Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Nexstar Broadcasting Group — Investor Presentation (December 2003)
26 slides from Nexstar Media's investor presentation, Dec 10, 2003
Slide 1: Nexstar Broadcasting Group
Exhibit 99.1 Nexstar Broadcasting Group December 2003
Slide 2: Safe Harbor Act
Safe Harbor Act The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depen
Slide 3: Management Introduction
Management Introduction Perry A. Sook – Chief Executive Officer and President Ø Over 24 years of broadcasting experience • Founded Nexstar with ABRY in 1996 • Founded Superior Communications Group in 1991, operated for four years • Gaylord Broadcasting Company and Cox Communications Bob Thompson – E
Slide 4: Nexstar Broadcasting Group
Nexstar Broadcasting Group Leading independent station group and acquiror in mid-size markets Ø Pro forma for the acquisition of Quorum, KPOM, KFAA and sale of WTVW: • 42 stations – 28 stations owned and operated – 14 stations under Local Service Agreements offer economic benefits of ownership • 26
Slide 5: Nexstar Station Portfolio
Utica, NY WFXV (FOX)WPNY-LP (UPN) Erie, PA WJET (ABC)WFXP (FOX) Wilkes Barre / Scranton, PA WBRE (NBC)WYOU (CBS) Washington, DC WHAG (NBC) Springfield, MO KOLR (CBS)KDEB (FOX) Ft.Smith / Fayetteville /Springdale / Rogers, AR KPOM (NBC)KFAA (NBC) Dothan, AL WDHN (ABC) Rochester, NY WROC (CBS) Little
Slide 6: Attractive Revenue Mix
IL 14% MO 14% contributing NY 7% IN 5% MT 2% AL 1% PA 15% Revenue by State LA 5% AR 11% DC 4% TX 22% sale of WTVW. 5 (a) UPN/Ind 0.2% 4 stations FOX 15.4% 11 stations NBC 41.7% 13 stations ABC 14.2% 7 stations Revenue by Affiliation 7 stations Pro forma the acquisition of Quorum, KPOM, and KFAA and
Slide 7: Disciplined Consolidator of Mid-Market Television
(a) 42 PF 2003 YTD 5 20 2002 2 Market Television 18 2001 0 18 2000 2 sale of WTVW. 6 16 1999 4 9 1998 4 Cumulative Stations Owned / Operated / Managed 3 1997 1 Nexstar is an active mid-market consolidator 1 1996 1 Mid-sized markets with favorable characteristics Revenue enhancing opportunities with
Slide 8: Advantages of Targeting Mid-sized Markets
(a) 10.3 Markets 1-50 (b) Average Number of Stations Per Market 5.3 Nexstar Attractive Operating Landscape 7 Fewer competing television broadcasters More independent operators Lower cost structure Negotiating leverage with networks and vendors Favorable acquisition environment Includes full power st
Slide 9: Leading Operator in Mid-sized Markets
• markets 28.0% LIN • (a) • 29.7% Sinclair • 175 • mid-sized—49.5% Times strategy • 51 • Operator on NY its • to focused Ranked 54.5% Young adherence • Markets 60.5% Media General WTVW. of • Television from sale 8 • broadcaster 60.6% Emmis and • Pro. stations. KFAA • Market Revenue 82.8% Liberty dem
Slide 10: Capitalize on Local Advertising Strength
• National Local • consultative / Mix 65.6% revenues • Local growth 2002 Revenue local • through Spot 34.4% revenue brand Nexstar’s National controllable local advertisers and drives stations’ partnerships local stable 9 strength in development marketing with more • market influence Revenue 1971-200
Slide 11: Leveraging Viewers Club
Viewer Sign Up Loyal Viewership Event Involvement Revenue marketing efforts Viewers Club monetizes KTAL’s 10 Leveraging Viewers Club Merchant Savings Cash Prizes Viewer’s Club Membership
Slide 12: Additional Revenue Benefit Through Increased Viewership
$150K year one, $165K year two $50K per edition, $100K Annually $50K+ Annually $50K+ Annually Additional Revenue Benefit Through Increased Viewership 11 Revenue Streams Presenting Sponsor Viewer’s Club Extra Event Tie In Third Party Tie In
Slide 13: Implement and Maintain Strict Cost Controls
26.3% ACME 16.7% Young 15.9% Sinclair 8.6% Hearst- Argyle for Program Broadcast Rights, Program Payments, Adjusted Program 12 6.7% LIN 6.2% Nexstar Nexstar has developed a disciplined expense culture Implemented first year cost cuts that reduced operating expenses First half 2003 operating expenses
Slide 14: Leverage Duopoly Markets to Drive Margins
markets 42.2% LTM 9/30/03 13 Nexstar legacy duopoly market BCF margins increased from 26.9% at acquisition to 42.2% for the LTM 9/30/2003 Nexstar Legacy Duopoly BCF Margins 26.9% At Acquisition ?? Nexstar derives economic benefits from its multiple station strategy Leverage Duopoly Markets to Drive
Slide 15: Nexstar is the Leading Duopoly Market Operator
0.0% Young 9.3% Media General 13.4% Gray 15.7% ACME 21.7% Hearst- Argyle 14 27.2% Belo 39.8% LIN % of Households Reached Where Operator Has a Duopoly 47.5% Sinclair (a) Nexstar executes its strategy to focus on duopoly markets 54.2% Nexstar Excludes Washington, DC (DMA 8). Nexstar is the Leading Duo
Slide 16: Experienced Management Team
• Experience experience Broadcasting 24 1 20 18 23 16 15 9 leadership • experience of broadcast Years quality • Management high • of market Director retain years larger • Sales/COO 15 Quality 21 of Manager Manager Engineering News and • team over have VP/CFO VP of attract • High to • average general
Slide 17: Acquisition Strategy
• opportunities expansion 30% least competition margin at less of 16 stations markets and with operations growth returns markets affiliated duopoly equity Strategy network underperforming revenue mid-sized on additional Significant annualized Acquisition Target Focus Create Pursue ?? Target •
Slide 18: Mid-sized Markets Offer Acquisition Opportunities
175 (a) 16.1% 629 Markets Ranked 51- % of Stations Owned 83.9% (b) Top 10 TV Broadcasters All Other TV Broadcasters 17 50 (a) 47.4% 515 Markets Ranked 1- % of Stations Owned 52.6% Nexstar has significant additional consolidation opportunities Mid-sized Markets Offer Acquisition Opportunities Total S
Slide 19: Quorum Acquisition
Financially Highly accretive Substantial and immediate cost savings Revenue synergies in duopoly markets ?? ?? ?? 18 15 stations in 9 markets with 5 additional duopolies Acquisition to close in 4Q 2003 Strategically Quorum represents a highly accretive acquisition opportunity Size Geography Operatin
Slide 20: Quorum Acquisition: Substantial Financial Upside
(continued) Station level and combined corporate overhead 19 Quorum Acquisition Substantial financial upside Substantial cost reductions identified ? Source: Company data.
Slide 21: Successful Acquisition Track Record
• History Months 0 Young opportunities • 2003 18 • 0 on • in Last Liberty • the close acquisitions strategy in—and • Acquisition stations 0 Hearst Argyle • 20 Value disciplined of Total develop acquisition 1 to • Leading and $22.0 Sinclair 20 • through acquisition months ability filings. • TV SEC •
Slide 22: Demonstrated Success of Acquisition Strategy
(a) LTM 9/30/03 $105.8 (b) At Acquisition $90.1 21 Performance of All Stations Operated for Three Years or More ($ in millions) Net Revenue Nexstar’s acquisition success drives shareholder value Demonstrated Success of Acquisition Strategy Nexstar has significantly increased profitability at its acq
Slide 23: Leading Political Revenue Share
• 4.9% Sinclair • revenue Belo). • 6.6% LIN Gannett, Times, • Revenue 7.4% Belo advertising York states (New • Net 8.4% Quorum research • of political states % revenues multiple a 8.4% Gray of analyst • vote as Sinclair), • from share political electoral Revenue 10.2% Hearst- Argyle LIN, 22 • Quorum
Slide 24: Historical Financial Performance
Does not include KRBC/KACB or KPOM/KFAA. Does not include KRBC/KACB or KPOM/KFAA. 23 (a),(c) $144.7 PF 9 Mo. 9/30/03 (a),(b) $198.3 PF 2002 $123.1 2002 $99.1 2001 RG A 2000 C $107.1 % 8 . 12 $78.5 1999 SEC filings and Company data. Pro forma for Quorum acquisition and sale of WTVW. Pro forma for KAR
Slide 25: Overview of Recapitalization
(a) 24 Enhances free cash flow Long-term maturities, no near-term amortization requirements PF revolver availability: $43.9 million IPO New Amended and Restated Credit Facilities New $125 million Senior Subordinated Note issuance Simplified capital structure Lower cost of debt – Positions Nexstar fo
Slide 26: Capitalization
Net LTM 2.02x 5.65x 6.72x Leverage Ratios 3.5 79.0 —- —- —- 14.6 (a) $32.0 188.0 188.0 155.3 125.0 468.3 550.8 $565.4 Pro Forma As of September 30, 2003 $51.7 197.2 197.2 155.3 0.0 352.5 3.5 79.0 27.7 462.7 53.4 8.3 (57.2) $467.2 Actual 25 Debt Debt ($ in millions) Senior Credit Facilities Total Sen
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