Atlanta Braves Holdings Reports Second Quarter 2024 Financial Results

ENGLEWOOD, Colo.--(BUSINESS WIRE)--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 [phone] or [phone], 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

Contacts

Shane Kleinstein [phone]