Nexstar Broadcasting Second Quarter Net Revenue Rises 17.7% To A Record $88.9 Million

Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) (“Nexstar”) today reported record financial results for the second quarter ended June 30, 2012 as summarized below:

Summary 2012 Second Quarter Highlights
       

($ in thousands)

Three Months Ended June 30,

Six Months Ended June 30,
2012   2011   Change   2012   2011   Change
Local Revenues $ 47,359   $ 45,666 +3.7 % $ 92,792   $ 88,923 +4.4 %
National Revenues $ 18,829     $ 16,356   +15.1 % $ 36,235     $ 31,417   +15.3 %
Local and National Core Revenue $ 66,188 $ 62,022 +6.7 % $ 129,027 $ 120,340 +7.2 %
 
Political Revenues $ 5,982 $ 2,032 +194.4 % $ 8,776 $ 2,592 +238.6 %
e-Media Revenue $ 4,426 $ 4,083 +8.4 % $ 8,559 $ 7,756 +10.4 %
Retransmission Fee Revenue $ 15,283 $ 8,600 +77.7 % $ 29,779 $ 17,117 +74.0 %
Management Fee Revenue $ 0 $ 500 (100.0 )% $ 1,961 $ 1,000 +96.1 %
Network Comp, Other $ 834 $ 873 (4.5 )% $ 1,626 $ 1,714 (5.1 )%
Trade and Barter Revenue $ 5,473     $ 5,389   +1.6 % $ 10,461     $ 10,276   +1.8 %
Gross Revenue $ 98,186 $ 83,499 +17.6 % $ 190,189 $ 160,795 +18.3 %
Less Agency Commissions $ 9,322     $ 7,994   +16.6 % $ 17,683     $ 15,345   +15.2 %
Net Revenue $ 88,864 $ 75,505 +17.7 % $ 172,506 $ 145, 450 +18.6 %
 
Gross Revenue Excluding Political Revenue $ 92,204 $ 81,467

+13.2

%
$ 181,413

$

158,203

+14.7

%
 
Income from Operations $ 23,463 $ 12,925 +81.5 % $ 40,968 $ 22,091 +85.5 %
 
Broadcast Cash Flow (1) $ 39,668 $ 29,977 +32.3 % $ 73,718 $ 54,810 +34.5 %
Broadcast Cash Flow Margin (2) 44.6 % 39.7 % 42.7 % 37.7 %
 
Adjusted EBITDA (1) $ 34,549 $ 25,461 +35.7 % $ 63,185 $ 45,476 +38.9 %
Adjusted EBITDA Margin (2) 38.9 % 33.7 % 36.6 % 31.3 %
 
Free Cash Flow (1) $ 19,338 $ 10,033 +92.7 % $ 32,023 $ 13,660 +134.4 %
 

 

(1)
 

Definitions and disclosures regarding non-GAAP financial information are included on page 4, while reconciliations are included on page 7.
 

(2)

Broadcast cash flow margin is broadcast cash flow as a percentage of net revenue. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net revenue.
 

CEO Comment

Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, “Nexstar’s corporate and operating teams are generating strong returns from our existing base of operations with another quarter of record operating results including net revenue, EBITDA, free cash flow and margins. Of significance to our shareholders, last month Nexstar and Mission announced the accretive acquisition of twelve additional stations which will expand our operating base and lead to substantial free cash flow growth without materially affecting our leverage profile. With expectations for free cash flow accretion in the first year of ownership of the new stations approximately 45% over the levels expected to be generated by Nexstar’s and Mission’s existing operations, we are highly confident that the Company will be positioned to aggressively address outstanding debt while potentially deploying free cash flow for shareholder enhancing actions.

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