Nexstar OKs $300M Share Repurchase Expansion
Nexstar Media Group announced today that its board of directors approved an expansion of the company’s share repurchase authorization for up to an additional $300 million of repurchases of its Class A common stock. The expansion brings the total capacity under Nexstar’s share repurchase program to approximately $384.2 million when combined with the approximate $84.2 million remaining under its prior authorization as of June 30, 2020.
Perry A. Sook, Nexstar chairman, president and CEO, said: “The expanded repurchase authorization reflects our confidence in the company’s growing free cash flow from operations and our long-term commitment to deploying capital in a manner that can enhance shareholder value.
“Nexstar generated record financial results in the first half of 2020 including approximately $618 million of free cash flow. With our growing distribution and political revenue and monthly sequential increases in core advertising revenue since April combined with the cash distributions from our 31.3% ownership stake in TV Food Network, we remain confident that our operating momentum will continue despite the challenging operating environment presented by the pandemic.
“Accordingly, we believe that our free cash flow combined with the active management of our balance sheet provides us with the financial flexibility to further support our shareholder value creation initiatives, including our return of capital programs such as share repurchases and our quarterly cash dividend, as well as for leverage reduction and select opportunistic accretive transactions.”
As of June 30, Nexstar had approximately 45.3 million shares of Class A common stock outstanding (the only class of shares outstanding).
Comments (1)
2018bstyrevr says:
September 3, 2020 at 7:35 am
If they think this buyback is going to help grow their stock price..good luck with that..Linear TV advertising is down 25% this year and the business is in big trouble!!