Media General Reports Third-Quarter 2011 Results

Media General Reports Third-Quarter 2011 Results

RICHMOND, Va., Oct. 19, 2011 /PRNewswire/ -- Media General, Inc. (NYSE: MEG), a multimedia provider of broadcast television, digital media and print products, today reported operating income for the third quarter of 2011 of $5.7 million, excluding non-cash goodwill impairment, compared with operating income of $11.5 million in the 2010 third quarter. A net loss in the current quarter, including non-cash impairment of $26.6 million, was $29.8 million, or $1.32 per share, compared with a net loss of $10.7 million, or 48 cents per share, last year.

Total operating costs decreased 8.4 percent from last year, excluding impairment, as discussed below. Total revenues were $144.7 million, compared with $163.2 million last year. The 2010 quarter included $9.7 million of Political advertising and $1.2 million of BP image advertising related to the Gulf of Mexico oil spill. The current quarter included $1.3 million of Political revenues.

"Media General's third-quarter results reflected an expected but significant drop in Political revenues in this off-election year as well as general economic uncertainty. A lack of clarity in the global financial markets, significant uncertainty regarding the U.S. government's plan of action domestically and a downward turn in the economy all contributed to a further softening of the advertising market," said Marshall N. Morton, president and chief executive officer. "Excluding Political advertising, broadcast revenues for the quarter decreased 2.4 percent. Broadcast cash flow was $19 million. The overall decline in print revenue improved modestly from the second quarter. Print cash flow of $6 million also improved on a sequential-quarter basis, due to cost savings," Mr. Morton said.

"We remain committed to strong expense management," said Mr. Morton. For the full year 2011, Media General continues to expect that total operating expenses, excluding impairment, will decrease by approximately $20 million, or more than 3 percent, compared with total operating costs in 2010 of $605 million.

"Our local media websites generated more than $8 million in revenues, a 13 percent increase, and they delivered more than $1 million in cash flow. This performance was driven by a 32 percent increase in Local digital advertising," Mr. Morton said. "Unique visitors to our websites increased 17 percent, reflecting continuing audience growth from new sources such as tablets and social media.

"Despite a challenging economic environment, Media General has several positive catalysts on the horizon. In the fourth quarter, we are seeing a welcome strengthening in automotive advertising. We may see Political revenues advance into the latter part of this year from early primaries in Florida and South Carolina. Fourth-quarter broadcast pacings are 9-11 percent ahead of last year, excluding Political advertising. Looking to 2012, we expect significant Political revenues as well as advertising from the Summer Olympics and the Super Bowl on our eight NBC stations. This positive outlook notwithstanding, as our properties develop budgets for 2012, core revenue assumptions will be appropriately conservative, and expenses will be scaled to the revenue opportunity a particular market is expected to generate. We continue to accelerate our digital strategy, including new ways to be paid for our content. We have differentiated local content that people need, top-rated local news and strong local advertiser relationships to support our plans to increase cash flow generation," Mr. Morton said.

Market Segments

Virginia/Tennessee market profit in the third quarter was $6.1 million, compared with a profit of $7.4 million last year. Revenues declined from $46.1 million to $42.8 million, or 7.1 percent, even though digital media revenues increased nearly 14 percent. Broadcast revenues were essentially even with last year; the decline was driven by lower print revenues. Expenses decreased by 5.1 percent, including severance expense of $535,000 in 2011. Local revenues rose 1.4 percent, driven by increases at the market's two television stations and a 43 percent jump in local digital advertising, partially offset by declines on the print side. National revenues decreased 8.3 percent, due mostly to declines in Richmond. Classified revenues decreased 26.4 percent, as a result of lower legal, real estate and help-wanted advertising. Printing and distribution revenues increased 26.4 percent, reflecting new outside printing and distribution business.

The Florida market reported a loss of $1.7 million, compared with a profit of $2.1 million in the third quarter a year ago. Last year, Florida's total revenues of $39 million included $5 million of Political revenues and more than $1 million in revenues from BP image advertising, while this year's revenues of $30.5 million included only $300,000 of Political revenues and no BP revenues. Florida operating expenses decreased 12.6 percent, including lower compensation and other departmental expense reductions. Local revenues decreased 9.1 percent, reflecting print and broadcast declines, partially offset by Local digital revenues, which increased 41.6 percent. National revenues decreased 31.4 percent, due primarily to the absence of BP revenues and weakness in automotive and telecommunications. Classified revenues decreased 14.5 percent as a result of continued weakness in automotive and employment classifieds, partially offset by moderately increased real estate revenues. Printing and distribution revenues were up 8.6 percent. Digital media revenues grew 8.1 percent.

Mid-South market profit was $6.6 million, compared with $7 million last year. Total revenues were essentially even with last year, which included $1.8 million in Political revenues compared with $600,000 this year. Expenses increased 1.2 percent. Local advertising revenues increased 2.1 percent, as a result of higher broadcast and digital media advertising, partially offset by print declines. National advertising rose 3.1 percent, with six of the 11 television stations generating increases. Classified revenues were down 9.7 percent. Printing and distribution revenues were up 62.5 percent, due to a significant growth in third-party customers at several newspapers. Digital media revenue growth of 29.7 percent was the best performance of the company's geographic markets and resulted from focused sales pressure for new online advertising products.

The North Carolina market improved its profit to $993,000 compared with a loss of $51,000 last year. Revenues of $17.7 million decreased only 2.8 percent. Expenses declined 8.6 percent from last year, including severance costs. Local revenues decreased 3 percent, reflecting lower Local spending on the print side and at the Greenville television station, partially offset by increased Local advertising at the Raleigh television station and higher Local digital spending. National revenues decreased 10.1 percent, due to weakness in certain categories at both stations and the Winston-Salem Journal, partially offset by increased digital spending. Classified revenues decreased 11.1 percent, due to lower real estate and legal advertising. Printing and distribution revenues more than doubled, primarily reflecting printing of USA TODAY in Winston-Salem. Digital media revenues were flat.

Ohio/Rhode Island market profit was $3.5 million compared with $4.4 million last year. Total revenues this year of $12.8 million were down from $14.7 million, due almost entirely to the near absence of last year's $2 million in Political revenues. Local advertising revenues increased 1.7 percent from last year, while National revenues declined 11.1 percent. Digital media revenues grew 19.8 percent. Expenses decreased 9 percent.

The Advertising Services and Other segment loss of $1.1 million compared with a profit of $483,000 last year. The decrease was primarily attributable to significantly lower revenues at DealTaker.com, due to issues related to Google search algorithms, which DealTaker is taking aggressive actions to counter.

Other Results

The effects of the weakening economic recovery on certain markets, combined with the market's perception of the value of media company stocks, including Media General, led the company to perform a third-quarter goodwill impairment test. The test resulted in the non-cash goodwill impairment charge of $26.6 million related to certain print properties in the Virginia/Tennessee market.

Interest expense was approximately $16 million in the current quarter, down from $17 million in the prior-year quarter, due primarily to lower interest rates and the expiration of interest rate swaps in August of 2011.

Corporate expense decreased nearly 10 percent from last year, due to employee furloughs and reductions in discretionary spending.

Newsprint expense in the third quarter increased 19.5 percent from last year's quarter. Consumption decreased modestly, while the average price per ton this year was $598, which compared with $494 per ton in 2010.

The company recorded an income tax benefit of $6.9 million in the third quarter, compared to a tax expense of $5.3 million in 2010, due primarily to the impairment charge, which more than offset the scheduled non-cash tax expense of $6.2 million related to the "naked" credit issue (as previously discussed in the company's public filings). Media General continues to expect to pay no cash taxes for the next few years.

Debt at the end of the third quarter was $665 million. Total indebtedness to EBITDA was 6.62x versus a maximum of 8.00x.

EBITDA excluding impairment (loss/income before interest, taxes, depreciation and amortization, and impairment) was $18.9 million, compared with$24.9 millionin the 2010 period. After-Tax Cash Flow was $2.8 million, excluding impairment, compared to $7.8 million in the prior-year. Capital expenditures were $5.1 million this year, compared with $6.8 million in the third quarter last year. Free Cash Flow (After-Tax Cash Flow excluding impairment minus capital expenditures) wasa deficit of$2.3 million, compared with Free Cash Flow of $1 million in the prior-year.

Media General provides the non-GAAP financial metrics EBITDA excluding impairment, After-Tax Cash Flow, Free Cash Flow, Operating Income Adjusted for Impairment and Operating Costs Excluding Impairment. The company believes these metrics, along with the supplemental platform results, are common alternative measures used by investors, financial analysts and rating agencies to evaluate a company's ability to service its debt requirements and to estimate the value of the company. A reconciliation of these metrics to amounts on the GAAP statements has been included in this news release.

Conference Call, Webcast and Financial Statements

The company will hold a conference call with financial analysts today at 11 a.m. ET. The conference call will be available to the media and general public through a limited number of listen-only dial-in conference lines and via simultaneous webcast. To dial in to the call, listeners may call 1-866-203-3436 about 10 minutes prior to the 11 a.m. start. The participant passcode is "Media General." Listeners may also access the live webcast by logging on to www.mediageneral.com and clicking on the "Live Webcast" link on the homepage about 10 minutes in advance. A replay of the webcast will be available online at www.mediageneral.com beginning at 2 p.m. today. A telephone replay is also available, beginning at 2 p.m. today, and ending at 2 p.m. on October 26, 2011, by dialing 1-888-286-8010 or 617-801-6888, and using the passcode 30816874.

Forward-Looking Statements

This news release contains forward-looking statements that are subject to various risks and uncertainties and should be understood in the context of the company's publicly available reports filed with the Securities and Exchange Commission. Media General's future performance could differ materially from its current expectations.

About Media General

Media General is a leading provider of news, information and entertainment across multiple media platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern United States. The company is transforming itself over time to a digital media model, while continuing to effectively manage its larger, cash producing broadcast television and print platforms. Media General's operations are organized in five geographic market segments and a sixth segment that includes the company's interactive advertising services and certain other operations. The company's operations include 18 network-affiliated television stations and their associated websites and 23 newspapers and their associated websites. Media General operates three digital media advertising services companies: Blockdot, which specializes in interactive entertainment and advergaming technologies; DealTaker.com, a coupon and shopping website; and NetInformer, a leading provider of wireless media and mobile marketing services.

Media General, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS

Thirty-Nine Weeks
Thirteen Weeks Ending Ending
--------------------- -----------------
September September September September
25, 26, 25, 26,
(Unaudited,
in
thousands
except
per
share
amounts) 2011 2010 2011 2010
----------- ---- ---- ---- ----

Revenues
Broadcast
television $65,126 $75,009 $200,811 $214,603
Digital
media
and
other 9,013 10,517 28,877 31,746
Print 70,605 77,687 218,785 241,890
----- ------ ------ ------- -------
Total
revenues 144,744 163,213 448,473 488,239
--------- ------- ------- ------- -------

Operating
costs:
Employee
compensation 66,048 74,494 215,147 222,531
Production 34,544 37,765 106,710 110,129
Selling,
general
and
administrative 25,515 26,288 79,389 78,521
Depreciation
and
amortization 12,935 13,204 38,995 40,602
Goodwill
impairment 26,617 --- 26,617 ---
----------- ------ --- ------ ---
Total
operating
costs 165,659 151,751 466,858 451,783
---------- ------- ------- ------- -------

Operating
income
(loss) (20,915) 11,462 (18,385) 36,456
--------- ------- ------ ------- ------

Other
income
(expense):
Interest
expense (16,035) (17,015) (49,791) (53,927)
Other,
net 245 184 762 725
------ --- --- --- ---
Total
other
expense (15,790) (16,831) (49,029) (53,202)
-------- ------- ------- ------- -------

Loss
before
income
taxes (36,705) (5,369) (67,414) (16,746)

Income
tax
(benefit)
expense (6,873) 5,288 3,604 14,940
Net loss $(29,832) $(10,657) $(71,018) $(31,686)
======== ======== ======== ======== ========

Net loss
per
common
share -
basic
and
diluted $(1.32) $(0.48) $(3.16) $(1.42)
======== ====== ====== ====== ======

Weighted-
average
common
shares
outstanding:
Basic and
diluted 22,517 22,366 22,469 22,333
--------- ------ ------ ------ ------

Media General, Inc.
BUSINESS SEGMENTS

Operating
(Unaudited, in thousands) Revenues Depreciation & Profit
------------------------- -------- Amortization (Loss)
------------ ------
Three Months Ending
September 25, 2011
Virginia/Tennessee $42,812 $(3,154) $6,082
Florida 30,504 (1,593) (1,720)
Mid-South 39,030 (3,001) 6,599
North Carolina 17,664 (1,382) 993
Ohio/Rhode Island 12,832 (717) 3,502
Advertising Services & Other 3,207 (207) (1,110)
Eliminations (1,305) - -
---
14,346
Unallocated amounts:
Acquisition intangibles
amortization (1,488) (1,488)
Corporate expense (1,393) (7,128)
$144,744 $(12,935)
======== ========

Corporate interest expense (16,022)
Goodwill impairment (26,617)
Other 204

Loss before income taxes $(36,705)
========

Operating
(Unaudited, in thousands) Revenues Depreciation & Profit
------------------------- -------- Amortization (Loss)
------------ ------
Three Months Ending
September 26, 2010
Virginia/Tennessee $46,105 $(3,285) $7,399
Florida 38,958 (1,718) 2,052
Mid-South 39,065 (2,875) 7,030
North Carolina 18,174 (1,478) (51)
Ohio/Rhode Island 14,688 (809) 4,426
Advertising Services & Other 6,757 (185) 483
Eliminations (534) - (6)
---
21,333
Unallocated amounts:
Acquisition intangibles
amortization (1,518) (1,518)
Corporate expense (1,336) (7,888)
$163,213 $(13,204)
======== ========

Corporate interest expense (17,007)
Other (289)

Loss before income taxes $(5,369)
=======

Media General, Inc.
BUSINESS SEGMENTS
Operating
(Unaudited, in thousands) Revenues Depreciation & Profit
------------------------- -------- Amortization (Loss)
------------ ------
Nine months ended September
25, 2011
Virginia/Tennessee $130,309 $(9,485) $16,058
Florida 97,693 (4,795) (7,066)
Mid-South 118,334 (8,942) 19,208
North Carolina 54,267 (4,190) 1,817
Ohio/Rhode Island 39,260 (2,242) 9,385
Advertising Services & Other 12,384 (693) (2,456)
Eliminations (3,774) - -
---
36,946
Unallocated amounts:
Acquisition intangibles
amortization (4,502) (4,502)
Corporate expense (4,146) (23,366)
$448,473 $(38,995)
======== ========

Corporate interest expense (49,755)
Goodwill impairment (26,617)
Other (120)

Loss before income taxes $(67,414)
========

Operating
(Unaudited, in thousands) Revenues Depreciation & Profit
------------------------- -------- Amortization (Loss)
------------ ------
Nine months ended September
26, 2010
Virginia/Tennessee $140,903 $(9,862) $25,491
Florida 114,424 (5,242) 4,823
Mid-South 117,127 (8,895) 21,269
North Carolina 56,195 (4,592) 2,597
Ohio/Rhode Island 42,129 (2,479) 11,388
Advertising Services & Other 19,035 (650) 2,808
Eliminations (1,574) - (8)
---
68,368
Unallocated amounts:
Acquisition intangibles
amortization (4,660) (4,660)
Corporate expense (4,222) (23,600)
$488,239 $(40,602)
======== ========

Corporate interest expense (53,904)
Other (2,950)

Loss before income taxes $(16,746)
========

Media General, Inc.
REVENUES DETAIL

Thirteen Weeks Ending Thirty-Nine Weeks Ending
--------------------- ------------------------
September 25, September 26, September 25, September 26,
(Unaudited, in
thousands) 2011 2010 % Change 2011 2010 % Change
---- ---- -------- ---- ---- --------

Virginia/Tennessee
Broadcast
television $5,244 $5,260 (0.3)% $15,528 $15,510 0.1 %
Digital media
(local websites
and other) 2,903 2,550 13.8 % 8,543 7,166 19.2 %
Print 34,665 38,295 (9.5)% 106,238 118,227 (10.1)%
Total Virginia/
Tennessee revenues 42,812 46,105 (7.1)% 130,309 140,903 (7.5)%
------ ------ ----- ------- ------- -----

Florida
Broadcast
television 11,601 17,469 (33.6)% 37,427 46,328 (19.2)%
Digital media
(local websites
and other) 1,857 1,718 8.1 % 5,547 5,095 8.9 %
Print 17,046 19,771 (13.8)% 54,719 63,001 (13.1)%
Total Florida
revenues 30,504 38,958 (21.7)% 97,693 114,424 (14.6)%
------ ------ ------ ------ ------- ------

Mid-South
Broadcast
television 29,728 29,832 (0.3)% 90,433 89,421 1.1 %
Digital media
(local websites
and other) 1,689 1,302 29.7 % 4,613 3,500 31.8 %
Print 7,613 7,931 (4.0)% 23,288 24,206 (3.8)%
Total Mid-South
revenues 39,030 39,065 (0.1)% 118,334 117,127 1.0 %
------ ------ ----- ------- ------- ----

North Carolina
Broadcast
television 5,153 5,239 (1.6)% 15,935 16,294 (2.2)%
Digital media
(local websites
and other) 1,197 1,198 (0.1)% 3,584 3,252 10.2 %
Print 11,314 11,737 (3.6)% 34,748 36,649 (5.2)%
Total North
Carolina revenues 17,664 18,174 (2.8)% 54,267 56,195 (3.4)%
------ ------ ----- ------ ------ -----

Ohio/Rhode Island
Broadcast
television 12,214 14,172 (13.8)% 37,492 40,606 (7.7)%
Digital media
(local websites
and other) 618 516 19.8 % 1,768 1,523 16.1 %
Total Ohio/Rhode
Island revenues 12,832 14,688 (12.6)% 39,260 42,129 (6.8)%
------ ------ ------ ------ ------ -----

Advertising
Services & Other
Broadcast
television
(equipment/design
company) 2,174 3,298 (34.1)% 6,730 7,171 (6.1)%
Digital media and
other 1,033 3,459 (70.1)% 5,654 11,864 (52.3)%
Total Advertising
Services & Other
revenues 3,207 6,757 (52.5)% 12,384 19,035 (34.9)%
----- ----- ------ ------ ------ ------

Eliminations (1,305) (534) 144.4 % (3,774) (1,574) 139.8 %

Total revenues $144,744 $163,213 (11.3)% $448,473 $488,239 (8.1)%
======== ======== ====== ======== ======== =====

Selected revenue
categories
(Unaudited, in
thousands)

Broadcast
television
revenues (gross)
Local $40,992 $41,230 (0.6)% $128,540 $125,883 2.1 %
National 20,858 22,265 (6.3)% 63,786 67,608 (5.7)%
Political 1,328 9,659 (86.3)% 2,107 17,700 (88.1)%
Cable/Satellite
(retransmission)
fees 5,268 4,820 9.3 % 15,971 14,111 13.2 %
----- ----- ---- ------ ------ -----

Digital media and
other revenues
Local website
revenues
Local $4,885 $3,696 32.2 % $13,640 $10,293 32.5 %
National 794 920 (13.7)% 2,373 2,563 (7.4)%
Classified 2,353 2,425 (3.0)% 7,290 7,014 3.9 %
Advertising
Services 1,033 3,459 (70.1)% 5,654 11,864 (52.3)%
----- ----- ------ ----- ------ ------

Print revenues
Local $31,878 $33,900 (6.0)% $97,917 $105,746 (7.4)%
National 3,448 5,550 (37.9)% 11,431 16,944 (32.5)%
Classified 14,098 18,118 (22.2)% 45,015 56,787 (20.7)%
Circulation 15,440 16,218 (4.8)% 47,450 50,340 (5.7)%
Printing/
Distribution 4,374 3,293 32.8 % 12,907 9,864 30.8 %
----- ----- ----- ------ ----- -----

Media General, Inc.
CONSOLIDATED BALANCE SHEETS

September 25, December 26,
(Unaudited, in thousands) 2011 2010
------------------------- ---- ----

ASSETS

Current assets:
Cash and cash equivalents $10,099 $31,860
Accounts receivable - net 83,321 102,314
Inventories 7,289 7,053
Other 25,983 29,745
------ ------
Total current assets 126,692 170,972
------- -------

Other assets 36,557 40,629

Property, plant and equipment -
net 380,985 398,939

FCC licenses and other
intangibles -net 538,314 569,433

Total assets $1,082,548 $1,179,973
============ ========== ==========

LIABILITIES AND STOCKHOLDERS'
EQUITY

Current liabilities:
Accounts payable $23,847 $30,030
Accrued expenses and other
liabilities 68,178 89,784
------ ------
Total current liabilities 92,025 119,814
------ -------

Long-term debt 665,455 663,341

Deferred income taxes 40,518 34,729

Other liabilities and deferred
credits 187,246 198,167

Stockholders' equity 97,304 163,922
Total liabilities and
stockholders' equity $1,082,548 $1,179,973
===================== ========== ==========

SUPPLEMENTAL INFORMATION

Media General, Inc.
EBITDA, After-tax Cash Flow, and Free Cash Flow (excluding non-cash
impairment charge)

Thirteen Weeks Ending Thirty-Nine Weeks Ending
--------------------- ------------------------
September September
25, 26, September 25, September 26,
(Unaudited, in
thousands) 2011 2010 2011 2010
-------------- ---- ---- ---- ----

Net loss $(29,832) $(10,657) $(71,018) $(31,686)
Interest 16,035 17,015 49,791 53,927
Taxes (6,873) 5,288 3,604 14,940
Depreciation and
amortization 12,935 13,204 38,995 40,602
Non-cash impairment
charge 26,617 - 26,617 -

EBITDA, excluding non-
cash impairment
charge $18,882 $24,850 $47,989 $77,783
====================== ======= ======= ======= =======

Net loss $(29,832) $(10,657) $(71,018) $(31,686)
Taxes * (6,873) 5,288 3,604 14,940
Depreciation and
amortization 12,935 13,204 38,995 40,602
Non-cash impairment
charge 26,617 - 26,617 -

After-tax cash flow,
excluding non-cash
impairment charge $2,847 $7,835 $(1,802) $23,856
==================== ====== ====== ======= =======

After-tax cash flow,
excluding non-cash
impairment charge $2,847 $7,835 $(1,802) $23,856
Capital expenditures 5,102 6,808 15,681 15,604

Free cash flow,
excluding non-cash
impairment charge $(2,255) $1,027 $(17,483) $8,252
=================== ======= ====== ======== ======
* The Company's income taxes are non-cash in nature and have been added back
accordingly.
See 2010 Form 10-K for further discussion.

Operating income adjusted for impairment

(Unaudited, in thousands) Thirteen Weeks Ending
------------------------- September 25, 2011
------------------

Operating loss $(20,915)
Non-cash impairment charge 26,617
------

Operating income adjusted for
impairment $5,702
======

Operating costs adjusted for impairment

(Unaudited, in thousands except
for percentage) Thirteen Weeks Ending
------------------------------- ---------------------

September 25, September 26,
2011 2010
-------------- --------------
Operating costs $165,659 $151,751
Non-cash impairment charge (26,617) -
------- ---

Operating costs adjusted for
impairment $139,042 $151,751
======== ========

Percentage change from prior-
year quarter (8.4)%
=====

SUPPLEMENTAL INFORMATION

Media General, Inc.
RESULTS BY PLATFORM

The Company manages its operations and financial
performance in five geographic market segments and a
sixth segment that includes the Company's interactive
advertising services and certain other operations.
Although the Company is principally managed
geographically, its operations generally fall into the
following three platforms: Broadcast Television, Digital
Media and Print. The Broadcast Television platform
consists of 18 network-affiliated television stations.
The Print platform includes 23 daily newspapers and more
than 200 specialty publications including weekly
newspapers and niche publications. The Digital Media
platform consists of all of the websites associated with
the Broadcast Television and Print properties along with
three advertising services companies: Blockdot, which
specializes in interactive entertainment and advergaming
technologies; DealTaker.com, a coupon and shopping
website; and NetInformer, a provider of wireless media
and mobile marketing services.

Platform revenue, depreciation and amortization, operating
profit (loss) and cash flow are presented for
informational purposes only and are provided for the
benefit of investors, lenders, financial analysts and
rating agencies. These groups may use this information,
along with other measures, to evaluate the Company's
performance in comparison to peers. Consistent with the
Company's segment presentation, amortization of acquired
intangibles is not allocated to individual platforms. In
the presentation by platform, depreciation and
amortization of certain corporate assets that relate
solely to a particular platform are allocated to the
related platform. Additionally, intercompany costs
associated with content that was originally developed for
Print or Broadcast and also used on the websites, along
with certain sales commissions, are not allocated to the
Digital Media results. The results by platform exclude
intercompany sales.

(Unaudited,
In Platform
thousands) Revenues Depreciation Operating Cash
------------ -------- and Profit (Loss) Flow
Amortization ----
------------
Three Months
Ended
September
25, 2011
Broadcast
Television $65,126 $(5,045) $13,836 $18,881
Digital
media
and
other 9,013 (188) (131) 57
Print 70,605 (5,503) 641 6,144
---
14,346 25,082
======
Unallocated
amounts:
Acquisitions
intangibles
amortization - (1,488) (1,488)
Corporate
expense - (711) (7,128)
--- ----
$144,744 $(12,935)
======== ========
Corporate
interest
expense (16,022)
Goodwill
impairment (26,617)
Other 204
---
Loss before
income taxes $(36,705)
========

(Unaudited,
In Platform
thousands) Revenues Depreciation Operating Cash
------------ -------- and Profit (Loss) Flow
Amortization ----
------------
Three Months
Ended
September
26, 2010
Broadcast
Television $75,009 $(5,171) $18,161 $23,332
Digital
media
and
other 10,517 (240) 270 510
Print 77,687 (5,752) 2,902 8,654
-----
21,333 32,496
======
Unallocated
amounts:
Acquisitions
intangibles
amortization - (1,518) (1,518)
Corporate
expense - (523) (7,888)
--- ----
$163,213 $(13,204)
======== ========
Corporate
interest
expense (17,007)
Other (289)
----
Loss before
income taxes $(5,369)
=======

SUPPLEMENTAL
INFORMATION

Media
General,
Inc.
RESULTS BY
PLATFORM
(Unaudited,
In Platform
thousands) Revenues Depreciation Operating Cash
------------ -------- and Profit (Loss) Flow
Amortization ----
------------
Nine Months
Ended
September
25, 2011
Broadcast
Television $200,811 $(15,229) $40,208 $55,437
Digital
media
and
other 28,877 (681) (1,627) (946)
Print 218,785 (16,593) (1,635) 14,958
------
36,946 $69,449
=======
Unallocated
amounts:
Acquisitions
intangibles
amortization - (4,502) (4,502)
Corporate
expense - (1,990) (23,366)
--- ------
$448,473 $(38,995)
======== ========
Corporate
interest
expense (49,755)
Goodwill
impairment (26,617)
Other (120)
----
Loss before
income taxes $(67,414)
========

(Unaudited,
In Platform
thousands) Revenues Depreciation Operating Cash
------------ -------- and Profit (Loss) Flow
Amortization ----
------------
Nine Months
Ended
September
26, 2010
Broadcast
Television $214,603 $(15,834) $48,774 $64,608
Digital
media
and
other 31,746 (968) 2,158 3,126
Print 241,890 (17,397) 17,436 34,833
------
68,368 $102,567
========
Unallocated
amounts:
Acquisitions
intangibles
amortization - (4,660) (4,660)
Corporate
expense - (1,743) (23,600)
--- ------
$488,239 $(40,602)
======== ========
Corporate
interest
expense (53,904)
Other (2,950)
------
Loss before
income taxes $(16,746)
========

SOURCE Media General, Inc.

Media General, Inc.

CONTACT: Investor Contact: Lou Anne Nabhan, +1-804-649-6103, or Media Contact: Ray Kozakewicz, +1-804-649-6748

Web Site: http://www.mediageneral.com

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Profile: intent