Sinclair, Inc. · NASDAQ:SBGI
Sinclair — Q2 2022 Earnings Presentation
15 slides from Sinclair's earnings presentation, Aug 3, 2022
Slide 1: Second Quarter 2022 Conference Call
Second Quarter 2022 Conference Call A U G U S T 3 , 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: Diversification Creates Opportunities
DIVERSIFICATION CREATES OPPORTUNITIES Diversified revenue streams fuel future earnings power • Advertising & distribution revenues • NextGen/ATSC 3.0 technology opportunities • National networks growth • Marketing services expansion - utilizing new SaaS technology developed by the Company Maintain f
Slide 5: Capitalizing on Evolving Viewer Habits
CAPITALIZING ON EVOLVING VIEWER HABITS Consumers today have more choices than ever to view content Sinclair is well-positioned to provide viewers the content they value Digital viewing is growing significantly and offers ways to engage with viewers directly, opening up incremental revenue opportunit
Slide 6: Compulse
COMPULSE Proprietary omnichannel SaaS-based solution that helps media companies and local agencies better plan, execute and report on omnichannel marketing campaigns Vertically integrating through acquisitions and internal efforts. Owning the technology is a significant competitive advantage Offerin
Slide 7: ATSC 3.0 (NextGen Broadcasting)
Contains Forward Looking Statements ATSC 3.0 (NEXTGEN BROADCASTING) Launched five new Sinclair markets in 2Q, making 10 year to date 32 Sinclair markets overall, 60% of the households in the Company’s licensed footprint Recently announced MOUs with two top Korean Broadcast networks to develop and im
Slide 8: Providing Value to Sinclair Stakeholders
PROVIDING VALUE TO SINCLAIR STAKEHOLDERS Increased dividend by 25% earlier this year Continued share repurchase program – 39M shares repurchased since beginning of 2018 – 38% of the then shares outstanding Repurchased STG notes due 2027 at a discount Diversified portfolio of investments consisting o
Slide 9: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Announced winners of Diversity Scholarships • Opened it to applicants nationwide • Awarded a total of $50K to 17 winners • Since 2013, awarded $250,000 Concluded Sinclair Cares: Summer Hunger relief fundraising campaign • Raised approx. $180K, including $25K from Sinc
Slide 10: Operating Comments
OPERATING COMMENTS • Political ad revenues exceeded expectations, setting a 2Q record. YTD, up 100% over 2018, the last mid-term year, and up 20% over the 2020 Presidential election year • 2022 political ad revenue could approach the record 2020 levels • Core ad sales declined over 2021, on weakness
Slide 11: 2Q22 Results
2Q22 RESULTS Media Revenue: Media Expense: • Record 2Q Political revenue • Higher primarily due to increased network programming fees, higher digital expenses on digital revenue growth, and timing of tennis tournaments in 2021 • Distribution fees increased due to contractual rate increases offset by
Slide 12: 2Q22 Financial Highlights
2Q22 FINANCIAL HIGHLIGHTS MEDIA REVENUE ($M) ADJUSTED EBITDA ($M) $845 $840 $200 $840 $184 $170 $835 $153 $150 $831 $830 $100 $825 $822 $820 $50 $815 $810 $0 2Q22 Guidance as of May 4, 2022 2Q22 Results 2Q22 Guidance as of May 4, 2022 2Q22 Results Note: Guidance for Broadcast and Other as provided o
Slide 13: Sinclair Balance Sheet
SINCLAIR BALANCE SHEET Total debt at the end of the second quarter was $4.3B • Sinclair Television Group’s first lien indebtedness ratio was 3.3x and total net leverage was 4.1x 10b5-1 plan repurchase of 1.6M shares of common stock in 2Q22 and another approx. 0.5M shares since the end of the second
Slide 14: Outlook
OUTLOOK MEDIA REVENUE ADJUSTED EBITDA ADJUSTED FREE 3Q22 media revenue up 10% to 3Q22 Adjusted EBITDA up 4% to CASH FLOW 12% vs. pro forma 3Q21 to range 14% vs. pro forma 3Q21 to 3Q22 Adjusted Free Cash Flow of $870M to $890M $197M to $215M $162M to $182M and $2.32 to • Strong quarter for political
Slide 15: Key Takeaways
KEY TAKEAWAYS • Diversified businesses and assets allow for multiple future growth opportunities • Engaging consumers through content creation and interactive and personalized experiences a key aspect of Sinclair’s growth focus • 2022 should be record-breaking for political advertising in a mid-term