-----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, Q79HxXgP7FL4kj30j7H+EVyT6pkcfOwc+3xx13M1Z/oqvqPMRrW2kbELEvg5g43B PAMUHrZLYQ72q3hIogRJUA== 0001275287-07-001859.txt : 20070419 0001275287-07-001859.hdr.sgml : 20070419 20070419090338 ACCESSION NUMBER: 0001275287-07-001859 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070419 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070419 DATE AS OF CHANGE: 20070419 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: 07774983 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 mg9662.txt 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 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 (Commission (I.R.S. Employer of incorporation) File Number) 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): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] 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 19, 2007, the Company issued two releases announcing results for the first quarter of 2007 and revenues for the March 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., April 19, 2007. 99.2 Press Release issued by MEDIA GENERAL, INC., April 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 April 19, 2007 /s/ JOHN A. SCHAUSS ---------------------------- John A. Schauss Vice President - Finance and Chief Financial Officer EX-99.1 2 mg9662ex991.txt EXHIBIT 99.1 Exhibit 99.1 Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com FOR IMMEDIATE RELEASE THURSDAY, APRIL 19, 2007 MEDIA GENERAL REPORTS FIRST-QUARTER 2007 RESULTS RICHMOND, Va. - Media General, Inc. (NYSE: MEG) today reported a net loss for the first quarter of 2007 of $6.5 million, or 27 cents per share, compared to net income of $6.7 million, or 28 cents per diluted share in the 2006 first quarter. The 2007 results include pretax charges of approximately $1 million for severance costs related to staff reductions at the company's Tampa publishing operations. The 2007 results also include four NBC stations acquired June 26, 2006. "Media General's first-quarter results primarily reflected lower operating profits for the Publishing and Broadcast divisions," said Marshall N. Morton, president and chief executive officer. "Results were also affected by higher interest expense and a loss from our interest in SP Newsprint. "Divisional profits were hampered by revenue weakness in virtually all categories and across all markets. Tampa, Florida, our largest market, was especially hard hit by a downturn in the state's economy. In the Publishing Division, a steep decline in Classified advertising revenues and a decrease in National advertising more than offset a small increase in Retail advertising and good expense management. In the Broadcast Division, continued soft Local and National transactional sales reflected lower spending by automotive advertisers. In addition, Broadcast's 2006 results included revenues from the Winter Olympics that were not present this year. "We are disappointed that 2007 has started out much weaker than anticipated. The slowing pace of economic growth in the U.S. has affected all of our operations because of its impact on advertiser spending. Growth of the Internet, too, is having an effect, however, and we are aggressively creating a dynamic online presence in all markets. Our Interactive Media Division is enjoying strong growth. In the first quarter, the division generated a record $8 million of revenues and improved its operating performance by 34 percent, compared with last year. Page views and visitor sessions increased 25 percent and 34 percent, respectively," said Mr. Morton. "As previously announced, in Tampa, we have implemented an aggressive plan to align expenses with the revenue environment there. Cost reductions at our Florida publishing operations will be achieved by consolidating certain functions and outsourcing others. There will be a reduction of approximately 115 positions, resulting from cost reductions announced April 10, the consolidation of certain printing operations in February, and from not filling open positions. In addition, the paper is reducing the page width by one-half inch this summer, which will reduce newsprint expense, and is tightening discretionary spending," Mr. Morton said. "The Tampa Tribune also plans to provide more focused products to better serve changing reader and advertiser needs. The newspaper will consolidate and realign some of the content in the daily product. It also will transition its geographically-zoned sections into its associated community newspapers and launch a number of community Web sites as extensions of TBO.com. "Also, as previously announced, our new NBC stations experienced a weak quarter. The performance of the Raleigh and Birmingham stations was not far from our expectations, while the Columbus, Ohio, and Providence, Rhode Island, stations fell well short. At the Columbus and Providence stations, we are further accelerating the integration of sales training and tools that have enabled Media General stations to consistently perform above the industry averages for time sales, with a particular focus on generating local times sales growth. We have also completed plans to essentially re-launch the Birmingham station and to transition to a more dynamic, Web-integrated station in Raleigh," said Mr. Morton. (1 of 8) Publishing o Broadcast o Interactive Media Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com In the first quarter of 2007, total company revenues of $230.4 million increased 5.9 percent, including the new NBC stations. Excluding the new stations, total revenues decreased 3.2 percent. PUBLISHING DIVISION Publishing Division profit in the quarter declined by 31.3 percent. Total Publishing revenues decreased 5.7 percent, and newspaper advertising revenues were down 6.6 percent from 2006. Expenses, excluding the Tampa severance costs, decreased approximately 1 percent from the prior year. Retail revenues increased $880,000, or 1.6 percent, mostly reflecting new product introductions and higher preprint revenues, some of which were related to the Easter holiday. The Tampa Tribune and its associated daily newspapers generated a 4.6 percent increase in Retail revenues, which reflected increased revenues from a Spanish-language weekly newspaper, a new health publication, and higher spending in the department store, electronics, office supply and financial categories. At the Winston-Salem Journal, Retail revenues rose 3.6 percent and included increases in the sporting goods, medical and the furniture categories. Retail revenues at the Richmond Times-Dispatch declined 3.3 percent, reflecting lower spending in the department store, medical and grocery store categories. Retail revenues for the Community Newspaper group increased nominally. Classified advertising revenues decreased $7.9 million, or 13.8 percent. The Richmond Times-Dispatch generated a 2.8 percent increase in revenues, reflecting higher average rates and real estate linage, while The Tampa Tribune and Winston-Salem Journal reported decreases of 31.2 percent and 6.6 percent, respectively. In the aggregate, the Community Newspapers group reported a decrease of 3.2 percent in Classified revenues. Help-wanted linage for the company's three metro newspapers declined 17.7 percent, including decreases of 31.7 percent, 11.8 percent and 6.8 percent at The Tampa Tribune, Richmond Times-Dispatch and Winston-Salem Journal, respectively. Automotive linage was down 27.8 percent for the three metros, including decreases of 26.1 percent, 26.9 percent and 32.6 percent, at The Tampa Tribune, Richmond Times-Dispatch and Winston-Salem Journal, respectively. Real estate linage at the three metros decreased 20.9 percent, compared to a very strong real estate market last year, especially in Tampa. The Richmond Times-Dispatch generated an increase of 15.8 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 44.1 percent and 2.7 percent, respectively, from the prior year. National advertising revenues decreased $760,000, or 7 percent. The Richmond Times-Dispatch was even with last year, as increases in automotive and preprint advertising were offset by a decline in the telecommunications category. National advertising revenues decreased 16.2 percent at The Tampa Tribune and its associated daily newspapers, and reflected lower spending in the automotive, travel and medical advertising categories. The Winston-Salem Journal reported a 9 percent decrease in National revenues, primarily reflecting lower telecommunications advertising. While Circulation revenues for the first quarter decreased $850,000, or 4 percent, approximately 80 percent of the decline was the result of a change in wholesale rates to carriers at several newspapers, for which there is a corresponding expense reduction. Excluding the elimination of the subsidies, circulation revenues would have decreased less than one percent. Eight Media General newspapers increased their net-paid Daily Circulation for the first quarter, and seven did so for Sunday, including the Winston-Salem Journal in both cases. (2 of 8) Publishing o Broadcast o Interactive Media Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com Total Publishing Division expenses were even with last year. The primary drivers of this performance were a reduction in headcount and a 12 percent decline in newsprint expense, mostly the result of lower consumption, which decreased 10.7 percent. The average price per ton of $576 was down $6 from last year. BROADCAST DIVISION Broadcast Division profit for the quarter declined $4 million, or 33.2 percent, including the new NBC stations. Excluding these stations, segment profit decreased 22.3 percent. Total Broadcast revenues grew 30.5 percent, to $84.3 million, including the new stations. Same-station total revenues decreased by a small amount. Gross time sales increased $23.2 million, or 35.4 percent, including the new stations, and same-station time sales increased 1 percent. These results were achieved despite the absence of Winter Olympics advertising that was present a year ago. Increased revenues from the Super Bowl, which aired on our nine CBS stations, contributed to the gross time sales growth. Local time sales increased $12.6 million, or 29.7 percent, including the new stations. Same-station Local time sales decreased nominally. Higher spending in the services, entertainment and fast food categories was offset by lower automotive advertising. National time sales increased $10.3 million, or 45.4 percent. Same-station National time sales rose 3.1 percent. Categories showing increases for the quarter included telecommunications, department stores and financial, while automotive, services and fast food declined. Total Political revenues of $410,000 compared with $180,000 in the 2006 quarter, and reflected early Presidential image spending in Florida, South Carolina and Georgia, together with advertising from gubernatorial candidates in Kentucky, Louisiana and Mississippi. Same-station Broadcast expenses increased 5 percent, reflecting higher costs for salaries, benefits, programming and depreciation. INTERACTIVE MEDIA DIVISION Interactive Media Division revenues of $8 million increased 30 percent over the 2006 quarter, including Web sites associated with the new NBC stations. Local online revenues increased 66 percent as the result of growth in banners and sponsorships and increased direct sales. National/Regional revenues rose 52 percent, due to increased Regional advertising, particularly in Central Virginia. Classified advertising was down 3 percent for the 2007 quarter, mostly reflecting lower help-wanted advertising, partially offset by initial revenues from the Yahoo!HotJobs initiative. Revenues from Blockdot's advergaming business nearly tripled and the business was profitable for the first time. The total division's quarterly loss of $603,000 was a 34 percent improvement over the 2006 period. OTHER RESULTS Interest expense increased by $7.4 million in the first quarter as a result of the borrowings for the acquisition of the NBC stations. Equity in net loss of unconsolidated affiliates was $2.3 million, including $1.6 million from the company's interest in SP Newsprint and $733,000 related to Media General's share of results of a limited partnership that focuses on emerging media. EBITDA (income from continuing operations, interest, taxes, depreciation and amortization) in the first quarter of 2007 was $25.4 million, compared with $36.3 million in the 2006 period. After-Tax Cash Flow was $14.1 million compared to $24.3 million in the prior year. Free Cash Flow for the quarter (After-Tax Cash Flow minus capital expenditures) was a deficit of $5.4 million, compared with a positive $5.6 million in the prior-year period, due to lower operating performance and a similar level of capital spending in both years. (3 of 8) Publishing o Broadcast o Interactive Media Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com 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 2007, the Publishing Division expects revenues to be even with last year, with continued weakness in Classified advertising offset by increases in Retail revenues. The Broadcast Division expects gross time sales to increase approximately 40 percent, including the new stations. Same-store gross time sales are expected to increase 1.5 percent. The Interactive Media Division expects revenue growth of approximately 40 percent. The company's share of SP Newsprint's results is expected to be a loss of approximately $2 million compared to last year's income of $4.6 million. CONFERENCE CALL AND WEBCAST The company will hold a conference call with financial analysts today at 10 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 1-800-561-2718 about 10 minutes prior to the 10 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. April 26, by dialing 1-888-286-8010 or 617-801-6888, and using the passcode 16542878. 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. INVESTOR CONTACT: MEDIA CONTACT: Lou Anne Nabhan Ray Kozakewicz (804) 649-6103 (804) 649-6748 (4 of 8) Publishing o Broadcast o Interactive Media Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com Media General, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS
THIRTEEN WEEKS ENDING ------------------------ APRIL 1, MARCH 26, (Unaudited, in thousands except per share amounts) 2007 2006 - ------------------------------------------------------------ ---------- ---------- Revenues $ 230,354 $ 217,443 Operating costs: Production 109,704 96,119 Selling, general and administrative 93,339 85,648 Depreciation and amortization 20,623 17,007 ---------- ---------- Total operating costs 223,666 198,774 ---------- ---------- Operating income 6,688 18,669 ---------- ---------- Other income (expense): Interest expense (14,974) (7,542) Investment income (loss) - unconsolidated affiliates (2,301) 331 Other, net 392 303 ---------- ---------- Total other expense (16,883) (6,908) ---------- ---------- Income (loss) from continuing operations before income taxes (10,195) 11,761 Income taxes (3,691) 4,422 ---------- ---------- Income (loss) from continuing operations (6,504) 7,339 Loss from discontinued operations (net of tax) --- (672) ---------- ---------- Net income (loss) $ (6,504) $ 6,667 ========== ========== Net income (loss) per common share: Income (loss) from continuing operations $ (0.27) $ 0.31 Discontinued operations --- (0.03) ---------- ---------- Net income (loss) $ (0.27) $ 0.28 ========== ========== Net income (loss) per common share - assuming dilution: Income (loss) from continuing operations $ (0.27) $ 0.31 Discontinued operations --- (0.03) ---------- ---------- Net income (loss) $ (0.27) $ 0.28 ========== ========== Weighted-average common shares outstanding: Basic 23,655 23,588 Diluted 23,655 23,811 ---------- ----------
(5 of 8) Publishing o Broadcast o Interactive Media Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com Media General, Inc. BUSINESS SEGMENTS
INTERACTIVE (Unaudited, in thousands) PUBLISHING BROADCAST MEDIA ELIMINATIONS TOTAL - ----------------------------------------------------- ------------ ------------ ------------ ------------ ------------ QUARTER ENDED APRIL 1, 2007 Consolidated revenues $ 139,742 $ 84,285 $ 8,007 $ (1,680) $ 230,354 ============ ============ ============ ============ ============ Segment operating cash flow $ 25,305 $ 15,625 $ (158) $ 40,772 Allocated amounts: Depreciation and amortization (6,451) (7,549) (445) (14,445) ------------ ------------ ------------ ------------ Segment profit (loss) $ 18,854 $ 8,076 $ (603) 26,327 ============ ============ ============ Unallocated amounts: Interest expense (14,974) Equity in net loss of unconsolidated affiliates (2,301) Acquisition intangibles amortization (4,883) Corporate expense (10,255) Other (4,109) ------------ Consolidated loss before income taxes $ (10,195) ============ QUARTER ENDED MARCH 26, 2006 Consolidated revenues $ 148,163 $ 64,586 $ 6,176 $ (1,482) $ 217,443 ============ ============ ============ ============ ============ Segment operating cash flow $ 33,702 $ 17,002 $ (549) $ 50,155 Allocated amounts: Depreciation and amortization (6,255) (4,910) (363) (11,528) ------------ ------------ ------------ ------------ Segment profit (loss) $ 27,447 $ 12,092 $ (912) 38,627 ============ ============ ============ Unallocated amounts: Interest expense (7,542) Equity in net income of unconsolidated affiliates 331 Acquisition intangibles amortization (4,164) Corporate expense (10,683) Other (4,808) ------------ Consolidated income from continuing operations before income taxes $ 11,761 ============
(6 of 8) Publishing o Broadcast o Interactive Media Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com Media General, Inc. CONSOLIDATED BALANCE SHEETS
APRIL 1, DECEMBER 31, (Unaudited, in thousands) 2007 2006 - --------------------------------------------------------- ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 14,867 $ 11,930 Accounts receivable-net 127,004 139,538 Inventories 9,294 9,650 Other 47,175 41,630 ------------ ------------ Total current assets 198,340 202,748 ------------ ------------ Investments in unconsolidated affiliates 82,553 84,854 Other assets 69,541 71,117 Property, plant and equipment - net 494,768 490,049 Excess of cost over fair value of net identifiable assets of acquired businesses - net 936,523 935,023 FCC licenses and other intangibles - net 716,963 721,437 ------------ ------------ Total assets $ 2,498,688 $ 2,505,228 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,188 $ 34,292 Accrued expenses and other liabilities 88,449 92,712 Income taxes payable - 4,516 ------------ ------------ Total current liabilities 114,637 131,520 ------------ ------------ Long-term debt 929,000 916,320 Deferred income taxes 277,278 281,670 Other liabilities and deferred credits 255,980 238,358 Stockholders' equity (1) 921,793 937,360 ------------ ------------ Total liabilities and stockholders' equity $ 2,498,688 $ 2,505,228 ============ ============
(1) 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) Publishing o Broadcast o Interactive Media Media General, Inc., PO Box 85333 Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com Media General, Inc. EBITDA, AFTER-TAX CASH FLOW, AND FREE CASH FLOW THIRTEEN WEEKS ENDING --------------------------- APRIL 1, MARCH 26, (Unaudited, in thousands) 2007 2006 - ---------------------------------------- ------------ ------------ Income (loss) from continuing operations $ (6,504) $ 7,339 Interest 14,974 7,542 Taxes (3,691) 4,422 Depreciation and amortization 20,623 17,007 ------------ ------------ EBITDA from continuing operations $ 25,402 $ 36,310 ============ ============ Income (loss) from continuing operations $ (6,504) $ 7,339 Depreciation and amortization 20,623 17,007 ------------ ------------ After-tax cash flow $ 14,119 $ 24,346 ============ ============ After-tax cash flow $ 14,119 $ 24,346 Capital expenditures 19,491 18,727 ------------ ------------ Free cash flow $ (5,372) $ 5,619 ============ ============ (8 of 8) Publishing o Broadcast o Interactive Media EX-99.2 3 mg9662ex992.txt EXHIBIT 99.2 Exhibit 99.2 Media General Inc., PO Box 85333, Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com FOR IMMEDIATE RELEASE THURSDAY, APRIL 19, 2007 MEDIA GENERAL REPORTS MARCH 2007 REVENUES RICHMOND, Va. - Media General, Inc. (NYSE: MEG) today reported March 2007 total revenues of $76 million, a 6.8 percent increase from March 2006, including the revenues of four NBC television stations acquired June 26, 2006. Excluding the new stations, total revenues decreased 3.1 percent. By business segment, Publishing Division total revenues declined 5.9 percent. Broadcast Division total revenues increased 34 percent, including the new stations, and same-station revenues increased 0.3 percent. Interactive Media Division total revenues rose 28.1 percent. PUBLISHING DIVISION Newspaper advertising revenues declined $2.6 million, or 6.3 percent, reflecting significantly lower Classified revenues, which more than offset increased Retail and National revenues. In the Retail category, revenues increased $560,000, or 3.1 percent, partially due to strong preprint advertising on the Sunday prior to Easter. In 2006, this Sunday Retail advertising occurred in April. The Tampa Tribune generated a 2.8 percent increase mostly due to higher preprint revenues. The Richmond Times-Dispatch saw a 3.3 percent increase, reflecting higher preprint revenues as well as increased medical advertising. The Winston-Salem Journal posted a 5 percent increase, which included higher local advertising and increased spending in the sporting goods, furniture store and medical categories. The Community newspaper group experienced an increase of 6.1 percent in Retail revenues, primarily reflecting increases in the Danville, Lynchburg and Charlottesville markets. Total Classified advertising revenues in March decreased $3.3 million, or 17 percent, mostly due to significant declines in all categories at The Tampa Tribune. The Richmond Times-Dispatch saw a 0.7 percent increase, while The Tampa Tribune and Winston-Salem Journal posted declines of 38.5 percent and 1.9 percent, respectively. The Community newspaper group was down 4 percent in Classified advertising in the month. Employment linage at the company's three metro newspapers declined 18.6 percent in March, including decreases of 32.4 percent at The Tampa Tribune and 16.3 percent at the Richmond Times-Dispatch. The Winston-Salem Journal was even with last year. Automotive linage for the three metros decreased 23.6 percent and reflected decreases of 24.2 percent at The Tampa Tribune, 26.1 percent at the Richmond Times-Dispatch and 19.2 percent at the Winston-Salem Journal. Real estate linage for the three metros was down 20.9 percent. The Richmond Times-Dispatch generated a 13.2 percent increase, mostly reflecting strong advertising from real estate developers as well as the longer average periods that houses are remaining on the market. The Tampa Tribune experienced a decline of 45.4 percent, in large part due to a comparison to a very strong March in 2006, and the Winston-Salem Journal decreased 6.4 percent. (1 of 5) Publishing o Broadcast o Interactive Media Media General Inc., PO Box 85333, Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com National revenues in March increased $280,000, or 8.8 percent. The Richmond Times-Dispatch generated a 23 percent increase, reflecting higher telecommunications and automotive advertising and increased preprint revenues as well as an advertising campaign by AARP. The Tampa Tribune and its associated daily newspapers saw a 1.4 percent increase, mostly due to higher medical advertising. The Winston-Salem Journal was even with last year, as increases in travel spending and higher preprints were offset by lower telecommunications and medical advertising. The Community newspapers posted a 40.2 percent increase, reflecting higher spending in Southwest Virginia and Lynchburg. While Circulation revenues declined $230,000, or 3.6 percent, approximately 90 percent of the decrease was the result of a change in wholesale rates to carriers at several newspapers for which there is a corresponding expense decrease. Excluding this impact, Circulation revenues declined nominally. Nine Media General newspapers generated increases in net-paid Daily Circulation, and nine did so for Sunday, including the Winston-Salem Journal in both cases. BROADCAST DIVISION In the Broadcast Division, including the four new NBC stations, total revenues increased 34 percent. Same-station Broadcast revenues increased 0.3 percent. Gross time sales increased $8.7 million, or 40.4 percent, including the new stations, and increased 2.7 percent on a same-station basis. Total Local time sales increased $4.4 million, or 31.3 percent. Same-station Local time sales decreased 0.4 percent, reflecting declines in medical and automotive advertising and higher spending in the grocery store and entertainment categories. Total National time sales increased $4 million, or 56.1 percent. Same-station National time sales increased 6.3 percent, mostly due to higher telecommunications, furniture and automotive advertising. Political advertising revenues of $220,000 reflected early Presidential image spending in Florida, South Carolina and Georgia, together with issue advertising and spending from the gubernatorial candidates in Kentucky and Louisiana. INTERACTIVE MEDIA DIVISION Interactive Media Division total revenues, including the new NBC station Web sites, rose 28.1 percent. Higher Local and National/Regional advertising, as well as new products, helped drive the higher revenues. Local revenues increased 53.7 percent over last year, reflecting increased sales staffing and training. National/Regional advertising increased 33.7 percent, due to increased volume from national networks, including new advertisers, as well as higher automotive, travel and telecommunications advertising. Classified revenues decreased 2 percent and largely reflected the continued softness in help-wanted advertising, partially offset by initial revenues from the company's new employment initiative with Yahoo!HotJobs. Page views and visitor sessions from our newspaper and television Web sites rose 20.3 percent and 24 percent, respectively, including the new NBC station Web sites. Revenues from Blockdot's advergaming business more than doubled. (2 of 5) Publishing o Broadcast o Interactive Media Media General Inc., PO Box 85333, Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com 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 (3 of 5) Publishing o Broadcast o Interactive Media Media General Inc., PO Box 85333, Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com MEDIA GENERAL INC. REVENUES AND PAGE VIEWS
MARCH YEAR-TO-DATE --------------------------------------- ----------------------------------------- 2007 2006 % CHANGE 2007 2006 % CHANGE ----------- ----------- ----------- ------------ ------------ ----------- Revenues (000) $ 76,043 $ 71,213 6.8% $ 230,354 $ 217,443 5.9% Publishing 45,713 48,566 (5.9)% 139,742 148,163 (5.7)% Broadcast 28,131 20,994 34.0% 84,285 64,586 30.5% Interactive Media 2,734 2,135 28.1% 8,007 6,176 29.6% Eliminations (535) (482) (11.0)% (1,680) (1,482) (13.4)% Discontinued Operations (1) - 3,040 --- - 8,961 --- ----------- ----------- ----------- ------------ ------------ ----------- SELECTED PUBLISHING REVENUES (000) BY CATEGORY Advertising $ 38,223 $ 40,779 (6.3)% $ 115,432 $ 123,544 (6.6)% Classified 15,887 19,139 (17.0)% 49,514 57,405 (13.7)% Retail 18,294 17,740 3.1% 54,279 53,398 1.6% National 3,483 3,203 8.7% 10,136 10,894 (7.0)% Other 559 697 (19.8)% 1,503 1,847 (18.6)% Circulation 6,281 6,515 (3.6)% 20,341 21,192 (4.0)% BY PROPERTY Richmond 11,334 11,165 1.5% 33,858 34,338 (1.4)% Tampa 14,113 17,125 (17.6)% 45,187 52,270 (13.6)% Winston-Salem 4,160 4,189 (0.7)% 12,572 12,876 (2.4)% Community Newspapers 15,906 15,858 0.3% 47,688 48,185 (1.0)% ----------- ----------- ----------- ------------ ------------ ----------- ADVERTISING REVENUES (Dailies) (000) Richmond $ 9,187 $ 8,856 3.7% $ 26,901 $ 26,851 0.2% Tampa 12,367 15,340 (19.4)% 39,435 46,990 (16.1)% Winston-Salem 3,348 3,363 (0.4)% 9,942 10,282 (3.3)% Community Newspapers 12,848 12,805 0.3% 38,062 38,421 (0.9)% ----------- ----------- ----------- ------------ ------------ ----------- BROADCAST TIME SALES (gross) (000) $ 30,050 $ 21,399 40.4% $ 88,716 $ 65,507 35.4% Local 18,570 14,142 31.3% 55,189 42,553 29.7% National 11,261 7,213 56.1% 33,119 22,772 45.4% Political 219 44 397.7% 408 182 124.2% ----------- ----------- ----------- ------------ ------------ ----------- SELECTED ONLINE PAGE VIEWS Total Web Sites 50,307,532 41,826,314 20.3% 174,420,673 139,670,365 24.9% (Excluding Game Sites) TBO.com 14,643,577 14,332,524 2.2% 49,620,133 48,643,386 2.0% (Tampa, Fla.) TimesDispatch.com 9,826,816 10,895,364 (9.8)% 33,604,538 37,103,937 (9.4)% (Richmond, Va.) JournalNow.com 3,851,984 3,616,808 6.5% 12,046,860 11,750,378 2.5% (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 5) Publishing o Broadcast o Interactive Media Media General Inc., PO Box 85333, Richmond, VA 23293-0001 804/649-6748 www.mediageneral.com MEDIA GENERAL INC. DAILY NEWSPAPERS ADVERTISING LINAGE*
MARCH YEAR-TO-DATE --------------------------------------- ----------------------------------------- 2007 2006 % CHANGE 2007 2006 % CHANGE ----------- ----------- ----------- ------------ ------------ ----------- RICHMOND TIMES-DISPATCH Retail 28,835 29,171 (1.2)% 85,215 89,223 (4.5)% National 9,895 9,270 6.7% 27,170 30,028 (9.5)% Classified 67,577 74,518 (9.3)% 200,745 220,580 (9.0)% Total 106,307 112,959 (5.9)% 313,130 339,831 (7.9)% ----------- ----------- ----------- ------------ ------------ ----------- TAMPA TRIBUNE Retail 44,882 44,222 1.5% 139,520 135,103 3.3% National 11,423 13,031 (12.3)% 32,187 42,376 (24.0)% Classified 88,751 140,661 (36.9)% 294,660 439,300 (32.9)% Total 145,056 197,914 (26.7)% 466,367 616,779 (24.4)% ----------- ----------- ----------- ------------ ------------ ----------- WINSTON-SALEM JOURNAL Retail 27,941 34,438 (18.9)% 89,102 102,017 (12.7)% National 7,032 8,479 (17.1)% 20,621 25,254 (18.3)% Classified 48,624 55,361 (12.2)% 144,044 174,328 (17.4)% Total 83,597 98,278 (14.9)% 253,767 301,599 (15.9)% ----------- ----------- ----------- ------------ ------------ ----------- COMMUNITY DAILIES Retail 326,021 310,789 4.9% 953,729 959,881 (0.6)% National 23,045 17,555 31.3% 61,847 59,796 3.4% Classified 408,175 416,611 (2.0)% 1,241,571 1,297,147 (4.3)% Total 757,241 744,955 1.6% 2,257,147 2,316,824 (2.6)% ----------- ----------- ----------- ------------ ------------ ----------- MEDIA GENERAL DAILIES TOTAL Retail 427,679 418,620 2.2% 1,267,566 1,286,224 (1.5)% National 51,395 48,335 6.3% 141,825 157,454 (9.9)% Classified 613,127 687,151 (10.8)% 1,881,020 2,131,355 (11.7)% Total 1,092,201 1,154,106 (5.4)% 3,290,411 3,575,033 (8.0)% =========== =========== =========== ============ ============ ===========
* Advertising is in column inches - full run only (5 of 5) Publishing o Broadcast o Interactive Media -----END PRIVACY-ENHANCED MESSAGE-----