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Actionable news in SBGI: Sinclair Broadcast Group, Inc.,

Sinclair Broadcast: Lucy Rutishauser, Svp-Corporate Finance & Treasurer

The following excerpt is from the company's SEC filing.

(410) 568-1500

SINCLAIR REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS

REPORTS $0.45 DILUTED EARNINGS PER SHARE

DECLARES $0.165 QUARTERLY DIVIDEND PER SHARE

BALTIMORE (November 4, 2015) -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three and nine months ended September 30, 2015.

“Not only did our financial performance in the third quarter exceed our expectations, but we continued to expand our national footprint through additional station acquisitions, to enhance our digital distribution platform with the launch of our content and video management systems, and to offer more news, local sports and entertainment content to our viewers. In addition, we returned just over half of our discretionary cash flow to our shareholders in the quarter,” commented David Smith, President and CEO of Sinclair.

Mr. Smith continued, “We are equally excited about recent milestones on the adoption of the Next Generation Broadcast Platform, which we expect will redefine and increase the competitiveness and business use cases of television broadcasting in the future. ATSC 3.0 is an “all-IP” system, supporting broadcast and broadband hybrid services. The Advanced Television Systems Committee’s elevation of the Physical Layer of ATSC 3.0 to Candidate Standard status now clears the way for the Federal Communications Commission to consider and adopt new rules to allow television broadcasters to better compete with other forms of media, telecom and technology companies in providing consumers a more robust and efficient delivery pipeline.”

Three Months Ended September 30, 2015 Financial Results:

Total revenues increased 10.8% to $548.4 million, versus $495.0 million in the prior year period.

Operating income was $99.6 million, a decrease of 2.0%, versus operating income of $101.7 million in the prior year period.

Net income attributable to the Company was $43.3 million, versus net income of $48.3 million in the prior year period.

Diluted earnings per common share were $0.45 as compared to $0.49 in the prior year period.

Nine Months Ended September 30, 2015 Financial Results:

Total revenues increased 17.9% to $1,607.3 million, versus $1,362.7 million in the prior year period.

Operating income was $298.5 million, an increase of 4.5%, versus operating income of $285.7 million in the prior year period.

Net income attributable to the Company was $113.3 million, versus net income of $116.8 million in the prior year period.

Diluted earnings per common share were $1.18 as compared to $1.19 in the prior year period.

Three Months Ended September 30, 2015 Operating Highlights:

Net broadcast revenues, before barter, increased 11.0% to $497.4 million versus $448.1 million in the third quarter of 2014.

Political revenues were $7.8 million versus $33.8 million in the third quarter of 2014.

Revenues from our digital offerings increased 34.0% in the third quarter.

Recent Corporate Developments:

Television Stations:

In September, the Company closed on the acquisition of certain non-license assets of WDSI (FOX) and WFLI (CW) in Chattanooga, TN from New Age Media for $15.5 million. The Company will provide services to WFLI under agreements which it assumed in the acquisition. New Age Media will continue to own and operate WDSI. The FOX programming that previously aired on WDSI was moved to a multicast channel of WTVC, which is owned and operated by the Company, and the My Network programming that previously aired on a multicast channel of WDSI, was moved to a multicast channel of WFLI.

In October, the Company entered into a definitive agreement to purchase the broadcast assets of WSBT (CBS) in South Bend-Elkhart, IN owned by Schurz Communications, Inc., and to sell the broadcast assets of WLUC (NBC and FOX) in Marquette, MI to Gray Television, Inc. The Company anticipates that the swap will close at the end of 2015 or beginning of 2016, subject to the satisfaction of the closing conditions.

In October, the Company entered into a definitive agreement to acquire KUQI (FOX), KTOV-LP (MNT) and KXPX-LP (Retro TV) in Corpus Christi, Texas from High Maintenance, LLC for $9.3 million. The transaction is expected to close at the end of 2015 or beginning of 2016, subject to receipt of regulatory approvals and the satisfaction of standard closing conditions. The Company expects to fund the purchase price at closing through cash on hand.

In October, the Company entered into a definitive agreement to acquire KFXL (FOX) and KHGI, KHGI-LD, KWNB and KWNB-LD (ABC), in Lincoln, Nebraska for $31.25 million. The transaction, subject to bankruptcy court and FCC approval and subject to standard closing conditions, is expected to close at the end of 2015 or beginning of 2016. The Company expects to fund the purchase price at closing, through cash on hand.

In October, the Company facilitated the sale of the license assets of KVMY in Las Vegas, NV to Howard Stirk Holdings. Through this sale and other transactions facilitated by the Company, Howard Stirk Holdings has grown to become one of the largest minority-owned television broadcasters in the country.

Content and Distribution:

During the third quarter, the Company renewed its multi-year retransmission consent agreement with DISH Network.

In September, the Company’s professional wrestling promotion, Ring of Honor Wrestling (“ROH”), signed a 6-month international broadcast deal with L’Equipe 21, a free, sports-based television channel in France. ROH also announced additional syndicated broadcast deals in Philadelphia, PA, Detroit, MI, and Charlotte, NC.

In September, American Sports Network (“ASN”) entered into a multi-year sublicense agreement with ESPN to televise college football and basketball games for the Mid-American Conference and basketball games for the American Athletic Conference, beginning with the 2015 academic year. ASN also entered into agreements with several top collegiate hockey conferences including Hockey East, the National Collegiate Hockey Conference, ECAC Hockey and the Western Collegiate Hockey Association to broadcast as many as 30 total hockey games per year. In October, ASN entered into an agreement with First Round Media, LLC, doing business as College Insiders, giving ASN the rights to televise the Nova Home Loans Arizona Bowl on December 29, 2015 from Tucson, Arizona. It also entered into an agreement with Cutting Edge Sports Management to broadcast the FCS, Division II and Division III college all-star football game, Dream Bowl, for the next two years. To date, ASN has agreements with 1

conferences plus sublicense agreements with ESPN for two other...


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