print email rss pdf

MEDIA RELATIONS

Key Media Contacts
Art Slusark
Corporate
515.284.3404
Liz Malone
Senior Publicist
212-551-7172

more >

News Releases

Meredith Fiscal 2010 Third Quarter Earnings Rise Over 30 Percent

Company Delivers Revenue and Profit Growth Across All Major Businesses

Apr 28, 2010
8:00am

DES MOINES, Iowa, April 28 /PRNewswire-FirstCall/ -- Meredith Corporation (NYSE: MDP), the leading media and marketing company serving American women, today reported fiscal 2010 third quarter earnings per share grew more than 30 percent to $0.73 from $0.56 in the prior year.  Total revenues increased 5 percent to $353 million.

Fiscal 2010 third quarter earnings included a net benefit of $0.04 per share from special items, primarily the resolution of an income tax contingency.  Excluding these special items, earnings per share from continuing operations increased 25 percent to $0.69.

"We're pleased to deliver revenue and operating profit growth across all of our major businesses, particularly in an increasingly competitive marketplace," said Meredith Chairman and Chief Executive Officer Stephen M. Lacy. "Additionally, we continued to increase our connection to the American consumer across a variety of platforms."

Highlights from Meredith's fiscal 2010 third quarter included:

  • Advertising revenue growth in the National and Local Media groups.  Both groups outperformed their respective industries and continued to gain advertising market share.
  • Double-digit revenue increases in non-advertising based activities including integrated marketing, brand licensing, retransmission fees and video content creation.  
  • Further debt reduction of $35 million, bringing fiscal 2010 year-to-date debt reduction to $65 million.  

"While our advertising growth was encouraging, we are still well below historic levels established prior to the recession in both our national and local businesses," Lacy said. "The marketplace remains very volatile on both a month-to-month and client-by-client basis.  Our competitive advantage lies in the strength of our brands and the relevance of our content."

For the first nine months of fiscal 2010, earnings per share increased 24 percent to $1.55 from $1.25 in the prior year.  Excluding special items in both periods (see Tables 1-4), earnings per share increased to $1.52 from $1.46.  Revenues were $1.02 billion, compared to $1.06 billion.  Meredith recorded $18 million less ($0.24 per share) in net political advertising in the first nine months of fiscal 2010 (a non-political year).  Total company operating expenses declined 5 percent.

OPERATING DETAIL

National Media Group

Fiscal 2010 third quarter National Media Group operating profit increased 6 percent to $51 million from $48 million in the prior year.  Revenues increased 2 percent to $285 million from $280 million.  

Looking at third-quarter advertising performance:

  • Total advertising revenues grew 4 percent to $137 million led by Meredith's largest titles Better Homes and Gardens, Family Circle and Parents.  
  • Share of overall magazine industry advertising revenues reached 12.4 percent, up from 11.2 percent in the prior year, according to the latest data from the Publishers Information Bureau.  Additionally, Meredith's market share as measured against its 28-title competitive set increased to 40.6 percent, up from 39.2 percent.
  • Online advertising revenues at Meredith Interactive rose more than 20 percent.

Meredith's consumer connection strengthened during the quarter, based on several key measurements.  Circulation revenues rose more than 2 percent, due to an increase in newsstand sales.  Monthly average unique visitors across Meredith's National Media Group Web sites rose more than 30 percent to 20 million, and monthly page views averaged more than 230 million.  

Meredith Integrated Marketing revenues increased 10 percent in the quarter, led by growth in digital initiatives on behalf of existing and new clients, particularly in the pharmaceutical industry.  Brand Licensing revenues grew nearly 50 percent, due primarily to an increase in sales of Better Homes and Gardens' branded products at Walmart stores.  

"Along with advertising growth in our core magazine business, we are pleased that our highly sought-after digital marketing capabilities are deepening existing client relationships and winning new business," Lacy said.

For the first nine months of fiscal 2010, operating profit increased 15 percent to $121 million from $105 million in the prior year.  Total revenues were $817 million, compared to $851 million, and advertising revenues were $392 million, down slightly from the prior year.  Operating expenses decreased 7 percent.

Local Media Group

Fiscal 2010 third quarter Local Media Group operating profit was $13 million, up significantly from $1 million in the prior year.  Revenues increased 20 percent to $69 million from $57 million.  

Looking at third-quarter advertising performance:

  • Non-political advertising revenues grew 16 percent, led by improved performance in the automotive, professional services and retail categories.
  • Meredith stations in all 10 of its television markets delivered growth, led by strong performances in Atlanta, Phoenix and Hartford.  
  • Meredith outperformed the industry according to the most recent data available from the Television Bureau of Advertising.  

Several Meredith television stations delivered improved ratings during the February sweeps.  Atlanta doubled morning news ratings, while Hartford and Greenville posted double-digit ratings gains.  In evening news, Hartford, Kansas City, Greenville and Las Vegas all grew ratings.  

Revenues from retransmission fees rose nearly 15 percent in the third quarter.  Revenues also grew at Meredith Video Studios, driven primarily by custom video projects for corporate clients. Also, the daily Better television show will increase its carriage to more than 60 markets reaching nearly 50 percent of U.S. television households.

"Our Local Media business delivered significantly improved results across the board, a reflection of improving market conditions and success at executing our performance improvement initiatives," Lacy said. "Additionally, it speaks to broadcast television's unparalleled ability to deliver advertising messages to mass audiences in local markets."

For the first nine months of fiscal 2010, operating profit was $32 million, compared to $34 million in the prior year, primarily due to $18 million less in net political advertising revenues.  Total revenues were $205 million, compared to $212 million.  Non-political advertising revenues increased 2 percent to $182 million from $178 million.  Operating expenses declined 3 percent.

OTHER FINANCIAL INFORMATION

Meredith generated $140 million in cash flow from operations during the first nine months of fiscal 2010.  Meredith's total debt was $315 million at March 31, 2010, $65 million less than at the prior fiscal year end.  Meredith's debt-to-EBITDA ratio was well under existing debt covenants at 1.4 to 1.  

Total company operating expenses in the third quarter of fiscal 2010 were up slightly.  This was primarily due to a client bankruptcy; our investment in Next Issue Media, the e-Reader consortium; and severance costs related to an organizational realignment.  Total company operating expenses declined 5 percent for the first nine months of fiscal 2010.

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.

OUTLOOK

Looking at the fourth quarter of fiscal 2010, total Company advertising revenue is expected to increase 7 to 8 percent over the prior year. This includes:

  • Local Media Group non-political advertising revenue, which is currently pacing up in the high teens, and;
  • National Media Group advertising revenue, which with two of three magazine issues closed, is expected to be flat to up slightly.

Meredith currently expects fiscal 2010 fourth quarter earnings per share to range from $0.61 to $0.66, and full year fiscal 2010 earnings per share are expected to range from $2.13 to $2.18, excluding special items.

A number of uncertainties remain that may affect Meredith's outlook as stated in this press release for the fourth fiscal quarter and full year of 2010.  These uncertainties are referenced below under "Safe Harbor" and in certain SEC filings.

CONFERENCE CALL WEBCAST

Meredith will host a conference call on April 28, 2010, at 11:00 a.m. EDT to discuss fiscal 2010 third quarter 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.  A transcript will be available within 48 hours after the 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 special items recorded in fiscal 2010 and 2009 are also supplemental non-GAAP financial measures.  Management believes these items are not reflective of Meredith's ongoing business activities.  While results excluding the special items 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 and its 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 fourth fiscal quarter and full year 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; www.meredith.com) 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

Condensed Consolidated Statements of Earnings (Unaudited)










Three Months


Nine Months

Period Ended March 31,

2010


2009


2010


2009

(In thousands except per share data)








Revenues








Advertising

$ 199,170


$ 184,265


$  578,854


$  597,891

Circulation

74,598


72,869


211,686


211,086

All other

79,575


80,460


232,073


253,971

Total revenues

353,343


337,594


1,022,613


1,062,948

Operating expenses








Production, distribution, and editorial

144,517


159,197


438,521


491,618

Selling, general, and administrative

142,044


124,323


428,298


421,523

Depreciation and amortization

10,313


10,714


30,533


32,346

Total operating expenses

296,874


294,234


897,352


945,487

Income from operations

56,469


43,360


125,261


117,461

Interest income

6


121


25


348

Interest expense

(3,952)


(4,911)


(14,737)


(15,698)

Earnings from continuing operations before income taxes

52,523


38,570


110,549


102,111

Income taxes

19,224


13,696


39,955


40,766

Earnings from continuing operations

33,299


24,874


70,594


61,345

Earning (loss) from discontinued operations, net of taxes

-


554


-


(4,737)

Net earnings

$   33,299


$   25,428


$    70,594


$    56,608









Basic earnings per share








Earnings from continuing operations

$       0.73


$       0.55


$        1.56


$        1.36

Discontinued operations

-


0.01


-


(0.11)

Basic earnings per share

$       0.73


$       0.56


$        1.56


$        1.25

Basic average shares outstanding

45,331


44,961


45,259


45,051









Diluted earnings per share








Earnings from continuing operations

$       0.73


$       0.55


$        1.55


$        1.36

Discontinued operations

-


0.01


-


(0.11)

Diluted earnings per share

$       0.73


$       0.56


$        1.55


$        1.25

Diluted average shares outstanding

45,651


45,092


45,505


45,177









Dividends paid per share

$     0.230


$     0.225


$      0.680


$      0.655



Meredith Corporation and Subsidiaries

Segment Information (Unaudited)












Three Months


Nine Months

Period Ended March 31,

2010


2009


2010


2009

(In thousands)








Revenues








National media group








Advertising

$ 137,337


$ 132,242


$    391,970


$    396,627

Circulation

74,598


72,869


211,686


211,086

Other revenues

72,650


75,209


213,708


243,182


Total national media group

284,585


280,320


817,364


850,895

Local media group








  Non-political advertising

60,312


51,778


181,532


178,143

  Political advertising

1,521


245


5,352


23,121

  Other revenues

6,925


5,251


18,365


10,789


Total local media group

68,758


57,274


205,249


212,053

Total revenues

$ 353,343


$ 337,594


$ 1,022,613


$ 1,062,948










Operating profit








National media group

$   50,865


$   47,971


$    121,232


$    105,069

Local media group

12,828


1,348


32,291


34,373

Unallocated corporate

(7,224)


(5,959)


(28,262)


(21,981)

Income from operations

$   56,469


$   43,360


$    125,261


$    117,461










Depreciation and amortization








National media group

$     3,694


$     3,789


$      10,843


$      11,843

Local media group

6,078


6,471


18,160


18,988

Unallocated corporate

541


454


1,530


1,515

Total depreciation and amortization

$   10,313


$   10,714


$      30,533


$      32,346










EBITDA(1)








National media group

$   54,559


$   51,760


$    132,075


$    116,912

Local media group

18,906


7,819


50,451


53,361

Unallocated corporate

(6,683)


(5,505)


(26,732)


(20,466)

Total EBITDA

$   66,782


$   54,074


$    155,794


$    149,807










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



Meredith Corporation and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)






March 31,


June 30,

Assets

2010


2009

(In thousands)




Current assets




Cash and cash equivalents

$      23,666


$      27,910

Accounts receivable, net

229,209


192,367

Inventories

24,874


28,151

Current portion of subscription acquisition costs

59,541


60,017

Current portion of broadcast rights

9,767


8,297

Other current assets

15,996


23,398

Total current assets

363,053


340,140

Property, plant, and equipment

453,674


444,904

Less accumulated depreciation

(265,074)


(253,597)

Net property, plant, and equipment

188,600


191,307

Subscription acquisition costs

58,062


63,444

Broadcast rights

3,440


4,545

Other assets

53,247


45,907

Intangible assets, net

554,551


561,581

Goodwill

484,919


462,379

Total assets

$ 1,705,872


$ 1,669,303





Liabilities and Shareholders' Equity




Current liabilities




Current portion of long-term debt

$    140,000


$                -

Current portion of long-term broadcast rights payable

13,580


10,560

Accounts payable

83,927


86,381

Accrued expenses and other liabilities

122,759


81,544

Current portion of unearned subscription revenues

167,858


170,731

Total current liabilities

528,124


349,216

Long-term debt

175,000


380,000

Long-term broadcast rights payable

9,979


11,851

Unearned subscription revenues

138,396


148,393

Deferred income taxes

89,027


64,322

Other noncurrent liabilities

105,437


106,138

Total liabilities

1,045,963


1,059,920

Shareholders' equity




Common stock

36,280


35,934

Class B stock

9,092


9,133

Additional paid-in capital

63,193


53,938

Retained earnings

581,719


542,006

Accumulated other comprehensive loss

(30,375)


(31,628)

Total shareholders' equity

659,909


609,383

Total liabilities and shareholders' equity

$ 1,705,872


$ 1,669,303



Meredith Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)









Nine Months Ended March 31,

2010


2009

(In thousands)




Net cash provided by operating activities

$ 139,903


$ 138,611





Cash flows from investing activities




Acquisitions of businesses

(32,542)


(6,118)

Additions to property, plant, and equipment

(18,249)


(18,642)

Proceeds from dispositions of assets

-


636

Net cash used in investing activities

(50,791)


(24,124)





Cash flows from financing activities




Proceeds from issuance of long-term debt

85,000


120,000

Repayments of long-term debt

(150,000)


(150,000)

Purchases of Company stock

(5,228)


(21,763)

Dividends paid

(30,881)


(29,573)

Proceeds from common stock issued

7,459


3,178

Excess tax benefits from share-based payments

489


673

Other

(195)


(250)

Net cash used in financing activities

(93,356)


(77,735)

Net increase (decrease) in cash and cash equivalents

(4,244)


36,752

Cash and cash equivalents at beginning of period

27,910


37,644

Cash and cash equivalents at end of period

$   23,666


$   74,396



Meredith Corporation and Subsidiaries

Table 1

Supplemental Disclosures Regarding Non-GAAP Financial Measures























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













Period Ended March 31, 2010

Three Months


Nine Months


Excluding Special Items


Special Items


As Reported


Excluding Special Items


Special Items


As Reported

(In thousands except per share data)












Revenues












Advertising

$ 199,170


$         -


$      199,170


$  578,854


$         -


$      578,854

Circulation

74,598


-


74,598


211,686


-


211,686

All other

79,575


-


79,575


232,073


-


232,073

Total revenues

353,343


-


353,343


1,022,613


-


1,022,613

Operating expenses












Production, distribution, and editorial

144,517


-


144,517


437,074


1,447

(a)

438,521

Selling, general, and administrative

141,682


362

(b)

142,044


423,913


4,385

(c)

428,298

Depreciation and amortization

10,313


-


10,313


30,533


-


30,533

Total operating expenses

296,512


362


296,874


891,520


5,832


897,352

Income from operations

56,831


(362)


56,469


131,093


(5,832)


125,261

Interest income

6


-


6


25


-


25

Interest expense

(3,952)


-


(3,952)


(14,737)


-


(14,737)

Earnings before income taxes

52,885


(362)


52,523


116,381


(5,832)


110,549

Income taxes

21,310


(2,086)

(d)

19,224


47,123


(7,168)

(d)

39,955

Net earnings

$   31,575


$  1,724


$        33,299


$    69,258


$  1,336


$        70,594













Basic earnings per share

$       0.70


$    0.03


$            0.73


$        1.53


$    0.03


$            1.56

Basic average shares outstanding

45,331


45,331


45,331


45,259


45,259


45,259













Diluted earnings per share

$       0.69


$    0.04


$            0.73


$        1.52


$    0.03


$            1.55

Diluted average shares outstanding

45,651


45,651


45,651


45,505


45,505


45,505













(a) Write-off of art and manuscript inventory resulting from the repositioning of certain national media group operations

(b) Severance costs resulting from the repositioning of certain national media group operations, net of adjustments to the restructuring accrual

(c) Severance costs and write-off of subscription acquisition costs resulting from the repositioning of certain national media group operations, net of adjustments to the restructuring accrual

(d) Tax benefit as a result of state and local legislation during the first fiscal quarter, the resolution of a tax contingency in the third fiscal quarter, and net repositioning charges



Meredith Corporation and Subsidiaries











Table 2

Supplemental Disclosures Regarding Non-GAAP Financial Measures




















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













Period Ended March 31, 2010

Three Months


Nine Months


Excluding Special Items


Special Items


As Reported


Excluding Special Items


Special Items


As Reported

(In thousands)












Revenues












National media group












Advertising

$ 137,337


$        -


$      137,337


$        391,970


$                    -


$      391,970

Circulation

74,598


-


74,598


211,686


-


211,686

Other revenues

72,650


-


72,650


213,708


-


213,708

Total national media group

284,585


-


284,585


817,364


-


817,364

Local media group












  Non-political advertising

60,312


-


60,312


181,532


-


181,532

  Political advertising

1,521


-


1,521


5,352


-


5,352

  Other revenues

6,925


-


6,925


18,365


-


18,365

Total local media group

68,758


-


68,758


205,249


-


205,249

Total revenues

$ 353,343


$        -


$      353,343


$     1,022,613


$                    -


$   1,022,613













Operating profit












National media group

$   51,227


$  (362)

(a)

$        50,865


$        127,064


$          (5,832)

(b)

$      121,232

Local media group

12,828


-


12,828


32,291


-


32,291

Unallocated corporate

(7,224)


-


(7,224)


(28,262)


-


(28,262)

Income from operations

$   56,831


$  (362)


$        56,469


$        131,093


$          (5,832)


$      125,261













Depreciation and amortization












National media group

$     3,694


$        -


$          3,694


$          10,843


$                    -


$        10,843

Local media group

6,078


-


6,078


18,160


-


18,160

Unallocated corporate

541


-


541


1,530


-


1,530

Total depreciation and amortization

$   10,313


$        -


$        10,313


$          30,533


$                    -


$        30,533













EBITDA(1)












National media group

$   54,921


$  (362)

(a)

$        54,559


$        137,907


$          (5,832)

(b)

$      132,075

Local media group

18,906


-


18,906


50,451


-


50,451

Unallocated corporate

(6,683)


-


(6,683)


(26,732)


-


(26,732)

Total EBITDA(1)

$   67,144


$  (362)


$        66,782


$        161,626


$          (5,832)


$      155,794













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


(a)  Severance costs resulting from the repositioning of certain operations, net of adjustments to the restructuring accrual

(b)  Severance costs and the write-off of art and manuscript inventory and subscription acquisition costs resulting from the repositioning of certain operations, net of adjustments to the restructuring accrual



Meredith Corporation and Subsidiaries











Table 3

Supplemental Disclosures Regarding Non-GAAP Financial Measures























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













Period Ended March 31, 2009

Three Months


Nine Months


Excluding Special Items


Special Items


As Reported


Excluding Special Items


Special Items


As Reported

(In thousands except per share data)












Revenues












Advertising

$ 184,265


$         -


$      184,265


$  597,891


$          -


$      597,891

Circulation

72,869


-


72,869


211,086


-


211,086

All other

80,460


-


80,460


253,971


-


253,971

Total revenues

337,594


-


337,594


1,062,948


-


1,062,948

Operating expenses












Production, distribution, and editorial

159,197


-


159,197


491,618


-


491,618

Selling, general, and administrative

124,323


-


124,323


412,490


9,033

(a)

421,523

Depreciation and amortization

10,714


-


10,714


32,346


-


32,346

Total operating expenses

294,234


-


294,234


936,454


9,033


945,487

Income from operations

43,360


-


43,360


126,494


(9,033)


117,461

Interest income

121


-


121


348


-


348

Interest expense

(4,911)


-


(4,911)


(15,698)


-


(15,698)

Earnings before income taxes

38,570


-


38,570


111,144


(9,033)


102,111

Income taxes

13,696


-


13,696


44,288


(3,522)


40,766

Earnings from continuing operations

24,874


-


24,874


66,856


(5,511)


61,345

Earnings (loss) from discontinued operations, net of taxes

554


-


554


(613)


(4,124)

(b)

(4,737)

Net earnings

$   25,428


$         -


$        25,428


$    66,243


$ (9,635)


$        56,608













Basic earnings per share












Earnings from continuing operations

$       0.55


$       -


$            0.55


$        1.48


$   (0.12)


$            1.36

Discontinued operations

0.01


-


0.01


(0.02)


(0.09)


(0.11)

Basic earnings per share

$       0.56


$       -


$            0.56


$        1.46


$   (0.21)


$            1.25

Basic average shares outstanding

44,961


44,961


44,961


45,051


45,051


45,051













Diluted earnings per share












Earnings from continuing operations

$       0.55


$       -


$            0.55


$        1.48


$   (0.12)


$            1.36

Discontinued operations

0.01


-


0.01


(0.02)


(0.09)


(0.11)

Diluted earnings per share

$       0.56


$       -


$            0.56


$        1.46


$   (0.21)


$            1.25

Diluted average shares outstanding

45,092


45,092


45,092


45,177


45,177


45,177













(a) Severance expense

(b) Severance expense and the write-down of art and manuscript inventory and subscription acquisition costs, net of taxes



Meredith Corporation and Subsidiaries











Table 4

Supplemental Disclosures Regarding Non-GAAP Financial Measures




















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













Period Ended March 31, 2009

Three Months


Nine Months


Excluding Special Items


Special Items


As Reported


Excluding Special Items


Special Items


As Reported

(In thousands)












Revenues












National media group












Advertising

$ 132,242


$        -


$      132,242


$        396,627


$                    -


$      396,627

Circulation

72,869


-


72,869


211,086


-


211,086

Other revenues

75,209


-


75,209


243,182


-


243,182

Total national media group

280,320


-


280,320


850,895


-


850,895

Local media group












  Non-political advertising

51,778


-


51,778


178,143


-


178,143

  Political advertising

245


-


245


23,121


-


23,121

  Other revenues

5,251


-


5,251


10,789


-


10,789

Total local media group

57,274


-


57,274


212,053


-


212,053

Total revenues

$ 337,594


$        -


$      337,594


$     1,062,948


$                    -


$   1,062,948













Operating profit












National media group

$   47,971


$        -


$        47,971


$        111,109


$          (6,040)

(a)

$      105,069

Local media group

1,348


-


1,348


36,386


(2,013)

(b)

34,373

Unallocated corporate

(5,959)


-


(5,959)


(21,001)


(980)

(c)

(21,981)

Income from operations

$   43,360


$        -


$        43,360


$        126,494


$          (9,033)


$      117,461













Depreciation and amortization












National media group

$     3,789


$        -


$          3,789


$          11,843


$                    -


$        11,843

Local media group

6,471


-


6,471


18,988


-


18,988

Unallocated corporate

454


-


454


1,515


-


1,515

Total depreciation and amortization

$   10,714


$        -


$        10,714


$          32,346


$                    -


$        32,346













EBITDA(1)












National media group

$   51,760


$        -


$        51,760


$        122,952


$          (6,040)

(a)

$      116,912

Local media group

7,819


-


7,819


55,374


(2,013)

(b)

53,361

Unallocated corporate

(5,505)


-


(5,505)


(19,486)


(980)

(c)

(20,466)

Total EBITDA(1)

$   54,074


$        -


$        54,074


$        158,840


$          (9,033)


$      149,807













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


(a) Severance expense for national media group

(b) Severance expense for local media group

(c) 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 from continuing operations in the following tables, is defined as earnings from continuing operations 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.












Three Months Ended March 31, 2010


Nine Months Ended March 31, 2010


National Media Group

Local Media Group

Unallocated Corporate

Total


National Media Group

Local Media Group

Unallocated Corporate

Total

(In thousands)










Revenues

$          284,585

$       68,758

$                -

$ 353,343


$          817,364

$     205,249

$                -

$ 1,022,613











Operating profit

$            50,865

$       12,828

$       (7,224)

$   56,469


$          121,232

$       32,291

$     (28,262)

$    125,261

Depreciation and amortization

3,694

6,078

541

10,313


10,843

18,160

1,530

30,533

EBITDA

$            54,559

$       18,906

$       (6,683)

66,782


$          132,075

$       50,451

$     (26,732)

155,794

Less:










Depreciation and amortization




(10,313)





(30,533)

Net interest expense




(3,946)





(14,712)

Income taxes




(19,224)





(39,955)

Earnings from continuing operations




$   33,299





$      70,594











Segment EBITDA margin

19.2%

27.5%




16.2%

24.6%














Three Months Ended March 31, 2009


Nine Months Ended March 31, 2009


National Media Group

Local Media Group

Unallocated Corporate

Total


National Media Group

Local Media Group

Unallocated Corporate

Total

(In thousands)










Revenues

$          280,320

$       57,274

$                -

$ 337,594


$          850,895

$     212,053

$                -

$ 1,062,948











Operating profit

$            47,971

$         1,348

$       (5,959)

$   43,360


$          105,069

$       34,373

$     (21,981)

$    117,461

Depreciation and amortization

3,789

6,471

454

10,714


11,843

18,988

1,515

32,346

EBITDA

$            51,760

$         7,819

$       (5,505)

54,074


$          116,912

$       53,361

$     (20,466)

149,807

Less:










Depreciation and amortization




(10,714)





(32,346)

Net interest expense




(4,790)





(15,350)

Income taxes




(13,696)





(40,766)

Earnings from continuing operations




$   24,874





$      61,345











Segment EBITDA margin

18.5%

13.7%




13.7%

25.2%





SOURCE Meredith Corporation

For further information: Shareholder/Financial Analysts, Mike Lovell, Director of Investor Relations, +1-515-284-3622, Mike.Lovell@Meredith.com, or Media, Art Slusark, Vice President/Corporate Communications, +1-515-284-3404, Art.Slusark@Meredith.com, both of Meredith Corporation