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Sinclair Reports Second Quarter 2024 Financial Results

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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.

Positive
  • 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.
Negative
  • 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.

BALTIMORE--(BUSINESS WIRE)-- Sinclair, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair," today reported financial results for the three and 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 in political advertising for the second half of the year through Election Day; this compares to $78 million as of August 1, 2020
  • Company increases full-year political advertising guidance to a range of $385 million to $410 million, representing growth of 10% to 17% compared to 2020 excluding the Georgia runoff.

CEO Comment:

"Sinclair delivered solid second-quarter results, meeting our guidance expectations across major financial metrics, including a $105 million monetization of an investment in our Ventures portfolio," commented Chris Ripley, Sinclair's President and Chief Executive Officer. "Total advertising revenue was up 11% year-over-year and distribution revenues grew by 4%. With almost 60% of our Big 4 subscribers still to be renewed this year, we are confident in our ability to grow net retrans in line with our 2-year CAGR estimates. As we enter the second half of the year, we are buoyed by strong momentum and multiple cash flow drivers. Political advertising revenue is on track to be our largest ever, with expected double-digit growth rates over the 2020 presidential election year. Coupled with growth in distribution revenues, and continued strength in core advertising trends, we are well-positioned for a robust finish to the year."

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 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:

  • During the second quarter, Ventures made investments of approximately $26 million in minority investments and received distributions, including exit payments, of approximately $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 over 75% 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 versus $768 million in the prior year period. Media revenues increased 8% to $819 million versus $761 million in the prior year period.
  • Total advertising revenues of $343 million increased 11% versus $309 million in the prior year period. Core advertising revenues, which exclude political revenues, were $303 million, in line with the prior year period.
  • Distribution revenues of $435 million increased versus $418 million in the prior year period.
  • Operating income of $64 million increased versus an operating loss of $3 million in the prior year period.
  • Net income attributable to the Company was $17 million versus net loss of $89 million in the prior year period.
  • Adjusted EBITDA increased 42% to $158 million from $111 million in the prior year period.
  • Diluted earnings per common share was $0.27 as compared to diluted loss per common share of $1.38 in the prior year period.

Six Months Ended June 30, 2024 Consolidated Financial Results:

  • Total revenues increased 6% to $1,627 million versus $1,541 million in the prior year period. Media revenues increased 6% to $1,611 million versus $1,527 million in the prior year period.
  • Total advertising revenues of $664 million increased 7% versus $618 million in the prior year period. Core advertising revenues, which excludes political revenues, of $600 million were down 1% versus $609 million in the prior year period.
  • Distribution revenues of $871 million increased versus $844 million in the prior year period.
  • Operating income of $106 million increased versus operating income of $18 million in the prior year period.
  • Net income attributable to the Company was $40 million versus net income of $96 million in the prior year period.
  • Adjusted EBITDA increased 28% to $297 million from $232 million in the prior year period.
  • Diluted earnings per common share was $0.61 as compared to diluted earnings per common share of $1.43 in the prior year period.

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, of which $4,127 million is SBG debt and $16 million is Ventures debt.
  • Cash and cash equivalents for the Company as of June 30, 2024 was $378 million, of which $52 million is SBG cash and $326 million is Ventures cash.
  • 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 per share.
  • 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

$288 to 300

 

$10

 

$9

 

$(5)

 

$302 to 315

Political advertising revenue

113 to 128

 

 

 

 

113 to 128

Advertising revenue

$401 to 428

 

$10

 

$9

 

$(5)

 

$415 to 443

Distribution revenue

381 to 383

 

51

 

 

 

433 to 435

Other media revenue

41

 

1

 

 

(1)

 

41

Media revenues

$823 to 852

 

$63

 

$9

 

$(7)

 

$889 to 919

Non-media revenue

 

 

10

 

 

10

Total revenues

$823 to 852

 

$63

 

$19

 

$(7)

 

$898 to 929

 

 

 

 

 

 

 

 

 

 

Media programming & production expenses and media selling, general and administrative expenses

$569 to 574

 

$49

 

$6

 

$(7)

 

$618 to 623

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

$153 to 178

 

$8

 

$(1) to 0

 

$(13)

 

$148 to 173

Adjusted EBITDA(b)

$227 to 252

 

$13

 

$1 to 2

 

$(13)

 

$229 to 254

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

 

$2,471 to 2,481

Non-media expenses

 

$55

Amortization of program costs

 

$74

Corporate general and administrative

 

$182

Stock based compensation included in corporate, media, and non-media expenses above

 

$54

Non-recurring and unusual transaction, implementation, legal, regulatory and other costs included in corporate, media, and non-media expenses above

 

$42

Interest expense (net)(a)

 

$266

Capital expenditures

 

$93 to 98

Distributions to noncontrolling interests

 

$10

Cash distributions from equity investments

 

$189

Net cash tax payments

 

$6 to 10

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

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?

Sinclair's total revenues for Q2 2024 were $829 million, an 8% increase from $768 million in Q2 2023.

How much did Sinclair's total advertising revenues increase in Q2 2024?

Sinclair's total advertising revenues increased by 11% to $343 million in Q2 2024.

What was Sinclair's operating income for Q2 2024?

Sinclair's operating income for Q2 2024 was $64 million, compared to an operating loss of $3 million in the prior year period.

How much political advertising has Sinclair booked for H2 2024?

Sinclair has booked $146 million in political advertising for H2 2024.

What is Sinclair's full-year political advertising guidance for 2024?

Sinclair's full-year political advertising guidance for 2024 is between $385 million and $410 million.

What was Sinclair's adjusted EBITDA for Q2 2024?

Sinclair's adjusted EBITDA for Q2 2024 increased by 42% to $158 million.

Sinclair, Inc.

NASDAQ:SBGI

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