Nexstar Media Group Reports Fourth Quarter Net Revenue of $1.3 Billion
Q4 Consolidated Net Revenue Drives Operating Income of
Quarterly and Full Year Return of Capital to Shareholders of
Issues 2024 Adjusted EBITDA Guidance of
Summary 2023 Fourth Quarter and Full Year Highlights
|
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|
Three Months Ended |
|
|
% |
|
|
Year Ended |
|
|
% |
|
|||||||||||||||||
($ in millions) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
||||||||||
Core Advertising Revenue |
|
$ |
449 |
|
|
$ |
477 |
|
|
|
(5.9 |
) |
|
$ |
1,660 |
|
|
$ |
1,718 |
|
|
|
(3.4 |
) |
||||
Political Advertising Revenue |
|
|
|
30 |
|
|
|
|
266 |
|
|
|
(88.7 |
) |
|
|
|
66 |
|
|
|
|
506 |
|
|
|
(87.0 |
) |
Total Television Advertising Revenue |
|
$ |
479 |
|
|
$ |
743 |
|
|
|
(35.5 |
) |
|
$ |
1,726 |
|
|
$ |
2,224 |
|
|
|
(22.4 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Distribution Revenue |
|
|
|
704 |
|
|
|
|
616 |
|
|
+14.3 |
|
|
|
|
2,727 |
|
|
|
|
2,571 |
|
|
+6.1 |
|
||
Digital Revenue |
|
|
|
106 |
|
|
|
|
112 |
|
|
|
(5.4 |
) |
|
|
|
395 |
|
|
|
|
365 |
|
|
+8.2 |
|
|
Other Revenue |
|
|
|
15 |
|
|
|
|
16 |
|
|
|
(6.3 |
) |
|
|
|
85 |
|
|
|
|
51 |
|
|
+66.7 |
|
|
Net Revenue |
|
$ |
1,304 |
|
|
$ |
1,487 |
|
|
|
(12.3 |
) |
|
$ |
4,933 |
|
|
$ |
5,211 |
|
|
|
(5.3 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from Operations |
|
$ |
230 |
|
|
$ |
294 |
|
|
|
(21.8 |
) |
|
$ |
708 |
|
|
$ |
1,312 |
|
|
|
(46.0 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income |
|
$ |
100 |
|
|
$ |
178 |
|
|
|
(43.8 |
) |
|
$ |
270 |
|
|
$ |
943 |
|
|
|
(71.4 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA (2), (3) |
|
$ |
411 |
|
|
$ |
598 |
|
|
|
(31.3 |
) |
|
$ |
1,469 |
|
|
$ |
2,223 |
|
|
|
(33.9 |
) |
||||
Adjusted EBITDA Margin (4) |
|
|
|
31.5 |
% |
|
|
|
40.2 |
% |
|
|
|
|
|
|
29.8 |
% |
|
|
|
42.7 |
% |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable Free Cash Flow (2), (3) |
|
$ |
265 |
|
|
$ |
422 |
|
|
|
(37.2 |
) |
|
$ |
847 |
|
|
$ |
1,502 |
|
|
|
(43.6 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net Revenue |
|
$ |
1,261 |
|
|
$ |
1,425 |
|
|
|
(11.5 |
) |
|
$ |
4,710 |
|
|
$ |
5,149 |
|
|
|
(8.5 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA (2), (3) |
|
$ |
461 |
|
|
$ |
662 |
|
|
|
(30.4 |
) |
|
$ |
1,726 |
|
|
$ |
2,287 |
|
|
|
(24.5 |
) |
||||
Adjusted EBITDA Margin (4) |
|
|
|
36.6 |
% |
|
|
|
46.5 |
% |
|
|
|
|
|
|
36.6 |
% |
|
|
|
44.4 |
% |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free Cash Flow (2), (3) |
|
$ |
295 |
|
|
$ |
458 |
|
|
|
(35.6 |
) |
|
$ |
1,000 |
|
|
$ |
1,538 |
|
|
|
(35.0 |
) |
-
On
September 30, 2022 ,Nexstar completed its acquisition of a 75% ownership interest inThe CW Network, LLC (“The CW”).Nexstar – Consolidated refers to all of the Company’s operations whileNexstar , Ex-The CW refers to the Consolidated results without The CW operations and eliminations. Management believes this presentation to be useful to investors as an indicator of our assets’ operating performance as we are undertaking initiatives to improve the profitability of The CW. See the “Definitions and Disclosures Regarding Non-GAAP Financial Information” section of this press release for more information. - Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of the press release.
-
For the year ended
December 31, 2023 , these metrics exclude the portion of our distribution fromTelevision Food Network, G.P . (“TV Food Network”) related to the net proceeds of an accounts receivable securitization. - Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net revenue.
CEO Comment
“The power of the broadcast model and its ability to reach the largest audience of any medium with important news, sports and entertainment content is as strong as ever, reflected by the record audience delivery for NFL and
“Our strong financial track record supports our commitment to shareholder returns and the enhancement of shareholder value. On average, for the 2022/2023 cycle,
Fourth Quarter and Full Year 2023 Operational Highlights
-
Successfully renewed distribution agreements representing more than 40% of our subscriber base on terms favorable to the Company, positioning
Nexstar to deliver further annual distribution revenue growth. -
Renewed and extended multi-year affiliation agreements with the Fox Network,
MyNetworkTV andThe CW Network . -
Launched
CW Network affiliations onNexstar owned and operated television stations in five markets, including three of the nation’s top-15 television markets, bringing the number ofNexstar and partner-owned CW affiliates to 45, covering more than 39% ofU.S. TV Households. -
Expanded and extended
CW Network affiliation agreements with several broadcast affiliate partners. -
Secured or extended exclusive broadcast rights for
The CW Network to WWE NXT, LIVGolf, Atlantic Coast Conference (ACC) college football and basketball games, and NASCAR Xfinity Series. - NewsNation marked a major cable news milestone by becoming a 24/5 news network and remains America’s fastest growing cable news network in primetime.
-
NewsNation hosted the final GOP Presidential primary debate before the
Iowa caucuses, which was simulcast on The CW. The event delivered more than 4 million combined viewers with NewsNation garnering the largest audience in its three-year history, and the CW simulcast representing the most watched primetime program on the network since 2018. -
Completed first upfront as a consolidated entity for all
Nexstar national properties including NewsNation, The CW, Antenna TV, and The Hill adding 47 new advertisers across these platforms. -
Led the industry in deployment of ATSC 3.0, or NextGen TV, with more than 58 million
U.S. television households now receiving a NextGen TV signal from aNexstar -owned or partner station. -
Closed the acquisitions of
KUSI-TV , an independent station and local news powerhouse inSan Diego, CA , the nation’s 30th largest television market, and WSNN-LD, aMyNetworkTV affiliated low power television station serving theTampa, FL market.
Fourth Quarter 2023 Financial Highlights
-
Fourth quarter net revenue of
$1.3 billion compared to$1.5 billion in the prior year quarter.- The net revenue comparison primarily reflects the year-over-year decline in cyclical political advertising, offset, in part, by growth in our distribution revenue.
- Excluding political advertising revenue, net revenue increased 4.3% year-over-year.
- Approximately 55% of Nexstar’s fourth quarter revenue was generated by distribution and other revenue streams.
-
Fourth quarter core advertising revenue of approximately
$449 million decreased 5.9% year-over-year.- Core television advertising was impacted by continued softness in the advertising market.
-
Fourth quarter political advertising revenue of approximately
$30 million compared to$266 million in the prior year.- The reduction in political television advertising was due to the lack of material election activity in odd years.
-
Record fourth quarter distribution revenue of approximately
$704 million increased 14.3% versus prior year.- Distribution revenue growth was driven by the renewal of the substantial majority of our distribution agreements in 2022 and 2023 on improved terms and annual rate escalators, as well as growth in virtual MVPD revenue, offset, in part, by continued MVPD subscriber attrition and the removal of partner stations from certain MVPDs.
-
Fourth quarter digital revenue of approximately
$106 million decreased 5.4% year-over-year.- Digital revenue was primarily impacted by weakness in national digital advertising, partially offset by year-over-year increases in Nexstar’s local digital advertising revenue and agency services business and ecommerce.
-
On a consolidated basis, fourth quarter Adjusted EBITDA was
$411 million , representing a 31.5% margin, and fourth quarter attributable free cash flow was$265 million .- Fourth quarter Adjusted EBITDA was primarily impacted by the reduction in net revenue year-over-year.
-
Excluding
The CW Network , fourth quarter Adjusted EBITDA was$461 million . -
In the fourth quarter of 2023, the Company used cash on hand and cash flow from operations to:
-
Return
$137 million to shareholders through the repurchase of 629,469 shares of Nexstar’s common stock at an average price of approximately$145.13 per share for a total of$91 million (excluding$5 million that was used to repurchase stock in September and settled in October), and quarterly cash dividend payments of$46 million ; -
Reduce debt by approximately
$32 million .
-
Return
Debt and Leverage Review
-
The consolidated debt of
Nexstar andMission Broadcasting, Inc. (“Mission”), an independently owned variable interest entity, atDecember 31, 2023 was$6.84 billion , including senior secured debt of$4.13 billion . -
The Company calculates its leverage ratios in accordance with the terms of its credit agreements which ratios only include
Nexstar , excluding The CW Network’s operations and cash balance. As ofDecember 31, 2023 ,The CW Network had$52 million of cash on its balance sheet.-
The Company’s first lien net leverage ratio at
December 31, 2023 was 2.25x compared to a covenant of 4.25x. -
The Company’s total net leverage ratio at
December 31, 2023 was 3.76x.
-
The Company’s first lien net leverage ratio at
The table below summarizes the Company’s debt obligations (net of financing costs, discounts and/or premiums).
($ in millions) |
|
|
|
|
||
Revolving Credit Facilities |
|
$ |
62 |
|
$ |
62 |
First Lien Term Loans |
|
|
4,064 |
|
|
4,178 |
5.625% Senior Unsecured Notes due 2027 |
|
|
1,717 |
|
|
1,718 |
4.75% Senior Unsecured Notes due 2028 |
|
|
994 |
|
|
993 |
Total Outstanding Debt |
|
$ |
6,837 |
|
$ |
6,951 |
|
|
|
|
|
||
Unrestricted Cash |
|
$ |
135 |
|
$ |
204 |
Full-Year 2024 Guidance
Based on our current outlook, we are establishing guidance for fiscal 2024 Adjusted EBITDA in a range of
Key factors differing from our current expectations could affect our outlook for Adjusted EBITDA for 2024 either positively or negatively. Those factors include, among other things, the amount of political fundraising and spend on television advertising in our markets, the rate of growth or attrition of pay television subscribers, the health of the local and national advertising markets, the ability to renegotiate affiliation agreements on favorable terms, and the level of distributions related to our 31.3% ownership stake in TV Food Network.
Fourth Quarter Conference Call
Definitions and Disclosures Regarding non-GAAP Financial Information
Adjusted EBITDA is calculated as net income, plus interest expense (net), loss on extinguishment of debt, income tax expense (benefit), depreciation and amortization expense (excluding amortization of broadcast rights for The CW), (gain) loss on asset disposal, transaction and other one-time expenses, impairment charges, (income) loss from equity method investments, distributions from equity method investments and other expense (income), minus reimbursement from the
Adjusted EBITDA for
Free cash flow is calculated as net income, plus interest expense (net), loss on extinguishment of debt, income tax expense (benefit), depreciation and amortization expense (excluding amortization of broadcast rights for The CW), stock-based compensation expense, (gain) loss on asset disposal, transaction and other one-time expenses, impairment charges, (income) loss from equity method investments, distributions from equity method investments and other expense (income), minus payments for broadcast rights (excluding broadcast rights payments for The CW), cash interest expense, capital expenditures, proceeds from disposal of assets and insurance recoveries, and operating cash income tax payments. We consider Free Cash Flow to be an indicator of our assets’ operating performance. In addition, this measure is useful to investors because it is frequently used by industry analysts, investors and lenders as a measure of valuation for broadcast companies, although their definitions of Free Cash Flow may differ from our definition.
Attributable Free Cash Flow is calculated as Consolidated Free Cash Flow, less free cash flow of The CW attributable to its noncontrolling interests.
Free Cash Flow for
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.
With respect to our forward-looking guidance, no reconciliation between a non-GAAP measure to the closest corresponding GAAP measure is included in this release because we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts. We believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. In particular, a reconciliation of forward-looking Free Cash Flow to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures. For example, the definition of Free Cash Flow excludes stock-based compensation expenses specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. In addition, the definition of Free Cash Flow excludes the impact of non-recurring or unusual items such as impairment charges, transaction-related costs and gains or losses on sales of assets which are unpredictable. We expect the variability of these items to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
About
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,
Consolidated Statements of Operations and Comprehensive Income (in millions, except for share and per share amounts, unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net revenue |
|
$ |
1,304 |
|
|
$ |
1,487 |
|
|
$ |
4,933 |
|
|
$ |
5,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses (income): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Direct operating |
|
|
540 |
|
|
|
502 |
|
|
|
2,153 |
|
|
|
2,005 |
|
Selling, general and administrative |
|
|
244 |
|
|
|
278 |
|
|
|
903 |
|
|
|
904 |
|
Corporate |
|
|
45 |
|
|
|
49 |
|
|
|
193 |
|
|
|
198 |
|
Depreciation and amortization |
|
|
210 |
|
|
|
231 |
|
|
|
941 |
|
|
|
662 |
|
|
|
|
35 |
|
|
|
133 |
|
|
|
35 |
|
|
|
133 |
|
Other |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3 |
) |
Total operating expenses |
|
|
1,074 |
|
|
|
1,193 |
|
|
|
4,225 |
|
|
|
3,899 |
|
Income from operations |
|
|
230 |
|
|
|
294 |
|
|
|
708 |
|
|
|
1,312 |
|
Gain on bargain purchase |
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
56 |
|
Income from equity method investments, net |
|
|
23 |
|
|
|
43 |
|
|
|
104 |
|
|
|
153 |
|
Interest expense, net |
|
|
(115 |
) |
|
|
(103 |
) |
|
|
(447 |
) |
|
|
(337 |
) |
Pension and other postretirement plans credit, net |
|
|
9 |
|
|
|
10 |
|
|
|
36 |
|
|
|
43 |
|
Other expenses, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(10 |
) |
Income before income taxes |
|
|
147 |
|
|
|
246 |
|
|
|
401 |
|
|
|
1,217 |
|
Income tax expense |
|
|
(47 |
) |
|
|
(68 |
) |
|
|
(131 |
) |
|
|
(274 |
) |
Net income |
|
|
100 |
|
|
|
178 |
|
|
|
270 |
|
|
|
943 |
|
Net loss attributable to noncontrolling interests |
|
|
15 |
|
|
|
25 |
|
|
|
76 |
|
|
|
28 |
|
Net income attributable to |
|
$ |
115 |
|
|
$ |
203 |
|
|
$ |
346 |
|
|
$ |
971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per common share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
3.36 |
|
|
$ |
5.42 |
|
|
$ |
9.78 |
|
|
$ |
24.68 |
|
Diluted |
|
$ |
3.32 |
|
|
$ |
5.30 |
|
|
$ |
9.64 |
|
|
$ |
24.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic (in thousands) |
|
|
33,869 |
|
|
|
37,523 |
|
|
|
35,317 |
|
|
|
39,349 |
|
Diluted (in thousands) |
|
|
34,244 |
|
|
|
38,320 |
|
|
|
35,834 |
|
|
|
40,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
100 |
|
|
$ |
178 |
|
|
$ |
270 |
|
|
$ |
943 |
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in unrecognized amounts included in pension and other postretirement benefit obligations, net of tax benefit of |
|
|
(26 |
) |
|
|
(114 |
) |
|
|
(26 |
) |
|
|
(114 |
) |
Total comprehensive income |
|
|
74 |
|
|
|
64 |
|
|
|
244 |
|
|
|
829 |
|
Total comprehensive loss attributable to noncontrolling interests |
|
|
15 |
|
|
|
25 |
|
|
|
76 |
|
|
|
28 |
|
Total comprehensive income attributable to |
|
$ |
89 |
|
|
$ |
89 |
|
|
$ |
320 |
|
|
$ |
857 |
|
Reconciliation of Adjusted EBITDA (Non-GAAP Measure) ($ in millions, unaudited) |
||||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|
||||||||||||||||||||
Adjusted EBITDA: |
|
|
The CW |
|
Eliminations
|
|
Consolidated |
|
|
|
The CW |
|
Eliminations
|
|
Consolidated |
|
||||||||
Net income (loss) |
$ |
152 |
|
$ |
(52 |
) |
$ |
- |
|
$ |
100 |
|
$ |
272 |
|
$ |
(94 |
) |
$ |
- |
|
$ |
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Add (Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense (income), net |
|
116 |
|
|
(1 |
) |
|
- |
|
|
115 |
|
|
104 |
|
|
(1 |
) |
|
- |
|
|
103 |
|
Income tax expense |
|
47 |
|
|
- |
|
|
- |
|
|
47 |
|
|
68 |
|
|
- |
|
|
- |
|
|
68 |
|
Depreciation and amortization expense(1) |
|
138 |
|
|
2 |
|
|
- |
|
|
140 |
|
|
140 |
|
|
1 |
|
|
- |
|
|
141 |
|
Stock-based compensation expense |
|
16 |
|
|
- |
|
|
- |
|
|
16 |
|
|
18 |
|
|
- |
|
|
- |
|
|
18 |
|
Loss on asset disposal and operating lease terminations, net |
|
1 |
|
|
- |
|
|
- |
|
|
1 |
|
|
3 |
|
|
- |
|
|
- |
|
|
3 |
|
Transaction and other one-time expenses |
|
1 |
|
|
1 |
|
|
- |
|
|
2 |
|
|
- |
|
|
30 |
|
|
- |
|
|
30 |
|
|
|
35 |
|
|
- |
|
|
- |
|
|
35 |
|
|
133 |
|
|
- |
|
|
- |
|
|
133 |
|
Income from equity method investments, net |
|
(23 |
) |
|
- |
|
|
- |
|
|
(23 |
) |
|
(43 |
) |
|
- |
|
|
- |
|
|
(43 |
) |
Distributions from equity method investments |
|
12 |
|
|
- |
|
|
- |
|
|
12 |
|
|
15 |
|
|
- |
|
|
- |
|
|
15 |
|
Pension and other postretirement plans credit, net |
|
(9 |
) |
|
- |
|
|
- |
|
|
(9 |
) |
|
(10 |
) |
|
- |
|
|
- |
|
|
(10 |
) |
Gain on bargain purchase |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2 |
) |
|
- |
|
|
- |
|
|
(2 |
) |
Payments for broadcast rights(1) |
|
(18 |
) |
|
- |
|
|
- |
|
|
(18 |
) |
|
(28 |
) |
|
- |
|
|
- |
|
|
(28 |
) |
Adjusted EBITDA before transaction, one-time and other non-cash items |
|
468 |
|
|
(50 |
) |
|
- |
|
|
418 |
|
|
670 |
|
|
(64 |
) |
|
- |
|
|
606 |
|
Margin % |
|
37.1 |
% |
|
(90.9 |
%) |
|
- |
|
|
32.1 |
% |
|
47.0 |
% |
|
(97.0 |
%) |
|
- |
|
|
40.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Less: Transaction and other one-time expenses |
|
(1 |
) |
|
(1 |
) |
|
- |
|
|
(2 |
) |
|
- |
|
|
(30 |
) |
|
- |
|
|
(30 |
) |
Adjusted EBITDA before non-cash and other items |
|
467 |
|
|
(51 |
) |
|
- |
|
|
416 |
|
|
670 |
|
|
(94 |
) |
|
- |
|
|
576 |
|
Margin % |
|
37.0 |
% |
|
(92.7 |
%) |
|
- |
|
|
31.9 |
% |
|
47.0 |
% |
|
(142.4 |
%) |
|
- |
|
|
38.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Add (Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
(16 |
) |
|
- |
|
|
- |
|
|
(16 |
) |
|
(18 |
) |
|
- |
|
|
- |
|
|
(18 |
) |
Pension and other postretirement plans credit, net |
|
9 |
|
|
- |
|
|
- |
|
|
9 |
|
|
10 |
|
|
- |
|
|
- |
|
|
10 |
|
Transaction and other one-time expenses |
|
1 |
|
|
1 |
|
|
- |
|
|
2 |
|
|
- |
|
|
30 |
|
|
- |
|
|
30 |
|
Adjusted EBITDA |
$ |
461 |
|
$ |
(50 |
) |
$ |
- |
|
$ |
411 |
|
$ |
662 |
|
$ |
(64 |
) |
$ |
- |
|
$ |
598 |
|
Margin % |
|
36.6 |
% |
|
(90.9 |
%) |
|
- |
|
|
31.5 |
% |
|
46.5 |
% |
|
(97.0 |
%) |
|
- |
|
|
40.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue |
$ |
1,261 |
|
$ |
55 |
|
$ |
(12 |
) |
$ |
1,304 |
|
$ |
1,425 |
|
$ |
66 |
|
$ |
(4 |
) |
$ |
1,487 |
|
- Only the columns including The CW do not adjust for amortization of broadcast rights (already deducted from Net Income) and payments for broadcast rights (i.e. programming payments). Amortization of broadcast rights for The CW includes licenses for original entertainment and sports programming which match timing of revenues.
Reconciliation of Adjusted EBITDA (Non-GAAP Measure) ($ in millions, unaudited) |
||||||||||||||||||||||||
|
Year Ended |
|
Year Ended |
|
||||||||||||||||||||
Adjusted EBITDA: |
|
|
The CW |
|
Eliminations
|
|
Consolidated |
|
|
|
The CW |
|
Eliminations
|
|
Consolidated |
|
||||||||
Net income (loss) |
$ |
543 |
|
$ |
(273 |
) |
$ |
- |
|
$ |
270 |
|
$ |
1,037 |
|
$ |
(94 |
) |
$ |
- |
|
$ |
943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Add (Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense (income), net |
|
450 |
|
|
(3 |
) |
|
- |
|
|
447 |
|
|
338 |
|
|
(1 |
) |
|
- |
|
|
337 |
|
Income tax expense |
|
131 |
|
|
- |
|
|
- |
|
|
131 |
|
|
274 |
|
|
- |
|
|
- |
|
|
274 |
|
Depreciation and amortization expense(1) |
|
558 |
|
|
6 |
|
|
- |
|
|
564 |
|
|
571 |
|
|
1 |
|
|
- |
|
|
572 |
|
Stock-based compensation expense |
|
60 |
|
|
- |
|
|
- |
|
|
60 |
|
|
62 |
|
|
- |
|
|
- |
|
|
62 |
|
Loss (gain) on asset disposal and operating lease terminations, net |
|
(2 |
) |
|
- |
|
|
- |
|
|
(2 |
) |
|
4 |
|
|
- |
|
|
- |
|
|
4 |
|
Transaction and other one-time expenses |
|
2 |
|
|
13 |
|
|
- |
|
|
15 |
|
|
7 |
|
|
30 |
|
|
- |
|
|
37 |
|
|
|
35 |
|
|
- |
|
|
- |
|
|
35 |
|
|
133 |
|
|
- |
|
|
- |
|
|
133 |
|
Income from equity method investments, net |
|
(104 |
) |
|
- |
|
|
- |
|
|
(104 |
) |
|
(153 |
) |
|
- |
|
|
- |
|
|
(153 |
) |
Distributions from equity method investments(2) |
|
201 |
|
|
- |
|
|
- |
|
|
201 |
|
|
250 |
|
|
- |
|
|
- |
|
|
250 |
|
Pension and other postretirement plans credit, net |
|
(36 |
) |
|
- |
|
|
- |
|
|
(36 |
) |
|
(43 |
) |
|
- |
|
|
- |
|
|
(43 |
) |
Other non-operating expenses, net |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
11 |
|
|
- |
|
|
- |
|
|
11 |
|
Gain on bargain purchase |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(56 |
) |
|
- |
|
|
- |
|
|
(56 |
) |
Reimbursement from the |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(3 |
) |
|
- |
|
|
- |
|
|
(3 |
) |
Payments for broadcast rights(1) |
|
(88 |
) |
|
- |
|
|
- |
|
|
(88 |
) |
|
(126 |
) |
|
- |
|
|
- |
|
|
(126 |
) |
Adjusted EBITDA before transaction, one-time and other non-cash items |
|
1,750 |
|
|
(257 |
) |
|
- |
|
|
1,493 |
|
|
2,306 |
|
|
(64 |
) |
|
- |
|
|
2,242 |
|
Margin % |
|
37.2 |
% |
|
(102.8 |
%) |
|
- |
|
|
30.3 |
% |
|
44.8 |
% |
|
(97.0 |
%) |
|
- |
|
|
43.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Less: Transaction and other one-time expenses |
|
(2 |
) |
|
(13 |
) |
|
- |
|
|
(15 |
) |
|
(7 |
) |
|
(30 |
) |
|
- |
|
|
(37 |
) |
Adjusted EBITDA before non-cash and other items |
|
1,748 |
|
|
(270 |
) |
|
- |
|
|
1,478 |
|
|
2,299 |
|
|
(94 |
) |
|
- |
|
|
2,205 |
|
Margin % |
|
37.1 |
% |
|
(108.0 |
%) |
|
- |
|
|
30.0 |
% |
|
44.6 |
% |
|
(142.4 |
%) |
|
- |
|
|
42.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Add (Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
(60 |
) |
|
- |
|
|
- |
|
|
(60 |
) |
|
(62 |
) |
|
- |
|
|
- |
|
|
(62 |
) |
Pension and other postretirement plans credit, net |
|
36 |
|
|
- |
|
|
- |
|
|
36 |
|
|
43 |
|
|
- |
|
|
- |
|
|
43 |
|
Transaction and other one-time expenses |
|
2 |
|
|
13 |
|
|
- |
|
|
15 |
|
|
7 |
|
|
30 |
|
|
- |
|
|
37 |
|
Adjusted EBITDA |
$ |
1,726 |
|
$ |
(257 |
) |
$ |
- |
|
$ |
1,469 |
|
$ |
2,287 |
|
$ |
(64 |
) |
$ |
- |
|
$ |
2,223 |
|
Margin % |
|
36.6 |
% |
|
(102.8 |
%) |
|
- |
|
|
29.8 |
% |
|
44.4 |
% |
|
(97.0 |
%) |
|
- |
|
|
42.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue |
$ |
4,710 |
|
$ |
250 |
|
$ |
(27 |
) |
$ |
4,933 |
|
$ |
5,149 |
|
$ |
66 |
|
$ |
(4 |
) |
$ |
5,211 |
|
_____________________
- Only the columns including The CW do not adjust for amortization of broadcast rights (already deducted from Net Income) and payments for broadcast rights (i.e. programming payments). Amortization of broadcast rights for The CW licenses original programming, the programming payments precede the airing of the content as the content is being produced. Because these licenses are typically only on a season-by-season basis, The CW does not adjust for these timing differences.
-
Excludes Q1 2023 distribution received from our investment in
TV Food Network LLC of$69 million related to its accounts receivable securitization program.
Reconciliation of Free Cash Flow (Non-GAAP Measure) ($ in millions, unaudited) |
||||||||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|
||||||||||||||||||||
Free Cash Flow: |
|
|
The CW |
|
Eliminations
|
Consolidated |
|
|
|
The CW |
|
Eliminations
|
Consolidated |
|
||||||||||
Net income (loss) |
$ |
152 |
|
$ |
(52 |
) |
$ |
- |
$ |
100 |
|
$ |
272 |
|
$ |
(94 |
) |
$ |
- |
$ |
178 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Add (Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income), net |
|
116 |
|
|
(1 |
) |
|
- |
|
115 |
|
|
104 |
|
|
(1 |
) |
|
- |
|
103 |
|
||
Income tax expense |
|
47 |
|
|
- |
|
|
- |
|
47 |
|
|
68 |
|
|
- |
|
|
- |
|
68 |
|
||
Depreciation and amortization expense(1) |
|
138 |
|
|
2 |
|
|
- |
|
140 |
|
|
140 |
|
|
1 |
|
|
- |
|
141 |
|
||
Stock-based compensation expense |
|
16 |
|
|
- |
|
|
- |
|
16 |
|
|
18 |
|
|
- |
|
|
- |
|
18 |
|
||
Loss on asset disposal and operating lease terminations, net |
|
1 |
|
|
- |
|
|
- |
|
1 |
|
|
3 |
|
|
- |
|
|
- |
|
3 |
|
||
Transaction and other one-time expenses |
|
1 |
|
|
1 |
|
|
- |
|
2 |
|
|
- |
|
|
30 |
|
|
- |
|
30 |
|
||
|
|
35 |
|
|
- |
|
|
- |
|
35 |
|
|
133 |
|
|
- |
|
|
- |
|
133 |
|
||
Income from equity method investments, net |
|
(23 |
) |
|
- |
|
|
- |
|
(23 |
) |
|
(43 |
) |
|
- |
|
|
- |
|
(43 |
) |
||
Distributions from equity method investments |
|
12 |
|
|
- |
|
|
- |
|
12 |
|
|
15 |
|
|
- |
|
|
- |
|
15 |
|
||
Pension and other postretirement plans credit, net |
|
(9 |
) |
|
- |
|
|
- |
|
(9 |
) |
|
(10 |
) |
|
- |
|
|
- |
|
(10 |
) |
||
Gain on bargain purchase |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
(2 |
) |
|
- |
|
|
- |
|
(2 |
) |
||
Payments for broadcast rights(1) |
|
(18 |
) |
|
- |
|
|
- |
|
(18 |
) |
|
(28 |
) |
|
- |
|
|
- |
|
(28 |
) |
||
Cash interest expense |
|
(113 |
) |
|
- |
|
|
- |
|
(113 |
) |
|
(101 |
) |
|
1 |
|
|
- |
|
(100 |
) |
||
Capital expenditures, excluding station repack and CVR spectrum |
|
(33 |
) |
|
(3 |
) |
|
- |
|
(36 |
) |
|
(56 |
) |
|
(1 |
) |
|
- |
|
(57 |
) |
||
Operating cash income tax (payments) benefit, net(2) |
|
(36 |
) |
|
- |
|
|
10 |
|
(26 |
) |
|
(65 |
) |
|
- |
|
|
12 |
|
(53 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free cash flow before transaction, one-time and other non-cash items |
|
286 |
|
|
(53 |
) |
|
10 |
|
243 |
|
|
448 |
|
|
(64 |
) |
|
12 |
|
396 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Less: Transaction and other one-time expenses |
|
(1 |
) |
|
(1 |
) |
|
- |
|
(2 |
) |
|
- |
|
|
(30 |
) |
|
- |
|
(30 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free cash flow before non-cash and other items |
|
285 |
|
|
(54 |
) |
|
10 |
|
241 |
|
|
448 |
|
|
(94 |
) |
|
12 |
|
366 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Add: Pension and other postretirement plans credit, net |
|
9 |
|
|
- |
|
|
- |
|
9 |
|
|
10 |
|
|
- |
|
|
- |
|
10 |
|
||
Transaction and other one-time expenses |
|
1 |
|
|
1 |
|
|
- |
|
2 |
|
|
- |
|
|
30 |
|
|
- |
|
30 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free cash flow |
$ |
295 |
|
$ |
(53 |
) |
$ |
10 |
$ |
252 |
|
$ |
458 |
|
$ |
(64 |
) |
$ |
12 |
$ |
406 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Less: Free cash flow attributable to noncontrolling interests |
|
- |
|
|
(13 |
) |
|
- |
|
(13 |
) |
|
- |
|
|
(16 |
) |
|
- |
|
(16 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable free cash flow(3) |
$ |
295 |
|
$ |
(40 |
) |
$ |
10 |
$ |
265 |
|
$ |
458 |
|
$ |
(48 |
) |
$ |
12 |
$ |
422 |
|
_____________________
- Only the columns including The CW do not adjust for amortization of broadcast rights (already deducted from Net Income) and payments for broadcast rights (i.e. programming payments). Amortization of broadcast rights for The CW includes licenses for original entertainment and sports programming which match timing of revenues.
-
The estimated cash income tax benefit from The CW’s operating results was included in the elimination and other and consolidated columns, but were excluded from the
Nexstar , Ex-The CW columns. -
The CW columns reflect the Company’s 75% ownership interest in The CW multiplied by The CW’s pre-tax free cash flow; The
Nexstar , Ex-The CW columns reflect 100% of the Company’s free cash flow, as defined.
Reconciliation of Free Cash Flow (Non-GAAP Measure) ($ in millions, unaudited) |
||||||||||||||||||||||||
Year Ended |
|
Year Ended |
|
|||||||||||||||||||||
Free Cash Flow: |
|
|
The CW |
|
Eliminations
|
Consolidated |
|
|
|
The CW |
|
Eliminations
|
Consolidated |
|
||||||||||
Net income (loss) |
$ |
543 |
|
$ |
(273 |
) |
$ |
- |
$ |
270 |
|
$ |
1,037 |
|
$ |
(94 |
) |
$ |
- |
$ |
943 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Add (Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income), net |
|
450 |
|
|
(3 |
) |
|
- |
|
447 |
|
|
338 |
|
|
(1 |
) |
|
- |
|
337 |
|
||
Income tax expense |
|
131 |
|
|
- |
|
|
- |
|
131 |
|
|
274 |
|
|
- |
|
|
- |
|
274 |
|
||
Depreciation and amortization expense(1) |
|
558 |
|
|
6 |
|
|
- |
|
564 |
|
|
571 |
|
|
1 |
|
|
- |
|
572 |
|
||
Stock-based compensation expense |
|
60 |
|
|
- |
|
|
- |
|
60 |
|
|
62 |
|
|
- |
|
|
- |
|
62 |
|
||
Gain (loss) on asset disposal and operating lease terminations, net |
|
(2 |
) |
|
- |
|
|
- |
|
(2 |
) |
|
4 |
|
|
- |
|
|
- |
|
4 |
|
||
Transaction and other one-time expenses |
|
2 |
|
|
13 |
|
|
- |
|
15 |
|
|
7 |
|
|
30 |
|
|
- |
|
37 |
|
||
|
|
35 |
|
|
- |
|
|
- |
|
35 |
|
|
133 |
|
|
- |
|
|
- |
|
133 |
|
||
Income from equity method investments, net |
|
(104 |
) |
|
- |
|
|
- |
|
(104 |
) |
|
(153 |
) |
|
- |
|
|
- |
|
(153 |
) |
||
Distributions from equity method investments(2) |
|
201 |
|
|
- |
|
|
- |
|
201 |
|
|
250 |
|
|
- |
|
|
- |
|
250 |
|
||
Pension and other postretirement plans credit, net |
|
(36 |
) |
|
- |
|
|
- |
|
(36 |
) |
|
(43 |
) |
|
- |
|
|
- |
|
(43 |
) |
||
Other non-operating expenses, net |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
11 |
|
|
- |
|
|
- |
|
11 |
|
||
Gain on bargain purchase |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
(56 |
) |
|
- |
|
|
- |
|
(56 |
) |
||
Payments for broadcast rights(1) |
|
(88 |
) |
|
- |
|
|
- |
|
(88 |
) |
|
(126 |
) |
|
- |
|
|
- |
|
(126 |
) |
||
Cash interest expense |
|
(439 |
) |
|
- |
|
|
- |
|
(439 |
) |
|
(325 |
) |
|
1 |
|
|
- |
|
(324 |
) |
||
Capital expenditures, excluding station repack and CVR spectrum |
|
(141 |
) |
|
(8 |
) |
|
- |
|
(149 |
) |
|
(155 |
) |
|
(1 |
) |
|
- |
|
(156 |
) |
||
Capital expenditures related to station repack |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
(1 |
) |
|
- |
|
|
- |
|
(1 |
) |
||
Proceeds from disposal of assets and insurance recoveries(3) |
|
8 |
|
|
- |
|
|
- |
|
8 |
|
|
1 |
|
|
- |
|
|
- |
|
1 |
|
||
Operating cash income tax (payments) benefit, net(4)(5) |
|
(214 |
) |
|
- |
|
|
46 |
|
(168 |
) |
|
(334 |
) |
|
- |
|
|
12 |
|
(322 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free cash flow before transaction, one-time and other non-cash items |
|
964 |
|
|
(265 |
) |
|
46 |
|
745 |
|
|
1,495 |
|
|
(64 |
) |
|
12 |
|
1,443 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Less: Transaction and other one-time expenses |
|
(2 |
) |
|
(13 |
) |
|
- |
|
(15 |
) |
|
(7 |
) |
|
(30 |
) |
|
- |
|
(37 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free cash flow before non-cash and other items |
|
962 |
|
|
(278 |
) |
|
46 |
|
730 |
|
|
1,488 |
|
|
(94 |
) |
|
12 |
|
1,406 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Add: Pension and other postretirement plans credit, net |
|
36 |
|
|
- |
|
|
- |
|
36 |
|
|
43 |
|
|
- |
|
|
- |
|
43 |
|
||
Transaction and other one-time expenses |
|
2 |
|
|
13 |
|
|
- |
|
15 |
|
|
7 |
|
|
30 |
|
|
- |
|
37 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free cash flow |
$ |
1,000 |
|
$ |
(265 |
) |
$ |
46 |
$ |
781 |
|
$ |
1,538 |
|
$ |
(64 |
) |
$ |
12 |
$ |
1,486 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Less: Free cash flow attributable to noncontrolling interests |
|
- |
|
|
(66 |
) |
|
- |
|
(66 |
) |
|
- |
|
|
(16 |
) |
|
- |
|
(16 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Attributable free cash flow(6) |
$ |
1,000 |
|
$ |
(199 |
) |
$ |
46 |
$ |
847 |
|
$ |
1,538 |
|
$ |
(48 |
) |
$ |
12 |
$ |
1,502 |
|
_____________________
- Only the columns including The CW do not adjust for amortization of broadcast rights (already deducted from Net Income) and payments for broadcast rights (i.e. programming payments). Amortization of broadcast rights for The CW includes licenses for original entertainment and sports programming which match timing of revenues.
-
Excludes Q1 2023 distribution received from our investment in
TV Food Network LLC of$69 million related to its accounts receivable securitization program. -
Excludes (i) proceeds from the sale of certain real estate property of
$193 million during Q4 2022 ($199 million in total including$3 million deposits received each in 2022 and 2021) and (ii) proceeds from the sale of certain real estate property of$40 million during Q2 2022 ($45 million in total including deposits received in 2022 of$4 million ). -
Nexstar , Ex-The CW excludes tax payments related to the sale of certain real estate properties of$5 million in Q3 2022 and$43 million in Q4 2022. -
The estimated cash income tax benefit from The CW’s operating results was included in the elimination and other and consolidated columns, but were excluded from the
Nexstar , Ex-The CW columns. -
The CW columns reflect the Company’s 75% ownership interest in The CW multiplied by The CW’s pre-tax free cash flow; The
Nexstar , Ex-The CW columns reflect 100% of the Company’s free cash flow, as defined.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228637326/en/
Investor Contacts:
Executive Vice President and Chief Financial Officer
972/373-8800
JCIR
212/835-8500 or nxst@jcir.com
Media Contact:
Gary Weitman
EVP and Chief Communications Officer
972/373-8800 or gweitman@nexstar.tv
Source: