BATRK Atlanta Braves Holdings Inc

Atlanta Braves Holdings, Inc. (“ABH”) (Nasdaq: BATRA, BATRK) today reported fourth quarter and year end 2024 results.

Headlines include:

• Total revenue grew to $663 million in the fourth quarter, up from $641 million in the prior year period.
  • Baseball revenue increased 2% to $595 million.
  • Mixed-use development revenue grew 14% to $67 million.
• Mixed-use development generated $45 million of Adjusted OIBDA in 2024, up 15% from the prior period.
• The opening of a new eight-stall food hall named the Outfield Market offering a variety of cuisines.

Discussion of Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

Twelve months ended

 

 

 

 

 

December 31,

 

 

 

 

 

December 31,

 

 

 

 

 

2023

 

2024

 

% Change

 

 

2023

 

2024

 

% Change

 

 

amounts in thousands

 

 

 

 

 

amounts in thousands

 

 

 

Baseball revenue

 

$

52,909

 

$

34,197

 

(35)

%

 

 

$

581,671

 

$

595,430

 

2

%

Mixed-use development revenue

 

 

14,839

 

 

17,921

 

21

%

 

 

 

58,996

 

 

67,318

 

14

%

Total revenue

 

 

67,748

 

 

52,118

 

(23)

%

 

 

 

640,667

 

 

662,748

 

3

%

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baseball operating costs

 

 

(51,967)

 

 

(27,896)

 

46

%

 

 

 

(482,391)

 

 

(504,146)

 

(5)

%

Mixed-use development costs

 

 

(2,383)

 

 

(2,600)

 

(9)

%

 

 

 

(8,834)

 

 

(9,762)

 

(11)

%

Selling, general and administrative, excluding stock-based compensation

 

 

(26,431)

 

 

(25,380)

 

4

%

 

 

 

(111,681)

 

 

(109,157)

 

2

%

Adjusted OIBDA(1)

 

$

(13,033)

 

$

(3,758)

 

71

%

 

 

$

37,761

 

$

39,683

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(32,366)

 

$

(18,648)

 

42

%

 

 

$

(46,440)

 

$

(39,665)

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular season home games in period

 

 

1

 

 

—

 

 

 

 

 

 

81

 

 

81

 

 

 

Postseason home games in period

 

 

2

 

 

—

 

 

 

 

 

 

2

 

 

—

 

 

 

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 primarily 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,

 

 

 

 

 

2023

 

2024

 

% Change

 

 

2023

 

2024

 

% Change

 

 

amounts in thousands

 

 

 

 

 

amounts in thousands

 

 

 

Baseball:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baseball event

 

$

15,205

 

$

2,607

 

(83)

%

 

 

$

339,485

 

$

347,925

 

2

%

Broadcasting

 

 

22,158

 

 

22,051

 

(0)

%

 

 

 

160,944

 

 

166,094

 

3

%

Retail and licensing

 

 

6,507

 

 

5,965

 

(8)

%

 

 

 

51,533

 

 

47,754

 

(7)

%

Other

 

 

9,039

 

 

3,574

 

(60)

%

 

 

 

29,709

 

 

33,657

 

13

%

Baseball revenue

 

 

52,909

 

 

34,197

 

(35)

%

 

 

 

581,671

 

 

595,430

 

2

%

Mixed-use development

 

 

14,839

 

 

17,921

 

21

%

 

 

 

58,996

 

 

67,318

 

14

%

Total revenue

 

$

67,748

 

$

52,118

 

(23)

%

 

 

$

640,667

 

$

662,748

 

3

%

There were 81 and zero home games played in the full year and fourth quarter of 2024, respectively, compared to 83 and 3 (including postseason) home games in the comparable prior year periods.

Baseball revenue increased 2% for the full year. Baseball event revenue increased primarily due to new sponsorship agreements and contractual rate increases on season tickets and existing sponsorship contracts, partially offset by reduced attendance at regular season home games. Broadcasting revenue increased due to contractual rate increases. Retail and licensing revenue decreased due to a reduction in local revenue due to the decrease in regular season home game attendance and demand for City Connect and other apparel, partially offset by higher league-wide revenue. Other revenue increased due to increases in spring training related revenue (ticket sales, concession revenue and other gameday related revenue), driven by increased attendance at spring training home games. Baseball revenue decreased 35% in the fourth quarter primarily driven by the lack of home games or concerts held in the fourth quarter of 2024 compared to three home games and two concerts held in the fourth quarter of 2023.

Mixed-use development revenue increased 14% for the full year and 21% in the fourth quarter primarily due to increases in rental income, from various lease commencements and tenant recoveries, as well as higher parking revenue.

Operating income and Adjusted OIBDA increased in the full year, as revenue growth and decreases in selling, general and administrative expenses more than offset increases in baseball operating costs and mixed-use development costs. Baseball operating costs increased due to increases under MLB’s revenue sharing plan and other shared expenses, minor league team and player expenses as well as major league player salaries. This was partially offset by decreases in variable concession and retail operating expenses due to reduced attendance at regular season home games. Mixed-use development costs increased due to security and parking expenses. Selling, general and administrative expenses decreased due to reduced transaction costs related to the Split-Off2 (as defined below), partially offset by increased personnel costs and insurance, information technology, and professional fees.

Operating income and Adjusted OIBDA increased in the fourth quarter compared to the prior year due to reduced baseball operating costs and selling, general and administrative expenses. Decreased baseball operating costs in the fourth quarter were due to reduced player salaries, including limited offseason trade activity. Selling, general and administrative expenses decreased due to reduced transactions costs related to the Split-Off (as defined below).

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.

2)

During November 2022, the board of directors of Liberty Media Corporation (“Liberty Media”) authorized Liberty management to pursue a plan to redeem each outstanding share of its Liberty Braves common stock in exchange for one share of the corresponding series of common stock of ABH (the “Split-Off”).

Important Notice: Atlanta Braves Holdings, Inc. (Nasdaq: BATRA, BATRK) will discuss ABH’s earnings release on a conference call which will begin at 10:00 a.m. (E.T.) on February 26, 2025. The call can be accessed by dialing (877) 407-9709 or +1 (201) 689-8542, passcode 13751454 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 year-end. ABH’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 inability to replicate certain functions or the loss of benefits of contracts associated with the transition away from Liberty Media; 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; ABH’s ability to successfully transition responsibilities for various matters from Liberty Media to in-house or third party personnel and costs incurred in connection with operating as a standalone public company; ABH’s ownership, management and board of directors structure; 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 business 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; 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; ABH’s ability to attract and retain qualified key personnel; the inherent risks in the real estate business, including, but not limited to, tenant defaults, potential liability related to environmental matters and liquidity of real estate investments; 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 our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as may be updated by subsequent filings under the Securities Exchange Act of 1934, as amended, including Forms 10-Q and 8-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, 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 twelve months ended December 31, 2023, and December 31, 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Twelve months ended

 

 

December 31,

 

December 31,

(amounts in thousands)

 

2023

 

2024

 

2023

 

2024

Operating income (loss)

 

$

(32,366)

 

$

(18,648)

 

$

(46,440)

 

$

(39,665)

Stock-based compensation

 

 

3,568

 

 

2,730

 

 

13,221

 

 

16,519

Depreciation and amortization

 

 

15,765

 

 

12,160

 

 

70,980

 

 

62,829

Adjusted OIBDA

 

$

(13,033)

 

$

(3,758)

 

$

37,761

 

$

39,683

Baseball

 

$

(17,571)

 

$

(13,447)

 

$

20,661

 

$

6,625

Mixed-use development

 

 

9,519

 

 

11,833

 

 

39,499

 

 

45,448

Corporate and other

 

 

(4,981)

 

 

(2,144)

 

 

(22,399)

 

 

(12,390)

SCHEDULE 2: Cash and Debt

The following presentation is provided to separately identify cash and debt information. ABH cash increased $9 million during the fourth quarter as cash from operations increased primarily due to seasonal working capital changes and distributions from equity method affiliates partially offset by capital expenditures and repayments on borrowings. ABH debt decreased $23 million in the fourth quarter primarily due to repayments under the TeamCo revolver partially offset by borrowings on mixed-use development credit facilities to support capital projects.

 

 

 

 

 

 

 

(amounts in thousands)

 

September 30, 2024

 

December 31, 2024

ABH Cash (GAAP)(a)

 

$

100,852

 

$

110,144

 

 

 

 

 

Debt:

 

 

 

 

 

 

Baseball

 

 

 

 

 

 

League wide credit facility

 

$

—

 

$

—

MLB facility fund - term

 

 

30,000

 

 

30,000

MLB facility fund - revolver

 

 

39,675

 

 

39,100

TeamCo revolver

 

 

30,000

 

 

—

Term debt

 

 

158,806

 

 

158,806

Mixed-use development

 

 

384,641

 

 

392,160

Total ABH Debt

 

$

643,122

 

$

620,066

Deferred financing costs

 

 

(3,023)

 

 

(2,946)

Total ABH Debt (GAAP)

 

$

640,099

 

$

617,120

a)

Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $15 million and $2 million as of September 30, 2024 and December 31, 2024, respectively.

ATLANTA BRAVES HOLDINGS

CONSOLIDATED BALANCE SHEET

(unaudited)

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2024

 

2023

 

 

amounts in thousands,

 

 

except share amounts

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

110,144

 

125,148

Restricted cash

 

 

2,455

 

12,569

Accounts receivable and contract assets, net of allowance for credit losses of $238 and $332, respectively

 

 

49,991

 

62,922

Other current assets

 

 

16,556

 

17,380

Total current assets

 

 

179,146

 

218,019

 

 

 

 

 

 

Property and equipment, at cost

 

 

1,161,803

 

1,091,943

Accumulated depreciation

 

 

(354,318)

 

(325,196)

 

 

 

807,485

 

766,747

 

 

 

 

 

 

Investments in affiliates, accounted for using the equity method

 

 

108,786

 

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

 

 

128,962

 

120,884

Total assets

 

$

1,523,846

 

1,504,330

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

63,711

 

73,096

Deferred revenue and refundable tickets

 

 

111,851

 

111,985

Current portion of debt

 

 

104,193

 

42,153

Other current liabilities

 

 

6,905

 

6,439

Total current liabilities

 

 

286,660

 

233,673

 

 

 

 

 

 

Long-term debt

 

 

512,927

 

527,116

Finance lease liabilities

 

 

103,845

 

103,586

Deferred income tax liabilities

 

 

43,516

 

50,415

Pension liability

 

 

6,558

 

15,222

Other noncurrent liabilities

 

 

34,116

 

33,676

Total liabilities

 

 

987,622

 

963,688

Equity:

 

 

 

 

 

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

 

 

10

 

10

Series C common stock, $.01 par value. Authorized 200,000,000 shares; issued and outstanding 51,269,890 and 50,577,776 at December 31, 2024 and December 31, 2023, respectively

 

 

511

 

506

Additional paid-in capital

 

 

1,112,551

 

1,089,625

Accumulated other comprehensive earnings (loss), net of taxes

 

 

(3,352)

 

(7,271)

Retained earnings (deficit)

 

 

(585,644)

 

(554,376)

Total stockholders' equity

 

 

524,179

 

528,597

Noncontrolling interests in equity of subsidiaries

 

 

12,045

 

12,045

Total equity

 

 

536,224

 

540,642

Commitments and contingencies

 

 

 

 

 

Total liabilities and equity

 

$

1,523,846

 

1,504,330

ATLANTA BRAVES HOLDINGS

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

amounts in thousands,

 

 

 

except per share amounts

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Baseball revenue

 

$

34,197

 

52,909

 

$

595,430

 

581,671

 

Mixed-use development revenue

 

 

17,921

 

14,839

 

 

67,318

 

58,996

 

Total revenue

 

 

52,118

 

67,748

 

 

662,748

 

640,667

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Baseball operating costs

 

 

27,896

 

51,967

 

 

504,146

 

482,391

 

Mixed-use development costs

 

 

2,600

 

2,383

 

 

9,762

 

8,834

 

Selling, general and administrative, including stock-based compensation

 

 

28,110

 

29,999

 

 

125,676

 

124,902

 

Depreciation and amortization

 

 

12,160

 

15,765

 

 

62,829

 

70,980

 

 

 

 

70,766

 

100,114

 

 

702,413

 

687,107

 

Operating income (loss)

 

 

(18,648)

 

(32,366)

 

 

(39,665)

 

(46,440)

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(10,072)

 

(9,656)

 

 

(38,789)

 

(37,673)

 

Share of earnings (losses) of affiliates, net

 

 

3,509

 

3,601

 

 

30,460

 

26,985

 

Realized and unrealized gains (losses) on intergroup interests, net

 

 

—

 

—

 

 

—

 

(83,178)

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

1,995

 

(3,329)

 

 

3,424

 

2,343

 

Other, net

 

 

2,805

 

1,115

 

 

8,629

 

6,496

 

Earnings (loss) before income taxes

 

 

(20,411)

 

(38,326)

 

 

(35,941)

 

(129,158)

 

Income tax benefit (expense)

 

 

1,286

 

5,968

 

 

4,673

 

3,864

 

Net earnings (loss)

 

$

(19,125)

 

(32,358)

 

$

(31,268)

 

(125,294)

 

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

 

$

(0.31)

 

(0.52)

 

$

(0.50)

 

(2.03)

 

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

 

$

(0.31)

 

(0.52)

 

$

(0.50)

 

(2.03)

 

 

ATLANTA BRAVES HOLDINGS

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

 

 

Years ended

 

 

 

December 31,

 

 

 

2024

 

2023

 

 

 

amounts in thousands

 

Cash flows from operating activities:

 

 

 

 

 

 

Net earnings (loss)

 

$

(31,268)

 

(125,294)

 

Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

62,829

 

70,980

 

Stock-based compensation

 

 

16,519

 

13,221

 

Share of (earnings) losses of affiliates, net

 

 

(30,460)

 

(26,985)

 

Realized and unrealized (gains) losses on intergroup interests, net

 

 

—

 

83,178

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

(3,424)

 

(2,343)

 

(Gains) losses on dispositions, net

 

 

—

 

(2,309)

 

Deferred income tax expense (benefit)

 

 

(9,288)

 

(7,872)

 

Cash receipts from returns on equity method investments

 

 

21,602

 

22,450

 

Net cash received (paid) for interest rate swaps

 

 

5,794

 

5,104

 

Other charges (credits), net

 

 

1,855

 

1,218

 

Net change in operating assets and liabilities:

 

 

 

 

 

 

Current and other assets

 

 

(15,827)

 

(42,802)

 

Payables and other liabilities

 

 

(1,701)

 

13,080

 

Net cash provided by (used in) operating activities

 

 

16,631

 

1,626

 

Cash flows from investing activities:

 

 

 

 

 

 

Capital expended for property and equipment

 

 

(86,013)

 

(69,036)

 

Investments in equity method affiliates and equity securities

 

 

(334)

 

(125)

 

Other investing activities, net

 

 

40

 

110

 

Net cash provided by (used in) investing activities

 

 

(86,307)

 

(69,051)

 

Cash flows from financing activities:

 

 

 

 

 

 

Borrowings of debt

 

 

144,890

 

83,033

 

Repayments of debt

 

 

(102,415)

 

(56,187)

 

Contribution from noncontrolling interest

 

 

—

 

12,045

 

Other financing activities, net

 

 

2,083

 

(6,562)

 

Net cash provided by (used in) financing activities

 

 

44,558

 

32,329

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

(25,118)

 

(35,096)

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

137,717

 

172,813

 

Cash, cash equivalents and restricted cash at end of period

 

$

112,599

 

137,717

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226022988/en/

Cameron Rudd – Investor Relations (404) 614-2300 or investorrelations@braves.com