Nexstar Media(NXST) - 2024 Q3 - Quarterly Report

Revenue Growth - Net revenue increased by 20.7% to $1.4 billion for the three months ended September 30, 2024, and by 8.0$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$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$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].