Atlanta Braves Holdings Reports Second Quarter 2024 Financial Results

About this update from Atlanta Braves Holdings, Inc. - Series A

ENGLEWOOD, Colo. --(BUSINESS WIRE)-- Atlanta Braves Holdings, Inc. (“ABH”) (Nasdaq: BATRA, BATRK) today reported second quarter 2024 results. Headlines include: Total revenue grew 5% to $283 million in second quarter Baseball revenue up 4% to $266 million Mixed-use development revenue up 11% to $17 million Operating income up 28% to $25 million and Adjusted OIBDA(1) up 9% to $46 million in second quarter Announced new and expanded seating options at Truist Park to open ahead of 2025 season as part of commitment to enhance fan experience Discussion of Results Three months ended Six months ended June 30 , June 30 , 2023 2024 % Change 2023 2024 % Change amounts in thousands amounts in thousands Baseball revenue $ 254,935 $ 266,001 4 % $ 272,496 $ 287,971 6 % Mixed-use development revenue 15,188 16,875 11 % 28,599 31,985 12 % Total revenue 270,123 282,876 5 % 301,095 319,956 6 % Operating costs and expenses: Baseball operating costs (195,458 ) (205,070 ) (5 )% (232,229 ) (250,277 ) (8 )% Mixed-use development costs (2,273 ) (2,410 ) (6 )% (4,204 ) (4,663 ) (11 )% Selling, general and administrative, excluding stock-based compensation (30,522 ) (29,646 ) 3 % (54,179 ) (53,020 ) 2 % Adjusted OIBDA $ 41,870 $ 45,750 9 % $ 10,483 $ 11,996 14 % Operating income (loss) $ 19,467 $ 24,936 28 % $ (29,790 ) $ (27,419 ) 8 % Regular season home games in period 43 40 43 40 Unless otherwise noted, the following discussion compares financial information for the three months ended June 30, 2024 to the same period in 2023. Baseball revenue is derived from two primary sources on an annual basis: (i) baseball event revenue (ticket sales, concessions, advertising sponsorships, suites and premium seat fees) and (ii) broadcasting revenue (national and local broadcast rights). Mixed-use development revenue is derived from the Battery Atlanta mixed-use facilities and primarily includes rental income. The following table disaggregates revenue by segment and by source: Three months ended Six months ended June 30 , June 30 , 2023 2024 % Change 2023 2024 % Change amounts in thousands amounts in thousands Baseball: Baseball event $ 162,368 $ 171,350 6 % $ 163,486 $ 172,518 6 % Broadcasting 68,558 70,950 3 % 69,449 73,051 5 % Retail and licensing 19,747 19,624 (1 )% 24,122 25,277 5 % Other 4,262 4,077 (4 ) 15,439 17,125 11 % Baseball revenue 254,935 266,001 4 % 272,496 287,971 6 % Mixed-use development 15,188 16,875 11 % 28,599 31,985 12 % Total revenue $ 270,123 $ 282,876 5 % $ 301,095 $ 319,956 6 % There were 40 home games played in the second quarter of 2024 compared to 43 home games in the prior year period. Baseball revenue increased 4% in the second quarter due to growth in baseball event and broadcasting revenue. Baseball event revenue grew primarily due to new sponsorship agreements and contractual rate increases on season tickets and existing sponsorship contracts, partially offset by fewer regular season home games. Broadcasting revenue increased primarily due to more regular season games played (home and away) as well as contractual rate increases. Mixed-use development revenue grew 11% during the second quarter due to increases in rental income related to tenant recoveries and higher parking revenue. Operating income and Adjusted OIBDA increased in the second quarter as revenue growth more than offset increased baseball operating costs. Baseball operating costs increased due to higher player salaries, increases under MLB’s revenue sharing plan and increased minor league team and player expenses, partially offset by lower variable concessions and retail expenses driven by fewer regular season home games. Selling, general and administrative expense was relatively flat in the second quarter. FOOTNOTES 1) For a definition of Adjusted OIBDA (as defined by ABH) and the applicable reconciliation, see the accompanying schedule. Important Notice: Atlanta Braves Holdings, Inc. (Nasdaq: BATRA, BATRK) will be available to answer questions on Liberty Media’s earnings conference call which will begin at 10:00 a.m. (E.T.) on August 8, 2024 . The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13742818 at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://www.bravesholdings.com/investors/news-events/ir-calendar . Links to this press release will also be available on the ABH website. This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, product and marketing strategies, future financial performance and prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, ABH’s historical financial information not being representative of its future financial position, results of operations, or cash flows, ABH’s ability to recognize anticipated benefits from the Split-Off, possible changes in the regulatory and competitive environment in which ABH operates (including an expansion of MLB), the unfavorable outcome of pending or future litigation, operational risks of ABH and its business affiliates, including operations outside of the U.S. , ABH’s indebtedness and its ability to obtain additional financing on acceptable terms and cash in amounts sufficient to service debt and other financial obligations, tax matters, ABH’s ability to use net operating loss and disallowed business interest carryforwards, compliance with government regulations and potential adverse outcomes of regulatory proceedings, changes in the nature of key strategic relationships with broadcasters, partners, vendors and joint venturers, the impact of organized labor, the performance and management of the mixed-use development, disruptions in ABH’s information systems and information system security, ABH’s use and protection of personal data and the impact of inflation and weak economic conditions on consumer demand. These forward-looking statements speak only as of the date of this press release, and ABH expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in ABH’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of ABH, including the most recently filed Forms 10-K and 10-Q, for additional information about ABH and about the risks and uncertainties related to ABH’s business which may affect the statements made in this press release. NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DISCLOSURES SCHEDULE 1: Reconciliation of Adjusted OIBDA to Operating Income (Loss) To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for ABH together with reconciliations to operating income, as determined under GAAP. ABH defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and impairment charges. ABH believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, ABH views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that ABH management considers in assessing the results of operations and performance of its assets. The following table provides a reconciliation of Adjusted OIBDA for ABH to operating income (loss) calculated in accordance with GAAP for the three and six months ended June 30, 2023 and June 30, 2024 . Three months ended Six months ended June 30 , June 30 , (amounts in thousands) 2023 2024 2023 2024 Operating income (loss) $ 19,467 $ 24,936 $ (29,790 ) $ (27,419 ) Stock-based compensation 3,153 3,705 6,344 7,424 Depreciation and amortization 19,250 17,109 33,929 31,991 Adjusted OIBDA $ 41,870 $ 45,750 $ 10,483 $ 11,996 Baseball $ 37,183 $ 37,391 $ 1,348 $ (4,325 ) Mixed-use development 10,166 11,509 19,319 21,442 Corporate and other (5,479 ) (3,150 ) (10,184 ) (5,121 ) SCHEDULE 2: Cash and Debt The following presentation is provided to separately identify cash and debt information. ABH cash decreased $60 million during the second quarter due to cash used in operations primarily driven by seasonal working capital changes as well as increases in restricted cash held and capital expenditures, partially offset by net borrowings. ABH debt increased $20 million in the second quarter primarily due to borrowings on the mixed-use development credit facilities to support current capital projects. (amounts in thousands) March 31, 2024 June 30, 2024 ABH Cash (GAAP)(a) $ 181,461 $ 121,239 Debt: Baseball League wide credit facility $ — $ — MLB facility fund - term 30,000 30,000 MLB facility fund - revolver 40,825 40,250 TeamCo revolver — — Term debt 162,119 162,119 Mixed-use development 350,428 370,908 Total ABH Debt $ 583,372 $ 603,277 Deferred financing costs (3,459 ) (3,241 ) Total ABH Debt (GAAP) $ 579,913 $ 600,036 a) Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $28 million and $40 million as of March 31, 2024 and June 30, 2024 , respectively. ATLANTA BRAVES HOLDINGS CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION June 30, 2024 (unaudited) June 30 , December 31 , 2024 2023 amounts in thousands, except share amounts Assets Current assets: Cash and cash equivalents $ 121,239 125,148 Restricted cash 40,117 12,569 Accounts receivable and contract assets, net of allowance for credit losses of $523 and $332 , respectively 58,730 62,922 Other current assets 28,210 17,380 Total current assets 248,296 218,019 Property and equipment, at cost 1,149,681 1,091,943 Accumulated depreciation (348,617 ) (325,196 ) 801,064 766,747 Investments in affiliates, accounted for using the equity method 107,321 99,213 Intangible assets not subject to amortization: Goodwill 175,764 175,764 Franchise rights 123,703 123,703 299,467 299,467 Other assets, net 117,669 120,884 Total assets $ 1,573,817 1,504,330 Liabilities and Equity Current liabilities: Accounts payable and accrued liabilities $ 99,483 73,096 Deferred revenue and refundable tickets 146,281 111,985 Current portion of debt 137,673 42,153 Other current liabilities 4,733 6,439 Total current liabilities 388,170 233,673 Long-term debt 462,363 527,116 Finance lease liabilities 102,450 103,586 Deferred income tax liabilities 47,566 50,415 Pension liability 13,262 15,222 Other noncurrent liabilities 35,288 33,676 Total liabilities 1,049,099 963,688 Equity: Preferred stock, $.01 par value. Authorized 50,000,000 shares; zero shares issued at June 30, 2024 and December 31, 2023 — — Series A common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 10,318,162 and 10,318,197 at June 30, 2024 and December 31, 2023 , respectively 103 103 Series B common stock, $.01 par value. Authorized 7,500,000 shares; issued and outstanding 977,776 and 977,776 at June 30, 2024 and December 31, 2023 , respectively 10 10 Series C common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 50,676,231 and 50,577,776 at June 30, 2024 and December 31, 2023 , respectively 507 506 Additional paid-in capital 1,096,021 1,089,625 Accumulated other comprehensive earnings (loss), net of taxes (7,429 ) (7,271 ) Retained earnings (deficit) (576,539 ) (554,376 ) Total stockholders' equity 512,673 528,597 Noncontrolling interests in equity of subsidiaries 12,045 12,045 Total equity 524,718 540,642 Commitments and contingencies Total liabilities and equity $ 1,573,817 1,504,330 ATLANTA BRAVES HOLDINGS CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION June 30, 2024 (unaudited) Three months ended Six months ended June 30 , June 30 , 2024 2023 2024 2023 amounts in thousands, except per share amounts Revenue: Baseball revenue $ 266,001 254,935 $ 287,971 272,496 Mixed-use development revenue 16,875 15,188 31,985 28,599 Total revenue 282,876 270,123 319,956 301,095 Operating costs and expenses: Baseball operating costs 205,070 195,458 250,277 232,229 Mixed-use development costs 2,410 2,273 4,663 4,204 Selling, general and administrative, including stock-based compensation 33,351 33,675 60,444 60,523 Depreciation and amortization 17,109 19,250 31,991 33,929 257,940 250,656 347,375 330,885 Operating income (loss) 24,936 19,467 (27,419 ) (29,790 ) Other income (expense): Interest expense (9,713 ) (9,448 ) (19,156 ) (18,360 ) Share of earnings (losses) of affiliates, net 11,622 11,462 13,249 10,659 Realized and unrealized gains (losses) on intergroup interests, net — (49,409 ) — (62,786 ) Realized and unrealized gains (losses) on financial instruments, net 931 3,840 3,905 3,079 Other, net 2,217 3,316 3,986 4,157 Earnings (loss) before income taxes 29,993 (20,772 ) (25,435 ) (93,041 ) Income tax benefit (expense) (884 ) (8,141 ) 3,272 6,152 Net earnings (loss) $ 29,109 (28,913 ) $ (22,163 ) (86,889 ) Basic net earnings (loss) attributable to Series A, Series B and Series C Atlanta Braves Holdings, Inc. shareholders per common share $ 0.47 (0.47 ) $ (0.36 ) (1.41 ) Diluted net earnings (loss) attributable to Series A, Series B and Series C Atlanta Braves Holdings, Inc. shareholders per common share $ 0.46 (0.47 ) $ (0.36 ) (1.41 ) ATLANTA BRAVES HOLDINGS CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION June 30, 2024 (unaudited) Six months ended June 30 , 2024 2023 amounts in thousands Cash flows from operating activities: Net earnings (loss) $ (22,163 ) (86,889 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 31,991 33,929 Stock-based compensation 7,424 6,344 Share of (earnings) losses of affiliates, net (13,249 ) (10,659 ) Realized and unrealized (gains) losses on intergroup interests, net — 62,786 Realized and unrealized (gains) losses on financial instruments, net (3,905 ) (3,079 ) Deferred income tax expense (benefit) (2,801 ) (7,014 ) Cash receipts from returns on equity method investments 5,838 6,225 Net cash received (paid) for interest rate swaps 3,036 2,200 Other charges (credits), net (1,480 ) (3,754 ) Net change in operating assets and liabilities: Current and other assets (8,574 ) (14,338 ) Payables and other liabilities 60,635 50,141 Net cash provided by (used in) operating activities 56,752 35,892 Cash flows from investing activities: Capital expended for property and equipment (57,432 ) (29,700 ) Investments in equity method affiliates and equity securities (714 ) — Other investing activities, net 41 110 Net cash provided by (used in) investing activities (58,105 ) (29,590 ) Cash flows from financing activities: Borrowings of debt 33,405 15,815 Repayments of debt (4,787 ) (18,893 ) Contribution from noncontrolling interest — 11,289 Other financing activities, net (3,626 ) (4,756 ) Net cash provided by (used in) financing activities 24,992 3,455 Net increase (decrease) in cash, cash equivalents and restricted cash 23,639 9,757 Cash, cash equivalents and restricted cash at beginning of period 137,717 172,813 Cash, cash equivalents and restricted cash at end of period $ 161,356 182,570 View source version on businesswire.com : https://www.businesswire.com/news/home/20240807965906/en/ Shane Kleinstein (720) 875-5432 Source: Atlanta Braves Holdings, Inc.

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