UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 29, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission file number 1-6383
MEDIA GENERAL, INC.
(Exact name of registrant as specified in its charter)
Virginia 54-0850433
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
333 E. Grace St., Richmond, VA 23219
(Address of principal executive offices) (Zip Code)
(804) 649-6000
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of October 31, 1996.
Class A Common shares: 25,937,166
Class B Common shares: 556,574
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(000's except shares)
September 29, December 31,
1996 1995
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 4,460 $ 3,367
Accounts receivable - net 75,219 76,532
Inventories 19,570 20,380
Other 25,652 25,812
---------- ----------
Total current assets 124,901 126,091
---------- ----------
Investments in unconsolidated affiliates 109,565 102,284
Other assets 42,495 42,718
Property, plant and equipment - net 474,918 498,132
Excess of cost of businesses acquired over
equity in net assets - net 276,671 247,518
---------- ----------
$1,028,550 $1,016,743
========== ==========
See accompanying notes.
1
<PAGE>
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(000's except shares)
<TABLE>
<CAPTION>
September 29, December 31,
1996 1995
--------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities:
Accounts payable $ 21,798 $ 25,324
Accrued expenses and other liabilities 82,276 72,764
Income taxes payable 3,651 5,065
--------- ---------
Total current liabilities 107,725 103,153
--------- ---------
Long-term debt 298,000 326,750
Deferred income taxes 100,241 102,884
Other liabilities and deferred credits 105,112 106,845
Stockholders' equity:
Preferred stock ($5 cumulative convertible), par value $5 per share:
Authorized 5,000,000 shares; none outstanding
Common stock, par value $5 per share:
Class A, authorized 75,000,000 shares; issued
25,930,359 and 25,905,237 shares 129,652 129,526
Class B, authorized 600,000 shares;
issued 556,574 shares 2,783 2,783
Additional paid-in capital 10,975 10,068
Unearned compensation (1,567) (2,573)
Retained earnings 275,629 237,307
--------- ---------
Total stockholders' equity 417,472 377,111
--------- ---------
$ 1,028,550 $ 1,016,743
=========== ===========
</TABLE>
See accompanying notes
2
<PAGE>
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(000's except for per share data)
<TABLE>
<CAPTION>
Third Quarter Ended Nine Months Ended
---------------------- ----------------------
Sept. 29, Sept. 24, Sept. 29, Sept. 24,
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C>
Revenues $ 188,003 $ 168,458 $ 565,435 $ 507,091
--------- --------- --------- ---------
Operating costs:
Production costs 102,032 97,815 306,154 283,479
Selling, distribution and administrative 46,601 44,604 137,346 131,569
Depreciation and amortization 16,171 14,564 49,168 44,356
--------- --------- --------- ---------
Total operating costs 164,804 156,983 492,668 459,404
--------- --------- --------- ---------
Operating income 23,199 11,475 72,767 47,687
--------- --------- --------- ---------
Other income (expense):
Interest expense (5,264) (3,030) (16,340) (10,213)
Investment income -unconsolidated affiliates:
Southeast Paper Manufacturing Co. 3,452 3,868 18,277 6,163
Denver Newspapers, Inc.:
Equity in net income 232 120 872 1,203
Preferred stock income 1,244 1,088 3,732 3,265
Other, net (note 4) 1,610 448 1,459 5,100
--------- --------- --------- ---------
Total other income 1,274 2,494 8,000 5,518
--------- --------- --------- ---------
Income before income taxes 24,473 13,969 80,767 53,205
--------- --------- --------- ---------
Income taxes 8,850 5,121 29,208 18,493
--------- --------- --------- ---------
Net income $ 15,623 $ 8,848 $ 51,559 $ 34,712
========= ========= ========= =========
Earnings per common share and equivalent $ 0.59 $ 0.33 $ 1.94 $ 1.31
========= ========= ========= =========
Dividends paid per common share $ 0.13 $ 0.12 $ 0.37 $ 0.36
========= ========= ========= =========
Weighted average common shares
and equivalents 26,564 26,529 26,577 26,478
See accompanying notes.
3
<PAGE>
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED STATEMENTS
OF CASH FLOWS
(Unaudited)
(000's)
</TABLE>
<TABLE>
<CAPTION>
Nine Months Ended
-----------------------------------
September 29, September 24,
1996 1995
-------- --------
Cash flows from operating activities:
<S> <C>
Net income $ 51,559 $ 34,712
Adjustments to reconcile net income:
Depreciation and amortization 49,168 44,356
Deferred income taxes (1,754) 3,038
Investment income --
unconsolidated affiliates (22,881) (10,631)
Distributions from unconsolidated
newsprint affiliate 15,600
Change in assets and liabilities (278) 2,677
-------- --------
Net cash provided by operating activities 91,414 74,152
-------- --------
Cash flows from investing activities:
Capital expenditures (18,786) (21,064)
Purchase of businesses (39,944) --
Other, net 6,766 5,196
-------- --------
Net cash used by investing activities (51,964) (15,868)
-------- --------
Cash flows from financing activities:
Net decrease in long-term debt (28,750) (43,750)
Dividends paid (9,793) (9,520)
Other, net 186 1,155
-------- --------
Net cash used by financing activities (38,357) (52,115)
-------- --------
Net increase in cash and cash equivalents 1,093 6,169
Cash and cash equivalents at beginning of year 3,367 11,663
-------- --------
Cash and cash equivalents at end of period $ 4,460 $ 17,832
======== ========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amount capitalized) $ 16,825 $ 10,958
Income taxes (net of refunds) 32,018 15,478
See accompanying notes.
4
<PAGE>
MEDIA GENERAL, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. The accompanying unaudited consolidated condensed financial
statements have been prepared in accordance with generally accepted accounting
principles for interim financial reporting, and with applicable quarterly
reporting regulations of the Securities and Exchange Commission. They do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements and, accordingly, should
be read in conjunction with the consolidated financial statements and related
footnotes included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1995.
In the opinion of management, all adjustments (consisting of normal
recurring adjustments) considered necessary for a fair presentation of interim
financial information have been included.
2. Inventories are principally raw materials.
3. At September 29, 1996, 1,085,142 shares of Class A common stock were
reserved for issuance upon exercise of unqualified stock options granted.
4. Other, net for the nine months ended September 24, 1995, includes a
$3.6 million gain ($2.5 million after-tax; $0.09 per share) from the sale of the
Company's interest in a Mexican newsprint operation.
5. Pursuant to the provisions of the Cable Television Consumer and
Competition Act of 1992 (1992 Cable Act), the rates charged to subscribers by
the Company's Fairfax Cable subsidiary are subject to regulation and review by
local franchising authorities and the Federal Communications Commission (FCC).
The FCC is currently reviewing certain of the rates charged to subscribers. The
Company believes that it has complied with all provisions of the 1992 Cable Act,
including its rate setting provisions. However, since the Company's rates for
regulated services are subject to review, the Company may be subject to a refund
liability if its rates are successfully challenged.
5
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
OVERVIEW
Media General, Inc., is an independent, publicly owned communications company,
situated primarily in the Southeast, with interests in daily and weekly
newspapers, broadcast television, cable television, recycled newsprint
production and diversified information services. The Company also has
investments in newspaper publishing and newsprint manufacturing operations, the
operating results of which are recognized under the equity method of accounting.
The Company's businesses are somewhat seasonal; the second and fourth quarters
are typically stronger than the first and third quarters.
The Company's fiscal year ends on the last Sunday in December.
</TABLE>
<TABLE>
Media General, Inc.
Business Segment Information
(Unaudited)
<CAPTION>
Quarters Ended Nine Months Ended
--------------------------- --------------------------
Sept. 29, Sept. 24, Sept. 29, Sept. 24,
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C>
Revenues:
Publishing $ 98,569 $ 83,006 $ 297,336 $ 257,177
Broadcast Television 22,012 15,410 59,292 49,937
Cable Television 36,935 33,104 108,287 98,417
Newsprint 30,487 36,938 100,520 101,560
--------- --------- --------- ---------
Total revenues $ 188,003 $ 168,458 $ 565,435 $ 507,091
========= ========= ========= =========
Operating income:
Publishing $ 10,992 $ 1,709 $ 29,124 $ 15,484
Broadcast Television 5,970 4,821 17,832 18,290
Cable Television 6,699 3,113 17,335 7,425
Newsprint (462) 1,832 8,476 6,488
--------- --------- --------- ---------
Total operating income $ 23,199 $ 11,475 $ 72,767 $ 47,687
========= ========= ========= =========
Note: Effective in 1996, the Company's newspaper and auxiliary operations,
which were previously reported as separate segments, are now combined
and reported as the publishing segment.
</TABLE>
<PAGE>
The following comparisons of operating results focus much of their attention on
the comparative performance of the Company, excluding the results of Virginia
Newspapers, Inc. (VNI), acquired in October 1995, Professional Communications
Services (PCS), acquired in May 1996, and the Danville Register & Bee
(Danville), acquired in August 1996.
REVENUES
Consolidated revenues increased $19.5 million (11.6%) and $58.3 million (11.5%)
in the third quarter and first nine months of 1996, respectively, compared to
the same periods of 1995. Excluding VNI, PCS and Danville, consolidated revenues
increased $3.8 million (2.3%) and $21.1 million (4.2%) in the current quarter
and year-to-date periods ended September 29, 1996, from the comparable 1995
periods.
Publishing revenues for the quarter and nine-month periods ended September 29,
1996, rose 18.7% and 15.6% (4.7% and 3.3% excluding VNI and Danville),
respectively, from the comparable 1995 periods. The revenue increases exclusive
of VNI and Danville were primarily attributable to the Company's metropolitan
daily newspaper group, where advertising revenues rose as a result of increased
linage (up 4.7% and 1.6%) and advertising rates (up an average of 1.1% and 1.2%)
in the quarter and first nine months ended September 29, 1996. The third quarter
advertising revenue increase was principally attributable to a strong
performance in classified (largely in employment), as well as increases in
general and retail. In the year to date, a decline in retail was more than
offset by increases in classified and, to a lesser degree, in general
advertising revenues. Also, circulation revenues rose 3.9% and 5.4% in the third
quarter and nine months of 1996 from the comparable periods of 1995. The rise
was principally the result of increases in circulation rates, approximating 5.9%
and 7.7% in the third quarter and year to date, which more than offset
circulation volume declines of 1.9% and 2.1% in the third quarter and first nine
months of 1996.
Broadcast Television revenues increased $6.6 million (42.8%) and $9.4 million
(18.7%)(16.5% and 7.3% excluding PCS) in the third quarter and first nine months
of 1996, from the comparable periods of 1995. The revenue growth in both the
quarter and year-to-date, excluding PCS, was principally the result of increases
in national and local spot sales (led by the automotive category) and in
political advertising at the Company's flagship station, WFLA-TV in Tampa, which
more than offset decreased revenues at the Company's WJKS-TV station in
Jacksonville, largely attributable to advertiser reluctance in the face of that
station's impending loss of its ABC network affiliation.
Cable Television revenues rose $3.8 million (11.6%) and $9.9 million (10%) in
the third quarter and first nine months of 1996 from the comparable 1995
periods. The increases were principally attributable to the Company's Fairfax
County, Virginia, cable system (Fairfax Cable), where revenues grew 12.5% and
11.4% in the quarterly and year-to-date periods ended September 29, 1996, from
the prior year's comparable periods. The revenue growth was largely the result
of a 3% increase in the number of Fairfax Cable subscribers from a year ago (to
225,288 at September 29, 1996), together with average rate increases of 8.8% and
4.8% in the third quarter and year-to-date periods, respectively, on basic
subscriber service and higher rates in the current quarter and first nine months
of 1996 on expanded cable programming services of approximately 11.6% and 8.3%
above the comparable prior year periods.
6
<PAGE>
Newsprint segment revenues declined $6.5 million (17.5%) and $1 million (1%) in
the third quarter and first nine months of 1996 compared to the equivalent
year-ago periods. The revenue decline was attributable to the Company's Garden
State Paper (Garden State) newsprint mill. The third quarter revenue decline
resulted from a 7.8% decrease in tons sold, as well as a 10.7% decrease in the
average realized selling price. In the year to date, despite a 12.4% increase in
the average realized selling price, revenues declined as a result of a 10.3%
decrease in tons sold as well as a reduction in outside sales of waste paper
(principally corrugated). Garden State's revenue results reflect the declining
selling prices and weak demand experienced by the newsprint industry since the
second quarter of 1996. Some further erosion in average realized newsprint
selling prices is expected in the fourth quarter of 1996.
OPERATING COSTS
Production costs increased $4.2 million (4.3%) and $22.7 million (8%) in the
third quarter and first nine months of 1996 compared to the equivalent 1995
periods. Excluding VNI, PCS and Danville, third quarter production costs
decreased $3.1 million (3.2%), while year-to-date costs rose by $6.8 million
(2.4%) compared to the equivalent year-ago periods. The $3.1 million third
quarter decrease was due primarily to a $5.7 million (48%) decrease in the cost
of waste news consumed by the Company's Garden State Paper newsprint mill, the
result of the lower average cost per ton of recovered newspapers (ONP). This
decrease more than offset the effects of a $2.2 million (29%) increase in
programming costs at the Company's broadcast and cable television operations due
to the addition of new programs in the fall of 1995 at WFLA-TV and to higher
programming rates and the increased subscriber base at Fairfax Cable, along with
an $.8 million (14%) increase in energy costs, primarily attributable to
increased fuel prices and consumption at the Company's newsprint operations. The
cost of newsprint consumed by the Company's metropolitan newspapers remained
relatively flat compared with the third quarter of 1995. The $6.8 million
year-to-date increase in production costs reflects the effects of: a $7.8
million (17%) increase in the cost of newsprint consumed by the Company's
metropolitan newspaper group; a $6.4 million (27%) increase in broadcast and
cable television programming costs; and a $3.4 million (19%) rise in energy
costs at the Company's newsprint operations due to increased fuel prices and
consumption. Together, these year-to-date increases more than offset the effects
of a $7.3 million (28%) decline (due to price) in the cost of ONP consumed in
newsprint manufacturing, and a $1.3 million (1.4%) decrease in employee
compensation and benefit costs, the result of ongoing reengineering programs.
Selling, distribution and administrative costs increased $2 million (4.5%) and
$5.8 million (4.4%) in the third quarter and first nine months of 1996 from the
same periods of 1995. Excluding VNI, PCS and Danville, selling, distribution and
administrative costs decreased $.9 million (2.1%) and $1.1 million (.8%) in the
third quarter and first nine months of 1996 from the comparable year-ago
periods, reflecting the decline in employee compensation and benefits expense of
$.8 million (3.3%) and $1.6 million (2.2%) from those year-ago periods. These
declines more than offset increases in other selling, distribution and
administrative expenses.
Depreciation and amortization expense rose $1.6 million (11%) and $4.8 million
(10.9%) in the quarter and year-to-date periods ended September 29, 1996, from
the comparable year-ago periods. The rise was attributable to the depreciation
and amortization of increased goodwill and identified intangibles relating to
the VNI, PCS and Danville acquisitions.
7
<PAGE>
OTHER INCOME (EXPENSE)
Interest expense rose $2.2 million and $6.1 million in the quarter and
year-to-date periods ended September 29, 1996, from the comparable prior-year
periods. The rise was due primarily to the increase in average debt outstanding
which, as a result of the VNI and Danville acquisitions, rose $157 million and
$143 million in the quarter and nine months ended September 29, 1996. The
increase in average debt outstanding more than offset the effect of a reduction
in the Company's average borrowing rate to 7% in the first nine months of 1996
from 8.3% in the comparable year-ago period.
The Company's share of the profits of its Southeast Paper (SEPCO) newsprint
affiliate decreased to $3.5 million in the third quarter of 1996 from $3.9
million in the same period of 1995. However, 1996 year-to-date profits increased
to $18.3 million from $6.2 million in the first nine months of 1995. The third
quarter decrease was directly attributable to lower newsprint average selling
prices which dropped 9.8% compared to the same period in 1995, the effect of
which more than offset decreased ONP costs. SEPCO's year-to-date increase was
aided by improved year-over-year average newsprint selling prices which rose
12.7%, as well as by lower ONP costs. Similar to the recent experience at the
Company's wholly owned Garden State Paper mill, SEPCO's average realized
newsprint selling price peaked in the first quarter of 1996, and has since
declined as customers continue to implement conservation measures and reduce
inventory levels.
Equity income earned from the Company's Denver Newspapers, Inc. (DNI), affiliate
increased $.1 million in the third quarter but declined $.3 million in the first
nine months of 1996, compared to the equivalent year-ago periods. DNI's improved
third quarter operating results were aided by strong advertising revenue growth
which more than offset the effect of increased newsprint costs. Conversely, in
the year to date, DNI's operating income declined slightly from the comparable
1995 period as a result of increased costs (principally newsprint) that more
than offset the strong growth in revenues.
Other, net, increased $1.2 million in the third quarter of 1996 from the
year-ago period, reflecting increased gains on the sale of fixed assets which
more than offset the absence in the current quarter of interest earned on
short-term investments held by the Company prior to the October 1995 VNI
acquisition. The $3.6 million decline in the current year to date is primarily
the result of the absence of 1995's $3.6 million pretax gain on the sale of the
Company's interest in a Mexican newsprint affiliate which, together with a
decline of interest earned on the previously mentioned investments, more than
offset the increased gains on the sale of fixed assets during the period.
NET INCOME
Net income for the third quarter and first nine months of 1996 rose to $15.6
million and $51.6 million, respectively, from $8.8 million and $34.7 million in
the comparable periods of 1995. Excluding the impact in the first half of 1995
of the $2.5 million ($0.09 per share) after-tax gain from the sale of the
previously mentioned interest in a Mexican newsprint affiliate, net income in
the third quarter and first nine months of 1996 increased 77% and 60% above the
comparable 1995 periods.
8
<PAGE>
The following discussion focuses on the pretax operating income of each of the
Company's principal business segments, and on income taxes.
Publishing segment operating income increased $9.3 million and $13.6 million in
the third quarter and first nine months of 1996, respectively, from the
comparable 1995 periods. The third quarter increase was largely attributable to
the addition of VNI (acquired in October 1995) and to improved results at the
Company's Tampa, Richmond and Winston-Salem newspapers. The $13.6 million
nine-month increase was mainly attributable to the addition of VNI, as well as
improved Winston-Salem and Tampa results.
While Broadcast Television segment operating income increased $1.1 million (24%)
in the third quarter of 1996 as compared to the year-earlier period, the
year-to-date period resulted in a drop of $.5 million (2.5%) as compared to the
nine months ended September 24, 1995. The third quarter increase was
attributable to strong revenue growth at the Company's WFLA-TV station in Tampa,
which more than offset increased programming costs (up approximately 70%). In
the year-to-date, WFLA's higher revenues were hindered by increased programming
costs (up approximately 88% from the year-ago period). The decline in operating
income in the first nine months of 1996 resulted from poor operating results at
the Company's Jacksonville and Charleston television stations, which more than
offset an increase in operating income at WFLA.
Cable Television segment profits rose $3.6 million and $9.9 million in the third
quarter and first nine months of 1996 from the comparable year-earlier periods.
The increases reflect revenue growth at Fairfax Cable, up 12.5% and 11.4% in the
third quarter and first nine months of 1996 as a result of both rate and
subscriber count increases, and reduced compensation and employee benefit costs
(attributable to a reengineering program).
While newsprint segment operating income decreased $2.3 million in the third
quarter of 1996 as compared to the year-earlier period, the year-to-date period
resulted in a $2 million increase from the comparable 1995 period. The $2.3
million third quarter decrease resulted from lower average newsprint selling
prices realized and a reduction in tons sold (down 10.7% and 7.8%, respectively,
from prior year levels), which more than offset a decrease in the cost of waste
news consumed. The 1996 year-to-date increase reflects the significant decline
in the cost of ONP consumed (down 28% from the prior-year period), as well as a
12.4% increase in the average realized newsprint selling price. Together, these
more than offset the effects of a 10.3% drop in tons sold from the equivalent
year-earlier period.
Income taxes rose $3.7 million and $10.7 million in the third quarter and first
nine months of 1996 from the comparable 1995 periods. Excluding income taxes
related to the gain on the Company's first quarter 1995 sale of its interest in
a Mexican newsprint operation, income tax expense rose $11.8 million (68%) from
the comparable 1995 year-to-date period. The Company's effective tax rate
(excluding taxes on the gain) was approximately 36.2% in both the third quarter
and first nine months of 1996, compared to approximately 36.7% and 34.3% in the
third quarter and first nine months of the year-earlier periods.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Funds generated by operating activities during the first nine months of 1996
totaled $91.4 million, up $17.3 million from the comparable period of 1995. The
increase was due principally to $15.6 million of distributions from SEPCO, the
Company's newsprint affiliate, and to a reduction in funds applied toward
working capital needs.
During the first nine months of 1996, the primary use of cash was $40 million
for acquisitions, $18.8 million for capital expenditures and $9.8 million for
the payment of dividends to stockholders. In addition, $28.8 million of funds
generated in excess of current needs during the first nine months of 1996 were
used to reduce debt.
Total long-term debt at September 29, 1996, was $298 million, down $28.8 million
from December 31, 1995, but up $169.3 million from the year-ago level of $128.8
million at September 24, 1995 (the result of the VNI and Danville acquisitions).
On July 31, 1996, the Company refinanced $43.75 million of 9.27% notes
outstanding, together with accumulated interest, with borrowings under its
revolving credit facility. The Company currently is in the process of replacing
its existing revolving credit facility with a seven-year $1.2 billion credit
facility which will be used to finance the previously announced $710 million
acquisition of Park Acquisitions, Inc., parent of Park Communications, Inc., and
to refinance the current revolving credit facility. Also, the Company has an
arrangement with an insurance company which makes available to the Company, on
an uncommitted basis, the opportunity to borrow up to $150 million under senior
notes at prevailing interest rates. The Company anticipates that internally
generated funds provided by operations during 1996, together with funds
available under the new credit facility, will be more than adequate to finance
acquisitions, projected capital expenditures, dividends to stockholders, and
working capital needs.
ACQUISITIONS
The announced $710 million acquisition of Park Acquisitions, Inc., parent of
Park Communications, Inc., is proceeding as scheduled. The acquisition is
anticipated to close in the fourth quarter, subject to regulatory approvals.
This acquisition will enhance the Company's current television station and
newspaper holdings by adding ten network affiliated broadcast television
stations, 28 daily community newspapers and 82 weekly newspapers.
This acquisition, combined with those over the last year, represents a major
step forward in the Company's mission to be a leading provider of news,
information and entertainment in the Southeast.
11
<PAGE>
OUTLOOK
Prospects for the balance of 1996 remain positive for Media General. Improved
year-over-year profitability in the Company's publishing operations should
continue, as should that of its cable television operations. The Company's
broadcast television results during the latter part of the year should remain
strong at WFLA in Tampa and be enhanced by WCBD's affiliation switch from ABC to
NBC; however, the loss of WJKS's ABC network affiliation will not have a
positive short-term effect. The Company's newsprint operations are likely to
experience further declines in newsprint selling prices and operating results
during the remainder of the year as customers continue to implement conservation
measures and reduce inventories.
12
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K
None
13
<PAGE>
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 thereunto duly authorized.
MEDIA GENERAL, INC.
DATE: November 7, 1996 /s/ J. Stewart Bryan III
--------------------------------------
J. Stewart Bryan III, Chairman, President
and Chief Executive Officer
DATE: November 7, 1996 /s/ Marshall N. Morton
--------------------------------------
Marshall N. Morton,
Senior Vice-President and Chief Financial
Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MEDIA
GENERAL, INC.'S CONSOLIDATED CONDENSED BALANCE SHEETS AND CONSOLIDATED CONDENSED
STATEMENTS OF OPERATIONS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-END> SEP-29-1996
<CASH> 4,460
<SECURITIES> 0
<RECEIVABLES> 75,219
<ALLOWANCES> 0
<INVENTORY> 19,570
<CURRENT-ASSETS> 124,901
<PP&E> 474,918
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,028,550
<CURRENT-LIABILITIES> 107,725
<BONDS> 298,000
0
0
<COMMON> 132,435
<OTHER-SE> 285,037
<TOTAL-LIABILITY-AND-EQUITY> 1,028,550
<SALES> 565,435
<TOTAL-REVENUES> 565,435
<CGS> 306,154
<TOTAL-COSTS> 306,154
<OTHER-EXPENSES> 49,168
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16,340
<INCOME-PRETAX> 80,767
<INCOME-TAX> 29,208
<INCOME-CONTINUING> 51,559
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<CHANGES> 0
<NET-INCOME> 51,559
<EPS-PRIMARY> 1.94
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</TABLE>
