Nexstar Broadcasting Group Reports Adjustments to 2008 Second Quarter Results
IRVING, Texas--(BUSINESS WIRE)--Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) announced today that it identified adjustments to its 2008 second quarter and six month financial results for the periods ended June 30, 2008, which were announced on August 5. The adjustments to the 2008 second quarter and year to date results include a decrease of net revenue by one hundred twenty-nine thousand dollars, an increase in selling, general, and administrative expenses of one hundred thousand dollars and a decrease in depreciation expense of two hundred twenty- six thousand dollars, which had the net effect of reducing income from operations, net income and free cash flow by three thousand dollars and broadcast cash flow and EBITDA by two hundred twenty-nine thousand dollars. The schedules below include the originally reported figures, the revised figures and the difference between the originally reported and corrected results. Nexstar Broadcasting Group will file its Form 10-Q for the period ended June 30, 2008 on August 12, 2008. The Company’s total leverage ratio at June 30, 2008, giving effect to the remaining indebtedness on its 11.375% senior discount notes due 2013 on which interest payments become cash pay on October 1, 2008, was 6.69x. All other data as disclosed in the August 5 release remains unchanged including information on the Company’s debt and summary 2008 third quarter outlook.
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Nexstar Broadcasting Group, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) |
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| Three Months Ended June 30, 2008 | |||||||||||||
| (unaudited) | |||||||||||||
| As reported | Revised | Difference | |||||||||||
| Net revenue | $ | 70,747 | $ | 70,618 | $ | (129 | ) | ||||||
| Operating expenses: | |||||||||||||
| Station direct operating expenses, net of trade (exclusive of depreciation and amortization shown separately below) | 17,583 | 17,583 | - | ||||||||||
| Selling, general, and administrative expenses (exclusive of depreciation and amortization shown separately below) | 18,151 | 18,251 | 100 | ||||||||||
| Non-cash contract termination fee | - | - | - | ||||||||||
| Loss (gain) on asset exchange | (2,742 | ) | (2,742 | ) | - | ||||||||
| Loss (gain) on asset disposal, net | (205 | ) | (205 | ) | - | ||||||||
| Trade and barter expense | 4,449 | 4,449 | - | ||||||||||
| Corporate expenses | 3,588 | 3,588 | - | ||||||||||
| Amortization of broadcast rights, excluding barter | 2,057 | 2,057 | - | ||||||||||
| Amortization of intangible assets | 6,383 | 6,383 | - | ||||||||||
| Depreciation | 5,314 | 5,088 | (226 | ) | |||||||||
| Total operating expenses | 54,578 | 54,452 | (126 | ) | |||||||||
| Income from operations | 16,169 | 16,166 | (3 | ) | |||||||||
| Interest expense, including amortization of debt financing costs | (10,806 | ) | (10,806 | ) | - | ||||||||
| Interest / other income | 151 | 151 | - | ||||||||||
| Income (loss) before income taxes | 5,514 | 5,511 | (3 | ) | |||||||||
| Income tax expense | (1,634 | ) | (1,634 | ) | - | ||||||||
| Net income (loss) | $ | 3,880 | $ | 3,877 | $ | (3 | ) | ||||||
| Basic and diluted net income (loss) per share | $ | 0.14 | $ | 0.14 | - | ||||||||
| Basic and diluted weighted average number of shares outstanding | 28,422 | 28,422 | - | ||||||||||
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Nexstar Broadcasting Group, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) |
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| Six Months Ended June 30, 2008 | ||||||||||||
| (unaudited) | ||||||||||||
| As reported | Revised | Difference | ||||||||||
| Net revenue | $ | 134,459 | $ | 134,330 | $ | (129 | ) | |||||
| Operating expenses: | ||||||||||||
| Station direct operating expenses, net of trade (exclusive of depreciation and amortization shown separately below) | 35,659 | 35,659 | - | |||||||||
| Selling, general, and administrative expenses (exclusive of depreciation and amortization shown separately below) | 35,813 | 35,913 | 100 | |||||||||
| Non-cash contract termination fee | 7,167 | 7,167 | - | |||||||||
| Loss (gain) on asset exchange | (3,592 | ) | (3,592 | ) | - | |||||||
| Loss (gain) on asset disposal, net | (170 | ) | (170 | ) | - | |||||||
| Trade and barter expense | 8,958 | 8,958 | - | |||||||||
| Corporate expenses | 6,811 | 6,811 | - | |||||||||
| Amortization of broadcast rights, excluding barter | 4,303 | 4,303 | - | |||||||||
| Amortization of intangible assets | 12,755 | 12,755 | - | |||||||||
| Depreciation | 10,647 | 10,421 | (226 | ) | ||||||||
| Total operating expenses | 118,351 | 118,225 | (126 | ) | ||||||||
| Income from operations | 16,108 | 16,105 | (3 | ) | ||||||||
| Interest expense, including amortization of debt financing costs | (24,795 | ) | (24,795 | ) | - | |||||||
| Interest / other income | 552 | 552 | - | |||||||||
| Income (loss) before income taxes | (8,135 | ) | (8,138 | ) | (3 | ) | ||||||
| Income tax expense | (3,313 | ) | (3,313 | ) | - | |||||||
| Net income (loss) | $ | (11,448 | ) | $ | (11,451 | ) | $ | (3 | ) | |||
| Basic and diluted net income (loss) per share | $ | (0.40 | ) | $ | (0.40 | ) | - | |||||
| Basic and diluted weighted average number of shares outstanding | 28,420 | 28,420 | - | |||||||||
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Nexstar Broadcasting Group, Inc. Reconciliation Between Actual Consolidated Statements of Operations and Broadcast Cash Flow and EBITDA (Non-GAAP Measures) (in thousands) |
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| Three Months Ended June 30, 2008 | ||||||||||||
| (unaudited) | ||||||||||||
| As reported | Revised | Difference | ||||||||||
| Income from operations | $ | 16,169 | $ | 16,166 | $ | (3 | ) | |||||
| Add: | ||||||||||||
| Depreciation | 5,314 | 5,088 | (226 | ) | ||||||||
| Amortization of intangible assets | 6,383 | 6,383 | - | |||||||||
| Amortization of broadcast rights, excluding barter |
2,057 |
2,057 |
- |
|||||||||
| Non-cash contract termination fee | - | - | - | |||||||||
| Loss (gain) on asset exchange | (2,742 | ) | (2,742 | ) | - | |||||||
| Loss (gain) on asset disposal, net | (205 | ) | (205 | ) | - | |||||||
| Corporate expenses | 3,588 | 3,588 | - | |||||||||
| Less: | ||||||||||||
| Payments for broadcast rights | 1,987 | 1,987 | - | |||||||||
| Broadcast cash flow | $ | 28,577 | $ | 28,348 | $ | (229 | ) | |||||
| Less: | ||||||||||||
| Corporate expenses | 3,588 | 3,588 | - | |||||||||
| EBITDA | $ | 24,989 | $ | 24,760 | $ | (229 | ) | |||||
| Six Months Ended June 30, 2008 | ||||||||||||
| (unaudited) | ||||||||||||
| As reported | Revised | Difference | ||||||||||
| Income from operations | $ | 16,108 | $ | 16,105 | $ | (3 | ) | |||||
| Add: | ||||||||||||
| Depreciation | 10,647 | 10,421 | (226 | ) | ||||||||
| Amortization of intangible assets | 12,755 | 12,755 | - | |||||||||
| Amortization of broadcast rights, excluding barter |
4,303 |
4,303 |
- |
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| Non-cash contract termination fee | 7,167 | 7,167 | - | |||||||||
| Loss (gain) on asset exchange | (3,592 | ) | (3,592 | ) | - | |||||||
| Loss (gain) on asset disposal, net | (170 | ) | (170 | ) | - | |||||||
| Corporate expenses | 6,811 | 6,811 | - | |||||||||
| Less: | ||||||||||||
| Payments for broadcast rights | 4,128 | 4,128 | - | |||||||||
| Broadcast cash flow | $ | 49,901 | $ | 49,672 | $ | (229 | ) | |||||
| Less: | ||||||||||||
| Corporate expenses | 6,811 | 6,811 | - | |||||||||
| EBITDA | $ | 43,090 | $ | 42,861 | $ | (229 | ) | |||||
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Nexstar Broadcasting Group, Inc. Reconciliation Between Actual Consolidated Statements of Operations and Free Cash Flow (Non-GAAP Measure) (in thousands) |
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| Three Months Ended June 30, 2008 | ||||||||||||
| (unaudited) | ||||||||||||
| As reported | Revised | Difference | ||||||||||
| Income from operations | $ | 16,169 | $ | 16,166 | $ | (3 | ) | |||||
| Add: | ||||||||||||
| Depreciation | 5,314 | 5,088 | (226 | ) | ||||||||
| Amortization of intangible assets | 6,383 | 6,383 | - | |||||||||
| Amortization of broadcast rights, excluding barter | 2,057 | 2,057 | - | |||||||||
| Non-cash contract termination fee | - | - | - | |||||||||
| Loss (gain) on asset exchange | (2,742 | ) | (2,742 | ) | - | |||||||
| Loss (gain) on asset disposal, net | (205 | ) | (205 | ) | - | |||||||
| Non-cash stock option expense | 644 | 644 | - | |||||||||
| Less: | ||||||||||||
| Payments for broadcast rights | 1,987 | 1,987 | - | |||||||||
| Cash interest expense | 10,475 | 10,475 | - | |||||||||
| Capital expenditures | 3,882 | 3,656 | (226 | ) | ||||||||
| Cash income taxes, net of refunds | 134 | 134 | - | |||||||||
| Free Cash Flow | $ | 11,142 | $ | 11,139 | $ | (3 | ) | |||||
| Six Months Ended June 30, 2008 | ||||||||||||
| (unaudited) | ||||||||||||
| As reported | Revised | Difference | ||||||||||
| Income from operations | $ | 16,108 | $ | 16,105 | $ | (3 | ) | |||||
| Add: | ||||||||||||
| Depreciation | 10,647 | 10,421 | (226 | ) | ||||||||
| Amortization of intangible assets | 12,755 | 12,755 | - | |||||||||
| Amortization of broadcast rights, excluding barter | 4,303 | 4,303 | - | |||||||||
| Non-cash contract termination fee | 7,167 | 7,167 | - | |||||||||
| Loss (gain) on asset exchange | (3,592 | ) | (3,592 | ) | - | |||||||
| Loss (gain) on asset disposal, net | (170 | ) | (170 | ) | - | |||||||
| Non-cash stock option expense | 1,291 | 1,291 | - | |||||||||
| Less: | ||||||||||||
| Payments for broadcast rights | 4,128 | 4,128 | ||||||||||