Times Mirror Reports Third Quarter Results.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Oct. 20, 1998--Times Mirror announced today that net income for the 1998 third quarter was $1.08 billion, or $12.71 per share, compared with $66.9 million, or 62 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the prior year's quarter. The 1998 third quarter results reflect: -- A $1.11 billion gain ($13.15 per share) on the disposition of Matthew Matthew one of the twelve disciples. [N.T.: Matthew] See : Evangelism Bender/Shepard's. -- Continuation of the company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). review program which produced pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of $80 million (81 cents per share). -- Additional pretax charges of $14 million (10 cents per share) at StayWell and AchieveGlobal AchieveGlobal, Inc. is a provider of learning-based solutions focused on skills training and consulting in leadership development, sales effectiveness, and customer service training. that did not qualify for accounting classification as restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . -- Excluding both sets of charges, income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $56.5 million, or 61 cents per share, compared with income of $54.1 million, or 49 cents per share, in the prior year. -- Including these charges, current year continuing operations produced a loss of $19.6 million, or 30 cents per share. -- Revenues from continuing operations were $729.4 million compared with $699.1 million in the prior year. "The disposition of Matthew Bender/Shepard's prompted us to comprehensively review our organization and related operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. to see which actions we could take to improve our cost structure," said Mark H. Willes, chairman, president and chief executive officer, Times Mirror and publisher, Los Angeles Times Los Angeles Times Morning daily newspaper. Established in 1881, it was purchased and incorporated in 1884 by Harrison Gray Otis (1837–1917) under The Times-Mirror Co. (the hyphen was later dropped from the name). . "Given the current economic environment this program is very timely. "For the third quarter, good operating performance at our Eastern newspapers was more than offset by a substantial year-to-year operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. decline at the Los Angeles Times, where costs have grown in anticipation of advertising revenue growth that has not, as yet, materialized. In the fourth quarter, our restructuring review will continue throughout the company with the largest steps likely to be taken at The Times. Finally, we continue to expect the company to meet our financial objectives for the year," said Willes. 1998 Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results For the nine months ended September September: see month. 30, 1998, net income was $1.17 billion, or $12.96 per share, compared with $178.1 million, or $1.56 per share, for the same prior-year period. The year-to-date results include an aftg costs of $119.7 million, and pretax charges nl.0 million, or $1.74 per share, compared with evenues from continuing operations for the nine months ended September 30, 1998, were $2.20 billion compared with $2.09 billion for the period a year ago. For the nating profit, before restructuring charges, wasat the Los Angeles Times, to generate volume gral revenues rose 1.8 percent. Advertising at the Eastern newspapers. Excluding recent acqt in the 1998 third quarter, with average newspoperations, all other costs rose 3.0 percent in 1 percent. At the Los Angeles Times, average dare restructuring charges was $295.5 million, cohe nine months ended September 30, 1998, rose 6.7 percent to $1.69 billion compared with $1.58 billion in the prior year. Professional Information The Professional Information segment's 1998 third quarter results reflect the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of Matthew Bender/Shepard's and Mosby Mos·by , John Singleton 1833-1916. American Confederate soldier who led a small cavalry unit, Mosby's Rangers, on raids against advanced Union positions. . The segment's 1998 third quarter operating profit before restructuring charges was $20.2 million, an increase of 5.8 percent from $19.1 million in the prior year. Including restructuring and other special charges of $54.2 million, Professional Information's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was $34.0 million in the 1998 third quarter. The restructuring charges of $40.2 million primarily reflect goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and facility closures. The special charges of $14.0 million are related to product development and other asset write-offs largely at StayWell and AchieveGlobal. Both sets of charges are expected to produce future annual savings of approximately $6 million, beginning in 1999. The segment's 1998 third quarter revenues from continuing operations were $106.5 million, compared with $104.9 million in the prior year. For the nine months ended September 30, 1998, operating profit before restructuring charges was $54.3 million, an increase of $8.3 million, or 18.0 percent, over the results in the same period in the prior year. Professional Information's operating loss was $4.8 million, including restructuring and other special charges of $59.1 million, of which $14.0 million, as reported in the 1998 third quarter, represents those amounts not qualifying for accounting classification as restructuring charges. For the nine months ended September 30, 1998, Professional Information's revenues from continuing operations were $322.3 million compared with $306.8 million in the prior year. Magazine Publishing The Magazine Publishing segment reported 1998 third quarter operating profit, before restructuring charges, of $7.8 million, an increase of 42.8 percent, from $5.5 million in the prior year. Including restructuring charges of $29.1 million, the 1998 third quarter operating loss was $21.2 million. The restructuring charges largely reflect goodwill impairment for two titles and are expected to produce annual savings of approximately $1 million, beginning in 1999. The 1998 third quarter revenues were $65.8 million, compared with $66.0 million in the prior year. Magazine Publishing o5 million. For the nine months ended September 30, 1998, Magazine Publishing revenues were $191.1 million compared with $183.4 million in the prior year. Corporate and Other The Corporate and Other segment reported a 1998 third quarter operating loss of $15.6 million, excluding a $6.0 million restructuring charge, compared with a30, 1998, 8.7 million Series A common shares havr the balance of the year. At September 3 Restructuring Program and Discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Operatioeen taken through the first nine months. The prxes, were $12.0 million, or 14 cents per share, compared with $12.9 million, or 13 cents per share, in the prior year. The disposition of legal publisher, Matthew Bender & Company, and the 50 percent ownership in legal citation Legal citation is the style of crediting and referencing other documents or sources of authority in legal writing. In addition to the basic rules of footnoting and quotation that closely follows regular citation rules, there are several broad classes of law citation: People with the surname Harcourt:
Times Mirror (TMC TMC Technology Marketing Corporation (Norwalk, Connecticut) TMC Texas Medical Center (Houston, TX) TMC Traffic Message Channel TMC The Movie Channel TMC Traffic Management Center -- 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 and Pacific Stock exchanges), a Los Angeles-based news and information company, publishes the Los Angeles Times, Newsday Newsday Evening daily tabloid newspaper published in Long Island, N.Y. It was established in 1940, as the residential suburbs in Nassau and Suffolk counties began to expand. Following a liberal-independent policy, it has specialized in reporting serious local news. , The Baltimore Sun Baltimore Sun Daily newspaper published in Baltimore, Md., U.S. It was begun as a four-page penny tabloid in 1837 by Arunah Shepherdson Abell, a journeyman printer from Rhode Island. , The Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. Courant Cou`rant´ a. 1. (Her.) Represented as running; - said of a beast borne in a coat of arms. n. 1. A piece of music in triple time; also, a lively dance; a coranto. 2. , The Morning Call, The (Stamford) Advocate and Greenwich Time; a wide array of professional information for the aviation, health improvement and skills training markets, and consumer magazines. Times Mirror newspapers have won a total of 58 Pulitzer Prizes Pulitzer Prizes, annual awards for achievements in American journalism, letters, and music. The prizes are paid from the income of a fund left by Joseph Pulitzer to the trustees of Columbia Univ. , among the highest of any news and information company in the country. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risk and uncertainty. There can be no assurance that these future results will be achieved. Readers are cautioned to refer to the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1997 filed with the Securities and Exchange Commission for a description of factors which could affect the company's performance. -0-
THE TIMES MIRROR COMPANY
SUMMARY OF RESULTS
(In thousands, except per share amounts and percentages)
Third Quarter Ended
September 30,
1998 1997 % Change
REVENUES $ 729,399 $ 699,067 4.3
Operating expenses 645,649 601,357 7.4
Restructuring
and one-time charges 80,012 -- 100.0+
OPERATING PROFIT 3,738 97,710 (96.2)
Interest expense, net (6,448) (11,058) 41.7
Other, net 7,674 3,528 100.0+
Income from continuing
operations before
income tax provision 4,964 90,180 (94.5)
Income tax provision 24,536 36,118 32.1
Income (loss) from
continuing operations (19,572) 54,062 (100.0+)
Discontinued
operations:(a)
Income from operations,
net of tax 11,985 12,862 (6.8)
Net gain on disposal,
net of tax 1,084,136 -- --
NET INCOME 1,076,549 66,924 100.0+
Preferred dividend
requirements 5,424 7,879 (31.2)
EARNINGS APPLICABLE
TO COMMON SHAREHOLDERS $ 1,071,125 $ 59,045 100.0+
BASIC EARNINGS
PER COMMON SHARE:
Continuing operations (b) $ (.30) $ 0.50 (100.0+)
Discontinued operations (a) 13.01 0.14 100.0+
BASIC EARNINGS PER SHARE $ 12.71 $ 0.64 100.0+
DILUTED EARNINGS
PER COMMON SHARE:
Continuing operan; Mosby,
Inc., a publisher of health scieior year financial statements have been
re as follows:
Basic Diluted
Earnings per share from
continuing operations $(.30)
September 30,
5.9
Restructuring and
one-time charges 119,709 -- --
OPERATING PROFIT 178,837 295,125 (39.4)
Interest expense, net (33,131) (25,365) (30.6)
87 22.4
Income from continuing
operatiet gain on disposal,
net of tax 1,084,136 -- --
NET INCOME 1,171,011 178,143 100.0+
Preferations (a) 12.66 .20 100.0+
BASIC EARNINGS PER SHARE $ 13.30 $ 1.61 100.0+
DILUTED EARNINGS
PER COMMON SHARE:
Continted 89,068 96,8scientific and
technical information. Prior yearng, one-time and other special
charges, is as follows:
Basic Diluted
Earnings per share from
continuing operations $ .64 $ .63
Add: Restructuring, one-time
and other special charges 1.14 1.11
Earnings per share from
continuing operations excluding
restructuring, one-time and
other special charges $1.78 $1.74
THE TIMES MIRROR COMPANY
BUSINESS SEGMENTS
(In thousands)
Pro Forma (a)
Third Quarter Ended Third Quarter Ended
September 30, September 30,
1998 1997 1998 1997
NEWSPAPER PUBLISHING
Revenues $556,604 $524,962 $556,604 $524,962
Operating Profit 80,511 90,350 85,236 90,350
PROFESSIONAL INFORMATION
Revenues $106,512 $104,880 $106,512 $104,880
Operating Profit (Loss) (33,970) 19,137 20,244 19,137
MAGAZINE PUBLISHING
Revenues $ 65,828 $ 65,974 $ 65,828 $ 65,974
Operating Profit (Loss) (21,233) 5,491 7,839 5,491
CORPORATE AND OTHER
Revenues $ 289 $ 3,323 $ 289 $ 3,323
Operating Loss (21,570) (17,268) (15,573) (17,268)
CONTINUING OPERATIONS
Revenues $729,399 $699,067 $729,399 $699,067
Operating Profit 3,738 97,710 97,746 97,710
(a) Excludes restructuring, one-time and other special charges in
1998 as follows:
Newspaper Publishing $ 4,725
Professional Information 54,214
Magazine Publishing 29,072
Corporate and Other 5,997
$ 94,008
THE TIMES MIRROR COMPANY
BUSINESS SEGMENTS
(In thousands)
Pro Forma (a)
Year to Date Ended Year to Date Ended
September 30, September 30,
1998 1997 1998 1997
NEWSPAPER PUBLISHING
Revenues $1,685,256 $1,579,432 $1,685,256 $1,579,432
Operating Profit 255,924 300,909 295,499 300,909
PROFESSIONAL INFORMATION
Revenues $ 322,295 $ 306,821 $ 322,295 $ 306,821
Operating Profit (Loss) (4,808) 45,962 54,253 45,962
MAGAZINE PUBLISHING
Revenues $ 191,096 $ 183,361 $ 191,096 $ 183,361
Operating Profit (Loss) (19,503) 13,350 9,569 13,350
CORPORATE AND OTHER
Revenues $ 700 $ 21,451 $ 700 $ 21,451
Operating Loss (52,776) (65,096) (46,779) (65,096)
CONTINUING OPERATIONS
Revenues $2,199,347 $2,090,626 $2,199,347 $2,090,626
Operating Profit 178,837 295
Magazine Publishing Change
Los Angeles Times
Daily -3.0%
The Hartford Courant
Daily 27 225 0.2%
Sunday 175,953 176,442 (489) -0.3%
The Advocate/
Greenwich Time
Daily 41,157 41,532 (375) -0.9%
Sunday 52,721 53,606 (885) -1.7%
Totals
Daily 2,335,767 2,313,502 22,265 1.0%
Sunday 3,043,004 3,039,454 3,550 0.1%
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