Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2024 was $330 million, exceeding guidance by $5 million, driven by strong distribution revenue and lower media expenses [12][40]. - Consolidated media revenue increased by 21% year-over-year, primarily due to growth in political and distribution revenues [41]. - Adjusted EBITDA grew by 83% year-over-year in Q4, attributed to higher political and distribution revenues [42]. Business Line Data and Key Metrics Changes - Distribution revenues rose by 5% year-over-year, benefiting from contract renewals [43]. - Core advertising revenue declined by 9% year-over-year, mainly due to political crowd-out effects and macroeconomic pressures [43]. - Tennis Channel revenues increased by 6% year-over-year, with digital advertising revenues more than doubling [44]. Market Data and Key Metrics Changes - Political advertising revenues reached a record $405 million in 2024, doubling 2016 levels and increasing by 16% over the 2023 Georgia runoff total [29]. - The company reported a net retransmission revenue growth of over 5% for 2024, with enhanced visibility due to successful renewals [28][53]. Company Strategy and Development Direction - The company is transitioning towards a multi-platform media organization, emphasizing digital products and strategic solutions for advertisers [25]. - A joint venture with Scripps, Gray, and Nexstar was announced to enhance NextGen broadcast capabilities, aiming for a nationwide spectrum footprint [31][32]. - The company is optimistic about potential deregulation from the FCC, which could facilitate M&A opportunities and enhance growth prospects [34][54]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the political landscape and its impact on advertising revenues, anticipating strong performance in upcoming elections [51][52]. - The company is seeing positive trends in core advertising and expects to leverage its multi-platform strategy for continued growth [52][53]. - Management highlighted the importance of the upcoming transition to ATSC 3.0, which is expected to significantly increase revenue opportunities [66][69]. Other Important Information - The company completed a comprehensive refinancing of its balance sheet, extending maturities and improving leverage metrics [38][39]. - The company donated over $7 million in on-air promotion time and supported more than 400 charitable organizations in 2024 [35]. Q&A Session Summary Question: Will Sinclair be more of a buyer or seller in potential consolidation? - Management indicated flexibility, stating they could act as both a buyer and seller, focusing on maximizing shareholder value [58][62]. Question: What is the expected impact of ATSC 3.0 over the next few years? - Management believes the sunset of ATSC 1.0 will significantly increase revenue opportunities with more spectrum available for content and data casting [66][69]. Question: Can core advertising grow for the full year despite a projected decline in Q1? - Management expressed confidence in turning core advertising positive for the full year, citing improvements in various sectors and consumer confidence [78][80]. Question: How does Sinclair plan to defend its share against digital and CTV in future elections? - Management highlighted the importance of broadcast TV in the political advertising ecosystem, noting an increase in spending compared to previous cycles [85][87]. Question: What are the expectations for net retrans revenues in 2025? - Management expects growth in net retrans revenues due to recent renewals and positive signs on churn, although specific guidance beyond 2025 was not provided [92][100].

February 26, 2025 Published by: Sinclair, Inc. 4Q24 Earnings Presentation 111 NON-GAAP FINANCIAL MEASURES This presentation contains certain financial measures of Sinclair, Inc. (the "Company"), including Adjusted EBITDA, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") (collectively, the "non-GAAP financial measures"). Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual transaction, impleme ...

Sinclair, Inc. (NASDAQ:SBGI) Q4 2024 Earnings Conference Call February 26, 2025 4:30 PM ET Company Participants Chris King - Vice President of Investor Relations Christopher Ripley - President and Chief Executive Officer Robert Weisbord - Chief Operating Officer and President of Local Media Lucy Rutishauser - Executive Vice President and Chief Financial Officer Conference Call Participants Daniel Kurnos - Benchmark Aaron Watts - Deutsche Bank David Hamburger - Morgan Stanley Benjamin Soff - Deutsche Bank Op ...

Media Operations - As of December 31, 2024, Sinclair operates 185 television stations across 86 markets, broadcasting a total of 641 channels, including 235 affiliated with major networks such as FOX, ABC, CBS, NBC, CW, and MyNetworkTV[31]. - Sinclair produces over 2,400 hours of local news weekly across 114 stations, receiving 232 journalism awards in 2024, including 22 regional and two national RTDNA Edward R. Murrow awards[33]. - The local media segment's revenue primarily comes from advertising sales and fees from distributors, with a focus on delivering significant audiences in key demographics[37]. - Political advertising significantly influences operating results, with higher spending observed in even-numbered years due to election cycles, particularly presidential elections[38]. - Sinclair's local media segment includes various networks such as The Nest, Comet, and CHARGE!, expanding its content offerings beyond traditional broadcasting[34]. - Sinclair's strategy focuses on quality local news programming and popular network content to attract national and local advertisers[37]. - Sinclair's local news initiatives are crucial for attracting viewership, with 114 stations producing local news in 72 markets[53]. - The company has entered into local news sharing arrangements that enhance viewer ratings and revenues for participating stations[56]. - Sinclair's sports programming remains highly popular, attracting desirable demographics for advertisers and maintaining strong viewership[60]. - The tennis segment includes the Tennis Channel and various streaming services, generating revenue primarily from distributor fees and advertising[44]. Financial Performance - The local media segment had one customer that accounted for 10% of Sinclair's consolidated revenue in 2024, indicating a significant reliance on key customers[51]. - Local revenues accounted for 59% and 61% of Sinclair's net time sales for the years ended December 31, 2024 and 2023, respectively[63]. - Political advertising represented 26% of local media segment advertising revenue for the year ended December 31, 2024, compared to 4% for the year ended December 31, 2023[179]. - The company relies heavily on advertising revenue, which is subject to volatility based on factors such as economic health and competition from other media[178]. - The company faces significant costs related to network and syndicated programming, which can escalate during a weak advertising market[181]. - The company may lose revenue if the FCC requires modifications or terminations of existing LMAs and JSAs, leading to fewer demographic options and lower audience distribution[195]. - The company’s ability to sell advertising time is influenced by the financial health of underlying advertisers and the popularity of its programming[179]. Corporate Structure and Strategy - The company underwent a reorganization on June 1, 2023, transitioning from a corporation to a limited liability company, with Sinclair becoming the publicly traded parent company[27]. - Following the reorganization, Sinclair Holdings became the intermediate holding company, and certain assets were transferred to Sinclair Ventures, LLC, including marketing technology and the Tennis Channel[28]. - Sinclair aims to enhance its digital presence by selling digital advertisements and providing digital marketing services across multiple platforms[37]. - The company aims to develop new business models, including online sales and streaming content, to enhance traditional broadcasting[68]. - The company has diversified investments in real estate, venture capital, and technology-driven companies, indicating a broad investment strategy[49]. Regulatory Environment - The FCC adopted the 2018 Ownership Order, extending the Top-Four Prohibition, which became effective on March 18, 2024, and is currently under appeal[88]. - Local Marketing Agreements (LMAs) are exempt from attribution until further FCC action, but if the exemption is eliminated, the company may need to terminate or modify existing LMAs[89]. - The FCC's rules require broadcasters to pay a fee of 5% of gross revenues from any DTV ancillary or supplementary service for which there is a subscription fee[96]. - The FCC's syndicated exclusivity rules allow local broadcast television stations to demand that cable operators black out syndicated non-network programming carried on distant signals[95]. - The FCC is currently reviewing the Local Radio Ownership Rule, the Local Television Ownership Rule, and the Dual Network Rule as part of the 2022 Quadrennial Regulatory Review[100]. - The company faces potential risks from antitrust regulation as the DOJ and FTC scrutinize ownership concentration within markets, including LMAs and outsourcing agreements[91]. - Regulatory approvals from the FCC may restrict Sinclair's ability to consummate future acquisitions and could require divestitures[154]. Employee and Community Engagement - As of December 31, 2024, the company had approximately 7,200 employees, including 580 represented by labor unions[115]. - The company has a strategic approach to talent development, offering on-the-job training and access to a learning platform[119]. - The company maintains a comprehensive benefits package, including a 401(k) plan and three weeks minimum paid time off[124]. - The company actively engages in community service through its Sinclair Cares program, supporting various charitable endeavors[130]. - In 2024, Sinclair partnered with over 400 nonprofit organizations, raising nearly $25 million for various charitable causes[131]. - Sinclair collected over 4.3 million pounds of food, 250,000 diapers, and 300,000 toys for those in need, while donating over $7 million in promotional airtime[131]. - The Diversity Scholarship Fund awarded $56,000 to 12 college students in 2024, with nearly $400,000 distributed since 2013 to support students in the broadcast industry[133]. Technological Innovations - Sinclair's technical services subsidiaries focus on developing NextGen TV technologies and wireless communication solutions[48]. - The implementation and adoption of NextGen TV (ATSC 3.0) is expected to occur over the next two years, with broadcasting already in more than 60 markets[75]. - The company has developed several NextGen Broadcast-related patents for monetization through various channels[76]. - The company continues to seek investments in emerging digital technologies and ad tech to expand its digital capabilities[72]. - The company has invested significantly in the development of the NextGen TV platform, with costs recorded under non-media expenses, but the outcome of this investment remains uncertain[200]. Risks and Challenges - The decline in Distributor service subscribers poses a risk to Sinclair's revenues, as consumers shift to OTT and DTC services[141]. - Future acquisitions and investments may increase financial leverage and present risks related to management focus and market reception[152]. - The company faces intense competition for viewers and advertisers from various media platforms, impacting advertising revenues[155]. - The company is vulnerable to cyber threats, which could disrupt operations and lead to significant financial losses[167]. - The evolving landscape of data privacy laws may require substantial resources for compliance, impacting financial condition and operations[172]. - The company depends on cloud computing services for operations, and any disruption could adversely affect financial results[174]. - The company may incur significant costs related to compliance with new SEC regulations on climate-related disclosures, which could negatively impact operating results[205]. - The company’s high level of debt poses risks, including potential inability to service debt obligations during negative economic conditions[215]. - The company may not generate sufficient cash to service all of its debt, potentially leading to forced actions to satisfy debt obligations[217]. - Failure to make scheduled debt payments could lead to default, with lenders potentially declaring all outstanding principal and interest due[219]. Corporate Governance - The Smiths control approximately 81.9% of the common stock voting rights, allowing them to influence most shareholder votes[210]. - The company is subject to investigations by governmental authorities, which could lead to fines and negatively impact financial condition and operations[187]. - Approximately 580 employees and freelancers are represented by labor unions under collective bargaining agreements, which could lead to potential strikes or work stoppages if agreements are not renewed[176].

Financial Performance - Sinclair's preliminary unaudited Local Media segment media revenues for Q4 2024 are reported, but specific figures are not disclosed yet[6] - The financial closing procedures for Q4 2024 are incomplete, indicating that final results may differ from preliminary estimates[7] - The preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP[7]

Company Overview - Sinclair Inc (NASDAQ: SBGI) is developing new in-depth stories and offering unique links with local communities that smaller competitors cannot provide [1] - The company's business model may benefit from the growing importance of politics [1] Analyst Background - The analysis is provided by an ex-investment banker with approximately 11 years of industry experience [1] - The analyst focuses on value investments, typically targeting companies trading at around 10x earnings with dividend yields [1] - Research coverage includes small and mid-cap companies across the United States, Canada, South America, UK, France, and Germany [1] Analyst Position - The analyst holds a beneficial long position in SBGI shares through stock ownership, options, or other derivatives [2] - The analysis represents the analyst's personal opinions and is not compensated by the company [2]

Financial Performance - In Q3 2024, Sinclair's total revenues increased to $917 million, up 19.5% from $767 million in Q3 2023[278] - Media revenues rose to $845 million in Q3 2024, a 21% increase compared to $697 million in Q3 2023[280] - Political advertising revenue surged by $127 million in Q3 2024, reflecting a significant increase due to the presidential election year[283] - Operating income for Q3 2024 was $179 million, compared to $37 million in Q3 2023, marking a substantial improvement[278] - Net income attributable to Sinclair reached $94 million in Q3 2024, a recovery from a loss of $46 million in Q3 2023[278] - Media revenues for the three months ended September 30, 2024, increased to $845 million, up 21.3% from $697 million in the same period of 2023[307] - Total revenues for the nine months ended September 30, 2024, were $2,322 million, compared to $2,213 million for the same period in 2023, reflecting a growth of 4.9%[307] - Operating income for the three months ended September 30, 2024, was $182 million, significantly higher than $44 million in the same period of 2023[307] - Net income attributable to SBG for the three months ended September 30, 2024, was $80 million, compared to a loss of $22 million in the same period of 2023[307] Revenue Breakdown - Distribution revenue grew by $18 million or 5% in Q3 2024, driven by contractual rate increases despite a decrease in subscribers[281] - Distribution revenue increased by $2 million (4%) and $14 million (10%) for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023[292] - Core advertising revenue decreased by $1 million (11%) for the three months ended September 30, 2024, while remaining flat for the nine months compared to the same period in 2023[293] - Media programming and production expenses increased by $13 million (approximately 8.5%) and $38 million (approximately 10.5%) for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023[286] - Media selling, general and administrative expenses rose by $24 million (approximately 10.5%) for the three months and $35 million (approximately 11.5%) for the nine months ended September 30, 2024, compared to the same periods in 2023[287] - Non-media revenues increased by $3 million (approximately 14%) for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase in broadcast equipment sales[298] Cash Flow and Capital Management - As of September 30, 2024, SBG had net working capital of approximately $238 million, including $202 million in cash and cash equivalents[317] - Sinclair anticipates that existing cash and cash equivalents and cash flow from operations will be sufficient to meet debt service obligations and working capital needs for the next twelve months[321] - Net cash flows from Sinclair's operating activities increased to $226 million for the three months ended September 30, 2024, compared to $50 million in the same period in 2023, driven by higher cash collections related to political revenue and Distributors[325] - For the nine months ended September 30, 2024, net cash flows used in operating activities increased to $(86) million, primarily due to the DSG settlement payment and increased production costs, despite higher cash collections[326] - Net cash flows used in financing activities decreased to $(74) million for the three months ended September 30, 2024, compared to $(111) million in the same period in 2023, primarily due to reduced debt repayment[329] - For the nine months ended September 30, 2024, net cash flows used in financing activities decreased to $(11) million, influenced by the repurchase of outstanding Common Stock and a decrease in debt repayment[330] Corporate Actions and Developments - Sinclair expanded its podcast division with new sports programming in August and September 2024[268] - The company launched the Rip City Television Network in October 2024, enhancing its market presence in the Pacific Northwest[268] - Sinclair declared a quarterly dividend of $0.25 per share in August and November 2024[273] - Sinclair declared a quarterly dividend of $0.25 per share in August 2024 and November 2024, with future dividends subject to the Board's discretion based on various financial factors[331] - Sinclair agreed to a global settlement involving a cash payment of $495 million related to litigation, with $445 million paid in the second quarter of 2024[322] Tax and Accounting - The effective tax rate for the three months ended September 30, 2024, was a provision of 23.0%, compared to a benefit of 20.7% during the same period in 2023[302] - The effective tax rate for the nine months ended September 30, 2024, was a provision of 17.4%, compared to a benefit of 134.3% during the same period in 2023[303] - The effective tax rate for the three months ended September 30, 2024, was a provision of 22.8%, compared to a benefit of 18.9% in the same period of 2023[313] - There were no changes to critical accounting policies and estimates from those disclosed in the previous annual report[339] Investments and Equity - Income from equity method investments recognized a gain of $93 million during the nine months ended September 30, 2024, compared to a gain of $33 million in the same period of 2023[300] - Sinclair and SBG increased estimated contractual amounts owed for network programming rights by $1,592 million, with terms extending into 2027[320]

Financial Data and Key Metrics Changes - The company reported total distribution revenue in line with guidance, with core advertising revenues growing by 1% in Q3, marking the first growth in core advertising during a high political advertising period [8][30] - Adjusted EBITDA for Q3 was $249 million, reflecting a 72% year-over-year increase driven by stronger political and distribution revenues [34][35] - Consolidated media revenues reached $908 million, up 20% year-over-year, primarily due to higher political revenue and distribution revenues [32][46] Business Line Data and Key Metrics Changes - Political advertising revenue for Q3 was $138 million, an all-time high for the quarter, despite $5 million in late cancellations [23][30] - Tennis Channel's media revenues increased by 2% year-over-year, with distribution revenues growing by 4%, although advertising revenues fell by 7% [36] Market Data and Key Metrics Changes - Broadcast market share of viewing minutes increased by 230 basis points over the past two months, driven by live sports content [15][16] - The company noted that broadcast television continues to be a dominant medium for political advertising, with expectations for strong performance in upcoming elections [25][47] Company Strategy and Development Direction - The company is optimistic about the regulatory environment, anticipating modernization of regulations that could facilitate M&A activities [51][63] - Sinclair is focused on leveraging its strong operational performance and the broader broadcast industry's strength to capitalize on future opportunities [47] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of late political ad cancellations but remains optimistic about the upcoming political season and the potential for increased revenues [7][25] - The company expects to finish the year with core advertising down only 2%, which is significantly better than historical declines during political years [40][42] Other Important Information - The company launched two sports-related podcasts that have ranked among Apple's top 10 sports podcasts, indicating a growing interest in digital content [27] - A direct-to-consumer product for the Tennis Channel is set to launch, which is expected to enhance viewership and provide additional revenue streams [29][66] Q&A Session Summary Question: Can you discuss the decision to preannounce on political advertising? - Management explained that shifts in political ad spending led to a lower-than-expected Q4, which was not anticipated based on historical trends [50] Question: Should Sinclair be viewed as a buyer or seller in potential M&A? - Management expressed excitement about the regulatory environment and indicated that the company is open to participating in M&A as a buyer, seller, or merger partner [51] Question: What are the expectations for distribution revenue growth? - Management indicated that there is still room for growth in distribution revenue, with 28% of subscribers yet to renew [52] Question: How are core advertising trends expected to evolve post-election? - Management noted that despite political crowd-out, core advertising is expected to remain stable, supported by strong sports programming [58] Question: Can you provide insights on the regulatory environment and its impact? - Management highlighted the potential for regulatory changes that could benefit the industry, particularly regarding ownership rules [63] Question: What is the outlook for capital allocation and debt management? - Management stated that they are focused on reducing leverage and managing upcoming debt maturities efficiently while exploring M&A opportunities [71][74]

SINCLAIR 111 3Q24 Earnings Presentation November 6, 2024 Published by: Sinclair, Inc. NON-GAAP FINANCIAL MEASURES n Q This presentation contains certain financial measures of Sinclair, Inc. (the "Company"), including Adjusted EBITDA, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") (collectively, the "non-GAAP financial measures"). Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual transact ...

Core Viewpoint - Sinclair (SBGI) reported quarterly earnings of $1.28 per share, significantly exceeding the Zacks Consensus Estimate of $0.89 per share, and showing a turnaround from a loss of $0.30 per share a year ago, indicating strong performance in the current quarter [1][2] Financial Performance - The company achieved revenues of $917 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.98% and reflecting a year-over-year increase from $767 million [2] - Over the last four quarters, Sinclair has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance - Sinclair shares have increased approximately 28.5% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.92 on revenues of $1.02 billion, and for the current fiscal year, it is $4.57 on revenues of $3.58 billion [7] - The trend of estimate revisions for Sinclair is mixed, which may change following the recent earnings report [6] Industry Context - The Media Conglomerates industry, to which Sinclair belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]