Media General Pro Forma 4Q Rev Down 5%

Media General Inc. today reported a 69% increase in fourth quarter net revenues to $366 million, compared to $217 million in the prior year and a full-year revenue increase of 93% to $1.3 billion. However, when factoring out the additional stations derived from Media General’s merger with LIN Media that it completed on Dec. 19, 2014, 4Q revenues decreased 5% to $366 million while full-year revenue slipped 1% to $1.3 billion

Breaking down the pro forma results:

• Net local revenues, which include net local advertising revenues and retransmission consent fees, increased 18% to $242 million in the fourth quarter, compared to the prior year. For the full year, local revenues increased 12% to $880 million, compared to 2014. 
• Net national revenues decreased 3% to $59 million in the fourth quarter, compared to the prior year. For the full year, net national revenues decreased 2% to $213 million, compared to 2014.
• Net political revenues decreased $52 million in the fourth quarter and $93 million in the full year, compared to the prior election year.
• Net digital revenues decreased 5% to $44 million in the fourth quarter, compared to the prior year. For the full year, net digital revenues decreased 6% to $154 million, compared to 2014.
• Adjusted EBITDA decreased 23% to $116 million in the fourth quarter, compared to the prior year. For the full year, Adjusted EBITDA decreased 13% to $360 million, compared to 2014.

As a merged entity, the 4Q results were:

• Net revenues increased 69% to $366 million, compared to $217 million in the prior year.
• Net digital revenues increased 223% to $44 million, compared to $14 million in the prior year.
• Operating income was $55 million, compared to operating income of  $39 million in the prior year.
• Adjusted EBITDA increased 35% to $116 million, compared to Adjusted EBITDA of $86 million in the prior year. Included in Adjusted EBITDA was $7 million of losses from the Company’s national digital businesses.¹
• Earnings per diluted share was $0.12, compared to earnings per diluted share of $0.29 in the prior year.
• Total net debt outstanding (including capital leases) as of December 31, 2015, net of cash, was $2.2 billion, compared to $2.4 billion as of December 31, 2014.  Cash and cash equivalent balances as of December 31, 2015 were $41 million, compared to $44 million as of December 31, 2014.

And the full-year results were:

• Net revenues increased 93% to $1.3 billion, compared to $675 million in the prior year.
• Net digital revenues increased 399% to $154 million, compared to $31 million in the prior year.
• Operating income was $82 million, compared to operating income of $115 million in the prior year. Operating income included a non-cash, goodwill impairment charge of $53 million in the third quarter.
• Adjusted EBITDA increased 58% to $360 million, compared to Adjusted EBITDA of $228 million in the prior year. Included in Adjusted EBITDA was $19 million of losses from the Company’s national digital businesses.¹
• Loss per diluted share was $0.31, compared to earnings per diluted share of $0.58 in the prior year.

Media General CEO Vincent Sadusky said: “2015 was a transformational year for Media General as we successfully integrated the company’s largest group of acquired TV stations and over-achieved our synergy goals. Importantly, we remained focused on executing our strategy and strengthened our business operations. On a comparative basis, our total net revenues for 2015, excluding political advertising, grew 7% versus the prior year. Key drivers were an increase in automotive advertising and pay-TV subscriber fees, which more than offset the decline in digital revenues that occurred while retooling our digital business.”

“Looking ahead, we are excited about 2016 as we will realize a full-year of synergies and look forward to the return of political and Olympic advertising. We are also eager to complete our transaction with Nexstar, which will result in a stronger local media company that is better able to serve its communities and advertisers.”

Read the company’s report here.