Sinclair, Inc. · NASDAQ:SBGI
Sinclair — Q1 2022 Earnings Presentation
14 slides from Sinclair's earnings presentation, May 4, 2022
Slide 1: First Quarter 2022 Conference Call
First Quarter 2022 Conference Call M a y 4 , 2 0 2 2 Chris Ripley President & Chief Executive Officer Lucy Rutishauser EVP, Chief Financial Officer Rob Weisbord Chief Operating Officer President of Broadcast 1
Slide 2: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation contains certain financial measures, 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 financial measures"). Adjusted EBITD
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: Deconsolidation of Diamond Sports Group (DSG)
DECONSOLIDATION OF DIAMOND SPORTS GROUP (DSG) • Triggered by DSG Board composition refresh as required by loan agreements entered into on March 1st in conjunction with DSG recapitalization • GAAP rules require the deconsolidation of DSG from Sinclair’s results – all impacts are non-cash • Resulted i
Slide 5: Value of Sinclair's Assets
VALUE OF SINCLAIR’S ASSETS VALUE OF INVESTMENT PORTFOLIO • Estimated Fair Market Value (FMV) of approximately $18 per share • Has generated an IRR of approx. 24% since 2014 • Portfolio consists of real estate, venture capital, private equity holdings, & direct strategic investments in companies • In
Slide 6: Compulse
COMPULSE • Compulse has grown through acquisitions and organic client additions • Expected to reach $100M in sales in 2022 • Compulse 360, launched in 2021, is an all-in-one omni-channel marketing technology platform built for reaching local audiences at scale • The only end-to-end SaaS solution pur
Slide 7: ATSC 3.0 (NextGen Broadcasting)
ATSC 3.0 (NEXTGEN BROADCASTING) • 75% of U.S. households projected to receive signal by end of 2022 • 4.5M televisions expected to be sold with ATSC 3.0 capabilities in 2022 • Significant progress in testing and validation occurred in 2021 ▪ Enhanced GPS capabilities ▪ Broadcast app converging over-
Slide 8: ESG Initiatives Progress
ESG INITIATIVES PROGRESS • Rolled out battery recycling program to viewers through a joint initiative with Batteries Plus for Earth Day and the entire month of April ▪ Aired PSAs across most of our markets throughout the month ▪ Offered viewers a way to search for a recycling resource near them ▪ En
Slide 9: Operating Comments
Contains Forward Looking Statements OPERATING COMMENTS • First quarter Broadcast and Other media revenue increased and was at high end of guidance range • Political revenue tracking above expectations – still expect a record mid-term election year • The National Desk (TND) continues to expand ▪ Adde
Slide 10: Broadcast and Other 1Q22 Results
BROADCAST AND OTHER 1Q22 RESULTS Media Revenue: Media Expense: • Distribution fees increase due to contractual rate escalators offset by • Primarily due to higher network programming fees and SG&A subscriber churn • Favorable to guidance by $10M • Political revenue higher due to 2022 being a mid-ter
Slide 11: Broadcast and Other 1Q22 Financial Highlights
BROADCAST AND OTHER 1Q22 FINANCIAL HIGHLIGHTS MEDIA REVENUE ($M) ADJUSTED EBITDA ($M) $825 $210 $820 $819 $819 $200 $199 $815 $190 $181 $810 $180 $805 $803 $170 $167 $800 $160 $795 $150 1Q22 Guidance as of February 23, 1Q22 Results 1Q22 Guidance as of February 23, 1Q22 Results 2022 2022 Note: Guidan
Slide 12: Sinclair Balance Sheet
SINCLAIR BALANCE SHEET • Total debt at the end of the fourth quarter was $4.4B o Sinclair Television Group’s first lien indebtedness ratio was 2.9x, on a covenant of 4.5x; and net leverage was 4.3x • 10b5-1 plan repurchase of 2.5M shares of common stock in 1Q22 and another 1.1M shares since the end
Slide 13: Outlook
OUTLOOK MEDIA REVENUE ADJUSTED EBITDA ADJUSTED FREE CASH FLOW • 2Q22 media revenue up 4% to 7% vs. • 2Q22 Adjusted EBITDA down vs. 2Q21 to • 2Q22 Adjusted Free Cash Flow $246M 2Q21 to range of $822M to$840M $153M to $170M to $266M and $3.46 to $3.74 per share • Strong quarter for political • Technol
Slide 14: Key Takeaways
KEY TAKEAWAYS • Sinclair required to deconsolidate Diamond Sports Group • 2022 should be record-breaking for political advertising in a mid-term election year • Piloting first commercial use of NextGen technology in the U.S. • Compulse 360 expected to hit $100M in revenues in 2022 • Continued progre