FOR IMMEDIATE RELEASE
Tuesday, June 19, 2001
Media General Provides Detail on Second-Quarter and Full-Year 2001 Expectations
RICHMOND, Va. — Media General (AMEX: MEG.A) executives J. Stewart Bryan III, chairman and chief executive officer, and Marshall N. Morton, senior vice president and chief financial officer, along with Neal F. Fondren, president of the company's newly formed Interactive Media Division, today updated investors on the company's business strategy and financial position at the Mid-Year Media Review in New York City.
For the second quarter 2001, the company reiterated its guidance provided in a June 15 press release that earnings per share are expected to be in the range of 35 cents. The company added that publishing revenues for the second quarter are expected to increase approximately 1.5 percent, including acquisitions, and decrease approximately 6 percent, excluding acquisitions. Broadcast revenues for the second quarter are expected to decrease approximately 8.5 percent. At the same time, expense-reduction initiatives are partially offsetting lower revenues.
For the second quarter to date, excluding acquisitions, Publishing Division expenses are running approximately 1.9 percent above last year, and Broadcast Division expenses are running about 2 percent below last year.
For the full-year 2001, including acquisitions, the company expects revenues to grow approximately 6 percent with expenses increasing 8 percent compared with 2000. This expense comparison includes a 10 percent projected increase in newsprint costs. Corporate expense is expected to increase about 2 percent for the full year.
Also for the full year, the company provided the following estimates:
| (Dollars in Millions) |
2001E |
|
2000A |
| Depreciation |
$52.0 |
|
$43.8 |
| Intangibles Amortization |
61.0 |
|
52.5 |
| Software Amortization |
7.0 |
|
5.2 |
| Interest Expense |
53.0 |
|
42.6 |
| Tax Rate |
41% |
|
38% |
Media General said that, because prospects for a turnaround in advertising revenues are difficult to project, it continues to expect that results for the full-year 2001 will not exceed $2 per share.
Media General's entire presentation from the Mid-Year Media Review will be available at www.mediageneral.com by 5 p.m. EDT.
About Media General
Media General is an independent, publicly owned communications company situated primarily in the Southeast with interests in newspapers, television stations, interactive media and diversified information services. The company's publishing assets include The Tampa Tribune, the Richmond Times-Dispatch, the Winston-Salem Journal and 22 other daily newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina, as well as nearly 100 other periodicals and a 20 percent interest in The Denver Post. Media General's 26 network-affiliated television stations reach more than 30 percent of the television households in the Southeast, and nearly 8 percent of those in the United States. The company's extensive interactive media offerings include more than 50 online enterprises. Media General also has a 33 percent interest in SP Newsprint Co., which operates newsprint mills in Dublin, Ga., and Newberg, Ore.
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.
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