BATRK Atlanta Braves Holdings Inc

Atlanta Braves Holdings, Inc. (“ABH”) (Nasdaq: BATRA, BATRK) today reported second quarter 2024 results.

Headlines include:

• Total revenue grew 5% to $283 million in second quarter
  • Baseball revenue up 4% to $266 million
  • Mixed-use development revenue up 11% to $17 million
• Operating income up 28% to $25 million and Adjusted OIBDA(1) up 9% to $46 million in second quarter
• Announced new and expanded seating options at Truist Park to open ahead of 2025 season as part of commitment to enhance fan experience

Discussion of Results

 

 

Three months ended

 

 

 

 

Six months ended

 

 

 

 

June 30,

 

 

 

 

June 30,

 

 

 

 

2023

 

2024

 

% Change

 

 

2023

 

2024

 

% Change

 

 

amounts in thousands

 

 

 

 

amounts in thousands

 

 

Baseball revenue

 

$

254,935

 

 

$

266,001

 

 

4

%

 

 

$

272,496

 

 

$

287,971

 

 

6

%

Mixed-use development revenue

 

 

15,188

 

 

 

16,875

 

 

11

%

 

 

 

28,599

 

 

 

31,985

 

 

12

%

Total revenue

 

 

270,123

 

 

 

282,876

 

 

5

%

 

 

 

301,095

 

 

 

319,956

 

 

6

%

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baseball operating costs

 

 

(195,458

)

 

 

(205,070

)

 

(5

)%

 

 

 

(232,229

)

 

 

(250,277

)

 

(8

)%

Mixed-use development costs

 

 

(2,273

)

 

 

(2,410

)

 

(6

)%

 

 

 

(4,204

)

 

 

(4,663

)

 

(11

)%

Selling, general and administrative, excluding stock-based compensation

 

 

(30,522

)

 

 

(29,646

)

 

3

%

 

 

 

(54,179

)

 

 

(53,020

)

 

2

%

Adjusted OIBDA

 

$

41,870

 

 

$

45,750

 

 

9

%

 

 

$

10,483

 

 

$

11,996

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

19,467

 

 

$

24,936

 

 

28

%

 

 

$

(29,790

)

 

$

(27,419

)

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular season home games in period

 

 

43

 

 

 

40

 

 

 

 

 

43

 

 

 

40

 

 

 

Unless otherwise noted, the following discussion compares financial information for the three months ended June 30, 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

 

 

 

 

Six months ended

 

 

 

 

June 30,

 

 

 

 

June 30,

 

 

 

 

2023

 

2024

 

% Change

 

 

2023

 

2024

 

% Change

 

 

amounts in thousands

 

 

 

 

amounts in thousands

 

 

Baseball:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baseball event

 

$

162,368

 

$

171,350

 

6

%

 

 

$

163,486

 

$

172,518

 

6

%

Broadcasting

 

 

68,558

 

 

70,950

 

3

%

 

 

 

69,449

 

 

73,051

 

5

%

Retail and licensing

 

 

19,747

 

 

19,624

 

(1

)%

 

 

 

24,122

 

 

25,277

 

5

%

Other

 

 

4,262

 

 

4,077

 

(4

)

 

 

 

15,439

 

 

17,125

 

11

%

Baseball revenue

 

 

254,935

 

 

266,001

 

4

%

 

 

 

272,496

 

 

287,971

 

6

%

Mixed-use development

 

 

15,188

 

 

16,875

 

11

%

 

 

 

28,599

 

 

31,985

 

12

%

Total revenue

 

$

270,123

 

$

282,876

 

5

%

 

 

$

301,095

 

$

319,956

 

6

%

There were 40 home games played in the second quarter of 2024 compared to 43 home games in the prior year period.

Baseball revenue increased 4% in the second quarter due to growth in baseball event and broadcasting revenue. Baseball event revenue grew primarily due to new sponsorship agreements and contractual rate increases on season tickets and existing sponsorship contracts, partially offset by fewer regular season home games. Broadcasting revenue increased primarily due to more regular season games played (home and away) as well as contractual rate increases. Mixed-use development revenue grew 11% during the second quarter due to increases in rental income related to tenant recoveries and higher parking revenue.

Operating income and Adjusted OIBDA increased in the second quarter as revenue growth more than offset increased baseball operating costs. Baseball operating costs increased due to higher player salaries, increases under MLB’s revenue sharing plan and increased minor league team and player expenses, partially offset by lower variable concessions and retail expenses driven by fewer regular season home games. Selling, general and administrative expense was relatively flat in the second 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 August 8, 2024. The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13742818 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 and six months ended June 30, 2023 and June 30, 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30,

 

June 30,

(amounts in thousands)

 

2023

 

2024

 

2023

 

2024

Operating income (loss)

 

$

19,467

 

 

$

24,936

 

 

$

(29,790

)

 

$

(27,419

)

Stock-based compensation

 

 

3,153

 

 

 

3,705

 

 

 

6,344

 

 

 

7,424

 

Depreciation and amortization

 

 

19,250

 

 

 

17,109

 

 

 

33,929

 

 

 

31,991

 

Adjusted OIBDA

 

$

41,870

 

 

$

45,750

 

 

$

10,483

 

 

$

11,996

 

Baseball

 

$

37,183

 

 

$

37,391

 

 

$

1,348

 

 

$

(4,325

)

Mixed-use development

 

 

10,166

 

 

 

11,509

 

 

 

19,319

 

 

 

21,442

 

Corporate and other

 

 

(5,479

)

 

 

(3,150

)

 

 

(10,184

)

 

 

(5,121

)

SCHEDULE 2: Cash and Debt

The following presentation is provided to separately identify cash and debt information. ABH cash decreased $60 million during the second quarter due to cash used in operations primarily driven by seasonal working capital changes as well as increases in restricted cash held and capital expenditures, partially offset by net borrowings. ABH debt increased $20 million in the second quarter primarily due to borrowings on the mixed-use development credit facilities to support current capital projects.

 

 

 

 

 

 

 

(amounts in thousands)

 

March 31, 2024

 

June 30, 2024

ABH Cash (GAAP)(a)

 

$

181,461

 

 

$

121,239

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

Baseball

 

 

 

 

 

 

League wide credit facility

 

$

—

 

 

$

—

 

MLB facility fund - term

 

 

30,000

 

 

 

30,000

 

MLB facility fund - revolver

 

 

40,825

 

 

 

40,250

 

TeamCo revolver

 

 

—

 

 

 

—

 

Term debt

 

 

162,119

 

 

 

162,119

 

Mixed-use development

 

 

350,428

 

 

 

370,908

 

Total ABH Debt

 

$

583,372

 

 

$

603,277

 

Deferred financing costs

 

 

(3,459

)

 

 

(3,241

)

Total ABH Debt (GAAP)

 

$

579,913

 

 

$

600,036

 

a)

 

Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $28 million and $40 million as of March 31, 2024 and June 30, 2024, respectively.

ATLANTA BRAVES HOLDINGS CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION June 30, 2024 (unaudited)

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2024

 

2023

 

 

amounts in thousands,

 

 

except share amounts

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

121,239

 

 

125,148

 

Restricted cash

 

 

40,117

 

 

12,569

 

Accounts receivable and contract assets, net of allowance for credit losses of $523 and $332, respectively

 

 

58,730

 

 

62,922

 

Other current assets

 

 

28,210

 

 

17,380

 

Total current assets

 

 

248,296

 

 

218,019

 

 

 

 

 

 

 

Property and equipment, at cost

 

 

1,149,681

 

 

1,091,943

 

Accumulated depreciation

 

 

(348,617

)

 

(325,196

)

 

 

 

801,064

 

 

766,747

 

 

 

 

 

 

 

Investments in affiliates, accounted for using the equity method

 

 

107,321

 

 

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

 

 

117,669

 

 

120,884

 

Total assets

 

$

1,573,817

 

 

1,504,330

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

99,483

 

 

73,096

 

Deferred revenue and refundable tickets

 

 

146,281

 

 

111,985

 

Current portion of debt

 

 

137,673

 

 

42,153

 

Other current liabilities

 

 

4,733

 

 

6,439

 

Total current liabilities

 

 

388,170

 

 

233,673

 

 

 

 

 

 

 

Long-term debt

 

 

462,363

 

 

527,116

 

Finance lease liabilities

 

 

102,450

 

 

103,586

 

Deferred income tax liabilities

 

 

47,566

 

 

50,415

 

Pension liability

 

 

13,262

 

 

15,222

 

Other noncurrent liabilities

 

 

35,288

 

 

33,676

 

Total liabilities

 

 

1,049,099

 

 

963,688

 

Equity:

 

 

 

 

 

Preferred stock, $.01 par value. Authorized 50,000,000 shares; zero shares issued at June 30, 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 June 30, 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 June 30, 2024 and December 31, 2023, respectively

 

 

10

 

 

10

 

Series C common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 50,676,231 and 50,577,776 at June 30, 2024 and December 31, 2023, respectively

 

 

507

 

 

506

 

Additional paid-in capital

 

 

1,096,021

 

 

1,089,625

 

Accumulated other comprehensive earnings (loss), net of taxes

 

 

(7,429

)

 

(7,271

)

Retained earnings (deficit)

 

 

(576,539

)

 

(554,376

)

Total stockholders' equity

 

 

512,673

 

 

528,597

 

Noncontrolling interests in equity of subsidiaries

 

 

12,045

 

 

12,045

 

Total equity

 

 

524,718

 

 

540,642

 

Commitments and contingencies

 

 

 

 

 

Total liabilities and equity

 

$

1,573,817

 

 

1,504,330

 

ATLANTA BRAVES HOLDINGS CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION June 30, 2024 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30,

 

June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

amounts in thousands,

 

 

except per share amounts

Revenue:

 

 

 

 

 

 

 

 

 

 

Baseball revenue

 

$

266,001

 

 

254,935

 

 

$

287,971

 

 

272,496

 

Mixed-use development revenue

 

 

16,875

 

 

15,188

 

 

 

31,985

 

 

28,599

 

Total revenue

 

 

282,876

 

 

270,123

 

 

 

319,956

 

 

301,095

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

Baseball operating costs

 

 

205,070

 

 

195,458

 

 

 

250,277

 

 

232,229

 

Mixed-use development costs

 

 

2,410

 

 

2,273

 

 

 

4,663

 

 

4,204

 

Selling, general and administrative, including stock-based compensation

 

 

33,351

 

 

33,675

 

 

 

60,444

 

 

60,523

 

Depreciation and amortization

 

 

17,109

 

 

19,250

 

 

 

31,991

 

 

33,929

 

 

 

 

257,940

 

 

250,656

 

 

 

347,375

 

 

330,885

 

Operating income (loss)

 

 

24,936

 

 

19,467

 

 

 

(27,419

)

 

(29,790

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(9,713

)

 

(9,448

)

 

 

(19,156

)

 

(18,360

)

Share of earnings (losses) of affiliates, net

 

 

11,622

 

 

11,462

 

 

 

13,249

 

 

10,659

 

Realized and unrealized gains (losses) on intergroup interests, net

 

 

—

 

 

(49,409

)

 

 

—

 

 

(62,786

)

Realized and unrealized gains (losses) on financial instruments, net

 

 

931

 

 

3,840

 

 

 

3,905

 

 

3,079

 

Other, net

 

 

2,217

 

 

3,316

 

 

 

3,986

 

 

4,157

 

Earnings (loss) before income taxes

 

 

29,993

 

 

(20,772

)

 

 

(25,435

)

 

(93,041

)

Income tax benefit (expense)

 

 

(884

)

 

(8,141

)

 

 

3,272

 

 

6,152

 

Net earnings (loss)

 

$

29,109

 

 

(28,913

)

 

$

(22,163

)

 

(86,889

)

Basic net earnings (loss) attributable to Series A, Series B and Series C Atlanta Braves Holdings, Inc. shareholders per common share

 

$

0.47

 

 

(0.47

)

 

$

(0.36

)

 

(1.41

)

Diluted net earnings (loss) attributable to Series A, Series B and Series C Atlanta Braves Holdings, Inc. shareholders per common share

 

$

0.46

 

 

(0.47

)

 

$

(0.36

)

 

(1.41

)

ATLANTA BRAVES HOLDINGS CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION June 30, 2024 (unaudited)

 

 

Six months ended

 

 

June 30,

 

 

2024

 

2023

 

 

amounts in thousands

Cash flows from operating activities:

 

 

 

 

 

Net earnings (loss)

 

$

(22,163

)

 

(86,889

)

Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

Depreciation and amortization

 

 

31,991

 

 

33,929

 

Stock-based compensation

 

 

7,424

 

 

6,344

 

Share of (earnings) losses of affiliates, net

 

 

(13,249

)

 

(10,659

)

Realized and unrealized (gains) losses on intergroup interests, net

 

 

—

 

 

62,786

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

(3,905

)

 

(3,079

)

Deferred income tax expense (benefit)

 

 

(2,801

)

 

(7,014

)

Cash receipts from returns on equity method investments

 

 

5,838

 

 

6,225

 

Net cash received (paid) for interest rate swaps

 

 

3,036

 

 

2,200

 

Other charges (credits), net

 

 

(1,480

)

 

(3,754

)

Net change in operating assets and liabilities:

 

 

 

 

 

Current and other assets

 

 

(8,574

)

 

(14,338

)

Payables and other liabilities

 

 

60,635

 

 

50,141

 

Net cash provided by (used in) operating activities

 

 

56,752

 

 

35,892

 

Cash flows from investing activities:

 

 

 

 

 

Capital expended for property and equipment

 

 

(57,432

)

 

(29,700

)

Investments in equity method affiliates and equity securities

 

 

(714

)

 

—

 

Other investing activities, net

 

 

41

 

 

110

 

Net cash provided by (used in) investing activities

 

 

(58,105

)

 

(29,590

)

Cash flows from financing activities:

 

 

 

 

 

Borrowings of debt

 

 

33,405

 

 

15,815

 

Repayments of debt

 

 

(4,787

)

 

(18,893

)

Contribution from noncontrolling interest

 

 

—

 

 

11,289

 

Other financing activities, net

 

 

(3,626

)

 

(4,756

)

Net cash provided by (used in) financing activities

 

 

24,992

 

 

3,455

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

23,639

 

 

9,757

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

137,717

 

 

172,813

 

Cash, cash equivalents and restricted cash at end of period

 

$

161,356

 

 

182,570

 

 

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Shane Kleinstein (720) 875-5432