BALTIMORE, Feb. 6, 2013 /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, 2012.
"2012 was a remarkable year for our Company," commented David Smith, President and CEO of Sinclair. "We successfully closed on 30 TV stations, recorded record levels of political advertising, benefited from a rebound in the automotive advertising category, and achieved historic levels in key financial metrics. As we look forward to 2013, we are very excited about our prospects, including starting the year with the Super Bowl on our 11 CBS stations. While we have led the current consolidation trend in the broadcast industry, we believe there are still many opportunities for us to continue to acquire quality television assets, unlock hidden value, and strengthen our competitive position."
"Discontinued Operations" accounting has been adopted in the financial statements for all periods presented in this press release for the sale of WLAJ-TV, our ABC affiliate in Lansing, Michigan which is expected to close in February 2013, and for the sale of WLWC-TV, our CW affiliate in the Providence, RI/New Bedford, MA market which is expected to close in the second quarter of 2013. Therefore, the related results from operations, net of related income taxes, have been reclassified from income from continuing operations and reflected as net income from discontinued operations. Prior current year amounts have been reclassified to conform to current year GAAP presentation.
Net broadcast revenues from continuing operations were $287.1 million for the three months ended December 31, 2012, an increase of 58.8% versus the prior year period result of $180.8 million. The Company had operating income of $119.1 million in the three-month period, as compared to operating income of $63.5 million in the prior year period. Net income attributable to the Company was $59.0 million in the three-month period, versus net income of $22.7 million in the prior year period.
The Company reported diluted earnings per common share of $0.73 for the three-month period ended December 31, 2012 versus diluted earnings per common share of $0.28 in the prior year period.
Net broadcast revenues from continuing operations were $920.6 million for the twelve months ended December 31, 2012, an increase of 42.1% versus the prior year period result of $648.0 million. The Company had operating income of $329.3 million in the twelve-month period, as compared to operating income of $225.6 million in the prior year period. Net income attributable to the Company was $144.7 million in the twelve-month period, versus net income of $75.8 million in the prior year period.
The Company reported diluted earnings per common share of $1.78 in the twelve-month period ended December 31, 2012 versus diluted earnings per common share of $0.94 in the prior year period.
Operating Statistics and Income Statement Highlights:
Balance Sheet and Cash Flow Highlights:
Presentation of financial information for the prior year has been reclassified to conform to the presentation of generally accepted accounting principles for the current year.
The management fees associated with the Freedom Communications ("Freedom") local marketing agreement, which was terminated April 1, 2012 upon acquisition, are reflected in other net broadcast revenues.
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, 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, our ability to integrate acquired businesses and maximize operating synergies, our ability to obtain necessary governmental approvals for announced acquisitions, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market's acceptance of new programming and performance of, 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 any 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 2013 and full year 2013 financial performance. The Company assumes no obligation to update its expectations. All matters discussed in this "Outlook" section are forward-looking and, therefore, readers should not place any undue reliance on this information and should refer to the "Forward-Looking Statements" section above.
The term "Acquisition(s)" in this Outlook section refers to the recently acquired Newport stations, KBTV and the GoCom stations for the first quarter and full year 2013, and the Freedom stations for the first quarter 2013 only.
"After ending 2012 with record levels of political advertising, we are excited about the Company's operating direction and our drivers for 2013," commented David Amy, EVP and CFO. "Early estimates for sales in the automotive industry, which is our largest advertising category, reflect 9.0% growth that we expect will translate into increased ad revenues for us. As a result of the many stations we acquired in 2012, we believe our more balanced portfolio of "big four" network-affiliated stations will allow us to increase our revenue share, especially given our content offering of highly rated shows such as the local news and sports. This was evident in the $2.5 million in Super Bowl revenues we booked this February."
Sinclair Conference Call:
The senior management of Sinclair will hold a conference call to discuss its fourth quarter 2012 results on Wednesday, February 6, 2013, at 9:30 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., the largest and one of the most diversified television broadcasting companies, owns and operates, programs or provides sales services to 87 television stations in 47 markets. Sinclair's television portfolio consists of 24 FOX, 19 MNT, 16 CW, 12 ABC, 11 CBS, 3 NBC, 1 Independent, and 1 Azteca station. Sinclair's television group reaches approximately 27.1% 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)
Three Months Ended
Twelve Months Ended
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
Other operating divisions expenses
Depreciation of property and equipment
Corporate general and administrative expenses
Amortization of definite-lived intangible and other assets
Impairment of goodwill, intangible and other assets
Total operating expenses
OTHER INCOME (EXPENSE):
Interest expense and amortization of debt discount and
deferred financing costs
Loss from extinguishment of debt
Income from equity and cost method investments
Gain on insurance settlement
Other income, net
Total other expense
Income from continuing operations before income taxes
INCOME TAX PROVISION
Income from continuing operations
Income (loss) from discontinued operations, includes income
tax provision of $444, $111, $663 and $477, respectively
Net income attributable to the noncontrolling interests
NET INCOME ATTRIBUTABLE TO SINCLAIR
Dividends declared per share
BASIC AND DILUTED EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:
Basic earnings per share from continuing operations
Basic earnings per share
Diluted earnings per share from continuing operations
Diluted earnings per share
Weighted average common shares outstanding
Weighted average common and common equivalent shares
AMOUNTS ATTRIBUTABLE TO SINCLAIR BROADCAST
GROUP COMMON SHAREHOLDERS:
Income from continuing operations, net of tax
Income (loss) from discontinued operations, net of tax
Preliminary Unaudited Consolidated Historical Selected Balance Sheet Data:
Cash & cash equivalents
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
Unaudited Consolidated Historical Selected Statement of Cash Flows Data:
Net cash flow from operating activities
Net cash flow used in investing activities
Net cash flow from financing activities
Net increase (decreases) in cash & cash equivalents
Cash & cash equivalents, beginning of period
Cash & cash equivalents, end of period
SOURCE Sinclair Broadcast Group, Inc.