Provided By Business Wire
Last update: May 8, 2025
Nexstar Media Group, Inc. (NASDAQ: NXST) (“Nexstar” or the “Company”) today reported financial results for the first quarter ended March 31, 2025 as summarized below. Please visit Nexstar’s website to view the full press release.
STATEMENT FROM PERRY A. SOOK, FOUNDER, CHAIRMAN AND CEO
“Nexstar delivered solid first quarter Net Revenue, Adjusted EBITDA, and Adjusted Free Cash Flow, driven by record first quarter distribution revenue and disciplined expense management. As the nation’s largest local broadcaster, we strategically use our scale to drive strong operating results and cash flow and facilitate organic growth initiatives as we further elevate The CW and NewsNation to top-tier networks. During the quarter we deployed our Adjusted Free Cash Flow to repay debt, pay dividends, repurchase stock and – what we hope to be an increasing use of our strong balance sheet – make an acquisition. For the balance of 2025, we remain focused on renewing distribution contracts representing approximately 60% of our subscriber base in total for the year, continuing our path towards profitability at The CW, preparing for the 2026 political cycle, and pursuing deregulation.”
2025 First Quarter Financial Summary
($ in millions) |
|
|
Three Months Ended March 31, |
|||||
|
|
|
2025 |
|
2024 |
|
% Change |
|
Distribution |
|
|
$762 |
|
$761 |
|
0.1 |
|
Advertising |
|
|
460 |
|
512 |
|
(10.2) |
|
Other |
|
|
12 |
|
11 |
|
9.1 |
|
Net Revenue |
|
|
$1,234 |
|
$1,284 |
|
(3.9) |
|
Net Income |
|
|
$97 |
|
$167 |
|
(41.9) |
|
% Margin(1) |
|
|
7.9% |
|
13.0% |
|
(5.1) |
|
Adjusted EBITDA(2) |
|
|
$381 |
|
$452 |
|
(15.7) |
|
% Margin(1) |
|
|
30.9% |
|
35.2% |
|
(4.3) |
|
Net Cash Provided by Operating Activities |
|
|
$337 |
|
$276 |
|
22.1 |
|
Adjusted Free Cash Flow(2) |
|
|
$348 |
|
$389 |
|
(10.5) |
(1) |
Net Income margin is Net Income as a percentage of Net Revenue. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of Net Revenue. |
|
(2) |
Changes were made to these definitions in the third quarter of 2024. Please refer to the “Definitions and Disclosures Regarding Non-GAAP Financial Information” section herein, the reconciliations at the end of this press release and additional information on our website nexstar.tv. |
|
Company and Business Highlights
Financial Results
Financial Results (cont’d)
Capital Allocation
($ in millions, shares in thousands) |
|
Three Months Ended March 31, |
|
||
|
|
2025 |
|
2024 |
|
Cash Used For |
|
|
|
|
|
Debt repayment |
|
$31 |
|
$30 |
|
Acquisitions |
|
22 |
|
- |
|
Stockholder return |
|
132 |
|
168 |
|
Common stock dividends |
|
57 |
|
57 |
|
Stock repurchases |
|
75 |
|
111 |
|
Shares Outstanding |
|
|
|
|
|
End of period |
|
30,358 |
|
33,038 |
|
Less: Beginning of period |
|
30,621 |
|
33,601 |
|
Change in shares outstanding |
|
(263) |
|
(563) |
|
% Change |
|
(0.9%) |
|
(1.7%) |
|
Debt, Cash and Leverage
($ in millions) |
|
March 31, 2025 |
|
December 31, 2024 |
|
Cash on Hand |
|
$253 |
|
$144 |
|
Revolving Credit Facilities |
|
$62 |
|
$62 |
|
First Lien Term Loans |
|
3,722 |
|
3,750 |
|
5.625% Senior Unsecured Notes due 2027 |
|
1,716 |
|
1,716 |
|
4.75% Senior Unsecured Notes due 2028 |
|
995 |
|
995 |
|
Total Debt |
|
$6,495 |
|
$6,523 |
|
First 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. The dial in number for the audio conference call is +1 877-407-9208 or +1 201-493-6784, conference ID 13752833 (domestic and international callers). Participants can also listen to a live webcast of the call through the “Events and Presentations” section under “Investor Relations” on Nexstar’s website at nexstar.tv. A webcast replay will be available for 90 days following the live event at nexstar.tv.
Forward-Looking Statements
This communication 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, Nexstar claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this communication, concerning, among other things, future financial performance, including changes in net revenue, operating expenses and cash flow, involve risks and uncertainties, and are subject to change based on various important factors, including the impact of changes in national and regional economies, the ability to service and refinance our outstanding debt, successful integration of business acquisitions (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, volatility in programming costs, the effects of governmental regulation of broadcasting, industry consolidation, technological developments and major world news events. Nexstar undertakes 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 communication 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 Nexstar’s other filings with the Securities and Exchange Commission.
Definitions and Disclosures Regarding Non-GAAP Financial Information
Adjusted EBITDA is calculated as net income, plus or (minus): transaction, other one-time and restructuring expenses, stock-based compensation expense, depreciation and amortization expense (excluding amortization of broadcast rights), amortization of basis difference of equity method investments, (gain) loss on asset disposal, impairment charges, interest expense, net, pension and other postretirement plans costs (credit), income tax expense (benefit) and other operating and non-operating expense (income). We consider Adjusted EBITDA to be an indicator of our assets’ operating performance.
Free Cash Flow is calculated as net cash provided by operating activities less capital expenditures.
Adjusted Free Cash Flow is calculated as Free Cash Flow plus or (minus): transaction, other one-time and restructuring expenses, changes in operating assets and liabilities, net of acquisitions (excluding changes in income tax payable), taxes paid on sale of assets, pension and other postretirement plans costs (credit), (payments) for capitalized software obligations, proceeds from disposal of assets and insurance recoveries and other expense (income), cash contribution from (distribution to) noncontrolling interests and other items. We consider Adjusted Free Cash Flow to be an indicator of our liquidity. We consider Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be available for use in ongoing operations, debt payments, pension contributions, dividends, share repurchases, acquisitions and other items. Adjusted Free Cash Flow is not intended to represent the amount of cash flow available for discretionary expenditures as certain items and non-discretionary expenditures, such as changes in working capital, mandatory debt service requirements and pension contributions, are not deducted from this measure.
For a reconciliation of these non-GAAP financial measurements to the GAAP financial results cited in this news announcement, please see the supplemental tables at the end of this release.
About Nexstar Media Group, Inc.
Nexstar Media Group, Inc. (NASDAQ: NXST) is a leading diversified media company that produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms, including more than 316,000 hours of programming produced annually by its business units. Nexstar owns America’s largest local television broadcasting group comprised of top network affiliates, with more than 200 owned or partner stations in 116 U.S. markets reaching 220 million people. Nexstar’s national television properties include The CW, America’s fifth major broadcast network, NewsNation, our national news network providing “News for All Americans,” popular entertainment multicast networks Antenna TV and Rewind TV, and a 31.3% ownership stake in TV Food Network. The Company’s portfolio of digital assets, including its local TV station websites, The Hill and NewsNationNow.com, are collectively a Top 10 U.S. digital news and information property. For more information, please visit nexstar.tv.
Nexstar Media Group, Inc. |
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Three Months Ended March 31, |
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|
2025 |
2024 |
||
Net revenue |
$1,234 |
$1,284 |
||
|
|
|
||
Operating expenses: |
|
|
||
Direct operating |
551 |
548 |
||
Selling, general and administrative |
205 |
217 |
||
Corporate |
52 |
55 |
||
Depreciation and amortization |
205 |
190 |
||
Other |
1 |
(1) |
||
Total operating expenses |
1,014 |
1,009 |
||
Income from operations |
220 |
275 |
||
Income from equity method investments, net |
8 |
19 |
||
Interest expense, net |
(97) |
(114) |
||
Pension and other postretirement plans credit, net |
8 |
7 |
||
Gain on disposal of an investment |
- |
40 |
||
Other (expenses) income, net |
(1) |
1 |
||
Income before income taxes |
138 |
228 |
||
Income tax expense |
(41) |
(61) |
||
Net income |
97 |
167 |
||
Net loss attributable to noncontrolling interests |
11 |
8 |
||
Net income attributable to Nexstar Media Group, Inc. |
$108 |
$175 |
||
|
|
|
||
Net income per share available to common stockholders: |
|
|
||
Basic |
$3.41 |
$5.25 |
||
Diluted |
$3.37 |
$5.16 |
||
|
|
|
||
Weighted average number of common shares outstanding: |
|
|
||
Basic (in thousands) |
30,532 |
33,449 |
||
Diluted (in thousands) |
30,927 |
34,024 |
||
Nexstar Media Group, Inc. |
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|
Three Months Ended March 31, |
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|
2025 |
2024 |
||
Cash flows from operating activities: |
|
|
||
Net income |
$97 |
$167 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||
Depreciation and amortization |
205 |
190 |
||
Stock-based compensation expense |
18 |
18 |
||
Gain on disposal of an investment |
- |
(40) |
||
Deferred income taxes |
(16) |
(12) |
||
Payments for broadcast rights |
(80) |
(76) |
||
Income from equity method investments, net |
(8) |
(19) |
||
Distribution from equity method investments – return on capital |
114 |
120 |
||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
||
Accounts receivable |
(2) |
45 |
||
Prepaid and other current assets |
(8) |
(18) |
||
Other noncurrent assets |
3 |
(11) |
||
Accounts payable |
(16) |
(114) |
||
Accrued expenses and other current liabilities |
(21) |
(38) |
||
Income tax payable |
54 |
71 |
||
Other noncurrent liabilities |
(13) |
(10) |
||
Other |
10 |
3 |
||
Net cash provided by operating activities |
337 |
276 |
||
Cash flows from investing activities: |
|
|
||
Purchases of property and equipment |
(35) |
(44) |
||
Payments for acquisitions |
(22) |
- |
||
Proceeds from disposal of an investment |
- |
40 |
||
Other investing activities, net |
(4) |
- |
||
Net cash used in investing activities |
(61) |
(4) |
||
Cash flows from financing activities: |
|
|
||
Proceeds from debt issuance, net of debt discounts |
- |
55 |
||
Repayments of long-term debt |
(31) |
(85) |
||
Purchase of treasury stock |
(75) |
(111) |
||
Common stock dividends paid |
(57) |
(57) |
||
Contribution from redeemable noncontrolling interests |
- |
19 |
||
Other financing activities, net |
(4) |
(3) |
||
Net cash used in financing activities |
(167) |
(182) |
||
Net increase in cash and cash equivalents |
109 |
90 |
||
Cash and cash equivalents at beginning of period |
144 |
147 |
||
Cash and cash equivalents at end of period |
$253 |
$237 |
||
Nexstar Media Group, Inc. |
||||
|
Three Months Ended March 31, |
|||
|
2025 |
2024 |
||
|
|
|
||
Net income |
$97 |
$167 |
||
Add (Less): |
|
|
||
Transaction, other one-time and restructuring expenses(1) |
- |
1 |
||
Stock-based compensation expense |
18 |
18 |
||
Depreciation and amortization expense |
205 |
190 |
||
(Amortization) of broadcast rights expense |
(88) |
(69) |
||
Amortization of basis difference of equity method investments |
18 |
18 |
||
Interest expense, net |
97 |
114 |
||
Pension and other postretirement plans (credit), net |
(8) |
(7) |
||
Income tax expense |
41 |
61 |
||
Gain on disposal of an investment |
- |
(40) |
||
Other |
1 |
(1) |
||
Adjusted EBITDA |
$381 |
$452 |
||
(1) |
Primarily includes severance, legal and other direct expenses associated with our completed or proposed strategic transactions and/or acquisitions, any fees or other direct expenses associated with financing transactions, and severance and other direct expenses associated with restructuring activities. |
|
Nexstar Media Group, Inc. |
||||
|
Three Months Ended March 31, |
|||
|
2025 |
2024 |
||
|
|
|
||
Net cash provided by operating activities |
$337 |
$276 |
||
Add (Less): |
|
|
||
Capital expenditures |
(35) |
(44) |
||
Free Cash Flow |
$302 |
$232 |
||
|
|
|
||
Add (Less): |
|
|
||
Transaction, other one-time and restructuring expenses(1) |
- |
1 |
||
Changes in operating assets and liabilities(2) |
3 |
75 |
||
Changes in income tax payable(3) |
54 |
71 |
||
Pension and other postretirement plans (credit), net |
(8) |
(7) |
||
Payments for capitalized software obligations |
(3) |
(1) |
||
Proceeds from disposal of assets and insurance recoveries |
- |
1 |
||
Cash contribution from redeemable noncontrolling interests |
- |
19 |
||
Other |
- |
(2) |
||
Adjusted Free Cash Flow |
$348 |
$389 |
(1) |
Primarily includes severance, legal and other direct expenses associated with our completed or proposed strategic transactions and/or acquisitions, any fees or other direct expenses associated with financing transactions, and severance and other direct expenses associated with restructuring activities. |
|
(2) |
Removes the impact of changes in operating assets and liabilities (including changes in income tax payable), net of acquisitions. |
|
(3) |
Includes changes in income tax payable to reflect all tax payments. |
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