in

Atlanta Braves Holdings Reports Fourth Quarter and Year End 2023 Financial Results

ENGLEWOOD, Colo.–(BUSINESS WIRE)–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

 

 

Contacts

Shane Kleinstein

(720) 875-5432

Written by SerieAUKWire

Liberty Media Corporation Reports Fourth Quarter and Year End 2023 Financial Results

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