Sinclair Reports First Quarter Earnings; After Tax Cash Flow Per Share Exceeds Consensus Estimates

Apr 26, 2001, 01:00 ET from Sinclair Broadcast Group, Inc.

    BALTIMORE, April 26 /PRNewswire/ --
 Sinclair Broadcast Group, Inc. (Nasdaq:   SBGI) (the "Company" or "Sinclair")
 today reported financial results for the three months ended March 31, 2001.
 
     Highlights:
 
    -- Net broadcast revenues of $149.7 million
    -- Broadcast cash flow of $54.0 million
    -- After tax cash flow per share of $0.14, exceeds First Call consensus
        estimate of $0.07
    -- Local advertising revenues lower by only 2.6%, excluding political
 
     Financial Results:
     On a reported basis, net broadcast revenues from continuing operations
 were $149.7 million for the three months ended March 31, 2001, a decrease of
 6.9% versus the prior year period and higher than the $148.0 million guidance,
 which the Company previously provided in its last quarterly earnings release.
 Broadcast cash flow from continuing operations was $54.0 million in the
 three-month period, a decrease of 17.6% versus the prior year period and
 higher than the $49.0 million guidance, which the Company previously provided
 on its last quarterly earnings release.  After tax cash flow per share of
 $0.14 decreased 12.5% from the prior year period result of $0.16 and exceeded
 First Call consensus estimates of $0.07.
     David Amy, EVP & Chief Financial Officer, said, "Despite a difficult
 national advertising and economic environment in the first quarter, we
 experienced better than expected performance in our local markets, as well as
 from our WB, FOX and UPN affiliates.  We are encouraged by the early results
 of our local market initiatives and their impact on local advertising
 revenues, which declined by only 2.6%, as compared to national advertising
 revenues, which were down 17.4%, excluding political."
     Amy continued, "We are also pleased with our performance in the February
 sweeps ratings, which reflected positive ratings improvements by our FOX, WB
 and UPN stations in the adult 18 to 49 demographic, versus the November 2000
 sweeps.  This is the important young demographic that advertisers target and,
 with our improved ratings performance, should further drive our local
 business."
 
     Statistical Highlights:
 
    -- Net broadcast revenues, on a pro forma basis, declined across all
       affiliations in the first quarter 2001 versus the first quarter 2000,
       however, those networks, such as the WB, FOX and UPN, which are aimed
       at the younger demographic, performed better than the traditional
       networks.  Pro forma revenues from the WB affiliates, which accounted
       for 32% of net broadcast revenues, declined 6.0% over the first quarter
       2000. The FOX stations, which represented 34% of net broadcast
       revenues, experienced a 10% revenue decline, while revenues for the UPN
       stations decreased 4%.  For stations affiliated with the ABC, NBC and
       CBS networks, pro forma revenue growth during the quarter was down 16%.
 
    -- Political advertising revenues were $0.2 million in the quarter as
       compared to $2.8 million for the first quarter 2000.
 
    -- Local advertising revenues decreased 2.6%, excluding political
       advertising revenues, while national advertising revenues were down
       17.4% in the quarter versus the first quarter 2000.  The decline in
       national was due primarily to lower advertising revenues generated from
       the automotive, pharmaceutical/cosmetic and fast-food sectors.  Local
       revenues, excluding political revenues, represented 58.1% of time
       sales, as compared to 54.0% for the first quarter 2000.
 
    -- Television ratings on our stations for adults 18-49 during the 5 pm to
       midnight time period during the February sweeps were up 4.2% from the
       November 2000 sweeps, with our FOX stations increasing their ratings by
       12.7%.  Ratings on our WB stations were up 3.5%, while ratings for our
       stations affiliated with the traditional networks were down 5.5%.  The
       six networks, in comparison, were down 2.6% in prime time for the same
       sweeps periods and demographic.
 
    -- Fourth quarter 2000 market share survey results reflected that the
       Company continued to grow its share of the local television advertising
       market. The Company's local television market share, excluding
       political revenues, increased to 18.5% versus 17.9% for the fourth
       quarter 1999.
 
    -- The Company incurred a $2.4 million restructuring charge in the first
       quarter 2001, which relates to workforce reduction initiatives, in
       which the Company reduced its staff by 186 employees.
 
                  Pro Forma Results for Continuing Operations:
                             (Dollars in millions)
 
                      Q1 2000    Q2 2000 Q3 2000  Q4 2000    FY2000  Q1 2001
     Net broadcast
      revenues         $166.3     $194.4  $175.6   $199.5    $735.8   $149.7
     Broadcast
      cash flow         $67.2      $93.1   $79.8   $101.2    $341.3    $54.0
 
     References to "pro forma" or "pro forma basis" means that the financial
 results being discussed include the financial results of all stations owned or
 programmed as of March 31, 2001, as if they were owned for the entire period
 covered by the discussion.
 
     Balance Sheet Analysis:
     The Company's net debt of $1,647.2 million at March 31, 2001, which is net
 of $3.7 million in cash, increased by $34.9 million from the net debt of
 $1,612.3 million at December 31, 2000.  The increase in net debt resulted
 primarily from a $38.0 million tax payment related to the sale of the St.
 Louis radio stations, which were sold in October 2000.  Capital expenditures
 on continuing operations totaled $6.8 million in the quarter.  The Company did
 not repurchase any Class A common shares during the quarter.  Financial
 leverage, as defined by total indebtedness, before the HYTOPS, divided by the
 12-month trailing pro forma EBITDA, was 5.39x at March 31, 2001, down from
 5.67x at March 31, 2000.
 
     Share Repurchase Program:
     On October 28, 1999, the Company announced that its Board of Directors had
 authorized a new share repurchase program for up to $300.0 million worth of
 Sinclair's Class A Common Stock.  The amount of shares repurchased are subject
 to market conditions, general business conditions, and financial covenants and
 incurrence tests outlined in Sinclair's credit agreement.  The amount
 available for share repurchases could increase or decrease depending on future
 operating results or net borrowings for strategic acquisitions, investments or
 other purposes.  Since the share repurchase announcement on October 28, 1999
 through today, Sinclair has repurchased 13.2 million shares, at a cost of
 $129.2 million, representing 25.9% of its Class A common shares outstanding.
 As of March 31, 2001, 39.9 million Class A common shares and 44.8 million
 Class B common shares were outstanding.
 
     Outlook:
     In accordance with Regulation Fair Disclosure (Reg. FD), Sinclair is
 providing public dissemination through this press release of its expectations
 for its second quarter 2001 financial performance.  The Company assumes no
 obligation to update its expectations.  All matters discussed in the "Outlook"
 section are forward-looking and, as such, persons relying on this information
 should refer to the "Forward-Looking Statements" section below.
     "As previously announced in our last quarterly earnings release, we
 continue to expect the same economic conditions and advertising spending
 climate that existed in the first quarter to continue through the second
 quarter.  We continue to expect both environments to begin to improve in the
 third quarter of this year and return to a more normalized advertising market
 in the fourth quarter.  Although broadcasters will face tougher comparisons in
 the second half of the year, due to the absence of political and Olympics
 revenues, we believe that we are well-positioned for this difficult
 environment.  The diversity of our stations and our focus on the local markets
 will reduce our seasonal hurdle of political and Olympics revenues, as
 compared to those broadcasters in the top ten markets or those having more
 affiliations with the ABC, NBC and CBS networks," commented Amy.
 
     Second Quarter 2001 and Full Year 2001:
 
    -- The Company reaffirms its pro forma full year 2001 public guidance
       previously given for net broadcast revenues to be down by a high single
       digit percent, broadcast cash flow to be down by a high teen percent
       and for ATCF per share of $1.25 to $1.30.
 
    -- The Company expects pro forma net broadcast revenues for the second
       quarter to be down approximately 13% to 15% from second quarter 2000
       pro forma net broadcast revenues of $194 million.  This expectation
       assumes that the economic slowdown will continue to negatively impact
       an already weak national advertising climate.
 
    -- The Company expects pro forma broadcast cash flow to be down
       approximately 28% to 30% from second quarter 2000 pro forma broadcast
       cash flow of $93 million, primarily due to the expected decline in net
       broadcast revenues.
 
    -- The Company expects second quarter ATCF per share of approximately
       $0.28 to $0.30, down from the second quarter 2000 ATCF per share of
       $0.48.  This assumes that the shares outstanding for the second quarter
       are equal to the number of shares outstanding on March 31, 2001 and
       interest expense based upon the Company's existing Bank Credit Facility
       terms. The decline is primarily due to the decrease in revenues related
       to the economic slowdown and higher film amortization costs, offset by
       a higher current tax benefit.
 
    -- The Company expects second quarter program contract payments of
       approximately $27 million, assuming no changes in contract terms or the
       addition of new programming.
 
    -- The Company expects second quarter program contract amortization to be
       approximately $27 million, assuming no changes in contract terms or the
       addition of new programming.
 
    -- The Company expects net interest expense, before the $5.8 million
       Subsidiary Trust Minority interest expense, to be approximately
       $36 million in the second quarter, assuming changes in debt levels
       based upon expectations of operating results discussed in this section,
       no changes in the current interest rate yield curve, and bank borrowing
       rates per the Company's existing Credit Facility terms.  The Company is
       currently in the process of negotiating a refinancing of its existing
       Bank Credit Facility.  Upon closing, the bank borrowing rates will be
       marked to market and may result in a higher interest expense.
 
    -- The Company expects corporate overhead of approximately $5 million in
       the second quarter, assuming current levels of staffing.
 
    -- The Company expects a current tax benefit from continuing operations of
       approximately $8 million in the second quarter.
 
    -- The Company's number of common shares outstanding at March 31, 2001 is
       84.8 million shares.
 
    -- The Company expects to spend approximately $15 million in capital
       expenditures in the second quarter.  For the full year 2001, the
       Company expects to spend $66 million in routine capital and digital
       upgrades for the year, revised down from prior full year 2001 guidance
       of $76 million.  Of this, $55 million is expected to relate to capital
       spending for the digital television transition.
 
     Broadcast cash flow is a measurement utilized by lenders to measure our
 ability to service our debt and is utilized by industry analysts to determine
 a private market value of our television stations and to determine our
 operating performance.
     After tax cash flow is a measurement utilized by industry analysts to
 determine a public market value of our television stations and to determine
 our operating performance.  See "Notes" below for a full definition of after
 tax cash flow.
 
     Sinclair Conference Call:
     The senior management of Sinclair will hold a conference call to discuss
 its first quarter results on Thursday, April 26, 2001, at 5:00 p.m. EDT.
 After the call, an audio replay will be available at www.sbgi.net under
 "Conference Call" until 11:59 p.m. EDT on May 3, 2001.  The press and the
 public will be welcome on the call in a listen-only mode.  The dial-in number
 is (800) 289-0529.
 
     About Sinclair:
     Sinclair Broadcast Group, Inc. is a diversified broadcasting company that
 currently owns, operates or programs 62 television stations in 40 markets.
 Sinclair's television group reaches approximately 25.0% of U.S. television
 households and includes ABC, CBS, FOX, NBC, WB, and UPN affiliates.  Sinclair,
 through its wholly owned subsidiary, Sinclair Ventures, Inc., owns equity
 interests in Internet companies including G1440, an Internet consulting and
 development company, VisionAIR, a wireless data applications developer, and
 Synergy Brands, Inc.  Sinclair has a strategic alliance with Acrodyne
 Communications, Inc., a manufacturer of transmitters and other television
 broadcast equipment.
 
                Historical Financial Highlights and Other Data:
                (Dollars in thousands except for per share data)
 
                                       Three Months
                                      Ended March 31,
                                      2001         2000          Incr. (Dec.)%
 
     Net broadcast revenues         $149,709    $160,802             (6.9)
     Total revenues                  165,564     176,427             (6.2)
     Broadcast cash flow              54,023      65,594            (17.6)
     Adjusted EBITDA                  49,168      59,750            (17.7)
     After tax cash flow              12,161      15,061            (19.3)
     Expenses related to G1440         2,563         608            321.5
     Program contract payments        24,846      24,675              0.7
     Capital expenditures              6,774       6,378              6.2
     Corporate expense                 4,855       5,844            (16.9)
     Current tax provision
      (benefit) from operations       (5,087)      2,662              N.M.
 
     Deferred tax benefit related
      to operations                       56      19,034            (99.7)
 
     After tax cash flow per share     $0.14       $0.16            (12.5)
 
     N.M. - Not meaningful
 
     Notes:
     The definitions used for the terms "Broadcast Cash Flow" and "Adjusted
 EBITDA" conform to those used in the Company's most recent report on Form 10-K
 filed with the Securities and Exchange Commission on March 30, 2001, plus
 restructuring charges.
     "After tax cash flow" (ATCF) is defined as net income (loss) available to
 common shareholders, plus depreciation and amortization (excluding film
 amortization), stock-based compensation, the cumulative adjustment for change
 in assets held for sale, restructuring charges, the loss from equity
 investments (or minus the gain), the loss on derivative instruments (or minus
 the gain), the deferred tax provision related to operations (or minus the
 deferred tax benefit) and minus the gain on sale of assets and deferred NOL
 carrybacks.  After tax cash flow should not be considered in isolation or as a
 substitute for measures of performance or to represent cash provided by
 operating activities prepared in accordance with generally accepted accounting
 principles.  ATCF is a measurement utilized by industry analysts to determine
 a public market value of our television stations and to determine our
 operating performance.
     "After tax cash flow per share" is defined as after tax cash flow divided
 by diluted weighted average common and common equivalent shares outstanding.
 
     After tax cash flow calculation:
 
                                                        Three Months Ended
                                                             March 31,
                                                         2001           2000
 
     Net loss available to common shareholders       $(39,201)       $(4,408)
 
     Depreciation of property and equipment             9,530          8,511
     Amortization of acquired intangible broadcast
      assets and other assets                          29,431         26,939
     Restructuring charge                               2,423            ---
     Cumulative adjustment for charge in
      assets held for sale                                ---            619
     Stock based compensation                             618            676
     (Gain) loss on derivative instruments              9,348           (699)
     Loss from equity investments                          68            535
     Depreciation and amortization related
      to discontinued operations                          ---          1,922
     Deferred tax benefit related to operations           (56)       (19,034)
     After tax cash flow                              $12,161        $15,061
 
     Discontinued Operations:
     As a result of the Company's strategy to divest of its radio broadcasting
 segment, "Discontinued Operations" accounting has been adopted in the
 financial statements for all periods presented in this press release.  As
 such, the results from operations of the radio broadcast segment, net of
 related income taxes, has been reclassified from income from operations and
 reflected as net income from discontinued operations in the financial
 statements for all periods presented in this press release.
 
     Forward-Looking Statements:
     The matters discussed in this press release, particularly those in the
 section labeled "Outlook," include forward-looking statements regarding, among
 other things, future operating results.  When used in this press release, the
 words "outlook," "intends to," "believes," "anticipates," "expects" 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 above, the impact of
 changes in national and regional economies, successful integration of acquired
 television stations (including achievement of synergies and cost reductions),
 pricing and demand fluctuations in local and national advertising, volatility
 in programming costs, the market acceptance of new programming, the
 effectiveness of new salespeople, the effects of the writers and screen actors
 guilds strikes, and the other risk factors set forth in the Company's most
 recent report on Form 10-K filed with the Securities and Exchange Commission
 on March 30, 2001.  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 that may be made to reflect any future events or
 circumstances.
 
                SINCLAIR BROADCAST GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                         2001           2000
     REVENUES:
     Station broadcast revenues, net of agency
      commissions                                    $149,709       $160,802
     Revenues realized from barter arrangements        13,672         15,046
     Other revenues                                     2,183            579
     Total revenues                                   165,564        176,427
 
     OPERATING EXPENSES:
     Program and production                            38,218         38,065
     Selling, general and administrative               41,586         40,528
     Expenses realized from barter arrangements        12,126         13,438
     Amortization of program contract costs and
      net realizable value adjustments                 25,117         25,077
     Depreciation of property and equipment             9,530          8,511
     Amortization of acquired intangible broadcast
      assets and other assets                          29,431         26,939
     Stock based compensation                             618            676
     Restructuring charge                               2,423            ---
     Cumulative adjustment for change in assets
      held for sale                                       ---            619
     Total operating expenses                         159,049        153,853
     Operating income                                   6,515         22,574
 
     OTHER INCOME (EXPENSE):
     Interest expense                                 (33,912)       (36,872)
     Subsidiary trust minority interest expense        (5,813)        (5,813)
     Interest income                                      675            580
     Loss from equity investments                         (68)          (535)
     Gain (loss) on derivative instrument              (9,348)           699
     Other income (expense)                               195           (163)
     Total other expense                              (48,271)       (42,104)
 
     Loss before income taxes                         (41,756)       (19,530)
     Benefit for income taxes                           5,143         16,907
     Net loss from continuing operations              (36,613)        (2,623)
     Net income from discontinued operations,
      net of taxes                                        ---            803
     Net loss                                        $(36,613)       $(1,820)
     Preferred stock dividends payable                  2,588          2,588
     Net loss available to common shareholders       $(39,201)       $(4,408)
 
     Basic loss per share from continuing operations  $(0.46)         $(0.05)
     Basic earnings per share from discontinued
      operations                                         $---          $0.01
     Basic loss per share                             $(0.46)        $(0.05)
     Diluted loss per share from
      continuing operations                           $(0.46)        $(0.05)
     Diluted earnings per share from
      discontinued operations                            $---          $0.01
     Diluted loss per share                           $(0.46)         $(0.05)
     Weighted average shares outstanding-
      no dilution                                      84,560         95,237
     Weighted average shares outstanding-
      assuming dilution                                84,590         95,237
 
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SOURCE Sinclair Broadcast Group, Inc.
    BALTIMORE, April 26 /PRNewswire/ --
 Sinclair Broadcast Group, Inc. (Nasdaq:   SBGI) (the "Company" or "Sinclair")
 today reported financial results for the three months ended March 31, 2001.
 
     Highlights:
 
    -- Net broadcast revenues of $149.7 million
    -- Broadcast cash flow of $54.0 million
    -- After tax cash flow per share of $0.14, exceeds First Call consensus
        estimate of $0.07
    -- Local advertising revenues lower by only 2.6%, excluding political
 
     Financial Results:
     On a reported basis, net broadcast revenues from continuing operations
 were $149.7 million for the three months ended March 31, 2001, a decrease of
 6.9% versus the prior year period and higher than the $148.0 million guidance,
 which the Company previously provided in its last quarterly earnings release.
 Broadcast cash flow from continuing operations was $54.0 million in the
 three-month period, a decrease of 17.6% versus the prior year period and
 higher than the $49.0 million guidance, which the Company previously provided
 on its last quarterly earnings release.  After tax cash flow per share of
 $0.14 decreased 12.5% from the prior year period result of $0.16 and exceeded
 First Call consensus estimates of $0.07.
     David Amy, EVP & Chief Financial Officer, said, "Despite a difficult
 national advertising and economic environment in the first quarter, we
 experienced better than expected performance in our local markets, as well as
 from our WB, FOX and UPN affiliates.  We are encouraged by the early results
 of our local market initiatives and their impact on local advertising
 revenues, which declined by only 2.6%, as compared to national advertising
 revenues, which were down 17.4%, excluding political."
     Amy continued, "We are also pleased with our performance in the February
 sweeps ratings, which reflected positive ratings improvements by our FOX, WB
 and UPN stations in the adult 18 to 49 demographic, versus the November 2000
 sweeps.  This is the important young demographic that advertisers target and,
 with our improved ratings performance, should further drive our local
 business."
 
     Statistical Highlights:
 
    -- Net broadcast revenues, on a pro forma basis, declined across all
       affiliations in the first quarter 2001 versus the first quarter 2000,
       however, those networks, such as the WB, FOX and UPN, which are aimed
       at the younger demographic, performed better than the traditional
       networks.  Pro forma revenues from the WB affiliates, which accounted
       for 32% of net broadcast revenues, declined 6.0% over the first quarter
       2000. The FOX stations, which represented 34% of net broadcast
       revenues, experienced a 10% revenue decline, while revenues for the UPN
       stations decreased 4%.  For stations affiliated with the ABC, NBC and
       CBS networks, pro forma revenue growth during the quarter was down 16%.
 
    -- Political advertising revenues were $0.2 million in the quarter as
       compared to $2.8 million for the first quarter 2000.
 
    -- Local advertising revenues decreased 2.6%, excluding political
       advertising revenues, while national advertising revenues were down
       17.4% in the quarter versus the first quarter 2000.  The decline in
       national was due primarily to lower advertising revenues generated from
       the automotive, pharmaceutical/cosmetic and fast-food sectors.  Local
       revenues, excluding political revenues, represented 58.1% of time
       sales, as compared to 54.0% for the first quarter 2000.
 
    -- Television ratings on our stations for adults 18-49 during the 5 pm to
       midnight time period during the February sweeps were up 4.2% from the
       November 2000 sweeps, with our FOX stations increasing their ratings by
       12.7%.  Ratings on our WB stations were up 3.5%, while ratings for our
       stations affiliated with the traditional networks were down 5.5%.  The
       six networks, in comparison, were down 2.6% in prime time for the same
       sweeps periods and demographic.
 
    -- Fourth quarter 2000 market share survey results reflected that the
       Company continued to grow its share of the local television advertising
       market. The Company's local television market share, excluding
       political revenues, increased to 18.5% versus 17.9% for the fourth
       quarter 1999.
 
    -- The Company incurred a $2.4 million restructuring charge in the first
       quarter 2001, which relates to workforce reduction initiatives, in
       which the Company reduced its staff by 186 employees.
 
                  Pro Forma Results for Continuing Operations:
                             (Dollars in millions)
 
                      Q1 2000    Q2 2000 Q3 2000  Q4 2000    FY2000  Q1 2001
     Net broadcast
      revenues         $166.3     $194.4  $175.6   $199.5    $735.8   $149.7
     Broadcast
      cash flow         $67.2      $93.1   $79.8   $101.2    $341.3    $54.0
 
     References to "pro forma" or "pro forma basis" means that the financial
 results being discussed include the financial results of all stations owned or
 programmed as of March 31, 2001, as if they were owned for the entire period
 covered by the discussion.
 
     Balance Sheet Analysis:
     The Company's net debt of $1,647.2 million at March 31, 2001, which is net
 of $3.7 million in cash, increased by $34.9 million from the net debt of
 $1,612.3 million at December 31, 2000.  The increase in net debt resulted
 primarily from a $38.0 million tax payment related to the sale of the St.
 Louis radio stations, which were sold in October 2000.  Capital expenditures
 on continuing operations totaled $6.8 million in the quarter.  The Company did
 not repurchase any Class A common shares during the quarter.  Financial
 leverage, as defined by total indebtedness, before the HYTOPS, divided by the
 12-month trailing pro forma EBITDA, was 5.39x at March 31, 2001, down from
 5.67x at March 31, 2000.
 
     Share Repurchase Program:
     On October 28, 1999, the Company announced that its Board of Directors had
 authorized a new share repurchase program for up to $300.0 million worth of
 Sinclair's Class A Common Stock.  The amount of shares repurchased are subject
 to market conditions, general business conditions, and financial covenants and
 incurrence tests outlined in Sinclair's credit agreement.  The amount
 available for share repurchases could increase or decrease depending on future
 operating results or net borrowings for strategic acquisitions, investments or
 other purposes.  Since the share repurchase announcement on October 28, 1999
 through today, Sinclair has repurchased 13.2 million shares, at a cost of
 $129.2 million, representing 25.9% of its Class A common shares outstanding.
 As of March 31, 2001, 39.9 million Class A common shares and 44.8 million
 Class B common shares were outstanding.
 
     Outlook:
     In accordance with Regulation Fair Disclosure (Reg. FD), Sinclair is
 providing public dissemination through this press release of its expectations
 for its second quarter 2001 financial performance.  The Company assumes no
 obligation to update its expectations.  All matters discussed in the "Outlook"
 section are forward-looking and, as such, persons relying on this information
 should refer to the "Forward-Looking Statements" section below.
     "As previously announced in our last quarterly earnings release, we
 continue to expect the same economic conditions and advertising spending
 climate that existed in the first quarter to continue through the second
 quarter.  We continue to expect both environments to begin to improve in the
 third quarter of this year and return to a more normalized advertising market
 in the fourth quarter.  Although broadcasters will face tougher comparisons in
 the second half of the year, due to the absence of political and Olympics
 revenues, we believe that we are well-positioned for this difficult
 environment.  The diversity of our stations and our focus on the local markets
 will reduce our seasonal hurdle of political and Olympics revenues, as
 compared to those broadcasters in the top ten markets or those having more
 affiliations with the ABC, NBC and CBS networks," commented Amy.
 
     Second Quarter 2001 and Full Year 2001:
 
    -- The Company reaffirms its pro forma full year 2001 public guidance
       previously given for net broadcast revenues to be down by a high single
       digit percent, broadcast cash flow to be down by a high teen percent
       and for ATCF per share of $1.25 to $1.30.
 
    -- The Company expects pro forma net broadcast revenues for the second
       quarter to be down approximately 13% to 15% from second quarter 2000
       pro forma net broadcast revenues of $194 million.  This expectation
       assumes that the economic slowdown will continue to negatively impact
       an already weak national advertising climate.
 
    -- The Company expects pro forma broadcast cash flow to be down
       approximately 28% to 30% from second quarter 2000 pro forma broadcast
       cash flow of $93 million, primarily due to the expected decline in net
       broadcast revenues.
 
    -- The Company expects second quarter ATCF per share of approximately
       $0.28 to $0.30, down from the second quarter 2000 ATCF per share of
       $0.48.  This assumes that the shares outstanding for the second quarter
       are equal to the number of shares outstanding on March 31, 2001 and
       interest expense based upon the Company's existing Bank Credit Facility
       terms. The decline is primarily due to the decrease in revenues related
       to the economic slowdown and higher film amortization costs, offset by
       a higher current tax benefit.
 
    -- The Company expects second quarter program contract payments of
       approximately $27 million, assuming no changes in contract terms or the
       addition of new programming.
 
    -- The Company expects second quarter program contract amortization to be
       approximately $27 million, assuming no changes in contract terms or the
       addition of new programming.
 
    -- The Company expects net interest expense, before the $5.8 million
       Subsidiary Trust Minority interest expense, to be approximately
       $36 million in the second quarter, assuming changes in debt levels
       based upon expectations of operating results discussed in this section,
       no changes in the current interest rate yield curve, and bank borrowing
       rates per the Company's existing Credit Facility terms.  The Company is
       currently in the process of negotiating a refinancing of its existing
       Bank Credit Facility.  Upon closing, the bank borrowing rates will be
       marked to market and may result in a higher interest expense.
 
    -- The Company expects corporate overhead of approximately $5 million in
       the second quarter, assuming current levels of staffing.
 
    -- The Company expects a current tax benefit from continuing operations of
       approximately $8 million in the second quarter.
 
    -- The Company's number of common shares outstanding at March 31, 2001 is
       84.8 million shares.
 
    -- The Company expects to spend approximately $15 million in capital
       expenditures in the second quarter.  For the full year 2001, the
       Company expects to spend $66 million in routine capital and digital
       upgrades for the year, revised down from prior full year 2001 guidance
       of $76 million.  Of this, $55 million is expected to relate to capital
       spending for the digital television transition.
 
     Broadcast cash flow is a measurement utilized by lenders to measure our
 ability to service our debt and is utilized by industry analysts to determine
 a private market value of our television stations and to determine our
 operating performance.
     After tax cash flow is a measurement utilized by industry analysts to
 determine a public market value of our television stations and to determine
 our operating performance.  See "Notes" below for a full definition of after
 tax cash flow.
 
     Sinclair Conference Call:
     The senior management of Sinclair will hold a conference call to discuss
 its first quarter results on Thursday, April 26, 2001, at 5:00 p.m. EDT.
 After the call, an audio replay will be available at www.sbgi.net under
 "Conference Call" until 11:59 p.m. EDT on May 3, 2001.  The press and the
 public will be welcome on the call in a listen-only mode.  The dial-in number
 is (800) 289-0529.
 
     About Sinclair:
     Sinclair Broadcast Group, Inc. is a diversified broadcasting company that
 currently owns, operates or programs 62 television stations in 40 markets.
 Sinclair's television group reaches approximately 25.0% of U.S. television
 households and includes ABC, CBS, FOX, NBC, WB, and UPN affiliates.  Sinclair,
 through its wholly owned subsidiary, Sinclair Ventures, Inc., owns equity
 interests in Internet companies including G1440, an Internet consulting and
 development company, VisionAIR, a wireless data applications developer, and
 Synergy Brands, Inc.  Sinclair has a strategic alliance with Acrodyne
 Communications, Inc., a manufacturer of transmitters and other television
 broadcast equipment.
 
                Historical Financial Highlights and Other Data:
                (Dollars in thousands except for per share data)
 
                                       Three Months
                                      Ended March 31,
                                      2001         2000          Incr. (Dec.)%
 
     Net broadcast revenues         $149,709    $160,802             (6.9)
     Total revenues                  165,564     176,427             (6.2)
     Broadcast cash flow              54,023      65,594            (17.6)
     Adjusted EBITDA                  49,168      59,750            (17.7)
     After tax cash flow              12,161      15,061            (19.3)
     Expenses related to G1440         2,563         608            321.5
     Program contract payments        24,846      24,675              0.7
     Capital expenditures              6,774       6,378              6.2
     Corporate expense                 4,855       5,844            (16.9)
     Current tax provision
      (benefit) from operations       (5,087)      2,662              N.M.
 
     Deferred tax benefit related
      to operations                       56      19,034            (99.7)
 
     After tax cash flow per share     $0.14       $0.16            (12.5)
 
     N.M. - Not meaningful
 
     Notes:
     The definitions used for the terms "Broadcast Cash Flow" and "Adjusted
 EBITDA" conform to those used in the Company's most recent report on Form 10-K
 filed with the Securities and Exchange Commission on March 30, 2001, plus
 restructuring charges.
     "After tax cash flow" (ATCF) is defined as net income (loss) available to
 common shareholders, plus depreciation and amortization (excluding film
 amortization), stock-based compensation, the cumulative adjustment for change
 in assets held for sale, restructuring charges, the loss from equity
 investments (or minus the gain), the loss on derivative instruments (or minus
 the gain), the deferred tax provision related to operations (or minus the
 deferred tax benefit) and minus the gain on sale of assets and deferred NOL
 carrybacks.  After tax cash flow should not be considered in isolation or as a
 substitute for measures of performance or to represent cash provided by
 operating activities prepared in accordance with generally accepted accounting
 principles.  ATCF is a measurement utilized by industry analysts to determine
 a public market value of our television stations and to determine our
 operating performance.
     "After tax cash flow per share" is defined as after tax cash flow divided
 by diluted weighted average common and common equivalent shares outstanding.
 
     After tax cash flow calculation:
 
                                                        Three Months Ended
                                                             March 31,
                                                         2001           2000
 
     Net loss available to common shareholders       $(39,201)       $(4,408)
 
     Depreciation of property and equipment             9,530          8,511
     Amortization of acquired intangible broadcast
      assets and other assets                          29,431         26,939
     Restructuring charge                               2,423            ---
     Cumulative adjustment for charge in
      assets held for sale                                ---            619
     Stock based compensation                             618            676
     (Gain) loss on derivative instruments              9,348           (699)
     Loss from equity investments                          68            535
     Depreciation and amortization related
      to discontinued operations                          ---          1,922
     Deferred tax benefit related to operations           (56)       (19,034)
     After tax cash flow                              $12,161        $15,061
 
     Discontinued Operations:
     As a result of the Company's strategy to divest of its radio broadcasting
 segment, "Discontinued Operations" accounting has been adopted in the
 financial statements for all periods presented in this press release.  As
 such, the results from operations of the radio broadcast segment, net of
 related income taxes, has been reclassified from income from operations and
 reflected as net income from discontinued operations in the financial
 statements for all periods presented in this press release.
 
     Forward-Looking Statements:
     The matters discussed in this press release, particularly those in the
 section labeled "Outlook," include forward-looking statements regarding, among
 other things, future operating results.  When used in this press release, the
 words "outlook," "intends to," "believes," "anticipates," "expects" 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 above, the impact of
 changes in national and regional economies, successful integration of acquired
 television stations (including achievement of synergies and cost reductions),
 pricing and demand fluctuations in local and national advertising, volatility
 in programming costs, the market acceptance of new programming, the
 effectiveness of new salespeople, the effects of the writers and screen actors
 guilds strikes, and the other risk factors set forth in the Company's most
 recent report on Form 10-K filed with the Securities and Exchange Commission
 on March 30, 2001.  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 that may be made to reflect any future events or
 circumstances.
 
                SINCLAIR BROADCAST GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                         2001           2000
     REVENUES:
     Station broadcast revenues, net of agency
      commissions                                    $149,709       $160,802
     Revenues realized from barter arrangements        13,672         15,046
     Other revenues                                     2,183            579
     Total revenues                                   165,564        176,427
 
     OPERATING EXPENSES:
     Program and production                            38,218         38,065
     Selling, general and administrative               41,586         40,528
     Expenses realized from barter arrangements        12,126         13,438
     Amortization of program contract costs and
      net realizable value adjustments                 25,117         25,077
     Depreciation of property and equipment             9,530          8,511
     Amortization of acquired intangible broadcast
      assets and other assets                          29,431         26,939
     Stock based compensation                             618            676
     Restructuring charge                               2,423            ---
     Cumulative adjustment for change in assets
      held for sale                                       ---            619
     Total operating expenses                         159,049        153,853
     Operating income                                   6,515         22,574
 
     OTHER INCOME (EXPENSE):
     Interest expense                                 (33,912)       (36,872)
     Subsidiary trust minority interest expense        (5,813)        (5,813)
     Interest income                                      675            580
     Loss from equity investments                         (68)          (535)
     Gain (loss) on derivative instrument              (9,348)           699
     Other income (expense)                               195           (163)
     Total other expense                              (48,271)       (42,104)
 
     Loss before income taxes                         (41,756)       (19,530)
     Benefit for income taxes                           5,143         16,907
     Net loss from continuing operations              (36,613)        (2,623)
     Net income from discontinued operations,
      net of taxes                                        ---            803
     Net loss                                        $(36,613)       $(1,820)
     Preferred stock dividends payable                  2,588          2,588
     Net loss available to common shareholders       $(39,201)       $(4,408)
 
     Basic loss per share from continuing operations  $(0.46)         $(0.05)
     Basic earnings per share from discontinued
      operations                                         $---          $0.01
     Basic loss per share                             $(0.46)        $(0.05)
     Diluted loss per share from
      continuing operations                           $(0.46)        $(0.05)
     Diluted earnings per share from
      discontinued operations                            $---          $0.01
     Diluted loss per share                           $(0.46)         $(0.05)
     Weighted average shares outstanding-
      no dilution                                      84,560         95,237
     Weighted average shares outstanding-
      assuming dilution                                84,590         95,237
 
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 SOURCE  Sinclair Broadcast Group, Inc.