$532 million loss for Media General Inc.: 2nd-quarter results reflect charges to adjust asset value

Aug 08, 2008 (Richmond Times-Dispatch - McClatchy-Tribune News Service via COMTEX) -- MEG | Quote | Chart | News | PowerRating -- Aug. 8--Media General Inc., the parent company of the Richmond Times-Dispatch, said yesterday that it took noncash charges that resulted in a $532 million second-quarter loss.

The Richmond-based company said in July that it would take noncash, after-tax impairment charges of $500 million to $550 million, reflecting a decline in the value of intangible assets, such as good will, because of challenging business conditions and the market's perception of the value of media company stocks.

Good will is an accounting term used to reflect the value of such assets as brand names, customer relationships, licenses and patents.

Including the charges, the company reported a second-quarter loss of $532 million, or $24.11 per share, compared with a profit of $5.1 million, or 22 cents per share, in the same period of 2007.

Media General said its pre-tax charges totaled $782 million. Its publishing division, which includes its newspapers, took the largest impairment of $512 million. Other charges included $198 million on the value of its broadcast station licenses, $67 million on network affiliation agreements in the broadcast division, $500,000 on trade names in the broadcast division, and $4.4 million on certain investments and assets held for sale.

Media General publishes 25 daily newspapers, 275 weekly newspapers and other publications, 20 network-affiliated television stations, and Web sites associated with its publications and television stations.

Media General stock closed at $13.21, down 86 cents, on the New York Stock Exchange.

Contact John Reid Blackwell at (804) 775-8123 or jblackwell@timesdispatch.com.

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