Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the "Company" or
"Sinclair," today reported financial results for the three and six
months ended June 30, 2021.
Second Quarter
Highlights
- Consolidated total revenue increased 26% to $1,612 million as
compared to the second quarter of 2020.
- Consolidated operating loss of $178 million, including $35
million of non-recurring costs for transaction and transition
services, COVID, legal, and regulatory costs ("Adjustments")
decreased compared to operating income in the second quarter of
2020 of $492 million, which included $9 million of Adjustments.
Excluding the Adjustments, operating loss of $143 million decreased
$644 million compared to the second quarter of 2020, in which no
live sporting events were produced or played due to COVID-19.
- Net loss attributable to the Company was $332 million versus
net income of $252 million in the prior year period. Excluding the
Adjustments, the Company had a net loss of $303 million.
- Consolidated Adjusted EBITDA, which excludes the Adjustments,
of $433 million, increased 70% versus the second quarter of
2020.
CEO Comment:
"Results for the quarter were solid, as we outperformed our
expectations amid the continued recovery in the core advertising
market, as well as timing of expenses and our ongoing cost control
efforts," said Chris Ripley, Sinclair's President & Chief
Executive Officer. "As we progress through the year, we have been
making great strides in a number of areas, including planning our
direct-to-consumer local sports service expected to launch next
year, the debut of gamification elements in conjunction with Bally
Sports in some of our sports programming, and the evolution of our
digital agency Compulse into an omni-channel marketing technology
platform for local agencies and media companies. All of these
areas, along with our achievements with ATSC 3.0 and our upcoming
expansion of The National Desk, our news show for a national
audience with a local perspective, are expected to be important
components of our company's strategy in the years ahead."
Ripley continued, "We believe the full value of Sinclair is not
reflected in the Company's current stock price. There are numerous
assets, apart from our broadcasting and regional sports networks
businesses, that we believe have appreciable value. These include
our warrants and options in Bally's Corp., our licensed broadcast
spectrum, the remaining tax benefit that came as a result of our
RSN purchase in 2019, and our investments in non-core businesses
and equity stakes, that we believe have a market value well in
excess of book value. Together, we believe these assets alone are
worth more per share than where the Company's stock is currently
trading."
Ripley concluded, "Moving forward, we remain confident that our
multi-pronged approach to growing our business through emphasizing
multi-channel content, marketing services, data distribution, and
gamification and community, along with our valuable and diversified
asset base, will continue to move us toward our goal of becoming a
top next generation media company.”
Recent Company
Developments:
Achievements:
- In June, Fortune Magazine named the Company to the Fortune 500
for the first time, ranking it 465 on the list. Sinclair’s place on
the Fortune 500 follows years of tremendous growth and monumental
achievements for the company.
Transactions:
- In May, the Company completed the divestiture of the license
assets of KGBT in Harlingen, TX.
- In May, Lotus Communications Corporation agreed to acquire,
subject to FCC approval, the Company's radio stations in the
Seattle, WA market for an aggregate consideration of approximately
$18 million in cash and advertising rights. The deal includes News
Radio KOMO 1000 AM & 97.7 FM, KPLZ “Star” 101.5 FM, and Talk
Radio KVI 570 AM.
- In June, the Company completed the divestiture of its interests
in Triangle Sign & Service, LLC, for an aggregate price of $12
million.
Content and Distribution:
- In July, the Company announced that its Compulse business had
transformed into a marketing, technology and managed services
company, releasing its Compulse 360 software for digital media,
offering omni-channel, digital solutions to enable clients to run
local campaigns at scale.
- In July, Tennis Channel extended its media rights agreement
with Wimbledon through 2036, adding 12 years to its agreement.
Community:
- In May, The Press Club of Atlantic City honored Sinclair-owned
WBFF FOX45 in Baltimore, MD and WKRC Local 12 in Cincinnati, OH
with a total of four National Headliner Awards for the news teams’
investigative coverage of critical issues that significantly impact
local communities.
- In June, the Company selected seven winning applicants for its
Broadcast Diversity Scholarship, awarding tuition assistance to
students demonstrating a promising future in the broadcast
industry.
- In June and July, the Company partnered with the American Red
Cross for the “Sinclair Cares: Roll Up Your Sleeves” campaign, to
urge Sinclair viewers to help increase U.S. blood supplies by
making a blood donation appointment, volunteering time, or
providing financial contributions for the cause.
- Year-to-date, Sinclair's newsrooms have won a total of 210
journalism awards, including 37 Regional RTDNA Edward R. Murrow
awards and 63 regional Emmy awards. In addition, the Company's RSNs
accumulated 32 Emmy's.
NEXTGEN Broadcasting (ATSC 3.0):
- In June, BitPath, CAST.ERA and ONE Media demonstrated dramatic
new use cases for the NEXTGEN Broadcast (ATSC 3.0) standard. GPS
enhancement data was broadcast proving the ability to enhance the
accuracy of the Global Positioning System (GPS) significantly,
debuting a major new tool for autonomous vehicle navigation.
Additionally, a drone incorporating eGPS and a 5G radio was used to
show the potential of “Beyond Visual Line of Sight” observation and
live imagery with near real-time broadcast of gathered live images,
paving the way for multiple new use cases including news and first
responder applications.
- As of the end of July, the Company has launched NEXTGEN TV in
17 cities, including recent launches in Baltimore, MD, Grand
Rapids, MI, and Little Rock, AR.
- In April, CAST.ERA, a media technology joint venture between
Sinclair and SK Telecom, announced it expects to launch this year a
next generation broadcast solution that boosts television content
quality utilizing SK Telecom's 5G cloud and AI technology.
Three Months Ended June 30, 2021
Consolidated Financial Results:
- Total revenues increased 26% to $1,612 million versus $1,283
million in the prior year period. Media revenues increased 27% to
$1,600 million versus $1,260 million in the same period a year
ago.
- Total advertising revenues of $491 million increased 109%
versus $235 million in the prior year period, due to the general
recovery of the advertising market from the pandemic and the
resumption of professional sports games compared with none being
played in the prior year quarter. The gains were partially offset
by the absence of political revenues, as 2021 is a non-political
year. Core advertising revenues, which excludes political revenues,
in the second quarter of $486 million were up 125% versus $216
million in the second quarter of 2020, due to the same factors that
drove total advertising revenue gains.
- Distribution revenues were $1,078 million versus $1,010 million
in the same period a year ago, with the increase driven mainly by
the absence of accruals for distributor rebates tied to minimum
game guarantees. The gains were partially offset by dropped
carriage of the Company's RSNs and subscriber churn.
- Operating loss of $178 million, included Adjustments of $35
million versus operating income of $492 million in the prior year
period, which included $9 million of Adjustments. Operating loss,
when excluding the Adjustments decreased to $143 million from
operating income of $501 million for the same prior-year
period.
- Net loss attributable to the Company was $332 million versus
net income of $252 million in the prior year period. Excluding
Adjustments, the Company had net loss of $303 million. Adjusted
EBITDA, which excludes Adjustments, increased 70% to $433 million
from $254 million in the prior year period.
- Diluted loss per common share was $4.41 as compared to diluted
earnings per common share of $3.12 in the prior year period. On a
diluted share basis, the impact of Adjustments in the three months
ending June 30, 2021 was $(0.39) and the impact of Adjustments in
the three months ending June 30, 2020 was $(0.09).
Six Months Ended June 30, 2021
Consolidated Financial Results:
- Total revenues increased 8% to $3,123 million versus $2,892
million in the prior year period. Media revenues increased 9% to
$3,097 million versus $2,834 million in the same period a year
ago.
- Total advertising revenues of $862 million increased 36% versus
$635 million in the prior year period, due to the general recovery
of local advertising and more professional sports games in 2021,
offset by the absence of political revenues, as 2021 is a
non-political year. Core advertising revenues, which excludes
political revenues of $853 million, were up 48% versus $575 million
in the same period a year ago, benefiting from the general recovery
and more local sports games taking place in the period compared to
the same period a year ago.
- Distribution revenues were $2,187 million versus $2,165 million
in the same period a year ago, with the increase the result of the
absence of distributor rebate accruals that were present in the
prior year period.
- Operating loss of $143 million, included Adjustments of $67
million, versus operating income of $819 million in the prior year
period, which included $29 million of Adjustments. Operating loss
when excluding the Adjustments decreased to $76 million from
operating income of $848 million for the same prior year
period.
- Net loss attributable to the Company was $344 million versus
net income of $375 million in the prior year period. Excluding
Adjustments, the Company had net loss of $290 million. Adjusted
EBITDA, which excludes Adjustments, increased 15% to $615 million
from $535 million in the prior year period.
- Diluted loss per common share was $4.59 as compared to diluted
earnings per common share of $4.36 in the prior year period. On a
diluted-per-share basis, the impact of Adjustments in the six
months ending June 30, 2021 was $(0.72) and the impact of
Adjustments in the six months ending June 30, 2020 was
$(0.28).
Consolidated and Segment
Highlights
The below highlights include the launch of Marquee Sports
Network (February 22, 2020), the divestiture of the non-license
assets in Harlingen, TX (January 27, 2020), the divestiture of WDKY
in Lexington, KY (September 17, 2020), the divestiture of WDKA and
KBSI in the Cape Girardeau MO/Paducah KY market (February 1, 2021),
the acquisition of ZypMedia (February 5, 2021), the divestiture of
the license assets in Harlingen, TX (May 24, 2021), and the
divestiture of Triangle Sign and Service (June 2, 2021).
Segment financial information is included in the following
tables for the periods presented. The Broadcast segment consists
primarily of broadcast television stations, which the Company owns,
operates or to which the Company provides services. The Local
Sports segment consists primarily of the RSNs. The Other segment
includes corporate, original networks and content, including Tennis
Channel, non-broadcast digital and internet solutions, technical
services, and other non-media investments.
Three months ended June 30,
2021
Broadcast
Local Sports
Corporate, Other &
Elimination
Consolidated
($ in millions)
Revenue Highlights:
Distribution revenue
$
363
$
666
(a)
$
49
$
1,078
Advertising revenue
280
162
49
491
Other media revenue
44
(b)
10
(23)
(b)
31
Media revenues
$
687
$
838
$
75
$
1,600
Non-media revenue
—
—
12
12
Total revenues
$
687
$
838
$
87
$
1,612
Expense Highlights:
Media programming & production
expenses and media selling, general and administrative expenses
$
475
$
1,045
(b)
$
59
(b)
$
1,579
Sports rights amortization included in
media production expenses
—
829
—
829
Non-media expenses
—
—
14
14
Corporate general and administrative
expenses
29
3
4
36
Other Highlights:
Sports rights payments
—
403
(a)
—
403
Program contract payments
22
—
3
25
Capital expenditures(c)
5
5
3
13
Interest expense (net) (d)
1
102
48
151
Adjusted EBITDA(e)
433
(a)
Local Sports distribution revenue includes
$11 million for the reversal of previously accrued rebates to
distributors tied to minimum game guarantees. Sports rights
payments includes approximately $36 million of lower payments to
and rebates from teams for sports rights overpayments tied to
minimum game guarantees.
(b)
For the quarter ended June 30, 2021,
Broadcast includes $27 million of revenue for services provided by
the Broadcast segment to the Local Sports and Other segments and
the Local Sports segment includes $27 million of selling, general,
and administrative expenses for services provided by the Broadcast
segment to the Local Sports segment. Such amounts are eliminated in
consolidation.
(c)
Capital expenditures exclude $4 million of
repack capital expenditures expected to be reimbursed in the future
from the TV Broadcaster Relocation Fund administered by the
FCC.
(d)
Interest expense excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(e)
Adjusted EBITDA is defined as earnings
before interest, tax, depreciation and amortization, and
non-recurring transaction and transition service, COVID, legal,
litigation and regulatory costs, as well as certain non-cash items
such as stock-based compensation expense and sports rights
amortization; less sports rights payments and program contract
payments. Refer to the reconciliation on the last page of this
press release and the Company's website.
Three months ended June 30, 2020
Broadcast
Local Sports
Corporate, Other &
Elimination
Consolidated
($ in millions)
Revenue Highlights:
Distribution revenue
$
349
$
610
(a)
$
51
$
1,010
Advertising revenue
208
3
24
235
Other media revenue
35
(b)
3
(23)
(b)
15
Media revenues
$
592
$
616
$
52
$
1,260
Non-media revenue
—
—
23
23
Total revenues
$
592
$
616
$
75
$
1,283
Expense Highlights:
Media programming & production
expenses and media selling, general and administrative expenses
$
430
$
106
(b)
$
33
(b)
$
569
Sports rights amortization included in
Media production expenses
—
5
—
5
Non-media expenses
—
—
21
21
Corporate general and administrative
expenses
27
2
3
32
Other Highlights:
Sports rights payments
—
413
(a)
—
413
Program contract payments
24
—
—
24
Capital expenditures(c)
9
8
15
32
Interest expense (net)(d)
1
105
46
152
Adjusted EBITDA(e)
254
(a)
Local Sports distribution revenue includes
$124 million for the accrual of rebates to distributors tied to
minimum game guarantees. Sports rights payments includes
approximately $9 million of lower payments to and rebates from
teams for sports rights overpayments tied to minimum game
guarantees.
(b)
For the quarter ended June 30, 2020,
Broadcast includes $25 million of revenue for services provided by
the Broadcast segment to the Local Sports and Other segments and
the Local Sports segment includes $25 million of selling, general,
and administrative expenses for services provided by the Broadcast
segment to the Local Sports segment. Such amounts are eliminated in
consolidation.
(c)
Capital expenditures exclude $19 million
of repack capital expenditures expected to be reimbursed in the
future from the TV Broadcaster Relocation Fund administered by the
FCC.
(d)
Interest expense excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(e)
Adjusted EBITDA is defined as earnings
before interest, tax, depreciation and amortization, and
non-recurring transaction, COVID, 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 June 30, 2021 was $12,539 million,
which includes Diamond Sports Group LLC (DSG) debt of $8,128
million.
- Cash and cash equivalents for the Company as of June 30, 2021
was $964 million, which includes $408 million held at DSG.
- As of June 30, 2021, 51.6 million Class A common shares and
23.8 million Class B common shares were outstanding, for a total of
75.4 million common shares.
- In June, the Company paid a $0.20 per share quarterly cash
dividend to its shareholders.
- Routine capital expenditures in the second quarter of 2021 were
$13 million with another $4 million related to the spectrum
repack.
- The Local Sports segment's media production expense included
$829 million of sports rights amortization, while sports rights
payments in the quarter were $403 million.
Notes:
Certain reclassifications have been made to prior years'
financial information to conform to the presentation in the current
year.
Outlook:
The Company currently expects to achieve the following results
for the three months ending September 30, 2021 and the twelve
months ending December 31, 2021.
The Company is closely monitoring the impact of the COVID-19
pandemic on all aspects of its business, including how it has and
will continue to impact its advertisers, distributors, and
professional sports leagues. The Company is currently unable to
predict the extent of the impact that the COVID-19 pandemic will
have on its financial condition, results of operations and cash
flows in future periods due to numerous uncertainties. For
additional discussion of how the COVID-19 pandemic has impacted the
Company’s business, please see the section titled The Impact of
COVID-19 on our Results of Operations in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2020, which
will be updated in the Company's Quarterly Report on Form 10-Q for
the quarter ended June 30, 2021.
For the three months ending September
30, 2021 ($ in millions)
Broadcast
Local Sports
Corporate and Other and
Elimination
Consolidated
Revenue Highlights:
Core advertising revenue
$440 to 458
Political revenue
5 to 7
Advertising revenue
$277 to 289
$119 to 127
$49
$445 to 465
Distribution revenue
369 to 371
642 to 689
49
1,061 to 1,109
Other media revenue
46 to 47
(a)
7 to 9
(27) to (26)
(a)
28 to 29
Media revenues
693 to 707
769 to 824
70 to 71
1,533 to 1,602
Non-media revenue
—
—
16
16
Total revenues
$693 to 707
$769 to 824
$86 to 87
$1,549 to 1,618
Expense Highlights:
Media programming & production
expenses and media selling, general and administrative expenses
$476 to 479
$737 to 738
(a)
$75 to 76
(a)
$1,289 to 1,292
Sports rights amortization included in
media production expenses
—
532
(b)
—
532
Non-media expenses
—
—
20
20
Corporate overhead
2
33
Stock-based compensation and non-recurring
costs for transaction, legal, litigation and regulatory fees
included in corporate and media expenses above
24
41
Depreciation, intangible & programming
amortization
79
168
Other Highlights:
Sports rights payments
—
$331
(b)
—
$331
Program contract payments
27
Interest expense (net)(c)
102
145
Income tax benefit
Approximately 17% effective tax
rate
Net cash tax payments
Less than $1 million
Payments to noncontrolling interest
holders, including preferred dividend(d)
23 to 28
24 to 29
Total capital expenditures, including
repack
6
40
Repack capital expenditures
5
Adjusted EBITDA(e)
$255 to 308
$422 to 488
Note: Certain amounts may not summarize to
totals due to rounding differences.
(a)
The Broadcast segment includes $28 million
of revenue for services provided by the Broadcast segment to the
Local Sports and Other segments and the Local Sports segment
includes $28 million of selling, general, and administrative
expenses for services provided by the Broadcast segment to the
Local Sports segment. Such amounts are eliminated in the
Consolidated column.
(b)
Includes approximately $9 million of lower
payments to and rebates from teams for sports rights overpayments
tied to minimum game guarantees carried over from 2020.
(c)
Interest expense excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(d)
Preferred dividend is expected to be paid
in-kind in the quarter ending September 30, 2021.
(e)
Adjusted EBITDA is defined as earnings
before interest, tax, depreciation and amortization, plus
impairment loss and non-recurring transaction and transition
service, COVID, legal, litigation and regulatory costs, as well as
certain non-cash items such as stock-based compensation expense and
sports rights amortization; less sports rights payments and
programming payments. Refer to the reconciliation on the last page
of this release and the Company's website.
For the twelve months ending December
31, 2021 ($ in millions)
Broadcast
Local Sports
Corporate and Other and
Elimination
Consolidated
Revenue Highlights:
Media revenues
$3,079 to 3,223
(a)
Non-media revenue
53
53
Expense Highlights:
Media programming & production
expenses and media selling, general and administrative expenses
$1,914 to 1,919
$3,113 to 3,116
(b)
$238 to 240
(b)
$5,264 to 5,274
Sports rights amortization included in
media production expenses
—
2,348
(c)
—
2,348
Non-media expenses
—
—
68
68
Corporate overhead
10
163
Stock-based compensation and non-recurring
costs for transaction, legal, litigation and regulatory fees
included in corporate and media expenses above
74
180
Depreciation, intangible & programming
amortization
319
684
Other Highlights:
Sports rights payments
—
1,867
(c)
—
1,867
Program contract payments
101
Interest expense (net)(d)
406
582
Income tax benefit
Approximately 20% effective tax
rate
Net cash tax refunds
Approximately $208 million
Payments to noncontrolling interest
holders, including preferred dividend(e)
102 to 116
110 to 123
Total capital expenditures, including
repack
27
115 to 135
Repack capital expenditures
20
Adjusted EBITDA(f)
$512 to 652
Note: Certain amounts may not summarize to
totals due to rounding differences.
(a)
Includes approximately $30 million for the
reversal of previously accrued rebates to distributors tied to
minimum game guarantees.
(b)
The Local Sports segment includes
approximately $110 million of selling, general, and administrative
expenses for services provided by the Broadcast segment to the
Local Sports segment.
(c)
Includes approximately $112 million of
lower payments to and rebates from teams of sports rights payments
tied to minimum game guarantees.
(d)
Interest expense excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(e)
Preferred dividend is expected to be paid
in-kind in the quarters ending September 30, 2021 and December 31,
2021.
(f)
Adjusted EBITDA is defined as earnings
before interest, tax, depreciation and amortization, plus
impairment loss and non-recurring transaction and transition
service, COVID, 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 second quarter 2021 results on Wednesday, August 4,
2021, at 9:30 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 21 regional
sports network brands; owns, operates and/or provides services to
185 television stations in 86 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 June
30,
Six Months Ended June
30,
2021
2020
2021
2020
REVENUES:
Media revenues
$
1,600
$
1,260
$
3,097
$
2,834
Non-media revenues
12
23
26
58
Total revenues
1,612
1,283
3,123
2,892
OPERATING EXPENSES:
Media programming and production
expenses
1,345
383
2,368
1,211
Media selling, general and administrative
expenses
234
186
447
396
Amortization of program contract costs
22
21
45
44
Non-media expenses
14
21
31
51
Depreciation of property and equipment
28
26
56
50
Corporate general and administrative
expenses
36
32
97
81
Amortization of definite-lived intangible
and other assets
119
150
244
300
Gain on asset dispositions and other, net
of impairment
(8)
(28)
(22)
(60)
Total operating expenses
1,790
791
3,266
2,073
Operating (loss) income
(178)
492
(143)
819
OTHER INCOME (EXPENSE):
Interest expense including amortization of
debt discount and deferred financing costs
(160)
(165)
(311)
(345)
Gain on extinguishment of debt
—
3
—
5
Income (loss) from equity method
investments
2
(7)
11
(13)
Other (expense) income, net
(61)
4
63
—
Total other expense, net
(219)
(165)
(237)
(353)
(Loss) income before income taxes
(397)
327
(380)
466
INCOME TAX BENEFIT (PROVISION)
69
(54)
78
(42)
NET (LOSS) INCOME
(328)
273
(302)
424
Net income attributable to the redeemable
noncontrolling interests
(5)
(12)
(9)
(32)
Net loss (income) attributable to the
noncontrolling interests
1
(9)
(33)
(17)
NET (LOSS) INCOME ATTRIBUTABLE TO SINCLAIR
BROADCAST GROUP
$
(332)
$
252
$
(344)
$
375
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO
SINCLAIR BROADCAST GROUP:
Basic (loss) earnings per share
$
(4.41)
$
3.13
$
(4.59)
$
4.39
Diluted (loss) earnings per share
$
(4.41)
$
3.12
$
(4.59)
$
4.36
Basic weighted average common shares
outstanding (in thousands)
75,331
80,425
74,862
85,517
Diluted weighted average common and common
equivalent shares outstanding (in thousands)
75,331
80,737
74,862
85,981
The Company considers Adjusted EBITDA to be an indicator of the
operating performance of its assets. The Company also believes that
Adjusted EBITDA is frequently used by industry analysts, investors
and lenders as a measure of valuation.
Non-GAAP 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 June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Adjusted EBITDA
Net (loss) income attributable to Sinclair
Broadcast Group
$
(332)
$
252
$
(344)
$
375
Add: Income from redeemable noncontrolling
interests
5
12
9
32
Add: (Loss) Income from noncontrolling
interests
(1)
9
33
17
Add: Income tax (benefit) provision
(69)
54
(78)
42
Add: Other (income) expense
(1)
(4)
(2)
1
Add: (Income) loss from equity method
investments
(2)
7
(11)
13
Add: Loss (income) from other investments
and impairments
63
1
(60)
3
Add: Gain on extinguishment of
debt/insurance proceeds
—
(3)
—
(6)
Add: Interest expense
160
165
311
345
Less: Interest income
—
—
—
(2)
Less: Gain on asset dispositions and
other, net of impairment
(8)
(28)
(22)
(60)
Add: Amortization of intangible assets
& other assets
119
150
244
300
Add: Depreciation of property &
equipment
28
26
56
50
Add: Stock-based compensation
13
15
46
28
Add: Amortization of program contract
costs
22
21
45
44
Less: Cash film payments
(25)
(24)
(50)
(47)
Add: Amortization of sports programming
rights
829
5
1,381
396
Less: Cash sports programming rights
payments
(403)
(413)
(1,010)
(1,025)
Add: Transaction and transition service,
COVID, legal and other non-recurring expense
35
9
67
29
Adjusted EBITDA
$
433
$
254
$
615
$
535
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, the significant disruption to the operations of the
professional sports leagues and the macroeconomy caused by COVID-19
may result in the recognition of further impairment charges on our
goodwill and definite-lived intangible assets, 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 source
version on businesswire.com: https://www.businesswire.com/news/home/20210804005526/en/
Investor Contacts: Steve Zenker, VP, Investor Relations
Billie-Jo McIntire, Director, Investor Relations (410) 568-1500
Media Contact: Janine Warner, 5W, sinclair@5wpr.com
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