ENGLEWOOD, Colo., May 08, 2024--(BUSINESS WIRE)--Atlanta Braves Holdings, Inc. ("ABH") (Nasdaq: BATRA, BATRK) today reported first quarter 2024 results.
Headlines include:
Total revenue grew 20% to $37 million in first quarter
Baseball revenue up 25% to $22 million
Mixed-use development revenue up 13% to $15 million
Mixed-use development generated $10 million of Adjusted OIBDA(1) in first quarter
Completed several capital improvement projects in advance of the 2024 season, including new spaces such as Lexus Premium Boxes, Blue Moon Beer Garden and Jim Beam Bourbon Decks and expanded retail store
Discussion of Results
Three months ended
March 31,
2023
2024
% Change
amounts in thousands
Baseball revenue
$
17,561
$
21,970
25
%
Mixed-use development revenue
13,411
15,110
13
%
Total revenue
30,972
37,080
20
%
Operating costs and expenses:
Baseball operating costs
(36,771
)
(45,207
)
(23
)%
Mixed-use development costs
(1,931
)
(2,253
)
(17
)%
Selling, general and administrative, excluding stock-based compensation
(23,657
)
(23,374
)
1
%
Adjusted OIBDA
$
(31,387
)
$
(33,754
)
(8
)%
Operating income (loss)
$
(49,257
)
$
(52,355
)
(6
)%
Regular season home games in period
—
—
Unless otherwise noted, the following discussion compares financial information for the three months ended March 31, 2024 to the same period in 2023.
Baseball revenue is derived from two primary sources on an annual basis: (i) baseball event revenue (ticket sales, concessions, advertising sponsorships, suites and premium seat fees) and (ii) broadcasting revenue (national and local broadcast rights). Mixed-use development revenue is derived from the Battery Atlanta mixed-use facilities and primarily includes rental income.
The following table disaggregates revenue by segment and by source:
Three months ended
March 31,
2023
2024
% Change
amounts in thousands
Baseball:
Baseball event
$
1,118
$
1,168
4
%
Broadcasting
891
2,101
136
%
Retail and licensing
4,375
5,653
29
%
Other
11,177
13,048
17
%
Baseball revenue
17,561
21,970
25
%
Mixed-use development
13,411
15,110
13
%
Total revenue
$
30,972
$
37,080
20
%
No regular season home games were played in either the first quarter of 2024 or the prior year period.
Baseball revenue increased 25% in the first quarter primarily driven by growth in broadcasting revenue due to more regular season games played based on the timing of the regular season start this year and higher other revenue due to increased ticket demand and attendance at spring training home games. Mixed-use development revenue grew 13% during the first quarter due to increases in rental income related to tenant recoveries and various new lease agreements, as well as higher parking revenue.
Operating loss and Adjusted OIBDA loss increased in the first quarter. Baseball operating costs increased primarily due to higher player salaries and minor league team and player expenses, as well as increased spring training related expenses. Selling, general and administrative expense was relatively flat in the first quarter.
FOOTNOTES
1)
For a definition of Adjusted OIBDA (as defined by ABH) and the applicable reconciliation, see the accompanying schedule.
Important Notice: Atlanta Braves Holdings, Inc. (Nasdaq: BATRA, BATRK) will be available to answer questions on Liberty Media’s earnings conference call which will begin at 10:00 a.m. (E.T.) on May 8, 2024. The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13742817 at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://www.bravesholdings.com/investors/news-events/ir-calendar. Links to this press release will also be available on the ABH website.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, product and marketing strategies, future financial performance and prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, ABH’s historical financial information not being representative of its future financial position, results of operations, or cash flows, ABH’s ability to recognize anticipated benefits from the Split-Off, possible changes in the regulatory and competitive environment in which ABH operates (including an expansion of MLB), the unfavorable outcome of pending or future litigation, operational risks of ABH and its business affiliates, including operations outside of the U.S., ABH’s indebtedness and its ability to obtain additional financing on acceptable terms and cash in amounts sufficient to service debt and other financial obligations, tax matters, ABH’s ability to use net operating loss and disallowed business interest carryforwards, compliance with government regulations and potential adverse outcomes of regulatory proceedings, changes in the nature of key strategic relationships with broadcasters, partners, vendors and joint venturers, the impact of organized labor, the performance and management of the mixed-use development, disruptions in ABH’s information systems and information system security, ABH’s use and protection of personal data and the impact of inflation and weak economic conditions on consumer demand. These forward-looking statements speak only as of the date of this press release, and ABH expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in ABH’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of ABH, including the most recently filed Forms 10-K and 10-Q, for additional information about ABH and about the risks and uncertainties related to ABH’s business which may affect the statements made in this press release.
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DISCLOSURES
SCHEDULE 1: Reconciliation of Adjusted OIBDA to Operating Income (Loss)
To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for ABH together with reconciliations to operating income, as determined under GAAP. ABH defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and impairment charges.
ABH believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, ABH views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that ABH management considers in assessing the results of operations and performance of its assets.
The following table provides a reconciliation of Adjusted OIBDA for ABH to operating income (loss) calculated in accordance with GAAP for the three months ended March 31, 2023 and March 31, 2024.
Three months ended
March 31,
(amounts in thousands)
2023
2024
Operating income (loss)
$
(49,257
)
$
(52,355
)
Stock-based compensation
3,191
3,719
Depreciation and amortization
14,679
14,882
Adjusted OIBDA
$
(31,387
)
$
(33,754
)
Baseball
$
(35,835
)
$
(41,716
)
Mixed-use development
9,153
9,933
Corporate and other
(4,705
)
(1,971
)
SCHEDULE 2: Cash and Debt
The following presentation is provided to separately identify cash and debt information. ABH cash increased $56 million during the first quarter as cash from operations and net borrowings more than offset capital expenditures. ABH debt increased $10 million in the first quarter primarily due to borrowings on the mixed-use development credit facilities to support current capital projects.
(amounts in thousands)
December 31, 2023
March 31, 2024
ABH Cash (GAAP)(a)
$
125,148
$
181,461
Debt:
Baseball
League wide credit facility
$
—
$
—
MLB facility fund - term
30,000
30,000
MLB facility fund - revolver
41,400
40,825
TeamCo revolver
—
—
Term debt
165,370
162,119
Mixed-use development
336,177
350,428
Total ABH Debt
$
572,947
$
583,372
Deferred financing costs
(3,678
)
(3,459
)
Total ABH Debt (GAAP)
$
569,269
$
579,913
_______________
a)
Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $13 million and $28 million as of December 31, 2023 and March 31, 2024, respectively.
ATLANTA BRAVES HOLDINGS
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
March 31, 2024 (unaudited)
March 31,
December 31,
2024
2023
amounts in thousands,
except share amounts
Assets
Current assets:
Cash and cash equivalents
$
181,461
125,148
Restricted cash
27,556
12,569
Accounts receivable and contract assets, net of allowance for credit losses of $424 and $332, respectively
40,242
62,922
Other current assets
38,182
17,380
Total current assets
287,441
218,019
Property and equipment, at cost
1,126,995
1,091,943
Accumulated depreciation
(338,745
)
(325,196
)
788,250
766,747
Investments in affiliates, accounted for using the equity method
100,140
99,213
Intangible assets not subject to amortization:
Goodwill
175,764
175,764
Franchise rights
123,703
123,703
299,467
299,467
Other assets, net
126,891
120,884
Total assets
$
1,602,189
1,504,330
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities
$
99,118
73,096
Deferred revenue and refundable tickets
212,367
111,985
Current portion of debt
42,547
42,153
Other current liabilities
5,839
6,439
Total current liabilities
359,871
233,673
Long-term debt
537,366
527,116
Finance lease liabilities
105,844
103,586
Deferred income tax liabilities
57,162
50,415
Pension liability
13,042
15,222
Other noncurrent liabilities
37,657
33,676
Total liabilities
1,110,942
963,688
Equity:
Preferred stock, $.01 par value. Authorized 50,000,000 shares; zero shares issued at March 31, 2024 and December 31, 2023
—
—
Series A common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 10,318,162 and 10,318,197 at March 31, 2024 and December 31, 2023, respectively
103
103
Series B common stock, $.01 par value. Authorized 7,500,000 shares; issued and outstanding 977,776 and 977,776 at March 31, 2024 and December 31, 2023, respectively
10
10
Series C common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 50,611,586 and 50,577,776 at March 31, 2024 and December 31, 2023, respectively
506
506
Additional paid-in capital
1,091,572
1,089,625
Accumulated other comprehensive earnings (loss), net of taxes
(7,341
)
(7,271
)
Retained earnings (deficit)
(605,648
)
(554,376
)
Total stockholders' equity
479,202
528,597
Noncontrolling interests in equity of subsidiaries
12,045
12,045
Total equity
491,247
540,642
Commitments and contingencies
Total liabilities and equity
$
1,602,189
1,504,330
ATLANTA BRAVES HOLDINGS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION
March 31, 2024 (unaudited)
Three months ended
March 31,
2024
2023
amounts in thousands,
except per share amounts
Revenue:
Baseball revenue
$
21,970
17,561
Mixed-use development revenue
15,110
13,411
Total revenue
37,080
30,972
Operating costs and expenses:
Baseball operating costs
45,207
36,771
Mixed-use development costs
2,253
1,931
Selling, general and administrative, including stock-based compensation
27,093
26,848
Depreciation and amortization
14,882
14,679
89,435
80,229
Operating income (loss)
(52,355
)
(49,257
)
Other income (expense):
Interest expense
(9,443
)
(8,912
)
Share of earnings (losses) of affiliates, net
1,627
(803
)
Realized and unrealized gains (losses) on intergroup interests, net
—
(13,377
)
Realized and unrealized gains (losses) on financial instruments, net
2,974
(761
)
Other, net
1,769
841
Earnings (loss) before income taxes
(55,428
)
(72,269
)
Income tax benefit (expense)
4,156
14,293
Net earnings (loss)
$
(51,272
)
(57,976
)
Basic net earnings (loss) attributable to Series A, Series B and Series C Atlanta Braves Holdings, Inc. shareholders per common share
$
(0.83
)
(0.94
)
Diluted net earnings (loss) attributable to Series A, Series B and Series C Atlanta Braves Holdings, Inc. shareholders per common share
$
(0.83
)
(0.94
)
ATLANTA BRAVES HOLDINGS
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
March 31, 2024 (unaudited)
Three months ended
March 31,
2024
2023
amounts in thousands
Cash flows from operating activities:
Net earnings (loss)
$
(51,272
)
(57,976
)
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
14,882
14,679
Stock-based compensation
3,719
3,191
Share of (earnings) losses of affiliates, net
(1,627
)
803
Realized and unrealized (gains) losses on intergroup interests, net
—
13,377
Realized and unrealized (gains) losses on financial instruments, net
(2,974
)
761
Deferred income tax expense (benefit)
6,772
(7,715
)
Cash receipts from returns on equity method investments
700
200
Net cash received (paid) for interest rate swaps
1,511
1,222
Other charges (credits), net
(542
)
318
Net change in operating assets and liabilities:
Current and other assets
11,191
20,350
Payables and other liabilities
108,704
95,355
Net cash provided by (used in) operating activities
91,064
84,565
Cash flows from investing activities:
Capital expended for property and equipment
(27,642
)
(13,647
)
Other investing activities, net
47
110
Net cash provided by (used in) investing activities
(27,595
)
(13,537
)
Cash flows from financing activities:
Borrowings of debt
13,789
—
Repayments of debt
(4,018
)
(3,893
)
Contribution from noncontrolling interest
—
6,645
Other financing activities, net
(1,940
)
(1,050
)
Net cash provided by (used in) financing activities
7,831
1,702
Net increase (decrease) in cash, cash equivalents and restricted cash
71,300
72,730
Cash, cash equivalents and restricted cash at beginning of period
137,717
172,813
Cash, cash equivalents and restricted cash at end of period
