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KNIGHT-RIDDER REPORTS RESULTS

 MIAMI, Feb. 2 /PRNewswire/ -- Excluding the one-time effects of two changes in accounting principles, Knight-Ridder, Inc. (NYSE: KRI) earned $2.65 per share in 1992, a gain of 3.9 percent from $2.55 per share earned in 1991. These reported annual results include $0.14 in recurring additional costs associated with accounting changes and an earlier reported $0.12 per share charge in the second quarter associated with a labor settlement in Detroit. Knight-Ridder recorded a non- recurring net charge of $105.2 million ($1.91 per share) relating to the adoption of the two new accounting rules, resulting in net income of $0.74 per share for 1992. Further explanation of the accounting rule changes is provided later in this release.
 Operating income for the year rose 14.5 percent to $278,511,000. Income before the one-time effect of changes in accounting principles was $146,086,000, a gain of 10.6 percent over $132,068,000 in 1991.
 In the fourth quarter, Knight-Ridder earned $0.79 per share vs. $0.86 per share in the fourth quarter of 1991. This result included $0.14 per share in charges associated with a change in the method of accounting for an investment in a newsprint mill and the 1992 annual impact of Financial Accounting Standards (FAS) 106 on post retirement benefits.
 Newspaper Division
 Knight-Ridder's Newspaper Division posted an 11.9 percent gain in operating income of $290,522,000, vs. $259,584,000 in 1991. Newspaper Division revenue for the year was $1,944,090,000, a 2.1 percent increase over 1991.
 In the fourth quarter, the Newspaper Division had operating income of $90,684,000, a 13.6 percent improvement over the fourth quarter of 1991. Newspaper Division revenue for the quarter was $520,888,000, a 3.3 percent gain over 1991.
 Business Information Services Division
 Business Information Services operating income grew 9.3 percent to $22,069,000. BIS operating revenue grew 8.8 percent to $385,439,000 from $354,361,000 in 1991.
 In the fourth quarter, BIS operating income increased 10.7 percent to $7,197,000. Operating revenue was up 9.4 percent to $97,818,000.
 Accounting Rule Changes and Adjustments
 As previously announced, in 1992 Knight-Ridder adopted two mandated accounting rule changes. The two mandated changes were:
 -- The adoption of Financial Accounting Standards (FAS) 106 on post retirement benefits other than pensions. This resulted in a reduction in earnings of $131.0 million or $2.37 per share. This was higher than previously announced because of a greater liability in Detroit than originally estimated. The full-year after tax impact of FAS 106 was $0.07 per share.
 -- The adoption of FAS 109, the deferred income tax rule. The result of this change was to increase net income in 1992 by $25.8 million or almost $0.47 per share through a reduction in tax reserves to reflect current tax rates.
 The net impact of these two one-time adjustments was $105.2 million or $1.91 per share.
 In addition, Knight-Ridder adopted the equity method of accounting for its investment in Ponderay Newsprint Company. Prior to 1992, Knight-Ridder had accounted for its investment on the cost method. As a result, the company reported its 13.5 percent share ($6.5 million) of the 1992 losses of Ponderay. This resulted in a reduction of $0.07 in earnings per share.
 Comments by Chief Financial Officer Robert F. Singleton
 "We finished a difficult year on a positive note with good fourth quarter performance for retail and classified advertising in our newspapers," said CFO Robert F. Singleton.
 "Classified advertising for the quarter showed the best revenue percentage gain we have seen since the first half of 1988. A strong improvement trend began in October and strengthened progressively through December. In December, we posted impressive double-digit classified revenue gains in Philadelphia, Miami, Charlotte, Saint Paul and Detroit. We also had a nearly 10 percent gain in San Jose. Much of the surge came in help-wanted, a welcome sign of overall improvement in the national economy.
 "Retail posted good performance in our larger papers throughout much of the last four months of the year. In December, we had particularly strong retail revenue gains in Philadelphia, Miami, Charlotte and St. Paul," Singleton said.
 "National advertising was mostly soft in the fourth quarter with only a few isolated exceptions. The papers were unable to match strong airline advertising a year ago," Singleton said.
 "Cost control was an important feature of our financial results. The most important component of this was newsprint costs which were down 17.9 percent for the year. But our managers also did an outstanding job of holding down most other costs below or in line with inflation. Some of this was offset, however, by significant increases in depreciation and amortization and other operating costs associated with the startup of our new plant in Philadelphia.
 "Overall, we had a good year in Business Information Services. In the fourth quarter we again saw increased Dialog customer growth and usage, global growth of MoneyCenter installations and revenue and continuing operating margin improvement in the Transport Group. International BIS revenue reached $111 million for the year, evidence of the substantial progress we are making in Europe and Asia.
 "Our cable operations had their best year ever. TKR Cable, our joint venture with Liberty Media, contributed over $9.1 million to pretax profit in 1992.
 "At year-end, our total debt was $560.2 million and shareholder equity was $1.2 billion for a total-debt-to-total-capital ration of 32.2 percent.
 "At this point our outlook for 1993 is optimistic. We are encouraged by the current upward newspaper advertising trends. Our BIS operations are all looking for good growth in 1993. And we are forecasting additional bottom-line improvement in cable. We have some hurdles to get over. Costs associated with the completion of the startup of the new plant in Philadelphia and the operational changeover from the old plant will be heavy. First quarter earnings will likely be below the $0.46 per share we earned in the first quarter of 1992. But we have every reason to believe that the year 1993 will produce overall earnings growth for our shareholders," Singleton said.
 Annual Meeting of Shareholders
 Knight-Ridder's annual meeting of shareholders will be held at 9:30 a.m. on Thursday, May 13, at the Omni Hotel, Biscayne Boulevard at 16th Street in Miami. All shareholders at the close of business on March 24, 1993, are entitled to receive notice of and to vote at the meeting.
 Knight-Ridder is an international communications company engaged in newspaper publishing, business news and information services, electronic retrieval services, news, graphics, and photo services, cable television and newsprint manufacturing. The company publishes 29 daily newspapers in the United States. Around the world, news, information and advertising from Knight-Ridder reach more than 100 million people in more than 135 countries. The company's stock is listed on exchanges in New York, Tokyo and Frankfurt.
 Financial details for the fourth quarter and the year follow.
 KNIGHT-RIDDER, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 (In thousands of dollars, except share data)
 Quarter Ended Four Quarters Ended
 Dec. 27 Dec. 29 Dec. 27 Dec. 29
 1992 1991 1992 1991
 OPERATING REVENUE
 Newspapers
 Advertising
 Retail $ 228,061 $ 222,990 $ 758,496 $ 759,016
 General 42,051 46,033 174,750 172,958
 Classified 124,045 113,401 510,898 497,687
 Total 394,157 382,424 1,444,144 1,429,661
 Circulation 116,047 112,328 460,014 439,029
 Other 10,684 9,304 39,932 35,127
 Total Newspapers 520,888 504,056 1,944,090 1,903,817
 Business Information
 Services 97,818 89,393 385,439 354,361
 Total Operating
 Revenue 618,706 593,449 2,329,529 2,258,178
 OPERATING COSTS
 Labor and employee
 benefits 256,281 247,114 990,254 942,350
 Newsprint, ink and
 supplements 82,253 95,013 316,814 379,814
 Other operating
 costs 160,535 144,982 615,729 568,686
 Depreciation and
 amortization 31,593 29,782 128,221 124,055
 Total Operating
 Costs 530,662 516,891 2,051,018 2,014,905
 OPERATING INCOME 88,044 76,558 278,511 243,273
 OTHER INCOME (EXPENSE)
 Interest expense (13,148) (14,463) (52,375) (68,843)
 Interest expense
 capitalized 0 6,179 14,746 22,142
 Interest income 1,813 1,221 5,078 6,433
 Other, net (5,580) 2,695 (6,244) 7,365
 Total (16,915) (4,368) (38,795) (32,903)
 Income before
 income taxes 71,129 72,190 239,716 210,370
 Income taxes 27,531 25,825 93,630 78,302
 INCOME BEFORE CUMULATIVE
 EFFECT OF CHANGES IN
 ACCOUNTING PRINCIPLES 43,598 $ 46,365 $ 146,086 $ 132,068
 CUMULATIVE EFFECT OF
 CHANGES IN ACCOUNTING
 PRINCIPLES FOR:
 Income Taxes --- --- 25,800 ---
 Postretirement Benefits
 Other than Pension --- --- (131,000) ---
 NET INCOME $ 43,598 $ 46,365 $ 48,886 $ 132,068
 PER SHARE DATA:
 EARNINGS BEFORE CUMULATIVE
 EFFECT OF CHANGES IN
 ACCOUNTING PRINCIPLES $ 0.79 $ 0.86 $ 2.65 $ 2.55
 CUMULATIVE EFFECT OF
 CHANGES IN ACCOUNTING
 PRINCIPLES --- --- (1.91) ---
 NET INCOME PER COMMON
 AND COMMON EQUIVALENT
 SHARE $ 0.79 $ 0.86 $ 0.74 $ 2.55
 DIVIDENDS DECLARED
 PER COMMON SHARE $ 0.35 $ 0.35 $ 1.40 $ 1.40
 AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING (000s) 55,487 53,824 55,178 51,797
 BUSINESS SEGMENT INFORMATION
 (In thousands of dollars)
 Quarter Ended Four Quarters Ended
 Dec. 27 Dec. 29 Dec. 27 Dec. 29
 1992 1991 1992 1991
 OPERATING REVENUE
 Newspapers $ 520,888 $ 504,056 $ 1,944,090 $ 1,903,817
 Business Information
 Services 97,818 89,393 385,439 354,361
 $ 618,706 $ 593,449 $ 2,329,529 $ 2,258,178
 OPERATING INCOME
 Newspapers $ 90,684 $ 79,836 $ 290,522 $ 259,584
 Business Information
 Services 7,197 6,500 22,069 20,199
 Corporate (9,837) (9,778) (34,080) (36,510)
 $ 88,044 $ 76,558 $ 278,511 $ 243,273
 DEPRECIATION AND
 AMORTIZATION
 Newspapers $ 21,743 $ 20,441 $ 88,033 $ 85,134
 Business Information
 Services 9,482 8,954 38,556 37,159
 Corporate 368 387 1,632 1,762
 $ 31,593 $ 29,782 $ 128,221 $ 124,055
 -0- 2/2/93
 /CONTACT: Frank N. Hawkins Jr., 305-376-3838, or Lee Ann Schlatter, 305-376-3839, both of Knight-Ridder, Inc./
 (KRI)


CO: Knight-Ridder, Inc. ST: Florida IN: PUB SU: ERN

AW-JB-JJ -- FL006 -- 1733 02/02/93 10:11 EST
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