While being labeled "analyst" at Seeking Alpha I prefer the old terms of "contributor" or "author" as those better describe my current situation. Even though I worked as a buy-side analyst for many years in the past I am not writing on Seeking Alpha as a professional analyst. Those times are behind me and I simply write my personal independent views and hope to enter fruitful discusssions in the comment section.As I have always been intrigued by the dynamics of the broader economy and stock markets in parti ...

Debt and Financial Obligations - As of December 31, 2024, the company had $6.5 billion in debt, representing 74.3% of total capitalization[106] - The company has $3.8 billion in floating rate debt, which is sensitive to changes in the Secured Overnight Financing Rate (SOFR)[106] - The pension benefit obligations for qualified retirement plans were $1.5 billion, with total net assets available of $1.4 billion, resulting in an underfunding of approximately $148 million[125] - The company contributed $4 million to unfunded supplemental executive retirement plans during 2024, with a total liability of $37 million as of December 31, 2024[126] - An increase in SOFR by 100 basis points would raise annual interest expense by $38 million, while a decrease would lower it by the same amount[254] - The company's senior secured credit facilities bear interest rates ranging from 5.88% to 6.88% as of December 31, 2024[253] Income and Investments - For the year ended December 31, 2024, the company's income from equity investments in TV Food Network was $144 million, with cash distributions of $154 million[112] - The book value of the company's ownership interest in TV Food Network was $857 million as of December 31, 2024[112] Assets and Goodwill - As of December 31, 2024, $7.7 billion, or 67.1%, of the company's total assets consisted of goodwill and intangible assets[116] Tax Liabilities - The company may face additional tax liabilities related to ongoing tax audits, particularly concerning the acquisition of Tribune[118] - The IRS proposed a tax of $182 million and a penalty of $73 million related to the Chicago Cubs Transactions, with after-tax interest estimated at approximately $232 million[119] - As of December 31, 2024, the company reflected $11 million for certain contested tax issues in its liability for uncertain tax positions[124] Dividends - The board of directors declared total cash dividends of $6.76 per share for 2024, with a 10% increase to $1.86 per share starting in January 2025[128] Competition and Market Risks - The company faces significant competition in the television industry, impacting growth and profitability due to alternative media and changing viewer habits[134] - Changes in federal regulations could significantly impact operations and the television broadcasting industry as a whole[136] Cybersecurity and Intellectual Property - Cybersecurity risks could adversely affect operating effectiveness and financial results, with potential incidents leading to business interruptions and increased costs[132] - The company may face challenges in protecting its intellectual property, which could impact financial performance if infringements occur[130] Share Repurchases and Legal Risks - The company engages in share repurchases, which may affect stock prices and can be suspended at any time[129] - An adverse outcome from litigation or governmental investigations could significantly impact operating results and financial condition[127] Ownership Limitations - The company is subject to foreign ownership limitations, restricting non-U.S. ownership to no more than 20%[137]

Nexstar Media Group, Inc. (NASDAQ:NXST) Q4 2024 Earnings Conference Call February 27, 2025 10:00 AM ET Company Participants Joe Jaffoni – Investor Relations Perry Sook – Founder, Chairman and Chief Executive Officer Mike Biard – President and Chief Operating Officer Lee Ann Gliha – Chief Financial Officer Conference Call Participants Steven Cahall – Wells Fargo Dan Kurnos – Benchmark Benjamin Soff – Deutsche Bank Craig Huber – Huber Research Partners Aaron Watts – Deutsche Bank Patrick Sholl – Barrington Re ...

FOURTH QUARTER 2024 SUPPLEMENTAL RECONCILATION MATERIALS | Year Ended Supplemental Financial Reconciliations Three Mos. Ended, Three Months Ended, Three Months Ended, Three Months Ended, | | | --- | --- | | in millions) December 31, September 30, June 30, March 31, December 31, | ($ | | 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2022 | | | Adjusted EBITDA Reconciliations: | | | Adjusted EBITDA (Current Definition) $ 628 $ 449 $ 510 $ 279 $ 414 $ 361 $ 452 $ 388 $ 2,004 $ 1,477 $ 2,238 | | | Plus: Dis ...

Exhibit 99.1 STATEMENT FROM PERRY A. SOOK, FOUNDER, CHAIRMAN AND CEO "We ended 2024 with another quarter of record net revenue driven by increased election year political advertising highlighting the effectiveness of local television broadcasting and our presence in nearly 85% of contested election markets across the country. In addition, we continued to grow distribution revenue, a testament to our position as the largest owner of local broadcast television stations carrying the most-watched programming. I ...

Group 1 - Nexstar Media Group (NASDAQ: NXST) has shown resilience in the media landscape despite industry challenges [1] - NXST stock has managed to overcome significant headwinds that have affected much of the media sector [1] Group 2 - Ian Bezek, a former hedge fund analyst, specializes in high-quality compounders and growth stocks at reasonable prices [2]

Core Viewpoint - Nexstar Media Group, Inc. (NASDAQ: NXST) is set to report its Q4 earnings on the 27th before the market opens, indicating anticipation for the financial results [1] Group 1: Earnings Expectations - The upcoming earnings report is expected to provide insights into the company's financial performance and future outlook [1]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: High-Yielding Stocks in Communication Services - Verizon Communications Inc. (VZ) has a dividend yield of 6.59%. Scotiabank analyst Maher Yaghi maintained a Sector Perform rating and reduced the price target from $47.25 to $47, while UBS analyst John Hodulik kept a Neutral rating and increased the price target from $43 to $44. Recent news includes the approval of Verizon's acquisition of Frontier Communications [3] - AT&T Inc. (T) has a dividend yield of 4.98%. Wells Fargo analyst Eric Luebchow maintained an Overweight rating and lowered the price target from $25 to $24, while Tigress Financial analyst Ivan Feinseth maintained a Buy rating and raised the price target from $29 to $30. Recent news includes the agreement with United States Cellular Corp to sell spectrum licenses for $1.018 billion [4] - Nexstar Media Group, Inc. (NXST) has a dividend yield of 4.07%. Barrington Research analyst James Goss maintained an Outperform rating with a price target of $200, while Benchmark analyst Daniel Kurnos reiterated a Buy rating with a price target of $215. Recent news includes the appointment of Bill Sammon as Senior Vice President of Washington, D.C., Editorial Content [5]

Financial Performance - Nexstar achieved record Q3 2024 total net revenue of $1.37 billion, a 20.7% YoY increase, driven by growth in distribution and advertising revenue [7][29] - Adjusted EBITDA reached $510 million, a 37.3% margin, up $231 million YoY, primarily due to election year political revenue and favorable MVPD contract renewals [50] - Adjusted free cash flow was $327 million, with $233 million returned to shareholders via dividends and share repurchases, reducing shares outstanding by 3.1% [55][56] - The company reduced debt by $85 million in Q3, with total debt standing at $6.7 billion as of September 30, 2024 [57] Business Line Performance - Distribution revenue grew 20.2% YoY to $719 million, benefiting from favorable contract renewals, vMVPD subscriber growth, and CW affiliations [29][30] - Advertising revenue increased 22.2% YoY, driven by a record $154 million in political advertising, offsetting a 4.5% decline in non-political advertising [40][42] - The CW reduced operating losses by $36 million YoY and $119 million YTD, with 46% of 2025 programming hours dedicated to sports, driving higher viewership at lower costs [21][22][43] Market Performance - Nexstar's broadcast stations hold the 1 or 2 position in local news in 80% of their markets, with 200 stations generating the highest network ratings [12] - The CW saw record audiences for NASCAR Xfinity Series and WWE NXT, with 4.7 million viewers tuning in on October 5, 2024, for a multi-sport lineup [19][20] - NewsNation achieved 100% accuracy in calling the 2024 presidential election, leveraging local news resources from 116 markets and partnerships like Decision Desk HQ [24][25] Strategic Direction and Industry Competition - Nexstar emphasizes the value of broadcast networks and stations, particularly in sports and news, as key differentiators in the linear TV ecosystem [10][15] - The company is focused on deregulation to compete with big tech, advocating for ownership cap reforms and ATSC 3.0 adoption to preserve local journalism [66][69] - Nexstar's streamlined portfolio of linear TV assets, including The CW and NewsNation, positions it well against competitors with broader cable network exposure [14][15] Management Commentary on Operating Environment and Outlook - Management highlighted the resilience of Nexstar's business model, with strong free cash flow generation enabling shareholder returns and debt reduction [9][59] - The company expects continued growth in distribution revenue, supported by moderating pay TV subscriber attrition and increasing retransmission rates [34][39] - Political advertising revenue reached $491 million YTD as of Election Day, a record for a presidential election year, with local TV remaining the medium of choice for candidates [27][28] Other Key Information - Nexstar completed distribution and network affiliation agreements with CBS and Gray Media, expanding The CW's reach and securing favorable terms [32] - The company is streamlining operations to reduce costs and accelerate innovation, focusing on initiatives that directly impact viewers and partners [44] - Nexstar's leverage ratio, excluding The CW, was 3.26x at the end of Q3, well below the covenant limit of 4.25x, providing financial flexibility [58] Q&A Session Summary Question: Likelihood of regulatory changes and impact on capital allocation [65] - Nexstar is actively pursuing deregulation of ownership caps at both national and local levels, viewing it as a bipartisan issue with potential for multiple expansion [66][69] Question: NewsNation's potential benefits from advertiser concerns about brand safety [65] - NewsNation is positioned as a fact-based, unbiased news network, with growing audience and revenue, benefiting from a potential shift away from more polarizing news outlets [70][72] Question: Path to profitability for The CW [65] - The CW is nearing profitability, with significant distribution renewals in 2025 expected to drive revenue growth, alongside cost reductions and expanded sports programming [74][75] Question: Outlook for distribution renewals and pricing power [76] - Nexstar expects to maintain strong pricing power in distribution renewals, supported by the value of its programming and the increasing concentration of sports and news viewers in the pay TV ecosystem [77][79] Question: Core advertising trends and categories [80] - Auto advertising was the largest declining category, impacted by high interest rates and low dealer inventory, while local advertising remained more stable than national [82][83] Question: Full-year political advertising performance [85] - Nexstar achieved a low-teens market share in political advertising, with record revenue of $491 million YTD, despite late-cycle spending shifts in some markets [88][91] Question: Potential for M&A in cable networks [124] - Nexstar has limited interest in expanding its cable network portfolio, preferring to focus on broadcast opportunities that align with its core business model [125] Question: Alternative uses of spectrum [100] - Nexstar is exploring ancillary uses of spectrum, such as navigation and data offloading, with potential contracts expected in 2024, though no significant announcements are imminent [101][103]

Revenue Growth - Net revenue increased by 20.7% to $1.4 billion for the three months ended September 30, 2024, and by 8.0% to $3.9 billion for the nine months ended September 30, 2024, compared to the same periods in 2023[120]. - Distribution revenue rose by $121 million, primarily due to the resolution of a previous dispute with an MVPD that caused Nexstar stations to be dark for 76 days in the prior year[130]. - Advertising revenue increased by $113 million, driven by a $135 million rise in political advertising due to the election year, partially offset by a $22 million decline in non-political advertising revenue[131]. - Revenues increased by 8.0% for the nine months ended September 30, 2024, compared to the same period in 2023, driven by higher distribution and political advertising revenues[138]. - Distribution revenue rose by $192 million, benefiting from contract renewals and the return of partner stations, which offset MVPD subscriber attrition[139]. - Political advertising revenue increased by $202 million, while non-political advertising revenue decreased by $81 million due to market softness[140]. Operating Performance - Operating income surged by 256.4% to $335 million for the three months ended September 30, 2024, compared to $94 million in the same period in 2023[127]. - For the nine months ended September 30, 2024, total revenue was $3,785 million, while total expenses were $2,836 million, resulting in an operating income of $949 million[169]. Shareholder Returns - The company returned approximately $232 million to stockholders through stock repurchases and dividends for the three months ended September 30, 2024[120]. - The Company repurchased 458,261 shares of common stock for $78 million from October 1, 2024, to November 7, 2024[154]. - A quarterly cash dividend of $1.69 per share was declared, payable on November 29, 2024[155]. Expenses and Liabilities - Total operating expenses decreased by 0.7% to $1.031 billion for the three months ended September 30, 2024, compared to $1.038 billion in the same period in 2023[127]. - Direct operating expenses increased by $60 million, primarily due to higher news programming expenses and stock-based compensation[141]. - Depreciation and amortization expense decreased by $143 million, with broadcast rights amortization dropping from $367 million in 2023 to $226 million in 2024[142]. - Total outstanding debt as of September 30, 2024, was $6.7 billion, representing 75.1% of the Company's combined capitalization[156]. - Total current liabilities decreased to $719 million from $818 million as of December 31, 2023[168]. - Total noncurrent liabilities decreased to $8,575 million from $8,775 million as of December 31, 2023[168]. Cash Flow and Assets - Net cash provided by operating activities increased by $22 million to $839 million for the nine months ended September 30, 2024[151]. - As of September 30, 2024, total current assets amounted to $1,237 million, a decrease from $1,253 million as of December 31, 2023[168]. - Total noncurrent assets were reported at $9,261 million, down from $9,504 million as of December 31, 2023[168]. Financial Compliance and Interest Rates - The Company was in compliance with its financial covenants as of September 30, 2024, and expects to maintain compliance for at least the next 12 months[163]. - An increase in the Secured Overnight Financing Rate (SOFR) by 100 basis points would increase annual interest expense by $40 million[175]. - The term loan borrowings under the senior secured credit facilities bear interest rates ranging from 6.35% to 7.35% as of September 30, 2024[174]. - The company has no financial instruments in place to hedge against changes in benchmark interest rates on its senior secured credit facilities as of September 30, 2024[175]. - The 5.625% Notes due July 2027 and 4.75% Notes due November 2028 are fixed-rate debt obligations and are not exposed to market interest rate changes[175]. Programming and Network Developments - The company expanded NewsNation news programming to 24 hours per day, 7 days per week starting June 1, 2024[120]. - The CW Network affiliation agreements were renewed with Gray Television, Inc. for 38 local television stations across the country[120]. - The company expects an increase in political advertising revenue in 2024 due to the election year, which typically boosts advertising revenue[125].