Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Investor Presentation (June 2021)
22 slides from Nexstar Media's investor presentation, June 2021
Slide 1: Nexstar Media Group, Inc. Investor Presentation
Nexstar Media Group, Inc. Investor Presentation Perry A. Sook, Founder, Chairman & CEO Tom Carter, President, COO & CFO JUNE 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation 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 w
Slide 3: Nexstar Media Group, Inc. (Nasdaq: NXST) Overview
Nexstar Media Group, Inc. (Nasdaq: NXST) Overview North America’s largest local media company – Positioned for the ongoing enhancement of shareholder value • Local media and content leader with unrivaled geographic scale, reach, consumption – #1 US television broadcaster with 199 stations in 116 mar
Slide 4: Largest Local Affiliate Broadcast Group by U.S. TV Household Reach
Largest Local Affiliate Broadcast Group by U.S. TV Household Reach #1 local broadcast TV affiliate station group and one of the largest producers and distributors of local news, lifestyle, sports and network programming % of U.S. Television Households Reached, Inclusive of UHF Discount 39% FCC Cap o
Slide 5: Superior Geographic Diversification and Scale
Superior Geographic Diversification and Scale 199 Local & Network Affiliated TV Stations 1 116 U.S. Markets 460 Local Websites and Mobile Apps 40 U.S. States (1) Includes both Nexstar-owned stations and stations to which Nexstar provides services pursuant to contractual agreements. 5
Slide 6: Strong Local Television Brands with Leading Local News and Content
Strong Local Television Brands with Leading Local News and Content Award-winning journalism, top-rated network programming and premium local and regional multi-platform marketing opportunities 17 Top 25 U.S. Television Markets ~82.5 Million U.S. TV Households +270,000 Hours of Local Content Annually
Slide 7: Launch of NewsNation, WGN America's Primetime National Newscast
Launch of NewsNation, WGN America’s Primetime National Newscast NewsNation draws on the local, regional, and national expertise of Nexstar’s 5,500 journalists in local newsrooms across the country ▪ NXST launched its primetime national newscast, NewsNation, on Sept. 1, 2020 ▪ WGN America was rebrand
Slide 8: 2020: Record Financial Results
2020: Record Financial Results NXST Generated Record 2020 Financial Results NXST 2020 Financial Results Y/Y and Political Even-Year Comparison1,2 12M Ended Dec. 31 ▪ NXST generated record net revenue, Adjusted EBITDA 12M Change (%) (in millions) and free cash flow in 2020 2020 2019 2018 ‘20 vs. ‘19
Slide 9: 2020 Highlights: Operations, Capital Structure, Leverage Reduction & Return of Capital
2020 Highlights: Operations, Capital Structure, Leverage Reduction & Return of Capital • Record FY20 revenue, broadcast cash flow, adjusted EBITDA and free cash flow primarily reflecting the realization of Tribune synergies, distribution agreement renewals executed in 2H19 and strong political adver
Slide 10: 2020 Highlights: Capital Markets Transactions / Strategic Operational Alignment
2020 Highlights: Capital Markets Transactions / Strategic Operational Alignment • NXST completed two capital market transactions that allowed the Company to eliminate its most expensive debt while extending maturities • NXST and Mission entered into an incremental secured revolving credit facility i
Slide 11: 2021: Record First Quarter Financial Results
2021: Record First Quarter Financial Results NXST Generated Record First Quarter Financial Results in 2021 NXST 2021 Financial Results Y/Y and Non-Political Odd-Year Comparison1,2 3M Ended Mar. 31 ▪ NXST’s record first quarter net revenue reflects 3M Change (%) (in millions) double-digit digital and
Slide 12: 2021 YTD Highlights: Operations, Capital Structure, Leverage Reduction & Return of Capital
2021 YTD Highlights: Operations, Capital Structure, Leverage Reduction & Return of Capital • Record 1Q21 revenue, broadcast cash flow, adjusted EBITDA and free cash flow primarily reflecting double-digit digital and distribution revenue and a continued recovery in core advertising, which offset the
Slide 13: Growth in NXST Retransmission Revenue
Growth in NXST Retransmission Revenue TV ratings and programming cost analysis supports continued growth in retransmission fee revenues given broadcast’s strong viewership trends compared to basic cable SNL Kagan Programming Cost Estimates Comscore TV Essentials Ratings Data1 2015 2016 2017 2018 201
Slide 14: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising 2022 Senate Races 2022 Gubernatorial Races ▪ NXST significantly exceeded its 2020 full year political revenue (34 Total Races; 29 in NXST Markets) (38 Total Races; 29 in NXST Markets) guidance, generating $507 million in political advertising revenue Ma
Slide 15: Growth in Local Broadcast TV News Viewership and NXST Digital User Engagement
Growth in Local Broadcast TV News Viewership and NXST Digital User Engagement Age 18+ Local Broadcast TV Evening News Viewership (Live +1) Average Cumulative Weekly Impressions ▪ Local broadcast television remains an essential source Impressions (000) and Percent Increase vs. 2019 2019 2020 for crit
Slide 16: Significant Pro Forma FCF Growth
Significant Pro Forma FCF Growth ($ in millions) NXST Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles 3 $1,270 2 $872 1 $577 $227 $123 $58 2011/2012 2013/2014 2015/2016 2017/2018 2019/2020 2021/2022 1 Reported average annual free cash flow before transaction expenses in the twenty
Slide 17: Prudent Allocation of Capital
Prudent Allocation of Capital • NXST brought ~28% of every net revenue dollar to the free cash flow line in NXST 2020 Capital Allocation Mix (%) 2020, allowing the Company to strategically deploy cash in a manner that is consistent with its commitment to leverage reduction and shareholder returns So
Slide 18: Local Leadership Combined with Disciplined Operating Strategies Driving Record FCF
Local Leadership Combined with Disciplined Operating Strategies Driving Record FCF • Continued growth of non-core revenue channels – Political: NXST exceeded its 2020 full year political revenue guidance, generating $507 million in political advertising revenue – Retransmission: Contract renewals fo
Slide 19: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Income From Operations $4,501 $1,375 $3,039 $2,767 $2,432 $758 $655 $506 $1,103 $896 $287 $502 $631 $173 $206 $313 $306 $379 $100 $103 $31 $48 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 20: Summary 1Q21 Financial Results
Summary 1Q21 Financial Results Summary 1Q21 Financial Highlights Three Months Ended March 31 ($ in thousands) 2021 2020 Change Core advertising revenue $411,714 $417,379 (1.4)% Political revenue $5,408 $55,341 (90.2)% Total Advertising revenue $417,122 $472,720 (11.8)% Distribution fee revenue $621,
Slide 21: Debt / Leverage Analysis
Debt / Leverage Analysis TTM ENDED 3M ENDED (in millions) 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 3/31/21 Revolver $ 2.0 $ 3.0 $ 5.6 $ - $ 327.0 $ 327.0 First Lien Term Loans 662.2 2,791.9 2,407.5 5,860.4 4,559.1 4,483.1 6.875% Sr. Sub Notes 520.7 - - - - - 6.125% Sr. Sub Notes 272.6 273.0 273.
Slide 22: Nexstar Media Group, Inc. Investor Presentation
Nexstar Media Group, Inc. Investor Presentation Perry A. Sook, Founder, Chairman & CEO Tom Carter, President, COO & CFO JUNE 2021
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