Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Investor Presentation (May 2017)
21 slides from Nexstar Media's investor presentation, May 2017
Slide 1: Nexstar Media Group, Inc. Investor Presentation
NXST: NASDAQ Nexstar Media Group, Inc. Investor Presentation Perry Sook, Chairman, President & CEO Tom Carter, EVP and CFO M AY 2 0 1 7
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This communication includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward-looking statements include information preceded by, followed by, or that includes the
Slide 3: Nexstar Media Group, Inc. (Nasdaq: NXST)
Nexstar Media Group, Inc. (Nasdaq: NXST) One of the Largest North American Local Media Companies Positioned for Success and the Ongoing Enhancement of Long-Term Shareholder Value • Pure-play broadcast television and digital media leader with broad geographic scale and reach – #2 in broadcast group i
Slide 4: 2016: Record Financial Results For Fifth Consecutive Year
2016: Record Financial Results For Fifth Consecutive Year Record Financial Results For Fifth Consecutive Year • Surpassed $1.0 bn in annual net revenues for the first time in the Company’s history • Generated ~$7.98 of FCF per share, or +18.4% growth over 2015 levels, excluding MEG-transaction fees
Slide 5: 2017: YTD Operating Results
2017: YTD Operating Results • 1Q17 BCF, Adjusted EBITDA and free cash flow growth before transaction expenses of 91.9%, 97.6% and 80.5% • Strong local sales teams and focus on managing core ad inventory resulted in a modest increase in pro forma combined Company same-station local advertising revenu
Slide 6: One of the Largest North American Local Media Companies
One of the Largest North American Local Media Companies 170 Local TV Stations 40 U.S. States 100 U.S. Markets 26% Household Reach* Growing Digital Business Note: Inclusive of UHF discount. 6
Slide 7: Leading Pure-Play Broadcast Operator
Leading Pure-Play Broadcast Operator Financial Strength and Flexibility to Pursue Additional Select Accretive Acquisitions % of U.S. Television Households Reached Household Reach Excluding UHF Discount 70% Household Reach Including UHF Discount 39% 38% 37% 39% FCC Cap on National TV Ownership 39% 32
Slide 8: Expanded Geographic Reach and Increased Scale
Expanded Geographic Reach and Increased Scale 170 Local Television Stations across 100 markets in 40 U.S. States 8
Slide 9: Nexstar Broadcasting, Inc.
Nexstar Broadcasting, Inc. Superior Locally Produced Content and Network Programming for Viewers; Unrivaled Consumer Reach / Influence for Local Businesses and Advertisers • Leading local broadcast television operator – #2 broadcast group in terms of U.S. television household reach of 26%* • Financi
Slide 10: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals Premium, Professionally-Produced Content With Unmatched Reach And Viewership Share Share of Total TV Viewing Time Live TV and DVR Time Split by Genre Live TV and OTT Time Split Among HHs with Both Services VOD DVR Live TV Live TV DVR +15 Days OTT Live TV 1.1% 0
Slide 11: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising NXST Political Ad Revenue Growth NXST 2018 Political ($ millions) Senate and Gubernatorial Elections 2018 Senate Races 2018 Gubernatorial Races Even Year Odd Year NXST Market Incumbent Party NXST Market Incumbent Party Arizona Jeff Flake R Alabama Rober
Slide 12: Growth in NXST Retransmission and Digital Media Revenue
Growth in NXST Retransmission and Digital Media Revenue Retransmission and Digital Media revenue is materially diversifying NXST’s total net revenue NXST Retransmission & Digital Media Revenue NXST Retransmission Revenue ($ millions) (% of Total Net Revenue) $394.0 $298.0 Retransmission Revenue as a
Slide 13: Nexstar Digital LLC
Nexstar Digital LLC Comprehensive Suite of Cross-platform Digital Marketing Products and Services for Local and National Media Companies, Advertisers, Agencies and Brands • Leading local digital advertising and content monetization solutions and services – Profitable / growing business segment with
Slide 14: High-Growth Digital Industry Trends
High-Growth Digital Industry Trends Creating Superior New Revenue Locally Opportunities Produced Content Through and Network Digital Innovations, ProgrammingProducts for Viewers; and Services Local Advertising Share by Type: 2016-2021 Growth in Digital Media Time Spent in Minutes (MM) Print Media Ot
Slide 15: Significant FCF Growth Since IPO
Significant FCF Growth Since IPO NXST Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) $453.1 $244.7 $114.7 $80.0 $41.7 $54.3 $15.1 2003/2004 2005/2006 2007/2008 2009/2010 2011/2012 2013/2014 2015/2016 Organic growth, fueled by political, digital and retrans revenues, and recently
Slide 16: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Core Revenues $1,103 $523 $532 $896 $389 $349 $631 $502 $250 $238 $266 $236 $247 $213 $379 $313 $306 $267 $285 $252 $176 $172 $157 $174 $182 $190 $265 $279 $369 $388 $74 $66 $55 $62 $66 $76 $113 $110 $154 $144 2007A 2008A 2009A 2010A 2011A
Slide 17: First Quarter 2017 Financial Summary
First Quarter 2017 Financial Summary Three Months Ended March 31, ($ in thousands) 2017 2016 Change Local Revenue $ 202,430 $ 93,767 +115.9% National Revenue $ 77,711 $ 35,450 +119.2% Core Advertising Revenue $ 280,141 $ 129,217 +116.8% Political Revenue $ 1,995 $ 11,754 (83.0)% Retransmission Fee R
Slide 18: Debt/Leverage Analysis
Debt/Leverage Analysis MEG 1Q17 TTM ENDED Closing (in millions) 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 01/17/17 03/31/17 Revolver $ 24.3 $ - $ - $ 5.5 $ 2.0 $ 2.0 $ 3.0 $ 3.0 First Lien Term Loans 148.1 288.3 545.4 705.1 682.2 662.2 3,120.0 2,931.4 8.875% Sr. Sec 2nd Lien Notes 318.4
Slide 19: Combined Company Guidance
Combined Company Guidance On January 17, 2017 Nexstar Completed the Acquisition of Media General and Expects to Generate its Sixth Consecutive Year of Record Financial Results • The transaction is projected to more than double NXST’s revenue and adjusted EBITDA • Readily achievable year one synergie
Slide 20: Transformational M&A and Operating Strategies Driving Record FCF
Transformational M&A and Operating Strategies Driving Record FCF • Continued double-digit growth of non-core revenue channels – Political: Even-year CAGR of 35% (2008-2016), odd-year CAGR of 31% (2007-2015) • NXST Political revenue exceeded ~$100 mm guidance in 2016 by 8.5% – Retransmission: Contrac
Slide 21: Nexstar Media Group, Inc. Investor Presentation
NXST: NASDAQ Nexstar Media Group, Inc. Investor Presentation Perry Sook, Chairman, President & CEO Tom Carter, EVP and CFO M AY 2 0 1 7
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