Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q3 2023 Earnings Conference Call November 1, 2023 4:30 PM ET Company Participants Chris King - Vice President, 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 - The Benchmark Company Steven Cahall - Wells Fargo Aaron Watts - Deutsche Bank Operator Go ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . COMMISSION FILE NUMBER: 333-271072 (Sinclair, Inc.) 000-26076 (Sinclair Broadcast Group, LLC) Sinclair, Inc. Sinclair Broadcast Group, L ...

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q2 2023 Earnings Conference Call August 2, 2023 4:30 PM ET Company Participants Chris King - Vice President, Investor Relations Chris Ripley - President and Chief Executive Officer Lucy Rutishauser - Executive Vice President and Chief Financial Officer Rob Weisbord - Chief Operating Officer and President of Local Media Conference Call Participants Dan Kurnos - the Benchmark Company Aaron Watts - Deutsche Bank Steven Cahall - Wells Fargo Barton Crocket - Rosenblat ...

Financial Performance - For the three months ended March 31, 2023, total revenues decreased to $773 million from $1,288 million in the same period of 2022, representing a decline of approximately 40%[156] - Media revenues for the broadcast segment fell to $676 million, down 6% from $721 million in the prior year[157] - Operating income for the quarter was $21 million, a significant decrease from $3,466 million in the same quarter of 2022[156] - Net income attributable to Sinclair Broadcast Group was $185 million, compared to $2,587 million in the same period last year, marking a decline of approximately 93%[156] - Distribution revenue decreased by $12 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to a decrease in subscribers[159] - Advertising revenue decreased by $14 million for the three months ended March 31, 2023, compared to the same period in 2022, mainly due to a decrease in political advertising revenue[160] - Other media revenues decreased by $19 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to a decrease in revenue from the local sports segment[162] - Media revenues decreased by $24 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to a decrease in advertising revenue related to owned networks[174] Expenses and Costs - Media programming and production expenses increased by $8 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to a $6 million increase in fees pursuant to network affiliation agreements[163] - Corporate general and administrative expenses increased by $11 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to a $4 million increase in employee compensation costs[178] - The company experienced an increase in production and overhead costs, impacting cash flows from operating activities[190] Cash Flow and Liquidity - Net cash flows from operating activities decreased to $62 million in Q1 2023 from $70 million in Q1 2022, primarily due to decreased cash collections and increased production costs[189] - Net cash flows used in investing activities decreased to $(44) million in Q1 2023 from $(266) million in Q1 2022, mainly due to the removal of DSIH's cash balance following deconsolidation[189] - Net cash flows used in financing activities increased to $(279) million in Q1 2023 from $(102) million in Q1 2022, primarily due to the repurchase of Redeemable Subsidiary Preferred Equity[192] - Cash flows from distributions decreased significantly, with distributions from investments at $8 million in Q1 2023 compared to $70 million in Q1 2022[189] - The company anticipates sufficient liquidity for the next twelve months, relying on cash, cash equivalents, and borrowing capacity under the Bank Credit Agreement[188] - The company may consider issuing long-term debt or equity to meet long-term liquidity needs, although there are no assurances regarding the availability of financing[188] Shareholder Actions - The company repurchased approximately 3.6 million shares of Class A Common Stock for $53 million during the three months ended March 31, 2023, and an additional 5.2 million shares for $99 million since that date[153] - The company declared a quarterly cash dividend of $0.25 per share in February and May 2023[153] - The company declared a quarterly dividend of $0.25 per share in February and May 2023, with future dividends subject to the Board's discretion[193] Investments and Agreements - In February 2023, the company purchased the remaining 175,000 units of Redeemable Subsidiary Preferred Equity for $190 million, representing 95% of the remaining unreturned capital contribution[153] - The company entered into a distribution agreement with YouTube TV to add Tennis Channel and other networks, effective June 1, 2023[150] - The company has deployed NextGen TV, powered by ATSC 3.0, in 39 markets as of April 2023[151] - Income from equity method investments included a gain of $33 million on the sale of two real estate investments during the three months ended March 31, 2023[176] Tax and Interest - The effective tax rate for the three months ended March 31, 2023, was a benefit of 1870.7%, compared to a provision of 20.8% during the same period in 2022[182] - Interest expense decreased by $41 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to a decrease in DSG interest expense of $72 million[180] Other Developments - The company announced that its multicast networks COMET, CHARGE!, and TBD will add 2.4 million households, increasing total new coverage to nearly 17 million households since the start of 2022[150] - The company entered into an interest rate swap with a notional amount of $600 million at a fixed interest rate of 3.9%, effective February 7, 2023[195] - The company reported a deconsolidation impact that affected both cash flows and financial performance metrics[191]

Financial Data and Key Metrics Changes - The company ended the quarter with a cash balance of $623 million, leading to a total liquidity of almost $1.3 billion at quarter end [2] - Adjusted EBITDA for the second quarter is expected to be between $84 million and $104 million, down from $184 million pro forma last year, primarily due to lower revenue and higher programming fees [4] - Total debt at the end of the first quarter was $4.3 billion, with a first-lien indebtedness ratio of 3.5x and total net leverage of 4.4x [131] Business Line Data and Key Metrics Changes - Media revenues for the quarter were $766 million, achieving the high end of guidance, with core advertising meeting expectations and political and distribution revenues surpassing guidance [128] - Adjusted EBITDA decreased by 40% compared to the first quarter of last year, attributed to lower media revenues and higher corporate and media expenses [153] - The Tennis Channel saw a 33% increase in total subscribers year-over-year, with over 3.5 million hours streamed in the quarter [119] Market Data and Key Metrics Changes - The advertising environment is showing low single-digit percent increases in the automotive category, while there is softness in the insurance category [145] - Local advertising is outperforming national advertising, with strength in categories such as auto and legal [27] - The company expects media revenues to decline in the second quarter compared to the previous year due to the absence of political spending and continued subscriber churn [132] Company Strategy and Development Direction - The company is reorganizing under a holding company structure to improve transparency and flexibility for transactions, separating broadcasting assets from non-broadcasting assets [107][109] - There is a strategic focus on reallocating capital towards non-broadcast holdings, particularly in NextGen technologies and international opportunities [92] - The company is investing approximately $75 million in infrastructure this year, including cloud migration and NextGen technologies [157] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the core broadcasting business while acknowledging regulatory uncertainties affecting capital allocation [92] - The company anticipates a record-breaking political spending year in 2024, following strong political spending in Q1 [117] - There is ongoing uncertainty regarding macroeconomic conditions that could impact consumer behavior and advertising revenue [134] Other Important Information - The company has initiated a Sinclair Cares initiative to promote mental health awareness and community support [99] - The Tennis Channel is set to become a dedicated network for the French Open, airing over 2,000 hours of coverage [121] - The company is launching a white-label Tennis Channel shop to create a merchandising revenue stream [121] Q&A Session All Questions and Answers Question: Can you provide more details on the investments in ventures and the accounts receivable facility? - Management indicated that additional information about the holding company would be limited due to ongoing share exchange offerings, but more detailed disclosures are expected post-reorganization [9][10] Question: How is the ad environment trending in Q2? - Management noted that local advertising is outperforming national, with positive results in specific categories, while monitoring macroeconomic headwinds [27] Question: What is the expected impact of the Diamond bankruptcy on financial liabilities? - Management refrained from speculating on the Diamond bankruptcy's impact, stating that they would provide updates as more information becomes available [13] Question: How will the company balance stock buybacks against debt repayment? - Management acknowledged the undervaluation of debt and indicated that leverage targets remain in the high 3s to low 4s, with expectations to improve by the end of 2024 [81]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . COMMISSION FILE NUMBER: 000-26076 SINCLAIR BROADCAST GROUP, INC. (Exact name of Registrant as specified in its charter) (State or other juri ...

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q4 2022 Earnings Conference Call February 22, 2023 9:00 AM ET Company Participants Lucy Rutishauser – Executive Vice President and Chief Financial Officer Billie-Jo McIntire – Assistant Vice President-Investor Relations Chris Ripley – President and Chief Executive Officer Rob Weisbord – President of Broadcast and Chief Operating Officer Steve Zenker – Senior Vice President-Investor Relations Conference Call Participants Dan Kurnos – Benchmark Barton Crockett – Ro ...

o Total advertising revenues for the quarter were record highs, up almost 60% over 2021 or up 31% adjusting for the cyber incident o Record total advertising revenues of $1.57 billion, up 23%, driven by strong political results $975 Note: Guidance as provided on the Company's November 2, 2022 Earnings Call Note: Sinclair Broadcast Group Media Revenues and Adjusted EBITDA outlook comparisons are to prior year Pro Forma Media Revenues and Pro Forma Adjusted EBITDA that exclude Diamond as if deconsolidation oc ...

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q3 2022 Earnings Conference Call November 28, 2022 9:00 AM ET Company Participants Billie Jo McIntire - Associate Vice President of Investor Relations, Sinclair Chris Ripley - President and Chief Executive Officer, Sinclair Rob Weisbord - President of Broadcast and Chief Operating Officer, Sinclair Scott Shapiro - Chief Financial Officer and Chief Operating Officer, Diamond Sports Conference Call Participants Avi Steiner - JPMorgan David Hamburger - Morgan Stanle ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . COMMISSION FILE NUMBER: 000-26076 SINCLAIR BROADCAST GROUP, INC. (Exact name of Registrant as specified in its charter) (State or o ...