FORMTable 10-Q of Contents

~~SECURITIES~~FORM ~~AND EXCHANGE COMMISSION~~10-Q

~~Washington,~~SECURITIES DCAND ~~20549~~ EXCHANGE COMMISSION

~~(Mark~~Washington, ~~One)~~ DC 20549

[x]		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended September 30, 2003
[ ]		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from to

(Mark One)

~~Commission~~ þ QUARTERLY ~~File~~REPORT ~~Number~~PURSUANT ~~1-5846~~TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2005 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to

~~THE~~Commission ~~LIBERTY~~File ~~CORPORATION~~Number 1-5846

~~(Exact~~THE ~~name of registrant as specified in its charter)~~LIBERTY CORPORATION

South Carolina		57-0507055
(State or other jurisdiction of incorporation or organization)		(IRS Employer identification No.)

(Exact name of registrant as specified in its charter)

135 South Main Street, Greenville, SC 29601 (Address of principal executive offices)


	South Carolina		57-0507055
	(State or other jurisdiction of		(IRS Employer
	incorporation or organization)		identification No.)

~~Registrant’s~~135 ~~telephone~~South ~~number~~Main Street, ~~including~~Greenville, ~~area~~SC ~~code: 864/241-5400~~29601

~~Indicate by check mark whether the registrant~~ (~~1) has~~Address ~~filed all reports required to be filed by Section 13 or 15 (d)~~ of ~~the~~principal ~~Securities~~executive ~~Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports~~offices)~~, and (2) has been subject to such filing requirements for the past 90 days. Yes X No~~

~~Indicate~~Registrant’s bytelephone ~~check~~number, ~~mark~~including ~~whether~~area ~~the~~code: ~~registrant is an accelerated filer (as defined in Rule 12b~~864/241-~~2 of the Exchange Act). Yes X No~~ 5400

Indicate by check mark whether the ~~number~~Registrant of(1) has ~~shares~~filed ~~outstanding~~all reports required to be filed by Section 13 or 15 (d) of ~~each~~the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant’s ~~classes~~was required to file such reports), and (2) has been ofsubject ~~common~~to ~~stock~~such asfiling ofrequirements for the ~~latest~~past ~~practicable date~~90 days. Yes o No þ

	Number of shares Outstanding
Title of each class	as of September 30, 2003
Common Stock		19,238,700

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes þ No o

~~PART~~Indicate I,the ~~ITEM~~number 1of shares outstanding of each of the Registrant’s classes of common stock as of the latest practicable date.

THE LIBERTY CORPORATION AND SUBSIDIARIES CONSOLIDATED AND CONDENSED BALANCE SHEETS


	Number of shares Outstanding
Title of each class	as of March 31, 2005
Common Stock		18,342,051

(In 000's)				September 30,			December 31,
				2003			2002
ASSETS				(Unaudited)
Current assets:
	Cash and cash equivalents			$	66,245		$	67,917
	Receivables (net of allowance for doubtful accounts)				37,825			42,069
	Program rights				6,183			4,433
	Prepaid and other current assets				2,749			2,982
	Income taxes receivable				152			2,370
	Deferred income taxes				7,561			5,508
			Total current assets		120,715			125,279
Property, plant, and equipment
	Land				5,657			5,639
	Buildings and improvements				53,978			52,638
	Furniture and equipment				168,236			157,401
	Less: Accumulated depreciation				(128,796	)		(120,409	)
					99,075			95,269
Intangible assets subject to amortization (net of $786 and $688 accumulated amortization in 2003 and 2002, respectively)					325			369
FCC licenses and network affiliations					304,525			304,285
Goodwill					101,387			101,387
Investments and other assets					45,768			44,162
			Total assets	$	671,795		$	670,751
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
	Accounts payable and accrued expenses			$	22,205		$	24,433
	Program contract obligations				6,155			4,486
	Accrued income taxes				96			—
			Total current liabilities		28,456			28,919
Unearned revenue					7,678			5,637
Deferred income taxes					96,883			91,647
Other liabilities					6,363			6,312
			Total liabilities		139,380			132,515
Shareholders’ equity
	Common stock				85,621			92,978
	Unearned stock compensation				(4,782	)		(3,802	)
	Retained earnings				451,317			448,887
	Unrealized investment gains				259			173
		Total shareholders’ equity			532,415			538,236
			Total liabilities and shareholders’ equity	$	671,795		$	670,751

TABLE OF CONTENTS

~~See~~PART ~~Notes~~I, toITEM ~~Consolidated~~1 ~~and~~PART ~~Condensed~~I, ~~Financial~~ITEM ~~Statements~~2 PART I, ITEM 3 PART I, ITEM 4 PART II, ITEM 2 PART II, ITEM 5 PART II, ITEM 6 INDEX TO EXHIBITS SIGNATURES EX-10. 1 EX-10.2 EX-31 EX-32

2 Table of Contents

~~THE~~PART ~~LIBERTY~~I, ~~CORPORATION~~ITEM ~~AND~~1 ~~SUBSIDIARIES~~ ~~CONSOLIDATED~~FINANCIAL ~~AND CONDENSED~~ STATEMENTS ~~OF OPERATIONS~~

				Three Months Ended					Nine Months Ended
				September 30,					September 30,
(In 000's, except per share data)				2003		2002			2003			2002
						(Unaudited)
REVENUES
Station revenues (net of commissions)				$	45,211	$	46,173		$	133,511		$	133,269
Cable advertising and other revenues					3,864		3,993			11,159			11,528
	Net revenues				49,075		50,166			144,670			144,797
EXPENSES
Operating expenses					30,001		28,725			89,505			84,479
Amortization of program rights					1,776		1,826			5,236			5,542
Depreciation and amortization of intangibles					4,758		4,433			13,580			13,343
Corporate, general, and administrative expenses					3,424		3,586			10,249			9,186
	Total operating expenses				39,959		38,570			118,570			112,550
			Operating income		9,116		11,596			26,100			32,247
Net investment income (loss)					674		(87	)		(74	)		113
			Income before income taxes and the cumulative effect of a change in accounting principle		9,790		11,509			26,026			32,360
Provision for income taxes					3,671		4,332			9,760			12,255
			Income before the cumulative effect of a change in accounting principle		6,119		7,177			16,266			20,105
Cumulative effect of a change in accounting principle (net of income taxes of $29,045)					—		—			—			(47,388	)
		NET INCOME (LOSS)		$	6,119	$	7,177		$	16,266		$	(27,283	)
BASIC EARNINGS (LOSS) PER COMMON SHARE:
From income before the cumulative effect of a change in accounting principle				$	0.32	$	0.37		$	0.85		$	1.02
Cumulative effect of a change in accounting principle					—		—			—			(2.41	)
Basic earnings (loss) per common share				$	0.32	$	0.37		$	0.85		$	(1.39	)
DILUTED EARNINGS (LOSS) PER COMMON SHARE:
From income before the cumulative effect of a change in accounting principle				$	0.32	$	0.36		$	0.84		$	1.02
Cumulative effect of a change in accounting principle					—		—			—			(2.40	)
Diluted earnings (loss) per common share				$	0.32	$	0.36		$	0.84		$	(1.38	)
Dividends per common share				$	0.24	$	0.22		$	0.72		$	0.66

THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED BALANCE SHEETS

See Notes to Consolidated and Condensed Financial Statements.


	March 31,			December 31,
	2005			2004
(In 000’s)	(Unaudited)
ASSETS

Current assets:
Cash and cash equivalents	$	96,376		$	16,389
Receivables (net of allowance for doubtful accounts)		36,300			41,576
Program rights		3,346			4,766
Prepaid and other current assets		5,989			6,077
Income taxes receivable		373			—
Deferred income taxes		2,806			2,453

Total current assets		145,190			71,261

Property, plant, and equipment
Land		5,636			5,636
Buildings and improvements		44,486			44,073
Furniture and equipment		175,054			172,993
Less: Accumulated depreciation		(138,422	)		(134,133	)

		86,754			88,569

Intangible assets subject to amortization (net of $588 and $701 accumulated amortization in 2005 and 2004, respectively)		406			234
FCC licenses		241,866			241,866
Goodwill		101,387			101,387
Investments and other assets		23,881			24,522

Total assets	$	599,484		$	527,839


LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	13,521		$	21,396
Dividends payable		76,260			4,510
Program contract obligations		3,263			4,791
Accrued income taxes		—			3,573

Total current liabilities		93,044			34,270

Unearned revenue		15,499			15,965
Deferred income taxes		60,246			60,187
Other liabilities		6,789			7,097
Revolving credit facility		112,000			20,000

Total liabilities		287,578			137,519


Shareholders’ equity
Common stock		44,270			49,273
Unearned stock compensation		(16,043	)		(17,396	)
Retained earnings		283,858			358,575
Unrealized investment losses		(179	)		(132	)

Total shareholders’ equity		311,906			390,320

Total liabilities and shareholders’ equity	$	599,484		$	527,839

3See Notes to Consolidated and Condensed Financial Statements.

~~THE LIBERTY CORPORATION AND SUBSIDIARIES~~2 ~~CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS~~

			Nine Months Ended September 30,
(In 000's)			2003			2002
			(Unaudited)
OPERATING ACTIVITIES
Net income (loss)			$	16,266		$	(27,283	)
Less: Cumulative effect of a change in accounting principle				—			47,388
		Income before cumulative effect of a change in accounting principle		16,266			20,105
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
	Loss on sale of operating assets			285			77
	Realized investment losses			1,149			3,327
	Depreciation			13,395			12,707
	Amortization of intangibles			185			636
	Amortization of program rights			5,236			5,542
	Cash paid for program rights			(5,317	)		(5,734	)
	Provision for deferred income taxes			3,183			1,893
Changes in operating assets and liabilities:
	Receivables			4,244			4,861
	Other assets			3,431			16,397
	Accounts payable and accrued expenses			(725	)		3,133
	Accrued income taxes			96			6,637
	Unearned revenue			2,041			1,933
	Other liabilities			51			(3,114	)
	All other operating activities			(587	)		675
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES				42,933			69,075
INVESTING ACTIVITIES
Purchase of property, plant, and equipment				(17,556	)		(15,648	)
Proceeds from the sale of property, plant, and equipment				70			149
Investments acquired				(5,900	)		(10,585	)
Proceeds from sale of investments				—			201
Proceeds from sale of investment properties				3,562			1,228
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES				(19,824	)		(24,655	)
FINANCING ACTIVITIES
Dividends paid				(13,836	)		(13,043	)
Stock issued for employee benefit and compensation programs				1,376			648
Repurchase of common stock				(12,321	)		(6,536	)
NET CASH PROVIDED BY(USED IN) FINANCING ACTIVITIES				(24,781	)		(18,931	)
INCREASE (DECREASE) IN CASH				(1,672	)		25,489
Cash at beginning of period				67,917			35,489
CASH AT END OF PERIOD			$	66,245		$	60,978

~~See~~THE ~~Notes~~LIBERTY toCORPORATION ~~Consolidated~~AND ~~and~~SUBSIDIARIES CONSOLIDATED ~~Condensed~~AND ~~Financial~~CONDENSED ~~Statements.~~STATEMENTS OF OPERATIONS


	Three Months Ended
	March 31,
	2005			2004
(In 000’s, except per share data)	(Unaudited)
REVENUES
Television station revenues (net of commissions)	$	43,526		$	44,600
Cable advertising and other revenues (net of commissions)		2,998			3,231

Net revenues		46,524			47,831

EXPENSES
Operating expenses (exclusive of depreciation and amortization shown separately below)		31,391			30,239
Amortization of program rights		1,876			1,735
Depreciation and amortization of intangibles		4,743			4,492
Corporate, general, and administrative expenses		4,468			3,303

Total operating expenses		42,478			39,769

Operating income		4,046			8,062

Net investment income (loss)		1,734			(650	)
Interest expense		(192	)		(20	)

Income before income taxes		5,588			7,392

Provision for income taxes		2,141			2,772


NET INCOME	$	3,447		$	4,620


BASIC EARNINGS PER COMMON SHARE:	$	0.19		$	0.25

DILUTED EARNINGS PER COMMON SHARE:	$	0.19		$	0.24

Dividends per common share	$	0.25		$	0.25
Special dividend per common share	$	4.00		$	4.00

~~THE~~See ~~LIBERTY~~Notes ~~CORPORATION~~to ~~AND~~Consolidated ~~SUBSIDIARIES NOTES~~and TOCondensed ~~CONSOLIDATED~~Financial ~~AND CONDENSED FINANCIAL STATEMENTS~~Statements. ~~September 30, 2003~~ ~~(Unaudited)~~

1. BASIS OF PRESENTATION The accompanying unaudited consolidated and condensed financial statements of The Liberty Corporation and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The information included is not necessarily indicative of the annual results that may be expected for the year ended December 31, 2003, but it does reflect all adjustments (which are of a normal and recurring nature) considered, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The December 31, 2002 financial information was derived from the Company’s previously filed 2002 Form 10-K. For further information, refer to the consolidated financial statements and footnotes thereto included in The Liberty Corporation annual report on Form 10-K for the year ended December 31, 2002. 2. STATEMENT NO. 142 GOODWILL AND OTHER INTANGIBLE ASSETS During the second quarter of 2001, the Financial Accounting Standards Board (FASB) issued Statement No. 142 “Goodwill and Other Intangible Assets”. Statement No. 142 requires that goodwill and certain other identified intangibles no longer be amortized to earnings, but instead be reviewed for impairment. The amortization of goodwill and certain other identified intangibles ceased upon adoption of the Statement, which for the Company was January 1, 2002. In connection with the adoption of Statement No. 142, the Company reduced the carrying value of its FCC licenses by $76.4 million ($47.4 million after-tax) as a cumulative effect of a change in accounting principle. At September 30, 2003 and December 31, 2002, the Company’s intangible assets not subject to amortization were comprised of FCC licenses and network affiliations. At September 30, 2003 and December 31, 2002, the Company’s intangible assets subject to amortization were comprised of leases acquired through station purchases for space on certain of its towers, non-compete agreements, and loan costs associated with the Company’s unused line of credit. 3~~. COMPREHENSIVE INCOME The components of comprehensive income, net of related income taxes, for the three and nine month periods ended September 30, 2003 and 2002, respectively, are as follows:~~

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2003			2002		2003		2002
(In 000's)
Net income (loss)	$	6,119		$	7,177	$	16,266	$	(27,283	)
Unrealized gains / (losses) on securities		(6	)		19		86		438
Comprehensive income (loss)	$	6,113		$	7,196		16,352	$	(26,845	)

5THE LIBERTY CORPORATION AND SUBSIDIARIES CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS

4.	SEGMENT REPORTING
	Three Months Ended March 31,
	The Company operates primarily in the television broadcasting and cable advertising businesses. The Company currently owns and operates fifteen television stations, primarily in the Southeast and Midwest. Each of the stations is affiliated with a major network, with eight NBC affiliates, five ABC affiliates, and two CBS affiliates. The Company evaluates segment performance based on income before income taxes, excluding unusual, or non-operating items.
	2005			2004
	The following table summarizes financial information by segment for the three and nine month periods ended September 30, 2003 and 2002:
(In 000’s)	(Unaudited)
OPERATING ACTIVITIES
Net income	$	3,447		$	4,620
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Gain on sale of operating assets		(28	)		(17	)
Realized investment (gains) losses		(1,635	)		1,143
Depreciation		4,690			4,433
Amortization of intangibles		53			59
Provision for bad debts		420			63
Amortization of program rights		1,876			1,735
Cash paid for program rights		(1,984	)		(1,902	)
Provision for (Benefit from) deferred income taxes		(294	)		2,300
Changes in operating assets and liabilities:
Receivables		4,856			6,294
Other assets		1,012			(282	)
Accounts payable and accrued expenses		(6,151	)		(4,882	)
Accrued income taxes		(2,675	)		(2,728	)
Unearned revenue		(466	)		(466	)
Other liabilities		(308	)		301
All other operating activities		(226	)		(363	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		2,587			10,308
INVESTING ACTIVITIES
Purchase of property, plant, and equipment		(2,944	)		(3,110	)
Proceeds from sale of property, plant, and equipment		97			41
Investments acquired		—			(500	)
Investments sold		2,285			—
Proceeds from sale of investment properties		—			1,015
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(562	)		(2,554	)
FINANCING ACTIVITIES
Proceeds from borrowings		132,000			55,000
Principal payments on debt		(40,000	)		—
Dividends paid		(6,414	)		(5,055	)
Proceeds from the exercise of stock options		661			3,553
Repurchase of common stock		(8,285	)		(18,031	)
NET CASH PROVIDED BY(USED IN) FINANCING ACTIVITIES		77,962			35,467
INCREASE (DECREASE) IN CASH		79,987			43,221
Cash at beginning of period		16,389			62,177
CASH AT END OF PERIOD	$	96,376		$	105,398

		Three Months Ended						Nine Months Ended
(In 000's)		September 30,						September 30,
		2003			2002			2003			2002
Revenues (net of commissions)
	Broadcasting	$	45,211		$	46,173		$	133,511		$	133,269
	Cable advertising		3,827			3,864			10,940			11,228
	Other		37			129			219			300
Total net revenues		$	49,075		$	50,166		$	144,670		$	144,797
Income before income taxes and cumulative effect of a change in accounting principle
	Broadcasting	$	12,436		$	14,826		$	36,516		$	41,074
	Cable advertising		528			542			1,055			1,321
	Corporate and other		(3,174	)		(3,859	)		(11,545	)		(10,035	)
Total income before income taxes and cumulative effect of a change in accounting principle		$	9,790		$	11,509		$	26,026		$	32,360

See Notes to Consolidated and Condensed Financial Statements.

There were no material changes in assets by segment from those disclosed in the Company’s 2002 annual report. The goodwill that appears on the face of the balance sheet arose through the acquisition of certain television stations, and therefore has been assigned in its entirety to the Broadcasting segment.4

6 Table of Contents

5.THE ~~EARNINGS~~LIBERTY ~~PER~~CORPORATION ~~SHARE~~AND ~~The~~SUBSIDIARIES NOTES ~~calculation~~TO ofCONSOLIDATED ~~basic~~AND ~~and~~CONDENSED ~~diluted~~FINANCIAL ~~earnings~~STATEMENTS March 31, ~~per common share from continuing operations is as follows:~~2005 (Unaudited)

		Three Months Ended				Nine Months Ended
1.	BASIS OF PRESENTATION
(In 000's, except per share data)		September 30,				September 30,
	The accompanying unaudited consolidated and condensed financial statements of The Liberty Corporation and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
		2003		2002		2003		2002
	The information included is not necessarily indicative of the annual results that may be expected for the year ended December 31, 2005, but does reflect all adjustments (which are of a normal and recurring nature) considered, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In addition, the Company’s revenues are usually subject to seasonal fluctuations. The advertising revenues of the stations are generally highest in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to and including the holiday season. Additionally, advertising revenues in even-numbered years tend to be higher as they benefit from advertising placed by candidates for political offices and demand for advertising time in Olympic broadcasts.
Numerator – Earnings:
	The December 31, 2004 financial information was derived from the Company’s previously filed 2004 Form 10-K. For further information, refer to the consolidated financial statements and footnotes thereto included in The Liberty Corporation annual report on Form 10-K for the year ended December 31, 2004. Certain reclassifications have been made in the previously reported financial statements to make the prior year amounts comparable to those of the current year.
Income before the cumulative effect of change in accounting principle		$	6,119	$	7,177	$	16,266	$	20,105
2.	COMPREHENSIVE INCOME
Effect of dilutive securities			—		—		—		—
	The components of comprehensive income, net of related income taxes, for the three month periods ended March 31, 2005 and 2004, respectively, are as follows:
Numerator for basic and diluted earnings per common share		$	6,119	$	7,177	$	16,266	$	20,105
Denominator – Average Shares Outstanding:
Denominator for basic earnings before the cumulative effect of a change in accounting principle per common share – weighted average shares			19,119		19,632		19,153		19,664
Effect of dilutive securities:
	Stock options		131		38		120		90
Denominator for diluted earnings before the cumulative effect of a change in accounting principle per common share			19,250		19,670		19,273		19,754
Basic earnings before the cumulative effect of a change in accounting principle per common share		$	0.32	$	0.37	$	0.85	$	1.02
Diluted earnings before the cumulative effect of a change in accounting principle per common share		$	0.32	$	0.36	$	0.84	$	1.02

6.	EQUITY COMPENSATION
	Three Months Ended
	In accordance with the provisions of SFAS No. 123, “Accounting for Stock-Based Compensation”, the Company has elected to follow Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB No. 25”) and related interpretations in accounting for its equity compensation plans and does not recognize compensation expense for its stock-based compensation plans other than for awards of restricted shares. Expense is recognized over the vesting period of the restricted shares.
	March 31,
	Under APB No. 25, because the exercise price of the Company’s employee stock options at least equals the market price of the underlying stock on the date of the grant, no compensation expense is recognized. Pro forma information regarding net income and earnings per share is required by SFAS No. 123, and has been determined as if the Company had accounted for its employee stock options under the fair value method of that statement.
(In 000’s)	2005			2004
Net income	$	3,447		$	4,620
Unrealized gains (losses) on securities		(47	)		(19	)
Comprehensive income	$	3,400		$	4,601

TheTable Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options’ vesting periods. The Company’s pro forma information is as follows:Contents

(In $000's, except per share amounts)		For the Three Months						For the Nine Months
3.	SEGMENT REPORTING
		Ended September 30,						Ended September 30,
	The Company operates primarily in the television broadcasting and cable advertising businesses. The Company currently owns and operates fifteen television stations, primarily in the Southeast and Midwest. Each of the stations is affiliated with a major network, with eight NBC affiliates, five ABC affiliates, and two CBS affiliates. The Company evaluates segment performance based on income before income taxes, excluding unusual, or non-operating items.
		2003			2002			2003			2002
	The following table summarizes financial information by segment for the three month periods ended March 31, 2005 and 2004:
Stock-based compensation cost included in net income (net of taxes)		$	236		$	169		$	969		$	440
Net income (loss):
	As reported	$	6,119		$	7,177		$	16,266		$	(27,283	)
Pro forma compensation expense (net of taxes)			(206	)		(224	)		(569	)		(671	)
	Pro forma net income (loss)	$	5,913		$	6,953		$	15,697		$	(27,945	)
Basic earnings (loss) per share:
	As reported	$	0.32		$	0.37		$	0.85		$	(1.39	)
	Pro forma		0.31			0.35			0.82			(1.42	)
Diluted earnings (loss) per share:
	As reported	$	0.32		$	0.36		$	0.84		$	(1.38	)
	Pro forma		0.31			0.35			0.82			(1.42	)

7. CREDIT FACILITY On March 21, 2001, the Company entered into a $100 million unsecured 364-day revolving credit facility with a bank. On May 19, 2003, the Company renewed the facility for an additional year on substantially similar terms. No amounts have been drawn on this facility since inception. 8. NEW ACCOUNTING INTERPRETATION During the first quarter of 2003, the FASB issued Interpretation No. 46 “Consolidation of Variable Interest Entities”, an interpretation of Accounting Research Bulletin No. 51 “Consolidated Financial Statements”. The Interpretation requires the consolidation of entities in which an enterprise absorbs a majority of the entity’s expected losses (as defined in Interpretation No. 46), receives a majority of the entity’s expected residual returns (as defined in Interpretation No. 46), or both, as a result of ownership, contractual or other financial interests in the entity. At this time, the Company does not believe that Interpretation No. 46 will have a material effect on its financial statements. The consolidation requirements of Interpretation 46 apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first interim period beginning after December 15, 2003. 9. RECLASSIFICATIONS Certain reclassifications have been made in the previously reported financial statements to make the prior year amounts comparable to those of the current year.


	Three Months Ended
	March 31,
(In 000’s)	2005			2004
Revenues (net of commissions)
Television station	$	43,526		$	44,600
Cable advertising		2,968			3,193
Other		30			38

Total net revenues	$	46,524		$	47,831


Income (loss) before income taxes
Broadcasting	$	8,784		$	11,577
Cable advertising		44			193
Corporate and other		(3,240	)		(4,378	)

Total income before income taxes	$	5,588		$	7,392

	There were no material changes in assets by segment from those disclosed in the Company’s 2004 annual report. The goodwill that appears on the face of the balance sheet arose through the acquisition of certain television stations, and therefore has been assigned in its entirety to the Broadcasting segment.

4.	EMPLOYEE BENEFITS

	The Company has a postretirement plan that provides medical and life insurance benefits for qualified retired employees. The postretirement medical plan is generally contributory with retiree contributions adjusted annually to limit employer contributions to predetermined amounts. The postretirement life plan provides free insurance coverage for retirees and is insured with an unaffiliated company.

	The information presented in this footnote does not reflect the Medicare Prescription Drug Improvement and Modernization Act of 2003 (the “Act”) signed into law December 8, 2003. Specifically, the measures of Net Periodic Postretirement Benefit cost shown do not reflect this Act. Specific authoritative guidance on the accounting treatment of the Act is pending and upon issuance, may require a change in previously reported information.

~~PART I, ITEM 2~~6 ~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Unaudited)~~

TheTable Liberty Corporation is a holding company with operations primarily in the television broadcasting and cable advertising businesses. The Company’s television broadcasting subsidiary, Cosmos Broadcasting, consists of fifteen network-affiliated stations located in the Southeast and Midwest, along with other ancillary businesses. Eight of the Company’s television stations are affiliated with NBC, five with ABC, and two with CBS. Contents

~~SEASONALITY~~Net OFperiodic ~~TELEVISION~~postretirement ~~REVENUES~~benefit cost included the following components:

The Company’s revenues are usually subject to seasonal fluctuations. The advertising revenues of the stations are generally highest in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to and including the holiday season. Additionally, advertising revenues in even-numbered years tend to be higher as they benefit from advertising placed by candidates for political offices and demand for advertising time in Olympic broadcasts.


	Three Months Ended
	March 31,
(In 000’s)	2005		2004
Service cost	$	7	$	6
Amortization of prior service cost		2		1
Amortization of actuarial net gain		3		5
Interest cost		30		34

Net periodic postretirement benefit cost	$	42	$	46

~~RESULTS~~5. OFEARNINGS ~~OPERATIONS~~ PER SHARE The calculation of basic and diluted earnings per common share from continuing operations is as follows:

Three Months Ended September 30, 2003 Compared to Three Months Ended September 30, 2002


	Three Months Ended
	March 31,
(In 000’s except per share data)	2005		2004
Numerator – Earnings:

Net income	$	3,447	$	4,620
Effect of dilutive securities		—		—

Numerator for basic and diluted earnings per common share	$	3,447	$	4,620


Denominator – Average Shares Outstanding:

Denominator for basic earnings per common share – weighted average shares		18,041		18,739

Effect of dilutive securities:
Stock options		90		171

Denominator for diluted earnings per common share		18,131		18,910


Basic earnings per common share	$	0.19	$	0.25

Diluted earnings per common share	$	0.19	$	0.24

~~Station~~The ~~net~~diluted ~~revenue~~earnings ~~was~~per ~~down~~common ~~two~~share ~~percent~~calculation ~~from~~excludes the ~~prior~~effect ~~year~~of ~~period. Political~~potentially ~~revenue~~dilutive ~~for~~shares when the ~~third~~inclusion ~~quarter~~ of ~~2003~~those ~~was~~shares ~~$3.3 million as compared to $6.5 million~~ in the ~~third~~calculation ~~quarter~~would ofhave ~~2002. Increases in local and national revenue~~an ~~helped~~anti-dilutive ~~offset~~effect. For the ~~lower~~period ~~levels~~ended ofMarch 31, ~~political~~2005 ~~revenue.~~and ~~On a category basis~~2004, ~~revenue~~ ~~from advertisers in~~ the ~~automotive~~Company ~~industry~~had approximately ~~was~~51,000 upand ~~five percent~~28, ~~revenue~~000 weighted ~~from~~average ~~advertisers~~options inwhich ~~the~~were ~~retail~~not ~~industry~~included ~~was up fourteen percent, and revenue from advertisers~~ in the ~~financial~~diluted ~~industry~~earnings ~~was~~per upcommon ~~thirty-four percent,~~share ~~while~~calculation ~~revenue~~as ~~from~~their ~~advertisers~~effect ~~in the grocery/drug store industry~~ was ~~down approximately thirty~~anti-~~eight percent, year-over-year~~dilutive.

~~Operating expenses, which include amortization of program rights, were $31.8~~7 million for the third quarter of 2003, an increase of $1.2 million over the $30.6 million reported for the third quarter of 2002. The increase in operating expenses is mainly attributable to increases in medical costs, planned annual increases in employee compensation, and travel and training costs associated with the implementation of a new traffic system for the Company’s television stations.

CorporateTable expenses were $3.4 million for the third quarter of 2003, a decrease of $0.2 million from the $3.6 million reported for the third quarter of 2002. The decrease in corporate expenses is mainly attributable lower levels of variable compensation. Contents

Net investment income for the third quarter of 2003 was $0.7 million. During the third quarter of 2003, net investment income was comprised mainly of interest earned on cash balances and notes receivable, and gains on sales from the Company’s remaining real estate portfolio.

6.	EQUITY COMPENSATION

	In accordance with the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123, “Accounting for Stock-Based Compensation”, the Company has elected to follow Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB No. 25”) and related interpretations in accounting for its equity compensation plans and does not recognize compensation expense for its stock-based compensation plans other than for awards of restricted shares. Expense is recognized over the vesting period of the restricted shares.

	Under APB No. 25, because the exercise price of the Company’s employee stock options at least equals the market price of the underlying stock on the date of the grant, no compensation expense is recognized. Pro forma information regarding net income and earnings per share is required by SFAS No. 123, and has been determined as if the Company had accounted for its employee stock options under the Black-Scholes fair value method described in that statement.

	The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. The Company’s employee stock options have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimate.

	For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options’ vesting periods. The Company’s pro forma information is as follows:


	For the Three Months
	Ended March 31,
(In 000’s, except per share amounts)	2005			2004
Stock-based compensation cost included in net income (net of taxes)	$	835		$	234

Net income:
As reported	$	3,447		$	4,620
Pro forma compensation expense (net of taxes)		(197	)		(202	)

Pro forma net income	$	3,250		$	4,418
Basic earnings per share:
As reported	$	0.19		$	0.25
Pro forma		0.18			0.24
Diluted earnings per share:
As reported	$	0.19		$	0.24
Pro forma		0.18			0.23

~~Nine Months Ended September 30, 2003 Compared to Nine Months Ended September~~8 ~~30, 2002~~

StationTable net revenue was even with that of the prior year period. Political revenue for the nine months of 2003 was $6.0 million as compared to $12.1 million in the first nine months of 2002. Increases in local and national revenue offset the lower levels of political revenue. On a category basis, revenue from advertisers in the automotive industry was up nine percent and the retail industry was up six percent, while revenue from advertisers in the grocery/drug store industry was down approximately thirty-four percent, year-over-year. Contents

~~Operating~~7. ~~expenses,~~COMMON ~~which~~STOCK ~~include~~The ~~amortization~~following oftable ~~program~~summarizes ~~rights, were $94.7 million for~~ the ~~first~~Common ~~nine~~Stock ~~months~~activity offrom ~~2003,~~the andate ~~increase~~ of ~~$4.7 million over~~ the ~~$90.0 million~~ ~~reported~~Company’s ~~for~~most ~~the~~recently ~~first~~audited ~~nine~~annual ~~months~~financial ofstatements ~~2002. The increase in operating expenses is mainly attributable~~ to ~~increases in medical costs, planned annual increases in employee compensation, and travel and training costs associated with~~ the ~~implementation~~end of athe ~~new~~period ~~traffic~~covered ~~system~~by ~~for~~this ~~the Company’s television stations.~~ report:

Corporate expenses were $10.2 million for the first nine months of 2003, an increase of $1.0 million over the $9.2 million reported for the first nine months of 2002. The increase in corporate expenses is attributable to increases in insurance costs, planned increases in employee compensation, additional restricted stock amortization expense, and legal and accounting fees.


	Common
	Shares			Common
(In 000’s)	Outstanding			Stock
Balance as of 12/31/04		18,469		$	49,273
Stock issued for employee benefit and performance incentive compensation programs		60			2,384
Income tax benefit resulting from employee exercise of options					898
Stock repurchased		(187	)		(8,285	)

Balance as of 3/31/05		18,342		$	44,270

Net investment income for the first nine months of 2003 was a loss of approximately seventy-four thousand dollars. During the first nine months of 2003, interest earned on cash balances and notes receivable and gains on the sale of real estate were offset by impairments taken in the Company’s strategic investment and venture capital portfolios.

	During the first quarter of 2005, the Company funded the accrued 2004 discretionary contribution to its employee retirement and savings plan. Half of this funding, approximately $1.7 million, was in the form of approximately 40,000 shares of Liberty common stock.

8.	CREDIT FACILITY

	In March 2001, the Company entered into a $100 million unsecured 364-day revolving credit facility with a bank. The Company renewed the facility on substantially similar terms in each of the years 2002, 2003, 2004, and during the first quarter of 2005. At the end of the term of the facility, any outstanding principal and interest will come due, unless the bank, in its sole discretion, otherwise extends the facility. The facility provides that the funds drawn may be used for working capital, dividends, and other general corporate purposes, capital expenditures, purchases of common stock, acquisitions, and investments. The Company had $112 million and $20 million of debt outstanding at March 31, 2005 and December 31, 2004, respectively. As of March 31, 2005 the weighted average interest rate on outstanding borrowings was 3.82%.

	The revolving credit facility has both an interest coverage and a leverage coverage covenant. These covenants, which involve debt levels, interest expense, EBIT, and EBITDA (measures of cash earnings defined in the revolving credit agreement), can affect the interest rate on current and future borrowings. The Company has remained in compliance with all covenants throughout the period covered by this report.

	During the first quarter of 2005, the Company amended the credit agreement to, among other things, extend the term of the facility through May 17, 2006 and increase the aggregate facility commitment from $100 million to $150 million. The amended credit facility restricts payments for dividends and purchases of common stock to no more than $180 million during the period January 1, 2005 through December 31, 2005, and for periods after January 1, 2006 to $100 million plus fifty percent of cumulative net income of the Company for all fiscal periods beginning January 1, 2005.

~~Capital, Financing and Liquidity~~9

AtTable September 30, 2003, the Company had cash of $66.2 million and an unused line of credit of $100 million. The Company anticipates that its primary sources of cash, those being current cash balances, operating cash flow, and the available line of credit will be sufficient to finance the operating requirements of its stations and their anticipated capital expenditures, for both the next 12 months and the foreseeable future thereafter. Contents

9. PROVISION FOR INCOME TAXES It is the Company’s policy to establish reserves for income taxes that may become payable in future years as a result of an examination by tax authorities. The Company establishes the reserves based upon management’s assessment of exposures related to the recognition of revenue or the deductions in its tax returns. The reserves are analyzed periodically, and adjustments are made as events occur to warrant adjustment to the reserve. For example, if the statutory period for assessing tax on a given tax return or period lapses, the reserve associated with that period may be adjusted. In addition, the adjustment to the reserve may reflect additional exposure based on current calculations. To the extent the Company were to prevail in matters for which accruals have been established, statutory periods for assessing taxes lapse, or it be required to pay amounts in excess of reserves, the Company’s effective tax rate in a given financial statement period could be materially affected. 10. COMMITMENTS AND CONTINGENCIES In November of 2000, the Company sold its insurance operations to a third party. Under the purchase agreement, subject to certain limitations, the Company agreed to indemnify the buyer for damages (as defined in the purchase agreement) relating to certain tax matters, pre-existing litigation and regulatory proceedings. The indemnification relating to the tax matters is in effect until the expiration of the relevant statutes of limitation. The indemnifications relating to the other matters are in effect until the final resolution of such matters. The Company believes that the likelihood of it being required to make payments as a result of any of these indemnifications is remote, and therefore has no liability recorded related to these indemnifications. The limit of amounts recoverable by the acquirer will not exceed one-half the purchase price, or approximately $324 million. 11. NEW ACCOUNTING PRONOUNCEMENTS On December 16, 2004, the Financial Accounting Standards Board issued Statement No. 123 (Revised 2004), Share-Based Payment (“Statement No. 123(R)”), which is a revision of FASB Statement No. 123, Accounting for Stock-Based Compensation. Statement 123(R) supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and amends FASB Statement No. 95, Statement of Cash Flows . On April 14, 2005 the Securities and Exchange Commission announced the adoption of a rule that amends the compliance dates for Statement 123(R). The new rule allows companies to implement Statement 123 (R) at the beginning of their next fiscal year that begins after June 15, 2005, which for the Company is the first quarter of 2006. Early adoption is permitted. Generally, the approach in Statement 123(R) is similar to the approach described in Statement 123. However, Statement 123(R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. Statement 123(R) permits public companies to adopt its requirements using one of two methods:

~~The Company’s net cash flow provided by operating activities was $42.9 million for the first nine months of 2003 compared to $69.~~1 ~~million for the same period of the prior year~~. ~~The~~A ~~most~~“modified ~~significant~~prospective” ~~items~~method ~~related to the difference~~ in ~~cash~~ ~~provided~~which bycompensation ~~operations~~cost ~~between~~is ~~the~~recognized ~~two~~beginning ~~periods~~with ~~were~~ the ~~difference~~effective indate ~~net income,~~(a) ~~the~~based ~~timing of accounts payable payments, and the receipt of payments~~ on ~~notes~~ ~~receivable during 2002 that were not present during 2003. The Company’s net cash used in investing activities was $19.8 million for~~ the ~~nine~~requirements ~~month period ended September 30, 2003, as compared to $24.7 million for the same period~~ of ~~2002.~~Statement ~~Net~~123(R) ~~cash used in financing activities~~ for ~~the~~all nine months ended September 30, 2003 was $24.8 million compared to $18.9 million for the first nine months of 2002. The increase in net cash used in financing activities is due mainly to higher levels of share-based ~~repurchase~~payments ~~activity~~granted inafter the ~~Company’s~~effective ~~stock buy-back~~date ~~program~~and ~~during~~(b) ~~the~~based ~~first~~on ~~quarter of 2003 that was not present during~~ the ~~first~~requirements ~~nine months~~ of ~~2002.~~

~~New Accounting Guidance~~10

DuringTable the first quarter of 2003, the FASB issued Interpretation No. 46 “Consolidation of Variable Interest Entities”, an interpretation of Accounting Research Bulletin No. 51 “Consolidated Financial Statements”. The Interpretation requires the consolidation of entities in which an enterprise absorbs a majority of the entity’s expected losses (as defined in Interpretation No. 46), receives a majority of the entity’s expected residual returns (as defined in Interpretation No. 46), or both, as a result of ownership, contractual or other financial interests in the entity. At this time, the Company does not believe that Interpretation No. 46 will have a material effect on its financial statements. The consolidation requirements of Interpretation 46 apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first interim period beginning after December 15, 2003. Contents

10 Statement 123 for all awards granted to employees prior to the effective date of Statement 123(R) that remain unvested on the effective date. 2. A “modified retrospective” method which includes the requirements of the modified prospective method described above, but also permits entities to restate based on the amounts previously recognized under Statement 123 for purposes of pro forma disclosures either (a) all prior periods presented or (b) prior interim periods of the year of adoption.

~~Forward~~The ~~Looking~~Company ~~Information~~plans to adopt Statement 123(R) using the modified prospective method.

~~The~~As ~~Private~~permitted ~~Securities~~by ~~Litigation~~Statement ~~Reform~~123, ~~Act~~the ofCompany ~~1995~~currently ~~provides~~accounts ~~a “safe harbor”~~ for ~~forward~~share-~~looking~~based ~~statements.~~payments to ~~Certain~~employees ~~information~~using ~~contained~~APB ~~herein~~Opinion or25’s inintrinsic ~~any other~~value ~~written~~method orand, ~~oral~~as ~~statements made by~~such, orgenerally recognizes onno ~~behalf~~compensation ofcost ~~the~~for ~~Company,~~employee isstock ~~or may be viewed as forward-looking~~options. The ~~words~~Company ~~“expect,”~~has ~~“believe,”~~not ~~“anticipate”~~granted orstock ~~similar~~options ~~expressions~~to ~~identify~~its ~~forward-looking~~employees ~~statements.~~since ~~Although~~June ~~the Company~~of ~~has~~2002. ~~used~~While ~~appropriate~~authorized ~~care~~under inits ~~developing any such forward-looking~~incentive ~~information,~~compensation ~~forward-looking~~program ~~information~~to ~~involves~~grant ~~risks~~stock ~~and~~options, ~~uncertainties~~at ~~that could~~this ~~significantly~~time ~~impact~~the ~~actual~~Company ~~results.~~does ~~These~~not ~~risks~~intend ~~and uncertainties~~to ~~include,~~make ~~but~~future ~~are~~stock ~~not~~option ~~limited~~grants. toTherefore, the ~~following:~~Company ~~changes~~anticipates inthat ~~national~~the ~~and~~effect ~~local~~of ~~markets~~Statement ~~for~~123(R) ~~television~~will ~~advertising;~~be ~~changes~~limited into ~~general~~expensing ~~economic conditions, including~~ the ~~performance~~remaining value of ~~financial~~it’s ~~markets~~previously granted ~~and~~but ~~interest~~unvested ~~rates;~~options. ~~competitive, regulatory,~~The orCompany ~~tax~~believes ~~changes~~ that ~~affect~~it ~~the~~will ~~cost~~adopt of123(R) orin ~~demand for~~ the ~~Company’s~~ ~~products;~~first ~~and~~quarter ~~adverse~~of ~~litigation~~2006, ~~results.~~and ~~The~~the ~~Company~~estimated ~~undertakes~~effect noof ~~obligation to~~Statement ~~publicly~~123(R) ~~update~~on ornet ~~revise~~income ~~any~~will be ~~forward-looking~~approximately ~~statements~~$230,000, ~~whether~~and as$20,000 ~~a result~~in ofthe ~~new~~years ~~information,~~2006 ~~future~~and ~~developments,~~2007 ~~or otherwise~~respectively.

PARTTable I,of ITEM 4 CONTROLS AND PROCEDURES Contents

AsPART ~~of the end of the period covered by this report~~I, ~~the~~ITEM ~~Company carried out an~~2 ~~evaluation, under the supervision and with the participation of the Company~~MANAGEMENT’~~s management,~~S ~~including~~DISCUSSION ~~the~~AND ~~Company’s~~ANALYSIS ~~Chief Executive Officer and Chief Financial~~OF ~~Officer,~~FINANCIAL ofCONDITION ~~the~~AND ~~effectiveness~~RESULTS ofOF ~~the~~OPERATIONS ~~design and operation of the Company’s~~ ~~disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based~~(Unaudited) ~~upon that evaluation, the Chief Executive Officer and Chief Financial Officer~~ ~~concluded that as of the end of the period covered by this report the Company’s~~ ~~disclosure controls and procedures are effective in providing reasonable~~ assurance that material information relating to the Company required to be included in the Company’s periodic SEC filings was made known to them during the period covered by this report. There have been no significant changes in the Company’s internal controls or in other factors that could significantly affect internal controls subsequent to this evaluation.

12The Liberty Corporation is a holding company with operations primarily in the television broadcasting industry. The Company’s television broadcasting subsidiary, Cosmos Broadcasting, consists of fifteen network-affiliated stations located in the Southeast and Midwest, along with other ancillary businesses. Eight of the Company’s television stations are affiliated with NBC, five with ABC, and two with CBS.

~~PART~~SEASONALITY ~~II,~~OF ~~ITEM~~TELEVISION ~~6. Exhibits and Reports on Form 8-K~~REVENUES

aThe Company’s revenues are usually subject to seasonal fluctuations. AThe ~~list~~advertising revenues of the stations are generally highest in the ~~exhibits~~second ~~filed~~and ~~with~~fourth ~~this~~quarters ~~report~~of iseach ~~included~~year, due in part to increases in consumer advertising in the ~~Index~~spring and retail advertising in the period leading up to and ~~Exhibits~~including ~~filed~~the ~~herewith~~holiday season. bAdditionally, advertising revenues in even-numbered years tend to be higher as they benefit from advertising placed by candidates for political offices and demand for advertising time in Olympic broadcasts.

	1.		The Company filed a current report on Form 8-K dated August 5, 2003 with respect to the press release announcing its second quarter 2003 operating results.
	2.		The Company filed a current report on Form 8-K dated August 5, 2003 with respect to the Company declaring a regular quarterly dividend of $0.24 per share on its common stock, payable on October 2, 2003 to shareholders of record on September 15, 2003.

RESULTS OF OPERATIONS

~~INDEX~~Three TOMonths ~~EXHIBITS~~Ended March 31, 2005 Compared to Three Months Ended March 31, 2004

EXHIBIT 11		Consolidated Earnings Per Share Computation (included in Note 5 of Notes to Consolidated and Condensed Financial Statements)
EXHIBIT 31		Rule 13a-14(a)/15d-14(a) Certifications
EXHIBIT 32		Section 1350 Certifications

Total net revenue decreased $1.3 million on a year-over-year basis. Station net revenue decreased $1.1 million for the same period. Cable and other net revenue decreased $0.2 million as compared to the prior year quarter. Net revenue decreased on a year-over-year basis due mainly to lower levels of political revenue. The year 2005 is an off-cycle election year, and as such, is expected to have lower levels of political revenue when compared to 2004 which was a presidential election year.

13Local revenue was up $0.8 million as softness in the automotive and restaurant categories was offset by increases in the professional services, medical, and retail telemarketing categories. National revenue was down $0.8 million, on a year-over-year basis due mainly to softness in the telecommunications category. Political revenue for the first quarter of 2005 was $0.4 million as compared to $2.6 million in the first quarter of 2004. This is consistent with the Company’s historical experience that advertising revenues in even-numbered years tend to be higher than in odd-numbered years due to advertising placed by or on behalf of candidates running for political offices. The Company expects the cyclicality of political advertising revenues to continue to affect its revenues in future periods. The Company does not, however, know whether the variability in spending by the entities comprising the other categories tracked by the Company will continue at similar rates in future periods.

~~SIGNATURES~~Operating expenses (including amortization of program rights) increased $1.3 million Operating expenses increased due mainly to planned annual increases in employee compensation, higher commissions paid to the Company’s sales staff as a result of increased local revenues, amortization expense related to restricted stock grants made during 2004, and increases in medical insurance costs. While the Company would expect continued increases in employee compensation related to annual increases in base pay and similar increases in medical insurance costs in future periods, higher levels of commissions paid to the Company’s sales staff will be dependent upon the realization of increased revenues.

~~Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange~~12 ~~Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.~~

THE LIBERTY CORPORATION (Registrant)		Date: November 5, 2003
/s/ Howard L. Schrott Howard L. Schrott Chief Financial Officer
/s/ Martha G. Williams Martha G. Williams Vice President, General Counsel and Secretary

14Corporate expenses were $4.5 million in the first quarter of 2005, an increase of $1.2 million as compared to the $3.3 million reported for the first quarter of 2004. The increase in corporate expenses is due mainly to planned annual increases in employee compensation, amortization expense related to restricted stock grants made during 2004, increased legal fees, and additional accounting and professional fees related to Sarbanes-Oxley Section 404 compliance initiatives. The Company expects continued increases in employee base compensation of similar amounts in future periods. The Company expects decreased expenses related to its Sarbanes-Oxley Section 404 compliance initiatives after the first quarter of 2005.

Net investment income was $1.7 million for the first quarter of 2005, as a result of a gain from the liquidation of an investment in the Company’s venture capital portfolio.

Capital, Financing and Liquidity

At March 31, 2005, the Company had cash of $96.4 million, outstanding debt of $112.0 million, and $38.0 million available under its credit facility. During the first quarter of 2005, the Company declared a special dividend of $4.00 per share, approximately $73.5 million, in addition to its normal recurring quarterly dividend of $0.25 per share. The special dividend was paid during the second quarter of 2005 using a significant portion of the Company’s then available cash balance. The Company borrowed $80.0 million under its credit facility to assist in funding the special and regular dividends.

The revolving credit facility has both an interest coverage and a leverage coverage covenant. These covenants, which involve debt levels, interest expense, EBIT, and EBITDA (measures of cash earnings defined in the revolving credit agreement), can affect the interest rate on current and future borrowings. The Company was in compliance with all covenants throughout the period covered by this report.

During the first quarter of 2005, the Company amended the credit facility to, among other things, extend the term of the facility through May 17, 2006 and increase the aggregate facility commitment from $100 million to $150 million. The amended credit facility restricts payments for dividends and purchases of common stock to no more than $180 million during the period January 1, 2005 through December 31, 2005, and for periods after January 1, 2006 to $100 million plus fifty percent of cumulative net income of the Company for all fiscal periods beginning January 1, 2005.

The Company anticipates that its primary sources of cash, those being current cash balances, operating cash flow, and the available credit facility will be sufficient to finance the Company’s operating requirements and anticipated capital expenditures, for both the next 12 months and the foreseeable future thereafter.

Cash Flows

The Company’s net cash provided by operating activities was $2.6 million for the first three months of 2005 compared to $10.3 million for the same period of the prior year. The Company’s net cash used in investing activities was $0.6 million for the first three months of 2005, as compared to $2.6 million for the same period of 2004. The decrease in net cash used in investing activities is attributable to the cash realized on the sale of investments in the Company’s venture capital portfolio during 2005 that was not present during 2004. Net cash provided by financing activities for the first three months of 2005 was $78.0 million compared to $35.5 million for the first three months of 2004. During 2005, the Company had net borrowings of $92.0 million under its credit facility, compared to $55.0 million during 2004. As noted above, the Company drew down the funds in anticipation of funding the special dividend.

Forward Looking Information

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information contained herein or in any other written or oral statements made by, or on behalf of the Company, is or may be viewed as forward-looking. The words “expect,” “believe,” “anticipate” or similar expressions identify forward-looking statements. Although the Company has used appropriate care in developing any such forward-looking information, forward-looking information involves risks and uncertainties that could significantly impact actual results. These risks and uncertainties include, but are not limited to, the following: changes in national and local markets for television advertising; changes in general economic conditions, including the performance of financial markets and interest rates; competitive, regulatory, or tax changes that affect the cost of or demand for the Company’s products; and adverse litigation results. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise.

PART I, ITEM 3
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the information, as disclosed in Part II, Item 7A of the Company’s most recent annual report on Form 10-K, that would be provided under Item 305 of Regulation S-K from the end of the preceding fiscal year to the date of this report.

PART I, ITEM 4
CONTROLS AND PROCEDURES

The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and are also effective to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is accumulated and communicated to the Company’s management, including the principal executive and principal financial officers, to allow timely decisions regarding required disclosure.

During the most recent fiscal quarter, there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

PART II, ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS



	Total				Total Number of		Maximum Number
	Number of				Shares (or Units)		of Shares that May
	Shares (or		Average Price		Purchased as Part of		Yet Be Purchased
	Units)		Paid per Share		Publicly Announced		Under the Plans or
Period	Purchased		(or Unit)		Plans or Programs		Programs
January 1 –31, 2005		—	$	—		—		3,024,700
February 1 – 28, 2005		2,038	$	44.26		—		4,000,000
March 1 – 31, 2005		184,600	$	44.39		184,600		3,815,400
Total		186,638	$	44.39		184,600		3,815,400

During the quarter the Company acquired 2,038 shares as satisfaction of withholding tax obligations for restricted stock that vested during the period, in accordance with provisions of the Company’s Performance Incentive Compensation plan.

On February 8, 2005 Liberty’s Board of Directors extended to February 28, 2006 the Company’s authorization to purchase from time to time up to 4,000,000 shares of stock in the open market or directly negotiated transactions.

PART II, ITEM 5.
OTHER INFORMATION

The Compensation Committee of the Board of Directors established performance bonus standards for The Liberty Corporation Management Bonus Plan for the year 2005. A description of the arrangement is included as exhibit 10.1

PART II, ITEM 6.
EXHIBITS

INDEX TO EXHIBITS


EXHIBIT 10.1		Description of The Liberty Corporation Management Bonus Plan

EXHIBIT 10.2		Form of Restricted Stock Agreement

EXHIBIT 11		Consolidated Earnings Per Share Computation (included in Note 5 of Notes to Consolidated and Condensed Financial Statements)

EXHIBIT 31		Rule 13a-14(a)/15d-14(a) Certifications

EXHIBIT 32		Section 1350 Certifications

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


THE LIBERTY CORPORATION				Date: May 3, 2005
(Registrant)

/s/ Howard L. Schrott

Howard L. Schrott
Chief Financial Officer

/s/ Martha G. Williams

Martha G. Williams
Vice President, General Counsel and Secretary

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