Nexstar Reports 'Outstanding' Year

Nexstar Media Group Wednesday reported financial results for the fourth quarter of 2019 that included net revenue of $1.1 billion, up 37.9% from $798 million in the same quarter of 2018.

The results reflect the impact of Nexstar’s acquisition of Tribune Media, including WGN 720 AM, that closed on Sept. 19.

The revenue numbers break down to:

• Core advertising revenue of $525,458,000, a 76% increase.
• Political advertising revenue of $36,526,000, down 73.9%.
• Digital revenue of $74,310,000, up 14.2%.
• Distribution fee revenue of $445,831,000, up 56.7%.
• Other revenue of $17,965,000, up 37.9%.
• Fourth quarter net income totaled $113,851,000, a drop of 26.3% from $154,490,000 a year ago.

Perry Sook, Nexstar chairman, president and CEO, said: “Nexstar’s 2019 fourth quarter financial results capped an outstanding year for the company as we delivered another period of record off-cycle political year operating performance with net revenue, profitability, and cash flow metrics (before one-time transaction expenses) exceeding consensus expectations. Throughout 2019 we deployed Nexstar’s broad range of proven M&A, integration, financing, operating and other strategies to build scale and our competitive position, serve the communities where we operate, and create new value for shareholders. As a result, 2020 is off to a strong start as we embark upon a significant new free cash flow growth cycle which will fuel a material reduction in our net leverage while supporting our goals of driving shareholder returns.

Perry Sook

“In 2019, we closed the highly accretive acquisition of Tribune Media creating the largest U.S. television broadcast station group; entered into deleveraging purchase and sale agreements with Fox Television Stations; completed new multi-year retransmission consent agreements representing approximately 70% of our subscribers; entered into new long-term network affiliation agreements with CBS, Fox and NBC and realigned our digital business to drive future growth and profitability. Our expanded operating base generated approximately $521 million in full year free cash flow before one-time expenses enabling us to invest in our broadcast and technology platform, while enhancing shareholder value through our return of capital and leverage reduction initiatives. During the year, we returned $82.8 million to shareholders in the form of dividends and, in the fourth quarter, we allocated $45.1 million of cash from operations to opportunistically repurchase approximately 440,000 Nexstar shares at an average purchase price of $102.57 per share, reducing our basic share count to 45.7 million outstanding class A common shares.