Sinclair, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair,"
today reported financial results for the three and six months ended
June 30, 2023.
Second Quarter
Highlights:
- Met or exceeded key financial metrics
- Repurchased approximately $30 million of debt
- Completed holding company reorganization
CEO Comment:
"Sinclair is continuing to see a solid start to 2023, meeting or
beating guidance on all key financial metrics," said Chris Ripley,
Sinclair's President & Chief Executive Officer. "As we continue
our evolution from a traditional broadcast company to a diversified
content and data distributor, we have finalized the process of
reorganizing our company structure to increase transactional
flexibility and transparency around the value of assets being held
in each business unit, Sinclair Broadcast Group and its
subsidiaries (`SBG') and Sinclair Ventures and its subsidiaries
(`Ventures'). SBG holds the pure-play local media assets, while
Ventures holds the company's non-local media assets. Our end goal
is to create an even more effective company, designed to use the
breadth of our assets to identify and accelerate growth."
Recent Company
Developments:
- In June, the Company completed the share exchange effectuating
a reorganization in which Sinclair, Inc. became the publicly-traded
parent of SBG.
Content and Distribution:
- Year-to-date, Sinclair's newsrooms have won a total of 223
journalism awards, including 23 RTDNA Regional Edward R. Murrow
awards, three National Headliner awards, and two Investigative
Reporters and Editors (IRE) awards. Sinclair’s “Project Baltimore”
also won the Society of Professional Journalists National Sigma
Delta Chi Award for Investigative Reporting.
- In July, the Company announced a distribution agreement with
Hulu to add carriage of Tennis Channel, T2, Comet and CHARGE! to
Hulu’s service offerings beginning January of 2024.
- In June, the Company reached an agreement with Smith
Entertainment Group (SEG), parent company of the Utah Jazz, to make
KJZZ “The Home of the Utah Jazz,” enabling fans within the Jazz’s
local broadcast market to watch all non-nationally televised
exclusive Jazz games on the over-the-air, local TV station.
- Tennis Channel, recorded a 20% year-over-year growth in total
viewers in the second quarter of 2023, despite Wimbledon being
pushed back a week this year into the third quarter. The growth
rate outpaced all other English-language sports networks.
Community:
- In July, the Company announced a partnership with the National
Diaper Bank Network to launch Sinclair Cares: Summer Diaper Drive,
a nationwide campaign to create awareness, provide assistance, and
build a community to reduce diaper need in the US.
- Also in July, the Company announced that it has awarded
scholarships to 15 university students as a part of its annual
Diversity Scholarship program. Having provided more than $315,000
in tuition assistance since 2013, the annual Sinclair Broadcast
Group Diversity Scholarship aims to invest in the future of the
local media industry and help students from diverse backgrounds,
who reflect Sinclair’s audiences nationwide, complete their
education and pursue careers in local media journalism, digital
storytelling, and marketing.
Investment Portfolio:
- As of June 30, 2023, the Company estimated the fair market
value of Ventures' investment portfolio, which includes investments
in real estate, private equity, and venture capital funds, as well
as direct investments in companies, at approximately $1.2 billion,
or approximately $20 per share.
- During the second quarter, Ventures made investments of
approximately $6 million in its portfolio of investments and
received distributions, including exit payments, of approximately
$5 million.
NextGen Broadcasting (ATSC 3.0):
- As of the end of July, the Company launched NextGen Broadcast
in 41 markets, including recent launches in South Bend, IN and
Reno, NV. To date, NextGen Broadcast is available in 69% of the TV
households in Sinclair's licensed footprint.
Financial Results:
The results below reflect the deconsolidation of the Local
Sports segment comprised of the regional sports networks (RSNs),
which are owned and operated by Diamond Sports Group ("DSG") and
its direct and indirect subsidiaries, from the Company's financial
statements and accounted for under equity method of accounting,
effective March 1, 2022. As such, the quarter-to-date and
year-to-date 2023 consolidated financial results do not include any
results of operations of the Local Sports segment, while the
consolidated financial results for the comparable year-to-date 2022
period include two months results of operations of the Local Sports
segment.
Three Months Ended June 30, 2023
Consolidated Financial Results:
- Total revenues decreased 8% to $768 million versus $837 million
in the prior year period. Media revenues also decreased 8% to $761
million versus $831 million in the prior year period.
- Total advertising revenues of $309 million decreased 16% versus
$366 million in the prior year period. Core advertising revenues,
which exclude political revenues, were down 3% in the second
quarter to $303 million versus $312 million in the prior year
period.
- Distribution revenues of $418 million decreased versus $430
million in the prior year period.
- Operating loss of $3 million, including non-recurring
transaction and transition services, implementation, COVID, legal,
and regulatory costs ("Adjustments") of $24 million, declined
versus an operating income of $107 million in the prior year
period, which included Adjustments of $13 million. Operating
income, when excluding the Adjustments, was $21 million compared to
an operating income, excluding the Adjustments, of $120 million in
the prior year period.
- Net loss attributable to the Company was $89 million versus net
loss of $11 million in the prior year period. Excluding
Adjustments, the Company had net loss of $70 million.
- Adjusted EBITDA decreased 42% to $107 million from $183 million
in the prior year period.
- Diluted loss per common share was $1.38 as compared to diluted
loss per common share of $0.17 in the prior year period. On a
diluted share basis, the impact of Adjustments was $(0.29), and the
impact of Adjustments in the prior year period was $(0.14).
Six Months Ended June 30, 2023
Consolidated Financial Results:
- Total revenues decreased 27% to $1,541 million versus $2,125
million in the prior year period. Media revenues decreased 27% to
$1,527 million versus $2,106 million in the prior year period.
Excluding DSG, total revenues decreased 8% from $1,669 million in
the prior year period and media revenues decreased 7% from $1,650
million in the prior year period.
- Total advertising revenues of $618 million decreased 16% versus
$737 million in the prior year period. Excluding DSG, total
advertising revenues decreased 11% from $693 million in the prior
year period. Core advertising revenues, which excludes political
revenues, of $609 million were down 9% versus $666 million in the
prior year period. Excluding DSG, core advertising revenues
decreased 2% from $622 million in the prior year period.
- Distribution revenues of $844 million decreased versus $1,303
million in the prior year period. Excluding DSG, distribution
revenues decreased 3% from $870 million in the prior year
period.
- Operating income of $18 million, including $30 million of
Adjustments, declined versus operating income of $3,573 million in
the prior year period, which included Adjustments of $19 million
and a $3,357 million gain on asset dispositions relating to
deconsolidating DSG's net liability ("Gain on Deconsolidation").
Operating income, when excluding the Adjustments and Gain on
Deconsolidation, was $48 million compared to operating income of
$235 million in the prior year period. Excluding DSG, operating
income excluding the Adjustments and Gain on Deconsolidation
decreased 81% from $237 million in the prior year period.
- Net income attributable to the Company was $96 million versus
net income of $2,576 million in the prior year period. Excluding
Adjustments, the Company had net income of $120 million. Net loss
from DSG in the prior year period was $94 million.
- Adjusted EBITDA decreased 48% to $227 million from $437 million
in the prior year period. Adjusted EBITDA from DSG in the first two
months of 2022 was $54 million.
- Diluted earnings per common share was $1.43 as compared to
diluted earnings per common share of $36.00 in the prior year
period. On a diluted-per-share basis, the impact of Adjustments was
$(0.36) and the impact of Adjustments and the Gain on
Deconsolidation in the prior year period was $35.68.
Segment financial information is included in the following
tables for the periods presented. The Local Media segment consists
primarily of broadcast television stations, which the Company owns,
operates or to which the Company provides services, and includes
multicast networks and original content. The Local Media segment
assets are owned and operated by SBG. The Tennis segment consists
primarily of Tennis Channel, a cable network which includes
coverage of many of tennis' top tournaments and original
professional sport and tennis lifestyle shows; the Tennis Channel
International streaming service; Tennis Channel Plus streaming
service; T2 FAST, a 24-hours a day free ad-supported streaming
television channel; and Tennis.com. Other includes non-broadcast
digital and internet solutions, technical services, and other
non-media investments. The assets of the Tennis segment and Other
are owned and operated by Ventures. The highlights below include
the divestiture of Ring of Honor (May 3, 2022) and Stadium (May 2,
2023).
Three months ended June 30,
2023
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Distribution revenue
$
372
$
46
$
—
$
—
$
418
Advertising revenue
293
(a)
14
6
(4
)
309
Other media revenue
34
(b)
—
—
—
34
Media revenues
$
699
$
60
$
6
$
(4
)
$
761
Non-media revenue
—
—
8
(1
)
7
Total revenues
$
699
$
60
$
14
$
(5
)
$
768
Media programming and production
expenses
$
369
$
40
$
5
$
(1
)
$
413
Media selling, general and administrative
expenses
175
12
6
(3
)
190
Non-media expenses
3
—
7
(1
)
9
Program contract payments
23
—
—
—
23
Corporate general and administrative
expenses
46
—
—
16
62
Stock-based compensation
10
—
—
2
12
Non-recurring transaction and transition
services, implementation, COVID, legal, and regulatory costs.
18
—
4
2
24
Adjusted EBITDA(c)
$
111
$
8
$
—
$
(12
)
$
107
Interest expense (net) (d)
$
66
$
—
$
(5
)
$
—
$
61
Capital expenditures
19
—
1
—
20
Distributions to the noncontrolling
interests
4
—
—
—
4
Cash distributions from equity
investments
—
—
5
—
5
Cash taxes paid
2
Adjusted Free Cash Flow (e)
$
25
(a)
Includes political advertising revenue of
$6 million.
(b)
Local Media segment other media revenue
includes $14 million of management and incentive fees for services
provided by the Local Media segment to DSG and Marquee under
management services agreements which are not eliminated due to the
deconsolidation of the Local Sports segment as of March 1,
2022.
(c)
Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortization, and non-recurring transaction and
transition services, implementation, COVID, legal, and regulatory
costs, as well as certain non-cash items such as stock-based
compensation expense; less program contract payments. Refer to the
reconciliation on the last page of this press release and the
Company's website. In the above table, Adjusted EBITDA equals total
revenues minus media programming and production expenses, media
selling, general and administrative expenses, non-media expenses,
program contract payments, and corporate general and administrative
expenses; plus stock-based compensation and non-recurring
transaction and transition services, implementation, COVID, legal,
and regulatory costs.
(d)
Interest expense (net) excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(e)
Adjusted Free Cash Flow is defined as
Adjusted EBITDA less interest expense (net), distributions to
non-controlling interest holders, cash taxes paid, and capital
expenditures; plus cash distributions received from equity
investments. Refer to the reconciliation on the last page of this
press release and the Company's website.
Three months ended June 30,
2022
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Distribution revenue
$
385
$
45
$
—
$
—
$
430
Advertising revenue
343
(a)
11
13
(1
)
366
Other media revenue
32
(b)
2
2
(1
)
35
Media revenues
$
760
$
58
$
15
$
(2
)
$
831
Non-media revenue
—
—
12
(6
)
6
Total revenues
$
760
$
58
$
27
$
(8
)
$
837
Media programming and production
expenses
$
360
$
39
$
7
(3
)
$
403
Media selling, general and administrative
expenses
169
14
14
(2
)
195
Non-media expenses
3
—
9
(2
)
10
Program contract payments
26
—
—
—
26
Corporate general and administrative
expenses
34
—
—
4
38
Stock-based compensation
4
—
—
1
5
Non-recurring transaction and transition
services, implementation, COVID, legal, and regulatory costs
12
—
—
1
13
Adjusted EBITDA(c)
184
5
(3
)
(3
)
183
Interest expense (net) (d)
$
51
$
—
$
(3
)
$
—
$
48
Capital expenditures
22
1
—
1
24
Distributions to the noncontrolling
interests
2
—
—
—
2
Cash distributions from equity
investments
—
—
6
—
6
Cash taxes paid
15
Adjusted Free Cash Flow (e)
$
100
(a)
Includes political advertising revenue of
$54 million.
(b)
Local Media segment other media revenue
includes $10 million of management and incentive fees for services
provided by the Local Media segment to DSG and Marquee under
management services agreements which are not eliminated due to the
deconsolidation of the Local Sports segment as of March 1,
2022.
(c)
Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortization, and non-recurring transaction and
transition services, implementation, COVID, legal, and regulatory
costs, as well as certain non-cash items such as stock-based
compensation expense; less program contract payments. Refer to the
reconciliation on the last page of this press release and the
Company's website. In the above table, Adjusted EBITDA equals total
revenues minus media programming and production expenses, media
selling, general and administrative expenses, non-media expenses,
program contract payments, and corporate general and administrative
expenses; plus stock-based compensation and non-recurring
transaction and transition services, implementation, COVID, legal,
and regulatory costs.
(d)
Interest expense (net) excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(e)
Adjusted Free Cash Flow is defined as
Adjusted EBITDA less interest expense (net), distributions to
non-controlling interest holders, cash taxes paid, and capital
expenditures; plus cash distributions received from equity
investments. Refer to the reconciliation on the last page of this
press release and the Company's website.
Consolidated Balance Sheet and Cash
Flow Highlights of the Company:
- Total Company debt as of June 30, 2023 was $4,222 million, of
which $4,206 million is SBG debt and $16 million is Ventures
debt.
- The Company purchased approximately $32 million of principal
across multiple tranches of debt, $30 million in June and $2
million in July, in the open market for $21 million, representing a
weighted average discount of 35% to par and a weighted average
yield to maturity of 13%.
- Cash and cash equivalents for the Company as of June 30, 2023
was $728 million, of which $368 million is SBG cash and $360
million is Ventures cash.
- As of June 30, 2023, 39.3 million Class A common shares and
23.8 million Class B common shares were outstanding, for a total of
63.0 million common shares. As previously reported, the Company
repurchased approximately 8.8 million shares through May 1,
2023.
- In June, the Company paid a quarterly cash dividend of $0.25
per share.
- Capital expenditures for the second quarter of 2023 were $20
million.
Notes:
Certain reclassifications have been made to prior years'
financial information to conform to the presentation in the current
year.
Outlook:
The Company currently expects to achieve the following results
for the three months ending September 30, 2023 and the twelve
months ending December 31, 2023. The expected results for both the
three months ending September 30, 2023 and the twelve months ending
December 31, 2023 do not include the Company's former Local Sports
segment, which was deconsolidated as of March 1, 2022.
For the three months ending September
30, 2023 ($ in millions)
Local Media
Tennis
Other
Corporate and
Elimination
Consolidated
Advertising revenue
$281 to $295
$9
$6
$(4)
$291 to $307
Distribution revenue
362 to 365
46 to 47
—
—
408 to 412
Other media revenue
34
1
—
(1)
34
Media revenues
$677 to $694
$56 to $58
$6
$(5) to $(6)
$733 to $752
Non-media revenue
—
—
10 to 11
(1)
10 to 11
Total revenues
$677 to $694
$56 to $58
$16 to $18
$(6)
$742 to $763
Media programming & production
expenses and media selling, general and administrative expenses
$549 to $551
$44
$5
$(5)
$593 to $595
Non-media expenses
4
—
13 to 14
—
17 to 18
Program contract payments
22
—
—
—
22
Corporate overhead
19
—
1
13
33
Stock-based compensation
6
—
—
—
6
Non-recurring transaction, implementation,
legal, and regulatory costs
4
—
2
1
8
Adjusted EBITDA(a)
$94 to $109
$11 to $13
$(1) to $0
(13)
$91 to $109
Interest expense (net)(b)
69
—
(4)
—
65
Total capital expenditures
29 to 34
—
1
—
30 to 35
Distributions to the noncontrolling
interests
3
—
—
—
3
Cash distributions from equity
investments
—
—
3
—
3
Net cash tax payments
1
Adjusted Free Cash Flow(c)
$(9) to $14
Note: Certain amounts may not summarize to
totals due to rounding differences.
(a)
Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortization, and non-recurring transaction,
implementation, legal, and regulatory costs, as well as certain
non-cash items such as stock-based compensation expense; less
programming payments. In the above table, Adjusted EBITDA equals
total revenues minus media programming and production expenses,
media selling, general and administrative expenses, non-media
expenses, program contract payments, and corporate general and
administrative expenses; plus stock-based compensation and
non-recurring transaction, implementation, legal, and regulatory
costs.
(b)
Interest expense (net) excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(c)
Adjusted Free Cash Flow is defined as
Adjusted EBITDA less interest expense (net), distributions to
non-controlling interest holders, cash taxes paid, and capital
expenditures; plus cash distributions received from equity
investments.
For the twelve months ending December
31, 2023 ($ in millions)
Consolidated
Expense Highlights:
Media programming & production
expenses and media selling, general and administrative expenses
$2,377 to $2,383
Non-media expenses
68
Program contract payments
89
Corporate overhead
186
Stock based compensation included in
corporate, media, and non-media expenses
47
Non-recurring transaction, implementation,
legal, and regulatory costs included in corporate, media, and
non-media expenses above
46
Interest expense (net)(a)
253
Total capital expenditures
100 to 110
Distributions to noncontrolling
interests
12
Cash distributions from equity
investments
45
Net cash tax payments
5
Note: Certain amounts may not summarize to totals due to rounding
differences. (a)
Interest expense (net) excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
Sinclair Conference Call:
The senior management of Sinclair will hold a conference call to
discuss the Company's second quarter 2023 results on Wednesday,
August 2, 2023, at 4:30 p.m. ET. The call will be webcast live and
can be accessed at www.sbgi.net under
"Investor Relations/Events and Presentations." 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
(888) 506-0062, with entry code 433619.
About Sinclair:
Sinclair, Inc. is a diversified media company and a leading
provider of local news and sports. The Company owns, operates
and/or provides services to 185 television stations in 86 markets
affiliated with all the major broadcast networks; owns Tennis
Channel and multicast networks Comet, CHARGE! and TBD; and owns and
provides services to 21 regional sports network brands. Sinclair’s
content is delivered via multiple platforms, including
over-the-air, multi-channel video program distributors, and the
nation’s largest streaming aggregator of local news content,
NewsON. The Company regularly uses its website as a key source of
Company information which can be accessed at www.sbgi.net.
Sinclair, 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,
2023
2022
2023
2022
REVENUES:
Media revenues
$
761
$
831
$
1,527
$
2,106
Non-media revenues
7
6
14
19
Total revenues
768
837
1,541
2,125
OPERATING EXPENSES:
Media programming and production
expenses
413
403
811
1,161
Media selling, general and administrative
expenses
190
195
381
415
Amortization of program contract costs
19
21
41
46
Non-media expenses
9
10
21
23
Depreciation of property and equipment
32
24
56
52
Corporate general and administrative
expenses
62
38
120
85
Amortization of definite-lived intangible
assets
41
43
82
136
Gain on deconsolidation of subsidiary
—
—
—
(3,357
)
Loss (gain) on asset dispositions and
other, net of impairment
5
(4
)
11
(9
)
Total operating expenses (gains)
771
730
1,523
(1,448
)
Operating (loss) income
(3
)
107
18
3,573
OTHER INCOME (EXPENSE):
Interest expense including amortization of
debt discount and deferred financing costs
(76
)
(54
)
(150
)
(169
)
Gain on extinguishment of debt
11
3
11
3
(Loss) income from equity method
investments
(1
)
3
30
15
Other expense, net
(38
)
(105
)
(27
)
(165
)
Total other expense, net
(104
)
(153
)
(136
)
(316
)
(Loss) income before income taxes
(107
)
(46
)
(118
)
3,257
INCOME TAX BENEFIT (PROVISION)
20
40
224
(647
)
NET (LOSS) INCOME
(87
)
(6
)
106
2,610
Net (income) loss attributable to the
redeemable noncontrolling interests
—
(5
)
4
(9
)
Net income attributable to the
noncontrolling interests
(2
)
—
(14
)
(25
)
NET (LOSS) INCOME ATTRIBUTABLE TO
SINCLAIR
$
(89
)
$
(11
)
$
96
$
2,576
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO
SINCLAIR:
Basic earnings per share
$
(1.38
)
$
(0.17
)
$
1.44
$
36.00
Diluted earnings per share
$
(1.38
)
$
(0.17
)
$
1.43
$
36.00
Basic weighted average common shares
outstanding (in thousands)
64,012
70,897
66,862
71,527
Diluted weighted average common and common
equivalent shares outstanding (in thousands)
64,012
70,897
66,947
71,533
The Company considers Adjusted EBITDA to be an indicator of the
Company's operating performance and the ability to service its
debt. The Company also believes that Adjusted EBITDA is frequently
used by industry analysts, investors and lenders as a measure of
valuation and ability to service its debt. The Company also
discloses segment Adjusted EBITDA as an indicator of the operating
performance of its segments in accordance with ASC 280, Segment
Reporting.
The Company considers Adjusted Free Cash Flow to be an indicator
of the Company's operating performance. The Company also believes
that Free Cash Flow is a commonly used measure of valuation for
companies in the local media industry. In addition, this measure is
frequently used by industry analysts, investors and lenders as a
measure of valuation for local media companies.
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, 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,
2023
2022
2023
2022
Reconciliation of Net Income to
Adjusted EBITDA
Net (loss) income attributable to
Sinclair
$
(89
)
$
(11
)
$
96
$
2,576
Add: Income (loss) from redeemable
noncontrolling interests
—
5
(4
)
9
Add: Income from noncontrolling
interests
2
—
14
25
Add: Income tax (benefit) provision
(20
)
(40
)
(224
)
647
Add: Other (income) expense
(3
)
5
(3
)
11
Add: Loss (income) from equity method
investments
1
(3
)
(30
)
(15
)
Add: Loss from other investments and
impairments
52
105
53
159
Add: Gain on extinguishment of
debt/insurance proceeds
(11
)
(3
)
(11
)
(3
)
Add: Interest expense
76
54
150
169
Less: Interest income
(11
)
(4
)
(23
)
(5
)
Less: Gain on deconsolidation of
subsidiary
—
—
—
(3,357
)
Less: Loss (gain) on asset dispositions
and other, net of impairment
5
(4
)
11
(9
)
Add: Amortization of intangible assets
& other assets
41
43
82
136
Add: Depreciation of property &
equipment
32
24
56
52
Add: Stock-based compensation
12
4
35
28
Add: Amortization of program contract
costs
19
21
41
46
Less: Cash film payments
(23
)
(26
)
(46
)
(52
)
Add: Amortization of sports programming
rights
—
—
—
326
Less: Cash sports programming rights
payments
—
—
—
(325
)
Add: Transaction and transition service,
COVID, legal and other non-recurring expense
24
13
30
19
Adjusted EBITDA
$
107
$
183
$
227
$
437
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Reconciliation of Net Income to
Adjusted Free Cash Flow
Net (loss) income attributable to
Sinclair
$
(89
)
$
(11
)
$
96
$
2,576
Add: Income (loss) from redeemable
noncontrolling interests
—
5
(4
)
9
Add: Income from noncontrolling
interests
2
—
14
25
Less: Distributions to noncontrolling
interests
(4
)
(2
)
(8
)
(6
)
Add: Cash distributions from equity
investments
5
6
41
51
Add: Income tax (benefit) provision
(20
)
(40
)
(224
)
647
Add: Other non-cash (income) expense
(3
)
5
(3
)
11
Add: Loss (income) from equity method
investments
1
(3
)
(30
)
(15
)
Add: Loss from other investments and
impairments
52
105
53
159
Add: Gain on extinguishment of
debt/insurance proceeds
(11
)
(3
)
(11
)
(3
)
Add: Amortization of deferred financing
and bond discounts/premiums
4
2
7
8
Less: Gain on deconsolidation of
subsidiary
—
—
—
(3,357
)
Less: Loss (gain) on asset dispositions
and other, net of impairment
5
(4
)
11
(9
)
Add: Amortization of intangible assets
& other assets
41
43
82
136
Add: Depreciation of property &
equipment
32
24
56
52
Add: Stock-based compensation
12
4
35
28
Add: Amortization of program contract
costs
19
21
41
46
Less: Cash film payments
(23
)
(26
)
(46
)
(52
)
Less: Capital expenditures
(20
)
(24
)
(40
)
(44
)
Less: Cash taxes paid
(2
)
(15
)
(4
)
(15
)
Add: Amortization of sports programming
rights
—
—
—
326
Less: Cash sports programming rights
payments
—
—
—
(325
)
Add: Transaction and transition service,
COVID, legal and other non-recurring expense
24
13
30
19
Adjusted Free Cash Flow
$
25
$
100
$
96
$
267
Adjusted EBITDA less interest
expense (net), distributions to non-controlling interest holders,
cash taxes paid, and capital expenditures; plus cash distributions
received from equity investments
Three months ended June 30,
2023
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Total revenues
$
699
$
60
$
14
$
(5
)
$
768
Media programming and production
expenses
369
40
5
(1
)
413
Media selling, general and administrative
expenses
175
12
6
(3
)
190
Depreciation and amortization expenses
67
5
1
—
73
Amortization of program contract costs
19
—
—
—
19
Corporate general and administrative
expenses
46
—
—
16
62
Non-media expenses
3
—
7
(1
)
9
Gain on asset dispositions and other, net
of impairment
(2
)
—
7
—
5
Operating income
22
3
(12
)
(16
)
(3
)
Reconciliation of GAAP Operating Income
to Adjusted EBITDA:
Operating income
$
22
$
3
$
(12
)
$
(16
)
$
(3
)
Depreciation and amortization expenses
67
5
1
—
73
Amortization of program contract costs
19
—
—
—
19
Gain on asset dispositions and other, net
of impairment
(2
)
—
7
—
5
Program contract payments
(23
)
—
—
—
(23
)
Stock-based compensation
10
—
—
2
12
Adjustments
18
—
4
2
24
Adjusted EBITDA
111
8
—
(12
)
107
Three months ended June 30,
2022
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Total revenues
$
760
$
58
$
27
$
(8
)
$
837
Media programming and production
expenses
360
39
7
(3
)
403
Media selling, general and administrative
expenses
169
14
14
(2
)
195
Depreciation and amortization expenses
61
5
2
(1
)
67
Amortization of program contract costs
21
—
—
—
21
Corporate general and administrative
expenses
34
—
—
4
38
Non-media expenses
3
—
9
(2
)
10
Gain on asset dispositions and other, net
of impairment
(4
)
—
—
—
(4
)
Operating income
116
—
(5
)
(4
)
107
Reconciliation of GAAP Operating Income
to Adjusted EBITDA:
Operating income
$
116
$
—
$
(5
)
$
(4
)
$
107
Depreciation and amortization expenses
61
5
2
(1
)
67
Amortization of program contract costs
21
—
—
—
21
Gain on asset dispositions and other, net
of impairment
(4
)
—
—
—
(4
)
Program contract payments
(26
)
—
—
—
(26
)
Stock-based compensation
4
—
—
1
5
Adjustments
12
—
—
1
13
Adjusted EBITDA
184
5
(3
)
(3
)
183
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 rate of decline in the number of subscribers to services
provided by traditional multi-channel video programming
distributors; the Company’s ability to generate cash to service its
substantial indebtedness; the successful execution of outsourcing
agreements; the successful execution of retransmission consent
agreements; the successful execution of network and MVPD
affiliation agreements; the Company’s ability to compete for
viewers and advertisers; pricing and demand fluctuations in local
and national advertising; volatility in programming costs; the
impact of pending and future litigation claims against the Company;
the potential impacts of the war in Ukraine and the COVID-19
pandemic on the Company’s business operations, financial results
and financial position and on the world economy; the market
acceptance of new programming; the Company’s ability to identify
and consummate acquisitions and investments, to manage increased
leverage resulting from acquisitions and investments, and to
achieve anticipated returns on those investments once consummated;
the impact of any loss of key personnel, including talent; material
legal, financial and reputational risks and operational disruptions
resulting from a breach of the Company’s information systems,
including due to the cybersecurity event in October 2021; the
impact of FCC and other regulatory proceedings against the Company;
uncertainties associated with potential changes in the regulatory
environment affecting the Company’s 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.
Category: Financial
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802911286/en/
Investor Contacts: Christopher C. King, VP, Investor Relations
Billie-Jo McIntire, AVP, Investor Relations (410) 568-1500
Media Contact: Sinclair@5wpr.com
Sinclair (NASDAQ:SBGI)
Historical Stock Chart
From May 2024 to Jun 2024
Sinclair (NASDAQ:SBGI)
Historical Stock Chart
From Jun 2023 to Jun 2024