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Sinclair Broadcast Group(SBGI) - 2025 Q1 - Earnings Call Transcript
2025-05-07 21:32
Sinclair (SBGI) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Company Participants Christopher King - VP - Investor RelationsChristopher Ripley - President & CEORobert Weisbord - COO & President of Local MediaLucy Rutishauser - Executive VP & CFO Conference Call Participants Daniel Kurnos - Equity Research AnalystAaron Watts - Managing Director, Media, Entertainment, Cable, & Satellite Credit AnalystSteven Cahall - Managing Director, Senior Analyst - Media, Advertising & CableBenjamin Soff - AnalystDavid H ...
Sinclair Broadcast Group(SBGI) - 2025 Q1 - Earnings Call Transcript
2025-05-07 21:30
Sinclair (SBGI) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Speaker0 Good day, everyone, and welcome to the Sinclair Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants have been placed on a listen only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Chris King, Vice President of Investor Relations at Sinclair Inc. Sir, the floor is yours. Speaker1 Thank you. Good ...
Sinclair Broadcast Group(SBGI) - 2025 Q1 - Earnings Call Presentation
2025-05-07 20:36
1Q25 Earnings Presentation May 7, 2025 Published by: Sinclair, Inc. 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, implementatio ...
Sinclair Broadcast Group(SBGI) - 2025 Q1 - Quarterly Results
2025-05-07 20:07
[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Sinclair reported solid Q1 2025 results, with Adjusted EBITDA exceeding guidance and a comprehensive refinancing extending debt maturity - Adjusted EBITDA exceeded the high-end of the company's guidance range[3](index=3&type=chunk)[6](index=6&type=chunk) - Core advertising trends are reported to be among the strongest in the industry, despite macro-economic uncertainties[3](index=3&type=chunk) - A comprehensive refinancing was completed in Q1, extending the nearest significant maturity to December 2029 and the weighted average maturity to over six years[3](index=3&type=chunk)[11](index=11&type=chunk) - In April, the company repurchased **$66 million** par value of Sinclair Television Group notes due in 2027 for **$62 million** in cash[6](index=6&type=chunk)[22](index=22&type=chunk) [Recent Company Developments](index=1&type=section&id=Recent%20Company%20Developments) Sinclair secured a YouTube TV distribution deal, earned journalism awards, gained FAA drone authorization, and made strategic investments - Reached a distribution agreement with YouTube TV to continue carriage of Tennis Channel, CHARGE!, Comet, and others, while also adding The Nest and PickleBall TV[7](index=7&type=chunk) - Sinclair's newsrooms won **33 journalism awards** year-to-date, including four national headliner awards[7](index=7&type=chunk) - The FAA accepted Sinclair's Declaration of Compliance, making it the first broadcast company authorized to fly drones over individuals and vehicles for newsgathering without a waiver[7](index=7&type=chunk) - Sinclair Ventures made approximately **$8 million** in minority investments and received distributions of approximately **$10 million** in Q1[8](index=8&type=chunk) - Compulse, a Sinclair subsidiary, completed an acquisition of a digital marketing services company for approximately **$30 million** in cash[11](index=11&type=chunk) [Financial Results (Q1 2025)](index=2&type=section&id=Financial%20Results%20%28Q1%202025%29) Q1 2025 saw total revenues decline 3% to $776 million, a net loss of $156 million, and a 19% decrease in Adjusted EBITDA [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Consolidated revenues decreased 3% to $776 million, resulting in a $156 million net loss and a 19% Adjusted EBITDA decline Q1 2025 vs Q1 2024 Consolidated Financials | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $776M | $798M | -3% | | Total Advertising Revenues | $298M | $321M | -7% | | - Core Advertising | $292M | $297M | -2% | | Distribution Revenues | $451M | $436M | +3% | | Operating Income | $14M | $42M | -67% | | Net (Loss) Income | ($156M) | $23M | N/A | | Adjusted EBITDA | $112M | $139M | -19% | | Diluted (Loss) EPS | ($2.30) | $0.35 | N/A | [Segment Financial Results](index=3&type=section&id=Segment%20Financial%20Results) Local Media revenue and Adjusted EBITDA declined, while Tennis segment revenue increased with a slight EBITDA decrease Q1 2025 Segment Results ($ in millions) | Segment | Total Revenues | Adjusted EBITDA | | :--- | :--- | :--- | | Local Media | $694 | $103 | | Tennis | $68 | $23 | | Other | $21 | $0 | | Corporate/Elim. | $(7) | $(13) | | **Consolidated** | **$776** | **$112** | Q1 2024 Segment Results ($ in millions) | Segment | Total Revenues | Adjusted EBITDA | | :--- | :--- | :--- | | Local Media | $727 | $131 | | Tennis | $63 | $25 | | Other | $15 | $(3) | | Corporate/Elim. | $(7) | $(14) | | **Consolidated** | **$798** | **$139** | [Consolidated Balance Sheet and Cash Flow Highlights](index=5&type=section&id=Consolidated%20Balance%20Sheet%20and%20Cash%20Flow%20Highlights) As of March 31, 2025, Sinclair reported **$4.191 billion** in total debt, **$631 million** in cash, and repurchased **$66 million** of notes post-quarter Balance Sheet & Cash Flow Highlights (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Total Company Debt | $4,191 million | | Cash and Cash Equivalents | $631 million | | - SBG Cash | $277 million | | - Ventures Cash | $354 million | | Total Common Shares Outstanding | 69.5 million | | Q1 2025 Dividend Paid | $0.25 per share | | Q1 2025 Capital Expenditures | $16 million | [Outlook (Q2 2025 & FY 2025)](index=6&type=section&id=Outlook%20%28Q2%202025%20%26%20FY%202025%29) Sinclair projects Q2 2025 consolidated revenues between **$787M-$807M** and Adjusted EBITDA between **$91M-$107M**, with full-year expense guidance Q2 2025 Outlook ($ in millions) | Metric | Guidance Range | | :--- | :--- | | Total Revenues | $787 to $807 | | Adjusted EBITDA | $91 to $107 | | Operating Income | $13 to $29 | | Capital Expenditures | $20 to $22 | Full Year 2025 Outlook (Selected Items, $ in millions) | Metric | Guidance Range | | :--- | :--- | | Interest Expense (net) | $357 | | Capital Expenditures | $83 to $86 | | Net Cash Tax Payments | $117 to $124 | [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents preliminary unaudited consolidated statements of operations for Q1 2025 and Q1 2024, detailing revenues, expenses, and net loss [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues decreased 3% to $776 million, with operating income falling to $14 million and a net loss of $156 million Unaudited Consolidated Statements of Operations (in millions) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $776 | $798 | | Total operating expenses | $762 | $756 | | **Operating income** | **$14** | **$42** | | Total other expense, net | $(214) | $(21) | | (Loss) income before income taxes | $(200) | $21 | | **Net (Loss) Income Attributable to Sinclair** | **$(156)** | **$23** | | **Diluted earnings per share** | **$(2.30)** | **$0.35** | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides detailed reconciliations of non-GAAP measures, including consolidated and segment Adjusted EBITDA, to their GAAP equivalents [Reconciliation of Consolidated Net Income to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Consolidated%20Net%20Income%20to%20Adjusted%20EBITDA) Q1 2025 net loss of **$154 million** is reconciled to Adjusted EBITDA of **$112 million** by adding back non-cash and non-operating items Reconciliation of Net (Loss) Income to Adjusted EBITDA (in millions) | Reconciliation Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(154) | $25 | | Add: Income tax benefit | (46) | (4) | | Add: Interest expense | 144 | 76 | | Add: Depreciation & Amortization | 62 | 63 | | Add: Stock-based compensation | 21 | 28 | | Add: Other adjustments | 85 | (25) | | **Adjusted EBITDA** | **$112** | **$139** | [Reconciliation of Segment Operating Income to Segment Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Segment%20Operating%20Income%20to%20Segment%20Adjusted%20EBITDA) Segment operating income for Local Media and Tennis is reconciled to Adjusted EBITDA for Q1 2025 and Q1 2024 Q1 2025 Segment Reconciliation (in millions) | Segment | Segment Operating Income (Loss) | Segment Adjusted EBITDA | | :--- | :--- | :--- | | Local Media | $12 | $103 | | Tennis | $18 | $23 | | Other | $(1) | $0 | Q1 2024 Segment Reconciliation (in millions) | Segment | Segment Operating Income (Loss) | Segment Adjusted EBITDA | | :--- | :--- | :--- | | Local Media | $41 | $131 | | Tennis | $20 | $25 | | Other | $(3) | $(3) |
Sinclair: New IoT Capabilities And Refinancing Make It A Buy
Seeking Alpha· 2025-05-01 18:39
Group 1 - Sinclair, Inc. announced a balance sheet refinancing along with a joint venture agreement that may introduce new IoT capabilities [1] - The company's potential to distribute content to vehicles via ATSC 3.0 could enhance future growth opportunities [1] Group 2 - The article reflects a focus on value investments, particularly in companies trading close to 10x earnings and offering dividend yields [1] - The research primarily targets small and mid-cap companies across various regions including the United States, Canada, South America, UK, France, and Germany [1]
Drs. Jeffrey Lieberman, M.D. and David Sinclair, Ph.D.
GlobeNewswire News Room· 2025-03-07 22:09
Core Insights - The presentation titled "The New Frontier of Longevity Science: Living Well Beyond Your Years" will be led by Dr. Jeffrey A. Lieberman and Dr. David A. Sinclair, focusing on advances in longevity science and the potential to extend human lifespan beyond 100 years while maintaining quality of life [2][3] Group 1: Presentation Details - The event will take place on March 10, 2025, from 2:30 p.m. to 3:30 p.m. at the JW Marriott Austin as part of SXSW 2025's Health & MedTech Track [3] - Following the presentation, Dr. Lieberman will sign copies of his book "Malady of the Mind: Schizophrenia and the Path to Prevention" at the SXSW Bookstore [4] Group 2: Speakers' Backgrounds - Dr. Jeffrey A. Lieberman is a clinical neuroscientist and psychiatrist known for his research on brain disorders and mental illness, with over 800 scientific articles published and cited more than 100,000 times [5] - Dr. David A. Sinclair is a Professor of Genetics at Harvard Medical School, recognized for his research on aging and age-related diseases, with over 180 peer-reviewed articles published and cited over 97,000 times [6][8] Group 3: Key Topics of Discussion - The presentation will cover pivotal advancements in medicine, including human genome sequencing and the discovery of Sirtuin genes, which have made altering the aging process scientifically plausible [7] - It will also discuss holistic strategies and pharmaceutical therapies aimed at enhancing health and targeting aging at the cellular level [7] - Enhanced therapeutic strategies for brain longevity will be explored, including techniques like transcranial magnetic stimulation and psychedelics [7]
Sinclair Broadcast Group(SBGI) - 2024 Q4 - Earnings Call Transcript
2025-02-27 04:12
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].
Sinclair Broadcast Group(SBGI) - 2024 Q4 - Earnings Call Presentation
2025-02-27 02:41
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 Broadcast Group(SBGI) - 2024 Q4 - Earnings Call Transcript
2025-02-27 02:37
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 ...
Sinclair Broadcast Group(SBGI) - 2024 Q4 - Annual Report
2025-02-26 22:04
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].