Sinclair Broadcast Group (SBGI) Misses Q3 EPS by 9c, Offers Outlook

Sinclair Broadcast Group (NASDAQ: SBGI) reported Q3 EPS of $0.30, $0.09 worse than the analyst estimate of $0.39. Revenue for the quarter came in at $670.9 million versus the consensus estimate of $673.59 million.

Fourth Quarter 2017

• Media revenues, before barter, are expected to be approximately $682.3 million to $684.3 million, down 5.8% to 6.1% year-over-year due to the absence of political revenues in a non-presidential election year.
• Embedded in the 2017 anticipated results are approximately $10.0 million in political revenues as compared to $113.2 million in the fourth quarter of 2016.
• Barter and trade revenue are expected to be approximately $33 million in the fourth quarter of 2017.
• Barter expense is expected to be approximately $29 million. $4 million of trade expense is included in media expenses (defined below).
• Media production expenses and media selling, general and administrative expenses (together, \"media expenses\"), excluding barter expense but including trade expense, are expected to be approximately $420 million, including $2 million in stock-based compensation expense.
• Program contract amortization expenses are expected to be approximately $28 million.
• Program contract payments are expected to be approximately $27 million.
• Corporate overhead is expected to be approximately $23 million, including $1 million of stock-based compensation expense and $6 million of acquisition-related costs
• Research and development costs related to ONE Media are expected to be $7 million.
• Other non-media revenues less other non-media expenses are expected to be $1 million, assuming current equity interests.
• Depreciation on property and equipment is expected to be approximately $23 million, assuming the capital expenditure assumption below.
• Amortization of acquired intangibles is expected to be approximately $44 million.
• Net interest expense is expected to be approximately $51 million ($49 million on a cash basis), assuming no changes in the current interest rate yield curve and changes in debt levels based on the assumptions discussed in this \"Outlook\" section.
• Net cash taxes paid are expected to be approximately $22 million, based on the assumptions discussed in this \"Outlook\" section. The Company\'s effective tax rate is expected to be approximately 35%
• Routine capital expenditures are expected to be approximately $29 million, with another $11 million of capital expenditures related to the spectrum repack.

For earnings history and earnings-related data on Sinclair Broadcast Group (SBGI) click here.

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