We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Nexstar Media Group Inc | NASDAQ:NXST | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-2.06 | -1.28% | 158.92 | 153.62 | 161.50 | 162.00 | 158.42 | 160.80 | 250,869 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended March 31, 2014
|
|
OR | |
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to .
|
Delaware
|
23-3083125
|
(State of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
545 E. John Carpenter Freeway, Suite 700, Irving, Texas
|
75062
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
(972) 373-8800
|
|
(Registrant’s Telephone Number, Including Area Code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
(Do not check if a smaller reporting company)
|
Page
|
||
PART I
|
FINANCIAL INFORMATION
|
|
ITEM 1.
|
Financial Statements (Unaudited)
|
|
Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013
|
1
|
|
Condensed Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013
|
2
|
|
Condensed Consolidated Statement of Changes in Stockholders’ Deficit for the three months ended March 31, 2014
|
3
|
|
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013
|
4
|
|
Notes to Condensed Consolidated Financial Statements
|
5
|
|
ITEM 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
24
|
ITEM 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
33
|
ITEM 4.
|
Controls and Procedures
|
33
|
PART II
|
OTHER INFORMATION
|
|
ITEM 1.
|
Legal Proceedings
|
34
|
ITEM 1A.
|
Risk Factors
|
34
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
36
|
ITEM 3.
|
Defaults Upon Senior Securities
|
36
|
ITEM 4.
|
Mine Safety Disclosures
|
36
|
ITEM 5.
|
Other Information
|
36
|
ITEM 6.
|
Exhibits
|
37
|
NEXSTAR BROADCASTING GROUP, INC.
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(in thousands, except share information, unaudited)
|
||||||||
|
March 31,
2014
|
December 31,
2013
|
||||||
ASSETS
|
|
|||||||
Current assets:
|
|
|||||||
Cash and cash equivalents
|
$ | 50,580 | $ | 40,028 | ||||
Accounts receivable, net of allowance for doubtful accounts of $3,506 and $3,035, respectively
|
104,457 | 109,430 | ||||||
Deferred tax assets, net
|
38,585 | 38,585 | ||||||
Prepaid expenses and other current assets
|
10,907 | 13,123 | ||||||
Total current assets
|
204,529 | 201,166 | ||||||
Property and equipment, net
|
205,477 | 212,259 | ||||||
Goodwill
|
198,033 | 198,052 | ||||||
FCC licenses
|
247,457 | 222,757 | ||||||
FCC licenses of consolidated variable interest entities
|
41,563 | 66,263 | ||||||
Other intangible assets, net
|
156,342 | 162,535 | ||||||
Deferred tax assets, net
|
26,676 | 30,898 | ||||||
Other noncurrent assets, net
|
68,716 | 69,792 | ||||||
Total assets
|
$ | 1,148,793 | $ | 1,163,722 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
Current liabilities:
|
||||||||
Current portion of debt
|
$ | 6,174 | $ | 6,857 | ||||
Accounts payable
|
13,651 | 10,250 | ||||||
Accrued expenses
|
20,119 | 24,142 | ||||||
Interest payable
|
13,593 | 4,661 | ||||||
Amounts payable to sellers for acquisition of stations
|
- | 22,000 | ||||||
Other current liabilities of consolidated variable interest entities
|
5,437 | 4,923 | ||||||
Other current liabilities
|
10,880 | 11,089 | ||||||
Total current liabilities
|
69,854 | 83,922 | ||||||
Debt
|
1,061,378 | 1,064,262 | ||||||
Other noncurrent liabilities of consolidated variable interest entities
|
7,479 | 8,080 | ||||||
Other noncurrent liabilities
|
18,524 | 20,689 | ||||||
Total liabilities
|
1,157,235 | 1,176,953 | ||||||
Commitments and contingencies
|
||||||||
Stockholders' deficit:
|
||||||||
Preferred stock - $0.01 par value, 200,000 shares authorized; none issued and outstanding at each of March 31, 2014 and December 31, 2013
|
- | - | ||||||
Class A Common stock - $0.01 par value, 100,000,000 shares authorized; 30,622,035 and 30,598,535 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively
|
306 | 306 | ||||||
Class B Common stock - $0.01 par value, 20,000,000 shares authorized; none issued and outstanding at each of March 31, 2014 and December 31, 2013
|
- | - | ||||||
Class C Common stock - $0.01 par value, 5,000,000 shares authorized; none issued and outstanding at each of March 31, 2014 and December 31, 2013
|
- | - | ||||||
Additional paid-in capital
|
394,253 | 396,817 | ||||||
Accumulated deficit
|
(403,001 | ) | (410,354 | ) | ||||
Total stockholders' deficit
|
(8,442 | ) | (13,231 | ) | ||||
Total liabilities and stockholders' deficit
|
$ | 1,148,793 | $ | 1,163,722 |
NEXSTAR BROADCASTING GROUP, INC.
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(in thousands, except per share information, unaudited)
|
||||||||
Three Months Ended
March 31,
|
||||||||
2014
|
2013
|
|||||||
Net revenue
|
$ | 133,833 | $ | 112,205 | ||||
Operating expenses:
|
||||||||
Direct operating expenses, excluding depreciation and amortization
|
41,849 | 34,104 | ||||||
Selling, general, and administrative expenses, excluding depreciation and amortization
|
41,040 | 35,500 | ||||||
Amortization of broadcast rights
|
8,632 | 8,813 | ||||||
Amortization of intangible assets
|
6,193 | 7,990 | ||||||
Depreciation
|
8,419 | 7,980 | ||||||
Total operating expenses
|
106,133 | 94,387 | ||||||
Income from operations
|
27,700 | 17,818 | ||||||
Interest expense, net
|
(15,170 | ) | (16,549 | ) | ||||
Other expenses
|
(128 | ) | (84 | ) | ||||
Income before income taxes
|
12,402 | 1,185 | ||||||
Income tax expense
|
(5,049 | ) | (480 | ) | ||||
Net income
|
$ | 7,353 | $ | 705 | ||||
Net income per common share:
|
||||||||
Basic
|
$ | 0.24 | $ | 0.02 | ||||
Diluted
|
$ | 0.23 | $ | 0.02 | ||||
Weighted average number of common shares outstanding:
|
||||||||
Basic
|
30,603 | 29,461 | ||||||
Diluted
|
31,909 | 31,054 | ||||||
Dividends declared per common share
|
$ | 0.15 | $ | 0.12 |
NEXSTAR BROADCASTING GROUP, INC.
|
|||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
|
|||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014
|
|||||||||||||||||||||||||||||
(in thousands, except share information, unaudited)
|
|||||||||||||||||||||||||||||
Common Stock
|
Additional
|
Total
|
|||||||||||||||||||||||||||
Preferred Stock
|
Class A
|
Class B
|
Class C
|
Paid-In
|
Accumulated
|
Stockholders'
|
|||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Deficit
|
|||||||||||||||||||
Balances as of December 31, 2013
|
-
|
$
|
-
|
30,598,535
|
$
|
306
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
396,817
|
$
|
(410,354)
|
$
|
(13,231)
|
|||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,643
|
-
|
1,643
|
||||||||||||||||||
Exercise of stock options
|
-
|
-
|
23,500
|
-
|
-
|
-
|
-
|
-
|
107
|
-
|
107
|
||||||||||||||||||
Excess tax benefit from stock option exercises
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
274
|
-
|
274
|
||||||||||||||||||
Common stock dividends declared
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,588)
|
-
|
(4,588)
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
7,353
|
7,353
|
||||||||||||||||||
Balances as of March 31, 2014
|
-
|
$
|
-
|
30,622,035
|
$
|
306
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
394,253
|
$
|
(403,001)
|
$
|
(8,442)
|
Three Months Ended
March 31,
|
||||||||
2014
|
2013
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 7,353 | $ | 705 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for bad debts
|
1,015 | 397 | ||||||
Amortization of broadcast rights, excluding barter
|
2,960 | 2,969 | ||||||
Depreciation of property and equipment
|
8,419 | 7,980 | ||||||
Amortization of intangible assets
|
6,193 | 7,990 | ||||||
(Gain) loss on asset disposal, net
|
(15 | ) | 7 | |||||
Amortization of debt financing costs
|
647 | 506 | ||||||
Amortization of debt discount
|
43 | 325 | ||||||
Stock-based compensation expense
|
1,643 | 495 | ||||||
Deferred income taxes
|
4,496 | 295 | ||||||
Payments for broadcast rights
|
(3,149 | ) | (3,700 | ) | ||||
Deferred gain recognition
|
(109 | ) | (109 | ) | ||||
Amortization of deferred representation fee incentive
|
(205 | ) | (205 | ) | ||||
Excess tax benefit from stock option exercises
|
(274 | ) | (1,189 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions:
|
||||||||
Accounts receivable
|
3,958 | (18,214 | ) | |||||
Prepaid expenses and other current assets
|
1,184 | 670 | ||||||
Other noncurrent assets
|
92 | (5 | ) | |||||
Accounts payable and accrued expenses
|
343 | (224 | ) | |||||
Interest payable
|
8,932 | 12,256 | ||||||
Deferred revenue
|
492 | 92 | ||||||
Other liabilities of consolidated variable interest entities
|
735 | 595 | ||||||
Other noncurrent liabilities
|
(22 | ) | 1,469 | |||||
Net cash provided by operating activities
|
44,731 | 13,105 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(3,983 | ) | (6,786 | ) | ||||
Payments for acquisitions
|
(22,057 | ) | (121,114 | ) | ||||
Proceeds from disposals of property and equipment
|
14 | 6 | ||||||
Net cash used in investing activities
|
(26,026 | ) | (127,894 | ) | ||||
Cash flows from financing activities:
|
||||||||
Repayments of long-term debt
|
(3,610 | ) | - | |||||
Payments for debt financing costs
|
(77 | ) | (690 | ) | ||||
Proceeds from long-term debt
|
- | 70,000 | ||||||
Proceeds from exercise of stock options
|
107 | 1,455 | ||||||
Excess tax benefit from stock option exercises
|
274 | 1,189 | ||||||
Common stock dividends paid
|
(4,588 | ) | (3,529 | ) | ||||
Payments for capital lease obligations
|
(259 | ) | (10 | ) | ||||
Net cash (used in) provided by financing activities
|
(8,153 | ) | 68,415 | |||||
Net increase (decrease) in cash and cash equivalents
|
10,552 | (46,374 | ) | |||||
Cash and cash equivalents at beginning of period
|
40,028 | 68,999 | ||||||
Cash and cash equivalents at end of period
|
$ | 50,580 | $ | 22,625 | ||||
Supplemental information:
|
||||||||
Interest paid
|
$ | 5,547 | $ | 3,370 | ||||
Income taxes paid, net
|
$ | 47 | $ | 899 | ||||
Non-cash investing and financing activities:
|
||||||||
Accrued purchases of property and equipment
|
$ | 966 | $ | 1,659 | ||||
Noncash purchases of property and equipment
|
$ | 14 | $ | 2,555 | ||||
Accrued debt financing costs
|
$ | - | $ | 552 |
1
.
|
Organization and Business Operations
|
2.
|
Summary of Significant Accounting Policies
|
Service Agreements
|
Mission Stations
|
||
TBA Only
(1)
|
WFXP and KHMT
|
||
SSA & JSA
(2)
|
KJTL, KJBO-LP, KLRT, KASN, KOLR, KCIT, KCPN-LP, KAMC, KRBC, KSAN, WUTR, WAWV, WYOU, KODE, WTVO, KTVE, WTVW and WVNY
|
(1)
|
Nexstar has a time brokerage agreement (“TBA”) with each of these stations which allows Nexstar to program most of each station’s broadcast time, sell each station’s advertising time and retain the advertising revenue generated in exchange for monthly payments to Mission.
|
||
(2)
|
Nexstar has both a shared services agreement (“SSA”) and a joint sales agreement (“JSA”) with each of these stations. Each SSA allows the Nexstar station in the market to provide services including news production, technical maintenance and security, in exchange for Nexstar’s right to receive certain payments from Mission as described in the SSAs. Each JSA permits Nexstar to sell the station’s advertising time and retain a percentage of the net revenue from the station’s advertising time in return for monthly payments to Mission of the remaining percentage of net revenue as described in the JSAs.
|
Three Months Ended
March 31,
|
||||||||
2014
|
2013
|
|||||||
Weighted average shares outstanding - basic
|
30,603 | 29,461 | ||||||
Effect of dilutive stock options
|
1,306 | 1,593 | ||||||
Weighted average shares outstanding - diluted
|
31,909 | 31,054 |
3.
|
Acquisitions
|
Broadcast rights
|
$ | 269 | ||
Prepaid expenses and other current assets
|
305 | |||
Property and equipment
|
10,613 | |||
FCC licenses
|
24,700 | |||
Network affiliation agreements
|
26,129 | |||
Other intangible assets
|
3,398 | |||
Goodwill
|
30,195 | |||
Other assets
|
1,807 | |||
Total assets acquired
|
97,416 | |||
Less: Broadcast rights payable
|
(269 | ) | ||
Less: Accounts payable and accrued expenses
|
(397 | ) | ||
Less: Deferred tax liabilities
|
(8,801 | ) | ||
Net assets acquired
|
$ | 87,949 |
Market |
Market Rank
|
Station
|
Affiliation
|
|||
Nexstar: | ||||||
Harlingen-Weslaco-Brownsville-McAllen, TX
|
86 |
KVEO
|
NBC/Estrella
|
|||
Waco-Temple-Bryan, TX
|
88
|
KWKT
KYLE
|
FOX/MyNetworkTV/ Estrella
FOX/MyNetworkTV/ Estrella
|
|||
El Paso, TX
|
91 |
KTSM
|
NBC/Estrella
|
|||
Baton Rouge, LA
|
94
|
WGMB
WBRL-CD
|
FOX
The CW
|
|||
Tyler-Longview, TX
|
107 |
KETK
|
NBC/Estrella
|
|||
Lafayette, LA
|
124
|
KADN
KLAF-LD
|
FOX
MyNetworkTV
|
|||
Alexandria, LA
|
179 |
WNTZ
|
FOX/MyNetworkTV
|
|||
Shreveport, LA
|
83 |
KMSS
|
FOX
|
|||
Baton Rouge, LA
|
94
|
WVLA
KZUP-CD
|
NBC
RTV
|
|||
Tyler-Longview, TX
|
107
|
KFXK
KFXL-LD
KLPN-LD
|
FOX
FOX
MyNetworkTV
|
|||
Odessa-Midland, TX
|
152 |
KPEJ
|
FOX/Estrella
|
|||
Shreveport, LA
|
83 |
KSHV
|
MyNetworkTV
|
|||
Evansville, IN
|
104 |
WEVV
|
CBS/FOX/ MyNetworkTV
|
4.
|
Intangible Assets and Goodwill
|
Estimated
|
March 31, 2014
|
December 31, 2013
|
||||||||||||||||||||||||||
useful life,
|
Accumulated
|
Accumulated
|
||||||||||||||||||||||||||
in years
|
Gross
|
Amortization
|
Net
|
Gross
|
Amortization
|
Net
|
||||||||||||||||||||||
Network affiliation agreements
|
15 | $ | 441,811 | $ | (296,291 | ) | $ | 145,520 | $ | 441,811 | $ | (291,154 | ) | $ | 150,657 | |||||||||||||
Other definite-lived intangible assets
|
1-15 | 33,435 | (22,613 | ) | 10,822 | 33,435 | (21,557 | ) | 11,878 | |||||||||||||||||||
Other intangible assets
|
$ | 475,246 | $ | (318,904 | ) | $ | 156,342 | $ | 475,246 | $ | (312,711 | ) | $ | 162,535 |
Remainder of 2014
|
$
|
16,193
|
||
2015
|
20,053
|
|||
2016
|
15,261
|
|||
2017
|
14,557
|
|||
2018
|
12,231
|
|||
2019
|
10,760
|
|||
Thereafter
|
67,287
|
|||
$
|
156,342
|
Goodwill
|
FCC Licenses
|
|||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Gross
|
Impairment
|
Net
|
Gross
|
Impairment
|
Net
|
|||||||||||||||||||
Balance as of December 31, 2013
|
$ | 244,043 | $ | (45,991 | ) | $ | 198,052 | $ | 338,441 | $ | (49,421 | ) | $ | 289,020 | ||||||||||
Citadel acquisitions (See Note 3)
|
(19 | ) | - | (19 | ) | - | - | - | ||||||||||||||||
Balance as of March 31, 2014
|
$ | 244,024 | $ | (45,991 | ) | $ | 198,033 | $ | 338,441 | $ | (49,421 | ) | $ | 289,020 |
5.
|
Accrued Expenses
|
March 31,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Compensation and related taxes
|
$ | 5,053 | $ | 9,744 | ||||
Sales commissions
|
2,607 | 2,556 | ||||||
Employee benefits
|
1,680 | 1,354 | ||||||
Property taxes
|
895 | 649 | ||||||
Other
|
9,884 | 9,839 | ||||||
$ | 20,119 | $ | 24,142 |
6.
|
Debt
|
March 31,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Term loans, net of discount of $1,491 and $1,554, respectively
|
$ | 541,903 | $ | 545,450 | ||||
6.875% Senior unsecured notes due 2020, including premium of $649 and $669, respectively
|
525,649 | 525,669 | ||||||
1,067,552 | 1,071,119 | |||||||
Less: current portion
|
(6,174 | ) | (6,857 | ) | ||||
$ | 1,061,378 | $ | 1,064,262 |
March 31, 2014
|
December 31, 2013
|
|||||||||||||||
Carrying
Amount
|
Fair Value
|
Carrying Amount
|
Fair Value
|
|||||||||||||
Term loans
(1)
|
$ | 541,903 | $ | 544,170 | $ | 545,450 | $ | 546,818 | ||||||||
6.875% Senior unsecured notes
(2)
|
525,649 | 563,719 | 525,669 | 561,750 |
(1)
|
The fair value of senior secured credit facilities is computed based on borrowing rates currently available to Nexstar and Mission for bank loans with similar terms and average maturities. These fair value measurements are considered Level 3, as significant inputs to the fair value calculation are unobservable in the market.
|
|||||||||||||||
(2)
|
The fair value of Nexstar’s fixed rate debt is estimated based on bid prices obtained from an investment banking firm that regularly makes a market for these financial instruments. These fair value measurements are considered Level 2, as quoted market prices are available for low volume trading of these securities.
|
7.
|
FCC Regulatory Matters
|
8.
|
Commitments and Contingencies
|
9.
|
Condensed Consolidating Financial Information
|
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||||||
As of March 31, 2014
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Nexstar
|
Nexstar
|
Consolidated
|
||||||||||||||||||||||
Nexstar
|
Broadcasting
|
Mission
|
Holdings
|
Eliminations
|
Company
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 50,013 | $ | 567 | $ | - | $ | - | $ | 50,580 | ||||||||||||
Due from Nexstar Broadcasting
|
- | - | 4,356 | - | (4,356 | ) | - | |||||||||||||||||
Other current assets
|
- | 138,358 | 15,591 | - | - | 153,949 | ||||||||||||||||||
Total current assets
|
- | 188,371 | 20,514 | - | (4,356 | ) | 204,529 | |||||||||||||||||
Investments in subsidiaries eliminated upon consolidation
|
65,149 | - | - | 80,391 | (145,540 | ) | - | |||||||||||||||||
Amounts due from parents eliminated upon consolidation
|
- | 17,545 | - | - | (17,545 | ) | - | |||||||||||||||||
Property and equipment, net
|
- | 179,366 | 26,111 | - | - | 205,477 | ||||||||||||||||||
Goodwill
|
- | 165,544 | 32,489 | - | - | 198,033 | ||||||||||||||||||
FCC licenses
|
- | 247,457 | 41,563 | - | - | 289,020 | ||||||||||||||||||
Other intangible assets, net
|
- | 133,077 | 23,265 | - | - | 156,342 | ||||||||||||||||||
Other noncurrent assets
|
- | 66,655 | 28,737 | - | - | 95,392 | ||||||||||||||||||
Total assets
|
$ | 65,149 | $ | 998,015 | $ | 172,679 | $ | 80,391 | $ | (167,441 | ) | $ | 1,148,793 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Current portion of debt
|
$ | - | $ | 4,337 | $ | 1,837 | $ | - | $ | - | $ | 6,174 | ||||||||||||
Due to Mission
|
- | 4,356 | - | - | (4,356 | ) | - | |||||||||||||||||
Other current liabilities
|
- | 58,218 | 5,462 | - | - | 63,680 | ||||||||||||||||||
Total current liabilities
|
- | 66,911 | 7,299 | - | (4,356 | ) | 69,854 | |||||||||||||||||
Debt
|
- | 832,188 | 229,190 | - | - | 1,061,378 | ||||||||||||||||||
Amounts due to subsidiary eliminated upon consolidation
|
2,305 | - | - | 15,240 | (17,545 | ) | - | |||||||||||||||||
Other noncurrent liabilities
|
(3 | ) | 18,525 | 7,479 | 2 | - | 26,003 | |||||||||||||||||
Total liabilities
|
2,302 | 917,624 | 243,968 | 15,242 | (21,901 | ) | 1,157,235 | |||||||||||||||||
Stockholders' equity (deficit):
|
||||||||||||||||||||||||
Common stock
|
306 | - | - | - | - | 306 | ||||||||||||||||||
Other stockholders' equity (deficit)
|
62,541 | 80,391 | (71,289 | ) | 65,149 | (145,540 | ) | (8,748 | ) | |||||||||||||||
Total stockholders' equity (deficit)
|
62,847 | 80,391 | (71,289 | ) | 65,149 | (145,540 | ) | (8,442 | ) | |||||||||||||||
Total liabilities and stockholders' equity (deficit)
|
$ | 65,149 | $ | 998,015 | $ | 172,679 | $ | 80,391 | $ | (167,441 | ) | $ | 1,148,793 |
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||||||
As of December 31, 2013
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Nexstar
|
Nexstar
|
Consolidated
|
||||||||||||||||||||||
Nexstar
|
Broadcasting
|
Mission
|
Holdings
|
Eliminations
|
Company
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | $ | 36,312 | $ | 3,716 | $ | - | $ | - | $ | 40,028 | ||||||||||||
Due from Mission
|
- | 3,847 | - | - | (3,847 | ) | - | |||||||||||||||||
Other current assets
|
- | 146,298 | 14,840 | - | - | 161,138 | ||||||||||||||||||
Total current assets
|
- | 186,457 | 18,556 | - | (3,847 | ) | 201,166 | |||||||||||||||||
Investments in subsidiaries eliminated upon consolidation
|
61,100 | - | - | 76,342 | (137,442 | ) | - | |||||||||||||||||
Amounts due from subsidiary eliminated upon consolidation
|
259 | - | - | - | (259 | ) | - | |||||||||||||||||
Amounts due from parents eliminated upon consolidation
|
- | 14,981 | - | - | (14,981 | ) | - | |||||||||||||||||
Property and equipment, net
|
- | 185,499 | 26,760 | - | - | 212,259 | ||||||||||||||||||
Goodwill
|
- | 165,563 | 32,489 | - | - | 198,052 | ||||||||||||||||||
FCC licenses
|
- | 247,457 | 41,563 | - | - | 289,020 | ||||||||||||||||||
Other intangible assets, net
|
- | 138,497 | 24,038 | - | - | 162,535 | ||||||||||||||||||
Other noncurrent assets
|
- | 69,347 | 31,343 | - | - | 100,690 | ||||||||||||||||||
Total assets
|
$ | 61,359 | $ | 1,007,801 | $ | 174,749 | $ | 76,342 | $ | (156,529 | ) | $ | 1,163,722 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Current portion of debt
|
$ | - | $ | 4,523 | $ | 2,334 | $ | - | $ | - | $ | 6,857 | ||||||||||||
Due to Nexstar Broadcasting
|
- | - | 3,847 | - | (3,847 | ) | - | |||||||||||||||||
Other current liabilities
|
- | 72,115 | 4,950 | - | - | 77,065 | ||||||||||||||||||
Total current liabilities
|
- | 76,638 | 11,131 | - | (3,847 | ) | 83,922 | |||||||||||||||||
Debt
|
- | 834,131 | 230,131 | - | - | 1,064,262 | ||||||||||||||||||
Amounts due to subsidiary eliminated upon consolidation
|
- | - | - | 15,240 | (15,240 | ) | - | |||||||||||||||||
Other noncurrent liabilities
|
(3 | ) | 20,690 | 8,080 | 2 | - | 28,769 | |||||||||||||||||
Total liabilities
|
(3 | ) | 931,459 | 249,342 | 15,242 | (19,087 | ) | 1,176,953 | ||||||||||||||||
Stockholders' equity (deficit):
|
||||||||||||||||||||||||
Common stock
|
306 | - | - | - | - | 306 | ||||||||||||||||||
Other stockholders' equity (deficit)
|
61,056 | 76,342 | (74,593 | ) | 61,100 | (137,442 | ) | (13,537 | ) | |||||||||||||||
Total stockholders' equity (deficit)
|
61,362 | 76,342 | (74,593 | ) | 61,100 | (137,442 | ) | (13,231 | ) | |||||||||||||||
Total liabilities and
|
||||||||||||||||||||||||
stockholders' equity (deficit)
|
$ | 61,359 | $ | 1,007,801 | $ | 174,749 | $ | 76,342 | $ | (156,529 | ) | $ | 1,163,722 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
|
||||||||||||||||||||||||
Three Months Ended March 31, 2014
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Nexstar
|
Nexstar
|
Consolidated
|
||||||||||||||||||||||
Nexstar
|
Broadcasting
|
Mission
|
Holdings
|
Eliminations
|
Company
|
|||||||||||||||||||
Net broadcast revenue (including trade and barter)
|
$ | - | $ | 124,953 | $ | 8,880 | $ | - | $ | - | $ | 133,833 | ||||||||||||
Revenue between consolidated entities
|
- | 2,445 | 9,648 | - | (12,093 | ) | - | |||||||||||||||||
Net revenue
|
- | 127,398 | 18,528 | - | (12,093 | ) | 133,833 | |||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Direct operating expenses, excluding depreciation and amortization
|
- | 37,483 | 4,366 | - | - | 41,849 | ||||||||||||||||||
Selling, general, and administrative expenses, excluding depreciation and amortization
|
- | 40,217 | 823 | - | - | 41,040 | ||||||||||||||||||
Local service agreement fees between consolidated entities
|
- | 9,648 | 2,445 | - | (12,093 | ) | - | |||||||||||||||||
Amortization of broadcast rights
|
- | 7,142 | 1,490 | - | - | 8,632 | ||||||||||||||||||
Amortization of intangible assets
|
- | 5,420 | 773 | - | - | 6,193 | ||||||||||||||||||
Depreciation
|
- | 7,686 | 733 | - | - | 8,419 | ||||||||||||||||||
Total operating expenses
|
- | 107,596 | 10,630 | - | (12,093 | ) | 106,133 | |||||||||||||||||
Income from operations
|
- | 19,802 | 7,898 | - | - | 27,700 | ||||||||||||||||||
Interest expense, net
|
- | (12,677 | ) | (2,493 | ) | - | - | (15,170 | ) | |||||||||||||||
Other expenses
|
- | (128 | ) | - | - | - | (128 | ) | ||||||||||||||||
Equity in income of subsidiaries
|
4,049 | - | - | 4,049 | (8,098 | ) | - | |||||||||||||||||
Income before income taxes
|
4,049 | 6,997 | 5,405 | 4,049 | (8,098 | ) | 12,402 | |||||||||||||||||
Income tax expense
|
- | (2,948 | ) | (2,101 | ) | - | - | (5,049 | ) | |||||||||||||||
Net income
|
$ | 4,049 | $ | 4,049 | $ | 3,304 | $ | 4,049 | $ | (8,098 | ) | $ | 7,353 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
|
||||||||||||||||||||||||
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Nexstar
|
Nexstar
|
Consolidated
|
||||||||||||||||||||||
Nexstar
|
Broadcasting
|
Mission
|
Holdings
|
Eliminations
|
Company
|
|||||||||||||||||||
Net broadcast revenue (including trade and barter)
|
$ | - | $ | 105,110 | $ | 7,095 | $ | - | $ | - | $ | 112,205 | ||||||||||||
Revenue between consolidated entities
|
- | 2,405 | 9,262 | - | (11,667 | ) | - | |||||||||||||||||
Net revenue
|
- | 107,515 | 16,357 | - | (11,667 | ) | 112,205 | |||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Direct operating expenses, excluding depreciation and amortization
|
- | 30,756 | 3,348 | - | - | 34,104 | ||||||||||||||||||
Selling, general, and administrative expenses, excluding depreciation and amortization
|
- | 34,703 | 797 | - | - | 35,500 | ||||||||||||||||||
Local service agreement fees between consolidated entities
|
- | 9,262 | 2,405 | - | (11,667 | ) | - | |||||||||||||||||
Amortization of broadcast rights
|
- | 7,214 | 1,599 | - | - | 8,813 | ||||||||||||||||||
Amortization of intangible assets
|
- | 5,924 | 2,066 | - | - | 7,990 | ||||||||||||||||||
Depreciation
|
- | 7,012 | 968 | - | - | 7,980 | ||||||||||||||||||
Total operating expenses
|
- | 94,871 | 11,183 | - | (11,667 | ) | 94,387 | |||||||||||||||||
Income from operations
|
- | 12,644 | 5,174 | - | - | 17,818 | ||||||||||||||||||
Interest expense, net
|
- | (12,072 | ) | (4,477 | ) | - | - | (16,549 | ) | |||||||||||||||
Other expense
|
- | (84 | ) | - | - | - | (84 | ) | ||||||||||||||||
Equity in income of subsidiaries
|
282 | - | - | 282 | (564 | ) | - | |||||||||||||||||
Income before income taxes
|
282 | 488 | 697 | 282 | (564 | ) | 1,185 | |||||||||||||||||
Income tax expense
|
- | (206 | ) | (274 | ) | - | - | (480 | ) | |||||||||||||||
Net income
|
$ | 282 | $ | 282 | $ | 423 | $ | 282 | $ | (564 | ) | $ | 705 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||||||||
Three Months Ended March 31, 2014
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Nexstar
|
Nexstar
|
Consolidated
|
||||||||||||||||||||||
Nexstar
|
Broadcasting
|
Mission
|
Holdings
|
Eliminations
|
Company
|
|||||||||||||||||||
Cash flows from operating activities
|
$ | - | $ | 46,269 | $ | (1,538 | ) | $ | - | $ | - | $ | 44,731 | |||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||
Purchases of property and equipment
|
- | (3,899 | ) | (84 | ) | - | - | (3,983 | ) | |||||||||||||||
Deposits and payments for acquisitions
|
- | (22,057 | ) | - | - | - | (22,057 | ) | ||||||||||||||||
Other investing activities
|
- | 14 | - | - | - | 14 | ||||||||||||||||||
Net cash used in investing activities
|
- | (25,942 | ) | (84 | ) | - | - | (26,026 | ) | |||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||
Repayments of long-term debt
|
- | (2,155 | ) | (1,455 | ) | - | - | (3,610 | ) | |||||||||||||||
Common stock dividends paid
|
(4,588 | ) | - | - | - | - | (4,588 | ) | ||||||||||||||||
Inter-company payments
|
4,481 | (4,481 | ) | - | - | - | - | |||||||||||||||||
Other financing activities
|
107 | 10 | (72 | ) | - | - | 45 | |||||||||||||||||
Net cash used in financing activities
|
- | (6,626 | ) | (1,527 | ) | - | - | (8,153 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
- | 13,701 | (3,149 | ) | - | - | 10,552 | |||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 36,312 | 3,716 | - | - | 40,028 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 50,013 | $ | 567 | $ | - | $ | - | $ | 50,580 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||||||||
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Nexstar
|
Nexstar
|
Consolidated
|
||||||||||||||||||||||
Nexstar
|
Broadcasting
|
Mission
|
Holdings
|
Eliminations
|
Company
|
|||||||||||||||||||
Cash flows from operating activities
|
$ | - | $ | 15,546 | $ | (2,441 | ) | $ | - | $ | - | $ | 13,105 | |||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||
Purchases of property and equipment
|
- | (6,766 | ) | (20 | ) | - | - | (6,786 | ) | |||||||||||||||
Payments for acquisitions
|
- | (61,776 | ) | (59,338 | ) | - | - | (121,114 | ) | |||||||||||||||
Other investing activities
|
- | 6 | - | - | - | 6 | ||||||||||||||||||
Net cash used in investing activities
|
- | (68,536 | ) | (59,358 | ) | - | - | (127,894 | ) | |||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||
Proceeds from issuance of long-term debt
|
- | 5,000 | 65,000 | - | - | 70,000 | ||||||||||||||||||
Repayments of long-term debt
|
- | (10 | ) | - | - | - | (10 | ) | ||||||||||||||||
Common stock dividends paid
|
(3,529 | ) | - | - | - | - | (3,529 | ) | ||||||||||||||||
Inter-company payments
|
2,074 | (2,074 | ) | - | - | - | - | |||||||||||||||||
Other financing activities
|
1,455 | 3,349 | (2,850 | ) | - | - | 1,954 | |||||||||||||||||
Net cash provided by financing activities
|
- | 6,265 | 62,150 | - | - | 68,415 | ||||||||||||||||||
Net (decrease) increase in cash and cash equivalents
|
- | (46,725 | ) | 351 | - | - | (46,374 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 68,681 | 318 | - | - | 68,999 | ||||||||||||||||||
Cash and cash equivalents at end of period
|
$ | - | $ | 21,956 | $ | 669 | $ | - | $ | - | $ | 22,625 |
10.
|
Subsequent Events
|
•
|
Net revenue during the first quarter of 2014 increased by $21.6 million, or 19.3% compared to the same period in 2013. The increase in net revenue was primarily due to the 9 television stations (KGPE, KKEY-LP, KGET, KSEE, WFFF, WVNY, KCAU, WHBF and WOI) we acquired or contracted to provide programming and sales services for during 2013 along with an increase in advertising on our legacy stations as 2014 is a political and an Olympic year. The incremental revenue from our newly acquired stations was approximately $11.9 million for the first quarter of 2014.
|
•
|
During the three months ended March 31, 2014, our Board of Directors declared quarterly dividends of $0.15 per share of Nexstar’s outstanding common stock, resulting in total dividend payments of $4.6 million.
|
•
|
On March 13, 2014, we completed our acquisitions of the assets of KCAU, the ABC affiliate serving the Sioux City, Iowa market and WHBF, the CBS affiliate serving the Quad Cities, Iowa market, and the outstanding equity of WOI, the ABC affiliate serving the Des Moines, Iowa market, from Citadel. The total purchase price of these acquisitions amounted to $87.9 million, of which $65.9 million was paid during 2013, funded by the proceeds from our borrowings under our senior secured credit facility, and the remaining $22.0 million was paid in March 2014, funded by cash on hand.
|
•
|
Effective April 1, 2014, we acquired the assets of IBS, a digital publishing platform and digital agency services provider, for a total purchase price of $20.0 million, subject to adjustments for working capital, funded by cash on hand. The acquisition broadens our digital media portfolio with technologies and offerings that are complementary to our existing digital businesses and multi-screen strategies.
|
•
|
In March 2014, we and Mission collectively paid a total of $3.6 million of the outstanding principal balances under our and Mission’s term loans.
|
Three Months Ended March 31,
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Local
|
$ | 65,642 | 47.1 | $ | 59,934 | 51.9 | ||||||||||
National
|
27,189 | 19.5 | 23,375 | 20.2 | ||||||||||||
Political
|
4,003 | 2.9 | 762 | 0.7 | ||||||||||||
Retransmission compensation
|
35,129 | 25.2 | 23,796 | 20.7 | ||||||||||||
Digital media revenue
|
6,277 | 4.5 | 6,500 | 5.6 | ||||||||||||
Other
|
981 | 0.8 | 1,125 | 0.9 | ||||||||||||
Total gross revenue
|
139,221 | 100.0 | 115,492 | 100.0 | ||||||||||||
Less: Agency commissions
|
(12,516 | ) | (9.0 | ) | (10,705 | ) | (9.3 | ) | ||||||||
Net broadcast revenue
|
126,705 | 91.0 | 104,787 | 90.7 | ||||||||||||
Trade and barter revenue
|
7,128 | 7,418 | ||||||||||||||
Net revenue
|
$ | 133,833 | $ | 112,205 |
Three Months Ended March 31,
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Net revenue
|
$ | 133,833 | 100.0 | $ | 112,205 | 100.0 | ||||||||||
Operating expenses:
|
||||||||||||||||
Corporate expenses
|
8,504 | 6.4 | 6,733 | 6.0 | ||||||||||||
Station direct operating expenses, net of trade
|
40,379 | 30.2 | 32,591 | 29.0 | ||||||||||||
Station selling, general and administrative expenses
|
32,536 | 24.3 | 28,767 | 25.6 | ||||||||||||
Trade and barter expense
|
7,142 | 5.3 | 7,357 | 6.6 | ||||||||||||
Depreciation
|
8,419 | 6.3 | 7,980 | 7.1 | ||||||||||||
Amortization of intangible assets
|
6,193 | 4.6 | 7,990 | 7.1 | ||||||||||||
Amortization of broadcast rights, excluding barter
|
2,960 | 2.2 | 2,969 | 2.6 | ||||||||||||
Income from operations
|
$ | 27,700 | $ | 17,818 |
Three Months Ended
March 31,
|
||||||||
2014
|
2013
|
|||||||
Net cash provided by operating activities
|
$ | 44,731 | $ | 13,105 | ||||
Net cash used in investing activities
|
(26,026 | ) | (127,894 | ) | ||||
Net cash provided by (used in) financing activities
|
(8,153 | ) | 68,415 | |||||
Net (decrease) increase in cash and cash equivalents
|
$ | 10,552 | $ | (46,374 | ) | |||
Cash paid for interest
|
$ | 5,547 | $ | 3,350 | ||||
Cash paid for income taxes, net
|
$ | 47 | $ | 899 |
As of
|
As of
|
|||||||
March 31,
2014
|
December 31,
2013
|
|||||||
Cash and cash equivalents
|
$ | 50,580 | $ | 40,028 | ||||
Long-term debt including current portion
|
1,067,552 | 1,071,119 | ||||||
Unused incremental term loan commitments under senior secured credit facilities
|
184,000 | 184,000 | ||||||
Unused revolving loan commitments under senior secured credit facilities
(1)
|
105,000 | 105,000 |
(1)
|
Based on covenant calculations, as of March 31, 2014, all of the $105.0 million unused revolving loan
|
||||||||||
commitments under the Nexstar and Mission senior secured credit facilities were available for borrowing.
|
Total
|
Remainder
of 2014
|
2015-2016 | 2017-2018 |
Thereafter
|
||||||||||||||||
Nexstar senior secured credit facility
|
$ | 311,953 | $ | 3,252 | $ | 12,286 | $ | 45,545 | $ | 250,870 | ||||||||||
Mission senior secured credit facility
|
231,441 | 1,378 | 4,171 | 4,670 | 221,222 | |||||||||||||||
6.875% senior unsecured notes due 2020
|
525,000 | - | - | - | 525,000 | |||||||||||||||
$ | 1,068,394 | $ | 4,630 | $ | 16,457 | $ | 50,215 | $ | 997,092 |
ITEM 4.
|
Controls and Procedures
|
ITEM 1.
|
Legal Proceedings
|
ITEM 1A.
|
Risk Factors
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
ITEM 3.
|
Defaults Upon Senior Securities
|
ITEM 4.
|
Mine Safety Disclosures
|
ITEM 5.
|
Other Information
|
ITEM 6.
|
Exhibits
|
Exhibit No.
|
Description
|
||
10.1 |
Letter dated March 25, 2014, notifying Mission Broadcasting, Inc. of the election to extend Shared Services Agreement and Agreement for the Sale of Commercial Time (WUTR)*
|
||
10.2 |
Asset Purchase Agreement by and between Internet Broadcasting Systems, Inc. and Nexstar Broadcasting, Inc. dated March 12, 2014*
|
||
10.3 |
Letter dated October 1, 2013, notifying Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. of the Amended and Restated Revolver Reallocation*
|
||
10.4
|
Fourth Amendment to the Fifth Amended and Restated Credit Agreement, dated as of May 6, 2014, by and among Nexstar Broadcasting, Inc., Nexstar Broadcasting Group, Inc., Nexstar Finance Holdings, Inc., Bank of America, N.A. and several lenders named therein. (Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K (File No. 000-50478) filed by Nexstar Broadcasting Group, Inc. on May 9, 2014)
|
||
10.5
|
Fourth Amendment to the Fourth Amended and Restated Credit Agreement, dated as of May 6, 2014, by and among Mission Broadcasting, Inc., Bank of America, N.A. several lenders named therein. (Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K (File No. 000-50478) filed by Nexstar Broadcasting Group, Inc. on May 9, 2014)
|
||
31.1 |
Certification of Perry A. Sook pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
||
31.2 |
Certification of Thomas E. Carter pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
||
32.1 |
Certification of Perry A. Sook pursuant to 18 U.S.C. ss. 1350.*
|
||
32.2 |
Certification of Thomas E. Carter pursuant to 18 U.S.C. ss. 1350.*
|
||
101 |
The Company’s unaudited Condensed Consolidated Financial Statements and related Notes for the quarter ended March 31, 2014 from this Quarterly Report on Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language).*
|
NEXSTAR BROADCASTING GROUP, INC.
|
/S/ PERRY A. SOOK
|
|
By:
|
Perry A. Sook
|
Its:
|
President and Chief Executive Officer (Principal Executive Officer)
|
/S/ THOMAS E. CARTER
|
|
By:
|
Thomas E. Carter
|
Its:
|
Chief Financial Officer (Principal Accounting and Financial Officer)
|
1 Year Nexstar Media Chart |
1 Month Nexstar Media Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions