CENTRAL NEWSPAPERS REPORTS RECORD 1996 RESULTS.INDIANAPOLIS--(BUSINESS WIRE)--Feb. 4, 1997--Central Newspapers, Inc. reported record results for the year ended December December: see month. 29, 1996. Revenues for the year increased 7% to $620 million from $580 million a year ago. Earnings for the year, after the special charges discussed below, were $61.5 million, or $2.31 per share, up from the $54.0 million, or $2.03 per share, last year. Results for the 1995 fourth quarter and full year include an additional week compared with the 1996 periods. During 1996 and 1995 the company incurred special charges, primarily from asset impairments and work force reduction costs, totaling $5.6 million and $4.0 million, respectively. Net income before these charges increased 15% to $64.7 million, or $2.43 per share, in 1996 from $56.2 million, or $2.11 per share, in 1995. Excluding special charges, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the year rose 18% to $105.4 million. Net income for the fourth quarter of 1996 was $23.7 million, or $.89 per share, as compared with the $17.1 million, or $.64 per share, in the same period a year ago. Revenues for the fourth quarter of 1996 increased 3.4% to $171 million. Excluding special charges, net income for the quarter increased 33% to $.89 per share from $.67 per share a year ago. For 1996, advertising revenues increased 7.3% and circulation revenues increased 3.5% over year-ago levels. Full run-of-press advertising linage lin·age also line·age n. 1. The number of lines of printed or written material. 2. Payment for written work at a specified amount per line. linage Noun 1. for 1996 was up 0.6% over last year. The strongest sectors were real estate and automotive advertising in Phoenix and major department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. and automotive advertising in Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. . For the quarter, newsprint newsprint low grade paper used for newspapers. Old newspapers are fed to cattle as an alternative roughage and may occasionally be ingested by dogs. Significant amounts of lead are accumulated in tissues; no cases of poisoning have been recorded in cattle, though it has been costs declined 26% which contributed to a 5.5% decrease in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. compared with the same period last year. Commenting on the results, Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. A. Weil III, president and chief executive officer, said, "We had a very fine year in many respects. Building on past successes, we were able to post solid financial results. While earnings were certainly boosted by flat newsprint prices, we made good progress in improving our non- non- word element [L.]not . non- pref. Not: noninvasive. newsprint margins. "Just as important, we made significant strides in positioning Central Newspapers for the future. A new management team, the successful integration of McCormick & Co., a renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. commitment to product quality and a strategy of focusing on our most successful products and markets create exciting prospects for the company going into 1997," Mr. Weil concluded. Central Newspapers is a media company that publishes daily, Sunday Sunday: see Sabbath; week. and weekly newspapers including the Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). Republic; The Indianapolis Star, The Indianapolis News The Indianapolis News was an evening newspaper published for 130 years, beginning December 7, 1869, and ending publication on October 1, 1999. At one time it had the largest circulation in the state of Indiana, and was the oldest Indianapolis newspaper in existence. , Muncie Muncie (mŭn`sē), city (1990 pop. 71,035), seat of Delaware co., E Ind., on the White River; inc. 1854. It is a trade, processing, and manufacturing center. Star Press, as well as smaller community papers in Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , and the Alexandria Alexandria, city, Egypt Alexandria, Arabic Al Iskandariyah, city (1996 pop. 3,328,196), N Egypt, on the Mediterranean Sea. It is at the western extremity of the Nile River delta, situated on a narrow isthmus between the sea and Lake Mareotis (Maryut). Daily Town Talk in Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. . It is the 11th largest publicly traded U.S. newspaper
company in terms of circulation. -0-
CONSOLIDATED STATEMENT OF INCOME
13 WEEKS 14 WEEKS 52 WEEKS 53 WEEKS
ENDED ENDED ENDED ENDED
Dec. 29 Dec. 31, Dec. 29 Dec. 31
1996 1995 1996 1995
(000's omitted except per share amounts)
OPERATING REVENUES:
Advertising $134,913 $129,169 $479,474 $446,693
Circulation 34,063 35,009 134,133 129,537
Other 1,708 865 6,708 3,671
Total operating
revenues 170,684 165,043 620,315 579,901
OPERATING EXPENSES:
Compensation 59,248 59,568 228,316 222,748
Newsprint and ink 25,617 34,724 113,171 110,085
Other operating
costs 36,202 35,723 137,875 129,362
Depreciation
and amortization 8,783 6,814 35,528 28,487
Asset impairment
cost --- --- 4,226 ---
Work force
reduction cost 120 706 1,340 3,328
Total operating
expenses 129,970 137,535 520,456 494,010
OPERATING INCOME 40,714 27,508 99,859 85,891
OTHER INCOME
(principally 1,138 2,141 5,486 9,502
investment income)
OTHER EXPENSES (723) (517) (1,477) (1,348)
INCOME BEFORE INCOME
TAXES 41,129 29,132 103,868 94,045
PROVISION FOR
INCOME TAXES 16,528 11,545 42,431 38,048
INCOME BEFORE MINORITY
INTEREST AND EQUITY
IN AFFILIATE 24,601 17,587 61,437 55,997
MINORITY INTEREST
IN SUBSIDIARY (713) (496) (1,629) (1,409)
EQUITY IN AFFILIATE,
NET OF TAX (225) (21) 1,726 (590)
NET INCOME $ 23,663 $ 17,070 $ 61,534 $ 53,998
NET INCOME PER
COMMON SHARE
$ .89(a) $ .64(a) $ 2.31(a)$ 2.03(a)
AVERAGE COMMON
SHARES
OUTSTANDING (combined
Class A and
equivalent
Class B shares) 26,457 26,670 26,619 26,651
(a)Net income per share before special charges (asset impairments and work
force reduction costs) was $.89 and $.67 in the fourth quarters of 1996 and
1995, respectively, and $2.43 and $2.11 for the full years 1996 and 1995,
respectively.
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Dec. 29, Dec. 31,
1996 1995
ASSETS (000's omitted)
Current Assets:
Cash and cash equivalents $36,149 $26,142
Marketable securities 25,612 103,390
Accounts receivable - net 90,023 62,355
Inventories 8,912 10,125
Other 10,766 11,006
Total current assets 171,462 213,018
Property and equipment - net 296,980 280,805
Goodwill and other assets 118,530 53,381
TOTAL ASSETS $586,972 $547,204
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities $79,139 $75,200
Deferred income taxes 26,602 23,009
Long-term debt 2,678 2,678
Postretirement benefits 81,759 79,327
Minority interest in subsidiary 9,244 8,249
Shareholders' equity 387,550 358,741
TOTAL LIABILITIES AND SHAREHOLDERS' $586,972 $547,204
EQUITY
PERIOD REVENUE AND STATISTICAL REPORT
(Unaudited)
FIVE WEEKS SIX WEEKS 52 WEEKS 53 WEEKS
ENDED ENDED ENDED ENDED
Dec. Dec. % Dec. Dec. %
29, 31, 29, 31,
1996 1995 Change 1996 1995 Change
CONSOLIDATED
REVENUES -
NET:
(in thousands)
Advertising $53,746 $54,892 -2.1 $479,474 $446,693 7.3
Circulation 12,833 14,918 -14.0 134,133 129,537 3.5
Other 516 311 65.8 6,708 3,671 82.7
Total $67,095(b) $70,121 -4.3 $620,315(b) $579,901 7.0
AVERAGE PAID CIRCULATION:
Phoenix:
Morning 424,285 396,067 7.1 407,551 388,800 4.8
Evening 38,882 66,064 -41.1 49,004 72,301 -32.2
Sunday 587,726 585,027 0.5 584,496 585,226 -0.1
Indianapolis:
Morning 241,743 251,426 -3.9 231,280 229,510 0.8
Evening 46,845 62,703 -25.3 54,263 72,628 -25.3
Sunday 397,010 404,959 -2.0 402,710 399,347 0.8
ADVERTISING LINAGE FOR
MAJOR
DAILIES: (thousands of
inches)
Full run ROP:
Retail 447.7 532.3 -15.9 3,280.3 3,558.4 -7.8
National 55.7 30.0 85.7 439.0 284.3 54.4
Classified 354.2 375.4 -5.6 3,774.2 3,607.2 4.6
Total 857.6 937.7 -8.5 7,493.5 7,449.9 0.6
Part run
ROP 262.6 288.7 -9.0 2,218.2 2,374.6 -6.6
FULL RUN
LINAGE FOR
MAJOR MARKETS:
Phoenix 492.1 548.9 -10.3 4,517.5 4,513.4 0.1
Indianapolis 365.5 388.8 -6.0 2,976.0 2,936.5 1.3
Total 857.6 937.7 -8.5 7,493.5 7,449.9 0.6
NUMBER OF
PREPRINTS 731 763 -4.2 5,484 5,585 -1.8
DISTRIBUTED
(b)Amounts include $1.8 million in the 1996 five week period and $14.9
million in the 1996 year-to-date period of revenues from the acquisition of
McCormick and Company, Inc. which occurred in March 1996.
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For comparative purposes the following table normalizes results for both
the extra week in 1995 and the McCormick acquisition in March 1996.
NORMALIZED REVENUE - MONTH OF DECEMBER
Dec. 31, Dec. 29, Excl. McCormick
1995 1995 Effect of 1996 % 1996 %
6 Weeks 5 Weeks 6th Week 5 Weeks Change 5 Weeks Change
Advertising $54,892 $47,540 $7,352 $53,746 13.1 $52,658 10.8
Circulation 14,918 12,583 2,335 12,833 2.0 12,507 -0.6
Other 311 283 28 516 82.3 174 -38.5
Total 70,121 60,406 9,715 67,095 11.1 65,339 8.2
CONTACT: Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism Schmidt & Associates 212/953-5555 |
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