Sinclair Broadcast Group (SBGI) Q3 Revenue Tops Views

Sinclair Broadcast Group (NASDAQ: SBGI) reported Q3 EPS of $0.62, $0.62 better than the analyst estimate of $0.00. Revenue for the quarter came in at $766.3 million versus the consensus estimate of $752.2 million.

Fourth Quarter 2018

• Media revenues are expected to be approximately $835 million to $847 million, up 20.5% to 22.2% year-over-year. Embedded in the anticipated 2018 results are:
• Approximately $145 million to $148 million in political revenues as compared to $16 million in the fourth quarter of 2017.
• $339 million of distribution revenues as compared to $300 million in the fourth quarter of 2017.
• Non-media revenues are expected to be approximately $35 million, compared to $19 million in the fourth quarter of 2017.
• Media production expenses and media selling, general and administrative expenses (together, "media expenses") are expected to be approximately $464 million to $466 million, including $4 million in stock-based compensation expense.
• Program contract amortization expenses are expected to be approximately $25 million.
• Program contract payments are expected to be approximately $25 million.
• Corporate overhead is expected to be approximately $20 million, including $1 million of stock-based compensation expense and $1 million of Tribune-related costs.
• Non-media expenses, including ONE Media and research and development costs, are expected to be $41 million, assuming current equity interests.
• Depreciation on property and equipment is expected to be approximately $24 million, assuming the capital expenditure assumption below.
• Amortization of acquired intangibles is expected to be approximately $44 million.
• A gain of approximately $14 million is expected to be recognized related to the reimbursement for spectrum repack.
• Net interest expense is expected to be approximately $49 million ($47 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.
• Loss from equity method investments is expected to be approximately $14 million.
• Net cash taxes paid are expected to be approximately $15 million, based on the assumptions discussed in this "Outlook" section.
• Total capital expenditures are expected to be approximately $40 million, of which $15 million relates to the spectrum repack and is expected to be reimbursed by the U.S. government.

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

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