The action follows $48.7 million of share repurchases in this year’s second quarter that depleted the balance of a prior $100 million authorization.
Nexstar Media Group said today that its board of directors has approved an expansion of the company’s share repurchase authorization to buy back up to an additional $100 million of its Class A common stock.
During the second quarter of 2017, Nexstar repurchased approximately 839,000 shares of its Class A common stock at an average purchase price of approximately $58.10 per share for a total cost of $48.7 million, which, it said, depleted the balance of its prior $100 million share repurchase authorization.
Perry A. Sook, Nexstar chairman, president and CEO, said: “The expanded repurchase authorization reflects our confidence in the company's growing free cash flow from operations and our focus on deploying capital in a manner that best serves our shareholders.
“With the operating momentum across our business Nexstar remains on track to meet our target for average annual free cash flow in the 2017-2018 cycle of approximately $565 million (before the impact of $47.7 million of one-time transaction expenses). As such, we have the financial flexibility to take a range of actions to enhance shareholder value including our return of capital initiatives through the quarterly cash dividend and share repurchases, leverage reduction and pursuing opportunistic, accretive tuck-in acquisitions.”
