Meredith Reports Over 20 Percent Growth In Fiscal 2015 Earnings Per Share

Meredith Reports Over 20 Percent Growth In Fiscal 2015 Earnings Per Share

Local Media Group Delivers Record Revenue and Profit Performance

Company Generates Record Digital Advertising & Licensing Revenues

DES MOINES, Iowa, July 30, 2015 /PRNewswire/ -- Meredith Corporation (NYSE:MDP; www.meredith.com), the leading media and marketing company serving more than 100 million unduplicated American women and over 60 percent of U.S. millennial women, today reported fiscal 2015 earnings per share of $3.02, compared to $2.50 in the prior year, a 21 percent increase.

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Excluding special items in both years, fiscal 2015 earnings per share were $3.30, compared to $2.80, an 18 percent increase. Fiscal 2015 revenues rose 9 percent to a record $1.6 billion, including 15 percent growth in advertising revenues. (See Tables 1-2 for supplemental disclosures regarding non-GAAP financial measures.)

"Fiscal 2015 was a year of strong growth in revenues, profit and cash flow," said Meredith Chairman and CEO Stephen M. Lacy. "Our Local Media Group delivered the best financial performance in its over 65-year history, and our National Media Group set records in digital advertising and brand licensing revenues. We aggressively added to our portfolio, including acquiring great local television stations, powerful national brands, and cutting-edge digital properties. Importantly, we continued to deliver on our Total Shareholder Return strategy by returning cash to shareholders through increased dividends and our share repurchase program."

Looking at Meredith's fiscal year 2015 performance compared to the prior year:


-- Local Media Group operating profit increased 44 percent to a record $163
million. Growth was driven primarily by the addition of television
stations KMOV in St. Louis and KTVK in Phoenix; a strong political cycle
led by Meredith stations in Phoenix, Hartford and Kansas City; and a
higher net retransmission contribution.
-- National Media Group operating profit increased 8 percent, led by the
additions of the Shape and Martha Stewart media properties; strong
performance by the Allrecipes brand; growth in Brand Licensing and
Meredith Xcelerated Marketing; and disciplined expense management.
-- Total Company digital advertising revenues grew more than 45 percent,
driven by recent acquisitions and organic growth. National Media Group
digital advertising revenues increased nearly 50 percent, while Local
Media Group digital advertising revenues increased nearly 40 percent.
-- Cash flow from operations grew to more than $190 million. Meredith
returned over $125 million to shareholders through dividends and share
repurchases, consistent with the Company's successful Total Shareholder
Return strategy.
For the fourth-quarter of fiscal 2015, Meredith's earnings per share were $0.94, compared to $0.89 in the prior-year period ($0.88 excluding special items). Total revenues rose 9 percent to $426 million, including 13 percent growth in advertising revenues.

FISCAL 2015 BUSINESS HIGHLIGHTS

Meredith continued to execute a series of well-defined strategic initiatives in fiscal 2015 to accelerate profit and free cash flow growth. These included:


-- Increasing its powerful consumer connection - Consumer engagement
strengthened across Meredith's media platforms, including magazine
readership, television news viewership, digital and mobile traffic, and
sales of branded product at retail.
-- Generating record political advertising revenues - Meredith's television
stations combined to generate $44 million of political advertising
revenues, an increase of 12 percent compared to fiscal 2013, the last
election cycle.
-- Continued expansion of the Company's media portfolio including:
-- In the Local Media Group, Meredith added WALA, the FOX affiliate in
Mobile-Pensacola, and WGGB, the ABC affiliate in Springfield, Mass.
WGGB is also the FOX affiliate, airing it on a digital tier, and
Meredith already owned the CBS affiliate in Springfield. Meredith's
17 stations - including five duopolies - now reach 11 percent of
U.S. television households.
-- In the National Media Group, Meredith acquired the Shape brand, the
clear leader in the women's active lifestyle category. It also
entered into a long-term partnership with the Martha Stewart media
properties, and expanded into the wedding category with the addition
of the Martha Stewart Weddings brand and leading digital destination
mywedding.com. Meredith increased the rate bases of Allrecipes and
EatingWell magazines, and launched Parents Latina, a new brand aimed
at growing its reach to U.S. Hispanic millennial women.
-- Rapid growth in digital, mobile, video and social platforms - Traffic
across Meredith's digital properties is now averaging approximately 70
million unique visitors per month, ranking Meredith among the top 35
digital operators in the U.S. In addition to mywedding.com, Meredith
acquired Selectable Media, a leading native and engagement-based
advertising platform; and Qponix, a leading shopper marketing platform
and network.
-- Strong performance from non-advertising-related activities - Brand
Licensing delivered excellent performance, driven by strong sales of
Better Homes and Gardens branded products at Walmart stores across the
U.S. Meredith Xcelerated Marketing generated more than 20 percent growth
in operating profit as the digital marketing agency leveraged its
content marketing expertise on behalf of clients in the automotive,
casual dining, consumer packaged goods, managed healthcare, and retail
industries. Additionally, Meredith's Local Media Group delivered
significant growth in retransmission revenues.
-- Successful execution of its Total Shareholder Return Strategy - Meredith
increased its dividend by 6 percent to $1.83 per share on an annualized
basis, the 22(nd) consecutive year of dividend growth. The dividend is
currently yielding approximately 4 percent.
OPERATING GROUP DETAIL

LOCAL MEDIA GROUP

Meredith's Local Media Group includes 17 owned or operated television stations reaching 11 percent of U.S. households. Meredith's portfolio is concentrated in large, fast-growing markets, including seven stations in the nation's Top 25 and 13 in Top 50 markets. Meredith's stations produce more than 660 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 2015 Local Media Group operating profit increased 44 percent to a record $163 million. Excluding special items in both periods, operating profit and adjusted EBITDA grew more than 35 percent each to $169 million and $206 million, respectively. Adjusted EBITDA margin was 39 percent. Revenues increased 33 percent to $534 million. (See Tables 1-4.)

Looking more closely at fiscal 2015 financial performance compared to the prior year:


-- Total advertising revenues increased 35 percent to $400 million, an
all-time record.
-- Non-political advertising revenues grew 23 percent to $357 million.
Results were led by acquired stations in Phoenix, St. Louis, Mobile and
Springfield, along with strong digital advertising revenue performance.
-- Political advertising revenues were $44 million, a record high.
Performance was led by newly acquired stations in St. Louis and Phoenix,
along with Meredith's existing stations in Phoenix, Hartford and Kansas
City.
-- Other revenues and operating expenses increased, due primarily to growth
in retransmission revenues from cable and satellite television operators
and higher programming fees paid to affiliated networks, along with
increases from recent acquisitions.
Meredith demonstrated its strong connection with viewers in the May ratings period, as eight of its stations were No. 1 or No. 2 in late news, and nine were No. 1 or No. 2 in morning news.

"Our television expansion strategy continues to drive growth in revenue and profit," said Meredith Local Media Group President Paul Karpowicz. "We have successfully integrated the four stations we acquired, while also delivering stronger financial performance from our existing stations. Looking ahead, we are focused on continued growth across our group - including from our digital and mobile platforms - while actively looking for opportunities to add to our portfolio."

For the fourth-quarter of fiscal 2015, Local Media Group operating profit was $40 million compared to $25 million in the prior-year period ($32 million excluding special items, See Tables 1-2). Revenues increased 17 percent to $130 million.

NATIONAL MEDIA GROUP

Meredith's National Media Group reaches a multi-channel audience of approximately 220 million consumers each month, including more than 100 million unduplicated American women, and over 60 percent of U.S. 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. It 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 2015 National Media Group operating profit increased 8 percent to $123 million. Excluding special items in both periods, operating profit increased 3 percent to $137 million. Revenues were flat at $1.1 billion. (See Tables 1-2.)

Looking more closely at fiscal 2015 advertising performance compared to the prior year:


-- Total advertising revenues grew 3 percent to $496 million. Performance
was driven by the addition of Shape and Martha Stewart Living, along
with food-oriented brands Allrecipes, EatingWell and Family Circle. In
particular, the prescription drug, retail and food categories were
stronger than the prior year.
-- Digital advertising revenues increased nearly 50 percent, accounting for
nearly 25 percent of total National Media Group advertising revenues.
Growth was driven by Allrecipes.com, along with the addition of
Marthastewart.com, Shape.com, mywedding.com and Selectable Media.
Circulation contribution and margin increased in fiscal 2015. Meredith continued to expand its digital consumer marketing activities, driving approximately one-third of magazine subscription acquisitions via digital sources over the last 12 months. During the year, Meredith increased the rate base of Allrecipes magazine to 1.1 million, more than doubling its size at launch in November 2013. Meredith also grew the rate base of EatingWell magazine to 1 million, up from 350,000 when acquired four years ago. Total circulation revenues declined 4 percent to $314 million, primarily due to the Ladies' Home Journal transition to a quarterly newsstand title, partially offset by the additions of Martha Stewart Living and Shape.

Meredith's consumer engagement remained robust. According to the May year-to-date Magazine Media 360 audience report, Better Homes and Gardens was the 3(rd )largest brand in the industry, with a total monthly audience average of 48 million, and Allrecipes was No. 5, with a total monthly audience average of 44 million. Additionally, the EatingWell and FamilyFun brands delivered over 10 percent audience growth.

Meredith also delivered stronger results from businesses not dependent on advertising:


-- Brand Licensing revenues and operating profit increased, driven by sales
of more than 3,000 SKUs of Better Homes and Gardens licensed products at
over 4,000 Walmart stores nationwide. Meredith's licensing activities
were named the world's third largest by License!Global magazine for the
second straight year.
-- Meredith Xcelerated Marketing delivered significantly higher operating
profit and margin. MXM was named Content Marketing Agency of the Year
by the Content Marketing Institute.
"We're pleased with our growth in operating profit, led by contributions from our newly acquired businesses, along with record digital and brand licensing performance," said Meredith National Media Group President Tom Harty. "Looking ahead, we will continue execution of the innovative and successful strategies that are driving rapid growth in our digital operations, and actively explore opportunities to add to our portfolio."

For the fourth-quarter of fiscal 2015, National Media Group operating profit increased to $44 million. Revenues increased 6 percent to $296 million, including 11 percent growth in advertising revenue.

OTHER FINANCIAL INFORMATION

Consistent with its Total Shareholder Return strategy, Meredith repurchased approximately 925,000 shares of stock in fiscal 2015, and $97 million remained under the current repurchase authorization. Total debt was $795 million, and the weighted average interest rate was 2.5 percent, with $450 million effectively at a fixed rate. Meredith's debt-to-EBITDA ratio for the trailing 12 months was 2.5 to 1 (as defined in Meredith's credit agreements). All metrics are as of June 30, 2015.

Key elements of Meredith's Total Shareholder Return strategy are (1) An annual dividend of $1.83 per share (yielding approximately 4 percent), a 6 percent increase over the prior year and a nearly 80 percent increase since Meredith launched its TSR strategy in October 2011; (2) An ongoing share repurchase program; and (3) Strategic 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 2015 full-year and fourth-quarter comparisons are against the comparable prior-year period unless otherwise stated.

OUTLOOK

Meredith expects full year fiscal 2016 earnings per share to range from $2.90 to $3.25. Meredith will be cycling against a record $44 million (or $0.59 per share) in net political advertising revenues recorded by its Local Media Group in fiscal 2015.

Looking more closely at the first quarter of fiscal 2016 compared to the prior-year period:


-- Total Company revenues are expected to be up low-single digits.
-- Total Local Media Group revenues are expected to be flat to up slightly.
-- Total National Media Group revenues are expected to be up low- to
mid-single digits.
-- Meredith expects fiscal 2016 first quarter earnings per share to range
from $0.47 to $0.52, compared to $0.65 in the prior year period.
Meredith will be cycling against $13 million (or $0.18 per share) in net
political advertising revenues recorded 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 2016. 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 30, 2015, at 11 a.m. EDT to discuss fiscal 2015 and fourth-quarter 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, adjusted EBITDA, EBITDA margin and adjusted 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. Adjusted EBITDA is defined as EBITDA before special items.

Results excluding 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 2016.

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 17 owned or operated television stations reaching 11 percent of U.S. television households. Meredith's portfolio is concentrated in large, fast-growing markets, with seven stations in the nation's Top 25 - including Atlanta, Phoenix, St. Louis and Portland - and 13 in Top 50 markets. Meredith's stations produce more than 660 hours of local news and entertainment content each week, and operate leading local digital destinations.

Meredith's National Media Group reaches a multi-channel audience of approximately 220 million consumers monthly, including more than 100 million unduplicated women and over 60 percent of American 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, Allrecipes and Shape. The National Media Group features robust brand licensing activities, including more than 3,000 SKUs of branded products at 4,000 Walmart stores across the U.S. and at Walmart.com. 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 NBC Universal.

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 $1.83 per share yields approximately 4 percent. Meredith has paid a dividend for 68 straight years and increased it for 22 consecutive years.






Meredith Corporation and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)


Three Months Twelve Months

Years ended June
30, 2015 2014 2015 2014
---------------- ---- ----

(In thousands except per share data)

Revenues

Advertising $231,085 $204,138 $896,548 $778,391

Circulation 92,295 87,669 313,685 327,214

All other 102,528 98,987 383,943 363,103
--------- ------- ------ ------- -------

Total revenues 425,908 390,794 1,594,176 1,468,708
-------------- ------- ------- --------- ---------

Operating expenses

Production,
distribution, and
editorial 162,323 149,265 598,941 567,024

Selling, general,
and administrative 174,176 167,442 695,319 655,241

Depreciation and
amortization 16,117 13,510 57,804 59,928
---------------- ------ ------ ------ ------

Total operating
expenses 352,616 330,217 1,352,064 1,282,193
--------------- ------- ------- --------- ---------

Income from
operations 73,292 60,577 242,112 186,515

Interest expense,
net (5,146) (3,500) (19,352) (12,176)
----------------- ------ ------ ------- -------

Earnings before
income taxes 68,146 57,077 222,760 174,339

Income taxes (25,567) (16,632) (85,969) (60,798)
------------ ------- ------- ------- -------

Net earnings $42,579 $40,445 $136,791 $113,541
------------ ------- ------- -------- --------


Basic earnings per
share $0.95 $0.91 $3.07 $2.54
------------------ ----- ----- ----- -----

Basic average
shares outstanding 44,596 44,551 44,522 44,636
------------------- ------ ------ ------ ------


Diluted earnings
per share $0.94 $0.89 $3.02 $2.50
---------------- ----- ----- ----- -----

Diluted average
shares outstanding 45,416 45,250 45,323 45,410
------------------- ------ ------ ------ ------


Dividends paid per
share $0.4575 $0.4325 $1.7800 $1.6800
------------------ ------- ------- ------- -------




Meredith Corporation and Subsidiaries

Segment Information (Unaudited)


Three Months Twelve Months

Years ended June 30, 2015 2014 2015 2014
-------------------- ---- ---- ---- ----

(In thousands)

Revenues

National media

Advertising $136,219 $122,734 $496,204 $482,808

Circulation 92,295 87,669 313,685 327,214

Other revenues 67,333 69,222 249,963 255,876
------ ------ ------- -------

Total national media 295,847 279,625 1,059,852 1,065,898
-------------------- ------- ------- --------- ---------

Local media

Non-political
advertising 93,633 78,280 356,547 290,698

Political
advertising 1,233 3,124 43,797 4,885

Other revenues 35,195 29,765 133,980 107,227
------ ------ ------- -------

Total local media 130,061 111,169 534,324 402,810

Total revenues $425,908 $390,794 $1,594,176 $1,468,708
-------------- -------- -------- ---------- ----------


Operating profit

National media $44,219 $43,353 $122,681 $113,113

Local media 39,959 25,463 162,677 113,060

Unallocated
corporate (10,886) (8,239) (43,246) (39,658)
------- ------ ------- -------

Income from
operations $73,292 $60,577 $242,112 $186,515
----------- ------- ------- -------- --------


Depreciation and amortization

National media $5,705 $4,100 $17,186 $29,455

Local media 9,853 8,974 38,779 28,815

Unallocated
corporate 559 436 1,839 1,658
--- --- ----- -----

Total depreciation
and amortization $16,117 $13,510 $57,804 $59,928
------------------ ------- ------- ------- -------


EBITDA (1)

National media $49,924 $47,453 $139,867 $142,568

Local media 49,812 34,437 201,456 141,875

Unallocated
corporate (10,327) (7,803) (41,407) (38,000)
------- ------ ------- -------

Total EBITDA 1 $89,409 $74,087 $299,916 $246,443
-------------- ------- ------- -------- --------


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




Meredith Corporation and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)


Assets June 30, June 30,
2015 2014
--- ---- ----

(In thousands)

Current assets

Cash and cash
equivalents $22,833 $36,587

Accounts receivable,
net 284,646 257,644

Inventories 24,681 24,008

Current portion of
subscription
acquisition costs 122,350 96,893

Current portion of
broadcast rights 4,516 4,551

Assets held for sale - 56,010

Other current assets 23,505 17,429
-------------------- ------ ------

Total current assets 482,531 493,122
-------------------- ------- -------

Property, plant, and
equipment 527,622 501,106

Less accumulated
depreciation (313,886) (296,168)
---------------- -------- --------

Net property, plant,
and equipment 213,736 204,938

Subscription
acquisition costs 103,842 101,533

Broadcast rights 1,795 3,114

Other assets 67,750 86,935

Intangible assets,
net 972,382 813,297

Goodwill 1,001,246 840,861
-------- --------- -------

Total assets $2,843,282 $2,543,800
------------ ---------- ----------


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

Current liabilities

Current portion of
long-term debt $62,500 $87,500

Current portion of
long-term broadcast
rights payable 4,776 4,511

Accounts payable 93,944 81,402

Accrued expenses and
other liabilities 163,655 136,047

Current portion of
unearned
subscription
revenues 206,126 173,643
------------------ ------- -------

Total current
liabilities 531,001 483,103

Long-term debt 732,500 627,500

Long-term broadcast
rights payable 2,998 4,327

Unearned subscription
revenues 151,221 151,533

Deferred income taxes 311,645 277,477

Other noncurrent
liabilities 162,067 108,208
---------------- ------- -------

Total liabilities 1,891,432 1,652,148
----------------- --------- ---------

Shareholders' equity

Common stock 37,657 36,776

Class B stock 6,963 7,700

Additional paid-in
capital 49,019 41,884

Retained earnings 870,859 814,050

Accumulated other
comprehensive loss (12,648) (8,758)
------------------- ------- ------

Total shareholders'
equity 951,850 891,652
------------------- ------- -------

Total liabilities and
shareholders' equity $2,843,282 $2,543,800
--------------------- ---------- ----------




Meredith Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)


Twelve months
ended June 30, 2015 2014
--------------- ---- ----

(In thousands)

Net cash provided
by operating
activities $192,347 $178,090
----------------- -------- --------


Cash flows from investing
activities

Acquisitions of
and investments
in businesses (257,030) (417,461)

Additions to
property, plant,
and equipment (33,245) (24,822)

Proceeds from
disposition of
assets 83,434 -
------ ---

Net cash used in
investing
activities (206,841) (442,283)
---------------- -------- --------


Cash flows from financing
activities

Proceeds from
issuance of long-
term debt 470,000 666,000

Repayments of
long-term debt (390,000) (301,000)

Dividends paid (79,982) (75,392)

Purchases of
Company stock (46,764) (78,226)

Proceeds from
common stock
issued 41,251 58,885

Excess tax
benefits from
share-based
payments 6,471 4,855

Other (236) (2,016)
----- ---- ------

Net cash provided
by financing
activities 740 273,106
----------------- --- -------

Net increase
(decrease) in
cash and cash
equivalents (13,754) 8,913

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

Cash and cash
equivalents at
end of year $22,833 $36,587
--------------- ------- -------




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.


Twelve months ended National Local Unallocated
June 30, 2015 Corporate Total

Media Media
--- ----- -----

(In thousands except per share data)

Operating profit
excluding special
items (non-GAAP) $136,860 $168,722 $(42,740) $262,842

Special items

Severance and
related benefits
costs (11,853) (2,311) (506) (14,670)

Write-down of
impaired assets (1,692) (1,259) - (2,951)

Acquisition and
disposal
transaction costs (564) (2,284) - (2,848)

Other (70) (191) - (261)

Total special items (14,179) (6,045) (506) (20,730)
------------------- ------- ------ ---- -------

Operating profit $122,681 $162,677 $(43,246) $242,112
---------------- -------- -------- -------- --------


Earnings per share excluding special items (non-GAAP) $3.30

Per share impact of special items of $20,730 ($12,749 after tax) (0.28)
-----

Diluted earnings per share $3.02
-------------------------- -----




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.


Three months ended National Local Unallocated
June 30, 2014 Corporate Total

Media Media
--- ----- -----

(In thousands except per share data)

Operating profit
excluding special
items (non-GAAP) $43,353 $31,558 $(8,239) $66,672

Special items

Severance costs - (3,366) - (3,366)

Acquisition
transaction costs - (2,409) - (2,409)

Other - (320) - (320)

Total special items - (6,095) - (6,095)
------------------- --- ------ --- ------

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


Earnings per share excluding special items (non-GAAP) $0.88

Per share impact of operating special items of $6,095 ($3,749 after tax) (0.08)

Per share impact of tax benefit special item of $4,291 0.09
------------------------------------------------------ ----

Diluted earnings per share $0.89
-------------------------- -----



Twelve months ended National Local Unallocated
June 30, 2014 Corporate Total

Media Media
--- ----- -----

(In thousands except per share data)

Operating profit
excluding special
items (non-GAAP) $132,880 $122,230 $(39,964) $215,146

Special items

Write-down of
impaired
intangible assets (10,322) - - (10,322)

Severance costs (8,549) (3,366) - (11,915)

Write-down of
other impaired
assets (1,125) - - (1,125)

Acquisition
transaction costs - (5,484) - (5,484)

Other 229 (320) 306 215

Total non-GAAP
adjustments (19,767) (9,170) 306 (28,631)
-------------- ------- ------ --- -------

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


Earnings per share excluding special items (non-GAAP) $2.80

Per share impact of operating special items of $28,631 ($17,608 after tax) (0.38)

Per share impact of interest expense special item of $636 ($391 after tax) (0.01)

Per share impact of tax benefit special item of $4,291 0.09
------------------------------------------------------ ----

Diluted earnings per share $2.50
-------------------------- -----




Table 3

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.


Adjusted EBITDA

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

Segment adjusted EBITDA is a measure of segment earnings before depreciation, amortization, and special items.

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


Three months ended National Local Unallocated
June 30, 2015 Corporate Total

Media Media
--- ----- -----

(In thousands)

Revenues $295,847 $130,061 $ - $425,908
-------- -------- -------- --- --- --------


Operating profit $44,219 $39,959 $(10,886) $73,292

Depreciation and
amortization 5,705 9,853 559 16,117
----- ----- --- ------

EBITDA $49,924 $49,812 $(10,327) 89,409
------ ------- ------- --------

Less

Depreciation and amortization (16,117)

Net interest expense (5,146)

Income taxes (25,567)

Net earnings $42,579
------------ -------


Segment EBITDA margin 16.9% 38.3%
--------------------- ---- ----



Twelve months ended National Local Unallocated
June 30, 2015 Corporate Total

Media Media
--- ----- -----

(In thousands)

Revenues $1,059,852 $534,324 $ - $1,594,176
-------- ---------- -------- --- --- ----------


Operating profit $122,681 $162,677 $(43,246) $242,112

Depreciation and
amortization 17,186 38,779 1,839 57,804
------ ------ ----- ------

EBITDA 139,867 201,456 (41,407) 299,916
------ ------- ------- ------- -------

Special items

Severance costs 11,853 2,311 506 14,670

Write-down of
impaired assets 1,692 - - 1,692

Acquisition and
disposal transaction
costs 564 2,284 - 2,848

Other 70 191 - 261

Total special items 14,179 4,786 506 19,471
------------------- ------ ----- --- ------

Adjusted EBITDA $154,046 $206,242 $(40,901) 319,387
--------------- -------- -------- --------

Less

Depreciation and amortization (57,804)

Total special items (19,471)

Net interest expense (19,352)

Income taxes (85,969)

Net earnings $136,791
------------ --------


Segment EBITDA margin 13.2% 37.7%

Segment adjusted
EBITDA margin 14.5% 38.6%
---------------- ---- ----




Table 4

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.


Adjusted EBITDA

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

Segment adjusted EBITDA is a measure of segment earnings before depreciation, amortization, and special items.

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


Three months ended National Local Unallocated
June 30, 2014 Corporate Total

Media 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
------ ------ ------ ------ ------

Special items

Severance costs - 3,366 - 3,366

Acquisition
transaction costs - 2,409 - 2,409

Other - 320 - 320

Total special items - 6,095 - 6,095
------------------- --- ----- --- -----

Adjusted EBITDA $47,453 $40,532 $(7,803) 80,182
--------------- ------- ------- -------

Less

Depreciation and amortization (13,510)

Total special items (6,095)

Net interest expense (3,500)

Income taxes (16,632)

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


Segment EBITDA margin 17.0% 31.0%

Segment adjusted
EBITDA margin 17.0% 36.5%
---------------- ---- ----



Twelve months ended National Local Unallocated
June 30, 2014 Corporate Total

Media 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
------ ------- ------- ------- -------

Special items

Severance costs 8,549 3,366 - 11,915

Write-down of other
impaired assets 245 - - 245

Acquisition
transaction costs - 5,484 - 5,484

Other (229) 320 (306) (215)

Total special items 8,565 9,170 (306) 17,429
------------------- ----- ----- ---- ------

Adjusted EBITDA $151,133 $151,045 $(38,306) 263,872
--------------- -------- -------- --------

Less

Depreciation and amortization (59,928)

Total special items (17,429)

Net interest expense (12,176)

Income taxes (60,798)

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


Segment EBITDA margin 13.4% 35.2%

Segment adjusted
EBITDA margin 14.2% 37.5%
---------------- ---- ----


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SOURCE Meredith Corporation

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Meredith Corporation

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

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


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