Meredith Reports Fiscal 2010 First Quarter Results

Advertising revenue gains at Better Homes and Gardens, Family Circle drive
increase in National Media Group operating profit

DES MOINES, Iowa, Oct. 29 /PRNewswire-FirstCall/ -- Meredith Corporation
(NYSE: MDP), the leading media and marketing company serving American women,
today reported fiscal 2010 first quarter earnings per share of $0.40, compared
to $0.41 in the year-ago period. Revenues were $332 million, compared to $364
million in the prior-year period.

Fiscal 2010 first quarter results included a benefit of $0.06 per share
reflecting a favorable adjustment to deferred income tax liabilities as a
result of state and local legislation enacted during the quarter. Excluding
the tax benefit, first quarter earnings per share were $0.34, in-line with
previously stated expectations. In the first quarter of fiscal 2010, Meredith
recorded $5 million less ($0.07 per share) in net political advertising
revenues when compared to the prior-year period.

"We continued to make meaningful progress on the key elements of our
performance improvement plan," said Meredith President and Chief Executive
Officer Stephen M. Lacy. "Advertising revenues across our core businesses
outperformed both the magazine and television industries in the quarter. Of
note, our two largest-circulation magazines - Better Homes and Gardens and
Family Circle - grew advertising revenues 3 percent and 13 percent,
respectively, during the quarter compared to the prior-year period."

Key elements of Meredith's performance improvement plan - which the company
has been executing for the last five quarters - include (1) gaining market
share; (2) increasing consumer connections; (3) growing new revenues; and (4)
prudently managing expenses and reducing debt. Lacy pointed to these fiscal
2010 first quarter highlights as evidence of Meredith's progress:

-- Sequential quarterly improvement in advertising performance in both
Meredith's National (formerly Publishing) and Local (formerly
Broadcasting) media groups
-- Significant advertising revenue share gains by many of Meredith's
major
consumer magazines
-- Increases in online traffic at Meredith Web sites and in news
viewership
in key television markets
-- Double-digit revenue growth in new revenue streams such as brand
licensing, retransmission fees and video content creation

-- An 8 percent decline in total company operating expenses and a $20
million reduction in debt

OPERATING DETAIL

National Media Group
Fiscal 2010 first quarter National Media Group operating profit was $39
million, a 14 percent increase over the $34 million earned in the prior-year
period. Revenues were $272 million versus $294 million. Advertising revenues
were $137 million - a decline of 5 percent versus the prior-year quarter - but
the third consecutive quarter of advertising performance improvement.

Meredith's share of overall magazine industry advertising revenues increased
to 12.2 percent during the first quarter of fiscal 2010 from 8.7 percent in
the prior-year period, according to the latest data from the Publishers
Information Bureau. Eleven of Meredith's 14 measured titles increased share
of advertising revenues during the quarter, according to PIB.

Profit and related margin in Meredith's circulation activities increased in
the first quarter of fiscal 2010 compared to the prior-year period, driven by
efficiencies in both subscription and newsstand operations. Total circulation
revenues declined 2 percent, primarily as a result of fewer Special Interest
Media titles published and soft retail sales.

Monthly average unique visitors across Meredith's National Media Web sites
rose more than 30 percent to nearly 17 million in the first quarter of fiscal
2010 from the prior-year period, and page views averaged nearly 190 million
per month. The total number of videos viewed per month rose to 1.4 million.
Meredith generated 855,000 online subscriptions during the quarter.

Other revenues within the National Media Group declined in the first quarter
of fiscal 2010 compared to the prior-year period as reductions in Meredith
Integrated Marketing and Meredith Book revenues were partially offset by
higher revenues in Brand Licensing.

Meredith Integrated Marketing was impacted by recession-related cutbacks in
existing programs, primarily in the automotive and retail sectors, as well as
fewer new programs launched compared to the prior-year period. Revenues at
Meredith Books declined and operating profit increased, as planned, due to
implementation of the previously announced licensing agreement with John Wiley
and Sons Inc. Brand Licensing benefitted primarily from the expansion of
Meredith's relationship with Walmart, including a tripling of Better Homes and
Gardens-branded SKUs to 1,500 from the prior-year period.

National Media Group operating expenses declined 10 percent to $233 million in
the first quarter of fiscal 2010 compared to the prior-year period, including
a 9 percent decrease in paper prices.

"While we are still operating in a difficult environment, national media
advertising revenues are trending in the right direction, and we continue to
outperform our major peers and gain share," Lacy said. "Additionally, our
efforts to manage expenses are having a meaningful impact as National Media
Group operating margins increased to 14.2 percent in the quarter from 11.5
percent in the prior-year period."

Local Media Group
Fiscal 2010 first quarter Local Media Group operating profit was $2 million,
compared to $11 million in the prior-year period, primarily due to $5 million
less in net political advertising revenues and continued weakness in
automotive advertising across the industry. Total revenues were $61 million,
compared to $70 million last year.

Non-political revenues were $60 million - a decline of 7 percent in the first
quarter of fiscal 2010 versus the prior-year period - but an improvement over
the 20 percent decline reported in the fourth quarter of fiscal 2009.
Non-political results were also significantly better than the industry as a
whole, according to the most recent data available from the Television Bureau
of Advertising. Automotive-related advertising accounted for more than half
of the decline during the first quarter of fiscal 2010.

During the July sweeps, several Meredith stations increased viewership in key
day parts. Stations in Portland, Hartford and Las Vegas captured a larger
share of morning news viewers and maintained their #1 positions.
Additionally, Atlanta doubled its morning news viewership. In late news,
where ad rates are the highest, Hartford's viewership rose 25 percent, Atlanta
rose 22 percent, and Phoenix rose 14 percent.

Revenues from retransmission fees nearly doubled in the first quarter of
fiscal 2010 from the prior-year period, reflecting Meredith's successful
renegotiation of retransmission agreements with all seven of the major cable
operators in its markets. Revenues at Meredith Video Solutions, Meredith's
in-house video production group, grew strongly. The gains were driven
primarily by growth in custom video projects for corporate clients, as well as
continued expansion of the daily Better television show - now carried in more
than 50 markets reaching more than 40 percent of U.S. households.

Local Media Group operating expenses declined 2 percent in the first quarter
of fiscal 2010, compared to the prior-year period. Meredith continued to
implement its plan to reduce expenses and improve efficiency by centralizing
certain functions - including master control, traffic and research - across
its television stations. The benefits from these activities are expected to
be realized starting in the second half of fiscal 2010.

"We're encouraged by the progress made by our Local Media Group in the first
quarter of fiscal 2010," Lacy said. "Advertising continued to improve as the
quarter progressed, and we grew other sources of revenue, including
retransmission fees and video production activities."

OTHER FINANCIAL INFORMATION
Meredith generated nearly $30 million in cash flow from operations during the
first quarter of fiscal 2010. Meredith's total debt was $360 million at Sept.
30, 2009, $20 million less than at the prior fiscal year end. Meredith's
debt-to-EBITDA ratio was well under existing debt covenants at 1.7 to 1.

All earnings per share figures in the text of this release are diluted. Both
basic and diluted earnings per share can be found in the attached condensed
consolidated statements of earnings.

OUTLOOK
Looking at the second quarter of fiscal 2010, with two of three magazine
issues closed in the National Media Group, advertising revenues are currently
down in the mid single-digit range. Local Media Group non-political
advertising pacings are currently down 8 percent. The Local Media Group will
be cycling against $17 million of net political advertising revenues recorded
in the second quarter of fiscal 2009.

Meredith currently expects fiscal 2010 second quarter earnings per share to
range from $0.33 to $0.38. Looking to the remainder of fiscal 2010, there is
limited visibility into customers' advertising budgets, which generally reset
effective January 1. Meredith continues to expect fiscal 2010 earnings per
share to range from $1.60 to $2.00, excluding the impact of the previously
mentioned deferred income tax liability adjustment.

Meredith expects its effective tax rate to be approximately 40 percent in both
the second quarter and for the full fiscal year, excluding the impact of the
previously mentioned deferred income tax liability adjustment.

A number of uncertainties remain that may affect Meredith's outlook as stated
in this press release for the second fiscal quarter and full year of 2010.
These uncertainties are referenced below under "Safe Harbor" and in certain
SEC filings.

CONFERENCE CALL WEBCAST

Meredith will host a conference call on Oct. 29, 2009, at 11:00 a.m. EDT
(10:00 a.m. CDT) to discuss fiscal 2010 first quarter results. A live webcast
will be accessible to the public on the company's Web site, www.meredith.com,
and a replay will be available for one week after the call. A transcript will
be available within 48 hours following the conference call at
www.meredith.com.

RATIONALE FOR USE AND ACCESS TO NON-GAAP MEASURES

Management uses and presents GAAP and non-GAAP results to evaluate and
communicate the performance of the company. Non-GAAP measures should not be
construed as alternatives to GAAP measures. EBITDA is a common supplemental
measure of performance used by investors and financial analysts. Management
believes that EBITDA provides an additional analytical tool to clarify the
company's results from core operations and delineate underlying trends.
Meredith does not use EBITDA as a measure of liquidity or funds available for
management's discretionary use because it includes certain contractual and
non-discretionary expenditures.

Results excluding the adjustment to deferred income tax liabilities is also a
supplemental non-GAAP financial measure. Management believes this adjustment
is not reflective of Meredith's ongoing business activities. While results
excluding the tax adjustment are not a substitute for reported earnings
results under GAAP, management believes this information is useful as an aid
in better understanding Meredith's current performance, performance trends and
financial condition. Reconciliations of non-GAAP to GAAP measures are
included in the attached tables. The attached consolidated financial
statements and reconciliation tables will be made available at
www.meredith.com.

SAFE HARBOR

This release contains certain forward-looking statements that are subject to
risks and uncertainties. These statements are based on management's current
knowledge and estimates of factors affecting the company and its operations.
Statements in this announcement that are forward-looking include, but are not
limited to, the statements regarding broadcasting pacings and publishing
advertising revenues, along with the company's earnings per share outlook for
the second fiscal quarter and rest of fiscal 2010.

Actual results may differ materially from those currently anticipated.
Factors that could adversely affect future results include, but are not
limited to, downturns in national and/or local economies; a softening of the
domestic advertising market; world, national or local events that could
disrupt broadcast television; increased consolidation among major advertisers
or other events depressing the level of advertising spending; the unexpected
loss or insolvency of one or more major clients; the integration of acquired
businesses; changes in consumer reading, purchasing and/or television viewing
patterns; increases in paper, postage, printing or syndicated programming
costs; changes in television network affiliation agreements; technological
developments affecting products or methods of distribution; changes in
government regulations affecting the company's industries; unexpected changes
in interest rates; and the consequences of acquisitions and/or dispositions.
The company undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.

ABOUT MEREDITH CORPORATION

Meredith Corporation (NYSE:MDP; www.meredith.com) is the leading media and
marketing company serving American women. Meredith combines well-known
national brands - including Better Homes and Gardens, Parents, Ladies' Home
Journal, Family Circle, American Baby, Fitness and More - with local
television brands in fast-growing markets. Meredith is the industry leader in
creating content in key consumer interest areas such as home, family, health
and wellness and self-development. Meredith uses multiple distribution
platforms - including print, television, online, mobile and video - to give
consumers content they desire and to deliver the messages of its marketing
partners. Additionally, Meredith uses its many assets to create powerful
custom marketing solutions for many of the nation's top brands and companies.
Meredith has significantly added to its capabilities in this area through the
acquisition of cutting-edge companies in areas such as online, word-of-mouth
and database marketing.

Meredith Corporation and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)

-------------------------------- ---- ----
Three Months Ended September 30, 2009 2008
-------------------------------- ---- ----
(In thousands except per share data)
Revenues
Advertising $191,816 $211,826
Circulation 69,879 71,413
All other 70,720 80,831
--------- ------ ------
Total revenues 332,415 364,070
-------------- ------- -------
Operating expenses
Production, distribution, and editorial 151,093 170,111
Selling, general, and administrative 139,637 144,952
Depreciation and amortization 10,103 10,856
----------------------------- ------ ------
Total operating expenses 300,833 325,919
------------------------ ------- -------
Earnings from operations 31,582 38,151
Interest income 10 120
Interest expense (5,041) (5,434)
---------------- ------ ------
Earnings from continuing operations before
income taxes 26,551 32,837
Income taxes 8,210 13,769
------------ ----- ------
Earnings from continuing operations 18,341 19,068
Loss from discontinued operations, net of taxes - (431)
----------------------------------------------- --- ----
Net earnings $18,341 $18,637
------------ ------- -------

Basic earnings per share
Earnings from continuing operations $0.41 $0.42
Discontinued operations - (0.01)
----------------------- --- -----
Basic earnings per share $0.41 $0.41
------------------------ ----- -----
Basic average shares outstanding 45,158 45,241
-------------------------------- ------ ------

Diluted earnings per share
Earnings from continuing operations $0.40 $0.42
Discontinued operations - (0.01)
----------------------- --- -----
Diluted earnings per share $0.40 $0.41
-------------------------- ----- -----
Diluted average shares outstanding 45,317 45,368
---------------------------------- ------ ------

Dividends paid per share $0.225 $0.215
------------------------ ------ ------

Meredith Corporation and Subsidiaries
Segment Information (Unaudited)

--------------------------------- ---- ----
Three Months Ended September 30, 2009 2008
--------------------------------- ---- ----
(In thousands)
Revenues
National media group $271,604 $293,667
Local media group
Non-political advertising 53,671 61,648
Political advertising 943 5,871
Other revenues 6,197 2,884
----------------- ----- -----
Total local media group 60,811 70,403
----------------------- ------ ------
Total revenues $332,415 $364,070
-------------- -------- --------

Operating profit
National media group $38,593 $33,890
Local media group 2,400 10,696
Unallocated corporate (9,411) (6,435)
---------------------- ------ ------
Income from operations $31,582 $38,151
---------------------- ------- -------

Depreciation and amortization
National media group $3,507 $3,826
Local media group 6,122 6,069
Unallocated corporate 474 961
---------------------- --- ---
Total depreciation and amortization $10,103 $10,856
----------------------------------- ------- -------

EBITDA(1)
National media group $42,100 $37,716
Local media group 8,522 16,765
Unallocated corporate (8,937) (5,474)
---------------------- ------ ------
Total EBITDA(1) $41,685 $49,007
------------- ------- -------

(1) EBITDA is earnings from continuing operations before interest, taxes,
depreciation, and amortization.

Meredith Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)

September 30, June 30,
Assets 2009 2009
------ ---- ----
(In thousands)
Current assets
Cash and cash equivalents $14,259 $27,910
Accounts receivable, net 211,802 192,367
Inventories 29,592 28,151
Current portion of subscription acquisition
costs 54,466 60,017
Current portion of broadcast rights 17,014 8,297
Other current assets 19,293 23,398
-------------------- ------ ------
Total current assets 346,426 340,140
-------------------- ------- -------
Property, plant, and equipment 449,892 444,904
Less accumulated depreciation (257,277) (253,597)
----------------------------- -------- --------
Net property, plant, and equipment 192,615 191,307
Subscription acquisition costs 64,274 63,444
Broadcast rights 5,429 4,545
Other assets 46,269 45,907
Intangible assets, net 559,233 561,581
Goodwill 462,379 462,379
-------- ------- -------
Total assets $1,676,625 $1,669,303
------------ ---------- ----------

Liabilities and Shareholders' Equity
------------------------------------
Current liabilities
Current portion of long-term debt $75,000 $-
Current portion of long-term broadcast
rights payable 19,615 10,560
Accounts payable 84,455 86,381
Accrued expenses and other liabilities 90,439 81,544
Current portion of unearned subscription
revenues 162,640 170,731
---------------------------------------- ------- -------
Total current liabilities 432,149 349,216
Long-term debt 285,000 380,000
Long-term broadcast rights payable 12,956 11,851
Unearned subscription revenues 146,092 148,393
Deferred income taxes 69,273 64,322
Other noncurrent liabilities 108,992 106,138
---------------------------- ------- -------
Total liabilities 1,054,462 1,059,920
----------------- --------- ---------
Shareholders' equity
Common stock 36,144 35,934
Class B stock 9,130 9,133
Additional paid-in capital 57,812 53,938
Retained earnings 550,138 542,006
Accumulated other comprehensive loss (31,061) (31,628)
------------------------------------ ------- -------
Total shareholders' equity 622,163 609,383
-------------------------- ------- -------
Total liabilities and shareholders' equity $1,676,625 $1,669,303
------------------------------------------ ---------- ----------

Meredith Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)

-------------------------------- ---- ----
Three Months Ended September 30, 2009 2008
-------------------------------- ---- ----
(In thousands)
Net cash provided by operating activities $29,043 $44,549
----------------------------------------- ------- -------

Cash flows from investing activities
Acquisitions of businesses (5,124) (726)
Additions to property, plant, and equipment (8,101) (9,608)
Proceeds from dispositions of assets - 636
------------------------------------ --- ---
Net cash used in investing activities (13,225) (9,698)
-------------------------------------- ------- ------

Cash flows from financing activities
Proceeds from issuance of long-term debt 75,000 100,000
Repayments of long-term debt (95,000) (120,000)
Purchases of Company stock (18) (15,791)
Dividends paid (10,209) (9,747)
Proceeds from common stock issued 713 860
Excess tax benefits from share-based payments 67 853
Other (22) -
----- --- ---
Net cash used in financing activities (29,469) (43,825)
-------------------------------------- ------- -------
Net decrease in cash and cash equivalents (13,651) (8,974)
Cash and cash equivalents at beginning of period 27,910 37,644
------------------------------------------------ ------ ------
Cash and cash equivalents at end of period $14,259 $28,670
------------------------------------------ ------- -------

Meredith Corporation and Subsidiaries Table 1
Supplemental Disclosures Regarding Non-GAAP Financial Measures

EBITDA
Consolidated EBITDA, which is reconciled to earnings from continuing
operations in the following tables, is defined as earnings from
continuing operations before interest, taxes, depreciation, and
amortization.

Segment EBITDA is a measure of segment earnings before depreciation and
amortization.

Segment EBITDA margin is defined as segment EBITDA divided by segment
revenues.

Three Months Ended September 30, 2009
-------------------------------------
National Local
Media Media Unallocated
Group Group Corporate Total
------------- -------- ------ ----------- -----
(In thousands)
Revenues $271,604 $60,811 $- $332,415
-------- ------- --- --------

Operating profit $38,593 $2,400 $(9,411) $31,582
Depreciation and
amortization 3,507 6,122 474 10,103
----- ----- --- ------
EBITDA $42,100 $8,522 $(8,937) 41,685
------- ------ -------
Less:
Depreciation and amortization (10,103)
Net interest expense (5,031)
Income taxes (8,210)
------
Earnings from continuing operations $18,341
-------

Segment EBITDA margin 15.5% 14.0%
---- ----

Three Months Ended September 30, 2008
-------------------------------------
National Local
Media Media Unallocated
Group Group Corporate Total
------------- -------- ------ ----------- -----
(In thousands)
Revenues $293,667 $70,403 $- $364,070
-------- ------- --- --------

Operating profit $33,890 $10,696 $(6,435) $38,151
Depreciation and
amortization 3,826 6,069 961 10,856
----- ----- --- ------
EBITDA $37,716 $16,765 $(5,474) 49,007
------- ------- -------
Less:
Depreciation and amortization (10,856)
Net interest expense (5,314)
Income taxes (13,769)
-------
Earnings from continuing operations $19,068
-------

Segment EBITDA margin 12.8% 23.8%
--------------------- ---- ----

SOURCE Meredith Corporation

Shareholder/Financial Analyst Contact, Mike Lovell, Director of Investor
Relations, +1-515-284-3622, Mike.Lovell@Meredith.com, or Media Contact, Art
Slusark, VP/Corporate Communications, +1-515-284-3404,
Art.Slusark@Meredith.com, both of Meredith Corporation