Sinclair Reports Third Quarter 2024 Financial Results
Sinclair (Nasdaq: SBGI) reported its Q3 2024 financial results, showing a 20% increase in total revenues to $917 million compared to the prior year. Media revenues also rose by 20% to $908 million. Total advertising revenues surged by 42% to $433 million, with core advertising revenues growing by 1% year-over-year to $295 million. Political advertising revenues reached $138 million, a 31% increase over 2020. Distribution revenues rose by 5% to $434 million.
The company achieved an adjusted EBITDA of $249 million, up 72% from the previous year. Operating income increased to $179 million from $37 million, while net income attributable to Sinclair was $94 million, reversing a net loss of $46 million in the prior year. Diluted EPS was $1.43, up from a loss of $0.74 per share.
For the first nine months of 2024, total revenues increased by 10% to $2.544 billion, with adjusted EBITDA up 45% to $546 million. The company expects full-year adjusted EBITDA to increase by 54% to 56% year-over-year.
Sinclair (Nasdaq: SBGI) ha riportato i risultati finanziari per il terzo trimestre del 2024, mostrando un aumento del 20% dei ricavi totali che hanno raggiunto i 917 milioni di dollari rispetto all'anno precedente. I ricavi dei media sono aumentati del 20% a 908 milioni di dollari. I ricavi pubblicitari totali sono aumentati del 42% a 433 milioni di dollari, con i ricavi pubblicitari core che sono cresciuti dell'1% su base annua, raggiungendo i 295 milioni di dollari. I ricavi pubblicitari politici hanno raggiunto i 138 milioni di dollari, un incremento del 31% rispetto al 2020. I ricavi da distribuzione sono saliti del 5% a 434 milioni di dollari.
L'azienda ha registrato un EBITDA rettificato di 249 milioni di dollari, con un aumento del 72% rispetto all'anno precedente. L'utile operativo è aumentato a 179 milioni di dollari, rispetto ai 37 milioni di dollari precedenti, mentre l'utile netto attribuibile a Sinclair è stato di 94 milioni di dollari, invertendo una perdita netta di 46 milioni di dollari dell'anno precedente. L'EPS diluito è stato di 1,43 dollari, in aumento rispetto a una perdita di 0,74 dollari per azione.
Per i primi nove mesi del 2024, i ricavi totali sono aumentati del 10% a 2,544 miliardi di dollari, con un EBITDA rettificato che è aumentato del 45% a 546 milioni di dollari. L'azienda si aspetta che l'EBITDA rettificato dell'intero anno aumenti tra il 54% e il 56% rispetto all'anno precedente.
Sinclair (Nasdaq: SBGI) informó sobre sus resultados financieros del tercer trimestre de 2024, mostrando un aumento del 20% en los ingresos totales alcanzando los 917 millones de dólares en comparación con el año anterior. Los ingresos de medios también crecieron un 20% a 908 millones de dólares. Los ingresos publicitarios totales se dispararon un 42% a 433 millones de dólares, mientras que los ingresos publicitarios principales crecieron un 1% interanual hasta los 295 millones de dólares. Los ingresos por publicidad política alcanzaron los 138 millones de dólares, un incremento del 31% respecto a 2020. Los ingresos por distribución aumentaron un 5% a 434 millones de dólares.
La compañía logró un EBITDA ajustado de 249 millones de dólares, un 72% más que el año anterior. El ingreso operativo aumentó a 179 millones de dólares desde 37 millones, mientras que el ingreso neto atribuido a Sinclair fue de 94 millones de dólares, revertiendo una pérdida neta de 46 millones de dólares del año anterior. El EPS diluido fue de 1,43 dólares, en comparación con una pérdida de 0,74 dólares por acción.
Durante los primeros nueve meses de 2024, los ingresos totales aumentaron un 10% a 2.544 millones de dólares, con un EBITDA ajustado que subió un 45% a 546 millones de dólares. La empresa espera que el EBITDA ajustado del año completo aumente entre el 54% y el 56% interanualmente.
Sinclair (Nasdaq: SBGI)는 2024년 3분기 재무 실적을 보고하며, 총 수익이 20% 증가하여 9억 1,700만 달러에 달했다고 발표했습니다. 미디어 수익도 20% 증가하여 9억 800만 달러에 도달했습니다. 총 광고 수익은 42% 급증하여 4억 3,300만 달러였으며, 핵심 광고 수익은 전년 대비 1% 증가하여 2억 9,500만 달러에 달했습니다. 정치 광고 수익은 1억 3,800만 달러에 도달하여 2020년 대비 31% 증가했습니다. 배급 수익은 5% 증가하여 4억 3,400만 달러에 달했습니다.
회사는 조정된 EBITDA가 2억 4,900만 달러로 전년 대비 72% 증가했다고 전했습니다. 운영 소득은 3,700만 달러에서 1억 7,900만 달러로 증가했으며, Sinclair에 귀속된 순이익은 9,400만 달러로, 전년도에 기록된 4,600만 달러의 순손실을 만회했습니다. 희석 주당 순이익(EPS)은 1.43달러로, 주당 0.74달러의 손실에서 증가했습니다.
2024년 첫 9개월 동안 총 수익은 10% 증가하여 25억 4,400만 달러에 이르렀고, 조정된 EBITDA는 45% 증가하여 5억 4,600만 달러에 달했습니다. 회사는 연간 조정된 EBITDA가 전년 대비 54%에서 56% 증가할 것으로 예상하고 있습니다.
Sinclair (Nasdaq: SBGI) a publié ses résultats financiers pour le troisième trimestre de 2024, montrant une augmentation de 20% des revenus totaux, atteignant 917 millions de dollars par rapport à l'année précédente. Les revenus des médias ont également augmenté de 20% pour atteindre 908 millions de dollars. Les revenus publicitaires totaux ont grimpé de 42% pour atteindre 433 millions de dollars, tandis que les revenus publicitaires principaux ont connu une augmentation de 1% d'une année sur l'autre, atteignant 295 millions de dollars. Les revenus de la publicité politique ont atteint 138 millions de dollars, soit une augmentation de 31% par rapport à 2020. Les revenus de distribution ont augmenté de 5% pour atteindre 434 millions de dollars.
La société a enregistré un EBITDA ajusté de 249 millions de dollars, en hausse de 72% par rapport à l'année précédente. Le résultat d'exploitation a augmenté à 179 millions de dollars, contre 37 millions de dollars, tandis que le résultat net attribuable à Sinclair était de 94 millions de dollars, inversant une perte nette de 46 millions de dollars de l'année précédente. Le BPA dilué était de 1,43 dollar, en hausse par rapport à une perte de 0,74 dollar par action.
Pour les neuf premiers mois de 2024, les revenus totaux ont augmenté de 10% pour atteindre 2,544 milliards de dollars, avec un EBITDA ajusté en hausse de 45% à 546 millions de dollars. L'entreprise s'attend à ce que l'EBITDA ajusté annuel augmente de 54% à 56% d'une année sur l'autre.
Sinclair (Nasdaq: SBGI) hat seine Finanzzahlen für das 3. Quartal 2024 veröffentlicht und zeigt einen Umsatzanstieg von 20% auf 917 Millionen Dollar im Vergleich zum Vorjahr. Die MediEinnahmen stiegen ebenfalls um 20% auf 908 Millionen Dollar. Die gesamten Werbeeinnahmen stiegen um 42% auf 433 Millionen Dollar, während die Kernerträge für Werbeumsätze um 1% im Jahresvergleich auf 295 Millionen Dollar wuchsen. Die politischen Werbeeinnahmen erreichten 138 Millionen Dollar, was einem Anstieg von 31% gegenüber 2020 entspricht. Die Vertriebseinnahmen stiegen um 5% auf 434 Millionen Dollar.
Das Unternehmen erzielte ein bereinigtes EBITDA von 249 Millionen Dollar, was einem Anstieg von 72% gegenüber dem Vorjahr entspricht. Der Betriebsgewinn stieg auf 179 Millionen Dollar von 37 Millionen Dollar, während der den Sinclair zuzurechnende Nettogewinn 94 Millionen Dollar betrug, nachdem im Vorjahr ein Nettoverlust von 46 Millionen Dollar verzeichnet wurde. Der verwässerte Gewinn pro Aktie (EPS) betrug 1,43 Dollar, nach einem Verlust von 0,74 Dollar pro Aktie.
Für die ersten neun Monate des Jahres 2024 stiegen die Gesamteinnahmen um 10% auf 2,544 Milliarden Dollar, während das bereinigte EBITDA um 45% auf 546 Millionen Dollar anstieg. Das Unternehmen erwartet, dass das bereinigte EBITDA im Gesamtjahr im Vergleich zum Vorjahr um 54% bis 56% steigen wird.
- Total revenues increased by 20% to $917 million.
- Media revenues rose by 20% to $908 million.
- Total advertising revenues surged by 42% to $433 million.
- Political advertising revenues increased by 31% to $138 million.
- Distribution revenues rose by 5% to $434 million.
- Adjusted EBITDA increased by 72% to $249 million.
- Operating income increased to $179 million from $37 million.
- Net income attributable to Sinclair was $94 million, reversing a net loss of $46 million.
- Diluted EPS was $1.43, compared to a loss of $0.74 per share.
- Core advertising revenues grew by only 1% year-over-year.
Highlights:
-
Solid third quarter results, with core advertising revenues growing by
1% year-over-year during a quarter with record political revenues -
Political revenues of
$138 million 31% increase over 2020 levels, which was impacted by$5 million -
Approximately
$406 $26 million -
Distribution revenues in the third quarter up
5% year-over-year as78% of our Big 4 network MVPD linear subscriber base are now subject to new retransmission consent agreements this year - Third Quarter adjusted EBITDA in-line with guidance range
-
Full-year adjusted EBITDA guidance range reflects a year-over-year increase of
54% to56%
CEO Comment:
"Sinclair delivered solid third quarter results, as core advertising revenues grew by
Recent Company Developments:
Content and Distribution:
- In August and September, the Company expanded its podcast division, launching a new slate of sports programming featuring top athletes, coaches, and experts including “The Triple Option,” hosted by Urban Meyer, Mark Ingram II, and Rob Stone and “Throwbacks” with Matt Leinart and Jerry Ferrara. The podcasts have both consistently ranked among Apple's top-10 sports podcasts.
-
In October, the Company announced the launch of a soccer-focused podcast, "Unfiltered Soccer with Landon and Tim," featuring former
U.S. soccer stars Landon Donovan and Tim Howard. - In the third quarter, the Company entered into a multi-year renewal with Altice USA for continued carriage of Sinclair's broadcast stations, Tennis Channel, and the YES Network on Altice's Optimum and Suddenlink owned systems.
- In the third quarter, the Company entered into a multi-year renewal with DIRECTV for continued carriage of Sinclair’s broadcast stations, Tennis Channel, Marquee Sports Network, and the YES Network across DIRECTV, DIRECTV Stream and U-verse.
- In October, the Company launched the Rip City Television Network, a network of Sinclair affiliates throughout the Pacific Northwest to serve as the new television home of Trail Blazers starting with the 2024-25 season.
- Year-to-date, Sinclair's newsrooms have won a total of 196 journalism awards, including 24 RTDNA Regional Edward R. Murrow Awards for Outstanding Journalism and 24 regional Emmy awards.
Community:
-
In October, the Company ran Sinclair Cares: Hurricane Relief, a fundraising partnership with the Salvation Army and The United Way to assist with humanitarian relief efforts on the ground in
Western North Carolina ,South Carolina ,Georgia ,Florida ,Virginia andTennessee in the aftermath of Hurricanes Helene and Milton. Including Sinclair's corporate donation of$50,000 $1.3 million
Investment Portfolio:
-
During the third quarter, Sinclair Ventures, LLC (Ventures) made investments of approximately
$7 million $5 million
Financial Results:
Three Months Ended September 30, 2024 Consolidated Financial Results:
-
Total revenues increased
20% to$917 million $767 million 20% to$908 million $758 million -
Total advertising revenues of
$433 million 42% versus$304 million $295 million $293 million -
Distribution revenues of
$434 million $414 million -
Operating income of
$179 million $37 million -
Net income attributable to the Company was
$94 million $46 million -
Adjusted EBITDA increased
72% to$249 million $145 million -
Diluted earnings per common share was
$1.43 $0.74
Nine Months Ended September 30, 2024 Consolidated Financial Results:
-
Total revenues increased
10% to$2,544 million $2,308 million 10% to$2,519 million $2,285 million -
Total advertising revenues of
$1,097 million 19% versus$922 million $895 million 1% versus$902 million -
Distribution revenues of
$1,305 million $1,258 million -
Operating income of
$285 million $55 million -
Net income attributable to the Company was
$134 million $50 million -
Adjusted EBITDA increased
45% to$546 million $377 million -
Diluted earnings per common share was
$2.05 $0.75
Segment financial information is included in the following tables for the periods presented. The Local Media segment consists primarily of broadcast television stations, which the Company owns, operates or to which the Company provides services, and includes multicast networks and original content. The Local Media segment assets are owned and operated by Sinclair Broadcast Group, LLC (SBG). The Tennis segment consists primarily of Tennis Channel, a cable network which includes coverage of most of tennis' top tournaments and original professional sport and tennis lifestyle shows; the Tennis Channel International subscription and streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com. Other includes non-broadcast digital solutions, technical services, and other non-media investments. For periods presented subsequent to June 1, 2023 (the date of the reorganization), the assets of the Tennis segment and Other are owned and operated by Ventures.
Three months ended September 30, 2024 |
Local
|
|
Tennis |
|
Other |
|
Corporate
|
|
Consolidated |
||||||||
($ in millions) |
|
|
|
|
|||||||||||||
Distribution revenue |
$ |
383 |
|
$ |
51 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
434 |
|
Core advertising revenue |
|
283 |
|
|
8 |
|
|
9 |
|
|
|
(5 |
) |
|
|
295 |
|
Political advertising revenue |
|
138 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
138 |
|
Other media revenue |
|
41 |
|
|
1 |
|
|
— |
|
|
|
(1 |
) |
|
|
41 |
|
Media revenues |
$ |
845 |
|
$ |
60 |
|
$ |
9 |
|
|
$ |
(6 |
) |
|
$ |
908 |
|
Non-media revenue |
|
— |
|
|
— |
|
|
10 |
|
|
|
(1 |
) |
|
|
9 |
|
Total revenues |
$ |
845 |
|
$ |
60 |
|
$ |
19 |
|
|
$ |
(7 |
) |
|
$ |
917 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Media programming and production expenses |
$ |
384 |
|
$ |
30 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
414 |
|
Media selling, general and administrative expenses |
|
188 |
|
|
13 |
|
|
6 |
|
|
|
(6 |
) |
|
|
201 |
|
Non-media expenses |
|
2 |
|
|
— |
|
|
12 |
|
|
|
— |
|
|
|
14 |
|
Amortization of program costs |
|
18 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
Corporate general and administrative expenses |
|
24 |
|
|
1 |
|
|
1 |
|
|
|
15 |
|
|
|
41 |
|
Stock-based compensation |
|
8 |
|
|
— |
|
|
— |
|
|
|
3 |
|
|
|
11 |
|
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
7 |
|
|
— |
|
|
2 |
|
|
|
— |
|
|
|
9 |
|
Interest expense (net)(a) |
|
74 |
|
|
— |
|
|
(5 |
) |
|
|
— |
|
|
|
69 |
|
Capital expenditures |
|
17 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Distributions to the noncontrolling interests |
|
3 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Cash distributions from equity investments |
|
— |
|
|
— |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Net cash taxes paid |
|
|
|
|
|
|
|
|
|
1 |
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
|
|
|
|
|
|
|
96 |
|||||||
Operating income (loss) |
|
182 |
|
|
11 |
|
|
1 |
|
|
|
(15 |
) |
|
|
179 |
|
Adjusted EBITDA(b) |
|
244 |
|
|
16 |
|
|
2 |
|
|
|
(13 |
) |
|
|
249 |
|
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 September 30, 2023 |
Local
|
|
Tennis |
|
Other |
|
Corporate
|
|
Consolidated |
||||||||
($ in millions) |
|
|
|
|
|||||||||||||
Distribution revenue |
$ |
365 |
|
$ |
49 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
414 |
|
Core advertising revenue |
|
281 |
|
|
9 |
|
|
6 |
|
|
|
(3 |
) |
|
|
293 |
|
Political advertising revenue |
|
11 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
11 |
|
Other media revenue |
|
40 |
|
|
1 |
|
|
— |
|
|
|
(1 |
) |
|
|
40 |
|
Media revenues |
$ |
697 |
|
$ |
59 |
|
$ |
6 |
|
|
$ |
(4 |
) |
|
$ |
758 |
|
Non-media revenue |
|
— |
|
|
— |
|
|
11 |
|
|
|
(2 |
) |
|
|
9 |
|
Total revenues |
$ |
697 |
|
$ |
59 |
|
$ |
17 |
|
|
$ |
(6 |
) |
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Media programming and production expenses |
$ |
371 |
|
$ |
29 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
400 |
|
Media selling, general and administrative expenses |
|
164 |
|
|
11 |
|
|
5 |
|
|
|
(4 |
) |
|
|
176 |
|
Non-media expenses |
|
3 |
|
|
— |
|
|
13 |
|
|
|
(1 |
) |
|
|
15 |
|
Corporate general and administrative expenses |
|
31 |
|
|
1 |
|
|
1 |
|
|
|
12 |
|
|
|
45 |
|
Stock-based compensation |
|
6 |
|
|
— |
|
|
— |
|
|
|
1 |
|
|
|
7 |
|
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
22 |
|
|
— |
|
|
2 |
|
|
|
1 |
|
|
|
25 |
|
Interest expense (net)(a) |
|
71 |
|
|
— |
|
|
(4 |
) |
|
|
— |
|
|
|
67 |
|
Capital expenditures |
|
30 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
30 |
|
Distributions to the noncontrolling interests |
|
1 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Cash distributions from equity investments |
|
— |
|
|
— |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
Net cash taxes paid |
|
|
|
|
|
|
|
|
|
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
|
|
|
|
|
|
|
|
(45 |
) |
||||||
Operating income (loss) |
|
53 |
|
|
13 |
|
|
(7 |
) |
|
|
(22 |
) |
|
|
37 |
|
Adjusted EBITDA(b) |
|
138 |
|
|
18 |
|
|
— |
|
|
|
(11 |
) |
|
|
145 |
|
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 September 30, 2024 was
$4,131 million -
Cash and cash equivalents for the Company as of September 30, 2024 was
$536 million $202 million $334 million - As of September 30, 2024, 42.6 million Class A common shares and 23.8 million Class B common shares were outstanding, for a total of 66.4 million common shares.
-
In September, the Company paid a quarterly cash dividend of
$0.25 -
Capital expenditures for the third quarter of 2024 were
$17 million
Notes:
Certain reclassifications have been made to prior years' financial information to conform to the presentation in the current year.
Outlook:
The Company currently expects to achieve the following results for the three months ending December 31, 2024 and the twelve months ending December 31, 2024.
For the three months ending December 31, 2024 ($ in millions) |
Local Media |
|
Tennis |
|
Other |
|
Corporate
|
Consolidated |
||||
Core advertising revenue |
|
|
|
|
|
|
|
|
) |
|
||
Political advertising revenue |
204 |
|
— |
|
— |
|
|
— |
|
204 |
||
Advertising revenue |
|
|
|
|
|
|
|
|
) |
|
||
Distribution revenue |
386 to 388 |
|
49 |
|
— |
|
|
— |
|
436 to 438 |
||
Other media revenue |
38 |
|
1 |
|
— |
|
|
(1 |
) |
38 |
||
Media revenues |
|
|
|
|
|
|
|
|
) |
|
||
Non-media revenue |
— |
|
— |
|
12 |
|
|
— |
|
12 |
||
Total revenues |
|
|
|
|
|
|
|
|
) |
|
||
|
|
|
|
|
|
|
|
|
||||
Media programming & production expenses and media selling, general and administrative expenses |
|
|
|
|
|
|
|
|
) |
|
||
Non-media expenses |
2 |
|
— |
|
13 |
|
|
— |
|
15 |
||
Amortization of program costs |
19 |
|
— |
|
— |
|
|
— |
|
19 |
||
Corporate general and administrative |
24 |
|
— |
|
1 |
|
|
13 |
|
39 |
||
Stock-based compensation |
6 |
|
— |
|
— |
|
|
— |
|
6 |
||
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
7 |
|
— |
|
1 |
|
|
— |
|
8 |
||
|
|
|
|
|
|
|
|
|
||||
Interest expense (net)(a) |
67 |
|
— |
|
(4 |
) |
|
— |
|
63 |
||
Capital expenditures |
27 |
|
1 |
|
4 |
|
|
— |
|
32 |
||
Distributions to the noncontrolling interests |
3 |
|
— |
|
4 |
|
|
— |
|
7 |
||
Cash distributions from equity investments |
— |
|
— |
|
36 |
|
|
— |
|
36 |
||
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) | Local Media |
|
Tennis |
Other |
Corporate
|
Consolidated |
||||||
Core advertising revenue |
|
|
|
|
|
|
|
) |
|
|||
Political advertising revenue |
406 |
|
— |
|
— |
|
— |
|
406 |
|||
Advertising revenue |
|
|
|
|
|
|
|
) |
|
|||
Distribution revenue |
1,538 to 1,540 |
|
203 |
|
— |
|
— |
|
1,740 to 1,742 |
|||
Other media revenue |
155 |
|
4 |
|
— |
|
(6 |
) |
153 |
|||
Media revenues |
|
|
|
|
|
|
|
) |
|
|||
Non-media revenue |
— |
|
— |
|
42 |
|
(5 |
) |
37 |
|||
Total revenues |
|
|
|
|
|
|
|
) |
|
|||
|
|
|
|
|
|
|
|
|||||
Media programming & production expenses and media selling, general and administrative expenses |
|
|
|
|
|
|
|
) |
|
|||
Non-media expenses |
8 |
|
— |
|
49 |
|
(3 |
) |
54 |
|||
Amortization of program costs |
74 |
|
— |
|
— |
|
— |
|
74 |
|||
Corporate general and administrative |
118 |
|
2 |
|
3 |
|
65 |
|
188 |
|||
Stock-based compensation |
48 |
|
1 |
|
1 |
|
5 |
|
55 |
|||
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
32 |
|
— |
|
3 |
|
6 |
|
41 |
|||
|
|
|
|
|
|
|
|
|||||
Interest expense (net)(a) |
281 |
|
— |
|
(15 |
) |
— |
|
265 |
|||
Capital expenditures |
87 |
|
2 |
|
4 |
|
— |
|
93 |
|||
Distributions to the noncontrolling interests |
11 |
|
— |
|
4 |
|
— |
|
15 |
|||
Cash distributions from equity investments |
26 |
|
— |
|
199 |
|
— |
|
224 |
|||
Net cash tax payments |
|
|
|
|
|
|
3 |
|||||
|
|
|
|
|
|
|
|
|||||
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. |
|
Sinclair Conference Call:
The senior management of Sinclair will hold a conference call to discuss the Company's third quarter 2024 results on Wednesday, November 6, 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 791357.
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
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
REVENUES: |
|
|
|
|
|
|
|
||||||||
Media revenues |
$ |
908 |
|
|
$ |
758 |
|
|
$ |
2,519 |
|
|
$ |
2,285 |
|
Non-media revenues |
|
9 |
|
|
|
9 |
|
|
|
25 |
|
|
|
23 |
|
Total revenues |
|
917 |
|
|
|
767 |
|
|
|
2,544 |
|
|
|
2,308 |
|
|
|
|
|
|
|
|
|
||||||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
||||||||
Media programming and production expenses |
|
414 |
|
|
|
400 |
|
|
|
1,247 |
|
|
|
1,211 |
|
Media selling, general and administrative expenses |
|
201 |
|
|
|
176 |
|
|
|
591 |
|
|
|
557 |
|
Amortization of program costs |
|
18 |
|
|
|
18 |
|
|
|
55 |
|
|
|
59 |
|
Non-media expenses |
|
14 |
|
|
|
15 |
|
|
|
39 |
|
|
|
36 |
|
Depreciation of property and equipment |
|
26 |
|
|
|
24 |
|
|
|
76 |
|
|
|
80 |
|
Corporate general and administrative expenses |
|
41 |
|
|
|
45 |
|
|
|
149 |
|
|
|
165 |
|
Amortization of definite-lived intangible assets |
|
37 |
|
|
|
42 |
|
|
|
113 |
|
|
|
124 |
|
Loss on deconsolidation of subsidiary |
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
10 |
|
(Gain) loss on asset dispositions and other, net of impairment |
|
(13 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
11 |
|
Total operating expenses |
|
738 |
|
|
|
730 |
|
|
|
2,259 |
|
|
|
2,253 |
|
Operating income |
|
179 |
|
|
|
37 |
|
|
|
285 |
|
|
|
55 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
||||||||
Interest expense including amortization of debt discount and deferred financing costs |
|
(78 |
) |
|
|
(77 |
) |
|
|
(230 |
) |
|
|
(227 |
) |
Gain on extinguishment of debt |
|
— |
|
|
|
4 |
|
|
|
1 |
|
|
|
15 |
|
Income from equity method investments |
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
30 |
|
Other income (expense), net |
|
24 |
|
|
|
(21 |
) |
|
|
22 |
|
|
|
(48 |
) |
Total other expense, net |
|
(54 |
) |
|
|
(94 |
) |
|
|
(115 |
) |
|
|
(230 |
) |
Income (loss) before income taxes |
|
125 |
|
|
|
(57 |
) |
|
|
170 |
|
|
|
(175 |
) |
INCOME TAX (PROVISION) BENEFIT |
|
(29 |
) |
|
|
12 |
|
|
|
(30 |
) |
|
|
236 |
|
NET INCOME (LOSS) |
|
96 |
|
|
|
(45 |
) |
|
|
140 |
|
|
|
61 |
|
Net loss attributable to the redeemable noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Net income attributable to the noncontrolling interests |
|
(2 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
(15 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO SINCLAIR |
$ |
94 |
|
|
$ |
(46 |
) |
|
$ |
134 |
|
|
$ |
50 |
|
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR: |
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
1.43 |
|
|
$ |
(0.74 |
) |
|
$ |
2.06 |
|
|
$ |
0.75 |
|
Diluted earnings per share |
$ |
1.43 |
|
|
$ |
(0.74 |
) |
|
$ |
2.05 |
|
|
$ |
0.75 |
|
Basic weighted average common shares outstanding (in thousands) |
|
66,355 |
|
|
|
63,325 |
|
|
|
65,570 |
|
|
|
65,670 |
|
Diluted weighted average common and common equivalent shares outstanding (in thousands) |
|
66,526 |
|
|
|
63,325 |
|
|
|
65,709 |
|
|
|
65,727 |
|
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
|
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of Consolidated Sinclair, Inc. Net Income to Consolidated Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
96 |
|
|
$ |
(45 |
) |
|
$ |
140 |
|
|
$ |
61 |
|
Add: Income tax provision (benefit) |
|
29 |
|
|
|
(12 |
) |
|
|
30 |
|
|
|
(236 |
) |
Add: Other (income) expense |
|
(3 |
) |
|
|
6 |
|
|
|
(29 |
) |
|
|
3 |
|
Add: Income from equity method investments |
|
— |
|
|
|
— |
|
|
|
(92 |
) |
|
|
(30 |
) |
Add: (Income) loss from other investments and impairments |
|
(15 |
) |
|
|
25 |
|
|
|
30 |
|
|
|
78 |
|
Add: Gain on extinguishment of debt/insurance proceeds |
|
— |
|
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(15 |
) |
Add: Interest expense |
|
78 |
|
|
|
77 |
|
|
|
230 |
|
|
|
227 |
|
Less: Interest income |
|
(6 |
) |
|
|
(10 |
) |
|
|
(21 |
) |
|
|
(33 |
) |
Less: Loss on deconsolidation of subsidiary |
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
10 |
|
Less: (Gain) loss on asset dispositions and other, net of impairment |
|
(13 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
11 |
|
Add: Amortization of intangible assets & other assets |
|
37 |
|
|
|
42 |
|
|
|
113 |
|
|
|
124 |
|
Add: Depreciation of property & equipment |
|
26 |
|
|
|
24 |
|
|
|
76 |
|
|
|
80 |
|
Add: Stock-based compensation |
|
11 |
|
|
|
7 |
|
|
|
49 |
|
|
|
42 |
|
Add: Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
9 |
|
|
|
25 |
|
|
|
34 |
|
|
|
55 |
|
Adjusted EBITDA |
$ |
249 |
|
|
$ |
145 |
|
|
$ |
546 |
|
|
$ |
377 |
|
Three months ended September 30, 2024 |
Local Media |
|
Tennis |
|
Other |
|||||
($ in millions) |
|
|
||||||||
Total revenues |
$ |
845 |
|
|
$ |
60 |
|
$ |
19 |
|
Media programming and production expenses |
|
384 |
|
|
|
30 |
|
|
— |
|
Media selling, general and administrative expenses |
|
188 |
|
|
|
13 |
|
|
6 |
|
Depreciation and intangible amortization expenses |
|
58 |
|
|
|
5 |
|
|
1 |
|
Amortization of program costs |
|
18 |
|
|
|
— |
|
|
— |
|
Corporate general and administrative expenses |
|
24 |
|
|
|
1 |
|
|
1 |
|
Non-media expenses |
|
2 |
|
|
|
— |
|
|
12 |
|
Gain on asset dispositions and other, net of impairment |
|
(11 |
) |
|
|
— |
|
|
(2 |
) |
Segment operating income |
$ |
182 |
|
|
$ |
11 |
|
$ |
1 |
|
|
|
|
|
|
|
|||||
Reconciliation of Segment GAAP Operating Income to Segment Adjusted EBITDA: |
||||||||||
Segment operating income |
$ |
182 |
|
|
$ |
11 |
|
$ |
1 |
|
Depreciation and intangible amortization expenses |
|
58 |
|
|
|
5 |
|
|
1 |
|
Gain on asset dispositions and other, net of impairment |
|
(11 |
) |
|
|
— |
|
|
(2 |
) |
Stock-based compensation |
|
8 |
|
|
|
— |
|
|
— |
|
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
7 |
|
|
|
— |
|
|
2 |
|
Segment Adjusted EBITDA |
$ |
244 |
|
|
$ |
16 |
|
$ |
2 |
|
Three months ended September 30, 2023 |
Local Media |
|
Tennis |
|
Other |
|||||
($ in millions) |
|
|
||||||||
Total revenues |
$ |
697 |
|
|
$ |
59 |
|
$ |
17 |
|
Media programming and production expenses |
|
371 |
|
|
|
29 |
|
|
— |
|
Media selling, general and administrative expenses |
|
164 |
|
|
|
11 |
|
|
5 |
|
Depreciation and intangible amortization expenses |
|
59 |
|
|
|
5 |
|
|
3 |
|
Amortization of program costs |
|
18 |
|
|
|
— |
|
|
— |
|
Corporate general and administrative expenses |
|
31 |
|
|
|
1 |
|
|
1 |
|
Non-media expenses |
|
3 |
|
|
|
— |
|
|
13 |
|
(Gain) loss on asset dispositions and other, net of impairment |
|
(2 |
) |
|
|
— |
|
|
2 |
|
Segment operating income (loss) |
$ |
53 |
|
|
$ |
13 |
|
$ |
(7 |
) |
|
|
|
|
|
|
|||||
Reconciliation of Segment GAAP Operating Income to Segment Adjusted EBITDA: |
||||||||||
Segment operating income (loss) |
$ |
53 |
|
|
$ |
13 |
|
$ |
(7 |
) |
Depreciation and intangible amortization expenses |
|
59 |
|
|
|
5 |
|
|
3 |
|
(Gain) loss on asset dispositions and other, net of impairment |
|
(2 |
) |
|
|
— |
|
|
2 |
|
Stock-based compensation |
|
6 |
|
|
|
— |
|
|
— |
|
Non-recurring and unusual transaction, implementation, legal, regulatory and other costs |
|
22 |
|
|
|
— |
|
|
2 |
|
Segment Adjusted EBITDA |
$ |
138 |
|
|
$ |
18 |
|
$ |
— |
|
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, or to refinance on attractive terms if at all, 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/20241106722904/en/
Investor Contacts:
Christopher C. King, VP, Investor Relations
Billie-Jo McIntire, AVP, Investor Relations
(410) 568-1500
Media Contact:
jbellucci-c@sbgtv.com
Source: Sinclair, Inc.
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