FP Newspapers Inc. · TSXV:FP
FP Newspapers — FP Newspapers Income Fund — Shareholder Meeting (May 2010)
44 slides from FP Newspapers's shareholder meeting presentation, May 5, 2010
Slide 1: FP Newspapers Income Fund Annual General Meeting 2009
FP Newspapers Income Fund Annual General Meeting 2009 May 5, 2010 FFP P NNEWSPAPERS EWSPAPERS TSX: FP.UN IINCOME N C O M EFUND FUND ANNUAL MEETING ANNUAL MEETING 2008 2009
Slide 2: Formal Meeting
Formal Meeting Annual General Meeting • Introduction • Quorum • Resolutions FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 2 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 3: Annual General Meeting 2009 - Chairman
FP Newspapers Income Fund Annual General Meeting 2009 Ronald N. Stern, Chairman May 5, 2010 TSX: FP.UN
Slide 4: Forward-Looking Statements
FP Newspapers Income Fund FORWARD-LOOKING STATEMENTS: Certain statements in this presentation are ‘‘forward- looking statements’’ which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, FP Trust or FPLP to be
Slide 5: Contents
Contents: ● Summary ● Approach ● Year in Review ● Q1 Review ● Outlook FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 5 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 6: Summary
Summary: • FP.UN holds 49% of FPLP • IPO May 2002. • 6.9 million Units issued • Cumulative distributions from inception of $9.68/unit (to March 31, 2010). Operations: • 2 daily newspapers • 8 community and specialty • Distribution and websites FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 6
Slide 7: Approach
Approach • We focus on providing high-quality content across several platforms to inform and entertain our readers – Expand our audience and grow our reach through existing and new channels – Translates to superior readership and circulation, driving advertising revenue – Respect our heritage and le
Slide 8: 2009 Year in Review
2009 Year in Review FP Canadian Newspapers • Revenue lower by 6.0% to $113.9 million. – Lower ad revenues due to economic slowdown was largest factor. • EBITDA decreased $0.6 million or 2.5%. – For 11 months excluding October and excluding restructuring charges in both periods, EBITDA decreased $3.4
Slide 9: 2009 Year in Review
2009 Year in Review • Wally Lytwyn appointed director of sales for Canstar. • Aaron Newnham appointed sales manager for Winnipeg Free Press. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 9 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 10: 2009 Year in Review - Winnipeg Free Press
2009 Year in Review Winnipeg Free Press • Free Press given the Award for Excellence in Journalism by the Canadian Journalism Foundation. • Website use rises by 30% (13 million page views surpassed in March 2010). • Quantum rolled out to provide self-serve advertising for businesses, starting with Ho
Slide 11: 2009 Year in Review - Winnipeg Free Press
2009 Year in Review Winnipeg Free Press • Free Press eliminates Sunday delivery; consolidates with improved Weekend Edition and starts On7, a Sunday single-copy tabloid. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 11 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 12: 2009 Year in Review
2009 Year in Review • New WFP website launched in January 2010. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 12 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 13: Quality Content
Quality Content • Free Press series of tuberculosis uncovered a serious health threat. • Reporter Jen Skerritt’s work was recognized by the Canadian Medical Association and the Canadian Nurses Association. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 13 ANNUAL MEETING 2009 ANNUAL MEETING 2
Slide 14: Global events; local angles
Global events; local angles • Free Press journalists brought readers the unique local stories from the Vancouver Olympics. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 14 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 15: Public Service
Public Service • Series on Manitoba child welfare system given Michener citation of merit for public service journalism. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 15 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 16: Partnerships
Partnerships • Free Press given 2 grants of $20,000 from the Canadian Institutes of Health Research to study FASD and water supplies on First Nations. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 16 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 17: New Ideas
New Ideas • Twitter used from hockey games, city council. • Live coverage of events such as Blue Bombers news conferences. • Web cam provided continual coverage of spring flooding. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 17 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 18: 2009 Year in Review
2009 Year in Review • Sun solidified position as dominant media market leader after closure of CKX television in Brandon. • Contract to print Globe and Mail for Manitoba and Saskatchewan will expire in September. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 18 ANNUAL MEETING 2009 ANNUAL ME
Slide 19: 2009 Year in Review
2009 Year in Review • New website launched in April 2010. • Sun to be media sponsor of Memorial Cup in Brandon. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 19 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 20: 2009 Year in Review
2009 Year in Review • Seven day average circulation was 15,175 at December 31, 2009. • Average daily increase of 819 or 5.7%. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 20 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 21: 2009 Year in Review
2009 Year in Review • Started new community paper – The Sou’wester – to better serve Winnipeg neighbourhoods. • Focused coverage on neighbourhoods within geographic areas served by the papers. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 21 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 22: 2009 Year in Review
2009 Year in Review • Received seven editorial awards from the MCNA. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 22 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 23: 2009 Year in Review
2009 Year in Review Added community sports coverage. Kids' hockey and ringette standings and statistics run every second week. Bi-weekly news and people column called Toast & Coffee, featuring two well-known local sportsmen, Kent Morgan and Dutch Holland. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C
Slide 24: 2009 Year in Review - FPLP financials
2009 Year in Review FP Canadian Newspapers Limited Partnership (in millions of dollars) 2009 2008* 2007 2006 Revenue $113.9 $121.1(1) $125.9 $122.2 EBITDA $22.4 $23.0(1) $28.5 $25.5 Distributable cash $1.30 $1.19 $1.61 $1.43 per unit Distributions declared $1.14 $1.25 $1.29 $1.29 per unit * 2008 res
Slide 25: Q1 – 2010 Review
Q1 – 2010 Review FP Canadian Newspapers Limited Partnership • Display revenue growth of 4.4% – Last quarter to show year-over-year growth was Q3 2008. • Overall ad revenue declines 2.5% – Weakening classified and insert revenue. • EBITDA increases 74%, 46% excluding restructuring charge in Q1 2009 –
Slide 26: Q1 – 2010 Review
Q1 – 2010 Review FP Canadian Newspapers Limited Partnership (in millions of dollars) 2010 2009(1) Revenue -1.7% $26.4 $26.8 EBITDA 73.8% $ 5.5 $ 3.2 EBITDA Margin 21.0% 11.8% (1) 2009 EBITDA and EBITDA margin include restructuring costs of $0.6 million for voluntary and involuntary employee reductio
Slide 27: Q1 2010 Review
Q1 2010 Review • HSBC Credit Facility completed to refinance $60 million of notes due in June 2010. Current all-in cost is 3.7% versus Prudential fixed rate of 5.2%. • Debt being reduced by $5 million annually as part of refinancing of long-term debt with HSBC. • Effective January 2010 distributions
Slide 28: F FP P NEWSPAPERS N E W S P A P E R S
FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 28 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 29: F FP P NEWSPAPERS N E W S P A P E R S
FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 29 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 30: F FP P NEWSPAPERS N E W S P A P E R S
FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 30 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 31: Q1 – 2010 Review
Q1 – 2010 Review Last Period from Twelve May 28, 2002 (in thousands of dollars) Months to Mar. 31, 2010 49% of distributable cash of FPLP $10,057 $75,970 Administrative expenses (284) (2,150) Interest Income 2 52 $9,775 $73,872 Distributable cash attributable to the Fund – per unit $1.416 $10.702 Di
Slide 32: Q1 – 2010 Review
Q1 – 2010 Review • Gerald Flood revisits eastern Europe, 20 years after the fall of the Berlin Wall. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 32 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 33: Q1 – 2010 Review
Q1 – 2010 Review • Tania Kohut hired as first video journalist for Free Press. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 33 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 34: Q1 – 2010 Review
Q1 – 2010 Review • Launch of online tee-time booking from Free Press golf page. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 34 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 35: Q1 2010 Operations
Q1 2010 Operations • Frank Teskey assisting with transition of Brandon Sun to printing in Winnipeg. • Dave Brolhorst finalizing plans to expand capacity of mailroom. • Zouhaire Sekkat engaged to develop digital strategy. FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 35 ANNUAL MEETING 2009 A
Slide 36: Advertising Outlook
Advertising Outlook • Automotive will still be key to our success although spending won’t be quite so robust as Q1. • Toyota will be a key part of this segment as they reposition themselves. • Grocery advertising should be up as the key players reposition flyer delivery dates and push for market sha
Slide 37: Expense and Capital Outlook
Expense and Capital Outlook • Compensation cost savings from restructuring – expected to be 2% - 4% lower in 2010. • Newsprint price increases implemented in Q2. This would result in a full year decrease of 13% if no further increases occur. • Delivery costs forecasted to be 5% to 10% lower in 2010
Slide 38: F FP P NEWSPAPERS N E W S P A P E R S
FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 38 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 39: F FP P NEWSPAPERS N E W S P A P E R S
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Slide 40: F FP P NEWSPAPERS N E W S P A P E R S
FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 40 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 41: F FP P NEWSPAPERS N E W S P A P E R S
FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 41 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 42: F FP P NEWSPAPERS N E W S P A P E R S
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Slide 43: In Memoriam
In Memoriam • Bev Buckingham, Customer Service • Warren Remple, Advertising • Cynthia Winkler, Advertising • Jon Thordarson, Editorial • Jeff Kerr, Delivery • Millard Haluk, Delivery FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND 43 ANNUAL MEETING 2009 ANNUAL MEETING 2008
Slide 44: F FP P NEWSPAPERS N E W S P A P E R S
FFPP NEWSPAPERS NEWSPAPERS IINCOME N C O M FUND E FUND ANNUAL MEETING 2009 ANNUAL MEETING 2008
FP Newspapers Income Fund — Shareholder Meeting (May 2010) on 6ix