Atlanta Braves Holdings Reports Third Quarter 2024 Financial Results
Headlines include:
-
Total revenue grew to
$291 million in the third quarter, up from$272 million in the prior year period.-
Baseball revenue increased 7% to
$273 million . -
Mixed-use development revenue grew 12% to
$17 million .
-
Baseball revenue increased 7% to
- Third straight year selling over three million tickets.
-
Braves earned the number one spot for overall guest experience, concessions and non-game entertainment in MLB Voice of Consumer survey. - The team made their 7th consecutive postseason appearance.
Discussion of Results
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Three months ended |
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Nine months ended |
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2023 |
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2024 |
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% Change |
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2023 |
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2024 |
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% Change |
||||||
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amounts in thousands |
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|
amounts in thousands |
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||||||||||||||
Baseball revenue |
|
$ |
256,266 |
|
|
$ |
273,262 |
|
|
7 |
% |
|
|
$ |
528,762 |
|
|
$ |
561,233 |
|
|
6 |
% |
Mixed-use development revenue |
|
|
15,558 |
|
|
|
17,412 |
|
|
12 |
% |
|
|
|
44,157 |
|
|
|
49,397 |
|
|
12 |
% |
Total revenue |
|
|
271,824 |
|
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|
290,674 |
|
|
7 |
% |
|
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|
572,919 |
|
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|
610,630 |
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|
7 |
% |
Operating costs and expenses: |
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|
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||||||
Baseball operating costs |
|
|
(198,195 |
) |
|
|
(225,973 |
) |
|
(14 |
)% |
|
|
|
(430,424 |
) |
|
|
(476,250 |
) |
|
(11 |
)% |
Mixed-use development costs |
|
|
(2,247 |
) |
|
|
(2,499 |
) |
|
(11 |
)% |
|
|
|
(6,451 |
) |
|
|
(7,162 |
) |
|
(11 |
)% |
Selling, general and administrative, excluding stock-based compensation |
|
|
(31,071 |
) |
|
|
(30,757 |
) |
|
1 |
% |
|
|
|
(85,250 |
) |
|
|
(83,777 |
) |
|
2 |
% |
Adjusted OIBDA(1) |
|
$ |
40,311 |
|
|
$ |
31,445 |
|
|
(22 |
)% |
|
|
$ |
50,794 |
|
|
$ |
43,441 |
|
|
(14 |
)% |
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Operating income (loss) |
|
$ |
15,716 |
|
|
$ |
6,402 |
|
|
(59 |
)% |
|
|
$ |
(14,074 |
) |
|
$ |
(21,017 |
) |
|
(49 |
)% |
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Regular season home games in period |
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37 |
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41 |
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|
80 |
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|
81 |
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|
Unless otherwise noted, the following discussion compares financial information for the three months ended
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:
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Three months ended |
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Nine months ended |
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2023 |
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2024 |
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% Change |
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2023 |
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2024 |
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% Change |
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amounts in thousands |
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amounts in thousands |
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Baseball: |
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Baseball event |
|
$ |
160,794 |
|
$ |
172,800 |
|
7 |
% |
|
|
$ |
324,280 |
|
$ |
345,318 |
|
6 |
% |
Broadcasting |
|
|
69,337 |
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|
70,992 |
|
2 |
% |
|
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|
138,786 |
|
|
144,043 |
|
4 |
% |
Retail and licensing |
|
|
20,904 |
|
|
16,512 |
|
(21 |
)% |
|
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|
45,026 |
|
|
41,789 |
|
(7 |
)% |
Other |
|
|
5,231 |
|
|
12,958 |
|
148 |
% |
|
|
|
20,670 |
|
|
30,083 |
|
46 |
% |
Baseball revenue |
|
|
256,266 |
|
|
273,262 |
|
7 |
% |
|
|
|
528,762 |
|
|
561,233 |
|
6 |
% |
Mixed-use development |
|
|
15,558 |
|
|
17,412 |
|
12 |
% |
|
|
|
44,157 |
|
|
49,397 |
|
12 |
% |
Total revenue |
|
$ |
271,824 |
|
$ |
290,674 |
|
7 |
% |
|
|
$ |
572,919 |
|
$ |
610,630 |
|
7 |
% |
There were 41 home games played in the third quarter of 2024 compared to 37 home games in the prior year period.
Baseball revenue increased 7% in the third quarter. Baseball event revenue increased primarily due to new sponsorship agreements and contractual rate increases on season tickets and existing sponsorship contracts. This was partially offset by reduced attendance at regular season home games.
Broadcasting revenue was higher primarily due to an increase in the number of regular season games, as well as contractual rate increases. Retail and licensing revenue decreased due to a reduction in local revenue caused by reduced attendance at regular season home games. Other revenue increased due to additional concerts at the ballpark compared to the prior year period. Mixed-use development revenue increased 12% primarily due to higher parking revenue and increased rental income related to tenant recoveries.
Operating income and Adjusted OIBDA decreased in the third quarter due to increased baseball operating costs. Baseball operating costs increased due to higher major league player salaries as well as increases in MLB’s revenue sharing plan, minor league team and player expenses and concert related expenses. This was partially offset by decreases in variable concession and retail operating expenses due to reduced attendance at regular season home games. Selling, general and administrative expenses were relatively flat in the third quarter.
FOOTNOTES
1) |
For a definition of Adjusted OIBDA (as defined by ABH) and the applicable reconciliation to the most comparable GAAP measure, see “Non-GAAP Financial Measures and Supplemental Disclosures,” below. |
Important Notice:
During the conference call, ABH may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business, product and marketing strategies, future financial performance and prospects, trends and any other matters that are not historical facts. The words "believe," "estimate," "expect," "anticipate," "intend," "plan," "strategy," "continue," "seek," "may," "could" and similar expressions or statements regarding future periods are intended to identify forward-looking statements, although not all forward-looking statements may contain such words. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but such statements necessarily involve risks and uncertainties and there can be no assurance that the expectation or belief will result or be achieved or accomplished. Given these uncertainties, we caution you not to place undue reliance on these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, include, 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 from
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, if applicable. However, ABH’s definition of Adjusted OIBDA may differ from similarly titled measures disclosed by other companies.
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 nine months ended
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Three months ended |
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Nine months ended |
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(amounts in thousands) |
|
2023 |
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|
2024 |
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|
2023 |
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|
2024 |
|
||||
Operating income (loss) |
|
$ |
15,716 |
|
|
$ |
6,402 |
|
|
$ |
(14,074 |
) |
|
$ |
(21,017 |
) |
Stock-based compensation |
|
|
3,309 |
|
|
|
6,365 |
|
|
|
9,653 |
|
|
|
13,789 |
|
Depreciation and amortization |
|
|
21,286 |
|
|
|
18,678 |
|
|
|
55,215 |
|
|
|
50,669 |
|
Adjusted OIBDA |
|
$ |
40,311 |
|
|
$ |
31,445 |
|
|
$ |
50,794 |
|
|
$ |
43,441 |
|
Baseball |
|
$ |
36,884 |
|
|
$ |
24,397 |
|
|
$ |
38,232 |
|
|
$ |
20,072 |
|
Mixed-use development |
|
|
10,661 |
|
|
|
12,173 |
|
|
|
29,980 |
|
|
|
33,615 |
|
Corporate and other |
|
|
(7,234 |
) |
|
|
(5,125 |
) |
|
|
(17,418 |
) |
|
|
(10,246 |
) |
SCHEDULE 2: Cash and Debt
The following presentation is provided to separately identify cash and debt information. ABH cash decreased
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(amounts in thousands) |
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ABH Cash (GAAP)(a) |
|
$ |
121,239 |
|
|
$ |
100,852 |
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|
||||
Debt: |
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||
Baseball |
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|
||
League wide credit facility |
|
$ |
— |
|
|
$ |
— |
|
MLB facility fund - term |
|
|
30,000 |
|
|
|
30,000 |
|
MLB facility fund - revolver |
|
|
40,250 |
|
|
|
39,675 |
|
TeamCo revolver |
|
|
— |
|
|
|
30,000 |
|
Term debt |
|
|
162,119 |
|
|
|
158,806 |
|
Mixed-use development |
|
|
370,908 |
|
|
|
384,641 |
|
Total ABH Debt |
|
$ |
603,277 |
|
|
$ |
643,122 |
|
Deferred financing costs |
|
|
(3,241 |
) |
|
|
(3,023 |
) |
Total ABH Debt (GAAP) |
|
$ |
600,036 |
|
|
$ |
640,099 |
|
___________________ |
||
a) |
Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of |
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
|
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|
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2024 |
|
2023 |
|||
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|
amounts in thousands, |
|||||
|
|
except share amounts |
|||||
Assets |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
100,852 |
|
|
125,148 |
|
Restricted cash |
|
|
15,168 |
|
|
12,569 |
|
Accounts receivable and contract assets, net of allowance for credit losses of |
|
|
88,053 |
|
|
62,922 |
|
Other current assets |
|
|
20,065 |
|
|
17,380 |
|
Total current assets |
|
|
224,138 |
|
|
218,019 |
|
|
|
|
|
|
|
||
Property and equipment, at cost |
|
|
1,159,685 |
|
|
1,091,943 |
|
Accumulated depreciation |
|
|
(358,549 |
) |
|
(325,196 |
) |
|
|
|
801,136 |
|
|
766,747 |
|
|
|
|
|
|
|
||
Investments in affiliates, accounted for using the equity method |
|
|
113,929 |
|
|
99,213 |
|
Intangible assets not subject to amortization: |
|
|
|
|
|
||
|
|
|
175,764 |
|
|
175,764 |
|
Franchise rights |
|
|
123,703 |
|
|
123,703 |
|
|
|
|
299,467 |
|
|
299,467 |
|
|
|
|
|
|
|
||
Other assets, net |
|
|
118,577 |
|
|
120,884 |
|
Total assets |
|
$ |
1,557,247 |
|
|
1,504,330 |
|
|
|
|
|
|
|
||
Liabilities and Equity |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
92,525 |
|
|
73,096 |
|
Deferred revenue and refundable tickets |
|
|
82,414 |
|
|
111,985 |
|
Current portion of debt |
|
|
137,626 |
|
|
42,153 |
|
Other current liabilities |
|
|
9,093 |
|
|
6,439 |
|
Total current liabilities |
|
|
321,658 |
|
|
233,673 |
|
|
|
|
|
|
|
||
Long-term debt |
|
|
502,473 |
|
|
527,116 |
|
Finance lease liabilities |
|
|
103,520 |
|
|
103,586 |
|
Deferred income tax liabilities |
|
|
40,489 |
|
|
50,415 |
|
Pension liability |
|
|
11,007 |
|
|
15,222 |
|
Other noncurrent liabilities |
|
|
35,633 |
|
|
33,676 |
|
Total liabilities |
|
|
1,014,780 |
|
|
963,688 |
|
Equity: |
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
— |
|
Series A common stock, |
|
|
103 |
|
|
103 |
|
Series B common stock, |
|
|
10 |
|
|
10 |
|
Series C common stock, |
|
|
508 |
|
|
506 |
|
Additional paid-in capital |
|
|
1,103,820 |
|
|
1,089,625 |
|
Accumulated other comprehensive earnings (loss), net of taxes |
|
|
(7,500 |
) |
|
(7,271 |
) |
Retained earnings (deficit) |
|
|
(566,519 |
) |
|
(554,376 |
) |
Total stockholders' equity |
|
|
530,422 |
|
|
528,597 |
|
Noncontrolling interests in equity of subsidiaries |
|
|
12,045 |
|
|
12,045 |
|
Total equity |
|
|
542,467 |
|
|
540,642 |
|
Commitments and contingencies |
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
1,557,247 |
|
|
1,504,330 |
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION
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Three months ended |
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Nine months ended |
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|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
||
|
|
amounts in thousands, |
|
||||||||||||
|
|
except per share amounts |
|
||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||
Baseball revenue |
|
$ |
273,262 |
|
|
256,266 |
|
|
$ |
561,233 |
|
|
528,762 |
|
|
Mixed-use development revenue |
|
|
17,412 |
|
|
15,558 |
|
|
|
49,397 |
|
|
44,157 |
|
|
Total revenue |
|
|
290,674 |
|
|
271,824 |
|
|
|
610,630 |
|
|
572,919 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Baseball operating costs |
|
|
225,973 |
|
|
198,195 |
|
|
|
476,250 |
|
|
430,424 |
|
|
Mixed-use development costs |
|
|
2,499 |
|
|
2,247 |
|
|
|
7,162 |
|
|
6,451 |
|
|
Selling, general and administrative, including stock-based compensation |
|
|
37,122 |
|
|
34,380 |
|
|
|
97,566 |
|
|
94,903 |
|
|
Depreciation and amortization |
|
|
18,678 |
|
|
21,286 |
|
|
|
50,669 |
|
|
55,215 |
|
|
|
|
|
284,272 |
|
|
256,108 |
|
|
|
631,647 |
|
|
586,993 |
|
|
Operating income (loss) |
|
|
6,402 |
|
|
15,716 |
|
|
|
(21,017 |
) |
|
(14,074 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(9,561 |
) |
|
(9,657 |
) |
|
|
(28,717 |
) |
|
(28,017 |
) |
|
Share of earnings (losses) of affiliates, net |
|
|
13,702 |
|
|
12,725 |
|
|
|
26,951 |
|
|
23,384 |
|
|
Realized and unrealized gains (losses) on intergroup interests, net |
|
|
— |
|
|
(20,392 |
) |
|
|
— |
|
|
(83,178 |
) |
|
Realized and unrealized gains (losses) on financial instruments, net |
|
|
(2,476 |
) |
|
2,593 |
|
|
|
1,429 |
|
|
5,672 |
|
|
Other, net |
|
|
1,838 |
|
|
1,224 |
|
|
|
5,824 |
|
|
5,381 |
|
|
Earnings (loss) before income taxes |
|
|
9,905 |
|
|
2,209 |
|
|
|
(15,530 |
) |
|
(90,832 |
) |
|
Income tax benefit (expense) |
|
|
115 |
|
|
(8,256 |
) |
|
|
3,387 |
|
|
(2,104 |
) |
|
Net earnings (loss) |
|
$ |
10,020 |
|
|
(6,047 |
) |
|
$ |
(12,143 |
) |
|
(92,936 |
) |
|
Basic net earnings (loss) attributable to Series A, |
|
$ |
0.16 |
|
|
(0.10 |
) |
|
$ |
(0.20 |
) |
|
(1.51 |
) |
|
Diluted net earnings (loss) attributable to Series A, |
|
$ |
0.16 |
|
|
(0.10 |
) |
|
$ |
(0.20 |
) |
|
(1.51 |
) |
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
|
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|
|
|
|
|
|
|
||
|
|
Nine months ended |
|
|||||
|
|
|
|
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|
|
2024 |
|
2023 |
|
|||
|
|
amounts in thousands |
|
|||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net earnings (loss) |
|
$ |
(12,143 |
) |
|
(92,936 |
) |
|
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
50,669 |
|
|
55,215 |
|
|
Stock-based compensation |
|
|
13,789 |
|
|
9,653 |
|
|
Share of (earnings) losses of affiliates, net |
|
|
(26,951 |
) |
|
(23,384 |
) |
|
Realized and unrealized (gains) losses on intergroup interests, net |
|
|
— |
|
|
83,178 |
|
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
(1,429 |
) |
|
(5,672 |
) |
|
Deferred income tax expense (benefit) |
|
|
(10,902 |
) |
|
(6,086 |
) |
|
Cash receipts from returns on equity method investments |
|
|
12,552 |
|
|
12,350 |
|
|
Net cash received (paid) for interest rate swaps |
|
|
4,564 |
|
|
3,604 |
|
|
Other charges (credits), net |
|
|
398 |
|
|
(1,266 |
) |
|
Net change in operating assets and liabilities: |
|
|
|
|
|
|
||
Current and other assets |
|
|
(42,539 |
) |
|
(67,475 |
) |
|
Payables and other liabilities |
|
|
(280 |
) |
|
11,513 |
|
|
Net cash provided by (used in) operating activities |
|
|
(12,272 |
) |
|
(21,306 |
) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expended for property and equipment |
|
|
(73,922 |
) |
|
(45,313 |
) |
|
Other investing activities, net |
|
|
(293 |
) |
|
(15 |
) |
|
Net cash provided by (used in) investing activities |
|
|
(74,215 |
) |
|
(45,328 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Borrowings of debt |
|
|
106,343 |
|
|
52,248 |
|
|
Repayments of debt |
|
|
(39,284 |
) |
|
(38,997 |
) |
|
Contribution from noncontrolling interest |
|
|
— |
|
|
12,045 |
|
|
Other financing activities, net |
|
|
(2,269 |
) |
|
(4,946 |
) |
|
Net cash provided by (used in) financing activities |
|
|
64,790 |
|
|
20,350 |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(21,697 |
) |
|
(46,284 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
137,717 |
|
|
172,813 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
116,020 |
|
|
126,529 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106219179/en/
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Source: