Nexstar Broadcasting Increases Quarterly Cash Dividend by 26.3 Percent
January 22 2016 - 7:04AM
Business Wire
Declares Quarterly Cash Dividend of $0.24
Per Share
Increase Marks Third Annual Consecutive Rise
in Cash Dividend and 100% Compound Annual Growth in Payout Level
Since Initiation of Cash Dividend in 2013
Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today
that its Board of Directors approved a 26.3 percent increase in the
quarterly cash dividend to $0.24 per share of its Class A common
stock beginning with the dividend declared for the first quarter of
2016. The dividend is payable on Friday, February 26, 2016, to
shareholders of record on Friday, February 12, 2016.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar Broadcasting Group, Inc., commented, “Nexstar’s third
consecutive annual increase in the cash dividend reflects the
Board’s confidence in our free cash flow growth and our commitment
to create value for shareholders through return of capital
initiatives. In this regard, in September 2015 we also announced
that pursuant to its authorization to repurchase up to $100 million
of Nexstar shares, the Company opportunistically repurchased
approximately one million shares at an average purchase price of
approximately $48.10 per share. As such, our total return of
capital to shareholders in 2015 amounted to approximately $72
million or approximately $2.25 per share.
“We believe our return of capital highlights our confidence in
the Company’s long-term prospects based on visible organic and
M&A-related growth opportunities. At the same time, our growing
free cash flow which will amount to approximately $482 million, or
average pro-forma free cash flow of approximately $7.85 per share
per year, in the 2015/2016 cycle affords us the financial
flexibility to continue pursuing additional station and digital
media accretive transactions, while simultaneously reducing
leverage and returning capital to shareholders.
“We expect Nexstar to report record operating results for 2015,
marking the fourth consecutive year of record results, and with the
application of our operating approach which combines innovation and
discipline, we remain confident that 2016 and beyond will extend
our success in generating record free cash flow.”
While the Company intends to pay regular quarterly cash
dividends for the foreseeable future, all subsequent dividends will
be reviewed quarterly and declared by the Board of Directors at its
discretion.
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group is a leading diversified media
company that leverages localism to bring new services and value to
consumers and advertisers through its traditional media, digital
and mobile media platforms. Nexstar owns, operates, programs or
provides sales and other services to 106 television stations and
related digital multicast signals reaching 57 markets or
approximately 17.3% of all U.S. television households. Nexstar’s
portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV,
The CW, Telemundo, Bounce TV, Me-TV, LATV, Estrella, This TV,
Weather Nation Utah, Movies! and News/Weather. Nexstar’s community
portal websites offer additional hyper-local content and verticals
for consumers and advertisers, allowing audiences to choose where,
when and how they access content while creating new revenue
opportunities.
Pro-forma for the completion of all announced transactions
Nexstar will own, operate, program or provide sales and other
services to 114 television stations and related digital multicast
signals reaching 59 markets or approximately 18% of all U.S.
television households.
Forward-Looking Statements
This news release includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "anticipates," "could," or
similar expressions. For these statements, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
The forward-looking statements contained in this news release,
concerning, among other things, changes in net revenue, cash flow
and operating expenses, involve risks and uncertainties, and are
subject to change based on various important factors, including the
impact of changes in national and regional economies, our ability
to service and refinance our outstanding debt, successful
integration of acquired television stations (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets served by the Company,
volatility in programming costs, the effects of governmental
regulation of broadcasting, industry consolidation, technological
developments and major world news events. Unless required by law,
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this news
release might not occur. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. For more details on factors that could affect
these expectations, please see our filings with the Securities and
Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20160122005064/en/
Nexstar Broadcasting Group, Inc.Thomas E. CarterChief Financial
Officer972/373-8800orJCIRJoseph Jaffoni, Jennifer
Neuman212/835-8500 or nxst@jcir.com
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