corrected transcript Stephen M. Lacy, Chairman, P Chairman, Lacy, M. Stephen Participants Other Participants Corporate MANAGEMENT DISCUSSION DISCUSSION MANAGEMENTSECTION PARTICIPANTS Thank you very much and good morning, everyone. Thanks for joining with us this morning on such such on morningthis us with joining for Thanks everyone. morning, goodand much very you Thank goahead. Please Lacy. Steve Officer Executive Chief and Chairmanhost, our to overconferenceturnthe to like now Iwould question listen a in are participants all time, this At call. conferenceCorp. Merediththe to Welcome by. standingfor much so you thank gentlemen, and Ladies Operator: Lucas Barry Crowther D. John Atorino J. Edward Bazinet BoisvertJason Ceryanec H. Joseph Karpowicz A. Paul Lacy M. Stephen Phoenix. in KSAW of operations the to related Broadcasting SagamoreHill with agreement servicesshared customary a into market. television largest 21st nation’s the Louis, St. in affiliate CBS the KMOV, and Phoenix; in CW theaffiliate KASW, market; television largest12th nation’s To have. might you that questions any answer to beavailable we’ll Then details. financial the discuss will Joe then and stations, the about color more providewill Paul comments. initial some provideI’ll Gannett. televisionof assets broadcast the purchase to agreement our announcing today earlier weissued release newsthe read to opportunitythe had you Ihope filings. SEC ourin and today th ofSome forecast. forwardcertain include today remarks Our follow.will transcript a and website investor onour afternoon this later beavailablewill discussion today’s of archive An Joe Officer, Financial Chief ourand Karpowicz, Paul President, GroupMedia Local are today call the onme With notice. short
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1 corrected transcript Paul Paul marketing solutions to local and national client national and to local solutions marketing and advertising competitiveoffer to ability enhancedour about enthusiastic equally We’re initiatives. outreach community and programming lev the increasing on focused particularly bewe’ll and market, Phoenix the in ownwill we assets media of portfoliostrong the about veryexcited We’re stations. Phoenix otherour to complement perfecta It’s slot. time and Two popular verythe airs KASW demographic. diversemore and youngera to andappeals country the in stations CW leadingthe of is one Phoenix in KSAW Oz. Dr. andPhil, Dr. Edition, of lineup impressive anfeatures also KTVK as well. newscasts network’s nationalthe beats regularly newscast evening highestthe ofone and Phoenix in t been consistently has Arizona Morning Its Good Arizona. ofstate the in broadcaster other any than moreweek, each news local of 50hours over broadcasts KTVK country. the in stations independent successful most the ofone add will we KTVK, i affiliate CBS the KPHO, ownwe recall, may you As pace. rapida at growing that’s oneand market largest 12th nation’s the in presence our increase will acquisitions the Phoenix In Steve.Thanks, stations. television these on color more some for Karpowicz Paul to over discussion turnthe I’ll Now costs. transition excluding earnings to accretive immediately bewill and strategy return shareholder total successful ourwith consistent are high are These Steve. to it back turnme let Now SEC the carries KMOV that fact the given positive is another SEC the since joining performance sports sports and political additional provides Missou serving from benefits KMOV City, Kansas in affiliate CBS our KCTV, Like viewership. news morningin surge majora saw also KMOV PM. 10:00 PM and 6:00 PM, 5:00 noon, at first finished viewershnewsin increases biggest the ofone saw KMOV book, rating November2013 the During momentum. tremendous with station a acquiring we’reKMOV, In market. Louis St. the in KMOV of tradition strengthenedthe b televisionthe in his careerof most spent dad My Louis. ofSt. hometownmy in presence a havenow will Meredith that thrilledI’m note, personala On group. that to KMOV beadding to excited we’reand market, CBS strong the of impact the with familiarvery we’reCity, Kansas and Hartford, Phoenix, Atlanta, including markets in stations CBS six of operator top another beadding to pleased we’re Louis, St. to turningNow vieyounger to reach provides KASW And market. the in shows syndicated rated highest and programmingnews most the offers KTVK programming. news competitive plus lineup sports and primetime CBS strong the features
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corrected transcript Joseph H. Ceryanec, Chief Financial Officer, Treasurer & VP & Treasurer Officer, Financial Chief Ceryanec, H. Joseph Officer Executive &Chief President Chairman, Lacy, M. Stephen same time period, we repurchased nearly $80 million of our stock and have room to buy more buy to room andhave stock ourof million $80 nearly werepurchased period, time same is repurchasingelement Thethird share. per $1.63 to 60% dividendour raised two past the over and dividend, attractive an is paying element key Another inc drivingare described, just Steve acquisitions, strategic the So everybody.morning good and Steve, Thanks, J ask I’ll Now, time. over stream revenue growinga with shareholders Meredith’s providesrevenues political and retransmission increasing by strengthened business media local the believe We 40%. was margin EBITDA and revenuein million $375record a generated We 65 its inyear best its had GroupMedia Local our 2013, fiscal in recall you ofmost sure I’m As portfolio.our to stations televisionmore add to strategy our about public very been We’ve portfolioGroup Media National multi all BabyTalk, andParenting EatingWell, FamilyFun, Ray, Rachael with Day Everyof addition the and brandfood digital largest world’sthe ofAllrecipes.com, purchase acquisiti media of series a in latest the represent stations These time. over revenues retransmission in increases forpotential the is there webelieve Additionally, advertising. Them group. broadcasting our to additions strong are stations these doubt,a Without Paul. much, very you Thank questions. take to behappy now We’d remarks. preparedour concludes that So conditions. closing customary other and approvalsregulatory to subject 2014, calendarof half first the in to close transactions th ofall We expect financing. placement privateand bank newwith transactions these finance purchase v present the includingAnd step a deliver to structured are transactions These year. full first that in to $0.18 by $0.16share per earnings rate run to beaccretive will that they estimating full first the in million $115 to million $105 of revenuescombined generate to expected arestations these today, announcing we’re acquisitions to the turning So sharehold total the in resultedhave stock, our of appreciation market the with combined strategies These authorization. boardcurrent our under
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corrected transcript QUESTION QUESTION AND ANS little bit on leverage and how we think of that, and Joe will Joeand that, think ofwe how and leverageon bit little a downdrill and back come we’ll then and question, second your on comment to Paul ask to going – – – – – – – – – – – – Paul Karpowicz Karpowicz Paul Karpowicz Paul Lacy Steve Lacy Steve Lacy Steve Lacy Steve Jason Bazinet Bazinet Jason Bazinet Jason Bazinet Jason Bazinet Jason Bazinet Jason Bazinet Jason l. w w w .Ca llStre e t.com • • t.com e llStre .Ca w w w technology, it’s not having a particularly strong impact. As you look at the markets markets at the look you As impact. strong particularly a havingnot it’s technology, – – – – Meredith Meredith Corp. Meredith Corp.>: Meredith Mer Corp.>: Meredith Corp.>: Meredith – – – – – – – – Citigroup Global Markets Inc. (Broker)>: Inc. Markets Global Citigroup (Broker)>: Inc. Markets Global Citigroup (Broker)>: Inc. Markets Global Citigroup (Broker)>: Inc. Markets Global Citigroup Citigroup Global Markets Inc. (Broker)>: Inc. Markets Global Citigroup (Broker)>: Inc. Markets Global Citigroup edith Corp.>: edith Meredith Corp.>: Meredith Corp.>: Meredith WER SECTION WER Company▲ h you when I talk to the buy side about the lowsubscriber the about side buy the to Italk when you h 1 Okay. did. you glad We’re you? areHow Jason. Hi, Yes. so I think we’ll take those in reverse order, and I’m and order, reversein those take we’ll I think so Yes. - ereo, hundreds and hundreds and hundreds of little mini mini little of hundreds and hundreds and hundredsereo, 877 Right, yes. I know that Aereo would love to play that that play to lovewould Aereo that know Iyes. Right, court the throughway its workingAereo With Okay. - CSET ACTS F es to exist. And again, the technologies like Aereo do Aereo like technologies the again,And exist. to es Ticker▲ context of the legal uncertainty that’s still workingstill that’s legaluncertainty the ofcontext MDP handle that. So Paul, why don’t you go you don’t why Paul, So that. handle • • Copyright © © Copyright uiesUdt Call Update Business I did, yes. I just just Iyes. did, I didn’t almost I fine.doing I’m much. so Thanks Okay. followa ask just can I Maybe I one, second thethen And Event Type▲ Event 2001 ings, viewership, ings, - have two quick quick two have 013 20 CallStreet Dec. 23, 201323, Dec. - om Date▲ 4 corrected transcript PNX, which is none of the stations in the transaction. the in stations the ofis none which PNX, – – – – – – – – – – – – – – – Steve Lacy Lacy Steve Lacy Steve Ceryanec Joe Lacy Steve Ceryanec Joe Ceryanec Joe Lacy Steve Karpowicz Paul Ed Atorino Ed Atorino Ed Atorino Ed Bazinet Jason Bazinet Jason Bazinet Jason Bazinet Jason w w w .Ca llStre e t.com • • t.com e llStre .Ca w w w eport, is is KPNXeport, – did they change the call letters? call the they change did – – – – – – – The Benchmark Co. LLC>: Co. Benchmark The The Benchmark Co. LLC>: Co. Benchmark The LLC>: Co. Benchmark The Meredith Meredith Corp. Meredith Corp.>: Meredith Corp.>: Meredith Meredith Corp.>: Meredith Corp.>: Meredith – – – – – – – Meredith Corp.>: Meredith Meredit Corp.>: Meredith – Citigroup Global Markets Inc. (Broker)>: Inc. Markets Global Citigroup Markets Global Citigroup (Broker)>: Inc. Markets Global Citigroup (Broker)>: Inc. Markets Global Citigroup – Corp.>: Meredith hn,Imsry h cl etr r ifrn i h nulrprs than reportsannual the in differentare call letters The sorry. I’mohno, h h Corp.>: Company▲ ta eg owr here?forwardwego as at 1 So, Joe, why don’t you help us a little bit with pro formaprowith bit little a us help you don’t why Joe, So, Yeah, that is the Gannett station. We’re acquiring the Belo the acquiring We’re station. Gannettthe is that Yeah, doing? you are Ed. How you, Thank questions. yourfor Jason, you, Thank - 877 oS.Lusi ne aprhs gemn separate agreementpurchase a is under Louis St. So actually are these beclear, to just Jason, So, Sure. Thank you, Ed. you, Thank stion from the line of Edward Atorino. Please go ahead.go Please Atorino. Edwardofline the from stion And their ability to actually make that work for work that make to actually ability theirAnd - CSET ACTS F Ticker▲ Now, the Belo station, according to the Belo the to accordingstation, Belo the Now, a Ihave deal. terrifica it’s Imean, fine. doingI’m You move.greata what congratulations, First, MDP Inc. (Broker)>: Inc. the fourth quarter, out of the chute our leverageour chute the of out quarter, fourththe es by the end of calendar 2015, which is is which 2015, calendarof end the es by • • Copyright © © Copyright uiesUdt Call Update Business Okay. you. thank Okay, Yes, thank you. thank Yes, Thank helpful. very that’s Okay, Event Type▲ Event 2001 - 013 20 a cable a CallStreet Dec. 23, 201323, Dec. ck Date▲ 5 corrected transcript St. Louis asked that question and w and question that asked Louis St. employees the and Phoenix in station onour show better the got already – – – – – – – – – – – – – – – – – – Joe Ceryanec Ceryanec Joe Lacy Steve Lacy Steve Lacy Steve Lacy Steve Lacy Steve Lacy Steve Lacy Steve Lacy Steve John Crowther Crowther John Atorino Ed Atorino Ed Atorino Ed Atorino Ed Atorino Ed Atorino Ed deal. terrific anyway, At Ed - w w w .Ca llStre e t.com • • t.com e llStre .Ca w w w term impact. But we hope, certainly, that when those come up and we combine those with those wecombine and up come those when that certainly, hope, we But impact. term orino orino ion call it cycle, early, middle, beginning? middle, early, cycle, it call ion – – – – – – – – – – – – – – – short couplea arethere thenAnd that. to leverageable be we’ll that The Benchmark Co. LLC>: Co. Benchmark The LLC>: Co. Benchmark The LLC>: Co. Benchmark The LLC>: Co. Benchmark The LLC>: Co. Benchmark The LLC>: Co. Benchmark The The Benchmark Co. LLC>: Co. Benchmark The Meredith Corp.>: Meredith Meredith Corp. Meredith Corp.>: Meredith Corp.>: Meredith Corp.>: Meredith Corp.>: Meredith Corp.>: Meredith Corp.>: Meredith Meredith Corp.>: Meredith – – Meredith Corp.>: Meredith Piper Jaffray, Inc.>: Inc.>: Jaffray, Piper hould I think about that in terms of the total cash outlay at the front of this this offront at the outlay cash total the of terms in that about Ithink hould amn there? ramming Company▲ e’ll make that determination when the time comes. time the when determination that make e’ll 1 No, I think their programming schedule is very, very strong. strong. very is very, schedule programmingtheir think INo, havenot will and place in are that situations some haveThey Ed. Thanks, KPVK are acquiringwe’re stations of.The aware I’m that Not Joe, do you want to handle how that will work please? workwill that how handle wantto do you Joe, Thanks. Ed. you, Thank at We’veit. look a take certainly will We depends.just It - 877 Sure, so good morning, John. So yes So John. morning, good so Sure, - CSET ACTS F Yes. Thank yo Thank Yes. Ticker▲ How about the programming, any any programming, the aboutHow theirin they are where question, last One Maybe Okay. reports. annual the check to go Igot Bye. Merry Merry again, deal; terrificajust it’s think IYes, bette movingbe you will So obviouslywe’ll on, goes time as And evaluate. MDP Christmas. • • u. First question, I just wanted to make make to wanted I just question, First u. Copyright © © Copyright uiesUdt Call Update Business Event Type▲ Event – one of the employees in employees the ofone r into that market at at market that into r 2001 , KASW, certain , KASW, - – 013 20 do you think think do you - em deals term CallStreet Dec. 23, 201323, Dec. Date▲ 6 corrected transcript right now. So when you look out there, will you still be aggressive in looking for opportunities like like opportunitiesfor looking in aggressive be still you will there, out look you when So now. right l these of numbera are there obviouslyone, last just then – – – – – – – – – – – ongoingof million $44 about that’s million, $110of midpoint at So the safe. pretty is gin on. Joe Ceryanec Ceryanec Joe Lacy Steve Lacy Steve Lacy Steve Ceryanec Joe Lacy Steve Barry Lucas Barry Crowther John Crowther John Crowther John Crowther John c. w w w .Ca llStre e t.com • • t.com e llStre .Ca w w w – - lap in certain markets? certain in lap more to beable be we’ll closed, stations these doget we when Ithink guidance. looking the $407.5 million is the price, the total price. SagamoreHill will be bearing part of that that of part bearingbe will SagamoreHill price. total the price, is the million $407.5the – – – – – Meredith Meredith Corp. Meredith Corp.>: Meredith Corp.>: Meredith Meredith Corp.>: Meredith Corp.>: Meredith – – Gabelli & Company>: Gabelli – – – – Meredith Corp.>: Meredith Meredith Corp.>: Meredith Piper Jaffray, Inc.>: Inc.>: Jaffray, Piper Inc.>: Jaffray, Piper Inc.>: Jaffray, Piper Inc.>: Jaffray, Piper Company▲ nk you know that we’re very focused on the larger end of the of end largerthe on focused verywe’re that know you nk 1 Joe? T you. Thank do to capacity have we believe we again, that, say Iwould - ak o ey much. very you hank 877 Yes, I think IYes, - Thanks, John.Thanks, ish or so EBITDA margins you’ve experienced for the last last the for experienced you’ve margins EBITDA orso ish joint services agreement back with that station. that with back agreement services joint - hn yuadgo morning. goodand you Thank CSET ACTS F Okay, great. That was very helpful. As I think think about I As helpful.very was That great. Okay, Congratulations. right. all Great, And well. as helpful verythat’s Joe, thanks, Great, Ticker▲ MDP eeu post revenue t margins onat coming they’re that to think rect that’s safe, John, because of the fact that that fact the of because John, safe, that’s arger consolidation transactions going on going transactions consolidation arger • • Copyright © © Copyright uiesUdt Call Update Business - closing, and think of it closing the closing it of and think closing, Event Type▲ Event 2001 - 013 20 CallStreet Dec. 23, 201323, Dec. Date▲ 7