Sinclair Broadcast Group to Partner with Project RELO in Support of Task Force Tribute

Veteran Inspired Journey of Remembrance Across the US
August 21 – September 11
Honoring Military Members Lost During Combat Operations Since 9/11

BALTIMORE & GRAYLING, Mich. – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) today announced a partnership with Project RELO, a not-for-profit organization focused on improving the quality and number of career opportunities available to military veterans.

Established in 2016, Project RELO seeks to educate corporate leaders on the value veterans bring to their organization, providing transitioning military members access to Project RELO’s business network, and connecting companies with the people and teams that can help find critical talent.

On August 21, Project RELO will kick off Task Force Tribute, a veteran inspired journey of remembrance across the US, honoring the 7,054 military members* lost during combat operations since 9/11. One mile will be traveled for each service member lost. The joint service team will embark on a send-off hosted by the State Government and Michigan National Guard in Lansing, MI and complete the journey on September 11th in Washington DC. The group will make stops in a dozen cities along the way.

Sinclair’s newsrooms across the US will participate in Project RELO’s Task Force Tribute as the media partner and will produce news coverage to air on Sinclair’s local stations and on The National Desk, Sinclair’s national news program, with additional coverage from stations in communities along the route.

In each city, the task force will begin to collect and memorialize the stories of military members as they build the network and partnerships that will aid in the construction of an immersive, and comprehensive virtual memorial. This memorial, unlike its physical counterparts, will be built upon the stories and perspectives from veterans and their families and have the ability to connect the archives of the many institutions that have been similarly collecting our veterans’ stories over the years.

“As a Marine Corps veteran, I appreciate the stories and perspectives of those that have served our military. Their experiences are unique powerful and provide an opportunity for us all to understand the ‘ground truth’ of the history of our efforts during the Global War on Terror. As the brother of a fallen warrior, I also can appreciate how important it can be to hear from those that knew and served with those we lost. In our family, any story about our absent family member is welcome and helps with the sense of loss that never truly leaves us,” said Christian Anschuetz, Chairman and Founder of Project RELO.

“We are proud to support Project RELO and Task Force Tribute in service of their goal to assist our nation’s veterans through improved career opportunities and the creation of a living memorial. Veterans and their families have made great sacrifices and we are happy to help raise awareness for these important initiatives,” said Sinclair President and CEO, Chris Ripley.

About Sinclair Broadcast Group, Inc.

Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks and owns and/or operates 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

About Project RELO

Established in 2016, Project RELO is a not-for-profit organization focused on improving the quality and number of career opportunities being made available to veterans. Our founders recognized that while military veterans have unique skill sets that bring immediate and lasting value to organizations, many fail to effectively translate those military skills into the corporate skills recruiters look for when applying for jobs once their military service concludes. Likewise, few corporate leaders fully understand how to leverage our veterans’ background and training that, fully utilized, can help contribute to improving a firm’s overall performance. Project RELO is committed to helping both veterans and business leaders partner for success. We do this by:

  1. Educating corporate leaders on the value veterans can bring to their organization
  2. Providing military members transitioning out of the service access to our ever-expanding business network and the opportunities it presents
  3. Connecting companies with the people and teams that can help them find the critical talent they need to be successful during the current ‘war for talent’.

www.projectrelo.org

About Task Force Tribute:

Established by Project RELO in 2022, Task Force Tribute is a veteran inspired journey of remembrance, honoring the 7,054 military members lost during combat operations since 9/11. One mile will be traveled for each service member lost. As the joint service team embarks upon a journey that will cross America beginning in August, it will begin to collect and memorialize the priceless stories so many military members, veterans and fellow Americans hold dear. Task Force Tribute seeks to construct a living memorial; instead of bricks and steel, our monument will be built with the stories and perspectives from veterans and their families that will evolve and grow as people contribute and memorialize their experiences and highlight the heroism and sacrifice of those they served with. www.taskforcetribute.org

*U.S. Department of Defense Casualty Status Report, June 6, 2022

Media contacts:
Project RELO/ Task Force Tribute:
Michelle Anschuetz, 847-708-4713, [email protected]

Sinclair Broadcast Group:
Jessica Bellucci, [email protected]

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Sinclair and Diamond Sports Group to Host Second Quarter 2022 Financial Results Conference Call on August 18, 2022 at 9:00 a.m. (Eastern Time)

BALTIMORE – Sinclair Broadcast Group, Inc. (the “Company”) (Nasdaq: SBGI), and the management team of Diamond Sports Intermediate Holdings LLC (“Diamond”), its unconsolidated subsidiary, will host a conference call to discuss Diamond’s second quarter financial results at 9:00 a.m. ET on Thursday, August 18, 2022. Diamond’s Consolidated Financial Statements and management’s discussion and analysis and other supplemental information will be posted to the Company’s website, www.sbgi.net, under the subtitle “Investors/Diamond Financials” prior to the call. There will not be a press release in connection with the release of Diamond’s second quarter 2022 financial results.

The call will be webcast live and can be accessed at www.sbgi.net under the subtitle “Investors/Webcasts.” The dial-in number for the conference call is 888-506-0062, with entry code 947874.

If you plan to participate on the conference call, please call at least two minutes prior to the start time and provide the entry code to the conference operator; or tell the operator that you are joining the Diamond Quarterly Update call.

If you are unable to listen to the live webcast or participate in the live conference call, a replay of the call will be available on the Company’s website at www.sbgi.net. This will be the only venue through which a replay will be available.

Members of the news media are welcome on the call in a listen-only mode.

The Company regularly uses its website as a key source of Company information and can be accessed at www.sbgi.net.

Steve Zenker, Vice President, Investor Relations
Billie-Jo McIntire, AVP, Investor Relations
410-568-1500

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Sinclair Announces Expansion of Digital Executive Team

Richard Cooke Named VP, Audio Programming
Lou Ferrara Named VP, Consumer Data and Strategy

BALTIMORE – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) today announced an expansion of the company’s digital executive leadership team with the creation of two new positions. Richard Cooke was named VP, Audio Programming and Lou Ferrara was elevated to VP, Consumer Data and Strategy. Both positions will report to Kevin Cotlove, EVP and Chief Digital Officer.

“Lou and Richard bring a wealth of experience in content development and user engagement to the company, and we’re thrilled to have them in new roles supporting Sinclair’s continued focus on digital audience and revenue growth,” said Cotlove. “Their work will be a key part of expanding consented first-party data across our digital ecosystem and delivering new types of storytelling to our users.”

As VP, Audio Programming for Sinclair, Cooke will be focused on growing the company’s news and sports business in podcasts, audio device platforms and other areas of audio distribution. Cooke joins Sinclair from podcast studio Cadence13, where he was VP of Programming and Development. At Cadence13 he oversaw the launch and growth of dozens of podcasts across a variety of content categories, winning multiple Streamy and Webby awards. He developed programing alongside a broad group of talent including Tom Brady, Doc Rivers, CJ McCollum, David Spade and Emma Chamberlain. Prior to his time at Cadence13, Cooke launched the podcast division at FOX Sports, managing podcast production, sales and growth strategies for the company. He has also worked as a producer at ESPN across radio, TV, and digital. Cooke holds a Bachelor of Arts in Mass Communications and Media Studies from the University of Connecticut.

“I could not be more excited to join the Sinclair family to help guide our audio strategy. Sinclair has long offered premium content across a variety of verticals. I’m looking forward to utilizing audio and podcasting, one of the fastest growing mediums for content, to continue expanding our offerings to our audience,” said Cooke.

As VP, Consumer Data and Strategy, Ferrara will now oversee the company’s consumer data platforms, enabling new personalized services for Sinclair’s digital audience and powering expanded marketing and sales capabilities. Ferrara, who joined Sinclair in 2018, previously managed Sinclair’s email and newsletter business and operations. Prior to his roles at Sinclair, he served as Chief Content Officer at Bankrate.com, during the brand’s turnaround and subsequent sale to digital marketing company Red Ventures. He also spent ten years at the Associated Press, where as a VP he oversaw a wide swath of the news agency’s digital transformation and content areas. Ferrara holds a Bachelor of Science in Journalism from the University of Maryland.

“I’m elated to take on this role as data becomes more essential for businesses and consumers,” Ferrara said. “Sinclair is always innovating in media and I’m looking forward to doing so with consented consumer data across the company.”

About Sinclair Broadcast Group, Inc.

Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks owns and/or operates 21 regional sports networks brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Jessica Bellucci
[email protected]

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Sinclair Declares $0.25 Per Share Quarterly Cash Dividend

BALTIMORE – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) announced that its Board of Directors has declared a quarterly cash dividend of $0.25 per share on the Company’s Class A and Class B common stock. The dividend is payable on September 15, 2022, to the holders of record at the close of business on September 1, 2022.

Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks and owns and/or operates 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Steve Zenker, Vice President, Investor Relations
Billie-Jo McIntire, AVP, Investor Relations
(410) 568-1500

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Sinclair Reports Second Quarter 2022 Financial Results

BALTIMORE – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three and six months ended June 30, 2022. The results reflect the deconsolidation of the local sports segment comprised of the regional sports networks (RSNs), which are owned and operated by Diamond Sports Group (“DSG”) and its direct and indirect subsidiaries, from the Company’s financial statements and accounted for under equity method of accounting, effective March 1, 2022. As such, the year-to-date 2022 consolidated financial results only include two months results of operations of the local sports segment, while the consolidated financial results for the comparable 2021 periods include results of operations of the local sports segment for the full periods.

Second Quarter Highlights:

  • Record second quarter Broadcast & Other total advertising revenue of $366 million, an increase of 11% from the same period a year ago
  • Record second quarter political advertising of $54 million
  • 1.6 million common shares repurchased
  • $118 million par value of the Sinclair Television Group notes due in 2027 repurchased during the quarter at a discount

CEO Comment:

“The strong political environment resulted in the highest second quarter political advertising revenue we have ever experienced,” said Chris Ripley, Sinclair’s President & Chief Executive Officer. “Year-to-date, political advertising revenue is also at all-time record levels, doubling the amount achieved during 2018, the last mid-term election year, and 20% higher than 2020, a Presidential election year. With even higher political ad revenues anticipated for our third and fourth quarters, which are typically the largest quarters for political spend, we believe 2022 political ad revenues could approach 2020’s levels.”

Ripley continued, “With the increased importance and growth of digital revenue, Sinclair continues to prioritize initiatives in this area. Our current average monthly unique users of 80 to 90 million position us well to develop incremental revenue streams in conjunction with digital content offerings, while providing more targeted and interactive opportunities to consumers. We expect to debut a number of new content offerings across our various platforms over the next 12 months that are unique to Sinclair.”

Ripley concluded, “With our securities trading at discounted values, we opportunistically repurchased both our common stock and 2027 Notes, and as announced previously, our Board increased our dividend rate earlier in the year by 25%. We continue to look for ways to bring value to our shareholders.”

Recent Company Developments:

Content and Distribution:

  • In May, the Company, leveraging the power of its 200 meteorologists, debuted The National Weather Desk, an extension of its successful The National Desk franchise. Initially, the program launched on social media and in July, expanded to providing content for the Company’s 6am and 6pm newscasts.
  • In May, the Company announced its newsrooms received a total of 22 Regional Edward R. Murrow awards, including WGME/Portland, which was honored with the award for Overall Excellence, as well as an award for WCIV/Charleston’s podcast Unsolved Carolina, the first time Sinclair’s podcast content has been honored with a Murrow award.
  • In June, the Company announced that its free over-the-air national multicast television networks, COMET, CHARGE! and TBD, will add, by September, over 13 million new TV households to their existing footprints.

NextGen Broadcasting (ATSC 3.0):

  • As of the end of July, the Company launched NextGen TV in 32 markets, including recent launches in San Antonio, TX; Fresno-Visalia, CA and Greenville, SC. To date, NextGen TV is available in 60% of the households in Sinclair’s licensed footprint.
  • In August, the Company announced it had entered into Memorandums of Understanding (MOUs) with two top Korean broadcast networks – Korean Broadcast Systems (KBS) and Munhwa Broadcasting Corp (MBC) – to collaborate on the development and implementation of NextGen broadcast models and technology in both the U.S. and Korea.

ESG:

  • In June, the Company launched Sinclair Cares: Summer Hunger Relief, which raised approximately $180,000, including $25,000 from Sinclair, helping provide approximately 1.8 million meals to children and families across the U.S.
  • In July, the Company announced it had awarded $50,000 in tuition assistance as part of its annual Diversity Scholarship program, aiming to invest in the future of the broadcast industry while helping students from diverse backgrounds. The program, started in 2013, was expanded nationally this year.

Three Months Ended June 30, 2022 Consolidated Financial Results:

  • Total revenues decreased 48% to $837 million versus $1,612 million in the prior year period. Media revenues decreased 48% to $831 million versus $1,600 million in the same period a year ago. Excluding DSG, total revenues increased 5% from $801 million in the prior year period and media revenues also increased 5% from $789 million.
  • Total advertising revenues of $366 million decreased 25% versus $491 million in the prior year period. Excluding DSG, total advertising revenues increased 11% from $329 million in the prior year period. Core advertising revenues, which excludes political revenues, were down 36% in the second quarter to $312 million versus $486 million in the prior year period. Excluding DSG, core advertising revenues decreased 3% from $323 million in the prior year period.
  • Distribution revenues of $430 million decreased versus $1,078 million in the same period a year ago. Excluding DSG, distribution revenues increased 4% from $412 million in the prior year period.
  • Operating income of $107 million, including non-recurring costs for transaction and transition services, COVID, legal, and regulatory costs (“Adjustments”) of $13 million, increased versus an operating loss of $178 million in the prior year period, which included Adjustments of $35 million. Operating income, when excluding the Adjustments, was $120 million compared to an operating loss of $143 million for the same prior year period. Excluding DSG, operating income, excluding Adjustments, decreased 2% from $123 million in the prior year period.
  • Net loss attributable to the Company was $11 million versus a net loss of $332 million in the prior year period. Excluding Adjustments, the Company had a net loss of $2 million. Net loss from DSG in the prior year period was $385 million.
  • Adjusted EBITDA, which excludes Adjustments, decreased 58% to $183 million from $433 million in the prior year period. Adjusted EBITDA from DSG in the prior year period, excluding Adjustments, was $240 million.
  • Diluted loss per common share was $0.17 as compared to diluted loss per common share of $4.41 in the prior year period. On a diluted share basis, the impact of Adjustments was $(0.14), and the impact of Adjustments in the prior year period was $(0.39). Diluted loss per common share from DSG in the prior year period was $5.11.

Six Months Ended June 30, 2022 Consolidated Financial Results:

  • Total revenues decreased 32% to $2,125 million versus $3,123 million in the prior year period. Media revenues decreased 32% to $2,106 million versus $3,097 million in the same period a year ago. Excluding DSG, total revenues increased 6% to $1,669 million from $1,571 million in the prior year period and media revenues increased 7% to $1,650 million from $1,544 million.
  • Total advertising revenues of $737 million decreased 15% versus $862 million in the prior year period. Excluding DSG, total advertising revenues increased 9% to $693 million from $635 million in the prior year period. Core advertising revenues, which excludes political revenues, of $666 million, were down 22% versus $853 million in the same period a year ago. Excluding DSG, core advertising revenues decreased 1% to $622 million from $626 million in the prior year period.
  • Distribution revenues were $1,303 million versus $2,187 million in the same period a year ago. Excluding DSG, distribution revenues increased 6% to $870 million from $823 million in the prior year period.
  • Operating income of $3,573 million, including $19 million of Adjustments and a $3,357 million gain on asset dispositions relating to deconsolidating DSG’s net liability (“Gain on Deconsolidation”), increased versus operating loss of $143 million in the prior year period, which included Adjustments of $67 million. Operating income, when excluding Adjustments and the Gain on Deconsolidation, was $235 million compared to an operating loss of $76 million for the same prior year period. Excluding DSG, operating income excluding Adjustments increased 12% to $237 million from $211 million in the prior year period.
  • Net income attributable to the Company was $2,576 million versus net loss of $344 million in the prior year period. Excluding Adjustments and the Gain on Deconsolidation, the Company had net income of $23 million. Net loss from DSG in the prior year period was $555 million.
  • Adjusted EBITDA, which excludes Adjustments, decreased 29% to $437 million from $615 million in the prior year period. Adjusted EBITDA from DSG, excluding Adjustments, in the first two months of 2022 was $54 million and in the prior year six month period was $250 million.
  • Diluted earnings per common share was $36.00 as compared to diluted loss per common share of $4.59 in the prior year period. On a diluted-per-share basis, the impact of Adjustments was $35.68 and the impact of Adjustments and impairment in the prior year period was $(0.72). Diluted loss per common share from DSG in the prior year period was $7.41.

Consolidated and Segment Highlights

The highlights below include the divestiture of WDKA and KBSI in the Cape Girardeau MO/Paducah KY market (February 1, 2021), the acquisition of ZypMedia (February 5, 2021), the divestiture of the license assets in Harlingen, TX (May 24, 2021), the divestiture of Triangle Sign and Service (June 2, 2021), the divestiture of Sinclair’s radio stations in the Seattle, WA market (September 27, 2021), and the divestiture of Ring of Honor (May 3, 2022).

Segment financial information is included in the following tables for the periods presented. The Broadcast segment consists primarily of broadcast television stations, which the Company owns, operates or to which the Company provides services. The Local Sports segment consists primarily of the RSNs and is included in the second quarter 2021 results only, due to the March 1, 2022 deconsolidation of the segment from the Company’s financial statements. Other and Corporate includes corporate, original networks and content, including Tennis Channel, non-broadcast digital and internet solutions, technical services, and other non-media investments.

Three months ended June 30, 2022

Broadcast

Other and
Corporate

Eliminations

Consolidated

($ in millions)

Revenue Highlights:

Distribution revenue

$

385

$

45

$

$

430

Advertising revenue

316

70

(20

)

366

Other media revenue

31

(a)

5

(1

)

(a)

35

Media revenues

$

732

(a)

$

120

$

(21

)

(a)

$

831

Non-media revenue

11

(5

)

6

Total revenues

$

732

(a)

$

131

$

(26

)

(a)

$

837

Expense Highlights:

Media programming & production expenses and media selling, general and administrative expenses

$

503

$

119

(24

)

598

Non-media expenses

11

(1

)

10

Corporate general and administrative expenses

33

5

38

Other Highlights:

Program contract payments

22

4

26

Capital expenditures

22

2

24

Interest expense (net) (b)

1

51

(3

)

49

Adjusted EBITDA(c)

183

(a)

Broadcast segment other media revenue includes $10 million of management and incentive fees for services provided by the Broadcast segment to DSG under a management services agreement which are not eliminated due to the deconsolidation of the Local Sports segment as of March 1, 2022.

(b)

Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.

(c)

Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction, COVID, legal, and regulatory costs, as well as certain non-cash items such as stock-based compensation expense; program contract payments and non-cash gain on asset dispositions. Refer to the reconciliation on the last page of this press release and the Company’s website.

Three months ended June 30, 2021

Broadcast

Other and
Corporate

Local Sports

Eliminations

Consolidated

($ in millions)

Revenue Highlights:

Distribution revenue

$

363

$

49

$

666

(a)

$

$

1,078

Advertising revenue

280

54

162

(5

)

491

Other media revenue

44

(b)

4

10

(27

)

(b)

31

Media revenues

$

687

$

107

$

838

$

(32

)

$

1,600

Non-media revenue

13

(1

)

12

Total revenues

$

687

$

120

$

838

$

(33

)

$

1,612

Expense Highlights:

Media programming & production expenses and media selling, general and administrative expenses

$

475

$

92

$

1,045

(b)

$

(33

)

(b)

$

1,579

Sports rights amortization included in Media production expenses

829

829

Non-media expenses

14

14

Corporate general and administrative expenses

29

4

3

36

Other Highlights:

Sports rights payments

403

(a)

403

Program contract payments

22

3

25

Capital expenditures(c)

5

3

5

13

Interest expense (net)(d)

1

41

102

7

151

Adjusted EBITDA(e)

433

(a)

Local Sports segment distribution revenue includes $11 million for the reversal of previously accrued rebates to distributors tied to minimum game guarantees. Sports rights payments includes approximately $36 million of lower payments to and rebates from teams for sports rights overpayments tied to minimum game guarantees.

(b)

For the quarter ended June 30, 2021, Broadcast segment includes $27 million of revenue for services provided by the Broadcast segment to the Local Sports segment and Other and the Local Sports segment includes $27 million of selling, general, and administrative expenses for services provided by the Broadcast segment to the Local Sports segment. Such amounts are eliminated in consolidation.

(c)

Capital expenditures exclude $4 million of repack capital expenditures expected to be reimbursed in the future from the TV Broadcaster Relocation Fund administered by the FCC.

(d)

Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.

(e)

Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction and transition service, COVID, legal, and regulatory costs, as well as certain non-cash items such as stock-based compensation expense and sports rights amortization; less sports rights payments and program contract payments. Refer to the reconciliation on the last page of this press release and the Company’s website.

Consolidated Balance Sheet and Cash Flow Highlights of the Company:

  • Total Company debt as of June 30, 2022 was $4,276 million. During the second quarter, the Company repurchased $118 million par value of Sinclair Television Group notes due 2027 at a $14 million discount.
  • Cash and cash equivalents for the Company as of June 30, 2022 was $420 million.
  • As of June 30, 2022, 46.5 million Class A common shares and 23.8 million Class B common shares were outstanding, for a total of 70.2 million common shares. During the quarter, the Company repurchased 1.6 million shares.
  • In June, the Company paid a quarterly cash dividend of $0.25 per share.
  • Routine capital expenditures for the second quarter of 2022 were $24 million.

Notes:

Certain reclassifications have been made to prior years’ financial information to conform to the presentation in the current year.

Outlook:

The Company currently expects to achieve the following results for the three months ending September 30, 2022 and the twelve months ending December 31, 2022. These results do not include the Company’s former Local Sports segment, which was deconsolidated as of March 1, 2022.

For the three months ending September 30, 2022 ($ in millions)

Broadcast

Other and
Corporate

Elimination

Consolidated

Revenue Highlights:

Core advertising revenue

$307 to 314

Political revenue

95 to 105

Advertising revenue

$356 to 370

$67 to 71

$(21) to (22)

$402 to 419

Distribution revenue

386 to 390

46

432 to 436

Other media revenue

31

5

(1)

35

Media revenues

$774 to 792

$118 to 122

$(22) to (23)

$870 to 890

Non-media revenue

22

(1)

20

Total revenues

$774 to 792

$140 to 143

$(23) to (24)

$890 to 911

Expense Highlights:

Media programming & production expenses and media selling, general and administrative expenses

$532 to 535

$111

$(22)

$622 to 625

Non-media expenses

22

(1)

21

Corporate overhead

38

Stock-based compensation and non-recurring costs for transaction, legal, and regulatory fees included in corporate and media expenses above

14

Depreciation, intangible & programming amortization

87

Other Highlights:

Program contract payments

27

Interest expense (net)(a)

49

Income tax provision

Approximately 82% effective tax rate

Net cash tax payments

Approximately $1 million

Other items(b)

47

Total capital expenditures, including repack

30 to 32

Adjusted EBITDA(c)

$197 to 215

Note: Certain amounts may not summarize to totals due to rounding differences.
(a)

Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.

(b)

Other items include cash distributions from equity investments, cash payments made to non-controlling interest holders, and other cash income and expenses.

(c)

Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction, COVID, legal, and regulatory costs, as well as certain non-cash items such as stock-based compensation expense; less programming payments. Refer to the reconciliation on the last page of this release and the Company’s website.

For the twelve months ending December 31, 2022 ($ in millions)

Broadcast

Other and
Corporate

Elimination

Consolidated(a)

Revenue Highlights:

Media revenues

$481

Non-media revenue

56

(7)

48

Expense Highlights:

Media programming & production expenses and media selling, general and administrative expenses

$2,075 to 2,083

$429

$(92)

$2,413 to 2,420

Non-media expenses

64

(5)

59

Corporate overhead

159

Stock-based compensation and non-recurring costs for transaction, legal, and regulatory fees included in corporate and media expenses above

72

Depreciation, intangible & programming amortization

355

Other Highlights:

Program contract payments

104

Interest expense (net)(b)

191

Income tax provision

Approximately 26% effective tax rate

Net cash tax refunds

Approximately $138 million

Other items(c)

116

Total capital expenditures, including repack

105 to 110

Repack capital expenditures

1

Note: Certain amounts may not summarize to totals due to rounding differences.
(a)

Consolidated outlook excludes the local sports segment, which was deconsolidated March 1, 2022.

(b)

Interest expense excludes deferred financing costs, original issue discount amortization, and other non-cash interest expense, and is net of interest income.

(c)

Other items include cash distributions from equity investments, cash payments made to non-controlling interest holders, and other cash income and expenses.

Sinclair Conference Call:

The senior management of Sinclair will hold a conference call to discuss the Company’s second quarter 2022 results on Wednesday, August 3, 2022, at 9:00 a.m. ET. The call will be webcast live and can be accessed at www.sbgi.net under “Investors/ Webcasts.” After the call, an audio replay will remain available at www.sbgi.net. The press and the public will be welcome on the call in a listen-only mode. The dial-in number is (888) 506-0062, with entry code 124579.

About Sinclair:

Sinclair is a diversified media company and a leading provider of local sports and news. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; and has TV stations affiliated with all the major broadcast networks. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsOn and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Sinclair Broadcast Group, Inc. and Subsidiaries
Preliminary Unaudited Consolidated Statements of Operations
(In millions, except share and per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2022

2021

2022

2021

REVENUES:

Media revenues

$

831

$

1,600

$

2,106

$

3,097

Non-media revenues

6

12

19

26

Total revenues

837

1,612

2,125

3,123

OPERATING EXPENSES:

Media programming and production expenses

403

1,345

1,161

2,368

Media selling, general and administrative expenses

195

234

415

447

Amortization of program contract costs

21

22

46

45

Non-media expenses

10

14

23

31

Depreciation of property and equipment

24

28

52

56

Corporate general and administrative expenses

38

36

85

97

Amortization of definite-lived intangible assets

43

119

136

244

Gain on deconsolidation of subsidiary

(3,357

)

Gain on asset dispositions and other, net of impairment

(4

)

(8

)

(9

)

(22

)

Total operating expenses (gains)

730

1,790

(1,448

)

3,266

Operating income (loss)

107

(178

)

3,573

(143

)

OTHER INCOME (EXPENSE):

Interest expense including amortization of debt discount and deferred financing costs

(54

)

(160

)

(169

)

(311

)

Gain on extinguishment of debt

3

3

Income from equity method investments

3

2

15

11

Other (expense) income, net

(105

)

(61

)

(165

)

63

Total other expense, net

(153

)

(219

)

(316

)

(237

)

(Loss) income before income taxes

(46

)

(397

)

3,257

(380

)

INCOME TAX BENEFIT (PROVISION)

40

69

(647

)

78

NET (LOSS) INCOME

(6

)

(328

)

2,610

(302

)

Net income attributable to the redeemable noncontrolling interests

(5

)

(5

)

(9

)

(9

)

Net loss (income) attributable to the noncontrolling interests

1

(25

)

(33

)

NET (LOSS) INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP

$

(11

)

$

(332

)

$

2,576

$

(344

)

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:

Basic (loss) earnings per share

$

(0.17

)

$

(4.41

)

$

36.00

$

(4.59

)

Diluted (loss) earnings per share

$

(0.17

)

$

(4.41

)

$

36.00

$

(4.59

)

Basic weighted average common shares outstanding (in thousands)

70,897

75,331

71,527

74,862

Diluted weighted average common and common equivalent shares outstanding (in thousands)

70,897

75,331

71,533

74,862

The Company considers Adjusted EBITDA to be an indicator of the operating performance of its assets. The Company also believes that Adjusted EBITDA is frequently used by industry analysts, investors and lenders as a measure of valuation.

Non-GAAP measures are not formulated in accordance with GAAP, are not meant to replace GAAP financial measures and may differ from other companies’ uses or formulations. The Company does not provide reconciliations on a forward-looking basis. Further discussions and reconciliations of the Company’s non-GAAP financial measures to comparable GAAP financial measures can be found on its website www.SBGI.net.

Sinclair Broadcast Group, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measurements – Unaudited
All periods reclassified to conform with current year GAAP presentation
(in millions)

Three Months Ended
June 30,

Six Months Ended
June 30,

2022

2021

2022

2021

Adjusted EBITDA

Net (loss) income attributable to Sinclair Broadcast Group

$

(11

)

$

(332

)

$

2,576

$

(344

)

Add: Income from redeemable noncontrolling interests

5

5

9

9

Add: (Loss) income from noncontrolling interests

(1

)

25

33

Add: Income tax (benefit) provision

(40

)

(69

)

647

(78

)

Add: Other expense (income)

5

(1

)

11

(2

)

Add: Income from equity method investments

(3

)

(2

)

(15

)

(11

)

Add: Loss (income) from other investments and impairments

105

63

159

(60

)

Add: Gain on extinguishment of debt/insurance proceeds

(3

)

(3

)

Add: Interest expense

54

160

169

311

Less: Interest income

(4

)

(5

)

Less: Gain on deconsolidation of subsidiary

(3,357

)

Less: Gain on asset dispositions and other, net of impairment

(4

)

(8

)

(9

)

(22

)

Add: Amortization of intangible assets & other assets

43

119

136

244

Add: Depreciation of property & equipment

24

28

52

56

Add: Stock-based compensation

4

13

28

46

Add: Amortization of program contract costs

21

22

46

45

Less: Cash film payments

(26

)

(25

)

(52

)

(50

)

Add: Amortization of sports programming rights

829

326

1,381

Less: Cash sports programming rights payments

(403

)

(325

)

(1,010

)

Add: Transaction and transition service, COVID, legal and other non-recurring expense

13

35

19

67

Adjusted EBITDA

$

183

$

433

$

437

$

615

Forward-Looking Statements:

The matters discussed in this news release, particularly those in the section labeled “Outlook,” include forward-looking statements regarding, among other things, future operating results. When used in this news release, the words “outlook,” “intends to,” “believes,” “anticipates,” “expects,” “achieves,” “estimates,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including and in addition to the assumptions set forth therein, but not limited to, the potential impacts of the war in Ukraine and the COVID-19 pandemic on the Company’s business operations, financial results and financial position and on the world economy, the impact of changes in national and regional economies, the Company’s ability to generate cash to service its substantial indebtedness, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market acceptance of new programming, the successful execution of retransmission consent agreements, the successful execution of network and MVPD affiliation agreements, the impact of OTT and other emerging technologies and their potential impact on cord-cutting, the impact of MVPDs, vMVPDs, and OTT distributors offering “skinny” programming bundles that may not include all programming of the Company’s networks, the Company’s ability to identify and consummate acquisitions and investments and to achieve anticipated returns on those investments once consummated, the impact of pending and future litigation claims against the Company, [the ongoing assessment of the October cybersecurity event], material legal, financial and reputational risks resulting from a breach of the Company’s information systems, and operational disruptions due to the cybersecurity event, the impact of FCC and other regulatory proceedings against the Company, uncertainties associated with potential changes in the regulatory environment affecting the Company’s business and growth strategy, and any risk factors set forth in the Company’s recent reports on Form 10-Q and/or Form 10-K, as filed with the Securities and Exchange Commission. There can be no assurances that the assumptions and other factors referred to in this release will occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements except as required by law.

Investor Contacts:
Steve Zenker, VP, Investor Relations
Billie-Jo McIntire, AVP, Investor Relations
(410) 568-1500

Media Contact:
[email protected]

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Sinclair Announces Agreements with Korean Broadcasters to Further NextGen Broadcasting

HUNT VALLEY, Md. – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), today announced that the company has entered into agreements with two top Korean Broadcast networks, Korean Broadcast System (KBS), and Munhwa Broadcasting Corporation (MBC) to collaborate on the development and implementation of NextGen Broadcast (ATSC 3.0) business models and technology in both Korea and the United States.

The collaboration includes the development of NextGen Broadcast television technology and Data Distribution as a Service (DDaaS) business opportunities using the ATSC 3.0 broadcast standard. ATSC 3.0 is a sophisticated transmission standard, based on the language of the Internet (Internet Protocol) and transforms a traditional broadcast channel into a robust data distribution platform that carries both video and data services.

In conjunction with the agreements with Sinclair, Hyundai Mobis and KBS demonstrated NextGen delivery of video and data services to a test automobile deployed around Seoul, delivering targeted content using the NextGen standard. Demonstrating the sophisticated capabilities of the new standard, MBC provided an enhanced GPS signal that corrected the GPS signal from 3 meters to 3 centimeters. Both technical demonstrations were powered by CAST.ERA, the joint venture between Sinclair and SK Telecom.

Commenting on the agreements, Chris Ripley, Sinclair’s President and CEO said, “Sinclair’s collaboration with KBS and MBC will help establish roadmaps for development and implementation of NextGen mobile TV and DDaaS technologies. As we continue to lead the evolution of these technologies and further their practical application, we look forward to building new business models around these exciting NextGen opportunities.”

Sinclair executives discussed some of these revolutionary NextGen applications at KOBA, the 30th annual Korea International Broadcast, Audio & Lighting Equipment Show, which was held in Seoul on June 29th. Del Parks, Sinclair’s President of Technology, addressed the new revenue-enhancing capabilities and business models enabled by Nextgen TV and Mark Aitken, Sinclair’s SVP of Advanced Technology and President, ONE Media 3.0, discussed the complex deployment of the services in the US, and Sinclair’s efforts with the ATSC to promote adoption of the ATSC standard in India and other countries around the world.

Said Parks, “Cooperation with our South Korean partners will allow us to bring exciting new services to the communities we serve, and datacasting is essential to the reimagining of broadcast spectrum use. We have just begun to explore ways to supplement the use of our channels, and we look forward to working with our Korean colleagues.”

Eui-Chul Kim, President of KBS, said, “As Korea’s leading public media organization, KBS is interested in revitalizing the ATSC 3.0 receiver market including vehicles and mobile devices, developing disaster broadcasting technologies, and discovering various innovative service models that combine terrestrial broadcasting and 5G communication technologies.”

Sung-Jae Park, President of MBC, said, “I hope that the ATSC 3.0 Enhanced GPS technology, which has succeeded in commercialization in Korea, will be expanded to the U.S. self-driving mobility market in cooperation with the three companies. ”

“CAST.ERA is honored to work with Sinclair, KBS and MBC, leading Broadcasters in the US and Korea to enable new data distribution as a service business opportunities based on the ATSC 3.0 standard,” stated Kevin Gage, COO of CAST.ERA.

About Sinclair Broadcast Group, Inc.

Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks and owns and/or operates 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

About Korean Broadcasting System

KBS the most trusted and influential public service media in Korea.

KBS operates a wide range of media platforms; four terrestrial TV (HD1TV, HD2TV, UHD1TV, UHD2TV), two satellite TV (KBS World, KBS KOREA), seven radio, four DMB channels and various new media services such as my K(KBS original OTT).

KBS has its headquarters in Yeouido, Seoul, and maintains 19 regional stations in major cities across the country. KBS uses internal innovation as a foundation for high quality and superior programming, investing the maximum capacity into production. Programs that are produced according to these standards play a part in showing the excellence of Korean culture while also promoting its globalization. For more information, visit https://about.kbs.co.kr/eng/index.html

About Munhwa Broadcasting Corporation

MBC is a public broadcasting corporation of South Korea, and its largest shareholder is a public organization, Foundation for Broadcast Culture. While it is owned by a public foundation, it operates on advertising. Established in 1961, MBC has grown into a media group with 16 local stations and 8 subsidiaries. MBC operates a total number of 18 channels, 5 cable channels, 5 satellite channels, and 4 DMB channels. MBC produces programs that inform, entertain and impress viewers. MBC makes efforts to communicate and respond to its audiences. Pursuing audience-first approaches, fairness, public interests, and creativity, MBC aims to be one of the most competitive global media groups in the 21st century. MBC’s content is well received not just in Korea but also in Asia and the rest of the globe. For more information, visit http://with.mbc.co.kr/eng/

About CAST.ERA

CAST.ERA is a joint venture of SK Telecom and Sinclair Broadcast Group headquartered in Arlington, Virginia with a satellite office in Seoul, Republic of Korea. CAST.ERA is focused on hybrid cloud infrastructure for 5G / ATSC 3.0 wireless distribution, ultra-low latency over-the-top transmissions and AI based media solutions. The joint venture is focused on achieving synergies by combining SK Telecom’s mobile and Internet communication technologies and Sinclair’s broadcasting infrastructure.

Media:
Sinclair Broadcast Group
Jessica Bellucci
[email protected]

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Sinclair Broadcast Group Names Stephen Clare Vice President, Finance

BALTIMORE – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) today announced Stephen Clare has been named Vice President, Finance. Clare will have oversight of the company’s Financial Planning and Analysis as well as Business Development departments and will report directly to the Chief Financial Officer. He joins Sinclair from Audacy, where he was VP of Finance.

In making the announcement, Lucy Rutishauser, Sinclair’s EVP & Chief Financial Officer said, “Steve has a long history of excellence and financial expertise, particularly in the media space. We are thrilled Steve is returning to Sinclair where he worked earlier in his career.”

Previously, Clare held several executive financial leadership roles at Media General and LIN Media where he was VP of Finance and previously, Director of Financial Planning and Analysis. He has served as an M&A Consultant and spent eight years at Sinclair where he was the company’s Assistant Controller of Operations and Assistant Controller of Radio.

Said Clare, “I am excited to return to the television industry, where I have spent most of my career, coming full circle and bringing my finance experience back to Sinclair, one of the top media companies. I look forward to working and reuniting with the Sinclair team.”

Clare holds a Bachelor of Science in Accounting from Edinboro University of Pennsylvania. Active in the community, Clare regularly volunteers with Mobile Loaves & Fishes/Community First!, an organization that works to end homelessness in Texas.

About Sinclair Broadcast Group, Inc.

Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks and owns and/or operates 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Media:
Jessica Bellucci
[email protected]

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Sinclair Broadcast Group Names Diana Wilkin Vice President/General Manager of KOKH/FOX and KOCB/CW in Oklahoma City

OKLAHOMA CITY – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) today announced Diana Wilkin has been named Vice President/General Manager of KOKH/FOX and KOCB/CW in Oklahoma City.

Wilkin joins Sinclair from Twelve 24 Media, where she was a Managing Partner at the media industry consulting firm.

In making the announcement, Rob Weisbord, Sinclair’s Chief Operating Officer and President of Broadcast, said, “Diana is a seasoned media executive with expertise in sales, news and digital leadership, along with an extensive financial management background. She will be a tremendous asset for the company, and we are thrilled she is joining us to lead KOKH and KOCB as VP/GM.”

Wilkin has held several executive leadership positions across the broadcast industry, including CBS Network’s President of Affiliate Relations and FOX Broadcasting’s SVP of Network Distribution. Throughout her career, she has also served as Vice President/General Manager in several markets, including WPEC/West Palm, WAWS/WTEV/Jacksonville, KGPE/Fresno, KSAS/Wichita and WSFX/Wilmington.

“I’m excited to be joining the outstanding team at KOKH. It’s a terrific opportunity to grow our local news brand and I couldn’t be more thrilled to be part of the Sinclair family,” said Wilkin.

A longtime member of the National Association of Broadcasters, Wilkin currently serves on several public and non-profit boards, including the Broadcasters Foundation of America and Chicken Soup for the Soul Entertainment. She holds a Bachelor of Science in Business Finance from the University of Southern California where she graduated Magna Cum Laude.

About Sinclair Broadcast Group, Inc.

Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks and owns and/or operates 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Media:
Jessica Bellucci
[email protected]

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Sinclair Broadcast Group Announces 2022 Annual Diversity Scholarship Winners, Shaping the Future of Broadcasting

Committed to Diversity, Sinclair Honors High Achieving Students Nationwide Seeking Careers in the Broadcasting Industry

BALTIMORE – Sinclair Broadcast Group (Nasdaq: SBGI) today announced that the company has awarded scholarships to 17 university students as a part of its annual Diversity Scholarship program.

Having provided more than $250,000 in tuition assistance since 2013, the scholarship program aims to invest in the future of the broadcast industry and help students from diverse backgrounds, who reflect Sinclair’s audiences nationwide, complete their education and pursue careers in broadcast journalism, digital storytelling, and marketing.

This year the program was expanded nationally and a total of $50,000 was awarded to the following students:

  • Lauryn Carlton – University of Missouri
  • Zoe Del Rosario – University of the Incarnate Word
  • Shaylee Gibbs – Sterling College
  • Sedric Granger, Jr. – Ohio University
  • Najla Hollins – Michigan State University
  • Azana Holmes, Texas A&M, San Antonio
  • Elise Jawed – Gonzaga University
  • Kaira Low – Biola University
  • Tairiq Marshall – San Diego State University
  • Melvin Perry, Jr. – University of South Carolina
  • Alexis Rejouls – Florida Agricultural and Mechanical University
  • Mecca Thompson– University of Oklahoma
  • Victoria Tran – Auburn University
  • Brooke Ung – Biola University
  • Naomi Vanderlip – Cal Poly San Luis Obispo
  • Julia Woock – University of California, Riverside
  • Evan Wyno – USC Annenberg School of Journalism and Communication

“Through Sinclair’s annual scholarship program, we aim to develop and inspire the next generation of journalists and marketers and continue our commitment to increasing diversity in the broadcast industry to reflect the communities we serve. We congratulate the 2022 winners and look forward to their future success,” said Sinclair President and CEO Chris Ripley.

The annual Sinclair Broadcast Group Diversity Scholarship complements the company’s efforts to bring more diversity to news teams nationwide. This includes enhanced efforts to recruit skilled and talented employees from historically Black colleges and universities as well as Hispanic serving institutions.

Additional details on the scholarship and this year’s winners can be found on the Sinclair Broadcast Group website.

About Sinclair Broadcast Group, Inc.
Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks and owns and/or operates 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Media Contact:
Jessica Bellucci
[email protected]

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Sinclair Announces Finance Organization Promotions

BALTIMORE – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), a diversified media company and a leader in local news and sports, announced the following promotions within the company’s finance organization:

  • Daniel Gallagher to VP, Operations Controller from Operations Controller
  • Derek Nance to VP, Corporate Controller from Corporate Controller
  • Sheila Holland to AVP/Digital Controller from Digital Controller
  • Chris Hummel to AVP/Shared Services Controller from Senior Regional Controller
  • Chad Kornke to AVP/Assistant Treasurer from Assistant Treasurer
  • Billie-Jo McIntire to AVP, Investor Relations from Director, Investor Relations

Commenting on the announcement, Lucy Rutishauser, Sinclair’s EVP & Chief Financial Officer said, “We are excited to announce these well-deserved promotions. Each person has contributed in valuable ways including navigating complex accounting treatments, contributing to successful refinancings, executing business process improvements, and onboarding important digital business use cases. We congratulate the team members on their new roles and look forward to their contributions as we continue to evolve and innovate across the company.”

About Sinclair Broadcast Group, Inc.
Sinclair Broadcast Group, Inc. is a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets; owns multiple national networks including Tennis Channel and Stadium; has TV stations affiliated with all the major broadcast networks and owns and/or operates 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital and streaming platforms NewsON and STIRR. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Media Contact:
Jessica Bellucci
[email protected]

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