Condensed Financial Statements

6 Months Ended

Jun. 26, 2011

Condensed Financial Statements

Condensed Financial Statements

12. The Company's subsidiaries guarantee the debt securities of the parent company. The Company's subsidiaries are 100% owned except for the Company's Supplemental 401(k) Plan; all subsidiaries except those in the non-guarantor column (which includes the Supplemental 401(k) Plan) currently guarantee the debt securities. These guarantees are 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.

Media General, Inc.

Condensed Consolidating Balance Sheet

As of June 26, 2011

(In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	11,940		$	1,659		$	—		$	—		$	13,599
Accounts receivable—net		—			86,933			—			—			86,933
Inventories		2			5,763			—			—			5,765
Other		4,647			18,472			—			—			23,119
Total current assets		16,589			112,827			—			—			129,416
Investment in and advances to subsidiaries		274,642			1,975,659			—			(2,250,301	)		—
Intercompany note receivable		678,760			—			—			(678,760	)		—
Other assets		23,092			14,837			286			—			38,215
Property, plant & equipment—net		27,445			360,689			—			—			388,134
FCC licenses and other intangibles—net		—			211,402			—			—			211,402
Excess of cost over fair value of net identifiable assets of acquired businesses		—			355,017			—			—			355,017
TOTAL ASSETS	$	1,020,528		$	3,030,431		$	286		$	(2,929,061	)	$	1,122,184
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	9,463		$	15,443		$	—		$	(6	)	$	24,900
Accrued expenses and other liabilities		36,885			38,131			—			—			75,016
Total current liabilities		46,348			53,574			—			(6	)		99,916
Long-term debt		658,985			—			—			—			658,985
Intercompany loan		—			678,760			—			(678,760	)		—
Retirement, post-retirement and post-employment plans		163,608			—			—			—			163,608
Deferred income taxes		—			45,745			—			—			45,745
Other liabilities and deferred credits		21,889			3,879			746			—			26,514
Stockholders' equity
Common stock		115,723			4,872			—			(4,872	)		115,723
Additional paid-in capital		29,719			2,434,816			(1,930	)		(2,435,168	)		27,437
Accumulated other comprehensive loss		(123,741	)		—			—			—			(123,741	)
Retained earnings		107,997			(191,215	)		1,470			189,745			107,997
Total stockholders' equity		129,698			2,248,473			(460	)		(2,250,295	)		127,416
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,020,528		$	3,030,431		$	286		$	(2,929,061	)	$	1,122,184

Media General, Inc.

Condensed Consolidating Balance Sheet

As of December 26, 2010

(In thousands)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	30,893		$	967		$	—		$	—		$	31,860
Accounts receivable—net		—			102,314			—			—			102,314
Inventories		2			7,051			—			—			7,053
Other		3,112			57,001			—			(30,368	)		29,745
Total current assets		34,007			167,333			—			(30,368	)		170,972
Investment in and advances to subsidiaries		316,619			1,979,076			—			(2,295,695	)		—
Intercompany note receivable		673,265			—			—			(673,265	)		—
Other assets		23,266			17,114			249			—			40,629
Property, plant and equipment—net		27,518			371,421			—			—			398,939
FCC licenses and other intangibles—net		—			214,416			—			—			214,416
Excess of cost over fair value of net identifiable assests of acquired businesses		—			355,017			—			—			355,017
TOTAL ASSETS	$	1,074,675		$	3,104,377		$	249		$	(2,999,328	)	$	1,179,973
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	9,289		$	20,747		$	—		$	(6	)	$	30,030
Accrued expenses and other liabilities		42,434			77,718			—			(30,368	)		89,784
Total current liabilities		51,723			98,465			—			(30,374	)		119,814
Long-term debt		663,341			—			—			—			663,341
Intercompany loan		—			673,265			—			(673,265	)		—
Retirement, post-retirement and post-employment plans		170,670			—			—			—			170,670
Deferred income taxes		—			34,729			—			—			34,729
Other liabilities and deferred credits		22,594			4,039			864			—			27,497
Stockholders' equity
Common stock		115,212			4,872			—			(4,872	)		115,212
Additional paid-in capital		28,806			2,435,790			(1,906	)		(2,436,309	)		26,381
Accumulated other comprehensive loss		(126,799	)		—			—			—			(126,799	)
Retained earnings		149,128			(146,783	)		1,291			145,492			149,128
Total stockholders' equity		166,347			2,293,879			(615	)		(2,295,689	)		163,922
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,074,675		$	3,104,377		$	249		$	(2,999,328	)	$	1,179,973

Media General, Inc.

Condensed Consolidating Statements of Operations

Three Months Ended June 26, 2011

(In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	7,891		$	156,246		$	—		$	(9,351	)	$	154,786
Operating costs:
Employee compensation		4,793			66,376			(289	)		—			70,880
Production		—			37,734			—			(1,324	)		36,410
Selling, general and administrative		575			35,130			—			(8,027	)		27,678
Depreciation and amortization		659			12,382			—			—			13,041
Total operating costs		6,027			151,622			(289	)		(9,351	)		148,009
Operating income		1,864			4,624			289			—			6,777
Other income (expense):
Interest expense		(17,180	)		(12	)		—			—			(17,192	)
Intercompany interest income (expense)		17,210			(17,210	)		—			—			—
Investment income (loss)—consolidated affiliates		(18,502	)		—			—			18,502			—
Other, net		228			24			—			—			252
Total other income (expense)		(18,244	)		(17,198	)		—			18,502			(16,940	)
Income (loss) before income taxes		(16,380	)		(12,574	)		289			18,502			(10,163	)
Income tax expense (benefit)		(998	)		6,217			—			—			5,219
Net income (loss)		(15,382	)		(18,791	)		289			18,502			(15,382	)
Other comprehensive income (net of tax)		1,560			—			—			—			1,560
Comprehensive income (loss)	$	(13,822	)	$	(18,791	)	$	289		$	18,502		$	(13,822	)

Media General, Inc.

Condensed Consolidating Statements of Operations

Three Months Ended June 27, 2010

(In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	10,475		$	191,886		$	—		$	(36,199	)	$	166,162
Operating costs:
Employee compensation		8,653			63,533			260			(1	)		72,445
Production		—			37,364			—			(533	)		36,831
Selling, general and administrative		342			62,229			—			(35,667	)		26,904
Depreciation and amortization		607			13,090			—			—			13,697
Total operating costs		9,602			176,216			260			(36,201	)		149,877
Operating income (loss)		873			15,670			(260	)		2			16,285
Other income (expense):
Interest expense		(17,083	)		(6	)		—			—			(17,089	)
Intercompany interest income (expense)		13,028			(13,028	)		—			—			—
Investment income (loss)—consolidated affiliates		(5,167	)		—			—			5,167			—
Other, net		204			(38	)		—			—			166
Total other income (expense)		(9,018	)		(13,072	)		—			5,167			(16,923	)
Income (loss) before income taxes		(8,145	)		2,598			(260	)		5,169			(638	)
Income tax expense (benefit)		(3,862	)		7,507			—			—			3,645
Net income (loss)		(4,283	)		(4,909	)		(260	)		5,169			(4,283	)
Other comprehensive income (net of tax)		4,443			—			—			—			4,443
Comprehensive income (loss)	$	160		$	(4,909	)	$	(260	)	$	5,169		$	160

Media General, Inc.

Condensed Consolidating Statements of Operations

Six Months Ended June 26, 2011

(In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	17,219		$	306,138		$	—		$	(19,628	)	$	303,729
Operating costs:
Employee compensation		14,965			134,313			(179	)		—			149,099
Production		—			74,404			—			(2,238	)		72,166
Selling, general and administrative		963			70,301			—			(17,390	)		53,874
Depreciation and amortization		1,279			24,781			—			—			26,060
Total operating costs		17,207			303,799			(179	)		(19,628	)		301,199
Operating income		12			2,339			179			—			2,530
Other income (expense):
Interest expense		(33,733	)		(23	)		—			—			(33,756	)
Intercompany interest income (expense)		34,364			(34,364	)		—			—			—
Investment income (loss)—consolidated affiliates		(44,253	)		—			—			44,253			—
Other, net		469			48			—			—			517
Total other income (expense)		(43,153	)		(34,339	)		—			44,253			(33,239	)
Income (loss) before income taxes		(43,141	)		(32,000	)		179			44,253			(30,709	)
Income tax expense (benefit)		(1,955	)		12,432			—			—			10,477
Net income (loss)		(41,186	)		(44,432	)		179			44,253			(41,186	)
Other comprehensive income (net of tax)		3,058			—			—			—			3,058
Comprehensive income (loss)	$	(38,128	)	$	(44,432	)	$	179		$	44,253		$	(38,128	)

Media General, Inc.

Condensed Consolidating Statements of Operations

Six Months Ended June 27, 2010

(In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	18,889		$	375,014		$	—		$	(68,877	)	$	325,026
Operating costs:
Employee compensation		17,237			130,514			287			(1	)		148,037
Production		—			73,205			—			(841	)		72,364
Selling, general and administrative		207			120,061			—			(68,035	)		52,233
Depreciation and amortization		1,220			26,179			—			(1	)		27,398
Total operating costs		18,664			349,959			287			(68,878	)		300,032
Operating income (loss)		225			25,055			(287	)		1			24,994
Other income (expense):
Interest expense		(36,897	)		(15	)		—			—			(36,912	)
Intercompany interest income (expense)		24,132			(24,132	)		—			—			—
Investment income (loss)—consolidated affiliates		(13,043	)		—			—			13,043			—
Other, net		579			(38	)		—			—			541
Total other income (expense)		(25,229	)		(24,185	)		—			13,043			(36,371	)
Income (loss) before income taxes		(25,004	)		870			(287	)		13,044			(11,377	)
Income tax expense (benefit)		(3,975	)		13,627			—			—			9,652
Net income (loss)		(21,029	)		(12,757	)		(287	)		13,044			(21,029	)
Other comprehensive income (net of tax)		5,090			—			—			—			5,090
Comprehensive income (loss)	$	(15,939	)	$	(12,757	)	$	(287	)	$	13,044		$	(15,939	)

Media General, Inc.

Condensed Consolidating Statements of Cash Flows

Six Months Ended June 26, 2011

(In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash (used) provided by operating activities	$	(7,596	)	$	4,634		$	24		$	—		$	(2,938	)
Cash flows from investing activities:
Capital expenditures		(936	)		(9,643	)		—			—			(10,579	)
Net change in intercompany note receivable		(5,495	)		—			—			5,495			—
Other, net		53			206			—			—			259
Net cash (used) provided by investing activities		(6,378	)		(9,437	)		—			5,495			(10,320	)
Cash flows from financing activities:
Increase in bank debt		45,000			—			—			—			45,000
Repayment of bank debt		(50,000	)		—			—			—			(50,000	)
Net change in intercompany loan		—			5,495			—			(5,495	)		—
Other, net		21			—			(24	)		—			(3	)
Net cash (used) provided by financing activities		(4,979	)		5,495			(24	)		(5,495	)		(5,003	)
Net (decrease) increase in cash and cash equivalents		(18,953	)		692			—			—			(18,261	)
Cash and cash equivalents at beginning of year		30,893			967			—			—			31,860
Cash and cash equivalents at end of period	$	11,940		$	1,659		$	—		$	—		$	13,599

Media General, Inc.

Condensed Consolidating Statements of Cash Flows

Six Months Ended June 27, 2010

(In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash (used) provided by operating activities	$	(13,833	)	$	67,246		$	9		$	—		$	53,422
Cash flows from investing activities:
Capital expenditures		(1,027	)		(7,769	)		—			—			(8,796	)
Net change in intercompany note receivable		59,449			—			—			(59,449	)		—
Other, net		60			460			—			—			520
Net cash provided (used) by investing activities		58,482			(7,309	)		—			(59,449	)		(8,276	)
Cash flows from financing activities:
Proceeds from issuance of senior notes		293,070			—			—			—			293,070
Increase in bank debt		134,156			—			—			—			134,156
Repayment of bank debt		(466,625	)		(15	)		—			—			(466,640	)
Debt issuance costs		(12,078	)		—			—			—			(12,078	)
Net change in intercompany loan		—			(59,449	)		—			59,449			—
Other, net		192			—			(9	)		—			183
Net cash (used) provided by financing activities		(51,285	)		(59,464	)		(9	)		59,449			(51,309	)
Net (decrease) increase in cash and cash equivalents		(6,636	)		473			—			—			(6,163	)
Cash and cash equivalents at beginning of year		31,691			1,541			—			—			33,232
Cash and cash equivalents at end of period	$	25,055		$	2,014		$	—		$	—		$	27,069