Media General Reports Third-Quarter 2010 Results, Provides Outlook

Media General Reports Third-Quarter 2010 Results, Provides Outlook

RICHMOND, Va., Oct. 20 /PRNewswire-FirstCall/ -- Media General, Inc. (NYSE: MEG) today reported operating income of $11.5 million in the third quarter of 2010, compared with an operating loss of $67.7 million in the third quarter of 2009. The 2009 results included a pretax non-cash impairment charge of $84.2 million and gains of $1.9 million associated with an insurance recovery and $2 million from implementing a freeze on a retirement plan. Operating income for the third quarter of 2009, adjusted for the impairment, insurance gain and retirement plan freeze, was $12.6 million.

In the current quarter, a net loss of $10.7 million, or 48 cents per share, reflected higher interest expense related to the company's new financing structure as well as a non-cash tax expense. In the 2009 third quarter, the company reported a net loss of $62.5 million, or $2.80 per share, including the impairment charge and the singular gains noted above, and a $910,000 gain from a favorable tax ruling related to the sale of SP Newsprint.

Total revenues in the quarter increased 3.3 percent to $163.2 million, driven by an 18 percent increase in Broadcast television revenues, which reflected strong Political advertising and an underlying firming in television advertising. Total operating expenses, excluding the items noted above, increased 4.4 percent, an improvement from the company's guidance of 7-8 percent, due mostly to keeping open positions unfilled and lower-than-expected newsprint prices. The impact of furlough days drove a majority of the expense increase compared with last year. Additionally, gains on sales of fixed assets were $2.3 million lower this year.

"Our third-quarter operating results benefited from $9.7 million in Political revenues compared with $1.5 million last year, and reflected particularly strong campaign spending in Florida and Ohio," said Marshall N. Morton, president and chief executive officer. "Political advertising overall was lower than expectations, even though candidate spending was on target, mostly due to lower issues spending. At the same time, transactional advertising revenues strengthened in the quarter and offset the lower-than-expected Political revenues. National television advertising, excluding Political, was up 12 percent, and Local time sales increased 4 percent. Automotive advertising, in particular, was strong, and the telecommunications and retail categories firmed as well.

"We were pleased with our progress implementing an array of new online advertising opportunities. In the third quarter, our local media websites generated a 15 percent increase in revenues. Online Classified revenues grew for the third quarter in a row and increased more than 12 percent, due in part to our Yahoo! and Zillow partnerships. Local online revenues rose 22.5 percent, as aggressive sales initiatives continued. Page views and unique visitors for our newspaper and television websites in the third quarter increased 5.6 percent and 3.5 percent, respectively. We recently extended our partnerships for Yahoo! display and Zillow real estate advertising to several TV markets and announced a new partnership for locally branded daily deals with Groupon," Mr. Morton said.

Media General's Publishing revenues declined 7.6 percent from last year. Retailer spending was restrained in most newspaper markets, resulting in a 7.8 percent drop in Local revenues. Classified revenues declined 11.4 percent from last year, and National revenues decreased 2 percent. Printing and distribution outside sales increased 9.4 percent in the quarter.

Market Segments

Virginia/Tennessee market profit in the third quarter was $7.4 million, compared with $10.7 million in the 2009 third quarter. Revenues declined 3.9 percent from last year and expenses increased 3.8 percent. Broadcast revenues grew 4.9 percent, mostly from the Tennessee gubernatorial race, local races and issues advertising. The Virginia gubernatorial election was held in 2009. Publishing revenues decreased 5.9 percent. Higher third-party printing and distribution revenues partially offset declines in most other categories. For the market, Local revenues decreased 3.3 percent, and Classified revenues were down 6.2 percent. National revenues declined 9.2 percent, due primarily to lower spending by telecommunications advertisers. Digital revenues rose 11.5 percent, reflecting increases in Local, National and Classified online advertising.

Florida market profit was $2.1 million, compared with $524,000 a year ago. Revenues increased 6.7 percent and expenses increased 2.5 percent. Broadcast revenues grew more than 35 percent, due to strong Political advertising on WFLA and also BP oil spill-related advertising. Political revenues were $5 million compared with essentially nothing last year, reflecting Florida's hotly contested gubernatorial, U.S. Senate and attorney general races. Publishing revenues decreased 10.4 percent. Total market Classified and Local revenues decreased 18 percent and 2.5 percent, respectively. National revenues increased 3.4 percent, including BP advertising, as well as higher spending by automotive, financial services and travel advertisers on WFLA. Printing and distribution revenues increased 5.4 percent. Digital revenues increased 10.8 percent, due to solid growth in Local and National online advertising.

Mid-South market profit was $7 million, compared with $5.5 million in the prior year. Total revenues increased 10 percent, due to strong Political spending. The Mid-South Market includes 11 television stations and three community newspapers. Political revenues were $1.8 million, compared with $418,000 in 2009. Total Broadcast revenues in the Mid-South increased 14 percent. Total Publishing revenues declined 4 percent. Total market Local and National revenues increased 4.9 percent and 11.2 percent, respectively, offsetting a decline in Classified revenues of 7.6 percent. Digital media revenues rose 20 percent, reflecting higher Local, National and Classified spending.

The North Carolina market reported a loss of $51,000, compared with a profit of $1.4 million last year. Revenues decreased 4.1 percent, and expenses increased 4 percent from last year. Broadcast revenues increased 4.1 percent, mostly due to higher spending in the National automotive category at the market's two television stations. Political revenues were $118,000, reflecting the absence of hotly contested races in the state. Publishing revenues in North Carolina declined 9.5 percent in the third quarter. For the market, National revenues increased 11.5 percent while Local and Classified revenues each decreased 6 percent. Digital media revenues increased 26 percent, due to higher Local and Classified revenues.

Ohio/Rhode Island market profit was $4.4 million, compared with $2.5 million last year, due to strong Political and National revenues from the market's two NBC-affiliated television stations. Total revenues increased 19 percent. Political revenues were $2.1 million compared with $518,000 in 2009, reflecting gubernatorial and Congressional races in Ohio and a gubernatorial race in Rhode Island. National advertising increased 28 percent, due to increased automotive, furniture store and grocery store advertising. Local revenues rose 3 percent. Digital media revenues rose nearly 10 percent.

Advertising Services and Other segment profit of $483,000, declined from $1.5 million last year, due largely to a decrease in revenues from DealTaker.com, the company's shopping and coupon website, and Blockdot, which specializes in interactive entertainment and advergaming technologies.

Other Results

Interest expense was $17 million in the third quarter, compared with $10.5 million last year, due to the company's new financing structure. Debt at the end of third quarter of 2010 was $673 million, compared with $712 million at the beginning of the year.

Corporate expense increased due to the impact of employee furlough days and a gain from freezing a retirement plan in 2009.

Income tax expense in the third quarter was $5.3 million. The previously estimated third-quarter non-cash tax expense of $7.5 million was partially offset by an additional $1.5 million tax refund related to the company's net operating loss carryback claim as well as a $700,000 non-cash tax benefit resulting from the intraperiod allocation of tax to other comprehensive income items. Last year's third quarter showed an income tax benefit of $16.7 million on continuing operations related to the impairment charge.

EBITDA (loss from continuing operations before interest, taxes, depreciation and amortization) was $24.9 million in the third quarter of 2010, compared witha deficit of$51.7 millionin the 2009 period, including the non-cash impairment charge. After-Tax Cash Flow was $7.8 million, compared with $22.1 million in the prior-year's quarter. Capital expenditures in the third quarter of 2010 were $6.8 million, compared with $3.6 million in the prior-year period. Free Cash Flow (After-Tax Cash Flow minus capital expenditures) was$1 million, compared with $18.4 million in the prior-year period, excluding the impairment charge.

Media General provides the non-GAAP financial metrics EBITDA from continuing operations, After-Tax Cash Flow, Free Cash Flow, Operating Income adjusted for impairment, insurance gain and the freeze on the retirement plan, and Operating Expenses adjusted for impairment, insurance gain and the freeze on the retirement plan. The company believes these metrics are useful in evaluating financial performance and/or are common alternative measures used by investors, financial analysts and rating agencies. These groups use EBITDA, along with other measures, to evaluate a company's ability to service its debt requirements and to estimate the value of the company. A reconciliation of these metrics to amounts on the GAAP statements has been included in this news release.

Outlook

For the fourth quarter of 2010, Media General expects total revenues to increase 6-8 percent from the prior year. Broadcast revenues are expected to increase 24-26 percent, driven by strong Political advertising. Publishing revenues are expected to decrease 5-7 percent, due to lower revenues in most categories. Digital Media revenues are expected to increase 9-11 percent.

Total operating costs are expected to increase 8-9.5 percent, due to the impact of furlough days, higher newsprint expense and increased support of new revenue initiatives. The company continues to expect free cash flow for the full year 2010 of $58-$60 million, including a $28 million tax refund, most of which was received in April.

Conference Call, Webcast and Financial Statements

The company will hold a conference call with financial analysts today at 10 a.m. ET. The conference call will be available to the media and general public through a limited number of listen-only dial-in conference lines and via simultaneous Webcast. To dial in to the call, listeners may call 1-866-314-9013 about 10 minutes prior to the 10 a.m. start. The participant passcode is "Media General." Listeners may also access the live Webcast by logging on to www.mediageneral.com and clicking on the "Live Webcast" link on the homepage about 10 minutes in advance. A replay of the Webcast will be available online at www.mediageneral.com beginning at 12 p.m. today. A telephone replay will also be available, beginning at 1 p.m. today and ending at 1 p.m. on October 27, 2010, by dialing 1-888-286-8010 or 617-801-6888, and using the passcode 36750530.

Forward-Looking Statements

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

About Media General

Media General is a leading provider of news, information and entertainment across multiple media platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern United States. Media General's operations are organized in five geographic market segments and a sixth segment that includes the company's interactive advertising services and certain other operations. The company's operations include 18 network-affiliated television stations and their associated websites, three metropolitan and 20 community newspapers and their associated websites, and more than 200 specialty publications that include weekly newspapers and niche publications targeted to various demographic, geographic and topical communities of interest. Many of the company's specialty publications have associated websites. Media General additionally operates three interactive advertising services companies: Blockdot, which specializes in interactive entertainment and advergaming technologies; DealTaker.com, a coupon and shopping website; and NetInformer, a leading provider of wireless media and mobile marketing services.

Media General, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS

Thirteen Weeks Ending Thirty-Nine Weeks Ending
--------------------- ------------------------
September September September September
26, 27, 26, 27,
(Unaudited, in
thousands except per
share amounts) 2010 2009 2010 2009
--------------------- ---- ---- ---- ----

Revenues
Publishing $77,687 $84,097 $241,890 $263,136
Broadcast 75,009 63,375 214,603 187,352
Digital media and
other 10,517 10,536 31,746 30,043
----------------- ------ ------ ------ ------
Total revenues 163,213 158,008 488,239 480,531
-------------- ------- ------- ------- -------

Operating costs:
Employee compensation 74,494 69,966 222,531 230,117
Production 37,765 37,185 110,129 120,313
Selling, general and
administrative 26,288 21,354 78,521 68,128
Depreciation and
amortization 13,204 14,881 40,602 45,256
Goodwill and other
asset impairment --- 84,220 --- 84,220
Gain on insurance
recovery --- (1,915) --- (1,915)
----------------- --- ------ --- ------
Total operating costs 151,751 225,691 451,783 546,119
--------------------- ------- ------- ------- -------

Operating income
(loss) 11,462 (67,683) 36,456 (65,588)
---------------- ------ ------- ------ -------

Other income
(expense):
Interest expense (17,015) (10,489) (53,927) (31,718)
Gain on sale of
investments --- 910 --- 701
Other, net 184 212 725 621
---------- --- --- --- ---
Total other expense (16,831) (9,367) (53,202) (30,396)
------------------- ------- ------ ------- -------

Loss from continuing
operations before
income taxes (5,369) (77,050) (16,746) (95,984)

Income tax expense
(benefit) 5,288 (16,670) 14,940 (27,625)
------------------ ----- ------- ------ -------

Loss from continuing
operations (10,657) (60,380) (31,686) (68,359)
Discontinued
operations:
Income (loss) from
discontinued
operations (net of
tax) --- (98) --- 96
Gain (loss) related
to divestiture of
operations (net of
tax) --- (1,984) --- 5,136
-------------------
Net Loss $(10,657) $(62,462) $(31,686) $(63,127)
======== ======== ======== ======== ========

Net income (loss) per
common share:
Loss from continuing
operations $(0.48) $(2.71) $(1.42) $(3.07)
Discontinued
operations --- (0.09) --- 0.23
--- ----- --- ----
Net loss per common
share $(0.48) $(2.80) $(1.42) $(2.84)
====== ====== ====== ======

Net income (loss) per
common share -
assuming dilution:
Loss from continuing
operations $(0.48) $(2.71) $(1.42) $(3.07)
Discontinued
operations --- (0.09) --- 0.23
--- ----- --- ----
Net loss per common
share -assuming
dilution $(0.48) $(2.80) $(1.42) $(2.84)
====== ====== ====== ======

Weighted-average
common shares
outstanding:
Basic and diluted 22,366 22,273 22,333 22,236

Media General, Inc.
BUSINESS SEGMENT

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

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

Consolidated loss
from continuing
operations before
income taxes $(5,369)
=======

(Unaudited, in Operating
thousands) Revenues Depreciation & Profit
-------------- -------- Amortization (Loss)
------------ ------
Three Months Ending
September 27, 2009
Virginia/Tennessee $47,980 $(3,380) $10,674
Florida 36,519 (2,076) 524
Mid-South 35,513 (3,364) 5,479
North Carolina 18,946 (1,703) 1,430
Ohio/Rhode Island 12,314 (849) 2,509
Advertising
Services & Other 7,160 (209) 1,529
Eliminations (424) - -
---
22,145
Unallocated
amounts:
Acquisition
intangibles
amortization (1,775) (1,775)
Corporate expense (1,525) (4,752)
$158,008 $(14,881)
======== ========

Interest expense (10,489)
Net gain on sale of
investments 910
Gain on insurance
recovery 1,915
Goodwill and other
asset impairment (84,220)
Other (784)

Consolidated loss
from continuing
operations before
income taxes $(77,050)
========

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

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

Consolidated loss
from continuing
operations before
income taxes $(16,746)
========

(Unaudited, in Operating
thousands) Revenues Depreciation & Profit
-------------- -------- Amortization (Loss)
------------ ------
Nine months ended
September 27, 2009
Virginia/Tennessee $145,408 $(10,525) $24,033
Florida 116,386 (6,266) (2,313)
Mid-South 106,252 (10,152) 12,516
North Carolina 57,601 (5,095) 1,355
Ohio/Rhode Island 36,014 (2,541) 5,245
Advertising
Services & Other 19,963 (657) 2,894
Eliminations (1,093) 2 (46)
---
43,684
Unallocated
amounts:
Acquisition
intangibles
amortization (5,361) (5,361)
Corporate expense (4,661) (20,014)
$480,531 $(45,256)
======== ========

Interest expense (31,718)
Net gain on sale of
investments 701
Gain on insurance
recovery 1,915
Goodwill and other
asset impairment (84,220)
Other (971)

Consolidated loss
from continuing
operations before
income taxes $(95,984)
========

Media General, Inc.
CONSOLIDATED BALANCE SHEETS

September December
26, 27,
(Unaudited, in thousands) 2010 2009
------------------------- ---- ----

ASSETS

Current assets:
Cash and cash equivalents $21,857 $33,232
Accounts receivable - net 89,546 104,405
Inventories 7,770 6,632
Other 39,679 60,786
------ ------
Total current assets 158,852 205,055
------- -------

Other assets 42,457 34,177

Property, plant and equipment
-net 399,849 421,208

FCC licenses and other
intangibles -net 570,948 575,608

Total assets $1,172,106 $1,236,048
============ ========== ==========

LIABILITIES AND STOCKHOLDERS'
EQUITY

Current liabilities:
Accounts payable $25,158 $26,398
Accrued expenses and other
liabilities 94,424 72,174
------ ------
Total current liabilities 119,582 98,572
------- ------

Long-term debt 673,100 711,909

Deferred income taxes 27,603 7,233

Other liabilities and deferred
credits 182,551 226,083

Stockholders' equity 169,270 192,251
Total liabilities and
stockholders' equity $1,172,106 $1,236,048
===================== ========== ==========

Media General, Inc.
REVENUES DETAIL

Thirteen Weeks Ending
---------------------
September 26, September 27,
(Unaudited, in
thousands) 2010 2009%
---- ---- Change
------

Virginia/Tennessee
Publishing $38,295 $40,678 (5.9)%
Broadcast 5,260 5,016 4.9 %
Digital media 2,550 2,286 11.5 %
Total Virginia/
Tennessee revenues 46,105 47,980 (3.9)%
------ ------ -----

Florida
Publishing 19,771 22,057 (10.4)%
Broadcast 17,469 12,911 35.3 %
Digital media 1,718 1,551 10.8 %
Total Florida
revenues 38,958 36,519 6.7 %
------ ------ ----

Mid-South
Publishing 7,931 8,260 (4.0)%
Broadcast 29,832 26,172 14.0 %
Digital media 1,302 1,081 20.4 %
Total Mid-South
revenues 39,065 35,513 10.0 %
------ ------ -----

North Carolina
Publishing 11,737 12,963 (9.5)%
Broadcast 5,239 5,032 4.1 %
Digital media 1,198 951 26.0 %
Total North Carolina
revenues 18,174 18,946 (4.1)%
------ ------ -----

Ohio/Rhode Island
Broadcast 14,172 11,844 19.7 %
Digital media 516 470 9.8 %
Total Ohio/Rhode
Island revenues 14,688 12,314 19.3 %
------ ------ -----

Advertising Services
& Other
Publishing (1) 2 209 (99.0)%
Broadcast (production
company) 3,298 2,548 29.4 %
Digital media 3,457 4,403 (21.5)%
Total Advertising
Services & Other
revenues 6,757 7,160 (5.6)%
----- ----- -----

Eliminations (534) (424) 25.9 %

Total revenues $163,213 $158,008 3.3 %
======== ======== ====

Selected revenue
categories
(Unaudited, in
thousands)

Publishing revenues
Local $33,900 $36,777 (7.8)%
National 5,550 5,686 (2.4)%
Classified 18,118 20,441 (11.4)%
Circulation 16,218 17,634 (8.0)%
Printing/
Distribution 3,293 3,011 9.4 %
----- ----- ----

Broadcast revenues
(gross)
Local $41,230 $39,594 4.1 %
National 22,265 19,851 12.2 %
Political 9,659 1,524 NM
Cable/Satellite
(retransmission)
fees 4,820 4,226 14.1 %
----- ----- -----

Digital revenues
Local $3,696 $3,017 22.5 %
National 932 835 11.6 %
Classified 2,425 2,160 12.3 %
Advertising Services 3,455 4,409 (21.6)%
----- ----- ------

Thirty-Nine Weeks Ending
------------------------
September 26, September 27,
(Unaudited, in
thousands) 2010 2009%
---- ---- Change
------

Virginia/Tennessee
Publishing $118,227 $124,162 (4.8)%
Broadcast 15,510 14,917 4.0 %
Digital media 7,166 6,329 13.2 %
Total Virginia/
Tennessee revenues 140,903 145,408 (3.1)%
------- ------- -----

Florida
Publishing 63,001 73,174 (13.9)%
Broadcast 46,328 38,542 20.2 %
Digital media 5,095 4,670 9.1 %
Total Florida
revenues 114,424 116,386 (1.7)%
------- ------- -----

Mid-South
Publishing 24,206 25,400 (4.7)%
Broadcast 89,421 77,803 14.9 %
Digital media 3,500 3,049 14.8 %
Total Mid-South
revenues 117,127 106,252 10.2 %
------- ------- -----

North Carolina
Publishing 36,649 39,884 (8.1)%
Broadcast 16,294 14,964 8.9 %
Digital media 3,252 2,753 18.1 %
Total North Carolina
revenues 56,195 57,601 (2.4)%
------ ------ -----

Ohio/Rhode Island
Broadcast 40,606 34,612 17.3 %
Digital media 1,523 1,402 8.6 %
Total Ohio/Rhode
Island revenues 42,129 36,014 17.0 %
------ ------ -----

Advertising Services
& Other
Publishing (1) 4 718 (99.4)%
Broadcast (production
company) 7,171 6,898 4.0 %
Digital media 11,860 12,347 (3.9)%
Total Advertising
Services & Other
revenues 19,035 19,963 (4.6)%
------ ------ -----

Eliminations (1,574) (1,093) 44.0 %

Total revenues $488,239 $480,531 1.6 %
======== ======== ====

Selected revenue
categories
(Unaudited, in
thousands)

Publishing revenues
Local $105,746 $116,719 (9.4)%
National 16,944 19,055 (11.1)%
Classified 56,787 64,238 (11.6)%
Circulation 50,340 52,244 (3.6)%
Printing/
Distribution 9,864 9,146 7.9 %
----- ----- ----

Broadcast revenues
(gross)
Local $125,883 $117,885 6.8 %
National 67,608 61,341 10.2 %
Political 17,700 2,485 NM
Cable/Satellite
(retransmission)
fees 14,111 11,740 20.2 %
------ ------ -----

Digital revenues
Local $10,293 $8,296 24.1 %
National 2,606 2,479 5.1 %
Classified 7,014 6,375 10.0 %
Advertising Services 11,817 12,355 (4.4)%
------ ------ -----

(1) Starting in 2010, most print products formerly within Advertising
Services & Other are being managed in their respective geographic
market or have been discontinued.

"NM" is not meaningful.

Media General, Inc.
Non-GAAP Financial Metrics

Thirteen Weeks Ending Thirty-Nine Weeks Ending
--------------------- ------------------------
September September September September
26, 27, 26, 27,
(Unaudited, in
thousands) 2010 2009 2010 2009
-------------- ---- ---- ---- ----

Loss from
continuing
operations $(10,657) $(60,380) $(31,686) $(68,359)
Interest 17,015 10,489 53,927 31,718
Taxes 5,288 (16,670) 14,940 (27,625)
Depreciation
and
amortization 13,204 14,881 40,602 45,256

EBITDA from
continuing
operations $24,850 $(51,680) $77,783 $(19,010)
=========== ======= ======== ======= ========

Loss from
continuing
operations $(10,657) $(60,380) $(31,686) $(68,359)
Taxes * 5,288 (16,670) 14,940 (27,625)
Non-cash
impairment
charge - 84,220 - 84,220
Depreciation
and
amortization 13,204 14,881 40,602 45,256

After-tax cash
flow $7,835 $22,051 $23,856 $33,492
============== ====== ======= ======= =======

After-tax cash
flow $7,835 $22,051 $23,856 $33,492
Capital
expenditures 6,808 3,647 15,604 11,625

Free cash flow $1,027 $18,404 $8,252 $21,867
============== ====== ======= ====== =======

* The Company's income tax expense in 2010 is non-cash in nature and
has been added back accordingly.
See 2009 Form 10-K for further discussion.

Operating income adjusted for impairment, insurance gain, and freeze
on retirement plan

Thirteen Weeks Ending
(Unaudited, in thousands) September 27, 2009
------------------------- ---------------------

Operating income (loss) $(67,683)
Non-cash impairment charge 84,220
Gain on insurance recovery (1,915)
Freeze on retirement plan (2,049)
------

Operating income adjusted for impairment, insurance
gain, and freeze on retirement plan $12,573
=======

Operating expenses adjusted for impairment, insurance gain, and
freeze on retirement plan

Thirteen Weeks Ending
(Unaudited, in thousands) September 27, 2009
------------------------- ---------------------

Total operating expenses $225,691
Non-cash impairment charge (84,220)
Gain on insurance recovery 1,915
Freeze on retirement plan 2,049
-----

Operating expenses adjusted for impairment,
insurance gain, and freeze on retirement plan $145,435
========

Percentage change from previous year 4.4%
===

SOURCE Media General, Inc.

Media General, Inc.

CONTACT: Investors, Lou Anne Nabhan, +1-804-649-6103; Media, Ray Kozakewicz, +1-804-649-6748

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

-------
Profile: intent