News Release


Contact: David Amy, EVP & Chief Financial Officer

Lucy Rutishauser, VP-Corporate Finance & Treasurer

(410) 568-1500

SINCLAIR REPORTS $0.28 DILUTED EARNINGS PER SHARE IN FOURTH QUARTER 2011; DECLARES $0.12 QUARTERLY DIVIDEND PER SHARE


BALTIMORE (February 8, 2011) -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three months and twelve months ended December 31, 2011.


We ended 2011 on a strong note with core broadcast revenues growing, and our largest advertising category, automotive, up almost 12% in the fourth quarter as compared to the same period in 2010,” commented David Smith, President and CEO of Sinclair. “As we look ahead to 2012, our outlook is for continued ad spending growth by the automotive industry, as well as an increase in political advertising in this presidential election year. In addition, we expect the market for television station transactions to remain active and intend on evaluating potential transactions as they arise.”

Financial Results:


Net broadcast revenues from continuing operations were $180.8 million for the three months ended December 31, 2011, a decrease of 4.9% versus the prior year period result of $190.1 million. The Company had operating income of $63.5 million in the three-month period, as compared to operating income of $81.5 million in the prior year period. Net income attributable to the Company was $22.7 million in the three-month period versus net income of $33.1 million in the prior year period.


The Company reported diluted earnings per common share of $0.28 for the three-month period versus diluted earnings per common share of $0.40 in the prior year period.


Net broadcast revenues from continuing operations were $648.0 million for the twelve months ended December 31, 2011, a decrease of 1.2% versus the prior year period result of $655.8 million. The Company had operating income of $225.6 million in the twelve-month period, as compared to operating income of $240.8 million in the prior year period. Net income attributable to the Company was $75.8 million in the twelve-month period versus net income of $76.1 million in the prior year period.


The Company reported diluted earnings per common share of $0.94 in the twelve-month period versus diluted earnings per common share of $0.94 in the prior year period.


Operating Statistics and Income Statement Highlights:








Balance Sheet and Cash Flow Highlights:









Notes:


Prior year presentation has been reclassified to conform to the presentation of current year generally accepted accounting principles.


The management fees associated with the Four Points Media and Freedom Communications local marketing agreement (“LMAs”) are recorded 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 to acquire the stations from Freedom, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market acceptance of new programming, 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 first quarter 2012 and full year 2012 financial performance. The Company assumes no obligation to update its expectations. All matters discussed in the “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 and nine-month expectations for the stations acquired from Freedom, assuming that the Freedom acquisition closes April 1, 2012.


2012 is off to a good start with both automotive and political advertising spending leading the way,” commented David Amy, EVP and CFO. “With the upcoming Presidential election this year, we expect to experience another record-breaking year for campaign and issue advertising. Meanwhile, consumer confidence appears to be improving, and with that, we should expect to see growth in ad spending.”














Sinclair Conference Call:


The senior management of Sinclair will hold a conference call to discuss its fourth quarter 2011 results on Wednesday, February 8, 2012, at 9:30 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 73 television stations in 45 markets. Sinclair’s television portfolio consists of 20 FOX, 18 MNT, 13 CW, 11 ABC, 9 CBS, 1 NBC, and 1 Azteca station, in addition to 82 sub-channels. Sinclair's television group reaches approximately 26.3% of U.S. television households and is affiliated with all major networks. 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 December 31,


Twelve Months Ended December 31,


2011


2010


2011


2010

REVENUES:








Station broadcast revenues, net of agency commissions

$ 180,795


$ 190,051


$ 648,002


$ 655,836

Revenues realized from station barter arrangements

19,541


24,637


72,773


75,210

Other operating divisions revenues

12,440


10,980


44,513


36,598

Total revenues

212,776


225,668


765,288


767,644

OPERATING EXPENSES:








Station production expenses

51,857


40,951


178,612


154,133

Station selling, general and administrative expenses

31,843


33,665


123,938


127,091

Expenses recognized from station barter arrangements

17,669


22,388


65,742


67,083

Amortization of program contract costs and net realizable value adjustments

13,962


13,700


52,079


60,862

Other operating divisions expenses

13,384


8,657


39,486


30,916

Depreciation of property and equipment

9,351


8,563


32,874


36,307

Corporate general and administrative expenses

6,784


6,737


28,310


26,800

Amortization of definite-lived intangible assets

4,426


4,747


18,229


18,834

Impairment of goodwill, intangible and other assets

-


4,803


398


4,803

Total operating expenses

149,276


144,211


539,668


526,829

Operating income

63,500


81,457


225,620


240,815

OTHER INCOME (EXPENSE):








Interest expense and amortization of debt discount and deferred financing costs

(27,564)


(27,346)


(106,128)


(116,046)

Loss from extinguishment of debt

(328)


(1,889)


(4,847)


(6,266)

Income (loss) from equity and cost method investments

363


(2,383)


3,269


(4,861)

Gain on insurance settlement

19


285


1,742


344

Other income, net

447


502


1,717


1,865

Total other expense

(27,063)


(30,831)


(104,247)


(124,964)

Income from continuing operations before income taxes

36,437


50,626


121,373


115,851

INCOME TAX PROVISION

(13,084)


(17,294)


(44,785)


(40,226)

Income from continuing operations

23,353


33,332


76,588


75,625

DISCONTINUED OPERATIONS:








Loss from discontinued operations, includes income tax (provision) benefit of ($111), $125, ($477) and ($77), respectively

(111)


(375)


(411)


(577)

NET INCOME

23,242


32,957


76,177


75,048

Net (income) loss attributable to the noncontrolling interests

(540)


122


(379)


1,100

NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP

$ 22,702


$ 33,079


$ 75,798


$ 76,148

Dividends declared per share

$ 0.12


$ 0.43


$ 0.48


$ 0.43









BASIC AND DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:
















Basic earnings per share from continuing operations

$ 0.28


$ 0.42


$ 0.95


$ 0.96

Basic loss per share from discontinued operations

$ —


$ —


$ (0.01)


$ (0.01)

Basic earnings per share

$ 0.28


$ 0.41


$ 0.94


$ 0.95

Diluted earnings per share from continuing operations

$ 0.28


$ 0.41


$ 0.95


$ 0.95

Diluted loss per share from discontinued operations

$ —


$ —


$ (0.01)


$ (0.01)

Diluted earnings per share

$ 0.28


$ 0.40


$ 0.94


$ 0.94

Weighted average common shares outstanding

80,779


80,365


80,217


80,245

Weighted average common and common equivalent shares outstanding

81,119


83,775


80,532


83,606









AMOUNTS ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP COMMON SHAREHOLDERS:








Income from continuing operations, net of tax

$ 22,813


$ 33,454


$ 76,209


$ 76,725

Loss from discontinued operations, net of tax

(111)


(375)


(411)


(577)

Net income

$ 22,702


$ 33,079


$ 75,798


$ 76,148


Preliminary Unaudited Consolidated Historical Selected Balance Sheet Data:

(In thousands)


December 31,

2011

September 30,

2011

Cash & cash equivalents

$ 12,967

$ 61,367

Total current assets

209,717

245,645

Total long term assets

1,361,700

1,318,205

Total assets

1,571,417

1,563,850




Current portion of debt

41,209

29,485

Total current liabilities

195,582

199,899

Long term portion of debt

1,164,816

1,174,087

Total long term liabilities

1,487,197

1,489,309

Total liabilities

1,682,779

1,689,208




Total stockholders’ deficit

(111,362)

(125,358)

Total liabilities & stockholders’ deficit

$ 1,571,417

$ 1,563,850


Unaudited Consolidated Historical Selected Statement of Cash Flows Data:

(In thousands)


Three Months Ended

December 31,

Twelve Months Ended

December 31,


2011

2011

Net cash flow from operating activities

$ 20,163

$ 148,513

Net cash flow used in investing activities

(54,714)

(112,248)

Net cash flow used in financing activities

(13,849)

(45,272)




Net decrease in cash & cash equivalents

(48,400)

(9,007)

Cash & cash equivalents, beginning of period

61,367

21,974

Cash & cash equivalents, end of period

$ 12,967

$ 12,967

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