Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 09:00 am ET

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Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, good day and thank you all for joining the Sinclair Broadcast Group Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

And now for opening remarks and introductions, I am pleased to turn the floor over to your host, Senior Vice President and CFO, Lucy Rutishauser. Please go ahead ma'am.

Executive
Lucy A. Rutishauser

Thank you, operator. Participating on the call with me today are Chris Ripley, President and CEO; Steve Marks, Executive Vice President and Chief Operating Officer of our Television Group; Rob Weisbord, Senior Vice President and Chief Revenue Officer; and Jeff Krolik, President of FOX Sports Net.

Before we begin, Billie-Jo McIntire will make our forward-looking statement disclaimer.

Executive
Billie-Jo McIntire

Certain matters discussed on this call may include forward-looking statements regarding among other things, future operating results. Such statements are subject to a number of risks and uncertainties, actual results in the future could differ from those described in the forward-looking statements as a result of various important factors, such factors have been set forth in the company's most recent reports as filed with the SEC and included in our third quarter earnings release.

The company undertakes no obligation to update these forward-looking statements, the company uses its website as a key source of company information, which can be accessed at www.sbgi.net. In accordance with Regulation FD, this call is being made available to the public. A webcast replay will be available on our website and will remain available until our next quarterly earnings release.

Included on the call will be a discussion of non-GAAP financial measures, specifically television BCF, EBITDA, free cash flow and leverage. These metrics are not meant to replace GAAP measurements, but are provided as supplemental detail to assist the public in their analysis and valuation of our company. A reconciliation of the non-GAAP financial measures to the GAAP measures in our financial statements is provided on our website under Investors/non-GAAP measures.

Chris Ripley will now walk you through our operating highlights.

Executive
Christopher S. Ripley

Good morning, everyone, and welcome to our third quarter earnings call, the first since our August closing of the FOX Regional Sports Network business. We are now industry leaders in local news and local sports, two of the most desired live content genres. While we focus on integrating the RSMs, our broadcast segment, which we now refer to as local news had a spectacular quarter, beating our guidance ranges on revenue, EBITDA and free cash flow.

Lucy is going to walk you through those results in detail. But before I turn it over to her, I would like to talk about the opportunities for the $16 billion diversified media company that we're operating today. With the addition of the regional sports networks, we have deepened our commitment to local content, becoming the leading premium live local sports and news company in the nation, a path we embarked on almost five years ago.

In fact, over 75% of our revenue is now generated from sports and news content. We believe the addition of the RSMs represents or