<Page>
Exhibit 99.2
FOR IMMEDIATE RELEASE
PRIMEDIA REPORTS FOURTH QUARTER 2003 RESULTS
NEW ORGANIZATIONAL STRUCTURE AND SEGMENT REPORTING
- - PRIMEDIA has announced today a new strategic operating structure for the
company that aligns its businesses into four new segments. The four
segments, Enthusiast Media, Consumer Guides, Business Information, and
Education and Training, align the company's businesses based on common
operating strategies, target markets and investment characteristics,
providing both management and the investor community with greater clarity
and visibility on the performance of the company's key businesses.
Quarterly historical results for these four segments for the past two years
are attached to this press release.
RESULTS
<Table>
<Caption>
Fourth Quarter Full Year
---------------------------- Percent ---------------------------- Percent
($ millions) 2003 2002 Change 2003 2002 Change
------------ ------------ ------------ ------------ ------------ ------------
Segment Revenues, net (a):
Enthusiast Media $ 184.5 $ 191.0 -3.4% $ 725.9 $ 740.4 -2.0%
Consumer Guides 70.1 69.2 1.3% 276.6 267.2 3.5%
Business Information 62.8 68.1 -7.8% 228.8 259.0 -11.7%
Education and Training 34.3 38.7 -11.4% 119.8 146.6 -18.3%
Intersegment Eliminations (0.7) (1.6) (5.5) (14.1)
------------ ------------ ------------ ------------
Total Net Revenues $ 351.0 $ 365.4 -3.9% $ 1,345.6 $ 1,399.1 -3.8%
Segment EBITDA (b):
Enthusiast Media $ 42.0 $ 45.6 -7.9% $ 146.9 $ 131.9 11.4%
Consumer Guides 23.8 23.6 0.8% 83.2 73.3 13.5%
Business Information 17.6 17.3 1.7% 34.2 38.4 -10.9%
Education and Training 3.9 12.3 -68.3% 5.7 34.8 -83.6%
Corporate Overhead (5.2) (7.2) (25.9) (30.9)
Operating Income/(Loss) $ 26.5 $ (108.6) $ 82.4 $ (100.3)
Income/(Loss) Applicable to
Common Shareholders $ 4.0 $ (87.4) $ (3.0) $ (647.1)
</Table>
a) For continuing businesses. This presentation eliminates all
intrasegment activity.
b) For continuing businesses. Reconciled to GAAP measure in the
attached table.
- - Consolidated revenues were $351.0 million, down $14.4 million or 3.9%, in
fourth quarter 2003(1). Approximately $11 million of the decline was due to
lost revenue from product shutdowns and the impact of the rate base
reduction at the soap opera titles implemented earlier this year. The
balance of the decline was due primarily to continued weakness in trade
advertising, declines in circulation revenue in enthusiast magazines, and
declines in Workplace Learning and Films for the Humanities, partially
offset by revenue increases at the distribution arm of Consumer Guides.
- ----------
(1) All comparisons in this press release are to the same quarter of the prior
year, unless otherwise indicated.
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- - Operating income improved due primarily to the net decrease of $127.3
million in the non-cash impairment charge taken in fourth quarter 2003
versus the charge recorded in 2002.
- - In the fourth quarter 2003, the company incurred charges totaling $5.1
million for the settlement of certain lawsuits and the impairment of
certain deferred programming assets. There was no similar expense in the
fourth quarter 2002.
- - The company prospectively adopted SFAS 123 in the fourth quarter 2003 and
began recording employee stock-based non-cash compensation under the fair
value method resulting in a fourth quarter charge of $6.0 million.
2004 GUIDANCE
- - Full year 2004 revenues are targeted to grow in the low single digit
percentage range, with Segment EBITDA for PRIMEDIA's four business segments
after Corporate Overhead targeted to grow in the mid single digit
percentage range. The second half of 2004 is expected to show most of that
growth for the year, with the first half performance affected by soft
industry fundamentals.
CONSOLIDATED FOURTH QUARTER 2003 RESULTS
New York, NY, February 5, 2004 - PRIMEDIA Inc. (NYSE: PRM) today announced that
consolidated revenues were $351.0 million in fourth quarter 2003, down $14.4
million or 3.9%. Operating income was $26.5 million in fourth quarter 2003
versus a loss of $108.6 million in the comparable period of 2002. The
improvement in operating income was due primarily to the net decrease of $127.3
million in the non-cash impairment charge taken in fourth quarter 2003 versus
the charge recorded in 2002. Income applicable to common shareholders was $4.0
million in the fourth quarter 2003, compared to a loss of $87.4 million in the
fourth quarter 2002. Income applicable to common shareholders per common share
was $0.02 in fourth quarter 2003, compared to a loss of $0.34 per share in the
same period last year.
Kelly Conlin, CEO and President of PRIMEDIA, said, "While our results for the
fourth quarter 2003 were in line with overall industry trends, we are striving
for more. Over the past two years, the company successfully completed its asset
divestiture and cost reduction programs and, in 2004, we are focused on growing
the top line and expanding margins. 2004 will be a year of investing in our
businesses and rebuilding for growth.
"We've created an organizational structure which simplifies and clarifies the
company. The businesses within each segment have common characteristics in terms
of markets and strategy, and the new organization defines PRIMEDIA's platforms
for growth. Our strategy is clear - PRIMEDIA is focused on its core businesses
and will grow through maximizing and expanding its market-leading brands. With
new leadership and a stronger balance sheet, we are very excited as PRIMEDIA
enters its next chapter."
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SEGMENT RESULTS
ENTHUSIAST MEDIA (Includes: consumer magazines, their related Web sites, events,
and About.com)
<Table>
<Caption>
FOURTH QUARTER
--------------------------- PERCENT
($ millions) 2003 2002 CHANGE
------------ ------------ -----------
Revenues, net (1):
Advertising $ 98.6 $ 101.3 -2.7%
Circulation 72.4 77.9 -7.1%
Other 13.1 11.5 13.9%
Intersegment Revenues 0.4 0.3 33.3%
------------ ------------
Total Net Revenues $ 184.5 $ 191.0 -3.4%
Segment Expenses $ 142.5 $ 145.4 -2.0%
Enthusiast Media Segment EBITDA (2) $ 42.0 $ 45.6 -7.9%
</Table>
(1) For continuing businesses. This presentation eliminates all
intrasegment activity.
(2) For continuing businesses. Reconciled to GAAP measure in the
attached table.
Enthusiast Media Segment revenues were $184.5 million in fourth quarter 2003,
down $6.5 million or 3.4%.
Advertising revenues were $98.6 million in fourth quarter 2003, down $2.7
million or 2.7%. Magazine advertising revenue was essentially flat for the
quarter, after adjusting for approximately $4.0 million of lost revenue from
product shutdowns and approximately $1.1 million of advertising revenue decline
related to the rate base reduction at the soap opera titles. PRIMEDIA's
strongest advertising revenue gains were at MOTOR TREND and in the Crafts,
History, Import Automotive, Outdoor and Home Tech magazine groups, offset by
softness in the Lowrider, Motorcycle, Motorsports and Soap Opera magazine
groups. In the fourth quarter 2003, PRIMEDIA enthusiast magazine advertising
pages at continuing titles were down 2.7%, compared to an overall industry
advertising page decline of 3.3%, as reported by the Publishers Information
Bureau.
Circulation revenues were $72.4 million, down $5.5 million or 7.1% in fourth
quarter 2003. The decline was due primarily to $5.0 million of lost circulation
revenue resulting from the rate base reduction at the soap opera titles. Single
copy revenues were negatively affected by the continuing strike at over 800
grocery stores in Southern California, which is a large market for PRIMEDIA's
automotive enthusiast and outdoor sports magazines. Overall, single copy units
for PRIMEDIA's enthusiast magazines were down 5.2% for the six months ended
December 31, 2003, compared to the industry average decline of 13.4%, as
reported by the International Periodical Distributors Association.
Other revenues include licensing, list rental, events and other items, and were
$13.1 million, up $1.6 million or 13.9% in fourth quarter 2003. The gain was due
primarily to growth in events and licensing revenue.
Enthusiast Media Segment expenses were $142.5 million in fourth quarter 2003,
down $2.9 million or 2.0%. In the fourth quarter 2003, the company incurred $2.3
million in costs related to the settlement of certain lawsuits resulting from
pre-acquisition About contracts. There was no
<Page>
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similar expense in the fourth quarter 2002. The only similar claim pending is
much less significant.
Enthusiast Media Segment EBITDA was $42.0 million, down $3.6 million or 7.9% in
fourth quarter 2003. Segment EBITDA margin was 22.8% in fourth quarter 2003,
down from 23.9% in the fourth quarter of 2002.
CONSUMER GUIDES (Includes: APARTMENT GUIDE, NEW HOMES GUIDE, their Web sites and
DistribuTech)
<Table>
<Caption>
FOURTH QUARTER
-------------------- PERCENT
($ millions) 2003 2002 CHANGE
--------- -------- -------
Revenues, net (1):
Advertising $ 59.0 $ 59.4 -0.7%
Other 11.1 9.8 13.3%
--------- --------
Total Net Revenues $ 70.1 $ 69.2 1.3%
Segment Expenses $ 46.3 $ 45.6 1.5%
Consumer Guides Segment EBITDA (2) $ 23.8 $ 23.6 0.8%
</Table>
(1) For continuing businesses. This presentation eliminates all
intrasegment activity.
(2) For continuing businesses. Reconciled to GAAP measure in the
attached table
Consumer Guides Segment revenues were $70.1 million in fourth quarter 2003, up
$0.9 million or 1.3%.
Advertising revenues were $59.0 million, down $0.4 million or 0.7% in fourth
quarter 2003. The apartment market continues to be challenged due to a high
level of apartment vacancies. These vacancies result in pressure on property
managers' marketing budgets which continues to affect advertising revenues for
APARTMENT GUIDE in the fourth quarter 2003.
Other revenues were $11.1 million, up $1.3 million or 13.3% in fourth quarter
2003. Other revenues represent primarily revenues from its distribution arm,
DistribuTech, which continued its growth in distributing third party free
publications.
Consumer Guides Segment expenses were $46.3 million in fourth quarter 2003, up
$0.7 million or 1.5%. Increases in marketing, distribution and other general
expenses were partially offset by declines in cost of goods sold and editorial
expenses.
In December 2003, Consumer Guides acquired the leading apartment directory
serving the Portland, Oregon market, which brings the number of APARTMENT GUIDES
to 81.
Consumer Guides Segment EBITDA was $23.8 million, up $0.2 million or 0.8% in
fourth quarter 2003. Segment EBITDA margin was 34.0% in fourth quarter 2003,
down from 34.1% in the fourth quarter of 2002.
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BUSINESS INFORMATION (Includes: trade magazines and their related Web sites,
events, directories and data products)
<Table>
<Caption>
FOURTH QUARTER
-------------------- PERCENT
($ millions) 2003 2002 CHANGE
--------- -------- --------
Revenues, net (1):
Advertising $ 41.7 $ 46.7 -10.7%
Circulation 5.6 6.2 -9.7%
Other 15.5 15.2 2.0%
--------- --------
Total Net Revenues $ 62.8 $ 68.1 -7.8%
Segment Expenses $ 45.2 $ 50.8 -11.0%
Business Information Segment EBITDA (2) $ 17.6 $ 17.3 1.7%
</Table>
(1) For continuing businesses. This presentation eliminates all
intrasegment activity.
(2) For continuing businesses. Reconciled to GAAP measure in the
attached table.
Business Information Segment revenues were $62.8 million in fourth quarter 2003,
down $5.3 million or 7.8%.
Advertising revenues for trade magazines were $41.7 million, down $5.0 million
or 10.7% in fourth quarter 2003. Results were affected by weakness across
several trade magazine categories, primarily the printing and packaging,
communications and entertainment categories. Additionally, revenues related to
certain products that were shut down in 2003 caused a year over year decline of
approximately $1.1 million from fourth quarter 2002. For 2003, the decline in
PRIMEDIA's trade magazine advertising pages was in line with comparable sectors
of the industry.
Circulation revenues, which consist of subscriptions to directories and data
products, were $5.6 million, down $0.6 million or 9.7% in fourth quarter 2003.
Other revenues, which consist of trade shows, licensing, consulting and list
rental, were $15.5 million, up $0.3 million or 2.0% in fourth quarter 2003.
Business Information Segment expenses were $45.2 million in fourth quarter 2003,
down $5.6 million or 11.0%. Expenses in virtually all categories declined in
fourth quarter 2003.
Business Information Segment EBITDA was $17.6 million, up $0.3 million or 1.7%
in fourth quarter 2003. Segment EBITDA margin was 28.0% in fourth quarter 2003,
up from 25.4% in the fourth quarter of 2002.
<Page>
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EDUCATION AND TRAINING (Includes: Workplace Learning, Channel One and Films for
the Humanities)
<Table>
<Caption>
FOURTH QUARTER
-------------------- PERCENT
($ millions) 2003 2002 CHANGE
--------- -------- --------
Revenues, net (1):
Advertising $ 15.0 $ 15.8 -5.1%
Circulation 6.5 6.8 -4.4%
Other 12.5 14.8 -15.5%
Intersegment Revenues 0.3 1.3 -76.9%
--------- --------
Total Net Revenues $ 34.3 $ 38.7 -11.4%
Segment Expenses $ 30.4 $ 26.4 15.2%
Education and Training Segment EBITDA (2) $ 3.9 $ 12.3 -68.3%
</Table>
(1) For continuing businesses. This presentation eliminates all
intrasegment activity.
(2) For continuing businesses. Reconciled to GAAP measure in the
attached table.
Education and Training Segment revenues were $34.3 million in fourth quarter
2003, down $4.4 million or 11.4%.
Advertising revenues, which are all from Channel One, were $15.0 million, down
$0.8 million or 5.1% in the fourth quarter 2003. In the Circulation and Other
revenue categories, cutbacks in corporate training demand continue to pressure
Workplace Learning subscription revenues and product sales. Also in the Other
revenue category, declines at Films for the Humanities reflect continuing
constraints on state and local education budgets.
In the fourth quarter 2003, the company recorded a non-cash charge of $2.8
million for the impairment of certain deferred programming assets at its
Workplace Learning unit. There was no similar expense in fourth quarter 2002.
Education and Training Segment EBITDA was $3.9 million, down $8.4 million or
68.3% in fourth quarter 2003. Segment EBITDA margin was 11.4% in fourth quarter
2003, down from 31.8% in the fourth quarter of 2002.
DEPRECIATION, AMORTIZATION AND INTEREST EXPENSE
Depreciation expense was approximately $13.2 million in the fourth quarter 2003
versus $23.9 million in the same period of the prior year, which included a $9.4
million non-cash impairment provision for certain long-lived depreciable assets
required by SFAS 144, "Accounting for the Impairment or Disposal of Long-lived
Assets". Amortization expense was $25.0 million in the fourth quarter 2003,
including a $14.8 million impairment provision resulting from the Company's
annual impairment test for goodwill and indefinite-lived intangible assets under
SFAS 142 "Goodwill and Other Intangible Assets", compared to $147.2 million in
the same period of the prior year, including a $132.7 million impairment
provision required by SFAS 142. Fourth quarter 2003 non-cash impairment charges
for goodwill and certain long-lived intangible assets related to the Education
and Training Segment ($12.4 million) and the Enthusiast Media Segment ($2.4
million). Fourth quarter 2002 impairments related to the Education and Training
Segment ($59.4 million), the Business Information Segment ($49.1 million) and
the Enthusiast Media Segment ($24.2
<Page>
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million). Excluding impairments, amortization expense declined from last year
due primarily to the divestiture of certain titles, intangibles that became
fully amortized and lower intangible balances resulting from impairment charges
required by SFAS 144, all occurring in 2002. Interest expense was approximately
$29.0 million in the fourth quarter 2003 and decreased by $4.7 million as a
result of reduced debt levels and lower interest rates.
SEVERANCE RELATED TO SEPARATED SENIOR EXECUTIVE
The company recorded a charge of approximately $3.8 million in the fourth
quarter 2003 relating to severance payments for the former Interim CEO and
President. Additionally, as part of the severance agreement, this employee
received an extension of the expiration period of previously granted stock
options. Due to the adoption of SFAS 123, the company recorded a non-cash charge
of $5.1 million related to this extension in the fourth quarter 2003, which is
included in the Non-cash Compensation and Non-recurring Charges line in the
Financial Highlights Table.
STOCK-BASED NON-CASH COMPENSATION - ADOPTION OF SFAS 123
In December 2002, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") 148, "Accounting for
Stock-Based Compensation - Transition and Disclosure - an Amendment of FASB
Statement No. 123," which amends SFAS 123, "Accounting for Stock-Based
Compensation" to provide alternative methods of transition for a voluntary
change to the fair value based method of accounting for stock-based employee
compensation. The company prospectively adopted SFAS 123 in the fourth quarter
2003 and began recording employee stock-based compensation under the fair value
method effective January 1, 2003. The adoption of SFAS 123 resulted in a
non-cash compensation charge of $6.0 million including the charge of $5.1
million for severance related to the separated senior executive. The impact of
adoption on the first three quarters of 2003 was not significant.
PROVISION FOR SEVERANCE, CLOSURES AND RESTRUCTURING
The company recorded a Provision for Severance, Closures and Restructuring of
approximately $5.2 million in the fourth quarter 2003, compared to $22.8 million
in fourth quarter 2002. Full year 2003 restructuring charges were $8.7 million
compared to $49.7 million for 2002.
ADOPTION OF SFAS 150, "ACCOUNTING FOR CERTAIN FINANCIAL INSTRUMENTS WITH
CHARACTERISTICS OF BOTH LIABILITIES AND EQUITY"
In the third quarter of 2003, the Company prospectively adopted SFAS 150,
effective July 1, 2003. The SFAS 150 adoption had no impact on income/(loss)
applicable to common shareholders and per common share for any of the periods
presented. SFAS 150 requires the company to classify as long-term liabilities
its Series D, F and H Exchangeable Preferred Stock and to reclassify dividends
from this preferred stock to interest expense. Such stock is now described as
"Shares Subject to Mandatory Redemption" on the Financial Highlights Table and
dividends on these shares are now included in pre-tax income (interest expense)
whereas previously they were presented below net income (loss) as preferred
stock dividends. The adoption of SFAS 150 increased the loss before income taxes
for the three and twelve-month periods ended December 31, 2003 by $10.9 and
$21.9 million, respectively. If SFAS 150 had been adopted on July 1, 2002, loss
before income taxes would have increased by $11.5 million and $23.5 million,
respectively, for the comparable periods for 2002.
<Page>
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DISCONTINUED OPERATIONS
The company sold its realestate.com business, whose results have been classified
as discontinued operations. In the fourth quarter 2003 and full year 2003,
realestate.com had revenues of $0.7 million and $2.4 million, and Segment EBITDA
of $0.0 million and $(2.2) million, respectively.
LIQUIDITY
The company continues to have more than adequate financial resources to meet its
cash needs and service its debt and other fixed obligations for the foreseeable
future.
COVENANT COMPLIANCE
The leverage ratio, as defined by the company's credit agreements, for the 12
month period ended December 31, 2003 is estimated to be approximately 5.1 times,
well below the permitted maximum of 6.0 times.
GUIDANCE
Full year 2004 revenues are targeted to grow in the low single digit percentage
range. The company has assumed improving industry fundamentals as 2004
progresses for consumer magazine advertising growth and expects single copy
sales of consumer magazines to continue to face challenges, especially in the
first half of 2004. Growth at Consumer Guides is expected to gain momentum in
the third and fourth quarters as its entries into new markets begin to show
results. Trade advertising and trade shows are expected to stabilize in 2004.
Education and Training is expected to improve as 2004 progresses. The company
expects to continue its tight control on operating costs.
Full year 2004 Segment EBITDA for PRIMEDIA's four business segments after
Corporate Overhead is targeted to grow in the mid single digit percentage range.
The second half of 2004 is expected to show most of that growth for the year,
with the first half performance affected by soft industry fundamentals. New
investments and early year strategic moves are expected to show results in the
second half of the year.
In 2004, the company will invest in its businesses and build on its platforms
for growth. The company has powerful brands and franchises that can grow through
broadening distribution, introducing new products, freshening existing ones,
expanding into new markets and extending brands through licensing and
merchandising agreements with strategic partners.
USE OF SEGMENT EBITDA
The company has recently organized into four business segments - Enthusiast
Media, Consumer Guides, Business Information, and Education and Training, and
financial reporting has been changed to reflect that organization.
Enthusiast Media Segment EBITDA, Consumer Guides Segment EBITDA, Business
Information Segment EBITDA, and Education and Training Segment EBITDA are
reconciled to Net Income in the attached table. Segment EBITDA for a segment is
defined as segment earnings before interest, taxes, depreciation, amortization
and other credits (charges). Other credits (charges)
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Page 9
include severance related to senior executives, non-cash compensation and
non-recurring charges, provision for severance, closures and restructuring
related costs and gain (loss) on sale of businesses and other, net. We believe
that Segment EBITDA is the most accurate indicator of the company's segment
results because it focuses on revenue and operating costs driven by operating
managers' performance. These segment results are used by the company's chief
operating decision maker to make decisions about resources to be allocated to
the segments and to assess their performance.
INVESTOR CONFERENCE CALL
PRIMEDIA's management will hold a conference call on Thursday, February 5, 2004
at 10:00 AM Eastern Time. In order to participate in the call, please dial
1-800-223-9488 from the United States or 1-785-832-2041 from international
locations. The conference ID is PRIMEDIA. To listen to the call on the Internet,
please go to our website, www.primedia.com.
The recorded version will be available after the conference call by dialing
1-800-938-0997 from the United States or 1-402-220-1541 from international
locations. The replay will be available two hours after the completion of the
call until 7:00 PM, Eastern Time, on February 12, 2004.
ABOUT PRIMEDIA
PRIMEDIA is the leading targeted media company in the United States. With 2003
revenues from continuing businesses of $1.3 billion, our properties deliver
content via print as well as the Internet, live events and video and offer
highly effective advertising and marketing solutions in some of the most sought
after niche markets. PRIMEDIA Enthusiast Media includes more than 120 consumer
magazines, their web sites and About.com, and is the #1 special interest
magazine publisher in the U.S. with well-known brands such as MOTOR TREND,
AUTOMOBILE, CREATING KEEPSAKES, IN-FISHERMAN, POWER & MOTORYACHT, HOT ROD,
SNOWBOARDER, STEREOPHILE and SURFER. PRIMEDIA Consumer Guides is the #1
publisher and distributor of free consumer guides, with APARTMENT GUIDE, AUTO
GUIDE and NEW HOMES GUIDE. PRIMEDIA Business Information has leading positions
in 20 market sectors such as agribusiness, communications, entertainment,
marketing and transportation. PRIMEDIA Education and Training includes Channel
One and other educational and training products. PRIMEDIA's stock symbol is
NYSE: PRM.
THIS RELEASE CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS CONCERNING PRIMEDIA'S
OPERATIONS, ECONOMIC PERFORMANCE AND FINANCIAL CONDITION. THESE STATEMENTS ARE
BASED UPON A NUMBER OF ASSUMPTIONS AND ESTIMATES, WHICH ARE INHERENTLY SUBJECT
TO UNCERTAINTIES AND CONTINGENCIES, MANY OF WHICH ARE BEYOND THE CONTROL OF THE
COMPANY, AND REFLECT FUTURE BUSINESS DECISIONS, WHICH ARE SUBJECT TO CHANGE.
SOME OF THESE ASSUMPTIONS MAY NOT MATERIALIZE, AND UNANTICIPATED EVENTS WILL
OCCUR WHICH CAN AFFECT THE COMPANY'S RESULTS.
CONTACTS: Jim Magrone (investors): 212-745-0634 jmagrone@primedia.com
Whit Clay (media): 212-446-1864 wclay@sloanepr.com
###
Tables Follow
<Page>
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PRIMEDIA INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in millions, except per share amounts)
<Table>
<Caption>
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2003 2002 2003 2002
---- ---- ---- ----
Revenues, Net:
Advertising $ 214.3 $ 223.2 $ 832.1 $ 857.3
Circulation 84.5 90.9 321.7 342.1
Other 52.2 51.3 191.8 199.7
--------- --------- --------- ---------
Continuing Businesses $ 351.1 $ 365.4 $ 1,345.6 $ 1,399.1
Non-Core Businesses - - - 13.5
--------- --------- --------- ---------
Total Revenues, Net 351.0 365.4 1,345.6 1,412.6
Cost of Goods Sold 75.1 77.6 290.0 309.4
Marketing and Selling 62.8 63.6 273.0 286.3
Distribution, Circulation and Fulfillment 55.0 57.9 225.0 234.6
Editorial 25.3 26.3 102.8 109.0
Other General Expenses 45.5 41.2 184.8 181.4
Corporate Administrative Expenses 5.2 7.2 25.9 30.9
--------- --------- --------- ---------
Continuing Businesses 268.9 273.8 1,101.5 1,151.6
Non-Core Businesses - - - 16.8
--------- --------- --------- ---------
$ 268.9 $ 273.8 $ 1,101.5 $ 1,168.4
Segment Earnings before Interest, Taxes, Depreciation,
Amortization and Other Credits (Charges) (A) (Segment EBITDA):
Continuing Businesses:
Enthusiast Media $ 42.0 $ 45.6 $ 146.9 $ 131.9
Consumer Guides 23.8 23.6 83.2 73.3
Business Information 17.6 17.3 34.2 38.4
Education and Training 3.9 12.3 5.7 34.8
Non-Core Businesses - - - (3.3)
Corporate Overhead (5.2) (7.2) (25.9) (30.9)
Depreciation of Property and Equipment (including Provision for
Impairments of $9.4 and $9.8 for the three and twelve months
ended December 31, 2002) (13.2) (23.9) (55.9) (68.9)
Amortization of Intangible Assets and Other (including $14.8 and
$132.7 of Provision for Impairment for the three months ended
December 31, 2003 and 2002, respectively, and $35.3 and $146.1
for the twelve months ended December 31, 2003 and 2002,
respectively) (25.0) (147.2) (76.0) (208.2)
Severance Related to Separated Senior Executives (3.8) - (9.4) -
Non-Cash Compensation and Non-Recurring Charges (B) (8.4) (0.9) (11.2) (10.5)
Provision for Severance, Closures and Restructuring Related
Costs (5.2) (22.8) (8.7) (49.7)
Loss on Sale of Businesses and Other, Net - (5.4) (0.5) (7.2)
--------- --------- --------- ---------
Operating Income (Loss) 26.5 (108.6) 82.4 (100.3)
Provision for Impairment of Investments - (3.6) (9.0) (19.0)
Interest Expense (29.0) (33.7) (124.5) (139.9)
Interest on Shares Subject to Mandatory Redemption (C) (10.9) - (21.9) -
Amortization of Deferred Financing Charges (1.1) (1.7) (3.5) (4.3)
Other Income (Expense), Net 0.6 6.5 (3.1) 5.9
--------- --------- --------- ---------
Loss Before Provision for Income Taxes (13.9) (141.1) (79.6) (257.6)
Deferred Non-Cash Provision for Income Taxes (1.2) (0.9) (12.2) (46.4)
--------- --------- --------- ---------
Loss from Continuing Operations ($0.7 and $.61 per share for the
three months ended December 31, 2003 and 2002, respectively, and
$.51 and $1.39 per share for the twelve months ended December 31,
2003 and 2002, respectively) (15.1) (142.0) (91.8) (304.0)
Discontinued Operations ($.09 and $.27 per share for the three
months ended December 31, 2003 and 2002, respectively, and $.50
and $.37 per share for the twelve months ended December 31, 2003
and 2002, respectively; including gain on sale of businesses of
$19.9 and $73.2 for the three months ended December 31, 2003 and
2002, respectively, and $125.2 and $111.4 for the twelve months
ended December 31, 2003 and 2002, respectively) 24.1 69.1 130.7 93.1
Cumulative Effect of a Change in Accounting Principle from the
adoption of SFAS 142 in 2002 ($1.53 per share for the twelve
months ended December 31, 2002) - - - (388.5)
--------- --------- --------- ---------
Net Income (Loss) 9.0 (72.9) 38.9 (599.4)
Preferred Stock Dividends and Related Accretion, Net (D) (5.0) (14.5) (41.9) (47.7)
--------- --------- --------- ---------
Income (Loss) Applicable to Common Shareholders $ 4.0 $ (87.4) $ (3.0) $ (647.1)
========= ========= ========= =========
Income (Loss) Applicable to Common Shareholders per Common Share $ 0.02 $ (0.34) $ (0.01) $ (2.55)
========= ========= ========= =========
</Table>
<Page>
Page 11
<Table>
<Caption>
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------- -------------------------------
2003 2002 2003 2002
-------------- -------------- -------------- --------------
Basic Common Shares Outstanding (weighted average) 259,685,507 258,181,600 259,230,001 253,710,417
Capital Expenditures, net $ 12.2 $ 11.8 $ 38.7 $ 39.2
</Table>
<Table>
<Caption>
At December 31, At Sept 30, At December 31,
2003 2003 2002
--------------- ----------- ---------------
Cash and cash equivalents $ 8.7 $ 18.4 $ 18.6
=============== =========== ===============
Long-term debt, including current maturities $ 1,584.6 $ 1,608.0 $ 1,735.4
=============== =========== ===============
Shares subject to mandatory redemption (C) $ 474.6 $ 477.1 $ 484.5
=============== =========== ===============
Series J Convertible Preferred Stock $ 164.5 $ 159.5 $ 145.4
=============== =========== ===============
Common shares outstanding 259,722,558 259,610.898 258,865,448
=============== =========== ===============
</Table>
(A) Other credits (charges) include severance related to separated senior
executives, non-cash compensation and non-recurring charges, provision
for severance, closures and restructuring related costs and gain (loss)
on sale of businesses and other, net.
(B) The Company prospectively adopted SFAS 123 in the fourth quarter 2003
and began recording employee stock based compensation under the fair
value method effective January 1, 2003. The adoption resulted in a
non-cash compensation charge of $6.0 million in fourth quarter 2003,
including a charge of $5.1 million related to a separated senior
executive. The impact of adoption on the first three quarters of 2003
was not significant.
(C) The Company adopted SFAS 150 prospectively, effective July, 1, 2003,
which requires the Company to classify as long-term liabilities its
Series D, F and H Exchangeable Preferred Stock and to reclassify
dividends from this preferred stock to interest expense. Such stock is
now described as "Shares Subject to Mandatory Redemption" and dividends
on these shares are now included in pre-tax income (interest expense)
whereas previously they were presented below net income (loss) as
preferred stock dividends. The adoption increased loss before income
taxes for the three and twelve month periods ended December 31, 2003 by
$10.9 and $21.9, respectively. If SFAS 150 was adopted on July 1, 2002,
loss before income taxes would have increased by $11.5 and $23.5 from
the three and twelve months ended December 31, 2002, respectively.
(D) Amounts are net of gains on the preferred stock exchanges of $1.8 for
the three months ended December 31, 2002, and $.9 and $32.8 for the
twelve months ended December 31, 2003 and 2002, respectively.
(E) Certain reclassifications have been made to prior year's data to
conform with the current year presentation.
<Page>
Page 12
PRIMEDIA INC.
SELECTED FINANCIAL DATA BY SEGMENT
($ IN MILLIONS)
<Table>
<Caption>
Q1 Q2 Q3 Q4 Full Year
ENTHUSIAST MEDIA 2003 2003 2003 2003 2003
-------- -------- -------- -------- ---------
Revenues, net:
Advertising $ 91.9 $ 101.4 $ 99.1 $ 98.6 $ 391.0
Circulation 65.9 66.9 69.0 72.4 274.2
Intersegment Revenue 0.4 0.6 0.5 0.4 1.9
Other 15.2 16.4 14.1 13.1 58.8
-------- -------- -------- -------- ---------
Total Revenues, net 173.4 185.3 182.7 184.5 725.9
Total Segment Expenses 148.9 142.1 145.5 142.5 579.0
-------- -------- -------- -------- ---------
Segment EBITDA $ 24.5 $ 43.2 $ 37.2 $ 42.0 $ 146.9
======== ======== ======== ======== =========
<Caption>
Q1 Q2 Q3 Q4 Full Year
CONSUMER GUIDES 2003 2003 2003 2003 2003
-------- -------- -------- -------- ---------
Revenues, net:
Advertising $ 57.9 $ 59.0 $ 58.4 $ 59.0 $ 234.3
Circulation - - - - -
Intersegment Revenue - - - - -
Other 10.0 10.4 10.8 11.1 42.3
-------- -------- -------- -------- ---------
Total Revenues, net 67.9 69.4 69.2 70.1 276.6
Total Segment Expenses 50.3 48.4 48.4 46.3 193.4
-------- -------- -------- -------- ---------
Segment EBITDA $ 17.6 $ 21.0 $ 20.8 $ 23.8 $ 83.2
======== ======== ======== ======== =========
<Caption>
Q1 Q2 Q3 Q4 Full Year
BUSINESS INFORMATION 2003 2003 2003 2003 2003
-------- -------- -------- -------- ---------
Revenues, net:
Advertising $ 42.4 $ 39.8 $ 38.2 $ 41.7 $ 162.1
Circulation 5.2 5.0 5.4 5.6 21.2
Intersegment Revenue - - - - -
Other 9.9 15.0 5.1 15.5 45.5
-------- -------- -------- -------- ---------
Total Revenues, net 57.5 59.8 48.7 62.8 228.8
Total Segment Expenses 53.7 51.9 43.8 45.2 194.6
-------- -------- -------- -------- ---------
Segment EBITDA $ 3.8 $ 7.9 $ 4.9 $ 17.6 $ 34.2
======== ======== ======== ======== =========
<Caption>
Q1 Q2 Q3 Q4 Full Year
EDUCATION AND TRAINING 2003 2003 2003 2003 2003
-------- -------- -------- -------- ---------
Revenues, net:
Advertising $ 11.6 $ 11.5 $ 6.6 $ 15.0 $ 44.7
Circulation 6.7 6.7 6.4 6.5 26.3
Intersegment Revenue 2.0 1.0 0.3 0.3 3.6
Other 11.8 10.9 10.0 12.5 45.2
-------- -------- -------- -------- ---------
Total Revenues, net 32.1 30.1 23.3 34.3 119.8
Total Segment Expenses 27.7 28.5 27.5 30.4 114.1
-------- -------- -------- -------- ---------
Segment EBITDA $ 4.4 $ 1.6 $ (4.2) $ 3.9 $ 5.7
======== ======== ======== ======== =========
</Table>
<Page>
Page 13
PRIMEDIA INC.
SELECTED FINANCIAL DATA BY SEGMENT
($ IN MILLIONS)
<Table>
<Caption>
Q1 Q2 Q3 Q4 Full Year
ENTHUSIAST MEDIA 2002 2002 2002 2002 2002
---------- ---------- ---------- ---------- ----------
Revenues, net:
Advertising $ 90.5 $ 98.4 $ 97.1 $ 101.3 $ 387.3
Circulation 67.6 74.8 72.5 77.9 292.8
Intersegment Revenue 0.5 1.2 1.3 0.3 3.3
Other 14.9 16.8 13.8 11.5 57.0
---------- ---------- ---------- ---------- ----------
Total Revenues, net 173.5 191.2 184.7 191.0 740.4
Total Segment Expenses 156.3 158.7 148.1 145.4 608.5
---------- ---------- ---------- ---------- ----------
Segment EBITDA $ 17.2 $ 32.5 $ 36.6 $ 45.6 $ 131.9
========== ========== ========== ========== ==========
<Caption>
Q1 Q2 Q3 Q4 Full Year
CONSUMER GUIDES 2002 2002 2002 2002 2002
---------- ---------- ---------- ---------- ----------
Revenues, net:
Advertising $ 56.6 $ 56.7 $ 57.1 $ 59.4 $ 229.8
Circulation - - - - -
Intersegment Revenue - 0.6 0.3 - 0.9
Other 8.6 8.9 9.2 9.8 36.5
---------- ---------- ---------- ---------- ----------
Total Revenues, net 65.2 66.2 66.6 69.2 267.2
Total Segment Expenses 49.7 50.4 48.2 45.6 193.9
---------- ---------- ---------- ---------- ----------
Segment EBITDA $ 15.5 $ 15.8 $ 18.4 $ 23.6 $ 73.3
========== ========== ========== ========== ==========
<Caption>
Q1 Q2 Q3 Q4 Full Year
BUSINESS INFORMATION 2002 2002 2002 2002 2002
---------- ---------- ---------- ---------- ----------
Revenues, net:
Advertising $ 48.4 $ 49.0 $ 45.9 $ 46.7 $ 190.0
Circulation 5.0 5.1 5.3 6.2 21.6
Intersegment Revenue - - - - -
Other 9.2 18.1 4.9 15.2 47.4
---------- ---------- ---------- ---------- ----------
Total Revenues, net 62.6 72.2 56.1 68.1 259.0
Total Segment Expenses 61.5 59.3 49.0 50.8 220.6
---------- ---------- ---------- ---------- ----------
Segment EBITDA $ 1.1 $ 12.9 $ 7.1 $ 17.3 $ 38.4
========== ========== ========== ========== ==========
<Caption>
Q1 Q2 Q3 Q4 Full Year
EDUCATION AND TRAINING 2002 2002 2002 2002 2002
---------- ---------- ---------- ---------- ----------
Revenues, net:
Advertising $ 14.0 $ 12.6 $ 7.8 $ 15.8 $ 50.2
Circulation 7.0 6.9 7.0 6.8 27.7
Intersegment Revenue 4.3 2.2 2.1 1.3 9.9
Other 13.9 16.2 13.9 14.8 58.8
---------- ---------- ---------- ---------- ----------
Total Revenues, net 39.2 37.9 30.8 38.7 146.6
Total Segment Expenses 29.5 27.8 28.1 26.4 111.8
---------- ---------- ---------- ---------- ----------
Segment EBITDA $ 9.7 $ 10.1 $ 2.7 $ 12.3 $ 34.8
========== ========== ========== ========== ==========
</Table>
<Page>
Page 14
PRIMEDIA INC.
ECONCILIATION OF SEGMENT EBITDA TO LOSS BEFORE PROVISION FOR INCOME TAXES
($ IN MILLIONS)
<Table>
<Caption>
Q1 Q2 Q3 Q4 Full Year
2003 2003 2003 2003 2003
--------- --------- --------- --------- ---------
REVENUES, NET:
Enthusiast Media $ 173.4 $ 185.3 $ 182.7 $ 184.5 $ 725.9
Consumer Guides 67.9 69.4 69.2 70.1 276.6
Business Information 57.5 59.8 48.7 62.8 228.8
Education and Training 32.1 30.1 23.3 34.3 119.8
Eliminations (2.4) (1.6) (0.8) (0.7) (5.5)
--------- --------- --------- --------- ---------
Total Revenues, net $ 328.5 $ 343.0 $ 323.1 $ 351.0 $ 1,345.6
--------- --------- --------- --------- ---------
SEGMENT EBITDA:
Enthusiast Media $ 24.5 $ 43.2 $ 37.2 $ 42.0 $ 146.9
Consumer Guides 17.6 21.0 20.8 23.8 83.2
Business Information 3.8 7.9 4.9 17.6 34.2
Education and Training 4.4 1.6 (4.2) 3.9 5.7
Corporate Overhead (7.4) (6.7) (6.6) (5.2) (25.9)
Depreciation of Property and Equipment (12.3) (14.5) (15.9) (13.2) (55.9)
Amortization of Intangible Assets and Other (10.7) (10.0) (30.3) (25.0) (76.0)
Severance Related to Separated Senior Executives - (5.6) - (3.8) (9.4)
Non-Cash Compensation and Non-Recurring Charges (1.2) (0.8) (0.8) (8.4) (11.2)
Provision for Severance, Closures and Restructuring Related Costs (1.2) (1.8) (0.5) (5.2) (8.7)
Gain (Loss) on Sale of Businesses and Other, Net (0.1) (1.2) 0.8 - (0.5)
--------- --------- --------- --------- ---------
Operating Income 17.4 33.1 5.4 26.5 82.4
--------- --------- --------- --------- ---------
OTHER INCOME (EXPENSE):
Provision for the impairment of investments - (7.8) (1.2) - (9.0)
Interest expense (33.5) (31.7) (30.3) (29.0) (124.5)
Interest on shares subject to mandatory redemption - - (11.0) (10.9) (21.9)
Amortization of deferred financing costs (0.8) (0.5) (1.1) (1.1) (3.5)
Other income (expense), net (0.5) (3.4) 0.2 0.6 (3.1)
--------- --------- --------- --------- ---------
LOSS BEFORE PROVISION FOR INCOME TAXES $ (17.4) $ (10.3) $ (38.0) $ (13.9) $ (79.6)
--------- --------- --------- --------- ---------
</Table>
<Page>
Page 15
PRIMEDIA INC.
RECONCILIATION OF SEGMENT EBITDA TO LOSS BEFORE PROVISION FOR INCOME TAXES
($ IN MILLIONS)
<Table>
<Caption>
Q1 Q2 Q3 Q4 Full Year
2002 2002 2002 2002 2002
-------- -------- -------- -------- ----------
REVENUES, NET:
Enthusiast Media $ 173.5 $ 191.2 $ 184.7 $ 191.0 $ 740.4
Consumer Guides 65.2 66.2 66.6 69.2 267.2
Business Information 62.6 72.2 56.1 68.1 259.0
Education and Training 39.2 37.9 30.8 38.7 146.6
Eliminations (4.8) (4.0) (3.7) (1.6) (14.1)
-------- -------- -------- -------- ----------
Total Continuing 335.7 363.5 334.5 365.4 1,399.1
Non-Core Businesses 11.0 2.5 - - 13.5
-------- -------- -------- -------- ----------
Total Revenues, net $ 346.7 $ 366.0 $ 334.5 $ 365.4 $ 1,412.6
-------- -------- -------- -------- ----------
SEGMENT EBITDA:
Enthusiast Media $ 17.2 $ 32.5 $ 36.6 $ 45.6 $ 131.9
Consumer Guides 15.5 15.8 18.4 23.6 73.3
Business Information 1.1 12.9 7.1 17.3 38.4
Education and Training 9.7 10.1 2.7 12.3 34.8
Corporate Overhead (8.3) (8.1) (7.3) (7.2) (30.9)
Non-Core Businesses (1.9) (1.4) - - (3.3)
Depreciation of Property and Equipment (14.2) (15.7) (15.1) (23.9) (68.9)
Amortization of Intangible Assets and Other (21.6) (15.5) (23.9) (147.2) (208.2)
Severance Related to Separated Senior Executives - - - - -
Non-Cash Compensation and Non-Recurring Charges (5.4) (1.7) (2.5) (0.9) (10.5)
Provision for Severance, Closures and Restructuring Related Costs (10.5) (14.3) (2.1) (22.8) (49.7)
Gain (Loss) on Sale of Businesses and Other, Net 0.6 (2.7) 0.3 (5.4) (7.2)
-------- -------- -------- -------- ----------
Operating Income (Loss) (17.8) 11.9 14.2 (108.6) (100.3)
-------- -------- -------- -------- ----------
OTHER INCOME (EXPENSE):
Provision for the impairment of investments (3.5) (3.8) (8.1) (3.6) (19.0)
Interest expense (35.0) (36.1) (35.1) (33.7) (139.9)
Interest on shares subject to mandatory redemption - - - - -
Amortization of deferred financing costs (0.9) (0.8) (0.9) (1.7) (4.3)
Other income (expense), net (1.8) 0.2 1.0 6.5 5.9
-------- -------- -------- -------- ----------
LOSS BEFORE PROVISION FOR
INCOME TAXES $ (59.0) $ (28.6) $ (28.9) $ (141.1) $ (257.6)
-------- -------- -------- -------- ----------
</Table>