NXST - Earnings call transcript Q2 2024 | Nexstar Media Group, Inc.

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Operator

Good day, and welcome to Nexstar Media Group's Second Quarter 2024 Conference Call. Today's call is being recorded. I will now turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead, sir.

Joseph Jaffoni

Thank you, Paul, and good morning, everyone. safe call. and the right we'll review the into first harbor then language, get I'll

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

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

Perry Sook

recent morning, I With will you and start with today Officer. everyone. followed and joining Lee summary us Officer; financials. Mike's for highlights and the Ann today. by and Operating review Chief then Thank our Joseph, Mike Biard, you, our will Gliha, me Financial Chief good call our operations President on Thank are our Lee review, of Ann a

strategies. revenue and cash and of into of this consecutive results solid mark revenue. revenue operating quarter another growth strong flow our of all-time adjusted We financial total distribution quarter quarter Nexstar's third disciplined reflecting free EBITDA second net translated record growth adjusted our another high quarterly quarter

highest generated think national to Why intense industry dollars. revenue is that? that in Nexstar history. total and time stop distribution quarter the subscriber At Just and a experience advertising is second competition first minute. and for continues for the when levels a about company's attrition and pay-TV the there

value reach recent programming television partners. and Well, comes settings. validated to few a The down audiences, to the and it our of programming in Power high-profile Broadcast was customers our again delivered

example, NBA television cable the network on to For on favor tremendous that of distribution renewal a the contract bring television, deal broadcast that increased bypassed that, the given included a model proven the of in broadcast value will lead. our

In every growth long-term fans" our no is we of said accessibility the the been can fact, sport objective a there's of We negotiations, our that has lifeblood "throughout This maximize a recent our of that games NBA to for reach reach television. know of path well. the from prosper accessibility will NBA and statement match as primary and has the and and proven by these reach believe the broadcast the sustained NFL that platform one the is

loyal popularity To who media that news high lot point, interview as about subscriber XX much who which month, account business percentage is audiences provides. pay to television obviously, an in content only reiterated enjoy net during reach pay-TV comment and experience that we superior and great the order the plus aged led primary our us" on is worth objective of access viewers the large the universe, increasingly and NFL's went He That's that interface more how is A to the not subscribers, The the television but broadcast model not the broadcast for sports pay-TV and of ratings". great Goodell subscribe including as has the to to league, to television " by saying, anchored his broadcast fans. Commissioner last on about of it commitment NFL just what " presence the dollars our Roger is the for

Moreover, as content segment inflection to of pay-TV we the and companies news the more attractive, profit, look attrition. generates the more lean bundle sports way, in the and linear an leading relative only in more expect into power of to point the its that media by value with future the back local of premium all subscriber

flow Beyond is balance believe our a strong highly the that, generate provides, operating scale differentiated. the free solid Nexstar enabling Based we sheet. story on leverage consistently to us maintain cash and

alone, As year we for year-to-date of dividends free share or reducing alone. we count million over repurchases, our $XXX of the our and half of a returns delivered outsized shareholders. long-term adjusted X% cash returned the shareholders have share result, flow In first our by form XX% to this in XXXX just

I'd progress we're on the the The growth in longer-term to including touch CW. of briefly some making achievements quarter, including like Now our drivers, on our

in million Nexstar $XX turning network we by for X business driven the by costs has and as on less march reductions to that programming our making than the owned and quarter The our second year-to-date, million progress SG&A. we're years, by in continue CW operating improved excellent $XX largely loss and around.

to plan operating year, the and remain For we loss expect $XXX to CW's full million. improve The continue on by over

to which this #X Fall validated prime strategies third we the CW added all since risen 'XX positive is XX/X and across to of broadcast delivered trend its series series being to for new Inside include programming growth feature now also NFL, analysis CW demos. of Ratings as returning quickly consecutive our to programming which Belichick. implementing games Prime-time including will Entertainment unique upcoming Friday Lois has announced preview the new The lineup. We've Police in time schedule and which Bill weekend and or will Our quarter network, are legendary of the Superman Continuing a original May, season, the Nights and our game and mix shows, insights and [indiscernible] the family-friendly which 'XX moving the the

and Wildcard. trivial Raymond American Levar All and Simon, Burton by will and hosted popular Premiers include the New renewed pursuit, series, Scrabble we hosted by

of NASCAR of Xfinity NXT. be The double Basketball, featuring WWE Football that and Eleven Oregon header PAC-XX State CW announced Golf, State. broadcast and beginning August Washington will Football a XX, Series PAC-XX games Mark lineup with each ACC also including The We and joining football LIV our will eSports,

Additionally, and Arizona come. viewers broadcast the to Bowl. Dog the important of best believe exclusive to we attract We the is an advertisers the component acquired and will be Nexstar CW Sports remains home different to CW strategy already one in XXXX the XXXX. the that our than Snoop yet was clearly

Chicago, station As the X. additional additions our These business by the we profit XX biggest will side the said announced beginning have network. partner announced of of to our the previously, benefit of X become to footprint marking in from CW group, operating to big station and our Lafayette, us television bringing all addition our networks. September ledger. that CW on ownership households, side X generating have of Louisiana of XX, Affiliates benefit and stations U.S. affiliates continues over the additional company of Norfolk network Nexstar on station number of We the covering XX% station To all date, we of CW the

Turning to NewsNation.

be air Biden air of events. President recent cable race. former X, enabled of We successfully us We that the XX/X XXXX to President during making during the network schedule, and Trump of were dropping on ahead expanded out news to live a the on live when presidential June attempted announced which on the he history assasination news was

a build continues effort pay viewers up news prime to focused our Nielsen, According QX And NewsNation's a off. in that comparable re-branding business, to time over fact-based in launch operate. year. of 'XX following while we to role of leadership communities Importantly, journalism in were versus March XXX% network and the first total team's to the XXXX, well take QX on where of our continue supporting networks period are executing the we we

more the work benefited celebrated employees day a collections of of perform activities. to service community June, our or helping blood give we assemblies, Nexstar's we school Each This among public donation founding, Day half and trash or with Founder's by houses, participating. of charities community hygiene service preparation organizations than with employees meal X,XXX again kit backpack, building other XXX anniversary June paid The charity work. voluntary with on

we also community raised organizations. nearly addition, behalf $XXX,XXX of these In service on

On Interpublic and Johnson, Vice the of announced to our Board quarter corporate the Executive governance appointment of companies we President subject of to end, front, Group CFO Directors. of Ellen

will ESG invaluable be on you coupled member information of integral one marketing enhance of goals of and as the is with we advertising advertising providers world's as years. As for IPG advance executive our in to all served experience, she IPG her and many leading team oversees an business areas Nexstar the shareholder value. continue has expertise at which IPG's to many technology, industry know, to solutions, financial of and and execute extensive of company's and Ellen Her

independent X Ellen joins once members, October Ellen be and will be our to which Board Board women. join be back X of XX X, and will effective our will will

a me I Before turn make final let over comment. it to Mike,

We and national by have local of operating unique media our underpinned and assets. a scale business strong execution differentiated and model. cash-generative the

our Our operating pursue unmatched several financial as us. Nexstar support of attributes competitive strategy ahead the to growth provide strength leverage we with substantial and opportunities

by authorization. said, confidence of our is of over to underscored all share Finally, With future a in Board's our our $X.X let Mike. turn that repurchase me billion new call the recent approval

Michael Biard

and Perry, everyone. Thanks, good morning,

revenue on company CW offset stations all quarter. distribution billion we rate political. stations primarily was in subscriber of in in by delivered X.X% return The due revenue to of and due partner advertising XMVPD, grew $XXX driven to our the referenced, million, on $X.XX All-time contract Perry growth $X.XX which to growth the year to certain in revenue than attrition. escalators, to of and prior second increase more compared of the favorable net revenue quarter of annual billion As distribution net vMVPD our addition second to MVPD subscribers, record primarily the and quarter affiliations terms X.X% high renewals revenue,

the our and expanding Zooming on independent other over MVPDs on partner our Nexstar-owned out CW, affiliation some last completing CW certain of the tremendous the recent of distribution to and Nexstar CW distribution affiliation progress national removal our the low cycle, on including range, new terms, stations from YouTube stations for the NewsNation. and new renewal acquisitions. single-digit perspective, favorable the made subscribers the business TV reflecting networks, quarter of while the and and vMVPDs, in of our agreements Excluding distribution grew we network station MyNetwork in year, stations addition benefit TV launches last of

scale is testament power of All of this strategy. the our to a content, and

this our affiliations distribution range in know, stations. a revenues agreement an the CBS to you net single-digit high ours partner The with grew result, and our percentage quarter. And renew as As announced we

Turning to advertising.

QX prior a reduction offset which than advertising. XXXX increased sequentially year-over-year to in increase compared quarter. in advertising more the advertising quarter advertising, year-over-year reflecting in from X.X% in year. year-over-year a improved second the decline a Second revenue a to X% nonpolitical decline X.X% political Nonpolitical

far, nonpolitical So QX continue trends in XXXX, advertising improve sequentially. to

quarter single are slower impact down of pacing currently are [indiscernible] seeing the of all-in the with in a We pacing. digits third the rate quarter as the this Olympics versus second year-over-year the in we low decline

we be crowd to a political encouraged these impacted advertising through or continue market. expect are election advertising revenue. see day, and we non-political as we in trends, by October, increases displacement While out September of by to challenging some especially

which XXXX Turning political million the of year-over-year period. quarter, of generated our share expected year-to-date and that full political share estimate total year. consistent the We market teens, $XX increased of than same in million the the for in television was was to our when political. low spending In more by with million second $XX advertising market is double $XX we

there most is of intense Ballot Senate, from battle and an presidential revenue, House, the for is always of incrementally and Races competitive generate race advertising we both positive, our Initiatives, a when especially political Senate House. While control Gubernatorial

driving to course, both pass fundraising back the fundraising President galvanizing that in incremental Biden-Harris Vice political into Biden's Harris, ultimately and the place, President, meaningful Of decision advertising. existing seemingly kept will flow [indiscernible], parties

substantial to Our of continues opportunity, position the the to to in focused our opportunity. contested races with advertising political Nexstar revenue optimizing markets combined majority approach the maximize political representing scaled presence

The have we politics. live and coverage news #X to the Hill, distribute well comprehensive America's news comprehensive America's scale political produce and on reporting largest resources the as national inside most As political Beltway the our market, unique site company, broadcasting and local and NewsNation for as in debate

And engaging networks. and accelerated political and forward established XX/X has to news its as cover on cycle, election see mentioned, its with move demonstrated day of the continuing most the news plenty capacity programming breaking coverage. us journalism You of during to from first voters this we to to NewsNation bringing objective peers, look will Perry at impartial the continue any par news, week with

stations Murrow Nexstar of news partner News XX reflection from Digital a talent, Edward including overall Association Radio As our for regional Television newscast. coverage excellence, its recognition breaking the awards R. earned and journalists and

fact-based communities. including This our day every of stations enable to produce [indiscernible]. newsrooms standards Nexstar's develop even-handed NewsNation relationships with and us and trusted integrity independent audiences and maintain journalistic Our recognized and coverage balanced groups, at at is scale, and watchdog approach at our by high

In we our business each X on through of about advertising for recovery summary, political we revenue $X.X market remain the having generated cycles. over focused confident managing remain last in billion the and of the outlook

the the over have for of strong cash adjusted each we and of call With in it's incredible teams well remainder turn Lee and our review. accomplished financial free flow. continue plan pleasure adjusted Ann? delivering businesses, the Ann We against to Lee execute our that, to to my revenues, EBITDA

Lee Gliha

morning, the a activities. EBITDA details most the side, gave Thank along provide Mike, review adjusted flow, our and you, revenue of cash free good of I'll of with and you expenses, adjusted everyone. capital allocation a on review so Mike

Together, our expenses, The of increase well operating second severance decreased by expenses, offset by excluding SG&A as increased primarily due administrative direct expansion part amortization expenses in and NewsNation which in $X declined reduced X%. but transition due $XX $XX reliance the and broadcast not in for by by corporate various $X a in stations, of XX/X or digital direct The was operating million to to million direct and CW depreciation reduction expenses quarter operating rights as or and the news programming, expenses, by payments at at we million on QX, our SG&A adjusted by in included calculation million. EBITDA content syndicated primarily Included to are as news.

expense to calculation SG&A of direct CW, million our of in CW's EBITDA effectively operating in million of broadcast QX programming The included million timing continue year-over-year amortization $XX not stock $XXX and expense other second from 'XX, fees by compensation of noncash The $XX the as XXXX adjusted $XX of related grants but new of quarter programming and including expense administrative noncash million primarily $X total XXXX. part million by to compensation of is expenses, second the million, grants, is included Also expenses. million, increase due including quarter expenses. offset the was our $XX compared expenses corporate and declined the restricted of million the $XX legal reduce $XX in in to to in rights XXXX reduced we which to in

the the amount, related line distributions XX-Q. about in EBITDA programming million prior QX $XX costs, I information more release XXXX and due our million TV earnings reduced of moment this reduction cash $XX our Food our quarter. represents For a Food We free adjusted million schedules $XXX XX% depreciation programming ago. to prior that please QX in our of TV versus received CW's lower investments Network a XX% decrease expenses which $XXX rights" year included broadcast The accounted Please from and income related equity the in are primarily in flow note of described lower in adjusted million and this lower as "amortization Network, at the are in for The a in refer quarter, at which to CW to primarily was amortization definitions amount year item advertising reflects revenue. ownership from to

together improvement million XX.X% margin XXXX increase quarter represented This margin points XXXX consolidated EBITDA second adjusted the a QX of from EBITDA quarter of $XXX margin an improvements margin a all in to part it increase $XXX of the Putting XX%. from was net adjusted due $XX basis, in margin on million, XXX our of in year-over-year. an and distribution is basis million second

year. plan to $XX of for primarily second expenditure Second a quarter in capital decrease the quarter of CapEx was million last $XX compared to million reduced year, the a $X million due

quarter to quarter. applicable the million for Cash to rate million prior due year to higher $XXX the Second SOFR million from expense $XXX net was interest expense $XXX interest rates our floating in increased debt.

with cash in insurance of tax a primarily disposal obligations, $XXX million putting $XXX million compared XXXX and by XXXX, were net as of Second at stock second operating average year. XXXX, payments for higher $XX million generated from net million $XX pretax hand, shares was last were an the flow income quarter quarter operations of Payments for of together, million XXXX. proceeds million investing accretive Together comprised price $XXX reducing outstanding reflecting returned to recoveries in due we estimated $XX cash million in of cash dividends than $X software X.X%. assets of capitalized to cash quarter to free million to $XXX taxes expected And the in and shareholders, all of the adjusted this repurchase equity on million $X from consolidated compared year. versus $XXX.XX and last

Nexstar's down made outstanding as $XX at we payments quarterly the June slightly million. quarter for XXXX, amortization $X.X was billion, debt XX, of

balance at to with credit CW associated $XX agreement. included cash not cash Because designated we for $XXX our subsidiary, for leverage as was in Our CW. our related million of are million, calculation quarter losses of purposes an The The of unrestricted The the accounted CW end

June our first our As net X.XXx. of ratio covenant well only -- first covenant such, was and is at our XX, X.XXx, for which lien lien excluding Nexstar, XXXX, CW below

at net end. quarter excluding leverage total X.XXx for Nexstar, Our was CW

which average during XXXX. basis in we calculate As on X-year fall expect versus is leverage, an political typical to LTM years, we the

with political election As grows EBITDA advertising. adjusted year

value. commitment our up to the going questions. we go that move with our our creating consistent in question? first for deploy the cash to you can we call As strategically to I'm open continue shareholder Operator, highest that, with is And forward, to manner a

Operator

Benjamin is with question Bank. Deutsche first from Our Salt

Unknown Analyst

advertising. start do I updated more election local the what wanted last you in then particular, of down core political your just to you and into activity can up what what thoughts I And follow changes the you bit the a the compared the on expecting as in think in you were drove? maybe that seeing on get the drill presidential and on and And advertising side that to performance? Can given business call? on wanted were you to national that,

Perry Sook

would political their would year which took a XXXX, Sure. I independently as I'll the are and saw until we're increase voting projection million early note yesterday, start over I XXXX. political. represent billion and ahead with than we're less to $XXX that the up general advanced bookings, less today, that raised fundraising, for $XX.X starts the some states. our for days VIA everything general days plan that our spending XX.X% than of in XX ahead of election expectations. our by the XX last place of But until to in election,

And intensity going in political won't so to books line we're fall to post money not because in adjust really forecast on Day. our intensity start or Labor the really and -- increase a until fall bottom to

were fond I I betting saying over. man, often as of a But bet if I'd probably the

As if estate, advertising, quarter. packaged gaming, and core to real the home it banks, if even betting you were advertising, our for the look on and at lagging will, up furniture, goods, entertainment, categories, automotive all sports relates were quarter I repair

shift to in there's is in that the no spending. discretionary leading and slowdown spending think a the slowdown the question in I perhaps discretionary economy

advertising or QX we we'll expect crowd November to pacing that is in purpose we than where QX that comments, advertisers get the inventory. some X do our projections closer with Mike better out see same compete encouraged as So for as QX. his But general we in we finished said as political are

planned budgeted for And that. so and we

response better it again, quarter sticky think, the the second I is more was obviously, of But is therefore, than was purchasing pacing again, pacing more consumer. which local, for and dealing -- on third in was the volatile down, is more and than ability is quarter. weaker with discretionary relationship-driven. And our Direct core national

revenue, and all both see So our prior all up we QX. double were and and planned. digital happy services And substantially of from pacing our were ahead, from as digital direct about year QX national accounts in revenue in accounts advertising digits in, are that it's ahead to

in think very question. that's I answer way, general So to a your the hopefully

Operator

Benchmark. next is Our with from Dan question Kurnos

Daniel Kurnos

quickly quarter. the appreciate just subs. in color on Maybe I the

the NewsNation you to just the Just situation. be how us the obviously, CW then or unique retrans thoughts your Perry think of heard to And going have given the progress guys' anything improvements I clearly, some helpful guys on any given updated macro sort made on certainly guess, trajectory can you engagement? give just about maybe, Just side? and the and we and upfront on ratings would Mike, evolution And from everything CPMs trends we've backdrop. understanding too color there forward the should

Michael Biard

marketplace. subs, So than we've in materially I not past, rest the think going to we're the on pace differently as the said of

So new anything really to I have don't add there.

On given the upfront, the a growth, in positive to additional all of amount we're terms the upfront of particularly inventory in, market. bringing that

competitors in the there interest, differentiated and you small the very our are of to this Multicast compared CW is going going the growth a was it's with. attracted And significant Networks. portfolio our think tell. the only year would groups second is story to to our Nexstar what offering linear only And from fact, sports what Sports, Entertainment, a to consolidated I with one with market CW expect, very while NewsNation, our of market saw others, As take team out we're

Football, of are Golf, Xfinity at Football advertisers coveted assets NASCAR XXX hours as programming, and we we'll much The the coming including grow LIV the in the upfront series. WWE NXT Our CW, to and Basketball, at sports sports be to Racing attractive our in ACC PAC-XX continue year, live over

beginning environment content think we're well. is features tell story very we around with are a independent one is a that provide I much as advertisers news with our the And and time oriented news in, difficult than left news might in that are, NewsNation of brand-safe organizations a live and great have larger that advertisers to able that all So the growing resonate context. a to can compelling with right

Operator

question Jason from is next Our Bazinet Citi. with

Jason Bazinet

sports just that The about is CW had that you Or will Do have to pivot to sports where do north follow-up the actually time? of a on you hours that more or XXX like be? want you continue I think at into feel XXX over CW. you hours

Perry Sook

I we'll it's them. will look the we at more start, with good in are, that think increased who a continue but always and is can happy right? are to we rights offer and to we're the holders to better, So reach marketplace, continue broadcast where be opportunities, particularly for attracted

you we've I and we've reach products the seeking rights that can there rights that think when look at theme the a holders platform them. broader the there's of offer consistent broadcast attracted, attracted, bigger that

We in future. expect that more the of we'll see

Jason Bazinet

losses, based 'XX CW, made, on that the still for progress sort on plan? track The you're still the that then reducing breakeven? And based on you've of XQ Is

Perry Sook

the plan. is still It

Operator

Huber with is Huber Partners. Research Craig Our next from question

Craig Huber

your quarter? stations? the a seeing sense talk quarter, for about trend trend does little the versus that that TV out third bit first second advertising, here the for you're the What's you your quarter? How Can there national year-over-year in

Lee Gliha

it terms where of I think rate the in I first are currently, first rate pacing local line decline. side. the quarters is kind of our still decline side, slightly on the the in of second better a was of and quarter the it in slightly third in And where in -- quarter. than second expectations higher we're national was mean, was than on with don't seeing we're It is for the quarter

Craig Huber

account, think, political crowding does low this much same, I the revenue mean okay. then deeper as out about the you mentioned into pacings, that? -- single for not digits. into is ad It's does quarter, that for I assume or down that get And take I we current quarter

Lee Gliha

includes little of vast the into crowd majority It October in crowd the in third the happens fourth consideration infact quarter takes out of September, but because, quarter. the a bit out

Craig Huber

your guess, quarter... down September, Is was formally I'm on here digits, low than risk asking a booked in going I be to not -- that get that's that revenue the single now. booked the books worse right could just as it that's But there ad

Lee Gliha

If on continues which is But to a be further look based mentioned, -- I on that crowd-out at trade-off. if digits, political we're for core. quarter. increase mean Yes. includes a as have our pacing the political it's what third the we there could for our low could impact down Yes, expectations current expand. single Perry modeling,

Perry Sook

just effect that, will happen and across out X X crowd here. I'll in add XX states primarily we or to states, operate

crowd every will market not So effect same receive from the the out.

-- I So think right. is Ann exactly but Lee

up, it's can out inventory revenue is As crowd the political goes core and it fungible. finite

be would we So relatively there. indifferent

we revenue think generally I our doing probably make -- more the political will general-purpose because driving of advertising so. for privilege if political up pay

Craig Huber

quarter? what questions, quick two can more third One, is quantify have the was I guys. just Auto, the for and quarter your that outlook you how much down in

Lee Gliha

on Auto quarter down it a but the tell mean from so it project in digits. down you was is more We little pacing -- by-category mid-single a second. a the far bit what it's don't third I I'll Yes. in basis, was than perspective,

Craig Huber

would, percent television what of or stations your Can final air you if a the My over question. your on viewers nowadays? me Okay. ballpark, give you

Lee Gliha

So I of mean, variety air. viewership that look, external resources there's about can over teens content -- could a in I percentage low -- -- that. is the tell the you it's It's you consuming you of usually

Operator

question next with is from Cahall Steven Our Wells Fargo.

Steven Cahall

about do foresee the between given taking what CW political, adjusted There's how in I added well. reverse you opportunities renewal distribution over and affiliates with towards know Paramount. move fixed on the the I EBITDA to you're net tracking the range? Or risks for CW structures. guess terms And you you've of that as guidance announced any on that flexible management guess, year-to-date you more you've based and improving I trying as any to well, some in seen some affiliates industry to then Harry compensation expense the year? So been discussions the

I'm So that complex asking specifically. you to renewal, comment on a was not that one sure

And missed flexibility? cash comp tax of finally, trends If would CapEx, just you sorry But that's possible. cash I in of then Is for if kind forward? to but expectations the how rough reverse do these, of increased interest, any year? love going get the some see Lee Ann, there kind

Lee Gliha

Okay.

the then and the I'll question first to the guidance. on So question, just Mike turn it on second for

we said fourth the the guidance. point. that the guidance results, when guys of year that We in beginning long good -- a not of took at that did things but you our As of updating list were we in the planning disclosure that that we at quarter know established terms guidance, we we we established let into provide on with consideration

we are I'll Mike update to to current turn talk So providing not our that's about guidance that any to reverse. it process.

Michael Biard

Yes, sure.

On what the to aspect line. And we is think, focus what of really affiliation on a I bottom that variable, of X -- the negotiation. is calls, we renewals the said, reiterate fixed couple multifaceted last

rather into So will growth the get revenues. the fees where sort rate distribution the rate continue the relative of we of of our moderating than growth bottom to any of line of address I in a see to specifics. of affiliation

the CW one larger content is CW to networks exclusive expect reflected going more we good will feel to negotiations. the the bringing we've distinguish of those be direction about that those some the that affiliates To others We is in and feel factor and the our from more doing I that the those positive negotiations continue about forward. certainly extent say, our of completed. to The will are content opposite,

Lee Gliha

that we've question curve an our just just cash I interest every what last then basically update CapEx guidance perspective, I our think for in your before mean, model to And we cash regard. and on then you update we'll is the about forward look at from mentioned SOFR. -- for taxes, interest, quarter, And

Our $XXX million expected forward I'll you the around is just curve the tell on exit to expense, based current just be -- for year.

On full midpoint our think are million around CapEx perspective, from tax at $XXX perspective, range a unfortunately. cash had a And I the a $XXX of beginning the year the that was then million, $XXX of we million. we provided -- taxpayer,

of like year, sort half our to a taxes think over way DNA a XX.X% cheap you tax at look we rate, about So about be it, just our to the course at deductible. is of would couple the of of codes give a on think I -- the

are of to partners. XX% losses back add us, to not to The eligible they're CW allocable need You that our

have perspective, generally, very in on this cash million tax. adjustments additional to a don't in that positive timing second distributed and And try really of It's cash really fourth the X quarter. just be the to We we paid. to have in $XX then of are we've From we over a evenly third that X have have and we quarter, in neighborhood the the somewhere states our first before, really tax tax of few kind that tax pay the said and the the payments then period. are that much then

helpful. hopefully, So that's

Operator

with is Barrington Jim Goss Research. next Our question from

James Goss

right. All

terms increased they by usually non-owned affiliates. giving content of welcomed they and been able content CW some have up sell assume, the additional slots the The Even that themselves. is though In I might sports, or the be to some might

to you're comment getting way if you in is feature incremental also in charging ad these or and can some with? wondering at these looked, PAC-XX, state. how PAC-XX main LIV the conference? also I'm are where especially you you're -- Or forward regard reduced -- affiliations it Is Oregon flats are and two the the split State adding, paid rebuilding you're going revenues things. the the was And time with teams I the they to those on that you might if programming of and other look the last Washington in

Michael Biard

that. take I'll

last is with currently me them. State. really State PAC-XX up and the which of the conference is And to the yes, future one. Oregon your is Let start easiest The Washington just question,

of don't any information you I I to the but on that. offer around have think lot options movement inside with conferences, a college the table on there's

years. of it's weekends them. our as for CW Yes, any any had our We've to time we've the additional incremental and negotiations terms to with is In content first fair affiliates. the clearing all of that the difficulty the well by really last X.X added received programming dayparts sports say not for

into terms that a to in of very obviously, of Both national fees revenue is and advertising to continue of and affiliation our of we that. positive both. a combination of generate. in the in affiliation advertising we the the allocation reception So see coming terms network terms fees,

missed feel question, if answered So your follow I think anything, up. but to I've free I've

Perry Sook

the bulk that that's The of days, WWE XX aired I Fall the ACC think haven't all very note, about PAC-XX, schedule, in and coming the important additions excited NXT, Jim, to expanded and it's Xfinity the sports here yet, next we're with CW.

tough been they for point We've the additional terms weekend proof to by additional I sports we. more are in are the over of now in we're arena audience a coming pleased inventory, in good obviously, perspective, willing the an a albeit to about very for those and airwaves. And as monetizing a see able had anti talking that upfront what's results. year, inventory be we affiliates market, were it's but with advertising -- mean than when from compete and of able about finally to then this

you'll are part distributors. fees package impact our stations discussions of able as distribution the But on again, become think to affiliate the with our market see our as as O&Os that in I sports take well to

going direction, in it's So the that getting we're we've -- part on programming talking excited year. circle a the virtuous But of about better finally the for obviously. this it's right about forward-looking, very air the been but

James Goss

discuss And NewsNation with CW, and ultimate value and one, Last might from symbiotic the NewsNation interplay gain wondering especially any to you you programming NewsNation The some that might steam? potential you continues draw political benefit have Great. also might objectives NewsNation about Okay. create as any it to CW where I'm can also, economic sense and in CW? between attention

Perry Sook

available NewsNation, mean, I programming we to I have made political network. the CW news or Sure. think marquee programming from that

large much that and did the on scale and event base, The to for cleared made on eager We Debate, affiliate first the [indiscernible] fall. The we available a were to that have was like to surprise, programming Republican live it the of last air. they CW on that network example was but Presidential my hungry

The cleared a and is base The of morning, it to we CW affiliate show XX% or the Sunday take representing give on think, on I country, make affiliates percent. Hill, available [indiscernible] Our Chris Sunday which on a basis, same-day

in Super uptake to using our I will at what on available body, launch don't CW. a as we've I we resources network live toward I backward selected that and the that and very lens XXX% stations news, national up but general we The both on us think election make see them on I have hour operated through then and hour CW to the our and and election, think half affiliate for would the of past. local coverage it the to a news sell owned So than less to and or news you'll think be Tuesday, seen to large, well have, an inventory in do and daily looking cash that a coverage, a tough cast it look expect the programming of time local we look of similar in real local at they national put a of. cast put news give primary news

a owned said when broadcasters over ownership by operation be we the will broadcasters. So and of the this for majority network took we network,

I and a we anything when to affiliate day at would date cast on look that? Mike, our know, you sure our make so if sense not lens. any add And regular to have NewsNation ultimately, through the basis. don't station I'm stations it

Michael Biard

think No, I that's right.

they've that the I you those a two can fashion news Perry. just very has that and at out there think successful network broadcast married for another articulated, cable you a network very in not look that reasons network, and

offer look to news breaking breaking those events. to live viewers NewsNation I that from CW be the add case, affiliated weekend we cover recent in our to might The the coming affiliates to of with the when the right, stations, at breaking the CW the where news, as opportunity of only some did scenario we and news opportunity will have other show is benefit going had elsewhere

Operator

Thank you. hand call back closing this like further to any for Sook, time. There to are CEO, at Perry the questions no I'd comments.

Perry Sook

very Thank much, operator. you

financial of the sheet while business, and to strong framework, flow with leverage. enable levels low maintaining our our strong Nexstar continues continued strong combined cash balance deliver to cash-generative Our nature of free

look long-term outsized long-term while the the actions required ahead, delivering results. our shareholders. in today, after again forward taking to on Looking everyone, to with third continue when and necessary our returns will strategies, of Nexstar, right to for execute the making against we election investments Thanks, we our to speaking report shape growth you future and the joining us and we November, quarter

Operator

conference. today's concludes This

this at disconnect your participation. for you You lines Thank time. may your

Nexstar Media (NXST) 8 Aug 242024 Q2 Earnings call transcript