Media General Reports Third-Quarter 2009 Results; Includes Non-Cash Impairment Charge

RICHMOND, Va., Oct. 21 /PRNewswire-FirstCall/ -- Media General, Inc. (NYSE: MEG) today reported a net loss for the third quarter of 2009 of $62.5 million, or $2.80 per share, including a pretax non-cash impairment charge of $84 million, compared with net income of $6.1 million, or 27 cents per diluted share, in the 2008 period.

Income from continuing operations, adjusting for the above impairment charge and applying a 39 percent tax rate, was $4.4 million, or 20 cents per share, compared with $5.7 million, or 25 cents per share in the prior year. The impairment charge and tax benefit in the quarter are discussed below.

Media General’s third-quarter 2009 results included gains of $1.9 million associated with an insurance recovery, $910,000 from a favorable tax ruling related to the sale of SP Newsprint, and $2 million from implementing a final freeze on a retirement plan, partially offset by a $2.2 million expense from stock-based compensation plans due to an increase in the price of the company’s common stock in the quarter.  The 2008 third quarter included a $500,000 gain associated with an insurance recovery and a $1 million reduction in the previously recognized loss on the sale of SP Newsprint.

“The 18 percent decline in total revenues in the third quarter represents a sequential improvement from the 20 percent decrease in the second quarter of 2009.  The improvement is made more notable when we consider that last year’s third quarter included $12.5 million in Olympics revenues as well as $6 million more in Political revenues,” said Marshall N. Morton, president and chief executive officer.  “Nonetheless, the advertising environment in the third quarter remained challenging, and we experienced lower Classified, Local and National revenues overall.  On the other hand, newspaper circulation revenues increased 11 percent as a result of rate increases, and renewed emphasis on subscription sales after Labor Day is yielding encouraging results.  Cable and satellite retransmission fees were $4.2 million in this year’s third quarter compared to just under $1 million last year,” Mr. Morton said.

“We were pleased with the results of our initiatives to expand the array of products and services we provide via digital media, including online and mobile.  Digital Media revenues in the third quarter increased 2 percent from the prior year and represented 8 percent of total advertising revenues.  Local digital revenues increased 25 percent from a year ago, reflecting the success of new online-only sales initiatives.  Unique visitors increased nearly 30 percent in the quarter,” Mr. Morton said.

“Total operating costs decreased 18 percent from last year’s third quarter, excluding the impairment charge and insurance gains.  Lower expenses were mostly attributable to a 17 percent decrease in compensation expense and a 54 percent decline in newsprint expense,” he said.

Media General had 770 fewer full-time equivalent employees this year than last year.  By the end of 2009, a furlough program will have included a total of 15 days per employee, including four days in the fourth quarter.  Newsprint consumption was down 36 percent, from both lower volumes and conservation efforts, such as our Web-width reductions, and newsprint prices dropped 27 percent from a year ago.

“As we enter the fourth quarter, we are seeing signs of strengthening in advertiser spending.  While we do not expect to fully replace the $23.4 million of Political revenues we generated in last year’s fourth quarter, we believe that Local and National advertiser spending patterns are firming somewhat, especially on the broadcast side.  September produced the smallest revenue decline we’ve seen all year, down 12 percent. 

“Also encouraging are signs that the Tampa and Providence markets have stabilized.  Looking to next year, we anticipate a lift from an improving economy and the promise of Political and Olympics revenues.  Media General is well positioned to benefit from an economic recovery,” he said.

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Market Segments

Effective at the beginning of the third quarter of 2009, Media General changed its management structure from three platform-based divisions to five geographic market segments and a sixth segment that includes the company’s interactive advertising services and certain other operations.  This new structure better focuses all operations on serving customers across multiple media platforms.  Included with this news release are statements that provide the market structure results for the first two quarters of 2009, for all four quarters and full-year 2008, and for full-year 2007.

Virginia/Tennessee segment profits in the third quarter were $10.7 million, a 2 percent decrease from a year ago.  Revenues of $48 million declined 14.7 percent.  The segment benefited from stronger local sales in several regions, and the decline in Political revenues was less significant than in other markets.  Segment expenses decreased 19 percent.

Florida segment profits were $524,000, a 56.5 percent decrease from the prior year.  Total revenues were $36.5 million, down 22.7 percent, mostly the result of recession-induced soft advertising.  In addition, WFLA had $2 million in Political revenues and $2.7 million in Olympics revenues last year.  Expenses decreased 22 percent from last year.

Mid-South segment profits were $5.5 million, an 11.9 percent decrease.  Revenues were $35.5 million, a 13.8 percent decrease.  The 2008 third quarter included $1.2 million in Political revenues and $2.1 million in Olympics revenues.  Expenses decreased 14.8 percent.

North Carolina segment profits were $1.4 million, a 63.3 percent decrease.  Revenues were $18.9 million, a 27.1 percent decline.  The North Carolina television stations were impacted by the absence of $1 million in Political revenues and $2.3 million in Olympics revenues from last year.  Segment expenses declined 20.7 percent.

Ohio/Rhode Island segment profits were $2.5 million, a 46.5 percent decrease from last year.  Total revenues decreased 22.7 percent.  The current quarter results reflected $1.5 million less in Political revenues than last year and the absence of $5 million of revenues from the Olympics.  Operating expenses decreased 12.7 percent.

The Advertising Services and Other segment profits increased 84 percent from last year.  Most of the improvement was generated by DealTaker.com and Blockdot.  DealTaker.com’s revenues increased 21.2 percent, reflecting increased traffic and visitors buying from merchant sites, driven by marketing and sales initiatives.  Blockdot’s revenues increased 29 percent, also driven by sales initiatives.

Impairment

Despite a rise in stock price, weaker-than-expected revenues, combined with the change in management structure, which made impairment testing more granular, led the company to perform a third-quarter impairment test.  That test resulted in an $84 million pretax charge, including $66 million of goodwill and $18 million of FCC licenses, network affiliation agreements, and certain publishing licenses.

Income Taxes

Due to the company’s net-deferred tax asset position, required valuation allowance and intra-period tax allocation rules, the tax benefit of $16.7 million on income from continuing operations for the quarter had an unusual relationship to the pretax loss.  Through nine months, in addition to any period-specific items, the tax benefit on continuing operations was limited to the amount of income tax expense that was attributable to discontinued operations and other comprehensive income items which, in combination with the amounts recorded through the first six months of the year, resulted in a 21.6 percent tax rate for the third quarter.

Other results

Corporate expense declined 44.8 percent, reflecting cost containment actions and a final freeze on a retirement plan.  Acquisition intangibles amortization decreased 40.6 percent, as certain intangible assets were written down as part of previous impairment charges.  Interest expense was approximately $525,000 higher than the prior year, due to higher marginal interest rates, offset in large part by lower average debt levels.

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Debt at the end of the third quarter was $706 million, compared with $712 million at the end of the second quarter of 2009 and $730 million as of the beginning of the year.

EBITDA (income (loss) from continuing operations before interest, taxes, depreciation and amortization) was a deficit of $51.7 million, including the non-cash impairment charge, compared with$36.3million in the 2008 period.  After-Tax Cash Flow, which would not include the impairment charge, was $17.3 million, compared with $22.6 million in the prior year’s quarter.  Capital expenditures in the third quarter of 2009 were $3.6 million, compared with $6.8 million in the prior-year period.  Free Cash Flow (After-Tax Cash Flow minus capital expenditures) was$13.6 million, compared with $15.8 million in the prior-year period.

Media General provides the non-GAAP financial metrics EBITDA from continuing operations, 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.

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 1-800-901-5247 about 10 minutes prior to the 11 a.m. start.  The participant passcode is “Media General.”  Listeners may also access the live Webcast by logging on to www.mediageneral.com and clicking on the “Live Webcast” link on the homepage about 10 minutes in advance.  A replay of the Webcast will be available online at www.mediageneral.com beginning at 2 p.m. today.  A telephone replay is also available, beginning at 2 p.m. today and ending at 2 p.m. on October 28, 2009, by dialing 888-286-8010 or 617-801-6888, and using the passcode 10949244.

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 leading provider of news, information and entertainment across multiple media platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern United States.  Media General’s operations are organized in five geographic market segments and a sixth segment that includes the company’s interactive advertising services and certain other operations.  The company’s operations include 18 network-affiliated television stations and associated Web sites, 21 daily newspapers and associated Web sites, more than 200 specialty publications that include weekly newspapers, and niche publications targeted to various demographic, geographic and topical communities of interest.  Many of the company’s specialty publications have associated Web sites.  Media General operates three interactive advertising services companies:  Blockdot, which specializes in interactive entertainment and advergaming technologies; DealTaker.com, a coupon and shopping Web site; and NetInformer, a leading provider of wireless media and mobile marketing services.

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Media General, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Thirteen Weeks Ending						Thirty-nine Weeks Ending
	Sept. 27,			Sept. 28,			Sept. 27,			Sept. 28,
(Unaudited, in thousands except per share amounts)	2009			2008			2009			2008
Revenues
Publishing	$	84,097		$	103,205		$	263,136		$	327,341
Broadcast		63,375			79,406			187,352			235,474
Digital media and other		10,536			10,327			30,043			28,361
Total revenues		158,008			192,938			480,531			591,176
Operating costs:
Employee compensation		69,966			84,623			230,117			289,614
Production		37,185			48,473			120,313			144,863
Selling, general and administrative		21,354			25,663			68,128			82,146
Depreciation and amortization		14,881			16,846			45,256			54,195
Goodwill and other asset impairment		84,220			---			84,220			778,318
Gain on insurance recovery		(1,915	)		(500	)		(1,915	)		(3,250	)
Total operating costs		225,691			175,105			546,119			1,345,886
Operating income (loss)		(67,683	)		17,833			(65,588	)		(754,710	)
Other income (expense):
Interest expense		(10,489	)		(9,962	)		(31,718	)		(32,799	)
Impairment of and gain (loss) on investments		910			1,375			701			(4,586	)
Other, net		212			248			621			761
Total other expense		(9,367	)		(8,339	)		(30,396	)		(36,624	)
Income (loss) from continuing operations before income taxes		(77,050	)		9,494			(95,984	)		(791,334	)
Income tax expense (benefit)		(16,670	)		3,769			(27,625	)		(253,798	)
Income (loss) from continuing operations		(60,380	)		5,725			(68,359	)		(537,536	)
Discontinued operations:
Income (loss) from discontinued operations (net of tax)		(98	)		422			96			2,516
Income (loss) related to divestiture of operations (net of tax)		(1,984	)		---			5,136			(11,300	)
Net income (loss)	$	(62,462	)	$	6,147		$	(63,127	)	$	(546,320	)
Net income (loss) per common share:
Income (loss) from continuing operations	$	(2.71	)	$	0.25		$	(3.07	)	$	(24.35	)
Discontinued operations		(0.09	)		0.02			0.23			(0.40	)
Net income (loss)	$	(2.80	)	$	0.27		$	(2.84	)	$	(24.75	)
Net income (loss) per common share - assuming dilution:
Income (loss) from continuing operations	$	(2.71	)	$	0.25		$	(3.07	)	$	(24.35	)
Discontinued operations		(0.09	)		0.02			0.23			(0.40	)
Net income (loss)	$	(2.80	)	$	0.27		$	(2.84	)	$	(24.75	)
Weighted-average common shares outstanding:
Basic		22,273			22,101			22,236			22,096
Diluted		22,273			22,101			22,236			22,096

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Media General, Inc.

BUSINESS SEGMENTS

(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended September 27, 2009
Virginia/Tennessee	$	47,980		$	(3,380	)	$	10,674
Florida		36,519			(2,076	)		524
Mid-South		35,513			(3,364	)		5,479
North Carolina		18,946			(1,703	)		1,430
Ohio/Rhode Island		12,314			(849	)		2,509
Advertising Services & Other		7,160			(209	)		1,529
Eliminations		(424	)		-			-
								22,145
Unallocated amounts:
Acquisition intangibles amortization					(1,775	)		(1,775	)
Corporate expense					(1,525	)		(4,752	)
	$	158,008		$	(14,881	)
Interest expense								(10,489	)
Impairment of and gain (loss) on investments								910
Gain on insurance recovery								1,915
Goodwill and other asset impairment								(84,220	)
Other								(784	)
Consolidated loss from continuing
operations before income taxes							$	(77,050	)
(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended September 28, 2008
Virginia/Tennessee	$	56,273		$	(3,452	)	$	10,890
Florida		47,261			(2,553	)		1,205
Mid-South		41,181			(3,547	)		6,222
North Carolina		25,974			(1,788	)		3,900
Ohio/Rhode Island		15,928			(815	)		4,694
Advertising Services & Other		6,656			(226	)		833
Eliminations		(335	)		-			(146	)
								27,598
Unallocated amounts:
Acquisition intangibles amortization					(2,986	)		(2,986	)
Corporate expense					(1,479	)		(8,692	)
	$	192,938		$	(16,846	)
Interest expense								(9,962	)
Impairment of and gain (loss) on investments								1,375
Gain on insurance recovery								500
Other								1,661
Consolidated income from continuing
operations before income taxes							$	9,494

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(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Nine months ended September 27, 2009
Virginia/Tennessee	$	145,408		$	(10,525	)	$	24,033
Florida		116,386			(6,266	)		(2,313	)
Mid-South		106,252			(10,152	)		12,516
North Carolina		57,601			(5,095	)		1,355
Ohio/Rhode Island		36,014			(2,541	)		5,245
Advertising Services & Other		19,963			(657	)		2,894
Eliminations		(1,093	)		2			(46	)
								43,684
Unallocated amounts:
Acquisition intangibles amortization					(5,361	)		(5,361	)
Corporate expense					(4,661	)		(20,014	)
	$	480,531		$	(45,256	)
Interest expense								(31,718	)
Impairment of and gain (loss) on investments								701
Gain on insurance recovery								1,915
Goodwill and other asset impairment								(84,220	)
Other								(971	)
Consolidated loss from continuing
operations before income taxes							$	(95,984	)
(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Nine months ended September 28, 2008
Virginia/Tennessee	$	174,973		$	(11,534	)	$	31,270
Florida		151,471			(7,398	)		(507	)
Mid-South		126,883			(11,115	)		17,383
North Carolina		76,948			(5,336	)		7,057
Ohio/Rhode Island		43,543			(3,085	)		7,041
Advertising Services & Other		19,272			(588	)		474
Eliminations		(1,914	)		8			(999	)
								61,719
Unallocated amounts:
Acquisition intangibles amortization					(10,768	)		(10,768	)
Corporate expense					(4,379	)		(30,166	)
	$	591,176		$	(54,195	)
Interest expense								(32,799	)
Impairment of and gain (loss) on investments								(4,586	)
Gain on insurance recovery								3,250
Goodwill and other asset impairment								(778,318	)
Other								334
Consolidated loss from continuing
operations before income taxes							$	(791,334	)

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Media General, Inc.

CONSOLIDATED BALANCE SHEETS

	September 27,		December 28,
(Unaudited, in thousands)	2009		2008
ASSETS
Current assets:
Cash and cash equivalents	$	6,725	$	7,142
Accounts receivable - net		87,097		102,174
Inventories		5,569		12,035
Other		38,239		38,849
Assets of discontinued operations		-		12,402
Total current assets		137,630		172,602
Other assets		39,107		41,287
Property, plant and equipment - net		427,103		453,627
FCC licenses and other intangibles - net		577,310		666,736
Total assets	$	1,181,150	$	1,334,252
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	24,462	$	41,365
Accrued expenses and other liabilities		79,381		86,291
Liabilities of discontinued operations		-		3,053
Total current liabilities		103,843		130,709
		.
Long-term debt		705,673		730,049
Deferred income taxes		371		-
Other liabilities and deferred credits		241,804		318,267
Stockholders' equity		129,459		155,227
Total liabilities and stockholders' equity	$	1,181,150	$	1,334,252

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Media General, Inc.

EBITDA, After-tax Cash Flow, and Free Cash Flow

	Thirteen Weeks Ending					Thirty-nine Weeks Ending
	September 27,			September 28,		September 27,			September 28,
(Unaudited, in thousands)	2009			2008		2009			2008
Income (loss) from continuing operations	$	(60,380	)	$	5,725	$	(68,359	)	$	(537,536	)
Interest		10,489			9,962		31,718			32,799
Income		(16,670	)		3,769		(27,625	)		(253,798	)
Depreciation and amortization		14,881			16,846		45,256			54,195
EBITDA from continuing operations	$	(51,680	)	$	36,302	$	(19,010	)	$	(704,340	)
Income (loss) from continuing operations	$	(60,380	)	$	5,725	$	(68,359	)	$	(537,536	)
Non-cash impairment charge		62,749			-		62,749			532,084
Depreciation and amortization		14,881			16,846		45,256			54,195
After-tax cash flow excluding non-cash impairment charge	$	17,250		$	22,571	$	39,646		$	48,743
After-tax cash flow	$	17,250		$	22,571	$	39,646		$	48,743
Capital expenditures		3,647			6,797		11,625			19,243
Free cash flow excluding non-cash impairment charge	$	13,603		$	15,774	$	28,021		$	29,500

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Media General, Inc.

BUSINESS SEGMENTS

(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended March 29, 2009
Virginia/Tennessee	$	46,840		$	(3,658	)	$	2,036
Florida		42,240			(2,096	)		(3,030	)
Mid-South		33,798			(3,391	)		1,066
North Carolina		18,981			(1,696	)		(1,559	)
Ohio/Rhode Island		11,086			(845	)		160
Advertising Services & Other		6,562			(225	)		591
Eliminations		(374	)		1			(44	)
								(780	)
Unallocated amounts:
Acquisition intangibles amortization					(1,799	)		(1,799	)
Corporate expense					(1,609	)		(8,634	)
	$	159,133		$	(15,318	)
Interest expense								(9,972	)
Other								(106	)
Consolidated loss from continuing
operations before income taxes							$	(21,291	)
(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended June 28, 2009
Virginia/Tennessee	$	50,587		$	(3,486	)	$	11,324
Florida		37,627			(2,094	)		193
Mid-South		36,941			(3,397	)		5,971
North Carolina		19,675			(1,696	)		1,483
Ohio/Rhode Island		12,614			(847	)		2,577
Advertising Services & Other		6,242			(224	)		776
Eliminations		(299	)		-			(5	)
								22,319
Unallocated amounts:
Acquisition intangibles amortization					(1,787	)		(1,787	)
Corporate expense					(1,526	)		(6,629	)
	$	163,387		$	(15,057	)
Interest expense								(11,257	)
Loss on investments								(209	)
Other								(80	)
Consolidated income from continuing
operations before income taxes							$	2,357

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Media General, Inc.

BUSINESS SEGMENTS

(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended March 30, 2008
Virginia/Tennessee	$	58,188		$	(3,795	)	$	8,972
Florida		52,641			(2,379	)		196
Mid-South		41,605			(3,797	)		4,248
North Carolina		24,318			(1,778	)		711
Ohio/Rhode Island		12,998			(1,151	)		278
Advertising Services & Other		5,197			(160	)		(847	)
Eliminations		(961	)		7			(471	)
								13,087
Unallocated amounts:
Acquisition intangibles amortization					(3,825	)		(3,825	)
Corporate expense					(1,449	)		(11,250	)
	$	193,986		$	(18,327	)
Interest expense								(12,289	)
Equity in net loss of unconsolidated affiliates								(21	)
Other								(2,085	)
Consolidated loss from continuing
operations before income taxes							$	(16,383	)
(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended June 29, 2008
Virginia/Tennessee	$	60,511		$	(4,288	)	$	11,409
Florida		51,569			(2,466	)		(1,908	)
Mid-South		44,097			(3,772	)		6,913
North Carolina		26,656			(1,770	)		2,445
Ohio/Rhode Island		14,617			(1,119	)		2,070
Advertising Services & Other		7,419			(201	)		488
Eliminations		(617	)		1			(383	)
								21,034
Unallocated amounts:
Acquisition intangibles amortization					(3,957	)		(3,957	)
Corporate expense					(1,451	)		(10,224	)
	$	204,252		$	(19,023	)
Interest expense								(10,548	)
Impairment of and loss on investments								(5,940	)
Gain on fire insurance recovery								2,750
Goodwill and other asset impairment								(778,318	)
Other								758
Consolidated loss from continuing
operations before income taxes							$	(784,445	)

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(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended September 28, 2008
Virginia/Tennessee	$	56,273		$	(3,452	)	$	10,890
Florida		47,261			(2,553	)		1,205
Mid-South		41,181			(3,547	)		6,222
North Carolina		25,973			(1,788	)		3,900
Ohio/Rhode Island		15,928			(815	)		4,694
Advertising Services & Other		6,656			(226	)		833
Eliminations		(334	)		-			(146	)
								27,598
Unallocated amounts:
Acquisition intangibles amortization					(2,986	)		(2,986	)
Corporate expense					(1,479	)		(8,692	)
	$	192,938		$	(16,846	)
Interest expense								(9,962	)
Impairment of and income on investments								1,375
Gain on fire insurance recovery								500
Other								1,661
Consolidated income from continuing
operations before income taxes							$	9,494
(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Three months ended December 28, 2008
Virginia/Tennessee	$	57,493		$	(3,709	)	$	9,338
Florida		49,820			(2,507	)		(960	)
Mid-South		44,648			(3,720	)		7,584
North Carolina		28,425			(2,035	)		4,586
Ohio/Rhode Island		19,378			(784	)		6,907
Advertising Services & Other		7,375			(209	)		1,021
Eliminations		(940	)		2			(113	)
								28,363
Unallocated amounts:
Acquisition intangibles amortization					(2,902	)		(2,902	)
Corporate expense					(1,404	)		(8,338	)
	$	206,199		$	(17,268	)
Interest expense								(10,650	)
Recovery on investments								167
Goodwill and other asset impairment								(130,383	)
Other								3,630
Consolidated loss from continuing
operations before income taxes							$	(120,113	)

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(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Twelve months ended December 28, 2008
Virginia/Tennessee	$	232,465		$	(15,244	)	$	40,609
Florida		201,291			(9,905	)		(1,467	)
Mid-South		171,531			(14,836	)		24,967
North Carolina		105,372			(7,371	)		11,642
Ohio/Rhode Island		62,921			(3,869	)		13,949
Advertising Services & Other		26,647			(796	)		1,495
Eliminations		(2,852	)		10			(1,113	)
								90,082
Unallocated amounts:
Acquisition intangibles amortization					(13,670	)		(13,670	)
Corporate expense					(5,783	)		(38,504	)
	$	797,375		$	(71,464	)
Interest expense								(43,449	)
Impairment of and net loss on investments								(4,419	)
Gain on fire insurance recovery								3,250
Goodwill and other asset impairment								(908,701	)
Other								3,965
Consolidated loss from continuing
operations before income taxes							$	(911,446	)

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Media General, Inc.

BUSINESS SEGMENTS

(In thousands)	Revenues			Depreciation & Amortization			Operating Profit (Loss)
Twelve months ended December 30, 2007
Virginia/Tennessee	$	265,879		$	(13,043	)	$	64,683
Florida		253,442			(9,381	)		30,299
Mid-South		180,236			(15,070	)		30,252
North Carolina		110,308			(6,574	)		14,204
Ohio/Rhode Island		60,578			(3,799	)		10,294
Advertising Services & Other		34,486			(551	)		(840	)
Eliminations		(8,636	)		31			(1,755	)
								147,137
Unallocated amounts:
Acquisition intangibles amortization					(17,003	)		(17,003	)
Corporate expense					(7,608	)		(39,061	)
	$	896,293		$	(72,998	)
Interest expense								(59,577	)
Equity in net loss of unconsolidated affiliates								(31,392	)
Gain on fire insurance recovery								17,604
Other								(5,552	)
Consolidated income from continuing
operations before income taxes							$	12,156

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