Q4 Consolidated Net Revenue Drives Operating
Income of $230 Million, Net Income of $100 Million,
Consolidated Adjusted EBITDA of $411 Million and Attributable
Free Cash Flow of $265 Million
Quarterly and Full Year Return of Capital to
Shareholders of $137 Million and $796 Million, Respectively,
Reduced Shares Outstanding by 8.7% during 2023
Issues 2024 Adjusted EBITDA Guidance of
$2.085 Billion to $2.195 Billion
Nexstar Media Group, Inc. (NASDAQ: NXST) (“Nexstar” or the
“Company”) today reported financial results for the fourth quarter
and year ended December 31, 2023 as summarized below:
Summary 2023 Fourth Quarter and Full Year
Highlights
NEXSTAR - CONSOLIDATED(1)
Three Months Ended December
31,
%
Year Ended December
31,
%
($ in millions)
2023
2022
Change
2023
2022
Change
Core Advertising Revenue
$
449
$
477
(5.9
)
$
1,660
$
1,718
(3.4
)
Political Advertising Revenue
30
266
(88.7
)
66
506
(87.0
)
Total Television Advertising
Revenue
$
479
$
743
(35.5
)
$
1,726
$
2,224
(22.4
)
Distribution Revenue
704
616
+14.3
2,727
2,571
+6.1
Digital Revenue
106
112
(5.4
)
395
365
+8.2
Other Revenue
15
16
(6.3
)
85
51
+66.7
Net Revenue
$
1,304
$
1,487
(12.3
)
$
4,933
$
5,211
(5.3
)
Income from Operations
$
230
$
294
(21.8
)
$
708
$
1,312
(46.0
)
Net Income
$
100
$
178
(43.8
)
$
270
$
943
(71.4
)
Adjusted EBITDA(2), (3)
$
411
$
598
(31.3
)
$
1,469
$
2,223
(33.9
)
Adjusted EBITDA Margin(4)
31.5
%
40.2
%
29.8
%
42.7
%
Attributable Free Cash Flow(2),
(3)
$
265
$
422
(37.2
)
$
847
$
1,502
(43.6
)
NEXSTAR - EXCLUDING THE CW NETWORK, LLC
(“Nexstar, Ex-The CW”)(1)
Net Revenue
$
1,261
$
1,425
(11.5
)
$
4,710
$
5,149
(8.5
)
Adjusted EBITDA(2), (3)
$
461
$
662
(30.4
)
$
1,726
$
2,287
(24.5
)
Adjusted EBITDA Margin(4)
36.6
%
46.5
%
36.6
%
44.4
%
Free Cash Flow(2), (3)
$
295
$
458
(35.6
)
$
1,000
$
1,538
(35.0
)
- On September 30, 2022, Nexstar completed its acquisition of a
75% ownership interest in The CW Network, LLC (“The CW”). Nexstar –
Consolidated refers to all of the Company’s operations while
Nexstar, Ex-The CW refers to the Consolidated results without The
CW operations and eliminations. Management believes this
presentation to be useful to investors as an indicator of our
assets’ operating performance as we are undertaking initiatives to
improve the profitability of The CW. See the “Definitions and
Disclosures Regarding Non-GAAP Financial Information” section of
this press release for more information.
- Definitions and disclosures regarding non-GAAP financial
information including reconciliations are included at the end of
the press release.
- For the year ended December 31, 2023, these metrics exclude the
portion of our distribution from Television Food Network, G.P. (“TV
Food Network”) related to the net proceeds of an accounts
receivable securitization.
- Adjusted EBITDA margin is Adjusted EBITDA as a percentage of
net revenue.
CEO Comment
Perry A. Sook, Nexstar’s Chairman and Chief Executive Officer,
commented, “Nexstar’s fourth quarter financial results outperformed
consensus expectations in key financial metrics including Adjusted
EBITDA and Attributable Free Cash Flow. Our 2023 results extend
Nexstar’s long record of consistently generating substantial free
cash flow, and we expect that trend to continue. To that end, in
January we announced an increase in our annual dividend by 25%, our
thirteenth consecutive increase.
“The power of the broadcast model and its ability to reach the
largest audience of any medium with important news, sports and
entertainment content is as strong as ever, reflected by the record
audience delivery for NFL and Super Bowl, Grammys and other live
sports and event programming. Validating the enduring strength,
reach and appeal of broadcast, during the fourth quarter we
successfully completed all of our remaining distribution
negotiations without interruption, as our distribution partners,
their customers and our audience value the highest-rated broadcast
and fastest-growing cable news network programming we provide. The
completion of these and other recent distribution agreements
provide solid visibility for our distribution revenues in 2024 and
beyond. As we move into 2024, an election year, we look forward to
once again demonstrating the value of broadcast television to
candidates and campaigns looking to communicate to the electorate
through political advertising on television.
“Our strong financial track record supports our commitment to
shareholder returns and the enhancement of shareholder value. On
average, for the 2022/2023 cycle, Nexstar generated $1.8 billion of
Adjusted EBITDA and $1.2 billion of Attributable Free Cash Flow.
Over that time frame, we returned an average of $910 million each
year to shareholders in the form of dividends and share
repurchases, representing approximately 77% of our average
Attributable Free Cash Flow. We expect to continue to use our cash
flow to maximize shareholder returns.”
Fourth Quarter and Full Year 2023 Operational
Highlights
- Successfully renewed distribution agreements representing more
than 40% of our subscriber base on terms favorable to the Company,
positioning Nexstar to deliver further annual distribution revenue
growth.
- Renewed and extended multi-year affiliation agreements with the
Fox Network, MyNetworkTV and The CW Network.
- Launched CW Network affiliations on Nexstar owned and operated
television stations in five markets, including three of the
nation’s top-15 television markets, bringing the number of Nexstar
and partner-owned CW affiliates to 45, covering more than 39% of
U.S. TV Households.
- Expanded and extended CW Network affiliation agreements with
several broadcast affiliate partners.
- Secured or extended exclusive broadcast rights for The CW
Network to WWE NXT, LIV Golf, Atlantic Coast Conference (ACC)
college football and basketball games, and NASCAR Xfinity
Series.
- NewsNation marked a major cable news milestone by becoming a
24/5 news network and remains America’s fastest growing cable news
network in primetime.
- NewsNation hosted the final GOP Presidential primary debate
before the Iowa caucuses, which was simulcast on The CW. The event
delivered more than 4 million combined viewers with NewsNation
garnering the largest audience in its three-year history, and the
CW simulcast representing the most watched primetime program on the
network since 2018.
- Completed first upfront as a consolidated entity for all
Nexstar national properties including NewsNation, The CW, Antenna
TV, and The Hill adding 47 new advertisers across these
platforms.
- Led the industry in deployment of ATSC 3.0, or NextGen TV, with
more than 58 million U.S. television households now receiving a
NextGen TV signal from a Nexstar-owned or partner station.
- Closed the acquisitions of KUSI-TV, an independent station and
local news powerhouse in San Diego, CA, the nation’s 30th largest
television market, and WSNN-LD, a MyNetworkTV affiliated low power
television station serving the Tampa, FL market.
Fourth Quarter 2023 Financial Highlights
- Fourth quarter net revenue of $1.3 billion compared to $1.5
billion in the prior year quarter.
- The net revenue comparison primarily reflects the
year-over-year decline in cyclical political advertising, offset,
in part, by growth in our distribution revenue.
- Excluding political advertising revenue, net revenue increased
4.3% year-over-year.
- Approximately 55% of Nexstar’s fourth quarter revenue was
generated by distribution and other revenue streams.
- Fourth quarter core advertising revenue of approximately $449
million decreased 5.9% year-over-year.
- Core television advertising was impacted by continued softness
in the advertising market.
- Fourth quarter political advertising revenue of approximately
$30 million compared to $266 million in the prior year.
- The reduction in political television advertising was due to
the lack of material election activity in odd years.
- Record fourth quarter distribution revenue of approximately
$704 million increased 14.3% versus prior year.
- Distribution revenue growth was driven by the renewal of the
substantial majority of our distribution agreements in 2022 and
2023 on improved terms and annual rate escalators, as well as
growth in virtual MVPD revenue, offset, in part, by continued MVPD
subscriber attrition and the removal of partner stations from
certain MVPDs.
- Fourth quarter digital revenue of approximately $106 million
decreased 5.4% year-over-year.
- Digital revenue was primarily impacted by weakness in national
digital advertising, partially offset by year-over-year increases
in Nexstar’s local digital advertising revenue and agency services
business and ecommerce.
- On a consolidated basis, fourth quarter Adjusted EBITDA was
$411 million, representing a 31.5% margin, and fourth quarter
attributable free cash flow was $265 million.
- Fourth quarter Adjusted EBITDA was primarily impacted by the
reduction in net revenue year-over-year.
- Excluding The CW Network, fourth quarter Adjusted EBITDA was
$461 million.
- In the fourth quarter of 2023, the Company used cash on hand
and cash flow from operations to:
- Return $137 million to shareholders through the repurchase of
629,469 shares of Nexstar’s common stock at an average price of
approximately $145.13 per share for a total of $91 million
(excluding $5 million that was used to repurchase stock in
September and settled in October), and quarterly cash dividend
payments of $46 million;
- Reduce debt by approximately $32 million.
Debt and Leverage Review
- The consolidated debt of Nexstar and Mission Broadcasting, Inc.
(“Mission”), an independently owned variable interest entity, at
December 31, 2023 was $6.84 billion, including senior secured debt
of $4.13 billion.
- The Company calculates its leverage ratios in accordance with
the terms of its credit agreements which ratios only include
Nexstar, excluding The CW Network’s operations and cash balance. As
of December 31, 2023, The CW Network had $52 million of cash on its
balance sheet.
- The Company’s first lien net leverage ratio at December 31,
2023 was 2.25x compared to a covenant of 4.25x.
- The Company’s total net leverage ratio at December 31, 2023 was
3.76x.
The table below summarizes the Company’s debt obligations (net
of financing costs, discounts and/or premiums).
($ in millions)
December 31, 2023
December 31, 2022
Revolving Credit Facilities
$
62
$
62
First Lien Term Loans
4,064
4,178
5.625% Senior Unsecured Notes due 2027
1,717
1,718
4.75% Senior Unsecured Notes due 2028
994
993
Total Outstanding Debt
$
6,837
$
6,951
Unrestricted Cash
$
135
$
204
Full-Year 2024 Guidance
Based on our current outlook, we are establishing guidance for
fiscal 2024 Adjusted EBITDA in a range of $2.085 billion to $2.195
billion.
Key factors differing from our current expectations could affect
our outlook for Adjusted EBITDA for 2024 either positively or
negatively. Those factors include, among other things, the amount
of political fundraising and spend on television advertising in our
markets, the rate of growth or attrition of pay television
subscribers, the health of the local and national advertising
markets, the ability to renegotiate affiliation agreements on
favorable terms, and the level of distributions related to our
31.3% ownership stake in TV Food Network.
Fourth Quarter Conference Call
Nexstar will host a conference call at 10:00 a.m. ET today.
Senior management will discuss the financial results and host a
question-and-answer session. The dial in number for the audio
conference call is +1 877-407-9208 or +1 201-493-6784, conference
ID 13743674 (domestic and international callers). Participants can
also listen to a live webcast of the call through the “Events and
Presentations” section under “Investor Relations” on Nexstar’s
website at nexstar.tv. A webcast replay will be available for 90
days following the live event at nexstar.tv.
Definitions and Disclosures Regarding non-GAAP Financial
Information
Nexstar Media Inc., a wholly-owned subsidiary of the Company,
acquired a 75% ownership interest in The CW on September 30, 2022
and designated The CW as an “Unrestricted Subsidiary” as permitted
under the terms of its debt agreements. The financial results for
The CW are included in the financial presentation herein from that
date forward. The financial results of The CW, the Company’s only
Unrestricted Subsidiary, and associated eliminations are excluded
from the calculation of the Company’s leverage ratio for purposes
of compliance with its financial covenant.
Adjusted EBITDA is calculated as net income, plus interest
expense (net), loss on extinguishment of debt, income tax expense
(benefit), depreciation and amortization expense (excluding
amortization of broadcast rights for The CW), (gain) loss on asset
disposal, transaction and other one-time expenses, impairment
charges, (income) loss from equity method investments,
distributions from equity method investments and other expense
(income), minus reimbursement from the FCC related to station
repack and broadcast rights payments (excluding broadcast rights
payments for The CW). We consider Adjusted EBITDA to be an
indicator of our assets’ operating performance and a measure of our
ability to service debt. It is also used by management to identify
the cash available for strategic acquisitions and investments,
maintain capital assets and fund ongoing operations and working
capital needs. We also believe that Adjusted EBITDA is useful to
investors and lenders as a measure of valuation.
Adjusted EBITDA for Nexstar - Excluding The CW Network, LLC is
calculated as Consolidated Adjusted EBITDA, less the Adjusted
EBITDA of The CW and Eliminations.
Free cash flow is calculated as net income, plus interest
expense (net), loss on extinguishment of debt, income tax expense
(benefit), depreciation and amortization expense (excluding
amortization of broadcast rights for The CW), stock-based
compensation expense, (gain) loss on asset disposal, transaction
and other one-time expenses, impairment charges, (income) loss from
equity method investments, distributions from equity method
investments and other expense (income), minus payments for
broadcast rights (excluding broadcast rights payments for The CW),
cash interest expense, capital expenditures, proceeds from disposal
of assets and insurance recoveries, and operating cash income tax
payments. We consider Free Cash Flow to be an indicator of our
assets’ operating performance. In addition, this measure is useful
to investors because it is frequently used by industry analysts,
investors and lenders as a measure of valuation for broadcast
companies, although their definitions of Free Cash Flow may differ
from our definition.
Attributable Free Cash Flow is calculated as Consolidated Free
Cash Flow, less free cash flow of The CW attributable to its
noncontrolling interests.
Free Cash Flow for Nexstar - Excluding The CW Network, LLC is
calculated as Consolidated Free Cash Flow, less the free cash flow
of The CW and Eliminations.
For a reconciliation of these non-GAAP financial measurements to
the GAAP financial results cited in this news announcement, please
see the supplemental tables at the end of this release.
With respect to our forward-looking guidance, no reconciliation
between a non-GAAP measure to the closest corresponding GAAP
measure is included in this release because we are unable to
quantify certain amounts that would be required to be included in
the GAAP measure without unreasonable efforts. We believe such
reconciliations would imply a degree of precision that would be
confusing or misleading to investors. In particular, a
reconciliation of forward-looking Free Cash Flow to the closest
corresponding GAAP measure is not available without unreasonable
efforts on a forward-looking basis due to the high variability,
complexity and low visibility with respect to the charges excluded
from these non-GAAP measures. For example, the definition of Free
Cash Flow excludes stock-based compensation expenses specific to
equity compensation awards that are directly impacted by
unpredictable fluctuations in our stock price. In addition, the
definition of Free Cash Flow excludes the impact of non-recurring
or unusual items such as impairment charges, transaction-related
costs and gains or losses on sales of assets which are
unpredictable. We expect the variability of these items to have a
significant, and potentially unpredictable, impact on our future
GAAP financial results.
About Nexstar Media Group, Inc.
Nexstar Media Group, Inc. (NASDAQ: NXST) is a leading
diversified media company that produces and distributes engaging
local and national news, sports and entertainment content across
its television and digital platforms, including more than 310,000
hours of programming produced annually by its business units.
Nexstar owns America’s largest local television broadcasting group
comprised of top network affiliates, with over 200 owned or partner
stations in 117 U.S. markets reaching 220 million people. Nexstar’s
national television properties include The CW, America’s fifth
major broadcast network, NewsNation, America’s fastest-growing
national cable news network, popular entertainment multicast
networks Antenna TV and Rewind TV, and a 31.3% ownership stake in
TV Food Network. The Company’s portfolio of digital assets,
including its local TV station websites, The Hill and
NewsNationNow.com, are collectively a Top 10 U.S. digital news and
information property. For more information, please visit
nexstar.tv.
Forward-Looking Statements
This communication 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, Nexstar 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 communication,
concerning, among other things, future financial performance,
including changes in net revenue, operating expenses and cash flow,
involve risks and uncertainties, and are subject to change based on
various important factors, including the impact of changes in
national and regional economies, the ability to service and
refinance our outstanding debt, successful integration of business
acquisitions (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, volatility in programming costs,
the effects of governmental regulation of broadcasting, industry
consolidation, technological developments and major world news
events. Nexstar undertakes 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
communication 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 Nexstar’s other filings with the
Securities and Exchange Commission.
Nexstar Media Group,
Inc.
Consolidated Statements of
Operations and Comprehensive Income
(in millions, except for share
and per share amounts, unaudited)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Net revenue
$
1,304
$
1,487
$
4,933
$
5,211
Operating expenses (income):
Direct operating
540
502
2,153
2,005
Selling, general and administrative
244
278
903
904
Corporate
45
49
193
198
Depreciation and amortization
210
231
941
662
Goodwill and long-lived asset
impairments
35
133
35
133
Other
-
-
-
(3
)
Total operating expenses
1,074
1,193
4,225
3,899
Income from operations
230
294
708
1,312
Gain on bargain purchase
-
2
-
56
Income from equity method investments,
net
23
43
104
153
Interest expense, net
(115
)
(103
)
(447
)
(337
)
Pension and other postretirement plans
credit, net
9
10
36
43
Other expenses, net
-
-
-
(10
)
Income before income taxes
147
246
401
1,217
Income tax expense
(47
)
(68
)
(131
)
(274
)
Net income
100
178
270
943
Net loss attributable to noncontrolling
interests
15
25
76
28
Net income attributable to Nexstar Media
Group, Inc.
$
115
$
203
$
346
$
971
Net income per common share attributable
to Nexstar Media Group, Inc.:
Basic
$
3.36
$
5.42
$
9.78
$
24.68
Diluted
$
3.32
$
5.30
$
9.64
$
24.16
Weighted average number of common shares
outstanding:
Basic (in thousands)
33,869
37,523
35,317
39,349
Diluted (in thousands)
34,244
38,320
35,834
40,187
Net income
$
100
$
178
$
270
$
943
Other comprehensive loss:
Change in unrecognized amounts included in
pension and other postretirement benefit obligations, net of tax
benefit of $9 in 2023 and $39 in 2022
(26
)
(114
)
(26
)
(114
)
Total comprehensive income
74
64
244
829
Total comprehensive loss attributable to
noncontrolling interests
15
25
76
28
Total comprehensive income attributable to
Nexstar Media Group, Inc.
$
89
$
89
$
320
$
857
Nexstar Media Group,
Inc.
Reconciliation of Adjusted
EBITDA (Non-GAAP Measure)
($ in millions, unaudited)
Three Months Ended December
31, 2023
Three Months Ended December
31, 2022
Adjusted EBITDA:
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Net income (loss)
$
152
$
(52
)
$
-
$
100
$
272
$
(94
)
$
-
$
178
Add (Less):
Interest expense (income), net
116
(1
)
-
115
104
(1
)
-
103
Income tax expense
47
-
-
47
68
-
-
68
Depreciation and amortization
expense(1)
138
2
-
140
140
1
-
141
Stock-based compensation expense
16
-
-
16
18
-
-
18
Loss on asset disposal and operating lease
terminations, net
1
-
-
1
3
-
-
3
Transaction and other one-time
expenses
1
1
-
2
-
30
-
30
Goodwill and long-lived asset
impairments
35
-
-
35
133
-
-
133
Income from equity method investments,
net
(23
)
-
-
(23
)
(43
)
-
-
(43
)
Distributions from equity method
investments
12
-
-
12
15
-
-
15
Pension and other postretirement plans
credit, net
(9
)
-
-
(9
)
(10
)
-
-
(10
)
Gain on bargain purchase
-
-
-
-
(2
)
-
-
(2
)
Payments for broadcast rights(1)
(18
)
-
-
(18
)
(28
)
-
-
(28
)
Adjusted EBITDA before transaction,
one-time and other non-cash items
468
(50
)
-
418
670
(64
)
-
606
Margin %
37.1
%
(90.9
%)
-
32.1
%
47.0
%
(97.0
%)
-
40.8
%
Less: Transaction and other one-time
expenses
(1
)
(1
)
-
(2
)
-
(30
)
-
(30
)
Adjusted EBITDA before non-cash and other
items
467
(51
)
-
416
670
(94
)
-
576
Margin %
37.0
%
(92.7
%)
-
31.9
%
47.0
%
(142.4
%)
-
38.7
%
Add (Less):
Stock-based compensation expense
(16
)
-
-
(16
)
(18
)
-
-
(18
)
Pension and other postretirement plans
credit, net
9
-
-
9
10
-
-
10
Transaction and other one-time
expenses
1
1
-
2
-
30
-
30
Adjusted EBITDA
$
461
$
(50
)
$
-
$
411
$
662
$
(64
)
$
-
$
598
Margin %
36.6
%
(90.9
%)
-
31.5
%
46.5
%
(97.0
%)
-
40.2
%
Net revenue
$
1,261
$
55
$
(12
)
$
1,304
$
1,425
$
66
$
(4
)
$
1,487
- Only the columns including The CW do not adjust for
amortization of broadcast rights (already deducted from Net Income)
and payments for broadcast rights (i.e. programming payments).
Amortization of broadcast rights for The CW includes licenses for
original entertainment and sports programming which match timing of
revenues.
Nexstar Media Group,
Inc.
Reconciliation of Adjusted
EBITDA (Non-GAAP Measure)
($ in millions, unaudited)
Year Ended December 31,
2023
Year Ended December 31,
2022
Adjusted EBITDA:
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Net income (loss)
$
543
$
(273
)
$
-
$
270
$
1,037
$
(94
)
$
-
$
943
Add (Less):
Interest expense (income), net
450
(3
)
-
447
338
(1
)
-
337
Income tax expense
131
-
-
131
274
-
-
274
Depreciation and amortization
expense(1)
558
6
-
564
571
1
-
572
Stock-based compensation expense
60
-
-
60
62
-
-
62
Loss (gain) on asset disposal and
operating lease terminations, net
(2
)
-
-
(2
)
4
-
-
4
Transaction and other one-time
expenses
2
13
-
15
7
30
-
37
Goodwill and long-lived asset
impairments
35
-
-
35
133
-
-
133
Income from equity method investments,
net
(104
)
-
-
(104
)
(153
)
-
-
(153
)
Distributions from equity method
investments(2)
201
-
-
201
250
-
-
250
Pension and other postretirement plans
credit, net
(36
)
-
-
(36
)
(43
)
-
-
(43
)
Other non-operating expenses, net
-
-
-
-
11
-
-
11
Gain on bargain purchase
-
-
-
-
(56
)
-
-
(56
)
Reimbursement from the FCC related to
station repack
-
-
-
-
(3
)
-
-
(3
)
Payments for broadcast rights(1)
(88
)
-
-
(88
)
(126
)
-
-
(126
)
Adjusted EBITDA before transaction,
one-time and other non-cash items
1,750
(257
)
-
1,493
2,306
(64
)
-
2,242
Margin %
37.2
%
(102.8
%)
-
30.3
%
44.8
%
(97.0
%)
-
43.0
%
Less: Transaction and other one-time
expenses
(2
)
(13
)
-
(15
)
(7
)
(30
)
-
(37
)
Adjusted EBITDA before non-cash and other
items
1,748
(270
)
-
1,478
2,299
(94
)
-
2,205
Margin %
37.1
%
(108.0
%)
-
30.0
%
44.6
%
(142.4
%)
-
42.3
%
Add (Less):
Stock-based compensation expense
(60
)
-
-
(60
)
(62
)
-
-
(62
)
Pension and other postretirement plans
credit, net
36
-
-
36
43
-
-
43
Transaction and other one-time
expenses
2
13
-
15
7
30
-
37
Adjusted EBITDA
$
1,726
$
(257
)
$
-
$
1,469
$
2,287
$
(64
)
$
-
$
2,223
Margin %
36.6
%
(102.8
%)
-
29.8
%
44.4
%
(97.0
%)
-
42.7
%
Net revenue
$
4,710
$
250
$
(27
)
$
4,933
$
5,149
$
66
$
(4
)
$
5,211
_____________________
- Only the columns including The CW do not adjust for
amortization of broadcast rights (already deducted from Net Income)
and payments for broadcast rights (i.e. programming payments).
Amortization of broadcast rights for The CW licenses original
programming, the programming payments precede the airing of the
content as the content is being produced. Because these licenses
are typically only on a season-by-season basis, The CW does not
adjust for these timing differences.
- Excludes Q1 2023 distribution received from our investment in
TV Food Network LLC of $69 million related to its accounts
receivable securitization program.
Nexstar Media Group,
Inc.
Reconciliation of Free Cash
Flow (Non-GAAP Measure)
($ in millions, unaudited)
Three Months Ended December
31, 2023
Three Months Ended December
31, 2022
Free Cash Flow:
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Net income (loss)
$
152
$
(52
)
$
-
$
100
$
272
$
(94
)
$
-
$
178
Add (Less):
Interest expense (income), net
116
(1
)
-
115
104
(1
)
-
103
Income tax expense
47
-
-
47
68
-
-
68
Depreciation and amortization
expense(1)
138
2
-
140
140
1
-
141
Stock-based compensation expense
16
-
-
16
18
-
-
18
Loss on asset disposal and operating lease
terminations, net
1
-
-
1
3
-
-
3
Transaction and other one-time
expenses
1
1
-
2
-
30
-
30
Goodwill and long-lived asset
impairments
35
-
-
35
133
-
-
133
Income from equity method investments,
net
(23
)
-
-
(23
)
(43
)
-
-
(43
)
Distributions from equity method
investments
12
-
-
12
15
-
-
15
Pension and other postretirement plans
credit, net
(9
)
-
-
(9
)
(10
)
-
-
(10
)
Gain on bargain purchase
-
-
-
-
(2
)
-
-
(2
)
Payments for broadcast rights(1)
(18
)
-
-
(18
)
(28
)
-
-
(28
)
Cash interest expense
(113
)
-
-
(113
)
(101
)
1
-
(100
)
Capital expenditures, excluding station
repack and CVR spectrum
(33
)
(3
)
-
(36
)
(56
)
(1
)
-
(57
)
Operating cash income tax (payments)
benefit, net(2)
(36
)
-
10
(26
)
(65
)
-
12
(53
)
Free cash flow before transaction,
one-time and other non-cash items
286
(53
)
10
243
448
(64
)
12
396
Less: Transaction and other one-time
expenses
(1
)
(1
)
-
(2
)
-
(30
)
-
(30
)
Free cash flow before non-cash and other
items
285
(54
)
10
241
448
(94
)
12
366
Add: Pension and other postretirement
plans credit, net
9
-
-
9
10
-
-
10
Transaction and other one-time
expenses
1
1
-
2
-
30
-
30
Free cash flow
$
295
$
(53
)
$
10
$
252
$
458
$
(64
)
$
12
$
406
Less: Free cash flow attributable to
noncontrolling interests
-
(13
)
-
(13
)
-
(16
)
-
(16
)
Attributable free cash flow(3)
$
295
$
(40
)
$
10
$
265
$
458
$
(48
)
$
12
$
422
_____________________
- Only the columns including The CW do not adjust for
amortization of broadcast rights (already deducted from Net Income)
and payments for broadcast rights (i.e. programming payments).
Amortization of broadcast rights for The CW includes licenses for
original entertainment and sports programming which match timing of
revenues.
- The estimated cash income tax benefit from The CW’s operating
results was included in the elimination and other and consolidated
columns, but were excluded from the Nexstar, Ex-The CW
columns.
- The CW columns reflect the Company’s 75% ownership interest in
The CW multiplied by The CW’s pre-tax free cash flow; The Nexstar,
Ex-The CW columns reflect 100% of the Company’s free cash flow, as
defined.
Nexstar Media Group,
Inc.
Reconciliation of Free Cash
Flow (Non-GAAP Measure)
($ in millions, unaudited)
Year Ended December 31,
2023
Year Ended December 31,
2022
Free Cash Flow:
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Nexstar, Ex- The CW
The CW
Eliminations and Other
Consolidated
Net income (loss)
$
543
$
(273
)
$
-
$
270
$
1,037
$
(94
)
$
-
$
943
Add (Less):
Interest expense (income), net
450
(3
)
-
447
338
(1
)
-
337
Income tax expense
131
-
-
131
274
-
-
274
Depreciation and amortization
expense(1)
558
6
-
564
571
1
-
572
Stock-based compensation expense
60
-
-
60
62
-
-
62
Gain (loss) on asset disposal and
operating lease terminations, net
(2
)
-
-
(2
)
4
-
-
4
Transaction and other one-time
expenses
2
13
-
15
7
30
-
37
Goodwill and long-lived asset
impairments
35
-
-
35
133
-
-
133
Income from equity method investments,
net
(104
)
-
-
(104
)
(153
)
-
-
(153
)
Distributions from equity method
investments(2)
201
-
-
201
250
-
-
250
Pension and other postretirement plans
credit, net
(36
)
-
-
(36
)
(43
)
-
-
(43
)
Other non-operating expenses, net
-
-
-
-
11
-
-
11
Gain on bargain purchase
-
-
-
-
(56
)
-
-
(56
)
Payments for broadcast rights(1)
(88
)
-
-
(88
)
(126
)
-
-
(126
)
Cash interest expense
(439
)
-
-
(439
)
(325
)
1
-
(324
)
Capital expenditures, excluding station
repack and CVR spectrum
(141
)
(8
)
-
(149
)
(155
)
(1
)
-
(156
)
Capital expenditures related to station
repack
-
-
-
-
(1
)
-
-
(1
)
Proceeds from disposal of assets and
insurance recoveries(3)
8
-
-
8
1
-
-
1
Operating cash income tax (payments)
benefit, net(4)(5)
(214
)
-
46
(168
)
(334
)
-
12
(322
)
Free cash flow before transaction,
one-time and other non-cash items
964
(265
)
46
745
1,495
(64
)
12
1,443
Less: Transaction and other one-time
expenses
(2
)
(13
)
-
(15
)
(7
)
(30
)
-
(37
)
Free cash flow before non-cash and other
items
962
(278
)
46
730
1,488
(94
)
12
1,406
Add: Pension and other postretirement
plans credit, net
36
-
-
36
43
-
-
43
Transaction and other one-time
expenses
2
13
-
15
7
30
-
37
Free cash flow
$
1,000
$
(265
)
$
46
$
781
$
1,538
$
(64
)
$
12
$
1,486
Less: Free cash flow attributable to
noncontrolling interests
-
(66
)
-
(66
)
-
(16
)
-
(16
)
Attributable free cash flow(6)
$
1,000
$
(199
)
$
46
$
847
$
1,538
$
(48
)
$
12
$
1,502
_____________________
- Only the columns including The CW do not adjust for
amortization of broadcast rights (already deducted from Net Income)
and payments for broadcast rights (i.e. programming payments).
Amortization of broadcast rights for The CW includes licenses for
original entertainment and sports programming which match timing of
revenues.
- Excludes Q1 2023 distribution received from our investment in
TV Food Network LLC of $69 million related to its accounts
receivable securitization program.
- Excludes (i) proceeds from the sale of certain real estate
property of $193 million during Q4 2022 ($199 million in total
including $3 million deposits received each in 2022 and 2021) and
(ii) proceeds from the sale of certain real estate property of $40
million during Q2 2022 ($45 million in total including deposits
received in 2022 of $4 million).
- Nexstar, Ex-The CW excludes tax payments related to the sale of
certain real estate properties of $5 million in Q3 2022 and $43
million in Q4 2022.
- The estimated cash income tax benefit from The CW’s operating
results was included in the elimination and other and consolidated
columns, but were excluded from the Nexstar, Ex-The CW
columns.
- The CW columns reflect the Company’s 75% ownership interest in
The CW multiplied by The CW’s pre-tax free cash flow; The Nexstar,
Ex-The CW columns reflect 100% of the Company’s free cash flow, as
defined.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228637326/en/
Investor Contacts: Lee Ann Gliha Executive Vice President
and Chief Financial Officer Nexstar Media Group, Inc.
972/373-8800
Joe Jaffoni, Jennifer Neuman JCIR 212/835-8500 or
nxst@jcir.com
Media Contact: Gary Weitman EVP and Chief
Communications Officer Nexstar Media Group, Inc. 972/373-8800 or
gweitman@nexstar.tv
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