Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Barrington Research Spring Conference 2019
28 slides from Nexstar Media's conference presentation, May 2019
Slide 1: Nexstar Media Group, Inc. Barrington Research Spring Conference
NXST: NASDAQ Nexstar Media Group, Inc. Barrington Research Spring Conference Tom Carter, EVP & CFO M AY 2 0 1 9
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 North America’s Largest Local Media Companies Positioned for 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 in terms of U.S.
Slide 4: 2018: Record Financial Results For Seventh Consecutive Year
2018: Record Financial Results For Seventh Consecutive Year NXST Generated Record 2018 Financial Results NXST 4Q18 and FY18 Financial Results Y/Y and Political Even-Year Comparison1,2 4Q Ended Dec. 31 FY Ended Dec. 31 3M Change (%) 12M Change (%) (in millions) (in millions) 2018 2017 2016 2018 2017
Slide 5: 2019: First Quarter Financial Results and Capital Allocation
2019: First Quarter Financial Results and Capital Allocation NXST 2019 First Quarter Financial Results and Revenue Mix NXST 1Q19 Financial Results Y/Y and Non-Political Odd-Year Comparison1,2 NXST 1Q19 Revenue Mix (% of Total Net Revenue) 1Q Ended Mar. 31 3M Change (%) (in millions) Other Television
Slide 6: Nexstar Acquisition of Tribune Media
Nexstar Acquisition of Tribune Media SUBTITLE TEXT 6
Slide 7: Nexstar and Tribune: A Powerful Combination
Nexstar and Tribune: A Powerful Combination Leveraging the Value of Leading Local Media Assets, Scale, Diversification and Management Creates leading pure-play broadcast television and digital media company – One of the nation’s largest providers of local news, sports and network programming and d
Slide 8: Nexstar and Tribune: America's Leading Local Broadcast and Media Company
Nexstar and Tribune: America’s Leading Local Broadcast and Media Company #1 local broadcast group in terms of US TV household reach % of U.S. Television Households Reached, Inclusive of UHF Discount 39% 39% FCC Cap on National TV Ownership1 27% 25% 25% 24% 21% 20% 17% 13% 12% 7% 6% 4% ______________
Slide 9: Significantly Increases Geographic Diversification and Scale
Significantly Increases Geographic Diversification and Scale Pro Forma: 197 Television Stations in 115 markets across 42 US States1 #1 local broadcast TV station group and one of the largest producers and distributors of local news, lifestyle, sports and network programming 85 Unique 18 Unique 15 Ov
Slide 10: Strong Combined Company Financial Profile
Strong Combined Company Financial Profile 2017/2018 Net Revenues ($ millions) $4,585 $2,887 $2,054 $2,049 $1,029 NXST PF SBGI TGNA GTN (3) SSP + (1) 2017/2018 Adj. EBITDA ($ millions) $1,670 $840 $783 $722 $177 NXST PF SBGI TGNA GTN (3) SSP + (1)(2) ____________________ Source: Company filings and W
Slide 11: Nexstar and Tribune: Transaction Update
Nexstar and Tribune: Transaction Update In March, Tribune Media stockholders voted to approve the transaction In March and April, Nexstar entered into three definitive agreements with TEGNA, E.W. Scripps and Circle City Broadcasting to divest a total of 21 stations in 16 markets for an aggregate
Slide 12: Nexstar Stand-Alone Business Fundamentals
Nexstar Stand-Alone Business Fundamentals SUBTITLE TEXT 12
Slide 13: One of the Largest North American Local Media Companies
One of the Largest North American Local Media Companies 174 Local TV Stations 40 U.S. States 100 U.S. Markets 26% Household Reach* Growing Digital Business Note: Inclusive of UHF discount. 13
Slide 14: Expanded Geographic Reach and Increased Scale
Expanded Geographic Reach and Increased Scale 174 Local Television Stations across 100 markets in 40 U.S. States 14
Slide 15: 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 16: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals 1. Proven Business Model with High Barriers to Entry U.S. Pay TV Subscriber Growth (% Chg. Y/Y) • The pay TV subscriber model with traditional MVPDs (cable/satellite) and 5.0% vMVPD excluded vMVPD included virtual MVPDs (internet) remains relatively stable, tho
Slide 17: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals 4. Greatest Share of Consumers’ Time Spent 3Q18 American Adults Weekly Time Spent with Media (HH:MM) • Traditional TV has proven to be resilient, maintaining its central position in Traditional Live + Time-shifted Television 29:32 America’s households in an era
Slide 18: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising CMAG: Political Spot TV Ad Revenue Growth CMAG: 2018 Political Spot TV Ad Revenue ($ millions) (Top 15 States, % Share of Total Spend) Presidential Election Year Mid-term Election Year # State Ad Spend ($ mil.) Share (%) 1. California $480.7mm 16.1% $3.
Slide 19: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising Local TV Political Ad Spend Trends What To Expect NXST 2019 / 2020 Political Going Forward Senate and Gubernatorial Elections 2020 Senate Races 2020 Gubernatorial Races (34 Total Races; 24 NXST Markets) (11 Total Races; 9 NXST Markets) Market Incumbent
Slide 20: Growth in NXST Retransmission and Digital Media Revenue
Growth in NXST Retransmission and Digital Media Revenue Retransmission and Digital Media revenue is materially diversifying NXST’s total net revenue NXST Retransmission & Digital Media Revenue NXST Retransmission Revenue (% of Total Net Revenue) ($ millions) Retransmission Revenue as a % of Total Ne
Slide 21: 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 22: Nexstar Financials and Leverage
Nexstar Financials and Leverage SUBTITLE TEXT 22
Slide 23: Significant FCF Growth
Significant FCF Growth NXST Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) $615.0 2 $390.8 1 $184.0 $82.7 $47.2 2010/2011 2012/2013 2014/2015 2016/2017 2018/2019E 1 Reported average annual free cash flow before transaction expenses in the twenty-four month period
Slide 24: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Broadcast Cash Flow(1) $1,124 $2,767 $2,432 $869 $914 $1,103 $457 $896 $350 $631 $270 $369 $388 $502 $171 $193 $285 $252 $313 $306 $379 $172 $132 $82 $174 $116 $112 $157 $182 $190 $265 $279 39% 32% 42% 38% 45% 38% 43% 39% 41% 36% 41% 2008
Slide 25: 1Q19 Financial Summary
1Q19 Financial Summary Three Months Ended March 31 ($ in thousands) 2019 2018 Change Local Revenue $ 188,166 $ 193,268 (2.6 )% National Revenue $ 63,678 $ 67,045 (5.0 )% Political Revenue $ 1,307 $ 9,266 (85.9 )% Television Advertising Revenue $ 253,151 $ 269,579 (6.1 )% Retransmission Fee Revenue $
Slide 26: Debt/Leverage Analysis
Debt/Leverage Analysis TTM ENDED 3M ENDED (in millions) 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 03/31/19 Revolver $ 24.3 $ - $ - $ 5.5 $ 2.0 $ 2.0 $ 3.0 $ 5.6 $ 5.6 First Lien Term Loans 148.1 288.3 545.4 705.1 682.2 662.2 2,791.9 2,407.5 2,319.1 8.875% Sr. Sec 2nd Li
Slide 27: Transformative M&A, Commitment to Local and Operating Strategies Driving Record FCF
Transformative M&A, Commitment to Local and Operating Strategies Driving Record FCF • Continued growth of non-core revenue channels – Political: FY18 same-station political revenue was 50% higher than FY14 and 38% higher than FY16 • NXST political revenue exceeded guidance – Retransmission: Contract
Slide 28: Nexstar Media Group, Inc. Barrington Research Spring Conference
NXST: NASDAQ Nexstar Media Group, Inc. Barrington Research Spring Conference Tom Carter, EVP & CFO M AY 2 0 1 9
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