Nexstar Broadcasting Group Reports 2005 First Quarter Results.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 reported financial results for the first quarter ended March 31, 2005. Summary 2005 First Quarter Highlights: Reported total net revenue for the 2005 first quarter was $52.7 million, a decrease of 2.8% from net revenue of $54.2 million in the 2004 first quarter. Nexstar's previous guidance, issued on March 4, 2005, was for 2005 first quarter total net revenue to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $51.5 to $52.5 million, or a decrease of approximately 3.1% - 5.0%. The following tables summarizes reported highlights for the three month period ended March 31, 2005:
Summary 2005 Highlights: Three Months Ended
------------------------ March 31,
(dollars and shares in millions, 2005 2004 Change
except per share data) -------------------------
Gross local and national advertising
revenue, excluding political $ 51.0 $ 49.9 2.2 %
Gross political advertising revenue $ 0.3 $ 3.4 (91.2)%
Total gross advertising revenue $ 51.3 $ 53.3 (3.8)%
Total net revenue (1) $ 52.7 $ 54.2 (2.8)%
Station direct operating expenses, SG&A
expenses and cash program payments $ 31.8 $ 31.5 1.0 %
Broadcast cash flow (2) $ 15.8 $ 17.7 (10.7)%
Corporate expenses $ 2.8 $ 2.0 40.0 %
Adjusted EBITDA (2) $ 13.1 $ 15.7 (16.6)%
Net income (loss) attributable to common
shareholders $ (12.8)$ (16.7) 23.4 %
Diluted net income (loss) per share
attributable to common shareholders $ (0.45)$ (0.59) 23.7 %
Weighted basic and diluted shares outstanding 28.4 28.4
Free cash flow (2) $ 0.1 $ 2.7 (96.3)%
(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) "Broadcast cash flow", "adjusted EBITDA" and "free cash flow" are
non-GAAP financial measures. For a definition of these measures
and reconciliation to comparable GAAP financial results, please
see the "Definitions and Disclosure Regarding non-GAAP Financial
Information" section and supplemental reconciliation tables at the
end of this release.
Summary Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Highlights: Pro forma results reflect the completed acquisitions of certain television stations as if they had occurred on January January: see month. 1, 2004. The following table summarizes pro forma highlights for the three month period ended March 31, 2005:
Summary 2005 Pro Forma Highlights: (1) Three Months
-------------------------------------- Ended
(dollars in millions) March 31,
2005(2) 2004 Change
--------------------
Total net revenue $ 52.7 $56.8 (7.2)%
Station direct operating expenses, SG&A
expenses and cash program payments $ 31.8 $34.0 (6.5)%
(1) "Pro forma" is a non-GAAP financial measure. For a more complete
definition of "pro forma" and reconciliation of these results to
comparable GAAP financial results, please see the "Definitions and
Disclosure Regarding non-GAAP Financial Information" section and
supplemental reconciliation tables at the end of this release.
(2) There are no pro forma adjustments presented for the three months
ended March 31, 2005 as the pro forma results would not be
materially different from the company's consolidated results of
operations as reported, since the WTVO acquisition by Mission was
consummated on January 4, 2005 and the KFTA/KNWA acquisition by
Nexstar was consummated on January 7, 2005.
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, "Nexstar exceeded its 2005 first quarter guidance targets for total gross advertising revenue and total net revenue while spending less than forecast on 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. , SG&A expenses and cash program payments. "Reported net revenue in the 2005 first quarter reflects a 2.2% increase in core local and national advertising revenue, offset by a decline of $3.1 million in political advertising revenue compared to the first quarter of 2004. With four new stations contributing to 2005 first quarter results, our station direct operating expenses, SG&A expenses and cash program payments rose less than 1%, reflecting both cost reductions and ongoing expense management. "During the period we closed two acquisitions and completed a refinancing Refinancing An extension and/or increase in amount of existing debt. on April 1st that improves our capital structure and provides greater financial flexibility going forward. We also began working through the process of seeking cash payments from local cable operators in four of our markets for the right to retransmit Verb 1. retransmit - transmit again channel, transmit, carry, impart, conduct, convey - transmit or serve as the medium for transmission; "Sound carries well over water"; "The airwaves carry the sound"; "Many metals conduct heat" our local television signals. While we do not anticipate resolving this issue in the near future, its impact on our financial results is significantly less than what we budgeted into our 2005 full year guidance. At this point we continue to feel that pursuing this goal is the right course of action for our shareholders. "While we remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the economy and demand for broadcast television advertising in 2005, we have not yet seen the increase in core revenues to the degree we anticipated. If the current tone of business remains in place for the balance of the year, we would see our 2005 results coming in at the low end of our financial guidance for the year, with full-year reported net revenue declining in the 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 range and core local and national advertising, excluding political ad revenue, growing approximately 3% year-over-year on a reported basis." Additional Expense Detail on Reported 2005 First Quarter Results Depreciation and amortization was $11.2 million in the first quarter of 2005, compared to $12.0 million in the first quarter of 2004. The lower depreciation and amortization expense for the first quarter of 2005 is primarily the result of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. assets at certain stations becoming fully depreciated Fully depreciated An asset that has already been charged with the maximum amount of depreciation allowed by the IRS for accounting purposes. fully depreciated Of or relating to a fixed asset that has been depreciated to a book value of zero. in the fourth quarter of 2004 and amortizable am·or·tize tr.v. am·or·tized, am·or·tiz·ing, am·or·tiz·es 1. To liquidate (a debt, such as a mortgage) by installment payments or payment into a sinking fund. 2. assets at certain stations becoming fully amortized in the third quarter of 2004. Interest expense in the first quarter of 2005 was $13.1 million, compared to $12.8 million for the same period in 2004. The increase is primarily attributed to higher interest rates prior to the refinancing and a greater amount of debt outstanding in 2005 on our senior credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . Capital expenditures in the first quarter of 2005 were $2.9 million, compared to $2.4 million in the first quarter of 2004. Cash interest for the first quarter of 2005 was $10.0 million, compared to $9.8 million in the first quarter of 2004. Cash interest excludes non-cash interest related to amortization of debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay costs and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of the discount on Nexstar's 11.375% senior discount notes and 12% senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes. 12% Senior Subordinated Notes Redemption and Refinancing On April 1, 2005, Nexstar Broadcasting Group redeemed 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. all $160.0 million in aggregate principal amount of Nexstar Broadcasting, Inc.'s outstanding 12% Senior Subordinated Notes due April 1, 2008. Nexstar Broadcasting, Inc. is a subsidiary of Nexstar Broadcasting Group. The redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. was $1,060 per $1,000 principal amount, plus accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid interest to the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. . Nexstar Broadcasting funded the redemption of the 12% Notes from the issuance of $75.0 million of 7% Senior Subordinated Notes and borrowings under new senior secured credit facilities, which replace previous bank credit facility agreements. Nexstar will recognize a loss on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of approximately $16.0 million in the second quarter of 2005 primarily related to the call premium and the write off of unamortized discount on notes and unamortized deferred financing costs. The combined new credit facilities of Nexstar Broadcasting, Inc. and Mission Broadcasting Mission Broadcasting, Inc. is a television station group that owns 15 television stations operated by Nexstar Broadcasting. The group's President is David S. Smith. The broadcasting group was founded in 1998 and was founded by Smith[1]. , Inc. consist of $355.0 million of term loans and $97.5 million of undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely revolving loans. All borrowings outstanding under these new credit facilities are due to mature in 2012. Financial covenants under the new credit facility agreements now include a maximum total combined leverage ratio of 7.50 times the last twelve months operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (as defined in the new credit agreement) through June June: see month. 30, 2006. Covenants also include a maximum combined senior leverage ratio of 5.25 times the last twelve months operating cash flow through June 30, 2006, as well as a minimum combined interest coverage ratio of 1.50 to 1.00 through December December: see month. 30, 2008, among other items. The refinancing is expected to reduce cash interest expense by approximately $8.5 million over the next 12 months. Liquidity and Cash Flow Free cash flow for the 2005 first quarter was $0.1 million compared to $2.7 million in year-ago quarter. At March 31, 2005, the Company's total debt was approximately $631.9 million and cash balances were $13.9 million. Nexstar Broadcasting, Inc., a subsidiary of the Company, and Mission Broadcasting, Inc., are borrowers under senior secured credit facilities. As defined per the credit agreement, consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: total debt was $522.5 million at March 31, 2005, net of cash on hand, resulted in a leverage ratio as defined per the credit agreement of 6.1x, compared to a permitted leverage covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the of 7.5x under the new credit facilities. Covenants under the credit facilities exclude Nexstar Finance Holdings, Inc.'s 11.375% notes, which have accreted to $93.2 million, as of March 31, 2005. Completed Acquisitions On January 4, 2005, Mission Broadcasting closed its acquisition of WTVO-TV, the 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. affiliate in Rockford, Illinois Rockford is a mid-sized city located on both banks of the Rock River in far northern Illinois. Rockford is often referred to as "The Forest City" and is the county seat of Winnebago County, Illinois, USA. As reported in the 2000 U.S. . Nexstar entered into local service agreements with Mission for WTVO WTVO (Channel 17) is the Rockford, Illinois-based affiliate of the ABC television network. The station is owned by Mission Broadcasting, a subsidiary of Nexstar Broadcasting Group. and began providing services to the station through its owned and operated station, WQRF-TV WQRF-TV (Fox 39) is the Rockford, Illinois-based television affiliate of FOX. The station began its operations in November 1978, and became the area's Fox station in August 1989. , on November November: see month. 1, 2004. On January 7, 2005, Nexstar closed on its acquisition of KFTA/KNWA, the 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. affiliate in Fort Smith-Fayetteville-Springdale-Rogers, Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. . Nexstar had been operating KFTA/KNWA under a TBA TBA See: To be announced effective October October: see month. 16, 2003. Operations under the TBA terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: on January 7, 2005. Local Broadcasting Excellence KARK-TV KARK, branded as "KARK 4", is the NBC network affiliate station serving the Little Rock television market and central Arkansas, owned by Nexstar Broadcasting Group. KARK's transmitter and antenna are located atop Shinall Mountain, on the same tower as KTHV. , Nexstar's NBC affiliate in Little Rock, AR was awarded two regional Edward R. Murrow awards The Edward R. Murrow Award can mean:
1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. , NY earned a 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 Emmy Award Emmy award Annual presentation for outstanding achievement in U.S. television. Its name is taken from the nickname “immy” for the image orthicon, a television camera tube. for its Today's Family program. In addition, the company's stations in Hagerstown Hagerstown (hā`gərztoun'), city (1990 pop. 35,445), seat of Washington co., NW Md., on Antietam Creek near its junction with the Potomac River, in the fertile Cumberland Valley; inc. 1791. , MD; Evansville Evansville, city (1990 pop. 126,272), seat of Vanderburgh co., extreme SW Ind., a port on the Ohio River; inc. 1819. It is a rail and river shipping and commercial center for a coal, oil, and farm region. , IN; Rockford Rockford, industrial city (1990 pop. 139,426), seat of Winnebago co., N Ill., on the Rock River near the Wis. line; inc. 1839 with the merger of two settlements on opposite sides of the river. , IL; and Lubbock Lubbock, city (1990 pop. 186,206), seat of Lubbock co., NW Tex.; inc. 1909. In the Llano Estacado region on a branch of the Brazos River, it was settled in 1879 by Quakers. , TX earned numerous awards for their broadcast journalism from the Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. . Summary 2005 Second-Quarter Outlook Nexstar issued the following outlook for the three-month period ending June 30, 2005:
Reported 2005 Second Quarter Three Months Ended
Estimates June 30,
(in millions) 2005 2004 Approximate
Estimate Actual Change
----------------------------------
Gross local and national advertising
revenue, excluding political $58.0 - 59.0 $ 57.6 0.7 - 2.4%
Gross political advertising revenue $ 0.4 - 0.5 $ 4.3 (90.7)-(88.4)%
Total gross advertising revenue $58.4 - 59.5 $ 61.9 (5.7)- (3.9)%
Total net revenue $59.0 - 60.0 $ 61.2 (3.6)- (2.0)%
Station direct operating expenses,
SG&A expenses and cash program
payments $32.3 - 32.8 $ 31.4 2.9 - 4.5%
The Company's financial outlook for the second quarter ending June 30, 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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. First-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. A live audio webcast of the call will be accessible to the public on the Company's web site, www.nexstar.tv. A recording of the webcast will subsequently be archived on the site. The dial in number for the audio conference call is 800-478-6251; no access code is needed. A replay of the call will be available through May 11, 2005 by dialing 888-203-1112, (719-457-0820 for International callers), and entering access code 8208642. Definitions and Disclosures Regarding non-GAAP Financial Information Broadcast cash flow is calculated as operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. plus corporate expenses plus depreciation and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and broadcast rights (excluding barter barter: see exchange. barter Direct exchange of goods or services without the use of money or any other intervening medium of exchange. Barter is conducted either according to established rates of exchange or by bargaining. ) plus other non-recurring items minus broadcast rights payments. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become is calculated as broadcast cash flow less corporate expenses. Free cash flow is calculated as income from operations plus depreciation and amortization of intangible assets and broadcast rights (excluding barter), less payments for broadcast rights, cash interest expense, capital expenditures and net cash taxes. Pro forma results reflect the completed and pending acquisitions of certain television stations as if they had occurred on January 1, 2004. Pro Forma results for the three-month period ended March 31, 2004 include Nexstar's acquisition of KFTA/KNWA in Fort Smith- Fayetteville-Springdale-Rogers, AR, which Nexstar began operating under a TBA in October 2003 and KLST KLST is the CBS affiliate serving San Angelo, Texas, in the United States. It is owned by the Irving, TX based Nexstar Broadcasting Group. KLST was purchased by Nexstar Broadcasting in 2004 from the Jewell Television Corporation. in San Angelo San Angelo (săn ăn`jəlō), city (1990 pop. 84,474), seat of Tom Green co., W Tex., where two forks join to form the Concho River; laid out 1869, inc. 1903. , TX, which Nexstar began operating under a TBA in June 2004. This period also includes the acquisition of WUTR WUTR is the ABC affiliate for Utica, New York. The station is owned by Mission Broadcasting (and thus is operated by Nexstar Broadcasting Group, along with WFXV and WPNY-LP) and broadcasts its signal on UHF channel 20, with a digital signal on channel 30. in Utica Utica, ancient city, N Africa Utica (y  `tĭkə), ancient N African city, c.25 mi (40 km) NW of Carthage. According to tradition, it was founded by Phoenicians from Tyre c. , NY by Mission Broadcasting, Inc.,
Nexstar's broadcasting associate, which Mission completed in April
2004, as well as Mission's acquisition of WTVO in Rockford, IL,
which Mission began providing services to in November 2004.Broadcast cash flow, adjusted EBITDA, free cash flow and Pro Forma 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 capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) and fund ongoing operations and working capital needs; and, because they reflect the most up-to-date operating results of the stations inclusive of inclusive of prep. Taking into consideration or account; including. 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial results cited in this news announcement, please see the supplemental tables at the end of this release. About Nexstar Broadcasting Group, Inc. Nexstar Broadcasting Group owns, operates, programs or provides 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 Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). , 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, lē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , Arkansas, Alabama Alabama, indigenous people of North AmericaAlabama (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. The Company's television station group includes affiliates of NBC, CBS, ABC, 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(1) Market Station Affiliation (2)
-------- --------------------------------- -------- ----------- ------
8 Washington, DC/Hagerstown, MD(3) 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
KSFX(4) 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
108 Ft. Smith - Fayetteville - KFTA(5)/
Springdale - Rogers, AR KNWA(5) NBC O&O
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
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 KLST CBS O&O
KSAN NBC LSA
201 St. Joseph, MO KQTV ABC O&O
(1) Market rank refers to ranking the size of the Designated Market
Area ("DMA"), in which the station is located in relation to other
DMAs. Source: Investing in Television Market Report 2004 3rd
Edition, as published by BIA Financial Network, Inc.
(2) 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.
(3) 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.
(4) Effective January 17, 2005, KDEB changed its call letters to KSFX.
(5) 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 Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the 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.
Nexstar Broadcasting Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
------------------
2005 2004
--------- --------
Revenue (excluding trade and barter) $ 54,509 $ 56,427
Less: commissions (6,996) (7,459)
-------- --------
Net broadcast revenue (excluding trade and barter) 47,513 48,968
Trade and barter revenue 5,150 5,268
-------- --------
Total net revenue 52,663 54,236
-------- --------
Operating expenses:
Station direct operating expenses, net of trade
(exclusive of depreciation and amortization
shown separately below) 14,780 14,307
Selling, general, and administrative expenses
(exclusive of depreciation and amortization
shown separately below) 14,423 14,458
Merger related expenses - 456
Time brokerage agreement expenses 8 225
Trade and barter expense 4,999 5,049
Corporate expenses 2,763 2,036
Amortization of broadcast rights, excluding
barter 2,685 3,003
Amortization of intangible assets 6,762 6,920
Depreciation 4,423 5,123
-------- --------
Total operating expenses 50,843 51,577
-------- --------
Income from operations 1,820 2,659
Interest expense, including amortization of debt
financing costs (13,075) (12,843)
Loss on extinguishment of debt - (6,824)
Interest income 39 16
Other income (expenses), net (48) 759
-------- --------
Loss before income taxes (11,264) (16,233)
Income tax expense (1,544) (968)
-------- --------
Loss before minority interest in consolidated entity (12,808) (17,201)
Minority interest in consolidated entity - 487
-------- --------
Net loss attributable to common shareholders $(12,808)$(16,714)
======== ========
Basic and diluted net loss per share:
Net loss attributable to common shareholders $ (0.45)$ (0.59)
Weighted average number of shares outstanding:
Basic and diluted 28,363 28,363
Nexstar Broadcasting Group, Inc.
Reconciliation Between Actual Consolidated Statements of Operations
and Broadcast Cash Flow/Adjusted EBITDA (Non-GAAP Measures)
(in thousands)
Three Months
Ended
March 31,
-----------------
2005 2004
-------- -------
(Unaudited)
Income from operations $ 1,820 $ 2,659
Add:
Depreciation 4,423 5,123
Amortization of intangible assets 6,762 6,920
Amortization of broadcast rights, excluding barter 2,685 3,003
Merger and related expenses - 456
Time brokerage agreement expenses 8 225
Corporate expenses 2,763 2,036
Program buyouts - 55
Less:
Payments for broadcast rights 2,637 2,782
------- -------
Broadcast cash flow $15,824 $17,695
Less:
Corporate expenses 2,763 2,036
------- -------
Adjusted EBITDA $13,061 $15,659
======= =======
Nexstar Broadcasting Group, Inc.
Reconciliation Between Actual Consolidated Statements of Operations
and Free Cash Flow (Non-GAAP Measure)
(in thousands)
Three Months
Ended
March 31,
---------------
2005 2004
------- ------
(Unaudited)
Income from operations $1,820 $2,659
Add:
Depreciation 4,423 5,123
Amortization of intangible assets 6,762 6,920
Amortization of broadcast rights, excluding barter 2,685 3,003
Less:
Payments for broadcast rights 2,637 2,782
Cash interest expense 9,993 9,787
Capital expenditures 2,874 2,417
Cash taxes, net of refunds 131 50
------ ------
Free Cash Flow $ 55 $2,669
====== ======
Nexstar Broadcasting Group, Inc.
Reconciliation of Historical GAAP and ProForma Results (unaudited)
(dollars in thousands)
Q1 2004 Q1 2004
GAAP Adjustments Pro Forma
-------- ----------- ----------
Revenue
Local $33,849 $ 1,737 $ 35,586
National 16,075 724 16,799
Political 3,383 187 3,570
Network Compensation 2,078 209 2,287
Other 1,042 64 1,106
------- ---------- ---------
Gross Revenue 56,427 2,921 59,348
National Rep and Agency Commissions 7,459 420 7,879
------- ---------- ---------
Net Broadcast Revenue 48,968 2,501 51,469
Trade and Barter Revenue 5,268 55 5,323
------- ---------- ---------
Total Net Revenue 54,236 2,556 56,792
Station Direct Operating expenses, net
of trade 14,307 1,109 15,416
Selling, General and Administrative
expenses 14,458 1,151 15,609
Corporate Overhead 2,036 -- 2,036
Merger and time brokerage agreement
expenses 681 -- 681
Trade and barter expense 5,049 66 5,115
Depreciation and amortization 12,043 273 12,316
Amortization of Broadcast rights,
excluding barter 3,003 185 3,188
------- ---------- ---------
Total operating expenses 51,577 2,784 54,361
Income (loss) from operations 2,659 (228) 2,431
Supplemental information:
Broadcast film payments 2,782 185 2,967
Q2 2004 Q2 2004
GAAP Adjustments Pro Forma
--------- ----------- ---------
Revenue
Local $ 39,066 $ 1,572 $ 40,638
National 18,485 583 19,068
Political 4,293 6 4,299
Network Compensation 2,151 189 2,340
Other 1,264 54 1,318
-------- ---------- --------
Gross Revenue 65,259 2,404 67,663
National Rep and Agency Commissions 8,791 339 9,130
-------- ---------- --------
Net Broadcast Revenue 56,468 2,065 58,533
Trade and Barter Revenue 4,688 28 4,716
-------- ---------- --------
Total Net Revenue 61,156 2,093 63,249
Station Direct Operating expenses, net
of trade 14,184 767 14,951
Selling, General and Administrative
expenses 14,592 831 15,423
Corporate Overhead 2,205 -- 2,205
Merger and time brokerage agreement
expenses 128 -- 128
Trade and barter expense 4,522 28 4,550
Depreciation and amortization 11,177 200 11,377
Amortization of Broadcast rights,
excluding barter 2,656 113 2,769
-------- ---------- --------
Total operating expenses 49,464 1,939 51,403
Income (loss) from operations 11,692 154 11,846
Supplemental information:
Broadcast film payments 2,649 113 2,762
Q3 2004 Q3 2004
GAAP Adjustments Pro Forma
-------- ----------- ----------
Revenue
Local $36,876 $ 1,089 $ 37,965
National 17,627 267 17,894
Political 6,052 27 6,079
Network Compensation 2,181 186 2,366
Other 1,212 19 1,232
------- ---------- ---------
Gross Revenue 63,948 1,588 65,536
National Rep and Agency Commissions 8,571 215 8,786
------- ---------- ---------
Net Broadcast Revenue 55,377 1,373 56,750
Trade and Barter Revenue 4,507 13 4,520
------- ---------- ---------
Total Net Revenue 59,884 1,386 61,270
Station Direct Operating expenses, net
of trade 14,832 563 15,395
Selling, General and Administrative
expenses 15,121 593 15,714
Corporate Overhead 2,620 -- 2,620
Time brokerage agreement expenses 157 -- 157
Trade and barter expense 4,807 16 4,823
Depreciation and amortization 10,415 146 10,561
Amortization of Broadcast rights,
excluding barter 3,172 69 3,241
------- ---------- ---------
Total operating expenses 51,124 1,387 52,511
Income (loss) from operations 8,760 (1) 8,759
Supplemental information:
Broadcast film payments 2,467 69 2,536
Q4 2004 Q4 2004
GAAP Adjustments Pro Forma
--------- ----------- ---------
Revenue
Local $ 39,856 $ 415 $ 40,271
National 17,855 106 17,961
Political 12,938 48 12,986
Network Compensation 2,098 37 2,137
Other 1,283 7 1,290
-------- ---------- --------
Gross Revenue 74,030 613 74,645
National Rep and Agency Commissions 10,184 87 10,271
-------- ---------- --------
Net Broadcast Revenue 63,846 526 64,374
Trade and Barter Revenue 6,617 5 6,621
-------- ---------- --------
Total Net Revenue 70,463 531 70,995
Station Direct Operating expenses, net
of trade 15,102 205 15,307
Selling, General and Administrative
expenses 16,555 217 16,772
Corporate Overhead 4,080 -- 4,080
Time brokerage agreement expenses 143 -- 143
Trade and barter expense 6,587 3 6,590
Depreciation and amortization 10,777 58 10,835
Amortization of Broadcast rights,
excluding barter 2,626 21 2,647
-------- ---------- --------
Total operating expenses 55,870 504 56,374
Income (loss) from operations 14,594 28 14,622
Supplemental information:
Broadcast film payments 2,622 20 2,642
Note: Adjustments in the 2004 first quarter reflect contributions from
KLST, which Nexstar began operating under a TBA in June 2004, and
WUTR, which Mission began operating on April 1, 2004 after completing
its acquisition of the station. Adjustments in the 2004 second quarter
reflect contributions from KLST in April and May 2004. Results for
WUTR in the 2004 second quarter are included in GAAP results. Results
for WTVO are not reflected in pro forma results for the 2003 third
quarter, as Nexstar did not begin providing services to the station
until November 1, 2004. Adjustments in the 2004 fourth quarter reflect
contributions from WTVO in November and December 2004.
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