News Releases

Meredith Reports Fiscal 2009 and Fourth Quarter Results
PRNewswire
DES MOINES, Iowa
(NYSE:MDP)

DES MOINES, Iowa, July 29 /PRNewswire-FirstCall/ -- Meredith Corporation (NYSE: MDP), the leading media and marketing company serving American women, today reported a loss of $2.28 per share from continuing operations in fiscal 2009, including $4.31 per share resulting from a non-cash impairment charge and other special charges. Excluding these special charges, earnings per share from continuing operations were $2.03, in-line with previously stated expectations. Revenues in fiscal 2009 were $1.41 billion.

These results compare to fiscal 2008 reported earnings per share from continuing operations of $2.79, or $3.13 per share excluding special charges, on revenues of $1.55 billion.

Meredith recorded two special charges in the fourth quarter of fiscal 2009. The first is an impairment charge of $295 million ($185 million after-tax) related to Broadcasting's FCC licenses and goodwill. This impairment charge is a non-cash charge to earnings; does not affect Meredith's liquidity, cash flows from operating activities or debt covenants; and does not have an impact on Meredith's future operations. This charge was determined in connection with Meredith's annual impairment testing of goodwill and other intangible assets.

The second is a special charge of $5.5 million ($3.4 million after-tax) due primarily to employee severance related to previously announced plans to centralize certain functions across Meredith's television stations. Information on the special charges recorded in fiscal 2009 and fiscal 2008 is available in Tables 1-4 of this press release.

Fourth quarter fiscal 2009 loss per share from continuing operations was $3.64 and revenues were $346 million, versus earnings per share from continuing operations of $0.40 and revenues of $376 million a year ago. Excluding special charges, fiscal 2009 fourth quarter earnings per share from continuing operations were $0.55, also in-line with previously stated expectations, versus earnings per share from continuing operations of $0.75 in the prior-year period.

Meredith made a $100 million debt payment on June 30 2009, reducing its total debt balance to $380 million, a 22 percent reduction from the prior year end. Subsequently, on July 13, 2009, Meredith entered into a new $75 million private placement of debt from a leading life insurance company. The proceeds were used to pay down Meredith's revolving credit facilities - thus resulting in no net incremental debt - and provide Meredith with additional liquidity should attractive investment opportunities arise.

"Despite a challenging advertising climate, we made significant progress on the performance improvement plan put in place at this time last year," said Meredith President and Chief Executive Officer Stephen M. Lacy. "We gained market share, grew new revenue sources, prudently managed our costs and cut debt by more than 20 percent."

FISCAL 2009 PERFORMANCE OVERVIEW

The recession significantly impacted advertising spending throughout fiscal 2009. Meredith's total advertising revenues were $787 million in fiscal 2009, compared to $931 million in fiscal 2008.

However, advertising revenues for Meredith's magazines and related Web sites improved in the second half of fiscal 2009 compared to the first half, as performance improvement measures put in place to counter the weak advertising environment began to take effect. Second-half magazine advertising declined 12 percent from the prior-year period, compared to a drop of 18 percent in the first half of fiscal 2009. Total company online advertising increased 7 percent in the second half of fiscal 2009 after declining approximately 14 percent in the first half.

Broadcasting advertising revenues declined 17 percent in fiscal 2009, as $24 million in political advertising wasn't enough to offset lower non-political advertising, particularly in automotive.

Lacy noted the following fiscal 2009 highlights:

  • Gaining magazine advertising market share - For the full fiscal year, Meredith's share of magazine advertising increased to 10.5 percent from 9.5 percent, according to the most recent data available from Publishers Information Bureau (PIB). Meredith's share grew to 12.8 percent from 10.1 percent in the fourth fiscal quarter.
  • Growing new revenue streams - Revenues from key new revenue sources not dependent on traditional advertising - namely Meredith Integrated Marketing, licensed products, retransmission fees, syndicated programming and video services - increased more than 15 percent.
  • Strengthening consumer connection - Readership for Meredith's major subscription magazines held steady at 110 million, according to Mediamark Research and Intelligence, and magazine circulation profitability grew. Most of Meredith's television stations posted higher ratings, particularly during the March and May sweeps periods. Traffic rose across Meredith's more than 60 Web sites, and sales of licensed products increased.
  • Reducing operating costs - Meredith's total operating costs declined 7 percent in the fourth quarter and were down 5 percent in fiscal 2009, even with a 10 percent increase in paper prices. Excluding acquisitions, costs declined 9 percent in the fourth quarter and were down 6 percent in fiscal 2009. These cost references exclude special charges.
  • Generating strong cash flow - Meredith generated $181 million in cash flow from operations and eliminated $105 million - or 22 percent - of its debt. Meredith also increased its dividend rate by 5 percent to 22 1/2 cents - its 16th consecutive annual dividend increase.

Additionally, Meredith completed a number of strategic initiatives and investments to further strengthen its established and emerging media platforms. These included:

  • Creative investments such as redesigns of Better Homes and Gardens, Ladies' Home Journal, More, Fitness and ReadyMade magazines.
  • The launch of the Meredith Women's Network, one of the largest online networks for women. Central to this strategy were investments in Meredith's flagship Web sites - BHG.com and Parents.com; the Real Girls Media Network, which owns and operates online social communities; and Mixingbowl.com, an online social community targeted at consumers interested in food and cooking. Meredith also completed an online lead-generation agreement with ServiceMagic Inc., a Web site that connects homeowners to contractors.
  • Further expansion of Meredith Integrated Marketing's portfolio of services in July 2009 through an investment in The Hyperfactory, which creates, executes and analyzes mobile strategies and programs for top brands world-wide.
  • Expansion of the Better show, a Meredith-produced syndicated lifestyle television show, to more than 50 markets, including half of the nation's Top 10.

OPERATING DETAIL

Publishing

Fiscal 2009 Publishing operating profit was $151 million, compared to $188 million in the prior-year period. Fiscal 2009 revenues were $1.13 billion versus $1.23 billion, and advertising revenues were $530 million versus $620 million. Fourth quarter fiscal 2009 operating profit was $46 million, compared to operating profit of $25 million. Fourth quarter revenues were $283 million versus $297 million, and advertising revenues were $134 million versus $148 million.

Excluding special charges, fiscal 2009 Publishing operating profit was $159 million, compared to $213 million in the prior-year period, and fourth quarter 2009 operating profit was $48 million versus $50 million.

Advertising performance in the second half of fiscal 2009 improved when compared to the first half due primarily to initiatives to gain market share. Ten of Meredith's 14 measured titles increased their share of advertising revenues in the second half, according to PIB, as Meredith emphasized the broad consumer reach and efficiency of its portfolio. Eight of Meredith's 10 largest advertising categories, including food and beverage, prescription and non-prescription drugs and household supplies, improved in the second half compared to the first half, according to PIB.

Circulation profit and related margin in Meredith's subscription activities increased in fiscal 2009. Total circulation revenues declined 7 percent in fiscal 2009 from a year ago as a result of fewer Special Interest Media titles published and soft retail sales. However, subscription revenues declined just 2 percent during the year. In the fourth quarter, circulation revenues grew slightly, including a gain of 2 percent for subscription revenues.

Interactive advertising revenues declined 5 percent in fiscal 2009; however they rose 17 percent in the fourth quarter. The number of unique visitors to Meredith's Publishing Web sites rose more than 25 percent to 15 million and page views averaged more than 170 million per month in fiscal 2009. The total number of videos viewed per month rose to 1.1 million. Meredith generated 3 million online subscriptions in fiscal 2009, up slightly from fiscal 2008.

"Advertisers and consumers alike recognize the value our brands deliver as exemplified by our advertising market share gains, solid circulation fundamentals and growing online revenue and traffic," Lacy said. "Additionally, we continue to experience growth from businesses that are not based on advertising, including Meredith Integrated Marketing and Brand Licensing."

Meredith Integrated Marketing revenues grew 13 percent in fiscal 2009 compared to the prior-year period. In the fourth quarter, while revenues declined 17 percent, due primarily to certain non-recurring programs recorded in the prior-year period, operating profit grew nearly 15 percent as Meredith Integrated Marketing improved efficiencies. Fiscal 2009 revenue growth was driven by new business won in the past year, including Kraft's Food & Family custom marketing program, and growth from digital acquisitions.

Brand Licensing revenues grew 14 percent in fiscal 2009 from a year ago, driven primarily by the expansion of Meredith's relationship with Walmart. In fiscal 2009, the number of Better Homes and Gardens-branded SKU's doubled to more than 1,000, and the program will expand to Canada in the second half of calendar 2009. In addition, Meredith and Walmart have created the "Editors Choice Paint Colors," a collection of interior paint colors selected by the editors of Better Homes and Gardens, that is being placed in stores now. The paint colors are co-marketed with the Dutch Boy brand at Walmart and coordinate with the home decor products currently available.

Publishing operating costs, excluding special charges, declined 8 percent in the fourth quarter, compared to the prior-year period, and declined 5 percent in fiscal 2009, despite an increase of 10 percent in paper prices.

Broadcasting

Fiscal 2009 Broadcasting operating loss, including special charges, was $258 million, compared to operating profit of $78 million in the prior-year period. Fiscal 2009 revenues were $275 million versus $319 million. Fourth quarter fiscal 2009 operating loss, including special charges, was $292 million, compared to operating profit of $18 million. Fourth quarter revenues were $62 million versus $79 million.

Excluding special charges, fiscal 2009 Broadcasting operating profit was $43 million, compared to $79 million in the prior-year period, and fourth quarter 2009 operating profit was $6 million versus $19 million.

The depressed automotive market significantly impacted Broadcasting's performance. Meredith's automobile advertising revenues declined nearly 45 percent in fiscal 2009, and were down more than 55 percent in the fourth quarter, accounting for approximately half of non-political advertising declines in both periods.

"Despite the current advertising weakness, television remains the most powerful and efficient way for advertisers to reach American consumers," Lacy said. "To combat lower advertising revenues, we are pursuing multi-platform marketing solutions for clients similar to our Publishing business, have reorganized our national sales activities and are centralizing certain functions. We are encouraged by continued growth in our consumer connection, higher revenues at Meredith Video Solutions and increased retransmission fees."

During the May sweeps, several Meredith stations captured a larger share of morning news viewers. Portland, Hartford and Las Vegas continued their #1 positions; Atlanta and Greenville each doubled viewership; and Kansas City increased viewership 24 percent. In late news, where ad rates are the highest, Phoenix's viewership rose 38 percent, Greenville rose 11 percent and Hartford maintained its #1 position. These ratings gains are key to commanding higher revenues for advertising spots into the future.

Revenues at Meredith Video Solutions, Meredith's in-house video production group, rose more than 50 percent in fiscal 2009 from the year-ago period, and were up more than 20 percent in the fiscal fourth quarter. The Better television show, which features content inspired by Meredith's publishing brands, will be carried in more than 50 markets beginning this fall, up from 35 markets in the fall of 2008.

Revenues from retransmission fees more than doubled in fiscal 2009 from the year-ago period, and grew nearly 75 percent in the fiscal fourth quarter. Meredith has successfully negotiated new retransmission agreements with all seven of the major cable operators in its markets.

Meredith continues to implement its plan to reduce expenses and improve efficiency by centralizing certain functions - including master control, traffic and research - across its television stations. Broadcasting operating costs, excluding special charges, declined 5 percent in the fourth quarter, compared to the prior-year period, and were down 3 percent for the full year fiscal 2009.

OTHER FINANCIAL INFORMATION

Meredith generated more than $180 million in cash flow from operations during fiscal 2009, including $42 million in the fourth quarter.

Meredith's total debt was $380 million at June 30, 2009, $105 million less than the prior fiscal year end. Meredith's debt-to-EBITDA ratio was well under existing debt covenants at 1.8 to 1.

On July 13, 2009, Meredith secured a new $75 million private placement of debt from a leading life insurance company. The private placement consists of $50 million due July 2013 and $25 million due July 2014. The proceeds were used to pay down Meredith's revolving credit facilities - thus resulting in no incremental debt. With the new private placement, Meredith's weighted average interest rate on debt is approximately 5.4 percent.

Meredith increased its quarterly dividend rate 5 percent to 22 cents per share in February. Meredith has paid a dividend for 62 consecutive years and has increased its dividend annually for 16 consecutive years. Meredith repurchased approximately 880,000 shares in fiscal 2009 and has 1.5 million shares remaining under current share repurchase authorizations.

Additionally, during the third quarter of fiscal 2009, Meredith reclassified the results of Country Home to discontinued operations.

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 consolidated statements of earnings (loss).

OUTLOOK

Looking at fiscal 2010, Meredith expects that advertising will continue to be impacted by the recession.

In Publishing, with two of three magazine issues closed, fiscal 2010 first quarter advertising revenues are expected to be down in the mid single-digit range. In Broadcasting, with nine weeks left in the first quarter of fiscal 2010, advertising pacings are down 25 percent. By comparison, in the fourth quarter of fiscal 2009, with nine weeks left, pacings were down 32 percent.

Looking at the rest of fiscal 2010, Meredith expects continued improvements in magazine and broadcasting non-political advertising revenues, with moderating declines in the first half of the fiscal year turning to modest growth in the second half. In addition, the company will be cycling against $24 million of net political advertising revenues recorded in the first half of fiscal 2009.

Many of the operating expense savings Meredith accomplished in fiscal 2009 will carry into fiscal 2010, but are expected to be partially offset by approximately $10 million in additional pension expenses due to market performance of pension assets.

Meredith expects its average tax rate to be approximately 43 percent in the first quarter, and 40.5 percent for full fiscal 2010.

Meredith currently expects fiscal first quarter earnings per share to range from $0.30 to $0.35 and full-year fiscal 2010 earnings per share to range from $1.60 to $2.00.

A number of uncertainties remain that may affect Meredith's outlook as stated in this press release for the first fiscal quarter and full year of 2010. These include national economic conditions; overall advertising volatility; the performance of Meredith's retail businesses; paper prices; and postal rates. These and other uncertainties are referenced below under "Safe Harbor" and in certain SEC filings.

CONFERENCE CALL WEBCAST

Meredith will host a conference call on July 29, 2009, at 9:30 a.m. EDT (8:30 a.m. CDT) to discuss fiscal fourth quarter and 2009 results. A live webcast will be accessible to the public on the company's Web site, www.meredith.com, and a replay will be available for one week after the call. A transcript will be available within 48 hours following the conference call at www.meredith.com.

RATIONALE FOR USE AND ACCESS TO NON-GAAP MEASURES

Management uses and presents GAAP and non-GAAP results to evaluate and communicate the performance of the company. Non-GAAP measures should not be construed as alternatives to GAAP measures. EBITDA is a common supplemental measure 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. Meredith 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.

Results excluding the impairment charge and other special charges are also supplemental non-GAAP financial measures. Management believes the special charges are not reflective of Meredith's ongoing business activities. While results excluding the special charges are not a substitute for reported earnings 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 included in the attached tables. The attached consolidated financial statements and reconciliation tables will be made 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's operations. Statements in this announcement that are forward-looking include, but are not limited to, the statements regarding broadcasting pacings and publishing advertising revenues, along with the company's earnings per share outlook for the first fiscal quarter and all of fiscal 2010.

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; the integration of acquired businesses; changes in consumer reading, purchasing and/or television viewing patterns; increases in paper, postage, printing or syndicated programming costs; changes in television network affiliation agreements; technological developments affecting products or methods of distribution; changes in government regulations affecting the company's industries; unexpected changes 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) is the leading media and marketing company serving American women. Meredith combines well-known national brands - including Better Homes and Gardens, Parents, Ladies' Home Journal, Family Circle, American Baby, Fitness and More - with local television brands in fast-growing markets. Meredith is the industry leader in creating content in key consumer interest areas such as home, family, health and wellness and self-development. Meredith uses multiple distribution platforms - including print, television, online, mobile and video - to give consumers content they desire and to deliver the messages of its marketing partners. Additionally, Meredith uses its many assets to create powerful custom marketing solutions for many of the nation's top brands and companies. Meredith has significantly added to its capabilities in this area through the acquisition of cutting-edge companies in areas such as online, word-of-mouth and database marketing.

    Meredith Corporation and Subsidiaries
    Consolidated Statements of Earnings (Loss) (Unaudited)

                                       -------------        --------------
                                       Three Months         Twelve Months
                                       -------------        --------------
    Period Ended June 30,              2009      2008       2009       2008
    ---------------------              ----      ----       ----       ----
    (In thousands except
    per share data)
    Revenues
    Advertising                      $189,316  $222,516   $787,207   $930,598
    Circulation                        69,723    69,465    280,809    300,570
    All other                          86,810    84,289    340,781    321,275
    ---------                          ------    ------    -------    -------
      Total revenues                  345,849   376,270  1,408,797  1,552,443
      --------------                  -------   -------  ---------  ---------
    Operating expenses
    Production, distribution, and
     editorial                        154,977   172,336    646,595    673,607
    Selling, general, and
     administrative                   138,696   154,069    560,219    590,031
    Depreciation and amortization      10,236    13,167     42,582     49,153
    Impairment charge                 294,529         -    294,529          -
    -----------------                 -------   -------  ---------  ---------
      Total operating expenses        598,438   339,572  1,543,925  1,312,791
      ------------------------        -------   -------  ---------  ---------
    Earnings (loss) from operations  (252,589)   36,698   (135,128)   239,652
    Interest income                       308       192        656      1,090
    Interest expense                   (5,079)   (5,106)   (20,777)   (22,390)
    ----------------                   ------    ------    -------    -------
      Earnings (loss) from
       continuing operations before
       income taxes                  (257,360)   31,784   (155,249)   218,352
    Income taxes                      (93,508)   13,221    (52,742)    85,378
    ------------                      -------    ------    -------     ------
    Earnings (loss) from
     continuing operations           (163,852)   18,563   (102,507)   132,974
    Income (loss) from
     discontinued operations, net
     of taxes                             160       596     (4,577)     1,698
    -----------------------------         ---       ---     ------      -----
    Net earnings (loss)             $(163,692)  $19,159  $(107,084)  $134,672
    -------------------             ---------   -------  ---------   --------

    Basic earnings (loss) per share
    Earnings (loss) from
     continuing operations             $(3.64)    $0.41     $(2.28)     $2.83
    Discontinued operations                 -      0.01      (0.10)      0.04
    -----------------------               ---      ----      -----       ----
    Basic earnings (loss) per share    $(3.64)    $0.42     $(2.38)     $2.87
    -------------------------------    ------     -----     ------      -----
    Basic average shares
     outstanding                       45,016    45,957     45,042     46,928
    --------------------               ------    ------     ------     ------

    Diluted earnings (loss)
     per share
    Earnings (loss) from
     continuing operations             $(3.64)    $0.40     $(2.28)     $2.79
    Discontinued operations                 -      0.01      (0.10)      0.04
    -----------------------               ---      ----      -----       ----
    Diluted earnings (loss)
     per share                         $(3.64)    $0.41     $(2.38)     $2.83
    ---------------------------        ------     -----     ------      -----
    Diluted average shares
     outstanding                       45,016    46,177     45,042     47,585
    ----------------------             ------    ------     ------     ------

    Dividends paid per share           $0.225    $0.215     $0.880     $0.800
    ------------------------           ------    ------     ------     ------



    Meredith Corporation and Subsidiaries
    Segment Information (Unaudited)

                                     ------------          -------------
                                     Three Months          Twelve Months
                                     ------------          -------------
    Period Ended June 30,           2009      2008        2009        2008
    ----------------------          ----      ----        ----        ----
    (In thousands)
    Revenues
    Publishing                    $283,366  $297,399  $1,134,261  $1,233,838
    Broadcasting
       Non-political advertising    55,390    73,246     233,533     304,922
       Political advertising           398     1,507      23,519       5,447
       Other revenues                6,695     4,118      17,484       8,236
    -----------------                -----     -----      ------       -----
      Total broadcasting            62,483    78,871     274,536     318,605
    --------------------            ------    ------     -------     -------
    Total revenues                $345,849  $376,270  $1,408,797  $1,552,443
    --------------                --------  --------  ----------  ----------

    Operating profit (loss)
    Publishing                     $45,948   $24,828    $151,017    $188,341
    Broadcasting                  (292,147)   18,030    (257,774)     77,860
    Unallocated corporate           (6,390)   (6,160)    (28,371)    (26,549)
    ----------------------          ------    ------     -------     -------
    Income (loss) from
     operations                  $(252,589)  $36,698   $(135,128)   $239,652
    ------------------           ---------   -------   ---------    --------

    Depreciation and amortization
    Publishing                      $3,590    $4,789     $15,433     $20,373
    Broadcasting                     6,193     7,686      25,181      26,655
    Unallocated corporate              453       692       1,968       2,125
    ----------------------             ---       ---       -----       -----
    Total depreciation and
     amortization                  $10,236   $13,167     $42,582     $49,153
    ----------------------         -------   -------     -------     -------

    EBITDA(1)
    Publishing                     $49,538   $29,617    $166,450    $208,714
    Broadcasting                  (285,954)   25,716    (232,593)    104,515
    Unallocated corporate           (5,937)   (5,468)    (26,403)    (24,424)
    ----------------------          ------    ------     -------     -------
    Total EBITDA(1)              $(242,353)  $49,865    $(92,546)   $288,805
    ---------------              ---------   -------    --------    --------

    Adjusted EBITDA(2)
    Publishing                     $49,538   $29,617    $166,450    $208,714
    Broadcasting                     8,575    25,716      61,936     104,515
    Unallocated corporate           (5,937)   (5,468)    (26,403)    (24,424)
    ----------------------          ------    ------     -------     -------
    Total Adjusted EBITDA(2)       $52,176   $49,865    $201,983    $288,805
    ------------------------       -------   -------    --------    --------

    (1) EBITDA is earnings (loss) from continuing operations before interest,
        taxes, depreciation, and amortization.
    (2) Adjusted EBITDA is earnings from continuing operations before
        interest, taxes, depreciation, amortization, and impairment charge.



    Meredith Corporation and Subsidiaries
    Condensed Consolidated Balance Sheets (Unaudited)

                                                        ----------  ----------
                                                          June 30,    June 30,
    Assets                                                  2009        2008
    ------                                                  ----        ----
    (In thousands)
    Current assets
    Cash and cash equivalents                             $27,910     $37,644
    Accounts receivable, net                              192,367     230,978
    Inventories                                            28,151      44,085
    Current portion of subscription acquisition costs      60,017      59,939
    Current portion of broadcast rights                     8,297      10,779
    Other current assets                                   23,398      19,665
    --------------------                                   ------      ------
    Total current assets                                  340,140     403,090
    --------------------                                  -------     -------
    Property, plant, and equipment                        444,904     446,935
    Less accumulated depreciation                        (253,597)   (247,147)
    -----------------------------                        --------    --------
    Net property, plant, and equipment                    191,307     199,788
    Subscription acquisition costs                         63,444      60,958
    Broadcast rights                                        4,545       7,826
    Other assets                                           45,907      74,472
    Intangible assets, net                                561,581     781,154
    Goodwill                                              462,379     532,332
    --------                                              -------     -------
    Total assets                                       $1,669,303  $2,059,620
    ------------                                       ----------  ----------

    Liabilities and Shareholders' Equity
    ------------------------------------
    Current liabilities
    Current portion of long-term debt                          $-     $75,000
    Current portion of long-term broadcast rights
     payable                                               10,560      11,141
    Accounts payable                                       86,381      79,028
    Accrued expenses and other liabilities                 81,544     102,707
    Current portion of unearned subscription revenues     170,731     175,261
    -------------------------------------------------     -------     -------
    Total current liabilities                             349,216     443,137
    Long-term debt                                        380,000     410,000
    Long-term broadcast rights payable                     11,851      17,186
    Unearned subscription revenues                        148,393     157,872
    Deferred income taxes                                  64,322     139,598
    Other noncurrent liabilities                          106,138     103,972
    ----------------------------                          -------     -------
    Total liabilities                                   1,059,920   1,271,765
    -----------------                                   ---------   ---------
    Shareholders' equity
    Common stock                                           35,934      36,295
    Class B stock                                           9,133       9,181
    Additional paid-in capital                             53,938      52,693
    Retained earnings                                     542,006     701,205
    Accumulated other comprehensive loss                  (31,628)    (11,519)
    ------------------------------------                  -------     -------
    Total shareholders' equity                            609,383     787,855
    --------------------------                            -------     -------
    Total liabilities and shareholders' equity         $1,669,303  $2,059,620
    ------------------------------------------         ----------  ----------



    Meredith Corporation and Subsidiaries
    Condensed Consolidated Statements of Cash Flows (Unaudited)


    ----------------------------                           ----      ----
    Twelve Months Ended June 30,                           2009      2008
    ----------------------------                           ----      ----
    (In thousands)
    Net cash provided by operating activities            $180,920  $255,964
    -----------------------------------------            --------  --------

    Cash flows from investing activities
      Acquisitions of businesses                           (6,218)  (73,645)
      Additions to property, plant, and equipment         (23,475)  (29,620)
      Proceeds from dispositions of assets                    636     7,855
      ------------------------------------                    ---     -----
    Net cash used in investing activities                 (29,057)  (95,410)
    --------------------------------------                -------   -------

    Cash flows from financing activities
      Proceeds from issuance of long-term debt            145,000   335,000
      Repayments of long-term debt                       (250,000) (325,000)
      Purchases of Company stock                          (21,801) (150,377)
      Dividends paid                                      (39,730)  (37,344)
      Proceeds from common stock issued                     4,278    14,265
      Excess tax benefits from share-based payments           906     1,475
      Other                                                  (250)     (149)
      -----                                                  ----      ----
    Net cash used in financing activities                (161,597) (162,130)
    --------------------------------------               --------  --------
    Net decrease in cash and cash equivalents              (9,734)   (1,576)
    Cash and cash equivalents at beginning of year         37,644    39,220
    ----------------------------------------------         ------    ------
    Cash and cash equivalents at end of year              $27,910   $37,644
    ----------------------------------------              -------   -------



    Meredith Corporation and Subsidiaries                              Table 1
    Supplemental Disclosures Regarding Non-GAAP Financial Measures

    Special Charge - Meredith recorded two special charges in the fourth
    quarter of fiscal 2009.  The first is an impairment charge related to
    Broadcasting's FCC licenses and goodwill.  The second is a special charge
    due primarily to employee severance related to previously announced plans
    to centralize certain functions across its television stations.  During
    the second quarter of fiscal 2009, Meredith recorded a special charge
    which relates primarily to the cost of a companywide workforce reduction
    of approximately 250 employees; the closure of Country Home magazine,
    effective with the March 2009 issue; and the relocation of the creative
    functions of the ReadyMade brand and Parents.com to Des Moines.  Please
    see Meredith's press release dated January 8, 2009, for additional
    information relating to the second quarter special charge.

    The following table shows results of operations excluding the special
    charges and as reported with the difference being the special charges.
    Results of operations excluding the special charges are non-GAAP
    measures. Management's rationale for presenting non-GAAP measures is
    included in the text of this earnings release.

    --------------------------                        -----------
    Period Ended June 30, 2009                       Three Months
    --------------------------                       -------------
                                         Excluding
                                          Special       Special         As
                                           Charge       Charges      Reported
    -----------------------------------  ----------     --------     --------
    (In thousands except per share data)
    Revenues
    Advertising                            $189,316         $-       $189,316
    Circulation                              69,723          -         69,723
    All other                                86,810          -         86,810
    ---------                                ------        ---         ------
      Total revenues                        345,849          -        345,849
      --------------                        -------        ---        -------
    Operating expenses
    Production, distribution, and
     editorial                              154,977          -        154,977
    Selling, general, and administrative    133,171      5,525  (a)   138,696
    Depreciation and amortization            10,236          -         10,236
    Impairment charge                             -    294,529  (b)   294,529
    -----------------                           ---    -------  ---   -------
      Total operating expenses              298,384    300,054        598,438
      ------------------------              -------    -------        -------
    Income (loss) from operations            47,465   (300,054)      (252,589)
    Interest income                             308          -            308
    Interest expense                         (5,079)         -         (5,079)
    ----------------                         ------        ---         ------
      Earnings (loss) before income
       taxes                                 42,694   (300,054)      (257,360)
    Income taxes                             18,047   (111,555)       (93,508)
    ------------                             ------   --------        -------
    Earnings (loss) from continuing
     operations                              24,647   (188,499)      (163,852)
    Income (loss) from discontinued
     operations, net of taxes                   160          -            160
    -------------------------------             ---        ---            ---
    Net earnings (loss)                     $24,807  $(188,499)     $(163,692)
    -------------------                     -------  ---------      ---------

    Basic earnings (loss) per share
    Earnings (loss) from continuing
     operations                               $0.55     $(4.19)        $(3.64)
    Discontinued operations                       -          -              -
    -----------------------                     ---        ---            ---
    Basic earnings (loss) per share           $0.55     $(4.19)        $(3.64)
    -------------------------------           -----     ------         ------
    Basic average shares outstanding         45,016     45,016         45,016
    --------------------------------         ------     ------         ------

    Diluted earnings (loss) per share
    Earnings (loss) from continuing
     operations                               $0.55     $(4.19)        $(3.64)
    Discontinued operations                       -          -              -
    -----------------------                     ---        ---            ---
    Diluted earnings (loss) per share         $0.55     $(4.19)        $(3.64)
    ---------------------------------         -----     ------         ------
    Diluted average shares outstanding       45,016     45,016         45,016
    ----------------------------------       ------     ------         ------



    Period Ended June 30, 2009                      Twelve Months
    --------------------------                      --------------
                                         Excluding
                                          Special       Special         As
                                           Charge       Charges      Reported
    -----------------------------------  ----------     --------     --------
    (In thousands except per share data)
    Revenues
    Advertising                            $787,207         $-       $787,207
    Circulation                             280,809          -        280,809
    All other                               340,781          -        340,781
    ---------                               -------        ---        -------
      Total revenues                      1,408,797          -      1,408,797
      --------------                      ---------        ---      ---------
    Operating expenses
    Production, distribution, and
     editorial                              646,595          -        646,595
    Selling, general, and administrative    545,661     14,558  (a)   560,219
    Depreciation and amortization            42,582          -         42,582
    Impairment charge                             -    294,529  (b)   294,529
    -----------------                           ---    -------  ---   -------
      Total operating expenses            1,234,838    309,087      1,543,925
      ------------------------            ---------    -------      ---------
    Income (loss) from operations           173,959   (309,087)      (135,128)
    Interest income                             656          -            656
    Interest expense                        (20,777)         -        (20,777)
    ----------------                        -------        ---        -------
      Earnings (loss) before income
       taxes                                153,838   (309,087)      (155,249)
    Income taxes                             62,335   (115,077)       (52,742)
    ------------                             ------   --------        -------
    Earnings (loss) from continuing
     operations                              91,503   (194,010)      (102,507)
    Income (loss) from discontinued
     operations, net of taxes                  (453)    (4,124) (c)    (4,577)
    -------------------------------            ----     ------  ---    ------
    Net earnings (loss)                     $91,050  $(198,134)     $(107,084)
    -------------------                     -------  ---------      ---------

    Basic earnings (loss) per share
    Earnings (loss) from continuing
     operations                               $2.03     $(4.31)        $(2.28)
    Discontinued operations                   (0.01)     (0.09)         (0.10)
    -----------------------                   -----      -----          -----
    Basic earnings (loss) per share           $2.02     $(4.40)        $(2.38)
    -------------------------------           -----     ------         ------
    Basic average shares outstanding         45,042     45,042         45,042
    --------------------------------         ------     ------         ------

    Diluted earnings (loss) per share
    Earnings (loss) from continuing
     operations                               $2.03     $(4.31)        $(2.28)
    Discontinued operations                   (0.01)     (0.09)         (0.10)
    -----------------------                   -----      -----          -----
    Diluted earnings (loss) per share         $2.02     $(4.40)        $(2.38)
    ---------------------------------         -----     ------         ------
    Diluted average shares outstanding       45,042     45,042         45,042
    ----------------------------------       ------     ------         ------

    (a) Severance expense
    (b) Charge for impairment of FCC licenses and Broadcasting goodwill
    (c) Severance expense and the write-down of art and manuscript inventory
        and subscription acquisition costs, net of taxes



    Meredith Corporation and Subsidiaries                             Table 2
    Supplemental Disclosures Regarding Non-GAAP Financial Measures

    The following table shows fiscal 2009 results of operations excluding the
    special charges and as reported with the difference being the special
    charges. Results of operations excluding the special charges are non-GAAP
    measures. Management's rationale for presenting non-GAAP measures is
    included in the text of this earnings release.

    --------------------------                      -----------
    Period Ended June 30, 2009                     Three Months
    --------------------------                     -------------
                                      Excluding
                                       Special       Special         As
                                        Charge       Charges       Reported
    -------------                     ----------     --------      --------
    (In thousands)
    Revenues
    Publishing                          $283,366         $-        $283,366
    Broadcasting
       Non-political advertising          55,390          -          55,390
       Political advertising                 398          -             398
       Other revenues                      6,695          -           6,695
    -----------------                      -----        ---           -----
        Total broadcasting                62,483          -          62,483
        ------------------                ------        ---          ------
    Total revenues                      $345,849         $-        $345,849
    --------------                      --------        ---        --------

    Operating profit (loss)
    Publishing                           $47,679    $(1,731) (a)    $45,948
    Broadcasting                           6,176   (298,323) (b)   (292,147)
    Unallocated corporate                 (6,390)         -          (6,390)
    ----------------------                ------        ---          ------
    Income (loss) from operations        $47,465  $(300,054)      $(252,589)
    -----------------------------        -------  ---------       ---------

    Depreciation and amortization
    Publishing                            $3,590         $-          $3,590
    Broadcasting                           6,193          -           6,193
    Unallocated corporate                    453          -             453
    ----------------------                   ---        ---             ---
    Total depreciation and
     amortization                        $10,236         $-         $10,236
    ----------------------               -------        ---         -------

    EBITDA(1)
    Publishing                           $51,269    $(1,731) (a)    $49,538
    Broadcasting                          12,369   (298,323) (b)   (285,954)
    Unallocated corporate                 (5,937)         -          (5,937)
    ----------------------                ------        ---          ------
    Total EBITDA(1)                      $57,701  $(300,054)      $(242,353)
    -------------                        -------  ---------       ---------



    Period Ended June 30, 2009                    Twelve Months
    --------------------------                    --------------
                                      Excluding
                                       Special       Special          As
                                        Charge       Charges       Reported
    -------------                     ----------     --------      --------
    (In thousands)
    Revenues
    Publishing                        $1,134,261         $-      $1,134,261
    Broadcasting
       Non-political advertising         233,533          -         233,533
       Political advertising              23,519          -          23,519
       Other revenues                     17,484          -          17,484
    -----------------                     ------        ---          ------
        Total broadcasting               274,536          -         274,536
        ------------------               -------        ---         -------
    Total revenues                    $1,408,797         $-      $1,408,797
    --------------                    ----------        ---      ----------

    Operating profit (loss)
    Publishing                          $158,788    $(7,771) (a)   $151,017
    Broadcasting                          42,562   (300,336) (b)   (257,774)
    Unallocated corporate                (27,391)      (980) (c)    (28,371)
    ----------------------               -------       ----  ---    -------
    Income (loss) from operations       $173,959  $(309,087)      $(135,128)
    -----------------------------       --------  ---------       ---------

    Depreciation and amortization
    Publishing                           $15,433         $-         $15,433
    Broadcasting                          25,181          -          25,181
    Unallocated corporate                  1,968          -           1,968
    ----------------------                 -----        ---           -----
    Total depreciation and
     amortization                        $42,582         $-         $42,582
    ----------------------               -------        ---         -------

    EBITDA(1)
    Publishing                          $174,221    $(7,771) (a)   $166,450
    Broadcasting                          67,743   (300,336) (b)   (232,593)
    Unallocated corporate                (25,423)      (980) (c)    (26,403)
    ----------------------               -------       ----  ---    -------
    Total EBITDA(1)                     $216,541  $(309,087)       $(92,546)
    -------------                       --------  ---------        --------

    (1) EBITDA is earnings (loss) from continuing operations before interest,
      taxes, depreciation, and amortization.

    (a) Severance expense for Publishing operations
    (b) Impairment of FCC licenses and goodwill, write-down of assets due to
        consolidation of certain Broadcasting operations, and severance
        expense for Broadcasting operations
    (c) Severance expense for Corporate personnel



    Meredith Corporation and Subsidiaries                              Table 3
    Supplemental Disclosures Regarding Non-GAAP Financial Measures

    Special Charge - During the fourth quarter of fiscal 2008, Meredith
    recorded a special charge which related primarily to further focusing the
    scope of its book operations. The special charge included adjusting
    certain book royalties, art and editorial, and inventory accounts, as well
    as severance for eliminated positions in book and elsewhere in the
    Company. See Meredith's press release dated June 5, 2008, for additional
    information relating to the special charge.

    The following table shows results of operations excluding the special
    charge and as reported with the difference being the special charge.
    Results of operations excluding the special charge are non-GAAP measures.
    Management's rationale for presenting non-GAAP measures is included in the
    text of this earnings release.

    --------------------------                       ------------
    Period Ended June 30, 2008                       Three Months
    --------------------------                       ------------
                                           Excluding
                                            Special     Special          As
                                             Charge      Charge       Reported
    -----------------------------------    ---------    --------      --------
    (In thousands except per share data)
    Revenues
    Advertising                             $222,516        $-       $222,516
    Circulation                               69,465         -         69,465
    All other                                 92,968    (8,679) (a)    84,289
    ---------                                 ------    ------  ---    ------
      Total revenues                         384,949    (8,679)       376,270
      --------------                         -------    ------        -------
    Operating expenses
    Production, distribution, and
     editorial                               167,850     4,486  (b)   172,336
    Selling, general, and administrative     140,803    13,266  (c)   154,069
    Depreciation and amortization             13,167         -         13,167
    -----------------------------             ------       ---         ------
      Total operating expenses               321,820    17,752        339,572
      ------------------------               -------    ------        -------
    Income from operations                    63,129   (26,431)        36,698
    Interest income                              192         -            192
    Interest expense                          (5,106)        -         (5,106)
    ----------------                          ------       ---         ------
      Earnings before income taxes            58,215   (26,431)        31,784
    Income taxes                              23,555   (10,334)        13,221
    ------------                              ------   -------         ------
    Earnings from continuing operations       34,660   (16,097)        18,563
    Income  from discontinued
     operations, net of taxes                    596         -            596
    -------------------------                    ---       ---            ---
    Net earnings                             $35,256  $(16,097)       $19,159
    ------------                             -------  --------        -------

    Basic earnings per share
    Earnings from continuing operations        $0.76    $(0.35)         $0.41
    Discontinued operations                     0.01         -           0.01
    -----------------------                     ----       ---           ----
    Basic earnings per share                   $0.77    $(0.35)         $0.42
    ------------------------                   -----    ------          -----
    Basic average shares outstanding          45,957    45,957         45,957
    --------------------------------          ------    ------         ------

    Diluted earnings per share
    Earnings from continuing operations        $0.75    $(0.35)         $0.40
    Discontinued operations                     0.01         -           0.01
    -----------------------                     ----       ---           ----
    Diluted earnings per share                 $0.76    $(0.35)         $0.41
    --------------------------                 -----    ------          -----
    Diluted average shares outstanding        46,177    46,177         46,177
    ----------------------------------        ------    ------         ------



    Period Ended June 30, 2008                       Twelve Months
    --------------------------                       --------------
                                           Excluding
                                            Special     Special         As
                                             Charge      Charge      Reported
    -----------------------------------    ---------    --------     --------
    (In thousands except per share data)
    Revenues
    Advertising                             $930,598        $-       $930,598
    Circulation                              300,570         -        300,570
    All other                                329,954    (8,679) (a)   321,275
    ---------                                -------    ------  ---   -------
      Total revenues                       1,561,122    (8,679)     1,552,443
      --------------                       ---------    ------      ---------
    Operating expenses
    Production, distribution, and
     editorial                               669,121     4,486  (b)   673,607
    Selling, general, and administrative     576,765    13,266  (c)   590,031
    Depreciation and amortization             49,153         -         49,153
    -----------------------------             ------       ---         ------
      Total operating expenses             1,295,039    17,752      1,312,791
      ------------------------             ---------    ------      ---------
    Income from operations                   266,083   (26,431)       239,652
    Interest income                            1,090         -          1,090
    Interest expense                         (22,390)        -        (22,390)
    ----------------                         -------       ---        -------
      Earnings before income taxes           244,783   (26,431)       218,352
    Income taxes                              95,712   (10,334)        85,378
    ------------                              ------   -------         ------
    Earnings from continuing operations      149,071   (16,097)       132,974
    Income  from discontinued
     operations, net of taxes                  1,698         -          1,698
    -------------------------                  -----       ---          -----
    Net earnings                            $150,769  $(16,097)      $134,672
    ------------                            --------  --------       --------

    Basic earnings per share
    Earnings from continuing operations        $3.17    $(0.34)         $2.83
    Discontinued operations                     0.04         -           0.04
    -----------------------                     ----       ---           ----
    Basic earnings per share                   $3.21    $(0.34)         $2.87
    ------------------------                   -----    ------          -----
    Basic average shares outstanding          46,928    46,928         46,928
    --------------------------------          ------    ------         ------

    Diluted earnings per share
    Earnings from continuing operations        $3.13    $(0.34)         $2.79
    Discontinued operations                     0.04         -           0.04
    -----------------------                     ----       ---           ----
    Diluted earnings per share                 $3.17    $(0.34)         $2.83
    --------------------------                 -----    ------          -----
    Diluted average shares outstanding        47,585    47,585         47,585
    ----------------------------------        ------    ------         ------

    (a) Increase in book sales return allowance
    (b) Write-down of book inventory and editorial prepaid expenses
    (c) Severance expense, write-down of book royalties, and bad debt reserve
        for Home Interiors Group receivable



    Meredith Corporation and Subsidiaries                             Table 4
    Supplemental Disclosures Regarding Non-GAAP Financial Measures

    The following table shows fiscal 2008 results of operations excluding the
    special charge and as reported with the difference being the special
    charge. Results of operations excluding the special charge are non-GAAP
    measures. Management's rationale for presenting non-GAAP measures is
    included in the text of this earnings release.

    --------------------------                     ------------
    Period Ended June 30, 2008                     Three Months
    --------------------------                     -------------
                                        Excluding
                                         Special                        As
                                          Charge   Special Charge    Reported
    -------------                       ---------  --------------    --------
    (In thousands)
    Revenues
    Publishing                           $306,078    $(8,679) (a)   $297,399
    Broadcasting
       Non-political advertising           73,246          -          73,246
       Political advertising                1,507          -           1,507
       Other revenues                       4,118          -           4,118
    -----------------                       -----        ---           -----
        Total broadcasting                 78,871          -          78,871
        ------------------                 ------        ---          ------
    Total revenues                       $384,949    $(8,679)       $376,270
    --------------                       --------    -------        --------

    Operating profit
    Publishing                            $49,695   $(24,867) (b)    $24,828
    Broadcasting                           19,449     (1,419) (c)     18,030
    Unallocated corporate                  (6,015)      (145) (d)     (6,160)
    ----------------------                 ------       ----  ---     ------
    Income from operations                $63,129   $(26,431)        $36,698
    ----------------------                -------   --------         -------

    Depreciation and amortization
    Publishing                             $4,789         $-          $4,789
    Broadcasting                            7,686          -           7,686
    Unallocated corporate                     692          -             692
    ----------------------                    ---        ---             ---
    Total depreciation and
     amortization                         $13,167         $-         $13,167
    ----------------------                -------        ---         -------

    EBITDA(1)
    Publishing                            $54,484   $(24,867) (b)    $29,617
    Broadcasting                           27,135     (1,419) (c)     25,716
    Unallocated corporate                  (5,323)      (145) (d)     (5,468)
    ----------------------                 ------       ----  ---     ------
    Total EBITDA(1)                       $76,296   $(26,431)        $49,865
    -------------                         -------   --------         -------



    Period Ended June 30, 2008                     Twelve Months
    --------------------------                     --------------
                                        Excluding
                                         Special                        As
                                          Charge   Special Charge    Reported
    -------------                       ---------  --------------    --------
    (In thousands)
    Revenues
    Publishing                         $1,242,517    $(8,679) (a) $1,233,838
    Broadcasting
       Non-political advertising          304,922          -         304,922
       Political advertising                5,447          -           5,447
       Other revenues                       8,236          -           8,236
    -----------------                       -----        ---           -----
        Total broadcasting                318,605          -         318,605
        ------------------                -------        ---         -------
    Total revenues                     $1,561,122    $(8,679)     $1,552,443
    --------------                     ----------    -------      ----------

    Operating profit
    Publishing                           $213,208   $(24,867) (b)   $188,341
    Broadcasting                           79,279     (1,419) (c)     77,860
    Unallocated corporate                 (26,404)      (145) (d)    (26,549)
    ----------------------                -------       ----  ---    -------
    Income from operations               $266,083   $(26,431)       $239,652
    ----------------------               --------   --------        --------

    Depreciation and amortization
    Publishing                            $20,373         $-         $20,373
    Broadcasting                           26,655          -          26,655
    Unallocated corporate                   2,125          -           2,125
    ----------------------                  -----        ---           -----
    Total depreciation and
     amortization                         $49,153         $-         $49,153
    ----------------------                -------        ---         -------

    EBITDA(1)
    Publishing                           $233,581   $(24,867) (b)   $208,714
    Broadcasting                          105,934     (1,419) (c)    104,515
    Unallocated corporate                 (24,279)      (145) (d)    (24,424)
    ----------------------                -------       ----  ---    -------
    Total EBITDA(1)                      $315,236   $(26,431)       $288,805
    ---------------                      --------   --------        --------

    (1) EBITDA is earnings from continuing operations before interest, taxes,
        depreciation, and amortization.

    (a) Increase in book sales return allowance
    (b) Increase in book sales return allowance; write-down of book inventory,
        book royalty, and editorial prepaid expenses; bad debt reserve for
        Home Interiors Group receivables; and severance expense for Publishing
        operations
    (c) Severance expense for Broadcasting operations
    (d) Severance expense for Corporate personnel



    Meredith Corporation and Subsidiaries                              Table 5
    Supplemental Disclosures Regarding Non-GAAP Financial Measures

    EBITDA
    Consolidated EBITDA, which is reconciled to earnings (loss) from
    continuing operations in the following tables, is defined as earnings
    (loss) from continuing operations before interest, taxes, depreciation,
    and amortization.
    Segment EBITDA is a measure of segment earnings (loss) before depreciation
    and amortization.

                                  Three Months Ended June 30, 2009
                                  --------------------------------
                                                     Unallocated
                           Publishing Broadcasting    Corporate     Total
    -------------          ---------- ------------   -----------    -----
    (In thousands)
    Operating profit
     (loss)                   $45,948    $(292,147)      $(6,390) $(252,589)
    Depreciation and
     amortization               3,590        6,193           453     10,236
                                -----        -----           ---     ------
    EBITDA                    $49,538    $(285,954)      $(5,937)  (242,353)
                              -------    ---------       -------
    Less:
    Depreciation and amortization                                   (10,236)
    Net interest expense                                             (4,771)
    Income taxes                                                     93,508
                                                                     ------
    Earnings (loss) from continuing operations                    $(163,852)
    ------------------------------------------                      -------



                                    Three Months Ended June 30, 2008
                                    --------------------------------
                                                     Unallocated
                           Publishing Broadcasting    Corporate     Total
    -------------          ---------- ------------   -----------    -----
    (In thousands)
    Operating profit          $24,828      $18,030       $(6,160)   $36,698
    Depreciation and
     amortization               4,789        7,686           692     13,167
                                -----        -----           ---     ------
    EBITDA                    $29,617      $25,716       $(5,468)    49,865
                              -------      -------       -------
    Less:
    Depreciation and amortization                                   (13,167)
    Net interest expense                                             (4,914)
    Income taxes                                                    (13,221)
                                                                    -------
    Earnings from continuing operations                             $18,563
    -----------------------------------                             -------



                                 Twelve Months Ended June 30, 2009
                                 ---------------------------------
                                                     Unallocated
                           Publishing Broadcasting    Corporate     Total
    -------------          ---------- ------------   -----------    -----
    (In thousands)
    Operating profit
     (loss)                  $151,017    $(257,774)     $(28,371) $(135,128)
    Depreciation and
     amortization              15,433       25,181         1,968     42,582
                               ------       ------         -----     ------
    EBITDA                   $166,450    $(232,593)     $(26,403)   (92,546)
                             --------    ---------      --------
    Less:
    Depreciation and amortization                                   (42,582)
    Net interest expense                                            (20,121)
    Income taxes                                                     52,742
                                                                     ------
    Earnings (loss) from continuing operations                    $(102,507)
    ------------------------------------------                    ---------


                                 Twelve Months Ended June 30, 2008
                                 ---------------------------------
                                                     Unallocated
                           Publishing Broadcasting    Corporate     Total
    -------------          ---------- ------------   -----------    -----
    (In thousands)
    Operating profit         $188,341      $77,860      $(26,549)  $239,652
    Depreciation and
     amortization              20,373       26,655         2,125     49,153
                               ------       ------         -----     ------
    EBITDA                   $208,714     $104,515      $(24,424)   288,805
                             --------     --------      --------
    Less:
    Depreciation and amortization                                   (49,153)
    Net interest expense                                            (21,300)
    Income taxes                                                    (85,378)
                                                                    -------
    Earnings from continuing operations                            $132,974
    -----------------------------------                            --------


                                                                     Table 6
    Adjusted EBITDA
    Consolidated adjusted EBITDA, which is reconciled to earnings (loss) from
    continuing operations in the following tables, is defined as earnings
    (loss) from continuing operations before interest, taxes, depreciation,
    amortization and impairment charge.
    Segment adjusted EBITDA is a measure of segment earnings (loss) before
    depreciation, amortization, and impairment charge.

                                   Three Months Ended June 30, 2009
                                   --------------------------------
                                                     Unallocated
                           Publishing Broadcasting    Corporate     Total
    -------------          ---------- ------------   -----------    -----
    (In thousands)
    Operating profit
     (loss)                   $45,948    $(292,147)      $(6,390) $(252,589)
    Depreciation and
     amortization               3,590        6,193           453     10,236
    Impairment charge               -      294,529             -    294,529
                                  ---      -------           ---    -------
    Adjusted EBITDA           $49,538       $8,575       $(5,937)    52,176
                              -------       ------       -------
    Less:
    Depreciation and amortization                                   (10,236)
    Impairment charge                                              (294,529)
    Net interest expense                                             (4,771)
    Income taxes                                                     93,508
                                                                     ------
    Earnings (loss) from
     continuing operations                                        $(163,852)
    ----------------------                                        ---------



                                    Twelve Months Ended June 30, 2009
                                    --------------------------------
                                                     Unallocated
                           Publishing Broadcasting    Corporate     Total
    -------------          ---------- ------------   -----------    -----
    (In thousands)
    Operating profit
     (loss)                  $151,017    $(257,774)     $(28,371) $(135,128)
    Depreciation and
     amortization              15,433       25,181         1,968     42,582
    Impairment charge               -      294,529             -    294,529
                                  ---      -------           ---    -------
    Adjusted EBITDA          $166,450      $61,936      $(26,403)   201,983
                             --------      -------      --------
    Less:
    Depreciation and amortization                                   (42,582)
    Impairment charge                                              (294,529)
    Net interest expense                                            (20,121)
    Income taxes                                                     52,742
                                                                     ------
    Earnings (loss) from
     continuing operations                                        $(102,507)
    ----------------------                                        ---------



SOURCE Meredith Corporation

SOURCE: Meredith Corporation

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

Key Media Contacts
Art Slusark
Chief Communications Officer
515.284.3404
Jill Davison
National Media Group
212.522.0105