Nexstar Broadcasting Group Board of Directors Authorizes Repurchase of $100 Million Worth of Shares
10 August 2015 - 9:00PM
Business Wire
Nexstar Broadcasting Group, Inc. (Nasdaq:NXST) announced today
that the Company intends to act on the Board of Directors’
authorization to repurchase up to $100 million of its Class A
common stock.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar Broadcasting Group, Inc. commented, “The repurchase
authorization reflects our confidence in the Company's growing free
cash flow from operations based on visible organic growth
opportunities and provides a flexible complement to our existing
return of capital initiatives through our quarterly cash dividend.
We believe the $100 million share repurchase authorization, which
at Friday’s closing price represents approximately 2 million
shares, is a prudent use of capital as Nexstar is on pace to
achieve its projected pro-forma free cash flow of approximately
$456 million during the 2015/2016 cycle, or average pro-forma free
cash flow of approximately $7.30 per share per year.
“Importantly, as a result of our strong free cash flow growth
profile, we have the financial flexibility to continue executing
our long-term growth strategy focused on accretive broadcast and
digital media transactions -- and their successful integration and
synergy realization -- while simultaneously reducing leverage,
paying a quarterly cash dividend and pursuing opportunistic share
repurchases which we believe supports our priority to enhance
shareholder value.”
Repurchases by the Company will be subject to available
liquidity, general market and economic conditions, alternate uses
for the capital and other factors. Share repurchases may be made
from time to time in open market transactions, block trades or in
private transactions in accordance with applicable securities laws
and regulations and other legal requirements, including compliance
with the Company’s finance agreements. There is no minimum number
of shares that the Company is required to repurchase and the
repurchase program may be suspended or discontinued at any time
without prior notice. All shares purchased will be held in the
Company’s treasury for possible future use. The Company anticipates
funding any share repurchases from its cash flow from operations
and its existing credit facility. Nexstar has approximately 32.4
million shares of Class A common stock outstanding (the only class
of shares outstanding).
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group is a leading diversified media
company that leverages localism to bring new services and value to
consumers and advertisers through its traditional media, digital
and mobile media platforms. Nexstar owns, operates, programs or
provides sales and other services to 107 television stations and
related digital multicast signals reaching 58 markets or
approximately 18.0% of all U.S. television households. Nexstar’s
portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV,
The CW, Telemundo, Bounce TV, Me-TV, and LATV. Nexstar’s community
portal websites offer additional hyper-local content and verticals
for consumers and advertisers, allowing audiences to choose where,
when and how they access content while creating new revenue
opportunities.
Forward-Looking Statements
This news release includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "anticipates," "could," or
similar expressions. For these statements, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
The forward-looking statements contained in this news release,
concerning, among other things, changes in net revenue, cash flow
and operating expenses, involve risks and uncertainties, and are
subject to change based on various important factors, including the
impact of changes in national and regional economies, our ability
to service and refinance our outstanding debt, successful
integration of acquired television stations (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets served by the Company,
volatility in programming costs, the effects of governmental
regulation of broadcasting, industry consolidation, technological
developments and major world news events. Unless required by law,
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this news
release might not occur. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. For more details on factors that could affect
these expectations, please see our filings with the Securities and
Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20150810005214/en/
Nexstar Broadcasting Group, Inc.Thomas E. Carter,
972-373-8800Chief Financial OfficerorJCIRJoseph JaffoniorJennifer
Neuman212-835-8500nxst@jcir.com
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