EX-99 5 ex_992.txt FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 7/1/01 EXHIBIT 99.2 MEDIA GENERAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (000's except shares)
(Unaudited) July 1, December 31, 2001 2000 ---------- ----------- ASSETS Current assets: Cash and cash equivalents $ 8,277 $ 10,404 Accounts receivable - net 104,717 117,254 Inventories 7,680 7,168 Other 28,789 38,054 ---------- ---------- Total current assets 149,463 172,880 ---------- ---------- Investments in unconsolidated affiliates 111,869 90,739 Other assets 70,139 59,565 Property, plant and equipment - net 376,463 379,950 Excess of cost over fair value of net identifiable assets of acquired businesses - net 946,166 958,443 FCC licenses and other intangibles - net 882,452 899,705 ---------- ---------- $2,536,552 $2,561,282 ========== ==========
See accompanying notes. 1 MEDIA GENERAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (000's except shares)
(Unaudited) July 1, December 31, 2001 2000 ---------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 18,776 $ 27,203 Accrued expenses and other liabilities 72,164 87,338 ---------- ----------- Total current liabilities 90,940 114,541 ---------- ----------- Long-term debt 796,964 822,077 Deferred income taxes 351,636 351,491 Other liabilities and deferred credits 127,215 101,251 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 22,397,513 and 22,158,070 shares 111,988 110,790 Class B, authorized 600,000 shares; issued 556,574 shares 2,783 2,783 Additional paid-in capital 9,167 --- Accumulated other comprehensive income (loss) (13,950) (3,481) Unearned compensation (7,414) (2,145) Retained earnings 1,067,223 1,063,975 ---------- ----------- Total stockholders' equity 1,169,797 1,171,922 ---------- ----------- $2,536,552 $ 2,561,282 ========== ===========
See accompanying notes. 2 MEDIA GENERAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (000's except for per share data)
Second Quarter Ended Six Months Ended --------------------- --------------------- July 1, June 25, July 1, June 25, 2001 2000 2001 2000 --------- --------- --------- --------- Revenues $ 205,747 $ 211,299 $ 404,628 $ 383,757 --------- --------- --------- --------- Operating costs: Production 88,499 85,886 179,074 159,886 Selling, general and administrative 67,655 63,431 137,313 119,965 Depreciation and amortization 28,569 26,312 57,899 44,684 --------- --------- --------- --------- Total operating costs 184,723 175,629 374,286 324,535 --------- --------- --------- --------- Operating income 21,024 35,670 30,342 59,222 --------- --------- --------- --------- Other income (expense): Interest expense (12,437) (10,655) (26,424) (12,013) Investment income (loss) - unconsolidated affiliates 7,307 253 17,205 (1,312) Other, net (3,463) 3,390 (3,014) 11,720 --------- --------- --------- --------- Total other expense (8,593) (7,012) (12,233) (1,605) --------- --------- --------- --------- Income from continuing operations before income taxes 12,431 28,658 18,109 57,617 Income taxes 4,735 11,605 7,063 23,297 --------- --------- --------- --------- Income from continuing operations 7,696 17,053 11,046 34,320 Discontinued operations: Loss from discontinued operations --- (1,445) --- (4,350) Loss on disposition of discontinued operations --- (5,970) --- (5,970) --------- --------- --------- --------- Net income $ 7,696 $ 9,638 $ 11,046 $ 24,000 ========= ========= ========= ========= Earnings per common share: Income from continuing operations $ 0.34 $ 0.71 $ 0.49 $ 1.38 Loss from discontinued operations --- (0.31) --- (0.42) --------- --------- --------- --------- Net income $ 0.34 $ 0.40 $ 0.49 $ 0.96 ========= ========= ========= ========= Earnings per common share - assuming dilution: Income from continuing operations $ 0.33 $ 0.70 $ 0.48 $ 1.36 Loss from discontinued operations --- (0.31) --- (0.41) --------- --------- --------- --------- Net income $ 0.33 $ 0.39 $ 0.48 $ 0.95 ========= ========= ========= ========= Dividends paid per common share $ 0.17 $ 0.16 $ 0.34 $ 0.32 ========= ========= ========= =========
See accompanying notes. 3 MEDIA GENERAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (000's)
Six Months Ended --------------------- July 1, June 25, 2001 2000 --------- --------- Operating activities: Net income $ 11,046 $ 24,000 Adjustments to reconcile net income: Depreciation and amortization 57,899 48,430 Deferred income taxes (227) (126) Investment (income) loss -- unconsolidated affiliates, net of distributions (17,205) 4,712 Gain on disposition of Cable operations --- (8,286) Loss on disposition of Garden State Paper --- 14,256 Change in assets and liabilities: Accounts receivable and inventory 12,085 (5,593) Accounts payable (6,310) (5,289) Taxes payable 28 (518,855) Other 3,045 8,877 --------- --------- Net cash provided (used) by operating activities 60,361 (437,874) --------- --------- Investing activities: Capital expenditures (21,210) (23,215) Proceeds from maturity of short-term investments --- 390,748 Purchases of businesses (943) (620,463) Proceeds from disposition of Cable operations --- 10,063 Other investments (4,614) (3,455) Other, net 4,117 77 --------- --------- Net cash used by investing activities (22,650) (246,245) --------- --------- Financing activities: Increase in debt 908,000 638,000 Payment of debt (933,174) (54,164) Debt issuance costs (9,177) --- Stock repurchase (2,120) (136,520) Dividends paid (7,798) (7,947) Other, net 4,431 1,709 --------- --------- Net cash (used) provided by financing activities (39,838) 441,078 --------- --------- Net decrease in cash and cash equivalents (2,127) (243,041) Cash and cash equivalents at beginning of year 10,404 255,298 --------- --------- Cash and cash equivalents at end of period $ 8,277 $ 12,257 ========= ========= Supplemental disclosures of cash flow information: Cash paid during the period for: Interest (net of amount capitalized) $ 25,801 $ 12,359 Income taxes $ 261 $ 526,907
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 31, 2000. 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 2000 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. Inventories are principally raw materials (primarily newsprint). 3. In January 2001, The Denver Post and the Denver Rocky Mountain News finalized a Joint Operating Agreement (JOA) that was signed in 2000. The Company has a 20% interest in The Denver Post Corporation (Denver). A one-time gain of $6.1 million was recorded in the first quarter of 2001 related to a cash payment received by Denver in conjunction with the formation of the JOA; it is included in the line item "Investment income (loss) - unconsolidated affiliates" on the accompanying Consolidated Condensed Statement of Operations. That line item also includes start-up costs incurred by Denver related to the initial formation of the JOA. 4. Effective January 1, 2001, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 133 Accounting for Derivative Instruments and Hedging Activities, as amended by SFAS No. 138. These statements require that all derivatives be recognized as either assets or liabilities on the balance sheet at fair value. If a derivative is a hedge, depending upon the nature of the hedge, a change in its fair value will either be offset against the change in the fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income (OCI) until the hedged item is recognized in earnings. Any difference between the fair value of the hedge and the item being hedged, known as the ineffective portion, will be immediately recognized in earnings. The adoption of the standard resulted in the cumulative effect of an accounting change that had no impact on net income and an after-tax net increase to OCI of $3.6 million. For derivative instruments that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of the Company's OCI and reclassified into earnings (interest expense for the interest rate swaps and newsprint expense for the newsprint swap) in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument (i.e., the ineffective portion) in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in the Company's current earnings during the period of change. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the Company's current earnings during the period of change. 5 At adoption the Company had interest rate swap agreements, with notional amounts totaling $300 million and having maturities ranging from less than three months to slightly more than two years, that were designated as cash flow hedges under the new standard. During the first quarter, the Company entered into interest rate swap (pay fixed, receive floating) agreements, with notional amounts totaling an additional $150 million and having maturities of two years, that also were designated as cash flow hedges; one swap agreement with a notional amount of $75 million matured. The Company entered into these interest rate swap agreements to manage interest cost and cash flows associated with variable interest rates, primarily short-term changes in LIBOR; changes in cash flows of the interest rate swaps offset changes in the interest payments on the covered portion of the Company's revolving credit agreement. In connection with these interest rate swap agreements, the Company recorded after-tax income of $.2 million in OCI during the second quarter and an after-tax charge of $2.6 million in the year to date; there was no impact on net income. Concurrent with the completion of the third quarter 2000 sale of Garden State Paper Company (GSP), the Company entered into a seven-year financial newsprint swap agreement. A portion (approximately 90%) of the agreement, under which the Company receives a floating price per metric ton and pays a fixed price of $596 per metric ton, has been designated as a cash flow hedge under the new standard. The objective of this hedge is to offset the variability of cash flows for purchases of newsprint due to changes in market prices; changes in cash flows of the newsprint swap are expected to be highly effective at offsetting changes in the cash flows related to the Company's purchases of newsprint. The Company recorded an after-tax charge to OCI of $15 million in the year to date, including $11.8 million during the second quarter, representing the decline in fair value of the derivative based on forecasted newsprint prices. There was no impact on net income due to ineffectiveness. Additionally, the Company recorded a pre-tax loss of approximately $2.3 million in the year to date ($1.7 million in the second quarter) in the line item "Other, net" related to the decrease in fair value of that portion of the contract not designated as a hedge. 5. In January 2001 the Company launched its Interactive Media Division. Historically, the Company's online activities were reported and managed as a part of the Publishing and Broadcast Segments, but as a result of this transition they are now reported and managed as a separate segment. This new segment is comprised of all online enterprises as well as Media General Financial Services, the Company's provider of financial information. Additionally, the Interactive Media Segment includes investments, accounted for under the equity method, in AdOne, L.L.P. (a online database of classified advertising), and in iPipe, Inc. (a provider and distributor of content and advertising services for Web sites), as well as investments, accounted for under the cost method, in several other dot-com companies. The prior period has been restated to reflect the change in the Company's reportable segments. The following table sets forth the Company's current and prior-year financial performance by segment, as well as total assets by segment as of July 1, 2001: 6
Interactive (In thousands) Publishing Broadcast Media Eliminations Total --------------------------------------------------------------------------------------------------------------------- Three Months Ended July 1, 2001 Consolidated revenues $137,225 $ 66,630 $ 2,297 $(405) $ 205,747 ====================================================================== Segment operating cash flow $ 37,604 $ 20,323 $ (717) $ 57,210 Allocated amounts: Equity in net loss of unconsolidated affiliates (770) (862) (1,632) Write-off of investment (2,323) (2,323) Depreciation and amortization (7,045) (5,095) (217) (12,357) ---------------------------------------------------------------------- Segment profit (loss) $ 29,789 $ 15,228 $(4,119) 40,898 ====================================== Unallocated amounts: Interest expense (12,437) Investment income - SP Newsprint 8,939 Acquisition intangibles amortization (15,130) Corporate expenses (8,453) Other (1,386) ---------- Consolidated income from continuing operations before income taxes $ 12,431 ========== Segment assets $991,220 $1,355,170 $23,140 $2,369,530 Corporate 167,022 ---------- Consolidated assets $2,536,552 ========== ---------------------------------------------------------------------------------------------------------------------- Three Months Ended June 25, 2000 Consolidated revenues $135,906 $ 73,437 $ 2,042 $ (86) $ 211,299 ====================================================================== Segment operating cash flow $ 45,031 $ 26,147 $ 18 $ 71,196 Allocated amounts: Equity in net income (loss) of unconsolidated affiliates 258 (523) (265) Depreciation and amortization (6,360) (5,377) (82) (11,819) ---------------------------------------------------------------------- Segment profit (loss) $ 38,929 $ 20,770 $ (587) 59,112 ====================================== Unallocated amounts: Interest expense (10,655) Investment income - SP Newsprint 518 Acquisition intangibles amortization (13,590) Corporate expenses (8,331) Other 1,604 --------- Consolidated income from continuing operations before income taxes $ 28,658 ========= ---------------------------------------------------------------------------------------------------------------------- Six Months Ended July 1, 2001 Consolidated revenues $274,231 $ 126,767 $ 4,492 $(862) $ 404,628 ====================================================================== Segment operating cash flow $ 72,828 $ 33,737 $(1,213) $ 105,352 Allocated amounts: Equity in net income (loss) of unconsolidated affiliates 3,964 (1,858) 2,106 Write-off of investment (2,323) (2,323) Depreciation and amortization (14,381) (10,679) (406) (25,466) ---------------------------------------------------------------------- Segment profit (loss) $ 62,411 $ 23,058 $(5,800) 79,669 ====================================== Unallocated amounts: Interest expense (26,424) Investment income - SP Newsprint 15,099 Acquisition intangibles amortization (30,258) Corporate expenses (17,627) Other (2,350) --------- Consolidated income from continuing operations before income taxes $ 18,109 ========= ----------------------------------------------------------------------------------------------------------------------
7
Interactive (In thousands) Publishing Broadcast Media Eliminations Total -------------------------------------------------------------------------------------------------------------------- Six Months Ended July 25, 2000 Consolidated revenues $266,234 $113,793 $ 3,861 $(131) $383,757 =================================================================== Segment operating cash flow $ 86,688 $ 35,284 $ 205 $122,177 Allocated amounts: Equity in net income (loss) of unconsolidated affiliates 41 (980) (939) Depreciation and amortization (12,705) (8,341) (165) (21,211) ------------------------------------------------------------------- Segment profit (loss) $ 74,024 $ 26,943 $ (940) 100,027 ==================================== Unallocated amounts: Interest expense (12,013) Investment loss - SP Newsprint (373) Acquisition intangibles amortization (21,685) Corporate expenses (16,619) Other 8,280 -------- Consolidated income from continuing operations before income taxes $ 57,617 ======== --------------------------------------------------------------------------------------------------------------------
6. The following table sets forth the computation of basic and diluted earnings per share from continuing operations:
Quarter Ended July 1, 2001 Quarter Ended June 25, 2000 ------------------------------------- --------------------------------------------- Income Shares Per Share Income Shares Per Share (In thousands, except per share amounts) (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ----------- ------------- --------- ------------- ----------------- ----------- Basic EPS Income from continuing operations available to common stockholders $ 7,696 22,716 $ 0.34 $17,053 24,184 $ 0.71 ========= =========== Effect of dilutive securities Stock options 135 191 Restricted stock and other (17) 115 (6) 98 ---------------------- -------------------------- Diluted EPS Income from continuing operations available to common stockholders plus assumed conversions $ 7,679 22,966 $ 0.33 $17,047 24,473 $ 0.70 ================================== ======================================== Six Months Ended July 1, 2001 Six Months Ended June 25, 2000 ------------------------------------- --------------------------------------------- Income Shares Per Share Income Shares Per Share (In thousands, except per share amounts) (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ---------- ------------ --------- ------------ ---------------- ----------- Basic EPS Income from continuing operations available to common stockholders $11,046 22,691 $ 0.49 $34,320 24,920 $ 1.38 ========= =========== Effect of dilutive securities Stock options 130 201 Restricted stock and other (36) 109 (12) 95 ---------------------- -------------------------- Diluted EPS Income from continuing operations available to common stockholders plus assumed conversions $11,010 22,930 $ 0.48 $34,308 25,216 $ 1.36 ================================== ========================================
8 7. The Company's comprehensive income consisted of the following:
Quarter Ended Six Months Ended -------------------- -------------------- (In thousands) July 1, June 25, July 1, June 25, 2001 2000 2001 2000 -------- ------- -------- ------- Net income $ 7,696 $ 9,638 $ 11,046 $24,000 Cumulative effect of adoption of SFAS No. 133 (net of deferred taxes) --- --- 3,570 --- Unrealized loss on derivative contracts (net of deferred taxes) (11,601) --- (17,621) --- Unrealized gain (loss) on equity securities (net of deferred taxes) 3,918 (4,992) 3,582 (2,543) -------- ------- -------- ------- Comprehensive income $ 13 $ 4,646 $ 577 $21,457 ======== ======= ======== =======
8. The Financial Accounting Standards Board has approved Statement No. 142, Goodwill and Other Intangible Assets. This Statement establishes a new accounting standard for goodwill and certain other intangible assets acquired in a business combination as well as a new method of testing those assets for impairment. It will continue to require recognition of these items as assets but amortization as currently required by APB Opinion No. 17, Intangible Assets will cease. It will also require that these assets be separately tested for impairment annually at the reporting unit level when certain indicators of impairment are present using a fair-value-based approach. Initial adoption of the provisions of this statement is required for fiscal years beginning after December 15, 2001; the Company will adopt SFAS No. 142 as of the beginning of its fiscal year 2002. The provisions of this statement will apply not only to balances arising from acquisitions completed after the issuance date of the final Statement, but also to the unamortized balances at the date of adoption. While the Company is still reviewing the new standard, it anticipates that application of the standard's provisions will reduce its amortization expense by approximately 70% in 2002 compared to that of the prior year. 9. On June 29, 2001, the Company replaced its $1.2 billion revolving credit facility with a five-year revolving credit facility committing a syndicate of banks to lend the Company up to $1 billion. Interest rates under the facility are based on the London Interbank Offered Rate (LIBOR) plus a margin ranging from .75% to 1.75%, determined by the Company's debt to cash flow ratio (leverage ratio), as defined. Under this new facility, the Company pays facility fees on the entire commitment of the facility at a rate based on its leverage ratio. The Company's debt covenants require the maintenance of an interest coverage ratio and a leverage ratio, as defined. In July 2001, subsequent to the close of the second quarter, the Company filed a shelf registration for up to $600 million of public debt; no debt has been issued under this facility to date. 9 10. In the third quarter of 2001, the Company has filed a shelf registration with the Securities Exchange Commission under which its subsidiaries, Media General Financial Services, Inc., Media General Communications, Inc., MG Broadcasting of Birmingham Holdings, LLC, Media General Operations, Inc., The Tribune Company Holdings, Inc., Media General Broadcasting of South Carolina Holdings, Inc., MG Broadcasting of Birmingham II, LLC, Professional Communications Systems, Inc., NES II, Inc., and Virginia Paper Manufacturing Corp. (collectively "Guarantor Subsidiaries"), may guarantee debt securities issued from the shelf under certain circumstances. These guarantees would be full and unconditional and on a joint and several basis. The following financial information presents condensed consolidating balance sheets, statements of operations, and statements of cash flows for the parent company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, together with certain eliminations. The Non-Guarantor Subsidiaries consist of Garden State Paper Company, sold in the third quarter of 2000 during its respective period of ownership.
Media General, Inc. Condensed Consolidating Statements of Operations Six months ended July 1, 2001 (In thousands) Media General Guarantor Media General Corporate Subsidiaries Eliminations Consolidated ---------------------------------------------------- --------------------- Revenues $ 77,481 $ 464,448 $ (137,301) $ 404,628 Operating cost: Production $ - $ 179,074 $ - $ 179,074 Selling, general and administrative 76,982 197,632 (137,301) 137,313 Depreciation and amortization 2,175 55,724 - 57,899 -------------------------------------------------- ------------------ Total operating costs 79,157 432,430 (137,301) 374,286 --------------------------------------------------- ------------------ Operating income (loss) (1,676) 32,018 - 30,342 Other income (expense): Interest expense (26,377) (47) - (26,424) Investment income - unconsolidated affiliates 3,964 13,241 - 17,205 Investment income - consolidated affiliates 24,189 - (24,189) - Other, net (363) (2,651) - (3,014) -------------------------------------------------- ----------------- Total other income (expense) 1,413 10,543 (24,189) (12,233) -------------------------------------------------- ----------------- Income (loss) before income taxes (263) 42,561 (24,189) 18,109 Income tax expense (benefit) (11,309) 18,372 - 7,063 -------------------------------------------------- ----------------- Net income (loss) 11,046 24,189 (24,189) 11,046 Other comprehensive (loss) income (net of tax) (14,051) 3,582 - (10,469) -------------------------------------------------- ----------------- Comprehensive income (loss) $ (3,005) $ 27,771 $ (24,189) $ 577 ================================================== =================
Media General, Inc. Condensed Consolidating Statements of Operations Six months ended June 25, 2000 (In thousands) Media General Guarantor Non-Guarantor Media General Corporate Subsidiaries Subsidiaries Eliminations Consolidated --------------------------------------------------------------- --------------- Revenues $ 53,510 $ 424,257 $ - $ (94,010) $ 383,757 Operating costs: Production - 159,886 - - 159,886 Selling, general and administrative 59,285 154,690 - (94,010) 119,965 Depreciation and amortization 1,787 42,897 - - 44,684 ------------------------------------------------------------ ------------- Total operating costs 61,072 357,473 - (94,010) 324,535 ------------------------------------------------------------ ------------- Operating income (loss) (7,562) 66,784 - - 59,222 Other income (expense): Interest expense (11,944) (69) - - (12,013) Investment income (loss) - unconsolidated affiliates (939) (373) - - (1,312) Investment income - consolidated affiliates 37,775 - - (37,775) - Other, net 8,628 3,092 - - 11,720 ------------------------------------------------------------ ------------- Total other income (expense) 33,520 2,650 - (37,775) (1,605) ------------------------------------------------------------ ------------- Income (loss) before income taxes 25,958 69,434 - (37,775) 57,617 Income tax expense (benefit) (4,012) 27,309 - - 23,297 ------------------------------------------------------------ ------------- Income (loss) from continuing operations 29,970 42,125 - (37,775) 34,320 Discontinued operations: Loss from discontinued operations (net of tax) - - (4,350) - (4,350) Loss on disposition of discontinued operations (net of tax) (5,970) - - - (5,970) ------------------------------------------------------------ ------------- Net income (loss) 24,000 42,125 (4,350) (37,775) 24,000 Other comprehensive income loss (net of tax) (2,543) - - - (2,543) ------------------------------------------------------------ ------------- Comprehensive income (loss) $ 21,457 $ 42,125 $ (4,350) $ (37,775) $ 21,457 ============================================================ =============
Media General, Inc. Condensed Consolidating Balance Sheets As of July 1, 2001 (In thousands) Media General Guarantor Media General Corporate Subsidiaries Eliminations Consolidated ---------------------------------------------------------------------------- ASSETS Current Assets: Cash and cash equivalents $ (2,247) $ 3,607 $ 6,917 $ 8,277 Accounts receivable, net - 104,717 - 104,717 Inventories 5 7,675 - 7,680 Other 39,509 51,127 (61,847) 28,789 --------------------------------------------------------------------------- Total current assets 37,267 167,126 (54,930) 149,463 --------------------------------------------------------------------------- Investments in unconsolidated affiliates 11,271 100,598 - 111,869 Investments in and advances to subsidiaries 2,004,142 560,593 (2,564,735) - Other assets 34,557 35,582 - 70,139 Property, plant and equipment, net 16,379 360,084 - 376,463 Excess of cost over fair value of net identifiable assets of acquired businesses, net - 946,166 - 946,166 FCC licenses and other intangibles, net - 882,452 - 882,452 --------------------------------------------------------------------------- Total assets $ 2,103,616 $ 3,052,601 $ (2,619,665) $ 2,536,552 =========================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 194 $ 13,569 $ 5,013 $ 18,776 Accrued expenses and other liabilities 58,865 73,249 (59,950) 72,164 --------------------------------------------------------------------------- Total current liabilities 59,059 86,818 (54,937) 90,940 --------------------------------------------------------------------------- Long-term debt 796,038 926 - 796,964 Deferred income taxes (37,049) 388,685 - 351,636 Other liabilities and deferred credits 115,872 11,343 - 127,215 Stockholders' equity Common stock 114,771 4,872 (4,872) 114,771 Additional paid-in capital 9,167 2,023,815 (2,023,815) 9,167 Accumulated other comprehensive income (loss) (14,051) 101 - (13,950) Unearned compensation (7,414) - - (7,414) Retained earnings 1,067,223 536,041 (536,041) 1,067,223 --------------------------------------------------------------------------- Total stockholders' equity 1,169,696 2,564,829 (2,564,728) 1,169,797 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 2,103,616 $ 3,052,601 $ (2,619,665) $ 2,536,552 ===========================================================================
Media General, Inc. Condensed Consolidating Balance Sheets As of June 25, 2000 (In thousands) Media General Guarantor Non-Guarantor Media General Corporate Subsidiaries Subsidiaries Eliminations Consolidated -------------------------------------------------------------------------- ASSETS Current Assets: Cash and cash equivalents $ (4,202) $ 6,108 $ 9 $ 10,342 $ 12,257 Accounts receivable, net - 109,346 15,805 (141) 125,010 Inventories 3 5,739 7,751 (150) 13,343 Other 28,859 55,072 1,554 (51,518) 33,967 ------------------------------------------------------------------------ Total current assets 24,660 176,265 25,119 (41,467) 184,577 ------------------------------------------------------------------------ Investments in unconsolidated affiliates 10,142 73,576 - - 83,718 Investments in and advances to subsidiaries 1,886,107 407,192 5,869 (2,299,168) - Other assets 45,815 11,584 52 - 57,451 Property, plant and equipment, net 11,458 366,370 67,173 - 445,001 Excess of cost over fair value of net identifiable assets of acquired businesses, net - 761,216 - - 761,216 FCC licenses and other intangibles, net - 912,453 - - 912,453 ------------------------------------------------------------------------ TOTAL ASSETS $ 1,978,182 $ 2,708,656 $ 98,213 $ (2,340,635) $ 2,444,416 ======================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 713 $ 13,199 $ 6,067 $ 10,196 $ 30,175 Accrued expenses and other liabilities 78,619 63,057 3,570 (51,518) 93,728 ------------------------------------------------------------------------ Total current liabilities 79,332 76,256 9,637 (41,322) 123,903 ------------------------------------------------------------------------ Long-term debt 623,000 1,224 20,000 - 644,224 Deferred income taxes (24,593) 373,931 11,407 - 360,745 Other liabilities and deferred credits 91,718 13,878 1,223 - 106,819 Stockholders' equity Common stock 119,093 9,323 5,000 (14,323) 119,093 Additional paid-in capital - 1,763,791 340 (1,764,131) - Accumulated other comprehensive income 4,848 - - - 4,848 Unearned compensation (2,567) - - - (2,567) Retained earnings 1,087,351 470,253 50,606 (520,859) 1,087,351 ------------------------------------------------------------------------ Total stockholders' equity 1,208,725 2,243,367 55,946 (2,299,313) 1,208,725 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Total liabilities and stockholders' equity $ 1,978,182 $ 2,708,656 $ 98,213 $ (2,340,635) $ 2,444,416 ========================================================================
Media General, Inc. Condensed Consolidating Statements of Cash Flows Six months ended July 1, 2001 (In thousands) Media General Guarantor Media General Corporate Subsidiaries Eliminations Consolidated ---------------------------------------------------- ------------------- Cash flows from operating activities: Net cash provided (used) by operating activities* $ 44,064 $ 18,889 $ (2,592) $ 60,361 Cash flows from investing activities: Capital expenditures (4,335) (16,875) - (21,210) Purchase of business (943) - - (943) Other, net 4,049 (4,546) - (497) ------------------------------------------------ ------------------- Net cash used by investing activities (1,229) (21,421) - (22,650) Cash flows from financing activities: Increase in debt 908,000 - - 908,000 Repayment of debt (933,000) (174) - (933,174) Debt issuance costs (9,177) - - (9,177) Stock repurchase (2,120) - - (2,120) Cash dividends paid (7,798) - - (7,798) Other, net 4,431 - - 4,431 ------------------------------------------------ ------------------- Net cash used by financing activities (39,664) (174) - (39,838) ------------------------------------------------ ------------------- Net increase (decrease) in cash and cash equivalents 3,171 (2,706) (2,592) (2,127) Cash and cash equivalents at beginning of year (5,418) 6,313 9,509 10,404 ------------------------------------------------ ------------------- Cash and cash equivalents at end of period $ (2,247) $ 3,607 $ 6,917 $ 8,277 ================================================ ===================
* Cash is managed on a centralized basis by Media General Corporate; cash transferred from the subsidiaries are included in the caption "Net cash provided (used) by operating activities".
Media General, Inc. Condensed Consolidating Statements of Cash Flows Six months ended June 25, 2000 (In thousands) Media General Guarantor Non-Guarantor Media General Corporate Subsidiaries Subsidiaries Eliminations Consolidated -------------------------------------------------------------------------- Cash flows from operating activities: Net cash (used) provided by operating activities* $ (461,236) $ 17,523 $ 4,294 $ 1,545 $ (437,874) Cash flows from investing activities: Capital expenditures (2,469) (16,450) (4,296) - (23,215) Proceeds from maturity of short-term investments 390,748 - - - 390,748 Purchases of businesses (620,463) - - - (620,463) Proceeds from disposition of Cable operations 10,063 - - - 10,063 Other, net (3,455) 77 - - (3,378) -------------------------------------------------------- ------------- Net cash used by investing activities (225,576) (16,373) (4,296) - (246,245) Cash flows from financing activities: Increase in debt 638,000 - - - 638,000 Repayment of debt (54,000) (164) - - (54,164) Stock repurchase (136,520) - - - (136,520) Cash dividends paid (7,947) - - - (7,947) Other, net 1,709 - - - 1,709 -------------------------------------------------------- ------------- Net cash provided (used) by financing activities 441,242 (164) - - 441,078 -------------------------------------------------------- ------------- Net (decrease) increase in cash and cash equivalents (245,570) 986 (2) 1,545 (243,041) Cash and cash equivalents at beginning of year 241,368 5,122 11 8,797 255,298 -------------------------------------------------------- ------------- Cash and cash equivalents at end of period $ (4,202) $ 6,108 $ 9 $10,342 $ 12,257 ======================================================== =============
* Cash is managed on a centralized basis by Media General Corporate; cash transferred from the subsidiaries are included in the caption "Net cash (used) provided by operating activities". 10