Journal Media — Merger or Acquisition (March 2015)
24 slides from Journal Media's merger presentation, Mar 13, 2015
Slide 1: Investor Presentation March 2015
Investor Presentation March 2015
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements We make forward looking statements in this presentation. These forward looking statements relate to our outlook or expectations for earnings, revenues, results of operations, financing plans, expenses, competitive position or other future fin
Slide 3: Agenda
Agenda Company Overview Tim Stautberg President and CEO Delivering news, information and valuable advertising opportunities through market-leading newspaper brands and a growing portfolio of print and digital products Journal Media Group 3 Financial Highlights Jason Graham SVP, CFO & Treasurer Stron
Slide 4: Formation: Spin-Spin, Merge-Merge of E.W. Scripps and Journal Communications
Formation Spin-Spin, Merge-Merge of E.W. Scripps and Journal Communications Current E.W. Scripps Journal Communications SSP Broadcast Assets SSP Publishing Assets JRN Broadcast Assets JRN Publishing Assets Journal Media Group 4 SSP Shareholders own 59% Creates Two Pure-Play Companies to Unlock Value
Slide 5: Industry Landscape
Industry Landscape Print advertising facing headwinds Classified continues shift to highly competitive digital platforms Subscribers reducing frequency of home delivery Expanding premium services as digital subscribers grow Increasing research to improve connection with target markets Expansion of c
Slide 6: Company Overview
Company Overview Journal Media Group 6
Slide 7: Key Investment Highlights
Key Investment Highlights Premier source of local news and leading consumer reach in its markets Consumer-facing operating strategy focused on stabilizing revenue Focus on shared best practices to drive cost-efficiencies and operating margin opportunities Pure-play newspaper company with strong loca
Slide 8: Newspaper markets with strong brands and extensive local reach
Milwaukee, WI Memphis, TN 14 newspaper markets with strong brands and extensive local reach Knoxville, TN Redding, CA Kitsap, WA Evansville, IN Henderson, KY Wichita Falls, TX San Angelo, TX Corpus Christi, TX Naples, FL Ventura County, CA Treasure Coast, FL Anderson, SC Abilene, TX Journal Media Gr
Slide 9: Audience Reach
Audience Reach 57% 63% 67% 73% 58% 61% 56% 66% 65% 65% 73% 63% 56% 69% 40% 60% 80% Percentage of adults reached 0% 20% Newspaper Markets Weekly Readership on Print and Digital Platforms Journal Media Group 9 Source:2013 Scarborough Report for Corpus Christi; 2014 Scarborough Report for all others. M
Slide 10: Markets, Publishers and Subscribers
Market Publisher Years as a publisher Metro HH (000’s)* Subscribers (000’s)** Milwaukee, WI Betsy Brenner 19 630 294 Memphis, TN George Cogswell 12 498 120 Knoxville, TN Patrick Birmingham 11 336 96 Treasure Coast, FL Bob Brunjes 6 235 75 Naples, FL Bill Barker 3 159 59 Ventura, CA Shanna Cannon 9 2
Slide 11: Standard of Journalistic Excellence
Standard of Journalistic Excellence Since 2005, we are: Winners of three Pulitzer Prizes; five-time finalists 11-time winners of the EPPY Award for excellence in digital journalism Award-winning newsrooms Four-time winners of American Society of News Editors awards for distinguished writing, reporti
Slide 12: Strategic Priorities
Strategic Priorities Member Model Consumer focused to provide higher engagement and subscriber value Stronger and more robust consumer relationships generate valuable revenue opportunities Digital Platforms Consumer Facing Leverage our brand and consumer relationships across digital platforms Journa
Slide 13: Evolution From an Advertiser-Centric Model
Evolution From an Advertiser-Centric Model Journal Media Group 13
Slide 14: To a Consumer-Centric Focus
To a Consumer-Centric Focus Journal Media Group 14
Slide 15: Capturing Consumer-Facing Opportunities
Capturing Consumer-Facing Opportunities Leverage loyal subscribers to create incremental revenue streams Chief Consumer Officer to lead strategy Maximize advertising connections with our consumers Partner with third parties to enhance value to consumer Journal Media Group 15 Rethink subscriber relat
Slide 16: Digital Enhances Consumer-Centric Strategies
Digital Enhances Consumer-Centric Strategies Facilitates increased connectivity with loyal subscribers Creates direct member relationship with new customers Premium content verticals enhance sales opportunities Digital distribution monetizes content across all platforms Journal Media Group 16 Contin
Slide 17: Cost Efficiencies
Cost Efficiencies Maximize efficiencies across JMG Explore shared service opportunities Leverage best practices across larger newspaper group Align costs with revenue and stabilize profitability Journal Media Group 17
Slide 18: Financial Highlights
Financial Highlights Jason Graham Journal Media Group 18
Slide 19: Financial Highlights
Financial Highlights Conservative balance sheet; $10MM opening cash, no debt and free of substantially all qualified pension obligations Expected $50MM secured credit facility; undrawn at closing Strong cash flow and focus on stabilizing profitability Manage secular revenue challenges through consum
Slide 20: Clean Balance Sheet: Total Debt / LTM EBITDA
1.9x 2.2x 2.5x 4.8x 5.0x Clean Balance Sheet Total Debt / LTM EBITDA Capital structure with no debt provides flexibility for accretive M&A and return of capital 1 2 3 4 5 6 ($ in Millions) Net Debt ($10) ($85) $319 $311 ($331) $769 $1,003 0.0x 0.0x Journal Media Group 20 1 Pro Forma for 1/5/15 acqui
Slide 21: Pro Forma JMG Financials
Other 8% Pro Forma JMG Financials JMG is in a position to generate strong free cash flow with no debt and minimal capex 2014 Pro-forma Operating Revenue Mix 2014 Pro-Forma Results ($ in Millions) EBITDA Margin ~10% Capex ~$5MM Tax Rate 37% to 40% Depreciation & Amortization ~$25MM to $30MM $519 Adve
Slide 22: journal group
journal group Z
Slide 23: Highly Experienced Management
Highly Experienced Management Name Years at Company1 Years in Industry Background and Notable Achievements Tim Stautberg President & CEO 25 25 Tim held leadership roles at Scripps newspapers in Denver and Redding, Ca., before leading Investor Relations and later serving as the company’s CFO. He bega
Slide 24: Board of Directors
With an extensive background in technology and marketing, Aitken is a firm believer in the power of data, but also in the power of the customer and the subjective concept of loyalty. Prior to joining dunnhumbyUSA, he served as Executive Vice President and Chief Marketing Officer for leading arts-and
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