Printer Friendly

KNIGHT-RIDDER REPORTS RESULTS

 MIAMI, July 21 /PRNewswire/ -- Knight-Ridder, Inc. (NYSE: KRI), earned $.77 per share in the second quarter of 1993, a decline of 8.3 percent from the $.84 per share reported a year ago.
 Net income was $42,497,000, down 7.8 percent from $46,090,000 earned in the second quarter of 1992.
 Operating income was down 3.5 percent to $76,245,000 from $79,049,000 a year earlier.
 Newspaper Division
 Knight-Ridder's Newspaper Division earned $82,658,000, 2.5 percent above the $80,631,000 earned in the second quarter of 1992. Division operating revenue rose 3.2 percent to $510,682,000. Total advertising revenue was up 2.0 percent to $377,483,000. Full-run ROP advertising linage was 1.0 percent ahead of the second quarter of 1992. Costs were up 3.3 percent in the second quarter due in large part to additional costs associated with the startup of a new production facility in Philadelphia.
 Business Information Services Division
 Business Information Services Division revenue increased 16.1 percent to $111 million during the quarter, due largely to the Data-Star acquisition earlier this year. Knight-Ridder Financial and the Transport Group registered strong revenue gains. Dialog's revenues grew less than expected as a few larger customers in the Northeastern United States reduced spending in this uncertain economy.
 Operating profits for the division were down 20.7 percent as a result of slower than expected Dialog revenue growth and increased investment spending in market development.
 Comments by Chief Financial Officer Robert F. Singleton
 Robert F. Singleton, Knight-Ridder's chief financial officer, said, "This quarter reflected a difficult operating environment. Advertising revenue was far more sluggish than originally anticipated. Dialog revenue was also below our expectations. Our revenue softness underscored widespread uncertainty about the U.S. economy and the government's policies as seen in continuing layoffs of white-collar workers and an absence of significant job creation. Concern about the costs of proposed higher taxes and a proposed new national health care plan also seem to be contributing to the overall uncertainty.
 "Miami, which continued to be affected by substantial post-Hurricane Andrew spending, was fairly strong. And we again saw improvement in Detroit. But business was slack in Philadelphia and San Jose and most of our other newspaper markets.
 "General advertising was 10.1 percent below the second quarter of last year and retail was only up 1.4 percent. On the brighter side, classified advertising, led by Miami, rose 7.2 percent.
 "The results for the quarter were reduced by an increase in additional costs associated with moving from our old plant in downtown Philadelphia to our new suburban printing facility. Another major factor was the increase in our interest expense. Prior to completion of the new plant, interest on debt attributed to the new plant was capitalized. Now that the plant is being used, such interest is charged to expense. These increases reduced our second quarter earnings by about $.21 per share.
 "We have now cycled the startup of the new Philadelphia plant, and starting in the third quarter we expect to see decreases in our Philadelphia costs as we begin to realize some of the production efficiencies the new plant makes possible.
 "Dialog growth was also affected somewhat by business problems among some of our top customers, particularly those in the defense industry. However, we continue to be delighted with our acquisition of Data-Star, which is out-performing our expectations," Singleton said.
 "Knight-Ridder Financial showed good top-line growth as a result of strong market acceptance of our MoneyCenter system around the world.
 "Looking ahead, it is clear that the results for the year will greatly depend on the performance of the U.S. economy in the second half of the year," Singleton said.
 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, advertising and information from Knight-Ridder reach more than 100 million people in well over 100 countries.
 The financial schedules for the quarter follow.
 KNIGHT-RIDDER, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 (In thousands of dollars, except per share data)
 Quarter Ended Two Quarters Ended
 June 27 June 28 June 27 June 28
 1993 1992 1993 1992
 OPERATING REVENUE
 Newspapers
 Advertising
 Retail $ 191,144 $ 188,486 $ 360,861 $ 354,392
 General 44,606 49,603 87,521 93,989
 Classified 141,733 132,163 276,934 255,894
 Total 377,483 370,252 725,316 704,275
 Circulation 118,850 115,006 235,833 230,241
 Other 14,349 9,689 27,351 19,429
 Total Newspapers 510,682 494,947 988,500 953,945
 Business Information
 Services 111,000 95,584 217,076 192,024
 Total Operating
 Revenue 621,682 590,531 1,205,576 1,145,969
 OPERATING COSTS
 Labor and employee
 benefits 255,323 249,834 508,699 489,178
 Newsprint, ink and
 supplements 84,916 78,764 164,974 160,431
 Other operating
 costs 168,834 151,152 331,730 302,353
 Depreciation and
 amortization 36,364 31,732 70,248 64,598
 Total Operating
 Costs 545,437 511,482 1,075,651 1,016,560
 OPERATING INCOME 76,245 79,049 129,925 129,409
 OTHER INCOME (EXPENSE)
 Interest expense (12,442) (12,521) (25,637) (26,674)
 Interest expense
 capitalized 13 7,109 18 13,786
 Interest income 1,426 829 3,180 2,254
 Other, net (232) 1,091 (3,505) (350)
 Total (11,235) (3,492) (25,944) (10,984)
 Income before
 income taxes 65,010 75,557 103,981 118,425
 Income taxes 22,513 29,467 38,348 47,329
 INCOME BEFORE CUMULATIVE
 EFFECT OF CHANGES
 IN ACCOUNTING
 PRINCIPLES 42,497 46,090 65,633 71,096
 Cumulative effect of
 changes in accounting
 Principles for:
 Income Taxes --- --- --- 25,800
 Postretirement
 benefits other
 than pensions --- --- --- (131,000)
 Net Income (loss) $ 42,497 $ 46,090 $ 65,633 $(34,104)
 EARNINGS PER COMMON
 AND COMMON EQUIVALENT
 SHARE
 Income before cumulative
 effect of changes
 in accounting
 principles $ 0.77 $ 0.84 $ 1.18 $ 1.30
 Cumulative effect of
 changes in accounting
 principles --- --- --- (1.92)
 Net Income (loss) $ 0.77 $ 0.84 $ 1.18 $ (0.62)
 DIVIDENDS DECLARED
 PER COMMON SHARE $ 0.35 $ 0.35 $ 0.70 $ 0.70
 AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING (000s) 55,476 55,149 55,611 54,898
 Four Quarters Ended
 June 27 June 28
 1993 1992
 OPERATING REVENUE
 Newspapers
 Advertising
 Retail $ 764,965 $ 750,143
 General 168,282 176,691
 Classified 531,938 497,659
 Total 1,465,185 1,424,493
 Circulation 465,606 454,113
 Other 47,854 37,380
 Total Newspapers 1,978,645 1,915,986
 Business Information
 Services 410,491 367,879
 Total Operating
 Revenue 2,389,136 2,283,865
 OPERATING COSTS
 Labor and employee
 benefits 1,009,775 967,541
 Newsprint, ink and
 supplements 321,357 346,888
 Other operating
 costs 645,106 585,975
 Depreciation and
 amortization 133,871 125,773
 Total Operating
 Costs 2,110,109 2,026,177
 OPERATING INCOME 279,027 257,688
 OTHER INCOME (EXPENSE)
 Interest expense (51,338) (57,529)
 Interest expense
 capitalized 978 25,707
 Interest income 6,004 5,200
 Other, net (9,399) 5,716
 Total (53,755) (20,906)
 Income before
 income taxes 225,272 236,782
 Income taxes 84,649 91,021
 INCOME BEFORE CUMULATIVE
 EFFECT OF CHANGES
 IN ACCOUNTING
 PRINCIPLES 140,623 145,761
 Cumulative effect of
 changes in accounting
 Principles for:
 Income Taxes --- 25,800
 Postretirement
 benefits other
 than pensions --- (131,000)
 Net Income (loss) $140,623 $ 40,561
 EARNINGS PER COMMON
 AND COMMON EQUIVALENT
 SHARE
 Income before cumulative
 effect of changes
 in accounting
 principles $ 2.53 $ 2.70
 Cumulative effect of
 changes in accounting
 principles --- (1.95)
 Net Income (loss) $ 2.53 $ 0.75
 DIVIDENDS DECLARED
 PER COMMON SHARE $ 1.40 $ 1.40
 AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING (000s) 55,535 54,016
 BUSINESS SEGMENT INFORMATION
 (In thousands of dollars)
 Quarter Ended Two Quarters Ended
 June 27 June 28 June 27 June 28
 1993 1992 1993 1992
 OPERATING REVENUE
 Newspapers $ 510,682 $ 494,947 $ 988,500 $ 953,945
 Business Information
 Services 111,000 95,584 217,076 192,024
 $ 621,682 $ 591,531 $1,205,576 $1,145,969
 OPERATING INCOME
 Newspapers $ 82,658 $ 80,631 $ 139,186 $ 135,041
 Business Information
 Services 4,097 5,169 9,713 9,793
 Corporate (10,510) (6,751) (18,974) (15,425)
 $ 76,245 $ 79,049 $ 129,925 $ 129,409
 DEPRECIATION AND AMORTIZATION
 Newspapers $ 24,410 $ 21,581 $ 47,354 $ 44,301
 Business Information
 Services 11,557 9,731 22,098 19,442
 Corporate 397 420 796 855
 $ 36,364 $ 31,732 $ 70,248 $ 64,598
 Four Quarters Ended
 June 27 June 28
 1993 1992
 OPERATING REVENUE
 Newspapers $ 1,978,645 $1,915,986
 Business Information
 Services 410,491 367,879
 $ 2,389,136 $2,283,865
 OPERATING INCOME
 Newspapers $ 294,667 $ 269,738
 Business Information
 Services 21,989 21,707
 Corporate (37,629) (33,757)
 $ 279,027 $ 257,688
 DEPRECIATION AND AMORTIZATION
 Newspapers $ 91,086 $ 86,649
 Business Information
 Services 41,212 37,441
 Corporate 1,573 1,683
 $ 133,871 $ 125,773
 -0- 7/21/93
 /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

RC-AW -- FL001 -- 3848 07/21/93 10:25 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 21, 1993
Words:1583
Previous Article:FEDERAL-MOGUL ELECTS ROBERT S. MILLER JR. TO BOARD
Next Article:JAMES B. ADAMSON NAMED CHIEF EXECUTIVE OFFICER OF BURGER KING
Topics:


Related Articles
KNIGHT-RIDDER/TRIBUNE BUSINESS NEWS SIGNS AGREEMENTS
KNIGHT-RIDDER REPORTS RESULTS
KNIGHT-RIDDER REPORTS RESULTS
KNIGHT-RIDDER REPORTS RESULTS
KNIGHT-RIDDER REPORTS RESULTS
KNIGHT-RIDDER ANNOUNCES BIS REORGANIZATION
KNIGHT-RIDDER INCREASES DIVIDEND, SPLITS STOCK
Knight-Ridder Internal Document Shows Dismal Free Press Figures, Reports The Detroit Sunday Journal
Knight Ridder Gives Earnings Guidance at Media Conference.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters