FP Newspapers Inc. · TSXV:FP
FP Newspapers — FP Newspapers Income Fund — Shareholder Meeting (May 2009)
38 slides from FP Newspapers's shareholder meeting presentation, May 6, 2009
Slide 1: FP Newspapers Income Fund Annual General Meeting 2008
FP Newspapers Income Fund Annual General Meeting 2008 May 6, 2009 FP NEWSPAPERS TSX: FP.UN INCOME FUND ANNUAL MEETING 2008
Slide 2: Formal Meeting
Formal Meeting Annual General Meeting • Introduction • Quorum • Resolutions FP NEWSPAPERS INCOME FUND 2 ANNUAL MEETING 2008
Slide 3: Ronald N. Stern, Chairman
FP Newspapers Income Fund Annual General Meeting 2008 Ronald N. Stern, Chairman May 6, 2009 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 FP NEWSPAPERS INCOME FUND 5 ANNUAL MEETING 2008
Slide 6: Summary
Summary: • FP.UN holds 49% of FPLP. • IPO May 2002. • 6.9 million Units issued. • Distributions reduced from 10.75¢/month to 9.5¢/month. Operations: • 2 daily newspapers. • 7 community and specialty. • Distribution and websites. FP NEWSPAPERS INCOME FUND 6 ANNUAL MEETING 2008
Slide 7: Approach
Approach • We focus on providing high-quality content to inform and entertain our readers – Translates to superior readership and circulation, driving advertising revenue – Respect our heritage and leverage our audience – Long term outlook; prudent distribution policy – Investment discipline – seek
Slide 8: 2008 Year in Review
2008 Year in Review FP Canadian Newspapers • Revenue lower by 3.8% to $121.1 million. – Missed publishing days due to strike and economic slowdown in Q4 were major factors. • EBITDA decreased $5.5 million or 19% including strike impact and $0.4 million restructuring charge. FP NEWSPAPERS INCOME FUND
Slide 9: 2008 Year in Review
2008 Year in Review • Distributions reduced by 11.6% from 10.75¢/month to 9.5¢/month. – 105.6% pay-out ratio for 2008 and 91.6% since inception. FP NEWSPAPERS INCOME FUND 9 ANNUAL MEETING 2008
Slide 10: 2008 Year in Review
2008 Year in Review • Dave Brolhorst appointed VP of operations. • Julie Carl appointed deputy editor. FP NEWSPAPERS INCOME FUND 10 ANNUAL MEETING 2008
Slide 11: 2008 Year in Review: Winnipeg Free Press
2008 Year in Review Winnipeg Free Press • Free Press recognized nationally and internationally for its quality and innovation. • Website use rises by 32% (10 million page views surpassed in March 2009). • Autos website launched as prototype for new model of online-first classified ads. FP NEWSPAPERS
Slide 12: 2008 Year in Review
2008 Year in Review • Greatest Manitobans book launched at Fort Garry Hotel. Received a second place award from CNA Great Ideas contest and an INMA recognition for Online Usage & Engagement. (circ. 75,000-300,000) FP NEWSPAPERS INCOME FUND 12 ANNUAL MEETING 2008
Slide 13: 2008 Year in Review
2008 Year in Review • Pink Paper. Received INMA recognition for Public Relations and Community Service. (circ. 75,000- 300,000) FP NEWSPAPERS INCOME FUND 13 ANNUAL MEETING 2008
Slide 14: 2008 NNA Award
2008 NNA Award • Gord Sinclair won an NNA for column writing. FP NEWSPAPERS INCOME FUND 14 ANNUAL MEETING 2008
Slide 15: 2008 Year in Review: NNA Nominations
2008 Year in Review NNA Nominations Doug Speirs • Columns Randy Turner • Sports writing FP NEWSPAPERS INCOME FUND 15 ANNUAL MEETING 2008
Slide 16: 2008 Year in Review
2008 Year in Review • International Association of Firefighters 2008 media awards first place among newspapers. FP NEWSPAPERS INCOME FUND 16 ANNUAL MEETING 2008
Slide 17: 2008 Year in Review
2008 Year in Review • Jen Skerritt won $20,000 grant from the Canadian Institutes of Health Research to study infectious diseases in Manitoba. FP NEWSPAPERS INCOME FUND 17 ANNUAL MEETING 2008
Slide 18: 2008 Year in Review
2008 Year in Review • The agricultural sector was buoyed by good growing conditions and decent commodity prices. Cattle prices increased in the fourth quarter. • Oil exploration and the development of new fields south west of Brandon continued at near record levels. FP NEWSPAPERS INCOME FUND 18 ANNU
Slide 19: 2008 Year in Review
2008 Year in Review • Brandon is the regional hub for retail with two enclosed malls, downtown and a big box mall. Brandon is also the regional centre for healthcare and legal services. • The Sun posted strong year-on-year gains in advertising revenues. FP NEWSPAPERS INCOME FUND 19 ANNUAL MEETING 20
Slide 20: 2008 Year in Review
2008 Year in Review • Circulation units were down slightly year- on-year, but the Sun is among the best read papers in the country with 84% of adults having read the Sun last week. FP NEWSPAPERS INCOME FUND 20 ANNUAL MEETING 2008
Slide 21: 2008 Year in Review
2008 Year in Review • Moved operations to the Winnipeg Free Press building. • Began redeveloping community newspapers to be more representative of local neighbourhoods. • Coordinated distribution with Flyer Advantage. FP NEWSPAPERS INCOME FUND 21 ANNUAL MEETING 2008
Slide 22: 2008 Year in Review: FP Canadian Newspapers LP
2008 Year in Review FP Canadian Newspapers Limited Partnership (in millions of dollars) 2008* 2007 2006 2005 Revenue $121.1(1) $125.9 $122.2 $116.9 EBITDA $23.0(1) $28.5 $25.5 $24.1 (in dollars) Distributable cash $1.19 $1.61 $1.43 $1.35 per unit Distributions $1.25 $1.29 $1.29 $1.29 declared per un
Slide 23: Q1 – 2009 Review
Q1 – 2009 Review FP Canadian Newspapers Limited Partnership • Ad revenue declines 13% – Weakness in classified employment advertising and auto sector. • EBITDA declines 47% – Includes $600,000 restructuring charge for voluntary and involuntary employee reductions. FP NEWSPAPERS INCOME FUND 23 ANNUAL
Slide 24: Q1 – 2009 Review
Q1 – 2009 Review FP Canadian Newspapers Limited Partnership (in millions of dollars) 2009 2008 Revenue -10.7% $26.8 $30.0 EBITDA(1) -46.7% $ 3.2 $ 6.0 EBITDA(1) Margin 11.8% 20.1% (1) EBITDA and EBITDA margin include restructuring costs of $600,000 for voluntary and involuntary employee reductions i
Slide 25: Q1 – 2009 Review
Q1 – 2009 Review Last Period from Twelve May 28, 2002 (in thousands of dollars) Months to Mar. 31, 2009 49% of distributable cash of FPLP $7,268 $65,645 Administrative expenses (272) (1,866) Interest Income 11 50 $6,987 $64,097 Distributable cash attributable to the Fund – per unit $1.01 $9.286 Dist
Slide 26: Reduced Staff and Restructuring
Reduced Staff and Restructuring FP NEWSPAPERS INCOME FUND 26 ANNUAL MEETING 2008
Slide 27: Q1 – 2009 Review
Q1 – 2009 Review • Launch Homes website FP NEWSPAPERS INCOME FUND 27 ANNUAL MEETING 2008
Slide 28: Q1 – 2009 Review
Q1 – 2009 Review • Mobile Network News FP NEWSPAPERS INCOME FUND 28 ANNUAL MEETING 2008
Slide 29: Q1 – 2009 Review
Q1 – 2009 Review • Launch archives website. FP NEWSPAPERS INCOME FUND 29 ANNUAL MEETING 2008
Slide 30: Q1 – 2009 Review
Q1 – 2009 Review • Live webcam FP NEWSPAPERS INCOME FUND 30 ANNUAL MEETING 2008
Slide 31: Q1 2009 Operations
Q1 2009 Operations • Decrease in classified employment revenues. • Decreased display advertising in local and national automotive. • Lower employment advertising. • Operating expenses, excluding restructuring charge are down 3.8%, due to lower compensation costs. FP NEWSPAPERS INCOME FUND 31 ANNUAL
Slide 32: Total Average Circulation
Total Average Circulation Please Note: Audit Bureau of Circulations no longer audits the Winnipeg Sun. As of May 2008, the Winnipeg Sun is audited by the Canadian Circulation Audit Board. Winnipeg Free Press ABC Publisher's Statement for 6 Months Ended: March 31, 2009 March 31, 2008 Difference Weekd
Slide 33: Winnipeg Newspaper Readership Among University Graduates
Winnipeg Newspaper Readership Among University Graduates 61% 50% 45% 15% 9% 10% Weekday Saturday Sunday Winnipeg Free Press Winnipeg Sun Source: 2008 NADbank Study FP NEWSPAPERS INCOME FUND 33 ANNUAL MEETING 2008
Slide 34: Winnipeg Newspaper Readership Among Adults with Household Income $75,000+
Winnipeg Newspaper Readership Among Adults with Household Income $75,000+ 55% 44% 44% 20% 16% 15% Weekday Saturday Sunday Winnipeg Free Press Winnipeg Sun Source: 2008 NADbank Study FP NEWSPAPERS INCOME FUND 34 ANNUAL MEETING 2008
Slide 35: Weekly Readership of Daily Newspapers in Major Canadian Cities
Weekly Readership of Daily Newspapers in Major Canadian Cities Winnipeg Free Press 67% Hamilton Spectator 59% Edmonton Journal 54% Calgary Herald 52% Vancouver Province 44% Ottawa Citizen 44% Toronto Star 43% Vancouver Sun 42% Edmonton Sun 42% Winnipeg Sun 41% Calgary Sun 38% Toronto Sun 25% Ottawa
Slide 36: Advertising Outlook
Advertising Outlook • Winnipeg and Manitoba economies expected to fare better than national average. • Automotive category lower – national and local. • Classified employment continues to be weaker with less hiring activity in today’s climate. FP NEWSPAPERS INCOME FUND 36 ANNUAL MEETING 2008
Slide 37: Expense and Capital Outlook
Expense and Capital Outlook • Compensation cost savings from restructuring - $2.3 million. • Newsprint price decreases in Q2 would result in annual 3.0% price decline if no further price changes in 2009. • 2009 maintenance capital spending estimated at $1.5 million. • Continuing to work through equi
Slide 38: FP NEWSPAPERS
FP NEWSPAPERS INCOME FUND 38 ANNUAL MEETING 2008
FP Newspapers Income Fund — Shareholder Meeting (May 2009) on 6ix