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The Hunt Valley-based broadcaster said net income for the quarter ended Sept. 30 rose to $14.9 million, or 19 cents per diluted share, compared with net income of $10.2 million, or 12 cents per diluted share, during the third quarter of 2008.
"We are pleased to report that we have successfully restructured our balance sheet and addressed our cash flow needs," said David Smith, Sinclair's president and chief executive.
He said the company would use the proceeds of its new $500 million senior secured note offering, announced last week, to repurchase outstanding debt from note holders and repay a portion of the company's bank debt. The company was also able to restructure its bank credit facility, extending $75.4 million of its $135.9 million loan to 2013.
Smith said the balance sheet restructuring was a necessary step to provide the liquidity to compete and take advantage of opportunities in the digital age of television broadcasting.
The company also said a potential cross-default with Sinclair's partner, Cunningham Broadcasting, had been resolved after Cunningham renegotiated its bank credit facility.
Sinclair said its net broadcast revenues from continuing operations fell 9.1 percent during the third quarter, to $136.4 million from $150.1 million during the third quarter of 2008.
The company said its operating income fell to $35.7 million from $37.4 million in the same period a year earlier.
Local advertising revenues decreased nearly 14 percent in the third quarter, while national advertising revenues slid 26.7 percent, the company reported. Advertising spending categories that saw the biggest decreases were automotive, services, paid programming, movies and telecommunications.
Sinclair had said last month it expected third-quarter net broadcast revenue to be better than anticipated because of higher spending on automotive advertising after the government extended the "cash for clunkers" program, higher spending on political advertising for health care and state-related issues, higher retransmission revenues and increased advertising spending across many categories in August and September.
The owner of TV stations, including Baltimore's Fox 45, has faced declining advertising revenue amid the recession. Sinclair depends heavily on the automotive sector for advertising. In July the company had said it might consider filing for bankruptcy protection if it failed to restructure its debt.
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