Note 9. Guarantor Financial Information

3 Months Ended

Mar. 31, 2013

Condensed Financial Statements [Text Block]

9.        The Company’s subsidiaries guarantee the debt securities of the parent company. The Company’s subsidiaries are 100% owned except for the Supplemental 401(k) Plan; all subsidiaries except those in the non-guarantor column (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 March 31, 2013

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	18,534		$	853		$	-		$	-		$	19,387
Accounts receivable - net		-			55,057			-			-			55,057
Other		4,196			9,703			-			-			13,899
Total current assets		22,730			65,613			-			-			88,343
Investment in and advances to subsidiaries		11,568			1,330,144			-			(1,341,712	)		-
Intercompany note receivable		566,077			-			-			(566,077	)		-
Other assets		29,522			6,286			161			-			35,969
Property, plant and equipment - net		19,423			144,007			-			-			163,430
FCC licenses and other intangibles - net		-			199,813			-			-			199,813
Excess cost over fair value of net identifiable assets of acquired businesses		-			247,149			-			-			247,149
TOTAL ASSETS	$	649,320		$	1,993,012		$	161		$	(1,907,789	)	$	734,704
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	4,792		$	4,756		$	-		$	-		$	9,548
Accrued expenses and other liabilities		23,242			17,424			-			-			40,666
Total current liabilities		28,034			22,180			-			-			50,214
Long-term debt		295,960			4			-			-			295,964
Long-term debt - related party		258,955			-			-			-			258,955
Intercompany loan		-			566,077			-			(566,077	)		-
Retirement, post-retirement and post-employment plans		240,146			-			-			-			240,146
Deferred income taxes		-			61,628			-			-			61,628
Other liabilities and deferred credits		16,475			2,206			846			-			19,527
Stockholders' equity (deficit):
Common stock		138,880			2,801			-			(2,801	)		138,880
Additional paid-in capital		24,707			1,731,097			(1,893	)		(1,730,684	)		23,227
Accumulated other comprehensive loss		(217,731	)		-			-			-			(217,731	)
Retained earnings (accumulated deficit)		(136,106	)		(392,981	)		1,208			391,773			(136,106	)
Total stockholders' equity (deficit)		(190,250	)		1,340,917			(685	)		(1,341,712	)		(191,730	)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	$	649,320		$	1,993,012		$	161		$	(1,907,789	)	$	734,704

Media General, Inc.

 Condensed Consolidating Balance Sheet

 As of December 31, 2012

 (In thousands)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	36,414		$	388		$	-		$	-		$	36,802
Accounts receivable - net		-			58,486			-			-			58,486
Other		6,562			11,931			-			-			18,493
Assets of discontinued operations		-			670			-			-			670
Total current assets		42,976			71,475			-			-			114,451
Investment in and advances to subsidiaries		14,281			1,346,705			-			(1,360,986	)		-
Intercompany note receivable		564,681			-			-			(564,681	)		-
Other assets		38,469			6,795			198			-			45,462
Property, plant and equipment - net		19,647			146,458			-			-			166,105
FCC licenses and other intangibles - net		-			200,254			-			-			200,254
Excess of cost over fair value of net identifiable assets of acquired businesses		-			247,149			-			-			247,149
TOTAL ASSETS	$	680,054		$	2,018,836		$	198		$	(1,925,667	)	$	773,421
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	7,488		$	4,181		$	-		$	-		$	11,669
Accrued expenses and other liabilities		36,155			28,207			-			-			64,362
Liabilities of discontinued operations		-			467			-			-			467
Total current liabilities		43,643			32,855			-			-			76,498
Long-term debt		295,714			7			-			-			295,721
Long-term debt - related party		257,466												257,466
Intercompany loan		-			564,681			-			(564,681	)		-
Retirement, post-retirement and post-employment plans		242,309			-			-			-			242,309
Deferred income taxes		-			58,865			-			-			58,865
Other liabilities and deferred credits		15,567			2,442			777			-			18,786
Stockholders' equity (deficit):
Common stock		138,819			2,801			-			(2,801	)		138,819
Additional paid-in capital		24,603			1,733,641			(1,977	)		(1,733,243	)		23,024
Accumulated other comprehensive loss		(219,656	)		-			-			-			(219,656	)
Retained earnings (accumulated deficit)		(118,411	)		(376,456	)		1,398			375,058			(118,411	)
Total stockholders' equity (deficit)		(174,645	)		1,359,986			(579	)		(1,360,986	)		(176,224	)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	$	680,054		$	2,018,836		$	198		$	(1,925,667	)	$	773,421

Media General, Inc.

 Condensed Consolidating Statements of Operations

 and Comprehensive Loss

 Three Months Ended March 31, 2013

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Station revenue (less agency commissions)	$	5,047		$	73,939		$	-		$	(5,047	)	$	73,939
Operating costs:
Station production expenses		-			32,003			-			-			32,003
Station selling, general, and administrative expenses		-			27,594			-			(5,047	)		22,547
Corporate and other expenses		7,514			-			190			-			7,704
Depreciation and software amortization		432			5,089			-			-			5,521
Amortization of intangible assets		-			441			-			-			441
Net gain related to fixed assets		(43	)		-			-			-			(43	)
Total operating costs		7,903			65,127			190			(5,047	)		68,173
Operating income (loss)		(2,856	)		8,812			(190	)		-			5,766
Other income (expense):
Interest expense		(9,311	)		(18	)		-			-			(9,329	)
Interest expense - related party		(9,913	)		-			-			-			(9,913	)
Intercompany interest income (expense)		21,071			(21,071	)		-			-			-
Investment income (loss) - consolidated affiliates		(16,715	)		-			-			16,715			-
Other, net		29			22			-			-			51
Total other income (expense)		(14,839	)		(21,067	)		-			16,715			(19,191	)
Income (loss) from continuing operations before income taxes		(17,695	)		(12,255	)		(190	)		16,715			(13,425	)
Income tax expense		-			3,284			-			-			3,284
Income (loss) from continuing operations		(17,695	)		(15,539	)		(190	)		16,715			(16,709	)
Discontinued operations (net of tax):
Loss from discontinued operations		-			(956	)		-			-			(956	)
Loss related to divestiture of operations		-			(30	)		-			-			(30	)
Net income (loss)	$	(17,695	)	$	(16,525	)	$	(190	)	$	16,715		$	(17,695	)
Comprehensive income (loss)	$	(15,770	)	$	(16,525	)	$	(190	)	$	16,715		$	(15,770	)

Media General, Inc.

 Condensed Consolidating Statements of Operations

 and Comprehensive Loss

 Three Months Ended March 25, 2012

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Station revenue (less agency commissions)	$	8,554		$	74,268		$	-		$	(8,608	)	$	74,214
Operating costs:
Station production expenses		-			30,110			-			(59	)		30,051
Station selling, general, and administrative expenses		-			29,169			-			(8,575	)		20,594
Corporate and other expenses		11,009			700			167			-			11,876
Depreciation and software amortization		933			5,017			-			-			5,950
Amortization of intangible assets		-			1,313			-			-			1,313
Net gain related to fixed assets		(71	)		-			-			-			(71	)
Total operating costs		11,871			66,309			167			(8,634	)		69,713
Operating income (loss)		(3,317	)		7,959			(167	)		26			4,501
Other income (expense):
Interest expense		(15,136	)		(15	)		-			-			(15,151	)
Debt modification costs and extinguishment costs		(10,408	)		-			-			-			(10,408	)
Intercompany interest income (expense)		14,705			(14,705	)		-			-			-
Investment income (loss) - consolidated affiliates		(20,477	)		-			-			20,477			-
Other, net		209			(27	)		-			-			182
Total other income (expense)		(31,107	)		(14,747	)		-			20,477			(25,377	)
Income (loss) from continuing operations before income taxes		(34,424	)		(6,788	)		(167	)		20,503			(20,876	)
Income tax expense		-			3,408			-			-			3,408
Income (loss) from continuing operations		(34,424	)		(10,196	)		(167	)		20,503			(24,284	)
Discontinued operations (net of tax):
Loss from discontinued operations		-			(10,114	)		-			(26	)		(10,140	)
Net income (loss)	$	(34,424	)	$	(20,310	)	$	(167	)	$	20,477		$	(34,424	)
Comprehensive income (loss)	$	(34,424	)	$	(20,310	)	$	(167	)	$	20,477		$	(34,424	)

Media General, Inc.

 Condensed Consolidating Statements of Cash Flows

 Three Months Ended March 31, 2013

 (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	$	(17,528	)	$	2,121		$	(83	)	$	-		$	(15,490	)
Cash flows from investing activities:
Capital expenditures		(204	)		(3,086	)		-			-			(3,290	)
Refund of collateral deposit related to letters of collateral		1,366			-			-			-			1,366
Net change in intercompany note receivable		(1,396	)		-			-			1,396			-
Other, net		(248	)		34			-			-			(214	)
Net cash (used) provided by investing activities		(482	)		(3,052	)		-			1,396			(2,138	)
Cash flows from financing activities:
Net change in intercompany loan		-			1,396			-			(1,396	)		-
Other, net		130			-			83			-			213
Net cash (used) provided by financing activities		130			1,396			83			(1,396	)		213
Net (decrease) increase in cash and cash equivalents		(17,880	)		465			-			-			(17,415	)
Cash and cash equivalents at beginning of year		36,414			388			-			-			36,802
Cash and cash equivalents at end of period	$	18,534		$	853		$	-		$	-		$	19,387

Media General, Inc.

 Condensed Consolidating Statements of Cash Flows

 Three Months Ended March 25, 2012

 (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	$	(13,930	)	$	18,322		$	13		$	-		$	4,405
Cash flows from investing activities:
Capital expenditures		(382	)		(1,134	)		-			-			(1,516	)
Net change in intercompany note receivable		17,256			-			-			(17,256	)		-
Other, net		-			78			-			-			78
Net cash (used) provided by investing activities		16,874			(1,056	)		-			(17,256	)		(1,438	)
Cash flows from financing activities:
Increase in borrowings		8,000			-			-			-			8,000
Repayment of borrowings		(8,000	)		-			-			-			(8,000	)
Net change in intercompany loan		-			(17,256	)		-			17,256			-
Debt issuance costs		(13,902	)		-			-			-			(13,902	)
Other, net		19			(2	)		(13	)		-			4
Net cash (used) provided by financing activities		(13,883	)		(17,258	)		(13	)		17,256			(13,898	)
Net (decrease) increase in cash and cash equivalents		(10,939	)		8			-			-			(10,931	)
Cash and cash equivalents at beginning of year		21,674			1,434			-			-			23,108
Cash and cash equivalents at end of period	$	10,735		$	1,442		$	-		$	-		$	12,177