2011 Q1 ReviewBoard or Directors
April 27 2011Presented By: Fred Bennett
Preliminary Q1 EBITDA forecast for 2011 unfavorable to budget by $104K budget (-$504K vs. -$400K)
Implemented reduced cash buy strategy effective April 4, 2011• Q2 YOY $578K Vs. $4.4M to support ad revenue of $3.5m compared to
$8M in 2010 (17% spend compared to 55% spend)
Staff restructuring implemented Feb 2011 (-$500K/yr). Clear reporting lines established. Approval process & controls put in place
Ended Q1 at 182 affiliations including key closes in Miami, Orlando, & New Orleans. As of April 25, Metro Television has 187 affiliates.
New process underway with key business partners (CNN, Nielsen, HULA, Katz, Fox, CBS, ITN, etc.)
Focused on continued efficiencies, & harvesting existing opportunities with minimal go forward expenses
Q1 Summary
2
Q1 2011 Preliminary Financials
3
Full YearFinancials (4.20.11) Actual Budget Var. Fcst Budget Var. Fcst Budget Var. Budget
RevenueAd Sales $6,187 $6,136 $51 $3,619 $3,450 $169 $9,806 $9,586 $220 $17,616TV 10's $94 $90 $4 $90 $90 ($0) $183 $180 $3 $360Cash Fees $1,725 $1,618 $108 $1,647 $1,676 ($30) $3,372 $3,294 $78 $7,014
Total $8,006 $7,844 $162 $5,356 $5,217 $139 $13,362 $13,060 $301 $24,990
Expenses
Salaries & Ralated(1) $2,058 $1,926 ($132) $1,777 $1,777 $0 $3,835 $3,702 ($132) $7,754P & O $4,935 $4,706 ($229) $2,054 $2,081 $27 $6,989 $6,787 ($202) $10,607Aviation $886 $849 ($37) $890 $849 ($41) $1,776 $1,698 ($78) $3,395Other $631 $763 $131 869 $789 ($80) $1,501 $1,552 $51 $3,180
Total $8,510 $8,243 ($267) $5,589 $5,496 ($94) $14,099 $13,739 ($360) $24,937
EBITDA ($504) ($400) ($105) ($233) ($279) $45 ($738) ($679) ($59) $53
ADU'sOwed to Advertisers $2,980 $3,113 $133 $3,105 $3,238 $133 $3,105 $3,238 $133
Owed to Metro (1) $164 $500
Capital Spend (Detail in appendix) $464 $466 $2 $702 $702 $0 $1,166 $1,167 ($1) $1,197
(1) Includes all employee related costs
YTD March '11 Q2'11 Prelim. Outlook H1'11
Q1 Strategy Pacing
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In pursuit of 80+ upfront agency presentations vs. 35 in ’10/’11
More deal flow for 2011/2012 upfronts
164K vs. 500K year end goalADU Pacing to plan
Mobile Traffic Rep. (Tribune) / appendixLook to launch new services – drive non-traditional revenue
On Schedule – Q2 Tampa (260K)Refurbish four (4) owned choppers (Miami, Boston, Tampa and Pittsburgh)
On Schedule through Q2 – Q3/Q4 openContinue WOPR electronic invoice strategy implementation
Current BOB = $6.7MNeed $320K
Increase cash fee affiliate revenue 25%, from $5.6M to $7.0M
Completed – savings effective 2/14Consolidated Atlanta, Los Angeles, Houston and Dallas Operations
Engaging search firmHire NY based VP Advertising Operations
January 2011 Metro barter at 91%Compliance at 95% by end of 2011
Completed – savings effective 2/8Eliminate LA based Programming department
Have not hired graphics staffWork with Metro Radio division to make Sigalert TV, Online and Mobile offerings more competitive in 2011
TrafficLand Risk ImpressionsAudience gains in Q2/Q3 critical
200+ affiliates by end of 2011, 40 new Sigalert and 40 new TrafficLand affiliates. Total new impressions gained 1.8M / wk
Boston on courseUpgrade camera systems in NY, Boston & Chicago
Completed – 2.3M give backReduce 2010/2011 upfront & scatter commitments to advertisers
On ScheduleDeliver $18M in annual revenue
NotesStatusKey Initiatives:
Ad
Sa
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Aff
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Sale
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Op
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sPr
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Exp
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Audience Deficiency Units
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ADU Update:
Entered year at $2.9M liability
Q1’11 remains stable, ending at $2.9M liability vs. $3.1M • January AM ratings 2.8 compared to forecast of 2.5
Forecast for remainder of year ~$2.2M - can fluctuate based on ratings
2010 spot buy recapture at $327k with $164k towards 2011 $500k year end goal (33%)
ADU next steps Continued ratings trend could yield approx $.6M additional reduction
Work on cross division bill-payer efforts for non-news segments (approx. $1M)
Affiliate Distribution
WTEN (Albany)
Key New Affiliates:
Plus 14 others
WWL (New Orleans)
KATV (Portland)
KOMO (Seattle)
WXIX (Cincinnati)
WOFL (Orlando)
ONN (Ohio)
WPMT (Harrisburg)
WSVN (Miami)
Key Renewals:
None
Q1 Losses:
6
4
7
TrafficLand Adds
Sigalert Adds
As of 4/25
TrafficLand Adds
Sigalert Adds
Q1 Net Increases:
4
9
1717164January 1, 2011
2525187April 25, 2011
2123182March 31, 2011
Total Number of TrafficLand Affiliates
Total Number of Sigalert Affiliates
Total Number of AffiliatesDate
KCTV (KC) – as of 4/20/2011WRC (WDC) – as of 6/24/2011
Q2 Losses:
164182 187 185 195 204
17 23 2536
5063
17 21 25 3345
57
0.9
1.5
1.8
0
50
100
150
200
250
12/31/2010 3/31/2011 4/25/2011 6/30/2011 9/30/2011 FY
Quarter
Nu
mb
er o
f A
ffil
iate
s
0.00.20.40.60.81.01.21.41.61.82.0
Th
ou
san
ds
Metro TV Affiliates
Sigalert Affiliates
TrafficLand Affiliates
Audience Growth
Affiliate Distribution
Actual Forecast
Uphill push for impressions
Forecast to exceed Sigalert goals
TrafficLand Risk
7
Weekly process has yielded results
Compliance
On course to achieve 95% compliance by year end• Driving to achieve by Q3
Now adding similar rigor to CNN affiliation process
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Metro TV - Barter Impressions Compliance
82% 84% 83% 82% 81% 80%
85%87% 86%
78%
85%87%
89% 90%
95%
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-1
0
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Jun-11
Dec-11
Metro TV - AM Ratings
2.6 2.6
2.3 2.2 2.1 2.2 2.2
1.8
2.5
2.92.8
2.32.3
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-1
0
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Risks
Achieving ratings commitments to advertisers under new reduced inventory platform
Negative sentiments toward Metro Television in both advertising and affiliate community
TV content competitors active, but inconsistent
Timely GEWI implementation with key partners operating in 45 business days
Paradigm shift could lead to additional staff attrition
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Risks
Closely monitor
Get out and prove ourselves
Continue to gain knowledge. Mow down upstarts
Help radio with process. Frequent updates to contracted affiliates
Engage & Communicate
Plan
Complete goal of twice as many upfront presentations (vs. 2010) and begin 2011/2012 negotiations (May timing goal of 8-10% incr.)
Establish significant Ad & Affiliate Sales deal flow to enable the firm to choose the best opportunities for Metro
Consistent 90% compliance by end of quarter. Add same rigor to CNN and supplemental buys
Work with radio divisions to infiltrate existing client relationships for conceptual TV sales Close key affiliate renewals at WSB (ATL), WDIV (Det), KSWB (SD), etc. Work to drive
affiliate distribution beyond 2011B goals at both station and group level Continue WOPR implementation Streamline inventory management process
Key Hires: VP Ad Operations TV Graphics Developer SVP Ad Sales
Q2 Benchmarks for Success
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Q2 Focus: Establish up front selling guidelines to ensure no surprises Increase deal flow will provide us with the opportunity to pick and choose the
best advertising commitments for the company Hire new head of Ad Sales
PLACEHOLDER
Appendix
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Westwood One Posted spots Records (WOPR):
Advertising Operations
Pending7/11/11Enables data to be imported and exported between EAS and WOPR3.5
Cap Ex PausedTBDAutomates the traffic process and eliminates the NUVAR system5.0
Cap Ex PausedTBDEliminates the Master Inventory Excel sheet and migrates the process to WOPR
4.0
In Beta3/16/11Will greatly shorten AP cycle by eliminating the need for re-entry of invoice data by AP
2.0
In Development7/5/11Import master inventory file and post as-run information against planned3.0
In Operation12/1/10Electronic workflow for all invoices1.5
In Operation8/1/10Enabled us to eliminate the six month back log of advertiser posting1.0
StatusDateDescriptionRelease
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Non-Traditional Revenue
Metro Television Street Reporter
Proprietary concept currently presented
to Tribune Corporate
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