12028188.Pdf

casF ed urct cx ptorchao ata ra.t a.sIt .4 tS 1OYearCACP 6% 1OTeavCAGR 17% behalf of Meredith and its more than 3000 employees we want to thank you for your investment in Meredith Corporation As shareholder youve trusted us with your financial resources and thats responsibility we take very seriously To those have been who our shareholders for long time you are cognizant of our proven ability to leverage our very strong brands to generate significant and sustainable cash flow over time To those who have become shareholders in the past year we hope this annual report will provide more detail on our operations and better understanding of our key strategic initiatives In Fiscal 2012 Meredith executed series of well-defined strategic initiatives designed to generate growth in revenues operating profit and cash flow and increase shareholder value over time We also faced some challenges including magazine advertising and performance at Meredith Xcelerated Marketing Fortunately our Local Media Grodp delivered its third consecutive year of growth in non-political advertising revenues increasing percent EBITDA margins grew nearly full point to 36 percent the best since Fiscal 2007 And we kept tight control on total Company expenses which declined percent excluding recent acquisitions Fiscal 2012 As result earnings per share from continuing operations before special items were $230 in line with our previously stated expectations That compares to Fiscal 2011 earnings per share from continuing operations of $2.81 before special items which included $0.38 per share or $28 million of incremental political advertising revenues at our television stations We will experience the benefit of political advertising again in Fiscal 2013 Most importantly in Fiscal 2012 we took important steps to position Meredith for continued long-term growth and success Our Fiscal 2012 key strategic accomplishments included Implementation of our Total Shareholder Return TSR strategy Key elements of the strategy include 50 percent dividend increase resulting in current annual dividend of $1.53 per share $100 million share repurchase program and Ongoing strategic investments to scale the business and increase shareholder value over time Since the launch of our TSR strategy on October 25 2011 through June 30 2012 Merediths stock price increased 28 percent and the dividend yielded approximately percent That equated to total shareholder return of 33 percent Acquisition of Allrecipes.com which doubled our digital audience and revenues Allrecipes.com has strengthened our digital reach and scale with consumers and advertisers alike We are currently No.1 in audience in the digital food space and in the Top in the womens lifestyle category online We are actively executing strategic growth plan for Allrecipes.com It includes enhancing the brands video and mobile content broadening its social media and international presence and generating additional consumer revenue Pur ase of fir ervDay th Racha1 Ray air yFuir brar Ti er icr oa oaenth cta rs ar ig of Laun ho additio aal ble editror rid obie aft orms dv at fo as ulatf ud the ii Sc -n ba 11 ar tT i-s to orrr per greare prio any dISC II ot sO ad ci ar ten up on id bra ar ds Nd Better mes at athens or ci he cad ng indi ds Btt No nes nd Gardens we oss owcrf meaah and that eac prr xi rate ri iii ens imers acToss diverse print gial video and coc at media uNit Ir scal 2012 ye acre kee thia dO ocused on exp ndir its ehcHonic ab edition and at bile appoca1 or as socia experle ti ix arket og vec oth bswec ntir obuila or ej pee ncr rcatforB tei ata Garter and attracive brands we confident that advertisers and marketers iii creasingly use Mercddh proper ties to reach them and creative This includes Finally the key to our brand strengtt co itinues to be our talented employees our inventive content creators innovative sales and nra ketir professionals dedicated suppo groups ar committed management team We think Meredith possesses the best workforce in the media odustry and our 110year track record of success underscores this belief mc udes dcliv In our National Media Group we are focused or executing rrultipronged strategy that ang comprehensive programs for clrents across prin video At the are also digital and mabile piatfo ms sari me we attrac focusing on broadening the types of advertisers we including those in the beauty retail auto and financial categories Were also expanding our innovative Meredith Sales Guarantee program whLb use The Nielsen Companys Fighly regarded Nomescn data ar or ow 100ri lion name consumer database to prove increased product sates at an resuit of pni advLIt1 ag in Meatdith baards fa we ha 13 consuri er product ands ir the program To expand this program we fo re ne partnership wiN IMS Health add ti pres -ho drugs alegoly II Mered Sales Goarantee ar are orh on similar er oIu br for heautorotve id sty ix erN ngcte opine -e rstraegis rr rove in ixeandoerat rgp ofitgrowd fror uixe at ish pa as ved ir aooe tuuirp rr Ation ore sbccrptson acowntior rnev an customer service activities onhne These are important initiatives for several reasons First they enhance customer service Second they create better opportunities for us to upsell at digital checkout And finally they lower our operating expenses Taken together these factors help us realize an incremental $5 in operating profit per digital order over the average life of subscription Our Fiscal 2013 goal is to generate more than millionor about 30 percent of our total annual subscription orders digitally Were also making several enhancements to Meredith Xcelerated Marketing including putting increased emphasis on delivery of branded content mobile and social media markering strategies and strategic analytics These are our chief competitive strengths We lowered our cost structure and bolstered the senior leadership team in the creative sales and marketing mobile and social and operational areas We are aggressively expanding new business generation initiatives have won several new pieces of business and are seeing strong pipeline for new opportunities In our Local Media Group we will continue to pursue growth in audience ratings which helps strengthen advertising rates This includes adding more hours of locally produced programming and making further enhancements to our digital and mobile activities We anticipate strong political advertising season and expect to exceed the amount generated during the last Presidential election year In closing we want to reiterate the significant investments made in Fiscal 2012 as well as our prospects for strong cash flow generation over time We continue to be highly confident in the strength and resilience of Merediths diversified business model Once again on behalf of our management team and all Meredith employees we want to thank you for your ongoing support We have long history of prudent capital stewardship as well as an ongoing commitment to Total Shareholder Return It is our mission and pledge to protect and grow the value of your investment in Meredith Corporation over time 7M Stephen Lacy Mell Meredith Frazier Chairman and Vice Chairman Chief Executive Officer Corpo Off cc Lacy hrra Pm Jocap eyae Y3p yr ci Vi lingo 2154 FOR1 1OK ANNU \L RI PORI P1 RSuA\ 10 SI ION Ia OR OF TI CLR 110 LX CL NC 34 15I 28 For the fiscal year coded June 30 2012 ommNsion file number uNedL MEREDI IH CORPORATION Lxcc ci ne ii iv 01 Iowa 93023 1716 Locust Street Des Moines Iowa 5031 cUres 4prt pa axe at 10 fr ii ad ire ar iqein yst New York Stock Exchange 405 Sea ii Yes No Indicate by check mark if the egistran we sawn is 55 er as dcf ed Ri 1ndcate by check mark if tfe registrant is required irt Pu ua ia tO tr hr cc td 501cc re Lx0rrge dorwe a5 check rrk rg FL so ar has ben to such 1934 during the preceding 12 mon is or br cc horter per od tie eau rape subject filing requ reirents for the past drys Yes Na rate tc ci Inc ac xc Dc File Indicate by checa marx re se her the regis rart rW hi or at sl are sat the required to be submtted aid pa ted pursuant to Rule 405 10gc it ti arc period Ye registrant was recurred to sub iii aid ci tat ad ci ci ot be cont rued to lndica check mark 10 sal war Ic so it cii pu su in in lllc the he bestofreg strartsxnonledge inclcd xc roycr rra mc or rp ate cc er RKorcry amendment to this Form 0K 1erae Li Indcate by check mark nbc her tie rcgist art is arge acc ccekr ar er rapor ig mpany l2b the Act See the definitions of large ae e1er ted Ieraxac pa rt an Fxahanga Large accelerated 01cr TI inc rant at The registrant estimates that he aggre0a rart et 1u Si rime by regs ak Ste 10 hat December 31 2011 was 11134000 01 ups Beers Nw en Cassr3s ci eta corn ic iCiei 1448 DOCUMENT INCORPORATED BY REFERENCE Certain of the portions Registrants Proxy Statement for the Annual Meeting of Shareholders to be held on November 2012 are incorporated by reference in Part III to the extent described therein TABLE OF CONTENTS Page Part Item Business Description of Business National Media Local Media Executive Officers of the Company 10 Employees 11 Other 11 Available Information 11 Forward Looking Statements 11 Item 1A Risk Factors 12 Item lB Unresolved Staff Comments 14 Item Properties 14 Item Legal Proceedings 14 Part II Item Market for Registrants Common Equity Related Shareholder Matters and Issuer Purchases of Equity Securities 15 Item Selected Financial Data 17 Item Managements Discussion and Analysis of Financial Condition and Results of Operations 18 Item 7A Quantitative and Qualitative Disclosures About Market Risk 39 Item Financial

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