Sinclair, Inc. Files 10-Q for Q3 2024

Ticker: SBGI · Form: 10-Q · Filed: Nov 8, 2024 · CIK: 1971213

Sentiment: neutral

Topics: 10-Q, broadcasting, financials

TL;DR

**Sinclair Broadcast Group files Q3 2024 10-Q. Financials out.**

AI Summary

Sinclair, Inc. (Sinclair Broadcast Group, LLC) filed a 10-Q for the period ending September 30, 2024. The filing details financial information for the company, which operates in television broadcasting. Key financial data and operational aspects are presented in this report.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational details of Sinclair, Inc., crucial for understanding the company's current health and future prospects in the broadcasting industry.

Risk Assessment

Risk Level: medium — As a publicly traded company in the broadcasting sector, Sinclair faces inherent risks related to market competition, regulatory changes, and advertising revenue fluctuations.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the period ending September 30, 2024.

What is the primary business of Sinclair, Inc.?

Sinclair, Inc. is primarily involved in television broadcasting stations, as indicated by its Standard Industrial Classification code [4833].

When was this 10-Q form filed?

This 10-Q form was filed on November 8, 2024.

What is the fiscal year end for Sinclair, Inc.?

The fiscal year end for Sinclair, Inc. is December 31.

What is the SEC file number for Sinclair Broadcast Group, LLC?

The SEC file number for Sinclair Broadcast Group, LLC is 000-26076.

Filing Stats: 4,737 words · 19 min read · ~16 pages · Grade level 20 · Accepted 2024-11-08 15:11:15

Filing Documents

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 (the "Securities Act"), and Section 21E of the Exchange Act, and the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties, and assumptions about us, including, among other things, the following risks. All risk factors are deemed to be related to both Sinclair and its subsidiaries, including SBG. Any risks only applicable to Sinclair are denoted as such. Industry risks The business conditions of our advertisers and their ability to pay for services provided; the performance of networks and syndicators that provide us with programming content, as well as the performance of internally originated programming; multi-channel video programming distributors ("MVPD") and virtual MVPD's (" vMVPD," and together with MVPDs, "Distributors") subscriber churn due to the impact of technological changes, the proliferation of over-the-top ("OTT") direct-to-consumer platforms, the loss of key entertainment and sports programming previously exclusively available to subscribers, and economic conditions on consumers' desire to pay for subscription services; the business conditions of the Distributors we do business with and their ability to pay to broadcast our content on their distribution platforms; the loss of appeal of our local news, network content, syndicated program content, and sports programming, which may be unpredictable; the availability and cost of programming from networks and syndicators, as well as the cost of internally originated programming; for Sinclair, the availability and cost of rights to air professional tennis tournaments; our relationships with networks and their strategies to distribute their programmin

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Table of Contents SINCLAIR, INC. SINCLAIR BROADCAST GROUP, LLC FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 4

FINANCIAL STATEMENTS OF SINCLAIR, INC. (UNAUDITED)

ITEM 1A. FINANCIAL STATEMENTS OF SINCLAIR, INC. (UNAUDITED) 4 CONSOLIDATED BALANCE SHEETS 5 CONSOLIDATED STATEMENTS OF OPERATIONS 6 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 7 CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS 8 CONSOLIDATED STATEMENTS OF CASH FLOWS 10 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 11

FINANCIAL STATEMENTS OF SINCLAIR BROADCAST GROUP, LLC (UNAUDITED)

ITEM 1B. FINANCIAL STATEMENTS OF SINCLAIR BROADCAST GROUP, LLC (UNAUDITED) 30 CONSOLIDATED BALANCE SHEETS 31 CONSOLIDATED STATEMENTS OF OPERATIONS 32 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 33 CONSOLIDATED STATEMENTS OF MEMBER'S EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS 34 CONSOLIDATED STATEMENTS OF CASH FLOWS 36 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 37

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

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 54

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 68

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 68

OTHER INFORMATION

PART II. OTHER INFORMATION 70 2 Table of Contents

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 70

RISK FACTORS

ITEM 1A. RISK FACTORS 70

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 70

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 70

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 70

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 70

EXHIBITS

ITEM 6. EXHIBITS 71 SIGNATURE 72 3 Table of Contents

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS This report includes the Consolidated Financial Statements of Sinclair and SBG in Item 1A and Item 1B, respectively.

FINANCIAL STATEMENTS OF SINCLAIR, INC

ITEM 1A. FINANCIAL STATEMENTS OF SINCLAIR, INC. 4 Table of Contents SINCLAIR, INC. CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) (Unaudited) As of September 30, 2024 As of December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 536 $ 662 Accounts receivable, net of allowance for doubtful accounts of $ 5 and $ 4 , respectively 617 616 Income taxes receivable 7 8 Prepaid expenses and other current assets 195 189 Total current assets 1,355 1,475 Property and equipment, net 712 715 Operating lease assets 128 142 Goodwill 2,082 2,082 Indefinite-lived intangible assets 150 150 Customer relationships, net 318 369 Other definite-lived intangible assets, net 348 410 Other assets 692 742 Total assets (a) $ 5,785 $ 6,085 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 479 $ 913 Current portion of notes payable, finance leases, and commercial bank financing 38 36 Current portion of operating lease liabilities 22 21 Current portion of program contracts payable 85 76 Other current liabilities 85 57 Total current liabilities 709 1,103 Notes payable, finance leases, and commercial bank financing, less current portion 4,093 4,139 Operating lease liabilities, less current portion 135 152 Program contracts payable, less current portion 16 14 Deferred tax liabilities 288 252 Other long-term liabilities 195 204 Total liabilities (a) 5,436 5,864 Commitments and contingencies (See Note 5) Shareholders' equity: Class A Common Stock, $ .01 par value, 500,000,000 shares authorized, 42,584,090 and 39,737,682 shares issued and outstanding, respectively 1 1 Class B Common Stock, $ .01 par value, 140,000,000 shares authorized, 23,775,056 and 23,775,056 shares issued and outstanding, respectively, convertible into Class A Common Stock — — Additional paid-in capital 565 517 Accumulated deficit ( 149 ) ( 234 ) Accumulated other comprehensive (loss) income ( 2 ) 1 Tot

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