The move follows one in December to buy back $52.4 million of its Class A common stock. CEO Perry Sook: “The expanded repurchase authorization reflects our confidence in the company’s growing free cash flow from operations.”
Nexstar Media Group today approved an expansion of the company’s share repurchase authorization for up to an additional $200 million of repurchases of its Class A common stock.
The expansion brings the total capacity under Nexstar’s share repurchase program to approximately $252.4 million when combined with the approximate $52.4 million remaining under its prior authorization as of Dec. 31, 2017.
Perry A. Sook, Nexstar chairman, president and chief executive officer, said in a statement: “The expanded repurchase authorization reflects our confidence in the company’s growing free cash flow from operations and our commitment to allocating capital to repurchases, dividends, leverage reduction, select opportunistic accretive transactions and other purposes that can enhance shareholder value.
“With the conclusion of the 2018 first quarter, Nexstar remains confident in meeting our target for average annual free cash flow of slightly in excess of $600 million for the 2018-2019 cycle, inclusive of our assumptions for a changing interest rate environment and our expectation that the company will become nearly a full tax payer in 2018. We look forward to reporting our first quarter results on May 9 at which time we will provide an update on our recent deployment of our growing free cash flow.”
As of Dec. 31, 2017, Nexstar had approximately 46 million shares of Class A common stock outstanding (the only class of shares outstanding).