Sinclair Reports Second Quarter 2024 Financial Results
Sinclair (Nasdaq: SBGI) reported its Q2 2024 financial results, showcasing impressive performance across various metrics. Total revenues increased by 8% to $829 million compared to $768 million in Q2 2023. Media revenues also saw an 8% rise, reaching $819 million. Notably, total advertising revenues climbed by 11% to $343 million. Distribution revenues grew by 4% to $435 million.
The company achieved an operating income of $64 million, a significant improvement from a $3 million loss in the prior year period. Net income was $17 million, a turnaround from an $89 million loss. Adjusted EBITDA rose by 42% to $158 million.
Sinclair has secured $146 million in political advertising for H2 2024, a substantial increase from $78 million in 2020. The full-year political advertising guidance is now projected to be between $385 million to $410 million, a 10% to 17% growth compared to 2020. The CEO, Chris Ripley, highlighted strong momentum and multiple cash flow drivers for a robust finish to the year.
Sinclair (Nasdaq: SBGI) ha riportato i risultati finanziari del Q2 2024, evidenziando una performance notevole su vari indicatori. Le entrate totali sono aumentate dell'8% raggiungendo 829 milioni di dollari rispetto ai 768 milioni nel Q2 2023. Anche le entrate media hanno registrato un aumento dell'8%, arrivando a 819 milioni. In particolare, le entrate pubblicitarie totali sono aumentate dell'11%, raggiungendo 343 milioni di dollari. Le entrate di distribuzione sono cresciute del 4%, arrivando a 435 milioni.
L'azienda ha ottenuto un reddito operativo di 64 milioni di dollari, un miglioramento significativo rispetto a una perdita di 3 milioni nello stesso periodo dell'anno precedente. Il reddito netto è stato di 17 milioni di dollari, segnando un'inversione rispetto a una perdita di 89 milioni. L'EBITDA rettificato è aumentato del 42%, raggiungendo 158 milioni.
Sinclair ha assicurato 146 milioni di dollari in pubblicità politica per il secondo semestre del 2024, un aumento sostanziale rispetto ai 78 milioni nel 2020. La previsione per la pubblicità politica per l'intero anno è ora stimata tra i 385 milioni e i 410 milioni di dollari, con una crescita del 10% al 17% rispetto al 2020. Il CEO, Chris Ripley, ha sottolineato la forte spinta e i molteplici fattori di flusso di cassa per una chiusura robusta dell'anno.
Sinclair (Nasdaq: SBGI) informó sus resultados financieros del Q2 2024, destacando un desempeño impresionante en varios indicadores. Los ingresos totales aumentaron un 8% alcanzando los 829 millones de dólares en comparación con 768 millones en el Q2 2023. Los ingresos de medios también vieron un incremento del 8%, llegando a 819 millones. Notablemente, los ingresos totales de publicidad subieron un 11%, alcanzando los 343 millones. Los ingresos de distribución crecieron un 4% hasta los 435 millones.
La compañía logró un ingreso operativo de 64 millones de dólares, una mejora significativa de una pérdida de 3 millones en el mismo período del año anterior. El ingreso neto fue de 17 millones, un cambio respecto a una pérdida de 89 millones. El EBITDA ajustado aumentó un 42% hasta 158 millones.
Sinclair ha asegurado 146 millones de dólares en publicidad política para el segundo semestre de 2024, un aumento significativo desde los 78 millones en 2020. La guía de publicidad política para todo el año ahora se proyecta entre 385 millones y 410 millones de dólares, un crecimiento del 10% al 17% en comparación con 2020. El CEO, Chris Ripley, destacó el fuerte impulso y múltiples factores de flujo de efectivo para un cierre robusto del año.
싱클레어 (Nasdaq: SBGI)는 2024년 2분기 재무 실적을 발표하며 다양한 지표에서 인상적인 성과를 보여주었습니다. 총 수익은 2023년 2분기 7억6800만 달러에 비해 8% 증가한 8억2900만 달러에 이르렀습니다. 미디어 수익도 8% 상승하여 8억1900만 달러에 도달했습니다. 특히, 총 광고 수익은 11% 증가하여 3억4300만 달러에 달했습니다. 배급 수익은 4% 증가하여 4억3500만 달러에 이르렀습니다.
회사는 6400만 달러의 운영 소득을 달성했으며, 이는 지난 해 같은 기간에 비해 300만 달러의 손실에서 큰 개선입니다. 순이익은 1700만 달러로, 8900만 달러의 손실에서의 반전입니다. 조정 EBITDA는 42% 증가하여 1억5800만 달러에 이르렀습니다.
싱클레어는 2024년 하반기에 1억4600만 달러의 정치 광고를 확보했으며, 이는 2020년 7800만 달러에 비해 상당한 증가입니다. 연간 정치 광고 가이던스는 이제 3억8500만 달러에서 4억1000만 달러 사이로 예상되며, 이는 2020년에 비해 10%에서 17%의 성장을 나타냅니다. CEO 크리스 립리는 강한 추진력과 견고한 연말 마감을 위한 복수의 현금 흐름 요인을 강조했습니다.
Sinclair (Nasdaq: SBGI) a publié ses résultats financiers pour le deuxième trimestre de 2024, montrant une performance impressionnante sur plusieurs indicateurs. Les revenus totaux ont augmenté de 8 %, atteignant 829 millions de dollars contre 768 millions de dollars au Q2 2023. Les revenus médiatiques ont également connu une augmentation de 8 %, atteignant 819 millions de dollars. Notamment, les revenus publicitaires totaux ont grimpé de 11 %, atteignant 343 millions de dollars. Les revenus de distribution ont augmenté de 4 %, atteignant 435 millions de dollars.
L'entreprise a réalisé un revenu opérationnel de 64 millions de dollars, une amélioration significative par rapport à une perte de 3 millions de dollars au cours de la même période de l'année précédente. Le revenu net s'est établi à 17 millions de dollars, un retournement par rapport à une perte de 89 millions de dollars. L'EBITDA ajusté a augmenté de 42 %, atteignant 158 millions de dollars.
Sinclair a sécurisé 146 millions de dollars en publicité politique pour le second semestre de 2024, une augmentation substantielle par rapport à 78 millions de dollars en 2020. Les prévisions pour la publicité politique pour l'année complète sont désormais projetées entre 385 millions et 410 millions de dollars, une croissance de 10 % à 17 % par rapport à 2020. Le PDG, Chris Ripley, a souligné la forte dynamique et plusieurs moteurs de flux de trésorerie pour une fin d'année robuste.
Sinclair (Nasdaq: SBGI) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und dabei eine beeindruckende Leistung in verschiedenen Kennzahlen gezeigt. Die Gesamteinnahmen stiegen um 8% auf 829 Millionen Dollar im Vergleich zu 768 Millionen Dollar im 2. Quartal 2023. Auch die Medienumsätze verzeichneten einen Anstieg von 8% auf 819 Millionen Dollar. Besonders bemerkenswert ist, dass die gesamten Werbeeinnahmen um 11% auf 343 Millionen Dollar gestiegen sind. Die Einkünfte aus Verteilung wuchsen um 4% auf 435 Millionen Dollar.
Das Unternehmen erzielte ein operatives Einkommen von 64 Millionen Dollar, was eine erhebliche Verbesserung gegenüber einem Verlust von 3 Millionen Dollar im Vorjahreszeitraum darstellt. Der Nettogewinn betrug 17 Millionen Dollar, ein Wendepunkt von einem Verlust von 89 Millionen Dollar. Das bereinigte EBITDA stieg um 42% auf 158 Millionen Dollar.
Sinclair hat 146 Millionen Dollar für politische Werbung für das 2. Halbjahr 2024 gesichert, was einen erheblichen Anstieg gegenüber den 78 Millionen Dollar im Jahr 2020 darstellt. Die Prognose für die politische Werbung für das gesamte Jahr liegt nun zwischen 385 Millionen und 410 Millionen Dollar, was einem Wachstum von 10% bis 17% im Vergleich zu 2020 entspricht. Der CEO, Chris Ripley, hob den starken Schwung und die zahlreichen Cashflow-Treiber für einen robusten Jahresabschluss hervor.
- Total revenues increased by 8% to $829 million.
- Media revenues rose by 8% to $819 million.
- Total advertising revenues up by 11% to $343 million.
- Distribution revenues grew by 4% to $435 million.
- Operating income of $64 million versus a $3 million loss.
- Net income of $17 million versus a $89 million loss.
- Adjusted EBITDA increased by 42% to $158 million.
- Political advertising booked for H2 2024 is $146 million vs $78 million in 2020.
- Political advertising guidance for 2024 increased to $385 million-$410 million, representing 10%-17% growth.
- Core advertising revenues declined by 1% to $600 million for the six months ended June 30, 2024 versus $609 million in the prior year period.
- Net income for the six months ended June 30, 2024 decreased to $40 million from $96 million in the prior year period.
- Diluted earnings per share decreased to $0.61 from $1.43 for the six months ended June 30, 2024.
Highlights:
- Met second quarter Revenue guidance on Distribution and Advertising
- Exceeded second quarter Adjusted EBITDA guidance
-
As of August 1, the Company has booked
$146 million $78 million -
Company increases full-year political advertising guidance to a range of
$385 million $410 million 10% to17% compared to 2020 excluding theGeorgia runoff.
CEO Comment:
"Sinclair delivered solid second-quarter results, meeting our guidance expectations across major financial metrics, including a
Recent Company Developments:
Content and Distribution:
- Year-to-date, Sinclair's newsrooms have won a total of 176 journalism awards, including 24 RTDNA Regional Edward R. Murrow Awards for Outstanding Journalism, 4 National Headliner Awards, and 23 regional Emmy awards.
Community:
-
In June and July, the Company partnered with Feeding America® to coordinate Sinclair Cares: Summer Hunger Relief, an awareness and fundraising campaign to help provide meals to children and families across the
U.S. this summer. -
Also in July, the Company announced that it has awarded scholarships to 12 university students as a part of its annual Diversity Scholarship program. Having provided more than
$370,000
Investment Portfolio:
-
During the second quarter, Ventures made investments of approximately
$26 million $109 million
NextGen Broadcasting (ATSC 3.0):
-
To date, the Company has launched NextGen Broadcast in 45 markets, including the recent launch of
Myrtle Beach -Florence, SC . NextGen Broadcast is now available in over75% of the TV households in Sinclair's licensed footprint.
Financial Results:
Three Months Ended June 30, 2024 Consolidated Financial Results:
-
Total revenues increased
8% to$829 million $768 million 8% to$819 million $761 million -
Total advertising revenues of
$343 million 11% versus$309 million $303 million -
Distribution revenues of
$435 million $418 million -
Operating income of
$64 million $3 million -
Net income attributable to the Company was
$17 million $89 million -
Adjusted EBITDA increased
42% to$158 million $111 million -
Diluted earnings per common share was
$0.27 $1.38
Six Months Ended June 30, 2024 Consolidated Financial Results:
-
Total revenues increased
6% to$1,627 million $1,541 million 6% to$1,611 million $1,527 million -
Total advertising revenues of
$664 million 7% versus$618 million $600 million 1% versus$609 million -
Distribution revenues of
$871 million $844 million -
Operating income of
$106 million $18 million -
Net income attributable to the Company was
$40 million $96 million -
Adjusted EBITDA increased
28% to$297 million $232 million -
Diluted earnings per common share was
$0.61 $1.43
Segment financial information is included in the following tables for the periods presented. The Local Media segment consists primarily of broadcast television stations, which the Company owns, operates or to which the Company provides services, and includes multicast networks and original content. The Local Media segment assets are owned and operated by Sinclair Broadcast Group, LLC (SBG). The Tennis segment consists primarily of Tennis Channel, a cable network which includes coverage of most of tennis' top tournaments and original professional sport and tennis lifestyle shows; the Tennis Channel International subscription and streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com. Other includes non-broadcast digital solutions, technical services, and other non-media investments. For periods presented subsequent to June 1, 2023 (the date of the reorganization), the assets of the Tennis segment and Other are owned and operated by Sinclair Ventures, LLC (Ventures). The highlights below include the divestiture of Stadium (May 2, 2023).
Three months ended June 30, 2024 |
Local Media |
|
Tennis |
|
Other |
|
Corporate and Eliminations |
|
Consolidated |
||||||||||
($ in millions) |
|
|
|
|
|||||||||||||||
Distribution revenue |
$ |
384 |
|
$ |
51 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
435 |
|||
Core advertising revenue |
|
285 |
|
|
14 |
|
|
9 |
|
|
|
(5 |
) |
|
|
303 |
|||
Political advertising revenue |
|
40 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
40 |
|||
Other media revenue |
|
41 |
|
|
2 |
|
|
— |
|
|
|
(2 |
) |
|
|
41 |
|||
Media revenues |
$ |
750 |
|
$ |
67 |
|
$ |
9 |
|
|
$ |
(7 |
) |
|
$ |
819 |
|||
Non-media revenue |
|
— |
|
|
— |
|
|
11 |
|
|
|
(1 |
) |
|
|
10 |
|||
Total revenues |
$ |
750 |
|
$ |
67 |
|
$ |
20 |
|
|
$ |
(8 |
) |
|
$ |
829 |
|||
|
|
|
|
|
|
|
|
|
|
||||||||||
Media programming and production expenses |
$ |
382 |
|
$ |
43 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
425 |
|||
Media selling, general and administrative expenses |
|
178 |
|
|
17 |
|
|
5 |
|
|
|
(6 |
) |
|
|
194 |
|||
Non-media expenses |
|
2 |
|
|
— |
|
|
12 |
|
|
|
(1 |
) |
|
|
13 |
|||
Amortization of program costs |
|
18 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
18 |
|||
Corporate general and administrative expenses |
|
29 |
|
|
— |
|
|
1 |
|
|
|
20 |
|
|
|
50 |
|||
Stock-based compensation |
|
10 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
10 |
|||
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
12 |
|
|
— |
|
|
1 |
|
|
|
6 |
|
|
|
19 |
|||
Interest expense (net)(a) |
|
71 |
|
|
— |
|
|
(3 |
) |
|
|
— |
|
|
|
68 |
|||
Capital expenditures |
|
23 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
23 |
|||
Distributions to the noncontrolling interests |
|
3 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
3 |
|||
Cash distributions from equity investments |
|
— |
|
|
— |
|
|
109 |
|
|
|
— |
|
|
|
109 |
|||
Net cash taxes paid |
|
|
|
|
|
|
|
|
|
1 |
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
|
|
|
|
|
|
|
|
|
19 |
|||||||||
Operating income (loss) |
|
83 |
|
|
1 |
|
|
— |
|
|
|
(20 |
) |
|
|
64 |
|||
Adjusted EBITDA(b) |
|
163 |
|
|
7 |
|
|
3 |
|
|
|
(15 |
) |
|
|
158 |
|||
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. |
(b) |
Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual 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 amortization of program costs. Refer to the reconciliation at the end of this press release and the Company’s website. |
Three months ended June 30, 2023 |
Local Media |
|
Tennis |
|
Other |
|
Corporate and Eliminations |
|
Consolidated |
||||||||||
($ in millions) |
|
|
|
|
|||||||||||||||
Distribution revenue |
$ |
372 |
|
$ |
46 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
418 |
|
||
Core advertising revenue |
|
287 |
|
|
14 |
|
|
6 |
|
|
|
(4 |
) |
|
|
303 |
|
||
Political advertising revenue |
|
6 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
||
Other media revenue |
|
34 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
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 |
|
||
Amortization of program costs |
|
19 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
19 |
|
||
Corporate general and administrative expenses |
|
46 |
|
|
— |
|
|
— |
|
|
|
16 |
|
|
|
62 |
|
||
Stock-based compensation |
|
10 |
|
|
— |
|
|
— |
|
|
|
2 |
|
|
|
12 |
|
||
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
18 |
|
|
— |
|
|
4 |
|
|
|
2 |
|
|
|
24 |
|
||
Interest expense (net)(a) |
|
66 |
|
|
— |
|
|
(5 |
) |
|
|
— |
|
|
|
61 |
|
||
Capital expenditures |
|
19 |
|
|
— |
|
|
1 |
|
|
|
— |
|
|
|
20 |
|
||
Distributions to the noncontrolling interests |
|
4 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
||
Cash distributions from equity investments |
|
— |
|
|
— |
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
||
Net cash taxes paid |
|
|
|
|
|
|
|
|
|
2 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss |
|
|
|
|
|
|
|
|
|
(87 |
) |
||||||||
Operating income (loss) |
|
22 |
|
|
3 |
|
|
(12 |
) |
|
|
(16 |
) |
|
|
(3 |
) |
||
Adjusted EBITDA(b) |
|
115 |
|
|
8 |
|
|
— |
|
|
|
(12 |
) |
|
|
111 |
|
||
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. |
(b) |
Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual 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 amortization of program costs. Refer to the reconciliation at the end 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, 2024 was
$4,143 million $4,127 million $16 million -
Cash and cash equivalents for the Company as of June 30, 2024 was
$378 million $52 million $326 million - As of June 30, 2024, 42.5 million Class A common shares and 23.8 million Class B common shares were outstanding, for a total of 66.3 million common shares.
-
In June, the Company paid a quarterly cash dividend of
$0.25 -
Capital expenditures for the second quarter of 2024 were
$23 million
Notes:
Certain reclassifications have been made to prior years' financial information to conform to the presentation in the current year.
Outlook:
The Company currently expects to achieve the following results for the three months ending September 30, 2024 and the twelve months ending December 31, 2024.
For the three months ending September 30, 2024 ($ in millions) |
Local Media |
|
Tennis |
|
Other |
|
Corporate and Eliminations |
|
Consolidated |
Core advertising revenue |
|
|
|
|
|
|
|
|
|
Political advertising revenue |
113 to 128 |
|
— |
|
— |
|
— |
|
113 to 128 |
Advertising revenue |
|
|
|
|
|
|
|
|
|
Distribution revenue |
381 to 383 |
|
51 |
|
— |
|
— |
|
433 to 435 |
Other media revenue |
41 |
|
1 |
|
— |
|
(1) |
|
41 |
Media revenues |
|
|
|
|
|
|
|
|
|
Non-media revenue |
— |
|
— |
|
10 |
|
— |
|
10 |
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media programming & production expenses and media selling, general and administrative expenses |
|
|
|
|
|
|
|
|
|
Non-media expenses |
2 |
|
— |
|
12 |
|
— |
|
14 |
Amortization of program costs |
18 |
|
— |
|
— |
|
— |
|
18 |
Corporate general and administrative |
23 |
|
— |
|
1 |
|
13 |
|
38 |
Stock-based compensation |
8 |
|
— |
|
— |
|
— |
|
8 |
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
8 |
|
— |
|
2 |
|
— |
|
9 |
|
|
|
|
|
|
|
|
|
|
Interest expense (net)(a) |
71 |
|
— |
|
(3) |
|
— |
|
68 |
Capital expenditures |
24 to 26 |
|
1 |
|
— |
|
— |
|
25 to 27 |
Distributions to the noncontrolling interests |
3 |
|
— |
|
— |
|
— |
|
3 |
Cash distributions from equity investments |
— |
|
— |
|
2 |
|
— |
|
2 |
Net cash tax payments |
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(b) |
|
|
|
|
|
|
|
|
|
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. |
(b) |
Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual 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 amortization of program costs. |
For the twelve months ending December 31, 2024 ($ in millions) |
|
Consolidated |
Media programming & production expenses and media selling, general and administrative expenses |
|
|
Non-media expenses |
|
|
Amortization of program costs |
|
|
Corporate general and administrative |
|
|
Stock based compensation included in corporate, media, and non-media expenses above |
|
|
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs included in corporate, media, and non-media expenses above |
|
|
Interest expense (net)(a) |
|
|
Capital expenditures |
|
|
Distributions to noncontrolling interests |
|
|
Cash distributions from equity investments |
|
|
Net cash tax payments |
|
|
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 2024 results on Wednesday, August 7, 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 355312.
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; and owns Tennis Channel and multicast networks Comet, CHARGE!, TBD., and The Nest. 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, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
REVENUES: |
|
|
|
|
|
|
|
||||||||
Media revenues |
$ |
819 |
|
|
$ |
761 |
|
|
$ |
1,611 |
|
|
$ |
1,527 |
|
Non-media revenues |
|
10 |
|
|
|
7 |
|
|
|
16 |
|
|
|
14 |
|
Total revenues |
|
829 |
|
|
|
768 |
|
|
|
1,627 |
|
|
|
1,541 |
|
|
|
|
|
|
|
|
|
||||||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
||||||||
Media programming and production expenses |
|
425 |
|
|
|
413 |
|
|
|
833 |
|
|
|
811 |
|
Media selling, general and administrative expenses |
|
194 |
|
|
|
190 |
|
|
|
390 |
|
|
|
381 |
|
Amortization of program costs |
|
18 |
|
|
|
19 |
|
|
|
37 |
|
|
|
41 |
|
Non-media expenses |
|
13 |
|
|
|
9 |
|
|
|
25 |
|
|
|
21 |
|
Depreciation of property and equipment |
|
25 |
|
|
|
32 |
|
|
|
50 |
|
|
|
56 |
|
Corporate general and administrative expenses |
|
50 |
|
|
|
62 |
|
|
|
108 |
|
|
|
120 |
|
Amortization of definite-lived intangible assets |
|
38 |
|
|
|
41 |
|
|
|
76 |
|
|
|
82 |
|
Loss on asset dispositions and other, net of impairment |
|
2 |
|
|
|
5 |
|
|
|
2 |
|
|
|
11 |
|
Total operating expenses |
|
765 |
|
|
|
771 |
|
|
|
1,521 |
|
|
|
1,523 |
|
Operating income (loss) |
|
64 |
|
|
|
(3 |
) |
|
|
106 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
||||||||
Interest expense including amortization of debt discount and deferred financing costs |
|
(76 |
) |
|
|
(76 |
) |
|
|
(152 |
) |
|
|
(150 |
) |
Gain on extinguishment of debt |
|
— |
|
|
|
11 |
|
|
|
1 |
|
|
|
11 |
|
Income (loss) from equity method investments |
|
78 |
|
|
|
(1 |
) |
|
|
92 |
|
|
|
30 |
|
Other expense, net |
|
(42 |
) |
|
|
(38 |
) |
|
|
(2 |
) |
|
|
(27 |
) |
Total other expense, net |
|
(40 |
) |
|
|
(104 |
) |
|
|
(61 |
) |
|
|
(136 |
) |
Income (loss) before income taxes |
|
24 |
|
|
|
(107 |
) |
|
|
45 |
|
|
|
(118 |
) |
INCOME TAX (PROVISION) BENEFIT |
|
(5 |
) |
|
|
20 |
|
|
|
(1 |
) |
|
|
224 |
|
NET INCOME (LOSS) |
|
19 |
|
|
|
(87 |
) |
|
|
44 |
|
|
|
106 |
|
Net loss attributable to the redeemable noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Net income attributable to the noncontrolling interests |
|
(2 |
) |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(14 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO SINCLAIR |
$ |
17 |
|
|
$ |
(89 |
) |
|
$ |
40 |
|
|
$ |
96 |
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR: |
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
0.27 |
|
|
$ |
(1.38 |
) |
|
$ |
0.61 |
|
|
$ |
1.44 |
|
Diluted earnings per share |
$ |
0.27 |
|
|
$ |
(1.38 |
) |
|
$ |
0.61 |
|
|
$ |
1.43 |
|
Basic weighted average common shares outstanding (in thousands) |
|
66,189 |
|
|
|
64,012 |
|
|
|
65,172 |
|
|
|
66,862 |
|
Diluted weighted average common and common equivalent shares outstanding (in thousands) |
|
66,189 |
|
|
|
64,012 |
|
|
|
65,296 |
|
|
|
66,947 |
|
Adjusted EBITDA is a non-GAAP operating performance measure that management and the Company’s Board of Directors uses to evaluate the Company’s operating performance and for executive compensation purposes. The Company believes that Adjusted EBITDA provides useful information to investors by allowing them to view the Company’s business through the eyes of management and is a measure that is frequently used by industry analysts, investors and lenders as a measure of relative operating performance.
Adjusted EBITDA is provided on a forward-looking basis under the section entitled “Outlook” above. The Company has not included a reconciliation of projected Adjusted EBITDA to net income, which is the most directly comparable GAAP measure, for the periods presented in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company’s projected Adjusted EBITDA excludes certain items that are inherently uncertain and difficult to predict including, but not limited to, income taxes. Due to the variability, complexity and limited visibility of the adjusting items that would be excluded from projected Adjusted EBITDA in future periods, management does not rely upon them for internal use or measurement of operating performance, and therefore cannot create a quantitative projected Adjusted EBITDA to net income reconciliation for the periods presented without unreasonable efforts. A quantitative reconciliation of projected Adjusted EBITDA to net income for the periods presented would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between projected Adjusted EBITDA to net income for the periods presented will consist of items similar to those described in the reconciliation of historical results below. The timing and amount of any of these excluded items could significantly impact the Company’s net income for a particular period. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis.
In addition to the reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income, below, the Company also discloses a reconciliation of the Adjusted EBITDA of its segments to its more directly comparable GAAP measure, segment operating income.
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. Further discussions and reconciliations of the Company's non-GAAP financial measures to their most directly 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 and Adjusted EBITDA definitional change due to routine SEC comment process |
|||||||||||||||
(in millions) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Reconciliation of Consolidated Sinclair, Inc. Net Income to Consolidated Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
19 |
|
|
$ |
(87 |
) |
|
$ |
44 |
|
|
$ |
106 |
|
Add: Income tax provision (benefit) |
|
5 |
|
|
|
(20 |
) |
|
|
1 |
|
|
|
(224 |
) |
Add: Other expense (income) |
|
2 |
|
|
|
(3 |
) |
|
|
(26 |
) |
|
|
(3 |
) |
Add: (Income) loss from equity method investments |
|
(78 |
) |
|
|
1 |
|
|
|
(92 |
) |
|
|
(30 |
) |
Add: Loss from other investments and impairments |
|
47 |
|
|
|
52 |
|
|
|
45 |
|
|
|
53 |
|
Add: Gain on extinguishment of debt/insurance proceeds |
|
(1 |
) |
|
|
(11 |
) |
|
|
(3 |
) |
|
|
(11 |
) |
Add: Interest expense |
|
76 |
|
|
|
76 |
|
|
|
152 |
|
|
|
150 |
|
Less: Interest income |
|
(6 |
) |
|
|
(11 |
) |
|
|
(15 |
) |
|
|
(23 |
) |
Less: Loss on asset dispositions and other, net of impairment |
|
2 |
|
|
|
5 |
|
|
|
2 |
|
|
|
11 |
|
Add: Amortization of intangible assets & other assets |
|
38 |
|
|
|
41 |
|
|
|
76 |
|
|
|
82 |
|
Add: Depreciation of property & equipment |
|
25 |
|
|
|
32 |
|
|
|
50 |
|
|
|
56 |
|
Add: Stock-based compensation |
|
10 |
|
|
|
12 |
|
|
|
38 |
|
|
|
35 |
|
Add: Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
19 |
|
|
|
24 |
|
|
|
25 |
|
|
|
30 |
|
Adjusted EBITDA |
$ |
158 |
|
|
$ |
111 |
|
|
$ |
297 |
|
|
$ |
232 |
|
Three months ended June 30, 2024 |
Local Media |
|
Tennis |
|
Other |
||||||
($ in millions) |
|
|
|||||||||
Total revenues |
$ |
750 |
|
$ |
67 |
|
$ |
20 |
|||
Media programming and production expenses |
|
382 |
|
|
43 |
|
|
— |
|||
Media selling, general and administrative expenses |
|
178 |
|
|
17 |
|
|
5 |
|||
Depreciation and intangible amortization expenses |
|
58 |
|
|
6 |
|
|
— |
|||
Amortization of program costs |
|
18 |
|
|
— |
|
|
— |
|||
Corporate general and administrative expenses |
|
29 |
|
|
— |
|
|
1 |
|||
Non-media expenses |
|
2 |
|
|
— |
|
|
12 |
|||
Loss on asset dispositions and other, net of impairment |
|
— |
|
|
— |
|
|
2 |
|||
Segment operating income |
$ |
83 |
|
$ |
1 |
|
$ |
— |
|||
|
|
|
|
|
|
||||||
Reconciliation of Segment GAAP Operating Income to Segment Adjusted EBITDA: |
|||||||||||
Segment operating income |
$ |
83 |
|
$ |
1 |
|
$ |
— |
|||
Depreciation and intangible amortization expenses |
|
58 |
|
|
6 |
|
|
— |
|||
Loss on asset dispositions and other, net of impairment |
|
— |
|
|
— |
|
|
2 |
|||
Stock-based compensation |
|
10 |
|
|
— |
|
|
— |
|||
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
12 |
|
|
— |
|
|
1 |
|||
Segment Adjusted EBITDA |
$ |
163 |
|
$ |
7 |
|
$ |
3 |
|||
Three months ended June 30, 2023 |
Local Media |
|
Tennis |
|
Other |
||||||
($ in millions) |
|
|
|||||||||
Total revenues |
$ |
699 |
|
|
$ |
60 |
|
$ |
14 |
|
|
Media programming and production expenses |
|
369 |
|
|
|
40 |
|
|
5 |
|
|
Media selling, general and administrative expenses |
|
175 |
|
|
|
12 |
|
|
6 |
|
|
Depreciation and intangible amortization expenses |
|
67 |
|
|
|
5 |
|
|
1 |
|
|
Amortization of program costs |
|
19 |
|
|
|
— |
|
|
— |
|
|
Corporate general and administrative expenses |
|
46 |
|
|
|
— |
|
|
— |
|
|
Non-media expenses |
|
3 |
|
|
|
— |
|
|
7 |
|
|
(Gain) loss on asset dispositions and other, net of impairment |
|
(2 |
) |
|
|
— |
|
|
7 |
|
|
Segment operating income (loss) |
$ |
22 |
|
|
$ |
3 |
|
$ |
(12 |
) |
|
|
|
|
|
|
|
||||||
Reconciliation of Segment GAAP Operating Income to Segment Adjusted EBITDA: |
|||||||||||
Segment operating income (loss) |
$ |
22 |
|
|
$ |
3 |
|
$ |
(12 |
) |
|
Depreciation and intangible amortization expenses |
|
67 |
|
|
|
5 |
|
|
1 |
|
|
(Gain) loss on asset dispositions and other, net of impairment |
|
(2 |
) |
|
|
— |
|
|
7 |
|
|
Stock-based compensation |
|
10 |
|
|
|
— |
|
|
— |
|
|
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
18 |
|
|
|
— |
|
|
4 |
|
|
Segment Adjusted EBITDA |
$ |
115 |
|
|
$ |
8 |
|
$ |
— |
|
|
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/20240807752862/en/
Investor Contacts:
Christopher C. King, VP, Investor Relations
Billie-Jo McIntire, AVP, Investor Relations
(410) 568-1500
Media Contact:
Sinclair@5wpr.com
Source: Sinclair, Inc.
FAQ
What were Sinclair's total revenues for Q2 2024?
How much did Sinclair's total advertising revenues increase in Q2 2024?
What was Sinclair's operating income for Q2 2024?
How much political advertising has Sinclair booked for H2 2024?
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What was Sinclair's adjusted EBITDA for Q2 2024?
