Meredith Delivers 20% Growth In Fiscal 2014 Fourth Quarter Net Earnings

Meredith Delivers 20% Growth In Fiscal 2014 Fourth Quarter Net Earnings

Fiscal 2014 Featured Television Station Expansions in Phoenix, St. Louis and Springfield Markets

Continued Successful Execution of Total Shareholder Return Strategy including 6% Dividend Increase

DES MOINES, Iowa, July 31, 2014 /PRNewswire/ -- Meredith Corporation (NYSE: MDP; www.meredith.com) today reported fiscal 2014 fourth quarter net earnings increased 20 percent, and earnings per share rose 19 percent to $0.89 from $0.75 in the prior-year period. Excluding special items, fiscal 2014 fourth quarter earnings per share were $0.88 (See Tables 1-4). Revenues increased to $391 million.

"Our Local Media Group delivered another quarter of record performance," said Meredith Chairman and Chief Executive Officer Stephen M. Lacy. "We were particularly pleased with the performance of KMOV in St. Louis in its first full quarter under Meredith's ownership. We also completed the acquisition of KTVK in Phoenix, and announced an agreement to purchase WGGB, the ABC affiliate in Springfield, Mass."

Lacy noted the following business highlights during the fourth quarter of fiscal 2014 when compared to the prior-year period:


-- Local Media Group revenues increased 20 percent to $111 million, and
EBITDA grew 20 percent to $41 million (excluding special items), both
records for a fiscal fourth quarter. Growth was driven by strong
performance from Meredith television stations in Phoenix, Las Vegas and
Greenville; the addition of KMOV in St. Louis; record digital/mobile
advertising revenues; and higher retransmission-related revenues and
profit.
-- National Media Group operating profit margins strengthened, driven by
higher magazine advertising rates, increased contribution from
circulation activities, and a 6 percent decrease in operating expenses.
Operating profit was even with the prior year.
-- Consumer engagement grew across all of Meredith's media platforms. Total
traffic to Company websites grew to an average of more than 60 million
unique visitors per month, a record high. Meredith magazine readership
stands at an impressive 110 million. Also, Meredith's television
stations increased local programming hours and delivered a strong May
ratings book.
FISCAL 2014 REVIEW

Fiscal 2014 earnings per share were $2.50, compared to $2.74 in the prior year. Excluding special items in both years, fiscal 2014 earnings per share were $2.80, compared to $2.91 (See Tables 1-4). Meredith recorded $34 million less of political advertising revenues in fiscal 2014 than in the prior year, as expected in an off-election year. Total revenues were $1.5 billion, even with the prior year.

"In fiscal 2014, we added great new television stations to our Local Media Group portfolio; executed a number of initiatives to strengthen and grow our National Media Group including the launch of Allrecipes magazine; and increased our dividend and expanded our share repurchase program," Lacy said. "We aggressively executed on our Total Shareholder Return Strategy by deploying capital in high cash flow businesses and grew the amount of cash returned to our shareholders."

Fiscal 2014 highlights included:


-- Significant expansion of Meredith's television footprint including:
-- KTVK, an independent station in Phoenix, the nation's 12(th) largest
television market. This transaction closed on June 19, 2014. KTVK
produces more hours of local news than any station in the market.
Meredith now has a duopoly in Phoenix as it also owns KPHO, the CBS
affiliate.
-- KMOV, the CBS affiliate in St. Louis, the nation's 21(st) largest
television market. This transaction closed on February 28, 2014,
and the station has been successfully integrated into Meredith's
operations. KMOV consistently wins the important late news rating
book. Meredith now operates the two largest CBS affiliates in
Missouri, the other being KCTV in Kansas City.
-- WGGB, the ABC affiliate in Springfield, Mass. This transaction is
expected to close in the first quarter of fiscal 2015. WGGB is also
the Fox affiliate, airing it on a digital tier. This would be
another duopoly for Meredith, as it currently owns WSHM, the CBS
affiliate.
-- Portfolio and marketplace enhancements by Meredith's National Media
Group - Meredith successfully extended the Allrecipes brand to the
magazine platform in what Media Industry Newsletter called the "Hottest
Launch of the Year." It also successfully integrated the Parenting and
Baby Talk brands it acquired from Bonnier in late fiscal 2013. Meredith
announced the Spring 2015 launch of Parents Latina, a magazine designed
to serve English-speaking Hispanic moms. Additionally, Meredith was
named "Advertisers' Favorite Media Company" for the second time in four
years by Advertiser Perceptions, which annually surveys thousands of
leading advertising agencies and marketers. Google won in the prior
year.
-- Rapid growth in Meredith's digital, mobile, video and social platforms -
Meredith grew its digital audience to more than 60 million monthly
unique visitors, according to the most recent data from comScore.
Highlights included expansion of its video library to more than 15,000
searchable videos; and strengthening the presence of Meredith brands
across social media platforms such as Facebook and Pinterest. Better
Homes and Gardens achieved 2 million followers on Facebook, making it
the most popular brand among its peers on that platform.
-- Strong performance from Meredith's non-advertising-related activities:
-- Meredith's Local Media Group delivered significant growth in
retransmission-related revenues, and has contractual agreements for
its network affiliations in place through the next two to four
years.
-- In Meredith's National Media Group, brand licensing delivered
excellent performance driven by strong sales of Better Homes and
Gardens branded products at Walmart stores across the U.S., along
with expansion of the Better Homes and Gardens real estate network.
Meredith Xcelerated Marketing grew operating profit (excluding
special items) by solidifying business with its Top 10 clients,
including expansions with Chrysler, Mercer, Allergan and Kia.
-- Successful execution of Meredith's Total Shareholder Return strategy -
Meredith increased its dividend 6 percent to $1.73 on an annualized
basis, a yield of approximately 4 percent. The Company repurchased 1.6
million shares of its stock and authorized an additional $100 million
for its share repurchase program.
LOCAL MEDIA GROUP OPERATING DETAIL

Meredith's Local Media Group includes 15 owned or operated television stations reaching 10 percent of U.S. households. Meredith's portfolio is concentrated in large, fast-growing markets, including seven stations among the nation's Top 25 and 13 in the Top 50. Meredith's stations produce approximately 525 hours of local news and entertainment content each week. Meredith expects to continue to grow its Local Media Group both organically and through strategic acquisitions.

Fiscal 2014 fourth quarter Local Media Group operating profit was $25 million ($32 million excluding special items, a record for a fiscal fourth quarter), compared to $28 million in the prior-year period (See Tables 1-4).Revenues rose 20 percent to $111 million.

Fiscal 2014 Local Media Group operating profit was $113 million ($122 million excluding special items, a record for a non-political year), compared to $124 million ($126 million excluding special items) in the prior year (See Tables 1-4).Total Local Media Group revenues rose 7 percent to a record $403 million.

Looking more closely at fiscal 2014 performance before special items:


-- Non-political advertising revenues grew 8 percent to $291 million.
Digital advertising revenues grew more than 15 percent to record levels,
driven by increased traffic across the desktop and video platforms, the
launch of new mobile apps, and the addition of KMOV.
-- Other revenues and operating expenses both increased, due primarily to
growth in retransmission revenues from cable and satellite television
operators, and higher programming fees paid to affiliated networks.
-- EBITDA grew to a record $151 million, and EBITDA margin was 38 percent.
Meredith's connection with viewers also strengthened in fiscal 2014. Looking at the May 2014 rating book for the key 25-54 age group, Meredith stations in:


-- Portland, St. Louis and Las Vegas were ranked #1 in late news, while
Nashville, Greenville and Saginaw were ranked second;
-- Portland, Hartford and Las Vegas were #1 in morning news, and Saginaw
was ranked second;
-- Hartford and Las Vegas were #1 in evening news, and St. Louis and
Saginaw were second; and
-- Nashville was #1 in sign-on to sign-off; and St. Louis, Kansas City and
Saginaw were second.
Daytime Emmy Award-nominated The Better Show, the daily syndicated program produced by Meredith Video Studios, was renewed for an eighth season. It's currently available in 80 percent of U.S. television households.

"We delivered record revenues and operating profit for a non-political year," said Local Media Group President Paul Karpowicz. "We're excited to add KTVK in Phoenix and KMOV in St. Louis to the Meredith portfolio, and look forward to having WGGB in Springfield join our group. The addition of these stations - along with increasing retransmission revenues, growing non-political advertising, rising digital advertising and the upcoming political advertising cycle - point to a strong fiscal 2015 for our business."

NATIONAL MEDIA GROUP OPERATING DETAIL

Meredith's National Media Group reaches 100 million unduplicated American women, including 60 percent of millennial women. Meredith is a leader at creating content across media platforms and life stages in key consumer interest areas such as food, home, parenthood and health. The National Media Group also features robust brand licensing activities and innovative business-to-business marketing services. Meredith expects to continue to grow its National Media Group organically and through strategic acquisitions.

Fiscal 2014 fourth quarter National Media Group operating profit was $43 million, even with the prior-year period. Revenues were $280 million. Fiscal 2014 National Media Group operating profit was $113 million ($133 million excluding special items), compared to $138 million ($144 million excluding special items) in the prior-year period (See Tables 1-4). Revenues were $1.1 billion.

Looking more closely at fiscal 2014 performance:


-- Total advertising revenues were $483 million. Weighted average net
revenue per magazine page increased approximately 2 percent. Meredith
grew its share of magazine advertising revenues in its competitive set
to more than 38 percent, according to the most recent data from
Publishers Information Bureau. Digital advertising revenues accounted
for 16 percent of total National Media Group advertising revenues.
-- Circulation revenues grew 2 percent to $327 million, driven by the
launch of Allrecipes magazine and initiatives to grow the new title's
rate base, along with strong performance from Meredith's parenthood and
Hispanic brands. In addition, Meredith continued to develop its digital
consumer marketing activities, increasing digital orders for print
magazine subscriptions nearly 20 percent to 7 million. Digital orders
now account for 40 percent of all Meredith magazine subscriptions.
-- Brand Licensing revenues increased 10 percent, led by continued strong
sales of more than 3,000 SKUs of Better Homes and Gardens licensed
products at more than 4,000 Walmart stores nationwide. The Better Homes
and Gardens-branded real estate program with Realogy now features 8,300
agents in 26 states. Meredith's brand licensing activities were recently
ranked No. 3 in the world based on sales transactions by Global License!
alongside licensing giants Disney and Hasbro.
-- Meredith Xcelerated Marketing grew operating profit (excluding special
items) by solidifying business with its Top 10 clients, including
significant expansions with Chrysler, Mercer, Allergan and Kia.
Meredith's consumer engagement continued to grow in fiscal 2014. Readership for Meredith's subscription titles grew 5 percent in fiscal 2014 and median reader income rose, according to the most recent data from Mediamark Research and Intelligence. Digital traffic averaged more than 50 million unique visitors in Fiscal 2014, according to comScore, and Allrecipes.com continues to lead in the Food category.

"We are pleased to have successfully grown non-advertising sources of revenue in fiscal 2014, particularly our very robust brand licensing arrangements," said National Media Group President Tom Harty. "While the advertising environment is challenging, we are increasing our share of magazine advertising revenues; strengthening our digital business; and proving that advertising in Meredith brands delivers exceptional returns through our Meredith Sales Guarantee program."

OTHER FINANCIAL INFORMATION

Consistent with its Total Shareholder Return (TSR) strategy, Meredith repurchased 1.6 million shares of its stock in fiscal 2014. At June 30, 2014, $108 million remained under the current repurchase authorization. Total debt was $715 million at June 30, 2014, and the weighted average interest rate was 2.3 percent. Meredith's debt-to-EBITDA ratio for the 12 months ended June 30, 2014, was 2.7 to 1.

Key elements of Meredith's TSR strategy are (1) An annual dividend of $1.73 per share, which reflects a 6 percent increase in the annual dividend over the prior year and a 70 percent increase since Meredith launched its TSR strategy in October 2011; (2) A renewed $100 million share repurchase program; and (3) Ongoing investments to scale the business and increase shareholder value.

All earnings per share figures in the text of this release are diluted. Both basic and diluted earnings per share can be found in the attached Condensed Consolidated Statements of Earnings. All fiscal 2014 and fourth quarter comparisons are against the comparable prior-year periods.

OUTLOOK

Meredith expects full year fiscal 2015 earnings per share to range from $3.00 to $3.25. In fiscal 2015, Meredith expects a total of $28 million to $33 million of political advertising revenues at its television stations, with the majority being booked in the second fiscal quarter.

Looking more closely at the first quarter of fiscal 2015 compared to the prior-year period:


-- Total company revenues are expected to be up mid-single digits.
-- Total Local Media Group revenues are expected to be up 35 to 40 percent.
Approximately one-third of total fiscal 2015 political advertising
revenues are expected to be recorded in the first fiscal quarter.
-- Total National Media Group revenues are expected to be down mid-single
digits.
-- Meredith expects fiscal 2015 first quarter earnings per share to range
from $0.60 to $0.65, compared to $0.53 in the prior-year period.
A number of uncertainties remain that may affect Meredith's outlook as stated in this press release for the first quarter and full year fiscal 2015. These and other uncertainties are referenced below under "Safe Harbor" and in certain filings with the U.S. Securities and Exchange Commission.

CONFERENCE CALL WEBCAST

Meredith will host a conference call on July 31, 2014 at 11 a.m. EDT to discuss fiscal 2014 fourth quarter and full year results. A live webcast will be accessible to the public on the Company's website, www.meredith.com, and a replay will be available for two weeks. A transcript will be available within 48 hours of the call at www.meredith.com.

RATIONALE FOR USE AND ACCESS TO NON-GAAP RESULTS

Management uses and presents GAAP and non-GAAP results to evaluate and communicate its performance. Non-GAAP measures should not be construed as alternatives to GAAP measures. EBITDA and EBITDA margin are common supplemental measures of performance used by investors and financial analysts. Management believes that EBITDA provides an additional analytical tool to clarify the Company's results from core operations and delineate underlying trends. Management does not use EBITDA as a measure of liquidity or funds available for management's discretionary use because it includes certain contractual and non-discretionary expenditures.

Results excluding the special items are supplemental non-GAAP financial measures. While these adjusted results are not a substitute for reported results under GAAP, management believes this information is useful as an aid in better understanding Meredith's current performance, performance trends and financial condition. Reconciliations of non-GAAP to GAAP measures are attached to this press release and available at www.meredith.com.

SAFE HARBOR

This release contains certain forward-looking statements that are subject to risks and uncertainties. These statements are based on management's current knowledge and estimates of factors affecting the Company and its operations. Statements in this release that are forward-looking include, but are not limited to, the Company's revenue and earnings per share outlook for first quarter and full year fiscal 2015.

Actual results may differ materially from those currently anticipated. Factors that could adversely affect future results include, but are not limited to, downturns in national and/or local economies; a softening of the domestic advertising market; world, national or local events that could disrupt broadcast television; increased consolidation among major advertisers or other events depressing the level of advertising spending; the unexpected loss or insolvency of one or more major clients or vendors; the integration of acquired businesses; changes in consumer reading, purchasing and/or television viewing patterns; increases in paper, postage, printing, syndicated programming or other costs; changes in television network affiliation agreements; technological developments affecting products or methods of distribution; changes in government regulations affecting the Company's industries; increases in interest rates; and the consequences of acquisitions and/or dispositions. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

ABOUT MEREDITH CORPORATION

Meredith Corporation (NYSE: MDP; www.meredith.com) has been committed to service journalism for more than 110 years. Today, Meredith uses multiple distribution platforms - including broadcast television, print, digital, mobile, tablets and video - to provide consumers with content they desire and to deliver the messages of its advertising and marketing partners.

Meredith's Local Media Group includes 15 owned or operated television stations reaching 10 percent of U.S. households. Meredith's portfolio is concentrated in large, fast-growing markets, with seven stations in the nation's Top 25 - including Atlanta, Phoenix and Portland - and 13 in Top 50 markets. Meredith's stations produce approximately 525 hours of local news and entertainment content each week, and operate leading local digital destinations. Additionally, Meredith Video Studios produces The Better Show, a syndicated daily lifestyle television program reaching 80 percent of U.S. TV households.

Meredith's National Media Group reaches 100 million unduplicated American women, including 60 percent of millennial women. Meredith is the leader in creating content across media platforms in key consumer interest areas such as food, home, parenthood and health through well-known brands such as Better Homes and Gardens, Parents and Allrecipes. The National Media Group features robust brand licensing activities, including over 3,000 SKUs of branded products at 4,000 Walmart stores across the U.S. Meredith Xcelerated Marketing is a leader at developing and delivering custom content and customer relationship marketing programs for many of the world's top brands, including Kraft, Lowe's and Chrysler.

Meredith's balanced portfolio consistently generates substantial free cash flow, and the Company is committed to growing Total Shareholder Return through dividend payments, share repurchases and strategic business investments. Meredith's current annualized dividend of $1.73 per share yields approximately 4 percent. Meredith has paid a dividend for 67 straight years and increased it for 21 consecutive years.



Meredith Corporation and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)


Three Months Twelve Months
-------------

Periods ended June
30, 2014 2013 2014 2013
------------------ ---- ----

(In thousands
except per share
data)

Revenues

Advertising $204,138 $204,231 $778,391 $823,690

Circulation 87,669 87,878 327,214 322,223

All other 98,987 94,864 363,103 325,427
--------- ------ ------ ------- -------

Total revenues 390,794 386,973 1,468,708 1,471,340
-------------- ------- ------- --------- ---------

Operating expenses

Production,
distribution, and
editorial 149,265 144,725 567,024 561,058

Selling, general,
and administrative 167,442 172,853 655,241 654,098

Depreciation and
amortization 13,510 11,365 59,928 45,350
---------------- ------ ------ ------ ------

Total operating
expenses 330,217 328,943 1,282,193 1,260,506
--------------- ------- ------- --------- ---------

Income from
operations 60,577 58,030 186,515 210,834

Interest expense,
net (3,500) (3,200) (12,176) (13,430)
----------------- ------ ------ ------- -------

Earnings before
income taxes 57,077 54,830 174,339 197,404

Income taxes (16,632) (21,027) (60,798) (73,754)
------------ ------- ------- ------- -------

Net earnings $40,445 $33,803 $113,541 $123,650
------------ ------- ------- -------- --------


Basic earnings per
share $0.91 $0.76 $2.54 $2.78
------------------ ----- ----- ----- -----

Basic average
shares outstanding 44,551 44,512 44,636 44,455
------------------- ------ ------ ------ ------


Diluted earnings
per share $0.89 $0.75 $2.50 $2.74
---------------- ----- ----- ----- -----

Diluted average
shares outstanding 45,250 45,193 45,410 45,085
------------------- ------ ------ ------ ------


Dividends paid per
share $0.4325 $0.4075 $1.6800 $1.5800
------------------ ------- ------- ------- -------





Meredith Corporation and Subsidiaries

Segment Information (Unaudited)


Three Months Twelve Months
-------------

Periods ended June
30, 2014 2013 2014 2013
------------------ ---- ---- ---- ----

(In thousands)

Revenues

National media

Advertising $122,734 $134,264 $482,808 $515,831

Circulation 87,669 87,878 327,214 322,223

Other revenues 69,222 72,419 255,876 257,141
------ ------ ------- -------

Total national media 279,625 294,561 1,065,898 1,095,195
-------------------- ------- ------- --------- ---------

Local media

Non-political
advertising 78,280 69,242 290,698 268,861

Political
advertising 3,124 725 4,885 38,998

Other revenues 29,765 22,445 107,227 68,286
------ ------ ------- ------

Total local media 111,169 92,412 402,810 376,145

Total revenues $390,794 $386,973 $1,468,708 $1,471,340
-------------- -------- -------- ---------- ----------


Operating profit

National media $43,353 $43,393 $113,113 $137,985

Local media 25,463 27,676 113,060 124,116

Unallocated
corporate (8,239) (13,039) (39,658) (51,267)
------ ------- ------- -------

Income from
operations $60,577 $58,030 $186,515 $210,834
----------- ------- ------- -------- --------


Depreciation and
amortization

National media $4,100 $4,741 $29,455 $19,199

Local media 8,974 6,206 28,815 24,471

Unallocated
corporate 436 418 1,658 1,680
--- --- ----- -----

Total depreciation
and amortization $13,510 $11,365 $59,928 $45,350
------------------ ------- ------- ------- -------


EBITDA (1)

National media $47,453 $48,134 $142,568 $157,184

Local media 34,437 33,882 141,875 148,587

Unallocated
corporate (7,803) (12,621) (38,000) (49,587)
------ ------- ------- -------

Total EBITDA 1 $74,087 $69,395 $246,443 $256,184
-------------- ------- ------- -------- --------






(1) EBITDA is net earnings before
interest, taxes, depreciation,
and amortization.





Meredith Corporation and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)


Assets June 30,

2014 June 30,

2013
------ --------------- ---------------

(In thousands)

Current assets

Cash and cash
equivalents $36,587 $27,674

Accounts receivable, net 257,644 232,305

Inventories 24,008 28,386

Current portion of
subscription
acquisition costs 96,893 97,982

Current portion of
broadcast rights 4,551 2,831

Assets held for sale 32,900 -

Other current assets 17,429 18,514
-------------------- ------ ------

Total current assets 470,012 407,692
-------------------- ------- -------

Property, plant, and
equipment 501,216 464,255

Less accumulated
depreciation (296,168) (277,938)
---------------- -------- --------

Net property, plant, and
equipment 205,048 186,317

Subscription acquisition
costs 101,533 99,433

Broadcast rights 3,114 3,634

Other assets 86,935 69,848

Intangible assets, net 835,531 584,281

Goodwill 841,627 788,854
-------- ------- -------

Total assets $2,543,800 $2,140,059
------------ ---------- ----------


Liabilities and
Shareholders' Equity
---------------------

Current liabilities

Current portion of long-
term debt $87,500 $50,000

Current portion of long-
term broadcast rights
payable 4,511 4,089

Accounts payable 81,402 78,458

Accrued expenses and
other liabilities 136,047 132,676

Current portion of
unearned subscription
revenues 173,643 191,448
---------------------- ------- -------

Total current
liabilities 483,103 456,671

Long-term debt 627,500 300,000

Long-term broadcast
rights payable 4,327 5,096

Unearned subscription
revenues 151,533 163,809

Deferred income taxes 277,477 247,487

Other noncurrent
liabilities 108,208 112,700
---------------- ------- -------

Total liabilities 1,652,148 1,285,763
----------------- --------- ---------

Shareholders' equity

Common stock 36,776 36,242

Class B stock 7,700 8,324

Additional paid-in
capital 41,884 50,170

Retained earnings 814,050 775,901

Accumulated other
comprehensive loss (8,758) (16,341)
------------------- ------ -------

Total shareholders'
equity 891,652 854,296
------------------- ------- -------

Total liabilities and
shareholders' equity $2,543,800 $2,140,059
--------------------- ---------- ----------





Meredith Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)


Years ended June 30, 2014 2013
-------------------- ---- ----

(In thousands)

Net cash provided by
operating activities $178,090 $189,087
--------------------- -------- --------


Cash flows from
investing activities

Acquisitions of and
investments in
businesses (417,461) (50,190)

Additions to property,
plant, and equipment (24,822) (25,969)

Net cash used in
investing activities (442,283) (76,159)
--------------------- -------- -------


Cash flows from
financing activities

Proceeds from issuance
of long-term debt 666,000 175,000

Repayments of long-
term debt (301,000) (205,000)

Purchases of Company
stock (78,226) (54,734)

Dividends paid (75,392) (70,527)

Proceeds from common
stock issued 58,885 39,519

Excess tax benefits
from share-based
payments 4,855 5,438

Other (2,016) (770)
----- ------ ----

Net cash provided by
(used in) financing
activities 273,106 (111,074)
-------------------- ------- --------

Net increase in cash
and cash equivalents 8,913 1,854

Cash and cash
equivalents at
beginning of year 27,674 25,820
------------------ ------ ------

Cash and cash
equivalents at end of
year $36,587 $27,674
---------------------- ------- -------





Table 1

Meredith Corporation and Subsidiaries

Supplemental Disclosures Regarding Non-GAAP Financial Measures


Special Items - The following table shows results of operations excluding special items and as reported with the difference being the special items. Results of operations excluding special items are non-GAAP measures. Management's rationale for presenting non-GAAP measures is included in the text of this earnings
release.


Periods Ended June
30, 2014 Three Months Twelve Months
------------------ ------------ -------------

Excluding Special
Items Special Items As Reported Excluding Special Items As Reported

Special Items
---

(In thousands except per share data)

Revenues

Advertising $204,138 $ - $204,138 $778,391 $ - $778,391

Circulation 87,669 - 87,669 327,214 - 327,214

All other 98,987 - 98,987 363,103 - 363,103

Total revenues 390,794 - 390,794 1,468,708 - 1,468,708
-------------- ------- --- ------- --------- --- ---------

Operating expenses

Production,
distribution, and
editorial 149,265 - 149,265 566,779 245 (c) 567,024

Selling, general,
and administrative 161,347 6,095 (a) 167,442 638,057 17,184 (d) 655,241

Depreciation and
amortization 13,510 - 13,510 48,726 11,202 (e) 59,928
------ --- ------ ------ ------ ------

Total operating
expenses 324,122 6,095 330,217 1,253,562 28,631 1,282,193
--------------- ------- ----- ------- --------- ------ ---------

Income from
operations 66,672 (6,095) 60,577 215,146 (28,631) 186,515

Interest expense,
net (3,500) - (3,500) (11,540) (636) (f) (12,176)
----------------- ------ --- ------ ------- ---- --- -------

Earnings before
income taxes 63,172 (6,095) 57,077 203,606 (29,267) 174,339

Income taxes (23,269) 6,637 (b) (16,632) (76,357) 15,559 (g) (60,798)
------------ ------- ----- --- ------- ------- ------ --- -------

Net earnings $39,903 $542 $40,445 $127,249 $(13,708) $113,541
------------ ------- ---- ------- -------- -------- --------


Basic earnings per
share $0.90 $0.01 $0.91 $2.85 $(0.31) $2.54
------------------ ----- -----

Basic average
shares outstanding 44,551 44,551 44,551 44,636 44,636 44,636
------------------- ------ ------ ------ ------ ------ ------


Diluted earnings
per share $0.88 $0.01 $0.89 $2.80 $(0.30) $2.50
----------------

Diluted average
shares outstanding 45,250 45,250 45,250 45,410 45,410 45,410
------------------- ------ ------ ------ ------ ------ ------






(a) Severance costs of $3.4
million, acquisition
transaction costs of $2.4
million and other accruals of
$0.3 million

(b) Tax benefit from realignment
of international operations of
$4.3 million and tax benefit on
restructuring and acquisition
transaction charges of

$2.3 million

(c) Write-down of art and
manuscript inventory

(d) Severance costs of $11.9
million, acquisition
transaction costs of $5.5
million, and accrued costs of
$1.1 million partially offset
by a $1.3 million

reduction in previously accrued
restructuring charges

(e) Write-down of Ladies' Home
Journal trademark of $9.3
million and write-down of
medical sales force training
business assets of $1.9 million

(f) Write-off of deferred
financing costs related to
refinancing of revolving credit
agreement

(g) Tax benefit on restructuring
and acquisition transaction
charges of $11.3 million and
tax benefit from realignment of
international operations of

$4.3 million





Table 2

Meredith Corporation and Subsidiaries

Supplemental Disclosures Regarding Non-GAAP Financial Measures


Special Items - The following table shows results of operations excluding special items and as reported with the difference being the special items. Results of operations excluding special items are non-GAAP measures. Management's rationale for presenting non-GAAP measures is included in the text of this earnings release.


Periods Ended June
30, 2014 Three Months Twelve Months
------------------ ------------ -------------

Excluding Special
Items Special Items As Reported Excluding Special Items As Reported

Special Items
---

(In thousands)

Revenues

National media

Advertising $122,734 $ - $122,734 $482,808 $ - $482,808

Circulation 87,669 - 87,669 327,214 - 327,214

Other revenues 69,222 - 69,222 255,876 - 255,876

Total national media 279,625 - 279,625 1,065,898 - 1,065,898
-------------------- ------- --- ------- --------- --- ---------

Local media

Non-political
advertising 78,280 - 78,280 290,698 - 290,698

Political
advertising 3,124 - 3,124 4,885 - 4,885

Other revenues 29,765 - 29,765 107,227 - 107,227

Total local media 111,169 - 111,169 402,810 - 402,810
----------------- ------- --- ------- ------- --- -------

Total revenues $390,794 $ - $390,794 $1,468,708 $ - $1,468,708
-------------- -------- --- --- -------- ---------- --- --- ----------


Operating profit

National media $43,353 $ - $43,353 $132,880 $(19,767) (b) $113,113

Local media 31,558 (6,095) (a) 25,463 122,230 (9,170) (c) 113,060

Unallocated
corporate (8,239) - (8,239) (39,964) 306 (d) (39,658)

Income from
operations $66,672 $(6,095) $60,577 $215,146 $(28,631) $186,515
----------- ------- ------- ------- -------- -------- --------


Depreciation and amortization

National media $4,100 $ - $4,100 $18,253 $11,202 (e) $29,455

Local media 8,974 - 8,974 28,815 - 28,815

Unallocated
corporate 436 - 436 1,658 - 1,658

Total depreciation
and amortization $13,510 $ - $13,510 $48,726 $11,202 $59,928
------------------ ------- --- --- ------- ------- ------- -------


EBITDA(1)

National media $47,453 $ - $47,453 $151,133 $(8,565) $142,568

Local media 40,532 (6,095) 34,437 151,045 (9,170) 141,875

Unallocated
corporate (7,803) - (7,803) (38,306) 306 (38,000)

Total EBITDA(1) $80,182 $(6,095) $74,087 $263,872 $(17,429) $246,443
-------------- ------- ------- ------- -------- -------- --------






(1) EBITDA is net earnings before
interest, taxes, depreciation,
and amortization.


(a) Severance costs of $3.4
million, acquisition transaction
costs of $2.4 million, and other
accruals of $0.3 million

(b) Write-down of Ladies' Home
Journal trademark of $9.3
million, severance costs of $8.5
million, write-down of other
assets of $2.1 million, and

accrued costs of $0.8 million
partially offset by a $1.0
million reduction in previously
accrued restructuring charges

(c) Severance costs of $3.4
million, acquisition transaction
costs of $5.5 million, and other
accruals of $0.3 million

(d) Reversal of previously accrued
restructuring charges

(e) Write-down of Ladies' Home
Journal trademark of $9.3 million
and write-down of medical sales
force training business assets of
$1.9 million





Table 3

Meredith Corporation and Subsidiaries

Supplemental Disclosures Regarding Non-GAAP Financial Measures


Special Items - The following table shows results of operations excluding special items and as reported with the difference being the special items. Results of operations excluding special items are non-GAAP measures. Management's rationale for presenting non-GAAP measures is included in the text of
this earnings release.


Periods Ended June
30, 2013 Three Months Twelve Months
------------------ ------------ -------------

Excluding Special Special
Items Items As Reported Excluding Special Items As Reported

Special Items
---

(In thousands except per share data)

Revenues

Advertising $204,231 $ - $204,231 $823,690 $ - $823,690

Circulation 87,878 - 87,878 322,223 - 322,223

All other 94,864 - 94,864 325,427 - 325,427


Total revenues 386,973 - 386,973 1,471,340 - 1,471,340
-------------- ------- --- ------- --------- --- ---------

Operating expenses

Production,
distribution, and
editorial 144,725 - 144,725 561,058 - 561,058

Selling, general,
and administrative 172,853 - 172,853 641,960 12,138 (a) 654,098

Depreciation and
amortization 11,365 - 11,365 45,350 - 45,350


Total operating
expenses 328,943 - 328,943 1,248,368 12,138 1,260,506
--------------- ------- --- ------- --------- ------ ---------

Income from
operations 58,030 - 58,030 222,972 (12,138) 210,834

Interest expense,
net (3,200) - (3,200) (13,430) - (13,430)
----------------- ------ --- ------ ------- --- -------

Earnings before
income taxes 54,830 - 54,830 209,542 (12,138) 197,404

Income taxes (21,027) - (21,027) (78,428) 4,674 (73,754)
------------ ------- --- ------- ------- ----- -------

Net earnings $33,803 $ - $33,803 $131,114 $(7,464) $123,650
------------ ------- --- --- ------- -------- ------- --------


Basic earnings per
share $0.76 $ - $0.76 $2.95 $(0.17) $2.78
------------------ ----- --- ---

Basic average
shares outstanding 44,512 44,512 44,512 44,455 44,455 44,455
------------------- ------ ------ ------ ------ ------ ------


Diluted earnings
per share $0.75 $ - $0.75 $2.91 $(0.17) $2.74
----------------

Diluted average
shares outstanding 45,193 45,193 45,193 45,085 45,085 45,085
------------------- ------ ------ ------ ------ ------ ------






(a) Professional fees and expenses related to a transaction that did
not materialize of $5.1 million, severance costs of $7.4 million,
and vacated lease

accruals of $0.4 million partially offset by a $0.8 million reduction
in previously accrued restructuring charges





Table 4

Meredith Corporation and Subsidiaries

Supplemental Disclosures Regarding Non-GAAP Financial Measures


Special Items - The following table shows results of operations excluding special items and as reported with the difference being the special items. Results of operations excluding special items are non-GAAP measures. Management's rationale for presenting non-GAAP measures is included in the text of this earnings
release.


Periods Ended June
30, 2013 Three Months Twelve Months
------------------ ------------ -------------

Excluding Special Special
Items Items As Reported Excluding Special Items As Reported

Special Items
---

(In thousands)

Revenues

National media

Advertising $134,264 $ - $134,264 $515,831 $ - $515,831

Circulation 87,878 - 87,878 322,223 - 322,223

Other revenues 72,419 - 72,419 257,141 - 257,141

Total national media 294,561 - 294,561 1,095,195 - 1,095,195
-------------------- ------- --- ------- --------- --- ---------

Local media

Non-political
advertising 69,242 - 69,242 268,861 - 268,861

Political
advertising 725 - 725 38,998 - 38,998

Other revenues 22,445 - 22,445 68,286 - 68,286

Total local media 92,412 - 92,412 376,145 - 376,145
----------------- ------ --- ------ ------- --- -------

Total revenues $386,973 $ - $386,973 $1,471,340 $ - $1,471,340
-------------- -------- --- --- -------- ---------- --- --- ----------


Operating profit

National media $43,393 $ - $43,393 $143,533 $(5,548) (a) $137,985

Local media 27,676 - 27,676 125,611 (1,495) (b) 124,116

Unallocated
corporate (13,039) - (13,039) (46,172) (5,095) (c) (51,267)

Income from
operations $58,030 $ - $58,030 $222,972 $(12,138) $210,834
----------- ------- --- --- ------- -------- -------- --------


Depreciation and amortization

National media $4,741 $ - $4,741 $19,199 $ - $19,199

Local media 6,206 - 6,206 24,471 - 24,471

Unallocated
corporate 418 - 418 1,680 - 1,680

Total depreciation
and amortization $11,365 $ - $11,365 $45,350 $ - $45,350
------------------ ------- --- --- ------- ------- --- --- -------


EBITDA(1)

National media $48,134 $ - $48,134 $162,732 $(5,548) (a) $157,184

Local media 33,882 - 33,882 150,082 (1,495) (b) 148,587

Unallocated
corporate (12,621) - (12,621) (44,492) (5,095) (c) (49,587)


Total EBITDA(1) $69,395 $ - $69,395 $268,322 $(12,138) $256,184
-------------- ------- --- --- ------- -------- -------- --------






(1) EBITDA is net earnings before
interest, taxes, depreciation,
and amortization.


(a) Severance costs of $5.9
million and a vacated lease
accrual of $0.4 million partially
offset by a $0.8 million
reduction in previously accrued

restructuring charges

(b) Severance costs

(c) Professional fees and expenses
related to a transaction that did
not materialize





Table 5

Meredith Corporation and Subsidiaries

Supplemental Disclosures Regarding Non-GAAP Financial Measures


EBITDA

Consolidated EBITDA, which is reconciled to net earnings in the following tables, is defined as net earnings before interest, taxes, depreciation, and amortization.

Segment EBITDA is a measure of segment earnings before depreciation and amortization.

Segment EBITDA margin is defined as segment EBITDA divided by segment revenues.


Three months ended June 30, 2014
--------------------------------

National Media Local Unallocated
Corporate Total

Media
---

(In thousands)

Revenues $279,625 $111,169 $ - $390,794
-------- -------- --- --- --------


Operating profit $43,353 $25,463 $(8,239) $60,577

Depreciation and
amortization 4,100 8,974 436 13,510
----- ----- --- ------

EBITDA $47,453 $34,437 $(7,803) 74,087
------- ------- -------

Less:

Depreciation and amortization (13,510)

Net interest expense (3,500)

Income taxes (16,632)
-------

Net earnings $40,445
-------


Segment EBITDA
margin 17.0% 31.0%
---- ----



Three months ended June 30, 2013
--------------------------------

National Media Local Unallocated
Corporate Total

Media
---

(In thousands)

Revenues $294,561 $92,412 $ - $386,973
-------- ------- --- --- --------


Operating profit $43,393 $27,676 $(13,039) $58,030

Depreciation and
amortization 4,741 6,206 418 11,365
----- ----- --- ------

EBITDA $48,134 $33,882 $(12,621) 69,395
------- ------- --------

Less:

Depreciation and amortization (11,365)

Net interest expense (3,200)

Income taxes (21,027)
-------

Net earnings $33,803
-------


Segment EBITDA
margin 16.3% 36.7%
-------------- ---- ----

Twelve months ended June 30, 2014
---------------------------------

National Media Local Unallocated
Corporate Total

Media
---

(In thousands)

Revenues $1,065,898 $402,810 $ - $1,468,708
---------- -------- --- --- ----------


Operating profit $113,113 $113,060 $(39,658) $186,515

Depreciation and
amortization 29,455 28,815 1,658 59,928
------ ------ ----- ------

EBITDA $142,568 $141,875 $(38,000) 246,443
-------- -------- --------

Less:

Depreciation and amortization (59,928)

Net interest expense (12,176)

Income taxes (60,798)
-------

Net earnings $113,541
--------


Segment EBITDA
margin 13.4% 35.2%
---- ----



Twelve months ended June 30, 2013
---------------------------------

National Media Local Unallocated
Corporate Total

Media
---

(In thousands)

Revenues $1,095,195 $376,145 $ - $1,471,340
---------- -------- --- --- ----------


Operating profit $137,985 $124,116 $(51,267) $210,834

Depreciation and
amortization 19,199 24,471 1,680 45,350
------ ------ ----- ------

EBITDA $157,184 $148,587 $(49,587) 256,184
-------- -------- --------

Less:

Depreciation and amortization (45,350)

Net interest expense (13,430)

Income taxes (73,754)
-------

Net earnings $123,650
--------


Segment EBITDA
margin 14.4% 39.5%
-------------- ---- ----



SOURCE Meredith Corporation

Meredith Corporation

CONTACT: Shareholder/Financial Analyst Contact: Mike Lovell, Director of Investor Relations, Mike.lovell@meredith.com; (515) 284-3622, or Media Contact: Art Slusark, Chief Communications Officer, art.slusark@meredith.com; (515) 284-3404

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


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