Part I – Financial Information [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) The financial statements detail the company's financial position and performance, highlighting decreased equity and a net loss [Condensed Combined Balance Sheets](index=3&type=section&id=ATLANTA%20BRAVES%20HOLDINGS%2C%20INC.%20Condensed%20Combined%20Balance%20Sheets) The balance sheets show increased assets and liabilities, leading to a decrease in total equity as of June 30, 2023 Condensed Combined Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,509,102** | **$1,490,661** | | Cash and cash equivalents | $130,537 | $150,664 | | Total current assets | $264,129 | $267,378 | | **Total Liabilities** | **$1,287,220** | **$1,191,151** | | Total current liabilities | $220,165 | $240,911 | | Long-term debt | $531,490 | $467,160 | | **Total Equity** | **$221,882** | **$299,510** | [Condensed Combined Statements of Operations](index=5&type=section&id=ATLANTA%20BRAVES%20HOLDINGS%2C%20INC.%20Condensed%20Combined%20Statements%20of%20Operations) The statements of operations show a shift from net earnings to a net loss for both periods, despite revenue growth Statement of Operations Summary (in thousands) | Metric | Q2 2023 (in thousands) | Q2 2022 (in thousands) | H1 2023 (in thousands) | H1 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$270,123** | **$250,325** | **$301,095** | **$271,855** | | Baseball Revenue | $254,935 | $236,918 | $272,496 | $246,758 | | Mixed-Use Development Revenue | $15,188 | $13,407 | $28,599 | $25,097 | | **Operating Income (Loss)** | **$19,467** | **$27,561** | **($29,790)** | **($18,679)** | | **Net Earnings (Loss)** | **($28,913)** | **$63,699** | **($86,889)** | **$40,664** | [Condensed Combined Statements of Cash Flows](index=7&type=section&id=ATLANTA%20BRAVES%20HOLDINGS%2C%20INC.%20Condensed%20Combined%20Statements%20of%20Cash%20Flows) The cash flow statements indicate a sharp decrease in operating cash flow and a shift to cash used in investing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $35,892 | $98,028 | | Net cash provided by (used in) investing activities | ($29,590) | $34,264 | | Net cash provided by (used in) financing activities | $3,455 | ($104,434) | | **Net increase (decrease) in cash** | **$9,757** | **$27,858** | [Notes to Condensed Combined Financial Statements](index=10&type=section&id=ATLANTA%20BRAVES%20HOLDINGS%2C%20INC.%20Notes%20to%20Condensed%20Combined%20Financial%20Statements) The notes provide critical details on the financial statements, including the Split-Off, debt, player contracts, and segment performance - The Split-Off from Liberty Media was completed on July 18, 2023, after the reporting period, creating **Atlanta Braves Holdings, Inc.** as a new public company. The financial statements are prepared on a combined basis of the historical assets and liabilities attributed to the Liberty Braves Group[25](index=25&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk) - The company faces a significant contingency related to the Diamond Sports Group bankruptcy. ANLBC may be required to repay up to **$34.2 million** in payments received prior to the filing and could lose future revenue if the broadcasting agreement is rejected, which would also necessitate a write-down of **$24.4 million** in receivables[103](index=103&type=chunk) - As of June 30, 2023, the company has long-term employment contract commitments, primarily for players, totaling **$1.018 billion**, with **$225.8 million** payable in the remainder of 2023[99](index=99&type=chunk) Segment Revenue and Adjusted OIBDA (Six Months Ended June 30, in thousands) | Segment | Revenue 2023 (in thousands) | Revenue 2022 (in thousands) | Adj. OIBDA 2023 (in thousands) | Adj. OIBDA 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Baseball | $272,496 | $246,758 | $1,878 | $10,581 | | Mixed-Use Development | $28,599 | $25,097 | $19,319 | $16,397 | | **Total** | **$301,095** | **$271,855** | **$11,013** | **$22,841** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting revenue growth offset by rising operating costs, leading to declining Adjusted OIBDA, with sufficient liquidity [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Total revenue increased across segments, but operating income and Adjusted OIBDA declined due to rising baseball operating costs - Baseball revenue increased by **$17.3 million** for the six months ended June 30, 2023, driven by higher ticket demand, attendance, and two additional home games compared to the prior year[128](index=128&type=chunk) - Baseball operating costs rose by **$36.4 million** for the six-month period, primarily due to a **$13.2 million** increase in player salaries and a **$7.5 million** increase in MLB revenue sharing expenses[132](index=132&type=chunk) - Mixed-Use Development revenue grew by **$3.5 million** for the six-month period, mainly from increased rental income due to new leases and higher tenant recoveries[131](index=131&type=chunk) Adjusted OIBDA Change (Six Months Ended June 30, 2023 vs 2022, in thousands) | Segment | H1 2023 Adj. OIBDA (in thousands) | H1 2022 Adj. OIBDA (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Baseball | $1,878 | $10,581 | ($8,703) | | Mixed-Use Development | $19,319 | $16,397 | $2,922 | | Corporate and Other | ($10,184) | ($4,137) | ($6,047) | | **Total** | **$11,013** | **$22,841** | **($11,828)** | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash, operating cash flow, and credit facilities to fund projected uses, including player contracts and capital expenditures - The company's primary uses of cash are debt service and capital expenditures, funded by cash on hand and cash from operations[148](index=148&type=chunk) - Projected uses of cash include payments for long-term player employment agreements, real estate investments, and debt service[149](index=149&type=chunk) - The company has access to significant liquidity through multiple credit facilities, including the MLB League Wide Credit Facility (**$125 million** capacity), the MLB Facility Fund Revolver (**$43.1 million** capacity), and the TeamCo Revolver (**$150 million** capacity)[151](index=151&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure on variable debt, managed through a mix of fixed and variable rates and swaps Debt Structure by Interest Rate Type (as of June 30, 2023) | Debt Type | Principal Amount (in millions) | Weighted Avg. Interest Rate | | :--- | :--- | :--- | | Floating Rate Debt | $50.2 million | 6.7% | | Fixed Rate Debt | $492.6 million | 4.4% | [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[158](index=158&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[159](index=159&type=chunk) Part II – Other Information [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 7 of the financial statements for details on legal proceedings, including the Diamond Sports Group bankruptcy - The report directs readers to Note 7 of the financial statements for details on legal proceedings[160](index=160&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company incorporates by reference risk factors from its S-4 Registration Statement, pertaining to business operations and the recent Split-Off - Risk factors are not detailed in this 10-Q but are incorporated by reference from the company's S-4 Registration Statement (File No. 333-268922)[161](index=161&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - There were no unregistered sales of equity securities or use of proceeds in the quarter[162](index=162&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the fiscal quarter - No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter[162](index=162&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including reorganization agreements and certifications - A list of exhibits filed with the report is provided, including agreements related to the Split-Off and required SEC certifications[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)