Meredith Delivers Strong Fiscal 2013 Second Quarter And First Half Results

  Meredith Delivers Strong Fiscal 2013 Second Quarter And First Half Results

Local Media Group Posts Record Revenue and Profit Performance

National Media Group Doubles Digital Advertising Revenues and Audience

PR Newswire

DES MOINES, Iowa, Jan. 24, 2013

DES MOINES, Iowa, Jan. 24, 2013 /PRNewswire/ -- Meredith Corporation (NYSE:
MDP; www.meredith.com), the leading media and marketing company serving
American women, today reported fiscal 2013 second quarter earnings per share
of $0.79, including a previously announced special charge of $0.10 per share.
Total Company revenues rose 10 percent to $361 million, including an 18
percent increase in advertising revenues to $217 million.

(Logo: http://photos.prnewswire.com/prnh/20090810/CG58830LOGO)

Excluding the special charge, earnings per share grew 27 percent from the
prior-year period to a record $0.89, and operating profit margin increased
more than a full percentage point to 18 percent. Information on the special
charge is available in Tables 1 and 2 of this press release.

"Our Local Media Group delivered record-setting revenue and operating profit
performance for the second quarter and the first half of fiscal 2013," said
Meredith Chairman and CEO Stephen M. Lacy. "Our digital business continued
its rapid growth, and our recent acquisitions again delivered strong
contributions. We once again delivered higher cash flow and returns to
shareholders, and we expect to continue to do so over time."

For the first six months of fiscal 2013, Meredith's earnings per share were
$1.34. Total Company revenues increased 9 percent to $715 million, including
a 15 percent increase in advertising revenues. Excluding the special charge,
earnings per share rose 22 percent from the prior-year period to $1.44.

Lacy noted the following business highlights achieved during the first half of
fiscal 2013:

  oLocal Media Group revenues grew nearly 30 percent to $198 million, a
    record high for a first half. Net political advertising revenues were a
    record $38 million. Operating profit grew nearly 90 percent to $72
    million. Excluding the special charge, operating profit grew more than 90
    percent to $74 million, and the Group's EBITDA margin was 43 percent, both
    record highs for a fiscal first half.
  oNational Media Group revenues grew 3 percent. Advertising revenues
    increased 9 percent, driven by the acquisitions of the Allrecipes.com,
    EveryDay with Rachael Ray and FamilyFun brands. Absent these recent
    acquisitions, advertising revenues were down 9 percent.
  oTotal Company digital advertising revenues nearly doubled, reaching a
    record high for a fiscal first half. National Media Group digital
    advertising revenues increased more than 110 percent, while Local Media
    Group digital advertising revenues rose approximately 15 percent.
  oConsumer engagement strengthened across all of Meredith's media
    platforms. Meredith magazine readership is at an all-time high of 116
    million, while several of Meredith's local television stations delivered
    strong performances during the November ratings period. Traffic to
    Meredith's websites rose approximately 85 percent to 40 million average
    monthly unique visitors.

Meredith remains strongly committed to a Total Shareholder Return (TSR)
financial strategy. Key elements of Meredith's TSR program include: (1) A
current annual dividend of $1.53 per share; (2) A $100 million share
repurchase program; and (3) Ongoing strategic investments to scale the
business and increase shareholder value over time.

OPERATING GROUP DETAIL

LOCAL MEDIA GROUP

Meredith's Local Media Group – which consists of local television affiliates,
many in fast-growing markets, and a video content creation unit that produces
national broadcast and custom programming – delivered record performance
during the second quarter and first half of fiscal 2013.

Fiscal 2013 second quarter Local Media Group operating profit grew 65 percent
from the prior-year period to $45 million. Revenues rose 32 percent to $111
million. Excluding the special charge, operating profit grew 70 percent to
$46 million and EBITDA margin was 47 percent. All were records for any
quarter in the Group's history. 

For the first six months of fiscal 2013, Local Media Group operating profit
grew nearly 90 percent from the prior-year period to $72 million. Revenues
rose 29 percent to $198 million. Excluding the special charge, operating
profit grew 93 percent to $74 million, and EBITDA margin was 43 percent. All
were records for a first half in the Group's history. 

Looking more closely at performance for the first half of fiscal 2013 compared
to the prior-year period:

  oNet political advertising revenues were a record $38 million. Performance
    was particularly strong at Meredith's stations in Las Vegas, Hartford and
    Phoenix.
  oNon-political advertising revenues were down slightly, as record demand
    for political advertising prior to the November 6 elections displaced
    non-political advertising. However, non-political advertising revenues
    rose 3 percent for the period following the election.
  oAutomotive, Meredith's largest non-political advertising category, rose 10
    percent.
  oOther revenues and operating expenses both increased, due primarily to
    growth in retransmission revenues from cable and satellite television
    operators, and programming fees paid to affiliated networks.
  oMeredith successfully renewed long-term affiliation agreements with CBS
    Corp. and Fox Broadcasting Co. 

Meredith's connection with viewers also strengthened in the important November
ratings period, and its stations in Hartford, Portland, Las Vegas and Saginaw
maintained their market leadership in news.

"We continued to excel at our goal of delivering compelling content to viewers
across broadcast, digital and mobile media platforms," said Local Media Group
President Paul Karpowicz. "At the same time, we did a great job monetizing
the strength of our audience, as local over-the-air television once again
demonstrated its unique ability to build brands and deliver unmatched results
for advertising clients."

NATIONAL MEDIA GROUP

Meredith's National Media Group includes leading national consumer media
brands delivered over multiple platforms that offer clients access to 100
million unduplicated American women every month – a reach unmatched in the
industry. It also features brand licensing activities and business-to-business
marketing products and services. Meredith continues to execute on a series of
strategic initiatives including growing its market share of magazine
advertising; expanding its digital footprint; and increasing revenues not
dependent on advertising.

Fiscal 2013 second quarter National Media Group revenues grew 2 percent
compared to the prior-year period to $249 million. Operating profit was $22
million, compared to $36 million. Excluding the special charge, operating
profit was $28 million.

For the first six months of fiscal 2013, National Media Group revenues grew 3
percent compared to the prior-year period to $516 million. Operating profit
was $52 million, compared to $72 million. Excluding the special charge,
operating profit was $57 million.

Operating profit declines in both periods were due primarily to lower
advertising revenues at comparable magazine titles, investments in digital and
circulation initiatives, and weaker performance at Meredith Xcelerated
Marketing.

Looking more closely at advertising performance for the first half of fiscal
2013 compared to the prior-year period:

  oTotal advertising revenues grew 9 percent compared to the year-ago
    period. Excluding recent acquisitions, total advertising revenues
    declined 9 percent.
  oThe food and beverage, retail, and media and entertainment categories were
    stronger in Meredith's titles. The direct response and financial
    categories were weaker.
  oMeredith's share of total magazine advertising revenues grew to 11.0
    percent from 10.3 percent, according to the most recent data by Publishers
    Information Bureau. The average net revenue per magazine page also rose 2
    percent.
  oDigital advertising revenues grew more than 110 percent, boosted by the
    addition of Allrecipes.com. Excluding recent acquisitions, digital
    advertising revenues grew almost 15 percent.

The Meredith Sales Guarantee demonstrates quantitatively that advertising in
Meredith magazines increases retail sales. Currently, 13 consumer brands are
participating in the program.

Circulation revenues grew 9 percent in the first half of fiscal 2013 compared
to the prior-year period, and were down 2 percent excluding the recent
acquisitions. Meredith generated more than 2 million digital orders for print
magazine subscriptions in the first half of fiscal 2013, up nearly 60 percent
from what was generated in the prior-year period.

Meredith's connection to consumers strengthened as well. Readership for
Meredith's magazines stands at a record 116 million, according to the most
recent data from Mediamark Research and Intelligence. Digital traffic more
than doubled to nearly 35 million average unique visitors in the first half of
fiscal 2013, driven primarily by the acquisition of Allrecipes.com – along
with aggressive digital marketing initiatives.

"We continue to develop multi-platform capabilities for our consumers and
clients, deliver innovative sales programs – such as the Meredith Sales
Guarantee – and grow the scale of our digital properties," said National Media
Group President Tom Harty. "As a result, we are growing our consumer
connection; increasing our advertising market share; and our digital
activities are performing at record levels."

Other revenues were $121 million in the first half of fiscal 2013, compared to
$141 million in the prior-year period. This was due primarily to performance
at Meredith Xcelerated Marketing which, as previously communicated,
experienced reductions in programs from certain clients in calendar 2012.
However, the pipeline for new business is strong, and Meredith expects growth
for Meredith Xcelerated Marketing in calendar 2013 when compared to the prior
year. Notably, Meredith Xcelerated Marketing recently secured several new
accounts – including United Healthcare and Bank of America – along with
expansions of its significant business with Chrysler. 

OTHER FINANCIAL INFORMATION

Consistent with its Total Shareholder Return strategy, Meredith repurchased
750,000 shares of Company stock in the first half of fiscal 2013. At December
31, 2012, $62 million remained under the current repurchase authorization.

Total debt was $365 million at December 31, 2012. Meredith's debt-to-EBITDA
ratio was 1.5 to 1 for the 12 months ended December 31, 2012, and the weighted
average interest rate was 3.5 percent at December 31, 2012.

Fiscal 2013 first half total Company expenses increased 9 percent; however
they declined 1 percent excluding the recent acquisitions, reflecting ongoing
cost-management initiatives. 

Cash flow from operations increased in the first half of fiscal 2013 compared
to the prior-year period, and totaled approximately $195 million for the 12
months ended December 31, 2012.

All earnings per share figures in the text of this release are diluted. Both
basic and diluted earnings per share can be found in the attached Condensed
Consolidated Statements of Earnings.

OUTLOOK

Meredith expects fiscal 2013 third quarter earnings per share to range from
$0.65 to $0.70. Looking more closely at the third quarter of fiscal 2013
compared to the year-ago period:

  oTotal Local Media Group revenues are expected to increase in the
    high-single digits. Non-political advertising revenues are expected to be
    flat to up slightly.
  oNational Media Group advertising revenues are expected to be up in the
    mid-single digits including recent acquisitions, and down in the
    low-single digits on a comparable basis.

Meredith also reconfirms its original full fiscal year 2013 earnings per share
expectation of $2.60 to $2.95, excluding the special charge.

A number of uncertainties remain that may affect Meredith's outlook as stated
in this press release for the third quarter and full year fiscal 2013. These
and other uncertainties are referenced below under "Safe Harbor" and in
certain filings with the U.S. Securities and Exchange Commission.

CONFERENCE CALL WEBCAST

Meredith will host a conference call on January 24, 2013 at 11 a.m. ET to
discuss fiscal 2013 second quarter results. A live webcast will be accessible
to the public on the Company's website, www.meredith.com, and a replay will be
available for two weeks. A transcript will be available within 48 hours of
the call at www.meredith.com.

RATIONALE FOR USE AND ACCESS TO NON-GAAP RESULTS

Management uses and presents GAAP and non-GAAP results to evaluate and
communicate the performance of the Company. Non-GAAP measures should not be
construed as alternatives to GAAP measures. EBITDA is a common supplemental
measure of performance used by investors and financial analysts. Management
believes that EBITDA provides an additional analytical tool to clarify the
Company's results from core operations and delineate underlying trends.
Meredith does not use EBITDA as a measure of liquidity or funds available for
management's discretionary use because they include certain contractual and
non-discretionary expenditures.

Results excluding recent acquisitions (Allrecipes.com, EveryDay with Rachael
Ray and FamilyFun) and the special charge recorded in the second quarter of
fiscal 2013 are supplemental non-GAAP financial measures. While these
adjusted results are not a substitute for reported results under GAAP,
management believes this information is useful as an aid in better
understanding Meredith's current performance, performance trends and financial
condition. Reconciliations of non-GAAP to GAAP measures are attached to this
press release and will be made available at www.meredith.com.

SAFE HARBOR

This release contains certain forward-looking statements that are subject to
risks and uncertainties. These statements are based on management's current
knowledge and estimates of factors affecting the Company and its operations.
Statements in this announcement that are forward-looking include, but are not
limited to, the statements regarding advertising revenues, along with the
Company's revenue and earnings per share outlook for the third quarter and
full year fiscal 2013.

Actual results may differ materially from those currently anticipated.
Factors that could adversely affect future results include, but are not
limited to, downturns in national and/or local economies; a softening of the
domestic advertising market; world, national or local events that could
disrupt broadcast television; increased consolidation among major advertisers
or other events depressing the level of advertising spending; the unexpected
loss or insolvency of one or more major clients; the integration of acquired
businesses; changes in consumer reading, purchasing and/or television viewing
patterns; increases in paper, postage, printing, syndicated programming or
other costs; changes in television network affiliation agreements;
technological developments affecting products or methods of distribution;
changes in government regulations affecting the Company's industries;
increases in interest rates; and the consequences of acquisitions and/or
dispositions. The Company undertakes no obligation to update any
forward-looking statement, whether as a result of new information, future
events or otherwise.

ABOUT MEREDITH CORPORATION

Meredith Corporation (NYSE: MDP; www.meredith.com) is the leading media and
marketing company serving American women. Meredith features multiple
well-known national brands – including Better Homes and Gardens, Parents,
Family Circle, Allrecipes.com, Ladies' Home Journal, Fitness, More, American
Baby, EveryDay with Rachael Ray and FamilyFun – along with local television
brands in fast-growing markets. Meredith is the industry leader in creating
content in key consumer interest areas such as home, family, food, health and
wellness and self-development. Meredith uses multiple distribution platforms –
including print, television, digital, mobile, tablets, and video – to give
consumers content they desire and to deliver the messages of its advertising
and marketing partners.

Additionally, Meredith uses its many assets to create powerful custom
marketing solutions for many of the nation's top brands and companies.
Meredith Xcelerated Marketing has significantly added to its capabilities in
recent years through the acquisition of cutting-edge companies in digital,
mobile, social, healthcare, database, and international marketing.

A hallmark of Meredith's business model and financial profile is its ability
to consistently generate substantial free cash flow by leveraging the strength
of its multi-platform portfolio. Meredith is committed to increasing Total
Shareholder Return through dividend payments, share repurchases and strategic
business investments. Meredith has paid a dividend for 65 straight years and
increased its dividend for 19 consecutive years. Meredith currently pays an
annual dividend of $1.53 per share, resulting in a dividend yield of
approximately 5 percent.



Meredith Corporation and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
                        Three Months                Six Months
Periods ended December  2012          2011          2012          2011
31,
(In thousands except
per share data)
Revenues
Advertising            $  217,094   $  183,636   $  424,216   $  367,953
Circulation             67,398        63,902        142,887       130,491
All other               76,103        81,179        147,649       158,182
Total revenues          360,595       328,717       714,752       656,626
Operating expenses
Production,
distribution, and       134,117       128,412       274,728       265,303
editorial
Selling, general, and   158,058       134,940       314,372       277,905
administrative
Depreciation and        10,967        10,505        22,894        20,337
amortization
Total operating         303,142       273,857       611,994       563,545
expenses
Income from operations  57,453        54,860        102,758       93,081
Interest expense, net   (3,316)       (2,897)       (7,002)       (5,616)
Earnings before income  54,137        51,963        95,756        87,465
taxes
Income taxes            (18,566)      (20,369)      (35,330)      (34,244)
Net earnings            $   35,571  $   31,594  $   60,426  $   53,221
Basic earnings per      $         $         $         $    
share                   0.80         0.70         1.36         1.18
Basic average shares    44,409        44,838        44,451        44,923
outstanding
Diluted earnings per    $         $         $         $    
share                   0.79         0.70         1.34         1.18
Diluted average shares  44,936        45,044        44,989        45,115
outstanding
Dividends paid per      $   0.3825  $   0.3825  $   0.7650  $   0.6375
share





Meredith Corporation and Subsidiaries
Segment Information (Unaudited)
                                Three Months            Six Months
Periods ended December 31,     2012        2011        2012        2011
(In thousands)
Revenues
National media
Advertising                     $ 120,133   $ 107,180   $ 252,797   $ 231,637
Circulation                     67,398      63,902      142,887     130,491
Other revenues                  61,905      73,233      120,722     140,799
Total national media            249,436     244,315     516,406     502,927
Local media
Non-political advertising       71,255      75,382      133,501     134,659
Political advertising           25,706      1,074       37,918      1,657
Other revenues                  14,198      7,946       26,927      17,383
Total local media               111,159     84,402      198,346     153,699
Total revenues                  $ 360,595   $ 328,717   $ 714,752   $ 656,626
Operating profit
National media                  $ 22,177   $ 35,797   $ 51,601   $ 71,801
Local media                     44,711      27,156      72,355      38,213
Unallocated corporate          (9,435)     (8,093)     (21,198)    (16,933)
Income from operations          $ 57,453   $ 54,860   $ 102,758   $ 93,081
Depreciation and amortization
National media                  $  4,475  $  3,832  $  9,865  $  7,193
Local media                     6,070       6,175       12,172      12,164
Unallocated corporate          422         498         857         980
Total depreciation and          $ 10,967   $ 10,505   $ 22,894   $ 20,337
amortization
EBITDA^1
National media                  $ 26,652   $ 39,629   $ 61,466   $ 78,994
Local media                     50,781      33,331      84,527      50,377
Unallocated corporate          (9,013)     (7,595)     (20,341)    (15,953)
Total EBITDA^1                  $ 68,420   $ 65,365   $ 125,652   $ 113,418
^1 EBITDA is net earnings before interest, taxes, depreciation, and
amortization.





Meredith Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
                                           December 31,        June 30,
Assets                                     2012                   2012
(In thousands)
Current assets
Cash and cash equivalents                  $       24,714  $   25,820
Accounts receivable, net                   222,772                215,526
Inventories                                24,937                 22,559
Current portion of subscription            89,436                 75,446
acquisition costs
Current portion of broadcast rights        6,753                  3,408
Other current assets                       21,084                 16,677
Total current assets                       389,696                359,436
Property, plant, and equipment             458,673                455,271
Less accumulated depreciation              (268,081)              (260,967)
Net property, plant, and equipment         190,592                194,304
Subscription acquisition costs             90,989                 75,368
Broadcast rights                           2,711                  943
Other assets                               66,813                 66,858
Intangible assets, net                     581,922                586,263
Goodwill                                   733,208                733,127
Total assets                               $     2,055,931    $ 2,016,299
Liabilities and Shareholders' Equity
Current liabilities
Current portion of long-term debt          $       50,000  $  105,000
Current portion of long-term broadcast     9,619                  6,752
rights payable
Accounts payable                           48,048                 72,911
Accrued expenses and other liabilities     131,864                117,071
Current portion of unearned subscription   190,997                180,852
revenues
Total current liabilities                  430,528                482,586
Long-term debt                             315,000                275,000
Long-term broadcast rights payable         4,468                  3,695
Unearned subscription revenues             155,640                141,408
Deferred income taxes                      223,534                204,054
Other noncurrent liabilities               109,409                112,111
Total liabilities                          1,238,579              1,218,854
Shareholders' equity
Common stock                               36,018                 35,791
Class B stock                              8,348                  8,716
Additional paid-in capital                 47,176                 53,275
Retained earnings                          748,197                722,778
Accumulated other comprehensive loss       (22,387)               (23,115)
Total shareholders' equity                 817,352                797,445
Total liabilities and shareholders' equity $     2,055,931    $ 2,016,299





Meredith Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Six months ended December 31,                       2012      2011
(In thousands)
Net cash provided by operating activities            $ 80,383  $ 68,747
Cash flows from investing activities
Acquisitions of businesses                          (6,047)   (55,548)
Additions to property, plant, and equipment         (13,659)  (26,621)
Other                                                -         (1,563)
Net cash used in investing activities               (19,706)  (83,732)
Cash flows from financing activities
Proceeds from issuance of long-term debt             40,000    85,000
Repayments of long-term debt                        (55,000)  (30,000)
Dividends paid                                      (34,129)  (28,722)
Purchases of Company stock                          (25,471)  (15,311)
Proceeds from common stock issued                   12,067    2,332
Excess tax benefits from share-based payments       1,519     83
Other                                                (769)     -
Net cash provided by (used in) financing activities (61,783)  13,382
Net decrease in cash and cash equivalents           (1,106)   (1,603)
Cash and cash equivalents at beginning of period     25,820    27,721
Cash and cash equivalents at end of period           $ 24,714  $ 26,118





Meredith Corporation and Subsidiaries                                  Table 1
Supplemental Disclosures Regarding Non-GAAP Financial Measures
Special Items - The following table shows results of operations excluding
special items and as reported with the difference being the special items.
Results of operations excluding special items are non-GAAP measures.
Management's rationale for presenting non-GAAP measures is included in the text
of this earnings release.
Periods Ended
December 31,   Three Months                    Six Months
2012
               Excluding  Special     As        Excluding  Special     As
               Special    Items       Reported  Special    Items       Reported
               Items                            Items
(In thousands
except per
share data)
Revenues
Advertising   $ 217,094  $        $         $ 424,216  $        $
                           -         217,094               -         424,216
Circulation    67,398     -           67,398    142,887    -           142,887
All other      76,103     -           76,103    147,649    -           147,649
Total revenues 360,595    -           360,595   714,752    -           714,752
Operating
expenses
Production,
distribution,  134,117    -           134,117   274,728    -           274,728
and editorial
Selling,
general, and   151,015    7,043   (a) 158,058   307,329    7,043   (a) 314,372
administrative
Depreciation
and            10,967     -           10,967    22,894     -           22,894
amortization
Total
operating      296,099    7,043       303,142   604,951    7,043       611,994
expenses
Income from    64,496     (7,043)     57,453    109,801    (7,043)     102,758
operations
Interest       (3,316)    -           (3,316)   (7,002)    -           (7,002)
expense, net
Earnings
before income  61,180     (7,043)     54,137    102,799    (7,043)     95,756
taxes
Income taxes   (21,278)   2,712       (18,566)  (38,042)   2,712       (35,330)
Net earnings   $         $           $         $         $           $
               39,902     (4,331)     35,571   64,757     (4,331)     60,426
Basic earnings $       $          $       $        $          $  
per share      0.90       (0.10)     0.80     1.46      (0.10)      1.36
Basic average
shares         44,409     44,409      44,409    44,451     44,451      44,451
outstanding
Diluted        $       $          $       $        $          $  
earnings per   0.89       (0.10)     0.79     1.44      (0.10)      1.34
share
Diluted
average shares 44,936     44,936      44,936    44,989     44,989      44,989
outstanding

    Severance costs of $7.4 million and vacated lease accruals of $0.4 million
(a) partially offset by a $0.8 million reduction in previously accrued
    restructuring charges





Meredith Corporation and Subsidiaries                                  Table 2
Supplemental Disclosures Regarding Non-GAAP Financial Measures
Special Items - The following table shows results of operations excluding
special items and as reported with the difference being the special items.
Results of operations excluding special items are non-GAAP measures.
Management's rationale for presenting non-GAAP measures is included in the text
of this earnings release.
Periods Ended
December 31,  Three Months                     Six Months
2012
              Excluding  Special      As        Excluding  Special      As
              Special    Items        Reported  Special    Items        Reported
              Items                             Items
(In
thousands)
Revenues
National
media group
Advertising   $ 120,133  $         $         $ 252,797  $         $
                         -           120,133              -           252,797
Circulation   67,398     -            67,398    142,887    -            142,887
Other         61,905     -            61,905    120,722    -            120,722
revenues
Total
national      249,436    -            249,436   516,406    -            516,406
media group
Local media
group
Non-political 71,255     -            71,255    133,501    -            133,501
advertising
Political     25,706     -            25,706    37,918     -            37,918
advertising
Other         14,198     -            14,198    26,927     -            26,927
revenues
Total local   111,159    -            111,159   198,346    -            198,346
media group
Total         $ 360,595  $         $         $ 714,752  $         $
revenues                 -           360,595               -         714,752
Operating
profit
National      $         $(5,548) (a) $         $         $(5,548) (a) $
media group   27,725                  22,177   57,149                  51,601
Local media   46,206     (1,495)  (b) 44,711    73,850     (1,495)  (b) 72,355
group
Unallocated   (9,435)    -            (9,435)   (21,198)                (21,198)
corporate
Income from   $         $(7,043)     $         $ 109,801  $(7,043)     $
operations    64,496                  57,453                           102,758
Depreciation
and
amortization
National      $        $         $        $        $         $ 
media group   4,475      -           4,475    9,865      -           9,865
Local media   6,070      -            6,070     12,172     -            12,172
group
Unallocated   422        -            422       857        -            857
corporate
Total
depreciation  $         $         $         $         $         $
and           10,967     -           10,967   22,894      -          22,894
amortization
EBITDA^1
National      $         $(5,548) (a) $         $         $(5,548) (a) $
media group   32,200                  26,652   67,014                  61,466
Local media   52,276     (1,495)  (b) 50,781    86,022     (1,495)  (b) 84,527
group
Unallocated   (9,013)    -            (9,013)   (20,341)   -            (20,341)
corporate
Total         $         $(7,043)     $         $ 132,695  $(7,043)     $
EBITDA^1      75,463                  68,420                           125,652

^1 EBITDA is net earnings before interest, taxes, depreciation, and
amortization.
     Severance costs of $5.9 million and a vacated lease accrual of $0.4
(a)  million partially offset by a $0.8 million reduction in previously
     accruedrestructuring charges
(b) Severance costs of $1.5 million





Meredith Corporation and Subsidiaries                                            Table 3

Supplemental Disclosures Regarding Non-GAAP Financial Measures
EBITDA
Consolidated EBITDA, which is reconciled to net earnings in the following tables, is
defined as net earnings before interest, taxes, depreciation, and amortization.
Segment EBITDA is a measure of segment earnings before depreciation and amortization.
Segment EBITDA margin is defined as segment EBITDA divided by segment revenues.
             Three months ended December 31, 2012   Six months ended December 31, 2012
             National Local   Unallocated Total     National Local   Unallocated Total
             Media    Media   Corporate             Media    Media   Corporate
(In
thousands)
Revenues     $        $       $      $         $        $       $      $
             249,436  111,159  -        360,595   516,406  198,346  -        714,752
Operating    $        $       $         $         $        $       $         $
profit       22,177  44,711 (9,435)    57,453   51,601  72,355 (21,198)    102,758
Depreciation
and          4,475    6,070   422         10,967    9,865    12,172  857         22,894
amortization
EBITDA       $        $       $         68,420    $        $       $         125,652
             26,652  50,781 (9,013)              61,466  84,527 (20,341)
Less:
Depreciation
and                                       (10,967)                               (22,894)
amortization
Net interest                              (3,316)                                (7,002)
expense
Income taxes                              (18,566)                               (35,330)
Net earnings                              $                                      $
                                          35,571                                60,426
Segment
EBITDA       10.7%    45.7%                         11.9%    42.6%
margin
             Three months ended December 31, 2011   Six months ended December 31, 2011
             National Local   Unallocated Total     National Local   Unallocated Total
             Media    Media   Corporate             Media    Media   Corporate
(In
thousands)
Revenues     $        $       $      $         $        $       $      $
             244,315  84,402  -        328,717   502,927  153,699  -        656,626
Operating    $        $       $         $         $        $       $         $
profit       35,797  27,156 (8,093)    54,860   71,801  38,213 (16,933)    93,081
Depreciation
and          3,832    6,175   498         10,505    7,193    12,164  980         20,337
amortization
EBITDA       $        $       $         65,365    $        $       $         113,418
             39,629  33,331 (7,595)              78,994  50,377 (15,953)
Less:
Depreciation
and                                       (10,505)                               (20,337)
amortization
Net interest                              (2,897)                                (5,616)
expense
Income taxes                              (20,369)                               (34,244)
Net earnings                              $                                      $
                                          31,594                                53,221
Segment
EBITDA       16.2%    39.5%                         15.7%    32.8%
margin





Meredith Corporation and Subsidiaries                                Table 4
Supplemental Disclosures Regarding Non-GAAP Financial Measures
Six months ended December 31,             2012           2011         Change
National Media Advertising Revenues
Excluding recent acquisitions ^1          $ 209,429      $ 229,254    (9)%
Recent acquisitions ^1                    43,368         2,383
Total                                    $ 252,797      $ 231,637    9 %
National Media Circulation Revenues
Excluding recent acquisitions ^1          $ 126,132      $ 128,524    (2)%
Recent acquisitions ^1                    16,755         1,967
Total                                    $ 142,887      $ 130,491    9 %
National Media Digital Advertising
Revenues
Excluding recent acquisitions ^1          $ 22,498      $ 19,776    14 %
Recent acquisitions ^1                    19,859         168
Total                                    $ 42,357      $ 19,944    112 %
Total Company Operating Expenses
Excluding recent acquisitions ^1          $ 554,779      $ 559,487    (1)%
Recent acquisitions ^1                    57,215         4,058
Total                                    $ 611,994      $ 563,545    9 %
^1 Recent acquisitions represent EveryDay with Rachael Ray, FamilyFun, and
Allrecipes.com



SOURCE Meredith Corporation

Website: http://www.meredith.com
Contact: Shareholder/Financial Analyst, Mike Lovell, Director of Investor
Relations, +1-515-284-3622, Mike.Lovell@Meredith.com, or Media, Art Slusark,
Chief Communications Officer, +1-515-284-3404, Art.Slusark@Meredith.com