Nexstar Broadcasting Group, Inc. (the ”Company”) (Nasdaq: NXST) today announced the launch of its company-wide, environmentally friendly “nexstarGREEN” initiative. This year long, multi-faceted on-air and on-line campaign underscores the Company’s commitment to corporate responsibility while extending its long-term track record of establishing innovative and high margin revenue streams complementary to its core broadcasting activities.
The program, officially launched today at the Company’s 49 television stations located in 29 markets, will educate viewers and local communities through weekly-televised environmental reports about measures consumers can take to mitigate the perilous conditions that affect the environment and the planet today. In addition, each Nexstar station will develop partnerships with individual local groups or organizations to focus attention on specific eco-sensitive issues prevalent in that station’s community. Nexstar has also launched a dedicated “green page” on each market’s interactive web portal which showcase locally produced content, list available resources and offer links to other useful sites encouraging users to become involved.
Through nexstarGREEN, the Company also aims to supplement its traditional television business with a new, recurring ancillary revenue stream of corporate sponsorships and on-air and on-line spot advertisements during featured environmental newscast segments.
Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, commented, “The environmental challenges facing our planet are becoming more serious with each passing day. We believe we have a responsibility to leave this world a better place for our children and future generations. As such, we’re delighted to once again take the reins and develop an industry-leading concept that will benefit our advertisers and the local communities we serve, as well as our Company, our employees and our shareholders. Through our nexstarGREEN on-air and on-line initiatives, we are confident that viewers will be more aware of and embrace eco-friendly measures that will positively impact our environment.
“And, we’re not just using our strength as a multi-platform communications company to spread the word. At Nexstar -- in our corporate offices and in every local market where we have a facility -- we’re establishing new efficiency goals. We’re carefully evaluating how we operate our stations and analyzing our energy and resource consumption. We’ll meaningfully reduce our environmental impact as we reduce paper use, energy consumption and waste. For example, we’ll buy hybrid vehicles for our news departments, we are converting our traffic platform to an advanced system that will eliminate a significant amount of paper usage company-wide and recycling programs will be implemented at stations that don’t yet have them in place.
“Nexstar stations are also taking an active role in embracing local eco-sensitive projects with Nexstar employees volunteering their time and efforts to a specific project in each of the Company’s markets. This grassroots involvement demonstrates the overall commitment of the entire Nexstar family of stations. The projects adopted are wide-ranging and address different needs in different communities. Our people are involved in hands-on projects ranging from urban street clean up to water conservation to electronics recycling.
“Overall, we expect to realize mid-six figure cost savings in 2008 as a result of our ‘eco-focus’ and are confident that shareholders will see long-term benefits from our commitment to this cause. Like our innovative retransmission consent agreements and approach to new media initiatives, the nexstarGREEN program is also proving to be another avenue for establishing a revenue source that leverages our core broadcasting activities. We’ve recently secured our first six figure sponsorships to support this initiative and we’re presently in discussions with several national advertisers to sponsor our efforts across the entire platform and in aggregate, we expect to generate several million dollars in new revenue from this initiative beginning in 2008.”
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group currently owns, operates, programs or provides sales and other services to 49 television stations in 29 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. Nexstar’s television station group includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches approximately 8.25% 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.