Nexstar Media Group, Inc. - 8-K Summary
Business Context and Reporting Period
This Form 8-K, dated May 1, 2013, reports preliminary financial estimates for Nexstar Broadcasting Group, Inc. for the fiscal quarter ended March 31, 2013. The data is unaudited and subject to final adjustments upon completion of the quarterly close.
Key Financial Metrics
| Metric (in thousands) | Low Estimate | High Estimate |
|---|---|---|
| Net Revenues | $111,000 | $113,400 |
| Total Local and National TV Revenue | $82,800 | $83,800 |
| Retransmission Fee Revenue | $23,600 | $24,000 |
| Total Station Operating Expenses | $71,500 | $73,000 |
| Corporate Expenses | $6,500 | $7,000 |
Liquidity and Debt: As of March 31, 2013, total indebtedness was approximately $928 million (net of discount), with $678 million classified as secured debt. Cash and cash equivalents totaled approximately $22.5 million.
Material Changes
Corporate expenses and certain station operating expenses increased compared to the prior year's same period. This increase is primarily attributed to higher legal, accounting, personnel, and other expenses resulting from recent securities and debt offerings and strategic acquisitions completed during the quarter.
Outlook, Risks, and Unusual Items
Management has not identified any unusual or unique events or trends other than those discussed. The filing notes that actual results may differ materially from these preliminary estimates. Additionally, the company announced a secondary offering of common stock by selling stockholders on May 1, 2013.
Investor Verification Checklist
- Verify final audited financial results for the quarter ended March 31, 2013, once released.
- Confirm the final terms and proceeds of the secondary stock offering by selling stockholders.
- Monitor the impact of recent strategic acquisitions on future operating expenses and revenue growth.
- Review the company's debt covenants given the $928 million total indebtedness level.