INVESTOR PRESENTATION
February 2004
P u b l i s h i n g G r o u p, L L C
2
Forward looking statements
This presentation contains forward-looking statements as that term is used under the Private
Securities Litigation Act of 1995. These forward-looking statements are based on the current
assumptions, expectations and projections of the Company's management about future
events. Although we believe that these statements are based on reasonable assumptions, the
Company can give no assurance that they will prove to be correct. Numerous factors,
including those related to market conditions and those detailed in the confidential offering
memorandum and from time-to-time in the Company’s filings with the Securities and Exchange
Commission, may cause results of the Company to differ materially from those anticipated in
these forward-looking statements. Many of the factors that will determine the Company’s
future results are beyond the ability of the Company to control or predict. These forward-
looking statements are subject to risks and uncertainties and, therefore, actual results may
differ materially. The Company cautions you not to place undue reliance on these forward-
looking statements. The Company undertakes no obligation to revise or update any forward-
looking statements, or to make any other forward-looking statements, whether as a result of
new information, future events or otherwise. All references to “Company” and “MORRIS
PUBLISHING GROUP, LLC” as used throughout this presentation refer to MORRIS
PUBLISHING GROUP, LLC and its subsidiaries. All references to “Issuer” as used throughout
this presentation refer to MORRIS PUBLISHING GROUP, LLC
3
Earnings before net interest expense, including amortization of debt issuance costs, provision for income taxes, depreciation and amortization expense (“EBITDA”) is not a measure of performance defined in accordance with accounting principles generally accepted in the United States of America. However, we believe that EBITDA is useful to investors in evaluating our performance because it is a commonly used financial analysis tool for measuring and comparing media companies in areas of operating performance. EBITDA should not be considered as an alternative to net income as an indicator of our performance or as an alternative to net cash provided by operating activities as a measure of liquidity and may not be comparable to similarly titled measures used by
other companies.
Data on our market position and market share within our industry is based, in part, on independent industry publications, government publications, reports by market research firms or other published independent sources, including Newspaper Association of America and Audit Bureau of Circulation statistics.
Definitions & sources of information
4
Senior management team of Morris Publishing Group, LLC
William S. Morris IIIChairman
Years of experience: 46
William S. Morris IVPresident & Chief Executive Officer
Years of experience: 13
Carl N. CannonExecutive Vice President Years of experience: 38
James C. CurrowExecutive Vice President Years of experience: 39
Craig S. MitchellSenior Vice President Finance & Treasurer &
SecretaryYears of experience: 9
Steve K. StoneSenior Vice President &
CFOYears of experience: 24
5
Years of history and experience
1785
1929
1945
1983
1995
1966
1970
2000
Founding of the Augusta Gazette, now The Augusta Chronicle
William S. Morris Jr., father of today’s CEO, joins Augusta Chronicle
William S. Morris Jr., purchases controlling interest in the newspaper
and fully acquires in 1955
William S. Morris III becomes publisher of the Augusta newspapers
Morris Communications Company is established
Morris purchases The Florida Times-Union
Acquires Topeka, KS based Stauffer Communications and
started online services
William S. Morris III serves as Chairman of the Newspaper Association of America
William S. Morris IV is named President of Morris Communications
1996
2001 William S. Morris IV is named CEO of Morris Publishing
6
Summarized corporate structure
Morris Communications Company, LLC
Morris Publishing Group, LLC,
a Georgia LLC
Other Subsidiaries
MCC Outdoor Morris Book Publishing, LLC MCC Magazines, LLC MCC Radio, LLC MStar Solutions, LLC Best Read Guides Franchise Company, LLC MCC Events, LLC Shivers Investments, LLC Morris Air, LLC
Morris PublishingFinance Co.,
a Georgia Corp.
OperatingSubsidiaries
9 months ending September 30, 2003:
% Operating revenues 77% 23%
% EBITDA 93% 7%
7
Investment considerations
Strong management with an average of approximately 30 years of publishing experience
Relatively less cyclical publishing business
Leading competitive position in all of our markets
Complement print media with leading local websites
Operating strategy focused on increasing readership & reducing costs
Low leverage and strong cash flow generating model
Leading provider of local news, advertising and information
8
Geographically diverse, focused on local markets
Total 2002 revenues = $433.4 million
Daily circulation>50,000Daily circulation<50,000
Corporate headquarters
ARConway
FLJacksonvilleSt. AugustineWinter HavenGA
AthensAugustaSavannah
KSDodge CityNewtonPittsburghTopeka
MIHillsdaleHolland
MNBrainerd
MOHannibalIndependence/
Blue Springs
NEGrand IslandYork
OKArdmoreShawnee
SDYankton
TXAmarilloLubbock
26 daily newspapers
TNOak Ridge
AKJuneauKenai
Morris also publishes 11 non-daily and 23 free community newspapers
‘02-’07householdgrowth U.S.
Morris’ topsix markets
Growth 6.0% 7.0%
Source: DemographicsNow
9
Stability in revenue base
Year-over-Year revenue changeMorris Publishing 9mos’03 revenues
Total = $322.9 million
Circulation17%
Other4%
Advertising79%
1 Industry includes newspaper revenue of Gannett, Journal Register, Knight Ridder, New York Times, McClatchy, Pulitzer
(15)%
(10)%
(5)%
0%
5%
10%
15%
1998 1999 2000 2001 2002 9mos2003
Morris Industry¹
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Relatively less cyclical advertising mix
9mos’03 Morris ad revenue segmentation Category advertising spend
Source: Newspaper Association of America; Wall Street researchSource: Company
Total = $256 million
Classified40%
National7%
Retail53%
(20)%
(15)%
(10)%
(5)%
0%
5%
10%
15%
20%
1996
1997
1998
1999
2000
2001
2002
2003
E
Retail National Classified
Year-over-Year change
11
(20)%
(15)%
(10)%
(5)%
0%
5%
10%
15%
20%
1998 1999 2000 2001 2002 9mos 2003
Morris classifieds are more stable than peers
Classified revenue, Year-over-Year % change
Source: SEC filings and Company financials
MorrisGannett
Journal Register
Knight Ridder
E.W. Scripps
Tribune
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Newspapers take the largest share of local advertising . . .
Source: Wall Street research
U.S. local advertising market mix - 2003E
$ 85 billion market ... $ 37 billion newspaper opportunity
Newspaper43%
Broadcast TV15%
Cable TV5%
Radio18%
Yellow Pages14%
Other2%
Outdoor4%
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. . . and deliver significant results for their customers
Medium most used to check advertising prior to making a purchase
Source: Scarborough Research
14
Competition from other local media
2002 market share by media
Source: BEA, Company analysis
Newspaper is the primary media source
$207
$62$51
$37$51 $4245%
51% 55% 58% 45% 53%
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Leader in daily circulation
Market Morris %share #2 %share #3 - #4 %share
Jacksonville, FL 99% 1% -
Augusta, GA1 81% 17% 2%
Savannah, GA 97% 3% 0%
Topeka, KS 96% 3% 0%
Lubbock, TX 94% 6% 0%
Amarillo, TX 97% 3% 0%
% share of daily circulation
1 Includes Aiken, SCSource: Audit Bureau of Circulation, Most Recent Audit Reports, 2001 and 2002
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Key daily newspapers Dominant media in an isolated market - 96.5% of daily newspaper circulation Household income is expected to grow almost 40% faster than the national
average through 2007
AmarilloAmarillo
LubbockLubbock
AugustaAugusta Household growth is expected to exceed U.S. average by 29% through 2007 Limited daily newspaper competition
Rapidly growing market with strong manufacturing and tourist sectors and nation’s 5th largest cargo port
Household growth in the MSA is projected to grow 19% faster through 2007
Among the highest profit margins of any newspaper in the Morris group Household income expected to grow 37% faster than the U.S. average through
2007
SavannahSavannah
TopekaTopeka High advertising and newsroom color capacity through renovation of packaging
and distribution facility and new press Stable and consistent cash flow performance with little to no print competition
Source: DemographicsNow SRC, LLC Demographic data copyrighted 2002 by Experian/Applied Geographic Solutions
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The Florida Times-Union
Circulation of 166,812 daily and 228,865 on Sundays
Population grew 21% between 1990 and 2000
Consistently generates one of the highest cash flow margins in the company
A strong advertising market share among major Morris newspapers
Penetration is 33% for Daily and 45% for Sunday in the Jacksonville market
Average readership in the core market is 37% for Daily and 56% for Sunday newspapers
Strong internet presence
2002–2007 Household growth
Source: DemographicsNow
Upside potential from Super Bowl 2005
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Growing online focus and initiatives
Every Morris daily newspaper has a complementary website
Source: Borell Associates Inc., 2003
2002 share of local advertising spending
Newspaper sites
Three portals (MSN, AOL & Yahoo)
TV & Radio sites
Online Yellow pages
Onlineverticals
Preferred medium to get local information
Source: Technographics Research, March 27, 2003
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Industry leading websites driving growth
NAA Digital Edge Awards1
CompanyNo. of
awards
Morris Publishing 16
Washington Post 9
Tribune 9
New York Times 7
E.W. Scripps 6
Knight Ridder 5
McClatchy 4
Belo 3
Gannett 1
1 Awards presented 1998-2002
Source: Company data
Morris page impressions (millions)
1998
- 20
02 C
AGR = 76
%
Source: Newspaper Association of America
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Readership Niche publications
High editorial quality and targeted market focus
Editorial quality drives readership loyalty
Source: Morris reader behavior study, October 2002
Maximizing advertising market share
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Key initiatives to further improve profitability
Participating in Shared Service Center Simplifying, standardizing & centralizing most administrative
functions Leveraging purchase power Participation in a newsprint consortium Cost synergies by leveraging technologies Expect to fully implement by end of 2005, and save up to $10
million per year
Creation of operating efficiencies Consolidation of printing and back office production activities by
producing our weekly newspapers, free distribution shoppers, additional niche or regional publications using the facilities of daily newspapers
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FINANCIAL OVERVIEWFINANCIAL OVERVIEW
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1998 1999 2000 2001 2002 9mos 2002 9mos 2003
Advertising Circulation Other
Historical revenue mix
($ millions)
$329.3 $341.7 $356.8 $341.9 $343.0$251.4 $255.9
$77.7$77.1
$76.5$74.8 $71.9
$53.9 $53.5
$25.1$22.1$429.5 $433.4$437.5
$455.4$443.9
$319.0 $332.9
$13.6
$18.5$20.8$22.5
Year-over-year change 3.4% 2.6% (3.9)% (0.9)% 1.2%
$13.5
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Cost structure and profitability
1998 1999 2000 2001 20029mos2002
9mos2003
Revenue $429.5 $443.9 $455.4 $437.5 $433.4 $319.0 $322.9
Labor and employee benefits 142.4 153.4 161.2 163.1 162.5 118.8 127.4
% of sales 33.2% 34.6% 35.4% 37.3% 37.5% 37.3% 39.4%
Newsprint, ink and supplements 66.2 61.6 66.4 62.2 48.8 36.4 37.6
% of sales 15.4% 13.9% 14.6% 14.2% 11.3% 11.4% 11.6%
Other operating costs 106.4 108.4 113.0 106.2 110.1 77.3 82.6
% of sales 24.8% 24.4% 24.8% 24.3% 25.4% 24.2% 25.6%
Depreciation and amortization 29.8 30.4 31.8 31.8 18.1 13.5 11.0
EBITDA $114.2 $120.1 $114.2 $104.1 $111.7 $86.4 $75.1
EBITDA margin 26.6% 27.1% 25.1% 23.8% 25.8% 27.1% 23.3%
Historical operating costs ($ millions)
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EBITDA comparison to peers
2000 EBITDA margins 2001 EBITDA margins 2002 EBITDA margins
1 Average of Dow Jones, Lee Enterprises, Tribune, Journal Register, Knight Ridder, Media General, Hollinger, MediaNews, McClatchy, Liberty Group Publishing, New York Times, RR Donnely
Morris Morris Morris
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Near-term profitability
25.8%
23.3%
2002 9mos 2003
EBITDA margin
Strategic investment in “Shared Service Center”
Duplicative work force during transition phase
Cost synergies by leveraging technologies
Consolidation of printing, production & back office activities
28-30%
Target
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Growing cash flows
$41
$49
$57
$47
$58
2000 2001 2002 9mos 2002 9mos 2003
36%
52%
65% 63%
47%
2000 2001 2002 9mos 2002 9mos 2003
Pre-tax free cash flow Pre-tax free cash flow/EBITDA$ millions
Note: Pre-tax free cash flow is defined as EBITDA less interest expense, less capex, less change in working capital
28
Summarized corporate structure
Morris Communications Company, LLC
Morris Publishing Group, LLC,
a Georgia LLC
Other Subsidiaries
MCC Outdoor Morris Book Publishing, LLC MCC Magazines, LLC MCC Radio, LLC MStar Solutions, LLC Best Read Guides Franchise Company, LLC MCC Events, LLC Shivers Investments, LLC Morris Air, LLC
Morris PublishingFinance Co.,
a Georgia Corp.
OperatingSubsidiaries
9 months ending on Sept 30, 2003:
Revenues $322.9 $94.2
% Revenues 77.4% 22.6%
EBITDA $75.1 $5.4
% EBITDA 93.3% 6.7%¹Shivers Investments, LLC is an unrestricted subsidiary
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Capital structure
As of September 30, 2003
Debt
Revolver (Sept ’10) $19.0
Term loan (March ‘11) 225.0
Total credit facilities $244.0
New Senior subordinated notes 300.0
Total debt $544.0
Member’s deficit (134.1)
Total capitalization $409.9
Total debt/ LTM EBITDA 5.4x
LTM EBITDA/ Interest expense 4.2x
($ millions)
30
4.5x
5.0x
5.2x
4.6x
5.0x5.1x
4.7x
5.4x
$583
$544
$545
$566
$538$516
$513
$522
1998 1999 2000 2001 2002 Mar'03 June'03 Sep'03
Leverage profile
Credit statistics
Total debt LTM debt/EBITDA