Nexstar reports record 1Q net revenue
Up 34% from same period in 2012
Nexstar Broadcasting, which owns and/or operates WEHT and WTVW in Evansville and WTWO and WAWV in Terre Haute, reported its first quarter results this morning, and the company's net revenue of $112.2 million for the quarter is another new record, up 34% from the first quarter of 2012.
“Nexstar’s strong operating and financial momentum continues in 2013 as reflected by our record first quarter net revenue, BCF and EBITDA and record ‘odd year’ free cash flow," said company chairman, president and CEO Perry Sook. "Industry revenue improved each month during the first quarter and this trend continues for Nexstar in the second quarter to date. As such, we are well positioned to grow all of our non-political revenue sources throughout 2013."
For the quarter, Nexstar saw large increases in both local and national revenues (up 31.9 and 34.3 percent, respectively), e-Media, retransmission, network comp and trade and barter revenue. The company's only declines for the quarter came in political revenue (down 72.7%) and management fees (down 100%, reflecting the end of the company's management of the former Four Points stations).
The recently-announced purchase of the Communications Corp. of America stations (including CBS44/FOX44 WEVV, which will be purchased by Rocky Creek Communications and operated by Nexstar in Evansville) is expected to have a positive impact on the company's financial picture going forward.
"When completed later this year, these stations will add seven more duopolies to our operating base and overall, the transaction will expand our geographic diversity and scale to 91 stations in 48 markets of which 33 are duopoly markets," Sook explained. "Financially, the acquired stations will also leverage our overhead and infrastructure and are highly attractive on an economic basis as we have identified $12.5 million in projected synergies. This transaction is expected to generate over $50 million in annual incremental broadcast cash flow and is expected to provide free cash flow accretion in the first year approximately 20% higher than the run rate of the company’s station portfolio prior to the announcement of the transaction."