Sinclair, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair,"
today reported financial results for the three and twelve months
ended December 31, 2023.
Highlights:
- Met guidance on all key financial metrics
- Tennis Channel exceeded guidance ranges on all key financial
metrics
- Tennis Channel International acquired WTA rights in India and
Spain
- Repurchased approximately $27 million of principal value of
debt to date in 2024
CEO Comment:
“Sinclair delivered a solid finish to 2023 with our local media
segment meeting guidance and Tennis Channel exceeding
expectations,” said Chris Ripley, Sinclair’s President and Chief
Executive Officer. “During the year and through early January, we
continued our commitment to deleveraging, repurchasing over $91
million in debt principal across all tranches, at an average
discount to par of 19%. This week, the U.S. Bankruptcy Court
approved the previously agreed settlement with Diamond Sports
Group, pending the finalization of certain documentation, that
resolves all of our outstanding DSG-related litigation claims as
well as DSG's reorganization plan which better positions the future
of RSNs - an important asset for pay-TV bundles. The rollout of
NextGen Broadcast technology is progressing well, and now reaches
75% of the U.S. population as of the end of January. With 15
million NextGen TV receivers expected to be deployed in households
by the end of 2024, the industry will soon be able to capitalize on
this significant technical advancement. We are focused on
continuing to drive industry-leading core advertising revenue
growth and net retrans growth, and anticipate another record year
for political advertising revenue to generate strong financial
results in 2024.”
Recent Company
Developments:
Content and Distribution:
- In December, the Company reached an agreement with Verizon to
renew and extend its carriage agreements for all Sinclair
television stations, Tennis Channel and YES Network.
- Through the end of 2023, Sinclair's newsrooms won a total of
276 journalism awards.
- In January, the Company reached an agreement with Fox
Corporation for a multi-year renewal of all Fox affiliations in
Sinclair markets. Sinclair partners also renewed Fox affiliations
in markets where Sinclair provides sales and other services under a
joint sales agreement or master service agreement. The 41 renewed
markets serve approximately 19 million TV households.
- In January, the Company announced that it renewed its
distribution agreement with the National Content & Technology
Cooperative (“NCTC”), a not-for-profit corporation whose members
serve one-third of all broadband and video connected households in
the U.S. and its territories.
Community:
- In January, the Company began accepting applications for the
Sinclair Broadcast Group Diversity Scholarship program for the
2024-25 school year.
Investment Portfolio:
- As of December 31, 2023, the Company estimated the fair market
value of Ventures' minority investment portfolio, which includes
Ventures' cash of $343 million, and investments in real estate,
private equity, and venture capital funds, as well as direct
investments in companies, at approximately $1.2 billion, or
approximately $18 per share.
- During the fourth quarter, Ventures made capital contributions
of approximately $28 million in minority investments and received
distributions, of approximately $1 million.
- In January, Ventures received $34 million in distributions from
minority investments.
- In February, Sinclair Broadcast Group received $26 million in
pre-tax proceeds from the sale of Broadcast Music,
Incorporated.
- In February, the U.S. Bankruptcy Court approved the previously
announced global settlement, pending the finalization of certain
documentation, and the release of all claims associated with the
litigation filed by Diamond Sports Group, LLC (DSG) and DSG’s
wholly-owned subsidiary, Diamond Sports Net, LLC, in July 2023,
which settlement includes an amendment to the Management Services
Agreement between Sinclair Television Group, LLC (STG) and
DSG.
NextGen Broadcasting (ATSC 3.0):
- As of the end of December, the Company launched NextGen
Broadcast in 43 markets, including the recent launch of El Paso,
TX. To date, NextGen Broadcast is available in 74% 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 (the “Deconsolidation”). 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 December 31, 2023
Consolidated Financial Results:
- Total revenues decreased 14% to $826 million versus $960
million in the prior year period. Media revenues decreased 14% to
$821 million versus $952 million in the prior year period.
- Total advertising revenues of $363 million decreased 28% versus
$503 million in the prior year period. Core advertising revenues,
which exclude political revenues, were up 2% in the fourth quarter
to $339 million versus $331 million in the prior year period.
- Distribution revenues of $422 million increased versus $415
million in the prior year period.
- Operating loss of $386 million, including $499 million in
non-recurring transaction, implementation, legal, regulatory and
other costs ("Adjustments"), declined versus an operating income of
$253 million in the prior year period, which included Adjustments
of $10 million. Operating income, excluding Adjustments, was $113
million compared to an operating income, excluding Adjustments, of
$263 million in the prior year period. The Adjustments during the
2023 period include a $495 million litigation settlement accrual
related to the DSG litigation.
- Net loss attributable to the Company was $341 million versus
net income of $55 million in the prior year period. Excluding
Adjustments, the Company had net income of $51 million.
- Adjusted EBITDA decreased 41% to $181 million from $309 million
in the prior year period, primarily due to lower political
advertising revenues in an off-cycle election year.
- Diluted loss per common share was $5.35 as compared to diluted
earnings per common share of $0.79 in the prior year period. On a
per-diluted-share basis, the impact of Adjustments was $(6.16), and
the impact of Adjustments in the prior year period was
$(0.11).
Twelve Months Ended December 31, 2023
Consolidated Financial Results:
- Total revenues decreased 20% to $3,134 million versus $3,928
million in the prior year period. Media revenues decreased 20% to
$3,106 million versus $3,894 million in the prior year period.
Excluding DSG, total revenues decreased 10% from $3,470 million in
the prior year period and media revenues decreased 10% from $3,436
million in the prior year period.
- Total advertising revenues of $1,285 million decreased 20%
versus $1,614 million in the prior year period. Excluding DSG,
total advertising revenues decreased 18% from $1,570 million in the
prior year period. Core advertising revenues, which excludes
political revenues, of $1,241 million, were down 3% versus $1,283
million in the prior year period. Excluding DSG, core advertising
revenues increased less than 1% from $1,238 million in the prior
year period.
- Distribution revenues of $1,680 million decreased versus $2,143
million in the prior year period. Excluding DSG, distribution
revenues decreased 2% from $1,711 million in the prior year
period.
- Operating loss of $331 million, including $554 million of
Adjustments and a reduction to the previously recognized gain
related to the Deconsolidation ("Deconsolidation Gain Adjustment")
of $10 million, declined versus operating income of $3,980 million
in the prior year period, which included Adjustments of $33 million
and a $3,357 million gain related to the Deconsolidation. Operating
income, when excluding the Adjustments and the Deconsolidation Gain
Adjustment, was $233 million compared to operating income,
excluding the Adjustments and gain related to the Deconsolidation,
of $656 million in the prior year period. Excluding DSG, operating
income excluding the Adjustments and the Deconsolidation Gain
Adjustment decreased 65% from $663 million in the prior year
period. The Adjustments during the 2023 period include a $495
million litigation settlement accrual related to the DSG
litigation.
- Net loss attributable to the Company was $291 million versus
net income of $2,652 million in the prior year period. Excluding
Adjustments and the Deconsolidation Gain Adjustment, the Company
had net income of $152 million. Net loss from DSG in the first two
months of 2022 was $94 million.
- Adjusted EBITDA decreased 42% to $549 million from $944 million
in the prior year period, primarily due to lower political
advertising revenues in an off-cycle election year. Adjusted EBITDA
from DSG in the first two months of 2022 was $54 million.
- Diluted loss per common share was $4.46 as compared to diluted
earnings per common share of $37.54 in the prior year period. On a
per-diluted-share basis, the impact of Adjustments and the
Deconsolidation Gain Adjustment was $(6.79) and the impact of
Adjustments and the Deconsolidation in the prior year period was
$36.49.
Segment financial information is included in the following
tables for the periods presented. The Local Media segment consists
primarily of broadcast television stations, which the Company owns,
operates or to which the Company provides services, and includes
multicast networks and original content. The Local Media segment
assets are owned and operated by SBG. The Tennis segment consists
primarily of Tennis Channel, a cable network which includes
coverage of most of tennis' top tournaments and original
professional sport and tennis lifestyle shows; the Tennis Channel
International subscription and streaming service; Tennis Channel
Plus streaming service; T2 FAST, a 24-hours a day free ad-supported
streaming television channel; and Tennis.com. Other includes
non-broadcast digital and internet solutions, technical services,
and other non-media investments. For periods presented subsequent
to the date of the reorganization, the assets of the Tennis segment
and Other are owned and operated by Ventures. The highlights below
include the divestiture of Ring of Honor (May 3, 2022) and Stadium
(May 2, 2023).
Three months ended December 31,
2023
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Distribution revenue
$
373
$
49
$
—
$
—
$
422
Advertising revenue
355
(a)
5
7
(4
)
363
Other media revenue
37
(b)
—
—
(1
)
36
Media revenues
$
765
$
54
$
7
$
(5
)
$
821
Non-media revenue
—
—
7
(2
)
5
Total revenues
$
765
$
54
$
14
$
(7
)
$
826
Media programming and production
expenses
$
377
$
24
$
—
$
(1
)
$
400
Media selling, general and administrative
expenses
180
8
5
(3
)
190
Non-media expenses
2
—
13
(2
)
13
Program contract payments
20
—
—
—
20
Corporate general and administrative
expenses
25
—
3
501
529
Stock-based compensation
3
—
—
5
8
Non-recurring transaction and transition
services, implementation, legal, and regulatory costs(c)
15
—
4
480
499
Adjusted EBITDA(d)
$
179
$
22
$
(3
)
$
(17
)
$
181
Interest expense (net) (e)
$
70
$
—
$
(4
)
$
—
$
66
Capital expenditures
22
—
—
—
22
Distributions to the noncontrolling
interests
2
—
—
—
2
Adjusted Free Cash Flow (f)
$
91
Note: Certain amounts may not summarize to
totals due to rounding differences.
(a)
Includes political advertising revenue of
$24 million.
(b)
Local Media segment other media revenue
includes $13 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)
Non-recurring transaction, implementation,
legal, regulatory and other costs for Corporate of $480 million
include $495 million litigation settlement accrual related to the
DSG litigation, which is partially offset by other items.
(d)
Adjusted EBITDA is defined as earnings
before interest, tax, depreciation and amortization, and
non-recurring transaction, implementation, legal, regulatory and
other costs, as well as certain non-cash items such as stock-based
compensation expense and other gains and losses; less program
contract payments. Refer to the reconciliation on the last page of
this press release and the Company's website. In the above table,
Adjusted EBITDA equals total revenues minus media programming and
production expenses, media selling, general and administrative
expenses, non-media expenses, program contract payments, and
corporate general and administrative expenses; plus stock-based
compensation and non-recurring transaction, implementation, legal,
regulatory and other costs.
(e)
Interest expense (net) excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(f)
Adjusted Free Cash Flow is
defined as Adjusted EBITDA less interest expense (net),
distributions to non-controlling interest holders, cash taxes paid,
and capital expenditures; plus cash distributions received from
equity investments. Refer to the reconciliation on the last page of
this press release and the Company's website.
Three months ended December 31,
2022
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Revenue:
Distribution revenue
$
372
$
43
$
—
$
—
$
415
Advertising revenue
495
(a)
5
8
(5
)
503
Other media revenue
31
(b)
1
3
(1
)
34
Media revenues
$
898
$
49
$
11
$
(6
)
$
952
Non-media revenue
—
—
10
(2
)
8
Total revenues
$
898
$
49
$
21
$
(8
)
$
960
Operating Expenses:
Media programming and production
expenses
$
364
$
16
$
7
(2
)
$
385
Media selling, general and administrative
expenses
190
11
9
(3
)
207
Non-media expenses
3
—
8
(2
)
9
Program contract payments
25
—
—
—
25
Corporate general and administrative
expenses
24
—
—
21
45
Stock-based compensation
6
—
—
4
10
Non-recurring transaction and transition
services, implementation, COVID, legal, and regulatory costs
8
—
—
2
10
Adjusted EBITDA(c)
$
306
$
22
$
(3
)
$
(16
)
$
309
Other Cash Flow Highlights:
Interest expense (net) (d)
$
57
$
—
$
(4
)
$
—
$
53
Capital expenditures
30
—
—
1
31
Distributions to the noncontrolling
interests
3
—
—
—
3
Cash distributions from equity
investments
—
—
23
—
23
Cash taxes received
(156
)
Adjusted Free Cash Flow (e)
$
400
Note: Certain amounts may not summarize to
totals due to rounding differences.
(a)
Includes political advertising revenue of
$172 million.
(b)
Local Media segment other media revenue
includes $12 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, implementation, legal, regulatory and
other costs, as well as certain non-cash items such as stock-based
compensation expense and other gains and losses; 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, implementation, legal,
regulatory and other 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 December 31, 2023 was $4,175 million,
of which $4,160 million is SBG debt and $15 million is Ventures
debt.
- In January, the Company repurchased $27 million of Term B Loans
due 2026 for $25 million in cash.
- Cash and cash equivalents for the Company as of December 31,
2023 was $662 million, of which $319 million is SBG cash and $343
million is Ventures cash.
- As of December 31, 2023, 39.7 million Class A common shares and
23.8 million Class B common shares were outstanding, for a total of
63.5 million common shares.
- In December, the Company paid a quarterly cash dividend of
$0.25 per share.
- Capital expenditures for the fourth quarter of 2023 were $22
million.
Notes:
Certain reclassifications have been made to prior years'
financial information to conform to the presentation in the current
year.
Outlook:
The Company currently expects to achieve the following results
for the three months ending March 31, 2024 and the twelve months
ending December 31, 2024.
For the three months ending March 31,
2024 ($ in millions)
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
Core advertising revenue
$288 to 295
$10 to 11
$6
$(4
)
$300 to 308
Political revenue
22 to 25
—
—
—
22 to 25
Advertising revenue
$310 to 320
$10 to 11
$6
$(4
)
$322 to 333
Distribution revenue
380 to 382
51
—
—
431 to 433
Other media revenue
34
1
—
(1
)
33
Media revenues
$724 to 736
$62 to $63
6
$(5
)
$787 to 800
Non-media revenue
—
—
9
(3
)
6
Total revenues
$724 to 736
$62 to 63
$15
$(8
)
$793 to 806
Media programming & production
expenses and media selling, general and administrative expenses
$569 to 571
$41
$6
$(6
)
$610 to 612
Non-media expenses
2
—
13
(2
)
14
Program contract payments
22
—
—
—
22
Corporate overhead
30
—
—
18
47
Stock-based compensation
15
—
—
5
21
Non-recurring transaction, implementation,
legal, regulatory and other costs
8
—
—
—
8
Adjusted EBITDA(a)
$124 to 135
21 to 22
(4
)
(13
)
$128 to 139
Interest expense (net)(b)
69
—
(4
)
—
65
Total capital expenditures
24 to 26
—
1
—
25 to 27
Distributions to the noncontrolling
interests
2
—
—
—
2
Cash distributions from equity
investments
26
—
43
—
69
Net cash tax payments
1
Adjusted Free Cash Flow(c)
$100 to 114
Note: Certain amounts may not summarize to
totals due to rounding differences.
(a)
Adjusted EBITDA is defined as earnings
before interest, tax, depreciation and amortization, and
non-recurring transaction, implementation, legal, regulatory and
other costs, as well as certain non-cash items such as stock-based
compensation expense and other gains and losses; less program
contract payments. In the above table, Adjusted EBITDA equals total
revenues minus media programming and production expenses, media
selling, general and administrative expenses, non-media expenses,
program contract payments, and corporate general and administrative
expenses; plus stock-based compensation and non-recurring
transaction, implementation, legal, regulatory and other costs.
(b)
Interest expense (net) excludes deferred
financing costs, original issue discount amortization, and other
non-cash interest expense, and is net of interest income.
(c)
Adjusted Free Cash Flow is defined as
Adjusted EBITDA less interest expense (net), distributions to
non-controlling interest holders, cash taxes paid, and capital
expenditures; plus cash distributions received from equity
investments.
For the twelve months ending December
31, 2024 ($ in millions)
Consolidated
Media programming & production
expenses and media selling, general and administrative expenses
$2,483 to 2,502
Non-media expenses
62 to 64
Program contract payments
80
Corporate overhead
155 to 157
Stock based compensation included in
corporate, media, and non-media expenses above
44 to 46
Non-recurring transaction, implementation,
legal, regulatory and other costs included in corporate, media, and
non-media expenses above
37
Interest expense (net)(a)
251 to 252
Total capital expenditures
110 to 117
Distributions to noncontrolling
interests
10 to 12
Cash distributions from equity
investments
73 to 76
Net cash tax payments
127 to 129
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 fourth quarter 2023 results on Wednesday,
February 28, 2024, 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!, TBD., and The Nest;
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 December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
REVENUES:
Media revenues
$
821
$
952
$
3,106
$
3,894
Non-media revenues
5
8
28
34
Total revenues
826
960
3,134
3,928
OPERATING EXPENSES:
Media programming and production
expenses
400
385
1,611
1,942
Media selling, general and administrative
expenses
190
207
747
812
Amortization of program contract costs
21
22
80
90
Non-media expenses
13
9
49
44
Depreciation of property and equipment
25
24
105
100
Corporate general and administrative
expenses
529
45
694
160
Amortization of definite-lived intangible
assets
42
42
166
221
Loss (gain) on deconsolidation of
subsidiary
—
—
10
(3,357
)
(Gain) loss on asset dispositions and
other, net of impairment
(8
)
(27
)
3
(64
)
Total operating expenses (gains)
1,212
707
3,465
(52
)
Operating (loss) income
(386
)
253
(331
)
3,980
OTHER INCOME (EXPENSE):
Interest expense including amortization of
debt discount and deferred financing costs
(78
)
(68
)
(305
)
(296
)
Gain on extinguishment of debt
—
—
15
3
(Loss) income from equity method
investments
(1
)
8
29
56
Other income (expense), net
3
26
(45
)
(129
)
Total other expense, net
(76
)
(34
)
(306
)
(366
)
(Loss) income before income taxes
(462
)
219
(637
)
3,614
INCOME TAX BENEFIT (PROVISION)
122
(157
)
358
(913
)
NET (LOSS) INCOME
(340
)
62
(279
)
2,701
Net (income) loss attributable to the
redeemable noncontrolling interests
—
(6
)
4
(20
)
Net income attributable to the
noncontrolling interests
(1
)
(1
)
(16
)
(29
)
NET (LOSS) INCOME ATTRIBUTABLE TO
SINCLAIR
$
(341
)
$
55
$
(291
)
$
2,652
EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE TO SINCLAIR:
Basic (loss) earnings per share
$
(5.35
)
$
0.79
$
(4.46
)
$
37.54
Diluted (loss) earnings per share
$
(5.35
)
$
0.79
$
(4.46
)
$
37.54
Basic weighted average common shares
outstanding (in thousands)
63,506
69,680
65,125
70,653
Diluted weighted average common and common
equivalent shares outstanding (in thousands)
63,506
69,680
65,125
70,656
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 December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Reconciliation of Net Income to
Adjusted EBITDA
Net (loss) income attributable to
Sinclair
$
(341
)
$
55
$
(291
)
$
2,652
Add: Income (loss) from redeemable
noncontrolling interests
—
6
(4
)
20
Add: Income from noncontrolling
interests
1
1
16
29
Add: Income tax (benefit) provision
(122
)
157
(358
)
913
Add: Other (income) expense
(7
)
(2
)
(4
)
9
Add: Loss (income) from equity method
investments
1
(8
)
(29
)
(56
)
Add: Loss (income) from other investments
and impairments
13
(11
)
91
143
Add: Gain on extinguishment of
debt/insurance proceeds
—
—
(15
)
(3
)
Add: Interest expense
78
68
305
296
Less: Interest income
(9
)
(13
)
(42
)
(23
)
Less: Loss (gain) on deconsolidation of
subsidiary
—
—
10
(3,357
)
Less: (Gain) loss on asset dispositions
and other, net of impairment
(8
)
(27
)
3
(64
)
Add: Amortization of intangible assets
& other assets
42
42
166
221
Add: Depreciation of property &
equipment
25
24
105
100
Add: Stock-based compensation
8
10
50
43
Add: Amortization of program contract
costs
21
22
80
90
Less: Cash film payments
(20
)
(25
)
(88
)
(103
)
Add: Amortization of sports programming
rights
—
—
—
326
Less: Cash sports programming rights
payments
—
—
—
(325
)
Add: Non-recurring transaction,
implementation, legal, regulatory and other costs
499
10
554
33
Adjusted EBITDA
$
181
$
309
$
549
$
944
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Reconciliation of Net Income to
Adjusted Free Cash Flow
Net (loss) income attributable to
Sinclair
$
(341
)
$
55
$
(291
)
$
2,652
Add: Income (loss) from redeemable
noncontrolling interests
—
6
(4
)
20
Add: Income from noncontrolling
interests
1
1
16
29
Less: Distributions to noncontrolling
interests
(2
)
(3
)
(11
)
(11
)
Add: Cash distributions from equity
investments
1
23
45
126
Add: Income tax (benefit) provision
(122
)
157
(358
)
913
Add: Other non-cash (income) expense
(7
)
(3
)
(4
)
11
Add: Loss (income) from equity method
investments
1
(8
)
(29
)
(56
)
Add: Loss (income) from other investments
and impairments
13
(11
)
91
143
Add: Gain on extinguishment of
debt/insurance proceeds
—
—
(15
)
(3
)
Add: Amortization of deferred financing
and bond discounts/premiums
2
2
10
12
Less: Loss (gain) on deconsolidation of
subsidiary
—
—
10
(3,357
)
Less: (Gain) loss on asset dispositions
and other, net of impairment
(8
)
(27
)
3
(64
)
Add: Amortization of intangible assets
& other assets
42
42
166
221
Add: Depreciation of property &
equipment
25
24
105
100
Add: Stock-based compensation
8
10
50
43
Add: Amortization of program contract
costs
21
22
80
90
Less: Cash film payments
(20
)
(25
)
(88
)
(103
)
Less: Capital expenditures
(22
)
(31
)
(92
)
(103
)
Less: Cash taxes received (paid)
—
156
(4
)
140
Add: Amortization of sports programming
rights
—
—
—
326
Less: Cash sports programming rights
payments
—
—
—
(325
)
Add: Non-recurring transaction,
implementation, legal, regulatory and other costs
499
10
554
33
Adjusted Free Cash Flow
$
91
$
400
$
234
$
837
Three months ended December 31,
2023
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Total revenues
$
765
$
54
$
14
$
(7
)
$
826
Media programming and production
expenses
377
24
—
(1
)
400
Media selling, general and administrative
expenses
180
8
5
(3
)
190
Depreciation and amortization expenses
58
6
4
(1
)
67
Amortization of program contract costs
21
—
—
—
21
Corporate general and administrative
expenses
25
—
3
501
529
Non-media expenses
2
—
13
(2
)
13
(Gain) loss on asset dispositions and
other, net of impairment
(9
)
—
2
(1
)
(8
)
Operating income (loss)
$
111
$
16
$
(13
)
$
(500
)
$
(386
)
Reconciliation of GAAP Operating Income
to Adjusted EBITDA:
Operating income (loss)
$
111
$
16
$
(13
)
$
(500
)
$
(386
)
Depreciation and amortization expenses
58
6
4
(1
)
67
Amortization of program contract costs
21
—
—
—
21
(Gain) loss on asset dispositions and
other, net of impairment
(9
)
—
2
(1
)
(8
)
Program contract payments
(20
)
—
—
—
(20
)
Stock-based compensation
3
—
—
5
8
Adjustments
15
—
4
480
499
Adjusted EBITDA
$
179
$
22
$
(3
)
$
(17
)
$
181
Three months ended December 31,
2022
Local Media
Tennis
Other
Corporate and
Eliminations
Consolidated
($ in millions)
Total revenues
$
898
$
49
$
21
$
(8
)
$
960
Media programming and production
expenses
364
16
7
(2
)
385
Media selling, general and administrative
expenses
190
11
9
(3
)
207
Depreciation and amortization expenses
60
5
2
(1
)
66
Amortization of program contract costs
22
—
—
—
22
Corporate general and administrative
expenses
24
—
—
21
45
Non-media expenses
3
—
8
(2
)
9
Gain on asset dispositions and other, net
of impairment
(2
)
—
—
(25
)
(27
)
Operating income (loss)
$
237
$
17
$
(5
)
$
4
$
253
Reconciliation of GAAP Operating Income
to Adjusted EBITDA:
Operating income (loss)
$
237
$
17
$
(5
)
$
4
$
253
Depreciation and amortization expenses
60
5
2
(1
)
66
Amortization of program contract costs
22
—
—
—
22
Gain on asset dispositions and other, net
of impairment
(2
)
—
—
(25
)
(27
)
Program contract payments
(25
)
—
—
—
(25
)
Stock-based compensation
6
—
—
4
10
Adjustments
8
—
—
2
10
Adjusted EBITDA
$
306
$
22
$
(3
)
$
(16
)
$
309
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 and virtual multi-channel video programming
distributors ("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 Distributor affiliation agreements; the Company’s
ability to identify and consummate acquisitions and investments, to
manage increased financial leverage resulting from acquisitions and
investments, and to achieve anticipated returns on those
investments once consummated; the Company’s ability to compete for
viewers and advertisers; pricing and demand fluctuations in local
and national advertising; the appeal of the Company’s programming
and volatility in programming costs; material legal, financial and
reputational risks and operational disruptions resulting from a
breach of the Company’s information systems; the impact of FCC and
other regulatory proceedings against the Company; compliance with
laws and uncertainties associated with potential changes in the
regulatory environment affecting the Company’s business and growth
strategy; the impact of pending and future litigation claims
against the Company; the Company’s limited experience in operating
or investing in non-broadcast related businesses; 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/20240228333753/en/
Investor Contacts: Christopher C. King, VP, Investor Relations
Billie-Jo McIntire, AVP, Investor Relations (410) 568-1500
Media Contact: Sinclair@5wpr.com
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