Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Nexstar Broadcasting Group — J.P. Morgan Global High Yield & Leveraged Finance Conference 2012
28 slides from Nexstar Media's conference presentation, Feb 28, 2012
Slide 1: Global High Yield & Leveraged Finance Conference
NXST: Nasdaq Tom Carter – Chief Financial Officer Global High Yield & Leveraged J.P.Morgan Finance Conference February 28, 2012
Slide 2: Safe Harbor
Safe Harbor In addition to historical facts or statements of current conditions, this presentation contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company’
Slide 3: Expanding Revenue Mix: Platform for Strong 2012 Growth
Expanding Revenue Mix : Platform for Strong 2012 Growth Leveraging Localism and Diversifying Business Mix Extensive Geographic Reach with Regional Focus Duopolies Drive Operating Performance Robust Retransmission Revenue Growth Strong Online Presence: New Digital/Mobile/Social Media Opport
Slide 4: Leveraging Localism/Driving Diversification
Leveraging Localism/Driving Diversification Diversified Top 20 TV Group With Leading Local Franchises Own, operate or provide services to 66 stations in 32 markets 20 duopolies / 32 markets = 62% of station portfolio Reach ~9.3% of USTVHH #1 or #2 market revenue share ranking in 75% of Nex
Slide 5: 2011 Highlights
2011 Highlights Retransmission Agreements Renewal of 100+ retransmission consent agreements No significant service interruptions New “3.0” economics in agreements with two of Nexstar’s top 5 MVPD partners Affiliation Agreements Renewed all 8 remaining Fox affiliations through 12/13 Ren
Slide 6: Expanding and Diversifying Revenue Mix
Expanding and Diversifying Revenue Mix 2006 Revenue Mix 2010 Revenue Mix Political Political National 9% National 11% 23% 17% Retrans Retrans 10% 3% Other 9% Other Local/ 10% Local/ New Regional Regional Media 54% New 48% 2% Media 4% Total 2006 Revenue of $265.1 mm Total 2010 Revenue of $313.4 mm No
Slide 7: Broad Geographic Reach: Local Community Focus
Broad Geographic Reach : Local Community Focus LSA Indicates stations where Nexstar has local service agreements Alabama with other station owners. Texas Dothan, AL (169) Amarillo, TX (131) WDHN (ABC) (O&O) KAMR (NBC) (O&O) KCIT (FOX) (LSA) KCPN-LP (MyNetworkTV) (LSA) Arkansas Beaumont-Port Arthur,
Slide 8: Leveraging Localism
Leveraging Localism Five-tiered high margin revenue stream business model effectively exploiting local opportunity TELEVISION Focus on creating highly recognizable local brands (ON-AIR) High quality local/news programming Local news rank among top 2 in approximately two-thirds of markets E-M
Slide 9: Duopolies Drive Operating Performance
Duopolies Drive Operating Performance Duopolies in 20 of 32 markets Primarily combinations of two "Big Four" affiliates Drives higher market share and greater margins through: Providing programming from multiple networks with different targeted demographics Increasing revenue market share
Slide 10: 2011 Accretive/De-Leveraging Transactions
2011 Accretive/De-Leveraging Transactions Acquisition of GoLocal.biz an Internet technology provider and marketing services company offering targeted online local business listings Creates new revenue stream and complements current e-Media operations GoLocal.biz platform will expand distributi
Slide 11: Strengthening Core Advertising Trends
Strengthening Core Advertising Trends While restaurant and furniture advertising remained sluggish, Nexstar’s auto advertising revenue continues to rebound from a difficult macro-economy Top 10 Advertising Categories Core Advertising Spending Growth Rank Category 2010 vs. 2009 YTD 2011 vs. YTD 201
Slide 12: Strengthening Auto Advertising Rebound
Strengthening Auto Advertising Rebound Local and national auto advertising rebound remains unabated Represents 20% of NXST’s total core revenues 2011 auto sales of ~12.8 million units up ~10% vs. 2010 following 11.5% growth in 2010 vs. 2009 6% increase in category spending (YTD year-over-yea
Slide 13: Nexstar Quarterly Auto Ad Revenue
Strengthening Auto Advertising Rebound Nexstar Quarterly Auto Ad Revenue $16.0 $14.4 $14.2 $14.0 $13.2 $13.0 $12.1 $12.1 $12.1 $12.0 $11.2 $11.3 $11.6 $11.5 $11.0 ($ in millions) $10.0 $8.8 $8.2 $7.9 $8.0 $6.0 $4.0 $2.0 $- 12 12
Slide 14: High Visibility Retransmission Revenue
High Visibility Retransmission Revenue Retransmission Revenue: YTD CAGR of 32.9% (2007 – 2011) Nexstar led industry in securing retransmission consideration beginning in 2005 Q3’11 retransmission consent fee revenues were $9.9 million, +30.5% Y/Y Progress in round three retrans negotiations:
Slide 15: Quarters of e-Media Revenue Growth
19 Quarters of e-Media Revenue Growth e-Media Revenue : YTD CAGR of 43.9% (2007-2011) Nexstar e-Media Revenue e-Media initiatives expand ability to create new $16.0 Full Year and diverse revenue streams, resulting in a $13.9 double digit growth independent business $14.0 CAGR: 39.7% $11.7 ($ in mi
Slide 16: Mobile Media Applications
Mobile Media Applications Growth in Mobile Media Views Nexstar’s Monthly Mobile Page Views Launched in 2010 (# in millions) 25 Puts local content on every web-enabled mobile handset and delivers mobile video 20 High user response to on-demand local news, 15 sports, entertainment, video, weathe
Slide 17: Growth in Political and Issue Advertising
Growth in Political and Issue Advertising Consistently Strong Revenue Growth from Political and Issue Advertising Nexstar Political Revenue – Nine Months Ending Sept 30 EVEN YEARS ODD YEARS $18.0 $16.7 $6.0 $16.0 $4.9 $13.4 $5.0 $14.0 $12.0 $4.0 $10.3 $10.0 $3.0 $2.5 $8.0 $2.3 $6.0 $2.0 $4.0 $1.0 $2
Slide 18: Managed Services Expertise and Opportunity
Managed Services Expertise and Opportunity Four Points Media Group MSA Managed station operations of Cerberus' Four Points Media Group Endorsement of Nexstar's operational and management capabilities Leveraged vendor agreements across a broader platform Excellent complement to existing stati
Slide 19: Financial Overview
Nexstar” BROADCASTING GROUP, INC Financial Overview
Slide 20: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Core Revenues $350.0 Local Revenues National Revenues $313.3 $300.0 $300.0 $284.9 $249.8 $266.8 $250.0 $237.7 $235.9 $252.0 $250.0 $212.5 $200.0 $200.0 $150.0 $175.5 $171.6 $157.4 $173.9 $150.0 $100.0 $100.0 $50.0 $50.0 $74.3 $66.1 $55.1 $
Slide 21: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Adjusted EBITDA(1) FY Free Cash Flow(2) $120.0 $112.3 $70.0 $59.7 $96.2 $60.0 $100.0 $85.1 $50.0 $80.0 $63.2 $40.0 $60.0 $28.0 $30.0 $26.3 $40.0 32% 34% 25% 36% $19.9 $20.0 $20.0 $10.0 $0.0 $0.0 2007A 2008A 2009A 2010A 2007A 2008A 2009A 2010A YTD Adjuste
Slide 22: Record Q3 Revenue and Strong Odd Year C/F
Record Q3 Revenue and Strong Odd Year C/F Growth in All Core Revenue Categories, e-Media and Retransmission Fees Three Months Ended Sept 30 Nine Months Ended Sept 30 ($ in Millions) 2011 2010 ∆ 2011 2010 ∆ Local Revenues $ 43,343 $ 41,705 +3.9% $ 132,266 $ 126,760 +4.3% National Revenues $ 16,302 $
Slide 23: Debt Structure
Debt Structure Successfully Addressed Most Expensive Pieces of Capital Structure ($ in millions) 9/30/11 6/30/11 3/31/11 12/31/10 12/31/09 Revolving Credit $ 6.8 - - - - First Lien Term Loan $ 148.5 $ 148.9 $ 99.2 $ 99.5 $ 321.7 8.875% Senior Second Lien Notes due 2017 $ 318.1 $ 317.9 $ 317.7 $ 317.
Slide 24: 2011 De-Leveraging
2011 De-Leveraging Continue to actively de-leverage the balance sheet in 1H 2011, successfully eliminating all of the most expensive pieces of the Company’s capital structure: Expanded Term-Loan B credit facility by $50 mm to $149.5 mm Used proceeds to redeem remaining $33.2 mm of the 11 3/8%
Slide 25: Growing Two Year FCF Cycle
Growing Two Year FCF Cycle (FY) Growing Free Cash Flow Driving Leverage Reduction NXST Free Cash Flow Based on two year cycles FY FCF: 37.0% CAGR from 2003 – 2010 YTD FCF: 21.5% CAGR from 2004 – 2011 $90.0 $79.6 $80.0 $70.0 ($ in millions) ($ in millions) $60.0 $54.3 $50.0 $41.8 $40.0 $30.9 $30.0 $2
Slide 26: Revenue Growth + Expense Discipline
Revenue Growth + Expense Discipline Core and Auto Growth Continues and Double Digit Growth of Non-core Revenue Channels Positive local and national ad pacings continuing Targeting mid-single digit core revenue growth in FY’11 Pacing to achieve record “odd year” financial results in 2011 Re
Slide 27: Investment Summary
Investment Summary Diversified Mid-market Consolidator Leveraging Localism Building new high growth/high margin and recurring revenue streams Strong cash flow model and operating leverage based on expense management discipline Duopoly Structure and Local News and Programming Leadership Suppo
Slide 28: Global High Yield & Leveraged Finance Conference
NXST: Nasdaq Tom Carter – Chief Financial Officer Global High Yield & Leveraged J.P.Morgan Finance Conference February 28, 2012