Nexstar Broadcasting Group Previews Anticipated 2005 Revenue and Expense Levels; Reaffirms 2004 Fourth Quarter Guidance.IRVING, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to -- Nexstar Broadcasting Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : NXST) today reiterated its guidance for the fourth quarter of 2004, as issued on November November: see month. 4, 2004, and introduced financial guidance for the twelve month period ending December 31, 2005. Summary 2004 Fourth-Quarter Outlook Nexstar reiterated its outlook for the three-month period ending December 31, 2004:
Reported 2004 Fourth Quarter Three Months Ended
Estimates (in millions) December 31,
2004 - 2003 - Approximate
Est. actual Change
----------------------------------
Gross political advertising revenue $12.5 - 13.0 $2.2 468.2 - 490.9%
Gross local and national advertising
revenue, excluding political $55.5 - 57.0 $54.5 1.8 - 4.6%
Total gross advertising revenue $68.0 - 70.0 $56.7 19.9 - 23.5%
Total net revenue (1) $66.0 - 68.0 $59.0 11.9 - 15.2%
Station direct operating expenses,
SG&A expenses and cash program
payments $34.0 - 35.0 $33.7 0.8 - 3.9%
Summary 2005 Outlook Nexstar also introduced the following outlook for the twelve-month period ending December 31, 2005:
Reported 2005 Revenue and Expense Twelve Months Ended
Estimates (in millions) December 31,
2005 - Est. 2004 - Est. (2)
------------------------------
Total net revenue (1) $230.0 - 240.0 $241.3 - 243.3
Station direct operating expenses, SG&A
expenses and cash program payments (3) $150.0 - 155.0 $148.8 - 149.8
(1) Total net revenue is the sum of total gross advertising
revenue, network compensation, trade and barter revenue, and other
sources of revenue, less national rep and agency commissions.
(2) 2004 estimate ranges are based on the Company's nine-month
results and fourth quarter guidance as reported on November 4, 2004.
(3) Includes estimated trade and barter expense of approximately
$20.0 million for the December 31, 2005 period and approximately $19.4
million for the December 31, 2004 period.
CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Comment Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, "As expected, in 2005 - a non election, non Olympic year - reported net revenue is anticipated to decline by a low- to mid-single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. percentage amount from 2004. The expected 2005 net revenue levels reflect our belief that political advertising revenue will be approximately $25 million lower than the totals we project for 2004 while core local and national advertising, excluding political, will grow approximately 3.0 - 4.0% year-over-year. Our ability to grow core advertising exclusive of political advertising anticipates improved advertising demand at our television stations next year, as well as the benefit of operating improvements we continue to implement at our stations. "We remain focused on generating free cash flow to reduce debt and strengthen our balance sheet. Approximately 60% of our revenues are derived from recently acquired or developing television stations not yet realizing their revenue potential, and improving their performance will be a top priority for Nexstar in 2005. As always, we will continue to prudently manage station direct operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. while improving the operating efficiency of stations we've recently acquired or to which we've begun providing services. These anticipated cost reductions and improvements are reflected in our 2005 operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. forecast. "At the corporate level, we will also look to reduce the cash obligations under our debt structure by redeeming re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. our 12% senior subordinated notes on or after April 1, 2005, which would generate substantial free cash flow benefits for the Company going forward. Finally, we will continue to pursue the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of certain non-strategic station assets." Additional Expense Detail for Reported 2005 Guidance Corporate expense is projected to be approximately $10.0 - 11.0 million in 2005, representing an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. increase over anticipated 2004 corporate expense levels of approximately $10.0 - 10.5 million. Capital expenditures, including ongoing digital conversion expenditures for its television signals, are expected to be approximately $11.0 - 12.0 million in 2005, compared to estimated annual capital expenditures of $10.0 - 10.5 million for 2004. Estimates for 2004 corporate expense and capital expenditure levels reflect guidance issued by the Company during its 2004 third quarter conference call on November 4, 2004. The Company's financial outlook for the twelve-month period ending December 31, 2005 assumes there will be no new acquisitions or local service agreements entered into during the period. The outlook is subject to, and could be affected by: economic developments, regulatory developments, the timing of any investments, dispositions or other transactions, and major news events, among other circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Reference is made to the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement regarding forward-looking comments at the end of this press release. While the Company may, from time to time, issue updated guidance, it assumes no obligation to do so. Webcast Replay A recording of a webcast in which Nexstar management discussed this guidance and hosted a question and answer session is accessible to the public on the Company's web site, www.nexstar.tv, where it will be archived for approximately 30 days through January 8, 2005. About Nexstar Broadcasting Group, Inc. Nexstar Broadcasting Group, upon completion of all pending transactions, will own, operate, program or provide sales and other services to 46 television stations in 27 markets in the states of Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. , Montana, Texas, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York ,
Louisiana Louisiana (ləwē'zēăn`ə, l ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , Arkansas Arkansas, river, United StatesArkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . The Company's television station group includes affiliates of NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. , CBS (Cell Broadcast Service) See cell broadcast. , ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. , Fox and UPN UPN User Principal Name (Microsoft Windows 2000) UPN United Paramount Network UPN Unión del Pueblo Navarro (Navarrese People Union) UPN Umgekehrte Polnische Notation , and reaches approximately 7.4% of all U.S. television households. The following is a list of Nexstar's owned properties, as well as those with which it has local service agreements:
Market Status
Rank Market Station Affiliation (1)
----------------------------------------------------------------------
8 Washington, DC/Hagerstown, MD(2) WHAG NBC O&O
53 Wilkes Barre-Scranton, PA WBRE NBC O&O
WYOU CBS LSA
56 Little Rock-Pine Bluff, AR KARK NBC O&O
75 Rochester, NY WROC CBS O&O
78 Springfield, MO KOLR CBS LSA
KDEB Fox O&O
81 Shreveport, LA KTAL NBC O&O
82 Champaign-Springfield-Decatur, IL WCIA CBS O&O
WCFN UPN O&O
99 Evansville, IN WTVW Fox O&O
105 Ft. Wayne, IN WFFT Fox O&O
Ft. Smith - Fayetteville - KFTA(3)/ NBC Acq.
108 Springdale - Rogers, AR KNWA(3) Pending
117 Peoria-Bloomington, IL WMBD CBS O&O
WYZZ Fox LSA
129 Amarillo, TX KAMR NBC O&O
KCIT Fox LSA
KCPN-LP -- LSA
133 Rockford, IL WQRF Fox O&O
WTVO ABC LSA
(Acq.
Pending
by
Mission)
135 Monroe, LA-El Dorado, AR KARD Fox O&O
138 Beaumont-Port Arthur, TX KBTV NBC O&O
141 Erie, PA WJET ABC O&O
WFXP Fox LSA
143 Wichita Falls, TX- Lawton, OK KFDX NBC O&O
KJTL Fox LSA
KJBO-LP UPN LSA
146 Joplin, MO-Pittsburg, KS KSNF NBC O&O
KODE ABC LSA
147 Lubbock, TX KLBK CBS O&O
KAMC ABC LSA
148 Terre Haute, IN WTWO NBC O&O
WBAK Fox LSA
157 Odessa-Midland, TX KMID ABC O&O
163 Abilene-Sweetwater, TX KTAB CBS O&O
KRBC NBC LSA
167 Utica, NY WUTR ABC LSA
WFXV Fox O&O
WPNY-LP UPN O&O
170 Billings, MT KSVI ABC O&O
KHMT Fox LSA
171 Dothan, AL WDHN ABC O&O
195 San Angelo, TX KSAN NBC LSA
KLST CBS O&O
201 St. Joseph, MO KQTV ABC O&O
(1) O&O refers to stations that Nexstar owns and operates. LSA, or
local service agreement, is the general term we use to refer to a
contract under which we provide services to a station owned and/or
operated by an independent third party. Local service agreements
include time brokerage agreements, shared services agreements, joint
sales agreements, and outsourcing agreements.
(2) Although WHAG is located within the Washington, DC DMA, its
signal does not reach the entire Washington, DC metropolitan area.
WHAG serves the Hagerstown, MD sub-market within the DMA.
(3) Effective August 13, 2004, KPOM changed its call letters to
KFTA and KFAA changed its call letters to KNWA.
Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. 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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