Core Viewpoint - DLT Entertainment has expanded the distribution of its 80's Sitcom Flashback FAST Channel through new deals with The CW and TCLtv+, enhancing its reach and accessibility to audiences [1][2][4]. Company Overview - DLT Entertainment is an award-winning international production and distribution company, founded in 1963, with a focus on adapting U.K. formats and producing critically acclaimed series for global audiences [11]. - The company launched the 80's Sitcom Flashback channel in May 2024, which has quickly grown to nearly double its distribution platforms within a year [5][11]. Industry Context - The 80's Sitcom Flashback FAST Channel is the first of its kind, dedicated to celebrating iconic sitcoms from the 1980s, featuring popular shows like "Three's Company," "The Ropers," and "Too Close For Comfort" [2][10]. - The CW, as a major broadcast network, reaches 100% of U.S. television households and has over 100 million downloads for its app, making it a significant platform for content distribution [7]. Distribution and Partnerships - The new distribution deals with The CW and TCLtv+ will allow the 80's Sitcom Flashback channel to be available on multiple streaming platforms, including Plex and Free Movies Plus [4][5]. - Amagi serves as the technical service partner for managing the distribution of the channel across FAST streaming platforms [8].

Core Insights - Gabelli Funds will host its 17th Annual Media & Entertainment Symposium on June 5, 2025, at the Harvard Club in New York City, focusing on industry dynamics, current trends, and business fundamentals [1] - The symposium will include discussions on Sports Investing, Media & Telecom Regulatory issues, and Advertising Panels, providing a platform for attendees to engage with leading companies in the media ecosystem [1][3] - A webcast option will be available for those unable to attend in person, ensuring broader access to the discussions and insights shared during the event [1] Presenting Companies - Notable companies participating in one-on-one meetings include Atlanta Braves Holdings, AMC Networks, Lionsgate Studios, Churchill Downs, Nexstar Media Group, Genius Sports, Reservoir Media, Gray Television, Rogers Communications, Live Nation Entertainment, Sinclair Inc., Sportradar Group, TEGNA Inc., TKO Group, and The E.W. Scripps Company [2] Panel Discussions - The symposium will feature several panel discussions, including "Sports Investing: Ways to Play," a TV Bureau of Advertising (TVB) Panel, and a Media & Telecom Regulatory Expert Session led by former FCC Commissioner Rob McDowell [3]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Nexstar Media Group, Inc. as of March 31, 2025, detailing assets, liabilities, operations, and cash flows, with total assets at **$11.41 billion** and net income of **$97 million** Condensed Consolidated Balance Sheet Highlights (As of March 31, 2025) | Metric | Amount (in millions) | | :--- | :--- | | **Total Assets** | **$11,414** | | Total Current Assets | $1,402 | | Goodwill | $2,924 | | FCC Licenses | $2,949 | | **Total Liabilities** | **$9,164** | | Total Current Liabilities | $805 | | Debt | $6,371 | | **Total Stockholders' Equity** | **$2,231** | Condensed Consolidated Statement of Operations (Three Months Ended March 31) | Metric | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net Revenue | $1,234 | $1,284 | | Income from Operations | $220 | $275 | | Net Income | $97 | $167 | | **Net Income Attributable to Nexstar** | **$108** | **$175** | | Diluted EPS | $3.37 | $5.16 | Condensed Consolidated Statement of Cash Flows (Three Months Ended March 31) | Metric | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $337 | $276 | | Net cash used in investing activities | ($61) | ($4) | | Net cash used in financing activities | ($167) | ($182) | | **Net increase in cash and cash equivalents** | **$109** | **$90** | [Note 1: Organization and Business Operations](index=8&type=section&id=Note%201%3A%20Organization%20and%20Business%20Operations) Nexstar is a leading diversified media company operating 201 television stations across 116 markets, with significant ownership in The CW Network and TV Food Network - The company's portfolio includes **201 full power television stations** in **116 markets**, affiliated with major networks like CBS, FOX, NBC, and ABC[16](index=16&type=chunk) - Nexstar holds a **77.7% ownership interest** in The CW Network, owns NewsNation, and has a **31.3% stake** in Television Food Network, G.P. (TV Food Network)[16](index=16&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=8&type=section&id=Note%202%3A%20Summary%20of%20Significant%20Accounting%20Policies) Details significant accounting policies, including VIE consolidation, management estimates, redeemable noncontrolling interests, and retrospective adoption of ASU 2023-07 for segment reporting - Nexstar consolidates VIEs where it is the primary beneficiary, resulting from local service agreements (TBA, LMA, SSA, JSA) and purchase options[21](index=21&type=chunk)[22](index=22&type=chunk) - The company adopted new segment reporting disclosure requirements (ASU 2023-07) on January 1, 2025, and applied the changes retrospectively[32](index=32&type=chunk) - Redeemable noncontrolling interests, related to The CW, are presented as mezzanine equity and accreted to their redemption value, impacting net income available to common stockholders[29](index=29&type=chunk)[30](index=30&type=chunk) [Note 3: Acquisition](index=13&type=section&id=Note%203%3A%20Acquisition) Details the January 31, 2025 acquisition of WBNX-TV assets in Cleveland, Ohio - The acquisition of WBNX-TV assets was for a cash purchase price of **$22 million**, with **$20 million** allocated to the FCC license[35](index=35&type=chunk) [Note 4: Intangible Assets and Goodwill](index=13&type=section&id=Note%204%3A%20Intangible%20Assets%20and%20Goodwill) Presents significant intangible assets and goodwill as of March 31, 2025, with no impairment events identified during the quarter Goodwill and Intangible Assets (in millions, as of March 31, 2025) | Asset | Net Value | | :--- | :--- | | Goodwill | $2,924 | | FCC Licenses (Indefinite-lived) | $2,949 | | Network Affiliation Agreements (Definite-lived) | $1,447 | | Other Intangible Assets (Definite-lived) | $331 | - Estimated amortization expense for definite-lived intangible assets for the remainder of 2025 is **$218 million**[37](index=37&type=chunk) [Note 5: Investments](index=14&type=section&id=Note%205%3A%20Investments) Details the 31.3% equity method investment in TV Food Network, with a book value of **$753 million** as of March 31, 2025, and plans for partnership renewal - The book value of the investment in TV Food Network decreased from **$857 million** at year-end 2024 to **$753 million** as of March 31, 2025[42](index=42&type=chunk) TV Food Network Financials (Three Months Ended March 31) | Metric | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net Revenue | $202 | $249 | | Net Income | $81 | $119 | | Net Income Attributable to Nexstar | $27 | $37 | - Nexstar received cash distributions of **$114 million** from TV Food Network during the first quarter of 2025[44](index=44&type=chunk) [Note 7: Debt](index=15&type=section&id=Note%207%3A%20Debt) Outlines the company's **$6.495 billion** long-term debt as of March 31, 2025, including term loans and notes, with **$31 million** repaid and covenant compliance maintained Long-Term Debt Composition (as of March 31, 2025) | Debt Instrument | Principal (in millions) | | :--- | :--- | | Nexstar Term Loan A & B | $3,449 | | Nexstar 5.625% & 4.75% Notes | $2,714 | | Mission Term Loan B & Revolving Loans | $351 | | **Total Outstanding Principal** | **$6,514** | - During Q1 2025, the company repaid **$31 million** of its term loans[47](index=47&type=chunk) - As of March 31, 2025, Nexstar had **$530 million** of unused revolving loan commitments available[48](index=48&type=chunk) [Note 10: Commitments and Contingencies](index=19&type=section&id=Note%2010%3A%20Commitments%20and%20Contingencies) Outlines significant commitments and legal contingencies, including debt guarantees, multi-district antitrust litigation, a major IRS tax dispute, and an FCC Notice of Apparent Liability - The company is a defendant in a multi-district antitrust litigation regarding local TV advertising, with a trial date scheduled for April 2026[63](index=63&type=chunk)[65](index=65&type=chunk) - A significant tax contingency exists related to the 2009 Chicago Cubs transaction; the IRS has appealed a Tax Court decision favorable to the company, with a ruling from the Court of Appeals expected in the first half of 2025[67](index=67&type=chunk)[70](index=70&type=chunk) - The FCC issued a Notice of Apparent Liability for Forfeiture (NAL) to Nexstar and Mission for alleged violations related to station WPIX, which the company is vigorously disputing[73](index=73&type=chunk) [Note 11: Equity](index=21&type=section&id=Note%2011%3A%20Equity) Details shareholder return activities in Q1 2025, including common stock repurchases and an increased quarterly dividend - In Q1 2025, Nexstar repurchased **441,164 shares** of its common stock for **$75 million**[74](index=74&type=chunk) - As of March 31, 2025, **$1.5 billion** remained available under the share repurchase authorization[74](index=74&type=chunk) - On January 29, 2025, the board of directors approved a **10% increase** in the quarterly cash dividend to **$1.86 per share**[76](index=76&type=chunk) [Note 15: Segment Data](index=23&type=section&id=Note%2015%3A%20Segment%20Data) Provides a breakdown of financial performance by reportable segments, with the Broadcast segment contributing the majority of revenue and all segment profit Segment Performance (Three Months Ended March 31, 2025, in millions) | Segment | Net Revenue | Segment Profit (Loss) | | :--- | :--- | :--- | | Reportable Broadcast | $1,169 | $429 | | Other Segments | $77 | ($42) | | Corporate (unallocated) | $2 | ($50) | Consolidated Revenue by Source (Three Months Ended March 31, 2025, in millions) | Revenue Source | Amount | | :--- | :--- | | Distribution | $762 | | Advertising | $460 | | Other | $12 | | **Total Net Revenue** | **$1,234** | [Note 16: Subsequent Events](index=25&type=section&id=Note%2016%3A%20Subsequent%20Events) Reports key corporate actions post-Q1 2025, including a dividend declaration and continued share repurchase activity - On May 5, 2025, the Board of Directors declared a quarterly cash dividend of **$1.86 per share**[94](index=94&type=chunk) - Between April 1, 2025, and May 8, 2025, the company repurchased an additional **209,915 shares** for **$32 million**[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 financial performance, highlighting a **3.9%** net revenue decrease due to lower political advertising, stable distribution revenue, and strong liquidity to manage its **$6.5 billion** debt [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net revenue decreased **3.9%** to **$1.234 billion** in Q1 2025, driven by a **$52 million** drop in advertising revenue, while distribution revenue remained stable Q1 2025 vs Q1 2024 Operating Results (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Distribution Revenue | $762 | $761 | 0.1% | | Advertising Revenue | $460 | $512 | (10.2)% | | **Net Revenue** | **$1,234** | **$1,284** | **(3.9)%** | | Income from Operations | $220 | $275 | (20.0)% | - The decrease in advertising revenue was due to a **$32 million** decline in political advertising (as 2025 is a non-election year) and a **$20 million** decrease in non-political revenue from market softness[112](index=112&type=chunk) - Interest expense decreased by **14.9%** to **$97 million**, primarily due to lower interest rates and reduced outstanding debt[115](index=115&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses liquidity and capital resources, reporting **$253 million** cash, **$543 million** available credit, increased operating cash flow, and compliance with financial covenants on **$6.495 billion** total debt - Net cash provided by operating activities increased by **$61 million** year-over-year, primarily due to the timing of working capital receipts and payments[123](index=123&type=chunk) - Total outstanding debt was **$6.495 billion** as of March 31, 2025, representing **74.3%** of the company's combined capitalization[128](index=128&type=chunk)[129](index=129&type=chunk) - The company is in compliance with its maximum consolidated first lien net leverage ratio covenant of **4.25 to 1.00**[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Identifies primary market risk as interest rate exposure on variable-rate long-term debt, with no hedging instruments in place as of March 31, 2025 - A hypothetical **100 basis point (1%)** increase in the SOFR benchmark rate would increase the company's annual interest expense by approximately **$38 million**[151](index=151&type=chunk) [Controls and Procedures](index=34&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chairman and CEO, along with the CFO, concluded that disclosure controls and procedures were effective as of the end of the reporting period[153](index=153&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, its internal controls[154](index=154&type=chunk) [PART II OTHER INFORMATION](index=34&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=34&type=section&id=ITEM%201.%20Legal%20Proceedings) Discusses legal proceedings arising from ordinary business, referring to Note 10 for detailed information on significant ongoing litigation not expected to have a material adverse effect - The company refers to Note 10, "Commitments and Contingencies," for a detailed discussion of ongoing litigation[156](index=156&type=chunk) [Risk Factors](index=34&type=section&id=ITEM%201A.%20Risk%20Factors) Reports no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors from the most recent Form 10-K were reported[157](index=157&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchase activity in Q1 2025, including **441,164 shares** repurchased for **$75 million**, with **$1.5 billion** remaining under authorization Share Repurchases (Q1 2025) | Period | Total Shares Purchased | Average Price Paid | Total Cost (millions) | | :--- | :--- | :--- | :--- | | Jan 3 - 31, 2025 | 92,159 | $155.81 | ~$14.4 | | Feb 3 - 7, 2025 | 20,423 | $153.75 | ~$3.1 | | Mar 4 - 28, 2025 | 328,582 | $174.98 | ~$57.5 | | **Total** | **441,164** | **$169.99** | **$75.0** | - As of March 31, 2025, the remaining amount available for share repurchases was **$1.5 billion**[158](index=158&type=chunk) [Other Information](index=35&type=section&id=ITEM%205.%20Other%20Information) Reports an amendment to Sean Compton's employment agreement regarding annual bonus criteria and confirms no Rule 10b5-1 trading arrangement changes by directors or officers - An amendment was made to Sean Compton's employment agreement, altering the criteria for his annual bonus to be based **30%** on company-wide financial metrics (Net Revenue or Adjusted EBITDA) and **70%** on discretionary targets specific to his business line[163](index=163&type=chunk) - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025[165](index=165&type=chunk)

Financial Data and Key Metrics Changes - Nexstar reported first quarter net revenues of $1.23 billion, a decline of 3.9% year-over-year, primarily due to reduced political advertising [18] - Adjusted EBITDA for the first quarter was $381 million, down $71 million from $452 million in the prior year [26] - Adjusted free cash flow for the first quarter was $348 million, compared to $389 million last year [29] Business Line Data and Key Metrics Changes - Distribution revenue reached a record $762 million, an increase of $1 million or 0.1% year-over-year, driven by retransmission rate growth and new CW affiliations [18] - Advertising revenue decreased to $460 million, down $52 million or 10.2% year-over-year, with a notable decline in political advertising [19] - CW's profitability declined by mid-teens millions in Q1 due to increased sports programming amortization, but improved profitability is expected in 2025 [22] Market Data and Key Metrics Changes - Approximately 63% of Nexstar's revenue in Q1 came from distribution and other revenue sources, while 37% was from non-political advertising [10] - Non-political advertising revenue is forecasted to decline in the mid-single digits year-over-year for Q2, similar to Q1 results [56] Company Strategy and Development Direction - The company is focused on deregulation as a key strategic priority, aiming to reform local broadcast ownership rules [6] - Nexstar plans to capitalize on deregulation through mergers and acquisitions (M&A), with a well-defined playbook for identifying attractive assets [9] - The company is also pursuing a transition to ATSC 3.0 standards to enhance high-speed data transmission and monetize spectrum [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of revenue streams, with over 60% derived from subscription-based sources [23] - The company remains optimistic about the advertising market, despite current softness, and expects to see improvements in the second half of the year [56] - Management highlighted the importance of upcoming distribution renewals and the 2026 midterm elections as significant opportunities [17] Other Important Information - Nexstar's outstanding debt as of March 31, 2025, was $6.5 billion, with a reduction of $28 million for the quarter [31] - The company returned $132 million to shareholders, including $57 million in dividends and $75 million in stock repurchases [31] Q&A Session Summary Question: What would the confirmation of the fifth commissioner mean for deregulation? - Management anticipates that an NPRM (Notice of Proposed Rulemaking) would likely be one of the first moves by the chairman to revisit ownership rules [38] Question: Are you comfortable beginning transactions under an NPRM? - Management indicated that it would depend on circumstances and the willingness of counterparties, but they are open to calculated risks [45][49] Question: When do you expect to see the impact of cord cutting on results? - Management has not seen a material change yet but remains cautiously optimistic about potential positive trends later in the year [54] Question: How does the company prioritize M&A opportunities? - Management stated that accretive acquisitions are the primary focus, with a preference for expanding the national footprint over adding additional stations in existing markets [60] Question: What is the outlook for the advertising market? - Management expects non-political advertising to decline in the mid-single digits for Q2, similar to Q1, but anticipates a pickup in the back half of the year [56]

Financial Data and Key Metrics Changes - Nexstar reported first quarter net revenues of $1.23 billion, a decline of 3.9% compared to the prior year, primarily due to a reduction in political advertising [17] - Adjusted EBITDA for the first quarter was $381 million, representing a decrease of $71 million from the previous year [25] - Adjusted free cash flow for the first quarter was $348 million, down from $389 million in the prior year [27] Business Line Data and Key Metrics Changes - Distribution revenue reached a record $762 million, an increase of $1 million or 0.1% year-over-year, driven by retransmission rate growth and new CW affiliations [17] - Advertising revenue decreased to $460 million, down $52 million or 10.2% year-over-year, with a notable decline in political advertising [18] - The CW's profitability declined by mid-teens millions in Q1 due to increased sports programming amortization, but improved profitability is expected in 2025 [21] Market Data and Key Metrics Changes - Approximately 63% of Nexstar's revenue in Q1 came from distribution and other revenue sources, while 37% was derived from non-political advertising [9] - Non-political advertising revenue is forecasted to decline in the mid-single digits year-over-year for Q2, similar to Q1 results [21] - The CW's primetime ratings have surpassed other broadcast networks 74 times across key demographics in Q1, a significant increase from the previous season [11] Company Strategy and Development Direction - The company is focused on deregulation as a key strategic priority, aiming to reform local broadcast ownership rules [5] - Nexstar plans to capitalize on deregulation through mergers and acquisitions, with a well-defined M&A playbook targeting attractive assets in strategic markets [6] - The company is also pursuing a transition to ATSC 3.0 standards to enhance high-speed data transmission and monetize ancillary spectrum uses [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of revenue streams, with 63% of revenues coming from subscription-based sources [9] - The company remains optimistic about the advertising market, noting growth in service-based advertising despite challenges in goods-based categories [19] - Management highlighted the importance of upcoming distribution renewals and the 2026 midterm elections as significant opportunities for revenue growth [22] Other Important Information - Nexstar's outstanding debt as of March 31, 2025, was $6.5 billion, a reduction of $28 million for the quarter [29] - The company returned $132 million to shareholders, including $57 million in dividends and $75 million in stock repurchases [29] - The first lien covenant ratio was 1.67 times, well below the covenant limit of 4.25 times [29] Q&A Session Summary Question: What would the confirmation of the fifth commissioner mean for deregulation? - Management expects an NPRM to be one of the first moves by the new chairman, which could lead to revisiting ownership rules [35] Question: Are you comfortable beginning transactions during the NPRM phase? - Management indicated that it would depend on circumstances and the willingness of counterparties, but they are open to calculated risks [41] Question: When do you expect to see the impact of cord-cutting moderation? - Management has not seen a material change yet but is cautiously optimistic about potential positive trends in the future [49] Question: How would you prioritize M&A opportunities? - The focus is on accretive acquisitions, with a preference for expanding the national footprint over adding additional stations in existing markets [58] Question: What is the outlook on the advertising market? - Management noted that while non-political advertising is expected to decline in the near term, they anticipate a pickup in the second half of the year [54] Question: How does the DOJ view potential consolidation? - Management believes there is a consensus that current rules are indefensible and does not see DOJ as an impediment to in-market opportunities [82]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Nexstar reported Q1 2025 net revenue of $1.23 billion, a 3.9% decrease, with record distribution revenue and $348 million Adjusted Free Cash Flow 2025 First Quarter Financial Summary | ($ in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Distribution** | $762 | $761 | 0.1% | | **Advertising** | $460 | $512 | (10.2)% | | **Other** | $12 | $11 | 9.1% | | **Net Revenue** | $1,234 | $1,284 | (3.9)% | | **Net Income** | $97 | $167 | (41.9)% | | **Adjusted EBITDA** | $381 | $452 | (15.7)% | | **Net Cash Provided by Operating Activities** | $337 | $276 | 22.1% | | **Adjusted Free Cash Flow** | $348 | $389 | (10.5)% | - CEO Perry A. Sook stated the company's focus for the remainder of 2025 includes renewing distribution contracts representing about **60%** of its subscriber base, continuing The CW's path to profitability, preparing for the 2026 political cycle, and pursuing deregulation[1](index=1&type=chunk) [Company and Business Highlights](index=2&type=section&id=Company%20and%20Business%20Highlights) Net revenue declined 3.9% to $1.23 billion due to lower advertising, while operational highlights include a 10% dividend increase and strategic acquisitions [Financial Results](index=2&type=section&id=Financial%20Results) - First quarter net revenue decreased **3.9% YoY** to **$1.23 billion**, primarily due to a **$32 million** decrease in political advertising revenue[6](index=6&type=chunk) - Distribution revenue reached a record for the first quarter at **$762 million**, a slight increase of **0.1% YoY**, driven by rate escalators and vMVPD growth, which offset MVPD subscriber attrition[6](index=6&type=chunk) - Net income decreased by **$70 million** to **$97 million**, primarily due to lower revenue, increased amortization of broadcast rights for The CW sports, and a Q1 2024 non-recurring **$40 million** gain from the sale of its BMI interest[6](index=6&type=chunk) - Adjusted EBITDA decreased **15.7%** to **$381 million**, reflecting lower revenue, reduced income from the TV Food Network equity investment, and higher amortization of broadcast rights at The CW[10](index=10&type=chunk) [Operational Highlights & Strategic Initiatives](index=2&type=section&id=Operational%20Highlights%20%26%20Strategic%20Initiatives) - The quarterly cash dividend was raised by **10%** to **$1.86 per share**, marking the twelfth consecutive annual dividend increase[6](index=6&type=chunk) - Viewership for key sports on The CW grew significantly, with NASCAR Xfinity Series and WWE NXT average viewership both increasing **19% year-over-year** in their respective periods[6](index=6&type=chunk) - Acquired WBNX-TV in Cleveland, Ohio, in January 2025, creating a new duopoly in the nation's 19th largest television market. WBNX will become a CW affiliate on September 1, 2025[6](index=6&type=chunk) - Expanded sports programming by adding Grand Slam Track, AVP volleyball, and the Men's HBCU All-Star Basketball Game to The CW, and partnering with the Texas Rangers for regional broadcasts[6](index=6&type=chunk) [Capital Allocation and Shareholder Returns](index=3&type=section&id=Capital%20Allocation%20and%20Shareholder%20Returns) Nexstar deployed capital in Q1 2025 through $31 million debt repayment, $22 million acquisition, and $132 million returned to shareholders Q1 2025 Capital Allocation | ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Cash Used For** | | | | Debt repayment | $31 | $30 | | Acquisitions | $22 | - | | **Stockholder return** | **$132** | **$168** | | Common stock dividends | $57 | $57 | | Stock repurchases | $75 | $111 | - In Q1 2025, the company repurchased **441,164 shares** of its common stock at an average price of approximately **$169.99 per share** for a total of **$75 million**[8](index=8&type=chunk) [Financial Position](index=4&type=section&id=Financial%20Position) As of March 31, 2025, Nexstar maintained a strong financial position with $6.5 billion total debt and healthy leverage ratios Debt and Cash Summary | ($ in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash on Hand** | $253 | $144 | | **Total Debt** | $6,495 | $6,523 | - As of March 31, 2025, the company's first lien net leverage ratio was **1.67x**, compared to a covenant of **4.25x**, and its total net leverage ratio was **2.93x**[14](index=14&type=chunk) - Leverage ratios are calculated in accordance with credit agreements and exclude The CW Network's operations and its **$20 million** cash balance[14](index=14&type=chunk) [Appendix](index=5&type=section&id=Appendix) This section provides supplementary information, including forward-looking statements, non-GAAP financial measure definitions, and detailed financial statements [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net revenue** | $1,234 | $1,284 | | **Income from operations** | $220 | $275 | | **Income before income taxes** | $138 | $228 | | **Net income** | $97 | $167 | | **Net income attributable to Nexstar** | $108 | $175 | | **Diluted EPS** | $3.37 | $5.16 | Condensed Consolidated Statements of Cash Flows (Q1 2025 vs Q1 2024) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $337 | $276 | | **Net cash used in investing activities** | ($61) | ($4) | | **Net cash used in financing activities** | ($167) | ($182) | | **Net increase in cash and cash equivalents** | $109 | $90 | | **Cash and cash equivalents at end of period** | $253 | $237 | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Reconciliation of Net Income to Adjusted EBITDA | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net income** | $97 | $167 | | **Adjustments** | $284 | $285 | | **Adjusted EBITDA** | $381 | $452 | Reconciliation to Free Cash Flow and Adjusted Free Cash Flow | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $337 | $276 | | Capital expenditures | ($35) | ($44) | | **Free Cash Flow** | **$302** | **$232** | | Adjustments | $46 | $157 | | **Adjusted Free Cash Flow** | **$348** | **$389** | [Definitions and Disclosures](index=5&type=section&id=Definitions%20and%20Disclosures) - The report contains forward-looking statements subject to risks and uncertainties, protected under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[15](index=15&type=chunk) - Adjusted EBITDA is defined as net income adjusted for items including one-time expenses, stock-based compensation, D&A, interest, taxes, and other specified items. It is considered an indicator of operating performance[17](index=17&type=chunk) - Adjusted Free Cash Flow is defined as Free Cash Flow (Net Cash from Operations minus capex) adjusted for items like one-time expenses, changes in operating assets and liabilities, and other specified cash items. It is considered an indicator of liquidity[19](index=19&type=chunk)

An Uplifting Hour-Long Special Highlights Heroic Acts and the Power of Unity in the Face of Adversity LOS ANGELES, April 22, 2025 /PRNewswire/ -- Lifelines of Hope is an uplifting hour-long special that illuminates acts of bravery and unshakable community spirit—drawn from recent headlines that prove how the darkest moments can inspire the brightest responses. The program will air on May 1st, 2025 at 9.00pm. Throughout Lifelines of Hope, viewers will hear from Samuel L. Jackson, Jennifer Garner, Billie Eili ...

Core Viewpoint - The author emphasizes a preference for the terms "contributor" or "author" over "analyst," indicating a shift from professional analysis to sharing personal views on investment opportunities and discussions [1][3]. Group 1: Background and Experience - The author has over 30 years of personal investment experience in the stock market and has worked in various roles within the financial industry, including as a buy-side analyst and fund co-manager [1]. - Experience includes working at a leading mutual fund company focusing on long-only stock market investments, particularly in financial companies, with a strong emphasis on fundamental analysis and market news [1]. - The author has also worked at a multi-billion dollar hedge fund, gaining insights into capital structures, arbitrage, and M&A situations [1]. - A transition to a financial regulatory authority provided the author with insights into international regulation and corporate governance, enhancing the ability to analyze companies [1]. Group 2: Insights and Analysis - Extensive interactions with corporate executives through various events have provided the author with unique insights into company operations and strategies [1]. - The author highlights the importance of understanding the context behind corporate communications, suggesting that messages are tailored for specific audiences and should be interpreted cautiously [1]. Group 3: Current Position and Intent - The author aims to share independent views and engage in discussions with the public, leveraging past experiences while adhering to compliance regulations by focusing on publicly available information [1]. - The author clarifies that the content shared is not intended as investment advice and encourages readers to conduct their own research [3][4].

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 ...