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PULITZER PUBLISHING REPORTS SECOND-QUARTER NET INCOME

 ST. LOUIS, July 14 /PRNewswire/ -- Pulitzer Publishing Company (NYSE, CHX: PTZ) today reported second-quarter 1993 net income of $7.9 million, or $0.68 per share, compared with $8.9 million, or $0.77 per share, in the second quarter of 1992.
 Excluding two nonrecurring items in the prior year quarter, net income for the 1992 second quarter would have been $6.4 million, or $0.55 per share. The items were a $3.4 million favorable tax adjustment and a $1.5 million ($900,000 after-tax) write-off related to production of a feature film, which had the net effect of adding approximately $2.5 million, equivalent to $0.22 per share, to net income.
 Without those nonrecurring items, second-quarter 1993 net income was up 24 percent, principally reflecting an increase in operating profits of the broadcasting segment.
 Michael E. Pulitzer, chairman, president and chief executive officer, commented, "We were encouraged with the revenue growth in the quarter, and particularly with the continuing strength of our broadcasting operations. The last few months have been a time of significant accomplishment for Pulitzer: we closed on our purchase of WESH, the NBC affiliate serving the Daytona Beach/Orlando, Florida, market, and successfully completed a public offering of 1.35 million shares of our common stock. The proceeds of that offering, more than $37 million, have been used to reduce the debt we incurred in the purchase of WESH."
 Operating cash flow(A) for the second quarter of 1993 increased 18.4 percent to $18.8 million, from $15.9 million in the second quarter of 1992. Excluding the write-off of the feature film from 1992 which was reflected in the corporate segment, cash flow for the second quarter of 1993 would have been up 8.4 percent. Publishing cash flow was $8.3 million, down 1.6 percent from $8.4 million, primarily as the result of higher expenses. Broadcasting cash flow increased 16.6 percent to $11.4 million from $9.8 million, reflecting increased revenues.
 (A) Operating income plus depreciation and amortization.
 Second-quarter revenues increased 2.2 percent to $104.3 million, from $102.1 million a year ago. Publishing revenues were up fractionally to $73.1 million, and broadcasting revenues rose 6.7 percent to $31.2 million. Consolidated and publishing revenue comparisons were affected by the closedown and sale of certain assets of Pulitzer's Lerner Newspapers operation in Chicago on Oct. 13, 1992. Excluding Lerner's 1992 second-quarter revenues from the comparison, consolidated revenues would have increased 4.1 percent and publishing revenues would have increased 3.1 percent. The publishing gain primarily reflected increases in advertising revenues, particularly in Tucson, circulation revenues and commercial printing revenues in Chicago. Broadcasting benefitted from increases in both local and national advertising.
 Operating expenses, excluding the St. Louis Agency adjustment, were down 0.2 percent to $87 million, compared with $87.2 million in the year-ago quarter. Publishing expenses, excluding the agency adjustment, increased 1.6 percent, and broadcasting expenses increased 1.3 percent. Excluding second-quarter 1992 Lerner expenses from the comparison, 1993 consolidated operating expenses and publishing expenses would have increased 2.3 percent and 5.1 percent, respectively. Increases in newsprint and overall personnel costs were the principal factor ?the higher level of expenses. Corporate expenses decreased approximately $1.4 million in the 1993 second quarter. The comparable 1992 quarter included the $1.5 million write-off of the feature film. Publishing and broadcasting expenses include selling, general and administrative expenses and depreciation and amortization.
 Net income for the six months ended June 30, 1993, was $11.5 million, or $1.00 per share, compared with a net loss of $15.1 million, or $1.31 per share loss, the year before.
 Excluding the cumulative effect of accounting changes from both years, earnings were $11.2 million, or $0.97 per share, for the first six months compared with $10.1 million, or $0.87 per share, a year ago. Excluding the two nonrecurring items from the 1992 six-months results, net income for the 1992 first half would have been $7.6 million, or $0.65 per share.
 Operating cash flow(A) for the first six months increased 21.5 percent to $30.3 million from $25.0 million. Adjusting 1992s cash flow for the first six months for the film write-off, the cash flow increase for the first half of 1993 would have been 14.8 percent. Publishing cash flow increased 10.6 percent to $14.5 million, and broadcasting cash flow increased 17.1 percent to $17.6 million.
 (A) Operating income plus depreciation and amortization.
 Revenues for the first half increased 1.7 percent to $197.9 million, from $194.6 million in the prior year. Publishing revenues were up 0.3 percent to $141.2 million, and broadcasting revenues were up 5.3 percent to $56.7 million. Excluding Lerner revenues in the first six months of 1992 from the comparison, consolidated revenues would have increased 3.5 percent and publishing revenues would have increased 2.8 percent.
 Operating expenses, excluding the St. Louis Agency adjustment, were $171.2 million for the first six months, down 1.3 percent from $173.5 million in the prior year. Publishing expenses, excluding the agency adjustment, declined 0.8 percent. Broadcasting expenses increased 0.4 percent. Excluding Lerner expenses for the first six months of 1992 from the comparison, 1993 first-half consolidated operating expenses and publishing expenses would have increased 1.1 percent and 2.5 percent, respectively. Increases in newsprint and overall personnel costs were the principal factors in the higher level of expenses. Expenses in the corporate segment decreased to $1.8 million from $3.2 million in the prior year, which included approximately $1.5 million for the write-off of the feature film.
 Founded in St. Louis in 1878, Pulitzer Publishing is engaged in newspaper publishing and television and radio broadcasting. The company's newspaper operations include two major metropolitan dailies, the St. Louis Post-Dispatch and The Arizona Daily Star in Tucson, Ariz., and a suburban daily newspaper, the Daily Southtown, in the Chicago area.
 Broadcasting operations consist of eight network-affiliated television stations: WYFF in Greenville, S.C.; WGAL in Lancaster, Pa.; WXII in Winston-Salem, N.C.; KOAT in Albuquerque, N.M.; KETV in Omaha, Neb.; WLKY in Louisville, Ky.; WDSU in New Orleans, La.; and WESH in Daytona Beach, Fla.; and two radio stations (KTAR-AM and KKLT-FM) in Phoenix, Ariz.
 PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
 STATEMENTS OF CONSOLIDATED INCOME
 (In thousands, except earnings per share data)
 Second Quarter Ended Two Quarters Ended
 June 30 June 30 June 30 June 30
 1993 1992 1993 1992
 (Unaudited) (Unaudited)
 OPERATING REVENUES -- NET:
 Publishing:
 Advertising $ 42,683 $ 44,298 $ 81,266 $ 84,034
 Circulation 19,661 19,425 39,608 38,979
 Other 10,791 9,108 20,367 17,753
 Broadcasting 31,194 29,234 56,679 53,807
 Total Operating Revenues 104,329 102,065 197,920 194,573
 OPERATING EXPENSES:
 Publishing Operations 32,206 30,912 62,849 61,909
 Broadcasting Operations 11,102 11,036 22,289 22,222
 Selling, General and
 Administrative 39,345 40,488 77,407 79,920
 St. Louis Agency Adjustment 2,835 3,711 5,037 5,560
 Depreciation and Amortization 4,328 4,718 8,631 9,415
 Total Operating Expenses 89,816 90,865 176,213 179,026
 Operating Income 14,513 11,200 21,707 15,547
 Interest Income 239 252 537 569
 Interest Expense ( 1,501) ( 1,937) ( 3,220) (4,102)
 Net Other (Expense) ( 302) ( 172) ( 526) ( 393)
 Total ( 1,564) ( 1,857) ( 3,209) (3,926)
 INCOME BEFORE PROVISION
 FOR INCOME TAXES 12,949 9,343 18,498 11,621
 PROVISION FOR INCOME TAXES 5,099 489 7,312 1,551
 INCOME BEFORE CUMULATIVE EFFECT
 OF CHANGE IN ACCOUNTING
 PRINCIPLES 7,850 8,854 11,186 10,070
 CUMULATIVE EFFECT OF CHANGE
 IN ACCOUNTING PRINCIPLES,
 NET OF APPLICABLE INCOME
 TAXES 0 0 360 (25,147)
 NET INCOME (LOSS) $ 7,850 $ 8,854 $11,546 ($15,077)
 EARNINGS PER SHARE OF STOCK
 (COMMON AND CLASS B COMMON)
 Income before cumulative effect of
 change in accounting
 principles $ .68 $ .77 $ .97 $ .87
 Cumulative effect of change
 in accounting principles .00 .00 .03 ( 2.18)
 Total $ .68 $ .77 $ 1.00 ($ 1.31)
 WEIGHTED AVERAGE NUMBER OF SHARES
 (COMMON AND CLASS B COMMON STOCK)
 OUTSTANDING 11,599 11,533 11,590 11,530
 NOTES:
 Shares outstanding and earnings per share have been adjusted for 1992 to reflect the impact of a 10% common and Class B common stock dividend declared by the Company's Board of Directors on January 4, 1993.
 The net income for the two quarters of 1992 included the net after tax cumulative effect of the Company's change in accounting for postretirement benefits. The effect of retroactively adopting the new accounting standard as of January 1, 1992 decreased previously reported two quarters net income by the total of the cumulative effect adjustment of $25,147, or $2.18 per share. The second quarter and two quarters of 1992 were also decreased for the incremental increase in quarterly net periodic postretirement expense of $347 and $694 (after agency adjustment and income taxes), or $0.03 and $0.06 per share, respectively.
 The two quarters of 1993 included a positive adjustment to income of $360, or $0.03 per share, reflecting a change of the deferred tax rate due to the adoption in the first quarter of 1993 of Financial Accounting Standard 109, "Accounting for Income Taxes."
 The second quarter of 1992 included a positive adjustment to income of $3,400, or $0.29 per share, following the favorable settlement of federal tax examinations for the years 1985 through 1987.
 The second quarter of 1992 included the write-off of $1,471, or $0.07 per share, related to the production of a feature film.
 PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
 BUSINESS SEGMENTS
 (In thousands)
 Second Quarter Ended Two Quarters Ended
 June 30 June 30 June 30 June 30
 1993 1992 1993 1992
 (Unaudited) (Unaudited)
 Operating Revenues:
 Publishing $ 73,135 $ 72,831 $141,241 $140,766
 Broadcasting 31,194 29,234 56,679 53,807
 Total $104,329 $102,065 $197,920 $194,573
 Operating Income:
 Publishing $ 6,558 $ 6,364 $ 11,112 $ 9,067
 Broadcasting 8,826 7,146 12,387 9,697
 Corporate (A) ( 871) ( 2,310) ( 1,792) ( 3,217)
 Total $ 14,513 $ 11,200 $ 21,707 $ 15,547
 Depreciation and Amortization:
 Publishing $ 1,718 $ 2,044 $ 3,428 $ 4,080
 Broadcasting 2,610 2,674 5,203 5,335
 Total $ 4,328 $ 4,718 $ 8,631 $ 9,415
 Operating Margins:
 (Operating income to revenues)
 Publishing (B) (percent) 12.8 13.8 11.4 10.4
 Broadcasting (percent) 28.3 24.4 21.9 18.0
 (A) 1992 includes $1,471 write-off of feature film.
 (B) Operating margins for publishing stated with St. Louis Agency adjustment added back to publishing operating income.
 -0- 7/14/93
 /CONTACT: James V. Maloney, director of shareholder relations of Pulitzer Publishing Company, 314-340-8402/
 (PTZ)


CO: Pulitzer Publishing Company ST: Missouri IN: PUB SU: ERN

PS -- NY054 -- 1447 07/14/93 13:05 EDT
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