American Community Newspapers Inc
American Community Newspapers — Courtside Acquisition — SPAC Merger (January 2007)
30 slides from American Community Newspapers's SPAC merger presentation, Jan 25, 2007
Slide 1: Courtside Acquisition Corp. to acquire American Community Newspapers
Courtside Acquisition Corp. to acquire In the community, With the community, For the community. January 25, 2007
Slide 2: Roadshow Presentation
Roadshow Presentation The attached slide show was filed with the Securities and Exchange Commission as part of the Form 8–K filed by Courtside Acquisition Corp. (“Courtside”) with the Securities and Exchange Commission on January 25, 2007. Courtside is holding presentations for certain of its stockh
Slide 3: Safe Harbor
Safe Harbor This presentation may contain forward–looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Courtside, ACN and their combined business after completion of the proposed acquisition. Forward–looking statements are statements that are not histor
Slide 4: ACN is a pure-play community newspaper platform
ACN is a pure-play community newspaper platform with market-leading positions in strategically clustered attractive markets, offering a tremendous value proposition for advertisers Courtside Acquisition Corp. 3
Slide 5: The Transaction
The Transaction Courtside/ACN business combination Acquisition agreement signed January 24, 2007 Expected closing Q2 2007 Terms of the transaction: Cash purchase of substantially all of the assets of ACN Price of $165 million Contingent payments A range of $1 million to $15 million earnout with 2008
Slide 6: Comparative Analysis
Comparative Analysis (US$ in millions, except per share data) (EV / EBITDA) / Historical Long Term (1) 01/24/07 Mkt. Value Enterprise EV / EBITDA Long Term Growth Rate EBITDA Growth Company Stock Price of Equity Value 2006E 2007E 2008E 2006E 2007E 2008E Growth Rate (2) Rate (3) Lee Enterprises $33.1
Slide 7: Investment Highlights
Investment Highlights Strategically clustered, pure-play community newspaper platform with market-leading positions ACN operates in a growing segment of the newspaper market Affluent, desirable and high growth demographics in each core market Revenue and EBITDA growth of 7.1% and 20.6%, respectively
Slide 8: Experienced, Industry-Leading Management Team
Experienced, Industry-Leading Management Team Gene Carr, Chief Executive Officer Dan Wilson, Chief Financial Officer Joined ACN in August 2001 Joined ACN in May 2002 28 years of publishing experience 20 years of financial/media experience Board affiliations: Board of Suburban Board affiliations: For
Slide 9: Company Overview
Company Overview American Community Newspapers Total Minneapolis Dallas Northern Virginia Daily newspapers: 3 1 2 -- Weekly newspapers: 60 43 14 3 Niche publications: 10 -- 6 4 Circulation: 875,000 435,000 240,000 200,000 2006 Revenue: $53.5mm 2006 NCF: $14.4mm 2006 NCF margin: 26.9% 2007P Revenue:
Slide 10: ACN's Newspapers are Local to the Communities they Serve
ACN’s Newspapers are Local to the Communities they Serve ACN focuses on local news that is consistently overlooked by metro newspapers, radio stations and television including: Local city council and government School districts, high school sports and youth sports Special editorial sections relevant
Slide 11: ACN is an Integral Part of the Communities it Serves
ACN is an Integral Part of the Communities it Serves Courtside Acquisition Corp. 10
Slide 12: ACN's Publications by Region
ACN’s Publications by Region Minneapolis Minneapolis (Cont’d) Northern Virginia www.mnsun.com Stearns-Morrison Enterprise Leesburg Today - www.leesburgtoday.com Apple Valley / Rosemount Sun Current Melrose Beacon Loudoun Magazine - Bloomington Sun Current Carver County News www.loudounmagazine.com B
Slide 13: Industry Overview
Industry Overview Newspapers are the third largest advertising medium in the U.S., estimated to account for 14.9% of 2007 U.S. advertising expenditures Total U.S. newspaper spending, advertising and circulation, is expected to increase at a compound annual growth rate (“CAGR”) of 1.9% from 2006-08,
Slide 14: Why Community Newspapers are Different
Why Community Newspapers are Different Community newspapers are often seen as less sensitive to a macroeconomic slowdown and are viewed as a mainstay of the community Community newspapers are well-positioned in their markets relative to major metro/daily newspapers Community papers retain a virtual
Slide 15: Highlights of the Power of the Community Newspaper Platform
Highlights of the Power of the Community Newspaper Platform(1) Study results Statistical highlights for ACN’s Readers 86% of adults are interested in community news Readers in suburban communities 60% of adults turn to community newspapers have strong interests in community first for local news, eve
Slide 16: ACN is a Best-in-Class Asset
ACN is a Best-in-Class Asset An Industry Leader in Profitability Metrics Operates in Affluent, Desirable, High Growth Demographics Stable Revenue Base Solidified a Leading Position in Delivering Proprietary Online Content in its Markets Management Team With Successful Track Record of Acquisitions Co
Slide 17: Comparative Performance Analysis
Comparative Performance Analysis Comparative Performance CY2005 CY2006E CY2007P CY2008P Average Revenue Growth (1) Lee Enterprises 3.0% 1.1% 2.0% NA 2.0% Journal Register (1.0%) (3.2%) (2.5%) (3.1%) (2.5%) Gatehouse Media(2) 2.2% 3.0% 0.2% 3.5% 2.2% Average 1.4% 0.3% (0.1%) 0.2% ACN 6.9% 7.4% 8.0% 6
Slide 18: Among the Fastest Growing and Most Affluent Markets in the U.S.
Among the Fastest Growing and Most Affluent Markets in the U.S. Key Market Statistics (1) Median Household Income (2) Minneapolis Cluster (Minneapolis-St. Paul MSA) $144,900 12th highest median household effective buying income (EBI) nationally 12th largest retail market with $74.2 billion in retail
Slide 19: ACN Enjoys Stable Revenue Base
ACN Enjoys Stable Revenue Base Stable advertising revenues given ACN’s long-standing client relationships in ACN’s markets Over 40,000 individuals and businesses advertise in ACN’s publications ACN top 20 advertisers contributed 7.3% of 2006E revenues Circulation not a key driver 2006E Revenue Break
Slide 20: ACN has Aggressively Built its Internet Presence
ACN has Aggressively Built its Internet Presence ACN’s Internet portal provides unique, localized content that effectively increases “editions” through online breaking news, while increasing reach beyond printed products Successful implementation of new online features: Video news and sports coverag
Slide 21: New Media / Internet Portal
New Media / Internet Portal Courtside Acquisition Corp. 20
Slide 22: Successful Track Record of Acquisitions
Successful Track Record of Acquisitions Minneapolis Dallas Northern Virginia Monticello Times, May 2005 McKinney Courier-Gazette, July 2005 Suburban Washington Newspapers / Group of one paid weekly and one Group of one daily, one weekly and Sun Gazette, August 2005 free weekly publications located i
Slide 23: Growth Strategy
Growth Strategy Organic Growth Strategic Add-on Acquisitions New Cluster Acquisitions Courtside Acquisition Corp. 22
Slide 24: ACN has a Multi-Faceted Growth Strategy
ACN has a Multi-Faceted Growth Strategy Continue to capitalize on household growth in ACN’s markets Continue to capture a larger number of local and major national advertisers through increased calls, training and territory staffing Continue to strengthen ACN’s position as a leading provider of loca
Slide 25: ACN has a Multi-Faceted Growth Strategy (Cont'd)
ACN has a Multi-Faceted Growth Strategy (Cont’d) Large and fragmented marketplace = acquisition opportunities Expansion opportunities in contiguous markets to further leverage clustered platform Strategic Add-on Leverage scale and clustering advantage to increase revenue and EBITDA growth Acquisitio
Slide 26: Detailed Market Profile
Detailed Market Profile Minneapolis Monticello Plymouth MINNESOTA WISCONSIN Champlin— ANOKA Rockford East/West— Sun Blaine & Dayton COUNTY Area News I-94 Sailor Springlake Monticello Times Press St. Michael Park—Sun Focus and Shopper Brooklyn Park— North Crow River Brooklyn Center— WASHINGTON HENNEP
Slide 27: Detailed Market Profile (Cont'd)
Detailed Market Profile (Cont’d) Dallas The Celina Record Main office Production Celina DENTON Sales/Editorial COUNTY Little Elm Journal McKinney Courier-Gazette A Dallas Fort Worth U COLLIN International Airport COUNTY Little Elm The Frisco Enterprise McKinney U Major Universities Penny Saver Frisc
Slide 28: Detailed Market Profile (Cont'd)
Detailed Market Profile (Cont’d) Northern Virginia Main office Sales/Editorial Leesburg Today Loudoun Magazine Leesburg LOUDOUN Great Falls / McLean / Oakton COUNTY Ashburn / Vienna Sun Gazette Dulles Great Falls Loudoun Business Middleburg Herndon Tysons South Riding Reston Corner Washington, Vienn
Slide 29: Financial Overview
Financial Overview ($ in thousands) 2003 2004 2005 2006E (1) 2007E CAGR (03-07E) Revenue $43,703 $46,606 $49,805 $53,506 $57,792 7.2% % Growth 6.6% 6.9% 7.4% 8.0% Newspaper Cash Flow $8,940 $9,919 $11,258 $14,405 $16,590 16.7% Margin 20.5% 21.3% 22.6% 26.9% 28.7% % Growth 11.0% 13.5% 28.0% 15.2% Adj
Slide 30: Summary
Summary Pure-play community newspaper platform, with strategically clustered market-leading positions in attractive markets, offering a tremendous value proposition for advertisers Strong financial profile generating significant revenue and EBITDA growth Experienced, dedicated management team and wo