Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — DB Conference 2022
21 slides from Nexstar Media's conference presentation, Mar 14, 2022
Slide 1: Investor Presentation
Nexstar Media Group, Inc. Investor Presentation March 2022 Perry A. Sook, Founder, Chairman & CEO Tom Carter, President & COO Lee Ann Gliha, EVP & CFO
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
Slide 3: Our Mission, Our Scale, Our Leadership
Our Mission • Producing and distributing popular news, sports and entertainment content that engages our audience Our Scale • We are nearing $5BN of annual revenue and expect to generate $1.4BN of average annual free cash flow for the 2022/2023 cycle, which puts us in a category of our own • Our sca
Slide 4: We Are America's Largest Local Broadcasting Company
We Are America’s Largest Local Broadcasting Company Reach 12/31/21 LTM Revenue Composition Population: 212MM % of TV Households: 68% Digital / Other 8% Monthly Unique Visitors: 120MM+ Growing Political Advertising 1% Growing – 11% of Revenue in Financial Profile 2020 Election Year 12/31/21 LTM Reven
Slide 5: Track Record of Innovation and Growth
Track Record of Innovation and Growth Nexstar has led the industry in every major innovation in the business of local media. $5BN+ Revenue $2BN+ Revenue 2020’s+ Growth by leveraging $200MM scale, developing Revenue Mid-Late 2010’s spectrum assets and Aggressive, organic and <$100MM inorganic initiat
Slide 6: Scale Matters
Scale Matters Our scale enables us to monetize our assets in new ways that will be material to our bottom line. • Important content distribution partner to Largest Independent Broadcast Group Top 10 Digital networks and MVPDs News & Information Property 12/31/21 LTM Broadcast Revenue ($ in millions)
Slide 7: Well Positioned Assets
Well Positioned Assets Local and National Largest Local Broadcast Audience News, Sports, Weather and Entertainment 68% of US Television Households 5,500 Journalists in 116 markets 212MM People 283,000 Hours of TV Content Produced Annually Network Sports, Entertainment and News Content Top 10 News &
Slide 8: Local News Content is Valuable
Local News Content is Valuable Viewership of Local News per Hour Has Been Stable… Average Number of TVs Tuning to News Programming During Each Time Slot for ABC, CBS, NBC & Fox Affiliates 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 2016 2017 2018 2019 2020 Morning news Midd
Slide 9: Nexstar's Fact-Based, Unbiased National News Network
Nexstar’s Fact-Based, Unbiased National News Network Leveraging our core competency in news, we are building a profitable and differentiated national news network. The Opportunity: First Class Programming Multi-Platform Strategy • News networks are the most watched cable networks vMVPD Distribution
Slide 10: Superior Return on Significant Annual Content Spend
Superior Return on Significant Annual Content Spend Nexstar spends almost $2BN per year on content (of which ~$0.5BN is on News), while generating a 40%+ Adjusted EBITDA Margin and Converting Over 60% of Adjusted EBITDA to Free Cash Flow. 2021E Content Spending ($ in billions) $25.0 $20.0 $15.0 $10.
Slide 11: Near and Long-Term Organic Growth Drivers
Near and Long-Term Organic Growth Drivers 1 Continue to Increase Retransmission Revenue • Broadcast share of retransmission revenue (24%) is still 2 Capitalize on Increased Political Advertising Spending Due to Polarized Political Environment • Political advertising historically has grown at a 40-60
Slide 12: Near and Long-Term Organic Growth Drivers (cont'd)
Near and Long-Term Organic Growth Drivers (cont’d) 3 Develop New Advertising Categories (e.g. Sports Betting) • Sportsbooks have spent heavily on local TV, the medium 4 Drive Digital Revenues • According to an October 2021 e-Marketer report, digital ad that has worked best for them, in markets as th
Slide 13: Near and Long-Term Organic Growth Drivers (cont'd)
Near and Long-Term Organic Growth Drivers (cont’d) 5 Monetize Underlying Spectrum • Nexstar is nearing full-utilization of its existing spectrum capacity Nexstar Leads the Way in NEXTGEN TV Deployment and conversion to NEXTGEN TV (e.g. ATSC 3.0) will increase revenue growth opportunities TV Househol
Slide 14: Accretive M&A Strategy
Accretive M&A Strategy Nexstar has a track record of creating shareholder value through M&A. Nexstar will continue to use its platform to make accretive acquisitions in its core business or new, complementary businesses where it can drive/protect revenue and generate synergies given its scale and st
Slide 15: Recent M&A Case Study
Recent M&A Case Study Acquisition Date: September 2021 Purchase Price: $130 million Independent, political digital media platform that generates revenue from direct and Business Description: programmatic advertising primarily via TheHill.com with 48 million monthly unique visitors Expands Nexstar’s
Slide 16: Large Scale M&A Has Historically Created Significant Value
Large Scale M&A Has Historically Created Significant Value Tribune Media Acquisition Case Study • Accretive acquisition • Stock price more than doubled Key Terms: from $78.20 prior to Acquisition Date September 20, 2019 announcement to today Transaction Value $7.2 billion • Increased FCF by more tha
Slide 17: Superior Financial Profile
Superior Financial Profile ($ in millions) Net Revenue Adjusted EBITDA • >50% of revenue is recurring and fixed Distribution Core Ad. Political Digital Other • High growth retransmission and digital Adjusted EBITDA revenue streams % Total % Margin Revenue 12/21 LTM Revenue $1,951.2 $1,896.7 • Stable
Slide 18: Consistent Financial Outperformance
Consistent Financial Outperformance Nexstar has a track record of beating consensus estimates. % Beat or Missed Consensus Beat Revenue Consensus in 19 of Last 24 Quarters 5.0% 4.6% 4.0% 3.4% 3.2% 2.8% 2.9% 2.6% 2.7% 3.0% 2.5% 2.5% 2.5% 2.0% 1.4% 1.2% 0.9% 0.9% 1.0% 0.5% 0.5% 0.6% 0.4% 0.3% - 0.0% Q1
Slide 19: Focus on Shareholder Returns
Focus on Shareholder Returns Nexstar balances current shareholder returns with long-term value enhancing investment opportunities. NXST Total Return Since 1/1/2013 • Founder, Chairman and CEO, Perry Sook, is a top holder of NXST equity Ranked as one of “The Top 10 Stocks of the Past Decade” - Kiplin
Slide 20: ESG Initiatives
ESG Initiatives Nexstar is committed to being a good steward of capital and resources and is focused on a variety of ESG initiatives. • Reduced energy consumption by: ‒ Installing lighting that registers a person’s presence in the room and ensuring our facilities are committed to recycling Environme
Slide 21: Invest in Nexstar
Invest in Nexstar • Nexstar is the largest local broadcasting company in America with an ~$8BN fully diluted equity value and ~$15BN total enterprise value • We are the largest company with top tier operational performance in the sector but trade at a high-teens 2022/2023 FCF Yield and just over 7x