Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Deutsche Bank 27th Annual Media & Telecom Conference 2019
28 slides from Nexstar Media's conference presentation, March 2019
Slide 1: Nexstar Media Group, Deutsche Bank 27th Annual Media & Telecom Conference
NXST: NASDAQ Nexstar Media Group, Inc. Deutsche Bank 27th Annual Media & Telecom Conference Tom Carter, EVP & CFO MARCH 2019
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 North America’s Largest 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.S.
Slide 4: 2018: Record Financial Results For Seventh Consecutive Year
2018: Record Financial Results For Seventh Consecutive Year NXST Generated Record 2018 Financial Results NXST 4Q18 and FY18 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) 2018 2017 2016 2018 20
Slide 5: 2018: Capital Allocation/Structure
2018: Capital Allocation/Structure NXST 2018 Capital Allocation CASH DIVIDEND: • Increased cash dividend 25% to $1.50 annually in 2018, marking fifth annual consecutive increase • 26% compound annual growth in payout level since initiation of cash dividend in 2013 SHARE REPURCHASES: • NXST repurchas
Slide 6: NXST Key 2018 Events
NXST Key 2018 Events • On Nov. 30, 2018, entered into definitive agreement to acquire Tribune Media (NYSE: TRCO) for $6.4 bn in accretive cash transaction, creating America’s leading local broadcast and media company1 – Compelling combination delivers immediate and long-term value to shareholders an
Slide 7: Nexstar Acquisition of Tribune Media
Nexstar Acquisition of Tribune Media SUBTITLE TEXT 7
Slide 8: Nexstar and Tribune: A Powerful Combination
Nexstar and Tribune: A Powerful Combination Leveraging the Value of Leading Local Media Assets, Scale, Diversification and Management Creates leading pure-play broadcast television and digital media company – One of the nation’s largest providers of local news, sports and network programming and d
Slide 9: Nexstar and Tribune: America's Leading Local Broadcast and Media Company
Nexstar and Tribune: America’s Leading Local Broadcast and Media Company #1 local broadcast group in terms of US TV household reach % of U.S. Television Households Reached, Inclusive of UHF Discount 39% 39% FCC Cap on National TV Ownership1 27% 25% 25% 24% 21% 20% 17% 13% 12% 7% 6% 4% ______________
Slide 10: Significantly Increases Geographic Diversification and Scale
Significantly Increases Geographic Diversification and Scale Pro Forma: 216 Television Stations in 118 markets across 43 US States1 #1 local broadcast TV station group and one of the largest producers and distributors of local news, lifestyle, sports and network programming 85 Unique 18 Unique 15 Ov
Slide 11: Strong Combined Company Financial Profile
Strong Combined Company Financial Profile 2017/2018 Net Revenues ($ millions) $4,585 $2,887 $2,054 $2,049 $1,029 NXST PF SBGI TGNA GTN (3) SSP + (1) 2017/2018 Adj. EBITDA ($ millions) $1,670 $840 $783 $722 $177 NXST PF SBGI TGNA GTN (3) SSP + (1)(2) ____________________ Source: Company filings and W
Slide 12: Nexstar Stand-Alone Business Fundamentals
Nexstar Stand-Alone Business Fundamentals SUBTITLE TEXT 12
Slide 13: One of the Largest North American Local Media Companies
One of the Largest North American Local Media Companies 174 Local TV Stations 40 U.S. States 100 U.S. Markets 26% Household Reach* Growing Digital Business Note: Inclusive of UHF discount. 13
Slide 14: Expanded Geographic Reach and Increased Scale
Expanded Geographic Reach and Increased Scale 174 Local Television Stations across 100 markets in 40 U.S. States 14
Slide 15: Nexstar Broadcasting, Inc.
Nexstar Broadcasting, Inc. Superior Locally Produced Content and Network Programming for Viewers; Unrivaled Consumer Reach / Influence for Local Businesses and Advertisers • Leading local broadcast television operator – #2 broadcast group in terms of U.S. television household reach of 26%* • Financi
Slide 16: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals 1. Proven Business Model with High Barriers to Entry U.S. Pay TV Subscriber Growth (% Chg. Y/Y) 5.0% vMVPD excluded vMVPD included • The pay TV subscriber model with traditional MVPDs (cable/satellite) and virtual MVPDs (internet) remains relatively stable 3.0%
Slide 17: Strong Broadcast Industry Fundamentals
Strong Broadcast Industry Fundamentals 4. Greatest Share of Consumers’ Time Spent Daily Time Spent with Media Among American Adults (HH:MM) 1Q18 3Q17 Change • Traditional TV has proven to be resilient, maintaining its central position in America’s households in an era of media industry disruption Vi
Slide 18: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising CMAG: Political Spot TV Ad Revenue Growth CMAG: 2018 Political Spot TV Ad Revenue ($ millions) (Top 15 States, % Share of Total Spend) Presidential Election Year Mid-term Election Year # State Ad Spend ($ mil.) Share (%) 1. California $480.7mm 16.1% $3.
Slide 19: Growth in NXST Political and Issue Advertising
Growth in NXST Political and Issue Advertising Local TV Political Ad Spend Trends What To Expect NXST 2019 / 2020 Political Going Forward Senate and Gubernatorial Elections 2020 Senate Races 2020 Gubernatorial Races (34 Total Races; 24 NXST Markets) (11 Total Races; 9 NXST Markets) Market Incumbent
Slide 20: Growth in NXST Retransmission and Digital Media Revenue
Growth in NXST Retransmission and Digital Media Revenue Retransmission and Digital Media revenue is materially diversifying NXST’s total net revenue NXST Retransmission & Digital Media Revenue NXST Retransmission Revenue (% of Total Net Revenue) ($ millions) Retransmission Revenue as a % of Total Ne
Slide 21: 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 22: Nexstar Financials and Leverage
Nexstar Financials and Leverage SUBTITLE TEXT 22
Slide 23: Significant FCF Growth
Significant FCF Growth NXST Average Annual Free Cash Flow Growth (FY) Based on Two-Year Cycles ($ in millions) $615.0 2 $390.8 1 $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 period
Slide 24: Historical Financial Summary (in millions)
Historical Financial Summary (in millions) FY Net Revenue FY Broadcast Cash Flow(1) $1,124 $2,767 $2,432 $869 $914 $1,103 $457 $896 $350 $631 $270 $369 $388 $502 $171 $193 $285 $252 $313 $306 $379 $172 $132 $82 $174 $116 $112 $157 $182 $190 $265 $279 39% 32% 42% 38% 45% 38% 43% 39% 41% 36% 41% 2008
Slide 25: 4Q18 and FY18 Financial Summary
4Q18 and FY18 Financial Summary Three Months Ended December 31 Twelve Months Ended December 31 ($ in thousands) 2018 2017 Change 2018 2017 Change Local Revenue $ 216,458 $ 219,714 (1.5 )% $ 797,709 $ 805,360 (1.0 )% National Revenue $ 81,910 $ 83,396 (1.8 )% $ 292,211 $ 302,657 (3.5 )% Political Rev
Slide 26: 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 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 8.875% Sr. Sec 2nd Lien Notes 318.4 319.4 - - - - - -
Slide 27: 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: FY18 same-station political revenue was 50% higher than FY14 and 38% higher than FY16 • NXST political revenue exceeded guidance – Retransmission: Contract
Slide 28: Nexstar Media Group, Deutsche Bank 27th Annual Media & Telecom Conference
NXST: NASDAQ Nexstar Media Group, Inc. Deutsche Bank 27th Annual Media & Telecom Conference Tom Carter, EVP & CFO MARCH 2019
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