheet and Cash Flow Highlights:
- Total Company debt as of March 31,
2020, was $13,302 million,
which includes Diamond Sports Group (DSG) debt of $8,205 million.
- Cash, cash equivalents, and restricted cash for the
consolidated total Company as of March 31,
2020 was $1,342 million, which
includes $483 million held at
DSG.
- In March, the Company borrowed $873
million from its revolving credit facilities: $225 million in its Diamond Sports Group business
subsidiary and $648 million in its
STG subsidiary. The draw on the aforementioned credit facilities
was a precautionary measure to preserve the Company's financial
flexibility in light of the current uncertainty in the global
economy resulting from the COVID-19 pandemic. In April, the Company
repaid $423 million of the STG
revolving credit facility borrowing.
- In January 2020, the Company
redeemed 200,000 Preferred Units of Diamond Sports Holdings LLC, an
indirect subsidiary of Sinclair, for an aggregate redemption price
of $200 million, plus accrued and
unpaid dividends. To date, 500,000 Preferred Units have been
redeemed and 537,695 Preferred Units remain outstanding as of
March 31, 2020, which amount includes
12,695 Preferred Units issued as dividends paid in-kind in the
first quarter of 2020.
- As of March 31, 2020, 58.4
million Class A common shares and 24.7 million Class B common
shares were outstanding, for a total of 83.1 million common shares.
Ten million shares were repurchased in the first quarter and
another approximate 3 million shares repurchased in the second
quarter-to-date.
- In March 2020, the Company paid a
$0.20 per share quarterly cash
dividend to its shareholders.
- Routine capital expenditures in the first quarter of 2020 were
$25 million with another $21 million related to the spectrum repack.
- Program contract payments in the Local News and Marketing
Services segment were $23 million in
the first quarter of 2020.
- In the Sports segment, media production expense included
$391 million of sports rights
amortization while sports rights payments in the quarter were
$612 million.
Notes:
Certain reclassifications have been made to prior years'
financial information to conform to the presentation in the current
year.
Outlook:
The Company currently expects to achieve the following results
for the three months ending June 30, 2020. The outlook
includes the acquisition of RSNs and Fox
College Sports (August 23,
2019), the 20% ownership investment in the YES Network
(August 29, 2019), an increased
investment in Stadium which is now consolidated (December 2, 2019), the launch of the Marquee RSN
(February 22, 2020), and the
divestiture of the non-license assets in Harlingen, TX (January
27, 2020).
In light of the rapidly evolving and uncertain impact of the
COVID-19 pandemic on the economic environment, the Company has
determined to withdraw its fiscal year 2020 previously-issued
guidance. The Company is closely monitoring the impact of the
COVID-19 pandemic on all aspects of its business, including how it
has and will continue to impact its advertisers, distributors, and
professional sports leagues. While the Company did not incur
significant disruptions from the COVID-19 pandemic during the three
months ended March 31, 2020, the
Company expects the effect of the COVID-19 pandemic to intensify
during the three months period ended June
30, 2020. The Company is currently unable to predict the
extent of the impact that the COVID-19 pandemic will have on its
financial condition, results of operations and cash flows in future
periods due to numerous uncertainties. For additional discussion of
how the COVID-19 pandemic has impacted the Company's business,
please see the section titled The Impact of COVID-19 on our Results
of Operations in the Company's Quarterly Report on Form 10-Q for
the quarter ended March 31, 2020.
For the three
months ending June 30,
2020 ($ in millions)
|
Local News and
Marketing
Services
|
|
Sports
|
|
Corporate and
Other and
Elimination
|
|
Consolidated
|
Revenue
Highlights:
|
|
|
|
|
|
|
|
Core advertising
revenue
|
|
|
|
|
|
|
$209 to
232
|
Political
revenue
|
|
|
|
|
|
|
15 to 20
|
Advertising
revenue
|
$193 to
220
|
|
$4 to 5
|
|
$27
|
|
$224 to
252
|
Distribution
revenue
|
346 to 349
|
|
740 to 751
|
|
50
|
|
1,136 to
1,150
|
Other media
revenue
|
37
|
(a)
|
4
|
|
(22)
|
(a)
|
19
|
Media
revenues
|
576 to 606
|
|
748 to 760
|
|
55
|
|
1,379 to
1,421
|
Non-media
revenue
|
—
|
|
—
|
|
19
|
|
19
|
Total
revenues
|
$576 to
606
|
|
$748 to
760
|
|
$74
|
|
$1,398 to
1,440
|
|
|
|
|
|
|
|
|
Expense
Highlights:
|
|
|
|
|
—
|
|
|
Media programming
& production expenses
and media selling, general and
administrative expenses
|
$437 to
441
|
|
$102
|
(a)
|
$41
|
(a)
|
$580 to
584
|
Sports rights
amortization included in
media production expenses
|
—
|
|
2
|
(b)
|
—
|
|
2
|
Non-media
expenses
|
—
|
|
—
|
|
24
|
|
24
|
Corporate
overhead
|
|
|
|
|
|
|
34
|
Stock-based
compensation and non-
recurring costs for transaction, legal,
litigation and regulatory fees included in
corporate and media expenses above
|
|
|
|
|
|
|
21
|
Depreciation,
intangible & programming
amortization
|
|
|
|
|
|
|
195
|
|
|
|
|
|
|
|
|
Other
Highlights:
|
|
|
|
|
|
|
|
Sports rights
payments
|
—
|
|
$462
|
|
—
|
|
$462
|
Program contract
payments
|
23
|
|
—
|
|
—
|
|
23
|
Interest expense
(net)(c)
|
|
|
|
|
|
|
150
|
Income tax
provision
|
|
|
|
|
|
|
Approximately 1%
effective tax rate
|
Net cash tax
refund
|
|
|
|
|
|
|
Approximately $5
million
|
Payments to
noncontrolling interest holders,
including preferred dividend (d)
|
|
|
|
|
|
|
8
|
Total capital
expenditures, including repack
|
|
|
|
|
|
|
45 to 50
|
Repack capital
expenditures
|
|
|
|
|
|
|
24
|
Adjusted
EBITDA(e)
|
|
|
$190 to
202
|
|
|
|
$297 to
335
|
|
|
(a)
|
The Local News and
Marketing Services and the Sports segments include $25 million of
revenue and selling, general, and administrative expenses,
respectively, for services provided by the Local News and Marketing
Services segment to the Sports segment. Such amounts are
eliminated in the Consolidated column.
|
(b)
|
It is anticipated
that professional live team sports will not commence during the
three months ended June 30, 2020. Therefore, sports rights
amortization expense will be minimal.
|
(c)
|
Interest expense is
net of deferred finance costs, original issue discount
amortization, other non-cash interest expense, and interest
income.
|
(d)
|
Preferred dividend
was paid in-kind in the quarter ending March 31, 2020 and is
expected to be paid in-kind in the quarter ending June 30,
2020.
|
(e)
|
"Adjusted EBITDA" is
defined as earnings before interest, tax, depreciation and
amortization, plus non-recurring transaction, legal, litigation and
regulatory costs, as well as certain non-cash items such as
stock-based compensation expense and sports rights amortization;
less sports rights payments and programming payments. Refer to the
reconciliation on the last page of this release and the Company's
website.
|
Sinclair Conference Call:
The senior management of Sinclair will hold a conference call to
discuss its first quarter 2020 results on Wednesday, May 6,
2020, at 9:00 a.m. ET. The call
will be webcast live and can be accessed at www.sbgi.net under
"Investors/ Webcasts." After the call, an audio replay will
remain available at www.sbgi.net. The press and the public
will be welcome on the call in a listen-only mode. The
dial-in number is (877) 407-8033.
About Sinclair:
Sinclair is a diversified media company and leading provider of
local sports and news. The Company owns and/or operates 23 regional
sports network brands; owns, operates and/or provides services to
191 television stations in 89 markets; is a leading local news
provider in the country; owns multiple national networks; and has
TV stations affiliated with all the major broadcast networks.
Sinclair's content is delivered via multiple-platforms, including
over-the-air, multi-channel video program distributors, and digital
platforms. The Company regularly uses its website as a key source
of Company information which can be accessed at www.sbgi.net.
Sinclair Broadcast
Group, Inc. and Subsidiaries Preliminary Unaudited
Consolidated Statements of Operations (In millions,
except share and per share data)
|
|
|
Three Months
Ended
March 31,
|
|
2020
|
|
2019
|
REVENUES:
|
|
|
|
Media
revenues
|
$
|
1,574
|
|
|
$
|
673
|
|
Non-media
revenues
|
35
|
|
|
49
|
|
Total
revenues
|
1,609
|
|
|
722
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
Media programming and
production expenses
|
828
|
|
|
319
|
|
Media selling,
general and administrative expenses
|
210
|
|
|
160
|
|
Amortization of
program contract costs and net realizable value
adjustments
|
23
|
|
|
24
|
|
Non-media
expenses
|
30
|
|
|
39
|
|
Depreciation of
property and equipment
|
24
|
|
|
23
|
|
Corporate general and
administrative expenses
|
49
|
|
|
28
|
|
Amortization of
definite-lived intangible and other assets
|
150
|
|
|
43
|
|
Gain on asset
dispositions and other, net of impairment
|
(32)
|
|
|
(8)
|
|
Total operating
expenses
|
1,282
|
|
|
628
|
|
Operating
income
|
327
|
|
|
94
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
Interest expense and
amortization of debt discount and deferred financing
costs
|
(180)
|
|
|
(54)
|
|
Gain from
extinguishment of debt
|
2
|
|
|
—
|
|
Loss from equity
method investments
|
(6)
|
|
|
(14)
|
|
Other (expense)
income, net
|
(4)
|
|
|
2
|
|
Total other expense,
net
|
(188)
|
|
|
(66)
|
|
Income before income
tax
|
139
|
|
|
28
|
|
INCOME TAX BENEFIT
(PROVISION)
|
12
|
|
|
(5)
|
|
NET INCOME
|
151
|
|
|
23
|
|
Net income
attributable to the redeemable noncontrolling interests
|
(20)
|
|
|
—
|
|
Net income
attributable to the noncontrolling interests
|
(8)
|
|
|
(1)
|
|
NET INCOME
ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP
|
$
|
123
|
|
|
$
|
22
|
|
EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:
|
|
|
|
Basic earnings per
share
|
$
|
1.36
|
|
|
$
|
0.23
|
|
Diluted earnings per
share
|
$
|
1.35
|
|
|
$
|
0.23
|
|
Weighted average
common shares outstanding (in thousands)
|
90,609
|
|
|
92,302
|
|
Weighted average
common and common equivalent shares outstanding (in
thousands)
|
91,226
|
|
|
93,218
|
|
The Company considers EBITDA to be an indicator of the operating
performance of its assets. The Company also believes that EBITDA is
frequently used by industry analysts, investors and lenders as a
measure of valuation. In addition, EBITDA is the basis for
calculating Adjusted EBITDA under the Company's Bank Credit
Agreement (BCA), which is used in computing the Company's ability
to borrow under the BCA.
These measures are not formulated in accordance with GAAP, are
not meant to replace GAAP financial measures and may differ from
other companies' uses or formulations. The Company does not provide
reconciliations on a forward-looking basis. Further
discussions and reconciliations of the Company's non-GAAP financial
measures to comparable GAAP financial measures can be found on its
website www.SBGI.net.
Sinclair Broadcast
Group, Inc. and Subsidiaries Reconciliation of Non-GAAP
Measurements - Unaudited All periods reclassified to
conform with current year GAAP presentation (in
millions)
|
|
|
Three Months
Ended
March 31,
|
|
2020
|
|
2019
|
EBITDA
|
|
|
|
Net income (loss) attributable to Sinclair Broadcast
Group
|
$
|
123
|
|
|
$
|
22
|
|
Add: Inc (loss) from redeemable noncontrolling
interests
|
20
|
|
|
—
|
|
Add: Inc (loss) from noncontrolling
interests
|
8
|
|
|
1
|
|
Add: Provision (benefit) for income taxes
|
(12)
|
|
|
5
|
|
Add: Other expenses (income)
|
5
|
|
|
2
|
|
Add: Loss (income) from equity method
investments
|
6
|
|
|
14
|
|
Add: Loss (income) from other investments and
impairments
|
2
|
|
|
1
|
|
Add: Loss (gain) from extinguishment of debt/insurance
proceeds
|
(3)
|
|
|
—
|
|
Add: Interest expense
|
180
|
|
|
54
|
|
Less: Interest income
|
(2)
|
|
|
(6)
|
|
Less: Gain on sale of
assets
|
(32)
|
|
|
(8)
|
|
Add: Amortization of intangible assets & other
assets
|
150
|
|
|
43
|
|
Add: Depreciation of property &
equipment
|
24
|
|
|
23
|
|
Add: Total stock-based compensation
|
13
|
|
|
13
|
|
Add: Amortization of program contract costs
|
23
|
|
|
24
|
|
Less: Cash film payments
|
(23)
|
|
|
(24)
|
|
Add: Amortization of sports programming
rights
|
391
|
|
|
—
|
|
Less: Cash sports programming rights payments
|
(612)
|
|
|
—
|
|
EBITDA
|
$
|
261
|
|
|
$
|
164
|
|
Adjustment for
transaction, legal and other one-time expense
|
20
|
|
|
2
|
|
Adjusted
EBITDA
|
$
|
281
|
|
|
$
|
166
|
|
Forward-Looking Statements:
The matters discussed in this news release, particularly those
in the section labeled "Outlook," include forward-looking
statements regarding, among other things, future operating results.
When used in this news release, the words "outlook," "intends to,"
"believes," "anticipates," "expects," "achieves," "estimates," and
similar expressions are intended to identify forward-looking
statements. Such statements are subject to a number of risks and
uncertainties. Actual results in the future could differ materially
and adversely from those described in the forward-looking
statements as a result of various important factors, including and
in addition to the assumptions set forth therein, but not limited
to, the potential impacts of the COVID-19 pandemic on our business
operations, financial results and financial position and on the
world economy, the impact of changes in national and regional
economies, our ability to generate cash to service our substantial
indebtedness, the completion of the FCC spectrum repack, successful
execution of outsourcing agreements, pricing and demand
fluctuations in local and national advertising, volatility in
programming costs, the market acceptance of new programming, the
successful execution of retransmission consent agreements, the
successful execution of network and MVPD affiliation agreements,
the successful execution of media rights agreements with
professional sports teams, the impact of OTT and other emerging
technologies and their potential impact on cord-cutting, the impact
of MVPDs, vMVPDs, and OTT distributors offering "skinny"
programming bundles that may not include all programming of our
networks, our ability to identify and consummate acquisitions and
investments and to achieve anticipated returns on those investments
once consummated, the impact of pending and future litigation
claims against the Company, the impact of FCC and other regulatory
proceedings against the Company, uncertainties associated with
potential changes in the regulatory environment affecting our
business and growth strategy, and any risk factors set forth in the
Company's recent reports on Form 10-Q and/or Form 10-K, as filed
with the Securities and Exchange Commission. There can be no
assurances that the assumptions and other factors referred to in
this release will occur. The Company undertakes no obligation to
publicly release the result of any revisions to these
forward-looking statements except as required by law.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/sinclair-reports-first-quarter-2020-financial-results-301053838.html
SOURCE Sinclair Broadcast Group, Inc.