Atlanta Braves Holdings, Inc. (“ABH”) (Nasdaq: BATRA, BATRK)
today reported fourth quarter and year end 2023 results.
Headlines include(1):
- Total revenue grew 9% to $641 million in 2023
- Baseball revenue up 9% to $582 million
- Mixed-use development revenue up 10% to $59 million
- Mixed-use development generated $39 million of Adjusted
OIBDA(2) in 2023
- Extended Alex Anthopoulos as President of Baseball Operations
and General Manager through 2031 season
“The Braves are a unique and valuable sports property with
leading on-field and off-field business performance. Congrats to
the team on capping off the 2023 season with their sixth
consecutive NL East title and unprecedented player accolades,” said
Greg Maffei, Chairman and CEO of ABH. “Strong on-field performance
yielded robust revenue growth for the full year, and early
indicators for the 2024 season show increased demand.”
“We are thrilled with both the team and financial performance at
the Braves in 2023,” said Terry McGuirk, Chairman and CEO of Braves
Holdings, LLC. “Our management continues to focus on optimizing the
ballpark, with upgrades planned for 2024 to drive more commercial
opportunities and an improved fan experience. Season tickets,
including premium seats, are already sold out in anticipation of
another exciting season. The Battery benefitted from increased foot
traffic and strong sales across the development and we expect
another strong year ahead.”
Corporate Updates
On July 18, 2023, Liberty Media Corporation (“Liberty Media”)
completed the split-off of the Braves and its associated mixed-use
development (the “Split-Off”) into the separate public company ABH.
The businesses and assets at ABH consist of Braves Holdings, LLC,
the owner and operator of the Atlanta Braves Major League Baseball
Club, and certain assets and liabilities associated with the
Braves’ ballpark and mixed-use development, called The Battery
Atlanta, which were previously attributed to the Braves Group
tracking stock of Liberty Media. For purposes of this presentation,
ABH standalone results, assets and liabilities represent the
combination of the historical financial information of the Braves
Group until the date of the Split-Off. Although ABH was reported as
a combined company until the date of the Split-Off, it is now a
consolidated company and all periods reported in this presentation
are referred to as consolidated.
Discussion of Results
Three months ended
Twelve months ended
December 31,
December 31,
2022
2023
% Change
2022
2023
% Change
amounts in thousands
amounts in thousands
Baseball revenue
$
56,947
$
52,909
(7
)%
$
534,984
$
581,671
9
%
Mixed-use development revenue
14,312
14,839
4
%
53,577
58,996
10
%
Total revenue
71,259
67,748
(5
)%
588,561
640,667
9
%
Operating costs and expenses:
Baseball operating costs
(37,805
)
(51,967
)
(37
)%
(427,832
)
(482,391
)
(13
)%
Mixed-use development costs
(2,275
)
(2,383
)
(5
)%
(8,674
)
(8,834
)
(2
)%
Selling, general and administrative,
excluding stock-based compensation
(19,760
)
(26,431
)
(34
)%
(93,279
)
(111,117
)
(19
)%
Adjusted OIBDA
$
11,419
$
(13,033
)
NM
$
58,776
$
38,325
(35
)%
Operating income (loss)
$
(7,210
)
$
(32,366
)
(349
)%
$
(30,581
)
$
(46,440
)
(52
)%
Regular season home games in period
2
1
81
81
Postseason home games in period
2
2
2
2
Baseball revenue per home game
$
14,237
$
17,636
24
%
$
6,446
$
7,008
9
%
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
Twelve months ended
December 31,
December 31,
2022
2023
% Change
2022
2023
% Change
amounts in thousands
amounts in thousands
Baseball:
Baseball event
$
17,220
$
15,205
(12
)%
$
298,364
$
339,485
14
%
Broadcasting
23,539
22,158
(6
)%
154,185
160,944
4
%
Retail and licensing
8,592
6,507
(24
)%
47,792
51,533
8
%
Other
7,596
9,039
19
%
34,643
29,709
(14
)%
Baseball revenue
56,947
52,909
(7
)%
534,984
581,671
9
%
Mixed-use development
14,312
14,839
4
%
53,577
58,996
10
%
Total revenue
$
71,259
$
67,748
(5
)%
$
588,561
$
640,667
9
%
There were 83 and 3 home games (including postseason) played in
the full year and fourth quarter of 2023, respectively, compared to
83 and 4 home games played in the comparable prior year
periods.
Baseball revenue increased 9% for the full year. Baseball event
and retail and licensing revenue grew primarily due to increased
ticket demand and attendance at regular season home games. Baseball
event revenue also increased due to new advertising sponsorships
and contractual rate increases from existing sponsors. Broadcasting
revenue increased due to contractual rate increases. Retail and
licensing revenue also benefited from demand for City Connect
apparel, partially offset by a reduction in demand for World Series
Champions apparel compared to the prior season. Other revenue
declined due to fewer concerts at the ballpark compared to the
prior year period and a reduction in World Series trophy tour
revenue, partially offset by higher spring training revenue with
six additional spring training games compared to the prior year
period and revenue from special events held at the ballpark.
Baseball revenue decreased 7% in the fourth quarter primarily
driven by fewer home games played, partially offset by stronger
postseason revenue and more concerts held at the ballpark compared
to the prior year period.
Mixed-use development revenue increased 10% for the full year
and 4% in the fourth quarter due to increases in rental income
related to tenant recoveries and various new lease agreements, as
well as higher sponsorship revenue.
Operating income and Adjusted OIBDA decreased in the full year
and fourth quarter. Baseball operating costs increased primarily
due to higher player salaries, including offseason trade activity
in the fourth quarter, as well as increases under MLB’s revenue
sharing plan. These costs also increased for the full year due to
higher minor league team and player expenses, variable concession
and retail operating costs attributable to increased attendance and
spring training related expenses. Selling, general and
administrative expense increased in the full year primarily driven
by costs related to the Split-Off and increased in the fourth
quarter primarily driven by higher personnel costs.
FOOTNOTES
1)
ABH will be available to answer
questions related to these headlines and other matters on Liberty
Media’s earnings conference call that will begin at 10:00 a.m.
(E.T.) on February 28, 2024. For information regarding how to
access the call, please see “Important Notice” later in this
document.
2)
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 February 28, 2024. The call can be accessed by dialing
(877) 704-2829 or (215) 268-9864, passcode 13742815 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, expectations regarding the 2024 season and mixed-use
development upgrades, 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 Form 10-K, 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 twelve months ended December 31, 2022 and
December 31, 2023.
Three months ended
Twelve months ended
December 31,
December 31,
(amounts in thousands)
2022
2023
2022
2023
Operating income (loss)
$
(7,210
)
$
(32,366
)
$
(30,581
)
$
(46,440
)
Impairment of long-lived assets and other
related costs
616
—
5,427
564
Stock-based compensation
3,045
3,568
12,233
13,221
Depreciation and amortization
14,968
15,765
71,697
70,980
Adjusted OIBDA
$
11,419
$
(13,033
)
$
58,776
$
38,325
Baseball
$
4,606
$
(17,571
)
$
33,259
$
21,225
Mixed-use development
9,340
9,519
35,433
39,499
Corporate and other
(2,527
)
(4,981
)
(9,916
)
(22,399
)
SCHEDULE 2: Cash and Debt
The following presentation is provided to separately identify
cash and debt information. ABH cash increased $18 million during
the fourth quarter as net borrowing and cash from operations
primarily due to working capital changes more than offset capital
expenditures. ABH debt increased $14 million in the fourth quarter
primarily due to borrowing on the mixed-use development term debt
to support current capital projects.
(amounts in thousands)
September 30, 2023
December 31, 2023
ABH Cash (GAAP)(a)
$
106,715
$
125,148
Debt:
Baseball
League wide credit facility
$
—
$
—
MLB facility fund - term
30,000
30,000
MLB facility fund - revolver
41,400
41,400
TeamCo revolver
10,000
—
Term debt
165,370
165,370
Mixed-use development
312,399
336,177
Total ABH Debt
$
559,169
$
572,947
Deferred financing costs
(3,898
)
(3,678
)
Total ABH Debt (GAAP)
$
555,271
$
569,269
_________________________
a)
Excludes restricted cash held in
reserves pursuant to the terms of various financial obligations of
$20 million and $13 million as of September 30, 2023 and December
31, 2023, respectively.
ATLANTA BRAVES
HOLDINGS
CONSOLIDATED BALANCE SHEET
INFORMATION
December 31, 2023
(unaudited)
December 31,
December 31,
2023
2022
amounts in thousands
except share amounts
Assets
Current assets:
Cash and cash equivalents
$
125,148
150,664
Restricted cash
12,569
22,149
Accounts receivable and contract assets,
net of allowance for credit losses
62,922
70,234
Other current assets
17,380
24,331
Total current assets
218,019
267,378
Property and equipment, at cost
1,091,943
1,007,776
Accumulated depreciation
(325,196
)
(277,979
)
766,747
729,797
Investments in affiliates, accounted for
using the equity method
99,213
94,564
Intangible assets not subject to
amortization:
Goodwill
175,764
175,764
Franchise rights
123,703
123,703
299,467
299,467
Other assets, net
120,884
99,455
Total assets
$
1,504,330
1,490,661
Liabilities and Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
73,096
54,748
Deferred revenue and refundable
tickets
111,985
104,996
Current portion of debt
42,153
74,806
Other current liabilities
6,439
6,361
Total current liabilities
233,673
240,911
Long-term debt
527,116
467,160
Redeemable intergroup interests
—
278,103
Finance lease liabilities
103,586
107,220
Deferred income tax liabilities
50,415
54,099
Pension liability
15,222
15,405
Other noncurrent liabilities
33,676
28,253
Total liabilities
963,688
1,191,151
Equity:
Preferred stock, $.01 par value.
Authorized 50,000,000 shares; zero shares issued at December 31,
2023 and December 31, 2022
—
—
Series A common stock, $.01 par value.
Authorized 200,000,000 shares; issued and outstanding 10,318,197
and zero at December 31, 2023 and December 31, 2022,
respectively
103
—
Series B common stock, $.01 par value.
Authorized 7,500,000 shares; issued and outstanding 977,776 and
zero at December 31, 2023 and December 31, 2022, respectively
10
—
Series C common stock, $.01 par value.
Authorized 200,000,000 shares; issued and outstanding 50,577,776
and zero at December 31, 2023 and December 31, 2022,
respectively
506
—
Additional paid-in capital
1,089,625
—
Former parent’s investment
—
732,350
Accumulated other comprehensive earnings
(loss), net of taxes
(7,271
)
(3,758
)
Retained earnings (deficit)
(554,376
)
(429,082
)
Total stockholders' equity/former parent's
investment
528,597
299,510
Noncontrolling interests in equity of
subsidiaries
12,045
—
Total equity
540,642
299,510
Commitments and contingencies
Total liabilities and equity
$
1,504,330
1,490,661
ATLANTA BRAVES
HOLDINGS
CONSOLIDATED STATEMENT OF
OPERATIONS INFORMATION
December 31, 2023
(unaudited)
Three months ended
Year ended
December 31,
December 31,
2023
2022
2023
2022
amounts in thousands, except
per share amounts
Revenue:
Baseball revenue
$
52,909
56,947
$
581,671
534,984
Mixed-use development revenue
14,839
14,312
58,996
53,577
Total revenue
67,748
71,259
640,667
588,561
Operating costs and expenses:
Baseball operating costs
51,967
37,805
482,391
427,832
Mixed-use development costs
2,383
2,275
8,834
8,674
Selling, general and administrative,
including stock-based compensation
29,999
22,805
124,338
105,512
Impairment of long-lived assets and other
related costs
—
616
564
5,427
Depreciation and amortization
15,765
14,968
70,980
71,697
100,114
78,469
687,107
619,142
Operating income (loss)
(32,366
)
(7,210
)
(46,440
)
(30,581
)
Other income (expense):
Interest expense
(9,656
)
(9,054
)
(37,673
)
(29,582
)
Share of earnings (losses) of affiliates,
net
3,601
6,809
26,985
28,927
Realized and unrealized gains (losses) on
intergroup interests, net
—
(40,317
)
(83,178
)
(35,154
)
Realized and unrealized gains (losses) on
financial instruments, net
(3,329
)
829
2,343
13,067
Gains (losses) on dispositions, net
(209
)
(151
)
2,309
20,132
Other, net
3,633
1,345
6,496
1,674
Earnings (loss) before income taxes
(38,326
)
(47,749
)
(129,158
)
(31,517
)
Income tax benefit (expense)
5,968
2,810
3,864
(2,655
)
Net earnings (loss)
$
(32,358
)
(44,939
)
$
(125,294
)
(34,172
)
Basic net earnings (loss) attributable to
Series A, Series B and Series C Atlanta Braves Holdings, Inc.
shareholders per common share
$
(0.52
)
(0.73
)
$
(2.03
)
(0.55
)
Diluted net earnings (loss) attributable
to Series A, Series B and Series C Atlanta Braves Holdings, Inc.
shareholders per common share
$
(0.52
)
(0.73
)
$
(2.03
)
(0.55
)
ATLANTA BRAVES
HOLDINGS
CONSOLIDATED STATEMENT OF CASH
FLOWS INFORMATION
December 31, 2023
(unaudited)
Years ended
December 31,
2023
2022
amounts in thousands
Cash flows from operating activities:
Net earnings (loss)
$
(125,294
)
(34,172
)
Adjustments to reconcile net earnings
(loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
70,980
71,697
Stock-based compensation
13,221
12,233
Impairment of long-lived assets
—
4,811
Share of (earnings) losses of affiliates,
net
(26,985
)
(28,927
)
Realized and unrealized (gains) losses on
intergroup interests, net
83,178
35,154
Realized and unrealized (gains) losses on
financial instruments, net
(2,343
)
(13,067
)
(Gains) losses on dispositions, net
(2,309
)
(20,132
)
Deferred income tax expense (benefit)
(7,872
)
(10,413
)
Cash receipts from returns on equity
method investments
22,450
21,700
Net cash received (paid) for interest rate
swaps
5,104
(1,194
)
Other charges (credits), net
1,218
2,329
Net change in operating assets and
liabilities:
Current and other assets
(42,802
)
9,912
Payables and other liabilities
13,080
3,418
Net cash provided by (used in) operating
activities
1,626
53,349
Cash flows from investing activities:
Capital expended for property and
equipment
(69,036
)
(17,669
)
Cash proceeds from dispositions
—
48,008
Investments in equity method affiliates
and equity securities
(125
)
(5,273
)
Other investing activities, net
110
27,500
Net cash provided by (used in) investing
activities
(69,051
)
52,566
Cash flows from financing activities:
Borrowings of debt
83,033
154,753
Repayments of debt
(56,187
)
(309,612
)
Payments to settle intergroup
interests
—
(13,828
)
Contribution from noncontrolling
interest
12,045
—
Other financing activities, net
(6,562
)
(8,528
)
Net cash provided by (used in) financing
activities
32,329
(177,215
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(35,096
)
(71,300
)
Cash, cash equivalents and restricted cash
at beginning of period
172,813
244,113
Cash, cash equivalents and restricted cash
at end of period
$
137,717
172,813
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Shane Kleinstein (720) 875-5432
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