Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Nexstar Broadcasting Group — Investor Presentation (April 2013)
23 slides from Nexstar Media's investor presentation, April 2013
Slide 1: Nexstar Broadcasting Group
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Slide 2: Safe Harbor
Safe Harbor In addition to historical facts or statements of current conditions, this presentation contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company’
Slide 3: Investment Summary
Investment Summary Diversified Mid-market Consolidator Leveraging Localism Building new high growth/high margin and recurring revenue streams Strong cash flow model and operating leverage based on diversified revenue streams and expense management discipline Recent Strategic Highly Accretive
Slide 4: Key Recent Operational Events
Key Recent Operational Events Record 2012 Financial Results Net revenue rose 23.5% to $379 million Broadcast cash flow grew 47.6% to $171 million Adjusted EBITDA increased 52.3% to $146 million Free cash flow up 135.5% to $80.5 million Highly accretive acquisition of 12 TV stations in 8
Slide 5: Key Recent Operational Events
Key Recent Operational Events Repaid $120 million of debt from free cash flow in the 10 quarters prior to the Newport #1 acquisition in December 2012 Weighted average cost of debt reduced from approximately 7.4% to 6.6% as new senior secured credit facilities were consummated concurrent with the
Slide 6: Leveraging Localism/Driving Diversification
Leveraging Localism/Driving Diversification Diversified Top 20 TV Group with Leading Local Franchises Nexstar has the #1 or #2 Revenue Share Ranking in 75% of its Markets Pro-forma for All Acquisitions Stations 72 Markets 41 US Television Household Reach 12.1% Duopoly Markets 26 +60% of Pro-form
Slide 7: Expanding Geographic Reach
Expanding Geographic Reach Local Community Focus Arkansas Tennessee Little Rock-Pine Bluff, AR (56) Memphis, TN (49) KARK (NBC) (O&O) WPTY (ABC) (O&O) KARZ (MyNetworkTV) (O&O) WLMT (CW) (O&O) KLRT (Fox) (LSA) Jackson, TN (176) KASN (CW) (LSA) WJKT (FOX) (O&O) Ft. Smith-Fayetteville-Springdale- Roger
Slide 8: Nexstar's Expanding and Diversifying Revenue Mix
Nexstar’s Expanding and Diversifying Revenue Mix 2008 Revenue Mix 2012 Revenue Mix Political, Political, 10.2% 11.0% New Media, New Media, 3.2% 4.4% Other, 7.6% Other, 6.6% Retrans, Local/ Local/ 4.5% Regional, Regional, 53.7% 45.3% Retrans, 14.5% National, 20.7% National, 18.1% Total 2008 Revenue o
Slide 9: Strong Secular Trends in Television Broadcasting Driving Growth
Strong Secular Trends in Television Broadcasting Driving Growth Live TV Continues to Dominate Growth in Ad Spending from Recovery in Auto Weekly Video Consumption (Hrs:Min) TV Ad Spending in Automotive Sector SAAR of U.S. Light Vehicle Sales Watching Video on ($ in Billions) (in Millions) Internet W
Slide 10: Strategic Acquisition Rationale / Recent M&A Activity Summary
Strategic Acquisition Rationale / Recent M&A Activity Summary NXST Criteria for Strategic M&A Transactions Targets with attractive acquisition multiples resulting in high free cash flow accretion Acquisitions that significantly expand revenue, scale and operating base Significant synergies wit
Slide 11: Auto Advertising Rebound Continues
Auto Advertising Rebound Continues 2012 auto industry results / 2013 outlook and category drivers: 2012 auto sales of ~14.5 mm units up ~13% vs. 2011— the industry’s best performance in 5 years1 U.S. Monthly Auto Sales, Total Light Vehicles 13.9% increase in category spending (Y/Y) for Nexstar S
Slide 12: Retransmission Growth Cycle
Retransmission Growth Cycle Retransmission revenue continues to materially diversify NXST’s total net revenue Nexstar led industry in securing retransmission consideration beginning in 2005 Acceleration in retransmission revenue post-contract renewal cycle demonstrates management’s ability to ne
Slide 13: Growth in Political and Issue Advertising
Growth in Political and Issue Advertising Consistently Strong Revenue Growth from Political and Issue Advertising 2012 was another record political billing year for Nexstar with revenue of ~$46.3 million FY Political Revenue – Even Year FY Political Revenue – Odd Year $50.0 $7.0 CAGR: 18.6% $46.3
Slide 14: Financial Overview
Nexstar” BROADCASTING GROUP, INC Financial Overview 13
Slide 15: Growing Two Year FCF Cycle
Growing Two Year FCF Cycle (FY) Significantly Growing Free Cash Flow Since IPO NXST Free Cash Flow based on two year cycles $250.0 ~ $200.0* $200.0 ($ in millions) $150.0 $100.0 $80.0 $114.7 $54.3 $50.0 $41.7 $15.1 $0.0 2003/2004 2005/2006 2007/2008 2009/2010 2011/2012 31.2 million shares outstand
Slide 16: Historical Financial Summary
Historical Financial Summary (in millions) FY Net Revenue FY Core Revenues Local Revenue National Revenue $400.0 $378.6 $300.0 $266.3 $350.0 $249.8 $247.3 $313.4 $306.5 $250.0 $237.7 $235.9 $284.9 $212.5 $300.0 $266.8 $252.0 $250.0 $200.0 $200.0 $150.0 $175.5 $171.6 $157.4 $173.9 $181.6 $190.2 $150.
Slide 17: Debt/Leverage Analysis
Debt/Leverage Analysis Nexstar Debt/Leverage Analysis (in millions) 12/31/2010 12/31/2011 12/31/2012 Revolver $ - $ 24.3 $ - TLB 99.5 148.1 288.3 8.875% Sr Sec 2nd Lien Notes 317.4 318.4 319.4 6.875% Sr Notes - - 250.0 7% Sr Sub Notes 180.3 149.6 - 11.375% Senior discount notes 45.9 - - Total Debt $
Slide 18: Transformational Acquisitions and Operating Strategies Driving Record FCF
Transformational Acquisitions and Operating Strategies Driving Record FCF Closed Highly Accretive Newport Acquisition in December/January Adds $55 million of EBITDA in year one Transaction expected to result in a 45% increase in free cash flow per share Closed Accretive Newport “California,”
Slide 19: Appendix
Nexstar” BROADCASTING GROUP, INC Appendix 18
Slide 20: Accretively Scaling Up – Newport Acquisition
Accretively Scaling Up – Newport Acquisition On December 1 and January 1, Nexstar and Mission completed the acquisition of 12 TV stations from entities controlled by Newport Television Acquired Assets 12 Television Stations1 in 8 markets: Salt Lake City UT (33) Local market knowledge through p
Slide 21: Accretively Scaling Up – Newport Acquisition
Accretively Scaling Up – Newport Acquisition Purchase Overview Pro-Forma Impact Purchase Price: $285.5 million Adds $55 million of EBITDA in year one 5.5x average 2011/2012 BCF (post- Completed financing only increases synergy) leverage by about half a turn; expected to 5.0x 2012 BCF (post
Slide 22: Accretively Scaling Up Newport and Smith Acquisitions
Accretively Scaling Up Newport and Smith Acquisitions On February 15, Nexstar completed the acquisition of 3 TV stations from entities controlled by Newport Television On November 5, 2012 Nexstar announced a definitive agreement to acquire 2 TV stations from Smith Media On February 6, Nexstar announ
Slide 23: Nexstar Broadcasting Group
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Nexstar Broadcasting Group — Investor Presentation (April 2013) on 6ix