Nexstar Broadcasting Group Reports 2005 Second 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 second quarter ended June June: see month. 30, 2005. Summary 2005 Second Quarter Financial Results: Reported total net revenue for the 2005 second quarter was $57.9 million, a decrease of 5.4% from net revenue of $61.2 million in the 2004 second quarter. Nexstar's financial guidance, issued on May 4, 2005, was for 2005 second quarter total net revenue to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $59.0 to $60.0 million, or a decline of approximately 2.0% - 3.6%. The following tables summarize sum·ma·rize intr. & tr.v. sum·ma·rized, sum·ma·riz·ing, sum·ma·riz·es To make a summary or make a summary of. sum financial results for the three month period ended June 30, 2005:
(dollars and shares in millions, except per Three Months
share data) Ended
June 30,
2005 2004 Change
-----------------------
Gross local and national advertising revenue,
excluding political $ 56.9 $ 57.5 (1.0)%
Gross political advertising revenue $ 0.8 $ 4.3 (81.4)%
Total gross advertising revenue $ 57.7 $ 61.8 (6.6)%
Total net revenue (1) $ 57.9 $ 61.2 (5.4)%
Station direct operating expenses, SG&A
expenses and cash program payments $ 32.0 $ 31.4 1.9%
Broadcast cash flow (2) $ 20.9 $ 25.2 (17.1)%
Corporate expenses $ 2.4 $ 2.2 9.1%
Adjusted EBITDA (2) $ 18.6 $ 23.0 (19.1)%
Loss on extinguishment of debt (3) $(15.7) $ --
Net income (loss) attributable to common
shareholders $(20.9) $ 1.2
Diluted net income (loss) per share
attributable to common shareholders $(0.74) $ 0.04
Weighted basic and diluted shares outstanding 28.4 28.4
Free cash flow (2) $ 6.3 $ 10.9 (42.2)%
(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.
(3) On April 1, 2005, Nexstar Broadcasting Group redeemed all $160.0
million in aggregate principal amount of Nexstar Broadcasting,
Inc.'s outstanding 12% Senior Subordinated Notes due April 1,
2008. Pursuant to the transaction, Nexstar recognized a loss on
extinguishment of debt of approximately $15.7 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.
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 Financial Results: 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 financial results for the three month period ended June 30, 2005:
Summary 2005 Pro Forma Highlights: (1)
(dollars in millions) Three Months Ended
-------------------------------------- June 30,
2005(2) 2004 Change
--------------------------
Total net revenue $ 57.9 $ 63.2 (8.4)%
Station direct operating expenses, SG&A
expenses and cash program payments $ 32.0 $ 33.1 (3.3)%
(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 June 30, 2005, as there were no acquisitions or dispositions
completed during the 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, "The 2005 second quarter local and national advertising environment was difficult for television broadcasters and for Nexstar Broadcasting. As a result, Nexstar recorded a 1% year over year decline in second quarter gross local and national advertising revenue, excluding political. General weakness in some of our top advertising categories and at our 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. affiliates contributed to the revenue decline. In addition, the year ago second quarter included 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. $3.5 million in political advertising revenue which impacted total revenue comparisons to the 2005 second quarter. "We continue to manage Nexstar's operations to the advertising environment, and our efforts to attract new advertisers and generate incremental revenue is partially offsetting weaknesses in some categories and lower ad spends by some advertisers. By prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. managing 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, these costs rose less than 2% during the second quarter, even as we added four new stations to operations. "Given the current pacings in our markets and the absence of over $23 million political and Olympics-related revenue in the second half of 2005, we now see full-year reported net revenue declining in the high-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 to approximately $220.0 - $225.0 million. Additionally, we anticipate direct station operating expenses, selling general and administrative expenses and cash program payments will approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $147.0 - $150.0 million for the full year. (including approximately $20.0 million of trade and 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. expense.) "Looking forward, our goal is to quickly recapture recapture n. in income tax, the requirement that the taxpayer pay the amount of tax savings from past years due to accelerated depreciation or deferred capital gains upon sale of property. (See: income tax) RECAPTURE, war. operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. as expected sales momentum returns in 2006. We expect to do so by cultivating new advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase and agency relationships and by developing incremental sales channels. As always, we will work diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to manage our expenses." Additional Expense Detail on Reported 2005 Second Quarter Results Depreciation and amortization was $11.0 million in the second quarter of 2005, compared to $11.2 million in the second quarter of 2004. The lower depreciation and amortization expense for the second quarter of 2005 is primarily the result of 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. Interest expense in the second quarter of 2005 was $10.9 million, compared to $13.0 million for the same period in 2004. The decrease is primarily attributed to the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of $160.0 million in aggregate principal amount of our outstanding 12% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes due April 1, 2008, partially offset by the issuance of the $75.0 million in the aggregate principal amount of 7% Senior Subordinated Notes due 2014 and a higher amount of debt outstanding in 2005 under Nexstar Broadcasting Group's 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.'s senior credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . Capital expenditures in the second quarter of 2005 were $4.2 million, compared to $1.7 million in the second quarter of 2004. Cash interest for the second quarter of 2005 was $8.0 million, compared to $10.2 million in the second 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 7% senior subordinated notes. Liquidity and Cash Flow Free cash flow for the 2005 second quarter was $6.3 million compared to $10.9 million in year-ago quarter. At June 30, 2005, the Company's total debt was approximately $648.3 million and cash balances were $10.3 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 $542.2 million at June 30, 2005, net of cash on hand, resulted in a leverage ratio as defined per the credit agreement of 6.8x, 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 $95.9 million as of June 30, 2005. Local Broadcasting Excellence 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 and 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; Springfield Springfield. 1 City (1990 pop. 105,227), state capital and seat of Sangamon co., central Ill., on the Sangamon River; settled 1818, inc. as a city 1840. , MO; Joplin Joplin (jŏp`lĭn), city (1990 pop. 40,961), Jasper and Newton counties, SW Mo., at the edge of the Ozarks; settled c.1839, inc. 1873. It is a railroad center, the shipping and processing point of a grain and livestock region with dairy and , MO; St. Joseph, MO; Peoria Peoria (pēôr`ēə). 1 City (1990 pop. 50,618), Maricopa co., central Ariz., a suburb of Phoenix; settled 1897, inc. 1954. IL; and 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 were recipients of numerous awards for journalism journalism, the collection and periodic publication or transmission of news through media such as newspaper, periodical, television, and radio. Schools excellence from state broadcast associations and 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 Third-Quarter Outlook Nexstar issued the following outlook for the three month period ending September September: see month. 30, 2005:
Reported 2005 Third Quarter Three Months Ended
Estimates September 30,
(in millions) 2005 2004 Approximate
Estimate Actual Change
--------------------------------------
Gross local and national
advertising revenue,
excluding political $51.0 - 52.0 $ 54.5 (6.4) - (4.6)%
Gross political advertising
revenue $ 0.2 - 0.3 $ 6.1 (96.7) - (95.1)%
Total gross advertising revenue $51.2 - 52.3 $ 60.6 (15.5) - (13.7)%
Total net revenue $52.0 - 53.0 $ 59.9 (13.2) - (11.5)%
Station direct operating
expenses, SG&A expenses and
cash program payments $32.0 - 32.5 $ 32.4 (1.2) - 0.3%
The Company's financial outlook for the third quarter ending September 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. Second-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 888-695-0614, (719-457-2664 for international callers); no access code is needed. A replay of the call will be available through August 9, 2005 by dialing 888-203-1112, (719-457-0820 for international callers), and entering access code 5949440. 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) 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 June 30, 2004 includes Nexstar's acquisition of 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 TBA See: To be announced in June 2004, and the acquisition of 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. in Rockford, IL, by Mission Broadcasting, Inc., Nexstar's broadcasting associate, which Mission began providing services to in November November: see month. 2004. Proforma Proforma A financial projection based on assumptions. results for the six-month period ended June 30, 2004 includes the stations mentioned above, as well as Mission's 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, which Mission completed in April 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 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, 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
Rank(1) Market Station Affiliation Status(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, WCIA CBS O&O
IL
WCFN UPN O&O
99 Evansville, IN WTVW Fox O&O
105 Ft. Wayne, IN WFFT Fox O&O
108 Ft. Smith - Fayetteville - KFTA/ NBC O&O
Springdale - Rogers, AR KNWA
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
WFXW(5) 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) 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 June 1, 2005, WBAK changed its call letters to WFXW.
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 Six Months Ended
June 30, June 30,
--------------------- ---------------------
2005 2004 2005 2004
-------- -------- -------- --------
(Unaudited) (Unaudited)
Revenue (excluding trade
and barter) $ 60,915 $ 65,259 $ 115,424 $ 121,686
Less: commissions (8,000) (8,791) (14,996) (16,250)
-------- -------- -------- --------
Net broadcast revenue
(excluding trade and
barter) 52,915 56,468 100,428 105,436
Trade and barter revenue 4,985 4,689 10,135 9,957
-------- -------- -------- --------
Total net revenue 57,900 61,157 110,563 115,393
-------- -------- -------- --------
Operating expenses:
Station direct operating
expenses, net of trade
(exclusive of
depreciation and
amortization shown
separately below) 14,711 14,184 29,491 28,491
Selling, general, and
administrative expenses
(exclusive of
depreciation and
amortization shown
separately below) 14,956 14,592 29,379 29,050
Merger related expenses - - - 456
Loss on property held
for sale 616 - 616 -
Loss (gain) on asset
disposal (including
deferred gain
recognition), net 31 22 31 (76)
Time brokerage agreement
expenses - 128 8 353
Trade and barter expense 4,936 4,522 9,935 9,571
Corporate expenses 2,364 2,205 5,127 4,241
Amortization of
broadcast rights,
excluding barter 2,296 2,656 4,981 5,659
Amortization of
intangible assets 6,647 6,969 13,409 13,889
Depreciation 4,327 4,208 8,750 9,331
-------- -------- -------- --------
Total operating
expenses 50,884 49,486 101,727 100,965
-------- -------- -------- --------
Income from operations 7,016 11,671 8,836 14,428
Interest expense,
including amortization
of debt financing costs (10,893) (13,030) (23,968) (25,873)
Loss on extinguishment of
debt (15,715) - (15,715) (6,824)
Interest income 44 17 83 33
Other income (expenses),
net - 2,969 (48) 3,630
-------- -------- -------- --------
Income (loss) before
income taxes (19,548) 1,627 (30,812) (14,606)
Income tax expense (1,380) (945) (2,924) (1,913)
-------- -------- -------- --------
Income (loss) before
minority interest in
consolidated entity (20,928) 682 (33,736) (16,519)
Minority interest in
consolidated entity - 493 - 980
-------- -------- -------- --------
Net income (loss)
attributable to common
shareholders $ (20,928) $ 1,175 $ (33,736) $ (15,539)
======== ======== ======== ========
Basic and diluted net
income (loss) per share:
Net income (loss)
attributable to common
shareholders $ (0.74) $ 0.04 $ (1.19) $ (0.55)
Weighted average number
of shares outstanding:
Basic and diluted 28,363 28,363 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 Six Months
Ended Ended
June 30, June 30,
----------------- -----------------
2005 2004 2005 2004
------- ------- ------- -------
(Unaudited) (Unaudited)
Income from operations $ 7,016 $11,671 $ 8,836 $14,428
Add:
Depreciation 4,327 4,208 8,750 9,331
Amortization of intangible assets 6,647 6,969 13,409 13,889
Amortization of broadcast rights,
excluding barter 2,296 2,656 4,981 5,659
Merger and related expenses - - - 456
Loss on property held for sale 616 - 616 -
Loss (gain) on asset disposal
(including deferred gain
recognition), net 31 22 31 (76)
Time brokerage agreement expenses - 128 8 353
Corporate expenses 2,364 2,205 5,127 4,241
Program buyouts - - - 55
Less:
Payments for broadcast rights 2,360 2,649 4,997 5,431
------- ------- ------- -------
Broadcast cash flow $20,937 $25,210 $36,761 $42,905
Less:
Corporate expenses 2,364 2,205 5,127 4,241
------- ------- ------- -------
Adjusted EBITDA $18,573 $23,005 $31,634 $38,664
======= ======= ======= =======
Nexstar Broadcasting Group, Inc.
Reconciliation Between Actual Consolidated Statements of Operations
and Free Cash Flow (Non-GAAP Measure)
(in thousands)
Three Months Six Months
Ended Ended
June 30, June 30,
---------------- -----------------
2005 2004 2005 2004
------ ------- ------- -------
(Unaudited) (Unaudited)
Income from operations $7,016 $11,671 $ 8,836 $14,428
Add:
Depreciation 4,327 4,208 8,750 9,331
Amortization of intangible assets 6,647 6,969 13,409 13,889
Amortization of broadcast rights,
excluding barter 2,296 2,656 4,981 5,659
Loss on property held for sale 616 - 616 -
Loss (gain) on asset disposal
(including deferred gain
recognition), net 31 22 31 (76)
Less:
Payments for broadcast rights 2,360 2,649 4,997 5,431
Cash interest expense 8,021 10,202 18,014 19,989
Capital expenditures 4,231 1,655 7,105 4,072
Cash taxes, net of refunds (16) 154 115 204
------ ------- ------- -------
Free Cash Flow $6,337 $10,866 $ 6,392 $13,535
====== ======= ======= =======
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
Loss (gain) on asset disposal
(including deferred gain
recognition), net (98) -- (98)
Trade and barter expense 5,049 66 5,115
Depreciation and amortization 12,043 2738 12,316
Amortization of broadcast rights,
excluding barter 3,003 185 3,188
---------- ---------- ----------
Total operating expenses 51,479 2,784 54,263
Income (loss) from operations 2,757 (228) 2,529
Supplemental information:
Broadcast film payments 2,782 185 2,967
Q2 2004 Q2 2004
GAAP Adjustments Pro Forma
----------- ----------- -----------
Revenue
Local $ 39,065 $ 1,572 $ 40,637
National 18,486 583 19,069
Political 4,293 6 4,299
Network Compensation 2,150 189 2,339
Other 1,265 54 1,319
---------- ---------- ----------
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 4,689 28 4,717
---------- ---------- ----------
Total Net Revenue 61,157 2,093 63,250
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
Loss (gain) on asset disposal
(including deferred gain
recognition), net 22 -- 22
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 49,486 1,939 51,425
Income (loss) from operations 11,671 154 11,825
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
Loss (gain) on asset disposal
(including deferred gain
recognition), net (109) -- (109)
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 51,015 1,387 52,402
Income (loss) from operations 8,869 (1) 8,868
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
Loss (gain) on asset disposal
(including deferred gain
recognition), net 331 -- 331
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 56.201 504 56,705
Income (loss) from operations 14,262 28 14,290
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,
WUTR, which Mission began operating in April 2004 after completing its
acquisition of the station, and WTVO, which Mission began operating
under a TBA in November 2004. Adjustments in the 2004 second quarter
reflect contributions from KLST in April and May 2004 and WTVO for the
entire quarter. Adjustments in the 2004 third quarter reflect
contributions from WTVO for the entire quarter. Adjustments in the
2004 fourth quarter reflect contributions from WTVO in October 2004.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion