BATRA Atlanta Braves Holdings Inc

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

Nine months ended

 

 

 

 

September 30,

 

 

 

 

September 30,

 

 

 

 

2023

 

 

2024

 

 

% Change

 

 

2023

 

 

2024

 

 

% Change

 

 

amounts in thousands

 

 

 

 

amounts in thousands

 

 

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

 

 

 

290,674

 

 

7

%

 

 

 

572,919

 

 

 

610,630

 

 

7

%

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

15,716

 

 

$

6,402

 

 

(59

)%

 

 

$

(14,074

)

 

$

(21,017

)

 

(49

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular season home games in period

 

 

37

 

 

 

41

 

 

 

 

 

 

80

 

 

 

81

 

 

 

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

 

 

 

 

Nine months ended

 

 

 

 

September 30,

 

 

 

 

September 30,

 

 

 

 

2023

 

2024

 

% Change

 

 

2023

 

2024

 

% Change

 

 

amounts in thousands

 

 

 

 

amounts in thousands

 

 

Baseball:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baseball event

 

$

160,794

 

$

172,800

 

7

%

 

 

$

324,280

 

$

345,318

 

6

%

Broadcasting

 

 

69,337

 

 

70,992

 

2

%

 

 

 

138,786

 

 

144,043

 

4

%

Retail and licensing

 

 

20,904

 

 

16,512

 

(21

)%

 

 

 

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: Atlanta Braves Holdings, Inc. (Nasdaq: BATRA, BATRK) will discuss the company’s earnings release on a conference call which will begin at 10:00 a.m. (E.T.) on November 6, 2024. The call can be accessed by dialing (877) 407-9709 or +1 (201) 689-8542, passcode 13749388 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.

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 Liberty Media Corporation; ABH’s ability to successfully transition responsibilities for various matters from Liberty Media Corporation to in-house or third party personnel and costs incurred in connection with operating as a standalone public company; 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; ABH’s ability to realize the benefits of acquisitions or other strategic investments; the impact of inflation and weak economic conditions on consumer demand for products, services and events offered by ABH; the outcome of pending or future litigation or investigations; operational risks of ABH and its business affiliates with operations outside of the U.S.; ABH’s ability to use net operating loss and disallowed business interest carryforwards; ABH’s ability to comply with government regulations and potential adverse outcomes of regulatory proceedings; the regulatory and competitive environment in which ABH operates; potential changes in the nature of key strategic relationships with partners, vendors and joint venturers; the achievement of on-field success and ability to develop, obtain and retain talented players; the impact of organized labor; the impact of the structure or an expansion of Major League Baseball; the level of broadcasting revenue that ABH and its subsidiaries receive, including any impact as a result of the outcome of the Diamond Sports Group bankruptcy; the performance and management of the mixed-use development; the impact of data losses or breaches or disruptions in ABH’s information systems and information system security; ABH’s processing, storage, sharing, use and protection of personal data and the impact of geopolitical incidents, accidents, terrorist acts, pandemics or epidemics, natural disasters, including the effects of climate change, or other events that cause one or more events to be cancelled or postponed, are not covered by insurance, or cause reputational damage to ABH and its affiliates. 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, 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 September 30, 2023, and September 30, 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

(amounts in thousands)

 

2023

 

 

2024

 

 

2023

 

 

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 $20 million during the third quarter due to cash used in operations primarily driven by seasonal working capital changes as well as capital expenditures, partially offset by the release of restricted cash pursuant to the terms of various financial debt arrangements and net borrowing. ABH debt increased $40 million in the third quarter primarily due to borrowings under the TeamCo revolver and mixed-use development credit facilities to support working capital and current capital projects.

 

 

 

 

 

 

 

(amounts in thousands)

 

June 30, 2024

 

September 30, 2024

ABH Cash (GAAP)(a)

 

$

121,239

 

 

$

100,852

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

Baseball

 

 

 

 

 

 

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 $40 million and $15 million as of June 30, 2024, and September 30, 2024, respectively.

ATLANTA BRAVES HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION

September 30, 2024 (unaudited)

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2024

 

2023

 

 

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 $468 and $332, respectively

 

 

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:

 

 

 

 

 

Goodwill

 

 

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

 

 

10

 

 

10

 

Series C common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 50,842,646 and 50,577,776 at September 30, 2024, and December 31, 2023, respectively

 

 

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

 

ATLANTA BRAVES HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION

September 30, 2024 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

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, Series B and Series C Atlanta Braves Holdings, Inc. shareholders per common share

 

$

0.16

 

 

(0.10

)

 

$

(0.20

)

 

(1.51

)

 

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

 

$

0.16

 

 

(0.10

)

 

$

(0.20

)

 

(1.51

)

 

 

ATLANTA BRAVES HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION

September 30, 2024 (unaudited)

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

September 30,

 

 

 

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/

Jennifer Giglio (404) 614-1336