Central Newspapers Reports Record 1997 Results.INDIANAPOLIS--(BUSINESS WIRE)--Feb. 3, 1998--Central Newspapers, Inc. reported record results for the year ended December December: see month. 28, 1997. Revenues for the year increased 15% to $716 million from $620 million a year ago. Earnings, before the special charges discussed below, increased 35% to $87.5 million, or $3.40 per share, in 1997 from $64.8 million, or $2.43 per share, in 1996. 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 43% to $151.0 million. During 1997 and 1996 the company incurred special charges, primarily from work force reduction costs and asset impairments, totaling $10.0 million and $5.6 million, respectively. Net income for the year, after these charges, was $81.5 million, up 32% from the $61.5 million last year. Basic earnings per share increased to $3.17 in 1997 from $2.31 in the prior year. Excluding special charges, earnings per share for the fourth quarter of 1997 increased 8% to $.96 per share from $.89 per share a year ago. Basic earnings per share increased to $.95 from $.89 in the comparable periods. Net income for the quarter was $23.9 million as compared with the $23.7 million in the same period a year ago. Revenues for the fourth quarter of 1997 increased 12.2% to $192 million. For 1997 advertising revenues increased 12.9%. 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 1997 was up 10.6% over last year. The strongest sectors were recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. classifieds and national advertising in both major markets, and retail 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. . 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 record year in 1997, with financial results far exceeding the previous all time high that we posted last year. We accomplished this despite our decision to increase fourth-quarter 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. in information technologies across the company and in circulation sales and distribution in Indianapolis. "In the first period of 1998 advertising revenues have bounced back after softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in the latter half of December," Mr. Weil concluded. Central Newspapers is a media and information company involved primarily in newspaper publishing and related businesses. It is the 10th largest publicly traded U.S. newspaper company in terms of circulation. Central Newspapers' largest operations include 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 and News, and Westech, its career fairs business. -0-
CENTRAL NEWSPAPERS, INC.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
December 28, December 29,
1997 1996
(000's omitted)
ASSETS
Current Assets:
Cash and cash equivalents $36,924 $36,149
Marketable securities 11,524 25,612
Accounts receivable - net 89,707 90,023
Inventories 10,320 8,912
Other 13,631 10,766
Total current assets 162,106 171,462
Property and equipment - net 286,683 296,980
Goodwill and other assets 165,522 118,530
TOTAL ASSETS $614,311 $586,972
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $10,000
Other 87,367 $79,139
Total current liabilities 97,367 79,139
Deferred income taxes 26,882 26,602
Long-term debt 2,678
Postretirement and other noncurrent
liabilities 86,997 81,759
Minority interest in subsidiaries 1,866 9,244
Redeemable preferred stock issued by
subsidiaries 18,920 -
Shareholders' equity 382,279 387,550
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $614,311 $586,972
CENTRAL NEWSPAPERS, INC.
Consolidated Statement of Income
(In thousands, except per share data)
13 Weeks Ended
December 28, December 29,
1997 1996
OPERATING REVENUES:
Advertising $145,521 $134,913
Circulation 36,608 34,063
Other 9,380 1,708
TOTAL 191,509 170,684
OPERATING EXPENSES:
Compensation 62,349 59,248
Newsprint and ink 28,621 25,617
Other operating costs 49,407 36,202
Depreciation and amortization 9,843 8,783
Asset impairment cost
Work force reduction cost 644 120
TOTAL 150,864 129,970
OPERATING INCOME 40,645 40,714
OTHER INCOME
(principally investment income) 954 1,138
OTHER EXPENSES (553) (723)
INCOME BEFORE INCOME TAXES 41,046 41,129
PROVISION FOR INCOME TAXES 16,493 16,528
INCOME BEFORE MINORITY INTEREST AND
EQUITY IN AFFILIATE 24,553 24,601
MINORITY INTEREST IN SUBSIDIARIES (591) (713)
EQUITY IN AFFILIATE, NET OF TAX (76) (225)
NET INCOME $23,886(a) $23,663(a)
NET INCOME PER COMMON SHARE:
Basic $.95 (a) $.89 (a)
Diluted $.92 $.88
AVERAGE COMMON SHARES OUTSTANDING:
(combined Class A and
equivalent Class B shares)
Basic 25,174 26,457
Diluted 25,990 26,947
52 Weeks Ended
December 28, December 29,
1997 1996
OPERATING REVENUES:
Advertising $541,311 $479,474
Circulation 143,153 134,133
Other 31,673 6,708
TOTAL 716,137 620,315
OPERATING EXPENSES:
Compensation 239,783 228,316
Newsprint and ink 105,467 113,171
Other operating costs 177,829 137,875
Depreciation and amortization 42,022 35,528
Asset impairment cost 4,226
Work force reduction cost 9,999 1,340
TOTAL 575,100 520,456
OPERATING INCOME 141,037 99,859
OTHER INCOME
(principally investment income) 4,318 5,486
OTHER EXPENSES (2,166) (1,477)
INCOME BEFORE INCOME TAXES 143,189 103,868
PROVISION FOR INCOME TAXES 58,797 42,431
INCOME BEFORE MINORITY INTEREST AND
EQUITY IN AFFILIATE 84,392 61,437
MINORITY INTEREST IN SUBSIDIARIES (2,566) (1,629)
EQUITY IN AFFILIATE, NET OF TAX (331) 1,726
NET INCOME $81,495(a) $61,534(a)
NET INCOME PER COMMON SHARE:
Basic $3.17 (a) $2.31 (a)
Diluted $3.08 $2.28
AVERAGE COMMON SHARES OUTSTANDING:
(combined Class A and
equivalent Class B shares)
Basic 25,732 26,619
Diluted 26,473 27,038
(a) Net income before special charges (work force reduction
and/or asset impairment costs) was $24.3 million, or $.96 per share,
and $23.7 million, or $.89 per share, in the fourth quarters of 1997
and 1996, respectively. For the full year, income before special
charges was $87.5 million, or $3.40 per share, and $64.8 million, or
$2.43 per share, in 1997 and 1996, respectively.
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, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212/953-5555 |
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