On November 12, 2013, Media General Merged with Young Broadcasting, Creating a New Company Nearly Double in Size, with Significant Upside Potential

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On November 12, 2013, Media General Merged with Young Broadcasting, Creating a New Company Nearly Double in Size, with Significant Upside Potential Reaches 14% of U.S. TV households, with capacity to grow 31 top-rated local stations in 28 attractive markets On November 12, 2013, Robust free cash flow generation Media General merged with Young Broadcasting, creating a Strong financial profile new company nearly double in size, with significant Strong network and geographic diversification upside potential. Growth opportunities in digital and mobile platforms Well positioned to benefit from retransmission, political and Olympics revenues 2013 Annual Report Corporate Information Form 10-K and Other Filings The Company posts its SEC filings to its website. Stockholders who would like a copy of the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission, or its Code of Business Conduct and Ethics, may obtain either or both from the corporate website, www.mediageneral.com. Corporate Communications Information requests: Media General, Inc. 333 East Franklin Street Richmond, Va. 23219 (804) 887-5127 [email protected] Certifications The Company has filed the required certifications as exhibits to its Form 10-K. Additionally, the Chief Executive Officer has provided the annual certification to the New York Stock Exchange. Annual Meeting Stockholders of Media General, Inc., are invited to attend the Annual Meeting on April 24, 2014, at 11:00 a.m. at the Bolling Haxall House, 211 East Franklin Street, Richmond, Virginia. Transfer Agent and Registrar American Stock Transfer & Trust Co. Corporate Trust Department 6201 Fifteenth Ave. Brooklyn, N.Y. 11219 (800) 937-5449 Company Profile Media General, Inc. is a leading local television broadcasting and digital media company, providing top-rated news, information and entertainment in strong markets across the U.S. The company owns or operates 31 network-affiliated broadcast television stations and their associated digital media and mobile platforms, in 28 markets. These stations reach 16.5 million, or 14%, of U.S. TV households. Network affiliations include CBS (12), NBC (9), ABC (7), Fox (1), MyNetwork TV (1) and CW (1). Sixteen of the 31 stations are located in the top 75 designated market areas. Media General first entered the local television business in 1955 when it launched WFLA in Tampa, Florida as an NBC affiliate. The company subsequently expanded its station portfolio through acquisition. In November of 2013, Media General and Young Broadcasting merged, combining Media General’s 18 stations and Young’s 13 stations into the 31-member group described in this Annual Report. Table of Contents 1 Company Profile 2 Operations Map 4 Letter to Shareholders 6 Board of Directors 7 Officers 8 Form 10-K for 2013 2013 ANNUAL REPORT 1 Today’s Media General Well-diversified footprint with 31 stations in 28 markets, reaching 16.5 million, or 14%, of U.S. TV households WI MI SD Green Bay/Appleton RI Rapid City NY Albany/Schenectady/ Troy Providence, RI/ Sioux Falls/Mitchell New Bedford, MA Lansing IA We operate across the full range San Francisco/Oakland/San Jose Davenport, IA/ OH of market sizes, from San Francisco, Rock Island/Moline, IL Columbus the 6th largest DMA, to Rapid City, VA CA South Dakota, at #173. Eight of Richmond/Petersburg our stations operate in the Top Roanoke/Lynchburg 50 markets, and an additional 14 Tri-Cities, TN/VA Raleigh/ Greenville/ Durham New Bern Knoxville stations are located in the Top 100 TN Nashville Asheville NC Greenville/Spartanburg, SC/ television markets. Asheville, NC SC Myrtle Beach/Florence GA Birmingham Augusta, GA/ Charleston The merger balances our network MS Aiken, SC AL Columbus Savannah affiliations, making us less tied to the Jackson 31 Network Affiliates LA performance of any one network. Hattiesburg/ 12 CBS Laurel Mobile, AL/ Pensacola, FL Legacy Media General was heavily Lafayette FL reliant on the success of the NBC 9 NBC Tampa/St. Petersburg/Sarasota network – and somewhat less so, on 7 ABC CBS. Today, ABC is a balancing and bigger part of the picture. 1 FOX 1 CW 1 MNT 2 MEDIA GENERAL Our merger provides new geographic breadth and diversity, better shielding us from the impact of any particular region or local economy. Importantly, our larger size increases our buying power and negotiating leverage with vendors and other partners. WI MI SD Green Bay/Appleton RI Rapid City NY Albany/Schenectady/ Troy Providence, RI/ Sioux Falls/Mitchell New Bedford, MA Lansing IA San Francisco/Oakland/San Jose Davenport, IA/ OH Rock Island/Moline, IL Columbus VA CA Richmond/Petersburg Roanoke/Lynchburg Tri-Cities, TN/VA Raleigh/ Greenville/ Durham New Bern Knoxville TN Nashville Asheville NC Greenville/Spartanburg, SC/ Asheville, NC SC Myrtle Beach/Florence GA Birmingham Augusta, GA/ Charleston MS Aiken, SC AL Columbus Savannah Jackson LA Hattiesburg/ Laurel Mobile, AL/ Pensacola, FL Lafayette FL Tampa/St. Petersburg/Sarasota 2013 ANNUAL REPORT 3 To Our Shareholders On November 12, 2013, Media General merged with Young Broadcasting, creating a new company nearly double in size, with significant upside potential. It has been an amazing year. We entered 2013 as Bob joined Jim Conschafter and John Cottingham as a newly minted, pure-play broadcast and digital com- a vice president of broadcast markets. These three pany. We had 18 television stations clustered mostly in operating leaders now oversee a mix of legacy Media the Southeast. Today, we own or operate 31 top-rated General and Young stations, also sharing, very effec- stations across the Nation, from east to west and north tively, the implementation of best practices from both to south. organizations. The merger of Media General and Young Broadcast- ing on November 12, 2013, was a renaissance event for 2014 Outlook both companies. This business combination created a We’re excited about the opportunity 2014 provides new, diversified company with a strong balance sheet, to deliver a particularly strong performance – especially generating robust cash flows – and with very strong because of the Winter Olympics, this year’s elections, upside potential. a rising market for retransmission revenues and growth In fact, we’re delivering on the promise, and the from our digital and mobile platforms. potential, of this merger right out of the gate. Our nine NBC stations already have benefited from the Sochi Olympics. Total Olympics revenues of $11.6 Merger Synergies million this year were up strongly compared to the last Our merger promised $30 million of financing and Winter Olympics in 2010. operating synergies, about evenly split, at the time of 2014 also will be a strong year for political revenues. the announcement. That total quickly increased to We now operate in numerous battleground states, $44 million. Financing synergies nearly doubled to $29 including Iowa, Florida, Michigan, North Carolina, Ohio, million because this powerful combination allowed us to Virginia and Wisconsin, where our strong market posi- refinance our debt at an even lower cost of capital than tions enable our stations to capture high shares of politi- we’d anticipated. We believe our announced $15 million cal advertising revenues. of operating synergies will go even higher. With our 31-station group, we’re participating more than ever before in the rising retransmission market. Seamless Integration In 2013, our combined retrans revenues reached $94 The integration of the two companies also is going million. That’s up from $65 million in 2012. And this very well. We found early on during visits to all of the year, we expect to increase this game-changing revenue legacy Young stations that our two organizations ap- stream by more than 40%. proached the world – and our responsibilities to, and our Capital expenditures in 2014 are expected to be $41 roles in, our communities – in exactly the same ways. million, as we complete the remaining build-out of our Our common culture has been an accelerant as we’ve high-definition capabilities, ensuring that all of our sta- become one, unified, new Media General. tions are HD from end-to-end. We’ll also make invest- The addition of two former Young executives to our ments to grow audience and market share. This level of leadership team, Deb McDermott and Bob Peterson, capital spending is unique to 2014. Beginning in 2015, also has been a huge factor in our success. Deb be- we expect capital spending to return a normal run rate of came our senior vice president of broadcast markets. $15-20 million. 4 MEDIA GENERAL Digital Strategy We have strong, and growing, digital and mobile plat- forms at all of our stations. With our merger, we have the infrastructure, products and people in place to grow digital audience and revenue at an ever-higher rate. Additionally, we’ve strengthened the content and technology for our stations’ websites. This change has been very effective in capturing new audiences from mobile, which now provides more than 50% of our digital audience. We provide advertisers with a full suite of digital marketing solutions, and we enable our clients to reach targeted consumers in any U.S. market and across all digital and mobile platforms. Our customers can target the audiences they wish to reach based on geography, content, behavior, income or device. Advanced report- J. Stewart Bryan III, Chairman of the Board, and George L. ing tools enable advertisers to assess the effectiveness Mahoney, President and Chief Executive Officer. of their ads, which makes our digital offerings more attractive to them. aligned, we’re very proud of what we’re accomplishing – Station Growth Initiatives and all that it portends. Our stations are strong performers and provide us In closing, we’ve been delighted this year to welcome with the opportunity for additional growth initiatives, on the directors of Young Broadcasting to our Board. We’d both traditional and digital platforms. Of course, “local” also like to recognize three retiring Directors and thank is the name of the game for us.
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