11.11.2009 01:00 PM
Nexstar 3Q Revenues Fall Mostly on Political
IRVING, TEXAS: Nexstar’s 63 TV stations generated $60.4 million
in the third quarter, down 14 percent from the year-ago period revenues of
$70.3 million. Lower political spending accounted for $6.8 million of the
decline, offsetting a 28 percent increase in revenues from retrans and other
“Third-quarter retransmission consent revenues increased 27.4 percent to $7.9
million while e-Media revenues rose 8.8 percent to $3 million,” said Nexstar
chief Perry Sook. “While we continue to generate record aggregate quarterly
revenue from these sources, Nexstar also recorded approximately $500,000 of
management fee revenue in the 2009 third quarter. As a result, despite the
unfavorable economic environment, Nexstar’s 2009 revenue comparisons, excluding
political, have improved on a quarterly sequential basis throughout the year.
Net loss was $18.4 million versus $45.3 million. Operational loss--sans
interest expense and other items--was $13.6 million versus $36.8 million.
Nexstar (NASDAQ: NXST) took a $16.2 million impairment charge during 3Q09
compared to a $48.2 million impairment in 3Q08, both related to broadcast
Sook said Nexstar was seeing improvements in core advertising activity this
fall,” and the company was well-positioned to bring in political and Olympic
revenues next year. “Looking forward, with Nexstar’s de-leveraging initiatives
and streamlined operating and cost structure, we are confident that even modest
increases in advertising spending will result in meaningful overall gains in
our operating results.”
Nexstar had net debt of $504.5 million at the end of the quarter on Sept. 30,
excluding $171.1 million in PIK notes. It’s total leverage ratio was 6.5x,
within its permitted covenant of 6.75x.
Shares of the company rose slightly yesterday on a market surge and settled
today around $2.50.
More coverage of Nexstar:
25, 2009: “Nexstar Shares Move
Most on NASDAQ” Nexstar Broadcasting Group shares jumped more than 60
percent in trading today before settling down to a 40 percent gain at around
August 12, 2009: “Nexstar
Revenues Drop Less Than Most Broadcasters”
Nexstar revenues came in at $62.2 million, down 12 percent from $70.6 million.
May 12, 2009: “Nexstar
Matthew E. Devine, stepped down as executive vice president and chief financial
officer of Nexstar Broadcasting.
April 1, 2009: “Nexstar
4Q Revenues Rise”
The 50 or so Nexstar Broadcasting TV stations generated revenues of $80.3
million during the three months ending Dec. 31 2008, up 12 percent from a year
March 23, 2009: “Nexstar
to Manage Four Points TV Stations”
Under deal terms, Nexstar receives a management fee of $2 million a year plus
annual incentive compensation based on cash flow of the stations.