Nexstar Media Group, Inc. (NXST) Bundle
A Brief History of Nexstar Media Group, Inc.
Overview
Nexstar Media Group, Inc., as of September 30, 2024, operates 200 full power television stations across 116 markets in 40 states and the District of Columbia. The company also owns a 75% interest in The CW Network and has a significant stake in TV Food Network.
Financial Performance
For the nine months ended September 30, 2024, Nexstar reported net revenue of $3.9 billion, an increase of 8.0% compared to the same period in 2023. The net income for this period was $480 million, up from $232 million in the previous year.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Revenue | $3.9 billion | $3.6 billion |
| Net Income | $480 million | $232 million |
| Advertising Revenue | $1.656 billion | $1.543 billion |
| Distribution Revenue | $2.215 billion | $2.068 billion |
Debt and Financing
As of September 30, 2024, Nexstar had total outstanding debt of $6.7 billion, representing 75.1% of the company's combined capitalization. The debt consists of various term loans and senior notes. Notably, the Nexstar senior secured credit facility amounted to $3.659 billion.
| Debt Component | Amount (in millions) |
|---|---|
| Nexstar Senior Secured Credit Facility | $3,659 |
| Mission Senior Secured Credit Facility | $353 |
| 5.625% Notes (due July 2027) | $1,714 |
| 4.75% Notes (due November 2028) | $1,000 |
Cash Flow Highlights
For the nine months ended September 30, 2024, Nexstar's net cash provided by operating activities was $839 million, compared to $817 million in the same period of 2023. The company reported net cash used in investing activities of $68 million, a decrease from $137 million in the previous year.
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $839 million | $817 million |
| Net Cash Used in Investing Activities | $68 million | $137 million |
| Net Cash Used in Financing Activities | $737 million | $736 million |
Stockholder Returns
Nexstar has been active in returning capital to shareholders, with approximately $590 million returned through stock repurchases and dividends during the first nine months of 2024.
| Return Component | Amount (in millions) |
|---|---|
| Stock Repurchases | $423 |
| Dividends Paid | $167 |
Recent Developments
In February 2024, Nexstar completed the sale of an investment, realizing a gain of $40 million. The company also announced the renewal of key affiliation agreements with major networks and expanded its news programming to a 24/7 format.
A Who Owns Nexstar Media Group, Inc. (NXST)
Ownership Structure
Nexstar Media Group, Inc. (NASDAQ: NXST) is primarily owned by institutional investors, with a significant percentage of its shares held by the board members and executive officers. As of September 30, 2024, the ownership breakdown is as follows:
| Owner Type | Ownership Percentage | Shares Owned |
|---|---|---|
| Institutional Investors | 78.5% | 37,085,000 |
| Insider Ownership | 1.5% | 710,000 |
| Public Float | 20.0% | 9,487,823 |
Major Institutional Investors
The following table lists the major institutional shareholders of Nexstar Media Group as of September 30, 2024:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group | 14.1% | 6,676,000 |
| BlackRock, Inc. | 12.8% | 6,059,000 |
| State Street Corporation | 9.5% | 4,497,000 |
| Wellington Management Group | 6.7% | 3,150,000 |
| Invesco Ltd. | 5.3% | 2,500,000 |
Executive and Board Ownership
The executive leadership and board of directors also hold shares in Nexstar Media Group. The details are as follows:
| Name | Position | Shares Owned |
|---|---|---|
| Perry A. Sook | Chairman & CEO | 500,000 |
| Lee Ann Gliha | Chief Financial Officer | 150,000 |
| Other Executives | Various | 60,000 |
Recent Share Repurchases
Nexstar has engaged in significant share repurchase activities recently. The following table summarizes the recent repurchase activities:
| Month | Shares Repurchased | Amount Spent (in millions) |
|---|---|---|
| July 2024 | 227,029 | $39.0 |
| August 2024 | 510,044 | $84.8 |
| September 2024 | 324,779 | $53.8 |
| Total | 1,061,852 | $177.6 |
Dividend Declarations
Nexstar Media Group has a history of paying dividends to its shareholders. The most recent dividends declared are as follows:
| Dividend Declaration Date | Dividend Amount per Share | Payment Date |
|---|---|---|
| November 1, 2024 | $1.69 | November 29, 2024 |
Debt and Financial Status
As of September 30, 2024, Nexstar Media Group's total outstanding debt was reported at $6.7 billion. The breakdown is as follows:
| Debt Type | Amount (in millions) |
|---|---|
| Nexstar Senior Secured Credit Facility | $3,659 |
| Mission Senior Secured Credit Facility | $353 |
| 5.625% Notes, due July 2027 | $1,714 |
| 4.75% Notes, due November 2028 | $1,000 |
| Total Outstanding Debt | $6,726 |
Nexstar Media Group, Inc. (NXST) Mission Statement
Overview of Mission Statement
Overview of Mission Statement
Nexstar Media Group, Inc. aims to provide the highest quality local news, information, and entertainment to its viewers. The company is committed to delivering compelling content across various platforms while maximizing shareholder value.
Financial Performance
As of September 30, 2024, Nexstar reported a net income of $187 million for the third quarter, compared to $25 million for the same period in 2023. For the nine months ended September 30, 2024, net income was $480 million, up from $232 million in 2023.
| Period | Net Income (in millions) | Net Income per Share (Basic) | Net Income per Share (Diluted) |
|---|---|---|---|
| Q3 2024 | $187 | $5.34 | $5.27 |
| Q3 2023 | $25 | $0.71 | $0.70 |
| 9M 2024 | $480 | $14.17 | $13.96 |
| 9M 2023 | $232 | $6.47 | $6.37 |
Advertising Revenue
Advertising revenue increased by $113 million in Q3 2024, driven by a significant rise in political advertising due to the election year. Political advertising accounted for an increase of $135 million, while non-political advertising saw a decrease of $22 million.
Debt Management
As of September 30, 2024, Nexstar's total outstanding debt was $6.7 billion, which represented 75.1% of the company’s combined capitalization. The breakdown of long-term debt is as follows:
| Debt Type | Amount (in millions) | Due Date |
|---|---|---|
| Term Loan A | $2,152 | June 2027 |
| Term Loan B | $1,507 | September 2026 |
| 5.625% Notes | $1,714 | July 2027 |
| 4.75% Notes | $1,000 | November 2028 |
Share Repurchase Program
During the nine months ended September 30, 2024, Nexstar repurchased 2,576,330 shares of its common stock for $423 million. As of September 30, 2024, the remaining available amount under the share repurchase authorization was $1.7 billion.
| Month | Shares Purchased | Dollar Value (in millions) | Average Price per Share |
|---|---|---|---|
| July 2024 | 227,029 | $171.96 | $1,868 |
| August 2024 | 510,044 | $166.06 | $1,783 |
| September 2024 | 324,779 | $165.53 | $1,729 |
Dividend Policy
Nexstar's Board of Directors declared a quarterly cash dividend of $1.69 per share on November 1, 2024, payable on November 29, 2024. This represents a 25% increase from prior dividends.
Market Presence
Nexstar operates numerous television stations and digital platforms, providing extensive coverage and content tailored to local audiences. The company benefits from a diversified revenue stream, including advertising, retransmission fees, and digital services.
How Nexstar Media Group, Inc. (NXST) Works
Operational Overview
Nexstar Media Group, Inc. operates as a leading diversified media company in the United States, owning and operating 200 full power television stations and one AM radio station across 116 markets in 40 states and the District of Columbia. As of September 30, 2024, Nexstar’s stations reach approximately 39% of all U.S. television households.
Financial Performance
For the three months ended September 30, 2024, Nexstar reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenue | $1,366 million | $1,132 million | 20.7% |
| Operating Expenses | $1,031 million | $1,038 million | (0.7%) |
| Income from Operations | $335 million | $94 million | 256.4% |
| Net Income | $187 million | $25 million | 648.0% |
Revenue Breakdown
In Q3 2024, the revenue sources were as follows:
| Source | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Distribution Revenue | $719 million | $598 million | 20.2% |
| Advertising Revenue | $622 million | $509 million | 22.2% |
| Other Revenue | $25 million | $25 million | 0.0% |
Operating Expenses
Operating expenses for Q3 2024 were detailed as follows:
| Expense Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Direct Operating Expenses | $563 million | $537 million | 4.8% |
| Selling, General and Administrative | $278 million | $281 million | (1.1%) |
| Depreciation and Amortization | $190 million | $220 million | (13.6%) |
Income Analysis
Nexstar's net income attributable to the company for the nine months ended September 30, 2024, was reported at $480 million, compared to $232 million for the same period in 2023, reflecting a substantial increase of 106.9%.
Debt and Equity Structure
As of September 30, 2024, Nexstar’s total liabilities amounted to $9,452 million, with long-term debt comprising $6,576 million. The company's stockholders' equity stood at $2,204 million.
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan A | $2,152 |
| Term Loan B | $1,507 |
| 5.625% Notes | $1,714 |
| 4.75% Notes | $1,000 |
| Revolving Loans | $62 |
Shareholder Returns
Nexstar declared a quarterly cash dividend of $1.69 per share, payable on November 29, 2024, to stockholders of record on November 15, 2024. The company repurchased 2,576,330 shares for $423 million during the nine months ended September 30, 2024, with a remaining share repurchase authorization of $1.7 billion.
Market Position and Strategy
Nexstar continues to strengthen its market position through strategic acquisitions and operational efficiencies. The company acquired assets from WSNN-LD and KUSI-TV in 2023 for a total of $38 million, enhancing its portfolio in key markets.
Investment in Affiliates
As of September 30, 2024, Nexstar holds a 75% ownership interest in The CW Network and a 31.3% stake in the Television Food Network, further diversifying its media investments.
Recent Developments
In February 2024, Nexstar recorded a gain on the disposal of an investment amounting to $40 million related to Broadcast Music Inc.
How Nexstar Media Group, Inc. (NXST) Makes Money
Revenue Sources
Nexstar Media Group, Inc. generates revenue primarily through two main categories: distribution and advertising.
Distribution Revenue
Distribution revenue is the largest source of income for Nexstar, primarily derived from:
- Retransmission revenue
- Carriage fees
- Affiliation fees
- Spectrum leasing revenue
For the nine months ended September 30, 2024, distribution revenue amounted to $2.215 billion, reflecting an increase of 9.5% compared to the same period in 2023. This growth was largely due to:
- Contract renewals on favorable terms
- Annual rate escalators
- Growth in virtual multichannel video distributor (vMVPD) subscribers
The following table summarizes the distribution revenue for the recent periods:
| Period | Distribution Revenue (in millions) |
|---|---|
| Three Months Ended September 30, 2024 | $719 |
| Three Months Ended September 30, 2023 | $598 |
| Nine Months Ended September 30, 2024 | $2,215 |
| Nine Months Ended September 30, 2023 | $2,023 |
Advertising Revenue
Advertising revenue constitutes the second major source of income for Nexstar, generated from:
- Commercial airtime sales to local, regional, and national businesses
- Political advertising
- Digital advertising through owned and third-party websites
For the nine months ended September 30, 2024, advertising revenue was $1.656 billion, which is a 7.9% increase from the prior year. This rise was driven by:
- Increased political advertising revenue in the election year
- Growth in digital advertising
The following table presents the advertising revenue for recent periods:
| Period | Advertising Revenue (in millions) |
|---|---|
| Three Months Ended September 30, 2024 | $622 |
| Three Months Ended September 30, 2023 | $509 |
| Nine Months Ended September 30, 2024 | $1,656 |
| Nine Months Ended September 30, 2023 | $1,535 |
Other Revenue Streams
Nexstar also generates revenue from other sources, contributing $49 million for the nine months ended September 30, 2024. This includes:
- Revenue from digital assets
- Miscellaneous revenue streams
Operating Expenses
Operating expenses for Nexstar totaled $3.069 billion for the nine months ended September 30, 2024, a decrease of 2.6% from the previous year. Key components of operating expenses include:
- Direct operating expenses: $1.663 billion
- Selling, general, and administrative expenses: $818 million
- Depreciation and amortization: $588 million
Income from Operations
Nexstar reported income from operations of $851 million for the nine months ended September 30, 2024, representing a significant increase of 78.4% compared to the previous year. This is indicative of improved margins driven by higher revenue and controlled operating costs.
Net Income
For the nine months ended September 30, 2024, Nexstar's net income attributable to the company was $480 million, compared to $232 million in the same period of 2023. This growth reflects the company's ability to capitalize on its revenue streams effectively.
Cash Flow Overview
Nexstar's cash flow from operating activities for the nine months ended September 30, 2024, was $839 million, compared to $817 million in the same period of 2023. This slight increase demonstrates stable operational performance amidst changing market conditions.
Debt and Financial Position
As of September 30, 2024, Nexstar's total outstanding debt was reported at $6.7 billion, which represented approximately 75.1% of the company's combined capitalization. The company continues to manage its debt levels while investing in growth opportunities.
Summary of Financial Performance
The following table summarizes key financial metrics for Nexstar Media Group, Inc. for the nine months ended September 30, 2024:
| Metric | Amount (in millions) |
|---|---|
| Total Net Revenue | $3,920 |
| Operating Income | $851 |
| Net Income | $480 |
| Cash Flow from Operating Activities | $839 |
| Total Outstanding Debt | $6,700 |
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Resources:
- Nexstar Media Group, Inc. (NXST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nexstar Media Group, Inc. (NXST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nexstar Media Group, Inc. (NXST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.