Bank of America Merrill Lynch Leveraged Finance Conference December 4, 2012
Aug 12, 2015
Bank of America Merrill LynchLeveraged Finance ConferenceDecember 4, 2012
Safe Harbor
2
Safe Harbor Statement
The following information contains, or may be deemed to contain, "forward-looking statements" (as defined in the U.S. Private
Securities Litigation Reform Act of 1995). Any statements about our expectations, beliefs, plans, objectives, assumptions or future
events or performance are not historical facts and may be forward-looking. We base these forward-looking statements on our
expectations, assumptions, estimates and projections about our business and the industry in which we operate as of the date of
this presentation. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future and cannot be predicted, quantified or controlled, and as such
these statements could cause actual results to differ materially from those set forth in, contemplated by or underlying any forward-
looking statements. Statements made in these presentation materials and during this presentation and factors set forth under the
title “Risk Factors” in our Form 10-K, 10-Qs, and 8-Ks filed with the SEC, describe factors, among others, that could contribute to
or cause any material difference in outcome from those set forth in, contemplated by or underlying any forward-looking
statements. However, additional factors and risks not currently known to us or that we deem immaterial may also materially and
adversely affect our financial condition and results of operation, and you should review the factors and risks we describe in
reports we file with the Securities and Exchange Commission or that are provided to you by us from time to time.
You are cautioned not to place any undue reliance on any forward-looking statements, which speak only as of the date made. All
subsequent forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referred
to herein. We undertake no obligation to update these statements or publicly release revisions to these statements to reflect
subsequent events, except as required by law.
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not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Neither this document nor
the information contained herein constitutes an offer to sell or the solicitation of an offer to buy any securities.
Company Overview &Investment Highlights
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Broadcast Leader
� One of the largest & most diversified pure-
play television broadcasters
� 83 TV stations in 46 markets (27 of
which are multi-station markets)
� 27.1% U.S. coverage (31.3 million
households)
� 37 markets airing news
� 50+ sub-channels
� Affiliated with all of the major networks
� Insulates us from network downturns
� Growth through key strategic acquisitions
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Station Affiliation Make-up
Note: Statistics include the Newport, WUTB and KBTV pending acquisitions; WLAJ pending disposition
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Diversified Market Coverage
% of Stations in DMA Sizes
� Dominant middle market
broadcaster
� Footprint brings buying power and negotiating leverage
� Diversification insulates Sinclair from network and local
economic downturns
Note: Statistics include the Newport, WUTB and KBTV pending acquisitions; WLAJ pending disposition
Significant Audience Reach
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National Coverage – U.S. TV Households
Source: Company documents and public filingsNote: Market coverage is after the Newport, WUTB and KBTV pending acquisitions; WLAJ pending disposition
Diversified Affiliation Mix
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Q3 2010 Revenues By Affiliation (Actuals)1
Source: Company documents and public filings1 Pre Four Points and Freedom2 Includes Four Points and Freedom
Q3 2012 Revenues by Affiliation (Actuals)2
FOX
36%
ABC
20%
CBS
18%
MNT
14%
CW
10%
IND
1%
NBC
1.0%
FOX
47%
ABC
20%
MNT
17%
CW
12%
CBS
3%
NBC
1%
IND
0.10%
Sinclair Operating Strategy
� Strengthen local sales performance – protect and grow revenue share
� Invest in local content – news
� Aggressively pursue fair value retransmission consent
� Expand content offerings – digital interactive / sub-channels
� Strengthen network relations (long term affiliation agreements, reverse retrans)
� Enhance footprint and free cash flow through 'Big 3' television acquisitions
� Develop technical solutions / business opportunities
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Industry Highlights
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Industry Drivers
� New car sales (SAARs) of 14.2M units (10% growth for 2012)
� 2012 political ad spending was the biggest year on record and expected to grow in future years
� Retrans revenues expected to double over next 3 years
� TV viewing and brand awareness continue to dominate
� Local television news is the primary source of information for the majority of America
� Adults watch 5.2 hours per day vs. 3.0 hours spent on the Internet1
� 64% say that TV is the “primary action driver” of awareness1
� 39.8% learn about products from TV vs. 8.7% from the Internet1
� Network/affiliate partnerships are strong; support over-the-air local news
� Economy still recovering
� Spectrum and mobile opportunities continue to make progress
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1 Source: TVB
Political Continues to Grow
� Record political advertising in 2012
� 2012 estimated at 43% growth over 2008’s Presidential election
� PAC spending changing the landscape; driving higher average unit rates
($ in millions)
U.S. Political Ad Spending on Local TV
Source: Magna GlobalIncludes Local Broadcast and Local Cable TV political advertising
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$996
$1,264
$1,548 $1,765
$2,220
$2,528 $2,755
$2,978
2002 2004 2006 2008 2010 2012E 2014E 2018E
Retransmission Revenues Growing
($ in millions)
Source: SNL Kagan1 Based on total affiliate and O&O retransmission revenue and basic cable affiliate revenue2 Reflects O&O and Affiliate retransmission revenue before any sharing with the networks
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� Industry retransmission revenues are expected to double over next 3 years
� Although broadcast television represents 35-40% of audience share, broadcasters (affiliate and
O&O) are only receiving $2Bn (7%) of a ~$34Bn1 market opportunity
Industry Broadcast Retransmission Revenues2
$215 $313 $500
$729
$1,136 $1,455
$2,033
$2,697
$3,281
$3,894
2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E
Digital Interactive Opportunities
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� Broadcasters are well positioned to participate in Internet and social media growth
� TV and Internet are complimentary:
� ~40% looked up information related to the TV program they were watching
� ~30% looked up information on a product in an ad they saw on TV
� Social media connecting viewers while watching
� Allows broadcasters to interact with audience
� TV Station websites and mobile apps are a critical source for local and breaking news
� Broadcasters and advertisers utilizing text messaging, websites and mobile apps to
reach audience
Emerging Technology
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� Mobile television and spectrum uses are being introduced to the public
� Technological advances mean that broadcasters are no longer constrained by “1 spot to
all” in the market
� Allows broadcasters the flexibility to zone sell
� Eventually enabling broadcasters to deliver individual spots to homes and
individual devices
� Significant impact to the traffic infrastructure and sales process
Acquisition Environment &Transactions
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Acquisition Highlights
� 100 TV stations sold or under contract for sale in last 12 months ($2.6Bn in transactions)
� Of which, Four Points, Freedom, McGraw Hill, New Vision, Newport and Landmark represent 59 stations for $2.3Bn
� Seller multiples range 8.5x-12.0x odd/even year average
� More to come
� Sinclair's expertise and presence provide for attractive buyer multiples
� Four Points – 6.5x on $200M price (closed Q1-12)
� Freedom – 6.6x on $385M price (closed Q2-12)
� Bay TV – 5.7x on $40M price (closed Q4-12)
� Newport – 7.2x on $412.5M price (expected close Q4-12)
� KFBT – 4.7x on $14.0M price (expected close Q4-12)
� Result in minimal leverage and continued balance sheet strength
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Acquisition Benefits
� Purchasing power
� Negotiating leverage
� More competitive portfolio
� Free cash flow accretion
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2011 & 2012 Actual and Estimated PF EBITDA($ in millions)
1 Pro forma for 12 months of Four Points, Freedom, Bay TV, KFBT, WUTB and Newport acquisitions after synergies
Financial Overview
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Q3-12 Financial Highlights
� Net broadcast revenues (ex-political) up 32.8% versus the prior year period (FY estimated at
$906M-$908M)
� Includes $38.8M from acquisitions
� Same station core up 6.9%
� Automotive up 12.2% on a same station basis
� Political revenues of $27.8M (FY estimated at almost $100M)
� EBITDA of $100M (FY estimated at $400M-$402M)
� 61.5% EBITDA growth
� EBITDA margin of 38.4
� Free cash flow of $45.2M (FY estimated at $205M)
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FY 2012 estimates based on guidance provided 11/1/12. This is not an update or confirmation of those estimates.
Other Financial Highlights
� $1.00 Special dividend to be paid December 2012
� Superbowl on CBS in 2013
� Sales of new cars expected to grow
� Net retrans expected to grow
� Pending acquisitions to add to free cash flow
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One of the Best Credits in the Industry
� Highest free cash flow metrics (LTM)
� Free cash flow generated: $183M1
� EBITDA conversion rate into FCF: 53%
� FCF yield on equity value: 22%
� Among the most creditworthy with a strong
balance sheet
� 4.17x OpCo leverage2
� Proven ability to deleverage
� No debt maturities until 2016
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Free Cash Flow
1 Includes 9 months of Four Points and 6 months of Freedom
2 Pro forma for 12 months of Four Points and Freedom acquisitions
$129
$160
$145
$183
$205
2009 2010 2011 LTM
9/30/2012
2012 Est
New Senior Notes Overview
� $500 million
� Issued at par
� 10 year maturity (October 2022)
� 6.125% coupon
� Uses: Fund acquisitions, fees/expenses, debt repayment, general
corporate purposes
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Strong Balance Sheet (Actuals)
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Adj. EBITDA and Leverage based on bank covenant calculations 12/31/11 pro forma includes Four Points and Freedom12/31/12 pro forma includes Four Points, Freedom, Newport, WUTB, KFBT, Bay TV, $500M 6.125% bond
December 31, Sept 30, Dec 31,
($ in millions) 2011 PF 2011 2012 PF 2012E
Cash $13 $13 $45 $45
Revolving Credit Facility 12 25 15 15
Term Loans 337 867 855 855
2nd Lien Notes 500 500 500 500
Unsecured Notes 238 238 238 738
Other OpCo Debt 33 33 30 30
HoldCo Debt 21 21 20 20
VIE Debt 65 65 69 69
Debt on B/S, net of Cash 1,193 1,736 1,682 2,182
Adjusted EBITDA (TTM) 268 357 389 490
1st Lien Net Leverage 1.5x 2.6x 2.3x 1.8x
OpCo Net Leverage 4.2x 4.6x 4.2x 4.3x
Total Net Leverage 4.2x 4.7x 4.1x 4.3x
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Key Investment Highlights
� Television continues to be the dominant media
� Record-setting political ad spending in 2012
� Affiliate retransmission revenues will continue to drive growth
� Digital interactive and technologies are emerging
Strong Secular
Trends in TV Industry
Diverse Operations
with Broad Reach
Robust Free Cash Flow Generation
� 83 TV stations in 46 markets 1
� 27.1% U.S. coverage (31.3 million households)1
� Geographic and network diversity
� Portfolio make-up
� Negotiating leverage with program syndicators and MVPDs
� Multi-station markets
Strong Balance Sheet
� Among the most creditworthy of pure play public broadcasters
� No near term maturities
1 Pro forma for the Newport, WUTB and KBTV pending acquisitions; WLAJ pending disposition
Industry Leader
� $205M estimated 2012 free cash flow generation
� 53% EBITDA conversion rate into free cash flow
� $1.00 special dividend in 2012