Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation May 8, 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 which is not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") (collectively, the "non-GAAP financial measures"). Adjusted E
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: 1Q24 Consolidated Results Compared To Guidance
1Q24 Consolidated Results Compared To Guidance Corporate and For the three months ending Local Media Tennis Guidance Other Guidance Consolidated 1Q24 Actuals 1Q24 Actuals 1Q24 Actuals Elimination 1Q24 Actuals 1Q24 Actuals March 31, 2024 ($ in millions) Guidance (a) (a) (a) Guidance (a) Guidance (a)
Slide 5: Returning Cash to Stakeholders
Returning Cash to Stakeholders • $16 million returned to equity holders in 1Q24 in the form of quarterly dividends, representing a dividend yield of 7% as of March 31, 2024 1Q24 Earnings Presentation • Company repurchased $27 million par value of debt in January 2024 for $25 million of cash • $91 mi
Slide 6: Sinclair Local Media
Sinclair Local Media • Committed to transforming the traditional local media business despite current secular trends and regulatory constraints • Financial and Operational Drivers Include: 1Q24 Earnings Presentation • Excluding the 2020 Georgia run-off, record-breaking political advertising revenue
Slide 7: Broadspan ATSC 3.0 Broadcast Data Solutions
Broadspan combines business insights, broadcast spectrum, and distribution technology from across the broadcast industry to deliver a unified suite of ATSC 3.0-enabled broadcast data solutions to the market. Data Distribution Platform Automotive Connectivity Services Streaming Video Offload 1Q24 Ear
Slide 8: Diamond Sports Group Settlement
Diamond Sports Group Settlement • Sinclair and Diamond Sports Group (DSG) agreed to settlement of all outstanding litigation claims 1Q24 Earnings Presentation • Sinclair agreed to pay $495 million, estimated to result in a net cost of approx. $250-$325 million • STG contributed $347 million to the g
Slide 9: Core Advertising Trends
Core Advertising Trends • Pro forma core advertising in Local Media, down 2.7% on a y-o-y basis during 1Q24 and down 2.0% for 1Q24 on a consolidated company basis • However, local media core advertising was up low-single-digits when excluding the impact of Super 1Q24 Earnings Presentation Bowl & Fin
Slide 10: Political—Expect Record-Breaking 2024
Political—Expect Record-Breaking 2024 (1) • $24 million in political advertising in 1Q24; within previously provided guidance range of $22-$25 million • As of May 1, we have pre-booked $77 million in political advertising for 2H24 through Election Day; this compares to $21 million as of May 1, 2020
Slide 11: Distribution and Network Updates
Distribution and Network Updates • Have reached new multi-year distribution agreements representing 42% of traditional Big-4 subs since the beginning of the year through early-May 1Q24 Earnings Presentation • Continue to see positive industry trends regarding long-term stability of net retransmissio
Slide 12: News Gathering Operation—Baltimore's Key Bridge Collapse
News Gathering Operation—Baltimore’s Key Bridge Collapse • Baltimore/Washington DC Sinclair stations dominated coverage of March 26 collapse of Francis Scott Key Bridge in Baltimore • WBFF-FOX 45 in Baltimore had live coverage of collapse 30 minutes before any other station in the market was live •
Slide 13: Audio and Social Division
Audio and Social Division • Evolving the art of reporting and storytelling to engage with fans of sports, entertainment, news and true crime • Signed 3-time National Champion college football coach Urban Meyer and commentator Rob Stone to host a new sports podcast on college football year- round, wh
Slide 14: Tennis Channel Financial Results
Tennis Channel Financial Results • $ 6 3 million i n total r e ve n u e i n 1 Q 2 4 • $ 2 5 million i n A d j u s t e d E B I T D A i n 1 Q 2 4 ; $ 2 6 million excluding growth initiative net costs • 1Q24 total revenue at high end of guidance and Adjusted EBITDA above guidance • Expect continued str
Slide 15: Tennis Channel 1Q24 Audience Growth
• Tennis Channel’s 1Q24 average audience grew 35% y-o-y (households) and 27% y-o-y (total viewers); social media impressions grew 141% 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 16: Ventures Portfolio Update
Ventures Portfolio Update • $318 million in cash at Ventures at quarter-end • During 1Q24 company received: 1Q24 Earnings Presentation • $49 million in exit distributions in 1Q24 • $3 million in capital distributions • Company made capital contributions of $2 million in minority investments in 1Q24
Slide 17: First Quarter Awards and Charitable Endeavors
Sinclair First Quarter Awards and Charitable Endeavors • Sinclair won a total of 47 broadcasting awards in the first quarter, including 7 national awards and 2 regional Emmy awards • Released second annual Corporate Social Responsibility Report on Earth Day, April 22nd 1Q24 Earnings Presentation • S
Slide 18: First Quarter Media Revenue (Consolidated)
First Quarter Media Revenue (Consolidated) Media Revenues vs Guidance ($ in millions) $810 $800 $800 1Q24 Earnings Presentation $790 $792 $780 $787 $770 $760 $750 1Q24 1Q24 Guidance Actual & 1 Pro Forma Results Media Revenues within guidance range: Pro Forma Media Revenues up 4% vs prior year period
Slide 19: First Quarter Adjusted EBITDA (Consolidated)
First Quarter Adjusted EBITDA (Consolidated) Adjusted EBITDA vs Guidance ($ in millions) $140 $139 1Q24 Earnings Presentation $138 $136 $134 $136 $132 $130 $128 $126 $128 $124 $122 1Q 2024 1Q 2024 Guidance Actual & 1 Pro Forma Results Adjusted EBITDA within guidance range: Pro Forma Adjusted EBITDA
Slide 20: First Quarter Balance Sheet (Consolidated)
First Quarter Balance Sheet (Consolidated) DEBT MATURITY SCHEDULE • Total debt at the end of 1Q24 was $4.1 billion • Sinclair Television Group’s (STG) first lien 1Q24 Earnings Presentation indebtedness ratio was 4.3x • STG Total Net Leverage was 5.3x • STG Interest Coverage was 2.9x • Repurchased $2
Slide 21: Second Quarter 2024 Guidance
Second Quarter 2024 Guidance Corporate For the three months ending June 30, and 2024 ($ in millions) Local Media Tennis Other Eliminations Consolidated MEDIA REVENUE Core advertising revenue $294 to 304 $16 $8 $(5) $312 to 323 2Q24 media revenue range of $813M to $832M, up 7% to up 9% Political adve
Slide 22: Full-Year 2024 Guidance (Consolidated)
Full-Year 2024 Guidance (Consolidated) 1Q24 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 1Q24 results; met guidance in Local Media segment for revenues and Adjusted EBITDA; met revenue and exceeded Adjusted EBITDA guidance for Tennis Channel • Maximizing value for all of our stakeholders; more than $91 million of debt (face value) bought back at an average 19% disc