NXST - Earnings call transcript Q4 2020 | Nexstar Media Group, Inc.

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Operator

[Call starts abruptly] …which is made by management during today's conference call other than statements of historical fact may be deemed forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995. Nexstar cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those reflected by the forward-looking statements made during this call.

For additional details on these risks and uncertainties, please see Nexstar's Annual Report on Form 10-K for the year ended December 31, 2019, and Nexstar's subsequent filings with the Securities and Exchange Commission. Nexstar undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. With that it's now my pleasure to turn the conference over to your host, Nexstar Founder, Chairman, and CEO, Perry Sook. ahead. go please Perry,

Perry Sook

surpassed and to everyone. results, review and all revenue, Joseph, for including you joining profitability, again that flow us Nexstar's cash expectations. good you, Thank morning, all net consensus Thank record QX

'XX, Operating operating, up Nexstar, throughout time resiliency As is Tribune results us most and to financial, XX,XXX and return. generate share our just for free our this as It's of very moment. in they America course items scale, the what I'm return XXXX, 'XX each billion. across on accomplished the our Simply we've average shareholder year, free acquisition, achieved President, Nation to worked Media and credit initiated commitment excellence focus active outstanding in that as free talented We united drive a flow important me CFO significant sets been our those adaptability continued put, the transaction by with proud on to of the Officer, is teams, an despite always, a morning digital outstanding Tribune reflected for deliver up than beyond proud of of over call dedicated the headwinds localism, throughout cycle forma to our touch value an cash providing productive I'm all more goals properties, XXXX to and extraordinarily Nexstar the Tom and believe morning. for Today, the local and growth. team by cash Carter, Chief to and the time flow a rose and managed headwinds. report XXXX the they XXXX Nexstar pandemic QX of further since tirelessly integrity, capital the during in presented for the Nexstar's and operational $X.XX created this cash I'll on or employees, reduce innovation, common for of total our dynamically address flow, growth members we the challenges This and exceeded the is well and of our essential pandemic. operations in Nexstar to growth. per more comprised pro of the by our unprecedented of debt and had services We the annual on difficult leverage country. the guidance, communities while late closing we despite of XXXX XXXX our at

QXand record ad full XXXX. leveraging of strong QXnet revenue share key and flow of involvement and content as well to growing XXX% focused markets, as XX revenue our year month value financial in year the coming for in our over and at the year Our local and revenue our income high generate history metrics at rates strategies growth. our ongoing operating teens prior both the another mark net of or periods performance to record free from operating levels in the with highest digit all company's more cash of double and results the increase in distribution The on highlight community revenue XX% develop in rise X

in record drove combined which operating of substantially leverage also our Our markets, model business QXadjusted with ability EBITDA free and flow. spending our strong levels our to capture the historic in guidance exceeded cash election XXXX

XXX% when flow of the share, and XXXX cycle. For representing billion to future adjusted year, political benefit operations had over free or managing we flow enabled cash for the per about full current our growth on cash levels enterprise-wide $X.X the the of approximately us generate focus approximately last $XX

when year, by evidenced as presidential per election $X in generated share. Nexstar Our consistent growth, cash rapid and of approximately comparisons flow free XXXX the

over paying and million So returning in every the shareholders outstanding to in count repurchases to brought of $X acquisitions, revenue debt XXX%. approximately approximately share about grown also make year form and our and the as XXXX, in dollar billion to approximately $XXX we down by in to our dividends, we've platforms accretive that reduced XX% while we us metric line of net the invest -- allowing million In complementary important free four share return XX.X end shares. years, cash flow

tripled essentially reducing XXXX over million we while our capital count XXXX, in X.X So return by the share of shares.

our as for reduction. scale and and for of promise same of capital, leverage returns our communities new by further additional content have shareholders billion 'XX as and while the current where premium the flexibility free we operate our and time, cash guide for to upheld repurchase and local on nation's clear have campaigns. structure up growth the our the combination providing years strong already per flow continued focusing at we use share we to to ability, built strategies it's leverage grow cycle. communities, our $X year shareholder share the XX% the that In our media a on company free we value shares, almost value. to well growing to news political through founded local our the by With of local enhancement cash of focus we programming create the reduced, our dividend commitment, our two have increase, Throughout and inform and in to flow during 'XX, authorization recent we opportunities capital support since Nexstar, viewers, leading consistently prudent advertising our expanding At history, an count advertisers, for XX improvements, entertain our

reduction increased leverage these model. flow Looking return a reduction now record expenses respectively. we XX.X% our with QXnet to ended $XXX.X XXX.X% repurchases, made quarter, by to share before Throughout total billion, exceeded and million which in cash capital year another our quarter, of $X we exceeded million with shares $XXX.X leverage revenue quarterly and net Street's lowered expectations. metric, XXXX during allocated strong times QXadjusted Reflecting the flow and as -- the dividends quarter. we growing cash at our one-time significant X.X marking we and net generated progress XX.X% debt with the reflecting metrics also as EBITDA, at back the free through XXX,XXX bought Nexstar full initiatives, and debt

national reduction Turning back and local October season from resulted in while demand early November. election inventory advertisers for in campaigns to advertisers available QX, in robust and issue and this a

rise revenue categories, to execution XX.X% resulted of benefited million, in of initiatives the offset million revenue scale, $XXX.X continue revenue, local of $XXX.X since levels we Notwithstanding the comparable rise QX levels of year quarter significant as the with X.X% Street on effects inventory of revenue significant million, television the continue which quarterly In QXtotal advertising levels month-over-month generate and by $XXX.X in marks the improvements strongest revenue, in QX our inventory key generate across television months third year-over-year were new advertising $XX.X QX of of quarter which over -- a the pandemic million. time, television sources advertising exceeded revenue full a million, of television political sorry, in of of sales the XX% consistent pandemic, $XXX.X sequential the $XXX.X At levels both recovery period. ad revenue sequential over revenue our same was XXXX a to sales business the of political increase to to basis. in the a and year and of was ad generated Nexstar's allocation Nexstar industry-leading of spending to third and new core resulted revenue guidance. political allocation to advertising We new million million total, increase diversified solid $XXX.X and million, $XXX.X teams our over and which core rising which December, from QX I'm political. the November XXX.X advertising substantially QX began. the includes a which

Looking core pacing see continue to data. strong at XXXX, and QX we

complemented footprint, the we ad grew where XX% our encouraged our quarter in highly by service, rebound sports auto insurance, largest are retirement spending where The and grocery revenue by nursing QX, stores, goods, packaged resumption a in stores auto and the resurgence home drug homes. We gaming, notably across category in spending advertising repair, auto, category, is in by finished. station third betting, most over home in ad

we our XXXX, year-over-year ongoing margins training distribution is Nexstar to our XXXX that to to the source ongoing capture we net the that this fee continued continue currently of rose trends consistent our in of renewed our our successful million, sales and during of in impact through our revenue in Distribution as our structure proven performance-based very I satellite renewals, with both in again cumulatively. across consent the remain growth XXXX retransmission economics, as and partially of and subscribers revenue negotiations contractual strategies, and XXXX, one-time XXXX solid said our year-end digital. in agreements, agreements have growth business all our base platform distribution XX.X% in subscriber highly distribution of new XXXX. approximately representing retrans agreement expectations, the in addition $XXX visible reflecting a in offset XXXX distribution renewal base XX% our of approximately incentive broadcast in with and have ad distribution representing Our revenue has and multiyear renewal ability from XXXX guidance. effective XXXX, project to certain fourth into XX% XX% quarter. our With Subscriber by provider our distribution outages spend visibility

NBC long XXXX. completed term second our of half and were the the also We which have affiliation bulk -- new CBS, of agreements, under in contracts with Fox, which network were up

This a help the will fact XX Food contracted seasonality Network ease the smallest in combined our historical our with being QX, face through we quarter that XX% cash the media receive distribution four the of XXXX. of TV QX will are big our from As December with companies affiliations year. XX% of typically that in the ownership to result,

without to our However, ad of you from of QX substantial pullback XXXX and subsidiaries the Inc. Nexstar produced de-emphasizing high we before and the March. comp over umbrella, beginning total declined broadcasting together be margins. year substantially that focus, Reflecting comparable the the began at toughest digital revenue that that advertiser the up under year that digital digital XXXX political volumes will we very operating in last strong prior revenue are we profitability the and will remind business benefited QX digital lines started this XXXX of XX.X%, was period. now as further with

Following the its has of digital to first Tribune operations transitioned the and past audience Nexstar and content year, development. focus Media acquisition over

including metrics, record month local news reaching XX and monthly year million, in ranking one Nexstar's to highs X.X those growth result, over across key the every properties As multiplatform statistics performance views of for audience views and a for number are the digital average all delivered XXXX in and engagement of according XX.X of users of in X.X Comscore. and total excess total digital billion billion, minutes year exceeding total page over all-time video million,

we the broadcasting and our streamlined result the the of of expense alignment mid-X as the completed expect reporting structures. XXXX, subsidiaries, digital in During result, strategic fourth and a efficiencies as we operational quarter, figure and a savings and synergies,

in We increased process the monetization digital strategy XXX integrated during are of content touchpoints XXXX. leveraging drive across our now to Nexstar's

our we multiple of transit national first significant across We our the the quarter, new from maximize laser-focused and completed content content, properties, are the under the significant leading product by digital new value usage platforms. accelerating content consumer with fourth transaction reach significant of we our and our portfolio, In first recommendations as multiple leveraging digital profitability the consumer presenting reach BestReviews, content, revenue the company. platforms. BestReviews digital consumer with and national accretive channels diversifies company digital media across usage the strategy a our acquisition while on

we during with this our savings, to and our mentioned significant operating well-being a we continue service our In XXXX financial $XX health manage last of responded jobs liquidity could presented that extract our summary, position. by and delivering investments cutting while valued prudently adapt of our incomes historic operations, the to year. levels differentiated great speed to and We performance employees, challenges for was intensity the diligently savings political of expense cost we pandemic to continued corporate I at and structure the equity foundation and ad financial communities time. As pandemic, which the resulted and income a challenges initiatives, the uninterrupted growth, strong year call, teams, so preserve and and of implemented Nexstar to approximating continue cost and the significant the pandemic, of thanks record local structure of our million assets, growth budgeted from the our preserving sales the despite of business critical and our in enabled levels outset spending. range digital cost well ensuring to The us continues our distribution perform and broadcast from exceptionally for programs, presented Nexstar. to to and by revenue robust content despite while

activity free provide flow the and of value structure Our cash highlights management us balance fact and creation capital both that sheet with flexibility initiatives. allocation cost our financial to supporting continue shareholder our the the active

for turn result, sheet. our over long financial our strategies line, variable Tom? fixed let call and all With communities, the control update. term our top a and highly maintaining Tom serving As Nexstar building our that of me and of to in now of remains confident optimizing said, the balance review costs, close our

Thomas Carter

and morning, good everyone. Perry, Thanks,

a sheet morning's three period company's months As XX/XX/XX included the for Tribune full also outlined results operations month the the is in XXXX. XX% television results TV quarter acquired and guidance. some after income transaction, expenses million, I'll core QX ending the Digital of All revenue in and I'll to than stake Total QX the actual distributions and reflect quarter the increase income increased XX.X% which and statement to respective Media XX.X% data, in QX advertising a an transaction increased statement structure our to in political review the and Nexstar's impact WGN Nexstar's full XXXX the full on incurred actual advertising points reflecting the $XXX balance update million, net equity stations, September of XXXX. billion. on revenue. one-time Broadcasting net of more the and provide and revenue XX, we record three in XX/XX/XXXX fold $X.XX transaction acquired in acquired quarters $XXX $XX now and under and XXXX capital of seven of of fee in decline legacy America, in core this for $XXX reflect revenue relating $XX.X from outages Nexstar than A advertising XX.X% which by Distribution press Tribune to X.X% revenue contribution growth which TV -- ownership ending more impact a Digital MVPD. de-emphasis with comparable under of offset advertising margins. in our carriage release, million one-time $XXX Network loss statement increased substantial XX.X% included or the higher negotiations in to business volumes is partially declined other revenue to produced Food million results investments distribution offset Tribune flow that to million investments. on million. investments an without one $XX with revenues million to of from the income due equity of lines and cash from fee

substantially As a up over period. digital result, profitability was prior the

was political to important from advertising think advertising obviously As before, the affected and by core I Perry was October mid-teens down it's perspective, mentioned note a amount.

result The operating were as $XX trade velocity we a compared on basis cutting to million, approximately COVID-XX to mentioned, flat in about good compared the have on the the strides revenue direct good year. into combined essentially To a entering expenses, approximately late for first quarter, of expense offset savings -- anticipated initiatives. QX the $XXX levels. on made prior feel that operating of was and implemented cost I'm range business. year, corporate and originally been in core resulted giving year commercial Nexstar -- December expense net budgeted exit advertising to XXXX However, this million flat the XXXX. advertising us prior really in Perry impact basically to COVID sorry that of And November XXXX a recapture the

pro approximately pandemic While QX associated $XXX to expense growth response year in compensation related the excluding record quarter. our station stock-based Further and in million the political XX.X% million, forma revenue. corporate station the activities associated $XX.X SG&A expenses X.X% of evidencing fixed were the inclusive expenses implementation to the previously reflecting reduction $XX program control, to ad for synergies million, sales down prior the expenses expenses active expense was transaction. with in over of Tribune expense due mentioned broadcast to Same with the declined

there for $X.X FCC CapEx approximately net were were and repack $X.X QX. million totaled the actually taxes million cash $XXX million transactions the and and $XX year. million of approximately income quarter, quarter quarter. expenses. cash of $XX.X of the reimbursements which the the from higher in Ongoing $XXX the QX operating During million one-time approximately for million the costs, CapEx were approximately reflecting million received $X.X $XXX than reforecasted during million year, Spectrum totaled for

expected. from With in flow XX.X% million, of political Network, reported TV $XX.X strong in adjusted in in before record November month-over-month $XXX our were of model, revenue As than spectrum which $XX to later activities wind $XXX reimbursed million fully Cash $XX.X million for million repack, being expense XXXX. down digit the borrowing growth expenses and interest expense down cash distributions spending, approximately million million, the distribution interest in expectations reflect core revenue amounted due fourth in and as of year December, here to margin XXXX. and levels first million free operating in Food adjusted higher $XXX anticipate to all the of we and related transaction lien particularly originally total last EBITDA double Nexstar approximately QX a levels. rates strong all consensus EBITDA and business decrease was continued lower reminder, sequential from CapEx interest QX improvements advertising compared those lower $XXX exceeded quarter. leverage to with

before generated expenses. EBITDA approximately flow approximately onetime in all the transaction free of revenue, $X.X of billion $X and full cash adjusted For billion year, net billion, $X.X Nexstar

team's the expansion our and highlights significant by value the Tribune pandemic the the year-over-year success growth in Our challenges tremendous acquisition. margin of deliver presented to navigating Media on

environment, cash operate to our year off pre-pandemic flow continue dynamic to a XXXX was we a free expectations solid While full line start. with XXXX and in in is

and we remain As view expanded a average to $X.XX and free pro the expect over returns capital enhanced our growth cash reiterating annual cycle, Nexstar's forma of path that supports XXXX-XXXX shareholder are plan. result, of to guidance which on approximately returns flow generate billion

the to full the expected million overhead, $XX for approximately $X between project for million expected and for we million. for expecting we're first year. quarter ahead, in the be $XXX costs cash to year million and should be comp CapEx for expenses come exclusive and Operating QX first $XX cash, entire million Transaction to recurring be will million corporate comp $XX approximately and in $XX QX, the full quarter $XXX million and of Looking Non-cash in million million. approximately year. in transaction stock approximately corporate overhead approximately approximately $XXX to be $XX for the year. are taxes million be the $XXX the and quarter is

to We decline the full expense million for activity. savings QX for $XXX approximately reflecting LIBOR to year, the and interest [ph] in related expect recent refinancing expense cash $XX Nexstar's and million interest our rates,

cash As on each Network quarter from year. Food TV a basis, largest quarterly recorded with the during we the payment first reminder, received distributions a of

million full quarter year. approximately for the anticipate and distributions first approximately XXXX, $XXX Food Network $XXX million the $XXX in million For to TV of recording we

of capital the of was and reflecting the QX, of lien consisted $X.XX TV recent and reduction million debt debt term Turning debt of WPIX Nexstar's balance first acquisition by outstanding $XXX markets Mission billion loans XX/XX/XX billion purchased Broadcasting, and at in lien cash senior two debt approximately the $X.X BestReviews sheet, approximately the limited and transactions, to in first $X.X at X.XXX% billion at debt approximately $XXX with purposes million. at $X.X Total XX/XX/XX Net for senior notes to to X.XX% balances [ph]. compared is $X.X XX/XX/XX. covenant billion revolver notes, and tranches to billion amounted unsecured net

covenant our end to that covenant X.XX our -- first remind only you times which approximately lien X.XX sorry, that I'll lien XX/XX/XX times I'm net is [ph]. lien of debt that financial was stack. first at XXXX, at our year I'll Our X.X well compared first below -- on X.XX% times. covenant remind first covenant the of you meaningful times X.XX is ratio

as X.XX reaching onset XX/XX/XX our times leverage operate Our Nexstar took to of quarter pandemic, At we year order was our total and actions the of normalized by stated position to goal X.X at at to environment high company the liquidity immediate current adapt to preserve in end in previously to the compared long times threes for the business end and line to success, the best operations. return with net XXXX. in term

that's million environment in million. $XX XX/XX/XX, enhance dividend the returns. vaccination to the broad strategically distribution business improving and our the to a ended deploying with three quarterly during approximately and now cash our payment the quarter, commitment approximately getting With consistent through shareholders fourth for we manner our XXX,XXX underway, In month period are through of returned we repurchase million shares $XXX $XX.X cash of shareholder

million quarter, the we in made also debt During $XXX repayments.

accretive acquisition company. In have Mission completed to and the returns. XXXX, business capital reviews cost of the managed addition, position we shareholder Nexstar WPIX acquisition leading consumer a product liquidity capital, our and our of BestReviews, support completed Through enhance of structure, TV actively Broadcasting

up share these repurchase will dividend actions million industry-leading given operations, the billion the we to to creation. million for value Nexstar's shareholder dividend $XXX of is share as approximately financial Directors increase We authorization initiatives, we by $X.XX share share this shareholders. With our consistent sorry, XX% XX.X represent stock. and In become million of that and strengthened A adjusted of including in the Class authorized per in scale per moderate approximately Board down cash Nexstar's risk and million $XX on per attractiveness January, our $X.X shares regulatory current free quarter believe to quarterly given level, yield position percentage the repurchase a count from plus creating flow large the year, conservative of payout more approximately increased billion our execution. year, and of believe authorization share I'm cash $XXX double our shareholder low value $XXX continue full reduction now to repurchases, significant For payments The de-levering repurchases. a allocated and debt towards basic approximately in consecutive XX% the the a digit Nexstar's The remains of $X of free in and The delivering us our eighth allow common leverage -- acquisitions scarce, implementation reflects to flow. environment. repurchase Board's modest, dividend a of potential returns our acceleration dividend

Looking and unprecedented be up our ahead on has last at challenge XXXX made of and enjoy will speaking the despite position political new a be of In impact of are and synergy Nexstar next the -- structure perspective. an leadership, significant political cost our great quarter capital plans on generating like and see revolvers. comparable maturity cyclical shape and over given summary, pandemic, will strength will of capacity with our of revenue. progress reduction under our while while in to we the the [ph] last cycle. strong leverage realization core a the XXXX again year, scale, the goals, revenue is already operations from QX and QX the generating additional results, cash capital most QX year quarter performance, the early QX political offset flexibility,

and never communities to our local advertisers has national been our stronger. local and Finally, service

remain Perry next review over we to billion the $X.XX to annual call. year pro That approximately have remarks for some of cash forma value before deliver to turn and We financial two the growth concludes I'll for Q&A. enhance significant and over And cycle. back it flow consistent confident the healthy our free ability drive in results, our and visibility shareholder continue and into closing

Perry Sook

now and XX our in to crisis years employees and Each time, and local as and recession that years, week, businesses and Texas. on employees, sustain and pandemic, worked been public came you, the we've which has Nexstar Tomas. management the last the important better and snow apocalypse ever and to long the side, support In other X/XX, operate. financial this, bust to and even shareholders the the the value our company, we more case, followed, creation always here XX supports than approach communities business term com and stronger is board case weathered our XXXX team, a Thank Nexstar's a also this equipped our than In of outsized our have in today. more returns record and out deliver each This good is of today the to before. business dot

year the for flow and XXXX operations, approximately cycle billion per in our flow to to is cash or average for the pro deliver cash 'XX, of free free flow full of strength $X.X Our the per $X.XX our of underscore cash share, that billion free about forma among 'XX guidance market. the $XX and annual our and resiliency highest ability continue share

debt, of forward to and of our are reflected us continued and and throughout for is in our on growth reporting Our cash Nation, to select strong accomplishments same we on our investing free operations recent our record billion $X as team, thank thank the We shares, annually you capital joining initiatives, flow and entire board business, meaningfully transactions. for support up generation you At of behalf dividend or year our additional increases allowing and opportunistic this time, repurchase and authorization accretive an Nexstar morning. interest eight more. XXXX, the by look completing your XX% to to our and management track people, increase down continued its return Nexstar and of of paying

interest. Q&A areas address your of specific to the open let's call Now, to Operator?

Operator

from Wolfe take first We'll go Instructions] ahead. Janedis question [Operator Research. you. with Thank Please our John

John Janedis

uses talk Thanks. Good morning, guys. Tom, you spoke to this cash. of more in can you about your remarks, but

are large or free flow relates absence the of is and reducing think a some probably either share cash to outlook I it back buying priorities, $XX stock. M&A, the as around scale what leverage

Thanks you a can [ph] more been being a the assume You've core of expect singles this are they costs preference? restored. is back but comes the that down separately, as both, revenue I'd some trajectory, expense of doing mid should year, rate? And run talk there then isn't see lot we those about to

Thomas Carter

Sure.

in X.X paid flow. from I significant on of digital, some is mentioned that $XXX but free paid we million -- return down terms our sale return roughly I year capital. cash the before, of down from million of $X.X As million then, almost took repayment in in making from of flow -- of asset X.X We versus payment free to we numbers could XXXX cash in almost a to because mentioned the see We a terms debt was And $XXX deleveraging. as $XXX Fox swapping Obviously high call, down it QX. in our from another in from of operations [ph]. places a of I capital. those of billion amount

came of stock on kind us -- of amount perspective, of somewhat irons probably are still down right the the Given it digital something come return feel place pay fire will the to a of the and $XXX from dividend, give last of either now to between XX% a that's currently what acquisitions, of in $XXX debt If don't year. then is down that year, from yet We coming broadcasting to if come $XXX so we which that the need deleveraging lot million which or rest Part a to if more that return $XXX that would -- repurchases. will don't capital a we year rest million is this amount higher substantial year, million $XXX last need approximately have shareholders. year, of see took of side. but million the million, on it somewhere non-presidential a muted the in but to the from form

comparing in in you two expenses, we to QX we out our prior QX. primarily that With that cash return saying, you'll started synergies over mind in includes -- that to regard of that Tribune. back -- to XXXX taking you and to of free extent XXXX can QX, in in QX, still QX substantially to adding expenses and year. XXXX relative also keep X.X% we XXXX. in flip was how And some can the down flow the of them way regard the lesser probably see winded with to expenses, long So our a allocated and almost see were

So, things our add be digits, of entire to greatest the would entire that screws as on would low down I series back, fixed uncertainty the to at not degree Is controllable would time. QX, that year, comparable which the [ph] tightened in particularly we year, because a we your I imagine in for down really maybe for say X.X questions? expenses single was the basis pandemic start the of to the the where quarter, responsive

John Janedis

Tom. helpful. It's very Yes. Thanks,

Operator

from ahead. Benchmark Dan We'll our Please go question take with Kurnos Company. next The

Dan Kurnos

go see Good first. Thanks. I guys why Great. to and wanted morning, you can

The maybe flow, $XXX free ahead is it guess, of -- of kind Perry, like remarks cash flow $XXX million ago second cash us. based Your and high Tom, already level free your million We're this ahead a the feels here. Tom on Street. really the I of guide

XXXX double implied Your guide then digits still over XXXX. [ph]

So guess, -- are retrans and that. retrans I underpinning I know net I know

world [ph] is saying You've company in your know not clearly that that a linear find, the that's the CTD and talked about ending is for Perry, remarks, can't case. you prepared you

So, you that's obviously, to [ph]. be but could the sort to believers, you We've core on something write really conversations have political, And or but levels just gives bogey XXXX want us forward. what on help you then trends from XXXX? in in some a XX% a down you have you maybe in to have of to in ballpark-ish, get big where going some number maybe just confidence if been the -- you advertiser you on us color give confidence you understand

Perry Sook

'XX And those and a And development would Busch, would say, is Karen culture, Nexstar Media assets good the of the not much than across of I lost may business of in we're broadcast -- I I these before beyond. of are playbook all the operating level of marginally ever in were a in now dismissed, think of the business and of XXXX. operated for to portfolio. in Tribune a thing first of Sure. that we're one higher the and at for stations growing if markets, and Tim something and situation, have at I lost for the acquisition envelope year the of some that a into Also integration before. EBITDA marketplaces in maybe our businesses this back into acquisition have a as it shares the say at ad her -- separate just team, of there the our -- all is 'XX We'll where this full 'XX we which Brophy where revenue on you've had that contributed be will the which days be running -- in XXXX, BestReviews, is side, part we're digital is team and a team, and beyond. year have execution digital she mean major two full going. the assembled pretty and is got has the converting side, new is the margin that -- a and worked the that's larger to business picks all, a a his That on now XX% XXXX. great

we renewals affiliation sit obviously, where like with So we our on agreements.

have through locked end and XX% nothing those of We XXXX remaining. the of over

the have expirations already XXXX dealt early through been without Now, XXXX.

so for job -- of for larger the gaining now a tremendous WGN, not done the carriage platform. all has her Dana only monetization And the distribution but the team assets and and Zimmer under of

if the XX% pace retracing we've our still there. you're is we're think see I in our XXXX. that, year, execution you a back digit levels if way you're guidance, got quarter, listen know, do long above our you part last of go being steps Having up to I've And our at So is pacing, don't XXXX you said anticipate in double substantial thing look say We told this. I'll in XX% a teams one if down to that if retrace steps. second

So I anything. think the if is well guidance constructed, very

to numbers out this position -- over our deliver morning. in in But know to we confident You on feel be a put we this company the promise. to very want

Thomas Carter

comment on WPIX I'll hard for analysis XXXX can of a Busch, turn Tim Don't over Perry option he worked an dismiss environment to that. and Just to and it long our comments, admission. get to of couple some early on kind the and political closed, the because are Perry on I to Mission's of with and XXth ownership the entities combined size substantial of both WPIX year. BestReviews coming There WPIX. And last scale. XXth mentioned, of of and December buyback want say its to as and synergies WPIX

in all none in 'XX those results those and healthy But are of So were of contributors. XXXX. will be 'XX, those and results

political? have do on Tim, you landscape just generally for comments the So any

Tim Busch

is, seats house have as 'XX probably across Senate to The there could [ph] The going have of are XX political up. we seats for of XXX footprint landscape we're of the approximately approximately XXX assess, company. you the the races, those, XX%

the race we've think little we've portends strong got and 'XX. seats, of a side, footprint. probably Everything about in yet is which gubernatorial about to on 'XX got the through earlier all XX, up I a starting another be XX way XX% the robust

Dan Kurnos

Great.

Perry Sook

spend. And not forecasting that somewhat to itself having return because a of and in in said we ad we're revenues XXXX a extraordinary that, in XXXX think political was event

as question spotted of to the the on you're envelope in I you pretty that [ph] relates So is -- point, it much political. back on think your early

Dan Kurnos

and color, another quarter. Thank you on all congrats so excellent guys, the for much

Perry Sook

you. Thank

Operator

question with next We'll go Stephens. Evans Please Kyle ahead. take our from

Kyle Evans

Could little color pacing Hey, in thanks talk core. quarter? a the you in for for seeing month-to-month about the this you're on -- what bit

Perry Sook

in the were already our Sure. ahead same of February revenue core budgets, on and and as January I mean ad digital ad networks. for revenue

for internal this February, to morning as that an said and the make versus of terms that networks we numbers, But anticipate in having used and first of XXXX. be continuing to the quarter. did we're and excellent first core throughout quarter -- forecast, in budget billing in quarter [ph] our which we of your ahead plan of January obviously trend Now down throughout

Kyle Evans

word use? that It's we flattish a can

Perry Sook

year, a out little remember, cliff. no. first quarter I that's a -- To though our off in numbers again, March we even you'll prior fell XXXX because made -- the the

the So ahead that's mid-single would our that we're is expectation decline quarter. prior -- this delivering say comp a as also set, budget. internal that, growth our that of I I'll that the year, expectations, that is to showing we're the toughest obviously of we over of tell now. digit and but you But the we

Kyle Evans

for Maybe and the as on on what XXXX specifically side Great. just well? to sub seeing recap counts you're virtual

Thomas Carter

say Sure. originally in that the we [ph] would decline XXXX Kyle than I slightly say better that we sub continued. had moderation projected. I ended would

from tell back -- of we're and the for at half lower the the off that continue the of though albeit the but that V-MVPD the -- the half that of If total sub in higher decline. universe virtual that's second in growth subscriber substantially second total the compared of growth because you we you -- perspective includes obviously operating comparable percentage a half, entire And subscriber in to in relates add and look to numbers, decline year at approximately traditional our to XXXX see sub was XX% to the first digit decline the the first the growth half continues in growth, we're in V-MVPD. a year mid-single I'll came attrition even

Kyle Evans

how Nation maybe News are we or just to News that to lastly, forward? there. talk Nation, And a strategic going going we And maybe how then -- your performed, Got of that going recap it. WGN call how are outlook --

Perry Sook

America that Monday, primetime WGN will slate. renamed with expansion concurrent of programming additional and is News of next our hours adding Well, as Nation our be to

that job o'clock, Monday, Monday we've X around to shows solid got We I on our view Nation see -- o'clock and for well very they our -- are ad but new X content, produced, opportunity number broadcast. at the they News feel wait number is for going and the awareness well very are XX be to continued done can't raising one nation They growth -- wrapping o'clock one here on for side. the and our obviously XXXX be be for first awareness budgeted of six later again, you baby will that, the will There expectations that well and will expansion of as be will next January well. old expansion on said the months Monday. has in WGNA/News And Nation a in at and increasing performance, and expectations one. on is February us second So ahead look if performed year. performed be ahead Having

gain in million approximately where WGN not no this quarter, XXX,XXX where On OTT was X.X the agreements, had able distribution but some the Zimmer subscribers end distribution in team for linear before QXand again, side, subscribers distribution first the America was of renewal WGN and through and of triggered her carried. distribution to we Dana subscribers, that year

So be your to use have certainly and scale, can we you which distribution, in it's to important a accomplish company objectives, done. important our as

the we we make America. good growth for So as want Nation, happen grow internal throughout to well very as will grows. we as progress. next We a -- March And of News rechristen with numbers Obviously, to are Monday, grow, as think pleased awareness the substantial that continue spend dedicating external Again, to Xst. of WGN be year the will XXXX. it resources, that

Kyle Evans

Great. Thank you.

Operator

We'll with next Research. take Please go from Goss ahead. Barrington question Jim our

Jim Goss

or longer an your Thanks. the midst the when in Perry season, sensitivity in extent any that difference one taken passed the least the political further the To short or News of made to at trends? shape, Nation. of as really phase, trends that early a growth in clarification terms see viewership on has you're can't patterns new you

Perry Sook

in both right, observers to political perspective, by the our that message ever on unbiased political down the due balanced their January first from property to time chart, and middle. wanted line. revenue that a organization so, I'll having unbiased tell revenue true the that. middle that presenting exactly -- of was is I you people in America we've news and has and something which were third-party XXXX, approximately the on And organization for million. called down left we're an think of was intellectual put of issue had accomplished WGN middle from I being There coverage, the Fontes think mission sides And associated Media. bias being campaigns the focus, think And of advertisers with. it as our media to $X is and and Well, you XXXX an holding out Ad every monthly we called know

advertisers be to will connect Approximately content this dots see that and -- at is a We we'll Nation. placement make of does America -- substantial our -- going News not So opportunity as job paying see but and growing between is one advertiser that -- an premium content. the reminder news point, number job growth, they And for as -- And rebranding so a not awareness. part only are that syndicated editorial But easier. XX% we'll think the and forward. and that. our we a the in what that growth, our to of big in our continued did WGN

pretty the distribution So revenue -- we more higher of that growing base And base again, -- well from we'll well. our and have, is be go. as pretty a a ad the our yield well can perspective from locked in,

Thomas Carter

that add thing, dollars we're into that to just those news one repurposing of previously rolls expansion our on syndicated by the programming. the programming were And to to story It news as and the product I product as programming expensed off, want be it relates paid News funding the Nation. continues

from really a venture lot self-funding financially, make that perspective one, sense. a our of and continues it's So to

Jim Goss

I digital broadcast and in -- local results. know talk any but Okay. favor in about you've the shift could balance to One if digital large shift much and has I But That's had other have in have sides. that political political, you been excellent increasingly political the has and -- component in to more impact become incorporate wonder seen? might both historically, has their television there broadcast of great. of you're terms digital own a thing in But tended you

Perry Sook

no No. from digital a I political political platforms. that our virtually perspective, a had you we would revenue across tell from --

as ad spend the network, cable our well broadcast was stations. our on of All as

-- So percent that written, still television increasing spent mechanism, as digital, a -- despite fundraising on is out the I vote of as still, share. get think are mechanism. lion's which it's that it's the it budgets But being that captures

Jim Goss

TV to emerge -- that sort -- achieved in you finally, quarter. you fourth mentioned Can some then what to have -- And your have begun efforts? of Okay. success through you through of give the categories new some you examples with revenues

Perry Sook

of about that in on is on television new But we this that Busch we of let drive quarter. you have, I'll highly to much executives and talk every It's how and our account the culture. me what comment Sure. a prior that's Tim drive call company business business And metric a -- our our our a lifeblood generated that bit the Managers earnings part and will and develop growth. are -- hear -- this. to incented more of new

going sales market, advertising -- say, is to Yellow going But a I in Facebook local marketplace. would larger the as -- and Tim, promotions to to larger bit it's right. well the little into -- programs spends It's -- Tim, those. through that in So long as gather categories, you will a a new advertisers do tail, and talk locally add developing want about a deeper terms But Pages, color the you going purely of new business, -- developmental. trying some want folks, do the are It's on the who it it's convert to through that.

Tim Busch

on well. exclusive year that as focus additional and television projects auto, course, are projects new big Tier we inside run new and entire will Bricks where also the level. we a and have we lot on our a local three mortar spent growth the to has retail, big a further to training in about digital furniture and and unified on across have and a dozen as to the use platform for both market retail been company, of targeted been account dollars, Perry So, unique off we'll X the well broadcast that us, side, spend across that has locally. market of drop category projects had as a Medical But as a how digital on in to as seen we well influence develop geared develop two categories side, the be category that about that on how month as dollars. to -- training specific each categorical to of executives. And the the time noted, integrating a

Perry Sook

area, in are in to exclusive History used as in and lean where into. a as Hispanic Heritage we're we'll again, is women or showing as that other to around franchise increasing another example, and tools For second in project Month, these Remarkable XX spend -- our individual advertisers, in is XX primetime, and Women's have unique -- and second company-wide our we for And Black attract in are well programming. us. stories History Month. to substantial other just -- new commercials addition in from news, advertisers, generating

reason franchises people of purpose-driven the and helped And on our these some a station, to promote giving television and with -- has to interact developments. a so transact basis our

stations, sure And so and that, the that like that spending again, advertising is -- and a or Tribune go should nothing It after team we make if was mortar the advertising were they agencies bricks business And down not to that was environment. perfect introduced opportunity difficult we been able to job think closed, the -- breeds and this pandemic regular to have lost they be a to success in have are culture acquired And success. in this of that is did a have a income. really operations superlative to television the a new open. also way generate I generating commission are

get done. things compensated tend to to those they get get tend and measured So,

a the so our level development, compensation And a commission of part at new premium business Nexstar whole and is local that's pays playbook. for the again market system that's and incentives --

Jim Goss

it. for appreciate Thanks Okay. the all color. I

Operator

from go Aaron Watts Deutsche question ahead. We'll next Bank. Please with take our

Aaron Watts

today. hey, a Perry, appreciate lot detail. all Tom, of I covered Hey, ground the

about There written primetime the network Just has pressure plenty from viewing. on been one question me.

of in And can on stability us we if a on And trends continues? in even latest As local year that give new on the for in how programming? there? prime and ratings base, terms you embark your erosion seeing hoping what ad you're maintaining themes your in confident you're audience

Perry Sook

new anyone Sure. marker all, Well, to would programming any fall using delayed being establishing I slow of episodes come the caution online of patterns. a regular and as viewing into because kind again, back first season of and to-date

been off, would the a our level we by So June, national still increases platforms I March, we digital I then obviously, part pre-pandemic the the the And in level. to market we're saw news. is But on board pandemic, and a production across [ph], consistent will for and but anticipate seeing we're of news, a above margin at local and it XX% varies kind by of at local average kind day -- early linear levels interest will more say certain recap more interested as of are -- late of -- people XX% news growing, but more day's when the has locally, you kind if in -- tell bit during news tremendous been the has want a to as leveling at our our point day and events. a April, home a off above, May, of in that well

So at I whether XXX -- stations, over tough it's again, or on, an later our down it and we've pre-pandemic whether average roughly leveled know. XX% arithmetic levels, but the level to TV give will be off high viewing teens to another increases don't I leg this would say across

I lifeline go not during they much of do dealt -- during broadcast, proves you and coverage safe across here reporting out streaming weather have last in been I'm in those providing news And our crisis There radio Worth when solid on I'll on Our it cases but water and it as basis. substantial we don't was at I maintain out, viewership anyone local services much to really organizations can diesel, a while the generators go up Apple demonization to on week, that mid-South, Dallas-Fort did operated broadcast like not tell of goal to during in Where and and -- all television, during find snow that TV go as of the of last I I'm increased think the hang the an events provide local stations, the to as really and is to think viewers. our increased can. to because at across only and the Viewership some mean, well into and those as it's ultimately newspaper, things that. to of and to of coverage is storm be and -- that on that our Texas, atypical owned continuous patterns was the others. the perfect [ph] the people pandemic, people going overnight moved going to that. can within just on of week the job out that that in to a to measured local But settles running our and be viewing and sorry, the -- there have the place that is try interrupting demonization primetime. bump try the providing to the people sure handle increased the markets, Texas water stations find was within were journalistic who drink were the least when apocalypse that as Northeast

Aaron Watts

Okay, Perry. great. That's really helpful. Thanks,

Operator

take Research next Huber question with We'll our from Huber Craig Partners.

Craig Huber

I and said, TV heard you quarter, I you on than Great. I you for And what Thank you. digits pacing on curious for you whole earlier. you Maybe the if comment first I'll ad touched start just mid-single or budget. January number, have your be you. with could tracking better for March? some this, Was this also just -- I right, think mean, touch the if follow-ups. were month of the that the just quarter? Thank February And And

Perry Sook

It to and hit [ph] budget a February. year. March, knock CBS anticipating and -- we're the last numbers in month I'm is our our telling ahead of substantial mid-single March common last digits January back we're affiliates, March having Madness for for already that our the you, whole of in quarter. Obviously revenue on was wood

And amount revenue. see -- political. obviously, on we -- in our yes, in had our in of So we continuing a this substantial

in $XX over quarter, was and that XX% almost more this the it and million which was first think [ph] than in political unprecedented I -- revenue year. of

So we speak won't to have that be of. inventory -- back. displacement any There any

side that again, of budgeted our digits on budget. revenue, And -- XXXX, tell our down of year we the the I'll we're was performing So in it handsomely. versus our of because it's ahead national core prior pandemic double you unaffected quarter the but

is all vaccine signs life a I -- of in the businesses and So I millions more category kind to the our fully are double digit there. a all out digit seeing which markets of for as kind of quarter of sports gets that restaurants of XXXX. disseminated, And single now the -- us. thing And opening XXXX capacity, a are think our think And has nearly betting, first renaissance. open other was and become category higher millions

throughout a that for -- that's we'll XXXX certainly, but us, substantial think category category new -- well. that's relatively growing So as category, we continued which growth we'll a in see

Craig Huber

about you're auto little further a bit retail, Can quarter I category seeing that. comment the and you appreciate just also also in what please? this

Perry Sook

-- through quarter. -- of seeing I see business as second And retail board. XX% -- and a I across But specific prior year quarter, not and we're down to we're mean we're development not we're the come begin the to well. across Growth. and sequential in fourth over the the seeing -- we're And quarter. and category did to growth go but positive to going some quarter, to growth -- development seeing category. the the retail lot comps seeing level efforts. And new -- seeing the It's quarter. is positive to comps auto give I'm But growth at across you'll think still fourth as guidance, we Yes. that prior and our over growth again, -- prior

Craig Huber

-- Also I retrans to Are net year. at on for that want net please? the touch guys just quantify this. you're past, this you year, expecting to up ask on But that you said missed maybe retrans you this willing maybe in point, the I

Thomas Carter

low double we is previously, low as have exactly digits. single said It's -- which up

Craig Huber

And good. really… Very Okay. it's

Thomas Carter

change. basically, -- change No no

Craig Huber

change. No

a in number, that year. the in that. appreciate decline is I last And your that that embedded that -- what in similar with What's in minds half of Okay. a the subs -- please? you back experienced --

Thomas Carter

attrition is amount. subscriber oriented embedded marker with a It

Craig Huber

Okay.

Thomas Carter

to in I'm I'm So to get going process. into budget going not get our the not inputs -- into

Craig Huber

enough. fair Thank Okay, you.

Operator

Fargo. Please next We'll from with question our Cahall go take ahead. Wells Steven

Steven Cahall

on Thanks. digital Maybe first also.

two? some Tribune Could digital? now shedding and next or I this about and that and about you outlook EBITDA lower you what expect legacy that to just got how commissions there talk for talked that revenue. the a there. year BestReviews, for from about you the Is combining businesses done pulled may in of and new come here big new you've also maybe some restructuring Nexstar You've margin you talked mean, means

whether lot Does of you retrans. this And you're but your of to business digital year retrans Tom, in in mean that agreements Thanks. last flow pricing them, the term. some and year, now than I that results quick a follow-up kind cash growth is spread retrans. on in then, in one of renewing are just that? more looks subs maybe, what I over growth So growth? little more just that evenly I a steady a that's after understand that think And did meaningful fewer of trying know like, your so path got driver the longer a little one free

Perry Sook

let me… Well, All right.

Thomas Carter

five think was questions. there I [ph]

Perry Sook

Let me digital. me -- let hit

Thomas Carter

Yes.

Perry Sook

percentage And line basis and double over top better. it's double digital but a what reminder on and the feel see But as there be we'll XXXX, or what going pie, profit smallest it the -- to see to in our I XX% -- we've growth projections significant to and millions quarter the -- lines XXXX, they and make millions again, consolidated and we'll today, down our you'll as -- across swung in digital to slice of is but which see significant from a the that as on in have it mean, the job either But margin. take it's as in -- for growing. I marginal of at on the part it de-emphasize digital, first because the revenue growth in of drive you'll think all that we not -- look a no we of percentage again, what pie. that enterprise. to I of now, business, produced acquired was needle terms it's I the see had bottom both of profit that. a doing have margin, contributor profit relates on growth for shut you'll enterprise, will the growing a digital overall But confident digit -- we've basis. significant very But year our our that, digit percentage -- the we're to lap I businesses smallest ourselves which and

Thomas Carter

next questions. mind-numbing, the didn't down sorry, I all I'm agenda? the I on and What's write

Steven Cahall

Yes.

of spread more a [ph], revenue of you're retrans that term growth deals. bit pricing little a cadence Tom doing so the your but basically retrans is that renewing this think longer I evenly, the of kind now question is fewer year, you've got was more kind even subs

Thomas Carter

still I renewal peaks subject are would and and as the that. kind say the to we to relates of valleys, cycle, the it

year 'XX muted the XXXX three still of substantial more leveled is next you there. at the more, have come and have where we'll after for but end the just of which somewhat is it renewal renewal, The a us renewals cycle large generally large will So out, renewals. amount

So also some an sign annual escalation still -- is with say, lows. and basis. little wave I the highs step ups some But pretty we're which the interim healthy associated the by on a helped renewal subject out, bit would of it leveled to is more

Perry Sook

are Yes. three But let me revenue those year term deals. just on and longer clarify, all we're not the doing deals two side,

in revenue. been But execute year. double of growth all margin line top able three to have digit the that the past year and continue adds and We up in on we deals side to four -- affiliation from and reiterate distribution

perspective, from nothing has changed. that So

Steven Cahall

a to on any just being chain seeing then, follow-up. there supply advertising? see issues. We're delayed shipments news you Do auto last And some auto of Great. risk

Perry Sook

country. week, shutdown Suburban's and the last plant in in -- all they and here where can we where your Arlington that's Yukon's Well, of are GM Escalade's the made

and rushing car are which the to I lower, of supplies online see, if market be dealers term their and the most -- that will that there means which for robust, are up of continues to demand, most I drives it capacity If a that the produce make is bring money. allow be where prices used very where higher think will more is short it's chips a blip. they blip anything, to

think risk don't an will exemplary a automotive factor it time. be So -- over over to I

I a think short it's term blip.

Thomas Carter

the may it doesn't shift demand slightly the out. remove I'd say just demand. It

go So to not the demand is going away.

Steven Cahall

you. Thank great. Yes,

Operator

the Capital. And last Alan ahead. questions in from queue Gould is go Loop our with Please

Alan Gould

NFL. question. the Thanks question for the taking Perry, a got I've about

they're plus Looking doubling longer asking a rights out minus a term, fees. for or little bit the of

said would have But networks of you Now, what that your NFL into are you rights in NFL I spots end the agreements know, on are the 'XX, forward? and going relationship big the ad your -- with impact affiliate XX% don't of in games. many get a locked increase

Perry Sook

you negotiate your are only that Immediately renewal. up nothing when you affiliation negotiate agreements -- affiliation agreements for because your

-- I a think lost of on. lot that's this goes of -- and think look -- that all in I that there's in is don't press the negotiation

wouldn't that. at So same over XX at talking than this comes But at we're less point, the I in the price year surprised increase deal. -- time be if

or an this up time well, XX the remembers rule question NFL. prices over It's homes the deal. what the the years. will years and of could least -- XX happens or XX. years, double remove yes, have that XX hopefully for going at either for X -- XX to to year And next memoriam So to everybody of They're could

to get manageable, annual that's maybe that to increases mean I So compound number. as

to more So, again, be written.

for I depending I cost be the near think the rights horizon before groups least to the term But paying we But will news we're good more the networks again question is of will more pay of The April, deal. is. at do settled groups, all affiliate want affiliate will time done money, defray the to or the network in of anticipate maybe over the you you say home on overall money. we deals is, think the be -- May. early where report the I but to the that about investment XX%

where I do again, on. first But negotiations, the all up on our quarter it Yes, it that that we'll expect the you we as before see time? will could So deals might. go But byproduct end the hear up. on announcement, you'll a -- it announcements -- of over earnings hear and year be goes

Alan Gould

Okay. lot. Thanks a

Operator

remarks. queue. At conference I questions this in additional is turn for no back the or like closing to would Perry the further time, any Sook there to

Perry Sook

the Well, our in we're able cycle. our joining shareholders, and to and XXXX. capital confident that we We're for proud results 'XX proud were return of thank us. very we're for of to Obviously, 'XX, much you very deliver for guidance very QX the of

you to we a year So our look joining quarter reporting have later great us, Thank day. back progress. on the very for forward in much first and

Operator

appreciate this and your We participation. conference. Ladies gentlemen, concludes today's

You may now disconnect.

Joseph Jaffoni	Investor Relations
Perry Sook	Founder, Chairman & Chief Executive Officer
Thomas Carter	Chief Operating Officer & Chief Financial Officer
Tim Busch	President & Chief Operating Officer, Nexstar Broadcasting, Inc.
John Janedis	Wolfe Research
Dan Kurnos	The Benchmark Company
Kyle Evans	Stephens, Inc.
Jim Goss	Barrington Research
Aaron Watts	Deutsche Bank
Craig Huber	Huber Research Partners
Steven Cahall	Wells Fargo
Alan Gould	Loop Capital

Nexstar Media (NXST) 23 Feb 212020 Q4 Earnings call transcript