Nexstar To Buy Back $100 Million In Stock

Nexstar Broadcasting Group said today that it intends to act on the board of directors’ authorization to repurchase up to $100 million of its Class A common stock.

Perry A. Sook, Nexstar chairman, president and CEO, said: “The repurchase authorization reflects our confidence in the company’s growing free cash flow from operations based on visible organic growth opportunities and provides a flexible complement to our existing return of capital initiatives through our quarterly cash dividend.

“We believe the $100 million share repurchase authorization, which at Friday’s closing price represents approximately 2 million shares, is a prudent use of capital as Nexstar is on pace to achieve its projected pro-forma free cash flow of approximately $456 million during the 2015-16 cycle, or average pro-forma free cash flow of approximately $7.30 per share per year.

“Importantly, as a result of our strong free cash flow growth profile, we have the financial flexibility to continue executing our long-term growth strategy focused on accretive broadcast and digital media transactions — and their successful integration and synergy realization — while simultaneously reducing leverage, paying a quarterly cash dividend and pursuing opportunistic share repurchases which we believe supports our priority to enhance shareholder value.”

Repurchases by Nexstar will be subject to available liquidity, general market and economic conditions, alternate uses for the capital and other factors. The company said share repurchases may be made from time to time in open market transactions, block trades or in private transactions.

There is no minimum number of shares that Nexstar is required to repurchase and the repurchase program may be suspended or discontinued at any time without prior notice. All shares purchased will be held in the company’s treasury for possible future use.

Nexstar said it anticipates funding any share repurchases from its cash flow from operations and its existing credit facility.

Nexstar has approximately 32.4 million shares of Class A common stock outstanding (the only class of shares outstanding).