1142417--3/11/2008--NEXSTAR_BROADCASTING_GROUP

related topics

{capital, credit, financial}

{acquisition, growth, future}

{stock, price, operating}

{debt, indebtedness, cash}

{competitive, industry, competition}

{personnel, key, retain}

{tax, income, asset}

{control, financial, internal}

{provision, law, control}

{customer, product, revenue}

Risks Related to Our Operations We and Mission have a history of net losses. Our substantial debt could limit our ability to grow and compete. The agreements governing our debt contain various covenants that limit our management s discretion in the operation of our business. Mission may make decisions regarding the operation of its stations that could reduce the amount of cash we receive under our local service agreements. The revenue generated by stations we operate or provide services to could decline substantially if they fail to maintain or renew their network affiliation agreements on favorable terms, or at all. The FCC could decide not to grant renewal of the FCC license of any of the stations we operate or provide services to which would require that station to cease operations. The loss of the services of our chief executive officer could disrupt management of our business and impair the execution of our business strategies. Our growth may be limited if we are unable to implement our acquisition strategy. Growing our business through acquisitions involves risks and if we are unable to manage effectively our rapid growth, our operating results will suffer. FCC actions may restrict our ability to create duopolies under local service agreements, which would harm our existing operations and impair our acquisition strategy. The FCC may decide to terminate grandfathered time brokerage agreements. Failure to construct full-power DTV facilities may lead to a loss of station coverage area or other FCC sanctions. The level of foreign investments held by our principal stockholder, ABRY Partners, LLC and its affiliated funds ( ABRY ), may limit additional foreign investments made in us. The interest of our principal stockholder, ABRY, in other media may limit our ability to acquire television stations in particular markets, restricting our ability to execute our acquisition strategy. We are controlled by one principal stockholder, ABRY, and its interests may differ from your interests. Our certificate of incorporation, bylaws, debt instruments and Delaware law contain anti-takeover protections that may discourage or prevent a takeover of us, even if an acquisition would be beneficial to our stockholders. We and Mission have a material amount of goodwill and intangible assets, and therefore we and Mission could suffer losses due to future asset impairment charges. Risks Related to Our Industry Nexstar s operating results are dependent on advertising revenue and as a result, Nexstar may be more vulnerable to economic downturns and other factors beyond Nexstar s control than businesses not dependent on advertising. Because a high percentage of our operating expenses are fixed, a relatively small decrease in advertising revenue could have a significant negative impact on our financial results. Preemption of regularly scheduled programming by network news coverage may affect our revenue and results of operations. The industry-wide mandatory conversion to digital television will require us to make significant capital expenditures without assurance that we will remain competitive with other developing technologies. If direct broadcast satellite companies do not carry the stations that we own and operate or provide services to, we could lose audience share and revenue. The FCC can sanction us for programming broadcast on our stations which it finds to be indecent. Intense competition in the television industry could limit our growth and impair our ability to become profitable. The FCC could implement legislation and/or regulations that might have a significant impact on the operations of the stations we own and the stations we provide services to or the television broadcasting industry as a whole.

Full 10-K form ▸

1142417--3/11/2008--NEXSTAR_BROADCASTING_GROUP_INC