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    David Hamburger • Morgan Stanley

    David Hamburger's questions to Sinclair Inc (SBGI) leadership

    David Hamburger's questions to Sinclair Inc (SBGI) leadership • Q1 2025

    Question

    David Hamburger of Morgan Stanley sought confirmation on the renewal of a key retransmission agreement and its impact on Q1 results, and also asked for an update on subscriber churn expectations.

    Answer

    President and CEO Chris Ripley confirmed an agreement in principle was reached with the MVPD, which did not materially impact Q1 results as the final terms aligned with their accruals. EVP and CFO Lucy Rutishauser stated that the forecast continues to assume mid-single-digit subscriber churn. Ripley reiterated the company's two-year net retransmission CAGR guidance of mid-single digits through 2025.

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    David Hamburger's questions to Sinclair Inc (SBGI) leadership • Q4 2024

    Question

    David Hamburger from Morgan Stanley requested more detail on the mid-single-digit net retransmission CAGR guidance through 2025, the status of the remaining 20% of MVPD renewals, and an update on the company's leverage targets post-refinancing.

    Answer

    CEO Christopher Ripley confirmed that Q4 results and Q1 guidance include accruals based on active negotiations with the remaining MVPD, with a resolution expected soon. CFO Lucy Rutishauser added that net retrans is expected to grow in 2025, benefiting from the full-year impact of 2024 renewals and annual escalators. Rutishauser also reiterated the total net leverage target of high-3x to low-4x, noting that while it won't be reached in 2025, natural deleveraging will occur from the 2026 election cycle and potential M&A synergies.

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    David Hamburger's questions to Sinclair Inc (SBGI) leadership • Q3 2024

    Question

    David Hamburger of Morgan Stanley inquired about Sinclair's capital allocation strategy, focusing on how the company plans to address its 2026 debt maturities, manage its balance sheet and leverage targets, and whether debt buybacks are a key part of its deleveraging plan, all in the context of potential M&A.

    Answer

    President and CEO Christopher Ripley stated that Sinclair has several options to address upcoming maturities and is focused on the lowest cost of capital and maximum M&A flexibility. He emphasized a focus on lowering overall leverage back to its target range, driven by organic growth initiatives and potential synergies from strategic transactions. He confirmed that the company has been opportunistic with debt buybacks, having repurchased $74 million of debt since early 2023, and will continue to look for opportunities, but a more comprehensive refinancing solution is the current focus.

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    David Hamburger's questions to iHeartMedia Inc (IHRT) leadership

    David Hamburger's questions to iHeartMedia Inc (IHRT) leadership • Q3 2024

    Question

    David Hamburger asked about the Transaction Support Agreement, specifically seeking details on the amount of cash allocated to debt reduction and the company's plans for utilizing excess cash on the balance sheet as it pursues its deleveraging targets.

    Answer

    President, COO & CFO Rich Bressler highlighted the key outcomes of the agreement: extending debt maturities to 2029-2030, keeping annual cash interest expense essentially flat, and achieving some debt reduction. While not specifying the exact cash amount for debt paydown, he outlined the company's deleveraging path, projecting the net debt-to-adjusted EBITDA ratio to fall from ~7.2x currently to ~6.0x by year-end 2024, ~5.5x by year-end 2025, and ~3.2x by year-end 2028.

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