Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Nexstar Broadcasting Group — The Benchmark Company One-on-One Investor Conference May 2013
25 slides from Nexstar Media's conference presentation, May 2013
Slide 1: NXST: Nasdaq
NXST: Nasdaq Perry Sook Chief Executive Officer Tom Carter Chief Financial Officer The Benchmark Company One-on-One Investor Conference May 2013
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: Investment Summary
Investment Summary Rapidly Growing Mid-market Consolidator Recent highly accretive, strategic acquisitions Strong cash flow model and operating leverage based on diversified revenue streams and expense management discipline Leveraging Localism Building new high growth/high margin and recur
Slide 4: Key Recent Operational Events
Key Recent Operational Events Record 2012 Financial Results Net revenue rose 23.5% to $379 million Broadcast cash flow grew 47.6% to $171 million Adjusted EBITDA increased 52.3% to $146 million Free cash flow up 135.5% to $80.5 million Highly accretive acquisition of 12 TV stations in 8
Slide 5: Key Recent Operational Events
Key Recent Operational Events Ongoing reduction in cost of capital Weighted average cost of debt reduced from approximately 7.4% to 6.6% in Q1’13 as new senior secured credit facilities were consummated concurrent with the closing of the first Newport acquisition Pro forma for the completion o
Slide 6: Leveraging Localism/Driving Diversification
Leveraging Localism/Driving Diversification Diversified Top 20 TV Group with Leading Local Franchises Nexstar has the #1 or #2 Revenue Share Ranking in 75% of its Markets Pro-forma for All Acquisitions Stations 91 Markets 48 US Television Household Reach 13.9% Duopoly Markets 33 +60% of Pro-form
Slide 7: Expanding Geographic Reach
Expanding Geographic Reach Local Community Focus Arkansas Texas Little Rock-Pine Bluff, AR (56) Harlingen-Weslaco-Brownsville- KARK (NBC) (O&O) McAllen, TX (86) KARZ (MNTV) (O&O) KVEO (NBC/Estrella) (O&O) KLRT (Fox) (LSA) Waco-Temple-Bryan, TX (88) KASN (CW) (LSA) KWKT (FOX/MNTV/Estrella) (O&O) Ft.
Slide 8: Nexstar's Expanding and Diversifying Revenue Mix
Nexstar’s Expanding and Diversifying Revenue Mix 2008 Revenue Mix 2012 Revenue Mix Political, Political, 10.2% 11.0% New Media, New Media, 3.2% 4.4% Other, 7.6% Other, 6.6% Retrans, Local/ Local/ 4.5% Regional, Regional, 53.7% 45.3% Retrans, 14.5% National, 20.7% National, 18.1% Total 2008 Revenue o
Slide 9: Strong Secular Trends in Television Broadcasting Driving Growth
Strong Secular Trends in Television Broadcasting Driving Growth Live TV Continues to Dominate Growth in Ad Spending from Recovery in Auto Weekly Video Consumption (Hrs:Min) TV Ad Spending in Automotive Sector SAAR of U.S. Light Vehicle Sales Watching Video on ($ in Billions) (in Millions) Internet W
Slide 10: Strategic Acquisition Rationale / Recent M&A Activity Summary
Strategic Acquisition Rationale / Recent M&A Activity Summary NXST Criteria for Strategic M&A Transactions Targets with attractive acquisition multiples resulting in high free cash flow accretion Geographically complementary stations to further duopoly strategy Significant synergies with well-
Slide 11: Auto Advertising Rebound Continues
Auto Advertising Rebound Continues 2012 auto sales of ~14.5 mm units up ~13% vs. 2011— the industry’s best performance in 5 years1 U.S. Monthly Auto Sales, Total Light Vehicles 13.9% increase in category spending (Y/Y) for Nexstar Seasonally Adjusted Annual Rate (SAAR) in millions3 − NXST’s focu
Slide 12: Retransmission Growth Cycle
Retransmission Growth Cycle Retransmission revenue is materially diversifying NXST’s total net revenue Nexstar led industry in securing retransmission consideration beginning in 2005 Acceleration in retransmission revenue post-contract renewal cycle demonstrates management’s ability to negotiate
Slide 13: Growth in Political and Issue Advertising
Growth in Political and Issue Advertising Consistently Strong Revenue Growth from Political and Issue Advertising 2012 was another record political billing year for Nexstar with revenue of ~$46.3 million FY Political Revenue – Even Year FY Political Revenue – Odd Year $50.0 $7.0 CAGR: 18.6% $46.3
Slide 14: Financial Overview
Nexstar” BROADCASTING GROUP, INC Financial Overview 13
Slide 15: Growing Two Year FCF Cycle
Growing Two Year FCF Cycle (FY) Significantly Growing Free Cash Flow Since IPO NXST Free Cash Flow based on two year cycles $250.0 ~ $200.0* $200.0 ($ in millions) $150.0 $100.0 $114.7 $80.0 $54.3 $50.0 $41.7 $15.1 $0.0 2003/2004 2005/2006 2007/2008 2009/2010 2011/2012 Expect FCF of Approximately $3
Slide 16: Q1 Financial Summary
Q1 Financial Summary (in millions) Three Months Ended ($ in thousands) March 31, 2013 2012 Change Local Revenues $ 59,934 $ 45,433 +31.9% National Revenues $ 23,375 $ 17,406 +34.3% Local and National Core Revenue $ 83,309 $ 62,839 +32.6% Political Revenues $ 762 $ 2,794 (72.7)% e-Media Revenue $ 6,5
Slide 17: Historical Financial Summary
Historical Financial Summary (in millions) FY Net Revenue FY Core Revenues Local Revenue National Revenue $400.0 $378.6 $300.0 $266.3 $350.0 $249.8 $247.3 $313.4 $306.5 $250.0 $237.7 $235.9 $284.9 $212.5 $300.0 $266.8 $252.0 $250.0 $200.0 $200.0 $150.0 $175.5 $171.6 $157.4 $173.9 $181.6 $190.2 $150.
Slide 18: Debt/Leverage Analysis
Debt/Leverage Analysis Nexstar Debt/Leverage Analysis TTM ENDED QTR. ENDED (in millions) 12/31/2010 12/31/2011 12/31/2012 3/31/2013 Revolver $ - $ 24.3 $ - $ 10.0 TLB 99.5 148.1 288.3 348.3 8.875% Sr Sec 2nd Lien Notes 317.4 318.4 319.4 319.7 6.875% Sr Notes - - 250.0 250.0 7% Sr Sub Notes 180.3 149
Slide 19: Transformational Acquisitions and Operating Strategies Driving Record FCF
Transformational Acquisitions and Operating Strategies Driving Record FCF Closed Highly Accretive Newport Acquisition in December/January Adds $55 million of EBITDA in first full year of operations Transaction expected to result in a 45% increase in free cash flow per share Closed Accretive
Slide 20: Appendix
Nexstar” BROADCASTING GROUP, INC 19
Slide 21: Accretively Scaling Up – Newport Acquisition
Accretively Scaling Up – Newport Acquisition On Dec. 1 and Jan. 1, 2012 Nexstar and Mission completed the acquisition of 12 TV stations from entities controlled by Newport Television Acquired Assets 12 Television Stations1 in 8 markets: Salt Lake City UT (33) Local market knowledge through pri
Slide 22: Accretively Scaling Up – Newport Acquisition
Accretively Scaling Up – Newport Acquisition Purchase Overview Pro-Forma Impact Purchase Price: $285.5 million Adds $55 million of EBITDA in year one 5.5x average 2011/2012 BCF (post- Completed financing only increases synergy) leverage by about half a turn; expected to 5.0x 2012 BCF (post
Slide 23: Accretively Scaling Up Newport and Smith Acquisitions
Accretively Scaling Up Newport and Smith Acquisitions On Feb. 15, 2012 Nexstar completed the acquisition of 3 TV stations from entities controlled by Newport Television On Mar. 4, 2012 Nexstar completed the acquisition of 2 TV stations from Smith Media On Feb. 6, 2013 Nexstar announced a definitive
Slide 24: Accretively Scaling Up – CCA Acquisition
Accretively Scaling Up – CCA Acquisition On April 24, 2013 Nexstar and Mission announced agreement to acquire the stock of Communications Corporation of America (CCA) and White Knight Broadcasting, owners of 19 TV stations Acquired Assets 19 Television Stations in 10 markets Complements existing
Slide 25: NXST: Nasdaq
NXST: Nasdaq Perry Sook Chief Executive Officer Tom Carter Chief Financial Officer The Benchmark Company One-on-One Investor Conference May 2013
Nexstar Broadcasting Group — The Benchmark Company One-on-One Investor Conference May 2013 on 6ix