Sinclair Broadcast Group(SBGI) - 2024 Q3 - Quarterly Results

Revenue Performance - Total revenues for Q3 2024 increased by 20% to $917 million compared to $767 million in the prior year period[8]. - For the nine months ended September 30, 2024, total revenues increased by 10% to $2,544 million compared to $2,308 million in the prior year period[11]. - Total revenues for the three months ended September 30, 2023, were $767 million, a decrease of 6% compared to the previous period[16]. - Total revenues for the three months ended September 30, 2024, were $917 million, a 19.5% increase from $767 million in the same period of 2023[27]. - Media revenues increased to $908 million, up 19.8% from $758 million year-over-year[27]. Advertising Revenue - Core advertising revenues grew by 1% year-over-year, totaling $295 million, while total advertising revenues increased by 42% to $433 million[2][8]. - Political revenues reached $138 million, a 31% increase over 2020 levels, despite $5 million in lost revenue due to late ad cancellations[2][3]. - Core advertising revenue for the twelve months ending December 31, 2024, is projected to be between $1,210 million and $1,219 million[23]. EBITDA and Income - Adjusted EBITDA for Q3 2024 increased by 72% to $249 million from $145 million in the prior year period[9]. - Adjusted EBITDA for the same period was $145 million, reflecting a decrease of 11%[16]. - Operating income for the three months ended September 30, 2024, was $179 million, compared to $37 million in the same period of 2023, representing a significant increase[27]. - Adjusted EBITDA for the three months ended September 30, 2024, was $249 million, up from $145 million in the same period of 2023[32]. - Net income attributable to Sinclair for the three months ended September 30, 2024, was $94 million, compared to a net loss of $46 million in the same period of 2023[27]. - Net income attributable to the Company was $134 million for the nine months ended September 30, 2024, compared to $50 million in the prior year period[12]. Expenses and Costs - Total operating expenses for the three months ended September 30, 2024, were $738 million, slightly up from $730 million in the same period of 2023[27]. - Interest expense for the three months ended September 30, 2024, was $78 million, compared to $77 million in the same period of 2023[32]. - The company incurred $22 million in non-recurring and unusual transaction costs, impacting overall profitability[36]. - Depreciation and intangible amortization expenses totaled $59 million, contributing to the operating income analysis[36]. Cash and Debt - Total company debt as of September 30, 2024, was $4,131 million[18]. - Cash and cash equivalents as of September 30, 2024, amounted to $536 million[18]. - Capital expenditures for the third quarter of 2024 were $17 million[19]. - The company paid a quarterly cash dividend of $0.25 per share in September 2024[19]. Future Projections - The company expects total revenues for the three months ending December 31, 2024, to be between $1,004 million and $1,014 million[22]. - Operating income for the three months ending December 31, 2024, is expected to be between $236 million and $247 million[22]. - Distribution revenue for the twelve months ending December 31, 2024, is expected to be between $1,740 million and $1,742 million[23]. Strategic Initiatives - The Company launched new podcasts and expanded its podcast division, with several shows ranking among Apple's top-10 sports podcasts[4]. - Sinclair Ventures made investments of approximately $7 million in minority investments during Q3 2024[7]. - The company emphasizes the importance of successful execution of outsourcing and retransmission consent agreements for future growth[37]. - There is a focus on identifying and consummating acquisitions to enhance market position and financial leverage[37]. Risks and Challenges - Forward-looking statements highlight potential risks including subscriber decline and regulatory challenges, which may affect future operating results[37]. - The company faces material risks related to programming costs and competition for viewers and advertisers[37]. - Legal and reputational risks are acknowledged, particularly concerning breaches of information systems[37]. - The company has no obligation to publicly release revisions to forward-looking statements except as required by law[37].