American Community Newspapers Inc
American Community Newspapers — Courtside Acquisition — SPAC Merger (May 2007)
32 slides from American Community Newspapers's SPAC merger presentation, May 15, 2007
Slide 1: Courtside Acquisition Corp. to acquire American Community Newspapers
Courtside Acquisition Corp.<br/>to acquire In the community, With the community, For the community.
Slide 2: Roadshow Presentation
Roadshow Presentation The attached slide show was filed with the Securities and Exchange Commission as part of a Form 8–K by Courtside Acquisition Corp. (“Courtside”) on May 15, 2007. Courtside is holding presentations for certain of its stockholders, as well as other persons who might be interested
Slide 3: Safe Harbor
Safe Harbor This presentation may contain forward–looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Courtside, ACN and their combined business after completion of the proposed acquisition. Forward–looking statements are statements that are not histor
Slide 4: ACN is a pure-play community newspaper platform
ACN is a pure-play community newspaper platform with market-leading positions in strategically clustered attractive markets, offering a tremendous value proposition for advertisers
Slide 5: Investment Highlights
Investment Highlights Strategically clustered, pure-play community newspaper platform with market-leading positions Strategically clustered, pure-play community newspaper platform with market-leading positions ACN operates in a growing segment of the newspaper market Affluent, desirable and high gro
Slide 6: The Transaction
The Transaction Courtside/ACN business combination Courtside/ACN business combination Asset purchase agreement signed January 24, 2007 ACN acquired C.M. Media – new Columbus Cluster – on April 30, 2007 Amended the purchase agreement on May 2, 2007 Expected closing Q2 2007 Terms of the transaction: P
Slide 7: Comparative Analysis
Comparative Analysis Closest peers trade at EBITDA multiples of approximately twice their long-term Closest peers trade at EBITDA multiples of approximately twice their long-term growth rates; Courtside’s acquisition EBITDA multiple is (US$ in millions, except per share data)
Slide 8: Company Overview: American Community Newspapers
Company Overview American Community Newspapers Daily newspapers: Daily newspapers: Weekly newspapers: Niche publications: Circulation: 2006 Revenue(1): 2006 NCF (1): Dallas 2 2 14 6 Minneapolis 1 1 43 - -- Northern Virginia - -- - -- 4 4 Total 3 3 83 14 1,386,000 $76.8mm $18.4mm 2007P Revenue (1): 2
Slide 9: Minneapolis Detailed Market Profile
Minneapolis Note: Map does not show two newspaper operations in Albany and Melrose, MN, which are located northwest of St. Cloud, MN Detailed Market Profile
Slide 10: Dallas Detailed Market Profile
Dallas Detailed Market Profile (Cont’d) McKinney Courier-Gazette Plano Insider Penny Saver
Slide 11: Northern Virginia Detailed Market Profile
Northern Virginia Detailed Market Profile (Cont’d) 10 LOUDOUN <br/>COUNTY FAIRFAX<br/>COUNTY PRINCE<br/>WILLIAM<br/>COUNTY Middleburg South Riding Dulles Ashburn Leesburg Manassas Clifton Centreville Manassas Park Great Falls Tysons Corner McLean Arlington Alexandria Falls<br/>Church Springfield Bur
Slide 12: Columbus Detailed Market Profile
Columbus 11 Bexley News Big Walnut News The Booster The Times Delaware News Dublin News Gahanna News German Village Gazette Grove City News Hilliard Northwest News New Albany News Northwest Columbus News Olentangy Valley news Pickerington Times-Sun Reynoldsburg News Tri-village News Westerville News
Slide 13: Experienced, Industry-Leading Management Team
Experienced, Industry-Leading Management Team Joined ACN in December 2001 Joined ACN in December 2001 Prior work experience: Prior work experience: CEO, Southern Division, Brown Publishing VP of Sales and Marketing, Trinity Holdings President of Profits Through Marketing EVP of Arundel Communication
Slide 14: ACN's Newspapers are Local to the Communities they Serve
ACN’s Newspapers are Local to the Communities they Serve ACN focuses on local news that is consistently overlooked by metro newspapers, radio stations and television including: ACN focuses on local news that is consistently overlooked by metro newspapers, radio stations and television including: Loc
Slide 15: ACN is an Integral Part of the Communities it Serves
ACN is an Integral Part of the Communities it Serves
Slide 16: ACN's Publications by Region
ACN’s Publications by Region Minneapolis Minneapolis www.mnsun.com Apple Valley / Rosemount Sun Current Bloomington Sun Current Brooklyn Center Sun Post Brooklyn Park Sun Post Burnsville / Savage Sun Current Eagan Sun Current East Minnetonka Sun Sailor Eden Prairie Sun Current Edina Sun Current Exce
Slide 17: Industry Overview
Industry Overview Newspapers are the third largest advertising medium in the U.S., estimated to account for 14.9% of 2007 U.S. advertising expenditures Newspapers are the third largest advertising medium in the U.S., estimated to account for 14.9% of 2007 U.S. advertising expenditures Total U.S. new
Slide 18: Why Community Newspapers are Different
Why Community Newspapers are Different Community newspapers are often seen as less sensitive to a macroeconomic slowdown and are viewed as a mainstay of the community Community newspapers are often seen as less sensitive to a macroeconomic slowdown and are viewed as a mainstay of the community Commu
Slide 19: Highlights of the Power of the Community Newspaper Platform
Highlights of the Power of the Community Newspaper Platform(1) ? and are generally more affluent, more educated and have better jobs than metro audiences Median household income in suburban markets is 68% higher than the national average Median household income in suburban markets is 68% higher than
Slide 20: ACN is a Best-in-Class Asset
ACN is a Best-in-Class Asset Operates in Affluent, Desirable, High Growth Demographics Stable Revenue Base An Industry Leader in Profitability Metrics Management Team With Successful Track Record of Acquisitions Solidified a Leading Position in Delivering Proprietary Online Content in its Markets
Slide 21: Comparative Performance Analysis
Comparative Performance Analysis Comparative Performance ACN is an industry leader in revenue and EBITDA growth
Slide 22: Among the Fastest Growing and Most Affluent Markets in the U.S.
Among the Fastest Growing and Most Affluent Markets in the U.S. (1) Statistics from Sales & Marketing Management 2005 Survey of Buying Power (1) Statistics from Sales & Marketing Management 2005 Survey of Buying Power Minneapolis Cluster (Minneapolis-St. Paul MSA) Minneapolis Cluster (Minneapolis-St
Slide 23: ACN Enjoys Stable Revenue Base
ACN Enjoys Stable Revenue Base Stable advertising revenues given ACN’s long-standing client relationships in ACN’s markets Stable advertising revenues given ACN’s long-standing client relationships in ACN’s markets Over 40,000(1) individuals and businesses advertise in ACN’s publications ACN top 20
Slide 24: ACN has Aggressively Built its Internet Presence
ACN has Aggressively Built its Internet Presence ACN’s Internet portal provides unique, localized content that effectively increases “editions” through online breaking news, while increasing reach beyond printed products ACN’s Internet portal provides unique, localized content that effectively incre
Slide 25: New Media / Internet Portal
New Media / Internet Portal ‘CouMURETY NEWS ~ | SPORTS ~ | ENTERTARUAENT LASSEDS | LOCAL SHOPDNG [5 " Tandy Roy 70 = ‘eee Waconia op ayes ys Pp wtf ington ee sertely Sec pcpe ang vf nt injured in egal stack RmTUeNnsern ewes ict comma |Bedge Chrysler Jeep As yearatd looming of was i ey ‘ett canton Sa
Slide 26: Successful Track Record of Acquisitions
Successful Track Record of Acquisitions Add-on acquisitions leverage ACN’s existing operating platform delivering significant cash flow synergies contributing to reduction in purchase multiples Dallas McKinney Courier-Gazette, July 2005 McKinney Courier-Gazette, July 2005 Group of one daily, one wee
Slide 27: Growth Strategy
Growth Strategy Organic Growth Strategic Add-on Acquisitions New Cluster Acquisitions
Slide 28: Organic Growth
Organic Growth ACN has a Multi-Faceted Growth Strategy Continue to capitalize on household growth in ACN’s markets Continue to capitalize on household growth in ACN’s markets Continue to capture a larger number of local and major national advertisers through increased calls, training and territory s
Slide 29: ACN has a Multi-Faceted Growth Strategy (Cont'd)
ACN has a Multi-Faceted Growth Strategy (Cont’d) Strategic Add-on Acquisitions New Cluster Acquisitions Large and fragmented marketplace = acquisition opportunities Large and fragmented marketplace = acquisition opportunities Expansion opportunities in contiguous markets to further leverage clustere
Slide 30: Historical Financial Overview
NCF Revenue Growth Historical Financial Overview (1) Each year pro forma for all completed acquisitions excluding Columbus Cluster which was acquired 4/30/07 Each year pro forma for all completed acquisitions excluding Columbus Cluster which was acquired 4/30/07 CAGR 7.0% CAGR 18.7% EBITDA Growth CA
Slide 31: Pro Forma for Columbus and Projected Financial Overview
Pro Forma for Columbus and Projected Financial Overview Pro forma for Columbus Cluster acquisition
Slide 32: Summary
Summary Pure-play community newspaper platform Strategically clustered market-leading positions in attractive markets, offering a tremendous value proposition for advertisers Strong financial profile generating significant revenue and EBITDA growth Experienced, dedicated, successful management team