Slide 1: First Quarter 2023 Conference Call
FIRST QUARTER 2023 CONFERENCE CALL MAY 3, 2023 Chris Ripley President & Chief Executive Officer Lucy Rutishauser EVP, Chief Financial Officer Rob Weisbord Chief Operating Officer President of Broadcast Published by: Sinclair Broadcast Group, Inc.
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: Diamond Deconsolidation
DIAMOND DECONSOLIDATION Due to the deconsolidation of Diamond on March 1, 2022 and in order to have a meaningful discussion around comparative results and trends, all numbers of prior financial reporting periods in this presentation reflect Sinclair-only pro forma numbers, and thus exclude Diamond a
Slide 5: Pending Holding Company Reorganization
PENDING HOLDING COMPANY REORGANIZATION • Will provide greater flexibility for value creation • Simplifies corporate structure Sinclair, Inc. (SBGI) • Improves transparency of financial results Sinclair Broadcast Group Sinclair Ventures • Sinclair Broadcast Group will become a pure play broadcaster •
Slide 6: Investment Portfolio
INVESTMENT PORTFOLIO Estimated value as of March 31, 2023 $1.3 billion or close to $19 per share • In Q1 2023, made investments of $33 million and received distributions, including exit payments, of $36 million Investments: • Real estate • Various types of properties, almost all income producing • P
Slide 7: Advancing NextGen Broadcast: Data Distribution Core Network
ADVANCING NEXTGEN BROADCAST Data Distribution Core Network • Building and operating a NextGen Broadcast Data Distribution Core Network along with our partners CAST.ERA, SK Telecom and Saankhya Labs • Will create an interconnected platform to provide commercial services and solutions for national dat
Slide 8: Advancing NextGen Broadcast: Other Advancements
ADVANCING NEXTGEN BROADCAST Other Advancements • Continue to deploy NextGen Broadcast technology in additional markets • NextGen Broadcast now in nearly 70 Markets, covering over 60% of the country • Industry goal of 75% of US coverage by year-end • Advanced Emergency Information • Launching nations
Slide 9: Investments in Transformation
INVESTMENTS IN TRANSFORMATION Reimagining operational workflows • Adding enhanced capabilities to: • News Gathering • Media Operations Systems • Entered partnerships with several providers and platforms that align with our vision for transformation • Began migrating existing media and playout operat
Slide 10: Distribution
DISTRIBUTION Partnership Updates • YouTube TV (YTTV) • Adds carriage of Tennis Channel and T2 to its lineup • Beginning June 1 to coincide with Roland-Garros (the French Open) • Adds CHARGE! and TBD to YTTV service offering and renews carriage of Comet • Extends YTTV existing carriage of Sinclair’s
Slide 11: Corporate Responsibility
CORPORATE RESPONSIBILITY ESG Update • Released our first annual ESG report • Sinclair Cares: Mental Health Support + Hope • Company-wide, on-air campaign to encourage mental health awareness • Entered a multi-year, national agreement with USC Shoah Foundation • The Institute for Visual History and E
Slide 12: Q1 2023 Results: Media Revenues
Q1 2023 RESULTS Q1 2023 Media Revenues o Decreased 6% vs prior year period driven by: o Absence of political ad revenues due to non-political year o Core advertising o Macroeconomic weakness o Distributor subscriber churn o Diamond management fee Note: Pro Forma Media Revenues exclude certain revenu
Slide 13: Q1 2023 Results: Adjusted EBITDA
Q1 2023 RESULTS Q1 2023 Adjusted EBITDA o Adjusted EBITDA decreased 40% vs prior year period driven by o Media revenues (see prior page) o Media expenses o Expense lift due to annual compensation step ups o Timing of Tennis tournaments o Investments in technology o Corporate overhead – Group and gen
Slide 14: Q1 2023 Results vs. Forecast
Q1 2023 RESULTS VS. FORECAST MEDIA REVENUE ADJUSTED EBITDA ($ in millions) ($ in millions) $780 $130 $768 $125 $770 $766 $120 $120 $760 $115 $113 $750 $110 $749 $99 $740 $105 $730 $100 $95 $720 $90 $710 $85 $700 $80 1Q23 Guidance 1 1Q23 Results 1Q23 Guidance1 1Q23 Results Media revenues at the high
Slide 15: Sinclair Balance Sheet
SINCLAIR BALANCE SHEET Total debt at the end of the first quarter was $4.3 billion • Sinclair Television Group’s first lien indebtedness ratio was 3.5x and total net leverage was 4.4x Rule 10b5-1 plan repurchase of approximately 3.6M shares of common stock in Q1 2023 • Since March 31st we have purch
Slide 16: Outlook
OUTLOOK MEDIA REVENUE ADJUSTED EBITDA ADJUSTED FREE Q2 2023 media revenue range Q2 2023 Adjusted EBITDA of CASH FLOW of $750M to $766M, down 8% $84M to $104M down vs. pro Q2 2023 Adjusted Free Cash to 10%, vs. Q2 2022 of $831M forma Q2 2022 Adjusted Flow of $-6M to $16M EBITDA of $184M • Absence of
Slide 17: Key Takeaways
KEY TAKEAWAYS • Pending HoldCo reorganization to provide greater flexibility for creating value within the company • 2023 expected to be a year of investments focusing on technology, NextGen Broadcasting, Cloud transformation, and sales platforms • Sinclair’s investment portfolio is estimated at app