Nexstar’s 1Q Net Revenue Climbs 34.2%

Nexstar Broadcasting Group today reported financial results for the first quarter ended March 31 that included a 34.2% increase in net revenue to $112.2 million compared to the year-earlier quarter’s $83.6 million.

Local revenue climbed 31.9% to $59.9 million from $45.4 million a year ago, while national revenue grew 34.3% to $23.3 million, up from $17.4 million last year. Local and national core revenue was up 32.6% to $83.3 million.

Retransmission consent revenue jumped 64.2%, from $14.4 million in 2012 to $23.7 million in this year’s 1Q.

E-media revenue increased 57.3% to $6.5 million from $4.1 million.

Political revenue fell 72.7%, from $2.7 million in 1Q 2012 to $762,000 this year.

Perry A. Sook, Nexstar chairman, president and CEO, commented: “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. 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.

“During the first quarter, the benefit of recently completed accretive acquisitions and the successful execution of our strategies to leverage the content chain and diversify our revenue sources more than offset the $2 million year-over-year decline in political advertising and the final payment from a prior management agreement. Station revenue, excluding political advertising and management fee revenue, grew 40% reflecting significant double digit growth in core television ad revenue, retransmission consent revenues, and our 25th consecutive quarter of e-Media revenue increases. Total first quarter retransmission fee and e-Media revenue rose 62.7% to $30.3 million, and these higher margin revenue streams accounted for 27% of 2013 first quarter net revenue, their highest contribution to our quarterly revenue mix since these revenue streams were established.

“With a focus on generating free cash flow, we remain disciplined in managing costs and in addressing our capital structure, leverage and cost of capital. However, recent capital market and station group acquisition activity drove one-time increases in legal, accounting, professional and other expenses which totaled approximately $1.3 million in the quarter with approximately 75% of this amount in corporate expense and the remainder in station operating expense thus impacting BCF, adjusted EBITDA and free cash flow.

“Nevertheless, first quarter 2013 BCF and adjusted EBITDA grew 16.9% and 15.5%, respectively. In addition, first quarter 2013 free cash flow grew 180% over the first quarter of 2011, the previous non-political period, clearly highlighting the value being derived from our platform building and revenue diversification strategies, while combined free cash flow for the 2012/2013 first quarters rose 83.2% to $22.9 million from the $12.5 million generated for the first quarters of 2010/2011.”

Read the company’s report here.