UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC. 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 March 29, 1998
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)
Commonwealth of 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 May 3, 1998.
Class A Common shares: 26,169,518
Class B Common shares: 556,574
<PAGE>
<TABLE>
MEDIA GENERAL, INC.
TABLE OF CONTENTS
FORM 10-Q REPORT
MARCH 29, 1998
<CAPTION>
<S> <C>
Page
----
Part I. Financial Information
Item 1. Financial Statements
Consolidated Condensed Balance Sheets - March 29, 1998,
and December 28, 1997 1
Consolidated Condensed Statements of Operations - Three months
ended March 29, 1998, and March 30, 1997 3
Consolidated Condensed Statements of Cash Flows - Three
months ended March 29, 1998, and March 30, 1997 4
Notes to Consolidated Condensed Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 6
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 12
(a) Exhibits
(b) Reports on Form 8-K
Signatures 13
</TABLE>
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(000's except shares)
<CAPTION>
March 29, December 28,
1998 1997
----------------- ------------------
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 5,694 $ 3,504
Accounts receivable - net 97,761 109,287
Inventories 15,949 17,594
Other 26,548 32,268
----------------- ------------------
Total current assets 145,952 162,653
----------------- ------------------
Investments in unconsolidated affiliates 130,427 132,209
Other assets 32,845 28,519
Property, plant and equipment - net 502,112 504,906
Excess of cost over fair value of net identifiable assets
of acquired businesses - net 665,129 572,458
FCC licenses and other intangibles - net 409,383 413,456
----------------- ------------------
$ 1,885,848 $ 1,814,201
================= ==================
See accompanying notes.
1
<PAGE>
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(000's except shares)
<CAPTION>
March 29, December 28,
1998 1997
----------------- ------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 27,721 $ 31,599
Accrued expenses and other liabilities 106,629 98,190
Income taxes payable 2,471 1,422
----------------- ------------------
Total current liabilities 136,821 131,211
----------------- ------------------
Long-term debt 957,515 900,140
Deferred income taxes 248,175 249,649
Other liabilities and deferred credits 119,695 114,975
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
26,150,862 and 26,172,424 shares 130,754 130,862
Class B, authorized 600,000 shares; issued
556,574 shares 2,783 2,783
Additional paid-in capital 16,725 16,733
Unearned compensation (1,838) (2,100)
Retained earnings 275,218 269,948
----------------- ------------------
Total stockholders' equity 423,642 418,226
----------------- ------------------
$ 1,885,848 $ 1,814,201
================= ==================
See accompanying notes.
2
<PAGE>
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(000's except for per share data)
<CAPTION>
Three Months Ended
--------------------------------------------
March 29, March 30,
1998 1997
----------------- ------------------
Revenues $ 234,681 $ 216,145
----------------- ------------------
Operating costs:
Production costs 117,489 111,995
Selling, distribution and administrative 58,187 56,027
Depreciation and amortization 26,283 23,321
----------------- ------------------
Total operating costs 201,959 191,343
----------------- ------------------
Operating income 32,722 24,802
----------------- ------------------
Other income (expense):
Interest expense (17,399) (15,614)
Investment income - unconsolidated affiliates:
Southeast Paper Manufacturing Co. 3,768 1,138
Denver Newspapers, Inc.:
Equity in net income 616 1,564
Preferred stock income 1,534 1,502
Other, net (517) 681
----------------- ------------------
Total other income expense (11,998) (10,729)
----------------- ------------------
Income before income taxes and extraordinary item 20,724 14,073
Income taxes 7,979 5,840
Income before extraordinary item 12,745 8,233
Extraordinary item from early redemption of debt
(net of income tax benefit of $38,613) --- (63,000)
----------------- ------------------
Net income (loss) $ 12,745 $ (54,767)
================= ==================
Earnings (loss) per common share and equivalent:
Income before extraordinary item $ 0.48 $ 0.31
Extraordinary item --- (2.39)
----------------- ------------------
Net income (loss) $ 0.48 $ (2.08)
================= ==================
Earnings (loss) per common share and equivalent -- assuming dilution:
Income before extraordinary item $ 0.47 $ 0.31
Extraordinary item --- (2.37)
----------------- ------------------
Net income (loss) 0.47 (2.06)
================= ==================
Dividends paid per common share $ 0.14 $ 0.13
================= ==================
See accompanying notes.
3
<PAGE>
MEDIA GENERAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(000's)
<CAPTION>
Three Months Ended
---------------------------------------------
March 29, March 30,
1998 1997
------------------ -------------------
Operating activities:
Net income (loss) $ 12,745 $ (54,767)
Adjustments to reconcile net income (loss):
Extraordinary item --- 63,000
Depreciation and amortization 26,283 23,321
Deferred income taxes (1,668) (1,188)
Investment income -- unconsolidated affiliates,
net of distributions 1,782 (1,504)
Change in assets and liabilities:
Accounts receivable and inventories 15,217 7,861
Other (4,832) (9,376)
----------------- ------------------
Net cash provided by operating activities 49,527 27,347
----------------- ------------------
Investing activities:
Capital expenditures (10,619) (9,994)
Purchase of businesses (1997-net of $476 million
of debt assumed) (92,613) (273,247)
Sale of businesses (1997-net of $90,944 placed in trust) --- 48,620
Other, net 1,153 120
----------------- ------------------
Net cash used by investing activities (102,079) (234,501)
----------------- ------------------
Financing activities:
Increase in debt 184,000 963,000
Payment of debt (127,071) (667,000)
Premiums and costs related to early redemption
of Park debt --- (84,703)
Dividends paid (3,736) (3,460)
Other, net 1,549 411
----------------- ------------------
Net cash provided by financing activities 54,742 208,248
----------------- ------------------
Net increase in cash and cash equivalents 2,190 1,094
Cash and cash equivalents at beginning of year 3,504 4,471
----------------- ------------------
Cash and cash equivalents at end of period $ 5,694 $ 5,565
================= ==================
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amount capitalized) $ 16,344 $ 7,532
Income taxes $ 6,096 $ 5,392
See accompanying notes.
</TABLE>
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 28, 1997.
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. Certain items in 1997 have been
reclassified to conform with the current year's presentation. The
reclassifications have no effect on net income as previously reported. The
results of operations for interim periods are not necessarily indicative of the
results that may be expected for the full fiscal year.
2. On January 2, 1998, Media General, Inc. acquired, for approximately
$93 million, the assets of the Bristol Herald Courier, a daily newspaper in
southwestern Virginia, and two affiliated weekly newspapers. The transaction was
accounted for as a purchase and Bristol's results of operations have been
included in the Company's results since the date of acquisition. The purchase
price has been allocated to the assets acquired based on a preliminary appraisal
of estimated fair values. Such estimated values may change as the appraisal is
finalized and more facts become known.
In late January, the Company agreed to purchase the Hickory Daily
Record located in northwestern North Carolina and in late February announced the
sale of its Kentucky newspaper properties acquired with the 1997 purchase of
Park. These transactions are expected to close later in 1998.
3. Inventories are principally raw materials.
4. The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
Quarter Ended March 29, 1998 Quarter Ended March 30, 1997
------------------------------------- ---------------------------------------
Income Shares Per Share Income Shares Per Share
(In thousands, except per share amounts) (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
------------------------------------- ---------------------------------------
<S> <C>
Basic EPS
Income available to common stock-
holders before extraordinary item $12,745 26,503 $ 0.48 $ 8,233 26,319 $ 0.31
====== ======
Effect of dilutive securities
Stock options 262 139
Restricted stock and other (5) 79 (11) 149
---------------------- ---------------------
Diluted EPS
Income available to common stock-
holders + assumed conversions $12,740 26,844 $ 0.47 $ 8,222 26,607 $ 0.31
===================================== =====================================
</TABLE>
5
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
OVERVIEW
Media General is an independent, publicly owned communications company situated
primarily in the Southeast with interests in newspapers, broadcast and cable
television, recycled newsprint production, and diversified information services.
The Company's fiscal year ends on the last Sunday in December.
<TABLE>
Media General, Inc.
Business Segment Information
(Unaudited)
(000's)
<CAPTION>
<S> <C>
Three Months Ended
--------------------------------------------
March 29, March 30,
1998 1997
----------------- ------------------
Revenues:
Publishing $ 125,792 $ 115,757
Broadcast Television 37,527 35,939
Cable Television 38,647 38,102
Newsprint 32,715 26,347
----------------- ------------------
Total revenues $ 234,681 $ 216,145
================= ==================
Operating income:
Publishing $ 22,288 $ 18,751
Broadcast Television 822 3,147
Cable Television 6,729 7,235
Newsprint 2,883 (4,331)
----------------- ------------------
Total operating income $ 32,722 $ 24,802
================= ==================
Operating cash flow:
Publishing $ 32,331 $ 27,910
Broadcast Television 8,512 9,154
Cable Television 13,531 13,753
Newsprint 4,631 (2,694)
----------------- ------------------
Total operating cash flow $ 59,005 $ 48,123
================= ==================
</TABLE>
ACQUISITIONS AND DISPOSITIONS
In January 1998 the Company acquired the Bristol Herald Courier, a daily
newspaper in southwestern Virginia, and two affiliated weekly newspapers.
Additionally, the Company agreed to purchase The Hickory Daily Record located in
northwestern North Carolina and announced the sale of its Kentucky newspaper
properties acquired in 1997 with the purchase of Park. See Note 2 of this Form
10-Q for further details about these transactions.
6
<PAGE>
<TABLE>
CONSOLIDATED OPERATING RESULTS
<CAPTION>
<S> <C>
(In thousands, except per share data)
First Quarter Ended
--------------------------------------------------------------
March 29, March 30,
1998 1997 Change
-------------- ------------- -------------
Revenues $ 234,681 $ 216,145 9%
Net Income 12,745 (54,767) * ---
Earnings Per Share 0.48 (2.08) * ---
Earnings Per Share - Assuming Dilution 0.47 (2.06) * ---
* Includes extraordinary charge from early redemption of debt ($63 million net
of a tax benefit of $38.6 million; $2.39 per share or $2.37 per share-assuming
dilution)
SEGMENT OPERATING RESULTS
The following discussion of segment operating results is primarily focused on
the year-over-year comparative performance of the Company. Each segment's
operating results include operating cash flow information in addition to
revenues, operating expenses and operating income. Operating cash flow amounts
presented with business segment information represent operating income plus
depreciation and amortization of intangible assets. Such cash flow amounts vary
from net cash provided by operating activities, as presented in the Consolidated
Statements of Cash Flows, because cash payments for interest and taxes are not
reflected, nor are the cash flow effects of non-operating items or changes in
certain operations-related balance sheet accounts. The Company believes the
presentation of operating cash flow amounts is important for several reasons.
First, fluctuations in depreciation and amortization from year to year are not
necessarily indicative of the underlying performance of a company. Second, the
year-over-year change in operating cash flow can be a useful measure of
performance and present a meaningful indicator of results that may occur in
future periods. Finally, acquisition values of communications and media
businesses are often based on multiples of operating cash flow.
PUBLISHING
(In thousands)
<CAPTION>
First Quarter Ended
--------------------------------------------------------------
March 29, March 30,
1998 1997 Change
-------------- ------------- -------------
Revenues $ 125,792 $ 115,757 9%
Operating Expense 103,504 97,006 7
Operating Income 22,288 18,751 19
Depreciation & Amortization 10,043 9,159 10
Operating Cash Flow 32,331 27,910 16
</TABLE>
Publishing revenues increased $10 million (9%) in the first quarter of 1998 from
the comparable 1997 period. At the Company's metropolitan newspaper group, which
includes its three largest daily newspapers, revenues rose $4.3 million due to
increases in average advertising rates and in linage (2.7% and 3.7%,
respectively). These first quarter advertising increases were principally the
result of
7
<PAGE>
strong performances in classified advertising (led by the employment and
automotive categories), along with solid contributions from general and retail
advertising. The Company's recently acquired Bristol Herald Courier (Bristol)
also generated $3.6 million in revenues. The remaining $2.1 million increase in
Publishing revenues came from the Company's other daily and weekly community
newspapers, primarily due to strong classified advertising revenues.
Publishing operating expense increased $6.5 million in the first quarter of
1998. This increase was attributable to several factors. First, newsprint
expense increased $2.5 million from the comparable quarter a year ago, up due to
increased cost per ton. Second, the addition of Bristol in early January added
$2 million of expense before amortization. Additionally, employee compensation
and benefit costs at the Company's existing newspapers increased $.7 million
over the prior-year equivalent period.
Operating income for Publishing rose $3.5 million (19%) in the first quarter of
1998 from the prior-year period. The majority of this increase was due to the
combination of robust advertising revenues and the inclusion of Bristol,
partially offset by increased newsprint expense.
<TABLE>
BROADCAST TELEVISION
(In thousands)
<CAPTION>
<S> <C>
First Quarter Ended
--------------------------------------------------------------
March 29, March 30,
1998 1997 Change
-------------- ------------- ------------
Revenues $ 37,527 $ 35,939 4%
Operating Expense 36,705 32,792 12
Operating Income 822 3,147 (74)
Depreciation & Amortization 7,690 6,007 28
Operating Cash Flow 8,512 9,154 (7)
</TABLE>
Broadcast revenues increased $1.6 million in the first quarter of 1998. This
increase was due to solid local advertising revenues, the most significant
portion was attributable to the 1998 Winter Olympics at the Company's six CBS
affiliates. Despite strong Olympic results at these CBS affiliates, national
revenues rose only slightly due to decreased national buys at the Company's
largest station, WFLA-TV (NBC) in Tampa, Florida.
The operating expenses in the Broadcast Segment increased $3.9 million in the
first three months of 1998. Programming costs and employee compensation and
benefits expense increased $.9 million and $1.5 million, respectively. The
higher expense levels in 1998's first quarter were expected as steps were
initiated in 1997 to invigorate the performance at the recently acquired
stations . These steps included upgrading programming and equipment and fully
staffing and competitively compensating personnel in conjunction with the
repositioning and relaunching of these stations. In addition, depreciation and
amortization expense rose $1.7 million.
Broadcast operating income decreased $2.3 million in the first quarter of 1998.
The drop was attributable to increased expenditures at the recently acquired
stations to enhance their performance and to position them to compete more
effectively in their markets, as well as to increased amortization.
8
<PAGE>
<TABLE>
CABLE TELEVISION
(In thousands)
<CAPTION>
<S> <C>
First Quarter Ended
--------------------------------------------------------------
March 29, March 30,
1998 1997 Change
-------------- ------------- ------------
Revenues $ 38,647 $ 38,102 1%
Operating Expense 31,918 30,867 3
Operating Income 6,729 7,235 (7)
Depreciation & Amortization 6,802 6,518 4
Operating Cash Flow 13,531 13,753 (2)
Revenues at the Company's Cable Television Segment rose $.5 million in the first
quarter of 1998. The increase was primarily attributable to the Company's
Fairfax County, Virginia, cable system (Fairfax Cable), as a result of a 3.3%
increase in the number of subscribers (to 236,600 at March 29, 1998), together
with a combined average increase of 2.4% in basic and expanded subscriber rates.
Operating expenses in the Cable Segment in the first quarter of 1998 increased
$1 million over last year's same period. This increase was primarily
attributable to a $.9 million rise in programming costs, due to higher
programming rates and the expansion of the subscriber base at Fairfax Cable.
Cable operating income decreased $.5 million in the first quarter of 1998 from
the year-earlier period. The decrease reflects increased programming costs at
Fairfax Cable due to higher contractual rates, partially offset by increased
revenue at that location due to its expanding subscriber base.
NEWSPRINT
(In thousands)
<CAPTION>
First Quarter Ended
--------------------------------------------------------------
March 29, March 30,
1998 1997 Change
-------------- ------------- ------------
Revenues $ 32,715 $ 26,347 24%
Operating Expense 29,832 30,678 (3)
Operating Income (Loss) 2,883 (4,331) ---
Depreciation & Amortization 1,748 1,637 7
Operating Cash Flow 4,631 (2,694) ---
</TABLE>
Newsprint Segment revenues increased $6.4 million (24%) in the first quarter of
1998, reflecting the results of the Company's Garden State Paper (Garden State)
newsprint mill, located in Garfield, New Jersey. The increase resulted from a
14.5% increase in the average realized selling price per ton, combined with a
9.5% increase in tons sold. Newsprint selling prices have gradually increased
over the past year, with average realized newsprint selling prices rising from
$456 per ton in the first quarter of 1997 to $522 per ton in the comparable
period of 1998.
Newsprint Segment operating expense dropped $.8 million in 1998 from the
comparable 1997 amount. This decline was principally the result of a $1 million
decrease in energy costs due to the extremely mild winter and of a $.7 million
reduction in chemical expense due to deinking process improvements. These
decreases were partially offset by a rise in other expenses due to the increased
production volume.
9
<PAGE>
Newsprint operating income rose $7.2 million, from a $4.3 million loss in 1997
to income of $2.9 million in 1998. The increase resulted primarily from a $66
increase in average realized selling price per ton as compared to the year-ago
quarter. In addition, improved production efficiency at Garden State and a mild
1998 winter also contributed to the overall operating profit improvement.
UNCONSOLIDATED AFFILIATES
The Company's investment income from unconsolidated affiliates increased $1.7
million in the first quarter of 1998 from the comparable period of 1997. The
increase was attributable to the Company's share of the operating results of its
Southeast Paper Manufacturing Company (SEPCO) newsprint affiliate, which
increased $2.6 million from the previous year. SEPCO's revenues increased 13% in
the first quarter of 1998 as a result of a 15% rise in the average realized
selling price, to $526 per ton from $457 per ton in the comparable prior-year
period, which more than offset the effect of a 2.3% decrease in tons sold.
Income earned from the Company's Denver Newspapers, Inc. (DNI), affiliate
decreased $.9 million in the first quarter of 1998 from the comparable period of
1997. The decrease was attributable to increased operating expenses, primarily
newsprint and advertising costs, which were only partially offset by strong
advertising revenue growth.
INTEREST EXPENSE
Interest expense of $17.4 million represented a $1.8 million increase in the
first quarter of 1998 over the comparable year-earlier period. The increase was
due to a $115.7 million rise in average debt outstanding, primarily the result
of the recent Bristol acquisition. The Company's average effective borrowing
rate of 7.2% in the first quarter of 1998 remained essentially flat with last
year's equivalent period rate.
NON-OPERATING ITEMS
Other, net, declined from income of $.7 million in the first quarter of 1997 to
an expense of $.5 million in the comparable period of 1998. The majority of this
decline was attributable to a reduction in interest income.
INCOME TAXES
The Company's effective tax rate was 38.5% in the first quarter of 1998, down
from 41.5% (excluding the extraordinary item) in the previous year's comparable
period principally as a result of a higher level of deferred tax credits on
intangible assets. Income tax expense rose $2.1 million from the first quarter
of 1997 on a pretax earnings increase of $6.7 million.
NET INCOME (LOSS)
Net income for 1998's first quarter was $12.7 million ($0.48 per share, or $0.47
per share - assuming dilution) compared to a $54.8 million loss in the first
quarter of 1997, the result of a $63 million extraordinary charge, net of a tax
benefit of $38.6 million, ($2.39 per share, or $2.37 per share - assuming
dilution) related to the early redemption of Park's high coupon debt in February
1997. Excluding this extraordinary item, net income rose $4.5 million, 55% above
the year-ago period. The Newsprint and Publishing Segments had particularly
strong performances: Newsprint produced a $7.2 million positive turnaround in
operating profit and Publishing posted a 19% increase in operating
10
<PAGE>
profit. This improved performance more than offset declines in Broadcast and
Cable Television operating income and a moderate increase in interest expense
related to the recent Bristol acquisition.
LIQUIDITY AND CAPITAL RESOURCES
Funds generated by operating activities during the first quarter of 1998 totaled
$49.5 million, up $22.2 million from the comparable period of 1997. The increase
was due to a combination of factors, including: an additional $7.4 million of
funds generated in the current year as a result of accounts receivable
collections and inventory reductions, a $5 million distribution from SEPCO, a
$4.5 million increase in net income (excluding the extraordinary item), and a $3
million rise in non-cash depreciation and amortization. Funds generated from
operating activities, coupled with funds provided by financing activities,
supplied the $92.6 million used for the acquisition of Bristol, the $10.6
million for capital expenditures and the $3.7 million used for the payment of
dividends to stockholders.
Total debt outstanding at March 29, 1998, was $957.5 million, down $90.8 million
from the year-ago level of $1,048.3 million, but up from the December 28, 1997
level of $900.1 million. This $57.4 million increase from year end was directly
attributable to the $90 million in borrowings for the Bristol acquisition in
early 1998, a portion of which has already been repaid with funds generated from
operations. The Company's unused credit lines available from its committed
revolving credit facility were $320 million at March 29, 1998.
The Company has interest rate swaps totaling $800 million with maturities
ranging from less than one year to six years. These swap agreements effectively
converted variable rate debt to fixed rate debt at interest rates approximating
6.8% at March 29, 1998.
The Company anticipates that internally generated funds provided by operations
during 1998, together with existing credit facilities, will be more than
adequate to finance other possible acquisitions, projected capital expenditures,
dividends to stockholders, and working capital needs.
OUTLOOK
The Company expects to build on the strong first quarter results during the
remainder of 1998. The Newsprint Segment is expected to continue its
year-over-year profit growth as a result of improved newsprint selling prices.
The Publishing Segment also anticipates excellent results due in large part to
robust advertising revenues. Strong February rating books at most of our
broadcast affiliates and renewal of our Fairfax Cable franchise, expected in the
second quarter, should also make positive contributions. Together, these factors
are expected to produce higher year-over-year net income for the Company.
11
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule for the period ended March 29, 1998.
27.2 Restated Financial Data Schedule for the period ended March 30,
1997.
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the quarter
ended March 29,1998.
12
<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: May 8, 1998 /s/ J. Stewart Bryan III
------------------------
J. Stewart Bryan III, Chairman, President
and Chief Executive Officer
DATE: May 8, 1998 /s/ Marshall N. Morton
----------------------
Marshall N. Morton
Senior Vice President and Chief Financial
Officer
13
<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> 3-mos
<FISCAL-YEAR-END> DEC-27-1998
<PERIOD-END> MAR-29-1998
<CASH> 5,694
<SECURITIES> 0
<RECEIVABLES> 104,150
<ALLOWANCES> 6,389
<INVENTORY> 15,949
<CURRENT-ASSETS> 145,952
<PP&E> 1,093,927
<DEPRECIATION> 591,815
<TOTAL-ASSETS> 1,885,848
<CURRENT-LIABILITIES> 136,821
<BONDS> 957,515
0
0
<COMMON> 133,537
<OTHER-SE> 290,105
<TOTAL-LIABILITY-AND-EQUITY> 1,885,848
<SALES> 234,681
<TOTAL-REVENUES> 234,681
<CGS> 117,489
<TOTAL-COSTS> 117,489
<OTHER-EXPENSES> 26,283
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17,399
<INCOME-PRETAX> 20,724
<INCOME-TAX> 7,979
<INCOME-CONTINUING> 12,745
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,745
<EPS-PRIMARY> 0.48
<EPS-DILUTED> 0.47
</TABLE>
<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> 3-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-END> MAR-30-1997
<CASH> 5,565
<SECURITIES> 0
<RECEIVABLES> 96,696
<ALLOWANCES> 6,362
<INVENTORY> 19,241
<CURRENT-ASSETS> 148,482
<PP&E> 1,067,701
<DEPRECIATION> 542,692
<TOTAL-ASSETS> 1,848,435
<CURRENT-LIABILITIES> 130,650
<BONDS> 1,048,000
0
0
<COMMON> 133,084
<OTHER-SE> 243,377
<TOTAL-LIABILITY-AND-EQUITY> 1,848,435
<SALES> 216,145
<TOTAL-REVENUES> 216,145
<CGS> 111,995
<TOTAL-COSTS> 111,995
<OTHER-EXPENSES> 23,321
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,614
<INCOME-PRETAX> 14,073
<INCOME-TAX> 5,840
<INCOME-CONTINUING> 8,233
<DISCONTINUED> 0
<EXTRAORDINARY> (63,000)
<CHANGES> 0
<NET-INCOME> (54,767)
<EPS-PRIMARY> (2.08)
<EPS-DILUTED> (2.06)
</TABLE>
