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NXST Nexstar Media

Participants
Joseph Jaffoni JCIR
Perry Sook Founder, Chairman & CEO
Thomas Carter President, COO & CFO
John Janedis Wolfe Research
Daniel Kurnos The Benchmark Company
James Goss Barrington Research Associates
Steven Cahall Wells Fargo Securities
Kyle Evans Stephens Inc.
Craig Huber Huber Research Partners
Alan Gould Loop Capital Markets
Call transcript
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Operator

Good day, and welcome to Nexstar Media Group's Second Quarter 2021 Results Call. Today's call is being recorded. I would now like to turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead, sir.

Joseph Jaffoni

Thanks, Shelby, and good morning, everyone.

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

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

Perry Sook

largely the estimates. quarter of adjusted revenue, ahead represents cash and free our our Thank our double-digit and review profitable well record which another in Overall, of XXXX in second to joining advertising, quarter, were for timing growth payments, Nexstar's revenue a second Thank EBITDA us highlights exceeding while tax flow everyone. you, core net you related digital good in results and stronger-than-anticipated cash revenue to achieving period faster all recovery net Joe, the and income of expectations growth. operating operating distribution consensus success all morning, prior

of growth. increased our to strategies me, reflect operating internal the average consistent challenges approximately presented of Carter, upsized for the results confidence to our cash continued year-to-date quarter offset next our Operating until to leverage CFO, by or cash Nexstar's cycle. second the pandemic, serving of $XX forma line by morning, while Nation resiliency Tom the call pro and our proud of is free for quarter, of diversification. annual our through for drive the communities many week, this path extremely and we on the content the With of our growth top half and a have solid local with ahead our more approximately guidance scale in average of review pro than members achieving plans for annual forma increased $X.XX Our flow monetization putting We're adaptability Nexstar long-term on strength Chief the 'XX-'XX forecasts, Nexstar operating XX,XXX our 'XX-'XX share. country of our our this our first $XX.XX and and the business returns success and results and XXXX outlook, across the who, cycle and pacing guidance the President, the free Officer morning and million we'll per capital billion continued flow

in TMT align growth. Lee CFO local disclosed is Last assume Investment phase getting leadership company we're finance Tom be past content other strategic under our structure who its next to to and background instrumental long-term we accomplished the the of Before our in and further we're our Nexstar our with and we've results and digital in our company's feel national content operating subsidiaries of Tom exceptional production advancing the local more and we broadcasting previously actions changes providing relationships Media additional and to Ann's positions the next the Chief our operating another Ann risk-adjusted Lee company's management President shareholders. component returns role teams leader than to communities outstanding our that Nexstar transition welcome of we support Gliha, content, and and that Officer. years of Banking over industry-leading and monetize excited will confident November, execute Operating our quarterly into continue to very place, delivering record team spectrum service financial highlights, of assuming Ann's appointment in the with and for as from role objectives combined week. management taken will Lee put the experience XX an while we've year assets. extending and our Overall, Inc. operations, our

maintaining towards end we exceed Brophy, the easily recent quarter, below million Digital; Just of total Karen Class speculation is working I forward net $XX million as our common President A Ann, look our President shareholders share of the of shareholders months Alford, to on at regarding returns Tom, will new and to the returns million momentum an capital cash our X for $XXX while while my second capital shareholders. respect Nexstar $XXX our Networks With continue XXXX, well Through repurchased first our note, all of just this approximately returns, dividends, approximately additional Compton, allocated to industry-leading of total delivering of Sean that. Andy quarterly strong retirement returning leverage a with of as our repurchases side and in Broadcasting; shares And teams $XXX in XXXX. our quarter, build Lee growth capital President during creating the corporate to to country across all the and of Xx. and we By dividend. through we value million

our our date and prospects resiliency and remaining offset prior repurchase and start net year-over-year over business Our in financial with year XXXX we advertising. rising XXX in to to $X.XX in model, to activity continued million more authorization solid position. underscores flow second quarter revenue Operationally, rebound shares XX.X% XXXX decline our our of cash additional as the repurchase the confidence the free strong million Board's the of $XX Nexstar's billion to approximate political our than

our operating year's all from our drove cash as flow net QX with million expense before adjusted combined transaction and quarter adjusted Our second to to a management line percent EBITDA XX% XXX free points declining with the respectively. revenue expenses the over revenue $XXX.X top expenses. onetime million, QX line before last of Nexstar and $XXX onetime of revenue basis growth expenses EBITDA brought

can marketing You significant operational local XX% the excellence to to and further in over scale advertising its in a cash expect outpacing expectations beyond. core our balance advertising growing television generate leverage and reflecting and our demand Total flow solutions. free increased our national content rise for Nexstar XXXX XX.X% highlighting and the prior premium revenue year, of revenue

rise and deliver quarters, XX% record revenue, sales with healthy the $XX.X for XXXX. generating new provide and highly sales strategies, differentiators effective XX% new a key consistently done over as are business-building to small Nexstar's results, local many training, the quarter of an of sales Nexstar's of focus performance teams help second business a marking continue and we've and all business strategies. quarter businesses prior As recoveries many, ongoing million they our levels continue over and their initiatives large we to increase structures year first incentive with new-to-television

quarter, top and as across biggest the ad the we're all had have market. top our economic gains in the continue the QX encouraged advertising XX% all category to by quarter, improve. in Nexstar's ad conditions broad-based activity From return over the and ahead We and this and auto as the deeper percentage we rebound our hard was XXX% super categories of sales further spending improved The in midsized platforms. begun footprint by Nexstar's and the last biggest revenue XX as standpoint, prior and accelerating of drive of our the in Looking to top XX across growth with teams an With categories our trajectory gains share to are ahead ad our of year total remains sports the XXXX core market categories increase of year, second move our acceleration deeper dollar hot into the into small X, beginning overall and the XX to our XX% betting In first recorded lottery recovery growing category attorneys. year. top quarter. local businesses working year-over-year across overall continues second in gains in revenue ahead,

retrans. to on Moving

The revenue trends project. platform remain Broadcasting our and XX% acquisition that XXXX, fee Second the about reflects subscriber our stabilized quarter distribution XX% across XXXX trends and subscriber with rose of $XXX our distribution distribution in representing base, growth renewals year-over-year that expectations agreement million. and support approximately net to Mission additions retrans growth WPIX fee of to related consistent the ongoing margin we

We continue XXXX. of our XX% distribution contractual X XX, to through our under economics, contracted with have December Big over affiliations visibility good

in our high into of this XXXX, diversification push. forward digital subs revenue Distribution, reflecting for our revenue XXXX. growth continued In We higher renewals, quarter, growth, a and of all second percent our and in XX% subscribers expect revenue and retransmission growth single-digit distribution, year digital approximately net of this of representing continued ongoing about the resulting from revenue to revenue. source rate accounted other to a contract revenue XX.X% other our going contribute

growth nonpolitical revenue levels revenue XXXX of with high expect we Looking for overall similarly all sources from forward, continued of diversification. the of our balance

business profitable discontinue digital certain last second results digital million, revenue and from the profitability operational as digital as again our to strategic last over actions lines to up benefited with effective XXXX year approximately over digital well fall. spoke to total of realignment increased The quarter Speaking operations about XX% deemphasize year. $XX.X substantially less last the we and

audience and Nexstar's digital top of networks in strategies and impressive usage advertising integrated acquisition revenue, consumer business services continue touch all points. strong our by year's increase our contributions development and digital was which our XXX-plus and is digital local driven our across with agency last content of fully from Our deliver integrated media stats our accretive significant well. line and content to audience engagement performing BestReviews, growth year-over-year

of month Digital's when engagement #X record We continue news local billion growth to including minutes of and all-time of of XXXX comScore. X.X billion, indicators, total views highs key Nexstar's build on X.X our multi-platform reaching and ranking digital every delivered year total XX.X audience performance properties users across for all total in XX page video million, and to views according monthly the strength billion, average of

from With from our in forward going expense our savings should we the of we combined audience strategic cash businesses, In expect of marked operating see mid-X-figure and growth the XXth digital Nexstar digital. company's our digital the resulting of June, continued revenue strategy, content broadcasting of growth year this its alignment realization and flow momentum and anniversary development with our founding.

our see across past the local we're X.X our With year the of extending that highly Nexstar and strategies shareholders. producer management, decades, news our and our the disciplined over as the let and company's and delivering is and term excellence. success our results our the industry-leading we've local top culture content M&A actions actively provide levels exceptional committed to business turn deliver to innovation, of broadcast of expense over growing communities growth We foundation transformational we scale to that revenue and service we're record confident content the review financial We've over built approach and and the America, to and Tom? sit now at outstanding diversification for continue the the group operational monetization. taken Overall, with positioned to me these upon long for mobilizing localism opportunities allocation. to that resources near and highlights to to financial capital while in North financial leverage largest Over Tom said, call monetization returns update. many the risk-adjusted and

Thomas Carter

and and balance now of provide an I'll guidance. Nexstar's after review Perry, sheet data, our points QX update and structure statement some morning, on capital which I'll Thanks, everyone. good income

revenue to quarter Second net increased billion. $X.XX XX.X%

revenues increased I'm to revenues -- Excluding to increased and and quarter the rise in $X.X approximately WPIX sorry, $XXX year-over-year revenue television core increased agreement million, net million. York, occurred reflecting successful up fee acquisition from On in ex revenues expense at over of December revenue total of -- digital expenses XXXX. expenses second the revenue digital Total digital to our cyclical advertising alignment operations ad advertising of a and XXXX accretive related advertising well revenue were $XXX acquisitions. renewals million reflecting XX%. comparable to political, fourth distribution SG&A Distribution contributions and political revenues XX%. trade and reflect reflecting core BestReviews. $XXX revenues XX% million, Broadcasting's quarter the substantially revenue anticipated XXXX television The the XX%. prior New and XX%. up advertising XX% quarter increase were of up reported to Net revenues from XX.X% of up to basis, expenses in were reduction fee million, both XXX primarily station as up net acquisition and as $XX period, same-station Mission to digital our in digital profitability Digital net with year-end Core XX% higher year second direct in increased which Distribution the a political were XX.X% up XX%. operating revenues net our was recovery

revenue, declined ongoing basis of emphasis and XXX combined management As across second driving efficiencies reflecting direct SG&A net organization. total OpEx Nexstar's expenses a on percentage points expense and the quarter

noncash guidance pandemic. was over in excluding our comp in million pro expenses second were expense line that to the as quarter the corporate expenses, program $XX X% with Second the same expense period quarter. XXXX forma certain we Total were for in to including $XX approximately approximately fixed started in suspended of add expenses, of up response million, back XXXX

transaction During million. second quarter. Spectrum CapEx $X line of million less in million quarter slightly Ongoing recorded FCC guidance. totaled from reimbursements $X during than of the totaled CapEx the and quarter, received million with approximately onetime approximately the $XX.X cost $X and was repack we our

anticipate we being down wind all activities for repack CapEx-related spectrum reminder, a this later reimbursed those as year. As fully

million, Second $XX interest compared first Cash $XX QX due $XX in approximately was rates total and interest 'XX. expense borrowing expense interest last approximately to decrease $XX quarter amounted lower to lien million XX% year, down from of a with levels. lower million million to

million, our largely enhanced to the $XXX of half of operating reforecast quarter of XXXX in tax came $XXX due payments guidance above for the million Second of associated timing were first taxes profitability and our the taxes and in and cash cash year.

in $XX to equity investments the from strong TV XX% as entity that Network During in produce ownership second million related results. to reported approximately continues we Food quarter, distributions the our

margin exceeding prior business was XXX and cash improved meaningfully timing model, EBITDA million year, free the exceeding flow the basis points while increased quarter strong by million of of of $XXX budgeted $XXX our adjusted Second the adjusted payments. XX% amount with over tax EBITDA our aforementioned in leverage expectations, consensus of XX% cash impacted

raising our Perry are cycle and our of results our billion, $X.XX free internal to returns forecast, remains that mentioned, our which enhanced we with our of pacing -- to approximately growth, guidance forma the annual 'XX-'XX by operating ahead As supports Nexstar's view cash average pro capital million for on plan. shareholder year-to-date returns flow annual $XX path expanded

tax come and $X which ahead, be approximately the expect project comp be Looking operating to full half to approximately the recurring of cash so are exclusive far. million cash for for year -- million $XXX previous we year. approximately corporate Operating of million stock on for the largely $XX we of for expected corporate than the CapEx $XX is 'XX approximately and are projecting of comp Transaction taxes quarter overhead, now million at million to should third our profitability, the and improved million million the quarter less are quarter. approximately be and $XX continue the to transaction cash for million quarter, to in Noncash overhead $XX continues third static million first $X for for expenses full $XXX guidance. quarter in approximately we the million with year, $XXX expected full year. $XXX cost $XX realized to and for million approximately the for the be

quarter activity. rates savings the cash lower for $XXX We our recent in $XX full approximately the outstanding for expense related million to borrowings, expect the decline and year, refinancing expense interest reflecting LIBOR Nexstar's interest million to third and

which of in TV full recording year. were million QX $XXX the Network approximately Food distributions, for approximately $XX we million anticipate 'XX, For

quarter, During general the pay corporate under facility. net on fees Mission share to $XXX facility Loan new new million credit Term closed Mission's purposes. B Term for Loan a B and for second Broadcasting down Nexstar used existing service revolving the The proceeds paid to borrowings were

approximately with the the was Loan concurrent addition, facility B under to Mission In quarter facilities. million Nexstar's $XXX its Term million total availability. revolving there commitments credit of of revolving At credit $XXX reallocated available closing a facility, X end, the of

was debt notes senior billion net Nexstar. markets purposes Turning billion for lien compared covenant was $X.X XX at with Mission's billion billion term sheet, in $X.X was December capital to to to Total approximately at of in 'XX revolver balances, billion, $X.X at of June approximately $X.X debt and $XXX XXXX. to balance Outstanding balance first million. amounted XX, Net June transactions. net approximately loans with and the XX, X reflecting the the cash at limited XX June $X.X at the consisted -- issues

lien June X.Xx at approximately our was compared which XXXX, to 'XX first covenant net lien first of XX, below at Our year-end well covenant X.XXx. ratio X.XX is

at total end XXXX. X.X% to at compared X.X was Our quarter leverage year-end

which only a covenant on financial our As reminder, Nexstar's debt, X.XXx. is is aforementioned first lien the

focused and well capital remain we of value. our to the our end capital shareholder always, additional be XXXX. below As at to allocation expect leverage, Consistent net commitment Xx activity actively absent strategic Nexstar's on and structure managing enhancing priorities with

the our returned of $XXX a dividend During million cost quarter, to million million. payment shares of for shareholders cash repurchase approximately $XX total we through second quarterly XXX,XXX the upsized through and $XXX of

generating in growth, million recovery $XXX and during outstanding shares shares has A $XXX approximately months first repurchased repurchase million under to stock dividends million Class of approximately X flow the our available as core free double-digit of common our all allow date, well generate has Reflecting authorization. repurchases of and success and year-to-date Nexstar stronger-than-anticipated share 'XX. and revenue faster XX.X share advertising shareholders returned as million distribution continued team's Nexstar Our and to $XXX in cash to through digital

our will deliver our of return Nexstar on reduction plan. initiatives, continue to leverage addition to In capital

cash approximately in second operations million activity, we Mission towards markets debt allocated quarter July. in Following Nexstar $XX reduction earlier from capital and

transition. the As allowing Perry, coming her advance Wall of I'll over working of to Nexstar's weeks, to seamless introducing August role and Perry be the to Lee Gliha, to very I ensure X, who working extending to will Officer. of long-term as pleased CFO forward results. mentioned, with Ann we're In Nexstar look record our to Board are coming assuming the me Lee strategic financial transition our the Ann in be while on I on followers my confident Ann objectives our to Directors months. outstanding Lee to with welcome Chief position Operating and fully a Street ability

capital with debt Looking operating in across flexibility XXXX. a the is quarter our growth cash-generating and flexibility cost plans year-over-year summary, across leadership, for growing In with our great expect results scale, returns position, capital our ahead financial operating continuing all of generate third strong perspective. maturity are from and business. while enjoy We shareholders generating momentum our to reducing of our businesses, sources nonpolitical in capital us revenue which and while provides we a deliver structure to the throughout shape in investing

local assets national our to visibility and results. stronger. our our operations, and has foundation our model, of service The solid give the and and Finally, consistency been advertisers communities our resiliency of never local combined with business to

pro initiatives, and an integrity and local collaboration, a mission. each community free per confident that cultivate share. Nexstar, flow approximately culture With celebrating $XX.X accomplishments. our our and billion innovation, member's approximately such, enhance in cycle or our At to cash we contributions deliver to annual ability is shareholder team and $X.XX upsized ESG inclusion, diversity, over we value of As ESG ongoing remain guidance to forma 'XX-'XX the continue average respect on values

integrating our and early our time, We the into at resources are ESG ESG stages and of thinking. necessary the the keep of media the to energy businesses forefront and are philosophy in of devoting principles

believe this continue expanded In corporate now financial and will hope always to for other policies website. good continue codify on ESG ESG you -- business regard, review for Perry for and That to and we remarks we're turn our our that to call, the corporate the review have and for have I'll to and the on responsibility that human pages responsibility is social it disclosures back I closing doing progress resources We good firmly into concludes on practices Nexstar. some this these our before over take front. Q&A. opportunity environmental,

Perry Sook

Thanks very much, Tom.

to levels extremely serving pursuing in shareholders execute increased content flow allocating returns to of growth. continue and return drive maintaining strategic modest focused capital leverage well for cash driving including free our monetization our to investments priorities, and accretive local M&A on future We business communities and while growing our

to continued flow current excellent near- ahead, path the delivering and Looking upsized clear a and the of cash we for free shareholder long-term cycle enhancement our targets new in have visibility value.

line, of we strategies balance terms variable maintaining successful As follow the building sheet. the and control fixed of optimizing close and established in top we've costs the

new shareholders. visibility consistency our added Our these our results for disciplines in and while areas have value to creating

billion Our overall delivering the highest new operations average among cash for that cycle flow free pro annual our 'XX-'XX per the and strength free in to guidance is the cash for the underscores $X.XX flow and forma ability market. of resiliency continue of share

strong increase dividend of allowing Our capital return million to by current repurchase an track flow shares reflected X-year generation $XXX cash initiatives record additional our increases on meaningfully you continued for Board Nexstar to behalf and and management to joining of worth for authorization free on and up our Nation, We today. or interest, annually our your support of and of Nexstar as thank team, look its to our of us accomplishments XX% continued growth reporting and forward more. our entire is the

So the now address to Q&A specific to interest. let's Operator? open of areas call any

Operator

We'll from Wolfe Instructions]. John with [Operator first question Research. take Janedis our

John Janedis

between COVID you Perry, sports over growth And third quarter? local few questions. your in bigger with And revenue a in about as networks, a I'll had ice. years? from couple do can the tool? last you're seeing to talk But in political separately, programming thinking a keep to platforms. I serves One and and what about the advertising. you champagne audience of know retention their to on extent then of How I And trends have are the what is, look, noise lot the year there's pushing opportunities expect improvement the auto? you next picture viewership underlying streaming

Perry Sook

Sure.

I disruptions. First, words, exceed that will automotive But see relates coming woodwork. XXXX ago of of their revenue. and -- And his advertisers will levels substantial to they ability be core out from as deliver and improvement, supply category of that, The to of tell in that to is the due overachieve a an quarter, yesterday President for on was improvement chain we one outlook of the still and our rep is they're back weeks with in they'll business on phone you the even projecting I third achieve the firms challenged to terms just somewhat perhaps 'XX and pending this -- levels X year. balance it

trend third at teams are have and together. underlying feels the forecast But pacing we quarter on They that at pleased a have that. very projections above our the would pretty just or execute. good we're So basis, management our to and the put support collective now

there sports consumer. And nail I local the quite And of, you our to what hit head. we're thing we on are outlets the ones that content deliver to programming, sports control involved content. programming the before. is can all than And more importantly, which with, the is our was relates network affiliations, control more it we're As we our From think but part more obviously, frankly. ever sticky on perspective, the only available in the of local our

content, our and of continue of digital, across providing mobile increasing content the So the platforms, to as local amount local local amount we linear all well as differentiating the television. on of focus content

business focus the and So to we'll that's continue continue on grow. to

based heritage that content. owners and that. differentiated self-fulfilling lot distribute opportunity we the of environment can dispersion a women marketplace we in in support done diversification is And the and can't offering and months of are have. We that remarkable a And we've other auto audiences sports we like so Hispanic having all challenging some provides well for there. have that the work content of we things a advertising to terms like content with whole that African-American into and projects copyright maximize Olympic station how that on, of But on a very with differentiated about projects the somewhat prophecy decide also ad or do exclusive the think that, We advertisers.

So full raise campaign for hunger we one Feeding which will and be about month and have September awareness in coming a security company America. with food America, in up of September total to

So into we tend from stations and content support when across perspective service Nation company the the then things, we kinds of initiatives. for get lean advertisers these public to them, a and whole support also behind News

try continue So and we are focus will to those in control. to the are we're things in do, on and those things the which

Operator

We'll Dan next from Kurnos with question Benchmark take our Company.

Daniel Kurnos

Great.

Another solid quarter, guys.

and the surprise of And kind expansion then Perry, really no the there. about guys augment News Nation that sizing here, guess, It you a just starting just think obviously, M&A how I how remarks digital be strategy guys diversification in is your about used announced, there growing point conversation. to like the other it, think, you sometimes seems it. really On the color of you optimized little a either -- call, I the bit just talk some what as you performance, a we steps Maybe of pain sort direction to programming. next and would about you're portfolio Maybe have of what BestReviews now prepared pressing of here? the why kind are especially that from be and there, mentioned doing. it's think to helpful. And get you're with momentum ahead pruned seeing kind more of the in

Thomas Carter

Dan, then address the Perry digital question, News I'll I'll take Nation. let

BestReviews, it's from performing Specifically as expected. Double-digit improved growth, EBITDA. revenue

investment historically. year well. of so far what The done number of of BestReviews done making in this good as they a reviews about We have are amount fivefold that is it's

across end third obviously the local feeding and on running fulfillment delivery the not of of all you own that's websites Nexstar, quarter, our And all we're pipeline. up websites be go those and from but the yet, customers. we'll own So by they're Nexstar, if on our and

very a that's good for equation us. So economic

the it's into gives it about excited an very affiliate we're so retail kind point model, of because advertising-centric. and entry consumer also or advertising-driven So begins us not that space. It's an

kind valuable a of really, diversification difference more forward. that going and any different as consumer and on it's see good And That's cycled generate media businesses in platforms digital. I it. profitability distribute of we're as making in perspective. after digital think But what on our performance many and on the we We doing down be we that's from broadcast, company. So in of what which to linear the it that a we in biggest we're we shouldn't comes content, than digital is it we're what television are content out prior or you'll we is a then different some of is can. our monetizing

got that's for from to our us period think degree away I of And that. perspective. time. we financial And has refocus digital from a on helped management a think in I a proposal new that winning

continuing you it Perry? see from from the be perspective relates numbers, make great engagement digital. we're that et pack from As of to as the numbers, of cetera, to the and can leader user progress kind

Perry Sook

this on news be and this ongoing, another adjacent acquisitions, have will will And in that that one power month including one number conversations afternoon follow-on thematically would happen building portfolio. and terms our that a would content content later of we that of happen later

take think thought cost our couple may have CNN, And accomplished be have I cheered this call, by to as of were last time. mentioned announcements to that we're we and per getting I Nation, We've News both scatter in expansion bringing to morning And would relates same on it of would then advertiser which market show prime our the point also I Dan certainly years base. achieve. an Abrams and a As those the in a things. announced September, creating

smaller. a sure that hard peer because a considered gate. very team, to is well Now distribution obviously thought getting would of we're that longer and work period we again, take were that's of the in the in ratings to we're in of a news our Michael the strength OTT make Philadelphia have are space achieve team a our smaller accomplishment Zimmer I But full platforms, rates owing short out time. which, Dana the positioned her and on significant group virtually distribution than less Sean than year and to team we And the for Corn Compton and

millions the have one promotional owned as and ad operated of off by stations Day Labor on of country. Nation XX% for crafted house Leo brand-building of outside our commitment and social we will campaign kick reaching the as media Chicago, spend major country in that So and Burnett other double-digit post the well folks on in a platforms the agencies News at iconic

its XX% drive space additional feel infancy a as sure the no that that CNN earthly infancy means as the I idea. promotional was. launched we to But #X as is that of but News one. our have embarrassed country That's awareness. Nation that, we job well news their has -- air, Fox News I'm raise, country networks. now up about programming, So on very and We're we're said on very content. what shelf we solid XX% increased anything by its of the job the we in additional or all could And not building that knew foundation. feel in of I'm the platform, in taking XX%, not put to the Nation, we confident When up

dayparts to XX:XX way in of through just the are our we'd structurally. will ahead to be I the Friday, a.m. thought September, shows X launch we of p. out program once We Monday we And where we'll build everything except rest for continue

at broadcast the XX/X focus as toward build So through those out Friday. as will that's weekends and Monday out attack the we we move well. filling then for is least XXXX, And XXXX schedule,

best that positions very at see the attract, we've of what knowledge. part everybody people I'm cable particularly to able key help in this. calling our us everybody the gets doing, And want been pleased And certainly in pleased progress know to you're just we've the It I'm people doing, I sees elsewhere management the what of news have drive at and it. it. that you're to happen happen. be to made. we doesn't saying, They extremely I -- I So doesn't it,

as feel started got tiny. continue and only to again, are build will with we The good momentum. we've that numbers grow. the So profitability, numbers But we

Operator

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

James Goss

forward, look it, has XX-year review evolved this the into discuss clear I'm and wondering, maybe to that It you as and is very back solid national at Nexstar good it's company. point, you platform footprint the advantages feel key your beyond your national Nation. with you enabling stations gain exceptional on collectively and national News for support impact the and the individually enabled in

get how For the you at you've benefits any national look to changes you from other ads view? the created? do and regional or platform example, perhaps any you exposure greater And spot would

Perry Sook

have when was the and closed the people and but And the powerful scale I'd XX% group. say, October or to other of a serves a also full with integration content Nation revenue. that and say your the we somewhat number share of foremost, the think the News by in in benefit News we that the and expand of X Olympics beneficiary you that and not Nation, very the together station came -- in tool the scale time the platform, locally. your platform. overhang the And owned And masked only was are synergies But all for distribution pandemic last applies be Nation the during overall country, group. stations content our our Tokyo of promised also -- the people I and of seeing realization with in 'XX of When News one I as the the got year Bureau our distribution scale. Tribune we station we've have distribution. reach the that's on Washington covering and first major that might and would But increase year, we the first now of of pandemic. interested in XX% is power I across we feel it negotiations again, operated earning

return content people well the marketplace kind better custom where there we're or this Our custom athlete affiliates profiles. content XX:X in an for money. than And a generating we linear might It's outside actual school because have as an gone amount broadcast. of sponsors non-NBC and those have incredible of affiliates, of on raised that those NBC the to investment for of as sending

as treated think media realize reductions. that great among recruitment how the market, I the at look forced a because pandemic, in move also, start we the a no career tool the of to it's may I And be folks certainly now and I a that marketplace, news leave, in if end confines up leaving that And cable benefit to a do as the of aspiration, dividends well during as all large network our unique salary can marketplace, major your small you that during on residual our benefit national Nexstar our layoffs, in can companies. pandemic people going-forward you recruit we on the had without continue company new terms that, people, into So also no people employees think think the you basis. no your Nation. when unpaid actions And is market pay that towards will of the the we of a

I those things. of top the some line are think So

proxy operate sheet a XX our position and think much diversified company. the of country. states, I because being for sheet also a pretty large breadth financial when you're our the balance you in and size our And is balance of

national of presence, build X XX news and -- a focus for our local not of X.X terms lot top years, play. years, in be Street beltway into aren't beginning more a think we XX only so that where that's digital just over Northeast apparent here, to #X, corridor And do news, all because and will company the next platform at the we're benefit the as we really see the come statistics. in and readily where top I And have things Jim, in inside a that level that the to categories is we comScore or is time, perhaps are which all we sales aggregate a Main the

We have that the platform linear of country. a XX% reaches

to that have mean in of the a more a I that, news come. of just first But of all go-to-market network top powerful reached we're what cable able We very XX -- we Put we're million is that homes. opportunity. that's being together, probably us you'll to the And that to have and inning over plumb team on think -- a time. that could

James Goss

Great. Okay.

to Just And... a other News couple Nation form News the or rights X spot think then. having Once that might some of frame resolve of things cover time that Would app on you smaller too additive? you issues. Nation distribution that would a XX be

Perry Sook

Yes.

terms the on as app into not News air in Nation today, as putting a considerable We linear especially of stories, news important XX/X. to when want covering app we be and now we're and have breaking are resources channel the the that. I

we much could around We And country streaming again, News we to a that not a make firm we're get Your question we Nation other that streaming sure have we makes that. it and a to a September, -- a opportunity and in on air or doesn't take footing some News may for incremental only treat want because and from the content so develop is make there around opportunity it could And think there. I with of this Nation. our on air it but lot right launches spend the direct-to-consumer be there's whole discussed of with fraction content content? of

on in focus we platform, to We then starting can the linear I we required make to nail the and to want coursework but are sure the see begin growth first. electives,

James Goss

Okay. are And then included affiliation the directions. stations retrans agreements your in last providing Mission confirmation, in the negotiations totally benefits thing, point both scale of and

Perry Sook

No.

under negotiations, And station behalf are Nexstar we own negotiating that of it PIX As behalf on York, relates in in retrans we New markets rules. own, to because cannot marketplace. in operates we of can that don't negotiate not that FCC on that's We a in. the permissible does we Nexstar stations -- and

at for which the we that's mission only station negotiate distribution point So this revenue.

Operator

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

Steven Cahall

I is, that fact, retirement in those said one speculation about was your that of and I maybe speculators speculation. admit, Perry, you just incorrectly.

nonstation your it months. considerations on material So on the to point? does with was year bigger if you've focus over what M&A? in with free it have and Lee Tom, I maybe bit a cash joining free got we you expect topic should put no really wondering the is And flow next a in even maybe finer retrans in mean could recovering retirement in priorities, question Ann it. to speak cash is, for auto, just auto just to matter And And acceleration then, next at flow a the more of And Does on that allocation in there maybe banking, a and contracts? point XX any background this particular, would the capital extend of maybe to that guidance? out part her crowd the expect guidance, you shift political

Perry Sook

We Well, see I if you're seeking. are there going that number far. take am me, our things here. what company, this have of Nexstar XX say I'm founded through toward our to highest of spectrum, which spent want opportunity we're we monetization years thus a will now which But is assets, that's I the some to assembling what Nexstar obviously I And and not time. pivoting includes

to see here. through So there are things lot want I a of

of hurry conference that those And get -- Tom my but far see contractual and to got as that. as willing We've is from think points current other to the a will the lots all counterparties, that. do. I'll I so speak that's let beyond to I but suffice go my And beyond think be that relationship to current of on And I end date. -- raised. don't can on to supporting around to want the standpoint. the extending negotiate probably you'll so with around the there interest current in say and be it me I about But god contract you call no health

Thomas Carter

With the to going a in say see to regard and total categories, to sports last of of this Right that advertising recovery, see be as to this will particular, et to what forward, categories forward not recovering a I'm auto that. see to those specifics in aren't going auto percentage during project gaming was to don't revenue number cetera, historically. high continuing strong. now, all we XX XXXX. particular, in the teens. but have say it's we in we mid-XXs unintended regard give I do going going benefit other betting contributor would with We service, going percentage it arisen XX away to months. want of mid- because that mid-XXs And the as to back auto, I is yes, well

auto addition of you're XXXX wouldn't is right, part the and it projection. from the of projection I very be addition the say than is driving will more in recovery that political the any will auto. in because factor So robust exceed incremental

Perry Sook

category revenue not our going service planted that campaigns that has necessarily an the aside, now of auto which on due #X are think about #X digitally, category as help-wanted to category, the diminishing. Just you as and our probably intuitive is out all is there. when category growing, But it that's auto

Operator

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

Kyle Evans

differences with one little News local, I Within follow-on. you're to Nation? regional you national, Core, talk seeing And have more what specifically a about any could regard and

Perry Sook

there lag -- recovery. going behind. it the killing it. part can all the I just of are regional given been strength West just station year. the our continues on bit behind stations Coast Los at lagging kind Other of some of York Well, open Little Angeles, and kind has think the differences, to are I of business for Texas country a in again, New are,

the were local both substantially. local if over I So But gave no national, more by and you the there's of on I outlook there's couple in market It's -- roughly. QX no weeks. in look really national their last marketplace. but broadcast, just but up then see numbers -- commentary at our than rapidly strength improving situational -- We national for

replacing amount and So Nation we we wanted that. the to News programming we Nation, in the upfront, of and take entertainment the got to -- CPM money relates we where programming, it to as I wanted News and -- substantial over increases think is took

to of new of I which the to think being and able debut all we then hope sell inventory numbers, those our for -- positive. held shows back back we held off be to scatter waiting money market, which for --

we team, even made strategy money that the -- of So was in quarter. agree sales Chicago in our I But with. station which second the our radio

as stations, Nations, we well had our as results, radio. digital News positive So diginets

unit in flow. have cash quarter second in company So positive wasn't business a the the there didn't that

say it's that put -- me broad-based, I so it's And Kyle, would let it way.

Kyle Evans

Great. the any have And you then maybe political cycle? updated just XXXX on thoughts high-level might

Perry Sook

Well, of in on the a goes it all continues that. with as the like with states recall more uncertain battleground whether and time to in senators they'll California retiring and with Pennsylvania and be the become Ohio interesting situation, governor

Republican of control recall look races and with as which at guidance be presidential that would close. money we continue But be than project -- -- that not 'XX XXXX, for positively are but I fairly So that in elections tighten. never California our dynamic control in of we to a the to those spent eclipse did ways, But we've impressed we ever team political in Senate, on. we're these that for before. fundraising Xx I met GR more of Washington there some do a the the we've expect it's couple the Democratic polls the both in seen our obvious, And with and won't now, the overlay, that's We representatives and election. right GR got the weeks going dollars and ago a house, We'll couple of could million probably the continue have

race we We'll political unknown bringing more money fundraising, that be And And thing. this of had then to so race by continues do, there's we as was that in but always ends always for the forecast check happen up that, none that in. our to that year. going the the project

So of quantum we continues to eclipse terms in the 'XX. XXXX, improve that in dollars actual still our we'll don't but of project we'll outlook see

Operator

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

Craig Huber

I retrans question the in Xs. are Last it stable. down trends My was said year-over-year Yes. low first the quarter, think on I subs. you said And you believe

year-over-year. roughly X% I means the quarter in that assume So second down

Thomas Carter

would the we majority last to The second unexpected the trailing quarter, isn't of a relative second the of improvement because XX sequential show first year to quarter on saw a disconnects quarter basis which when compared is the COVID.

second second year. be to quarter the be this better year, expected So last of would than of the quarter obviously,

Craig Huber

a bit X little also, grown here for advertising it's or What your percent optimistic betting. from a Obviously, is or X sports core of X about that? where can you. like now? Okay. are can you speak just years How more then that weed be And

Perry Sook

don't that to Well, it's category and it's are percent XX states It's become we sports quickly, But percentage it give half on become a betting. -- about that approved contributor top double-digit going more we're But will as here the I expect for into of top now. could it And very think to total a our X a it's we revenue. move revenue. a us fastest-growing the for obviously have year-over-year basis. category

Craig Huber

then still you've expect digits. question, up and said for low past, be net up your housekeeping the to my year reasonable high And be to digits next year retrans that in mid you this for double single other Is in mind? to

Perry Sook

Yes.

Craig Huber

tracking ratings, news at last how local Okay. years curious year-over-year, I hear that's don't so Very to versus know here much have be your but the before fingertips, where question, then I'd your good. X ago it you -- not And about pandemic? was my if but news this

Perry Sook

depends them across do or it no with below of by minimum shortcomings COVID access as declining meters XXX the obviously, them market and rule to their Again, samples would market. to And say a with on to levels houses fix or turn But due markets. whatever. I team Nielsen

is X at but years than double-digit from steady were our this at think from an major the I where X but that higher state the we markets. quarter, were time in particularly the peak. ago. the seeing year, of prior years all across down decline we higher That's and we're and substantial than markets, level They ago. are increases second -- it third were they to were They're average numbers year, their over Our our but applies -- peak ratings still last

Operator

next [Operator Gould We'll from Loop take with our Instructions]. question Alan Capital.

Alan Gould

to for leveraging to And broadcast even Perry end to get well less referenced Perry, questions, much the spectrum? given two Xx than Xx, you from now. heck digital do one more acquisitions and for the digital mentioned one players say, up use buybacks limitation year and now? you the got and more thoughts leverage at closer be you're to Have Tom, that the spectrum. digital -- right access Any aggressive interest on you would the to, of for right Tom. Xx got on the share you continue be I've

Perry Sook

speak question. question briefly So I'll answer let second the first, I'll and your Tom to then first

Thomas Carter

relative probably Sure. we the first second see Well, pace buybacks the would I it that's indicator probably pretty say going, in stock activity improved give didn't But especially same time, flow increased more us think to of probably to relative people would that a escape opportunistic expectations. you I the still cash of that think credit the of where quarter. than good light at we original free in are quarter I for.

we little we of advertising our from back lose leverage a bit XX-month do political in on XXXX. as depending for we stock So as a basis I trailing half would of allocated go in substantial will based say stock amount price, the year repurchases? quarter it's have But et the a fourth on up Yes, the -- cetera. lose second QX

now. we'll at X.Xx So we're above be still below be increasing -- will going It we're the Xx. be to

free continue repayments, minus go to will I repurchases. vast the and make cash of cash to available as the think stock but of dividends modest majority cash flow will flow principal We flow free free available

Perry Sook

scenario part our we But That borrow we buy opportunistic. continue point. imagine this back DNA where And point be we I this a would at like don't in doesn't to just stock. of know money at it's to that will time, feel

out our end portfolio the XXXX, ATSC cover year, have, of regardless As Nexstar end TV it X.X, X/X build relates at this expect or we TV by -- do. of to the approximately with just we stations the others that of the this have by will stations of stations covering XX% -- U.S. of Spectrum, what point, we in households And country. TV NextGen

can anybody So drive it. to charge before to the on tollway have we build we

to available, spectrum year something aggregate X.X so get the maybe And maybe that next of of if we others, with XX%. I that's country number is half think and north of

-- you Michigan, the build broadcasters, I looking in test be have an early from who you of I other we hearing can couple cases. art at use in of to the think next just test will weeks, stages automotive got in a on possible. of conjunction we've then the with -- begin going mean

XX% our the cases signals begin and be out and aggressive year. NextGen our next being to the can to the building value So at lever to substantial we're for testing that signals X.X the believe which first, in platform that's to TV least or our we and means a continue is part and then we enable this spectrum of we've country by marketplaces, the end ATSC for. map of able in bandwidth that the industry. company and of the But building got We'll that use receive signal,

Operator

I time, turn any concludes remarks. That back the conference you or to Speakers, today's question-and-answer session. will at over additional closing for this

Perry Sook

reporting in much our afternoon. Thank a early back to QX for you on great Have We results. very joining us forward November this morning. look

Operator

Thank call. today's participation. your you concludes This for

disconnect. now may You