Analyst's Disclosure: I/we have a beneficial long position in the shares of EVC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Positions held in EVC and GTN stock, couldn't get the disclosure I select to list both stocks. Seeking Alpha's Disclosure: Past performance is ...

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **High Yield (HY) Telecom, Cable, and Media** sectors, highlighting the competitive landscape and investment needs that are affecting credit outlooks across these industries [11][67]. Core Insights and Arguments 1. **Cautious Outlook for HY Telecom and Cable**: The overall outlook for HY telecom and cable remains cautious due to intense competition and significant investment needs, which are expected to keep leverage elevated [11][67]. 2. **Media Sector Pressures**: The HY media sector faces secular pressures such as cord-cutting and macroeconomic uncertainties that may adversely impact advertising revenues this year [11][12]. 3. **Credit Spread Risks**: Risks to credit spreads are skewed to the downside, prompting recommendations for more defensive sector trades while identifying attractive relative-value buying opportunities [12][67]. 4. **CHTR HY/IG Differential**: Expectations for the CHTR HY/IG differential to decompress in 2025, with a recommendation to sell certain CHTR bonds while buying others to capitalize on this shift [14][17]. 5. **Debt Issuance and Leverage**: CHTR is projected to issue approximately $1.1 billion in net debt this year, with year-end 2025 pro forma net leverage expected to be around 4.25x [17]. 6. **Potential M&A Activity**: The call suggests that ATUS/CSCHLD might benefit from potential M&A activity, with recommendations to buy lower-dollar guaranteed notes [18][21]. 7. **SATS Opportunities**: SATS is highlighted for refinancing prospects and spectrum valuation, with specific trade recommendations for secured and unsecured notes [22][27]. 8. **LUMN's Mass Markets Segment**: A potential sale of LUMN's Mass Markets segment is seen as a catalyst for the company, with a valuation of approximately $6.6 billion [31][30]. 9. **SBGI vs. GTN Leverage**: SBGI's net leverage is expected to increase more significantly than GTN's in 2025, with specific trade recommendations to sell SBGI and buy GTN bonds [37][41]. 10. **CCO's High Leverage Risks**: CCO's high leverage presents downside risks, with expectations for spreads to widen due to macroeconomic uncertainties and investor fatigue [46][42]. Additional Important Insights - **Consolidation Trends**: The call notes that consolidation and M&A could increase as telecom and cable players seek to remain competitive and profitable [21]. - **Market Pricing Dynamics**: The market is currently pricing in hypothetical scenarios for various companies, indicating a complex landscape for credit assessments [72][70]. - **Strategic Uncertainties in Media**: The media sector is facing strategic uncertainties while waiting for direct-to-consumer (DTC) gains to outpace pressures from traditional linear models [73][74]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the HY Telecom, Cable, and Media sectors.

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]

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]