Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Investor Presentation (August 2020)
22 slides from Nexstar Media's investor presentation, Aug 20, 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 AU G U S T 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: COVID-19 Business Response
COVID-19 Business Response In 1H20, 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 5: 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 6: 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. 6
Slide 7: Top U.S. Broadcast Television Network Affiliate Partner
Top U.S. Broadcast Television Network Affiliate Partner 7 7
Slide 8: 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 ~67 Million U.S. TV Households +259,000 Hours of Local Content Annually ~
Slide 9: Valuable Interests in Prominent Assets
Valuable Interests in Prominent Assets OWNERSHIP OWNERSHIP 9
Slide 10: Launch of News Nation, WGN America's Primetime National Newscast
Launch of News Nation, WGN America’s Primetime National Newscast News Nation will draw on the local, regional, and national expertise of Nexstar’s 5,400 journalists in 110 local newsrooms across the country ▪ NXST is launching WGN America’s primetime national newscast, News Nation, on September 1st
Slide 11: Nexstar/Tribune: Meaningful Realizable Synergies
Nexstar/Tribune: Meaningful Realizable Synergies Achieved Year 1 Synergies of ~$185 million Original Projection Actual Difference ($/%) Corporate ~$20m ~$30m +$10m/+50% Overhead Expense ~$65m ~$70m +$5m/+8% Reduction Net Retransmission ~$75m ~$85m +$10m/+13% Revenue TOTAL ~$160m ~$185m +$25m/+16% 11
Slide 12: 2020: Record Second Quarter and First Half Financial Results
2020: Record Second Quarter and First Half Financial Results NXST Generated Record Second Quarter and First Half 2020 Financial Results NXST 2Q20 and 1H20 Financial Results Y/Y and Political Even-Year Comparison1,2 3M Ended Jun. 30 6M Ended Jun. 30 3M Change (%) 6M Change (%) (in millions) (in milli
Slide 13: YTD 2020 Highlights: Operations, Capital Structure and Leverage Reduction
YTD 2020 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 1Q20, marking the seventh annual consecutive rise in its cash dividend • In 1Q20, NXST complet
Slide 14: 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 15: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising ▪ Kantar 2020 political spending projection for local broadcast TV is $3.5 billion compared to $2.85 billion in 2016 ▪ For 2020, NXST expects to generate high single-digit growth over pro-forma 2018 political advertising revenue of ~$390 mm ▪ Presidenti
Slide 16: Growth in Local Broadcast TV News Viewership and NXST Digital User Engagement
Growth in Local Broadcast TV News Viewership and NXST Digital User Engagement Age 18+ Local Broadcast TV Evening News Viewership (Live and Live +1) Average Cumulative Weekly Impressions ▪ Local broadcast television remains an essential source Impressions (000) and Percent Increase vs. 2019 for criti
Slide 17: Significant Pro Forma FCF Growth
Significant Pro Forma FCF Growth NXST Reported Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) $606.8 2 1 $390.8 $184.0 $82.7 $47.2 2010/2011 2012/2013 2014/2015 2016/2017 2018/2019 (excludes Tribune Media transaction which closed 9/19) 1 Reported average annual fr
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 $82 39% 32% 42% 38% 45% 38% 43% 39% 41% 36% 41% 35% 2008 2009 2010 2011 2012 2013 2014 20
Slide 20: Summary 2Q20 and YTD Results
Summary 2Q20 and YTD Results Summary 2020 Second Quarter and YTD Financial Highlights Three Months Ended June 30 Six Months Ended June 30 ($ in thousands) 2020 2019 Change 2020 2019 Change Core advertising revenue $298,240 $267,611 +11.4% $715,619 $519,455 +37.8% Political revenue $21,566 $3,157 +58
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 6/30/20 Revolver $ 2.0 $ 3.0 $ 5.6 $ - $ - First Lien Term Loans 662.2 2,791.9 2,407.5 5,860.4 5,355.7 8.875% Sr. Sec 2nd Lien Notes - - - - - 6.875% Sr. Sub Notes 520.7 - - - - 6.125% Sr. Sub Notes 272.6 2
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 AU G U S T 2 0 2 0
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