Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Deutsche Bank 28th Annual Media & Telecom Conference 2020
20 slides from Nexstar Media's conference presentation, March 2020
Slide 1: Nexstar Media Group, Inc. Deutsche Bank 28th Annual Media & Telecom Conference
Nexstar Media Group, Inc. Deutsche Bank 28th Annual Media & Telecom Conference Perry A. Sook, Founder, Chairman, President & CEO Tom Carter, Executive Vice President & CFO MARCH 2020
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 457 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 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 254,000 Hours of Local Content Annually ~8
Slide 8: Valuable Interests in Prominent Cable and Radio Assets
Valuable Interests in Prominent Cable and Radio Assets OWNERSHIP 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 4Q Ended Dec. 31 FY Ended Dec. 31 3M Change (%) 12M Change (%) (in millions) (in millions) 2
Slide 11: 2019 and Early 2020 Highlights: Business and Capital Allocation
2019 and Early 2020 Highlights: Business and Capital Allocation • 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, NXS
Slide 12: 2019 and Early 2020 Highlights: Capital Structure and Leverage Reduction
2019 and Early 2020 Highlights: Capital Structure and Leverage Reduction • In 4Q19, NXST furthered lowered its cost of capital and extended maturities by completing the offering of an additional $665 mm of 5.625% senior notes due 2027, which were issued with the same terms as its existing $1,120 mm
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 Data 2015 2016 2017 2018 2019
Slide 14: 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 $3.2
Slide 15: Significant Pro Forma FCF Growth
Significant Pro Forma FCF Growth NXST Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) REPORTED ESTIMATED 3 $1,175.0 2 $606.8 1 $390.8 $184.0 $47.2 $82.7 2010/2011 2012/2013 2014/2015 2016/2017 2018/2019 2020/2021 1 Reported average annual free cash flow before tran
Slide 16: 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 ~$400mm – Retransmission: Contract renewals
Slide 17: Summary 4Q and FY2019 Results
Summary 4Q and FY2019 Results Summary 2019 Fourth Quarter and Full Year Highlights Three Months Ended Twelve Months Ended December 31, December 31, ($ in thousands) 2019 2018 Change 2019 2018 Change Core advertising revenue $525,458 $298,368 +76.1% $1,335,126 $1,089,920 +22.5% Political revenue $36,
Slide 18: 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 19: Debt / Leverage Analysis
Debt / Leverage Analysis TTM 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 12/31/19 Revolver $ 24.3 $ - $ - $ 5.5 $ 2.0 $ 2.0 $ 3.0 $ 5.6 $ - First Lien Term Loans 148.1 288.3 545.4 705.1 682.2 662.2 2,791.9 2,407.5 5,860.4 8.875% Sr. Sec 2nd Lien Notes
Slide 20: Nexstar Media Group, Inc. Deutsche Bank 28th Annual Media & Telecom Conference
Nexstar Media Group, Inc. Deutsche Bank 28th Annual Media & Telecom Conference Perry A. Sook, Founder, Chairman, President & CEO Tom Carter, Executive Vice President & CFO MARCH 2020
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