Nexstar Broadcasting Fourth Quarter Net Revenue Rises 34.8% To A Record $116.2 Million

Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) (“Nexstar”) today reported financial results for the fourth quarter and year-ended December 31, 2012 as summarized below:

Summary 2012 Fourth Quarter and Full Year Highlights
                 

($ in thousands)

Three Months Ended

December 31,

Twelve Months Ended

December 31,
2012       2011       Change     2012       2011       Change
Local Revenues $ 52,633     $ 49,303 +6.8 % $ 190,168     $ 181,569 +4.7 %
National Revenues $ 20,580       $ 18,009 +14.3 % $ 76,123       $ 65,728 +15.8 %
Local and National Core Revenue $ 73,213 $ 67,312 +8.8 % $ 266,291 $ 247,297 +7.7 %
 
Political Revenues $ 27,347 $ 2,007 +1,262.6 % $ 46,276 $ 6,326 +631.5 %
e-Media Revenue $ 5,322 $ 4,261 +24.9 % $ 18,363 $ 16,224 +13.2 %
Retransmission Fee Revenue $ 16,052 $ 10,294 +55.9 % $ 60,933 $ 37,393 +63.0 %
Management Fee Revenue $ 0 $ 4,221 (100.0 )% $ 1,961 $ 6,189 (68.3 )%
Network Comp, Other $ 1,363 $ 772 +76.6 % $ 3,708 $ 3,294 +12.6 %
Trade and Barter Revenue $ 6,353       $ 6,057 +4.9 % $ 21,920       $ 21,457 +2.2 %
Gross Revenue $ 129,650 $ 94,924 +36.6 % $ 419,452 $ 338,180 +24.0 %
Less Agency Commissions $ 13,476       $ 8,722 +54.5 % $ 40,820       $ 31,689 +28.8 %
Net Revenue $ 116,174 $ 86,202 +34.8 % $ 378,632 $ 306,491 +23.5 %
 

Gross Revenue Excluding Political Revenue
$ 102,303 $ 92,917

+10.1

%
$ 373,176

$

331,854

+12.5

%
 
Income from Operations $ 35,380 $ 17,634 +100.6 % $ 99,905 $ 47,993 +108.2 %
 
Broadcast Cash Flow (1) $ 56,294 $ 34,931 +61.2 % $ 170,980 $ 115,856 +47.6 %
Broadcast Cash Flow Margin (2) 48.5

%

 
40.5 % 45.2 % 37.8 %
 
Adjusted EBITDA (1) $ 48,082 $ 29,579 +62.6 % $ 146,344 $ 96,076 +52.3 %
Adjusted EBITDA Margin (2) 41.4

%

 
34.3 % 38.7 % 31.3 %
 
Free Cash Flow (1) $ 28,652 $ 15,304 +87.2 % $ 80,515 $ 34,192 +135.5 %
 

(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, “The 34.8% rise in fourth quarter net revenue concluded what was already a record year financially for Nexstar. Our strong financial results were primarily driven by record-breaking political advertising sales, higher core television ad revenue, growing retransmission consent revenues, and our 24th consecutive quarter of e-Media revenue increases. We also benefited from a month of operations related to the accretive acquisition of ten television stations from Newport Television. Fourth quarter BCF, EBITDA and free cash flow increases of 61.2%, 62.6% and 87.2%, respectively, reflect significant margin growth related to the leverage in our operating model as well as the value of our initiatives to diversify revenues, maximize the political advertising opportunity, manage costs and actively expand our operations through strategic, accretive station acquisitions.

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