Media General posts $632 million loss for 2008

http://yadkinvalleynews.com/home/Local_News/Entries/2009/2/26_Media_General_Inc._posts_%24632_million_loss_for_2008.html

From Media General's 10-K report:

Net income

The Company recorded a net loss of $632 million in 2008, and net income of $11 million and $79 million in 2007 and 2006, respectively. In order to facilitate a meaningful comparison of results for the last three years, several items merit separate consideration. Challenging business conditions and the market's perception of the value of media company stocks prompted the Company to perform an interim impairment test as of the end of the second quarter in 2008 that resulted in an impairment charge being recorded in that quarter.

 

Bull. Shit.

 

Yeah, I know these are tough economic times, but those numbers can't be right. How do you go from $11 million up to $632 down in just one year? Please tell me there are some decimal errors here.

 

http://www.quote.com/us/stocks/sec.action?s=MEG

From Media General's 10-K report:

Net income

The Company recorded a net loss of $632 million in 2008, and net income of $11 million and $79 million in 2007 and 2006, respectively. In order to facilitate a meaningful comparison of results for the last three years, several items merit separate consideration. Challenging business conditions and the market's perception of the value of media company stocks prompted the Company to perform an interim impairment test as of the end of the second quarter in 2008 that resulted in an impairment charge being recorded in that quarter.


(In thousands, except per share amounts)

2008


2007


2006


2005


2004

Summary of Operations

Operating revenues (a)

$
800,034


$
898,776


$
931,831


$
826,786


$
807,387

Net income (loss) (b) (c) (d)

$
(631,854
)

$
10,687


$
79,042


$
(243,042
)

$
80,185

 

I want to know how much of that figure is debt service. And if they were factoring in debt service in previous years, when they were posting profits.

That's become my question for all figures coming out of media companies these days.

 

Tampa will be the next to go.

 

It happened because of deteriorating market conditions.

I just finished looking at the 10-K. MG's operating revenue is only off by $98 million, which is in part the result of sales of several t.v. stations in 2008 and in part the general decline in advertising we've seen in the last 18 months. But the value of television stations and newspapers themselves (if they were to be sold as separate entities) has taken a huge hit because of the advertising slump. Who wants to buy a newspaper right now?

So, Media General took a $512 million charge on the value of its newspapers and a $105 million charge on its broadcast operations. It also recorded a $5.7 million charge on real estate. The result is $615 million in charges. In addition to that, the company lost about $11 million on the sale of four television stations last year.

So to compare apples to apples, if you took out the charges, operating income from last year was $105 million and this year it was $44 million. Without the charges, net profit/loss this year would be a loss of about $12 million compared to the gain last year of $11 million.

Don't know if that helps, but I thought I'd give it a try.

And Mizzou is probably right. The financial statement makes it clear that Tampa is in deep, deep trouble and is a huge drag on Media General.

 

Maybe then, the Media General CEO will forgo a bonus this year? Give up some box seats at the stadium? Or perhaps MG can ask for a government bailout? Ahh, but that means the CEO's annual compensation would have to be less than $2.7 million. Well, desperate times call for desperate measures. Perhaps he'll furlough himself.

 

Ha... Marshall Morton taking a furlough day? That's funny. Besides, I found where his salary is broken down: http://people.forbes.com/profile/marshall-n-morton/52310

Mizzou hit it on the head... Tampa Trib is by far the biggest money toilet in MG. With the RMN folding, it would not shock me in this economy to see it go. Though, I suspect more layoffs following the furlough days to be the next wave of action to save money by the MG suits.

 

I'm pretty sure Morton is included in the furloughs. Not that it really matters.

 

Hey, they're saving more money on his salary than anyone else's.