08.12.2009 04:00 PM
Nexstar Revenues Drop Less Than Most Broadcasters
IRVING, TEXAS: Nexstar Broadcasting’s 63 TV stations finished the second quarter with a smaller revenue decline than most across the industry. Nexstar (NASDAQ: NXST) revenues came in at $62.2 million, down 12 percent from $70.6 million, a record for NSXT, during 2Q08. Broadcasters across the country are reporting revenues declines of around 20 percent.
Nexstar wasn’t immune to the economic downturn predicated by diminished political and auto spending. Political advertising revenues were down $2.8 million, or 77 percent, compared to last year. The overall declines was somewhat offset by a 68 percent increase in retransmission revenues totaling $7.9 million. Nexstar’s management contract for Four Points Media also kicked in and generated around $500,000.
For the quarter ending June 30, net loss was $1.2 million, compared to net income of $3.9 million a year ago. Operating income was $9 million, versus $16.2 million in 2Q08. Broadcast cash flow was $20.1 million versus $28.3 million.
Nexstar’s former CFO, Matthew Devine, who resigned in May, was replaced during the second quarter by Tom Carter, who worked with Nexstar’s lead banker for 13 years.
As of June 30, 2009, Nexstar had net debt of $658.5 million and leverage of 5.6x compared to its permitted convenant of 6.5x.
-- Deborah D. McAdams
More TVB coverage of Nexstar:
May 12, 2009: “Nexstar CFO Resigns”
Matthew E. Devine, stepped down as executive vice president and chief financial officer of Nexstar Broadcasting, the company said Monday. The move was effective the same day. Nexstar (NASDAQ: NXST) said Devine left to “pursue other opportunities.” Shirley E. Green, Nexstar Broadcasting vice president, controller and secretary, will now also serve as interim CFO.
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. The result came in more than 12 percent higher than the $71.6 million Nexstar posted 4Q07.
March 23, 2009: “Nexstar to Manage Four Points TV Stations”
Nexstar Broadcasting Group announced has agreed to operate the seven TV stations owned by Four Points Media Group. Under deal terms, Nexstar receives a management fee of $2 million a year plus annual incentive compensation based on cash flow of the stations.