Slide 1: 4Q23 Earnings Presentation
4Q23 Earnings Presentation February 28, 2024 Published by: Sinclair, Inc. 11
Slide 2: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation contains certain financial measures of Sinclair, Inc. (the “Company”), including Adjusted EBITDA and Adjusted Free Cash Flow, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") (collectively, the "non-GAAP fi
Slide 3: Forward Looking Statement
FORWARD LOOKING STATEMENT The matters discussed in this presentation, particularly those in the section labeled "Outlook," include forward-looking statements regarding, among other things, future operating results. When used in this presentation, the words "outlook," "intends to," "believes," "antic
Slide 4: 4Q23 Consolidated Results Compared to Guidance
4Q23 CONSOLIDATED RESULTS COMPARED TO GUIDANCE Corporate and For the three months ending December Local Media Consolidated 4Q23 Actuals Tennis Guidance (a) 4Q23 Actuals Other Guidance (a) 4Q23 Actuals Elimination 4Q23 Actuals 4Q23 Actuals 31, 2023 ($ in millions) Guidance (a) Guidance (a) Guidance (
Slide 5: Adjusted Free Cash Flow Returned to Stakeholders
ADJUSTED FREE CASH FLOW RETURNED TO STAKEHOLDERS • Generated Consolidated Adjusted Free Cash Flow of $234 million in 2023 4Q23 Earnings Presentation • $65 million returned to equity holders in 2023 in the form of quarterly dividends, representing a dividend yield of 7.7% as of year-end • Company als
Slide 6: Sinclair Local Media
SINCLAIR LOCAL MEDIA • Committed to transforming the traditional local media business despite current secular trends and regulatory constraints heading into a Presidential election year • Financial and Operational Drivers Include: 4Q23 Earnings Presentation • Record-breaking political advertising re
Slide 7: Diamond Sports Group Settlement
DIAMOND SPORTS GROUP SETTLEMENT • Sinclair and Diamond Sports Group (DSG) agreed to settlement of all outstanding litigation claims • Sinclair agreed to pay $495 million, estimated to result in a net cost of approx. $250-$325 million • DSG agreed to withdraw its $1.5 billion litigation against Sincl
Slide 8: Core Advertising Continues to Grow
CORE ADVERTISING CONTINUES TO GROW • Pro forma core advertising in Local Media, excluding political, up 2.5% on a y-o-y basis during 4Q23 and up 3.2% for 4Q23 on a consolidated company basis 4Q23 Earnings Presentation • Local Media 4Q23 year-over-year category performance: • Services up 8%, automoti
Slide 9: Political—Expect Record-Breaking 2024
POLITICAL—EXPECT RECORD-BREAKING 2024 • $24 million in political advertising in 4Q23; $1 million below guidance range due largely to timing and candidates withdrawing from process earlier than expected • Senate races in 2024: 23 of 34 in Sinclair markets • Governor races in 2024: 7 of 11 in Sinclair
Slide 10: Distribution and Network Updates
DISTRIBUTION AND NETWORK UPDATES • Reached agreement with Verizon & NCTC (National Content & Technology Cooperative) on new multi-year distribution agreements 4Q23 Earnings Presentation • Nearly all traditional distributor Big-4 network subscribers renew in 2024 • Continue to see positive industry t
Slide 11: Advancing NextGen Broadcast
ADVANCING NEXTGEN BROADCAST 4Q23 Updates • Continue to deploy NextGen Broadcast technology in additional markets with 75% of all U.S. Households being reached by NextGen Broadcast as of the end of January • Sinclair has deployed NextGen in half of our 86 markets, covering 74% of our covered populati
Slide 12: Tennis Channel Financial Results
Tennis Channel Financial Results • $ 5 4 million i n total r e ve n u e i n 4 Q 2 3 • $ 2 2 million i n A d j u s t e d E B I T D A i n 4 Q 2 3 ( 1 ) • 4Q23 total revenue and Adjusted EBITDA above guidance • Expect continued strong growth in 2024 as high-value content continues to drive increased im
Slide 13: Tennis Channel's 4Q23 Average Audience Grew 36% Y-o-Y
• Tennis Channel’s 4Q23 average audience grew 36% y-o-y (households) and 25% y-o-y (total viewers); social media impressions grew 58% year-over-year • Once again, Tennis Channel ratings growth (both households and total viewers) outpaced all other English- language sports networks • The streaming pl
Slide 14: Ventures Investment Portfolio Value of $1.2B
VENTURES INVESTMENT PORTFOLIO VALUE OF $1.2B(1) Real Estate • Company capital contributions of $165 approximately $28 million in minority investments in 4Q23; $72 million in FY 2023 4Q23 Earnings Presentation Cash $343 Direct • Company capital distributions of Investments approximately $1 million in
Slide 15: Sinclair 2023 Awards and Charitable Endeavors
SINCLAIR 2023 AWARDS AND CHARITABLE ENDEAVORS • Sinclair won a total of 276 broadcasting awards in 2023, including 16 national awards • KOMO in Seattle won a National Edward R. Murrow award for a feature on the Seattle-area family that started the sport of Pickleball • In addition, Sinclair won a to
Slide 16: 4Q23 Media Revenue (Consolidated)
4Q23 MEDIA REVENUE (Consolidated) Media Revenue vs Guidance ($ in millions) $870 4Q23 Earnings Presentation $850 $838 $830 $810 $821 $790 $812 $770 $750 4Q 2023 4Q 2023 Guidance Actual & 1 Pro Forma Results Media Revenues within guidance range: Pro Forma Media Revenues decreased 13% vs prior year pe
Slide 17: 4Q23 Adjusted EBITDA (Consolidated)
4Q23 ADJUSTED EBITDA (Consolidated) Adjusted EBITDA vs Guidance ($ in millions) $200 $196 4Q23 Earnings Presentation $195 $190 $185 $180 $181 $175 $176 $170 $165 4Q 2023 4Q 2023 Guidance Actual & 1 Pro Forma Results Adjusted EBITDA within guidance range: Adjusted EBITDA decreased vs prior year perio
Slide 18: 4Q23 Adjusted Free Cash Flow (Consolidated)
4Q23 ADJUSTED FREE CASH FLOW (Consolidated) Adjusted Free Cash Flow vs Guidance ($ in millions) 4Q23 Earnings Presentation $120 $100 $99 $80 $91 $60 $77 $40 $20 $0 4Q 2023 4Q 2023 Guidance Actual & 1 Pro Forma Results Adjusted Free Cash Flow in-line with guidance range driven by: Adjusted Free Cash
Slide 19: 4Q23 Balance Sheet (Consolidated)
4Q23 BALANCE SHEET (Consolidated) • Total debt at the end of 2023 was $4.2 billion DEBT MATURITY SCHEDULE • Sinclair Television Group’s (STG) first lien indebtedness ratio was 4.2x • STG Total Net Leverage was 5.2x 4Q23 Earnings Presentation • STG Interest Coverage was 3.1x • Repurchased over $64 mi
Slide 20: Full Year 2023 Results (Consolidated)
FULL YEAR 2023 RESULTS (Consolidated) Corporate For the 12 months ending December 31, and 2023 ($in millions) Local Media Tennis Other Eliminations Consolidated Advertising revenue $1,236 $37 $25 $(13) $1,285 Key Metrics Distribution revenue 1,491 189 - - 1,680 Other media revenue Media revenues 139
Slide 21: First Quarter 2024 Guidance
FIRST QUARTER 2024 GUIDANCE MEDIA REVENUE 1Q24 media revenue range of $787M to $800M, up 3% to 5%, vs. pro forma 1Q23 of $761M: • Driven largely by political advertising • Core advertising roughly flat at the mid-point of our guidance due to lower exposure to the Super Bowl on CBS this year vs FOX l
Slide 22: Full-Year 2024 Guidance (Consolidated)
FULL-YEAR 2024 GUIDANCE (Consolidated) 4Q23 Earnings Presentation 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 inte
Slide 23: Key Takeaways
KEY TAKEAWAYS • Solid 4Q23 results; met guidance in Local Media segment for revenues and Adjusted EBITDA; exceeded revenue and Adjusted EBITDA guidance for Tennis Channel; met guidance for Adjusted Free Cash Flow • Prioritizing strengthening balance sheet; more than $91 million of debt (face value)