BATRK Atlanta Braves Holdings Inc

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

 

$

209,017

 

 

245,543

 

 

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Shane Kleinstein (720) 875-5432