Nexstar Broadcasting Updates Third 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) --Expects 2004 Third Quarter Net Revenue To Increase Approximately 12 - 13% on Political Advertising Revenue of $6 Million --Enters Into Local Service Agreement with WTVO 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. --To Report Third Quarter Results and Host Conference Call and Webcast on November 4th Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) today updated its financial outlook for the third quarter ended September 30, 2004. The Company will release its full third quarter and nine-month financial results before the market opens on Thursday, November 4th and will host a conference call and simultaneous web cast that morning at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . Third Quarter Update Nexstar anticipates that reported net revenue for the 2004 third quarter will be approximately $59.0 - 60.0 million, an increase of approximately 12 - 13% over 2003 third quarter net revenue of $52.9 million, an adjustment from its previously forecasted increase of 18 - 20%. On a 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 basis (as if the acquisitions of WUTR in Utica, NY by 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. and KLST 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 and KFTA/KNWA in Ft. Smith-Fayetteville, AR by Nexstar were completed on July 1, 2003), the Company anticipates total advertising revenue (which includes local, national and political revenue) increasing approximately 10% - 11%, rather than the mid- mid- pref. Middle: midbrain. to high-teens percentage increase forecast at the time the Company reported it second quarter results in August. The shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. of approximately $3.0 - 4.0 million in political advertising revenue was due to lower political advertising revenue at the Company's television stations in Missouri This is a list of broadcast television stations serving cities in the U.S. state of Missouri. Full-power stations Area served City of license ch Callsign Network Cape Girardeau ~Harrisburg, Illinois 3 WSIL-TV ABC , 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. and 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 now expects political advertising revenue for the 2004 third quarter to be approximately $6 million. The net revenue shortfall will be partially offset by better-than-expected cost management. Nexstar now expects 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. , selling, general and administrative expenses, and program payments for the 2004 third quarter to be approximately $32.7 million, a decrease of approximately 5.0% over pro forma 2003 third quarter levels of $34.4 million, rather than the 3.0% - 3.5% reduction that was originally forecast. Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, "Through the first eight months of the year, political advertising revenue paced ahead of our internal expectations, which were based on historical trends and spending patterns from prior campaign years and election cycles. In September, however, unforeseen shifts in national and statewide campaign strategies in key 'battleground' markets caused total political advertising levels for the Company to fall short of our internal expectations. "Given our limited visibility on political spending activity, we cannot predict with certainty how much political advertising Nexstar will capture in the 2004 fourth quarter. However, we expect that factors influencing third quarter political revenue will persist, and we will provide a more complete update when we report third quarter financial results shortly after Election Day. "Additionally, since our initial third quarter forecast, the Company has continued to exercise careful expense management, allowing us to exceed our prior goals in this area." WTVO Agreement Separately, Nexstar announced today that Mission Broadcasting, Inc., Nexstar's broadcasting associate, has entered into a definitive agreement to acquire 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 serving Rockford, Illinois, for $20.75 million. The transaction is subject to FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. approval and is expected to close in mid-2005. Nexstar has entered into Local Service Agreements with Mission for WTVO and will begin providing services to the station through its owned and operated station, WQRF-TV, beginning on November 1, 2004. For the fourth quarter of 2004, WTVO is expected to contribute approximately $1.0 million to Nexstar's reported net revenue and add approximately $0.8 million of direct station operating expenses and selling, general and administrative expenses to Nexstar's cost structure. Upon full integration of the station, which is expected to occur during 2005, Nexstar anticipates that WTVO will deliver approximately $5.5 - 6.0 million of reported net revenue and approximately $3.0 million of direct station operating expenses and selling, general and administrative expenses to Nexstar's financial results. Third Quarter Conference Call and Webcast Information To access the third quarter conference call scheduled for November 4, interested parties may dial 800-946-0782. A replay will be available through January 3, 2005 by dialing 800-203-1112 and entering access code 9046000. Participants can also listen to a live webcast of the call through the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Nexstar's website at www.nexstar.tv. A webcast replay will be available for 60 days following the live event. Please call five minutes in advance to ensure that you are connected. Questions and answers will be taken only from participants on the conference call. For the webcast, please allow 15 minutes to register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary software. Both the call and webcast are open to the general public. About Nexstar Broadcasting Group, Inc. Nexstar Broadcasting Group, upon completion of all pending transactions, owns, operates, programs or provides sales and other services to 46 television stations in 27 markets in the states of Illinois, 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, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama 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 . Nexstar'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, 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 Market Station Affiliation Status (1)
------- --------------------------- ------- ------------ ----------
Washington, DC/Hagerstown, WHAG NBC O&O
8 MD(2)
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
Champaign-Springfield- WCIA CBS O&O
82 Decatur, IL
WCFN UPN O&O
99 Evansville, IN WTVW Fox O&O
105 Ft. Wayne, IN WFFT Fox O&O
Ft. Smith - Fayetteville - KFTA/ NBC Acq. Pending
108 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 Acq. Pending
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, 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
Terre Haute, IN WTWO NBC O&O
148 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
San Angelo, TX KSAN NBC LSA
195 KLST CBS Acq. Pending
201 St. Joseph, MO KQTV ABC O&O
(1) O&O refers to stations that we own and operate. 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.
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 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. 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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