Nexstar: FCF, Adjusted EBITDA The Real Story

By on Nov, 10 2016 with Comments 0

Now that the parade of media industry third-quarter conference calls have come to pass, one company stands out from the pack as a success story in Q3: Nexstar Broadcasting.

Yes, the company’s net income fell short of the average estimate of five analysts surveyed by Zacks Investment Research by some 8 cents per diluted share.

But, as a company spokesperson tells RBR + TVBR, the real story behind what is a solid quarter for Nexstar lies in its Free Cash Flow, Broadcast Cash Flow and adjusted EBITDA results.

“Net income is not a barometer on stock performance,” the Nexstar representative said, taking issue with the analysts’ overall method of how they look at the company.

Furthermore, one should not take focus on a 3.6% dip in National dollars, to $36.5 million, the company representative adds.

And, with the pricing during Q3 of its $2.75 billion term loan B facility, the new round of financing overshadows a “solid quarter” for the company set to merger with Media General.

As Nexstar President/CEO Perry Sook noted on a conference call with analysts Tuesday, “Since 2011, Nexstar has completed 17 accretive strategic transactions, including 60 full-power TV stations as well as four digital businesses, all of which have increased our scale and diversified our portfolio. Our proven ability to significantly expand our free cash flow through acquisition, integration, and disciplined operating practices is reflected by Nexstar’s financial growth over this period as net revenue grew from $306.5 million in 2011 to $896.4 million in 2015, while free cash flow rose from $34.2 million to $208.2 million in that same time frame.”

It should also be noted that, unlike other big media companies, Nexstar exceeded its political guidance target of $100 million for 2016.


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About The Author: Adam R Jacobson is a veteran radio industry journalist and advertising industry analyst with general, multicultural and Hispanic market expertise. From 1996 to 2006 he served as an editor at Radio & Records.

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