Sinclair Declares Dividend As Q3 Earnings Beat The Street

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It may not have Tribune Media, but it does have a big array of regional sports networks to give it the revenue boost and long-term growth it seeks.


With that said, Sinclair Broadcast Group shares dipped by more than 2% on Wednesday in reaction to the company’s Q3 earnings results.

Sinclair enjoyed revenue of $1.13 billion in Q3, rising from $766.3 million. That surpassed the Zacks Consensus Estimate by 50.3%.

Further, it’s adjusted Earnings Per Share improved to $1.15 per share, up from 62 cents. This beat the Zacks Consensus Estimate of $0.33 per share.

“This past quarter marks a defining moment for Sinclair with the acquisition of 21 Regional Sports Network brands, the largest transaction in our Company’s history and establishing us as a leader in local sports and news, two of the most watched live content genres,” said President/CEO Chris Ripley.  “Our legacy broadcast business, meanwhile, outperformed on all key financial targets in the third quarter.  Looking ahead to 2020, we expect to benefit from our biggest political ad revenue year on our record, the successful launch of Marquee with the Chicago Cubs, and a seamless integration of our newly acquired RSNs.”

With the results’ release, Sinclair’s Board of Directors declared a quarterly cash dividend of $0.20 per share on the Company’s Class A and Class B common stock.  The dividend is payable on December 16, 2019, to the holders of record at the close of business on November 29, 2019.

What does Sinclair Broadcast Group’s Q4 outlook look like? Here it is:

Consolidated 2019 Outlook ($ in millions)

Fourth Quarter

Full Year

Media Revenues

$1,565 to $1,587

$4,030 to $4,051

Political Revenues Included in Media
Revenues

$15 to $20

$26 to $31

Distribution Revenues Included in Media
Revenues

$1,105 to $1,110

$2,502 to $2,507

Non-Media Revenues

$38

$192

Total Revenues

$1,604 to $1,625

$4,221 to $4,243

Media Programming & Production Expenses and
Media Selling, General and Administrative
Expenses

$1,060 to $1,061

$2,784 to $2,785

Stock-based Compensation Expense

$4

$17

Non-Media Expenses, including ONE Media and
Research and Development Costs

$38

$158

Corporate Overhead

$32

$349

     Stock-based Compensation Expense

$3

$19

Non-recurring costs for transaction fees, legal,
litigation and regulatory

$6

$250

Program Contract Payments

$23

$94

Program Contract Amortization

$23

$90

Sports Rights Payments

$459

$577

Sports Rights Amortization Included in Media
Expenses

$429

$622

Depreciation on Property and Equipment

$27

$96

Amortization of Acquired Intangibles

$166

$349

Net Gains on Asset Dispositions

$29

$86

Operating Income

$287 to $308

$480 to $501

Net Interest Expense

$182

$399

Net Interest Expense – Cash Basis

$161

$366

Equity Method Investments Loss (Income)

$(1)

$37

Income Tax Benefit

$10

$99

Net Cash Taxes Paid

Less than $1

$31

Diamond Preferred Dividend (included in Net
Income Attributable to the Noncontrolling
Interests)

$25

$35

Total Capital Expenditures, Including Repack

$65 to $70

$162 to $167

     Repack Capital Expenditures

$26

$67

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