The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Business Operations
As of March 31, 2016, Nexstar Broadcasting Group, Inc. and its wholly-owned subsidiaries (“Nexstar”) owned, operated, programmed or provided sales and other services to 104 full power television stations, including those owned by variable interest entities (“VIEs”), in 62 markets in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Michigan, Missouri, Montana, Nevada, New York, North Dakota, Pennsylvania, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia and Wisconsin. The stations are affiliates of ABC, NBC, FOX, CBS, The CW, MyNetworkTV and other broadcast television networks. Through various local service agreements, Nexstar provided sales, programming and other services to 30 full power television stations owned and/or operated by independent third parties.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The Condensed Consolidated Financial Statements include the accounts of Nexstar and the accounts of independently-owned VIEs
for which Nexstar is the primary beneficiary. Nexstar and the consolidated VIEs are collectively referred to as the “Company.” Noncontrolling interests represent the VIE owners’ share of the equity in the consolidated VIEs and are presented as a component separate from Nexstar Broadcasting Group, Inc. stockholders’ equity. All intercompany account balances and transactions have been eliminated in consolidation. Nexstar management evaluates each arrangement that may include variable interests and determines the need to consolidate an entity where it determines Nexstar is the primary beneficiary of a VIE in accordance with related authoritative literature and interpretive guidance.
The following are assets of consolidated VIEs that are not available to settle the obligations of Nexstar and liabilities of consolidated VIEs for which their creditors do not have recourse to the general credit of Nexstar (in thousands):
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
Current assets
|
|
$
|
3,573
|
|
|
$
|
2,910
|
|
Property and equipment, net
|
|
|
3,865
|
|
|
|
4,004
|
|
Goodwill
|
|
|
17,875
|
|
|
|
18,182
|
|
FCC licenses
|
|
|
73,561
|
|
|
|
74,312
|
|
Other intangible assets, net
|
|
|
19,670
|
|
|
|
20,112
|
|
Other noncurrent assets, net
|
|
|
227
|
|
|
|
389
|
|
Total assets
|
|
|
118,771
|
|
|
|
119,909
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
13,174
|
|
|
|
14,288
|
|
Noncurrent liabilities
|
|
|
26,534
|
|
|
|
26,427
|
|
Total liabilities
|
|
$
|
39,708
|
|
|
$
|
40,715
|
|
Liquidity
Nexstar is highly leveraged, which makes it vulnerable to changes in general economic conditions. Nexstar’s ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond Nexstar’s control.
5
Interim Financial Statements
The Condensed Consolidated Financial Statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 are unaudited. However, in the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related Notes included in Nexstar’s Annual Report on Form 10-K for the year ended December 31, 2015. The balance sheet as of December 31, 2015 has been derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.
Variable Interest Entities
Nexstar may determine that an entity is a VIE as a result of local service agreements entered into with the owner-operator of an entity. The term local service agreement generally refers to a contract between two separately owned television stations serving the same market, whereby the owner-operator of one station contracts with the owner-operator of the other station to provide it with administrative, sales and other services required for the operation of its station. Nevertheless, the owner-operator of each station retains control and responsibility for the operation of its station, including ultimate responsibility over all programming broadcast on its station. A local service agreement can be (1) a time brokerage agreement (“TBA”) which allows Nexstar to program most of a station’s broadcast time, sell the station’s advertising time and retain the advertising revenue generated in exchange for monthly payments, based on the station’s monthly operating expenses, (2) a shared services agreement (“SSA”) which allows the Nexstar station in the market to provide services including news production, technical maintenance and security, in exchange for Nexstar’s right to receive certain payments as described in the SSA, or (3) a joint sales agreement (“JSA”) which permits Nexstar to sell certain of the station’s advertising time and retain a percentage of the related revenue, as described in the JSA. As of January 1, 2016, the Company adopted ASU No. 2015-02,
Consolidation (Topic 810) - Amendments to the Consolidation Analysis
, which did not change the consolidation status of any of the Company’s VIEs.
Consolidated VIEs
Mission Broadcasting, Inc. (“Mission”), Marshall Broadcasting Group, Inc. (“Marshall”), White Knight Broadcasting (“White Knight”) and Parker Broadcasting of Colorado, LLC (“Parker”) are consolidated by Nexstar because Nexstar is deemed under U.S. GAAP to have controlling financial interests in these entities for financial reporting purposes as a result of (1) local service agreements Nexstar has with the stations owned by these entities, (2) Nexstar’s guarantees of the obligations incurred under Mission’s and Marshall’s senior secured credit facilities (see Note 6), (3) Nexstar having power over significant activities affecting these entities’ economic performance, including budgeting for advertising revenue, certain advertising sales and, for Mission, White Knight and Parker, hiring and firing of sales force personnel and (4) purchase options granted by Mission and White Knight which permit Nexstar to acquire the assets and assume the liabilities of each Mission or White Knight station, subject to Federal Communications Commission (“FCC”) consent.
The following table summarizes the various local service agreements Nexstar had in effect as of March 31, 2016 with Mission, Marshall, Parker and White Knight:
Service Agreements
|
|
Owner
|
|
Full Power Stations
|
TBA Only
|
|
Mission
|
|
WFXP and KHMT
|
|
|
Parker
|
|
KFQX
|
SSA & JSA
|
|
Mission
|
|
KJTL, KLRT, KASN, KOLR, KCIT, KAMC, KRBC, KSAN, WUTR, WAWV, WYOU, KODE, WTVO, KTVE, WTVW and WVNY
|
|
|
Marshall
|
|
KLJB, KPEJ and KMSS
|
|
|
White Knight
|
|
WVLA, KFXK, KSHV
|
Nexstar’s ability to receive cash from Mission, Marshall, Parker and White Knight is governed by the local service agreements. Under these agreements, Nexstar has received substantially all of the consolidated VIEs’ available cash, after satisfaction of operating costs and debt obligations. Nexstar anticipates it will continue to receive substantially all of the consolidated VIEs’ available cash, after satisfaction of operating costs and debt obligations. In compliance with FCC regulations for all the parties, Mission, Marshall, Parker and White Knight maintain complete responsibility for and control over programming, finances, personnel and operation of their stations.
6
The carrying amounts and classification of the assets and liabilities of the VIEs which have been included in the
Condensed
Consolidated Balance Sheets were as follows (in thousands):
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,045
|
|
|
$
|
6,137
|
|
Accounts receivable, net
|
|
|
20,089
|
|
|
|
16,400
|
|
Prepaid expenses and other current assets
|
|
|
2,867
|
|
|
|
3,460
|
|
Total current assets
|
|
|
25,001
|
|
|
|
25,997
|
|
Property and equipment, net
|
|
|
28,894
|
|
|
|
29,681
|
|
Goodwill
|
|
|
69,518
|
|
|
|
69,825
|
|
FCC licenses
|
|
|
73,561
|
|
|
|
74,312
|
|
Other intangible assets, net
|
|
|
56,606
|
|
|
|
58,053
|
|
Other noncurrent assets, net
|
|
|
20,874
|
|
|
|
22,572
|
|
Total assets
|
|
$
|
274,454
|
|
|
$
|
280,440
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of debt
|
|
$
|
7,435
|
|
|
$
|
6,985
|
|
Interest payable
|
|
|
28
|
|
|
|
28
|
|
Other current liabilities
|
|
|
13,174
|
|
|
|
14,288
|
|
Total current liabilities
|
|
|
20,637
|
|
|
|
21,301
|
|
Debt
|
|
|
274,220
|
|
|
|
276,131
|
|
Other noncurrent liabilities
|
|
|
26,534
|
|
|
|
26,427
|
|
Total liabilities
|
|
$
|
321,391
|
|
|
$
|
323,859
|
|
Non-Consolidated VIEs
Nexstar has an outsourcing agreement with Cunningham Broadcasting Corporation (“Cunningham”), which continues through December 31, 2017. Under the outsourcing agreement, Nexstar provides certain engineering, production, sales and administrative services for WYZZ, the FOX affiliate in the Peoria, Illinois market, through WMBD, the Nexstar television station in that market. During the term of the outsourcing agreement, Nexstar retains the broadcasting revenue and related expenses of WYZZ and is obligated to pay a monthly fee based on the combined operating cash flow of WMBD and WYZZ, as defined in the agreement.
In connection with a proposed acquisition of four full power television stations from West Virginia Media Holdings, LLC (“WVMH”), Nexstar began providing programming and sales services to WVMH stations effective December 1, 2015. Pursuant to the terms of the TBA with WVMH, Nexstar will pay an aggregate base fee of $7.5 million in equal monthly payments from the effective date through the final closing of the proposed acquisition which Nexstar projects to occur at the end of 2016. In the event that the proposed acquisition is not consummated for reasons beyond the control of Nexstar and WVMH, the TBA will terminate no later than June 30, 2017. See Note 3 for additional information.
Nexstar has determined that it has variable interests in WYZZ and the stations owned by WVMH. Nexstar has evaluated its arrangements with Cunningham and WVMH and has determined that it is not the primary beneficiary of the variable interests in these stations because it does not have the ultimate power to direct the activities that most significantly impact the stations’ economic performance, which we define as developing the annual operating budget, programming and oversight and control of sales management personnel. Therefore, Nexstar has not consolidated these stations under authoritative guidance related to the consolidation of VIEs. Under the local service agreements for WYZZ and stations owned by WVMH, Nexstar pays for certain operating expenses, and therefore may have unlimited exposure to any potential operating losses. Nexstar’s management believes that Nexstar’s minimum exposure to loss under the WYZZ and WVMH agreements consists of the fees paid to Cunningham and WVMH. Additionally, Nexstar indemnifies the owners of WYZZ and WVMH from and against all liability and claims arising out of or resulting from its activities, acts or omissions in connection with the respective agreements. The maximum potential amount of future payments Nexstar could be required to make for such indemnification is undeterminable at this time.
As of March 31, 2016 and December 31, 2015, Nexstar had balances in accounts payable of $1.2 million and $0.8 million, respectively, for fees under these arrangements and had receivables for advertising aired on these stations of $5.2 million and $1.0 million, respectively. Fees incurred under these arrangements of $1.2 million and $0.1 million were included in direct operating expenses in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2016 and 2015, respectively.
7
Financial Instruments
The carrying amounts of cash and cash equivalents, accounts receivable, broadcast rights, accounts payable, broadcast rights payable and accrued expenses approximate fair value due to their short-term nature. See Note 6 for fair value disclosures related to the Company’s debt.
Income Per Share
Basic income per share is computed by dividing the net income attributable to Nexstar by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed using the weighted-average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares are calculated using the treasury stock method. They consist of stock options and restricted stock units outstanding during the period and reflect the potential dilution that could occur if common stock were issued upon exercise of stock options and vesting of restricted stock units. The following table shows the amounts used in computing the Company’s diluted shares (in thousands):
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
Weighted average shares outstanding - basic
|
|
|
30,658
|
|
|
|
31,196
|
|
Dilutive effect of equity incentive plan instruments
|
|
|
880
|
|
|
|
1,060
|
|
Weighted average shares outstanding - diluted
|
|
|
31,538
|
|
|
|
32,256
|
|
The Company has outstanding stock options and unvested restricted stock units to acquire 920,000 and 1,043,000 weighted average shares of common stock for the three months ended March 31, 2016 and 2015, respectively, the effects of which were excluded from the calculation of diluted income per share, as their inclusion would have been anti-dilutive for the periods presented.
Income Taxes
The Company expects to be able to utilize the excess tax benefits related to stock option exercises that occurred in 2013 during the 2016 tax year. This resulted in a recognition of $13.2 million of deferred tax assets through accumulated paid in capital during the three months ended March 31, 2016.
Basis of Presentation
Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or stockholders’ equity as previously reported.
Recent Accounting Pronouncements
In May 2014, the FASB issued ASU No. 2014-09,
Revenue from Contracts with Customers (Topic 606)
, which updates the accounting guidance on revenue recognition. This standard is intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices and improve disclosure requirements. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. Transition to the new guidance may be done using either a full or modified retrospective method. The Company is currently evaluating the impact of the provisions of the accounting standard update.
In April 2015, the FASB issued ASU 2015-05,
Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement
(ASU 2015-05). ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes software. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s service contracts. The Company has applied the change in accounting prospectively as of January 1, 2016. The change in accounting principle did not have a significant impact on the Company’s results of operations, cash flows or stockholders’ equity.
In February 2016, the FASB issued ASU No. 2016-02,
Leases (Topic 842)
(ASU 2016-02). The new guidance requires the recording of assets and liabilities arising from leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The new guidance is expected to provide transparency of information and comparability among organizations. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the provisions of the accounting standard update.
8
In March 2016, the FASB issued ASU No. 2016-07,
Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of
Accounting
(
ASU 2016-07). The purpose of the amendment eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust t
he investment, results of operations, and retained earnings retroactively on a step-by step basis as if the equity method had been in effect during all previous periods that the investment had been held.
T
he amendments in ASU 2016-07 are effective for inte
rim and annual reporting periods beginning after December 15, 2016. The Company
does not expect the implementation of this standard to have a material impact on its financial position or results of operations
.
In March 2016, the FASB issued ASU No. 2016-08,
Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations
(ASU 2016-08). The purpose of ASU 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. The amendments in ASU 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the provisions of the accounting standard update.
In March 2016, the FASB issued ASU No. 2016-09,
Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
(ASU 2016-09). The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the impact of the provisions of the accounting standard update.
9
3. Acquisitions
and Dispositions
WVMH
On November 16, 2015, Nexstar entered into a definitive agreement to acquire the assets of four CBS and NBC full power television stations from WVMH for $130.0 million in cash, subject to adjustments for working capital. The stations affiliated with CBS are WOWK in the Charleston-Huntington, West Virginia market, WTRF in the Wheeling, West Virginia-Steubenville, Ohio market and WVNS in the Bluefield-Beckley-Oak Hill, West Virginia market. WBOY in the Clarksburg-Weston, West Virginia market is affiliated with NBC. The acquisition will allow Nexstar entrance into these markets. Nexstar began providing programming and sales services to these stations pursuant to TBAs effective December 1, 2015 which will terminate upon completion of the acquisition. If the purchase cannot be completed for reasons beyond the control of Nexstar and the seller, the TBA will terminate no later than June 30, 2017. As discussed in Note 2, Nexstar is not the primary beneficiary of the variable interests in WVMH’s stations. Therefore, Nexstar has not consolidated these stations under authoritative guidance related to the consolidation of VIEs.
On January 4, 2016, Nexstar completed the first closing of the transaction and acquired the stations’ assets excluding certain transmission equipment, the FCC licenses and network affiliation agreements for $65.0 million, including a deposit paid upon signing the purchase agreement of $6.5 million, all funded through a combination of cash on hand and borrowings under Nexstar’s revolving credit facility (See Note 6).
Subject to final determination, which is expected to occur within twelve months of the acquisition date, the provisional fair values of the assets acquired and liabilities assumed in the first closing are as follows (in thousands):
Accounts receivable
|
|
$
|
438
|
|
Prepaid expenses and other current assets
|
|
|
114
|
|
Property and equipment
|
|
|
18,362
|
|
Other intangible assets
|
|
|
3,308
|
|
Total assets acquired at first closing
|
|
|
22,222
|
|
Less: Accounts payable and accrued expenses
|
|
|
(623
|
)
|
Less: Other noncurrent liabilities
|
|
|
(307
|
)
|
Net assets acquired at first closing
|
|
|
21,292
|
|
Deposit on second closing
|
|
|
43,672
|
|
Total paid at first closing
|
|
$
|
64,964
|
|
Other intangible assets are amortized over an estimated weighted average useful life of three years.
The proposed acquisition allows Nexstar to return the assets acquired in the first closing to WVMH if the second closing cannot be completed for reasons beyond the control of Nexstar and WVMH. Since not all assets needed to operate the stations were acquired in January 2016 and due to the possibility of termination of the TBA to utilize the remaining assets, the first closing does not represent an acquisition of a business. Thus, the excess of total payments in the first closing over the provisional fair values of the assets acquired and liabilities assumed was considered a deposit.
The remaining purchase price of $65.0 million is expected to be funded through cash generated from operations prior to the second closing and borrowings under Nexstar’s senior secured credit facility which is projected to occur at the end of 2016. The acquisition is subject to FCC approval and other customary conditions. Transaction costs relating to this proposed acquisition, including legal and professional fees of $0.1 million, were expensed as incurred during the three months ended March 31, 2016.
Reiten
On February 1, 2016, Nexstar completed the acquisition of the assets of four full power television stations from Reiten Television, Inc. (“Reiten”) for $44.0 million in cash, subject to adjustments for working capital, funded by a combination of cash on hand and borrowings under Nexstar’s revolving credit facility (See Note 6). The purchase price includes a $2.2 million deposit paid by Nexstar upon signing the purchase agreement in September 2015. The stations, all affiliated with CBS, are KXMC, KXMB, KXMA and KXMD in the Minot-Bismarck-Dickinson, North Dakota market. KXMB, KXMA and KXMD are satellite stations of KXMC. This acquisition allows Nexstar entrance into this market. Transaction costs relating to this acquisition, including legal and professional fees of $0.1 million, were expensed as incurred during the three months ended March 31, 2016.
10
Subject to final determination,
which is expected to occur with
in twelve months of the acquisition date,
t
he
provisional
fair values of the assets acquired and liabilities assumed in the acquisition are as follows (in thousands):
Broadcast rights
|
|
$
|
13
|
|
Property and equipment
|
|
|
8,175
|
|
FCC licenses
|
|
|
9,779
|
|
Network affiliation agreements
|
|
|
16,084
|
|
Other intangible assets
|
|
|
2,051
|
|
Goodwill
|
|
|
7,911
|
|
Total assets acquired
|
|
|
44,013
|
|
Less: Broadcast rights payable
|
|
|
(13
|
)
|
Less: Accrued expenses
|
|
|
(2
|
)
|
Net assets acquired
|
|
$
|
43,998
|
|
The fair value assigned to goodwill is attributable to future expense reductions utilizing management’s leverage in programming and other station operating costs. The goodwill and FCC licenses are deductible for tax purposes. The intangible assets related to the network affiliation agreements are amortized over 15 years. Other intangible assets are amortized over an estimated weighted average useful life of two and a half years.
The stations’ net revenue of $2.6 million and operating income of $0.4 million from the date of acquisition to March 31, 2016 have been included in the accompanying Condensed Consolidated Statements of Operations.
KCWI
On March 14, 2016, Nexstar completed the acquisition of the assets of KCWI, the CW affiliate in the Des Moines-Ames, Iowa market, from Pappas Telecasting of Iowa, LLC (“Pappas”) for $3.8 million. A deposit of $0.2 million was paid upon signing the purchase agreement in October 2014. No significant transaction costs relating to this acquisition were incurred during the three months ended March 31, 2016.
Subject to final determination, which is expected to occur within twelve months of the acquisition date, the provisional fair values of the assets acquired and liabilities assumed in the acquisition are as follows (in thousands):
Accounts receivable
|
|
$
|
367
|
|
Broadcast rights
|
|
|
1,740
|
|
Prepaid expenses and other current assets
|
|
|
15
|
|
Property and equipment
|
|
|
900
|
|
FCC licenses
|
|
|
2,150
|
|
Other intangible assets
|
|
|
230
|
|
Goodwill
|
|
|
351
|
|
Total assets acquired
|
|
|
5,753
|
|
Less: Broadcast rights payable
|
|
|
(1,886
|
)
|
Less: Accrued expenses
|
|
|
(18
|
)
|
Net assets acquired
|
|
$
|
3,849
|
|
The fair value assigned to goodwill is attributable to future expense reductions utilizing management’s leverage in programming and other station operating costs. The goodwill and FCC licenses are deductible for tax purposes.
KCWI had no significant revenue or operating results from the date of acquisition to March 31, 2016.
Unaudited Pro Forma Information
The acquisitions of four full power television stations from Reiten and KCWI from Pappas are not significant for financial reporting purposes, both individually and in aggregate. Therefore, pro forma information has not been provided for these acquisitions.
11
Future
Acquisition
Media General
On January 27, 2016, Nexstar entered into a definitive merger agreement with Media General, Inc. (“Media General”), whereby Nexstar will acquire the latter’s outstanding equity for $10.55 per share in cash and 0.1249 of a share of Nexstar’s Class A common stock for each Media General share. The terms of the agreement also include potential additional consideration to Media General shareholders in the form of a non-transferable contingent value right (“CVR”) for each Media General share entitling Media General shareholders to net cash proceeds, if any, from the sale of Media General’s spectrum in the FCC’s upcoming spectrum auction. Depending on the timing of the FCC auction, the CVR may be issued before or at the time of the merger. Each unvested Media General stock option outstanding prior to the completion of the merger will become fully vested and will be converted into an option to purchase Nexstar’s Class A common stock, pursuant to the terms of the merger agreement. Additionally, unless the CVR has been issued prior to the completion of the merger, the holders of Media General stock options will also be entitled to one CVR for each share subject to the Media General stock option immediately prior to the completion of the merger. All other equity-based awards of Media General that are outstanding prior to the merger will vest in full and will be converted into the right to receive the cash, stock and contingent consideration as described above, subject to the terms of the merger agreement. The total consideration for this proposed acquisition is approximately $2.1 billion in cash and stock, estimated based on Nexstar’s Class A common stock market price per share of $44.27 on March 31, 2016 and Media General’s diluted common shares outstanding, plus the potential CVR. Transaction costs relating to this proposed acquisition, including legal and professional fees of $4.3 million, were expensed as incurred during the three months ended March 31, 2016.
The merger agreement contains certain termination rights for both Nexstar and Media General. If the merger agreement is terminated in connection with Media General entering into a definitive agreement for a superior proposal, as well as under certain other circumstances, the termination fee payable to Nexstar will be $80.0 million. If the merger agreement is terminated because the required Media General shareholder vote is not obtained at a shareholder meeting duly held for such purpose, the amount of the termination fee payable to Nexstar will be $20.0 million. The merger agreement also provides that Nexstar will be required to pay a termination fee to Media General of $80.0 million if the merger agreement is terminated under certain circumstances and a termination fee of $20.0 million if the required Nexstar shareholder vote is not obtained at a shareholder meeting duly held for such purpose. Either party may terminate the merger agreement if the merger is not consummated on or before January 27, 2017, with an automatic extension to April 27, 2017, if necessary to obtain regulatory approval under circumstances specified in the merger agreement.
The merger is subject to a vote by stockholders of Nexstar and Media General, FCC and other regulatory approvals (including expiration of the applicable Hart-Scott-Rodino waiting period) and other customary closing conditions. The merger is not subject to any financing condition and Nexstar received committed financing up to a maximum of $4.7 billion from a group of commercial banks to provide the debt financing to consummate the merger and the refinancing of certain of the existing indebtedness of Nexstar, Media General and certain of their VIEs. With respect to Nexstar and certain of its VIEs, the debt refinancing will include the outstanding obligations under the revolving credit facilities and term loans.
Upon completion of the merger, which is expected to occur in the fourth quarter of 2016, the combined company will be named Nexstar Media Group, Inc.
12
4. Intangible Assets and Goodwill
Intangible assets subject to amortization consisted of the following (in thousands):
|
|
Estimated
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
|
useful life,
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
in years
|
|
Gross
|
|
|
Amortization
|
|
|
Net
|
|
|
Gross
|
|
|
Amortization
|
|
|
Net
|
|
Network affiliation agreements
|
|
15
|
|
$
|
630,676
|
|
|
$
|
(344,418
|
)
|
|
$
|
286,258
|
|
|
$
|
614,592
|
|
|
$
|
(338,016
|
)
|
|
$
|
276,576
|
|
Other definite-lived
intangible assets
|
|
1-15
|
|
|
90,510
|
|
|
|
(52,813
|
)
|
|
|
37,697
|
|
|
|
84,921
|
|
|
|
(47,136
|
)
|
|
|
37,785
|
|
Other intangible assets
|
|
|
|
$
|
721,186
|
|
|
$
|
(397,231
|
)
|
|
$
|
323,955
|
|
|
$
|
699,513
|
|
|
$
|
(385,152
|
)
|
|
$
|
314,361
|
|
The increases in network affiliation agreements and other definite-lived intangible assets relate to Nexstar’s acquisitions as discussed in Note 3.
The following table presents the Company’s estimate of amortization expense for the remainder of 2016, each of the five succeeding years ended December 31 and thereafter for definite-lived intangible assets as of March 31, 2016 (in thousands):
Remainder of 2016
|
|
$
|
37,025
|
|
2017
|
|
|
40,953
|
|
2018
|
|
|
30,073
|
|
2019
|
|
|
27,160
|
|
2020
|
|
|
24,005
|
|
2021
|
|
|
23,802
|
|
Thereafter
|
|
|
140,937
|
|
|
|
$
|
323,955
|
|
The amounts recorded to goodwill and FCC licenses were as follows (in thousands):
|
|
Goodwill
|
|
|
FCC Licenses
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
Gross
|
|
|
Impairment
|
|
|
Net
|
|
|
Gross
|
|
|
Impairment
|
|
|
Net
|
|
Balances as of December 31, 2015
|
|
$
|
497,653
|
|
|
$
|
(45,991
|
)
|
|
$
|
451,662
|
|
|
$
|
538,756
|
|
|
|
(49,421
|
)
|
|
$
|
489,335
|
|
Acquisitions (See Note 3)
|
|
|
8,262
|
|
|
|
-
|
|
|
|
8,262
|
|
|
|
11,929
|
|
|
|
-
|
|
|
|
11,929
|
|
Balances as of March 31, 2016
|
|
$
|
505,915
|
|
|
$
|
(45,991
|
)
|
|
$
|
459,924
|
|
|
$
|
550,685
|
|
|
$
|
(49,421
|
)
|
|
$
|
501,264
|
|
Indefinite-lived intangible assets are not subject to amortization, but are tested for impairment annually or whenever events or changes in circumstances indicate that such assets might be impaired. During the three months ended March 31, 2016, the Company did not identify any events that would trigger impairment assessment.
5. Accrued Expenses
Accrued expenses consisted of the following (in thousands):
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
Compensation and related taxes
|
|
$
|
15,026
|
|
|
$
|
15,810
|
|
Network affiliation fees
|
|
|
21,229
|
|
|
|
22,324
|
|
Other
|
|
|
18,095
|
|
|
|
22,425
|
|
|
|
$
|
54,350
|
|
|
$
|
60,559
|
|
13
6.
Debt
Long-term debt consisted of the following (in thousands):
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
Term loans, net of financing costs and discount of $8,188 and $8,715, respectively
|
|
$
|
677,853
|
|
|
$
|
682,223
|
|
Revolving loans
|
|
|
44,000
|
|
|
|
2,000
|
|
6.875% Senior unsecured notes due 2020, net of financing costs and discount of $4,997
and $5,223, respectively
|
|
|
520,003
|
|
|
|
519,777
|
|
6.125% Senior unsecured notes due 2022, net of financing costs of $2,692 and $2,786,
respectively
|
|
|
272,308
|
|
|
|
272,214
|
|
|
|
|
1,514,164
|
|
|
|
1,476,214
|
|
Less: current portion
|
|
|
(24,265
|
)
|
|
|
(22,139
|
)
|
|
|
$
|
1,489,899
|
|
|
$
|
1,454,075
|
|
2016 Transactions
In January and February 2016, Nexstar borrowed a total of $58.0 million under its revolving credit facility to partially fund the Reiten and WVMH acquisitions discussed in Note 3. Through March 2016, Nexstar repaid $16.0 million outstanding principal balance under its revolving credit facility funded by cash on hand.
In March 2016, Nexstar, Mission and Marshall paid the contractual maturities under their senior secured credit facilities totaling $4.9 million.
Unused Commitments and Borrowing Availability
The Company had $61.0 million of total unused revolving loan commitments under its amended senior secured credit facilities, all of which was available for borrowing, based on the covenant calculations as of March 31, 2016. During the first week of May 2016, Nexstar repaid $14.0 million of outstanding revolving loans, funded by cash on hand. The Company’s ability to access funds under its senior secured credit facilities depends, in part, on its compliance with certain financial covenants. As of March 31, 2016, Nexstar was in compliance with its financial covenants.
Collateralization and Guarantees of Debt
The Company’s senior secured credit facilities are collateralized by a security interest in substantially all the combined assets, excluding FCC licenses and the other assets of consolidated VIEs unavailable to creditors of Nexstar (See Note 2). Nexstar guarantees full payment of all obligations incurred under the Mission and Marshall senior secured credit facilities in the event of their default. Similarly, Mission and Marshall are guarantors of the Nexstar senior secured credit facility. Mission is also a guarantor of Nexstar’s 6.875% senior unsecured notes due 2020 (“6.875% Notes”) and 6.125% senior unsecured notes due 2022 (“6.125% Notes”).
Fair Value of Debt
The aggregate carrying amounts and estimated fair values of the Company’s debt were as follows (in thousands):
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
|
Carrying
|
|
|
Fair
|
|
|
Carrying
|
|
|
Fair
|
|
|
|
Amount
|
|
|
Value
|
|
|
Amount
|
|
|
Value
|
|
Term loans
(1)
|
|
$
|
677,853
|
|
|
$
|
680,000
|
|
|
$
|
682,223
|
|
|
$
|
678,045
|
|
Revolving loans
(1)
|
|
|
44,000
|
|
|
|
43,424
|
|
|
|
2,000
|
|
|
|
1,961
|
|
6.875% Senior unsecured notes
(2)
|
|
|
520,003
|
|
|
|
543,375
|
|
|
|
519,777
|
|
|
|
534,188
|
|
6.125% Senior unsecured notes
(2)
|
|
|
272,308
|
|
|
|
273,625
|
|
|
|
272,214
|
|
|
|
269,500
|
|
(1)
|
The fair value of senior secured credit facilities is computed based on borrowing rates currently available to the Company for bank loans with similar terms and average maturities. These fair value measurements are considered Level 3, as significant inputs to the fair value calculation are unobservable in the market.
|
(2)
|
The fair value of the Company’s fixed rate debt is estimated based on bid prices obtained from an investment banking firm that regularly makes a market for these financial instruments. These fair value measurements are considered Level 2, as quoted market prices are available for low volume trading of these securities.
|
14
7.
FCC Regulatory Matters
Television broadcasting is subject to the jurisdiction of the FCC under the Communications Act of 1934, as amended (the “Communications Act”). The Communications Act prohibits the operation of television broadcasting stations except under a license issued by the FCC, and empowers the FCC, among other things, to issue, revoke, and modify broadcasting licenses, determine the location of television stations, regulate the equipment used by television stations, adopt regulations to carry out the provisions of the Communications Act and impose penalties for the violation of such regulations. The FCC’s ongoing rule making proceedings could have a significant future impact on the television industry and on the operation of the Company’s stations and the stations to which it provides services. In addition, the U.S. Congress may act to amend the Communications Act or adopt other legislation in a manner that could impact the Company’s stations, the stations to which it provides services and the television broadcast industry in general.
The FCC has adopted rules with respect to the final conversion of existing low power and television translator stations to digital operations, which must be completed within 51 months after the completion of the broadcast television incentive auction.
Media Ownership
The FCC is required to review its media ownership rules every four years and to eliminate those rules it finds no longer serve the “public interest, convenience and necessity.”
In March 2014, the FCC initiated its 2014 quadrennial review with the adoption of a Further Notice of Proposed Rulemaking (“FNPRM”). The FNPRM incorporates the record of the uncompleted 2010 quadrennial review proceeding and solicits comment on proposed changes to the media ownership rules. Among the proposals in the FNPRM are (1) retention of the current local television ownership rule (but with modifications to certain service contour definitions to conform to digital television broadcasting), (2) elimination of the radio/television cross-ownership rule, (3) elimination of the newspaper/radio cross-ownership rule, and (4) retention of the newspaper/television cross-ownership rule, while considering waivers of that rule in certain circumstances. The FNPRM also proposes to define a category of sharing agreements designated as SSAs between television stations, and to require television stations to disclose those SSAs. Comments and reply comments on the FNPRM were filed in the third quarter of 2014.
Concurrently with its adoption of the FNPRM, the FCC also adopted a rule making television JSAs attributable to the seller of advertising time in certain circumstances. Under this rule, where a party owns a full-power television station in a market and sells more than 15% of the weekly advertising time for another, non-owned station in the same market under a JSA, that party is deemed to have an attributable interest in the latter station for purposes of the local television ownership rule. Parties to newly attributable JSAs that do not comply with the local television ownership rule were given two years to modify or terminate their JSAs to come into compliance. However, subsequent federal legislation extended the JSA compliance deadline until September 30, 2025. Various parties, including Nexstar (and Mission, which has intervened), have appealed this new rule to the U.S. Court of Appeals for the D.C. Circuit, which in November 2015 transferred the case to the U.S. Court of Appeals for the Third Circuit. If Nexstar is required to amend or terminate its existing agreements with Mission and others, the Company could have a reduction in revenue and could incur increased costs if it is unable to successfully implement alternative arrangements that are as beneficial as the existing JSAs.
Spectrum
The FCC is seeking to make additional spectrum available to meet future wireless broadband needs. In February 2012, the U.S. Congress adopted legislation authorizing the FCC to conduct an incentive auction whereby television broadcasters could voluntarily relinquish their spectrum in exchange for consideration. The FCC has released various orders and public notices which set forth procedures that the FCC will follow in the incentive auction and the subsequent “repacking” of broadcast television spectrum, establish opening prices for television stations to relinquish their spectrum, and resolve various technical and other issues related to the incentive auction, the possible sharing of channels by television stations, and the repurposing of television spectrum for broadband use. The incentive auction commenced on March 29, 2016. Nexstar and certain of its local service agreement partners filed applications to participate in the incentive auction. The reallocation of television spectrum for wireless broadband use will require many television stations to change channel or otherwise modify their technical facilities. The reallocation of television spectrum to broadband use may be to the detriment of the Company’s investment in digital facilities, could require substantial additional investment to continue current operations, and may require viewers to invest in additional equipment or subscription services to continue receiving broadcast television signals. The Company cannot predict the results of television spectrum reallocation efforts or their impact to its business.
15
Retransmission Consent
On March 3, 2011, the FCC initiated a Notice of Proposed Rulemaking to reexamine its rules (i) governing the requirements for good faith negotiations between multichannel video program distributors (“MVPDs”) and broadcasters, including implementing a prohibition on one station negotiating retransmission consent terms for another station under a local service agreement; (ii) for providing advance notice to consumers in the event of dispute; and (iii) to extend certain cable-only obligations to all MVPDs. The FCC also asked for comment on eliminating the network non-duplication and syndicated exclusivity protection rules, which may permit MVPDs to import out-of-market television stations during a retransmission consent dispute.
In March 2014, the FCC adopted a rule that prohibits joint retransmission consent negotiation between television stations in the same market which are not commonly owned and which are ranked among the top four stations in the market in terms of audience share. On December 5, 2014, federal legislation extended the joint negotiation prohibition to all non-commonly owned television stations in a market. This new rule requires Nexstar, Mission and other independent third parties with which Nexstar has local service agreements to separately negotiate retransmission consent agreements for certain of their stations. The December 2014 legislation also directed the FCC to commence a rulemaking to “review its totality of the circumstances test for good faith [retransmission consent] negotiations.” The FCC commenced this proceeding in September 2015, comments and reply comments have been submitted and the Company cannot predict the proceeding’s outcome.
Concurrently with its adoption of the prohibition on certain joint retransmission consent negotiations, the FCC also adopted a further notice of proposed rulemaking which seeks additional comment on the elimination or modification of the network non-duplication and syndicated exclusivity rules. The FCC’s prohibition on certain joint retransmission consent negotiations and its possible elimination or modification of the network non-duplication and syndicated exclusivity protection rules may affect the Company’s ability to sustain its current level of retransmission consent revenues or grow such revenues in the future and could have an adverse effect on the Company’s business, financial condition and results of operations. The Company cannot predict the resolution of the FCC’s network non-duplication and syndicated exclusivity proposals, or the impact of these proposals or the FCC’s prohibition on certain joint negotiations, on its business.
Further, certain online video distributors and other over-the-top video distributors (“OTTDs”) have begun streaming broadcast programming over the Internet. In June 2014, the U.S. Supreme Court held that an OTTD’s retransmissions of broadcast television signals without the consent of the broadcast station violate copyright holders’ exclusive right to perform their works publicly as provided under the Copyright Act. In December 2014, the FCC issued a Notice of Proposed Rulemaking proposing to interpret the term “MVPD” to encompass OTTDs that make available for purchase multiple streams of video programming distributed at a prescheduled time, and seeking comment on the effects of applying MVPD rules to such OTTDs. Comments and reply comments were filed in the first and second quarters of 2015 and the Company cannot predict the outcome of the proceeding. However, if the FCC ultimately determines that an OTTD is not an MVPD, or declines to apply certain rules governing MVPDs to OTTDs, the Company’s business and results of operations could be materially and adversely affected.
8. Commitments and Contingencies
Guarantees of Mission and Marshall Debt
Nexstar guarantees full payment of all obligations incurred under Mission’s and Marshall’s senior secured credit facilities. In the event that Mission and/or Marshall are unable to repay amounts due, Nexstar will be obligated to repay such amounts. The maximum potential amount of future payments that Nexstar would be required to make under these guarantees would be generally limited to the amount of borrowings outstanding. As of March 31, 2016, Mission had a maximum commitment of $233.1 million under its senior secured credit facility, of which $225.1 million of debt was outstanding, and Marshall had used all of its commitment and had outstanding debt obligations of $56.5 million.
Indemnification Obligations
In connection with certain agreements into which the Company enters in the normal course of its business, including local service agreements, business acquisitions and borrowing arrangements, the Company enters into contractual arrangements under which the Company agrees to indemnify the other party to such arrangement from losses, claims and damages incurred by the indemnified party for certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses and the maximum potential amount of future payments the Company could be required to make under these indemnification arrangements may be unlimited. Historically, payments made related to these indemnifications have been immaterial and the Company has not incurred significant costs to defend lawsuits or settle claims related to these indemnification agreements.
Litigation
From time to time, the Company is involved with claims that arise out of the normal course of its business. In the opinion of management, any resulting liability with respect to these claims would not have a material adverse effect on the Company’s financial position, results of operations or cash flows.
16
9. Segment Data
The Company evaluates the performance of its operating segments based on net revenue and operating income. The Company’s broadcast segment includes television stations and related community focused websites that Nexstar owns, operates, programs or provides sales and other services to in various markets across the United States. The other activities of the Company include corporate functions, eliminations and other insignificant operations.
Segment financial information is included in the following tables for the periods presented (in thousands):
Three Months ended March 31, 2016
|
|
Broadcasting
|
|
|
Other
|
|
|
Consolidated
|
|
Net revenue
|
|
$
|
241,088
|
|
|
$
|
14,570
|
|
|
$
|
255,658
|
|
Depreciation
|
|
|
10,987
|
|
|
|
1,571
|
|
|
|
12,558
|
|
Amortization of intangible assets
|
|
|
8,711
|
|
|
|
3,368
|
|
|
|
12,079
|
|
Income (loss) from operations
|
|
|
76,928
|
|
|
|
(18,999
|
)
|
|
|
57,929
|
|
Three Months ended March 31, 2015
|
|
Broadcasting
|
|
|
Other
|
|
|
Consolidated
|
|
Net revenue
|
|
$
|
190,845
|
|
|
$
|
10,890
|
|
|
$
|
201,735
|
|
Depreciation
|
|
|
9,704
|
|
|
|
1,168
|
|
|
|
10,872
|
|
Amortization of intangible assets
|
|
|
10,888
|
|
|
|
2,172
|
|
|
|
13,060
|
|
Income (loss) from operations
|
|
|
52,674
|
|
|
|
(14,770
|
)
|
|
|
37,904
|
|
As of March 31, 2016
|
|
Broadcasting
|
|
|
Other
|
|
|
Consolidated
|
|
Goodwill
|
|
$
|
421,227
|
|
|
$
|
38,697
|
|
|
$
|
459,924
|
|
Assets
|
|
|
1,722,125
|
|
|
|
170,060
|
|
|
|
1,892,185
|
|
As of December 31, 2015
|
|
Broadcasting
|
|
|
Other
|
|
|
Consolidated
|
|
Goodwill
|
|
$
|
412,965
|
|
|
$
|
38,697
|
|
|
$
|
451,662
|
|
Assets
|
|
|
1,660,737
|
|
|
|
174,397
|
|
|
|
1,835,134
|
|
17
10.
Condensed Consolidating Financial Information
The following condensed consolidating financial information presents the financial position, results of operations and cash flows of the Company, including its wholly-owned subsidiaries and its consolidated VIEs. This information is presented in lieu of separate financial statements and other related disclosures pursuant to Regulation S-X Rule 3-10 of the Securities Exchange Act of 1934, as amended, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.”
The Nexstar column presents the parent company’s financial information, excluding consolidating entities. The Nexstar Broadcasting column presents the financial information of Nexstar Broadcasting, Inc. (“Nexstar Broadcasting”), a wholly-owned subsidiary of Nexstar and issuer of the 6.875% Notes and the 6.125% Notes. The Mission column presents the financial information of Mission, an entity which Nexstar Broadcasting is required to consolidate as a VIE (see Note 2). The Non-Guarantors column presents the combined financial information of Enterprise Technology LLC, a wholly-owned subsidiary of Nexstar, and other VIEs consolidated by Nexstar Broadcasting (See Note 2).
Nexstar Broadcasting’s outstanding 6.875% Notes and 6.125% Notes are fully and unconditionally guaranteed, jointly and severally, by Nexstar and Mission, subject to certain customary release provisions. These notes are not guaranteed by any other entities.
18
CONDENSED CONSOLIDATING BALANCE SHEET
As of March 31, 2016
(in thousands)
|
|
|
|
|
|
Nexstar
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Nexstar
|
|
|
Broadcasting
|
|
|
Mission
|
|
|
Guarantors
|
|
|
Eliminations
|
|
|
Company
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
-
|
|
|
$
|
3,897
|
|
|
$
|
1,330
|
|
|
$
|
7,594
|
|
|
$
|
-
|
|
|
$
|
12,821
|
|
Accounts receivable
|
|
|
-
|
|
|
|
168,740
|
|
|
|
11,985
|
|
|
|
19,274
|
|
|
|
-
|
|
|
|
199,999
|
|
Amounts due from consolidated entities
|
|
|
-
|
|
|
|
16,272
|
|
|
|
60,056
|
|
|
|
-
|
|
|
|
(76,328
|
)
|
|
|
-
|
|
Other current assets
|
|
|
-
|
|
|
|
18,255
|
|
|
|
1,120
|
|
|
|
2,132
|
|
|
|
-
|
|
|
|
21,507
|
|
Total current assets
|
|
|
-
|
|
|
|
207,164
|
|
|
|
74,491
|
|
|
|
29,000
|
|
|
|
(76,328
|
)
|
|
|
234,327
|
|
Investments in subsidiaries
|
|
|
202,048
|
|
|
|
38,259
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(240,307
|
)
|
|
|
-
|
|
Amounts due from consolidated entities
|
|
|
-
|
|
|
|
124,657
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(124,657
|
)
|
|
|
-
|
|
Property and equipment, net
|
|
|
-
|
|
|
|
253,914
|
|
|
|
21,344
|
|
|
|
12,397
|
|
|
|
-
|
|
|
|
287,655
|
|
Goodwill
|
|
|
-
|
|
|
|
351,709
|
|
|
|
32,489
|
|
|
|
75,726
|
|
|
|
-
|
|
|
|
459,924
|
|
FCC licenses
|
|
|
-
|
|
|
|
427,703
|
|
|
|
41,563
|
|
|
|
31,998
|
|
|
|
-
|
|
|
|
501,264
|
|
Other intangible assets, net
|
|
|
-
|
|
|
|
243,308
|
|
|
|
18,287
|
|
|
|
62,360
|
|
|
|
-
|
|
|
|
323,955
|
|
Other noncurrent assets
|
|
|
-
|
|
|
|
64,132
|
|
|
|
19,339
|
|
|
|
1,589
|
|
|
|
-
|
|
|
|
85,060
|
|
Total assets
|
|
$
|
202,048
|
|
|
$
|
1,710,846
|
|
|
$
|
207,513
|
|
|
$
|
213,070
|
|
|
$
|
(441,292
|
)
|
|
$
|
1,892,185
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of debt
|
|
$
|
-
|
|
|
$
|
16,830
|
|
|
$
|
2,335
|
|
|
$
|
5,100
|
|
|
$
|
-
|
|
|
$
|
24,265
|
|
Accounts payable
|
|
|
-
|
|
|
|
18,520
|
|
|
|
1,651
|
|
|
|
4,754
|
|
|
|
-
|
|
|
|
24,925
|
|
Amounts due to consolidated entities
|
|
|
-
|
|
|
|
55,005
|
|
|
|
-
|
|
|
|
21,323
|
|
|
|
(76,328
|
)
|
|
|
-
|
|
Other current liabilities
|
|
|
-
|
|
|
|
78,439
|
|
|
|
6,717
|
|
|
|
10,765
|
|
|
|
-
|
|
|
|
95,921
|
|
Total current liabilities
|
|
|
-
|
|
|
|
168,794
|
|
|
|
10,703
|
|
|
|
41,942
|
|
|
|
(76,328
|
)
|
|
|
145,111
|
|
Debt
|
|
|
-
|
|
|
|
1,215,679
|
|
|
|
222,781
|
|
|
|
51,439
|
|
|
|
-
|
|
|
|
1,489,899
|
|
Amounts due to consolidated entities
|
|
|
54,307
|
|
|
|
-
|
|
|
|
-
|
|
|
|
70,350
|
|
|
|
(124,657
|
)
|
|
|
-
|
|
Other noncurrent liabilities
|
|
|
-
|
|
|
|
115,990
|
|
|
|
10,397
|
|
|
|
13,238
|
|
|
|
-
|
|
|
|
139,625
|
|
Total liabilities
|
|
|
54,307
|
|
|
|
1,500,463
|
|
|
|
243,881
|
|
|
|
176,969
|
|
|
|
(200,985
|
)
|
|
|
1,774,635
|
|
Total
Nexstar
Broadcasting
Group,
Inc.
stockholders'
equity (deficit)
|
|
|
147,741
|
|
|
|
210,383
|
|
|
|
(36,368
|
)
|
|
|
29,955
|
|
|
|
(240,307
|
)
|
|
|
111,404
|
|
Noncontrolling interests in consolidated
variable interest entities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,146
|
|
|
|
-
|
|
|
|
6,146
|
|
Total liabilities and stockholders' equity (deficit)
|
|
$
|
202,048
|
|
|
$
|
1,710,846
|
|
|
$
|
207,513
|
|
|
$
|
213,070
|
|
|
$
|
(441,292
|
)
|
|
$
|
1,892,185
|
|
19
CONDENSED CONSOLIDATING BALAN
CE SHEET
As of December 31, 2015
(in thousands)
|
|
|
|
|
|
Nexstar
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Nexstar
|
|
|
Broadcasting
|
|
|
Mission
|
|
|
Guarantors
|
|
|
Eliminations
|
|
|
Company
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
-
|
|
|
$
|
27,492
|
|
|
$
|
4,361
|
|
|
$
|
11,563
|
|
|
$
|
-
|
|
|
$
|
43,416
|
|
Accounts receivable
|
|
|
-
|
|
|
|
163,008
|
|
|
|
9,370
|
|
|
|
20,613
|
|
|
|
-
|
|
|
|
192,991
|
|
Amounts due from consolidated entities
|
|
|
-
|
|
|
|
10,600
|
|
|
|
51,978
|
|
|
|
-
|
|
|
|
(62,578
|
)
|
|
|
-
|
|
Other current assets
|
|
|
-
|
|
|
|
19,984
|
|
|
|
1,364
|
|
|
|
2,273
|
|
|
|
-
|
|
|
|
23,621
|
|
Total current assets
|
|
|
-
|
|
|
|
221,084
|
|
|
|
67,073
|
|
|
|
34,449
|
|
|
|
(62,578
|
)
|
|
|
260,028
|
|
Investments in subsidiaries
|
|
|
184,332
|
|
|
|
38,931
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(223,263
|
)
|
|
|
-
|
|
Amounts due from consolidated entities
|
|
|
-
|
|
|
|
133,659
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(133,659
|
)
|
|
|
-
|
|
Property and equipment, net
|
|
|
-
|
|
|
|
232,206
|
|
|
|
21,891
|
|
|
|
12,486
|
|
|
|
-
|
|
|
|
266,583
|
|
Goodwill
|
|
|
-
|
|
|
|
343,140
|
|
|
|
32,489
|
|
|
|
76,033
|
|
|
|
-
|
|
|
|
451,662
|
|
FCC licenses
|
|
|
-
|
|
|
|
415,024
|
|
|
|
41,563
|
|
|
|
32,748
|
|
|
|
-
|
|
|
|
489,335
|
|
Other intangible assets, net
|
|
|
-
|
|
|
|
228,936
|
|
|
|
18,892
|
|
|
|
66,533
|
|
|
|
-
|
|
|
|
314,361
|
|
Other noncurrent assets
|
|
|
-
|
|
|
|
30,539
|
|
|
|
20,418
|
|
|
|
2,208
|
|
|
|
-
|
|
|
|
53,165
|
|
Total assets
|
|
$
|
184,332
|
|
|
$
|
1,643,519
|
|
|
$
|
202,326
|
|
|
$
|
224,457
|
|
|
$
|
(419,500
|
)
|
|
$
|
1,835,134
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of debt
|
|
$
|
-
|
|
|
$
|
15,154
|
|
|
$
|
2,335
|
|
|
$
|
4,650
|
|
|
$
|
-
|
|
|
$
|
22,139
|
|
Accounts payable
|
|
|
-
|
|
|
|
14,705
|
|
|
|
906
|
|
|
|
10,325
|
|
|
|
-
|
|
|
|
25,936
|
|
Amounts due to consolidated entities
|
|
|
-
|
|
|
|
47,700
|
|
|
|
-
|
|
|
|
14,878
|
|
|
|
(62,578
|
)
|
|
|
-
|
|
Other current liabilities
|
|
|
-
|
|
|
|
78,868
|
|
|
|
6,909
|
|
|
|
12,209
|
|
|
|
-
|
|
|
|
97,986
|
|
Total current liabilities
|
|
|
-
|
|
|
|
156,427
|
|
|
|
10,150
|
|
|
|
42,062
|
|
|
|
(62,578
|
)
|
|
|
146,061
|
|
Debt
|
|
|
-
|
|
|
|
1,177,944
|
|
|
|
223,235
|
|
|
|
52,896
|
|
|
|
-
|
|
|
|
1,454,075
|
|
Amounts due to consolidated entities
|
|
|
63,309
|
|
|
|
-
|
|
|
|
-
|
|
|
|
70,350
|
|
|
|
(133,659
|
)
|
|
|
-
|
|
Other noncurrent liabilities
|
|
|
-
|
|
|
|
118,048
|
|
|
|
9,351
|
|
|
|
21,226
|
|
|
|
-
|
|
|
|
148,625
|
|
Total liabilities
|
|
|
63,309
|
|
|
|
1,452,419
|
|
|
|
242,736
|
|
|
|
186,534
|
|
|
|
(196,237
|
)
|
|
|
1,748,761
|
|
Total Nexstar Broadcasting Group, Inc.
stockholders' equity (deficit)
|
|
|
121,023
|
|
|
|
191,100
|
|
|
|
(40,410
|
)
|
|
|
32,224
|
|
|
|
(223,263
|
)
|
|
|
80,674
|
|
Noncontrolling interest in a consolidated
variable interest entity
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,699
|
|
|
|
-
|
|
|
|
5,699
|
|
Total liabilities and stockholders' equity (deficit)
|
|
$
|
184,332
|
|
|
$
|
1,643,519
|
|
|
$
|
202,326
|
|
|
$
|
224,457
|
|
|
$
|
(419,500
|
)
|
|
$
|
1,835,134
|
|
20
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
Three Months Ended March 31, 2016
(in thousands)
|
|
|
|
|
|
Nexstar
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Nexstar
|
|
|
Broadcasting
|
|
|
Mission
|
|
|
Guarantors
|
|
|
Eliminations
|
|
|
Company
|
|
Net broadcast revenue (including trade and barter)
|
|
$
|
-
|
|
|
$
|
215,576
|
|
|
$
|
15,160
|
|
|
$
|
24,922
|
|
|
$
|
-
|
|
|
$
|
255,658
|
|
Revenue between consolidated entities
|
|
|
-
|
|
|
|
8,605
|
|
|
|
9,201
|
|
|
|
2,699
|
|
|
|
(20,505
|
)
|
|
|
-
|
|
Net revenue
|
|
|
-
|
|
|
|
224,181
|
|
|
|
24,361
|
|
|
|
27,621
|
|
|
|
(20,505
|
)
|
|
|
255,658
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating expenses, excluding
depreciation and amortization
|
|
|
-
|
|
|
|
68,536
|
|
|
|
7,487
|
|
|
|
14,110
|
|
|
|
(10
|
)
|
|
|
90,123
|
|
Selling, general, and administrative expenses,
excluding depreciation and amortization
|
|
|
-
|
|
|
|
63,578
|
|
|
|
907
|
|
|
|
4,798
|
|
|
|
(1,118
|
)
|
|
|
68,165
|
|
Local service agreement fees between
consolidated entities
|
|
|
-
|
|
|
|
10,772
|
|
|
|
4,500
|
|
|
|
4,105
|
|
|
|
(19,377
|
)
|
|
|
-
|
|
Amortization of broadcast rights
|
|
|
-
|
|
|
|
12,393
|
|
|
|
1,392
|
|
|
|
1,019
|
|
|
|
-
|
|
|
|
14,804
|
|
Amortization of intangible assets
|
|
|
-
|
|
|
|
7,308
|
|
|
|
605
|
|
|
|
4,166
|
|
|
|
-
|
|
|
|
12,079
|
|
Depreciation
|
|
|
-
|
|
|
|
11,184
|
|
|
|
607
|
|
|
|
767
|
|
|
|
-
|
|
|
|
12,558
|
|
Total operating expenses
|
|
|
-
|
|
|
|
173,771
|
|
|
|
15,498
|
|
|
|
28,965
|
|
|
|
(20,505
|
)
|
|
|
197,729
|
|
Income (loss) from operations
|
|
|
-
|
|
|
|
50,410
|
|
|
|
8,863
|
|
|
|
(1,344
|
)
|
|
|
-
|
|
|
|
57,929
|
|
Interest expense, net
|
|
|
-
|
|
|
|
(17,940
|
)
|
|
|
(2,313
|
)
|
|
|
(401
|
)
|
|
|
-
|
|
|
|
(20,654
|
)
|
Other expenses
|
|
|
-
|
|
|
|
(136
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(136
|
)
|
Equity in income of subsidiaries
|
|
|
17,715
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(17,715
|
)
|
|
|
-
|
|
Income (loss) before income taxes
|
|
|
17,715
|
|
|
|
32,334
|
|
|
|
6,550
|
|
|
|
(1,745
|
)
|
|
|
(17,715
|
)
|
|
|
37,139
|
|
Income tax (expense) benefit
|
|
|
-
|
|
|
|
(13,051
|
)
|
|
|
(2,508
|
)
|
|
|
694
|
|
|
|
-
|
|
|
|
(14,865
|
)
|
Net income (loss)
|
|
|
17,715
|
|
|
|
19,283
|
|
|
|
4,042
|
|
|
|
(1,051
|
)
|
|
|
(17,715
|
)
|
|
|
22,274
|
|
Net income attributable to noncontrolling
interests
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(547
|
)
|
|
|
-
|
|
|
|
(547
|
)
|
Net income (loss) attributable to Nexstar
|
|
$
|
17,715
|
|
|
$
|
19,283
|
|
|
$
|
4,042
|
|
|
$
|
(1,598
|
)
|
|
$
|
(17,715
|
)
|
|
$
|
21,727
|
|
21
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
Three Months Ended March 31, 2015
(in thousands)
|
|
|
|
|
|
Nexstar
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Nexstar
|
|
|
Broadcasting
|
|
|
Mission
|
|
|
Guarantors
|
|
|
Eliminations
|
|
|
Company
|
|
Net broadcast revenue (including trade and barter)
|
|
$
|
-
|
|
|
$
|
170,500
|
|
|
$
|
12,110
|
|
|
$
|
19,125
|
|
|
$
|
-
|
|
|
$
|
201,735
|
|
Revenue between consolidated entities
|
|
|
-
|
|
|
|
6,469
|
|
|
|
8,554
|
|
|
|
2,781
|
|
|
|
(17,804
|
)
|
|
|
-
|
|
Net revenue
|
|
|
-
|
|
|
|
176,969
|
|
|
|
20,664
|
|
|
|
21,906
|
|
|
|
(17,804
|
)
|
|
|
201,735
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating expenses, excluding
depreciation and amortization
|
|
|
-
|
|
|
|
53,531
|
|
|
|
5,188
|
|
|
|
9,310
|
|
|
|
-
|
|
|
|
68,029
|
|
Selling, general, and administrative expenses,
excluding depreciation and amortization
|
|
|
-
|
|
|
|
52,835
|
|
|
|
862
|
|
|
|
4,447
|
|
|
|
(855
|
)
|
|
|
57,289
|
|
Local service agreement fees between
consolidated entities
|
|
|
-
|
|
|
|
10,480
|
|
|
|
2,445
|
|
|
|
4,024
|
|
|
|
(16,949
|
)
|
|
|
-
|
|
Amortization of broadcast rights
|
|
|
-
|
|
|
|
11,662
|
|
|
|
1,468
|
|
|
|
1,451
|
|
|
|
-
|
|
|
|
14,581
|
|
Amortization of intangible assets
|
|
|
-
|
|
|
|
8,556
|
|
|
|
610
|
|
|
|
3,894
|
|
|
|
-
|
|
|
|
13,060
|
|
Depreciation
|
|
|
-
|
|
|
|
9,579
|
|
|
|
602
|
|
|
|
691
|
|
|
|
-
|
|
|
|
10,872
|
|
Total operating expenses
|
|
|
-
|
|
|
|
146,643
|
|
|
|
11,175
|
|
|
|
23,817
|
|
|
|
(17,804
|
)
|
|
|
163,831
|
|
Income (loss) from operations
|
|
|
-
|
|
|
|
30,326
|
|
|
|
9,489
|
|
|
|
(1,911
|
)
|
|
|
-
|
|
|
|
37,904
|
|
Interest expense, net
|
|
|
-
|
|
|
|
(16,580
|
)
|
|
|
(2,316
|
)
|
|
|
(397
|
)
|
|
|
-
|
|
|
|
(19,293
|
)
|
Other expenses
|
|
|
-
|
|
|
|
(118
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(118
|
)
|
Equity in income of subsidiaries
|
|
|
8,868
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,868
|
)
|
|
|
-
|
|
Income (loss) before income taxes
|
|
|
8,868
|
|
|
|
13,628
|
|
|
|
7,173
|
|
|
|
(2,308
|
)
|
|
|
(8,868
|
)
|
|
|
18,493
|
|
Income tax (expense) benefit
|
|
|
-
|
|
|
|
(4,553
|
)
|
|
|
(2,821
|
)
|
|
|
793
|
|
|
|
-
|
|
|
|
(6,581
|
)
|
Net income (loss)
|
|
|
8,868
|
|
|
|
9,075
|
|
|
|
4,352
|
|
|
|
(1,515
|
)
|
|
|
(8,868
|
)
|
|
|
11,912
|
|
Net loss attributable to noncontrolling
interests
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
995
|
|
|
|
-
|
|
|
|
995
|
|
Net income (loss) attributable to Nexstar
|
|
$
|
8,868
|
|
|
$
|
9,075
|
|
|
$
|
4,352
|
|
|
$
|
(520
|
)
|
|
$
|
(8,868
|
)
|
|
$
|
12,907
|
|
22
CONDENSED CONSOLIDATING STATEM
ENT OF CASH FLOWS
Three Months Ended March 31, 2016
(in thousands)
|
|
|
|
|
|
Nexstar
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Nexstar
|
|
|
Broadcasting
|
|
|
Mission
|
|
|
Guarantors
|
|
|
Eliminations
|
|
|
Company
|
|
Cash flows from operating activities
|
|
$
|
-
|
|
|
$
|
43,093
|
|
|
$
|
(2,389
|
)
|
|
$
|
(2,273
|
)
|
|
$
|
-
|
|
|
$
|
38,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
-
|
|
|
|
(7,038
|
)
|
|
|
(57
|
)
|
|
|
(646
|
)
|
|
|
-
|
|
|
|
(7,741
|
)
|
Deposits and payments for acquisitions
|
|
|
-
|
|
|
|
(103,971
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(103,971
|
)
|
Other investing activities
|
|
|
-
|
|
|
|
160
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
160
|
|
Net cash used in investing activities
|
|
|
-
|
|
|
|
(110,849
|
)
|
|
|
(57
|
)
|
|
|
(646
|
)
|
|
|
-
|
|
|
|
(111,552
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
-
|
|
|
|
58,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
58,000
|
|
Repayments of long-term debt
|
|
|
-
|
|
|
|
(19,262
|
)
|
|
|
(585
|
)
|
|
|
(1,050
|
)
|
|
|
-
|
|
|
|
(20,897
|
)
|
Common stock dividends paid
|
|
|
(7,355
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,355
|
)
|
Inter-company payments
|
|
|
7,355
|
|
|
|
(7,355
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Excess tax benefit from stock option
exercises
|
|
|
-
|
|
|
|
13,224
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,224
|
|
Other financing activities
|
|
|
-
|
|
|
|
(446
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(446
|
)
|
Net cash provided by (used in)
financing activities
|
|
|
-
|
|
|
|
44,161
|
|
|
|
(585
|
)
|
|
|
(1,050
|
)
|
|
|
-
|
|
|
|
42,526
|
|
Net decrease in cash and
cash equivalents
|
|
|
-
|
|
|
|
(23,595
|
)
|
|
|
(3,031
|
)
|
|
|
(3,969
|
)
|
|
|
-
|
|
|
|
(30,595
|
)
|
Cash and cash equivalents at beginning
of period
|
|
|
-
|
|
|
|
27,492
|
|
|
|
4,361
|
|
|
|
11,563
|
|
|
|
-
|
|
|
|
43,416
|
|
Cash and cash equivalents at end
of period
|
|
$
|
-
|
|
|
$
|
3,897
|
|
|
$
|
1,330
|
|
|
$
|
7,594
|
|
|
$
|
-
|
|
|
$
|
12,821
|
|
23
CONDENSED CONSOLIDATING STATE
MENT OF CASH FLOWS
Three Months Ended March 31, 2015
(in thousands)
|
|
|
|
|
|
Nexstar
|
|
|
|
|
|
|
Non-
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Nexstar
|
|
|
Broadcasting
|
|
|
Mission
|
|
|
Guarantors
|
|
|
Eliminations
|
|
|
Company
|
|
Cash flows from operating activities
|
|
$
|
-
|
|
|
$
|
38,613
|
|
|
$
|
8,106
|
|
|
$
|
2,907
|
|
|
$
|
-
|
|
|
$
|
49,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
-
|
|
|
|
(5,974
|
)
|
|
|
(32
|
)
|
|
|
(571
|
)
|
|
|
176
|
|
|
|
(6,401
|
)
|
Deposits and payments for acquisitions
|
|
|
-
|
|
|
|
(503,200
|
)
|
|
|
-
|
|
|
|
(79
|
)
|
|
|
43,300
|
|
|
|
(459,979
|
)
|
Proceeds from sale of a station
|
|
|
-
|
|
|
|
70,105
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(43,300
|
)
|
|
|
26,805
|
|
Other investing activities
|
|
|
-
|
|
|
|
723
|
|
|
|
150
|
|
|
|
180
|
|
|
|
(176
|
)
|
|
|
877
|
|
Net cash (used in) provided by
investing activities
|
|
|
-
|
|
|
|
(438,346
|
)
|
|
|
118
|
|
|
|
(470
|
)
|
|
|
-
|
|
|
|
(438,698
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
-
|
|
|
|
409,950
|
|
|
|
-
|
|
|
|
2,000
|
|
|
|
-
|
|
|
|
411,950
|
|
Repayments of long-term debt
|
|
|
-
|
|
|
|
(97,431
|
)
|
|
|
(5,959
|
)
|
|
|
(750
|
)
|
|
|
-
|
|
|
|
(104,140
|
)
|
Common stock dividends paid
|
|
|
(5,921
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,921
|
)
|
Inter-company payments
|
|
|
4,456
|
|
|
|
(4,456
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other financing activities
|
|
|
1,465
|
|
|
|
(1,600
|
)
|
|
|
(8
|
)
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(145
|
)
|
Net
cash
provided
by (used in)
financing
activities
|
|
|
-
|
|
|
|
306,463
|
|
|
|
(5,967
|
)
|
|
|
1,248
|
|
|
|
-
|
|
|
|
301,744
|
|
Net (decrease) increase in cash and
cash equivalents
|
|
|
-
|
|
|
|
(93,270
|
)
|
|
|
2,257
|
|
|
|
3,685
|
|
|
|
-
|
|
|
|
(87,328
|
)
|
Cash and cash equivalents at beginning
of period
|
|
|
-
|
|
|
|
130,472
|
|
|
|
880
|
|
|
|
560
|
|
|
|
-
|
|
|
|
131,912
|
|
Cash and cash equivalents at end
of period
|
|
$
|
-
|
|
|
$
|
37,202
|
|
|
$
|
3,137
|
|
|
$
|
4,245
|
|
|
$
|
-
|
|
|
$
|
44,584
|
|
24
11.
Subsequent Events
On April 21, 2016, Nexstar’s Board of Directors declared a quarterly cash dividend of $0.24 per share of its Class A common stock. The dividend is payable on May 27, 2016 to stockholders of record on May 13, 2016.
During the first week of May 2016, Nexstar repaid $14.0 million of outstanding revolving loans, funded by cash on hand.
25