NXST - Earnings call transcript Q1 2022 | Nexstar Media Group, Inc.

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Operator

Good day and welcome to the Nexstar Media Group's First Quarter 2022 Results Conference Call. Today's call is being recorded. I'd now like to turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead, Sir.

Joe Jaffoni

Thank you, Anna, and good morning, everyone.

the the language, call. read get then just into right me Safe and Harbor we'll Let fact forward-looking All during Private other historical today's and Securities conference be statements comments of call than made Litigation Reform statements XXXX. of for purposes statements by Act management may the deemed of the are call. Nexstar results from materially to statements risks forward-looking made uncertainties today's subject by during statements cautions that these that and differ those to forward-looking may actual reflected cause

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

Perry Sook

developments recent and Ann review. and me financial CFO. on highlights the review call developments I'll you, summary today you and Thank here in with morning, and which President Tom's results, to for Thank and highest quarter Gliha, operation our Lee company's free include the today With first Nexstar's financial of Ann's joining discuss record with us are Operating Officer followed history. We today. Tom the Chief Joseph, Lee joining us flow you quarterly Carter, good appreciate start by a and everyone. cash

us. it drama performance new boring at testing the quarter was from know another no of consensus So while beat the equity is should expect type levels Nexstar, to here expectations, investors of market volatility,

represent financial the of excellent shareholders will outstanding another for we Our expect performance for NewsNation what start record [ph]. be to an our results year and

and interests. TV across growth strong cast well companies continuing cash A as spend food industries issues, track ownership, consensus about chain in high Wall revenue caps performance this all all economic business in came market for season interest that all bottom impact rising rates. are first and the network supply adjusted let free expectations, exceeding record value sources, of was expectations. Street's me the With inflation and mind, and our of Net from to year-over-year few top position of EBITDA and a upon minutes driven entering why this will earning well year line quarter, our and forward. as from across revenue, of going of build is First recurring create Nexstar all for quarter new flow, theme, a by second the quarter our which shareholders we reviewing distribution ahead strength, concerns

derived beyond. contractual. revenue with only foundation a total not year our this the of revenue, is and of QX, that but recurring revenue source which This is solid in net through for growth, balance is XX% First a distribution from provides us continued

we As see digit subscriber continue of single in low we've to rates commented attrition. past, stabilizing quarters

advertising is results the forma delivered XXXX pro battleground In states. our of will key up many presence QX we year a know, we you from political early shares of strong over our spending, of in as Second, political where strong, QX, and political XX% revenue our benefit scale given with XXXX.

over a the is to XXXX increased spend XX% of Federal for which key QX Importantly, political Elections Commission. according fundraising, ad indicator

recent these levels We through to events. trends year, expect the and move positive we fundraising as accelerate given

markets. debate coverage have in local and largest broadcasting and As and produce to company, the comprehensive resources political news America's scale distribute most our we the live

record our our forma net NewsNation, These distinct reinforce will revenue acquisition confidence The in of between well levels. midterm meaningful our also broadcast deliver as realizing pro competitive accretive our content political are exceeding XXXX, advantages meaningfully operations and We XXXX that election advertising Hill. as Nexstar synergies

net is X%. and of from core sorry, XX% which food, revenue was represents from from up services, XX% from advertising, Of XX% QX, revenue, I'm auto. our in goods Third our XX% core is advertising

mix we exposure large to to Given it that very the category, category. elsewhere. and auto issues and supply are that chain we're the insulated close be And a somewhat industry, in challenged year last services overall, while true that is inflation pacing to from continues

of businesses rate our our both is with are inflation. our And great and post pandemic mid-teens revenue slowing. in are in travel nicely. pressures digital shape. advertising up Looking Fourth, are a largely shows capital a growing pacing our core that back fixed among big Fifth, and medical forward, our insulated in business categories. fast-food Experiential from our increase many services of rates restaurants and healthcare, smaller there signs advertising bright digital entertainment also our spots expenses are repair, inflationary a very our operating while manufacturing based and at sheet can way while and of and structure are balance no home agency last percentage

X.X trailing X% quarter. first a and Our is had the leverage times we in months XX below borrowing cross

further growth to a on bit we visibility out, have continue excellent our trajectory. Looking three-year long-term

agreement in which distribution XXXX this benefit our of In will political from the materially addition revenue from cash period, benefit all year election will and to this expect and renewals virtually our over flow. XXXX, we subscribers presidential XXXX

our shareholders 'XX confident billion cash average excess continue free a As $X.X to to in in deploy result, of forma and we 'XX, cash annual ability the flow we generate will that over cycle to maximize pro return. remain flow

to we prospects, growth term organic inorganic longer benefit from our of are opportunities. both and positioned terms In

the that XX organizations, our cable live and its The towards several research highlighted remains and XXXX expanded news, Ad NewsNation XX% by progress strategy organic network to continues and recently as in for network. of first achievements, to were report, recognized consumers news month which networks. watchdog programming of top was hours including validated a news lack this XXXX bias. commitment the front, cable quarter, continue NewsNation growing With Moffett XX further value talk. offer grow of strategy our our now goal Media, NewsNation to and making networks further in news. time Nathanson our news forward national and in and unbiased the analysis asset every fastest this NewsNation of all unchanged. NewsNation profitably media of regard, NewsGuard cable quarter, Ratings our three viewing week In awareness validating and we the to move of per becoming of responsible balanced the our early consumer regarded trustworthiness builds, the for growing In top value On of the cable a bring first Fontes was by AllSides the

launching progress markets goal of We covering we with next-gen also ATSC year. towards the April, television launched In ATSC more of of and markets in by QX, the to technology. half in end all X.X our an continue one lead marking a three with signal households TV industry this US fourth X.X

show continued of opportunities The holders excited to in our of X.X potential for the ATSC we around about revenue are industry as this technology largest as us. myriad this nation's As broadcast core NAB new evident upgrade both the well enable around the monetization more at was that will and analyzing spectrum, one -- business asset. the enhancements models more April, momentum and we're motion

or business the investor, of to signals a and which For example, broadcast ATSC network an an powerful capital vehicles, use application to correct overcome since in drones delivery have new improve inherent spectrum could can X.X Path, any other must a we devices Shifting GPS mobile allocation. our wide in demonstrated Bit certain signal are land-based services, for be weaknesses satellite driverless This service where signal. aware.

Our us our January, disciplined rate consecutive long-term we the a annual annual announced for was our to $X.XX increase representing share on to capitalize shareholders. value per create In approach our of XX% since initiated. compound best growth dividend allows dividend to greatest quarter, per opportunities the ninth

We in and in to diversified Nexstar's capital pursue current strong while local broadcasting for and dividend also our and we to the performance industry. shareholder-friendly deploy potential most a with sports share compelling our creation future strategy. and repurchases and investing continues debt growth. payments, mix summary, the continuing M&A growth will in business validate through our best the accretive produces of news, America consistently remain reduction, Nexstar's focus powerful of of to continue a cash with value entertainment content confident some opportunities. national near- allocation distributes the platform and In long-term margins in

targets, agreement this renewals, We have our well period. and representing on visibility subscribers free on advertising expected to our of and flow given a cash midterm strong presidential deliver significant as distribution three-year percentage over as excellent political our ability this

market the Tom? now growth turn such, spite of and continue As With driving over to Carter events. shareholder value world and the call near for have long-term let we enhancement to in review. operations of solid a and Tom other me the the that, foundation

Thomas Carter

in morning, had Overall, all and strong grew year. first good resulted and prior more of Thanks, digital distribution year top in television from of core everyone. core driven Nexstar the increases advertisers, which net advertising strong Nexstar's Healthy start X.X% $X.XX by automotive We advertising across an our in was political million sources. year-over-year revenue quarter quarter. by growth revenue high categories, the $XXX all-time Perry, 'XX, of over of first offset solid quarter advertising. and versus QX weakness delivered continued Olympics, and to advertising, increased revenue a a television of aided Operationally, and billion, the X% than demand XX very record advertising XX

sports medical Our betting. top-performing care, entertainment, gaming, telecom were categories travel, and health

for levels by In believe in term. and states as to legalize an from which generating addition, every first are sports of online continue legalized the recently virtually are was the are sports category sports still of betting quarter the expected X state, betting advertising Despite gambling of with market casinos the in healthy betting offset a the some to such Sports our television York, and deliver has large top year. mature. there legs, where this number Connecticut revenue declines in companies, by driven Nexstar's land-based Growth first the of in business we sports sports in sales is gambling a marking such teams in million, betting as primarily $XX states, category part and pressure was where over spending 'XX prior XX% betting near betting the of be to local online in and Ohio, new increase initiatives to category states more New continue in and Illinois, sales on us quarter. public new Louisiana, from in where we

has legalized of is will or you As approximately XX% launched. in the betting a know, sports states where Nexstar presence be

new continued well generate from category very this to growth positioned legislation. remain we So pass as states

with and challenges, QX trends macroeconomic governor QX the races Illinois, advertising is healthy television revenue to and Ohio ahead Political in of improve approximately which move to the we a and Perry primary As strong continue and court recent benefited and optimistic Nexstar as mentioned, million, seats races start levels. that from around pro throughout off forma Senate QX we're these XX% environment Pennsylvania in got remains despite year. advertising key XXXX strong of for Alabama. spending in elections in Texas $XX will

of first approximately our political As quarter candidate distribution for end remaining XX% 'XX million, XX% spending X.X% accounted spending revenue, and year at represented rate Senate of approximately total spending the accounting PAC political quarter improved Record with distribution a from revenue of terms renewals issue agreement rose approximately all first for other $XXX prior Gubernatorial the on XX%. percentage and spending, reflecting of to the quarter approximately escalators. revenue

see subscribers. increased trends, We by and improvement aided subscriber our to stability continue VMVPD in

and subscribers renew our our the through good contracted affiliations expect year. this revenue have contribution of growth big driven than a our we and The at 'XX, higher reviews our visibility quarter revenue year-over-year QX year-end into continue we affiliate 'XX four addition, in only December businesses to With and rate from in increased $XX was of by of services advertising of million. from up half year-over-year source increase our a net full revenue at with digital agency ABC more local distribution all In growth and XX.X% approximately contributions agreements this 'XX. from of Best strong to This digital to end economics Hill. set

strong we forward. line the quarter growth distribution expense cash our our cash With management, revenue and update Proxy and of conducted margin, EBITDA Annual adjusted ownership TV Meeting, quarter new owners Network flow. our converted first and Food $XXX to earnings XX% adjusted during solicited company's of the first quarter with first million approximately expect initiatives, the on extensive to growth an combined In million. were development shareholders a recent Food and XX% our interest, for an Network, and for which call from matters. last on flow XXXX momentum high $XXX on Nexstar TV all-time and record generated EBITDA feedback outreach we we cash them these our from free preparations strategy, outlined quarterly drove of of going audience Top our Nexstar's content ESG digital adjusted EBITDA free their

success. communities continues end the history, company's at who to our in input who of April. to our to our a driver with of the shareholders the the these our our consideration the will a Board for with was and be recommendation efforts of -- key filed For of long-term engage commitment of presented shareholders summary Directors elected local Throughout alignment proxy XXXX included was to our and commitment and of

remain on as the remainder ESG supports and communities With for evolving we our the shareholder of enhancement and employees over a turn the and of pleasure Lee the thoughtful result, update. and goals that for it's call a as review to well Ann? my policies financial Ann to focused Lee manner value. in our As growth disclosures our that,

Lee Ann Gliha

morning, good side, the the shareholders quarter Tom We on of the of Perry and another strong Tom, remain constructive on jump expenses. revenue our and of very to XXXX. details most ahead will for I in you, us delivered everyone. Thank you so gave opportunities results and

as advertising million, expenses as higher political of $XX both well First a expected. primarily a This including included revenues direct noncash was expenses. to core and digital due Total as operating expenses quarter Hill. what or was -- than compensation legal this lower The and million, of decrease was quarter approximately expense expense from the of and approximately of corporate approximately $XX we from distribution full result SG&A increase fees number onetime sorry, primarily $X million expected increased

totaled quarter due to $X.X and CapEx in from lower $XX the was disruptions. supply the First approximately received approximately equipment $XXX,XXX, chain CapEx was repack primarily reimbursements due FCC. million. CapEx of in expected quarter, we Spectrum than million delays to first receiving

occurred due interest declined approximately to expense total compared interest lower million a over $XXX million quarter portion of approximately with borrowings of XX $XX the by to quarter LIBOR basis primarily in offset quarter million. higher million and XXXX. to missions expense X% value, was by and Cash $XX face year, of points First of revolver approximately refinancing first which approximately the $XX second last lien

small operating quarter first quarter payment. were taxes Our cash $X.X million, state a first reflecting tax

in to year in distributions which Now the in quarter, first we million XX% million a stake increase related the recorded from $XX.X quarter. equity ownership Network our represents prior over Food $XXX investments TV

$XX the price in and year, million but in of will ahead, to grants. to and for Noncash year. and approximately based comp Looking we expected stock area the is million approximately quarter, in to corporate corporate the stock comp transaction for project on million actual quarter, project $XX.X exclusive vary be cost, continue be the second we second overhead, continue for to we $XXX overhead $XX million expect full the

our XX.X% For when adjustments. and cash rate other tax a taxes, estimated before tax we used calculating onetime

the quarters. a timing in for remaining of in quarter fourth payments, made the reminder, with and each are As second of typically X tax X terms third the in payments

the from -- and $XXX $XXX million should the be business. million cash $XX year full the to still million expect expectations range around CapEx quarter, we closer for the will come We Cash in second current that expect in million $XXX for the taxes given for to year.

political typically years. years even we more nonpolitical than and numbered reminder, in a As spend CapEx

quarter and for updated for the the second reflecting expense expect Nexstar's interest estimates debt for repayment. to We $XXX for million year, LIBOR approximate expectations $XX cash and million that

covenant to Turning XXXX, billion. first at to XX, the $X.X from purposes lien billion $X.XX for debt balance $X.X $X was XX, down sheet. billion. Nexstar's Total debt at amounted outstanding March And was XXXX. at debt quarter net billion net end, approximately December

Our only X.X, covenant our X.XXx. well XXXX, first at was covenant and XX, net which below is March first of lien lien ratio

from December leverage XXXX. was net at end at down XX, total X.Xx, X.Xx quarter Our

or of we the and repurchases returned free to XX% share leverage of We increasing a third cash combination the flow or through quarter, to our We of due portion of another towards flow year. to shareholders reduce $XXX a indebtedness end In allocated given our EBITDA XX% free cash reduction. our million cash by expect allocating free reduce for outlook and of the our dividends. to $XXX debt XXXX flow million

Going forward, continue manner strategically a shareholder value. we with consistent our commitment will the is deploy that creating our to to highest in cash

exceptionally of continues high We and financial forma the call. our to on is $X.X for remain please Operator, well guidance strong flow growth our in an deliver billion and cash our evident clearly questions? review free XXXX business perform open results. That average in the cycle. positioned XXXX-XXXX deliver level, to pro ability over QX at line annual Our the confident to the approximately concludes this in can you of

Operator

first take [Operator with And Instructions] our we'll the from Company. Benchmark Dan question Kurnos

Dan Kurnos

morning, one leave Great. the in doesn't case there quarter, sound just retrans. Perry. [indiscernible] Good know and the it value on I'll else. questions course for to Excellent I Thanks. ask everybody be

I strong the guess, you and guys draft seen else more kind couple on from 'XX as what seen and few out net of we've I the weeks, we've then We've the days, or last should And 'XX, of year political, Given 'XX. than kind heard say. the the strong start looking year? the for to you there some the guys either what in given of like even the year. around rather mid-to-high outlook to guided to singles of all the fundraising forecast the to have real and the gross given there from now everything obviously, MVPD kind Is last leak in start upside, of gross

too I us but know cycle, we might just think help that's if So don't through in right benchmark. be It's to the the closer getting much yardstick? that early how

Perry Sook

political would XXXX yet if XXXX underpromise it like to the the will control a it raised. But we off-year to for revenue X-week not don't but a of you the But are say that political the Labor to everything it's we think know, money and we a until ahead obviously, Day levels. obviously, because, record midterm you would substantially will we that you to go election company, be take question. on half follow money will I'll that, period be it know -- more from And we Day. our midyear perspective. And be as overdeliver the and indicate us Election there than between come ready forecast in

And so anything to just be closer until fuel we would we date, that would do that speculation. to get

about So we're far. And said comfortable distribution call the with what the thus I'll revenue. let talk we Tom on

Thomas Carter

question. quite early thanks a attrition Dan, -- Sure. pleased were we for it's honestly, for levels year budgeted with Yes. to performance and, us distribution especially the with But with quarter. the that entire change saying with little guidance moderated first for. and the too better at our the levels regard We're after had to than regard to

of we I mid-single with going So to we're was think were, digits. where stick kind which

Dan Kurnos

have just uncertainties you've of cash finicky, today, also and that might track a to should Perry working with you out Okay. there's the just on one I'm the been of certainly you generating capital? long if shareholder provide. little just I sneak continues more activity if and wondering could sort perhaps more in of there. out there, versus balance just stock but market appetite? difference record deals done, think allocate speculation or I given the of your but guys on Tom, of how if know opportunities there's we capital about repurchase change boarding would be any how value M&A plenty a maybe bit And kind allocation, any just just Obviously,

Lee Ann Gliha

most think to shareholder to shareholder value going how perspective, created we're I value historically think how for company. continue to the that's we've an going a Look, from it's the as Yes. priority create always expect -- and I we be said, M&A forward. That's

we can so -- we complementary are our will accretive And cash good if that's business, for. transactions be that find our that use to what existing

end shares? to opportunistically, use as absent will down probably to pay I extra noticed little quarter. that, think our of I you the we balance look have bit think we debt? definitely use of dollars cash balance do sheet we the we do Or a the the at an dollars repurchase on at

where stock also our We today. noticed stock is our --

So capital and our forward to sure obviously perspective, -- that right making be way, best our that's we going for in allocating the to we're are from that shareholders. company looking very the

Dan Kurnos

quarter. you Thank I congrats appreciate the very much and on guys it.

Operator

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

Steven Cahall

cash held and I one XXXX million. line the Thanks seemed interest, your free $XXX items, though. just some of $XXX flow cash when were that really for to good to I move the cash most guidance Maybe in cycle. million about Ann, the listing guidance free you from the the of overall, morning. you XXXX, context think of going Lea small first, that's off think, flow cash was kind

So little ad if if a that the sort are more are just market? wondering the anything keeping of moment? Or you at the like else conservative it's things those

Lee Ann Gliha

absolutely I LIBOR -- higher continues the going and that's to curve I the right. rates I both for -- think We've XXXX for think is the mean outlook we -- against No, Yes. XXXX, in us. move forward.

that. a bit of going in So us as of a of against for where taxes improved factors that performance. obviously we right progresses, the I little we'll think we're that's of are But terms one result good now. the as continue to as as well year expected And revisit increase the

Steven Cahall

a does retrans so getting few was I on contemplated markets of some stations, And retrans about I'm But years it seem we this to some that's into ago. probably like a some sub. that rate. backing NAB a have little where kind mix per not probably not over average there's you necessarily Perry, rates rates is for then, big know rates. about of $X of talked And bit quarter

you friends as Do stabilization of rate to there think we to rate a cycle? to kind network love your the is supports Your where affiliate driving feel also ahead? lot do continue all increase big those are rights get there a rates X lot the sports ecosystem up, you that as are a like higher. go ceiling of of Just view in out

Perry Sook

first of said art contemplated about you Well, I possible. a all, the we years to few goalpost think the And rate that I've certainly have as the what I ago. what moved is spoke recently, the of is in

Given X how valuable to further value I the to present consumer and that live I bundle we X in and is can think than we communities, to thought ago. the proposition local could news years the perhaps or we our go

-- it's there So negotiation. Ultimately, a a ceiling? is

the bear what parties can can stated years beyond numbers earlier where certainly a in think we I to. go So thought X will the than But few your well that it's further and you market could and what certainly ago ultimately agree I question. we reach

Steven Cahall

morning, said expect like X some content Fox have. to then the to broadcast exclusive keep linear it the license me, And not lastly of networks for sports and this they to key other big their

the do services And way that affect content relationship companies that with Fox streaming with it? a are comp? maybe a forward, in those la reverse you your think see Going difference about could launching you carte and broadcast on

Perry Sook

one and the follow the we to for market-by-market on of it would And extent a in content that less said and I've value. would partners. that exclusive, less is as things we have network all basis. pay historically, of good have Well, content that But it exclusivity is with less relationships less our

Now programming each other. less network than provides more programming the or

with rights discussions bundle of for obviously, that has resell less extent programming to exclusive, are to is be and programming And I some less paying as willing local and advertisers it to But network value the to we'd we're programming less So distributors. to those it. us, then inherently for pay for the nuanced. the said, to that, our

Operator

Alan our with Capital. Loop And we'll from question take Gould next

Alan Gould

seeing? can a should the effect quantify sports sports in gaming effect some as mentioned in are gaming growth change you older offset noncore? on, goes you the markets marketplace? crowd-out Tom, what what a the what here. from the of more Two you And becomes markets. see you in that What political advertising of the more crowd-out sort the year mature secondly, mature we as you discuss as expect Can

Thomas Carter

Sure. betting to throw I'll the then political sports Lea and take question, Ann. I'll

the growth We the about see see back the fourth talking overall, And think but even then levels growth our crowd with QX will much optimistic how and expectation the is some we half very see. out But QX with just confident to crowd will quarter, we're out. in regard we in I with auto pretty year of on will 'XX that we're view advertising. and even a over sober

So I'll Lee betting, let sports Ann tackle no intended. pun

Alan Gould

that Well, Yes. like will be good that. fun. I

Obviously, for is markets too being us. markets. pieces different be a with just Illinois -- Louisiana, different for there's York, this different a quarters Tom New it's like us operators launching. lot new the early moving continues things and states online in good coming in But doing to driver what and said about talked I new states just past, betting, think think sports I've I the of

sort continue are we top we So look three of to in on as process. states of have five states, them the that early at launched

and So a little spend, see we be market here they focused of states are online, bit and new a we're on large. could we come but we obviously dynamic Ohio mentioned continue as to think in

the ballot. something I on got think California has

that look growth to going seeing number So we states will other there's forward. in forward of a

Thomas Carter

that think we're I And I you And target states, North we're moves at example, into in the really local we every in betting market mentioned can two. those new sports are states. every market an say think Ohio, broadcasters And in advantage here. basically Carolina. as Because for in

nationally their XX% that. expected betting we And locally. betting buy sports states, disproportionately firms that to legal, either we're in to goals, when be will those to don't So states legal they think that buy benefit sports or can we have from is target the they of where

Alan Gould

of percentage core these what days? And remind sports Absolutely. us can your you betting represents just

Lee Ann Gliha

It's like X%. X% or

to find numbers altogether. about yes, -- quarter. that's I'm my and -- That's So little for a here X% on trying sports betting the it's the gaming

Operator

Research question [Operator We'll Huber Huber now with from Instructions] Partners. Craig take a

Craig Huber

it guys could And Great. further core you environment, you expand maybe maybe just advertising Can just said upon I'd if little curious advertising talk you a about us give bit a before? what be the please? the X%, far? for mean that I quarter would, I talk being second about number well, as is looking year-over-year. mean how if Maybe X%? auto is you pacing X%, so up

Perry Sook

a add. acceleration over then QX. versus year prior and saw percentage Sure. broadcast, versus We QX their increases year April were can versus I'll start the and in prior in all increase versus the up results slight digital finish versus year our the actually networks others prior

but to our and all think category So the not much the I of categories from sign. gaming maybe positive say, drive the first the from would And automotive is a in services entertainment a down and April have as as quarter. I and have been thematically, that like quarter core mean, books. prior a that. others perspective, and Obviously, that that's we is trending slightly driving other of year, continue some growth reported. looks And lot

to our increases showed the of and So XX. first XX top year X of in the top XX our prior quarter, categories

things thematically the quarter see in that don't the we books. of have So we different second than month much X in that quarter

growth first the in what we core saw So quarter. along we lines of in see continued

Craig Huber

certain that commentary issues speak message issue, It's categories interest you're the like that. supply does, pinch your numbers a don't for strong. there macro you're powering is on advertising so obviously, quite your out feel but issues, just hurting inflation, So obviously saying basically, But you're far, feeling the here. higher stuff. I rates, through mean you're chain the all to not right your itself, Ukraine and

Perry Sook

was That first in that all all quarter, -- did. posted was there we there results, the and the we

really the So in it's of quarter. there have with results of all quarter. current mortgages second changed and we price quarter, as were We're moved X% are the the they first into rate what gasoline, living nothing in has second the inflation,

again, where But a quarter, our up. be track lot on in you quarter if end some are like to pacing think some basis. the of at So be looks to look a categories, we'll are I when going XX up, terms down we it going first comparative throughout

Craig Huber

I Great. if And could. question, my last

local could went For growth and and the the second maybe bit little the performance quarter between further the revenue if your things, outlook and what talk in of separate versus side please? side the a is you there maybe how is digital the -- national organic quarter, maybe about in

Thomas Carter

websites as Sure. was in with as associated want conflict, advertising beginning as the the local owned to operated double-digit The last robust revenue Subsequent services, digital saw advertising decrease returned websites. a of -- with in May, I mentioned, the at be very particular, and our Ukraine those that. less seeing there our think agency didn't issues. and of from selling a increases, Hill, to in that, National of was Well, the time some digital well because -- has local quarter over news. a advertising our in is for of early just that because period which the half in strong broad people perspective, April we both of first

thematically local still national would is is behind expected, performing our positive. So than say as but better I that or expectations, probably slightly and

Operator

question take now a Research. from we'll Barrington Jim And Instructions] Goss with [Operator

Jim Goss

One X.X have plan terms question use. the devices of in involves to ATSC monetization you I the

all and signals. you get a in framed way? of that recollection? if scale the paid a have with notion For a I'm the you correct to of was example, me delivering tell things Could correcting GPS How or on could some retrans opportunity do out going consultancy of if potential you basis, new time related for on you not of mistaken. would that, sort other that past think over this And a and brought improving the information up you're I technology the

Perry Sook

of Jim. $X.X believe this of current company, year. this decade, billion that We of time, of our this an revenue spectrum rival north we Yes, ancillary end for and is distribution think that that total which uses from something means monetization over probably could revenue,

office our focused demonstrations I think at as know it, a value why about it. we we why it, the so So we much on create addressable need correcting it looked which greatest you is it's so your we to at it's signals. we're that you potentially GPS and that on of mean just window is and as was, out One and it think look much NAB. business know value you to opportunity you And in where know need is. when huge. -- anything mentioned, where think two creator, to talk I substantial need today market

I distributed power. centered around demonstration other saw The

of bit thermostat and be could day kind So source, could and and that -- with the as fast, during the offering talking it can ourselves that toolkit, real with having that do has the talking we folks as toolkit there's put drive spectrum. be peak off with and also all think, the part just of which necessary incentives which but and It to of the spectrum. get be in the dongles consumers path to of all we the $XX raise it itself things open what gets wonky, birds just they view able that their on We as has are road of other the and BXB are uses toll got sorts and being to to real we periods vision of see execute and enable your myriad. utilities your utilities nest this all consortium are of together bill invest opportunities, to basically developer's applications. can but The part a

decide being but And the the the let open so spectrum, highest and we ourselves the use of see we turnpike. market and see it as source as an best operating

Jim Goss

as come If how in thing any analogy, the far -- up collect but you toll those examples gotten Okay. the have you or terms you Well, road you've as that's of to could of would of sort thinking that stage? work way great idea. have this tools, a with

Perry Sook

out, ancillary we felt I to were needed leasing our providers. think, some every again, of cases, spectrum basis rule market conventional advertising invest our either just reach throttled I don't the slivers use wireless but although in with that being we speed our or straight Sure. we ones it Diginet of lease might lease distribution. wouldn't that these it of of we we know And mean, that and for out vis-à-vis delivery every go own, payments. monetize make money others I -- by the Netflix spectrum for be spectrum mobile just an today on I Diginet, would out businesses on to or country in a we But they that higher could they XX% point point, would lease to sliver that's a

sub the potentially that. per valued generally on I per is So And think retrans future spectrum and a analogous to valued pop a is basis. basis again, on is

telemedicine, think ATSC these But that not digital the So want this wholly the signal cases on and I dissimilar. at highest able determine use to think to that the provide we are monetize again, cases. I you we'll like you the when it. and do need number the just then X.X want be to use just about. -- market. television, spectrum, any tools best connected for developers for there's is mean, I the to you relationship, we let of need decide use come said, But don't the as signage And air look What business develop car the and comparisons of market interactive the potential

because just spectrum shut here, interconnector say, -- the lighthousing kind and to able as And that's one And each somewhat to wireless the how create can then on a when lot. think be restricted Internet think us not And opportunities, go. how able of signals I -- of lighthouse ultimately, hopeful develop distance a I you I X.X, education we you're then transition the there to kinds -- off Now by that it's decade about X.X of whether of But the think we're here be different we of Things. other's the why there during you again, it's about? are all to other. period Right situation are of of are many the extra the of end things learning. that, having And transition. now, and think

we the and population of efforts the are available to of case, monetization forefront with bullish well. by deployment the industry of case be the continue we and end and stations development will will So year, XX% hopefully the the of at as the on signal reaching business ATSC use X.X lead the with this

Jim Goss

on be position, out least rare parties panels points wondering hold you you've somewhat of attract And a unique Okay. the sides from Great. political the where points curious, neutral situation might have. of in not I'm you'd maybe spectrum a view from other One view -- question. or of at with just to carved have spectrum, landscape both positioned NewsNation. different would of sort you if competitive I'm if that

Perry Sook

from Jim, perspective? a revenue do you mean a from or content

Jim Goss

a might from that viewers. perspective No, content interest

to to attract able middle that that the may create from from met if create go whatever and with I be on, think way to lot to carving opportunity wonder neutral liberal get tend advertising be can might tend competitors? a one issues you of be they it is could that be or whether be they're the would in viewers base of to tellable position a people content out And either the conservative, side. the focus would to viewers I other anyone, but

Perry Sook

air And we run aren't Huntsville, on of time the make and of Well, were prime worker that, that Sure. covering. will to to are watch the you have I large the the about as the is Alabama, women discuss the the own with. live view points but appropriate, the carwash wouldn't first only the of as was big attention first station And and not That NewsNation, going on in with with injecting others such. the the we where knowledge have cover week the of doing part talked we and Indiana, phone A our you're you we country, where important weeks cable to networks drivers. were tell -- on I our of people in to. when if of. their American would on possible to interviews the interviewing interview and plays It's being convict hosts and part kind could the today. on other mean, trucker, she news our offering And talked to the profiled recent country people pay and from were clearly Evansville, truck that's then stories opportunity of in the really of where other anyone operator moderators been stories contacts where labeled not we jailbreak drama though is programming, their country a opinion, large points as course We a those referees cable our rig covering where occurred stories ago in obviously workforce hold other correction presence. that on networks. entering Florence about get former well it perhaps that a see the with scene but industry. doing couple We're local in trucking to And with don't have networks the that was in. opposing NewsNation

-- We itself is handed sprint. Hill really air digital environment the embarrassed they're kind every marathon. Wind for smart we we viewers, The day. it's the unbiased for what great the that toxic. a but not XX and week, of professionally asset, smart the p.m. shoots by definitely D.C. well of because the can smart Washington on started. political. think will show. air ratings, necessarily being we advertisers is mix. a the lineup we I and year. think So and is It's And or also not we focus But a put are think I show been we a stuff going where highest this before The year every on the see called a over said be a program you'll informed don't and that's a think own see up because of another. panel produced of this the to on and our be focus we environment Hill, small, it's come of as end think not and And the to, in as our show on don't ratings never ratings viewers green We proud will X the But have content long on And since last a growth. week type I'm and we to entire demographic But had made those. I've second what's a one we growing, The

Jim Goss

Thanks much. Great. so

Operator

hearing joining more I'm [Operator you operator. this for much no morning. Instructions] Thank us We're questions, very sorry. to everyone

Operator

have from Actually, Huber in callers Research take you We'll queue. do Craig Partners. some a with from Huber question follow-up --

Craig Huber

at about think uses of Just your of reach by of spectrum year. wanted to saying to you're comments the you'll -- XX% you -- you're end the be Perry, this population down the here. going road Obviously, U.S.

expect far out Your TV possibly? XX% or the renting reached of as would in to optic total, use spectrum? new so. you've said, about is start maybe this you When first on inking How your contract

Perry Sook

right a make of we million Well, uses now. our spectrum on ancillary year $XX about

and that through through line flows monetizing line. the advertising the already is in we're advertising of the flows So case it distribution or

I and as not it's and spectrum you'll and X.X of available. laying with of on an population. the our if unduplicated I today, if and and we see their a Nexstar Scripps fallow you I think X.X But that's it's last I think mix our have and the as overlay said, So -- look of spectrum call, at reach of States spectrum, mentioned United XX%

on a think build that. I can you business

things of anything stages committee early or wouldn't And so or we require about that consortium could the a in do else. together we a are having conversations

X see could XX% with to of see X cases, use get maybe X, the next to own on think our I or and that's once I partner going population think years. to got So I think be a then XX% reach agree. and the do you've the we -- that within But parties to have you'll begin have you'll

Operator

with Kornreich We'll J.K. take our next question from John Media.

John Kornreich

a Did follow-ups I have couple quarter? amount of miss the distribution the on of that. And then Network Food first I

Lee Ann Gliha

And food was amount million. million. it's earnings the release. the It in $XXX you network $XX distribution see, up can Yes,

John Kornreich

was that and million? -- in up up was that $XX And

Lee Ann Gliha

Yes.

John Kornreich

for XX% to what year? Okay. Does of receive going the so eventually that represent you're roughly or

Lee Ann Gliha

So Food for the the the the prior distributions are lagging, right? So from earnings Network that year. relates to

the that distributions represents -- it So partnership. the does analysis it is

Thomas Carter

has than less look of the you first quarter If the XX% historically, been total.

John Kornreich

than? Less

Thomas Carter

know guess number to is, closer but or is it's probably And don't the what the I exactly XX% of my total. XX%

John Kornreich

all they Okay. cash Food made XXX% do they And represent free do Or of that flow? air distributions finally, something? by Network, retain the virtually are

Thomas Carter

their and get It's we of pretax based XX.X% on earnings that.

John Kornreich

That's Of the pretax earnings? it. Okay.

Operator

remarks. or further And like presenters the questions. closing any to there our to for back are no telephone conference I'd over turn additional

Perry Sook

of true low industry-leading one all joining you, financial never have us Nexstar disappointed, market investors to generation and consistent who market remained given thoughtful been cash thank our has Thank of operator, shares you uncertainty, volatility taken advantage periods today. leverage. have and buy for our outperformance, In flow free thing our

you again everyone, thanks, results. report We a day. when us second great So to look we for quarter our joining today. with speaking Have forward

Operator

And all once thank conference. for your does you again, that participation. We conclude today's

You may now disconnect.

Nexstar Media (NXST) 10 May 222022 Q1 Earnings call transcript