Nexstar Media Group Inc.

Overview Key strengths Key risks The company's reach of approximately 70% of U.S. households positions it as the largest affiliate TV station group in the country. Shareholder-friendly activities are likely to keep leverage in the mid-3x area over the next two years. Distribution revenue, currently 55% of total revenue, provides revenue stability. Operating performance is susceptible to economic cyclicality because 35% of revenue comes from core advertising. Solid free operating cash flow (FOCF) of nearly $1 billion annually. Uncertainty regarding the effect of secular shifts in advertising and subscriber revenue. We expect Nexstar?s S&P Global Ratings-adjusted net debt to EBITDA (calculated on an average trailing-eight-quarters basis) will remain in the mid-3x area over the next two years. Absent potential acquisitions,

... Nexstar Media Group Inc.'s leverage in the mid-3x area over the next two years. We expect Nexstar's S&P Global Ratings-adjusted net debt to EBITDA (calculated on an average trailing-eight-quarters basis) will remain in the mid-3x area over the next two years. Absent potential acquisitions, we believe Nexstar will continue to return most FOCF to shareholders through dividends and share repurchases. While we believe Nexstar would like to acquire additional local TV stations, its TV station portfolio reaches 39% of U.S. TV households after the ultra-high frequency (UHF) discount, which is the maximum amount allowed under the Federal Communication Commission's (FCC) national ownership rule....

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