The ratings reflect Nexstar Broadcasting Group LLC's cash flow diversity from major network affiliated television stations in 13 small-and medium-size markets, the stations' good positions in most markets, the business' good discretionary cash flow potential, and cash flow improvement achieved at acquired stations. Offsetting factors include high financial risk from debt-financed acquisitions, the potential for future station purchases, as well as a competitive, mature TV advertising environment. Nexstar's revenue for the first six months of 2001 declined 8.5% on a pro forma basis. The 36% EBITDA margin is average and could decline to the low 30% area by the end of this year. Total interest coverage for the 12 months ending June 30, 2001, is thin at about 1.3 times
