SBGI - Earnings call transcript Q4 2017 | Sinclair Broadcast Group, Inc.

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Operator

Greetings and welcome to Sinclair Broadcast Group Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Lucy Rutishauser. you. Thank

begin. may You

Lucy A. Rutishauser

Executive Good Vice are Participating Officer. and Chris David David and Group; Executive Steve and operator. Officer Pruett, Chief with our Steve and of Ripley, the TV Chief me Chief CEO; Television Marks, Chairman; Vice today Smith, Weisbord, Amy, President President morning, you, Development and on Operating Senior everyone. Rob call President Vice President Thank Vice Executive Officer; Chairman; Revenue

will make (X:XX) forward-looking we statement McIntyre Before begin, our disclaimer. Felicia

Unidentified Participant

to with Certain on regarding, call forward-looking recent our statements update important been undertakes various be include most among as from these as which fourth reports key number Actual may FD, as other to factors can differ Such company set described Such In with measures this highlights. valuation Investors/non-GAAP made forth source release. EBITDA, will the of factors. later in detail could uncertainties. available of of provided as are earnings broadcast accessed those subject to a Regulation our of statements matters to provided a to earnings results. results in this television company's the no result operating under release. the quarter is discussed future be in analysis forward-looking have you company These forward-looking and flow call on free in risks will accordance today the in available the now SEC website the and company in of information, financial statements. things, financial measures A its statements the measures. reconciliation future our are the available a operating uses The meant public. measurements, being filed cash financial www.sbgi.net. GAAP Chris and website at and is will included remain company. website to take our cash non-GAAP The obligation the on the their our our replay statements specifically through a A assist quarterly GAAP not Included our metrics webcast are of public non-GAAP supplemental call but and on measures, Ripley replace until next flow, leverage. be discussion will

Christopher S. Ripley

The how and landmark many as media local the individual Congress go in we corporate tax President results, level approved some to be overdue important through market. highlights. favor from commonly and Such and And of in of FCC long-term review in deregulation aware in long direction the are Many that income Before a probably to items right a me let television reducing relates step the the nationwide of sweeping the approved the IT. it related broadcast owned action, voted very competitiveness two to it you approved X.X, other that data This broadcast and of the and targeted generation XX% mobile next both ownership an were can technology the federal November, stations industry. to field. services XX%. playing to are critical In standard. FCC ATSC tax actions television deploying rate also reform use is the

effect expect in our on flow businesses in markets. sized We spending impact cash generation to medium positive on have and and year free immediate small decline our the the later by favorable local an ad

savings $X,XXX we paying employees that shared with portion upcoming bonuses by employees. We a are proud tax our almost X,XXX to of our to state

Turning partners. to network our

affiliation into for call, We the affiliation with we've and very our ABC, agreements Since both multi-year entered last consent and been earnings active transfers. front. in on the have cases, tribune agreements NBC this extending getting

move sixth expect us. conversations CW its Network which fall, schedule the will will be to we with productive an a a expect to a for continue primetime impact positive announcement audience revenue expanding and come Meanwhile, We FOX have and shortly. have this night

On the opt retransmission of in. retransmission ground-breaking with agreement Cable side, agreement form to did with for a and Verizon Television we our members Cooperative renewed their distribution the National

we XXX as for XXX entered that NCTC important more deal MVPDs and Last agreements single deal year, both and that Tennis doing MVPDs members, a efficiencies year. over as and has for virtual administrative with this with expect agreements Given sides. to our about allowed carriage into Comet were we independent affiliates, multiple well

XXXX another Nielsen until mutually-beneficial content first, a the appreciate us our addressable On with services. negotiating Likewise, commercial we with our Sorenson finalized renewed of in for we and are Media deal they the front, with for package agreement end with expanded advertising.

we As second-by-second times that we Spark via tool sell agreement times TVs. to both Because their entered discussed of allows such to two CPMs. for us into measurement. Sorenson's implemented year an nature, spots ads Analytics addressable audience three for year, typically targeted last This sell linear smart

Spectrum of create founded ATSC spectrum the next-gen nationwide data Univision. believe we're to consortium Co. interconnected to of Turning and John platform. an Nexstar us, to Co., Hane Spectrum will welcome be delivery X.X; and by TV catalyst as We adoption the President drive thrilled

leader Tower busy these with ATSC Speaking initial X.X of taking us Dallas, capabilities. in other of broadcasters frequency deployment, advantage launching network single the of as deployment the and a are and and consortium, next-gen new a American models

recently capabilities that the company take Korean broadcast view We the opportunities enabled on next-gen to MOU on Telecom next-gen with converge by SK Telecom's latest are with an our technologies. develop also signing long continuing our to systems

XXXX our part diversity recently the the community for in process scholarship for we of As field. students studying broadcast opened our outreach, application broadcast-related

us people continuous content connecting commitment employees of everywhere. our with Finally, achieve I want to to helping their thank vision our for

fourth results. will Lucy quarter the through you take Now

Lucy A. Rutishauser

you, Thank Chris.

exceeded am financial quarter that metrics. I all to in off, key our guidance pleased fourth First we report

fourth are Turning the of to the a due and the a absence year part political revenues XXXX $XXX XXXX, non-election part political fourth acquisition-related in in growth and core media offset quarter and retrans in million, lower by fourth-quarter primarily forma revenues financial On pro were a driven details, X% decrease revenues absence revenue. to revenue advertising. quarter than for the quarter fourth pro-forma of XXXX, million, versus basis, media of X.X% by offset $XXX by in

both As our exceeded revenues operating in in last expenses. defined startup was of by part precedential year, million initiatives. guidance. $XXX up prior expenses, offset from fees fourth a the year. million, media SG&A $XXX pro costs This quarter on our X% result the and operating $XX up expenses fourth In higher as of primarily revenue-generating were which basis. reverse forma in I the versus and was Media million X% Political retrans the to a production quarter, related election last cases, quarter mentioned, quarter normal in were media fourth a decline and fourth year in we

million includes debt quarter. of a gain cost fourth to $X.XX prior we'll tax of tax our corporate one-time million the Net guide. in of was income payment cash and rate XX% costs. favorable of to spectrum $XX XXXX after Milwaukee reduction provisions the our other quarter prior-quarter costs average million our the adjusted, reported guidance. and in higher reform per higher the legal, was was exceeding items, another of and We as costs. per first the our related on in in $XXX the The prior result million million, quarter approximately development so excluding XXX million share relating approximately insurance and tax and in and X%. our includes and re-measurement transaction, to by relating approximately common spectrum the XX%. income of the compensation $XX addition, were and sale. weighted overhead one-time media average group free Harrisburg Corporate million of sales. the Corporate reform or and the $XXX our gain had excluding transaction Research bonus our In in $X interest in the federal in $XX again flow million share EBITDA $XX quarter than deferred other spectrum earnings due higher million the assets million to $XX benefit was were expenses, $XXX for expenses and overhead fourth tax non-recurring million benefit guidance Baltimore, expense a of a time weighted $X.XX quarter and company million guidance the $XX the $XXX above gain have EBITDA million. to is $XX one fourth tax vacating We generated primarily was the quarter, million from for Diluted the liabilities to on re-measurement quarter quarter the shares $X

Our adjusted remains ratio EBITDA conversion flow an impressive free XX%. cash to

cash than is with forma we pro free lowering raising prior a the XXXX-XXXX, range, high but that For the the are better tightening slightly pre-Tribune, low guidance. end estimate end midpoint flow,

share. to flow pre-Tribune cash billion combined Our $X forma to $X.XX estimated new free per $X.XXX or billion XXXX-XXXX pro is at $XX.XX

are or $XX.XX pre-Tribune introducing of roughly that cash million flow of to billion per combined a share, XXXX-XXXX $X.XXX XXXX-XXXX share XX% flow X% $XX.XX also increase is free per We cash to the over combined free number. estimates to $X.XXX

also before forma reconfirming of million distribution our of Tribune estimated We're $X.XX and $XXX food $X.X also free divestitures. reconfirming $XXX pro TV, a reconfirming year plus the assuming XXXX-XXXX XXXX-XXXX to assuming shares post-Tribune billion, synergies. million divestitures before are of flow for the no We EBITDA and guidance cash one and million the network billion $XXX

want a to couple highlights, of sheet you walk through balance impact the XXXX that through I accounting there rule your going Before model. flow that and will changes are cash

First, expense and no financials. barter reflected longer will recognition be pursuant barter revenue to the our revenue rules, in

was media in revenues at XXXX, a reflected which be result, trade in million As estimated already and $XX will and XXXX, in in the revenue, guidance. is million $XX included

outlay lag, we pertains reimbursement income will reimbursement capital a cash as we the the cash equipment about government, expenditures statement. gain the on through to day the flow will which the be the And expect the statement. on to it on be reflected when repack, XX to the XXX As day from run receive for

gain. purposes, EBITDA CapEx will reimbursement calculation flow we outlay of repack For free both and the cash exclude and the

and capital million cash Turning million, the flow quarter expenditures for repack. were the in highlights; fourth to the balance $XX including $X sheet

be expect to $XXX ATSC includes CapEx for million million and $XXX projects, which For $XX to upgrades total the multiple XXXX, building X.X million, we repack.

CapEx Cash the quarter fourth million. were the is during to programming million. be $XXX million $XX payments Excluding to repack, excepted $XXX

paid to This million rate. are and in Net $XX of were of qualifying in be effective lower For fourth proceeds be taxes XXXX. At XX%. plus million, us. XXXX, intermediary approximately for XX, non-guaranteed rate the Cash to quarter hand billion, million programming and estimating $XXX cash $XX the statutory estimating million $XX to debt $XXX taxes to payments $XXX total was In XXXX the $XX and cash we tax released reflects we're spectrum be at to December flat million accounts. was December cash VIE auction restricted on million, tax XX cash debt. of including $X.XX income million was this January, federal

almost In on the and we non-guaranteed our had total basis, was to is net holding $XXX the net addition, X.X of bringing leverage. through of This on million debt $X.X leverage below Total billion. the company VIE revolver, the our target times at available eight-quarter cash. low quarter end and net trailing a excluding liquidity end

X.X and high be The X.X at was before on the of quarters impressive the we first within estimate and the X XX before divestitures, indebtedness be expect total lien times. for and acquisition end By X.XX times net closing times forma covenant times Pro times. average quickly the close, leverage leverage the an ratio net X.X we two-year low and XXXX on first our holding a of in company trailing Tribune, de-lever months. eight to low Tribune to X a historically to times to

of acquisition. $X anticipate billion now million anticipation another customary subject we In million in including by financing, debt distributed million the fees the Justice. the paying will repaid with which to the $XX we Tribune raised conditions, in closing scheduled mid-January, committed at connection of amortization $XX quarter ticking in committed FCC B in in approval we In of second the loans close of quarter transaction of began quarter, During quarter first closing. totaled $X.XXX closing the million second Term $XX XXXX, interest dividends. and with December, of assumed clearance the expense the the in in Department and anti-trust We guidance approximately an

will through Marks you our performance. now Now, operating Steve take

Steven M. Marks

non-election over X% the Thank beat media core and pro and In year. forma revenue Core is $XX year. result our you, quarter, advertising in morning, which the quarter fourth slightly. everybody. group we revenues revenues a good to grew million for Political a the XXXX, expectations in Lucy, advertising $XXX in fourth quarter of million expected were fourth be a the on versus basis

XXXX took for year. year, Arkansas political to for adjusting expect this very $XXX to will highly million which for million not and that contested XXXX are our $XXX place repeat political optimistic a be revenues in governors' season We the the race, in

Our guidance increase is political to to forma low mid-single-digits spend. for over political XXXX's pro

grew revenues, we we the to many Excluding share in a political XXXX, to drive are initiatives testament implementing revenues. that

business the XX% the fourth year. XX% Our to entire for in digital to continues growing compared as at outperform, quarter

Turning XXXX not to include our does which Tribune. outlook,

XXXX excluding core down For a This is period first the as be approximately would which Olympics, expected year. XXXX. of quarter, compared our revenues affiliate on Super affiliates, Pro revenues. forma primarily million million revenues we're to higher which up of million, and X% first mid-single group. On to $XXX media This political Bowl versus million political $X quarter last be due digit aired approximately and year. than assumes retrans mid-single are of the versus percent to digits first quarter advertising quarter same revenues political to is basis, $X expecting be in first NBC to pro on QX last higher $XXX both forma smallest

advertisers In the growth knowing core to pause as watching that to expect addition, quarter. primetime typical not spend the is second positive Olympics their stations, non-NBC networks we see audience and the other the during in much for it's schedules, original Olympics on in that

quarter acquisitions approximately of quarter forecasting $XXX the the $XXX initiatives. in coming majority retrans On reverse first in increase revenue-generating are from to expenses with million side, the and we the the expense XXXX versus million media be of first

approximately in first first be versus million transaction of for higher of XXXX large expense, XX% a commissions $XXX end to the forecasted $XXX EBITDA costs quarter incremental million, of $XXX increase. adjusted on that billion, pro million on versus of in and as-reported year, XXXX, due higher sales number versus to $X quarter is expected million XXXX quarter revenue at agreements higher one-time to For to increase expenses $XX in adjusted expected forma other are $X.XXX generating political cash first Free primarily network transactions $X.XXX EBITDA ad compensation the million. of first approximately XXXX billion retrans The and expenses media flow million is million. reverse to the the EBITDA for $X.XXX be to the $XXX renewed to forma initiatives, revenue. a is costs $XX quarter be billion pro media and

to billion. As to $X estimated Lucy our stated, with forma pro that, combined cash free would questions. XXXX-XXXX flow is at it up billion like And to I open $X.XXX

Operator

Thank you.

Our first is Bank. Watts proceed. Aaron question from Deutsche Please with

Aaron L. Watts

Thanks like be quarter Olympics? Not everyone. it you be ask a quarter? looks How noisy in might that the it to first but Try to How in all with second little get it detail. the even a for auto. mentioned to in looked about wanted all predictable, factors and a recognizing little down. maybe quarter, Hi, fourth question

Steven M. Marks

It's that. into question, get to good want I Yes, Aaron.

quarter, quarter performance lack we quarter, First which positive believe – for in and flat, fourth I NBC XX% realize should In good XXXX. our of everybody the exposure in were first of only all affiliates we is in what year of affiliates represent revenues. thereof our a were NBC is or fourth

Olympics, is the and So we're only had on the FOX affiliates the but exposure enormous. up not Bowl FOX our last Super against year

aggressive were list. is a With already as be we up in will on so our money for speak said, there that knew in positive that pace first automotive an we quite auto quarter we quarter first far booked station second the with but into bit going category So against quarter, today the it. down,

see this was good a fourth tunnel, in primarily in on light XXXX. of flat exposure the lack the our and at and quarter we we of back, affiliates. we So quarter, second had bounces end believe We were very to NBC negative

Aaron L. Watts

something broadcast. And helpful. early. of little exposure the reverse Super year That's picture sort Cup of think Bowl? new FOX some the can your coming it's Is effect Okay. a this this actually on something But having not that the into recognize is I that from World I given

Steven M. Marks

not think ratings than event whenever the cash that, participating make we have that belief. going unfortunately the normal. to like that hurt be ring should able little a my my to is understanding you be But in special and bit the register, I in is will U.S. Well, a more

Aaron L. Watts

then last and enough one just Fair Okay. for one me.

with can renewal? I say call think you affiliations affiliation say of you. progress Tribune's the that whether FOX with on in I heard and conjunction at with Anything beginning terms your the you you're those of FOX. could Thank come making your agreements in

Christopher S. Ripley

around to is but an the you not Aaron, on comment policy that table. so active – we everything's assume specifics on active our an negotiation, can it negotiation,

Aaron L. Watts

Okay, great. Thanks, guys.

Operator

question proceed. John Janedis is next with from Our Jefferies. Please

John Janedis

well. got I've Thanks. as couple Hi. a

First the weeks. just networks, concern as the about deals look, about think the and affiliates the know, ABC you couple talk and you terms virtual to in few retrans over are subs, in there NBC that's over change relationship Can be lingering success with between noting? have around the a seems any or with past MVPDs, the of net years the I you so next of seeing the worth your and visibility confidence of trend you

Christopher S. Ripley

affiliates a pushed several did with out months question, deals that over they in up ABC our last and up were the of years those at We year, that the significant but out area the renewed affiliates amount of NBC John. that Great noted, you amount several end were significant dealt a really with also subs. coming and this work of coming

our we're are XX% agreement XXXX. about of at sitting think, in I pack currently subs

long-term than more we relationships, about they've are and ever our good really visibility feel network been. now which So, our

as terms we over MVPD year how affiliations many year And of many deals bit is are And you're – bit here have. network into we future. quarter a a terms visibility the versus but through than so, of of think for how this I in ever we've tougher a us have in first flow undoubtedly, in of seeing had timing, more the rolling that now

John Janedis

Okay. Thanks.

There hoping I'd local for a somewhat the potential speak rights, And with headlines I could in separately. was threat sports what something guess around soccer national be given City. what an Lake to be deal sports. to seem to rights call, unique the maybe initially was, last a So, digital how for I tier month audience? And team you Is rights either trends? given I'd a opportunity for call, that monetized a local view limited maybe viewing would buy what or those Salt that would you rights second as

Steven M. Marks

good question. for franchises, We you we high a us. of That's been as school lucrative programming in have a also many years. soccer. event doing do sports for many, mentioned very it's have And And terms

local So, when very, and secondary and high And we already make great more been I been we're would run school believe to sports. with these I nice events, building sports, speaks event events, XX future many tier to years want for terms high quite business content a on if primetime, local contents of. times doing as going already the primetime. on and meaning four of local about major And time soccer, networks these well some technology is lot than have been also We platform school basketball a it. for school doing football. and you and is we've that of you great in performance beat that it a MyNets, for doing the well it very events research both pertains talk for the we've high the MyNet terms very would going in it's to which almost literally programming concern local air on we in forward, forward school when programming I mention, our sports we high in sports, in focus this of our ratings the we've second

John Janedis

you. Thank right. All

Operator

is Company. proceed. question next Our with Kurnos Benchmark from Please Dan

Daniel Kurnos

Thanks.

talked for expense and for reverse. you the about on and you've focused of everybody QX Just, sort really both guide, the yeoman's full-year obviously, is I think work the and really Chris done on

stuff of on of the looks chunk even weighted. equation some think also probably a big revenue that's QX maybe producing you Steve were of but front-end about the the talking it is initiatives, the initiatives, I some like

of too by. an conjunction us in that, launching a commercialization you what of allure give dynamics over with throughout in with back of the partner of SFN see far the year, longer-term capabilities? there. in Samsung exploring We understand ATSC just developing hope dumping if breakout. over into kind just part the how initiatives also making a of on a assume political test, developing the in that's So you and and in if investing as bunch sense, QX X.X, sort X.X, you're go you balance about investment you play in with the year facility they're is this a stuff we the or an the that's commercialization just margin of could just investment how and you to Thanks. to of And half. know year Dallas. about going expenses sense much talked that of the then probably interested you're the ATSC those us Can I are if there's the if of reverse thinking contributing in initiatives higher from order versus glean give But those of Samsung to outside not into pace

Lucy A. Rutishauser

is than up you're some year. higher at was through seeing There related flow last had expenses that addressed of of So, a the see the the majority that R&D you're of uplift the for side, Chris the it line you'll the initiatives whole correct on is to Dan, for from is for so XX% this the which year. side, reverse, end came instance, with the expense coming our of are on we (XX:XX) year subscribers already XXXX they the that expense network and really,

and we Now start approved could move to have that we forward. X.X ATSC

which these was low-single So, – when of down our growing reverse digits outside normal very in is you or look really the OpEx just the XXXX initiative

Christopher S. Ripley

business is aspects coming really different element it's heavy Dallas and test the of terms transition of a a the by business done it of multiple way side, a in test very in ATSC with the is of That's very, And getting Phoenix focused broadcasters. this much on agreement getting X.X, on side also multiple the of of business also quite which the the metro the technical entire most complicated frankly it whole but probably network Dallas include give the frequency coverage, not side, added And a is Dallas just with fully single transition. to the done, coverage then for high-quality on side, additional transition builds will three towers the to part functioning population.

be perspective. ATSC a in from the all technical will end-to-end. pipe is it'll we've total more that And innately of also about course, So, IP test talking features that channels and having the And terms advertising, that include channels it targeted go been through mobility. X.X subscription-based around programs of

to be later, going in high-quality developers many lot There and for to it being one desire a opportunities is testing incredible viewing. was there which a in sandbox that subscription of rather be about be, Dallas is product of factor. of large a that, a core around bundles benefits those mobile were offerings. connected just for ads really would from all and video addressable based those are our cars, reasons, offerings skinny of we Dallas was so they tested more there done. being TV is different and and than are can But have sky the excited – to easy-to-get terms Dallas. including to. perspective the terms a sandbox think around start So, picked X.X. Samsung limit beyond sooner metro, of And products Samsung can to is what ATSC the in different what the We very

will some sandbox or for beginning just but out. great Dallas the proved to playground a those of unpacking that be we're at of So, opportunities, be

Lucy A. Rutishauser

to as Dan also the on first that three for numbers the year. the Bonten, And this want which the well, are expense – as-reported on I not as-reported Yeah. just we in back in really of there'll come have our XXXX in did quarters be side

Daniel Kurnos

guys. Thanks it. the color Got for

Operator

from Quadrani proceed. is next question Our from JPMorgan. Please Alexia

Alexia S. Quadrani

Thank you.

on move color night Just and two how more But stations And football gave night about adding FOX thank CW don't first questions, is, the that mid-term then on you are all you just color cycle your of and another question political much a could sort was primetime may. political, And I what the political impact last you the and last may if the think bit on first maybe outlook. you you impacting mid-term mind, if the for spend thinking remind the second was of incremental? to look? the is, election, with and you how the how us about that

Lucy A. Rutishauser

the political so Yes, Alexia I'll do piece.

Bonten for was forma pro So political in XXXX, $XXX million.

Steve as not Now will return mentioned governor's that race that and we Arkansas big year. had this

age far our out, when is old you for the and incremental, that So really all-in is seasons many because as the have as And again incremental XXXX up growth you paces and over to to adjusting define in in back what and that guidance you months the be so over political give low single-digit rate truly political. nobody's we and all-out. that's why broadcast able been question, ever just different on

Steven M. Marks

about football that'll especially on question up that, On FOX. FOX, thrilled we're with wind the

because FOX given all, that FOX First again of our and has been is struggling putting particular FOX most for of scripted of in on affiliates in network, the be exposure in fact plus primetime Sinclair the a for football huge shows, and should CW programming CW, our that day. lot and thrilled program, the their exposure expanding on they're outstanding about we're we're likewise to CWs, that more. of we're to with we and another excited they're the expanding And have lot a Network is a have

Christopher S. Ripley

us, an side, to from CBS to payments night. it from and And not only NBC getting on exposure the I'll made away reduces add a that just that we of one is it those also positive related networks that, but football to perspective also Thursday for

take very of FOX in terms I'm Disney time post and you scheduled going So it's then programming FOX with we extra at of bill night that night. that when terms excited general the in aggressiveness on is Sunday And low. from in a to deal. what look the it's about a network I'm pretty seeing is for really perspective our what win-win period, at doing in what be of CW And their

pretty it's it'll where do, the depend it's with upside. will schedule. nothing how additional the it's content of in so, their And rest any hard does not that shows see going provide scenario line but much but be upside, original to But to

Robert D. Weisbord

sellers would night the we've already Thursday aggressively add Sunday on football sold out several I football. packages, including the the night that marketing Thursday already our are sponsorship And and street and on

Alexia S. Quadrani

Thank you very much.

Operator

Riley Our next question B. with Please proceed. is Crockett FBR. from Barton

Barton Crockett

for to taking the commentary. probe bit on I a questions. the great. little Okay, retrans Thanks wanted net more

think call, guys earnings retrans digits you you talking and your be still or were XXXX that on the has I about changed? that in up Having would single outlook do net the done believe an expectation XXXX. I teens up So think renewals, November in

Lucy A. Rutishauser

Yeah.

we to percent. the low-teen in XXXX retrans guide now right So up that be and up net confident feel be to low-single-digits for in XXXX is

So still that within we've now that gotten gave. through those the we guidance

Barton Crockett

you FOX? FOX that there think you – that. is you're Okay. the for And have we'll some you're Does encompass commentary so know close have an what on much announcement must I to deal, into come from believing that is scope likely soon visibility

Christopher S. Ripley

Absolutely.

Barton Crockett

Okay. All right.

huge guys retained your had Now initiated tax you flow came you the have cash other But free a had that guidance. we've outlook. just thing cut is, this after

get we the guide? but takes tax just on really you if explain bump don't So, wondering could the we big how a a flow puts free I get was cash cut and to

Lucy A. Rutishauser

Yeah.

the focus on is thing Barton that fact low-end important on the of to really that the the guidance. we raised So

better. two So, to billion. we the that $X from million midpoint guidances slightly The took $XXX is between

last we were finalized December. out Now year as our budgets the that's of our we since we had thing guidance one in happened all –

we into a So tighten we have better visibility range were visibility why which lot is to XXXX, for you. now, that able

where We previously guidance forever cash new is also we back both be at really to there would of the I first indicated would in quarter things that low than million same had more talked Super the a phenomenon. has CapEx Olympics having higher of Steve prior just NBC $XX from It the other Bowl is about guidance. the note softer never quarter. call, We reflects we end went flow that the Couple anticipated. a It the in it's, of and reflects that probably also free happened. the and more not what

well rest view we that so, the for reflects of a guidance as the year. our conservative And as have

Barton Crockett

That's right. Thank helpful. All Okay. you. very

Operator

next is RBC question from proceed. with Leo Please Kulp Our Capital Markets.

Leo Kulp

morning. good have quick Hi, I just ones. two

retrans for then First is ratio And your in under future? the second... past that Is payout the the that said still case foreseeable XX%. you've

Christopher S. Ripley

foreseeable future. in case the – and your terms for that you're the is question still will the so of be case first

Leo Kulp

required second Great, through is then steps remaining can that the thanks close? And deal and you their for run Chris. timing to the question Tribune

Christopher S. Ripley

its really to get has And concluded have So, feel will as announced not figure DOJ not trust last that stations. week process, this a various clock move close the we as to the ticking to as where we divestiture the be where out saw, plan. our divesture wait situation and buyers is forward trust divesture is can that the approved you trust probably for with the close, in close we enough at but FCC, we it's could soon

still but we we're technical the have getting don't approval feel from FCC, So close. or DOJ the either we

Leo Kulp

waiting have that And period, approval? it. the you'll is then XX-day FCC correct a Got for

Christopher S. Ripley

Yes, that. XX for clock days trust and when so going got be it will minimum commenting. submitted the we FCC And has timeline that on for divestiture the started the

Leo Kulp

Got it. Thank you.

Operator

next is Fargo. Marci Wells Our question Ryvicker with Please from proceed.

Marci L. Ryvicker

in conversations stick to that the There's with the clarify I been topic on difficult noise tone in regards you Can for Thanks. have you. conversations been agencies? the of for a of the just to wanted the regulatory second. lot that press a D.C.

Christopher S. Ripley

usual. Listen, favorites awaiting in the answer They've that view would we've diligent, done as transaction unequivocally final – DOJ is anything can the I their history. more very transaction terms with in anyone that business more if tell you than just markets. thought not very they've play they would Certainly, of been process. closely, any not and their And Sinclair, of but scrutinized are normal, anything they how I than we're done our They say true. this normal, the work,

Marci L. Ryvicker

And first the I numbers those the down gave the quarter. clarify know the it. for don't for Got Bowl does if exclude to that Olympics? Super and or you include then QX And mid-singles,

Lucy A. Rutishauser

Bowl was So those includes, million. million as-recorded. – that's the incremental about Super was in the about that $X.X and And all $X.X Olympics

Marci L. Ryvicker

Tennis trending haven't number bit? an while. is Can a EBITDA you that how that question about some can Thanks. the Okay. a talk got think which out at we Channel, little point, on for about is And put the update talk $XX then last you really on you and million I just a

Christopher S. Ripley

bought It well plan, targets our bit the a has according revenue of is especially a original plan they're ad Channel Tennis was distribution, doing to events problem underperformed now it So the that when audience size in underscoring we We around terms by when it. and has encountered so small on when ratings to old two-year which ComScore. multiples, NTI went side. special compare Nielsen you with the sample to been the we

that month, last think launched through on moving a Tennis.com the over effect Tennis great. the just And international app time, of works. we're working great well will rest is strategy So with and The things very of has the We new more OTT in with also strategy received. magazine are forward that's a that, is multi-platform and timing we improve expansion going prongs, been the thing. strategy

the very $XX an we're It terms that of multiple bullish year million So, after next in be hitting Tennis. rate about of wanted hit then that. was run exceeded it exactly to And we for driver year and which will business. core be, the growth was years to that growth what additional

Marci L. Ryvicker

kind looking to that reading let Olympics be And there Olympics? anything that you with me we can point and the highlights or for post and ATSC about X.X at the should benefits is David, Right. the allow more of David. anything one

Christopher S. Ripley

Yeah.

do answer They the signal. and me of technology reality. very feature of highlighted focus Korea The a is this Koreans X.X, Let that operators success. high-quality a have a XK core HDR, – The but a not in that was to be great Marci. mobile, not, was understand permission over-the-air were ATSC the which they do there the that Olympics part have of are pushing be have features to of which one

was mobility it in small do successfully to was In Korea tested big in Olympics, mobility during app I tested ATSC broadcasters X.X and area, fact, for a for push future. that the in anticipate be to the allowed the the even a

it iteration that resolution, is Korea use ultimate from don't I pictures, side And was which first So think technical great on knowledge. a the a them success, perspective, on for of for really best better the has and focused we just think agree. but better still business been early days the they'll

Marci L. Ryvicker

you. Thank Great.

Operator

last Our with proceed. Kyle Evans be question will from Stephens. Please

Kyle Evans

going and the thanks. of year. for Steve the we and growth look detailed XX% how should that and quarter growth you XXXX What that Hi, drivers digital XX% were of into in the beyond? at

Robert D. Weisbord

ringing. I'll This selling approach will a of to stimulus portfolio the culmination diversified is and existing cycle integrated the across platform. register clients the due to and results of trading It's XXX several that it. offer years Rob. assets And handle on intensive from new cash of we are complete the that

Kyle Evans

starting side like did to double collect my period put model. count hard Maybe on revenue later. will can MVPD migration I back to the the Those the you to of OTT MVPD? other look and in the are sub and in that be virtual What on

Christopher S. Ripley

slight start some impact fall. the declines. from counting done deals not paying. stable, of We yet were we don't subs the start counts until MVPDs. were And our the seen Most So, they virtual really the have in

there of showing our in accounts. up And in so, there's definitely terms those a lag

XXXX, see they So, in yet. with a We of not, for through had have that material we've the virtual any MVPDs. year. we're this done to more XXXX, going significant start do even benefit amount really here deals But expect as impact to

Kyle Evans

dealership six XXXX, for auto Arkansas, Thanks. out. crowd Great. just in about to from And report we weeks massive want lastly, so I didn't ad see an

Christopher S. Ripley

you. Thank

Steven M. Marks

you. Thank

Operator

gentlemen, we reached our like of call back question-and-answer have end session. closing the to over I remarks. to for would Ladies Lucy the turn and

Lucy A. Rutishauser

Thank you, operator.

ATSC me we deployment and reform, feel a with of XXXX disconnect, view us of a for strong pivotal free additional as you Thank us. deregulation, questions, please year, expect let local earnings Before drive call year morning. acquisition just of to the ownership say upcoming political on to And participating tax and our Tribune, that value. contact has you we if for X.X, anyone competitiveness all which long-term this our

Operator

Thank you. This conference. concludes today's

this You may lines your disconnect at time thank for you and participation. your

Sinclair Broadcast (SBGI) 28 Feb 182017 Q4 Earnings call transcript