Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 09:00 am ET

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Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Sinclair Broadcast Group Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Ms. Lucy Rutishauser, Executive Vice President and Chief Financial Officer. Thank you. You may begin.

Executive
Lucy A. Rutishauser

Thank you, operator. Participating on the call with me today are Chris Ripley, President and CEO; Rob Weisbord, President of Broadcast and Chief Advertising Revenue Officer; and Billy Chambers, COO and CFO of Local Sports.

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 second 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 adjusted EBITDA, adjusted free cash flow and leverage. The company considers adjusted EBITDA to be an indicator of the operating performance of its assets. The company also believes that adjusted EBITDA is frequently used by industry analysts, investors and lenders as a measure of evaluation. These measures are not formulated in accordance with GAAP, are not meant to replace GAAP measurements and may differ from other companies uses or formulation. The company does not provide reconciliations on a forward-looking basis. Further discussions and reconciliations of the company's non-GAAP financial measures to comparable GAAP financial measures can be found on its website, www.sbgi.net.

Chris Ripley will now take you through our operating highlights.

Executive
Christopher S. Ripley

Thank you. Like many of you, we eagerly await discussing the state of the company without the backdrop of COVID-19. These past five months have certainly been challenging for the country, the economy, the industry and us as we face the pandemic's impact on businesses and consumers alike. First, I want to say how very proud I am of our employees who have done a tremendous job of adapting quickly to a new way of doing business. It is their -- it is through their hard work and perseverance that we've been able to operate our business seamlessly without sacrificing the quality that defines our company. We are already identifying learnings that we can take away from this period of time that can make us a stronger company going forward.

With regard to the second quarter trends, as we move through the quarter, we did begin to see signs of improvement in the advertising market,