Nexstar Broadcasting Reports Fourth Quarter Net Revenue of $74.0 Million Reflecting Growth in Core Ad Revenue, Retransmission, e-MEDIA and Management Fee Revenue

Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) today reported financial results for the fourth quarter ended December 31, 2009.

Summary 2009 Fourth Quarter Financial Highlights

Nexstar reported income from operations for the three months ended December 31, 2009 of $14.1 million, compared with a $17.5 million operating loss in the quarter ended December 31, 2008, which included a $33.9 million impairment charge. Broadcast cash flow totaled $28.8 million in the fourth quarter of 2009 compared with $34.7 million for the same period in 2008. Adjusted EBITDA totaled $24.7 million for the fourth quarter of 2009, compared with $30.3 million in the fourth quarter of 2008. Free cash flow in the quarter ended December 31, 2009 was $13.1 million, compared with $7.4 million in the comparable period of 2008.

CEO Comment

Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, "Highlighting the benefits of our revenue diversification initiatives, Nexstar generated strong fourth quarter financial results despite the cyclical impact of significantly lower political advertising. With the improving economy and the successful execution of our new business development strategies, Nexstar generated a 6% year-over-year increase in non political gross local spot revenue and an 11% rise in non political gross national spot revenue. Of note, automotive related advertising rose on a quarterly sequential basis throughout 2009 and in the fourth quarter improved by over 25% compared with the third quarter. Although fourth quarter automotive advertising revenue declined 7.7% from last year’s levels, Nexstar generated an overall increase in billings from its top ten advertising categories in the 2009 fourth quarter.

"Reflecting further success in leveraging our core television operations into new revenue streams, these gains were complemented by continued significant double digit growth in fourth quarter retransmission consent fee revenue which rose 62.0% to $6.4 million while e-MEDIA revenues rose 19.6% to $3.4 million, a record level of quarterly revenue from this source. In a year when the majority of our broadcast TV peers experienced new media revenue declines, the continued outsized growth of our e-Media platform again validates our differentiated approach to this business. The 2009 fourth quarter represents our thirteenth consecutive period of revenue growth from Nexstar’s community web portal strategy and 2009 e-MEDIA revenue posted a very solid 15% gain over 2008. In addition to the significant year-over year revenue growth from these sources, Nexstar also recorded approximately $0.7 million of management fee revenue in the 2009 fourth quarter.

"With our focus throughout 2009 on expense management, total fourth quarter 2009 operating expenses declined approximately 6.3% from the same period last year when excluding the impairment charge. Free cash flow of $13.1 million in the fourth quarter of 2009, a 78.1% rise over last year, benefited from reduced capital expenditures related to the completion of digital television conversion spending and a reduction in cash interest expense.

"We believe our fourth quarter results provide strong evidence that we continue to be an industry leader in generating increases in core advertising activity, an important industry metric, and this trend is extending into 2010 and will be reflected in the first quarter results and throughout the year. With the ad environment improving and auto advertising increasing, Nexstar expects a return to growth in 2010. Operating results will benefit from increases in overall advertiser spending, the strength of the Super Bowl and Olympic broadcasts, significant political revenue and continued growth of revenue derived from retransmission agreements, e-MEDIA, and management fees. In addition, with Nexstar’s de-leveraging initiatives, streamlined operating and cost structure and limited 2010 cap-ex commitments, we have substantial operating leverage in our model and are confident that Nexstar is well positioned to generate significant free cash flow in 2010 which will be deployed for debt reduction and new value creating initiatives.”

Outstanding Debt

The Company’s total debt at December 31, 2009 was $670.4 million. As defined in the Company’s credit agreement, consolidated total net debt was $495.7 at December 31, 2009. This excludes approximately $132.3 million of senior subordinated 7% PIK notes as well as approximately $42.4 million of senior subordinated 12% PIK notes. As defined in the Company’s credit agreement, the Company’s total leverage ratio at December 31, 2009 was 6.8x compared to a total permitted leverage covenant of 8.75x.

Fourth Quarter Conference Call

Nexstar will host a conference call at 10:00 a.m. ET today. Senior management will discuss the financial results and host a question and answer session. The dial in number for the audio conference call is 703/639-1212 (domestic and international callers); no access code is needed. In addition, a live audio webcast of the call will be accessible to the public on Nexstar’s web site, www.nexstar.tv and a recording of the webcast will be archived on the site for 90 days following the live event.

Definitions and Disclosures Regarding non-GAAP Financial Information

Broadcast cash flow is calculated as income from operations, plus corporate expenses, depreciation, amortization of intangible assets and broadcast rights (excluding barter), non-cash contract termination fees, non-cash impairment charges, loss (gain) on asset exchange and loss (gain) on asset disposal, net, minus broadcast rights payments.

Adjusted EBITDA is calculated as broadcast cash flow less corporate expenses.

Free cash flow is calculated as income from operations plus depreciation, amortization of intangible assets and broadcast rights (excluding barter), non-cash contract termination fees, non-cash impairment charges, loss (gain) on asset exchange, loss (gain) on asset disposal, net, and non-cash stock option expense, less payments for broadcast rights, cash interest expense, capital expenditures and net cash income taxes.

Broadcast cash flow, adjusted EBITDA and free cash flow results are non-GAAP financial measures. Nexstar believes the presentation of these non-GAAP measures are useful to investors because they are used by lenders to measure the Company’s ability to service debt; by industry analysts to determine the market value of stations and their operating performance; by management to identify the cash available to service debt, make strategic acquisitions and investments, maintain capital assets and fund ongoing operations and working capital needs; and, because they reflect the most up-to-date operating results of the stations inclusive of pending acquisitions, TBAs or LMAs. Management believes they also provide an additional basis from which investors can establish forecasts and valuations for the Company’s business. For a reconciliation of these non-GAAP financial measurements to the GAAP financial results cited in this news announcement, please see the supplemental tables at the end of this release.

About Nexstar Broadcasting Group, Inc.

Nexstar Broadcasting Group currently owns, operates, programs or provides sales and other services to 62 television stations in 34 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama, New York, Rhode Island, Utah and Florida. Nexstar’s television station group includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches approximately 13 million viewers or approximately 11.5% of all U.S. television households.

Forward-Looking Statements

This news release includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward-looking statements include information preceded by, followed by, or that includes the words "guidance," "believes," "expects," "anticipates," "could," or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this news release, concerning, among other things, changes in net revenue, cash flow and operating expenses, involve risks and uncertainties, and are subject to change based on various important factors, including the impact of changes in national and regional economies, our ability to service and refinance our outstanding debt, successful integration of acquired television stations (including achievement of synergies and cost reductions), pricing fluctuations in local and national advertising, future regulatory actions and conditions in the television stations' operating areas, competition from others in the broadcast television markets served by the Company, volatility in programming costs, the effects of governmental regulation of broadcasting, industry consolidation, technological developments and major world news events. Unless required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this news release might not occur. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.