Nexstar Broadcasting reports record quarter

Things continue to be on the upswing at Nexstar Broadcasting, according to a news release filed by the company with the Securities and Exchange Commission:

Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) today reported record financial results for the quarter and year ended December 31, 2006.

Summary 2006 Fourth Quarter Highlights:

Net revenue for the quarter ended December 31, 2006, grew 23.9% to $77.2 million from $62.3 million in the fourth quarter of 2005. Income from operations for the three months ended December 31, 2006 grew 173.3% and totaled $18.9 million compared with $6.9 million in the quarter ended December 31, 2005. The Company reported a basic and diluted net income per share of $0.16 for the three months ended December 31, 2006 compared with a basic and diluted net loss per share of $0.22 in the fourth quarter of 2005. During the fourth quarter of 2006, the Company incurred $0.3 million of non-cash employee stock option expense pursuant to its adoption of SFAS No. 123(R) on January 1, 2006. The Company did not incur any employee stock option expense in the fourth quarter of 2005.

Broadcast cash flow rose 59.7% to $33.8 million in the fourth quarter of 2006 compared with $21.1 million in the fourth quarter of 2005. EBITDA totaled $29.3 million for the fourth quarter of 2006, a 67.9% increase over the fourth quarter of 2005, while free cash flow rose to $12.4 million in the fourth quarter of 2006, a $7.1 million increase compared with the fourth quarter of 2005.
Fourth quarter 2006 gross political advertising revenue was $16.7 million, compared to approximately $0.9 million in the fourth quarter of 2005. While political spending displaced traditional advertising in the first part of the 2006 fourth quarter, gross local and national advertising revenues increased by 4.1% in December 2006 compared with December 2005.

Summary 2006 Year-End Highlights:

For the full year, net revenue for 2006 was $265.2 million, a 15.8% increase over $228.9 million for 2005. Gross local and national advertising revenues increased by 6.4% in 2006 compared with 2005. Gross political advertising was $27.0 million in 2006 compared with $2.2 million in 2005. The Company reported a basic and diluted net loss per share of $0.32 for 2006, compared with a basic and diluted net loss per share of $1.72 for 2005.

Broadcast cash flow in 2006 was $103.1 million, a 37.6% rise from 2005. EBITDA totaled $88.5 million for 2006, a 40.0% increase over 2005, while free cash flow rose to $27.5 million in 2006, a $13.3 million increase over 2005.

Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, "Concluding what was already an impressive year, Nexstar generated a 24% increase in fourth quarter revenue, which again significantly exceeded growth in the industry and consensus expectations. Strong political spending in our markets, the ongoing benefits of retransmission consent revenues and gains in local ad sales were all drivers of our top line performance during the period.

"Fourth quarter BCF, EBITDA and free cash flow increases of 60%, 68% and 133%, respectively, underscore the significant leverage in our operating model and the value of our focus on developing new revenue sources, managing costs and diversifying our portfolio and operations.

"Nexstar has led industry innovation with our shared services agreements, local sales and news leadership and negotiation of retransmission consent agreements. We continue to position the Company for ongoing growth in 2007 and beyond as we further diversify our core revenue base with new media initiatives featuring a 'community portal' approach to offering additional content and interactive options for consumers and advertisers. Nexstar’s emphasis on serving communities in its medium-sized markets has resulted in the development of strong local franchises well positioned to profitably compete for viewers and advertisers in both our core television business and our digital media platforms."

Nexstar Broadcasting owns KSNF in Joplin and KSFX in Springfield and operates KODE in Joplin and KOLR in Springfield.