Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Investor Presentation (May 2020)
22 slides from Nexstar Media's investor presentation, May 2020
Slide 1: Nexstar Media Group, Inc. Investor Presentation
Nexstar Media Group, Inc. Investor Presentation Perry A. Sook, Founder, Chairman, President & CEO Tom Carter, Executive Vice President & CFO M AY 2 0 2 0
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)
Nexstar Media Group, Inc. (Nasdaq: NXST) North America’s largest broadcaster and local media company – Positioned for the ongoing enhancement of shareholder value • Affiliate broadcast television and digital media leader with unrivaled geographic scale and reach – #1 US television broadcaster with 1
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 38% 39% FCC C
Slide 5: Superior Geographic Diversification and Scale
Superior Geographic Diversification and Scale 196 Local & Network Affiliated TV Stations 1 114 U.S. Markets 362 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: Top U.S. Broadcast Television Network Affiliate Partner
Top U.S. Broadcast Television Network Affiliate Partner #1 CBS #1 FOX #2 NBC #3 ABC 6 6
Slide 7: 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 15 Top 25 U.S. Television Markets ~69 Million U.S. TV Households +259,000 Hours of Local Content Annually ~
Slide 8: Valuable Interests in Prominent Cable and Radio Assets
Valuable Interests in Prominent Cable and Radio Assets 100% OWNERSHIP 31% OWNERSHIP 8
Slide 9: Nexstar/Tribune: Meaningful Realizable Synergies
Nexstar/Tribune: Meaningful Realizable Synergies Total Expected Year 1 Synergy Realization of ~$185 million Original Projection Current Projection Difference ($/%) Corporate ~$20m ~$30m +$10m/+50% Overhead Expense ~$65m ~$70m +$5m/+8% Reduction Net Retransmission ~$75m ~$85m +$10m/+13% Revenue TOTAL
Slide 10: 2019: Record Off-Cycle Political Year Financial Results
2019: Record Off-Cycle Political Year Financial Results NXST Generated Record 2019 Off-Cycle Political Year Financial Results NXST 4Q19 and FY19 Financial Results Y/Y and Non-Political Odd-Year Comparison1,2 FY Ended Dec. 31 12M Change (%) (in millions) 2019 2018 2017 ‘19 vs. ‘18 ‘19 vs. ‘17 Net Rev
Slide 11: 2019 Highlights: Business, Capital Allocation and Capital Structure
2019 Highlights: Business, Capital Allocation and Capital Structure • In 3Q19, NXST completed its second transformative transaction in the last three years – closed the highly accretive acquisition of Tribune Media, creating the largest television broadcast station group in the U.S. • Since closing,
Slide 12: 2020: Record First Quarter Financial Results
2020: Record First Quarter Financial Results NXST Generated Record First Quarter Financial Results NXST 1Q20 Financial Results Y/Y and Political Even-Year Comparison1,2 1Q Ended Mar. 31 • Record 1Q revenue, broadcast cash flow, adjusted EBITDA and 3M Change (%) (in millions) free cash flow primarily
Slide 13: 1Q20 Highlights: Operations, Capital Structure and Leverage Reduction
1Q20 Highlights: Operations, Capital Structure and Leverage Reduction • In early 2020, NXST’s Board of Directors approved a 24.4% increase in the quarterly cash dividend to $0.56 per share beginning in first quarter of 2020, marking the seventh annual consecutive rise in its cash dividend • NXST ann
Slide 14: COVID-19 Business Response
COVID-19 Business Response In 1Q20, NXST took immediate actions to adapt its business to operate in the current environment and to preserve liquidity in order to best position the Company for long-term success as it returns to normalized operation OPERATIONS: • Given NXST’s revenue diversification i
Slide 15: 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 Data 2015 2016 2017 2018 2019
Slide 16: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising 2020 Senate Races 2020 Gubernatorial Races ▪ Kantar 2020 preliminary political spending projection for local (34 Total Races; 24 NXST Markets) (11 Total Races; 9 NXST Markets) NXST Market Incumbent Party NXST Market Incumbent Party broadcast TV is $3.2
Slide 17: Significant Pro Forma FCF Growth
Significant Pro Forma FCF Growth NXST Reported Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) $606.8 2 1 $390.8 $184.0 $82.7 $47.2 2010/2011 2012/2013 2014/2015 2016/2017 2018/2019 1 Reported average annual free cash flow before transaction expenses in the twenty-
Slide 18: 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: Expected high-single digit percentage growth in FY20 political revenue over FY18 pro-forma political revenue of ~$400mm – Retransmission: Contract renewals
Slide 19: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Broadcast Cash Flow(1) $3,039 $1,124 $2,767 $1,055 $2,432 $869 $457 $1,103 $350 $896 $270 $631 $171 $193 $379 $502 $112 $132 $116 $285 $252 $313 $306 $82 39% 32% 42% 38% 45% 38% 43% 39% 41% 36% 41% 35% 2008 2009 2010 2011 2012 2013 2014 20
Slide 20: Summary 1Q20 Results
Summary 1Q20 Results Summary 2020 First Quarter Financial Highlights Three Months Ended March 31 ($ in thousands) 2020 2019 Change Core advertising revenue $417,379 $251,844 +65.7% Political revenue $55,341 $1,307 +4134.2% Total Advertising revenue $472,720 $253,151 +86.7% Distribution fee revenue $
Slide 21: Debt / Leverage Analysis
Debt / Leverage Analysis TTM ENDED 3M ENDED (in millions) 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 3/31/20 Revolver $ - $ - $ 5.5 $ 2.0 $ 2.0 $ 3.0 $ 5.6 $ - $ - First Lien Term Loans 288.3 545.4 705.1 682.2 662.2 2,791.9 2,407.5 5,860.4 5,364.8 8.875% Sr. Sec 2nd Lien
Slide 22: Nexstar Media Group, Inc. Investor Presentation
Nexstar Media Group, Inc. Investor Presentation Perry A. Sook, Founder, Chairman, President & CEO Tom Carter, Executive Vice President & CFO M AY 2 0 2 0
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