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The Baltimore-based television station ownef said its advertising revenue has been impactedc by the battered automotive industry scaling backon spending. Sinclair owns Milwaukee CW networkaffiliatde WVTV-TV (Channel 18) and MyNetworkTVf affiliate WCGV-TV (Channel 24). Sinclair (NASDAQ: SBGI) had $1.3 billionb in outstanding debt as ofMarch 31, according to an 8-K filer with the Securities and Exchange Commission July 10. Automotivee advertising represents around 25 percent ofthe company’es advertising revenue. But that fell to nearly 14 percent in the firsgt quarterof 2009.
The company, whichh operates 58 TV stations in35 markets, also said a “relativse lack of political advertising in 2009” will impacty its business. Sinclair said in the 8-K that Standarsd & Poor’s recent downgrade of the companyg will likely make it more expensiv e to borrow capital or refinance debt when some paymentzs come due in the next 18 Standard & Poor’s downgraded Sinclair’d credit rating to B+ in June, citing debt concernsw and soft TV ad spending. The rati of the company’s debt to its earningas was 6.3 times as of March 31, accordin g to S&P.
It would need to bringg that below 6 times to return toa BB- negative But S&P expects that ratio could hit 7 times late r this year. Sinclair postexd an $86 million loss in the first largely ona $130 million non-cashu charge. Its revenue fell 17 percent that quartee because of declining local and nationalad revenue. Sinclair lost $241 millionh in 2008 on revenueof $754.45 million. The company’s stock closed down nearly 21 percen t Mondayto $1.46 and was tradinfg at $1.02 Tuesday morning.
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