Media General Presenting Today at the Deutsche Bank 2013 dbAccess Media,
Internet & Telecom Conference
RICHMOND, Va., March 5, 2013
RICHMOND, Va., March 5, 2013 /PRNewswire/ --Media General, Inc. (NYSE: MEG),
a local broadcast television and digital media company, is participating today
in the Deutsche Bank 2013 dbAccess Media, Internet & Telecom Conference.
George Mahoney, president and chief executive officer, and Jim Woodward, vice
president-finance and chief financial officer, will present from 4:05-4:40
p.m. EST in a Q&A discussion with Deutsche Bank equity analyst Matthew Chesler
and will meet with institutional investors throughout the day. The
presentation will be simultaneously webcast and will be accessible via a link
on the home page of Media General's website at www.mediageneral.com. A replay
of the webcast will be available on Media General's website and through
ThomsonReuters' Street Events.
Media General is confirming and expanding its previous guidance.
First Quarter 2013 Revenues
Political revenues are expected to be approximately $400,000, compared with
$6.2 million in the first quarter of 2012.
Super Bowl revenues on the company's CBS stations were $1.2 million and
increased by 33% compared with the last time the Super Bowl aired on CBS in
2010. In 2012, Super Bowl revenues were $2.8 million on the company's NBC
stations, which are located in larger markets and which typically generate
Core revenues are expected to increase approximately 2% compared to the first
quarter of 2012 (excluding all Political and Super Bowl revenues). Automotive
advertising is expected to be even with the first quarter of 2012, with each
successive month in 2013 showing greater strength. The Restaurants/Fast Food
category is expected to increase in the 2013 first quarter compared to last
year's first quarter.
Retransmission revenues are expected to increase 50%. Digital Media revenues
are expected to increase 15%.
Total net revenues, excluding all Political revenues, are expected to increase
7-8%, compared with the first quarter of 2012.
Starting with the full-year 2013, Media General's fiscal year will conform to
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. The first quarter of 2012 began on December 26, 2011 and ended on
March 26, 2012. The first quarter of 2013 began on January 1 and will end on
Media General's near-term focus is on organic growth and reducing its cost of
Media General continues to evaluate the options for refinancing at a lower
interest rate its 11.75% Senior Notes that are callable on or before February
2014. The company will have the option of using any cash on the balance sheet
at the time of refinancing to reduce the total amount to be refinanced. Every
one percent reduction in the interest rate would yield interest expense
savings of approximately $3 million.
Media General expects its 2013 results will meaningfully exceed the prior
odd-numbered year of 2011 when EBITDA from continuing operations was $56
million and Broadcast Cash Flow was $89 million. The broadcast industry
customarily compares odd-numbered years to odd years and even-numbered years
to even years due to the impact of Political and Olympics revenues in the
As expected in an odd-numbered year in the broadcast television industry,
total revenues will decrease from 2012, mostly due to the absence of
non-recurring Political revenues. Political revenues in 2013 are expected to
be approximately $5 million, compared with $64 million in 2012.
All Media General stations have in place revenue initiatives and new business
development plans focused on driving growth in core Local revenues. These
initiatives include successful programs that have helped offset the absence of
Political revenues in prior odd-numbered years and ones that have already made
a positive contribution in the first quarter of 2013, including incentive
trips and other local advertising promotions and community campaigns.
Corporate expense will decrease by approximately 35% from last year, based
primarily on a workforce reduction that was completed in 2012.
Compensation expense growth includes a 2% merit increase and an approximate 7%
increase in benefits expense, due in part to the impact of the Affordable Care
Higher NBC affiliate fees will be offset by increased Retransmission revenues.
As the year unfolds, stations may fill open positions as well as invest in new
positions for news staff, including digital resources, to support ratings and
revenue growth objectives. Stations may also invest in greater marketing and
promotion to enhance local competitiveness. Stations will adjust or defer
expenses as appropriate to align business conditions with profit goals.
Uses of Cash
Media General entered 2013 with a cash balance of $37 million. The company
does not expect to carry an outstanding balance in 2013 on its revolving
credit facility, which has availability of $45 million. Media General
continues to expect that cash provided by operations in 2013 will cover
interest payments of $68 million, capital expenditures of $15 million and a
pension plan contribution of $4.5 million.
This news release contains forward-looking statements that are subject to
various risks and uncertainties and should be understood in the context of the
company's publicly available reports filed with the Securities and Exchange
Commission. Media General's future performance could differ materially from
its current expectations.
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. One-third of the company's
stations operate in the Top 50 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
SOURCE Media General, Inc.
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