Media General Reports Fourth-Quarter 2012 Results

              Media General Reports Fourth-Quarter 2012 Results

-- Revenues of $108.7 million increased 40%

-- Operating income of $42.3 million increased more than 2.5 times from prior
year

-- Net income was $17.6 million, or 62 cents per share

-- Broadcast Cash Flow totaled $50.4 million

PR Newswire

RICHMOND, Va., Jan. 31, 2013

RICHMOND, Va., Jan. 31, 2013 /PRNewswire/ --Media General, Inc. (NYSE: MEG),
a broadcast television and digital media company, today reported
fourth-quarter 2012 operating income of $42.3 million, more than 2.5 times
greater than fourth-quarter 2011 operating income of $16.3 million. Net income
in the fourth quarter was $17.6 million, or 62 cents per share, compared with
a net loss of $3.3 million, or 15 cents per share, in the prior year.

George L. Mahoney, president and chief executive officer of Media General,
said, "Media General had an exceptional fourth quarter, marked by 40% revenue
growth. Record Political advertising was $30 million. Core Local and
National advertising revenues, excluding Political, increased 4%. Media
General was particularly well positioned to maximize Political advertising
opportunities, with six of our stations located in four of the key
battleground states. Broadcast cash flow in the fourth quarter was $50.4
million, with a margin of 46%," said Mr. Mahoney.

Starting with the full-year 2013, Media General's fiscal year will be a
conventional calendar year (Jan. 1 – Dec. 31). Previously, the company's
fiscal year ended on the last Sunday in December, a newspaper industry
practice. Fiscal year 2012 began on December 26, 2011 and ended on December
31, 2012. Fiscal year 2011 began on December 27, 2010 and ended on December
25, 2011.

Total revenues in the fourth quarter of 2012 were $108.7 million compared with
$77.9 million in the prior year. Local gross time sales increased 5.3% to
$50.7 million. National gross time sales grew 1.4% to $25.2 million. The
largest advertising category, automotive, increased 21%. Other key categories
with strong growth in the quarter included entertainment, home improvement and
furniture.

Cable and satellite retransmission fees rose 84.3% to $9.9 million, as a
result of contract renewals in late 2011 that included higher rates. Digital
revenues increased 18.8% to $2.7 million, driven primarily by Local
advertising, which grew 16%.

Higher station operating costs in the fourth quarter reflected an increase in
commissions from the strong revenue performance, higher NBC affiliate fees, a
five-day furlough repayment in December 2012, and prior-year savings of nearly
$2 million from a companywide furlough program.

Corporate expense of $101,000 in the fourth quarter compared with $9.6 million
last year, and included two large non-recurring gains in the current quarter.
The gains included a non-cash curtailment of more than $2 million resulting
from former newspaper employees leaving the company's post-retirement plans,
and a $5 million non-cash gain resulting from outsourcing disability coverage
for substantially all Medicare eligible participants to a third party.

Total interest expense in the fourth quarter was $21 million, compared with
$14.6 million last year. In the current quarter, cash interest paid was $16.7
million, non-cash interest expense was $2.6 million, and accrued but not paid
cash interest was $1.7 million.

Noncash tax expense was $3.4 million in the fourth quarter, compared with $6.2
million in the prior year. The lower tax expense was primarily due to the
absence of an intraperiod tax allocation made between continuing operations
and Other Comprehensive Income that was recorded in the fourth quarter of last
year.

EBITDA from continuing operations (income before interest, debt modification
and extinguishment costs, taxes, and depreciation and amortization) was $48.1
million, compared with $23.8 millionin the 2011 period.

Media General provides the non-GAAP financial metrics: Broadcast cash flow,
EBITDA from continuing operations, After-tax cash flow from continuing
operations, and Free cash flow. The company believes these metrics are
alternative measures used in peer comparison and by lenders, investors,
financial analysts and rating agencies 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 a conference call with financial analysts today at 2:30
p.m. ET. To dial in to the call, listeners may call 866-831-6234 about 10
minutes prior to the 2:30 p.m. start. The participant passcode is "Media
General."

Listeners may also access a live webcast by logging on to
www.mediageneral.comand clicking on the "Live Webcast" link on the homepage
about 10 minutes in advance. A replay of the webcast will be available online
at www.mediageneral.combeginning at 3:30 p.m. today. A telephone replay will
also be available, beginning at 1:00 p.m. on February 1, 2013, and ending at
11:59 p.m. on February 8, 2013, by dialing 888-286-8010 or 617-801-6888 and
using the passcode 57846918.

2012 Financial Statements

Media General will issue its 2012 audited financial statements, including
footnotes, on its website www.mediageneral.com, following the close of the
stock market today. A link to the statements will be posted prominently on the
website's home page.

About Media General
Media General is a leading provider of news, information and entertainment
across 18 network-affiliated broadcast television stations and their
associated digital media and mobile platforms. The company's stations serve
consumers and advertisers in strong local markets, primarily in the Southeast.
Media General's network affiliates include eight NBC stations, eight CBS
stations, one ABC station and one CW station. Six of the company's stations
operate in the Top 40 markets in the United States. Media General's stations
reach more than one-third of TV households in the Southeast and more than 8
percent of U.S. TV households. Media General entered the television business
in 1955 when it launched WFLA-TV in Tampa, Florida, as an NBC affiliate.
Today, WFLA is the company's largest TV station, operating in the 14th largest
DMA in the United States.

Contact Media General

Additional information about Media General is available on its website
www.mediageneral.com or by contacting Lou Anne J. Nabhan, Vice
President-Corporate Communications, at (804) 887-5120 or
lnabhan@mediageneral.com.

Media General, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
                          Fourteen      Thirteen     Fifty-Three    Fifty-Two
                          Weeks         Weeks        Weeks          Weeks

                          Ending       Ending       Ending        Ending
                          December      December     December 31,   December
                          31,           25,                         25,
(Unaudited, in thousands  2012          2011         2012           2011
except per share amounts)
Station revenue (less     $        $        $        $    
agency commissions)       108,658                  359,722      
                                        77,881                     280,611
Operating costs:
    Station production    33,637        25,483       125,996        111,586
    expenses
    Station selling,
    general, and          24,762        19,618       88,235         80,472
    administrative
    expenses
    Corporate and other   101           9,581        31,705         33,651
    expenses
    Depreciation and      5,298         5,630        22,422         23,029
    software amortization
    Amortization of       441           1,313        2,637          5,253
    intangible assets
    Loss (gain) related   2,094         (23)         2,062          213
    to fixed assets, net
          Total operating 66,333        61,602       273,057        254,204
          costs
Operating income          42,325        16,279       86,665         26,407
Other income (expense):
    Interest expense      (10,155)      (14,616)     (51,566)       (64,403)
    Interest expense -    (10,851)      ---          (26,468)       ---
    related party
    Debt modification and ---           ---          (35,415)       ---
    extinguishment costs
    Other, net            6             593          458            1,281
          Total other     (21,000)      (14,023)     (112,991)      (63,122)
          expense
Income (loss) from
continuing operations     21,325        2,256        (26,326)       (36,715)
before income taxes
Income tax expense        3,408         6,217        13,631         12,218
Income (loss) from        17,917        (3,961)      (39,957)       (48,933)
continuing operations
Discontinued operations:
    Income (loss) from
    discontinued          (682)         657          (11,270)       (25,389)
    operations (net of
    tax)
    Loss related to
    divestiture of
    discontinued          401           ---          (142,190)      ---
    operations (net of
    tax)
                          $        $        $        $    
Net income (loss)          17,636                (193,417)     
                                        (3,304)                     (74,322)
Net income (loss) per
common share - basic and
diluted (1):
    Income (loss) from    $        $        $        $    
    continuing operations    0.63                          
                                        (0.18)       (1.68)         (2.18)
    Discontinued          (0.01)        0.03         (6.47)         (1.13)
    operations
Net income (loss) per     $        $        $        $    
common share - basic and     0.62                          
diluted                                 (0.15)       (8.15)         (3.31)
Weighted-average common
shares outstanding:
    Basic and diluted    27,266        22,505       23,744         22,478
    For earnings per share purposes, shares under the Performance Accelerated
(1) Restricted Stock (PARS) and Deferred Stock Units (DSU) plans are
    considered to participate equally with common shareholders in the
    Company's earnings. For the fourteen weeks ending December 31, 2012, this
    reduced both the income from continuing operations per share and the net
    income per share by $0.03.



Media General, Inc.
CONSOLIDATED BALANCE SHEETS
                                          December 31,      December 25,
(Unaudited, in thousands)                 2012              2011
ASSETS
Current assets:
      Cash and cash equivalents           $            $      
                                          36,802           23,108
      Accounts receivable - net           58,486            58,587
      Other                               18,493            17,424
      Assets of discontinued operations   670               331,784
              Total current assets       114,451           430,903
Other assets                              45,462            28,277
Property, plant and equipment - net       166,105           176,821
Goodwill and other intangibles - net     447,403           450,040
Total assets                              $             $    1,086,041
                                          773,421
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current liabilities:
      Accounts payable                    $            $      
                                          11,669           16,527
      Accrued expenses and other          64,362            46,472
      liabilities
      Liabilities of discontinued         467               38,716
      operations
              Total current liabilities  76,498            101,715
Long-term debt                            295,721           658,199
Long-term debt - related party            257,466           -
Retirement, postretirement, and           242,309           223,132
postemployment plans
Deferred income taxes                     58,865            45,954
Other liabilities and deferred credits    18,786            23,088
Stockholders' equity (deficit)            (176,224)         33,953
Total liabilities and stockholders'       $             $    1,086,041
equity (deficit)                          773,421



SUPPLEMENTAL INFORMATION
Media General, Inc.
Selected Revenue Categories
                    Fourteen  Thirteen          Fifty-Three  Fifty-Two
                    Weeks     Weeks             Weeks        Weeks

                    Ending    Ending           Ending      Ending
                    December December          December    December
                    31,       25,              31,          25,
(Unaudited, in      2012      2011      %       2012         2011       %
thousands)                              Change                          Change
                    $     $             $       $    
Local (gross)                48,112  5.3 %     187,346  176,652 6.1 %
                    50,656
National (gross)    25,195    24,848    1.4 %   94,504       88,634     6.6 %
Political           30,474    3,607     ---     63,698       5,714      ---
Cable/Satellite
(retransmission)    9,944     5,396     84.3 %  37,662       21,367     76.3 %
fees
Digital (local      2,721     2,290     18.8 %  9,899        8,361      18.4 %
website revenues)
Broadcast Cash Flow
                    Fourteen  Thirteen          Fifty-Three  Fifty-Two
                    Weeks     Weeks             Weeks Ending Weeks
                    Ending    Ending                         Ending
                    December December          December    December
                    31,       25,              31,          25,
(Unaudited, in      2012      2011              2012         2011
thousands)
                    $     $             $       $    
Operating income             16,279                     
                    42,325                     86,665      26,407
Add:
 Corporate and     101       9,581             31,705       33,651
other expenses
 Depreciation and
software            5,298     5,630             22,422       23,029
amortization
 Amortization of   441       1,313             2,637        5,253
intangible assets
 Loss (gain)
related to fixed    2,094     (23)              2,062        213
assets, net
 Amortization of
broadcast film      2,984     2,566             10,738       16,298
rights
Less:
 Payments for
broadcast film      2,839     2,521             10,493       15,925
rights
                    $     $             $       $    
Broadcast cash flow          32,825            145,736  
                    50,404                                  88,926



SUPPLEMENTAL INFORMATION
Media General, Inc.
EBITDA, After-tax Cash Flow, and Free Cash Flow
                           Fourteen     Thirteen    Fifty-Three   Fifty-Two
                           Weeks        Weeks       Weeks         Weeks

                           Ending      Ending      Ending       Ending
                           December     December    December 31, December 25,
                           31,         25,
(Unaudited, in thousands)  2012         2011        2012          2011
Income (loss) from         $       $       $       $    
continuing operations      17,917       (3,961)    (39,957)      (48,933)
Interest                   21,006       14,616      78,034        64,403
Debt modification and      -            -           35,415        -
extinguishment costs
Depreciation and software  5,298        5,630       22,422        23,029
amortization
Amortization of intangible 441          1,313       2,637         5,253
assets
Taxes                      3,408        6,217       13,631        12,218
EBITDA from continuing     $       $       $        $     
operations                 48,070       23,815     112,182      55,970
Income (loss) from         $       $       $       $    
continuing operations      17,917       (3,961)    (39,957)      (48,933)
Taxes *                    3,408        6,217       13,631        12,218
Depreciation and software  5,298        5,630       22,422        23,029
amortization
Amortization of intangible 441          1,313       2,637         5,253
assets
After-tax cash flow from   $       $      $       $     
continuing operations      27,064      9,199       (1,267)     (8,433)
After-tax cash flow from   $       $      $       $     
continuing operations      27,064      9,199       (1,267)     (8,433)
Capital expenditures       10,623       3,372       17,886        19,053
Free cash flow            $       $      $       $    
                           16,441      5,827      (19,153)     (27,486)
*        The Company's income taxes are non-cash in nature and have been added
         back accordingly.
         See 2011 Form 10-K for further discussion.
Corporate and other expenses
                           Fourteen     Thirteen    Fifty-Three   Fifty-Two
                           Weeks Ending Weeks       Weeks Ending  Weeks Ending
                                        Ending
                           December     December    December 31, December 25,
                           31,         25,
(Unaudited, in thousands)  2012         2011        2012          2011
Corporate (excluding       $       $      $       $     
depreciation and             6,112     7,015    28,211     29,909
amortization)
Corporate severance       (51)         176         3,394         254
Incentive compensation     1,374        1,776       5,723         1,611
(including stations)
Postretirement benefits**  (2,337)      44          (2,222)       173
Postemployment benefits**  (4,975)      (115)       (4,828)       35
Other operating expenses   (22)         685         1,427         1,669
Corporate and other        $       $      $       $     
expenses                       101   9,581    31,705     33,651
         In the fourth quarter of 2012, the Company recorded gains related to
         postretirement and postemployment benefits. The postretirement gain
**       resulted from former newspaper employees leaving certain of the
         Company's postretirement plans. The postemployment gain is due to
         outsourcing coverage for substantially all Medicare eligible
         participants to a third-party.

SOURCE Media General, Inc.

Website: http://www.mediageneral.com
 
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