-----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, AqcMA25CTdWHql3dW82gCLLwzVaW+2JzRvXJewL+JUKHtIooVOtCfGaceCrppyQp e5P7ikm9ZBbLS6L7tcixaA== 0001275287-06-001867.txt : 20060412 0001275287-06-001867.hdr.sgml : 20060412 20060412095055 ACCESSION NUMBER: 0001275287-06-001867 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060412 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060412 DATE AS OF CHANGE: 20060412 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: 06754877 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 mg5369.htm FORM 8-K

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)   April 12, 2006

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 April 12, 2006, the Company issued two releases announcing results for the first quarter of 2006 and revenues for the March 2006 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., April 12, 2006.

 

 

99.2

Press Release issued by MEDIA GENERAL, INC., April 12, 2006.




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 April 12, 2006

 

 

 

 

/s/ John A. Schauss

 

 


 

 

John A. Schauss

 

 

Vice President - Finance and

 

 

Chief Financial Officer



EX-99.1 2 mg5369ex991.htm EXHIBIT 99.1

Exhibit 99.1

Media General Reports First-Quarter 2006 Results

          RICHMOND, Va., April 12 /PRNewswire-FirstCall/ -- Media General, Inc. (NYSE: MEG) today reported net income for the first quarter of 2006 of $6.7 million, or 28 cents per diluted share, compared with income of $9.3 million, or 39 cents per diluted share, before an accounting change, in the first quarter of 2005. Including the cumulative effect of a change in accounting principle, related to valuing acquired intangible assets other than goodwill, the company reported a net loss of $316.2 million in the 2005 first quarter.

           “In the first quarter, we were pleased with the improved performance of our Broadcast and Interactive Media divisions; however, their improvements could not fully offset our initial expensing of stock options and lower profit in the Publishing Division,” said Marshall N. Morton, president and chief executive officer.  Media General began expensing stock options at the beginning of fiscal 2006, as required by an accounting rule, and non-cash stock option expense reduced first-quarter pretax income by $1.6 million.

           “We were especially pleased with our top-line growth in the quarter.  Total revenues increased nearly 4 percent and reflected the underlying strength of our markets and the success of our new revenue development initiatives,” said Mr. Morton.  “The Broadcast Division generated a 7.3 percent increase in time sales for the first quarter.  This growth reflected the benefit of Super Bowl advertising on our three ABC stations and advertising from the Winter Olympics on our five NBC stations, as well as the continued implementation of revenue building blocks and effective inventory management,” Mr. Morton said.  “The Publishing Division’s revenue growth initiatives resulted in a 4.8 percent increase in newspaper advertising revenues, mostly in the Classified category but also in Retail advertising,” he said.

          “The Interactive Media Division had overall revenue growth of 36.3 percent compared with last year, led by strong online Classified advertising,” Mr. Morton said.  “Audience interest in our Web sites is evident in the continued growth of page views and visitor sessions, which increased 28 percent each.  We now have 6 million people visiting our Web sites for news, information, entertainment and advertising content.”

          In the Publishing Division, total revenue growth of 3.3 percent was offset by a 5.7 percent increase in expenses.  As a result, profit declined 6.1 percent, excluding $89,000 in equity income in the 2005 first quarter from the company’s 20 percent interest in the Denver Post, which was divested in June 2005.

          Classified advertising revenues in the quarter increased $5.8 million, or 11.2 percent, and mostly reflected strength in the real estate category.  The strong Classified revenue growth in 2006 also reflected the fact that in 2005 Easter Sunday occurred in March.  Classified advertising tends to be lower than normal on Sundays that are also holidays. Including online advertising, total Classified advertising rose 12.3 percent from last year. 

          At The Tampa Tribune, Classified revenues increased 23.3 percent, led by an 88.3 percent increase in the real estate category and a 9 percent increase in the help-wanted category, while automotive Classified advertising declined 15 percent.  At the Richmond Times-Dispatch, Classified revenues increased 7.5 percent, including a 36 percent increase in real estate advertising and a 7.2 percent increase in help-wanted advertising that more than offset a 14.9 percent decline in automotive advertising.  At the Winston-Salem Journal, Classified revenues declined 4 percent, reflecting a 5.9 increase in real estate advertising and a 4.7 percent increase in help-wanted advertising that could not offset a 14.7 percent decline in the automotive category.  Community Newspapers in the aggregate had a 2.9 percent increase in Classified revenues. 

          At the company’s three metro newspapers, help-wanted linage was up nominally. Revenue growth increased more than linage growth because employment Classified advertising carries a higher average rate.  The Tampa Tribune’s linage decreased 7.2 percent, while the Richmond Times-Dispatch was up 1.9 percent and the Winston-Salem Journal was up 14.3 percent.  A 43.6 percent increase for real estate linage at the three metros more than offset automotive linage, which was down 15 percent. 

          Retail revenues in the first quarter increased $800,000, or 1.5 percent. The Tampa Tribune and its associated daily newspapers had a 3.4 percent increase in retail revenues, which reflected increased spending in the home furnishings and medical categories, as well as increased preprints.  At the Richmond Times-Dispatch, Retail revenues declined 2 percent, due primarily to lower spending in the department store, home furnishings and grocery store categories. The Winston-Salem Journal generated a 1.2 percent increase from greater advertising from local accounts. Retail revenues at the company’s Community Newspapers were even with last year.



          National advertising revenues for the quarter decreased $1 million, or 8.6 percent.  The Tampa Tribune had a decline in National revenues of 3.7 percent as the result of lower spending in the telecommunications and automotive categories. At the Richmond Times-Dispatch, National advertising decreased 10.7 percent, mainly due to lower telecommunications advertising and less use of color.  The Winston-Salem Journal was down 14 percent, due to declines in telecommunications and automotive advertising. 

          Circulation revenues for the first quarter decreased $1.1 million, or 4.8 percent, half of which was due to the continued roll-out of a change in wholesale rates to independent carriers at several newspapers.  These rate changes also resulted in a dollar-for-dollar decrease in Circulation expenses. The rate change process is expected to be completed at all of the company’s newspapers by mid-2006.

          Publishing expenses increased 5.7 percent over the first quarter of 2005. Newsprint expense for the quarter increased 7.6 percent, which reflected higher newsprint prices partially offset by reduced consumption.  The average price per ton increased $86 from the year-ago quarter. Employee benefit expense increased 9.8 percent, mostly for retirement plan costs, and salary expense increased 3.7 percent.

          Broadcast Division profit for the quarter increased 3.9 percent to $11.8 million, and revenues grew $2.6 million, or 3.6 percent, to $73.5 million.

          Local time sales increased $3.1 million, or 6.8 percent, as a result of continuing emphasis on new business development initiatives.  Local categories showing increases, included telecommunications, services, health care and automotive. 

          National time sales rose $2.1 million, or 8.8 percent.  Categories showing increases for the quarter included telecommunications, services and health care categories. 

          Political revenues of $250,000 were minimal in the first quarter, as expected.  These revenues reflected spending on issue, gubernatorial and local candidate advertising. 

          Broadcast expenses for the quarter increased 3.5 percent, mostly the result of higher salaries and benefits, sales commissions on new business and other production costs.

          Interactive Media Division revenues were a quarterly record of $6.2 million, up 36.3 percent over 2005. The growth reflected continued strong online Classified advertising, up 31 percent, and higher National revenues, which more than doubled. The division’s quarterly loss of $770,000 was a 7.1 percent improvement from 2005 even with additional expenses to build the infrastructure of Blockdot, the division’s advergaming business that was purchased in 2005.  Unique visitors for the first quarter increased 31 percent over the same period in 2005.

          Interest and corporate expenses each increased nominally compared to the first quarter of 2005. Income from the company’s investment in SP Newsprint was $172,000 in the first quarter, compared with income of $447,000 in the 2005 quarter.  Higher energy costs were only partially offset by higher newsprint selling prices in the current period.

          EBITDA (income before accounting change, interest, taxes, depreciation and amortization) in the first quarter of 2006 was $37 million, compared with $39.3 million in the 2005 period, mostly reflecting lower net income.  Free cash flow for the quarter (after-tax cash flow minus capital expenditures) was $6.7 million, compared with $10.5 million in the prior-year period and reflected an expected increase in capital expenditures in 2006. 

          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
          In the second quarter of 2006, the Publishing Division expects advertising revenues to increase 5.5 percent to 6 percent compared with last year’s second quarter. Classified revenue growth will again be driven by real estate advertising, partially offset by continued weakness in automotive advertising. New revenue initiatives are expected to bolster Retail growth, and some improvement is expected in National revenue.  Revenue growth for the quarter will be partially offset by higher expenses.  However, Publishing segment profit is expected to increase compared with the second quarter of 2005.



          The Broadcast Division expects time sales in the second quarter to increase approximately 5.5 percent over the year-ago period. National time sales are expected to rise 3 percent to 3.5 percent, reflecting higher telecommunications, services and medical advertising. Local time sales are expected to increase between 0.5 percent and 1 percent, mostly due to higher telecommunications advertising. Political revenues are expected to be approximately $3 million.  Broadcast’s revenue growth expectations in all three categories are not as strong as it originally expected for the quarter.  As a result, Broadcast segment profit is expected to decrease compared with the second quarter of 2005.  The division is implementing a cost-savings program designed to bring expenses in line with its new revenue growth expectations.

          Equity income from SP Newsprint is expected to exceed $3 million in the second quarter, compared with last year’s income of $611,000. The increase is mostly due to higher newsprint prices offset partially by higher energy costs.

          Media General will hold its Annual Meeting of Stockholders on April 27, 2006, at 11 a.m. ET at the Richmond Newspapers Production Facility, 8460 Times-Dispatch Boulevard, Mechanicsville, Va.

          Conference Call and Webcast
          The company will hold an earnings conference call today with financial analysts 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 1-800-322-2803 about 10 minutes prior to the 11 a.m. start. Listeners may also access the live Webcast by logging on to http://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 http://www.mediageneral.com beginning at 1 p.m. today. A telephone replay is also available today, beginning at 1 p.m. and ending on April 19 at 1 p.m., by dialing 1-888-286-8010 or 617-801-6888, and using the passcode 15474371.

          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 100 weekly newspapers and other publications. The company’s broadcasting assets include 26 network-affiliated television stations that reach 30 percent of the television households in the Southeast and nearly 8 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.



Media General, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Thirteen Weeks Ending

 

 

 


 

(Unaudited, in thousands, except per share amounts)

 

March 26,
2006

 

March 27,
2005

 


 



 



 

Revenues

 

$

226,404

 

$

217,907

 

Operating costs:

 

 

 

 

 

 

 

Production

 

 

101,350

 

 

97,529

 

Selling, general and administrative

 

 

88,701

 

 

82,260

 

Depreciation and amortization

 

 

18,761

 

 

17,172

 

 

 



 



 

Total operating costs

 

 

208,812

 

 

196,961

 

 

 



 



 

Operating income

 

 

17,592

 

 

20,946

 

 

 



 



 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

 

(7,542

)

 

(7,495

)

Investment income - unconsolidated affiliates

 

 

331

 

 

714

 

Other, net

 

 

303

 

 

476

 

 

 



 



 

Total other expense

 

 

(6,908

)

 

(6,305

)

 

 



 



 

Income before income taxes and cumulative effect of change in accounting principle

 

 

10,684

 

 

14,641

 

Income taxes

 

 

4,017

 

 

5,344

 

 

 



 



 

Income before cumulative effect of change in accounting principle

 

 

6,667

 

 

9,297

 

Cumulative effect of change in accounting principle-net of tax

 

 

—  

 

 

(325,453

)

 

 



 



 

Net income (loss)

 

$

6,667

 

$

(316,156

)

 

 



 



 

Net income (loss) per common share:

 

 

 

 

 

 

 

Income before cumulative effect of change in accounting principle

 

$

0.28

 

$

0.40

 

Cumulative effect of change in accounting principle

 

 

—  

 

 

(13.87

)

 

 



 



 

Net income (loss)

 

$

0.28

 

$

(13.47

)

 

 



 



 

Net income (loss) per common share assuming dilution:

 

 

 

 

 

 

 

Income before cumulative effect of change in accounting principle

 

$

0.28

 

$

0.39

 

Cumulative effect of change in accounting principle

 

 

—  

 

 

(13.64

)

 

 



 



 

Net income (loss)

 

$

0.28

 

$

(13.25

)

 

 



 



 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

 

23,588

 

 

23,478

 

Diluted

 

 

23,811

 

 

23,857

 




Media General, Inc.
BUSINESS SEGMENTS

(Unaudited, in thousands)

 

Publishing

 

Broadcast

 

Interactive
Media

 

Eliminations

 

Total

 


 


 


 


 


 


 

Quarter Ended March 26, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated revenues

 

$

148,163

 

$

73,545

 

$

6,195

 

$

(1,499

)

$

226,404

 

 

 



 



 



 



 



 

Segment operating cash flow

 

$

33,702

 

$

17,693

 

$

(562

)

 

 

 

$

50,833

 

Allocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net income of unconsolidated affiliate

 

 

 

 

 

 

 

 

159

 

 

 

 

 

159

 

Depreciation and amortization

 

 

(6,255

)

 

(5,930

)

 

(364

)

 

 

 

 

(12,549

)

 

 



 



 



 



 



 

Segment profit (loss)

 

$

27,447

 

$

11,763

 

$

(767

)

 

 

 

 

38,443

 

 

 



 



 



 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,542

)

Investment income - SP Newsprint

 

 

 

 

 

 

 

 

 

 

 

 

 

 

172

 

Acquisition intangibles amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,897

)

Corporate expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,683

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,809

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Consolidated income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Quarter Ended March 27, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated revenues

 

$

143,433

 

$

70,992

 

$

4,546

 

$

(1,064

)

$

217,907

 

 

 



 



 



 



 



 

Segment operating cash flow

 

$

35,038

 

$

16,248

 

$

(575

)

 

 

 

$

50,711

 

Allocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net income of unconsolidated affiliates

 

 

89

 

 

 

 

 

178

 

 

 

 

 

267

 

Depreciation and amortization

 

 

(5,815

)

 

(4,923

)

 

(429

)

 

 

 

 

(11,167

)

 

 



 



 



 



 



 

Segment profit (loss)

 

$

29,312

 

$

11,325

 

$

(826

)

 

 

 

 

39,811

 

 

 



 



 



 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,495

)

Investment income - SP Newsprint

 

 

 

 

 

 

 

 

 

 

 

 

 

 

447

 

Acquisition intangibles amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,735

)

Corporate expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,382

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,005

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Consolidated income before income taxes and cumulative effect of change in accounting principle

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 




Media General, Inc.
CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

March 26,
2006

 

December 25,
2005

 


 


 


 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,764

 

$

14,979

 

Accounts receivable - net

 

 

116,047

 

 

125,703

 

Inventories

 

 

7,932

 

 

7,884

 

Other

 

 

34,082

 

 

35,807

 

 

 



 



 

Total current assets

 

 

168,825

 

 

184,373

 

 

 



 



 

Investments in unconsolidated affiliates

 

 

83,601

 

 

83,227

 

Other assets

 

 

62,472

 

 

57,883

 

Property, plant and equipment - net

 

 

446,009

 

 

444,940

 

Excess of cost over fair value of net identifiable assets of acquired businesses - net

 

 

645,433

 

 

645,437

 

FCC licenses and other intangibles - net

 

 

554,597

 

 

559,494

 

 

 



 



 

Total assets

 

$

1,960,937

 

$

1,975,354

 

 

 



 



 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

29,887

 

$

27,198

 

Accrued expenses and other liabilities

 

 

76,579

 

 

84,716

 

 

 



 



 

Total current liabilities

 

 

106,466

 

 

111,914

 

 

 



 



 

Long-term debt

 

 

381,990

 

 

389,984

 

Borrowings of consolidated variable interest entities

 

 

95,320

 

 

95,320

 

Deferred income taxes

 

 

312,664

 

 

308,128

 

Other liabilities and deferred credits

 

 

144,192

 

 

154,182

 

Stockholders’ equity

 

 

920,305

 

 

915,826

 

 

 



 



 

Total liabilities and stockholders’ equity

 

$

1,960,937

 

$

1,975,354

 

 

 



 



 




Media General, Inc.
EBITDA, After-tax Cash Flow, and Free Cash Flow

 

 

Thirteen Weeks Ending

 

 

 


 

(Unaudited, in thousands)

 

March 26,
2006

 

March 27,
2005

 


 


 


 

Income before cumulative effect of change in accounting principle

 

$

6,667

 

$

9,297

 

Interest

 

 

7,542

 

 

7,495

 

Taxes

 

 

4,017

 

 

5,344

 

Depreciation and amortization

 

 

18,761

 

 

17,172

 

 

 



 



 

EBITDA before cumulative effect of change in accounting principle

 

$

36,987

 

$

39,308

 

 

 



 



 

Income before cumulative effect of change in accounting principle

 

$

6,667

 

$

9,297

 

Depreciation and amortization

 

 

18,761

 

 

17,172

 

 

 



 



 

After-tax cash flow

 

$

25,428

 

$

26,469

 

 

 



 



 

After-tax cash flow

 

$

25,428

 

$

26,469

 

Capital expenditures

 

 

18,727

 

 

16,007

 

 

 



 



 

Free cash flow

 

$

6,701

 

$

10,462

 

 

 



 



 

SOURCE  Media General, Inc.
          -0-                                        04/12/2006
          /CONTACT:  Investor: Lou Anne Nabhan, +1-804-649-6103, or Media: Ray Kozakewicz, +1-804-649-6748, both of Media General/
          /First Call Analyst: /
          /FCMN Contact: etucker@mediageneral.com /
          /Web site:  http://www.mediageneral.com/



EX-99.2 3 mg5369ex992.htm EXHIBIT 99.2

Exhibit 99.2

Media General Reports March Revenues

          RICHMOND, Va., April 12 /PRNewswire-FirstCall/ -- Media General, Inc. (NYSE: MEG) today reported March 2006 total revenues of $74.3 million, a 3 percent increase from March 2005.  By business segment, Publishing Division revenues increased 4.5 percent, Broadcast Division revenues decreased 1.7 percent, and Interactive Media Division revenues rose 37.2 percent.

          In the Publishing Division, newspaper advertising revenues increased $2.5 million, or 6.4 percent, compared to March 2005. Including revenues from the company’s Web sites, newspaper advertising revenues rose 6.9 percent for March and total Publishing revenues increased 5 percent.

          Total Classified revenues for the month increased 16.7 percent, driven primarily by the Classified real estate category.  The strong Classified revenue growth in 2006 also reflected the fact that in 2005 Easter Sunday occurred in March.  Classified advertising tends to be lower than normal on Sundays that are also holidays. Newspaper Classified advertising rose 16.1 percent and online Classified advertising on the company’s Web sites increased 27.8 percent.

          Looking specifically at the company’s newspapers, Classified advertising revenues increased 32.1 percent at The Tampa Tribune and 13 percent at the Richmond Times-Dispatch.  At the Winston-Salem Journal, Classified revenues decreased 4.2 percent, due mostly to lower growth in real estate Classifieds than the other metropolitan markets.  The company’s Community newspapers were up 5.4 percent in the aggregate for Classified advertising.

          Employment linage at the company’s three metro newspapers increased nominally. At The Tampa Tribune, linage declined 13.8 percent, while revenues increased 7 percent due to a change in mix of advertisers that carried a higher average rate. At the Richmond Times-Dispatch, linage increased 7.3 percent and revenues were up 12.5 percent due to a higher average rate.  At the Winston-Salem Journal, employment linage increased 16.4 percent, while revenues declined 4 percent as a result of lower national employment advertising, which carries a higher average rate.

          Real estate linage increased 53.3 percent for the three markets combined and The Tampa Tribune nearly doubled its linage. The Richmond Times-Dispatch had 38 percent growth and the Winston-Salem Journal was up 16 percent.

          Continuing the trend of the last several months, automotive linage was down 18.3 percent in total for the three metros and reflected continued restraint by automotive dealers.

          Retail revenues for March increased $160,000, or 0.9 percent, and was softer, particularly preprints, due to Easter falling in April this year. Holiday-related Retail advertising typically occurs in the weeks just prior to the holiday. The Tampa Tribune and its associated daily newspapers reported a 3.4 percent increase due to higher spending in the furniture and financial categories. The Richmond Times-Dispatch had a 1.3 percent decline and the Winston-Salem Journal’s Retail revenues were even with last year. The Community newspapers had a 2.1 percent decrease in total Retail revenues, despite solid increases in Charlottesville and Northern Virginia.

          National revenues for the month decreased $350,000, or 9.9 percent.  Lower spending in the telecommunications and automotive categories led The Tampa Tribune, the Richmond Times-Dispatch and the Winston-Salem Journal to report declines of 4.2 percent, 13.4 percent and 22.5 percent, respectively.

          Circulation revenues for the month decreased $370,000, or 5.3 percent, nearly half of which was due to the continued roll-out of a change in wholesale rates to independent carriers at several newspapers. These rate changes also resulted in a dollar-for-dollar decrease in Circulation expense. Seven Media General newspapers posted increases in net paid daily Circulation for the month, while overall net paid circulation decreased slightly year-over-year. The rate change process is expected to be completed at all of the company’s newspapers by mid-2006.



          In the Broadcast Division, gross time sales of $24.5 million increased $260,000, or 1.1 percent.  Local time sales increased 3.7 percent, driven mostly by gains in fast food and services advertising.

          National time sales decreased $130,000, or 1.5 percent, and reflected lower spending in the automotive, corporate and specialty stores categories, partially offset by increases in telecommunications and services advertising.

          Political advertising revenues of $70,000 for the month were minimal, as expected, and were mostly derived from gubernatorial and local candidate advertising.

          Interactive Media Division revenues were $2.1 million, a 37.2 percent increase compared to the same month last year, and were driven by online Classifieds.  National advertising more than doubled. Unique visitors for the month increased 20 percent and represented approximately 6 million users coming to Media General Web sites for news, information, entertainment and advertising content. Page views and visitor sessions for the month increased 15 percent and 18 percent, respectively.

          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 100 weekly newspapers and other publications. The company’s broadcasting assets include 26 network-affiliated television stations that reach 30 percent of the television households in the Southeast and nearly 8 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.



MEDIA GENERAL INC.
Revenues and Page Views

 

 

March

 

 

 


 

 

 

2006

 

2005

 

% Change

 

 

 



 



 



 

Revenues (000)

 

$

74,253

 

$

72,099

 

 

3.0

%

Publishing

 

 

48,566

 

 

46,458

 

 

4.5

%

Broadcast

 

 

24,034

 

 

24,451

 

 

(1.7

)%

Interactive Media

 

 

2,142

 

 

1,561

 

 

37.2

%

Eliminations

 

 

(489

)

 

(371

)

 

(31.8

)%

Selected Publishing Revenues (000)

 

 

 

 

 

 

 

 

 

 

By Category

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

40,779

 

$

38,314

 

 

6.4

%

Classified

 

 

19,139

 

 

16,488

 

 

16.1

%

Retail

 

 

17,740

 

 

17,580

 

 

0.9

%

National

 

 

3,203

 

 

3,555

 

 

(9.9

)%

Other

 

 

697

 

 

691

 

 

0.9

%

Circulation

 

 

6,515

 

 

6,882

 

 

(5.3

)%

By Property

 

 

 

 

 

 

 

 

 

 

Richmond

 

 

11,165

 

 

10,964

 

 

1.8

%

Tampa

 

 

17,125

 

 

15,373

 

 

11.4

%

Winston-Salem

 

 

4,189

 

 

4,341

 

 

(3.5

)%

Community Newspapers

 

 

15,858

 

 

15,578

 

 

1.8

%

Advertising Revenues (000)*

 

 

 

 

 

 

 

 

 

 

Richmond

 

$

8,856

 

$

8,485

 

 

4.4

%

Tampa

 

 

15,340

 

 

13,527

 

 

13.4

%

Winston-Salem

 

 

3,363

 

 

3,547

 

 

(5.2

)%

Community Newspapers

 

 

12,805

 

 

12,556

 

 

2.0

%

Broadcast Time Sales (gross) (000)

 

$

24,509

 

$

24,247

 

 

1.1

%

Local

 

 

16,260

 

 

15,687

 

 

3.7

%

National

 

 

8,181

 

 

8,309

 

 

(1.5

)%

Political

 

 

68

 

 

251

 

 

(72.9

)%

Selected Online Total Page Views

 

 

 

 

 

 

 

 

 

 

TBO.com (Tampa, Fla.)

 

 

15,687,285

 

 

20,743,693

 

 

(24.4

)%

TimesDispatch.com (Richmond, Va.)

 

 

11,274,595

 

 

8,535,331

 

 

32.1

%

JournalNow.com (Winston-Salem, N.C.)

 

 

4,020,138

 

 

3,531,155

 

 

13.8

%




 

 

Year-to-Date

 

 

 


 

 

 

2006

 

2005

 

% Change

 

 

 



 



 



 

Revenues (000)

 

$

226,404

 

$

217,907

 

 

3.9

%

Publishing

 

 

148,163

 

 

143,433

 

 

3.3

%

Broadcast

 

 

73,545

 

 

70,992

 

 

3.6

%

Interactive Media

 

 

6,195

 

 

4,546

 

 

36.3

%

Eliminations

 

 

(1,499

)

 

(1,064

)

 

(40.9

)%

Selected Publishing Revenues (000)

 

 

 

 

 

 

 

 

 

 

By Category

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

123,544

 

$

117,908

 

 

4.8

%

Classified

 

 

57,405

 

 

51,606

 

 

11.2

%

Retail

 

 

53,398

 

 

52,600

 

 

1.5

%

National

 

 

10,894

 

 

11,914

 

 

(8.6

)%

Other

 

 

1,847

 

 

1,788

 

 

3.3

%

Circulation

 

 

21,192

 

 

22,266

 

 

(4.8

)%

By Property

 

 

 

 

 

 

 

 

 

 

Richmond

 

 

34,338

 

 

34,357

 

 

(0.1

)%

Tampa

 

 

52,270

 

 

47,690

 

 

9.6

%

Winston-Salem

 

 

12,876

 

 

13,134

 

 

(2.0

)%

Community Newspapers

 

 

48,185

 

 

47,677

 

 

1.1

%

Advertising Revenues (000)*

 

 

 

 

 

 

 

 

 

 

Richmond

 

$

26,851

 

$

26,418

 

 

1.6

%

Tampa

 

 

46,990

 

 

42,510

 

 

10.5

%

Winston-Salem

 

 

10,282

 

 

10,606

 

 

(3.1

)%

Community Newspapers

 

 

38,421

 

 

37,866

 

 

1.5

%

Broadcast Time Sales (gross) (000)

 

$

74,583

 

$

69,488

 

 

7.3

%

Local

 

 

48,636

 

 

45,553

 

 

6.8

%

National

 

 

25,700

 

 

23,612

 

 

8.8

%

Political

 

 

247

 

 

323

 

 

(23.5

)%

Selected Online Total Page Views

 

 

 

 

 

 

 

 

 

 

TBO.com (Tampa, Fla.)

 

 

49,050,453

 

 

52,974,230

 

 

(7.4

)%

TimesDispatch.com (Richmond, Va.)

 

 

35,624,111

 

 

25,359,831

 

 

40.5

%

JournalNow.com  (Winston-Salem, N.C.)

 

 

11,841,440

 

 

10,407,939

 

 

13.8

%



Notes: All data are subject to later adjustment.

* Amounts reflected included both daily and weekly newspapers.




MEDIA GENERAL INC.
Daily Newspapers Advertising Linage*

 

 

March

 

 

 


 

 

 

 

2006

 

 

2005

 

 

% Change

 

 

 



 



 



 

Richmond Times-Dispatch

 

 

 

 

 

 

 

 

 

 

Retail

 

 

29,171

 

 

28,918

 

 

0.9

%

National

 

 

9,270

 

 

10,686

 

 

(13.3

)%

Classified

 

 

74,518

 

 

72,486

 

 

2.8

%

Total

 

 

112,959

 

 

112,090

 

 

0.8

%

Tampa Tribune

 

 

 

 

 

 

 

 

 

 

Retail

 

 

44,222

 

 

48,235

 

 

(8.3

)%

National

 

 

13,031

 

 

15,071

 

 

(13.5

)%

Classified

 

 

140,661

 

 

129,247

 

 

8.8

%

Total

 

 

197,914

 

 

192,553

 

 

2.8

%

Winston-Salem Journal

 

 

 

 

 

 

 

 

 

 

Retail

 

 

34,438

 

 

38,320

 

 

(10.1

)%

National

 

 

8,479

 

 

10,618

 

 

(20.1

)%

Classified

 

 

55,361

 

 

59,992

 

 

(7.7

)%

Total

 

 

98,278

 

 

108,930

 

 

(9.8

)%

Community & Associates Dailies

 

 

 

 

 

 

 

 

 

 

Retail

 

 

310,789

 

 

315,044

 

 

(1.4

)%

National

 

 

17,555

 

 

27,793

 

 

(36.8

)%

Classified

 

 

416,611

 

 

426,309

 

 

(2.3

)%

Total

 

 

744,955

 

 

769,146

 

 

(3.1

)%

Media General Dailies Total

 

 

 

 

 

 

 

 

 

 

Retail

 

 

418,620

 

 

430,517

 

 

(2.8

)%

National

 

 

48,335

 

 

64,168

 

 

(24.7

)%

Classified

 

 

687,151

 

 

688,034

 

 

(0.1

)%

Total

 

 

1,154,106

 

 

1,182,719

 

 

(2.4

)%


 

 

Year-to-Date

 

 

 


 

 

 

2006

 

2005

 

% Change

 

 

 



 



 



 

Richmond Times-Dispatch

 

 

 

 

 

 

 

 

 

 

Retail

 

 

89,223

 

 

92,055

 

 

(3.1

)%

National

 

 

30,028

 

 

34,722

 

 

(13.5

)%

Classified

 

 

220,580

 

 

227,812

 

 

(3.2

)%

Total

 

 

339,831

 

 

354,589

 

 

(4.2

)%

Tampa Tribune

 

 

 

 

 

 

 

 

 

 

Retail

 

 

135,103

 

 

136,981

 

 

(1.4

)%

National

 

 

42,376

 

 

48,448

 

 

(12.5

)%

Classified

 

 

439,300

 

 

416,271

 

 

5.5

%

Total

 

 

616,779

 

 

601,700

 

 

2.5

%

Winston-Salem Journal

 

 

 

 

 

 

 

 

 

 

Retail

 

 

102,017

 

 

99,915

 

 

2.1

%

National

 

 

25,254

 

 

28,029

 

 

(9.9

)%

Classified

 

 

174,328

 

 

188,313

 

 

(7.4

)%

Total

 

 

301,599

 

 

316,257

 

 

(4.6

)%

Community & Associates Dailies

 

 

 

 

 

 

 

 

 

 

Retail

 

 

959,881

 

 

933,662

 

 

2.8

%

National

 

 

59,796

 

 

93,546

 

 

(36.1

)%

Classified

 

 

1,297,147

 

 

1,326,719

 

 

(2.2

)%

Total

 

 

2,316,824

 

 

2,353,927

 

 

(1.6

)%

Media General Dailies Total

 

 

 

 

 

 

 

 

 

 

Retail

 

 

1,286,224

 

 

1,262,613

 

 

1.9

%

National

 

 

157,454

 

 

204,745

 

 

(23.1

)%

Classified

 

 

2,131,355

 

 

2,159,115

 

 

(1.3

)%

Total

 

 

3,575,033

 

 

3,626,473

 

 

(1.4

)%

 

 


 

*  Advertising is in column inches - full run only

 

SOURCE  Media General, Inc.
          -0-                                        04/12/2006
          /CONTACT:  Investor Contact:  Lou Anne J. Nabhan, +1-804-649-6103, or Media Contact: Ray Kozakewicz, +1-804-649-6748, both of Media General/
          /First Call Analyst: /
          /FCMN Contact: etucker@mediageneral.com /
          /Web site:  http://www.mediageneral.com/


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