Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Deutsche Bank 26th Annual Media & Telecom Conference (March 2018)
23 slides from Nexstar Media's conference presentation, March 2018
Slide 1: Nexstar Media Group, Inc. Deutsche Bank 26th Annual Media & Telecom Conference
NXST: NASDAQ Nexstar Media Group, Inc. Deutsche Bank 26th Annual Media & Telecom Conference Perry Sook, President & CEO Tom Carter, EVP & CFO MARCH 2018
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This communication 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: Nexstar Media Group, Inc. (Nasdaq: NXST)
Nexstar Media Group, Inc. (Nasdaq: NXST) One of the Largest North American Local Media Companies Positioned for the Ongoing Enhancement of Long-Term Shareholder Value • Pure-play broadcast television and digital media leader with broad geographic scale and reach – #2 in broadcast group in terms of U
Slide 4: 2017: Record Financial Results For Sixth Consecutive Year
2017: Record Financial Results For Sixth Consecutive Year NXST Generated Record Financial Results For Sixth Consecutive Year • Surpassed $2.0 bn in annual net revenues for the first time in the Company’s history NXST LTM 2017 Financial Results Y/Y and Non-Political Odd-Year Comparison 3M Ended Dec.
Slide 5: Key 2017 Events: MEG Integration and NXST Operating
Key 2017 Events: MEG Integration and NXST Operating • Completed transformative acquisition of MEG for $4.6 bn creating Nexstar Media Group, Inc, and simultaneously completed 13 station required station divestitures for $548 mm • Realized all of the $81 mm projected year one synergies from the Media
Slide 6: Key 2017 Events: Financial and Capital Allocation / Structure
Key 2017 Events: Financial and Capital Allocation / Structure Financial Results for 4Q17 and FY17 • Record 4Q and LTM net revenue led to record broadcast cash flow, adjusted EBITDA and free cash flow growth • Despite a $45.3 mm Y/Y decline in 4Q17 political, television advertising revenue growth (co
Slide 7: Key 2018 Events: NXST Operating / Capital Allocation
Key 2018 Events: NXST Operating / Capital Allocation • Completed accretive acquisition of LKQD, a leading video ad infrastructure company, for ~$90 million cash in Jan. 2018 – Purchase price subject to working capital and other adjustments including a minimum cash balance of $10 mm, and a contingent
Slide 8: One of the Largest North American Local Media Companies
One of the Largest North American Local Media Companies 170 Local TV Stations 40 U.S. States 100 U.S. Markets 26% Household Reach* Growing Digital Business Note: Inclusive of UHF discount. 8
Slide 9: Leading Pure-Play Broadcast Operator
Leading Pure-Play Broadcast Operator Financial Strength and Flexibility to Pursue Additional Select Accretive Acquisitions % of U.S. Television Households Reached Household Reach Excluding UHF Discount 72% Household Reach Including UHF Discount 39% 38% 37% 36% 39% FCC Cap on National TV Ownership 31
Slide 10: Expanded Geographic Reach and Increased Scale
Expanded Geographic Reach and Increased Scale 170 Local Television Stations across 100 markets in 40 U.S. States 10
Slide 11: Nexstar Broadcasting, Inc.
Nexstar Broadcasting, Inc. Superior Locally Produced Content and Network Programming for Viewers; Unrivaled Consumer Reach / Influence for Local Businesses and Advertisers • Leading local broadcast television operator – #2 broadcast group in terms of U.S. television household reach of 26%* • Financi
Slide 12: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals Premium, Professionally-Produced Content With Unmatched Reach And Viewership Share Share of Total TV Viewing Time Live TV and DVR Time Split by Genre Live TV and OTT Time Split Among HHs with Both Services VOD DVR Live TV Live TV DVR +15 Days OTT Live TV 1.1% 0
Slide 13: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals Premium, Professionally-Produced Content With Unmatched Reach And Viewership Share Top 10 “Must Keep” TV Brands in US Among 18-34 Year Olds Total TV News Consumption by Demographic Weekly Time Spent In Local PMM 1. 6. Share of Viewing (%) (Total Min. Watching N
Slide 14: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising NXST Political Ad Revenue Growth NXST 2018 Political ($ millions) Senate and Gubernatorial Elections 2018 Senate Races (28) 2018 Gubernatorial Races (31) Even Year Odd Year NXST Market Incumbent Party NXST Market Incumbent Party Arizona Jeff Flake R Al
Slide 15: Growth in NXST Retransmission and Digital Media Revenue
Growth in NXST Retransmission and Digital Media Revenue Retransmission and Digital Media revenue is materially diversifying NXST’s total net revenue NXST Retransmission & Digital Media Revenue NXST Retransmission Revenue ($ millions) $995.8 (% of Total Net Revenue) Retransmission Revenue as a % of T
Slide 16: Nexstar Digital LLC
Nexstar Digital LLC Comprehensive Suite of Cross-platform Digital Marketing Products and Services for Local and National Media Companies, Advertisers, Agencies and Brands • Leading local digital advertising and content monetization solutions and services – Profitable / growing business segment with
Slide 17: High-Growth Digital Industry Trends
High-Growth Digital Industry Trends Creating Superior New Revenue Locally Opportunities Produced Content Through and Network Digital Innovations, ProgrammingProducts for Viewers; and Services Local Advertising Share by Type: 2016-2021 Growth in Digital Media Time Spent in Minutes (MM) Print Media Ot
Slide 18: Significant FCF Growth
Significant FCF Growth NXST Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) 2 + $600.0 1 $390.8 $184.0 $82.7 $47.2 2010/2011 2012/2013 2014/2015 2016/2017 2018/2019E 1 Reported average annual free cash flow before transaction expenses in the twenty-four month perio
Slide 19: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Core Revenues $2,432 $1,270 $914 $1,103 $523 $532 $896 $631 $349 $389 $502 $238 $213 $236 $247 $266 $369 $388 $285 $252 $313 $306 $379 $265 $279 $172 $157 $174 $182 $190 $357 $66 $55 $62 $66 $76 $113 $110 $154 $144 2008A 2009A 2010A 2011A
Slide 20: 4Q17 and FY17 Financial Summary
4Q17 and FY17 Financial Summary Three Months Ended Dec. 31, 2017 12-Months Ended Dec. 31, 2017 ($ in thousands) 2017 2016 Change 2017 2016 Change Local Revenue $ 249,135 $ 101,930 +144.4 % $ 913,571 $ 388,183 +135.3 % National Revenue $ 98,291 $ 36,160 +171.8 % $ 356,633 $ 144,009 +147.6 % Core Adve
Slide 21: Debt/Leverage Analysis
Debt/Leverage Analysis MEG 4Q17 TTM ENDED Closing (in millions) 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 01/17/17 12/31/17 Revolver $ 24.3 $ - $ - $ 5.5 $ 2.0 $ 2.0 $ 3.0 $ 3.0 First Lien Term Loans 148.1 288.3 545.4 705.1 682.2 662.2 3,120.0 2,791.9 8.875% Sr. Sec 2nd Lien Notes 318.4
Slide 22: Transformational M&A and Operating Strategies Driving Record FCF
Transformational M&A and Operating Strategies Driving Record FCF • Continued growth of non-core revenue channels – Political: Even-year CAGR of 35% (2008-2016), odd-year CAGR of 26% (2009-2015) • NXST Political revenue exceeded ~$100 mm guidance in 2016 by 8.5% – Retransmission: Contract renewals fo
Slide 23: Nexstar Media Group, Inc. Deutsche Bank 26th Annual Media & Telecom Conference
NXST: NASDAQ Nexstar Media Group, Inc. Deutsche Bank 26th Annual Media & Telecom Conference Perry Sook, President & CEO Tom Carter, EVP & CFO MARCH 2018
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