Nexstar Broadcasting Third Quarter Net Revenue Rises 23.6% To A Record $275.7 Million

Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) ("Nexstar" or "the Company") today reported record financial results for the third quarter ended September 30, 2016 as summarized below.
 

Summary 2016 Third Quarter Highlights
                 

Three Months Ended September 30,

Nine Months Ended September 30,
($ in thousands) 2016     2015 Change 2016     2015 Change
Local Revenue $ 94,878 $ 88,018 +7.8% $ 286,253 $ 266,533 +7.4%
National Revenue $ 36,522 $ 37,899 (3.6)% $ 107,849 $ 112,270 (3.9)%
Core Revenue $ 131,400 $ 125,917 +4.4% $ 394,102 $ 378,803 +4.0%
 
Political Revenue $ 25,500 $ 2,563 +894.9% $ 48,511 $ 4,829 +904.6%
Retransmission Fee Revenue $ 98,267 $ 80,045 +22.8% $ 293,717 $ 216,328 +35.8%
Digital Revenue $ 28,621 $ 20,127 +42.2% $ 76,011 $ 60,619 +25.4%
Other $ 1,480 $ 1,406 +5.3% $ 4,540 $ 3,986 +13.9%
Trade and Barter Revenue $ 11,595 $ 11,537 +0.5% $ 34,756 $ 34,715 +0.1%
Gross Revenue $ 296,863 $ 241,595 +22.9% $ 851,637 $ 699,280 +21.8%
Less: Agency Commission $ 21,204 $ 18,564 +14.2% $ 58,326 $ 55,165 +5.7%
Net Revenue $ 275,659 $ 223,031 +23.6% $ 793,311 $ 644,115 +23.2%
 
Gross Revenue Excluding Political $ 271,363 $ 239,032 +13.5% $ 803,126 $ 694,451 +15.6%
 
Income from Operations $ 72,897 $ 48,315 +50.9% $ 194,833 $ 138,761 +40.4%
 
Broadcast Cash Flow (1) $ 109,949 $ 84,290 +30.4% $ 311,259 $ 245,379 +26.8%
Broadcast Cash Flow Margin (2) 39.9 % 37.8 % 39.2 % 38.1 %
 
Adjusted EBITDA (1) $ 98,236 $ 73,182 +34.2% $ 270,708 $ 212,114 +27.6%
Adjusted EBITDA Margin (2) 35.6 % 32.8 % 34.1 % 32.9 %
 
Free Cash Flow (1) $ 58,539 $ 46,243 +26.6% $ 159,387 $ 139,265 +14.4%
 

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(1)   Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of the press release.
(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 record third quarter financial results were highlighted by solid core revenue growth, our ability to maximize the Olympic and political revenue opportunities, growing retransmission consent revenues, impressive digital growth and the ongoing benefits of our results-focused operating disciplines. These factors drove record third quarter net revenue, which led to record third quarter operating income, BCF, adjusted EBITDA and free cash flow, and we brought about 21% of every net revenue dollar to the free cash flow line. Reflecting the benefits of scale and the strong operating leverage in our business model, Nexstar's 23.6% rise in third quarter net revenue resulted in 30.4% growth in third quarter BCF, a 34.2% increase in adjusted EBITDA and a 26.6% rise in free cash flow.

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