Sinclair Broadcast Group(SBGI) - 2025 Q1 - Quarterly Results

Executive Summary & Highlights 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][6] - Core advertising trends are reported to be among the strongest in the industry, despite macro-economic uncertainties[3] - 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][11] - In April, the company repurchased $66 million par value of Sinclair Television Group notes due in 2027 for $62 million in cash[6][22] Recent Company Developments 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] - Sinclair's newsrooms won 33 journalism awards year-to-date, including four national headliner awards[7] - 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] - Sinclair Ventures made approximately $8 million in minority investments and received distributions of approximately $10 million in Q1[8] - Compulse, a Sinclair subsidiary, completed an acquisition of a digital marketing services company for approximately $30 million in cash[11] Financial Results (Q1 2025) 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 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) | $0.35 | N/A | Segment Financial Results Local Media revenue and Adjusted EBITDA declined, while Tennis segment revenue increased with a slight EBITDA decrease Q1 2025 Segment Results ($ 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 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) 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 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 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 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 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 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) |