-----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, MWIW1nJbSnzWgMaZ27N8+d5JZLYlMmHvW/U3b2+j2G5igTPs04yRqsk8rNZVjNvv Qz5d2Ky1LPJ33Wk9AFgS/Q== 0001144204-07-037273.txt : 20070719 0001144204-07-037273.hdr.sgml : 20070719 20070719105146 ACCESSION NUMBER: 0001144204-07-037273 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20070719 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070719 DATE AS OF CHANGE: 20070719 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: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06383 FILM NUMBER: 07988234 BUSINESS ADDRESS: STREET 1: 333 E FRANKLIN ST CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 8046496000 MAIL ADDRESS: STREET 1: 333 E FRANKLIN ST CITY: RICHMOND STATE: VA ZIP: 23219 8-K 1 v081353_8-k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)
July 19, 2007
 
MEDIA GENERAL, INC.
(Exact name of registrant as specified in its charter)
 
Commonwealth of Virginia
1-6383
54-0850433
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
333 E. Franklin St., Richmond, VA
23219
(Address of principal executive offices)
(Zip Code)
   
Registrant’s telephone number, including area code
(804) 649-6000
 
N/A
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 
 
Item 2.02 Results of Operations and Financial Condition.
 
On July 19, 2007, the Company issued two releases announcing results for the second quarter of 2007 and revenues for the June 2007 period. A copy of these releases is furnished as Exhibit 99.1 and Exhibit 99.2
 
Item 9.01 Financial Statements and Exhibits.
 
d) Exhibits
 
99.1
Press Release issued by MEDIA GENERAL, INC., July 19, 2007.
99.2
Press Release issued by MEDIA GENERAL, INC., July 19, 2007.
 
 
 
 

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 hereunto duly authorized.

 
  MEDIA GENERAL, INC.
(Registrant)
   
   
Date July 19, 2007
 
 
/s/ John A. Schauss  
John A. Schauss
Vice President - Finance
and Chief Financial Officer
 
 
 
 
 
 EX-99.1 2 v081353_ex99-1.htm Unassociated Document
  
 
 

FOR IMMEDIATE RELEASE
Thursday, July 19, 2007

Media General Reports June 2007 Revenues

RICHMOND, Va. - Media General, Inc. (NYSE: MEG) today reported June 2007 total revenues of $72.5 million, a 3.4 percent increase from June 2006, including the revenues of four NBC television stations acquired June 26, 2006. Excluding the new stations, total revenues declined 7.5 percent. By business segment, Publishing Division total revenues decreased 10.1 percent. Broadcast Division total revenues increased 24.8 percent, including the new stations, and decreased 7.8 percent, excluding the new stations. Interactive Media Division total revenues rose 58.9 percent.

Publishing Division
 
Newspaper advertising revenues in June declined $4.4 million, or 11.7 percent, reflecting lower spending in all advertising categories, most notably Classified advertising at The Tampa Tribune, which was down 37.7 percent.

Total Classified advertising revenues decreased $3 million, or 17.5 percent. The Richmond Times-Dispatch and Winston Salem-Journal reported declines of 2.3 percent and 11.3 percent, respectively. The Community newspapers were down 6.4 percent.

Employment linage at the company’s three metro newspapers decreased 28.5 percent. This included declines of 50.1 percent at The Tampa Tribune, 14.9 percent at the Richmond Times-Dispatch, and
31.1 percent at the Winston-Salem Journal.

Automotive linage for the three metros decreased 17.2 percent. The Richmond Times-Dispatch generated a 4.2 percent increase due to new advertising incentives, while The Tampa Tribune and Winston-Salem Journal reported declines of 17.1 percent and 39.9 percent, respectively.

Real estate linage for the three metros was down 36.8 percent. The Richmond Times-Dispatch saw a 3.9 percent decrease, while The Tampa Tribune experienced a 68 percent decrease and the Winston-Salem Journal was down 13.2 percent.
 
Retail advertising revenues in June decreased $1 million, or 6 percent. The Tampa Tribune and its associated newspapers experienced a decline of 12.6 percent, the Richmond Times-Dispatch reported a 3 percent decrease and the Winston-Salem Journal posted a 17.6 percent decline. The decreases at the three metros reflected lower home improvement, furniture store, department store, medical, office supply and financial advertising. The Community newspaper group was up 1.3 percent, reflecting increases in the Alabama and Northern Virginia markets.

National revenues decreased $300,000, or 8.9 percent. The Tampa Tribune and its associated newspapers saw a decrease of 9.8 percent, due to lower financial, automotive and travel advertising. The Richmond Times-Dispatch decreased 17.4 percent, due to lower telecommunications advertising and a major ad campaign by an advertiser last year that was not repeated. The Winston-Salem Journal generated an 11.3 increase, due to higher medical spending.
 
  
(1 of 6)
 
While Circulation revenues declined $290,000, or 4.8 percent, approximately 60 percent of the decrease was the result of a change in wholesale rates to carriers for which there is a corresponding expense decrease. Excluding this impact, Circulation revenues declined 1.9 percent.

Broadcast Division
 
In the Broadcast Division, gross time sales increased $6.7 million, or 28.8 percent, including the new stations. Same-station time sales decreased 7.5 percent, entirely due to lower Political spending in this off-election year. Excluding Political, Local and National time sales increased 1.2 percent. In most markets, Local and National transactional time sales remained soft, particularly at a number of NBC-affiliated stations, including Tampa.

Local time sales increased $4.9 million, or 35.6 percent, including the new stations. Same-station Local time sales declined 1.4 percent, mostly due to lower spending in the furniture and fast food categories, partially offset by higher automotive and transportation advertising.

National time sales increased $3.6 million, or 50.6 percent, including the new stations. Same-station National time sales rose 6.2 percent, as a result of higher spending in the corporate, services, and furniture categories.

Political revenues of $340,000 compared to $2.2 million last June, and represented early campaign spending from gubernatorial and lieutenant governor races in Louisiana and Mississippi and issue advertising in Ohio, Rhode Island and South Carolina.

Interactive Media Division
 
Interactive Media Division revenues increased 58.9 percent, including the new NBC station Web sites, and higher sales from the division’s Blockdot advergaming business. Page views and visitor sessions increased 20.6 percent and 26.5 percent, respectively, including the new NBC station Web sites. Sluggish Classified advertising spending continued in most markets, particularly Tampa, and online Classified revenues were down 5.6 percent. Local revenues increased 66 percent over last year, reflecting increased direct sales. National/Regional advertising more than doubled as a result of higher spending from national networks, particularly in the automotive and telecommunications categories at TBO.com in Tampa. The launch of the Yahoo!HotJobs Phase A initiative was completed in June at all Media General newspaper Web sites. Phase B, featuring new products and capabilities, was launched at TBO.com on June 20.

About Media General
 
Media General is a multimedia company operating leading newspapers, television stations and online enterprises primarily in the Southeastern United States. The company’s publishing assets include three metropolitan newspapers, The Tampa Tribune, Richmond Times-Dispatch, and Winston-Salem Journal; 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South
Carolina; and more than 150 weekly newspapers and other publications. The company’s broadcasting assets include 23 network-affiliated television stations that reach more than 32 percent of the television households in the Southeast and nearly 9.5 percent of those in the United States. The company’s interactive media assets include more than 75 online enterprises that are associated with its newspapers and television stations. Media General also owns a 33 percent interest in SP Newsprint Company, a manufacturer of recycled newsprint.
 
Investor Contact:   Media Contact:
Lou Anne J. Nabhan   Ray Kozakewicz
(804) 649-6103    (804) 649-6748
 
  
(2 of 6)
 
MEDIA GENERAL INC.
Revenues and Page Views

   
June
      
   
2007
  
2006
  
% Change
  
               
Revenues (000)
  
$
72,460
  
$
70,068
    
3.4
%
Publishing
    
40,546
   
45,109
   
(10.1
)%
Broadcast
    
29,178
   
23,374
   
24.8
%
Interactive Media
    
3,244
   
2,041
   
58.9
%
Eliminations
    
(508
)
  
(456
)
  
(11.4
)%
                     
Discontinued Operations (1)
    
—
    
3,535
   
—
  
                     
                     
Selected Publishing Revenues (000)
                    
By Category
                    
Advertising
  
$
33,543
  
$
37,967
    
(11.7
)%
Classified
    
14,245
   
17,276
   
(17.5
)%
Retail
    
15,749
   
16,758
   
(6.0
)%
National
    
3,097
   
3,400
   
(8.9
)%
Other
    
452
   
533
   
(15.2
)%
Circulation
    
5,775
   
6,063
   
(4.8
)%
By Property
                    
Richmond
    
10,325
   
10,899
   
(5.3
)%
Tampa
    
11,404
   
14,716
   
(22.5
)%
Winston-Salem
    
3,728
   
4,104
   
(9.2
)%
Community Newspapers
    
14,924
   
15,253
   
(2.2
)%
                     
                     
Advertising Revenues (000)
                    
Richmond
  
$
8,249
  
$
8,603
    
(4.1
)%
Tampa
    
9,876
   
13,471
   
(26.7
)%
Winston-Salem
    
2,836
   
3,263
   
(13.1
)%
Community Newspapers
    
12,422
   
12,495
   
(0.6
)%
                     
                     
Broadcast Time Sales (gross) (000)
  
$
29,924
  
$
23,238
    
28.8
%
Local
    
18,811
   
13,870
   
35.6
%
National
    
10,774
   
7,156
   
50.6
%
Political
    
339
   
2,212
   
(84.7
)%
                     
                     
Selected Online Total Page Views
                    
Total Web Sites
    
52,276,345
   
43,353,875
   
20.6
%
(Excluding Game Sites)
                    
TBO.com
   
17,959,735
   
18,380,495
   
(2.3
)%
(Tampa, Fla.)
                    
inRich/TimesDispatch.com
    
8,833,208
   
9,592,911
   
(7.9
)%
(Richmond, Va.)
                    
JournalNow.com
   
3,037,999
   
3,004,204
   
1.1
%
(Winston-Salem, N.C.)
                    
 
Notes: All data are subject to later adjustment.
(1) Revenues from certain broadcast and interactive media operations that the Company divested in 2006.
 
(3 of 6)
 
MEDIA GENERAL INC.
Revenues and Page Views

   
Year-to-Date
      
   
2007
  
2006
  
% Change
  
               
Revenues (000)
  
$
471,542
  
$
447,501
    
5.4
%
Publishing
    
276,123
   
299,014
   
(7.7
)%
Broadcast
    
181,373
   
138,931
   
30.5
%
Interactive Media
    
17,457
   
12,716
   
37.3
%
Eliminations
    
(3,411
)
  
(3,160
)
  
(7.9
)%
                     
Discontinued Operations (1)
    
—
    
20,219
   
—
  
                     
                     
Selected Publishing Revenues (000)
                    
By Category
                    
Advertising
  
$
228,475
  
$
250,580
    
(8.8
)%
Classified
    
97,357
   
114,807
   
(15.2
)%
Retail
    
108,309
   
111,164
   
(2.6
)%
National
    
19,778
   
20,950
   
(5.6
)%
Other
    
3,031
   
3,659
   
(17.2
)%
Circulation
    
39,686
   
41,454
   
(4.3
)%
By Property
                    
Richmond
    
68,372
   
70,158
   
(2.5
)%
Tampa
    
84,175
   
101,196
   
(16.8
)%
Winston-Salem
    
25,399
   
26,793
   
(5.2
)%
Community Newspapers
    
97,186
   
99,863
   
(2.7
)%
                     
                     
Advertising Revenues (000)
                    
Richmond
  
$
54,513
  
$
55,169
    
(1.2
)%
Tampa
    
73,236
   
91,609
   
(20.1
)%
Winston-Salem
    
20,013
   
21,436
   
(6.6
)%
Community Newspapers
    
79,813
   
81,404
   
(2.0
)%
                     
                     
Broadcast Time Sales (gross) (000)
  
$
188,520
  
$
140,319
    
34.4
%
Local
    
117,614
   
89,151
   
31.9
%
National
    
69,194
   
46,886
   
47.6
%
Political
    
1,712
   
4,282
   
(60.0
)%
                     
                     
Selected Online Total Page Views
                    
Total Web Sites
    
345,248,520
   
271,814,250
   
27.0
%
(Excluding Game Sites)
                    
TBO.com
   
106,656,784
   
98,352,844
   
8.4
%
(Tampa, Fla.)
                    
inRich/TimesDispatch.com
    
63,546,116
   
68,370,435
   
(7.1
)%
(Richmond, Va.)
                    
JournalNow.com
   
22,779,676
   
21,800,608
   
4.5
%
(Winston-Salem, N.C.)
                    
 
Notes: All data are subject to later adjustment.
(1) Revenues from certain broadcast and interactive media operations that the Company divested in 2006.
 
(4 of 6)
 
MEDIA GENERAL, INC.
Daily Newspapers Advertising Linage*

   
June
      
   
2007
  
2006
  
% Change
  
Richmond Times-Dispatch
              
Retail 
    
26,756
   
30,516
   
(12.3
)%
National 
    
8,147
   
9,837
   
(17.2
)%
Classified 
    
64,948
   
65,696
   
(1.1
)%
 Total
    
99,851
   
106,049
   
(5.8
)%
Tampa Tribune
                    
Retail 
    
32,415
   
38,860
   
(16.6
)%
National 
    
9,092
   
12,541
   
(27.5
)%
Classified  
    
86,459
   
123,103
   
(29.8
)%
 Total
    
127,966
   
174,504
   
(26.7
)%
Winston-Salem Journal
                    
Retail  
    
22,954
   
33,623
   
(31.7
)%
National 
    
7,988
   
6,851
   
16.6
%
Classified 
    
48,543
   
54,504
   
(10.9
)%
 Total
    
79,485
   
94,978
   
(16.3
)%
Community Dailies
                    
Retail 
    
303,452
   
319,957
   
(5.2
)%
National 
    
16,054
   
22,634
   
(29.1
)%
Classified 
    
417,340
   
427,197
   
(2.3
)%
 Total
    
736,846
   
769,788
   
(4.3
)%
Media General Dailies Total
                    
Retail 
    
385,577
   
422,956
   
(8.8
)%
National 
    
41,281
   
51,863
   
(20.4
)%
Classified 
    
617,290
   
670,500
   
(7.9
)%
 Total
    
1,044,148
   
1,145,319
   
(8.8
)%
 
* Advertising is in column inches - full run only
 
(5 of 6)
 
MEDIA GENERAL, INC.
Daily Newspapers Advertising Linage*

   
Year-to-Date
      
   
2007
  
2006
  
% Change
  
Richmond Times-Dispatch
              
Retail 
    
182,251
   
191,751
   
(5.0
)%
National 
    
55,435
   
59,258
   
(6.5
)%
Classified 
    
413,416
   
440,100
   
(6.1
)%
 Total
    
651,102
   
691,109
   
(5.8
)%
Tampa Tribune
                    
Retail 
    
260,837
   
272,145
   
(4.2
)%
National 
    
58,534
   
80,189
   
(27.0
)%
Classified  
    
584,454
   
859,498
   
(32.0
)%
 Total
    
903,825
   
1,211,832
   
(25.4
)%
Winston-Salem Journal
                    
Retail  
    
177,984
   
220,079
   
(19.1
)%
National 
    
46,656
   
49,179
   
(5.1
)%
Classified 
    
301,045
   
347,942
   
(13.5
)%
 Total
    
525,685
   
617,200
   
(14.8
)%
Community Dailies
                    
Retail 
    
1,963,858
   
2,042,828
   
(3.9
)%
National 
    
115,287
   
123,823
   
(6.9
)%
Classified 
    
2,566,975
   
2,721,332
   
(5.7
)%
 Total
    
4,646,120
   
4,887,983
   
(4.9
)%
Media General Dailies Total
                    
Retail 
    
2,584,930
   
2,726,803
   
(5.2
)%
National 
    
275,912
   
312,449
   
(11.7
)%
Classified 
    
3,865,890
   
4,368,872
   
(11.5
)%
 Total
    
6,726,732
   
7,408,124
   
(9.2
)%
 
* Advertising is in column inches - full run only
 
SOURCE Media General Inc.
-0-
   07/19/2007
/CONTACT: Investors, Lou Anne J. Nabhan, +1-804-649-6103, or Media, Ray Kozakewicz, +1-804-649-6748, both of Media General Inc./
 
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Media General Reports Second-Quarter 2007 Results

RICHMOND, Va., July 19 /PRNewswire-FirstCall/ -- Media General, Inc. (NYSE: MEG) today reported net income of $5.1 million, or 22 cents per diluted share, compared to net income of $20.2 million, or 85 cents per diluted share, in the 2006 second quarter. In the 2006 quarter, income from continuing operations was $18.3 million, or 77 cents per diluted share, which excluded the four CBS stations that Media General divested in 2006. Total company revenues of $241.2 million increased 4.8 percent, including the four new NBC stations acquired on June 26, 2006. Excluding the new stations, total revenues decreased 5.7 percent.
 
"Our second-quarter results mostly reflected a decrease in Publishing Division operating profit, driven primarily by a significant decline at The Tampa Tribune, an equity loss from SP Newsprint and higher interest expense," said Marshall N. Morton, president and chief executive officer.
 
"Over the past few years, we saw significant growth in our Tampa operations, as the economy and market conditions in Florida outpaced many U.S. markets. Florida's economy, however, has dramatically reversed, driven by an adjustment in the housing market following several record-breaking years," said Mr. Morton. "These unfavorable market developments, together with substantial increases in property insurance, property taxes and energy costs, have led to reduced discretionary spending by consumers and businesses. Weak consumer confidence has also had a negative impact on other sectors of the economy, and advertisers have significantly reduced spending in many categories.
 
"The Tampa Tribune's performance improvement program, announced in April, is largely implemented. Certain operations have been centralized and consolidated and others outsourced. At the same time, the newspaper has implemented a number of sales initiatives in all of the Classified categories, and has also developed content improvements," he said.
 
"Lower Broadcast Division profit in the second quarter included a $2.8 million decline in Political spending in this off-election year. While National time sales increased, transactional time sales overall remained soft in many markets," he said. "The performance of our four new NBC stations improved in the second quarter compared to this year's first quarter. We have implemented a number of sales and programming initiatives to help drive revenue and audience growth at the new stations.
 
"The Interactive Media Division delivered record revenues of $9.5 million and generated its first profitable quarter from operations. Page views and visitor sessions increased 29 percent and 36 percent, respectively, including the new NBC station Web sites," said Mr. Morton.

Publishing Division
 
Publishing Division profit in the quarter declined by 28.7 percent. Total Publishing revenues decreased 9.6 percent, and newspaper advertising revenues were down 11 percent from 2006.
 
Classified advertising revenues decreased $9.6 million, or 16.7 percent. The Richmond Times-Dispatch was even with last year, while The Tampa Tribune and Winston-Salem Journal reported decreases of 36.7 percent and 8.9 percent, respectively. In the aggregate, the Community Newspapers group reported a decrease of 5.2 percent in Classified revenues.
 
Help-wanted linage for the company's three metro newspapers declined 22.8 percent, including decreases of 31.7 percent, 15.8 percent and 27.1 percent at The Tampa Tribune, Richmond Times-Dispatch and Winston-Salem Journal, respectively.
 
Automotive linage was down 20.3 percent for the three metros, including decreases of 28.3 percent, 6.4 percent and 16.8 percent, at The Tampa Tribune, Richmond Times-Dispatch and Winston-Salem Journal, respectively.
 
(1 of 8)
 
Real estate linage at the three metros decreased 27.2 percent, compared to a very strong real estate market last year, especially in Tampa. The Richmond Times-Dispatch generated an increase of 6.4 percent, reflecting strong advertising from real estate developers and longer average periods that houses are remaining on the market. The Tampa Tribune and Winston-Salem Journal saw declines of 49.9 percent and 15.1 percent, respectively, from the prior year.
 
Retail revenues decreased $3.7 million, or 6.5 percent. The Tampa Tribune and its associated daily newspapers saw a 9 percent decline in Retail revenues, which reflected lower home improvement, furniture store, grocery store and medical advertising, partially offset by increased revenues from a Spanish-language weekly newspaper and a specialty magazine. Retail revenues at the Richmond Times-Dispatch and its associated weekly newspapers declined 4 percent, reflecting lower spending in the department store, financial and furniture store categories as well as the elimination of two products, partially offset by revenues from a new weekly newspaper. At the Winston-Salem Journal, Retail revenues were down 11.2 percent, and included decreases in the home improvement, financial and department store categories. Retail revenues for the Community Newspaper group declined
4.3 percent.
 
National advertising revenues decreased $410,000, or 4.1 percent. The Tampa Tribune and its associated daily newspapers decreased 9.5 percent, driven by lower spending in the automotive, travel and grocery store advertising categories. The Richmond Times-Dispatch was down 3.5 percent, because a major ad campaign last year did not repeat in 2007. Running counter to the trend, the Winston-Salem Journal reported a 5.1 percent increase in National revenues, primarily reflecting higher medical advertising and the increased use of color.
 
While Circulation revenues for the second quarter decreased $920,000, or 4.5 percent, approximately 70 percent of the decline was the result of a change in wholesale rates to carriers, for which there is a corresponding expense reduction. Excluding this change, Circulation revenues were down only 1.4 percent. Five Media General newspapers increased their net-paid Daily Circulation for the second quarter, and six did so for Sunday.
 
Total Publishing Division expenses decreased 4.5 percent for the quarter, including a 21.2 percent decline in newsprint expense, mostly the result of lower consumption of 12.9 percent. The average price per ton for newsprint decreased $57, or 9.5 percent, from last year. Salaries and benefits declined 1.4 percent and 5.6 percent, respectively.

Broadcast Division
 
Broadcast Division profit for the quarter declined $402,000, or 2 percent, including the new NBC stations. Excluding these stations, segment profit decreased 22.5 percent. Total Broadcast revenues grew 30.6 percent, to $97.1 million, including the new stations. Same-station total revenues decreased by 2.1 percent.
 
Gross time sales increased $25 million, or 33.4 percent, including the new stations, and same-station time sales decreased 3.4 percent. These results were mostly due to a reduction in Political spending in this off-election year.
 
Local time sales increased $15.8 million, or 34 percent, including the new stations. Same-station Local time sales decreased 1.9 percent. Lower spending in the automotive, furniture, health care and fast food categories was partially offset by higher entertainment and home improvement advertising.
 
National time sales increased $12 million, or 49.6 percent, including the new stations. Same-station National time sales rose 6 percent. Categories showing increases for the quarter included telecommunications, services and entertainment, while automotive and fast food advertising declined.
 
Total Political revenues of $1.3 million compared with $4.1 million in the 2006 quarter. The current year reflected spending for gubernatorial races in Kentucky, Louisiana, Mississippi and North Carolina, and issue advertising in Florida, Ohio, Rhode Island, South Carolina and Alabama.
 
(2 of 8)
 
Same-station Broadcast expenses increased 4 percent, excluding higher cost of goods sold at the division's equipment subsidiary. The increase mostly reflected higher salaries, benefits, programming and depreciation.

Interactive Media Division
 
Interactive Media Division revenues of $9.5 million increased 44.5 percent over the 2006 quarter, including Web sites associated with the new NBC stations. The performance was led by the division's Blockdot advergaming business, which was profitable for the quarter on revenues that more than tripled from the prior year. Segment profit in the quarter of $346,000 compared to a loss of $798,000 in the 2006 period. Local online revenues increased 66 percent as the result of growth in banners and sponsorships and increased direct sales and training. National/Regional revenues more than doubled, due to expanded network relationships. Classified advertising was down 7.2 percent, mostly reflecting lower help-wanted and real estate advertising, partially offset by revenues from the Yahoo!HotJobs initiative.

Other Results
 
Interest expense increased by $7.1 million, as a result of the borrowings for the acquisition of the NBC stations. The company's share of SP Newsprint's results was a loss of $2.4 million compared to last year's income of $4.6 million. This decline was due to lower consumption and newsprint prices as well as higher raw materials costs. Corporate expense was down 6.6 percent, reflecting lower retirement- related expenses.
 
EBITDA (income from continuing operations before interest, taxes, depreciation and amortization) in the second quarter of 2007 was $43.7 million, compared with $54.3 million in the 2006 period. After-Tax Cash Flow was $25.6 million compared to $35.5 million in the prior year. Free Cash Flow for the quarter (After-Tax Cash Flow minus capital expenditures) was $7.3 million, compared with $9.8 million in the prior-year period.
 
Media General provides the non-GAAP financial metrics EBITDA, After-Tax Cash Flow, and Free Cash Flow. The company believes these metrics are useful in evaluating financial performance and are common alternative measures used by investors, financial analysts and rating agencies. These groups use EBITDA, along with other measures, 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.

Outlook
 
While visibility is limited, particularly in Tampa, Media General provided the following general outlook for the third quarter of 2007. The Publishing Division expects continued downward pressure from lower Classified advertising and any revenue decline in the quarter will be partially offset by lower newsprint expense.
 
The Broadcast Division does not expect to be able to recover entirely the absence of last year's third-quarter Political revenues of $11.5 million. The Interactive Media Division expects revenue growth of approximately 50 percent, led by Blockdot's advergaming business. The company expects that its share of SP Newsprint's results will be a loss of approximately $5 million compared to last year's income of $3.5 million, due largely to weak newsprint prices.

Conference Call and Webcast
 
The company will hold a conference call with financial analysts today at 11 a.m. ET. The conference call will be available to the media and general public through a limited number of listen-only dial-in conference lines and via simultaneous Webcast. To dial in to the call, listeners may call 1-888-396-2386 about 10 minutes prior to the 11 a.m. start. Listeners may also access the live Webcast by logging on to www.mediageneral.com and clicking on the "Live Earnings Conference" link on the homepage about 10 minutes in advance. A replay of the Webcast will be available online at www.mediageneral.com beginning at 1 p.m. today. A telephone replay is also available, beginning at 1 p.m. and ending at 12 p.m. July 26, 2007, by dialing 1-888-286-8010 or 617-801-6888, and using the passcode 28418641.
 
(3 of 8)
 
Forward-Looking Statements
 
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 multimedia company operating leading newspapers, television stations and online enterprises primarily in the Southeastern United States. The company's publishing assets include three metropolitan newspapers, The Tampa Tribune, Richmond Times-Dispatch, and Winston-Salem Journal; 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina; and more than 150 weekly newspapers and other publications. The company's broadcasting assets include 23 network-affiliated television stations that reach more than 32 percent of the television households in the Southeast and nearly 9.5 percent of those in the United States. The company's interactive media assets include more than 75 online enterprises that are associated with its newspapers and television stations. Media General also owns a 33 percent interest in SP Newsprint Company, a manufacturer of recycled newsprint.
 
(4 of 8)
 
Media General, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS

 
  
Thirteen Weeks Ending
  
Twenty-Six Weeks Ending
  
(Unaudited, in thousands
 
July 1,
 
June 25,
 
July 1,
 
June 25,
  
except per share amounts)
 
2007
 
2006
 
2007
 
2006
  
 
                  
Revenues
 
$
241,188
  
$
230,058
  
$
471,542
  
$
447,501
  
 
                          
Operating costs:
                          
Production
   
106,926
   
97,403
   
216,630
   
193,521
  
Selling, general and
                         
administrative
   
88,674
   
82,981
   
182,013
   
168,630
  
Depreciation and amortization
   
20,450
   
17,200
   
41,073
   
34,207
  
Total operating costs
   
216,050
    
197,584
   
439,716
   
396,358
  
Operating income
   
25,138
   
32,474
   
31,826
   
51,143
  
 
                          
Other income (expense):
                          
Interest expense
   
(15,186
)
  
(8,106
)
  
(30,160
)
  
(15,648
)
Investment income (loss)
                         
- unconsolidated affiliates
   
(2,305
)
  
4,508
   
(4,606
)
  
4,839
  
Other, net
   
379
   
162
   
771
   
465
  
Total other expense
   
(17,112
)
  
(3,436
)
  
(33,995
)
  
(10,344
)
 
                          
Income (loss) from continuing
                         
operations before income taxes
   
8,026
   
29,038
   
(2,169
)
  
40,799
  
 
                          
Income taxes
   
2,906
   
10,776
   
(785
)
  
15,198
  
 
                          
Income (loss) from continuing
                         
operations
   
5,120
   
18,262
   
(1,384
)
  
25,601
  
Income from discontinued
                         
operations (net of tax)
   
—
    
1,914
   
—
    
1,242
  
Net income (loss)
 
$
5,120
  
$
20,176
  
$
(1,384
)
$
26,843
  
 
                          
Net income (loss) per common share:
                          
Income (loss) from continuing
                         
operations
 
$
0.23
  
$
0.77
  
$
(0.06
)
$
1.09
  
Discontinued operations
   
—
    
0.08
   
—
    
0.05
  
Net income (loss)
 
$
0.23
  
$
0.85
  
$
(0.06
)
$
1.14
  
 
                          
Net income (loss) per common
                         
share - assuming dilution:
                          
Income (loss) from continuing
                         
operations
 
$
0.22
  
$
0.77
  
$
(0.06
)
$
1.08
  
Discontinued operations
   
—
    
0.08
   
—
    
0.05
  
Net income (loss)
 
$
0.22
  
$
0.85
  
$
(0.06
)
$
1.13
  
 
                          
Weighted-average common shares
                         
outstanding:
                          
Basic
   
22,637
   
23,591
   
23,146
   
23,590
  
Diluted
   
22,835
   
23,763
   
23,146
   
23,787
  
 
(5 of 8)
 
Media General, Inc.
BUSINESS SEGMENTS
 
(Unaudited, in thousands)
  
Publishing
 
Broadcast
  
Interactive Media
 
Eliminations
  
Total
  
                       
Quarter Ended July 1, 2007
                      
Consolidated revenues
 
$
136,381
  
$
97,088
  
$
9,450
  
$
(1,731
)
$
241,188
  
                                 
Segment operating cash flow
$
29,014
$
27,378
$
573
  
 
$
 56,965
Recovery on investment
       
 
    
188
       
188
  
Depreciation and amortization
   
(6,438
)
  
(7,531
)
  
(415
)
        
(14,384
)
 
                                
Segment profit
 
$
22,576
  
$
19,847
  
$
346
          
42,769
  
 
                                
Unallocated amounts:
                                
Interest expense
                         
(15,186
)
Equity in net loss of unconsolidated affiliates
                         
(2,305
)
Acquisition intangibles amortization
                         
(4,887
)
Corporate expense
                         
(10,020
)
Other
                         
(2,345
)
                                 
Consolidated income before income taxes
                       
$
8,026
  
 
                                
Quarter Ended June 25, 2006
                                
Consolidated revenues
 
$
150,851
  
$
74,345
  
$
6,540
  
$
(1,678
)
$
230,058
  
                               
Segment operating cash flow
 
$
38,158
  
$
25,174
  
$
(436
)
      
$
62,896
  
Depreciation and amortization
   
(6,495
)
  
(4,925
)
  
(362
)
        
(11,782
)
 
                                
Segment profit (loss)
 
$
31,663
  
$
20,249
  
$
(798
)
        
51,114
  
                                 
Unallocated amounts:
                                
Interest expense
                           
(8,106
)
Equity in net income of unconsolidated affiliates
                           
4,508
  
Acquisition intangibles amortization
                           
(4,164
)
Corporate expense
                           
(10,729
)
Other
                           
(3,585
)
                                 
Consolidated income from continuing
                               
    operations before income taxes
                         
$
29,038
  
 
                                
Six Months Ended July 1, 2007
                                
Consolidated revenues
 
$
276,123
  
$
181,373
  
$
17,457
  
$
(3,411
)
$
471,542
  
                                 
Segment operating cash flow
 
$
54,319
  
$
43,003
  
$
415
        
$
97,737
  
Recovery on investment
                188            188  
Depreciation and amortization
   
(12,889
)
  
(15,080
)
  
(860
)
        
(28,829
)
                               
Segment profit (loss)
 
$
41,430
  
$
27,923
  
$
(257
)
        
69,096
  
 
                                
Unallocated amounts:
                                
Interest expense
                           
(30,160
)
Equity in net loss of  unconsolidated affiliates
                           
(4,606
)
Acquisition intangibles amortization
                           
(9,770
)
Corporate expense
                           
(20,275
)
Other
                           
(6,454
)
                                 
Consolidated loss before income taxes
                         
$
(2,169
)
 
                                
Six Months Ended June 25, 2006
                                
Consolidated revenues
 
$
299,014
  
$
138,931
  
$
12,716
  
$
(3,160
)
$
447,501
  
                                 
Segment operating cash flow
 
$
71,860
  
$
42,177
  
$
(985
)
      
$
113,052
  
Depreciation and amortization
   
(12,750
)
  
(9,836
)
  
(725
)
        
(23,311
)
 
                                
Segment profit (loss)
 
$
59,110
  
$
32,341
  
$
(1,710
)
        
89,741
  
 
                                
Unallocated amounts:
                                
Interest expense
                           
(15,648
)
Equity in net income of unconsolidated affiliates
                           
4,839 
  
Acquisition intangibles amortization
                           
(8,327
)
Corporate expense
                           
(21,412
)
Other
                           
(8,394
)
                                 
Consolidated income from continuing
                               
operations before income taxes
                         
$
40,799
  
 
(6 of 8)
 
Media General, Inc.
CONSOLIDATED BALANCE SHEETS
 
 
  
July 1,
 
December 31,
  
(Unaudited, in thousands)
 
2007
 
2006
  
 
          
ASSETS
          
 
          
Current assets:
          
Cash and cash equivalents
 
$
12,195
  
$
11,930
  
Accounts receivable-net
   
131,364
   
139,538
  
Inventories
   
6,917
   
9,650
  
Other
   
43,201
   
41,630
  
               
Total current assets
   
193,677
   
202,748
  
 
              
Investments in unconsolidated affiliates
   
80,255
   
84,854
  
 
              
Other assets
   
77,160
   
71,117
  
 
              
Property, plant and equipment - net
   
489,523
   
490,049
  
 
              
Excess of cost over fair value of  net identifiable
             
assets of acquired businesses - net
   
936,523
   
935,023
  
 
              
FCC licenses and other intangibles - net
   
712,076
   
721,437
  
               
Total assets
 
$
2,489,214
  
$
2,505,228
  
 
              
LIABILITIES AND STOCKHOLDERS' EQUITY
              
 
              
Current liabilities:
              
Accounts payable
 
$
24,780
  
$
34,292
  
Accrued expenses and other liabilities
   
86,078
   
92,712
  
Income taxes payable
   
—
    
4,516
  
               
Total current liabilities
   
110,858
   
131,520
  
               
 
              
Long-term debt
   
972,000
   
916,320
  
 
              
Deferred income taxes
   
287,992
   
281,670
  
 
              
Other liabilities and deferred credits
   
240,354
   
238,358
  
 
              
Stockholders' equity(1)
   
878,010
   
937,360
  
               
Total liabilities and stockholders' equity
 
$
2,489,214
  
$
2,505,228
  
 
(1) 2007 Includes a $4.9 million direct charge related to the adoption of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109.

(7 of 8)
 
Media General, Inc.
EBITDA, After-tax Cash Flow, and Free Cash Flow
 
 
  
Thirteen Weeks Ending
  
Twenty-Six Weeks Ending
  
 
  
July 1,
 
June 25,
  
July 1,
  
June 25,
  
(Unaudited, in thousands)
 
2007
 
2006
  
2007
  
2006
  
 
                  
Income (loss) from continuing operations
 
$
5,120
  
$
18,262
  
$
(1,384
)
$
25,601
  
Interest
   
15,186
   
8,106
   
30,160
   
15,648
  
Taxes
   
2,906
   
10,776
   
(785
)
  
15,198
  
Depreciation and amortization
   
20,450
   
17,200
    
41,073
   
34,207
  
 
                          
EBITDA from continuing operations
 
$
43,662
  
$
54,344
  
$
69,064
  
$
90,654
  
                           
Income (loss) from continuing operations
 
$
5,120
  
$
18,262
  
$
(1,384
)
$
25,601
  
Depreciation and amortization
   
20,450
   
17,200
    
41,073
   
34,207
  
 
                          
After-tax cash flow
 
$
25,570
  
$
35,462
  
$
39,689
  
$
59,808
  
 
                          
After-tax cash flow
 
$
25,570
  
$
35,462
  
$
39,689
  
$
59,808
  
Capital expenditures
   
18,300
   
25,704
   
37,791
    
44,431
  
                           
Free cash flow
 
$
7,270
  
$
9,758
  
$
1,898
  
$
15,377
  
 
SOURCE Media General, Inc.
-0-
   07/19/2007
/CONTACT: Investors, Lou Anne J. Nabhan, +1-804-649-6103, or Media, Ray Kozakewicz, +1-804-649-6748/
 
(8 of 8)
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