-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EfWehDDGhExfAsnmNyoFFrBY4NfLeFxxiJAQv5Hhy+Vd+CQnftXvANBFX6Ll+kNt H/J+lcfA1YS9O4vpTLDgYQ== 0000916641-98-000551.txt : 19980511 0000916641-98-000551.hdr.sgml : 19980511 ACCESSION NUMBER: 0000916641-98-000551 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980329 FILED AS OF DATE: 19980508 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDIA GENERAL INC CENTRAL INDEX KEY: 0000216539 STANDARD INDUSTRIAL CLASSIFICATION: NEWSPAPERS: PUBLISHING OR PUBLISHING & PRINTING [2711] IRS NUMBER: 540850433 STATE OF INCORPORATION: VA FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-06383 FILM NUMBER: 98613204 BUSINESS ADDRESS: STREET 1: 333 E GRACE ST CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 8046496000 10-Q 1 FIRST QUARTER REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 Form 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to__________ Commission file number: 1-6383 MEDIA GENERAL, INC. (Exact name of registrant as specified in its charter) Commonwealth of Virginia 54-0850433 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 333 E. Grace St., Richmond, VA 23219 (Address of principal executive offices) (Zip Code) (804) 649-6000 (Registrant's telephone number, including area code) N/A --- (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No -------------- -------------- Indicate the number of shares outstanding of each of the issuer's classes of common stock as of May 3, 1998. Class A Common shares: 26,169,518 Class B Common shares: 556,574 MEDIA GENERAL, INC. TABLE OF CONTENTS FORM 10-Q REPORT MARCH 29, 1998
Page ---- Part I. Financial Information Item 1. Financial Statements Consolidated Condensed Balance Sheets - March 29, 1998, and December 28, 1997 1 Consolidated Condensed Statements of Operations - Three months ended March 29, 1998, and March 30, 1997 3 Consolidated Condensed Statements of Cash Flows - Three months ended March 29, 1998, and March 30, 1997 4 Notes to Consolidated Condensed Financial Statements 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Part II. Other Information Item 6. Exhibits and Reports on Form 8-K 12 (a) Exhibits (b) Reports on Form 8-K Signatures 13
PART I - FINANCIAL INFORMATION Item 1. Financial Statements MEDIA GENERAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (000's except shares)
March 29, December 28, 1998 1997 ----------------- ------------------ ASSETS Current assets: Cash and cash equivalents $ 5,694 $ 3,504 Accounts receivable - net 97,761 109,287 Inventories 15,949 17,594 Other 26,548 32,268 ----------------- ------------------ Total current assets 145,952 162,653 ----------------- ------------------ Investments in unconsolidated affiliates 130,427 132,209 Other assets 32,845 28,519 Property, plant and equipment - net 502,112 504,906 Excess of cost over fair value of net identifiable assets of acquired businesses - net 665,129 572,458 FCC licenses and other intangibles - net 409,383 413,456 ----------------- ------------------ $ 1,885,848 $ 1,814,201 ================= ================== See accompanying notes. 1 MEDIA GENERAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (000's except shares) March 29, December 28, 1998 1997 ----------------- ------------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 27,721 $ 31,599 Accrued expenses and other liabilities 106,629 98,190 Income taxes payable 2,471 1,422 ----------------- ------------------ Total current liabilities 136,821 131,211 ----------------- ------------------ Long-term debt 957,515 900,140 Deferred income taxes 248,175 249,649 Other liabilities and deferred credits 119,695 114,975 Stockholders' equity: Preferred stock ($5 cumulative convertible), par value $5 per share: Authorized 5,000,000 shares; none outstanding Common stock, par value $5 per share: Class A, authorized 75,000,000 shares; issued 26,150,862 and 26,172,424 shares 130,754 130,862 Class B, authorized 600,000 shares; issued 556,574 shares 2,783 2,783 Additional paid-in capital 16,725 16,733 Unearned compensation (1,838) (2,100) Retained earnings 275,218 269,948 ----------------- ------------------ Total stockholders' equity 423,642 418,226 ----------------- ------------------ $ 1,885,848 $ 1,814,201 ================= ================== See accompanying notes. 2 MEDIA GENERAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (000's except for per share data) Three Months Ended -------------------------------------------- March 29, March 30, 1998 1997 ----------------- ------------------ Revenues $ 234,681 $ 216,145 ----------------- ------------------ Operating costs: Production costs 117,489 111,995 Selling, distribution and administrative 58,187 56,027 Depreciation and amortization 26,283 23,321 ----------------- ------------------ Total operating costs 201,959 191,343 ----------------- ------------------ Operating income 32,722 24,802 ----------------- ------------------ Other income (expense): Interest expense (17,399) (15,614) Investment income - unconsolidated affiliates: Southeast Paper Manufacturing Co. 3,768 1,138 Denver Newspapers, Inc.: Equity in net income 616 1,564 Preferred stock income 1,534 1,502 Other, net (517) 681 ----------------- ------------------ Total other income expense (11,998) (10,729) ----------------- ------------------ Income before income taxes and extraordinary item 20,724 14,073 Income taxes 7,979 5,840 Income before extraordinary item 12,745 8,233 Extraordinary item from early redemption of debt (net of income tax benefit of $38,613) --- (63,000) ----------------- ------------------ Net income (loss) $ 12,745 $ (54,767) ================= ================== Earnings (loss) per common share and equivalent: Income before extraordinary item $ 0.48 $ 0.31 Extraordinary item --- (2.39) ----------------- ------------------ Net income (loss) $ 0.48 $ (2.08) ================= ================== Earnings (loss) per common share and equivalent -- assuming dilution: Income before extraordinary item $ 0.47 $ 0.31 Extraordinary item --- (2.37) ----------------- ------------------ Net income (loss) 0.47 (2.06) ================= ================== Dividends paid per common share $ 0.14 $ 0.13 ================= ================== See accompanying notes. 3 MEDIA GENERAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (000's) Three Months Ended --------------------------------------------- March 29, March 30, 1998 1997 ------------------ ------------------- Operating activities: Net income (loss) $ 12,745 $ (54,767) Adjustments to reconcile net income (loss): Extraordinary item --- 63,000 Depreciation and amortization 26,283 23,321 Deferred income taxes (1,668) (1,188) Investment income -- unconsolidated affiliates, net of distributions 1,782 (1,504) Change in assets and liabilities: Accounts receivable and inventories 15,217 7,861 Other (4,832) (9,376) ----------------- ------------------ Net cash provided by operating activities 49,527 27,347 ----------------- ------------------ Investing activities: Capital expenditures (10,619) (9,994) Purchase of businesses (1997-net of $476 million of debt assumed) (92,613) (273,247) Sale of businesses (1997-net of $90,944 placed in trust) --- 48,620 Other, net 1,153 120 ----------------- ------------------ Net cash used by investing activities (102,079) (234,501) ----------------- ------------------ Financing activities: Increase in debt 184,000 963,000 Payment of debt (127,071) (667,000) Premiums and costs related to early redemption of Park debt --- (84,703) Dividends paid (3,736) (3,460) Other, net 1,549 411 ----------------- ------------------ Net cash provided by financing activities 54,742 208,248 ----------------- ------------------ Net increase in cash and cash equivalents 2,190 1,094 Cash and cash equivalents at beginning of year 3,504 4,471 ----------------- ------------------ Cash and cash equivalents at end of period $ 5,694 $ 5,565 ================= ================== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest (net of amount capitalized) $ 16,344 $ 7,532 Income taxes $ 6,096 $ 5,392 See accompanying notes.
4 MEDIA GENERAL, INC. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) 1. The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting, and with applicable quarterly reporting regulations of the Securities and Exchange Commission. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and, accordingly, should be read in conjunction with the consolidated financial statements and related footnotes included in the Company's Annual Report on Form 10-K for the year ended December 28, 1997. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of interim financial information have been included. Certain items in 1997 have been reclassified to conform with the current year's presentation. The reclassifications have no effect on net income as previously reported. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full fiscal year. 2. On January 2, 1998, Media General, Inc. acquired, for approximately $93 million, the assets of the Bristol Herald Courier, a daily newspaper in southwestern Virginia, and two affiliated weekly newspapers. The transaction was accounted for as a purchase and Bristol's results of operations have been included in the Company's results since the date of acquisition. The purchase price has been allocated to the assets acquired based on a preliminary appraisal of estimated fair values. Such estimated values may change as the appraisal is finalized and more facts become known. In late January, the Company agreed to purchase the Hickory Daily Record located in northwestern North Carolina and in late February announced the sale of its Kentucky newspaper properties acquired with the 1997 purchase of Park. These transactions are expected to close later in 1998. 3. Inventories are principally raw materials. 4. The following table sets forth the computation of basic and diluted earnings per share:
Quarter Ended March 29, 1998 Quarter Ended March 30, 1997 ------------------------------------- --------------------------------------- Income Shares Per Share Income Shares Per Share (In thousands, except per share amounts) (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ------------------------------------- --------------------------------------- Basic EPS Income available to common stock- holders before extraordinary item $12,745 26,503 $ 0.48 $ 8,233 26,319 $ 0.31 ====== ====== Effect of dilutive securities Stock options 262 139 Restricted stock and other (5) 79 (11) 149 ---------------------- --------------------- Diluted EPS Income available to common stock- holders + assumed conversions $12,740 26,844 $ 0.47 $ 8,222 26,607 $ 0.31 ===================================== =====================================
5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW Media General is an independent, publicly owned communications company situated primarily in the Southeast with interests in newspapers, broadcast and cable television, recycled newsprint production, and diversified information services. The Company's fiscal year ends on the last Sunday in December. Media General, Inc. Business Segment Information (Unaudited) (000's)
Three Months Ended -------------------------------------------- March 29, March 30, 1998 1997 ----------------- ------------------ Revenues: Publishing $ 125,792 $ 115,757 Broadcast Television 37,527 35,939 Cable Television 38,647 38,102 Newsprint 32,715 26,347 ----------------- ------------------ Total revenues $ 234,681 $ 216,145 ================= ================== Operating income: Publishing $ 22,288 $ 18,751 Broadcast Television 822 3,147 Cable Television 6,729 7,235 Newsprint 2,883 (4,331) ----------------- ------------------ Total operating income $ 32,722 $ 24,802 ================= ================== Operating cash flow: Publishing $ 32,331 $ 27,910 Broadcast Television 8,512 9,154 Cable Television 13,531 13,753 Newsprint 4,631 (2,694) ----------------- ------------------ Total operating cash flow $ 59,005 $ 48,123 ================= ==================
ACQUISITIONS AND DISPOSITIONS In January 1998 the Company acquired the Bristol Herald Courier, a daily newspaper in southwestern Virginia, and two affiliated weekly newspapers. Additionally, the Company agreed to purchase The Hickory Daily Record located in northwestern North Carolina and announced the sale of its Kentucky newspaper properties acquired in 1997 with the purchase of Park. See Note 2 of this Form 10-Q for further details about these transactions. 6 CONSOLIDATED OPERATING RESULTS
(In thousands, except per share data) First Quarter Ended -------------------------------------------------------------- March 29, March 30, 1998 1997 Change -------------- ------------- ------------- Revenues $ 234,681 $ 216,145 9% Net Income 12,745 (54,767) * --- Earnings Per Share 0.48 (2.08) * --- Earnings Per Share - Assuming Dilution 0.47 (2.06) * --- * Includes extraordinary charge from early redemption of debt ($63 million net of a tax benefit of $38.6 million; $2.39 per share or $2.37 per share-assuming dilution) SEGMENT OPERATING RESULTS The following discussion of segment operating results is primarily focused on the year-over-year comparative performance of the Company. Each segment's operating results include operating cash flow information in addition to revenues, operating expenses and operating income. Operating cash flow amounts presented with business segment information represent operating income plus depreciation and amortization of intangible assets. Such cash flow amounts vary from net cash provided by operating activities, as presented in the Consolidated Statements of Cash Flows, because cash payments for interest and taxes are not reflected, nor are the cash flow effects of non-operating items or changes in certain operations-related balance sheet accounts. The Company believes the presentation of operating cash flow amounts is important for several reasons. First, fluctuations in depreciation and amortization from year to year are not necessarily indicative of the underlying performance of a company. Second, the year-over-year change in operating cash flow can be a useful measure of performance and present a meaningful indicator of results that may occur in future periods. Finally, acquisition values of communications and media businesses are often based on multiples of operating cash flow. PUBLISHING (In thousands) First Quarter Ended -------------------------------------------------------------- March 29, March 30, 1998 1997 Change -------------- ------------- ------------- Revenues $ 125,792 $ 115,757 9% Operating Expense 103,504 97,006 7 Operating Income 22,288 18,751 19 Depreciation & Amortization 10,043 9,159 10 Operating Cash Flow 32,331 27,910 16
Publishing revenues increased $10 million (9%) in the first quarter of 1998 from the comparable 1997 period. At the Company's metropolitan newspaper group, which includes its three largest daily newspapers, revenues rose $4.3 million due to increases in average advertising rates and in linage (2.7% and 3.7%, respectively). These first quarter advertising increases were principally the result of 7 strong performances in classified advertising (led by the employment and automotive categories), along with solid contributions from general and retail advertising. The Company's recently acquired Bristol Herald Courier (Bristol) also generated $3.6 million in revenues. The remaining $2.1 million increase in Publishing revenues came from the Company's other daily and weekly community newspapers, primarily due to strong classified advertising revenues. Publishing operating expense increased $6.5 million in the first quarter of 1998. This increase was attributable to several factors. First, newsprint expense increased $2.5 million from the comparable quarter a year ago, up due to increased cost per ton. Second, the addition of Bristol in early January added $2 million of expense before amortization. Additionally, employee compensation and benefit costs at the Company's existing newspapers increased $.7 million over the prior-year equivalent period. Operating income for Publishing rose $3.5 million (19%) in the first quarter of 1998 from the prior-year period. The majority of this increase was due to the combination of robust advertising revenues and the inclusion of Bristol, partially offset by increased newsprint expense. BROADCAST TELEVISION (In thousands)
First Quarter Ended -------------------------------------------------------------- March 29, March 30, 1998 1997 Change -------------- ------------- ------------ Revenues $ 37,527 $ 35,939 4% Operating Expense 36,705 32,792 12 Operating Income 822 3,147 (74) Depreciation & Amortization 7,690 6,007 28 Operating Cash Flow 8,512 9,154 (7)
Broadcast revenues increased $1.6 million in the first quarter of 1998. This increase was due to solid local advertising revenues, the most significant portion was attributable to the 1998 Winter Olympics at the Company's six CBS affiliates. Despite strong Olympic results at these CBS affiliates, national revenues rose only slightly due to decreased national buys at the Company's largest station, WFLA-TV (NBC) in Tampa, Florida. The operating expenses in the Broadcast Segment increased $3.9 million in the first three months of 1998. Programming costs and employee compensation and benefits expense increased $.9 million and $1.5 million, respectively. The higher expense levels in 1998's first quarter were expected as steps were initiated in 1997 to invigorate the performance at the recently acquired stations . These steps included upgrading programming and equipment and fully staffing and competitively compensating personnel in conjunction with the repositioning and relaunching of these stations. In addition, depreciation and amortization expense rose $1.7 million. Broadcast operating income decreased $2.3 million in the first quarter of 1998. The drop was attributable to increased expenditures at the recently acquired stations to enhance their performance and to position them to compete more effectively in their markets, as well as to increased amortization. 8 CABLE TELEVISION (In thousands)
First Quarter Ended -------------------------------------------------------------- March 29, March 30, 1998 1997 Change -------------- ------------- ------------ Revenues $ 38,647 $ 38,102 1% Operating Expense 31,918 30,867 3 Operating Income 6,729 7,235 (7) Depreciation & Amortization 6,802 6,518 4 Operating Cash Flow 13,531 13,753 (2) Revenues at the Company's Cable Television Segment rose $.5 million in the first quarter of 1998. The increase was primarily attributable to the Company's Fairfax County, Virginia, cable system (Fairfax Cable), as a result of a 3.3% increase in the number of subscribers (to 236,600 at March 29, 1998), together with a combined average increase of 2.4% in basic and expanded subscriber rates. Operating expenses in the Cable Segment in the first quarter of 1998 increased $1 million over last year's same period. This increase was primarily attributable to a $.9 million rise in programming costs, due to higher programming rates and the expansion of the subscriber base at Fairfax Cable. Cable operating income decreased $.5 million in the first quarter of 1998 from the year-earlier period. The decrease reflects increased programming costs at Fairfax Cable due to higher contractual rates, partially offset by increased revenue at that location due to its expanding subscriber base. NEWSPRINT (In thousands) First Quarter Ended -------------------------------------------------------------- March 29, March 30, 1998 1997 Change -------------- ------------- ------------ Revenues $ 32,715 $ 26,347 24% Operating Expense 29,832 30,678 (3) Operating Income (Loss) 2,883 (4,331) --- Depreciation & Amortization 1,748 1,637 7 Operating Cash Flow 4,631 (2,694) ---
Newsprint Segment revenues increased $6.4 million (24%) in the first quarter of 1998, reflecting the results of the Company's Garden State Paper (Garden State) newsprint mill, located in Garfield, New Jersey. The increase resulted from a 14.5% increase in the average realized selling price per ton, combined with a 9.5% increase in tons sold. Newsprint selling prices have gradually increased over the past year, with average realized newsprint selling prices rising from $456 per ton in the first quarter of 1997 to $522 per ton in the comparable period of 1998. Newsprint Segment operating expense dropped $.8 million in 1998 from the comparable 1997 amount. This decline was principally the result of a $1 million decrease in energy costs due to the extremely mild winter and of a $.7 million reduction in chemical expense due to deinking process improvements. These decreases were partially offset by a rise in other expenses due to the increased production volume. 9 Newsprint operating income rose $7.2 million, from a $4.3 million loss in 1997 to income of $2.9 million in 1998. The increase resulted primarily from a $66 increase in average realized selling price per ton as compared to the year-ago quarter. In addition, improved production efficiency at Garden State and a mild 1998 winter also contributed to the overall operating profit improvement. UNCONSOLIDATED AFFILIATES The Company's investment income from unconsolidated affiliates increased $1.7 million in the first quarter of 1998 from the comparable period of 1997. The increase was attributable to the Company's share of the operating results of its Southeast Paper Manufacturing Company (SEPCO) newsprint affiliate, which increased $2.6 million from the previous year. SEPCO's revenues increased 13% in the first quarter of 1998 as a result of a 15% rise in the average realized selling price, to $526 per ton from $457 per ton in the comparable prior-year period, which more than offset the effect of a 2.3% decrease in tons sold. Income earned from the Company's Denver Newspapers, Inc. (DNI), affiliate decreased $.9 million in the first quarter of 1998 from the comparable period of 1997. The decrease was attributable to increased operating expenses, primarily newsprint and advertising costs, which were only partially offset by strong advertising revenue growth. INTEREST EXPENSE Interest expense of $17.4 million represented a $1.8 million increase in the first quarter of 1998 over the comparable year-earlier period. The increase was due to a $115.7 million rise in average debt outstanding, primarily the result of the recent Bristol acquisition. The Company's average effective borrowing rate of 7.2% in the first quarter of 1998 remained essentially flat with last year's equivalent period rate. NON-OPERATING ITEMS Other, net, declined from income of $.7 million in the first quarter of 1997 to an expense of $.5 million in the comparable period of 1998. The majority of this decline was attributable to a reduction in interest income. INCOME TAXES The Company's effective tax rate was 38.5% in the first quarter of 1998, down from 41.5% (excluding the extraordinary item) in the previous year's comparable period principally as a result of a higher level of deferred tax credits on intangible assets. Income tax expense rose $2.1 million from the first quarter of 1997 on a pretax earnings increase of $6.7 million. NET INCOME (LOSS) Net income for 1998's first quarter was $12.7 million ($0.48 per share, or $0.47 per share - assuming dilution) compared to a $54.8 million loss in the first quarter of 1997, the result of a $63 million extraordinary charge, net of a tax benefit of $38.6 million, ($2.39 per share, or $2.37 per share - assuming dilution) related to the early redemption of Park's high coupon debt in February 1997. Excluding this extraordinary item, net income rose $4.5 million, 55% above the year-ago period. The Newsprint and Publishing Segments had particularly strong performances: Newsprint produced a $7.2 million positive turnaround in operating profit and Publishing posted a 19% increase in operating 10 profit. This improved performance more than offset declines in Broadcast and Cable Television operating income and a moderate increase in interest expense related to the recent Bristol acquisition. LIQUIDITY AND CAPITAL RESOURCES Funds generated by operating activities during the first quarter of 1998 totaled $49.5 million, up $22.2 million from the comparable period of 1997. The increase was due to a combination of factors, including: an additional $7.4 million of funds generated in the current year as a result of accounts receivable collections and inventory reductions, a $5 million distribution from SEPCO, a $4.5 million increase in net income (excluding the extraordinary item), and a $3 million rise in non-cash depreciation and amortization. Funds generated from operating activities, coupled with funds provided by financing activities, supplied the $92.6 million used for the acquisition of Bristol, the $10.6 million for capital expenditures and the $3.7 million used for the payment of dividends to stockholders. Total debt outstanding at March 29, 1998, was $957.5 million, down $90.8 million from the year-ago level of $1,048.3 million, but up from the December 28, 1997 level of $900.1 million. This $57.4 million increase from year end was directly attributable to the $90 million in borrowings for the Bristol acquisition in early 1998, a portion of which has already been repaid with funds generated from operations. The Company's unused credit lines available from its committed revolving credit facility were $320 million at March 29, 1998. The Company has interest rate swaps totaling $800 million with maturities ranging from less than one year to six years. These swap agreements effectively converted variable rate debt to fixed rate debt at interest rates approximating 6.8% at March 29, 1998. The Company anticipates that internally generated funds provided by operations during 1998, together with existing credit facilities, will be more than adequate to finance other possible acquisitions, projected capital expenditures, dividends to stockholders, and working capital needs. OUTLOOK The Company expects to build on the strong first quarter results during the remainder of 1998. The Newsprint Segment is expected to continue its year-over-year profit growth as a result of improved newsprint selling prices. The Publishing Segment also anticipates excellent results due in large part to robust advertising revenues. Strong February rating books at most of our broadcast affiliates and renewal of our Fairfax Cable franchise, expected in the second quarter, should also make positive contributions. Together, these factors are expected to produce higher year-over-year net income for the Company. 11 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27.1 Financial Data Schedule for the period ended March 29, 1998. 27.2 Restated Financial Data Schedule for the period ended March 30, 1997. (b) Reports on Form 8-K No reports on Form 8-K were filed by the Company during the quarter ended March 29,1998. 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MEDIA GENERAL, INC. DATE: May 8, 1998 /s/ J. Stewart Bryan III ------------------------ J. Stewart Bryan III, Chairman, President and Chief Executive Officer DATE: May 8, 1998 /s/ Marshall N. Morton ---------------------- Marshall N. Morton Senior Vice President and Chief Financial Officer 13 EX-27.1 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MEDIA GENERAL, INC.'S CONSOLIDATED CONDENSED BALANCE SHEETS AND CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-mos DEC-27-1998 MAR-29-1998 5,694 0 104,150 6,389 15,949 145,952 1,093,927 591,815 1,885,848 136,821 957,515 0 0 133,537 290,105 1,885,848 234,681 234,681 117,489 117,489 26,283 0 17,399 20,724 7,979 12,745 0 0 0 12,745 0.48 0.47
EX-27.2 3 1997 RESTATED FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MEDIA GENERAL, INC.'S CONSOLIDATED CONDENSED BALANCE SHEETS AND CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-28-1997 MAR-30-1997 5,565 0 96,696 6,362 19,241 148,482 1,067,701 542,692 1,848,435 130,650 1,048,000 0 0 133,084 243,377 1,848,435 216,145 216,145 111,995 111,995 23,321 0 15,614 14,073 5,840 8,233 0 (63,000) 0 (54,767) (2.08) (2.06)
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