Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2020 was $736 million, nearly double last year's figure and 15% higher than pro forma Q3 2019, exceeding guidance by 19% [10][35] - Consolidated media revenue increased by 42% or $449 million from Q3 2019, with pro forma media revenues declining by $53 million year-over-year but up 5% excluding distributor rebates [31][32] - Adjusted free cash flow for Q3 was $551 million, $140 million above the high end of guidance, and pro forma free cash flow was $550 million, up $199 million from Q3 2019 [36][37] Business Segment Data and Key Metrics Changes - Broadcast segment media revenues totaled $817 million, exceeding guidance by $12 million, with adjusted EBITDA of $271 million, a $62 million increase year-over-year [40] - Local sports segment media revenues were $727 million, more than double the prior year, with adjusted EBITDA of $464 million, exceeding guidance [41][43] - Political advertising revenue reached approximately $363 million, a 35% increase over the previous record year of 2012, significantly contributing to overall revenue growth [11][39] Market Data and Key Metrics Changes - Subscriber churn improved slightly in Q3 compared to Q2, with broadcast segment churn in mid-single digits and local sports segment churn in high single digits [12][16] - The loss of YouTube and Hulu as distributors impacted subscriber churn and revenue, contributing to a non-cash impairment charge of approximately $4.2 billion in the local sports segment [17][28] Company Strategy and Development Direction - The company is focusing on initiatives to monetize future growth opportunities in legalized sports betting, advertising, and direct-to-consumer distribution [19][22] - Plans to launch a new sports app aimed at enhancing viewer experience and integrating gamification elements are underway, expected to launch in spring [21] - The company is optimistic about the future of sports rights and intends to reinvent RSNs around community engagement and direct-to-consumer models [83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of core advertising revenues post-COVID, citing improvements in traditional MVPDs' subscriber numbers [62] - The company will not provide guidance for 2021 due to uncertainties surrounding COVID and its economic impact [27] - Management remains focused on cost control measures, having reduced OpEx and CapEx expenses significantly during the year [57] Other Important Information - The company estimated a deferred income tax benefit of approximately $1.1 billion related to the impairment loss, which does not affect cash position or cash flow [30] - Consolidated cash at the end of Q3 was $632 million, with total debt at $12.463 billion and a net leverage ratio of 6.5 times [44] Q&A Session Summary Question: Update on subscriber locks and market evolution - Management indicated that YouTube and Hulu represented about 10% of gross distribution revenues, with only 5% of RSN subscribers up for renewal next year [51][52] Question: Insights on Q4 subscriber churn expectations - Management noted that Q4 estimates reflect slight improvement in subscriber churn based on Q3 progress and traditional MVPD disclosures [62] Question: Update on cash flow and debt restructuring options - Management stated they are in a strong liquidity position and are not actively soliciting responses from stakeholders regarding debt restructuring [64] Question: Core advertising environment and auto category performance - Core advertising in Q3 was down mid to high single digits, but there was improvement in the auto category [71][74] Question: Future of distribution deals and RSN strategy - Management clarified that the recent YouTube TV agreement was an anomaly and not indicative of a broader trend in distribution deals [78] Question: Managing costs and media rights agreements - Management emphasized the importance of aligning media rights agreements with variable compensation structures to manage costs effectively [97]

Financial Data and Key Metrics Changes - Consolidated media revenue for Q2 increased to $539 million due to the inclusion of the Local Sports segment, which was not present in the previous year's results [47] - On a pro forma basis, total media revenues were $1.260 billion, down from $1.710 billion year-over-year, primarily due to pandemic-related advertising market weakness and absence of live sports [47][50] - Adjusted EBITDA on a consolidated basis increased 31% to $254 million, but on a pro forma basis, it declined by $391 million [54] - Consolidated adjusted free cash flow was $46 million, which was $79 million below the lower end of guidance [57] - Total debt at the end of Q2 was $12.399 billion, with a net leverage ratio of 6.4 times [68] Business Line Data and Key Metrics Changes - Core advertising for broadcast and other segments declined 36% in Q2, with a significant improvement noted in June, where the decline was 26% [12][50] - Sports segment adjusted EBITDA was $110 million, down from $440 million year-over-year, primarily due to distributor rebate accrual and absence of live games [55][67] - Media revenues for the Sports segment decreased 38% to $616 million compared to pro forma results of $992 million in the previous year [65] Market Data and Key Metrics Changes - Subscriber churn across all segments was 7% year-over-year, slightly higher than previous trends, attributed to COVID-19 impacts [52] - The advertising market showed signs of recovery, with July finishing down 20% compared to the previous year [51] Company Strategy and Development Direction - The company is focused on leveraging growth opportunities in sports betting and enhancing non-game programming to improve viewership and revenue [22][24] - The launch of NEXTGEN TV technology is expected to enhance broadcast quality and provide new monetization opportunities [25][28] - The company has locked up approximately 85% of RSN subscribers for at least two years following a successful agreement with Comcast [29][85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the advertising market and the upcoming political season, which is expected to mitigate weaknesses in core advertising [14][51] - The company acknowledged ongoing challenges due to COVID-19 but remains committed to managing expenses and optimizing capital structure [62][70] Other Important Information - The company has repurchased approximately 19 million shares, representing 21% of total shares outstanding since the beginning of the year [37] - A new headline news service is set to launch in early 2021, focusing on breaking local news stories [34] Q&A Session Summary Question: Improvement in core advertising and COVID impacts - Management noted consistent improvement in core advertising bookings, although they are being booked later than usual due to COVID-19 [77][79] Question: Stability of subscriber base and cord-cutting outlook - Subscriber churn was reported at 7%, with management forecasting similar levels for Q3 due to economic conditions [82] Question: Comcast renewal and distribution percentages - Management confirmed that 85% of RSN subscribers are locked in for two years or more following the Comcast agreement [85] Question: Timing of cash inflows from team rebates - Management clarified that cash inflows from team rebates are expected in Q3 and Q4, while cash outflows to distributors will occur after 2020 [86][89] Question: Liquidity and capital structure management - Management emphasized a commitment to strengthening the capital structure and exploring various options for debt management [91][92] Question: Recent station renewals and retransmission growth outlook - Management refrained from providing full-year guidance on retransmission growth due to market variability [121]

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q1 2020 Results Conference Call May 5, 2020 9:00 AM ET Company Participants Billie Jo McIntire - IR Lucy Rutishauser - EVP & CFO Chris Ripley - President & CEO Rob Weisbord - President, Local News & Marketing Services Jeff Krolik - President, Sports Division Conference Call Participants Aaron Watts - Deutsche Bank Dan Kurnos - The Benchmark Company John Janedis - Wolfe Research Avi Steiner - JP Morgan Davis Hebert - Wells Fargo Steven Cahall - Wells Fargo Operato ...

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q4 2019 Earnings Conference Call February 26, 2020 9:00 AM ET Company Participants Billie Jo McIntire - IR Lucy Rutishauser - SVP & CFO Chris Ripley - President & CEO Rob Weisbord - President, Local News & Marketing Services Jeff Krolik - President, Sports Division Conference Call Participants Aaron Watts - Deutsche Bank Dan Kurnos - The Benchmark Company Zach Silver - B. Riley FBR Kyle Evans - Stephens Davis Hebert - Wells Fargo Steven Cahall - Wells Fargo Opera ...

Financial Data and Key Metrics Changes - Media revenues for Q3 2019 were $1.70 billion, an increase of 47% or $340 million compared to Q3 2018, including a partial quarter of the RSNs [24] - Distribution revenues were $679 million, a 105% increase year-over-year; excluding RSNs, distribution revenues were $373 million, exceeding guidance by $7 million [25] - Total company free cash flow for Q4 is expected to be approximately $177 million to $203 million, with full-year free cash flow guidance of $578 million to $603 million [37][38] - Diluted loss per share was $0.64, or $1.15 of income per share when adjusted for non-recurring transaction fees [36] Business Line Data and Key Metrics Changes - Core advertising revenue in Q3 was better than expected, with pro forma Q4 expected to be up mid to high single digits [15][26] - Digital businesses posted over 30% revenue growth in Q3, with total media revenues for Q4 expected to be approximately $1.565 billion to $1.587 billion, up 84% to 87% compared to Q4 2018 [27] - Media operating expenses in Q3 were $745 million, up 62% from the previous year, primarily due to the RSN acquisition and higher programming costs [28] Market Data and Key Metrics Changes - The company now derives about 70% of its revenues from distribution, which is more stable compared to advertising revenues [12] - Political revenues were $6 million in Q3, with expectations of $15 million to $20 million in Q4, and a total of $26 million to $31 million for the year [26] Company Strategy and Development Direction - The company aims to deepen its commitment to local content, becoming a leading provider of premium live local sports and news [11] - The addition of RSNs is expected to create new revenue streams associated with legalized sports betting [12] - The company is contemplating redeeming a portion of the $1 billion of Diamond Sports Holdings preferred stock to improve free cash flow [17] Management's Comments on Operating Environment and Future Outlook - Management noted that 2020 is expected to be the biggest political ad spending year on record, with strong fundraising by both parties [15] - The company views the DISH blackout as a temporary issue, with expectations of subscriber churn improvement in future reports [14] - Management expressed optimism about the strength of the core advertising environment, driven by pharmaceuticals, attorneys, and insurance sectors [61] Other Important Information - Corporate overhead in Q3 was $237 million, including $94 million in non-recurring transaction fees and a $120 million reserve related to litigation [31] - Total debt at the end of Q3 was $12.5 billion, with cash of $1.4 billion, resulting in a total net leverage of 4.8 times [40] Q&A Session Summary Question: Adjustments to Diamond Sports balance sheet - Management confirmed a $400 million earmarked for a put option related to the YES transaction and discussed evaluating the redemption of preferred stock to generate free cash flow [44] Question: Impact of redeeming preferred stock on future M&A - Management stated that redeeming preferred stock does not preclude participation in further RSN M&A opportunities [46] Question: Drivers of core advertising momentum - Management identified pharmaceuticals, attorneys, and insurance as key drivers of advertising momentum heading into the end of the year [61] Question: Status of negotiations with DISH - Management refrained from specifics but emphasized the strong value proposition of RSNs and the importance of reaching an agreement with DISH [64] Question: Political ad revenue potential in RSNs - Management indicated that they are starting to connect political ad revenue with RSNs and expect substantial increases in ad dollars, especially in hot markets [71] Question: Long-term rights cost growth for the new sports segment - Management expects low to mid single-digit growth for expenses related to RSNs [74]

Financial Data and Key Metrics Changes - Media revenues for Q2 2019 were $721 million, a 4% increase or $24 million higher than Q2 2018, exceeding the low end of guidance [14] - Distribution revenue was $367 million, a 15% increase over the prior year [14] - Political revenues in Q2 were $3 million, down from $28 million in the same quarter last year [15] - Media operating expenses were $500 million, up 11% from the previous year, primarily due to higher reverse retrans fees and growth initiative costs [15] - Adjusted EBITDA for Q2 was $193 million, $11 million higher than the high end of prior guidance [17] - Free cash flow for Q2 was $97 million, exceeding the high end of prior guidance by $27 million [19] Business Line Data and Key Metrics Changes - Core advertising was up low single-digits in Q2, with automotive advertising slightly up [34] - Digital business revenues grew 30% in Q2 compared to the same period last year [36] Market Data and Key Metrics Changes - The pay TV universe saw a very slight decline in subscribers during Q2 [64] - The company expects media revenues for Q3 to be approximately $695 million to $703 million, down 4% to 5% compared to Q3 2018 [37] Company Strategy and Development Direction - The company is working towards the acquisition of RSNs and has successfully closed bond financing for this purpose [9][27] - The company aims to achieve investment-grade leverage in the long term, aligning equity value with diversified media companies [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving net retrans growth in the low teens for 2019 and 2020 [15][60] - The company anticipates 2020 to be the biggest political year on record, with campaigns raising more money than in previous presidential elections [35] Other Important Information - The company has a total debt of $3.788 billion and cash of approximately $929 million as of June 30 [25] - The company has raised significant financing for the RSN acquisition, including $3.050 billion of secured notes and $1.825 billion of unsecured notes [27][28] Q&A Session Summary Question: Why is there no step-up in distribution revenues from Q2 to Q3? - Management explained that AT&T's contract is only partially included in Q2 numbers and that other stations are currently dark [44][45] Question: What is the outlook for core advertising? - Management expects core advertising to be flat to up in Q3, with a positive outlook for the full year [34][57] Question: How are underlying subscribers trending? - There was a very slight decline in the pay TV universe, with growth in virtual subscriptions offsetting declines from satellite providers [64][65] Question: What is the status of the RSN acquisition? - Management stated that there is no financial impact from the current DISH blackout as the company does not own the RSNs yet [102] Question: What are the implications of the STELAR renewal? - Management indicated that the STELAR renewal is not problematic for the industry and should be allowed to expire [105]

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q1 2019 Earnings Conference Call May 8, 2019 9:00 PM ET Company Participants Billie-Jo McIntire - IR Lucy Rutishauser - SVP and CFO Chris Ripley - President and CEO Steve Marks - EVP and COO Rob Weisbord - SVP and Chief Revenue Officer David Amy - Vice Chairman Conference Call Participants Marci Ryvicker - Wolfe Research Alexia Quadrani - J.P Morgan Dan Kurnos - Benchmark Company Zack Silver - B. Riley FBR Kyle Evans - Stephens Inc. Aaron Watts - Deutsche Bank Da ...