Nexstar Broadcasting reported gross revenues of $122.9
million in the first quarter, a 33.6% increase over the same quarter a year
ago. Local revenue was up 31.9% while national revenue elevated 34.3%, for a
32.6% core revenue increase.
Nexstar's retransmission revenue was up 64.2% while online
business grew 57.3%, offsetting a 72.7% decrease in political revenue in the
quarter.
"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," said Perry Sook, Nexstar
chairman, president and CEO. "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."
In April, Nexstar and Mission Broadcasting agreed to acquire
the Communications Corp. of America stations for $270 million.
"When completed later this year, these stations will add
seven more duopolies to our operating base and overall, the transaction will
expand our geographic diversity and scale to 91 stations in 48 markets of which
33 are duopoly markets," said Sook. "Financially, the acquired
stations will also leverage our overhead and infrastructure and are highly
attractive on an economic basis as we have identified $12.5 million in
projected synergies."
The transaction is expected to generate over $50
million in annual incremental broadcast cash flow and to provide free cash flow
accretion in the first year approximately 20% higher than the run rate of
Nexstar's portfolio prior to the announcement of the transaction, said Sook.
