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BALTIMORE – Sinclair, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three months ended March 31, 2024.

Highlights:

CEO Comment:

“Sinclair delivered solid first quarter results, meeting guidance expectations in our local media segment and exceeding Adjusted EBITDA expectations at Tennis Channel in the quarter. Core advertising trends remain solid in most categories, with our effective yield management and sales training processes driving industry-leading core growth over the past several quarters. We have significant retransmission agreements renewing this year, of which we are 42% completed as of the beginning of May. We continue to expect a mid-single digit two-year growth in net retransmission revenues from 2023 to 2025. We also announced the launch of Broadspan, our NextGen data solutions platform, that will deliver a unified suite of products to the marketplace, and at the same time announced our first NextGen commercial partner, Edgio. The time for the NextGen data distribution opportunity is now. The broadcast data distribution model has many benefits, such as a more efficient distribution of mass-consumption data, improved customer experience, and lower cost of data delivery compared to traditional one-to-one wireless solutions. We are very excited to see what the future holds for NextGen over the coming quarters and years. In summary, Sinclair is in a strong position for both the short and long term, with our emphasis on growing net retransmission revenues and maintaining industry leadership in core advertising revenue growth. Our strategic focus aligns with the anticipation of a record-breaking presidential election year, contributing to robust growth in Adjusted EBITDA throughout 2024. We have laid the groundwork for a promising future, and we are excited about the opportunities that lie ahead of us.”

Recent Company Developments:

Content and Distribution:

Community:

Investment Portfolio:

NextGen Broadcasting (ATSC 3.0):

Financial Results:

Three Months Ended March 31, 2024 Consolidated Financial Results:

Segment financial information is included in the following tables for the periods presented. The Local Media segment consists primarily of broadcast television stations, which the Company owns, operates or to which the Company provides services, and includes multicast networks and original content. The Local Media segment assets are owned and operated by Sinclair Broadcast Group, LLC (SBG). The Tennis segment consists primarily of Tennis Channel, a cable network which includes coverage of most of tennis’ top tournaments and original professional sport and tennis lifestyle shows; the Tennis Channel International subscription and streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com. Other includes non-broadcast digital solutions, technical services, and other non-media investments. For periods presented subsequent to June 1, 2023 (the date of the reorganization), the assets of the Tennis segment and Other are owned and operated by Sinclair Ventures, LLC (Ventures). The highlights below include the divestiture of Stadium (May 2, 2023).

Three months ended March 31, 2024

Local

Media

Tennis

Other

Corporate

and

Eliminations

Consolidated

($ in millions)

Distribution revenue

$

384

$

52

$

$

$

436

Core advertising revenue

284

10

6

(3

)

297

Political advertising revenue

24

24

Other media revenue

35

1

(1

)

35

Media revenues

$

727

$

63

$

6

$

(4

)

$

792

Non-media revenue

9

(3

)

6

Total revenues

$

727

$

63

$

15

$

(7

)

$

798

Media programming and production expenses

$

383

$

25

$

$

$

408

Media selling, general and administrative expenses

183

12

5

(4

)

196

Non-media expenses

2

12

(2

)

12

Program contract payments

22

22

Corporate general and administrative expenses

41

1

16

58

Stock-based compensation

25

3

28

Non-recurring transaction, implementation, legal, regulatory and other costs

7

(1

)

6

Adjusted EBITDA(a)

$

128

$

25

$

(3

)

$

(14

)

$

136

Interest expense (net)(b)

$

69

$

$

(4

)

$

$

65

Capital expenditures

21

21

Distributions to the noncontrolling interests

2

2

Cash distributions from equity investments

26

51

77

Net cash taxes paid

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

(a)

Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction, implementation, legal, regulatory and other costs, as well as certain non-cash items such as stock-based compensation expense and other gains and losses; less program contract payments. Refer to the reconciliation at the end of this press release and the Company’s website. In the above table, Adjusted EBITDA equals total revenues minus media programming and production expenses, media selling, general and administrative expenses, non-media expenses, program contract payments, and corporate general and administrative expenses; plus stock-based compensation and non-recurring transaction, implementation, legal, regulatory and other costs.

(b)

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

Three months ended March 31, 2023

Local

Media

Tennis

Other

Corporate

and

Eliminations

Consolidated

($ in millions)

Distribution revenue

$

381

$

45

$

$

$

426

Core advertising revenue

293

9

6

(2

)

306

Political advertising revenue

3

3

Other media revenue

28

1

3

(1

)

31

Media revenues

$

705

$

55

$

9

$

(3

)

$

766

Non-media revenue

8

(1

)

7

Total revenues

$

705

$

55

$

17

$

(4

)

$

773

Media programming and production expenses

$

371

$

22

$

8

$

(3

)

$

398

Media selling, general and administrative expenses

175

10

6

191

Non-media expenses

6

6

12

Program contract payments

23

23

Corporate general and administrative expenses

32

26

58

Stock-based compensation

13

1

9

23

Non-recurring transaction, implementation, legal, regulatory and other costs

4

2

6

Adjusted EBITDA(a)

$

115

$

24

$

(3

)

$

(16

)

$

120

Interest expense (net)(b)

$

64

$

$

(5

)

$

$

59

Capital expenditures

19

1

20

Distributions to the noncontrolling interests

4

4

Cash distributions from equity investments

36

36

Net cash taxes paid

2

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

(a)

Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction, implementation, legal, regulatory and other costs, as well as certain non-cash items such as stock-based compensation expense and other gains and losses; less program contract payments. Refer to the reconciliation at the end of this press release and the Company’s website. In the above table, Adjusted EBITDA equals total revenues minus media programming and production expenses, media selling, general and administrative expenses, non-media expenses, program contract payments, and corporate general and administrative expenses; plus stock-based compensation and non-recurring transaction, implementation, legal, regulatory and other costs.

(b)

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

Consolidated Balance Sheet and Cash Flow Highlights of the Company:

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 June 30, 2024 and the twelve months ending December 31, 2024.

For the three months ending June 30, 2024 ($ in millions)

Local Media

Tennis

Other

Corporate

and

Eliminations

Consolidated

Core advertising revenue

$294 to 304

$16

$8

$(5

)

$312 to 323

Political advertising revenue

$29 to 35

$29 to 35

Advertising revenue

$323 to 339

$16

$8

$(5

)

$341 to 358

Distribution revenue

$383 to 385

$52

$435 to 437

Other media revenue

$38

$1

$(2

)

$37

Media revenues

$744 to 763

$68

$8

$(7

)

$813 to 832

Non-media revenue

$11

$(1

)

$10

Total revenues

$744 to 763

$68

$19

$(7

)

$823 to 843

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

$571 to 574

$62

$6

$(7

)

$632 to 635

Non-media expenses

$2

$15

$17

Program contract payments

$20

$20

Corporate overhead

$26

$1

$13

$40

Stock-based compensation

$10

$10

Non-recurring transaction and transition services, implementation, legal, and regulatory costs

$10

$1

$11

Adjusted EBITDA(a)

$142 to 164

$6

$(3

)

$(13

)

$132 to 155

Interest expense (net)(b)

$71

$(4

)

$67

Total capital expenditures

$27 to 29

$1

$28 to 30

Distributions to the noncontrolling interests

$3

$3

Cash distributions from equity investments

$4

$4

Net cash tax payments

$7

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

(a)

Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring transaction, implementation, legal, regulatory and other costs, as well as certain non-cash items such as stock-based compensation expense and other gains and losses; less program contract payments. In the above table, Adjusted EBITDA equals total revenues minus media programming and production expenses, media selling, general and administrative expenses, non-media expenses, program contract payments, and corporate general and administrative expenses; plus stock-based compensation and non-recurring transaction, implementation, legal, regulatory and other costs.

(b)

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

For the twelve months ending December 31, 2024 ($ in millions)

Consolidated

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

$2,481 to 2,484

Non-media expenses

$59

Program contract payments

$80

Corporate overhead

$168 to 169

Stock based compensation included in corporate, media, and non-media expenses above

$53

Non-recurring transaction, implementation, legal, and regulatory costs included in corporate, media, and non-media expenses above

$34

Interest expense (net)(a)

$270

Total capital expenditures

$105 to 110

Distributions to noncontrolling interests

$10

Cash distributions from equity investments

$83

Net cash tax payments

$165 to 175

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

(a)

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

Sinclair Conference Call:

The senior management of Sinclair will hold a conference call to discuss the Company’s first quarter 2024 results on Wednesday, May 8, 2024, at 4:30 p.m. ET. The call will be webcast live and can be accessed at www.sbgi.net under “Investor Relations/Events and Presentations.” 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 195393.

About Sinclair:

Sinclair, 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 affiliated with all the major broadcast networks; owns Tennis Channel and multicast networks Comet, CHARGE!, TBD., and The Nest; and owns and provides services to 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and the nation’s largest streaming aggregator of local news content, NewsON. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Sinclair, Inc. and Subsidiaries

Preliminary Unaudited Consolidated Statements of Operations

(In millions, except share and per share data)

Three Months Ended

March 31,

2024

2023

REVENUES:

Media revenues

$

792

$

766

Non-media revenues

6

7

Total revenues

798

773

OPERATING EXPENSES:

Media programming and production expenses

408

398

Media selling, general and administrative expenses

196

191

Amortization of program contract costs

19

22

Non-media expenses

12

12

Depreciation of property and equipment

25

24

Corporate general and administrative expenses

58

58

Amortization of definite-lived intangible assets

38

41

Loss on asset dispositions and other, net of impairment

6

Total operating expenses

756

752

Operating income

42

21

OTHER INCOME (EXPENSE):

Interest expense including amortization of debt discount and deferred financing costs

(76

)

(74

)

Gain on extinguishment of debt

1

Income from equity method investments

14

31

Other income, net

40

11

Total other expense, net

(21

)

(32

)

Income (loss) before income taxes

21

(11

)

INCOME TAX BENEFIT

4

204

NET INCOME

25

193

Net loss attributable to the redeemable noncontrolling interests

4

Net income attributable to the noncontrolling interests

(2

)

(12

)

NET INCOME ATTRIBUTABLE TO SINCLAIR

$

23

$

185

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR:

Basic earnings per share

$

0.35

$

2.65

Diluted earnings per share

$

0.35

$

2.64

Basic weighted average common shares outstanding (in thousands)

64,156

69,744

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

64,403

69,864

The Company considers Adjusted EBITDA to be an indicator of the Company’s operating performance and the ability to service its debt. The Company also believes that Adjusted EBITDA is frequently used by industry analysts, investors and lenders as a measure of valuation and ability to service its debt. The Company also discloses segment Adjusted EBITDA as an indicator of the operating performance of its segments in accordance with ASC 280, Segment Reporting.

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, Inc. and Subsidiaries

Reconciliation of Non-GAAP Measurements – Unaudited

All periods reclassified to conform with current year GAAP presentation

(in millions)

Three Months Ended

March 31,

2024

2023

Reconciliation of Net Income to Adjusted EBITDA

Net income attributable to Sinclair

$

23

$

185

Add: Loss from redeemable noncontrolling interests

(4

)

Add: Income from noncontrolling interests

2

12

Add: Income tax benefit

(4

)

(204

)

Add: Other income

(28

)

Add: Income from equity method investments

(14

)

(31

)

Add: (Income) loss from other investments and impairments

(2

)

1

Add: Gain on extinguishment of debt/insurance proceeds

(2

)

Add: Interest expense

76

74

Less: Interest income

(9

)

(12

)

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

6

Add: Amortization of intangible assets & other assets

38

41

Add: Depreciation of property & equipment

25

24

Add: Stock-based compensation

28

23

Add: Amortization of program contract costs

19

22

Less: Cash film payments

(22

)

(23

)

Add: Non-recurring transaction, implementation, legal, regulatory and other costs

6

6

Adjusted EBITDA

$

136

$

120

Three months ended March 31, 2024

Local

Media

Tennis

Other

Corporate

and

Eliminations

Consolidated

($ in millions)

Total revenues

$

727

$

63

$

15

$

(7

)

$

798

Media programming and production expenses

383

25

408

Media selling, general and administrative expenses

183

12

5

(4

)

196

Depreciation and amortization expenses

58

5

1

(1

)

63

Amortization of program contract costs

19

19

Corporate general and administrative expenses

41

1

16

58

Non-media expenses

2

12

(2

)

12

Operating income (loss)

$

41

$

20

$

(3

)

$

(16

)

$

42

Reconciliation of GAAP Operating Income to Adjusted EBITDA:

Operating income (loss)

$

41

$

20

$

(3

)

$

(16

)

$

42

Depreciation and amortization expenses

58

5

1

(1

)

63

Amortization of program contract costs

19

19

Program contract payments

(22

)

(22

)

Stock-based compensation

25

3

28

Adjustments

7

(1

)

6

Adjusted EBITDA

$

128

$

25

$

(3

)

$

(14

)

$

136

Three months ended March 31, 2023

Local

Media

Tennis

Other

Corporate

and

Eliminations

Consolidated

($ in millions)

Total revenues

$

705

$

55

$

17

$

(4

)

$

773

Media programming and production expenses

371

22

8

(3

)

398

Media selling, general and administrative expenses

175

10

6

191

Depreciation and amortization expenses

59

5

2

(1

)

65

Amortization of program contract costs

22

22

Corporate general and administrative expenses

32

26

58

Non-media expenses

6

6

12

(Gain) loss on asset dispositions and other, net of impairment

(1

)

7

6

Operating income (loss)

$

41

$

18

$

(12

)

$

(26

)

$

21

Reconciliation of GAAP Operating Income to Adjusted EBITDA:

Operating income (loss)

$

41

$

18

$

(12

)

$

(26

)

$

21

Depreciation and amortization expenses

59

5

2

(1

)

65

Amortization of program contract costs

22

22

(Gain) loss on asset dispositions and other, net of impairment

(1

)

7

6

Program contract payments

(23

)

(23

)

Stock-based compensation

13

1

9

23

Adjustments

4

2

6

Adjusted EBITDA

$

115

$

24

$

(3

)

$

(16

)

$

120

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 rate of decline in the number of subscribers to services provided by traditional and virtual multi-channel video programming distributors (“Distributors”); the Company’s ability to generate cash to service its substantial indebtedness; the successful execution of outsourcing agreements; the successful execution of retransmission consent agreements; the successful execution of network and Distributor affiliation agreements; the Company’s ability to identify and consummate acquisitions and investments, to manage increased financial leverage resulting from acquisitions and investments, and to achieve anticipated returns on those investments once consummated; the Company’s ability to compete for viewers and advertisers; pricing and demand fluctuations in local and national advertising; the appeal of the Company’s programming and volatility in programming costs; material legal, financial and reputational risks and operational disruptions resulting from a breach of the Company’s information systems; the impact of FCC and other regulatory proceedings against the Company; compliance with laws and uncertainties associated with potential changes in the regulatory environment affecting the Company’s business and growth strategy; the impact of pending and future litigation claims against the Company; the Company’s limited experience in operating or investing in non-broadcast related businesses; 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.

Category: Financial

Investor Contacts:

Christopher C. King, VP, Investor Relations

Billie-Jo McIntire, AVP, Investor Relations

(410) 568-1500

Media Contact:

[email protected]