Sinclair Reports 33% Increase In Diluted Earnings Per Share In Third Quarter 2012; Declares $1.00 Special Dividend And $0.15

 Sinclair Reports 33% Increase In Diluted Earnings Per Share In Third Quarter
 2012; Declares $1.00 Special Dividend And $0.15 Quarterly Dividend Per Share

PR Newswire

BALTIMORE, Nov. 1, 2012

BALTIMORE, Nov. 1, 2012 /PRNewswire/ --Sinclair Broadcast Group, Inc.
(Nasdaq: SBGI), the "Company" or "Sinclair," today reported financial results
for the three months and nine months ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20100119/PH39783LOGO )

"We are very pleased with our results for the third quarter, which were driven
by increased advertising spending by the political and automotive categories,
as well as higher retransmission revenues," commented David Smith, President
and CEO of Sinclair. "Despite increased demand for air-time by politicians
and political action groups, the core business showed solid growth. On a same
station basis, excluding political, net broadcast revenues grew 6.9% in the
third quarter."

"We continue to reinvest in the Company's long term growth, having recently
entered into an agreement to buy the non-license assets of KBTV, the FOX
affiliate in the Beaumont/Port Arthur, Texas market, where we also own the CBS
station. We also entered into an agreement to sell our ABC station, WLAJ, in
Lansing, Michigan as part of our on-going portfolio evaluation in which we
identify pockets of opportunity as well as non-strategic markets."

Mr. Smith continued, "In an extraordinary, value-creation action and in
anticipation of a potential increase in dividend tax rates in 2013, the Board
of Directors decided to return approximately $81.2 million of value to our
shareholders in the form of a $1.00 per share special cash dividend, in
addition to our regular $0.15 per share quarterly dividend."

Financial Results:

"Discontinued Operations" accounting has been adopted in the financial
statements for all periods presented in this press release for the sale of
WLAJ-TV, our ABC affiliate in Lansing, Michigan, which is expected to be sold
in the fourth quarter 2012/first quarter 2013. As such, the results from
operations, net of related income taxes, have been reclassified from income
from continuing operations and reflected as net income from discontinued
operations. Prior current year amounts have been reclassified to conform to
current year GAAP presentation.

Net broadcast revenues from continuing operations were $226.4 million for the
three months ended September 30, 2012, an increase of 49.0% versus the prior
year period result of $151.9 million. The Company had operating income of
$78.6 million in the three-month period, as compared to operating income of
$52.4 million in the prior year period. Net income attributable to the
Company was $26.2 million in the three-month period, versus net income of
$19.2 million in the prior year period.

The Company reported diluted earnings per common share of $0.32 for the
three-month period ended September 30, 2012 versus diluted earnings per common
share of $0.24 in the prior year period. Excluding $3.4 million in one-time
expenses related to the Company's amendment of its bank credit facility, net
of taxes, diluted earnings per share would have been $0.36 in the third
quarter 2012.

Net broadcast revenues from continuing operations were $637.6 million for the
nine months ended September 30, 2012, an increase of 36.5% versus the prior
year period result of $467.2 million. The Company had operating income of
$210.2 million in the nine-month period, as compared to operating income of
$162.1 million in the prior year period. Net income attributable to the
Company was $85.7 million in the nine-month period, versus net income of $53.1
million in the prior year period.

The Company reported diluted earnings per common share of $1.05 in the
nine-month period ended September 30, 2012 versus diluted earnings per common
share of $0.66 in the prior year period.

Operating Statistics and Income Statement Highlights:

- Political revenues were $27.8 million in the third quarter 2012,
versus $2.4 million in third quarter 2011.

- Local net broadcast revenues, which include local time sales,
retransmission revenues, and other broadcast revenues, were up 34.5% in the
third quarter 2012, while national net broadcast revenues, which include
national time sales and other national broadcast revenues, were up 96.8%
versus the third quarter 2011. Excluding political revenues, local net
broadcast revenues were up 33.0% and national net broadcast revenues were up
32.2% in the third quarter 2012. On a same station basis, excluding political
revenues, local net broadcast revenues were up 7.3% and national net broadcast
revenues were up 2.4%.

- Advertising categories, on a same station basis, that reported the
largest spending increases in the third quarter 2012, as compared to the same
period last year, were automotive, which was up 12.2%, direct response, and
telecommunications. The increased demand for commercial air time by political
candidates, political action committees and issue-related organizations
resulted in spending decreases in many of the Company's regular advertising
categories. Among these were services, schools, fast food, media, and
restaurants. We expect this trend to continue through the November 6, 2012
election day as political advertising reaches historic levels.

- In August, the Company entered into an agreement to purchase the
non-license assets of KBTV-TV (FOX) in the Beaumont/Port Arthur, TX market for
$12.5 million from Nexstar Broadcasting Group, Inc. The transaction is
expected to close in the fourth quarter 2012, subject to FCC approval and
closing conditions.

- In October, the Company entered into an agreement to sell the assets
of WLAJ-TV (ABC) in Lansing, Michigan to Shield Media for $14.4 million. The
transaction is expected to close in the fourth quarter 2012 or first quarter
2013, subject to FCC approval and closing conditions.

- In August, the Company entered into a multi-year retransmission
consent agreement with DISH Network.

Balance Sheet and Cash Flow Highlights:

- Debt on the balance sheet, net of $44.6 million in cash and cash
equivalents, was $1,682.2 million at September 30, 2012 versus net debt of
$1,697.3 million at June 30, 2012.

- In October, the Company closed on the issuance of $500.0 million in
6.125% Senior Notes due 2022, the proceeds of which are intended to be used
primarily to fund pending acquisitions expected to close in December 2012.

- As of September 30, 2012, 52.3 million Class A common shares and 28.9
million Class B common shares were outstanding, for a total of 81.2 million
common shares outstanding.

- On September 14, 2012, the Company paid a $0.15 per share quarterly
cash dividend to its shareholders.

- In the third quarter, the Company made a $41.3 million cash escrow
deposit related to the previously announced agreement to purchase six of the
Newport television stations, and a $1.4 million cash escrow deposit related to
the purchase of KBTV.

- Capital expenditures in the third quarter 2012 were $11.7 million.

- Program contract payments for continuing operations were $17.2
million in the third quarter 2012.

Notes:

Presentation of financial information for the prior year has been reclassified
to conform to the presentation of generally accepted accounting principles for
the current year.

The management fees associated with the Freedom Communications ("Freedom")
local marketing agreement, which was terminated April 1, 2012 upon
acquisition, are reflected in other net broadcast revenues.

Forward-Looking Statements:

The matters discussed in this news release, particularly those in the section
labeled "Outlook," include forward-looking statements regarding, among other
things, future operating results. When used in this news release, the words
"outlook," "intends to," "believes," "anticipates," "expects," "achieves," and
similar expressions are intended to identify forward-looking statements. Such
statements are subject to a number of risks and uncertainties. Actual results
in the future could differ materially and adversely from those described in
the forward-looking statements as a result of various important factors,
including and in addition to the assumptions identified in this release, but
not limited to, the impact of changes in national and regional economies, the
volatility in the U.S. and global economies and financial credit markets which
impact our ability to forecast, our ability to integrate acquired businesses
and maximize operating synergies, our ability to obtain necessary governmental
approvals for announced acquisitions, successful execution of outsourcing
agreements, pricing and demand fluctuations in local and national advertising,
volatility in programming costs, the market's acceptance of new programming
and performance of, the CW Television Network and MyNetworkTV programming, our
news share strategy, our local sales initiatives, the execution of
retransmission consent agreements, our ability to identify and consummate
investments in attractive non-television assets and to achieve anticipated
returns on those investments once consummated, and any other risk factors set
forth in the Company's most recent reports on Form 10-Q, Form 10-K and Form
8-K, as filed with the Securities and Exchange Commission. There can be no
assurances that the assumptions and other factors referred to in this release
will occur. The Company undertakes no obligation to publicly release the
result of any revisions to these forward-looking statements except as required
by law.

Outlook:

In accordance with Regulation FD, Sinclair is providing public dissemination
through this news release of its expectations for certain components of its
fourth quarter 2012 and full year 2012 financial performance. The Company
assumes no obligation to update its expectations. All matters discussed in
this "Outlook" section are forward-looking and, as such, readers should not
place any undue reliance on this information and should refer to the
"Forward-Looking Statements" section above.

All line items in this "Outlook" section include full-year expectations for
the stations acquired from Four Points Media, nine-month expectations for the
stations acquired from Freedom, and a December 1, 2012 closing on WTTA. The
outlook for the results of operation of WLAJ in Lansing is excluded from the
individual outlook line items below. The outlook does not include results for
the Newport or KBTV acquisitions.

"We have many reasons to be very excited about the state of our Company,"
commented David Amy, EVP and CFO. "Among them, political ad spending on our
stations for this year is expected to reach a historic $98.2 million. On a
pro forma basis, compared to 2008, that would represent an 82% increase. In
addition, sales of new autos in the U.S. continue to increase, which is
leading to higher advertising revenues in this, our largest category. For the
fall season, our solid syndicated programs such as 'Family Feud' and 'Big Bang
Theory,' as wells as newly added shows such as 'Wheel of Fortune' and
'Jeopardy' are expected to help drive key dayparts in the back half of 2012
and for 2013. We believe the strength of our fundamentals and the
contributions from our acquisitions will add to our strong competitive
position as we enter next year."

- The Company expects fourth quarter 2012 station net broadcast
revenues from continuing operations, before barter, to be approximately $268.1
million to $270.1 million, up 48.3% to 49.4% as compared to fourth quarter
2011 net broadcast revenues of $180.8 million. This assumes approximately
$54.0 million to $56.0 million in political revenues in the fourth quarter
2012 as compared to $4.1 million in fourth quarter 2011. The 2012 fourth
quarter net broadcast revenue estimates assume $59.8 million related to the
acquisitions. Excluding the acquisitions, same station net broadcast revenues
are estimated to be up 20.4% to 21.5%, and flat excluding political.

- The Company expects barter revenue to be approximately $22.5 million
in the fourth quarter 2012.

- The Company expects barter expense to be approximately $22.5 million
in the fourth quarter 2012.

- The Company expects continuing operations station production expenses
and station selling, general and administrative expenses (together,
"television expenses"), before barter expense, to be approximately $112.7
million in the fourth quarter and $419.7 million for 2012, as compared to the
2011 actuals of $83.7 million and $302.6 million for the fourth quarter and
year, respectively. The 2012 estimates assume $26.3 million and $91.2 million
related to the acquisitions for the quarter and year, respectively. As
previously disclosed, also included in the 2012 full year estimate is $5.2
million of corporate expense allocated to all of our television stations. The
2012 expense forecast includes $1.6 million of stock-based compensation
expense for the year, as compared to $1.3 million for 2011. Excluding the
acquisitions, corporate expense allocation and stock-based compensation, same
station TV operating expenses are expected to be up 11.8% and 9.6% in the
fourth quarter and full year 2012, respectively.

- The Company expects program contract amortization expense to be
approximately $18.1 million in the fourth quarter and $62.3 million for 2012,
as compared to the 2011 actuals of $14.0 million and $52.1 million for the
quarter and year, respectively. The 2012 estimates assume $2.1 million and
$7.1 million for the quarter and year respectively, related to the
acquisitions.

- The Company expects program contract payments to be approximately
$17.9 million in the fourth quarter and $70.2 million for 2012, as compared to
the 2011 actuals of $14.6 million and $67.3 million for the quarter and year,
respectively. The 2012 estimates assume $2.6 million and $8.4 million for the
quarter and year respectively, related to the acquisitions.

- The Company expects corporate overhead to be approximately $8.4
million in the fourth quarter and $33.6 million for 2012, as compared to the
2011 actuals of $6.8 million and $28.3 million for the quarter and year,
respectively. This assumes $5.2 million of corporate overhead being allocated
to television station expenses for full year 2012, and includes $3.6 million
of stock-based compensation expense for 2012 as compared to $3.5 million for
2011.

- The Company expects other operating division revenues less other
operating division expenses to be $2.1 million of income in the fourth quarter
and $7.6 million of income for 2012 (assuming current equity interests), as
compared to the 2011 actuals of a $0.9 million loss in the quarter and $5.0
million of income for the year.

- The Company expects depreciation on property and equipment to be
approximately $12.7 million in the fourth quarter and $47.4 million for 2012
(assuming the capital expenditure assumptions below), as compared to the 2011
actuals of $9.4 million and $32.9 million for the quarter and year,
respectively. The 2012 estimates assume $5.0 million and $17.3 million for
the quarter and year respectively, related to the acquisitions.

- The Company expects amortization of acquired intangibles to be
approximately $10.7 million in the fourth quarter and $37.4 million for 2012,
as compared to the 2011 actuals of $4.4 million and $18.2 million for the
quarter and year, respectively. The 2012 estimates assume $4.0 million and
$13.5 million for the quarter and year respectively, related to the
acquisitions.

- The Company expects net interest expense to be approximately $36.8
million in the fourth quarter and $128.7 million for 2012 (approximately
$117.8 million on a cash basis), assuming no changes in the current interest
rate yield curve or changes in debt levels based on the assumptions discussed
in this "Outlook" section, and the issuance of the $500 million 6.125% Senior
Notes on October 12, 2012. This compares to the 2011 actuals of $27.5 million
and $106.0 million ($96.9 million on a cash basis) for the fourth quarter and
year, respectively.

- The Company expects a current tax provision from continuing
operations of approximately $16.7 million and $59.4 million in the fourth
quarter and for the full year 2012, respectively, based on the assumptions
discussed in this "Outlook" section. The Company expects the effective tax
rate to be approximately 36.3% and 34.1% for the fourth quarter and 2012,
respectively.

- The Company expects to spend approximately $14.8 million in capital
expenditures in the fourth quarter and approximately $45.0 million for 2012. 

Sinclair Conference Call:

The senior management of Sinclair will hold a conference call to discuss its
third quarter 2012 results on Thursday, November 1, 2012, at 8:30 a.m. ET.
After the call, an audio replay will be available at www.sbgi.net under
"Investor Information/Earnings Webcast." The press and the public will be
welcome on the call in a listen-only mode. The dial-in number is (877)
407-9205.

About Sinclair:

Sinclair Broadcast Group, Inc., the largest and one of the most diversified
television broadcasting companies, owns and operates, programs or provides
sales services to 74 television stations in 45 markets. Sinclair's television
portfolio consists of 20 FOX, 18 MNT, 14 CW, 11 ABC, 9 CBS, 1 NBC, and 1
Azteca station. Sinclair's television group reaches approximately 26.3% of
U.S. television households and is affiliated with all major networks. Pro
forma for the announced transactions, Sinclair will own 83 television stations
in 46 markets, reaching 27.1% of the U.S. households. Sinclair owns equity
interests in various non-broadcast related companies. The Company regularly
uses its website as a key source of Company information and can be accessed at
www.sbgi.net.





Sinclair Broadcast Group, Inc. and Subsidiaries

Preliminary Unaudited Consolidated Statements of Operations

(in thousands, except per share data)


                          Three Months Ended         Nine Months Ended
                          September 30,              September 30,
                          2012          2011         2012          2011
REVENUES:
Station broadcast                       $                       $  
revenues, net of agency   $  226,377  151,875      $  637,553  467,206
commissions
Revenues realized from
station barter            21,600        17,512       60,655        53,232
arrangements
Other operating divisions 12,512        11,655       38,609        32,073
revenues
Total revenues            260,489       181,042      736,817       552,511
OPERATING EXPENSES:
Station production        61,967        41,493       185,247       126,755
expenses
Station selling, general
and administrative        43,604        31,341       121,776       92,095
expenses
Expenses recognized from
station barter            19,693        15,815       55,645        48,073
arrangements
Amortization of program
contract costs and net    14,495        12,833       44,197        38,117
realizable value
adjustments
Other operating divisions 10,372        9,369        33,165        26,102
expenses
Depreciation of property  12,846        7,602        34,684        23,523
and equipment
Corporate general and     8,286         5,789        25,166        21,526
administrative expenses
Amortization of
definite-lived intangible 10,669        4,393        26,694        14,201
and other assets
Total operating expenses  181,932       128,635      526,574       390,392
Operating income          78,557        52,407       210,243       162,119
OTHER INCOME (EXPENSE):
Interest expense and
amortization of debt      (35,294)      (24,463)     (92,001)      (78,564)
discount and deferred
financing costs
Loss from extinguishment  —             (117)        (335)         (4,519)
of debt
Income from equity and    1,919         2,080        8,343         2,906
cost method investments
Other income, net         547           409          1,733         2,994
Total other expense       (32,828)      (22,091)     (82,260)      (77,183)
Income from continuing
operations before income  45,729        30,316       127,983       84,936
taxes
INCOME TAX PROVISION      (19,153)      (10,875)     (42,211)      (31,701)
Income from continuing    26,576        19,441       85,772        53,235
operations
DISCONTINUED OPERATIONS:
Loss from discontinued
operations, includes
income tax (benefit)      (224)         (110)        (214)         (300)
provision of $(24), $110,
$194 and $366,
respectively
NET INCOME                26,352        19,331       85,558        52,935
Net (income) loss
attributable to the       (107)         (93)         106           161
noncontrolling interests
NET INCOME ATTRIBUTABLE   $           $        $           $   
TO SINCLAIR BROADCAST     26,245       19,238       85,664       53,096
GROUP
Dividends declared per    $        $       $        $     
share                     0.15           0.12       0.39         0.36
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO SINCLAIR
BROADCAST GROUP:
Basic earnings per share  $        $       $        $     
from continuing           0.33          0.24       1.06         0.66
operations
Basic earnings per share  $        $       $        $     
                          0.33          0.24       1.06         0.66
Diluted earnings per      $        $       $        $     
share from continuing     0.33          0.24       1.06         0.66
operations
Diluted earnings per      $        $       $        $     
share                     0.32          0.24       1.05         0.66
Weighted average common   81,081        80,764       80,990        80,623
shares outstanding
Weighted average common
and common equivalent     81,379        81,068       81,267        80,930
shares outstanding
AMOUNTS ATTRIBUTABLE TO
SINCLAIR BROADCAST GROUP
COMMON SHAREHOLDERS:
Income from continuing    $          $        $           $    
operations, net of tax    26,469        19,348       85,878       53,396
Loss from discontinued    (224)         (110)        (214)         (300)
operations, net of tax
Net income                $          $        $           $    
                          26,245        19,238       85,664       53,096





Preliminary Unaudited Consolidated Historical Selected Balance Sheet Data:

(In thousands)


                                           September 30,   June 30,

                                           2012            2012
Cash & cash equivalents                    $    44,625 $    31,078
Total current assets                       289,158         244,106
Total long term assets ^                   1,956,378       1,916,135
Total assets                               $  2,245,536   2,160,241
Current portion of debt                    47,871          45,630
Total current liabilities                  303,238         231,778
Long term portion of debt                  1,678,918       1,682,701
Total long term liabilities                1,994,682       1,994,745
Total liabilities                          2,297,920       2,226,523
Total stockholders' deficit                (52,384)        (66,282)
Total liabilities & stockholders' deficit  $  2,245,536  $  2,160,241





Unaudited Consolidated Historical Selected Statement of Cash Flows Data:

(In thousands)


                                                 Three Months   Nine Months
                                                 Ended          Ended
                                                 September 30,  September 30,
                                                 2012           2012
Net cash flow from operating activities          $    83,029 $  163,304
Net cash flow used in investing activities       (52,867)       (609,263)
Net cash flow (used) from financing activities   (16,615)       477,617
Net increase in cash & cash equivalents          13,547         31,658
Cash & cash equivalents, beginning of period 31,078         12,967
Cash & cash equivalents, end of period           $   44,625  $   44,625



SOURCE Sinclair Broadcast Group, Inc.

Website: http://www.sbgi.net
Contact: David Amy, EVP & Chief Financial Officer, Lucy Rutishauser,
VP-Corporate Finance & Treasurer, +1-410-568-1500
 
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