FP Newspapers Inc. · TSXV:FP
FP Newspapers — FP Newspapers Income Fund — Shareholder Meeting (May 2008)
34 slides from FP Newspapers's shareholder meeting presentation, May 7, 2008
Slide 1: FP Newspapers Income Fund 2007 Annual General Meeting
FP Newspapers Income Fund 2007 Annual General Meeting May 7, 2008 FP NEWSPAPERS TSX: FP.UN INCOME FUND ANNUAL MEETING 2007
Slide 2: Formal Meeting
Formal Meeting Annual General Meeting • Introduction • Quorum • Resolutions FP NEWSPAPERS INCOME FUND 2 ANNUAL MEETING 2007
Slide 3: FP Newspapers Income Fund 2007 Annual General Meeting
FP Newspapers Income Fund 2007 Annual General Meeting Ronald N. Stern, Chairman May 7, 2008 TSX: FP.UN
Slide 4: Forward-Looking Statements
FP Newspapers Income Fund FORWARD-LOOKING STATEMENTS: Certain statements in this presentation are ‘‘forward- looking statements’’ which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, FP Trust or FPLP to be
Slide 5: Contents
Contents: ● Summary ● Approach ● Year in Review ● Q1 Review ● Outlook FP NEWSPAPERS INCOME FUND 5 ANNUAL MEETING 2007
Slide 6: Summary
Summary • FP.UN holds 49% of FPLP • IPO May 2002 • 6.9 million Units issued • Distributing $1.29 per year • 5 year cumulative total return at 12/31/07 - $22.74 Operations: • 2 daily newspapers • 7 community and specialty • Distribution and websites FP NEWSPAPERS INCOME FUND 6 ANNUAL MEETING 2007
Slide 7: Approach
Approach • We focus on providing high-quality content to inform and entertain our readers – Translates to superior readership and circulation, driving advertising revenue – Respect our heritage and leverage our audience – Long term outlook; prudent distribution policy – Investment discipline – seek
Slide 8: 2007 Year in Review
2007 Year in Review FP Canadian Newspapers • Revenue grew 3% to $125.9 million – Led by display advertising and flyer distribution • EBITDA increased $3 million or 12% • Distributions held steady at $1.29 – 80.2% pay-out ratio for 2007 and 89.5% since inception FP NEWSPAPERS INCOME FUND 8 ANNUAL MEE
Slide 9: 2007 Year in Review
2007 Year in Review • Bob Cox appointed publisher • Margo Goodhand appointed editor FP NEWSPAPERS INCOME FUND 9 ANNUAL MEETING 2007
Slide 10: 2007 Year in Review
2007 Year in Review Winnipeg Free Press • Continued to build on dominant market position with aggressive web expansion • Online reorganized to focus on revenue generation • Newsroom reorganized to produce and publish content continuously FP NEWSPAPERS INCOME FUND 10 ANNUAL MEETING 2007
Slide 11: 2007 Year in Review
2007 Year in Review • Hermetic Code book launched at Fort Garry Hotel. Project won first place in Canadian Newspaper Association’s Great Ideas contest. FP NEWSPAPERS INCOME FUND 11 ANNUAL MEETING 2007
Slide 12: 2007 Year in Review
2007 Year in Review • Free Press receives award for Outstanding Philanthropic organization from the Association of Fund Raising Professionals FP NEWSPAPERS INCOME FUND 12 ANNUAL MEETING 2007
Slide 13: 2007 Year in Review
2007 Year in Review NNA Nominations • Phil Hossack (feature photography) Gordon Sinclair Jr. (columns); Jen Skerritt (beat reporting, for health) and Gerald Flood (editorials) FP NEWSPAPERS INCOME FUND 13 ANNUAL MEETING 2007
Slide 14: 2007 Year in Review
2007 Year in Review • Press controls FP NEWSPAPERS INCOME FUND 14 ANNUAL MEETING 2007
Slide 15: 2007 Year in Review
2007 Year in Review • Canine idol contest and calendar wins first in CNA best practices competition for online FP NEWSPAPERS INCOME FUND 15 ANNUAL MEETING 2007
Slide 16: 2007 Year in Review
2007 Year in Review • The agricultural sector was buoyed by good growing conditions and higher commodity prices • Oil exploration and the development of new fields southwest of Brandon continued at record levels • Brandon is the regional hub for retail and services, and recent store openings has onl
Slide 17: 2007 Year in Review
2007 Year in Review • The Sun’s daily average circulation increased by 3% • The Sun posted strong year-on-year gains in advertising and commercial printing revenues FP NEWSPAPERS INCOME FUND 17 ANNUAL MEETING 2007
Slide 18: 2007 Year in Review
2007 Year in Review • The Brandon Sun celebrated its 125th anniversary in 2007 and remains the dominant media on the western side of the province. FP NEWSPAPERS INCOME FUND 18 ANNUAL MEETING 2007
Slide 19: 2007 Year in Review
2007 Year in Review • Bryan Metcalfe appointed publisher • Collective agreement negotiated so that Canstar will be integrated with Free Press • Sales team reorganized under new manager, Dan Szun FP NEWSPAPERS INCOME FUND 19 ANNUAL MEETING 2007
Slide 20: 2007 Year in Review
2007 Year in Review FP Canadian Newspapers Limited Partnership (in millions of dollars) 2007 2006 2005 2004 Revenue $125.9 $122.2 $116.9 $111.2 EBITDA $28.5 $25.5 $24.1 $24.3 (in dollars) Distributable cash $1.61 $1.43 $1.35 $1.42 per unit Distributions $1.29 $1.29 $1.29 $1.27 declared per unit FP N
Slide 21: Q1 – 2008 Review
Q1 – 2008 Review FP Canadian Newspapers Limited Partnership • Slower revenue growth of 0.6% – Weakness in national and employment advertising • EBITDA growth of 5% – Helped by lower newsprint price FP NEWSPAPERS INCOME FUND 21 ANNUAL MEETING 2007
Slide 22: Q1 – 2008 Review
Q1 – 2008 Review FP Canadian Newspapers Limited Partnership (in millions of dollars) 2008 2007 Revenue + .6% $30.0 $29.8 EBITDA +5.0% $ 6.0 $ 5.7 EBITDA Margin 20.1% 19.2% FP NEWSPAPERS INCOME FUND 22 ANNUAL MEETING 2007
Slide 23: Q1 – 2008 Review
Q1 – 2008 Review Last Period from Twelve May 28, 2002 (in thousands of dollars) Months to Mar. 31, 2008 49% of distributable cash of FPLP $11,549 $58,645 Administrative expenses (272) (1,574) Interest Income 13 39 $11,290 $57,110 Distributable cash attributable to the Fund – per unit $1.64 $8.274 Di
Slide 24: Q1 – 2008 Review
Q1 – 2008 Review • Launch Autos classified website FP NEWSPAPERS INCOME FUND 24 ANNUAL MEETING 2007
Slide 25: Q1 2008 Operations
Q1 2008 Operations • Two additional holidays – Louis Riel Day and Good Friday • Increased display advertising in local and national automotive • Lower employment advertising and reduced telecommunications spending • Operating expenses down 0.5%, due to lower newsprint costs • Employee compensation c
Slide 26: Audit Bureau of Circulations
Audit Bureau of Circulations 6 Months Ended March 31, 2008 Total Paid Circulation (preliminary unaudited) Mon-Fri Saturday Sunday Winnipeg Free Press + 1.24% +0.22% + .86% Winnipeg Sun* +4.89% +3.50% +2.65% * Sun circulation gains are due to the distribution of free newspapers FP NEWSPAPERS INCOME F
Slide 27: Winnipeg Newspaper Readership Among Adults
Winnipeg Newspaper Readership Among Adults 2007 2002 Weekdays Winnipeg Free Press 43% 44% Winnipeg Sun 21% 25% Saturday Winnipeg Free Press 54% 58% Winnipeg Sun 17% 22% Sunday Winnipeg Free Press 40% 44% Winnipeg Sun 16% 22% Source: 2007 NADbank Study, 2002 NADbank Study – All Adults 18+ FP NEWSPAPE
Slide 28: Source: 2007 NADbank Study
Source: 2007 NADbank Study FP NEWSPAPERS INCOME FUND 28 ANNUAL MEETING 2007
Slide 29: Weekly Readership of Daily Newspapers in Major Canadian Cities
Weekly Readership of Daily Newspapers in Major Canadian Cities Source: 2007 NADbank Study - 6/7 Day Cume, Adults 18+ Note: The Globe and Mail and National Post figures are for the Toronto C.M.A. FP NEWSPAPERS INCOME FUND 29 ANNUAL MEETING 2007
Slide 30: Winnipeg Newspaper Readership Among Adults With Household Income $75,000+
Winnipeg Newspaper Readership Among Adults With Household Income $75,000+ Source: 2007 NADbank Study FP NEWSPAPERS INCOME FUND 30 ANNUAL MEETING 2007
Slide 31: Source: 2007 NADbank Study
Source: 2007 NADbank Study * Brandon Sun figures from 2004 NADbank Study FP NEWSPAPERS INCOME FUND 31 ANNUAL MEETING 2007
Slide 32: Advertising Outlook
Advertising Outlook • Winnipeg and Manitoba economies steady in early 2008 but national outlook having an impact • Automotive category strong as lower prices continue • Telecommunications category starting to pick up FP NEWSPAPERS INCOME FUND 32 ANNUAL MEETING 2007
Slide 33: Expense and Capital Outlook
Expense and Capital Outlook • Compensation costs expected to rise 3-4% for the year • Newsprint price increased January 1; increases scheduled through to mid-year • 2008 maintenance capital spending estimated at $1.8 million in spending • Strategic capital investments planned for Q2 for Canstar reno
Slide 34: FP NEWSPAPERS
FP NEWSPAPERS INCOME FUND 34 ANNUAL MEETING 2007
FP Newspapers Income Fund — Shareholder Meeting (May 2008) on 6ix