Central Newspapers Reports Record Third-Quarter Results.INDIANAPOLIS--(BUSINESS WIRE)--Oct. 21, 1997--Central Newspapers, Inc. reported that record net earnings for the third quarter ended September September: see month. 28, 1997, before special charges, increased to $19.1 million, or $.76 per share, compared with $15.1 million, or $.57 per share, last year. Revenues for the quarter increased 16.7% to a record $173.9 million from $149.0 million in the same period a year ago. In the 1997 third quarter, advertising revenues increased 12.8% and circulation revenues increased 10.0% 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 the third quarter of 1997 was up 9.2%, with Phoenix up 7.1% and 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. up 11.0%, all compared with similar periods last year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (Earnings Before Interest, Taxes, Depreciation, Amortization and Special Charges) rose 31% to $44.0 million in the third quarter from $33.6 million in the comparable period last year. Net earnings for the nine months ended September 28, 1997, before special charges, were $63.2 million, or $2.44 per share, compared with $41.1 million, or $1.54 per share, in the same period last year. Revenues for the nine months were $524.6 million, up from $449.6 million a year ago. 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 reported a solid quarter as 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. increased 36% and per share earnings rose 33%, before special charges. Advertising revenues continued to grow at a double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. pace in the third quarter while 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 prices were down approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. seven percent. Westech continues its strong growth in revenues and earnings. Looking forward to the fourth quarter, business remains at a healthy pace." 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.
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CENTRAL NEWSPAPERS, INC.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
13 Weeks Ended 39 Weeks Ended
Sept. 28, Sept. 29 Sept. 28 Sept. 29,
1997 1996 1997 1996
(000's omitted except per share amounts)
OPERATING REVENUES:
Advertising $129,431 $114,728 $395,790 $344,561
Circulation 35,642 32,398 106,545 100,070
Other 8,834 1,892 22,293 5,000
Total operating revenues 173,907 149,018 524,628 449,631
OPERATING EXPENSES:
Compensation 59,068 55,832 177,434 169,068
Newsprint and ink 25,390 25,310 76,846 87,554
Other operating costs 45,426 34,280 128,422 101,673
Depreciation and amortization 10,843 9,184 32,179 26,745
Asset impairment cost 0 0 0 4,226
Work force reduction cost 2,632 117 9,355 1,220
Total operating expenses 143,359 124,723 424,236 390,486
OPERATING INCOME 30,548 24,295 100,392 59,145
OTHER INCOME (principally investment
income) 813 1,041 3,364 4,348
OTHER EXPENSES (623) (237) (1,613) (754)
INCOME BEFORE INCOME TAXES 30,738 25,099 102,143 62,739
PROVISION FOR INCOME TAXES 12,752 10,229 42,304 25,903
INCOME BEFORE MINORITY INTEREST AND
EQUITY IN AFFILIATE 17,986 14,870 59,839 36,836
MINORITY INTEREST IN SUBSIDIARIES (688) (408) (1,975) (916)
EQUITY IN AFFILIATE, NET OF TAX 180 604 (255) 1,951
NET INCOME $17,478(A) $15,066(A) $57,609(A)$37,871(A)
NET INCOME PER COMMON SHARE $.69(A) $.57(A) $ 2.22(A) $1.42(A)
AVERAGE COMMON SHARES
OUTSTANDING (combined Class A and
equivalent Class B shares) 25,229 26,571 25,918 26,673
(A) Net income before special charges (work force reduction and/or
asset impairment costs) was $19.1 million, or $.76 per share, and
$15.1 million, or $.57 per share, in the third quarters of 1997 and
1996, respectively. For the nine months, income before special
charges was $63.2 million, or $2.44 per share and $41.1 million, or
$1.54 per share, in 1997 and 1996, respectively.
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CENTRAL NEWSPAPERS, INC.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
September 28, December 29,
1997 1996
(unaudited)
(000's omitted)
ASSETS
Current Assets:
Cash and cash equivalents $55,751 $36,149
Marketable securities 11,794 25,612
Accounts receivable - net 77,921 90,023
Inventories 11,481 8,912
Other 18,108 10,766
Total current assets 175,055 171,462
Property and equipment - net 287,075 296,980
Goodwill and other assets 158,790 118,530
TOTAL ASSETS $620,920 $586,972
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $34,400
Other 80,470 $79,139
Total current liabilities 114,870 79,139
Deferred income taxes 28,544 26,602
Long-term debt 2,678 2,678
Postretirement and other noncurrent
liabilities 85,489 81,759
Minority interest in subsidiary 1,606 9,244
Redeemable preferred stock issued by
subsidiary 18,920 -
Shareholders' equity 368,813 387,550
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $620,920 $586,972
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CENTRAL NEWSPAPERS, INC.
PERIOD REVENUE AND STATISTICAL REPORT
(Unaudited)
Five Weeks Ended Thirty-Nine Weeks Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
1997 1996 % Change 1997 1996 % Change
CONSOLIDATED
REVENUES - NET:
(in thousands)
Advertising $51,304 $46,268 10.90% $395,790 $344,561 14.90%
Circulation 13,944 12,690 9.90% 106,545 100,070 6.5%
Other 2,780 721 285.50% 22,293 5,000 345.90%
Total $68,028(A) $59,679 14.00% $524,628(A)$449,631 16.7%
AVERAGE PAID
CIRCULATION:
Phoenix:
Daily (B) 448,544 429,320 4.50% 456,183 456,169 0.0%
Sunday 569,064 566,993 0.40% 579,331 581,834 -0.4%
Indianapolis:
Morning 225,323 232,985 -3.30% 226,289 230,059 -1.60%
Evening 38,879 51,315 -24.20% 42,132 56,379 -25.30%
Sunday 387,689 399,709 -3.00% 392,955 403,682 -2.70%
ADVERTISING LINAGE FOR
MAJOR DAILIES: (C)
(Thousands of inches)
Full run ROP:
Retail 250.8 237.8 5.50% 1,875.20 1,749.40 7.20%
National 42.7 33.5 27.60% 333.8 223.9 49.10%
Classified 307.8 288.8 6.60% 2,365.00 2,082.80 13.5%
Total 601.3 560.1 7.40% 4,574.00 4,056.10 12.80%
Part run ROP 148.6 120.6 23.20% 1,033.30 986.6 4.70%
FULL RUN LINAGE FOR
MAJOR MARKETS:
Phoenix (C) 274 260.9 5.00% 2,075.70 1,941.90 6.90%
Indianapolis 327.3 299.2 9.40% 2,498.30 2,114.20 18.20%
Total 601.3 560.1 7.40% 4,574.00 4,056.10 12.80%
NUMBER OF PREPRINTS
DISTRIBUTED 557 498 11.80% 4,015 3,825 5.00%
(A) Amounts include $2.3 million in the 1997 five week period and
$23.3 million in the 1997 year-to-date period of revenues from the
acquisition of the Westech group of companies, which occurred in
February 1997. The 1997 year-to-date period also includes $2.8
million of revenues from McCormick and Company, Inc. for January and
February, 1997. McCormick was not owned in January and February of
1996.
(B) Phoenix Newspapers, Inc. ceased publication of its evening
paper, The Phoenix Gazette, in January 1997. Daily circulation
includes combined morning and evening circulation for the current and
prior years.
(C) For comparability, linage statistics have been adjusted to
exclude The Phoenix Gazette.
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 Inc., 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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