Sinclair, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Sinclair, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Sinclair, Inc. (SBGI) filed a Annual Report (10-K) with the SEC on February 29, 2024. Sinclair, Inc. filed its 2023 Form 10-K on February 29, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Television Broadcasting Stations. The filing includes data for Sinclair Broadcast Group, LLC. The company is incorporated in Maryland (MD).

Why It Matters

For investors and stakeholders tracking Sinclair, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Sinclair's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess the company's performance and future outlook. The detailed financial statements and disclosures within the 10-K are essential for understanding Sinclair's revenue streams, debt levels, and overall market position within the television broadcasting industry.

Risk Assessment

Risk Level: medium — Sinclair, Inc. shows moderate risk based on this filing. The company operates in the highly competitive and evolving television broadcasting industry, which faces challenges from digital media and changing advertising models, as indicated by its SIC code and business description.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Sinclair's performance and strategic positioning in the current media landscape.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-29 — Filing Date (Date the 10-K was filed)
• 4833 — SIC Code (Standard Industrial Classification for Television Broadcasting Stations)

Key Players & Entities

• Sinclair, Inc. (company) — Filer and company name
• Sinclair Broadcast Group, LLC (company) — Filer and company name
• Sinclair Broadcast Group Inc (company) — Former company name
• MD (location) — State of incorporation

FAQ

Risk Factors

• Competition and Market Changes [medium — market]: The company operates in a highly competitive market and is subject to changes in technology, consumer behavior, and advertising trends.
• Regulatory Environment [medium — regulatory]: The broadcasting industry is subject to extensive regulation by government agencies, which can impact operations and profitability.

Industry Context

Sinclair, Inc. operates within the television broadcasting industry, a sector characterized by local and national advertising revenue, content distribution, and evolving digital media landscapes.

Regulatory Implications

The television broadcasting industry is subject to regulations from bodies like the Federal Communications Commission (FCC) concerning licensing, content, and ownership rules.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-K to understand revenue trends, cost structures, and profitability.
2. Review the risk factors section to identify potential challenges and management's mitigation strategies.
3. Compare key financial metrics (if available in subsequent filings) to previous years to assess performance trajectory.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-29: 10-K Filing Date — Date Sinclair, Inc. filed its annual report.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by Sinclair, Inc. to report its annual financial results and business operations.)

SIC Code

Standard Industrial Classification code used to categorize businesses. (Indicates Sinclair's primary business activity is Television Broadcasting Stations (4833).)

Year-Over-Year Comparison

This is the initial filing data extracted, and a comparison to a previous filing is not possible without additional data.

Key Financial Figures

• $13.82 — ion based on the closing sales price of $13.82 on the NASDAQ stock market on June 30,
• $0.01 — clair's Class A common stock, par value $0.01 per share ("Old Sinclair Class A Common

Filing Documents

• sbgi-20231231.htm (10-K) — 4924KB
• exhibit44-descriptionofthe.htm (EX-4.4) — 28KB
• wbffkeyserinvestmentslease.htm (EX-10.15) — 60KB
• efsprofessionalservicesagr.htm (EX-10.16) — 109KB
• exhibit21-q42023subsidiari.htm (EX-21) — 17KB
• q42023ex23consentofpwc.htm (EX-23) — 2KB
• a311sbgi-20231231xxsinclai.htm (EX-31.1) — 17KB
• a312sbgi-20231231xxsinclai.htm (EX-31.2) — 17KB
• a313sbgi-20231231xxsinclai.htm (EX-31.3) — 17KB
• a314sbgi-20231231xxsinclai.htm (EX-31.4) — 17KB
• a321sbgi-20231231xxsinclai.htm (EX-32.1) — 6KB
• a322sbgi-20231231xxsinclai.htm (EX-32.2) — 6KB
• a323sbgi-20231231xxsinclai.htm (EX-32.3) — 6KB
• a324sbgi-20231231xxsinclai.htm (EX-32.4) — 6KB
• sinclairincclawbackpolicy1.htm (EX-97.1) — 27KB
• sbgi-20231231_g1.jpg (GRAPHIC) — 62KB
• 0001971213-24-000011.txt (&nbsp;) — 29316KB
• sbgi-20231231.xsd (EX-101.SCH) — 159KB
• sbgi-20231231_cal.xml (EX-101.CAL) — 165KB
• sbgi-20231231_def.xml (EX-101.DEF) — 1656KB
• sbgi-20231231_lab.xml (EX-101.LAB) — 1328KB
• sbgi-20231231_pre.xml (EX-101.PRE) — 1992KB
• sbgi-20231231_htm.xml (XML) — 4542KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 3 SUMMARY OF RISK FACTORS 3 PART I 6 ITEM 1.

BUSINESS

BUSINESS 6 ITEM 1A.

RISK FACTORS

RISK FACTORS 27 ITEM 1B. UNRESOLVED STAFF COMMENTS 44 ITEM 1C. CYBERSECURITY 44 ITEM 2.

PROPERTIES

PROPERTIES 45 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 45 ITEM 4. MINE SAFETY DISCLOSURES 45 PART II 46 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 46 ITEM 6. [RESERVED] 47 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 48 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 72 ITEM 8A.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA OF SINCLAIR, INC

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA OF SINCLAIR, INC. 72 ITEM 8B.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA OF SINCLAIR BROADCAST GROUP, LLC

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA OF SINCLAIR BROADCAST GROUP, LLC 72 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 72 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 72 ITEM 9B. OTHER INFORMATION 74 PART III 75 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 75 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 75 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 75 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 75 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 75 PART IV 76 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 76 ITEM 16. FORM 10-K SUMMARY 79

SIGNATURES

SIGNATURES 80 2 Table of Contents GENERAL This combined report on Form 10-K is filed by both Sinclair, Inc. ("Sinclair") and Sinclair Broadcast Group, LLC ("SBG"). Certain information contained in this document relating to SBG is filed by Sinclair and separately by SBG. SBG makes no representation as to information relating to Sinclair or its subsidiaries, except as it may relate to SBG and its subsidiaries. References in this report to "we," "us," "our," the "Company" and similar terms refer to Sinclair and its consolidated subsidiaries, including SBG, unless context indicates otherwise. As described under Company Reorganization in Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements below, upon consummation of the Reorganization (as defined therein) on June 1, 2023, Sinclair became the successor issuer to Sinclair Broadcast Group, Inc. ("Old Sinclair"), which, immediately following the Reorganization was converted into a limited liability company. SBG files reports under the Securities Exchange Act of 1934, as amended (the "Exchange Act") solely to comply with Section 1018(a) of the indenture governing the 5.125% Senior Notes due 2027 of Sinclair Television Group, Inc. ("STG"), a wholly-owned subsidiary of SBG. References to SBG herein may also include its predecessor, Old Sinclair, as context indicates.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report includes or incorporates forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, contingencies, our dividend policy, and other non-historical statements. When we use words such as " outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or similar expressions, we are making forward-looking statements. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements including, but not limited to, those listed below in summary form and as more fully described under Item 1A. Risk Factors , Item 7. Management's Discussion and Analysis of Financial Conditions and Results of Operations, and Item 7A, Quantitative and Qualitative Disclosures about Market Risk, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and in our other periodic filings with the SEC. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipate

BUSINESS

ITEM 1. BUSINESS Sinclair, Inc. ("Sinclair"), a Maryland corporation formed in 2022, is the parent company of Sinclair Broadcast Group, LLC ("SBG"), a Maryland limited liability company, which formed from the conversion of Sinclair Broadcast Group, Inc. ("Old Sinclair"), a Maryland corporation founded in 1986, to a Maryland limited liability company in 2023. Refer to Company Reorganization in this Item 1 . Sinclair is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platform, and, prior to the Deconsolidation (as defined below under Local Sports in this Item 1 ), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks, and professional sports. Additionally, Sinclair owns digital media companies that are complementary to our extensive portfolio of television station related digital properties and has interests in, owns, manages, and/or operates technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments. Sinclair and SBG's principal executive offices are located at 10706 Beaver Dam Road, Hunt Valley, Maryland 21030, their telephone number is (410) 568-1500, and Sinclair's website address is www.sbgi.net. The information contained on, or accessible through, Sinclair's website is not part of this Annual Report on Form 10-K and is not incorporated herein by reference. Company Reorganization On April 3, 2023, Old Sinclair, entered into an Agreement of Share Exchange and Plan of Reorganization (the "Share Exchange Agreement") with Sinclair, and Sinclair Holdings, LLC, a Ma

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