BALTIMORE, Feb. 9, 2011 /PRNewswire/ -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair," today reported financial results for the three months and twelve months ended December 31, 2010.
"2010 ended on an even stronger note than originally anticipated with record levels of political advertising helping to drive net broadcast revenues up 23.5% in the quarter," commented David Smith, President and CEO of Sinclair. "For the year, excluding political, revenues from our core television business finished up 12.0% led by the automotive recovery. We expect to see continued improvement in our core advertising, driving our top-line in 2011. Based on the strength of the business and the cash flow generated, we made a special $0.43 per share cash dividend distribution to our shareholders in the fourth quarter of 2010, and for 2011 are permitted under our Bank Credit Agreement to return up to $40 million in dividends and/or share repurchases to our shareholders. I am pleased to report that due to our optimistic 2011 outlook and confidence in the economy longer-term, our Board of Directors has reinstated our dividend policy and declared a regular quarterly dividend in the amount of $0.12 per share, beginning with the payment date of March 15, 2011."
Net broadcast revenues from continuing operations were $189.9 million for the three months ended December 31, 2010, an increase of 23.5% versus the prior year period result of $153.9 million. The Company had operating income of $81.3 million in the three-month period, as compared to an operating loss of $66.1 million in the prior year period. Impairment charges related to goodwill and other intangible assets were $4.8 million in the three-month period, as compared to $119.5 million in the prior year period. The Company had net income attributable to Sinclair of $33.1 million in the three-month period versus a net loss of $67.8 million in the prior year period.
The Company reported diluted earnings per common share of $0.40 for the three-month period versus a diluted loss per common share of $0.85 in the prior year period.
Net broadcast revenues from continuing operations for the twelve months ended December 31, 2010 were $655.4 million, an increase of 18.2% versus the prior year period result of $554.6 million. The Company had operating income of $240.4 million in the twelve-month period versus the prior year period operating loss of $111.2 million. Impairment charges related to goodwill and other intangible assets were $4.8 million in the twelve-month period, as compared to $249.8 million in the prior year period. The Company had net income attributable to Sinclair of $76.1 million in the twelve-month period versus a net loss of $135.7 million in the prior year period.
The Company reported diluted earnings per common share of $0.94 in the twelve-month period versus a diluted loss per common share of $1.70 in the prior year period.
Operating Statistics and Income Statement Highlights:
Balance Sheet and Cash Flow Highlights:
Prior year presentation has been reclassified to conform to the presentation of current year generally accepted accounting principles.
The matters discussed in this news release, particularly those in the section labeled "Outlook," include forward-looking statements regarding, among other things, future operating results. When used in this news release, the words "outlook," "intends to," "believes," "anticipates," "expects," "achieves," and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including and in addition to the assumptions identified in this release, but not limited to, the impact of changes in national and regional economies, the volatility in the U.S. and global economies and financial credit markets which impact our ability to forecast, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market acceptance of new programming, the CW Television Network and MyNetworkTV programming, our news share strategy, our local sales initiatives, the execution of retransmission consent agreements, our ability to identify and consummate investments in attractive non-television assets and to achieve anticipated returns on those investments once consummated, and the other risk factors set forth in the Company's most recent reports on Form 10-Q, Form 10-K and Form 8-K, as filed with the Securities and Exchange Commission. There can be no assurances that the assumptions and other factors referred to in this release will occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements except as required by law.
In accordance with Regulation FD, Sinclair is providing public dissemination through this news release of its expectations for certain components of its first quarter 2011 and full year 2011 financial performance. The Company assumes no obligation to update its expectations. All matters discussed in the "Outlook" section are forward-looking and, as such, readers should not place any undue reliance on this information and should refer to the "Forward-Looking Statements" section above.
"2011 is off to a good start with the core business expected to grow and after realizing $6.2 million in revenues from the Super Bowl which aired on our 20 FOX affiliates," commented David Amy, EVP and CFO. "We continue to see growth in the automotive category in the first quarter, which is expected to increase 18%. On the expense side, our programming payments are expected to decline by almost $21 million for the year. Due to our expectation to generate significant cash flow, we will be reinvesting some of our cash flows into the television operations in order to drive our competitive positions, upgrade our infrastructure, and enhance our technical efficiencies. We will also be distributing a portion of the cash flow to our shareholders in the form of a quarterly dividend."
Sinclair Conference Call:
The senior management of Sinclair will hold a conference call to discuss its fourth quarter 2010 results on Wednesday, February 9, 2011, at 8:30 a.m. ET. After the call, an audio replay will be available at www.sbgi.net under "Investor Information/Earnings Webcast." The press and the public will be welcome on the call in a listen-only mode. The dial-in number is (877) 407-9205.
Sinclair Broadcast Group, Inc., one of the largest and most diversified television broadcasting companies, owns and operates, programs or provides sales services to 58 television stations in 35 markets. Sinclair's television group reaches approximately 22% of U.S. television households and is affiliated with all major networks. Sinclair owns equity interests in various non-broadcast related companies.
The Company regularly uses its website as a key source of Company information and can be accessed at www.sbgi.net.
Sinclair Broadcast Group, Inc. and Subsidiaries
Preliminary Unaudited Consolidated Statements of Operations
(in thousands, except per share data)
For the three months ended December 31,
For the twelve months ended December 31,
Station broadcast revenues, net of agency commissions
Revenues realized from station barter arrangements
Other operating divisions revenues
Station production expenses
Station selling, general and administrative expenses
Expenses recognized from station barter arrangements
Amortization of program contract costs and net realizable value adjustments
Other operating divisions expenses
Depreciation of property and equipment
Corporate general and administrative expenses
Amortization of definite-lived intangible assets and other assets
Gain on asset exchange
Impairment of goodwill, intangible and other assets
Total operating expenses
Operating income (loss)
OTHER INCOME (EXPENSE):
Interest expense and amortization of debt discount and deferred financing costs
(Loss) gain from extinguishment of debt
(Loss) income from equity and cost method investments
Other income, net
Total other expense
Income (loss) from continuing operations before income taxes
INCOME TAX (PROVISION) BENEFIT
Income (loss) from continuing operations
Loss from discontinued operations, net of related income tax benefit (provision) of $125, ($109), ($77) and ($350), respectively
NET INCOME (LOSS)
Net loss attributable to the noncontrolling interest
NET INCOME (LOSS) ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP
Dividends declared per share
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:
Basic earnings (loss) per share from continuing operations
Basic loss per share from discontinued operations
Basic earnings (loss) per share
Diluted earnings (loss) per share from continuing operations
Diluted loss per share from discontinued operations
Diluted earnings (loss) per share
Weighted average common shares outstanding
Weighted average common and common equivalent shares outstanding
Preliminary Unaudited Consolidated Historical Selected Balance Sheet Data:
Cash & cash equivalents (1)
Total current assets
Total long term assets
Current portion of debt
Total current liabilities
Long term portion of debt
Total long term liabilities
Total stockholders' deficit
Total liabilities & stockholders' deficit
(1) December 31, 2010 includes $5.1 million of restricted cash held in escrow for the redemption of
the 4.875% Senior Convertible Notes that was released in January 2011.
Unaudited Consolidated Historical Selected Statement of Cash Flows Data:
Net cash flow from operating activities
Net cash flow (used in) from investing activities
Net cash flow used in financing activities
Net decrease in cash & cash equivalents
Cash & cash equivalents, beginning of period
Cash & cash equivalents, end of period
SOURCE Sinclair Broadcast Group, Inc.