Attached files
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| 8-K - 2009 10K EARNINGS RELEASE 8K - NEXSTAR MEDIA GROUP, INC. | earningsrelease8k.htm |
Exhibit
99.1
NEWS
ANNOUNCEMENT FOR IMMEDIATE
RELEASE
NEXSTAR
BROADCASTING REPORTS FOURTH QUARTER NET REVENUE OF $74.0 MILLION REFLECTING
GROWTH IN CORE AD REVENUE, RETRANSMISSION, E-MEDIA AND MANAGEMENT FEE
REVENUE
-
Net Revenue Excluding Political Rises 11.1% to $70.8 Million -
-
Fourth Quarter Operating Income Increases to $14.1 Million;
Free
Cash Flow Rises to $13.1 Million -
Irving,
TX – March 9, 2010 - Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) today
reported financial results for the fourth quarter ended December 31,
2009.
Summary
2009 Fourth Quarter Financial Highlights
Fourth
Quarter Revenue Comparisons
|
($
in millions)
|
Three
Months Ended December 31,
|
|||||||||||
|
2009
|
2008
|
Change
|
||||||||||
|
Local
Revenue
|
$ | 44.0 | $ | 41.6 | +5.9 | % | ||||||
|
National
Revenue
|
$ | 17.5 | $ | 15.8 | +10.5 | % | ||||||
|
Core
Revenue (local and national)
|
$ | 61.5 | $ | 57.4 | +7.2 | % | ||||||
|
Political
Revenue
|
$ | 3.7 | $ | 19.5 | (81.1 | )% | ||||||
|
e-MEDIA
Revenue
|
$ | 3.4 | $ | 2.8 | +19.6 | % | ||||||
|
Retransmission
Consent Fee Revenue
|
$ | 6.4 | $ | 3.9 | +62.0 | % | ||||||
|
Management
Fee Revenue
|
$ | 0.7 | $ | 0.0 | - | |||||||
|
Trade,
Barter and Other Revenue
|
$ | 6.6 | $ | 6.8 | (1.4 | )% | ||||||
|
Gross
Revenue
|
$ | 82.3 | $ | 90.4 | (8.9 | )% | ||||||
|
Net
Revenue
|
$ | 74.0 | $ | 80.3 | (7.9 | )% | ||||||
|
Net
Revenue Excluding Political
|
$ | 70.8 | $ | 63.8 | +11.1 | % | ||||||
Nexstar
reported income from operations for the three months ended December 31, 2009 of
$14.1 million, compared with a $17.5 million operating loss in the quarter ended
December 31, 2008, which included a $33.9 million impairment
charge. Broadcast cash flow totaled $28.8 million in the fourth
quarter of 2009 compared with $34.7 million for the same period in
2008. Adjusted EBITDA totaled $24.7 million for the fourth quarter of
2009, compared with $30.3 million in the fourth quarter of 2008. Free
cash flow in the quarter ended December 31, 2009 was $13.1 million, compared
with $7.4 million in the comparable period of 2008.
-more-
Nexstar Broadcasting Group Q4 2009
Results, 3/9/10 page 2
CEO
Comment
Perry A.
Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting
Group, Inc., commented, “Highlighting the benefits of our revenue
diversification initiatives, Nexstar generated strong fourth quarter financial
results despite the cyclical impact of significantly lower political
advertising. With the improving economy and the successful execution
of our new business development strategies, Nexstar generated a 6%
year-over-year increase in non political gross local spot revenue and an 11%
rise in non political gross national spot revenue. Of note,
automotive related advertising rose on a quarterly sequential basis throughout
2009 and in the fourth quarter improved by over 25% compared with the third
quarter. Although fourth quarter automotive advertising revenue
declined 7.7% from last year’s levels, Nexstar generated an overall increase in
billings from its top ten advertising categories in the 2009 fourth
quarter.
“Reflecting
further success in leveraging our core television operations into new revenue
streams, these gains were complemented by continued significant double digit
growth in fourth quarter retransmission consent fee revenue which rose 62.0% to
$6.4 million while e-MEDIA revenues rose 19.6% to $3.4 million, a record level
of quarterly revenue from this source. In a year when the majority of
our broadcast TV peers experienced new media revenue declines, the continued
outsized growth of our e-Media platform again validates our differentiated
approach to this business. The 2009 fourth quarter represents our
thirteenth consecutive period of revenue growth from Nexstar’s community web
portal strategy and 2009 e-MEDIA revenue posted a very solid 15% gain over
2008. In addition to the significant year-over year revenue growth
from these sources, Nexstar also recorded approximately $0.7 million of
management fee revenue in the 2009 fourth quarter.
“With our
focus throughout 2009 on expense management, total fourth quarter 2009 operating
expenses declined approximately 6.3% from the same period last year when
excluding the impairment charge. Free cash flow of $13.1 million in
the fourth quarter of 2009, a 78.1% rise over last year, benefited from reduced
capital expenditures related to the completion of digital television conversion
spending and a reduction in cash interest expense.
“We
believe our fourth quarter results provide strong evidence that we continue to
be an industry leader in generating increases in core advertising activity, an
important industry metric, and this trend is extending into 2010 and
will be reflected in the first quarter results and throughout the
year. With the ad environment improving and auto advertising
increasing, Nexstar expects a return to growth in 2010. Operating results will
benefit from increases in overall advertiser spending, the strength of the Super
Bowl and Olympic broadcasts, significant political revenue and continued growth
of revenue derived from retransmission agreements, e-MEDIA, and management
fees. In addition, with Nexstar’s de-leveraging initiatives,
streamlined operating and cost structure and limited 2010 cap-ex commitments, we
have substantial operating leverage in our model and are confident that Nexstar
is well positioned to generate significant free cash flow in 2010 which will be
deployed for debt reduction and new value creating initiatives.”
-more-
Nexstar Broadcasting Group Q4 2009
Results, 3/9/10 page 3
Outstanding
Debt
The
Company’s total debt at December 31, 2009 was $670.4 million. As
defined in the Company’s credit agreement, consolidated total net debt was
$495.7 at December 31, 2009. This excludes approximately $132.3
million of senior subordinated 7% PIK notes as well as approximately $42.4
million of senior subordinated 12% PIK notes. As defined in the
Company’s credit agreement, the Company’s total leverage ratio at December 31,
2009 was 6.8x compared to a total permitted leverage covenant of
8.75x.
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
703/639-1212 (domestic and international callers); no access code is
needed. In addition, a live audio webcast of the call will be
accessible to the public on Nexstar’s web site, www.nexstar.tv and a
recording of the webcast will be archived on the site for 90 days following the
live event.
Definitions
and Disclosures Regarding non-GAAP Financial Information
Broadcast
cash flow is calculated as income from operations, plus corporate expenses,
depreciation, amortization of intangible assets and broadcast rights (excluding
barter), non-cash contract termination fees, non-cash impairment charges, loss
(gain) on asset exchange and loss (gain) on asset disposal, net, minus broadcast
rights payments.
Adjusted
EBITDA is calculated as broadcast cash flow less corporate
expenses.
Free cash
flow is calculated as income from operations plus depreciation, amortization of
intangible assets and broadcast rights (excluding barter), non-cash contract
termination fees, non-cash impairment charges, loss (gain) on asset exchange,
loss (gain) on asset disposal, net, and non-cash stock option expense, less
payments for broadcast rights, cash interest expense, capital expenditures and
net cash income taxes.
Broadcast
cash flow, adjusted EBITDA and free cash flow results are non-GAAP financial
measures. Nexstar believes the presentation of these non-GAAP
measures are useful to investors because they are used by lenders to measure the
Company’s ability to service debt; by industry analysts to determine the market
value of stations and their operating performance; by management to identify the
cash available to service debt, make strategic acquisitions and investments,
maintain capital assets and fund ongoing operations and working capital needs;
and, because they reflect the most up-to-date operating results of the stations
inclusive of pending acquisitions, TBAs or LMAs. Management believes
they also provide an additional basis from which investors can establish
forecasts and valuations for the Company’s business. 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.
-more-
Nexstar Broadcasting Group Q4 2009
Results, page 4
About
Nexstar Broadcasting Group, Inc.
Nexstar
Broadcasting Group currently owns, operates, programs or provides sales and
other services to 62 television stations in 34 markets in the states of
Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana,
Arkansas, Alabama, New York, Rhode Island, Utah and
Florida. Nexstar’s television station group includes affiliates of
NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches approximately 13 million
viewers or approximately 11.5% of all U.S. television households.
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.
Contact:
Thomas E.
Carter Joseph
Jaffoni
Chief
Financial Officer Jaffoni & Collins
Incorporated
Nexstar
Broadcasting Group,
Inc. (212) 835-8500 or nxst@jcir.com
(972)
373-8800
-tables
follow-
Nexstar Broadcasting Group Q4 2009
Results, page 5
Nexstar
Broadcasting Group, Inc.
Condensed
Consolidated Statements of Operations
(in
thousands, except per share amounts)
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Net
revenue
|
$ | 73,960 | $ | 80,314 | $ | 251,979 | $ | 284,919 | ||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Station
direct operating expenses, net of trade (exclusive of depreciation and
amortization shown separately below)
|
17,558 | 18,274 | 70,549 | 72,056 | ||||||||||||
|
Selling,
general, and administrative expenses (exclusive of depreciation and
amortization shown separately below)
|
19,183 | 20,389 | 70,964 | 74,995 | ||||||||||||
|
Restructure
charge
|
- | - | 670 | - | ||||||||||||
|
Non-cash contract
termination fee (1)
|
- | - | 191 | 7,167 | ||||||||||||
|
Impairment
of goodwill and intangible assets (2)
|
- | 33,858 | 16,164 | 82,395 | ||||||||||||
|
Gain
on asset exchange
|
(1,383 | ) | (697 | ) | (8,093 | ) | (4,776 | ) | ||||||||
|
Loss
(gain) on asset disposal, net
|
253 | 254 | (2,560 | ) | (43 | ) | ||||||||||
|
Trade
and barter expense
|
5,906 | 4,839 | 18,699 | 17,936 | ||||||||||||
|
Corporate
expenses
|
4,062 | 4,439 | 18,561 | 15,473 | ||||||||||||
|
Amortization
of broadcast rights, excluding barter
|
2,670 | 2,016 | 13,248 | 8,718 | ||||||||||||
|
Amortization
of intangible assets
|
5,933 | 9,029 | 23,705 | 28,129 | ||||||||||||
|
Depreciation
|
5,677 | 5,374 | 21,680 | 21,024 | ||||||||||||
|
|
||||||||||||||||
|
Total
operating expenses
|
59,859 | 97,775 | 243,778 | 323,074 | ||||||||||||
|
Income
(loss) from operations
|
14,101 | (17,461 | ) | 8,201 | (38,155 | ) | ||||||||||
|
Interest
expense, including amortization of debt financing costs
|
(11,803 | ) | (12,431 | ) | (39,236 | ) | (48,832 | ) | ||||||||
|
Gain
on debt retirement
|
- | 2,897 | 18,567 | 2,897 | ||||||||||||
|
Interest
and other income
|
4 | 89 | 54 | 715 | ||||||||||||
|
Income
(loss) before income taxes
|
2,302 | (26,906 | ) | (12,414 | ) | (83,375 | ) | |||||||||
|
Income
tax (expense) benefit
|
(1,335 | ) | 5,626 | (200 | ) | 5,316 | ||||||||||
|
Net
income (loss)
|
$ | 967 | $ | (21,280 | ) | $ | (12,614 | ) | $ | (78,059 | ) | |||||
|
Basic
and diluted net income (loss) per share
|
$ | 0.03 | $ | (0.75 | ) | $ | (0.44 | ) | $ | (2.75 | ) | |||||
|
Basic
and diluted weighted average number of shares outstanding
|
28,430 | 28,425 | 28,427 | 28,423 | ||||||||||||
|
(1)
|
In
the twelve month periods ended December 31, 2009 and December 31, 2008 the
Company recorded pre-tax, non-cash charges of $0.2 million and $7.2
million, respectively related to a contract
termination.
|
|
(2)
|
In
the three months ended December 31, 2008 the Company recorded a pre-tax,
non-cash impairment charge of $33.9 million related to goodwill, network
affiliation agreements and broadcast licenses. In the twelve
month periods ended December 31, 2009 and December 31, 2008 the Company
recorded pre-tax, non-cash impairment charges of $16.1 million and $82.4
million, respectively related to goodwill, network affiliation agreements
and broadcast licenses.
|
-tables
follow-
Nexstar Broadcasting Group Q4 2009
Results, page 6
Nexstar
Broadcasting Group, Inc.
Reconciliation
Between Actual Consolidated Statements of Operations
and
Broadcast Cash Flow and Adjusted EBITDA (Non-GAAP Measures)
(in
thousands)
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Income
(loss) from operations
|
$ | 14,101 | $ | (17,461 | ) | $ | 8,201 | $ | (38,155 | ) | ||||||
|
Add:
|
||||||||||||||||
|
Depreciation
|
5,677 | 5,374 | 21,680 | 21,024 | ||||||||||||
|
Amortization
of intangible assets
|
5,933 | 9,029 | 23,705 | 28,129 | ||||||||||||
|
Amortization
of broadcast rights, excluding barter
|
2,670 | 2,016 | 13,248 | 8,718 | ||||||||||||
|
Impairment
of goodwill and intangible assets
|
- | 33,858 | 16,164 | 82,395 | ||||||||||||
|
Gain
on asset exchange
|
(1,383 | ) | (697 | ) | (8,093 | ) | (4,776 | ) | ||||||||
|
Loss
(gain) on asset disposal, net
|
253 | 254 | (2,560 | ) | (43 | ) | ||||||||||
|
Corporate
expenses
|
4,062 | 4,439 | 18,561 | 15,473 | ||||||||||||
|
Non-cash
contract termination fees
|
- | - | 191 | 7,167 | ||||||||||||
|
Less:
|
||||||||||||||||
|
Payments
for broadcast rights
|
2,504 | 2,111 | 9,315 | 8,239 | ||||||||||||
|
Broadcast
cash flow
|
$ | 28,809 | $ | 34,701 | $ | 81,782 | $ | 111,693 | ||||||||
|
Less:
|
||||||||||||||||
|
Corporate
expenses
|
4,062 | 4,439 | 18,561 | 15,473 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 24,747 | $ | 30,262 | $ | 63,221 | $ | 96,220 | ||||||||
Nexstar
Broadcasting Group, Inc.
Reconciliation
Between Actual Consolidated Statements of Operations
and
Free Cash Flow (Non-GAAP Measure)
(in
thousands)
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Income
(loss) from operations
|
$ | 14,101 | $ | (17,461 | ) | $ | 8,201 | $ | (38,155 | ) | ||||||
|
Add:
|
||||||||||||||||
|
Depreciation
|
5,677 | 5,374 | 21,680 | 21,024 | ||||||||||||
|
Amortization
of intangible assets
|
5,933 | 9,029 | 23,705 | 28,129 | ||||||||||||
|
Amortization
of broadcast rights, excluding barter
|
2,670 | 2,016 | 13,248 | 8,718 | ||||||||||||
|
Impairment
of goodwill and intangible assets
|
- | 33,858 | 16,164 | 82,395 | ||||||||||||
|
Gain
on asset exchange
|
(1,383 | ) | (697 | ) | (8,093 | ) | (4,776 | ) | ||||||||
|
Loss
(gain) on asset disposal, net
|
253 | 254 | (2,560 | ) | (43 | ) | ||||||||||
|
Non-cash
stock option expense
|
382 | 427 | 1,494 | 2,255 | ||||||||||||
|
Non-cash
contract termination fees
|
- | - | 191 | 7,167 | ||||||||||||
|
Less:
|
||||||||||||||||
|
Payments for broadcast
rights
|
2,504 | 2,111 | 9,315 | 8,239 | ||||||||||||
|
Cash
interest expense
|
7,337 | 10,655 | 25,249 | 41,136 | ||||||||||||
|
Capital
expenditures
|
4,681 | 12,674 | 19,028 | 30,793 | ||||||||||||
|
Cash income taxes, net of
refunds
|
- | - | 523 | 178 | ||||||||||||
|
Free
cash flow
|
$ | 13,111 | $ | 7,360 | $ | 19,915 | $ | 26,368 | ||||||||
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