Midland Paper Awarded ClingZ Distribution

First Quarter Highlights • Total loans grew $6.9 billion (9%) from the prior year to $82.7 billion. • Credit card loans grew $5.8 billion (10%) to $65.6 billion, on Discover card sales volume of $30.9 billion. • Total net charge-off rate, excluding purchased credit-impaired ("PCI") loans, increased 48 basis points from the prior year to 3.17% and the total 30+ day delinquency rate excluding PCI loans increased 26 basis points from the prior year to 2.23%. • Consumer deposits grew $4.2 billion (11%) from the prior year to $41.3 billion. • Payment Services transaction dollar volume was $56.1 billion, up 19% from the prior year. Click Read More below for additional information.

Revenues grew to $3.0 billion, up 5 percent. Earnings from continuing operations were $307 million, compared to a loss of $209 million. Adjusted EBITDA was $683 million, compared to $548 million. Key accomplishments included: *Digital advertising revenues surpassing magazine for the first time in Meredith's history. Digital advertising grew 31 percent. Additionally, Meredith's licensing and digital and other consumer driven revenues grew 27 percent and 25 percent, respectively. *$254 million debt reduction, enabled by record Cash Flow from Operations and Free Cash Flow. Debt reduction was enabled by total company revenue performance along with proactive actions to enhance Meredith's financial flexibility. *Agreeing to sell Meredith's Local Media Group for $2.825 billion, representing a 10x valuation. The transaction, which also includes spinning Meredith's National Media Group, comprising digital and magazine, out to shareholders, is expected to advance the company's financial priorities including reducing net debt, improving financial flexibility, optimizing capital allocation to high-potential opportunities, and providing returns to shareholders.

With all major categories posting gains, unit sales of print books jumped 18% in the week ended June 27, 2020, over the comparable week in 2019, at outlets that report to NPD BookScan. The YA nonfiction category had the biggest increase over the week ended June 29, 2019, with unit sales skyrocketing 111.6%. The increase was led by Stamped: Racism, Antiracism and You by Jason Reynolds and Ibram X. Kendi, which sold more than 30,000 copies, a 145% increase over the week ended June 20. The adult nonfiction category also had a big increase over 2019, with John Bolton’s The Room Where It Happened selling more than 221,000 print copies in its first week, making it the #1 title overall for the week.