NEXSTAR MEDIA GROUP, INC. The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and related Notes included elsewhere in this Quarterly Report on Form 10-Q and the Consolidated Financial Statements and related Notes contained in our Annual Report on Form 10-K for the year endedDecember 31, 2021 . As used in this Quarterly Report on Form 10-Q and unless the context indicates otherwise, "Nexstar" refers toNexstar Media Group, Inc. and its consolidated wholly-owned subsidiaryNexstar Media Inc. (formerly known asNexstar Inc. andNexstar Broadcasting, Inc. ), aDelaware corporation; the "Company" refers toNexstar and the variable interest entities ("VIE") required to be consolidated in our financial statements; and all references to "we," "our," "ours," and "us" refer toNexstar . As a result of our deemed controlling financial interests in the consolidated VIEs in accordance with accounting principles generally accepted inthe United States of America ("U.S. GAAP"), we consolidate their financial position, results of operations and cash flows as if they were wholly-owned entities (See Note 2 to our Condensed Consolidated Financial Statements for VIE discussion). We believe this presentation is meaningful for understanding our financial performance. Therefore, the following discussion of our financial position and results of operations includes the consolidated VIEs' financial position and results of operations.
Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). All statements other than statements of historical fact are
"forward-looking statements" for purposes of federal and state securities laws,
including: the risks and uncertainties related to the global Coronavirus Disease
2019 ("COVID-19") pandemic, including, for example, expectations regarding the
impact of COVID-19 on our businesses and our future financial performance; the
conflict involving Russia and Ukraine affecting economic and global financial
markets and exacerbating ongoing economic challenges; any projections or
expectations of earnings, revenue, financial performance, liquidity and capital
resources or other financial items; any assumptions or projections about the
television broadcasting industry; any statements of our plans, strategies and
objectives for our future operations, performance, liquidity and capital
resources or other financial items; any statements concerning proposed new
products, services or developments; any statements regarding future economic
conditions or performance; any statements of belief; and any statements of
assumptions underlying any of the foregoing. Forward-looking statements may
include the words "may," "will," "should," "could," "would," "predicts,"
"potential," "continue," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and other similar words.
Although we believe that the expectations reflected in our forward-looking
statements are reasonable, actual results could differ from a projection or
assumption in any of our forward-looking statements. Our future financial
position and results of operations, as well as any forward-looking statements,
are subject to change and the inherent risks and uncertainties, including those
described in our Annual Report on Form 10-K for the year ended December 31, 2021
and in our other filings with the United States Securities and Exchange
Commission ("SEC"). The forward-looking statements made in this Quarterly Report
on Form 10-Q are made only as of the date hereof, and we do not have or
undertake any obligation to update any forward-looking statements to reflect
subsequent events or circumstances.
24
--------------------------------------------------------------------------------Executive Summary 2022 Highlights • During the first quarter of 2022, net revenue increased by$96.2 million , or 8.6%, compared to the same period in 2021. The increase was primarily due to (i) an increase in distribution revenue of our stations of$46.7 million , (ii) an increase in political advertising of our stations of$18.3 million , as 2022 is a congressional election year, (iii) an increase in revenue from core advertising of our stations of$16.4 million , reflective of continued recovery from the effects of the COVID-19 pandemic and growth in new business, partially offset by a decrease in automotive advertising revenue resulting from shortage in supply of chips and semiconductors which are required in the manufacturing of automobiles for sale, (iv) incremental revenue from a digital business we acquired in 2021 of$8.7 million , and (v) a net increase in digital revenue of our legacy stations and other digital businesses of$3.6 million .
•
During the three months endedMarch 31, 2022 , we repurchased a total of 917,923 shares of our Class A common stock for$158.1 million funded by cash on hand. FromApril 1, 2022 toMay 9, 2022 , we repurchased an additional 370,619 shares of our Class A common stock for$65.0 million , funded by cash on hand. As of the filing of this Quarterly Report on Form 10-Q, the remaining available amount under the share repurchase authorization was$415.1 million .
•
During the three months ended
•
OnJanuary 27, 2022 , our board of directors approved a 29% increase in the quarterly cash dividend to$0.90 per share of outstanding Class A common stock beginning with the first quarter of 2022. Total dividend payments during the first quarter were$37.1 million .
Debt Transactions
•
During the three months ended
•
During the three months ended
Update on COVID-19 Pandemic
The Company is leveraged, which makes it vulnerable to changes in general economic conditions. The Company's ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond the Company's control. In 2022 to date and in 2021, the Company continued to recover from the ongoing effects of the COVID-19 pandemic since its adverse impact in 2020. During the three months endedMarch 31, 2022 , the Company continued to be profitable and continued to generate positive cash flows from its operations. Its current year to date financial results were also higher than the comparable prior year and its market capitalization continued to increase and exceed the carrying amount of its equity by a substantial amount. Overall, the ongoing COVID-19 pandemic did not have a material impact on the Company's liquidity. As ofMarch 31, 2022 , the Company was in compliance with the financial covenants contained in the amended credit agreements governing its senior secured credit facilities. The Company believes it has sufficient unrestricted cash on hand, positive working capital and availability to access additional cash under its revolving credit facilities to meet its business operating requirements, its capital expenditures and to continue to service its debt for at least the next 12 months as of the filing date of this Quarterly Report on Form 10-Q. The extent to which the COVID-19 pandemic impacts the Company's business, results of operations, cash flows and financial condition will depend on future developments, which remain highly uncertain and cannot be reasonably predicted, including future surges in incidences of COVID-19 and the severity of any such resurgence, the rate and efficacy of vaccinations against COVID-19, the length of time that the COVID-19 pandemic continues, how fast economies will fully recover after the COVID-19 pandemic has passed, and the length of time needed to improve global disruptions and delays in the supply chain. 25 --------------------------------------------------------------------------------
Overview of Operations
As ofMarch 31, 2022 , we owned, operated, programmed or provided sales and other services to 199 full power television stations and one AM radio station, including those owned by VIEs, in 116 markets in 39 states and theDistrict of Columbia . The stations are affiliates ofABC ,NBC ,FOX ,CBS , The CW,MyNetworkTV ("MNTV") and other broadcast television networks. Through various local service agreements, we provided sales, programming and other services to 36 full power television stations owned by independent third parties, of which 35 full power television stations are VIEs that are consolidated into our financial statements. We guarantee full payment of all obligations incurred underMission Broadcasting, Inc.'s ("Mission") senior secured credit facility in the event of its default. Mission is a guarantor of our senior secured credit facility, our 5.625% Notes due 2027 and our 4.75% Notes due 2028. In consideration of our guarantee of Mission's senior secured credit facility, Mission has granted us purchase options to acquire the assets and assume the liabilities of each Mission station, subject toFCC consent. These option agreements (which expire on various dates between 2022 and 2031) are freely exercisable or assignable by us without consent or approval by Mission or its shareholders. We expect these option agreements to be renewed upon expiration. We do not own the consolidated VIEs or their television stations. However, we are deemed underU.S. GAAP to have controlling financial interests for financial reporting purposes in these entities because of (1) the local service agreements we have with their stations, (2) our guarantee of the obligations incurred under Mission's senior secured credit facility, (3) our power over significant activities affecting the consolidated VIEs' economic performance, including budgeting for advertising revenue, advertising sales and hiring and firing of sales force personnel and (4) purchase options granted by each consolidated VIE which permit us to acquire the assets and assume the liabilities of each of these VIEs' stations at any time, subject toFCC consent. In compliance withFCC regulations for all the parties, each of the consolidated VIEs maintains complete responsibility for and control over programming, finances and personnel for its stations. See Note 2, "Variable Interest Entities" to our unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for additional information on VIEs, including a discussion of the local service agreements we have with these independent third parties.
Regulatory Developments
As a television broadcaster, the Company is highly regulated, and its operations require that it retain or renew a variety of government approvals and comply with changing federal regulations. OnApril 1, 2021 , theU.S. Supreme Court issued a decision that reversed a lower court of appeals ruling and upheld theFCC 's elimination of certain of its media ownership rules in the agency's 2010/2014 quadrennial review of those rules. Among the regulations eliminated in 2021 as a result of theSupreme Court ruling was a rule providing that a television station licensee which sells more than 15 percent of the weekly advertising inventory of another television station in the same market under a JSA is deemed to have an attributable ownership interest in that station, as well as a requirement that at least eight independently owned television stations remain in a local television market for a party to acquire a second station in that market. While these restrictions are no longer in effect, theFCC 's 2018 quadrennial media ownership review is currently pending and the 2022 quadrennial review has not yet commenced. AnFCC proceeding is also pending to review the current national limit on television station ownership. TheFCC could reinstitute its earlier restrictions or impose other limitations in these or any future reviews. TheFCC repurposed a portion of the broadcast television spectrum for wireless broadband use. In an incentive auction which concluded inApril 2017 , certain television broadcasters accepted bids from theFCC to voluntarily relinquish their spectrum in exchange for consideration. Television stations that did not relinquish their spectrum were "repacked" into the frequency band still remaining for television broadcast use. The Company has received payment for eleven television stations that accepted bids and either moved to different channels or (in one case) discontinued operations. Seventy-four (74) full power stations owned byNexstar and 17 full power stations owned by VIEs were assigned to new channels in the reduced post-auction television band. These stations have commenced operation on their new assigned channels and have ceased operating on their former channels. The Company is in the final stages of requesting and receiving reimbursements for the costs of repacking these stations, as theFCC is now closing out its process for such reimbursements. 26 --------------------------------------------------------------------------------
Seasonality
Advertising revenue is positively affected by national and regional political election campaigns and certain events such as theOlympic Games or theSuper Bowl . Advertising revenue is generally highest in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. In addition, advertising revenue is generally higher during even-numbered years, when state, congressional and presidential elections occur and from advertising aired during theOlympic Games . As 2022 is a mid-term election year, we expect an increase in political advertising revenue to be reported in 2022 compared to 2021.
Historical Performance
Revenue
The following table sets forth the amounts of the Company's principal types of
revenue (in millions) and each type of revenue as a percentage of total net
revenue:
Three Months Ended March 31,
2022 2021
Amount % Amount %
Core advertising $ 428.1 35.4 $ 411.7 37.0
Political advertising 23.7 2.0 5.4 0.5
Distribution 667.9 55.2 621.2 55.8
Digital 78.7 6.5 66.4 6.0
Other 11.7 0.9 9.2 0.7
Total net revenue $ 1,210.1 100.0 $ 1,113.9 100.0
Results of Operations
The following table sets forth a summary of the Company's operations (in
millions) and each component of operating expense as a percentage of net
revenue:
Three Months Ended March 31,
2022 2021
Amount % Amount %
Net revenue $ 1,210.1 100.0 $ 1,113.9 100.0
Operating expenses (income):
Corporate expenses 46.4 3.8 43.4 3.9
Direct operating expenses 490.0 40.5 449.3 40.3
Selling, general and
administrative expenses,
excluding corporate 201.4 16.6 200.0 18.0
Depreciation of property and
equipment 39.1 3.2 39.5 3.5
Amortization of intangible
assets 77.7 6.4 73.7 6.6
Amortization of broadcast
rights 27.8 2.4 30.9 2.8
Other (1.7 ) (0.1 ) (7.8 ) (0.7 )
Total operating expenses 880.7 829.0
Income from operations $ 329.4 $ 284.9
27--------------------------------------------------------------------------------
Three Months Ended
The period-to-period comparability of our consolidated operating results is affected by acquisitions. For each quarter we present, our legacy stations include those stations that we owned or provided services to for the complete quarter in the current and prior years. For our annual and year to date presentations, we combine the legacy stations' amounts presented in each quarter.
Revenue
Core advertising revenue was$428.1 million for the three months endedMarch 31, 2022 , compared to$411.7 million for the same period in 2021, an increase of$16.4 million , or 4.0%. The increase was reflective of continued recovery from the effects of the COVID-19 pandemic and growth in new business, partially offset by a decrease in automotive advertising revenue. Automotive, our largest advertiser category, represented approximately 14% and 19% of our core advertising revenue for the three months endedMarch 31, 2022 and 2021, respectively. Overall, automotive advertising revenues decreased by approximately 24% during the quarter compared to 2021, primarily due to the current shortage in supply of chips and semiconductors which impacted the availability of automobiles for sale. The other categories representing our top five largest categories by revenue increased in 2022, led by attorneys and followed by medical/healthcare, gaming/sports betting and home repair/manufacturing. While we are encouraged by the positive trends we saw during the three months endedMarch 31, 2022 , to the extent that the pandemic continues to have a negative impact on theU.S. economy, our results will be affected. Political advertising revenue was$23.7 million for the three months endedMarch 31, 2022 , compared to$5.4 million for the same period in 2021, an increase of$18.3 million , as 2022 is a mid-term election year. Distribution revenue was$667.9 million for the three months endedMarch 31, 2022 , compared to$621.2 million for the same period in 2021, an increase of$46.7 million , or 7.5%. The increase was reflective of scheduled annual escalation of rates per subscriber and renewals of contracts in 2021 providing for higher rates per subscriber, partially offset by MVPD subscriber attrition. We anticipate continued increase of retransmission fees until there is a more balanced relationship between viewers delivered and fees paid for delivery of such viewers. Digital revenue, representing advertising revenue on our stations' web and mobile sites and other internet-based revenue, was$78.7 million for the three months endedMarch 31, 2022 , compared to$66.4 million for the same period in 2021, an increase of$12.3 million , or 18.5%. The increase was primarily due to incremental revenue from a digital business we acquired in 2021 of$8.7 million and a net increase in revenue from our stations and other digital businesses of$3.6 million . Operating Expenses Corporate expenses, related to costs associated with the centralized management of our stations, were$46.4 million for the three months endedMarch 31, 2022 , compared to$43.4 million for the same period in 2021, an increase of$3.0 million (no significant change). Station direct operating expenses, consisting primarily of news, engineering, programming and station selling, general and administrative expenses (net of trade expense), were$691.4 million for the three months endedMarch 31, 2022 , compared to$649.3 million for the same period in 2021, an increase of$42.1 million , or 6.5%, primarily due to (i) an increase in our stations' programming costs of$11.9 million , primarily due to network affiliation renewals and annual increases in our network affiliation costs, (ii) an increase in our stations' and other business units' other operating expenses of$22.6 million (includes increase in trade expense of$1.1 million ), primarily due to recovery from the COVID-19 pandemic, an increase in sales and promotional costs to drive revenue and an increase in NewsNation's news related operating costs as it continues to shift its focus from syndicated programming to national newscast programs, and (iii) incremental operating expenses associated with our digital business acquisition in 2021 of$7.6 million .
The following operating expenses did not significantly change during the three
months ended
•
Depreciation of property and equipment was$39.1 million for the three months endedMarch 31, 2022 , compared to$39.5 million for the same period in 2021, a decrease of$0.4 million .
•
Amortization of intangible assets was
•
Amortization of broadcast rights was
28
--------------------------------------------------------------------------------Income from Equity Method Investments, net
Income from equity method investments, net was
Interest Expense, net
Interest expense, net was$69.2 million for the three months endedMarch 31, 2022 , compared to$72.1 million for the same period in 2021, a decrease of$2.9 million (no significant change).
Pension and Oher Postretirement Plans Credit, net
Pension and other postretirement plans credit, net was$10.9 million for the three months endedMarch 31, 2022 , compared to$17.7 million for the same period in 2021, a decrease of$6.8 million (no significant change).
Income Taxes
Income tax expense was$52.5 million for the three months endedMarch 31, 2022 compared to$59.7 million for the same period in 2021. The effective tax rates were 17.3% and 23.1% for each of the respective periods.Nexstar recorded an income tax benefit of$25.8 million attributable to excess benefit on stock options and restricted stock units, or a 6.7% decrease to the effective tax rate in 2022. Changes in the valuation allowance resulted in an incremental income tax benefit of$4.0 million , or a 1.4% decrease to the effective tax rate in 2022. Additionally, certain state contingency reserves decreased in 2021 as a result of audit settlements. This resulted in an increase in income tax expense of$6.5 million in 2022, or a 2.5% increase to the effective tax rate. The Company calculates its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period. Future changes in the forecasted annual income projections, including changes due to the impact of the COVID-19 pandemic, could result in significant adjustments to quarterly income tax expense in future periods..
Liquidity and Capital Resources
The Company is leveraged, which makes it vulnerable to changes in general economic conditions. The Company's ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond the Company's control. In 2022 to date and in 2021, the Company continued to recover from the ongoing effects of the COVID-19 pandemic since its adverse impact in 2020. During the three months endedMarch 31, 2022 , the Company continued to be profitable and continued to generate positive cash flows from its operations. Its current year to date financial results were also higher than the comparable prior year and its market capitalization continued to increase and exceed the carrying amount of its equity by a substantial amount. Overall, the ongoing COVID-19 pandemic did not have a material impact on the Company's liquidity. As ofMarch 31, 2022 , the Company was in compliance with the financial covenants contained in the amended credit agreements governing its senior secured credit facilities. The Company believes it has sufficient unrestricted cash on hand, positive working capital, and availability to access additional cash under its revolving credit facilities to meet its business operating requirements, its capital expenditures and to continue to service its debt for at least the next 12 months as of the filing date of this Quarterly Report on Form 10-Q. The extent to which the COVID-19 pandemic impacts the Company's business, results of operations, cash flows and financial condition will depend on future developments, which remain highly uncertain and cannot be reasonably predicted, including future surges in incidences of COVID-19 and the severity of any such resurgence, the rate and efficacy of vaccinations against COVID-19, the length of time that the COVID-19 pandemic continues, how fast economies will fully recover after the COVID-19 pandemic has passed, and the length of time needed to improve global disruptions and delays in the supply chain. 29 --------------------------------------------------------------------------------
Cash Flow Summary
The following tables present summarized financial information management
believes is helpful in evaluating the Company's liquidity and capital resources
(in millions):
Three Months Ended March 31,
2022 2021
Net cash provided by operating activities $ 518.9 $ 448.3
Net cash used in investing activities (22.4 ) (22.8 ) Net cash used in financing activities (361.2 ) (238.4 ) Net increase in cash, cash equivalents and restricted cash$ 135.3 $
187.1
Cash paid for interest $ 78.4 $
82.1
Income taxes paid, net of refunds $ 3.2 $ 5.5
As of March 31, As of December 31,
2022 2021
Cash, cash equivalents and restricted cash $ 341.8 $ 206.5
Cash Flows - Operating Activities
Net cash flows provided by operating activities increased by$70.6 million during the three months endedMarch 31, 2022 , compared to the same period in 2021. This was primarily due to an increase in operating income (excluding non-cash transactions) of$54.7 million , source of cash resulting from timing of accounts receivable collections of$17.1 million , an increase in distribution from our equity investment in TV Food Network of$15.3 million , and lower payments for broadcast rights of$12.2 million . These increases were partially offset by timing of payments to our vendors of$28.1 million .
Cash Flows - Investing Activities
Net cash flows used in investing activities were
In 2022, we spent a total of$28.9 million in capital expenditures, partially offset by the deposits received associated with the sale of real estate assets of$4.4 million .
In 2021, we spent a total of
Cash Flows - Financing Activities
Net cash flows used in financing activities were
In 2022, we prepaid a portion of the outstanding principal balance of our Term Loan B due 2024 of$150.0 million and made scheduled principal payments on our Term Loan A due 2024 of$8.7 million , paid dividends to our common stockholders of$37.1 million ($0.90 per share per quarter), repurchased common shares of$158.1 million and paid cash for taxes in exchange for shares of common stock withheld of$9.8 million resulting from net share settlements of certain stock-based compensation. These outflows were partially offset by the proceeds from the exercise of stock options during the year amounting to$6.0 million . In 2021, we prepaid a portion of the outstanding principal balance of our Term Loan B due 2024 of$75.0 million and made scheduled principal payments on our Term Loan A due 2024 of$5.4 million , paid dividends to our common stockholders of$30.4 million ($0.70 per share per quarter), repurchased common shares of$121.0 million and paid cash for taxes in exchange for shares of common stock withheld of$8.1 million resulting from net share settlements of certain stock-based compensation. These decreases were offset by proceeds from the exercise of stock options amounting to$2.8 million . 30 -------------------------------------------------------------------------------- As ofMarch 31, 2022 , the remaining available amount underNexstar's share repurchase authorization was$480.1 million . FromApril 1, 2022 toMay 9, 2022 , we repurchased 370,619 shares of our Class A common stock for$65.0 million , funded by cash on hand. As of the date of filing this Quarterly Report on Form 10-Q, the remaining available amount under the share repurchase authorization was$415.1 million .
On
Our senior secured credit facility may limit the amount of dividends we may pay to stockholders over the term of the agreement.
Long-term debt
As ofMarch 31, 2022 , the Company had total outstanding debt of$7.260 billion , net of unamortized financing costs, discounts and premium, which represented 71.3% of the Company's combined capitalization. The Company's high level of debt requires that a substantial portion of cash flow be dedicated to pay principal and interest on debt, which reduces the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes. As ofMarch 31 , As of
2022 2021
4,329.1
Mission senior secured credit facility 360.0 360.8
5.625% Notes due 2027 1,785.0 1,785.0
4.75% Notes due 2028 1,000.0 1,000.0
7,315.4 7,474.9
Less: Unamortized financing costs,
discounts and premium, net (55.1 ) (59.8 )
Total outstanding debt $ 7,260.3 $ 7,415.1
Unused revolving loan commitments under
senior secured credit facilities (1) $ 363.2 $ 363.2
(1)
Based on covenant calculations as of March 31, 2022 , all of the $349.7 million
and $13.5 million unused revolving loan commitments under the respective Nexstar
and Mission senior secured credit facilities were available for borrowing.
The following table summarizes the principal indebtedness scheduled to mature
for the periods referenced as of
More than 5
Total Less than 1 year 1 to 3 years 3 to 5 years years
Nexstar senior secured
credit facility $ 4,170.4 $ 35.5 $ 1,490.6 $ 2,644.3 $ -
Mission senior secured
credit facility 360.0 2.3 67.5 6.0 284.2
5.625% Notes due 2027 1,785.0 - - - 1,785.0
4.75% Notes due 2028 1,000.0 - - - 1,000.0
$ 7,315.4 $ 37.8 $ 1,558.1 $ 2,650.3 $ 3,069.2
We guarantee full payment of all obligations incurred under Mission's senior
secured credit facility in the event of its default. Mission is a guarantor of
our senior secured credit facility, our 5.625% Notes due 2027 and our 4.75%
Notes due 2028.
We make semiannual interest payments on the 5.625% Notes due 2027 on January 15
and July 15 of each year. We make semiannual interest payments on our 4.75%
Notes due 2028 on May 1 and November 1 of each year. Interest payments on our
and Mission's senior secured credit facilities are generally paid every one to
three months and are payable based on the type of interest rate selected.
31
--------------------------------------------------------------------------------
The terms of our and Mission's senior secured credit facilities, as well as the
indentures governing our 5.625% Notes due 2027 and 4.75% Notes due 2028, limit,
but do not prohibit us or Mission, from incurring substantial amounts of
additional debt in the future.
The Company does not have any rating downgrade triggers that would accelerate
the maturity dates of its debt. However, a downgrade in the Company's credit
rating could adversely affect its ability to renew the existing credit
facilities, obtain access to new credit facilities or otherwise issue debt in
the future and could increase the cost of such debt.
The Company had $349.7 million and $13.5 million of total unused revolving loan
commitments under the respective Nexstar and Mission senior secured credit
facilities, all of which were available for borrowing, based on the covenant
calculations as of March 31, 2022 . The Company's ability to access funds under
its senior secured credit facilities depends, in part, on our compliance with
certain financial covenants. Any additional drawings under the senior secured
credit facilities will reduce the Company's future borrowing capacity and the
amount of total unused revolving loan commitments. As discussed above, the
ultimate outcome of the COVID-19 pandemic remains uncertain at this time and may
significantly impact our future operating performance, liquidity and financial
position. Any adverse impact of the COVID-19 pandemic may cause us to seek
alternative sources of funding, including accessing capital markets, subject to
market conditions. Such alternative sources of funding may not be available on
commercially reasonable terms or at all.
Debt Covenants
Our credit agreement contains a covenant which requires us to comply with a maximum consolidated first lien net leverage ratio of 4.25 to 1.00. The financial covenant, which is formally calculated on a quarterly basis, is based on the Company's combined results. The Mission amended credit agreement does not contain financial covenant ratio requirements but does provide for default in the event we do not comply with all covenants contained in our credit agreement. As ofMarch 31, 2022 , we were in compliance with our financial covenant. We believeNexstar and Mission will be able to maintain compliance with all covenants contained in the credit agreements governing their senior secured facilities and the indentures governing our 5.625% Notes due 2027 and 4.75% Notes due 2028 for a period of at least the next 12 months fromMarch 31, 2022 .
Off-Balance Sheet Arrangements
As ofMarch 31, 2022 , we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or VIEs, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. All of our arrangements with our VIEs in which we are the primary beneficiary are on-balance sheet arrangements. Our variable interests in other entities are obtained through local service agreements, which have valid business purposes and transfer certain station activities from the station owners to us. We are, therefore, not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships. As ofMarch 31, 2022 , we had outstanding standby letters of credit with various financial institutions amounting to$21.7 million , of which$18.2 million was in support of certain worker's compensation insurance programs. The outstanding balance of standby letters of credit is deducted against our unused revolving loan commitment under our senior secured credit facility and would not be available for withdrawal.
Issuer and Guarantor Summarized Financial Information
Nexstar Media Inc.'s (a wholly-owned subsidiary ofNexstar Media Group, Inc. ("Parent") and herein referred to as the "Issuer") 5.625% Notes due 2027 and 4.75% Notes due 2028 are fully and unconditionally guaranteed (the "Guarantees"), jointly and severally, by Parent, Mission (a consolidated VIE) and certain of the Issuer's restricted subsidiaries (collectively, the "Guarantors" and, together with the Issuer, the "Obligor Group "). The Guarantees are subject to release in limited circumstances upon the occurrence of certain customary conditions set forth in the indentures governing the 5.625% Notes due 2027 and the 4.75% Notes due 2028. The Issuer's 5.625% Notes due 2027 and 4.75% Notes due 2028 are not registered with theSEC . 32 -------------------------------------------------------------------------------- The following combined summarized financial information is presented for theObligor Group after elimination of intercompany transactions between Parent, Issuer and Guarantors in theObligor Group and amounts related to investments in any subsidiary that is a non-guarantor. This information is not intended to present the financial position or results of operations of the consolidated group of companies in accordance withU.S. GAAP.
Summarized Balance Sheet Information for the
March 31, 2022 December 31, 2021
Current assets - external $ 1,476.4 $ 1,407.6
Current assets - due from consolidated entities outside of Obligor Group 36.9 37.2 Total current assets$ 1,513.3 $
1,444.8
Noncurrent assets - external(1) 10,395.7
10,479.5
Noncurrent assets - due from consolidated entities outside of Obligor Group 55.9 55.8 Total noncurrent assets$ 10,451.6 $ 10,535.3 Total current liabilities $ 730.6 $ 783.8 Total noncurrent liabilities$ 9,425.7 $ 9,610.2 Noncontrolling interests $ 5.6 $ 6.5 (1) Excludes Issuer's equity investments of$1.061 billion and$1.219 billion as ofMarch 31, 2022 andDecember 31, 2021 , respectively, in unconsolidated investees. These unconsolidated investees do not guarantee the 4.75% Notes due 2028 and 5.625% Notes due 2027. For additional information on equity investments, refer to Note 4 to our Condensed Consolidated Financial Statements.
Summarized Statements of Operations Information for the
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