American Community Newspapers Inc.
ThinkEquity Partners LLC 5th Annual Growth Conference
September 17, 2007
In the community, With the community,
For the community.
Safe Harbor
This presentation may contain forward–looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about
American Community Newspapers Inc. (formerly known as Courtside Acquisition Corp.) (“ACN Inc.”), American Community Newspapers LLC
(“ACN LLC”) and their combined business after completion of the acquisition of the business and assets of ACN LLC by ACN Inc. Forward–
looking statements are statements that are not historical facts. Such forward–looking statements, based upon the current beliefs and
expectations of ACN Inc.’s management, are subject to risks and uncertainties which could cause actual results to differ from the forward-
looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward–looking
statements: economic and demographics of the local communities ACN Inc. serves; paper costs; fluctuations in customer demand; shifting of
traditional media spending from print to new media; ability to find, effectuate and integrate acquisitions; impact of significant indebtedness;
declining circulation; seasonality; environmental and employee and safety issues; reliance on key personnel or inability to attract qualified
personnel; as well as other relevant risks detailed in ACN Inc.’s filings with the Securities and Exchange Commission (“SEC”)
(http://www.sec.gov), including its prospectus dated June 30, 2005, its annual report on Form 10-K for the year ended December 31, 2006, its
quarterly reports on Form 10-Q for the quarters ended March 31, 2007 and June 30, 2007, its definitive proxy statement dated June 15, 2007
and its other filings with the SEC. The information set forth herein should be read in light of such risks.
ACN LLC’s financial information was prepared by ACN LLC as a private company, and derived from financial statements prepared in
accordance with U.S. generally accepted accounting principles (“GAAP”). Such financial information included herein does not conform to SEC
Regulation S–X. Accordingly, such historical information has been adjusted and presented differently in ACN Inc.’s proxy statement to solicit
stockholder approval of the acquisition of the business and assets of ACN LLC. Furthermore, this presentation includes certain financial
information (EBITDA, Adjusted EBITDA and Newspaper Cash Flow) not presented in accordance with GAAP. Accordingly, such information
may be materially different as presented in ACN Inc.’s proxy statement which was used to solicit stockholder approval of the transaction. ACN
Inc. believes that the presentation of these non-GAAP measures provide information that is useful to investors as it indicates more clearly the
ability of ACN Inc. to meet capital expenditures and working capital requirements and otherwise meet its obligations as they become due.
EBITDA and Adjusted EBITDA were derived by taking earnings before interest, taxes, depreciation and amortization and public company costs
as adjusted for certain one-time non-recurring items and exclusions. Newspaper Cash Flow was derived by taking earnings before corporate
expenses, interest, taxes, depreciation and amortization and public company costs as adjusted for certain one-time non-recurring items and
exclusions. In calculating EBITDA, Adjusted EBITDA and Newspaper Cash Flow and other financial information contained herein, acquisitions
(and a disposition) have been presented as if the acquisitions (and disposition) were made as of the first day of the earliest fiscal year
presented, except as otherwise indicated . The historical financial information included in this presentation is not indicative of the future
performance of ACN Inc. ACN Inc. assumes no obligation to update the information contained in this presentation.
American Community Newspapers Inc.
1
Investment Rationale
Differentiated and proven business model
Best in class assets
Multiple growth opportunities
Strong financial profile - outperforming the industry and solid
free cash flow generation
Experienced, dedicated management team and workforce
American Community Newspapers Inc.
2
Newspaper Industry – What You Are Hearing
Old media industry whose business model is crumbling
Continued weakness in advertising environment
Shrinking circulation and reach
Operating margins under pressure – cost cutting not enough
Internet initiatives too little, too late
No near-term story: what is the future?
American Community Newspapers Inc.
3
Why ACN is Different
Outperforming the industry
Strategically clustered, pure-play platform with market-leading
positions
Affluent, desirable and high growth demographics in each market
Controlled direct to home distribution to highly penetrated targeted
markets
Virtually exclusive source of intensely local content and advertising
which is highly valued by consumers
Mainstay of the community and less sensitive to macroeconomic
issues
Source: Public companies’ filings, Wall Street research reports
American Community Newspapers Inc.
4
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
70% of readers are college educated
80% of readers own their own home
86% of adults are interested in
community news
60% of adults turn to community
newspapers first for local news,
events and sports
51% of readers turn to community
newspapers for local shopping ads
vs. 28% for metro newspapers
Study results
Statistical highlights for ACN’s Readers (2)
(1)
Suburban Newspapers of America and SNA/Belden study conducted in 2006
(2)
Excludes Columbus Cluster
Readers in suburban communities
have strong interests in community
news…
American Community Newspapers Inc.
5
ACN is a Best-in-Class Asset
An industry leader in profitability metrics
Operates in affluent, desirable, high growth demographics
Tight cluster strategy provides opportunity to realize synergies
from cross-selling opportunities and significant cost efficiencies
Solidified a leading position in delivering proprietary online
content in its markets
Management team with successful operating and acquisition track
record
American Community Newspapers Inc.
6
Who We Are
American Community Newspapers Inc.
Daily newspapers:
Weekly newspapers:
Niche publications:
Circulation:
2006 Revenue(1):
2006 NCF (1):
2006 NCF margin (1):
Northern
Virginia
—
4
4
219,000
Total
3
83
14
1,386,000
$76.8mm
$18.4mm
24.0%
ACN is a leading community
newspaper publisher with operations
in four attractive major U.S. markets
Dallas
2
14
6
298,000
Minneapolis
1
43
—
457,000
Columbus
—
22
4
412,000
(1) Pro forma for Columbus Cluster acquisition as if it occurred on the first day of the period
American Community Newspapers Inc.
7
$144,900
$44,400
$81,400
$70,000
$55,400
Columbus
Minneapolis
Dallas
Northern
Virginia
U.S.
Average
Among the Fastest Growing and Most Affluent Markets in the
U.S.
(1) Statistics from Sales & Marketing Management 2005 Survey of Buying Power
(2) Statistics are for ACN’s readers from SNA-Belden 2006 Research Study and the Media Audit – International Demographics
Minneapolis Cluster (Minneapolis – St. Paul MSA)
12th highest median household effective buying income
(EBI) nationally
12th largest retail market with $74.2 billion in retail sales
Dallas Cluster (Dallas – Fort Worth MSA)
17th highest median household EBI nationally
7th largest retail market with $106.7 billion in retail sales
Over 30% of Texas retail sales in Dallas-Fort Worth
area
Northern Virginia Cluster (Washington, DC MSA)
2nd highest median household EBI nationally
8th largest retail market with $89.5 billion in retail sales
Columbus Cluster (Columbus, OH MSA)
31st highest median household EBI nationally
28th largest retail market with $29 billion in retail sales
U.S.
average
Median Household Income (2)
Key Market Statistics (1)
American Community Newspapers Inc.
8
ACN’s Newspapers are Local Community Focused
ACN focuses on local news that is consistently overlooked by metro newspapers, radio
stations and television including:
Local city council and government
School districts, high school sports and youth sports
Special editorial sections relevant to the community
Festivals, events and calendars
Local police, fire and rescue
Local businesses
Each of ACN’s community newspapers mirror the goings-on and happenings for that
local audience; ACN has more local news gatherers than its direct competitors in
many of its markets
High quality publications that have won awards for the Best Weekly Newspaper in the
U.S. as well as over 100 awards for design, editorial and general excellence
U.S. Best Non-Daily Newspaper over 10,000 circulation – First Place, 2006 –
Eden Prairie Sun Current (1)
Best Weekly Website, 2007 – Monticello Times (2)
(1)
Inland Press Foundation
(2)
Minnesota Newspaper Association
American Community Newspapers Inc.
9
ACN is an Integral Part of the Communities it Serves
American Community Newspapers Inc.
10
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
Successful implementation of new online features:
Video news and sports coverage
Video retail advertisements
Blogging initiatives
User-generated content
Exceptional customer acceptance during 2006, as demonstrated by the following growth metrics(1):
Visits per month increased by approximately 300%
Page views increased by more than 200%
Revenue increased by 210% year-over-year reaching approximately 2% of ACN’s revenue in
2006
Over the last twelve months, ACN has solidified a leading position in delivering
local content through online media expansion
(1) Excludes Columbus Cluster
American Community Newspapers Inc.
11
New Media / Internet Portal
American Community Newspapers Inc.
12
Experienced, Industry-Leading Management Team
Joined ACN in December 2001
13 years of publishing experience
Prior work experience:
CEO, Southern Division, Brown Publishing
VP of Sales and Marketing, Trinity Holdings
President of Profits Through Marketing
EVP of Arundel Communications
Exec. Sales Director, Cincinnati Suburban Press
Board affiliations: Board of Suburban Newspapers of
America and former Board member of Village Voice
Media
Prior work experience:
EVP and CFO, Novo Networks
Co-founder of Marcus and Partners
VP, Strategic Development of AMFM
SVP, Finance/Corp. Development for Marcus Cable
Director of Finance/Development, Crown Media
Board affiliations: Former Board member of the Texas
Community Newspaper Association
Prior work experience:
Group Advertising and Marketing Director for Brown
Publishing
Publisher of The Morning Journal (Trinity Holdings)
Advertising Manager for the Battle Creek Enquirer
(Gannett)
Prior work experience:
Group Publisher of Greater Kansas City Community
Newspapers (News Press-Gazette Company)
Group Publisher of Sun Publications (ACN)
Publisher of Times Herald (Bradford Publishing)
Various positions with Thomson Newspapers
Prior work experience:
Publisher of Sun Gazette Newspapers
Advertising Director of The Journal Newspapers
Prior work experience:
General Manager of Pennysaver Publications
Held numerous positions including Accounting
Manager, VP of Operations and VP of
Classifieds
Instrumental in growing Pennysaver circulation
from 16,000 to 780,000
Gene Carr
Chairman and
Chief Executive Officer
Joined ACN in August 2001
28 years of publishing experience
Joined ACN in May 2002
20 years of financial / media
experience
Dan Wilson
Chief Financial Officer
Jeff Coolman
VP of Sales and Group
Publisher of Minneapolis
Newspaper Group
Donna Talla
Group Publisher of
Northern Virginia
Newspaper Group
Bill Weaver
Group Publisher of Dallas
Newspaper Group
Joined ACN in January 2007
31 years of publishing experience
Joined ACN in August 2005
12 years of publishing experience
Roy Biondi
VP and Group Publisher of
Columbus Newspaper
Group
Rejoined ACN in May 2007
(ACN’s former Kansas City Group
Publisher)
21 years of publishing experience
American Community Newspapers Inc.
13
Multi-Faceted Growth Strategy
Organic Growth
Strategic Add-on Acquisitions
New Cluster Acquisitions
American Community Newspapers Inc.
14
Multi-Faceted Growth Strategy – Organic Growth
Continue to strengthen position as a leading provider of local
print and online content
Capture a larger number of local and major national advertisers
through increased calls, training and territory staffing
Continue to develop new products and enhance ACN’s existing
products in order to increase the value proposition for both
ACN’s advertisers and ACN’s readers
Further the monetization of accelerating growth in traffic to
ACN’s websites through the launch of complementary products
and potential partnerships with major web players
Capitalize on market household growth
American Community Newspapers Inc.
15
Multi-Faceted Growth Strategy - Acquisitions
Strategic
Add-ons
New
Clusters
Large and fragmented marketplace = acquisition opportunities
Expansion opportunities in contiguous markets to further leverage
clustered platform
Leverage scale and clustering advantage to increase revenue and
EBITDA growth
Available capacity in existing press facilities
Expanded advertising packages and greater zoning options
Efficiencies from centralized back office functions
New stand-alone clusters in similarly attractive suburban markets
Columbus
Non-auction opportunities successfully identified and executed
Access to public currency will facilitate future acquisitions
American Community Newspapers Inc.
16
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
Group of one daily, one
weekly and other niche
publications located in
McKinney, Texas
Pre Acquisition
Revenue: $2.8mm
Circulation: 43,000
Minneapolis
Northern Virginia
Monticello Times, May 2005
Group of one paid
weekly and one free
weekly publications
located in Monticello,
Minnesota
Pre Acquisition
Revenue: $1.6mm
Circulation: 29,000
Suburban Washington
Newspapers / Sun Gazette,
August 2005
Group of two weekly
and two monthly
publications located
principally in Fairfax and
Loudoun County
Virginia
Pre Acquisition
Revenue: $3.2mm
Circulation: 105,000
Amendment One / Leesburg
Today, March 2006
Group of one weekly,
one monthly and one
quarterly publications
located in Loudoun
County Virginia
Pre Acquisition
Revenue: $5.6mm
Circulation: 94,000
Columbus
CM Media, Inc.
Group of 22 weekly
newspapers and 4 niche
publications in and
around the Columbus
metropolitan area
Pre-acquisition
revenue: $23.3mm
Circulation: 412,000
American Community Newspapers Inc.
17
NCF
Revenue Growth
$0
$10
$20
$30
$40
$50
$60
2003
2004
2005
2006
$0
$2
$4
$6
$8
$10
$12
$14
$16
2003
2004
2005
2006
$0
$2
$4
$6
$8
$10
$12
$14
2003
2004
2005
2006
Historical Financial Overview (1)
($ in thousands)
2003
2004
2005
2006
(2)
CAGR (03-06)
Revenue
$43,703
$46,606
$49,805
$53,506
7.0%
% Growth
6.6%
6.9%
7.4%
Newspaper Cash Flow
$8,940
$9,919
$11,258
$14,405
17.2%
Margin
20.5%
21.3%
22.6%
26.9%
% Growth
11.0%
13.5%
28.0%
Adjusted EBITDA
$7,735
$8,886
$10,162
$12,923
18.7%
Margin
17.7%
19.1%
20.4%
24.2%
% Growth
14.9%
14.4%
27.2%
18
American Community Newspapers Inc.
EBITDA Growth
(1)
Each year pro forma for all completed acquisitions excluding Columbus Cluster which was acquired on April 30, 2007
(2)
2006 has one less week than 2005. When the effect of this week is removed, revenue grew 8.6%
Long-Standing Client Relationships Drive Revenue
Over 40,000(1) individuals and businesses advertise in ACN’s
publications
ACN top 20 advertisers contributed 7.3% of 2006A(1) revenues
Limited reliance on circulation revenue
2006A Revenue Breakdown (1)
Advertising
92%
Circulation
4%
Internet
2%
Other
2%
(1) Excludes Columbus Cluster
American Community Newspapers Inc.
19
First Half 2007 Financial Results
(1) Excludes impact of acquisitions made in the current or prior year.
Six Months Ended
($000s)
July 1, 2007
July 2, 2006
GAAP
Same Property
Revenues:
Advertising
28,852
$
23,793
$
Circulation
1,081
950
Commercial printing and other
717
428
Total revenue
30,650
25,171
21.8%
1.2%
Operating costs and expenses:
Operating costs
13,118
10,577
Selling, general and administrative
9,237
7,915
Newspaper cash flow
8,295
6,679
24.2%
8.9%
NCF margin
27.1%
26.5%
Corporate expense
768
760
EBITDA
7,527
$
5,919
$
27.2%
11.7%
EBITDA margin
24.6%
23.5%
Y/Y Percent Change
(1)
American Community Newspapers Inc.
20
Summary
Pure-play community newspaper platform
Strategically clustered market-leading positions in attractive
markets, offering a tremendous value proposition for advertisers
Successful track record of acquiring and integrating new assets
as well as growing organically
Strong financial profile - outperforming the industry and solid
free cash flow generation
Significant opportunities for future growth
Experienced, dedicated, successful management team and
workforce
American Community Newspapers Inc.
21
American Community Newspapers Inc.
ThinkEquity Partners LLC 5th Annual Growth Conference
September 17, 2007
In the community, With the community,
For the community.
Appendix
American Community Newspapers Inc.
23
Minneapolis
24
American Community Newspapers Inc.
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
Dallas
Detailed Market Profile - Dallas
American Community Newspapers Inc.
25
The Celina Record
Little Elm Journal
McKinney Courier-Gazette
Penny Saver
The Allen American
Plano Insider
Plano Star Courier
Rowlett Lake Shore Times
The Mesquite News
Carrollton Leader
Coppell Gazette
Southlake Times
Flower Mound Leader
Lewisville Leader
The Colony Leader
The Frisco Enterprise
Little Elm
Flower Mound
Frisco
McKinney
Allen
Plano
Rowlett
Carrollton
Southlake
Celina
Mesquite
Dallas
The Colony
Lewisville
DALLAS
COUNTY
DENTON
COUNTY
COLLIN
COUNTY
ROCKWALL
COUNTY
A
U
U
U
U
Main office
Production
Sales/Editorial
Dallas Fort Worth
International Airport
Major Universities
A
U
Northern Virginia
Detailed Market Profile – Northern Virginia
26
LOUDOUN
COUNTY
FAIRFAX
COUNTY
PRINCE
WILLIAM
COUNTY
Middleburg
South Riding
Dulles
Ashburn
Leesburg
Manassas
Clifton
Centreville
Manassas
Park
Great Falls
Tysons
Corner
McLean
Arlington
Alexandria
Falls
Church
Springfield
Burke
Chantilly
Herndon
Reston
Vienna
Oakton
Fairfax
Washington,
DC
Leesburg Today
Loudoun Magazine
Loudoun Business
Great Falls / McLean / Oakton
/ Vienna Sun Gazette
Arlington Sun Gazette
Middleburg Life
Parent Life
Ashburn Today
American Community Newspapers Inc.
Columbus
27
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 & Public
Opinion
Westland News
Whitehall News
Worthington
News
Upper Arlington
News
Northland News
Detailed Market Profile - Columbus
American Community Newspapers Inc.
Production & Administration
Mount Liberty
Delaware
New Albany
Plain City
Orange
Pleasant
Corners
Obetz
Grandview heights
Groveport
Pickerington
Whitehall
Powell
Bexley
Reynoldsburg
Hilliard
Gahanna
Westerville
Upper Arlington
Dublin
ACN’s Publications by Region
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
Excelsior / Shorewood / Chanhassen Sun Sailor
Blaine / Spring Lake Park Sun Focus
Fridley / Columbia Heights Sun Focus
New Brighton / Mounds View Sun Focus
Roseville / Falcon Heights Sun Focus
New Hope / Golden Valley Sun Sailor
Plymouth East Sun Sailor
Plymouth West Sun Sailor
Richfield Sun Current
Robbinsdale / Crystal Sun Post
Hopkins Sun Sailor
Lakeville Sun Current
South St. Paul / Inver Grove Heights Sun Current
St. Louis Park Sun Sailor
Wayzata / Orono / Long Lake Sun Sailor
West Minnetonka / Deephaven Sun Sailor
West Saint Paul / Mendota Heights Sun Current
Stillwater Evening Gazette
The Valley Life
Champlin / Dayton Sun Press
Delano Eagle Sun Press
North Crow River Sun Press
Osseo / Maple Grove Sun Press
Rockford Area News Sun Press
South Crow River Sun Press
Stearns-Morrison Enterprise
Melrose Beacon
Carver County News
Gold Miner
Minneapolis (Cont’d)
Norwood Young America Times
The Laker
The Pioneer
Waconia Patriot
Monticello Times
Monticello Shopper
Dallas
www.scntx.com
Plano Star Courier
Plano Insider
Allen American
McKinney Courier-Gazette
Frisco Enterprise
Celina Record
Mesquite News
Rowlett Lakeshore Times
Little Elm Journal
Lewisville Leader
Flower Mound Leader
Coppell Gazette
The Colony Leader
Carrollton Leader
Southlake Times
Penny Saver
North Texas Life
Stonebridge Life
All About Frisco
All About Coppell
All About Flower Mound
Lantana
Northern Virginia
Leesburg Today - www.leesburgtoday.com
Ashburn Today - www.ashburntoday.com
Loudoun Magazine - www.loudounmagazine.com
Loudoun Business - www.loudounbusiness.com
Arlington Sun Gazette - www.sungazette.net
Great Falls / McLean / Oakton / Vienna Sun Gazette
Middleburg Life - www.middleburglife.net
Parent Life - www.nvparentlife.com
Columbus
www.snponline.com
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
Northland News
Northwest Columbus News
Olentangy Valley News
Pickerington Times-Sun
Reynoldsburg News
Tri-Village News
Upper Arlington News
Westerville News & Public Opinion
Westland News
Whitehall News
Worthington News
Columbus Monthly Magazine -
www.columbusmonthly.com
The Other Paper - www.theotherpaper.com
C.E.O. Magazine - www.columbusceo.com
Columbus Bride - www.columbusbride.com
Note: Boldface indicates recent acquisitions
American Community Newspapers Inc.
28
The Courtside/ACN Transaction
Asset purchase agreement signed January 24, 2007 and closed on July 2, 2007
ACN acquired certain assets of CM Media, Inc. – new ACN Columbus Cluster – on April 30, 2007
Terms of the transaction:
Purchase of assets for $206.8 million, including working capital adjustments
ACN management purchased and holds $1.0 million of stock, approximately 176,000 shares and
signed four year employment agreements
Senior credit facility of $125.0 million, with $13.5 million revolving credit availability after
closing
Contingent payments
A range of $1 million to $15 million earnout with 2008 newspaper cash flow (“NCF”) ranging
from $19 million to $21 million
$10 million payable to sellers if stock price is at least $8.50 for a specified period by July
2009
Pro forma capitalization:
Senior Debt
111,500,000
$
Mezzanine Debt
30,000,000
Preferred Stock
4,219,300
Cash on Hand
(750,000)
Net Debt / Preferred
144,969,300
$
Outstanding Common Shares
14,620,945
Share Price - September 7, 2007
4.20
$
Market Capitalization
61,407,969
$
Enterprise Value
206,377,269
$
29
American Community Newspapers Inc.
As of July 2, 2007
2006 Financial Overview Pro Forma for Columbus
($ in thousands)
ACN
Columbus
2006A
2006A
2006PF
(1)
Revenue
$53,506
$23,252
$76,758
% Growth
Newspaper Cash Flow
$14,405
$4,025
$18,430
Margin
26.9%
17.3%
24.0%
% Growth
Adjusted EBITDA
$12,923
$4,025
$16,948
Margin
24.2%
17.3%
22.1%
% Growth
31.1%
30
American Community Newspapers Inc.
(1)
Pro forma for Columbus Cluster acquisition
Reconciliations
Reconciliation of Net Income to EBITDA - Unaudited ($000s)
Six Months Ended
July 1, 2007
July 2, 2006
Net income
2,235
$
1,731
$
State taxes (non income)
-
45
Interest expense
3,308
2,461
Depreciation and amortization
1,984
1,682
EBITDA
7,527
$
5,919
$
Reconciliation of Net Income to Newspaper Cash Flow - Unaudited ($000s)
Six Months Ended
July 1, 2007
July 2, 2006
Net income
2,235
$
1,731
$
State taxes (non income)
-
45
Interest expense
3,308
2,461
Depreciation and amortization
1,984
1,682
Corporate expense
768
760
Newspaper Cash Flow
8,295
$
6,679
$
American Community Newspapers Inc.
31