MEDIA GENERAL INC 
By
The 2007 fourth quarter had 13 weeks compared with 14 weeks in the 2006
quarter. Although it is difficult to precisely quantify the impact of the
additional week, the company has estimated the impact on key metrics
throughout this release in order to allow meaningful comparisons. The company
estimates the effect of the additional week in 2006 contributed approximately
Total company revenues in the fourth quarter of 2007 were
"Media General's lower profit in the fourth quarter was chiefly
attributable to markedly lower Political revenues compared to the record
"We are pleased with the Interactive Media Division's continued solid
revenue growth, up about 36 percent, led by increased advergaming revenues and
Local and National/Regional advertising,"
Publishing Division
Publishing Division profit for the quarter decreased approximately 22 percent, total revenues decreased about 9 percent, and newspaper advertising revenues declined about 11 percent.
Classified advertising revenues in the fourth quarter were below last year
by about
For the company's three metro markets, real estate revenues were down about 36 percent, employment revenues decreased approximately 27 percent, and automotive revenues declined about 24 percent.
Retail revenues decreased about
National advertising revenues for the quarter decreased approximately
Circulation revenues for the fourth quarter were down less than
Publishing Division expenses declined more than 5 percent for the quarter,
reflecting significant decreases in newsprint expense, salaries, and benefits.
Newsprint expense decreased as the result both of lower prices and
consumption. The average price per ton decreased
Broadcast Division
Broadcast Division profit for the quarter declined approximately 42 percent, and total Broadcast revenues decreased about 14 percent. The decline was largely due to lower Political revenues from last year's record quarter. The Broadcast Division results exclude three television stations that are being held for sale and reported as discontinued operations.
Total Political revenues of
Gross time sales declined about
Broadcast expenses for the quarter increased about 3 percent, due to increased commissions and customer incentives to replace the prior year's Political revenues along with higher depreciation expense on digital equipment purchased in recent years.
Interactive Media Division
Interactive Media Division revenues of
Other results
Interest expense decreased by
EBITDA (income from continuing operations before interest, taxes,
depreciation and amortization) in the fourth quarter of 2007 was
Media General provides the non-GAAP financial metrics EBITDA, After-Tax Cash Flow, and Free Cash Flow. The company believes these metrics are useful in evaluating financial performance and are common alternative measures used by investors, financial analysts and rating agencies. These groups use EBITDA, along with other measures, to evaluate a company's ability to service its debt requirements and to estimate the value of the company. A reconciliation of these metrics to amounts on the GAAP statements has been included in this news release.
Conference Call and Webcast
The company will hold an earnings conference call with financial analysts
today at
About Media General
Media General is a multimedia company operating leading newspapers,
television stations and online enterprises primarily in the Southeastern
Media General, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
Fifty- Fifty-
Thirteen Fourteen Two Three
Weeks Weeks Weeks Weeks
Ending Ending Ending Ending
------------------ -------------------
December December December December
(Unaudited, in thousands except 30, 2007 31, 2006 30, 2007 31, 2006
per share amounts)
-------------------------------------------------------------------------
Revenues $243,785 $289,426 $932,181 $964,857
Operating costs:
Production 102,529 115,781 417,057 413,588
Selling, general and
administrative 88,587 92,479 350,263 345,179
Depreciation and amortization 17,460 17,545 75,235 68,409
Gain on insurance recovery (17,604) --- (17,604) ---
-------------------------------------------------------------------------
Total operating costs 190,972 225,805 824,951 827,176
-------------------------------------------------------------------------
Operating income 52,813 63,621 107,230 137,681
-------------------------------------------------------------------------
Other income (expense):
Interest expense (14,475) (16,020) (59,577) (48,505)
Investment income (loss) -
unconsolidated affiliates (21,850) 2,309 (31,392) 10,598
Other, net (1,026) (586) (2,307) 323
--------------------------------------------------------------------------
Total other expense (37,351) (14,297) (93,276) (37,584)
--------------------------------------------------------------------------
Income from continuing operations
before income taxes 15,462 49,324 13,954 100,097
Income taxes 5,021 18,037 3,622 37,012
--------------------------------------------------------------------------
Income from continuing operations 10,441 31,287 10,332 63,085
Discontinued operations:
Income from discontinued
operations (net of tax) 1,148 1,115 2,355 4,928
Net gain (loss) related to
divestiture of operations (net
of tax) (2,000) (773) (2,000) 11,029
--------------------------------------------------------------------------
Net income $9,589 $31,629 $10,687 $79,042
==========================================================================
Net income per common share:
Income from continuing
operations $0.47 $1.33 $0.45 $2.67
Discontinued operations (0.04) 0.01 0.02 0.68
------------------------------------
Net income $0.43 $1.34 $0.47 $3.35
====================================
Net income per common share -
assuming dilution:
Income from continuing
operations $0.47 $1.32 $0.45 $2.65
Discontinued operations (0.04) 0.01 0.02 0.67
------------------------------------
Net income $0.43 $1.33 $0.47 $3.32
====================================
--------------------------------------------------------------------------
Weighted-average common shares
outstanding:
Basic 22,168 23,610 22,656 23,597
Diluted 22,296 23,789 22,827 23,784
--------------------------------------------------------------------------
Media General, Inc.
BUSINESS SEGMENTS
(Unaudited, in Interactive
thousands) Publishing Broadcast Media Eliminations Total
--------------------------------------------------------------------------
Quarter Ended
December 30, 2007
Consolidated revenues $137,102 $99,365 $9,236 $(1,918) $243,785
==================================================
Segment operating cash
flow $32,647 $30,155 $(719) $62,083
Write-down of
investment (1,357) (1,357)
Depreciation and
amortization (6,043) (5,544) (522) (12,109)
---------------------------- ---------
Segment profit
(loss) $26,604 $24,611 $(2,598) 48,617
============================
Unallocated amounts:
Interest expense (14,475)
Equity in net loss
of unconsolidated
affiliates (21,850)
Acquisition
intangibles
amortization (4,206)
Corporate expense (8,537)
Gain on insurance
recovery 17,604
Other (1,691)
---------
Consolidated
income from
continuing
operations
before income
taxes $15,462
=========
Quarter Ended
December 31, 2006
Consolidated revenues $161,216 $122,802 $7,121 $(1,713) 289,426
==================================================
Segment operating cash
flow $42,114 $50,004 $(587) $91,531
Write-down of
investment (700) (700)
Depreciation and
amortization (5,820) (5,450) (432) (11,702)
-------------------------------- --------
Segment profit
(loss) $36,294 $44,554 $(1,719) 79,129
================================
Unallocated amounts:
Interest expense (16,020)
Equity in net income
of unconsolidated
affiliates 2,309
Acquisition
intangibles
amortization (4,619)
Corporate expense (8,113)
Other (3,362)
--------
Consolidated
income from
continuing
operations
before income
taxes $49,324
========
Twelve Months Ended
December 30, 2007
Consolidated revenues $544,757 $358,367 $36,181 $(7,124) $932,181
==================================================
Segment operating
cash flow $115,131 $91,587 $(941) $205,777
Net write-down of
investments (3,433) (3,433)
Depreciation and
amortization (25,095) (25,691) (1,852) (52,638)
-------------------------------- ---------
Segment profit
(loss) $90,036 $65,896 $(6,226) 149,706
================================
Unallocated amounts:
Interest expense (59,577)
Equity in net loss of
unconsolidated
affiliates (31,392)
Acquisition
intangibles
amortization (17,773)
Corporate expense (37,856)
Gain on insurance
recovery 17,604
Other (6,758)
Consolidated ---------
income from
continuing
operations
before income
taxes $13,954
=========
Twelve Months Ended
December 31, 2006
Consolidated revenues $601,144 $343,118 $27,113 $(6,518) $964,857
==================================================
Segment operating
cash flow $144,048 $115,304 $(1,629) $257,723
Write-down of
investment (700) (700)
Depreciation and
amortization (24,876) (19,936) (1,479) (46,291)
----------------------------- ---------
Segment profit
(loss) $119,172 $95,368 $(3,808) 210,732
=============================
Unallocated amounts:
Interest expense (48,505)
Equity in net income of
unconsolidated
affiliates 10,598
Acquisition intangibles
amortization (17,018)
Corporate expense (39,997)
Other (15,713)
---------
Consolidated income from continuing
operations before
income taxes $100,097
=========
Media General, Inc.
CONSOLIDATED BALANCE SHEETS
December 30, December 31,
(Unaudited, in thousands) 2007 2006
--------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $14,215 $11,929
Accounts receivable-net 137,397 136,930
Inventories 6,690 9,650
Other 53,860 41,092
Asset of discontinued operations 61,564 64,519
-----------------------------
Total current assets 273,726 264,120
-----------------------------
Investments in unconsolidated affiliates 52,360 84,854
Other assets 67,250 70,596
Property, plant and equipment - net 483,879 475,942
FCC licenses and other intangibles - net 668,792 686,157
Excess of cost over fair value of net
identifiable assets of acquired
businesses - net 925,059 923,559
-----------------------------
Total assets $2,471,066 $2,505,228
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $32,938 $34,039
Accrued expenses and other liabilities 103,500 91,972
Income taxes payable - 4,516
Liabilities of discontinued
operations 878 1,074
-----------------------------
Total current liabilities 137,316 131,601
-----------------------------
Long-term debt 897,572 916,320
Deferred income taxes 311,588 281,670
Other liabilities and deferred credits 211,583 238,277
Stockholders' equity(1) 913,007 937,360
-----------------------------
Total liabilities and stockholders' equity $2,471,066 $2,505,228
==========================================================================
(1) 2007 Includes a $4.9 million direct charge related to the adoption of
FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes -
an interpretation of FASB Statement No. 109.
Media General, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Years Ended
-----------------------------
December 30, December 31,
2007 2006
(Unaudited, in thousands) (52 weeks) (53 weeks)
-------------------------------------------------------------------------
Cash flows from operating activities:
Net income $10,687 $79,042
Adjustments to reconcile net
income:
Depreciation 53,109 47,791
Amortization 25,341 24,842
Deferred income taxes 16,289 11,176
Provision for doubtful accounts 5,929 5,660
Investment loss (income) -
unconsolidated affiliates 31,392 (10,598)
Insurance proceeds related to
repair costs 19,959 -
Gain on insurance recovery (17,604) -
Net loss (gain) related to
divestiture of discontinued
operations 2,000 (11,029)
Net write-down of investments 3,433 700
Change in assets and liabilities:
Retirement plan contributions - (15,000)
Retirement plan accrual 5,444 16,543
Income taxes payable (17,518) 711
Accounts payable, accrued
expenses and other liabilities (6,636) (1,699)
Other, net (996) 9,920
---------------------------
Net cash provided by operating activities 130,829 158,059
-------------------------------------------------------------------------
Cash flows from investing activities:
Capital expenditures (78,142) (93,896)
Purchases of businesses (2,525) (611,385)
Proceeds from sales of discontinued
operations - 135,111
Insurance proceeds related to
machinery and equipment 27,841 -
Distribution from unconsolidated
affiliate 5,000 2,000
Other, net 8,245 (2,853)
--------------------------
Net cash used by investing activities (39,581) (571,023)
-------------------------------------------------------------------------
Cash flows from financing activities:
Increase in debt 570,000 1,459,000
Repayment of debt (588,823) (1,027,984)
Stock repurchase (48,716) -
Debt issuance costs (1,010) (1,780)
Cash dividends paid (21,156) (21,180)
Other, net 743 1,861
---------------------------
Net cash (used) provided by financing
activities (88,962) 409,917
-------------------------------------------------------------------------
Net increase (decrease) in cash and
cash equivalents 2,286 (3,047)
Cash and cash equivalents at
beginning of year 11,929 14,976
---------------------------
Cash and cash equivalents at end of year $14,215 $11,929
=========================================================================
Media General, Inc.
EBITDA, After-tax Cash Flow, and Free Cash Flow
Fifty- Fifty-
Thirteen Fourteen Two Three
Weeks Weeks Weeks Weeks
Ending Ending Ending Ending
--------------------------------------
December December December December
(Unaudited, in thousands) 30, 2007 31, 2006 30, 2007 31, 2006
--------------------------------------------------------------------------
Income from continuing operations $10,441 $31,287 $10,332 $63,085
Interest 14,475 16,020 59,577 48,505
Taxes 5,021 18,037 3,622 37,012
Depreciation and amortization 17,460 17,545 75,235 68,409
--------------------------------------
EBITDA from continuing operations $47,397 $82,889 $148,766 $217,011
======================================
Income from continuing operations $10,441 $31,287 $10,332 $63,085
Depreciation and amortization 17,460 17,545 75,235 68,409
--------------------------------------
After-tax cash flow $27,901 $48,832 $85,567 $131,494
======================================
After-tax cash flow $27,901 $48,832 $85,567 $131,494
Capital expenditures 23,014 24,229 78,142 93,896
--------------------------------------
Free cash flow $4,887 $24,603 $7,425 $37,598
======================================
SOURCE Media General
