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PULITZER PUBLISHING REPORTS THIRD-QUARTER NET INCOME

 ST. LOUIS, Oct. 19 /PRNewswire/ -- Pulitzer Publishing Company (NYSE/CHX:PTZ) today reported third-quarter 1993 net income of $3.3 million, or $0.25 per share, compared with $4.0 million, or $0.35 per share, in the third quarter of 1992.
 Year-over-year comparisons were affected by the acquisitions of television stations WESH and KCCI on June 30, 1993 and September 9, 1993, respectively, and by a number of non-recurring items. These items are summarized on the attached "Schedule of Non-Recurring Items and Effect of Television Acquisitions" ("Schedule").
 Excluding acquisition effects and non-recurring items, third-quarter 1993 net income would have been $4.3 million, or $0.33 per share, compared with $4.1 million, or $0.36 per share (see Schedule). Even though net income was up on a comparable basis, earnings per share were down because of an increase in shares outstanding due to the public offering of 1.35 million of shares in July 1993.
 Michael E. Pulitzer, chairman, president and chief executive officer, commented, "On an apples-to-apples basis, our third-quarter net income increased slightly, despite the fact that broadcasting was going against a very strong quarter in 1992. The difficult comparison for broadcasting continues, since the fourth quarter of 1992 included $1.9 million in political advertising."
 Operating cash flow (operating income plus depreciation and amortization) for the third quarter of 1993 increased 39.9 percent to $16.2 million, from $11.6 million in the third quarter of 1992. Excluding WESH and KCCI from 1993 and Lerner from 1992 (see Schedule), cash flow for the 1993 third quarter would have been down approximately $400,000 from the prior year.
 Publishing cash flow increased 30.6 percent to $6.7 million from $5.1 million in the prior year. Excluding Lerner's 1992 results, which included a $1.6 million one-time charge, publishing cash flow would have been down approximately $400,000. Broadcasting cash flow increased 41.7 percent to $10.4 million from $7.3 million. Excluding WESH and KCCI, broadcasting cash flow would have been essentially even with the prior year. The 1992 third quarter benefited from strong revenue gains, principally due to the Summer Olympics and political advertising.
 Third-quarter revenues increased 9.6 percent to $106.8 million, from $97.4 million a year ago. Publishing revenues increased 1.3 percent to $71.3 million, and broadcasting revenues rose 31.4 percent to $35.5 million. Excluding WESH and KCCI's 1993 revenues and Lerner's 1992 revenues from the comparison, consolidated revenues would have increased 2.9 percent, and publishing and broadcasting revenues would have increased 3.5 percent and 1.5 percent, respectively. The publishing gain primarily reflected increases in advertising revenues (particularly in Tucson), circulation revenues and commercial printing revenues. The broadcasting comparison was affected by strong revenue gains in the 1992 third quarter.
 Operating expenses, excluding the St. Louis Agency adjustment, increased 9.4 percent to $95.9 million, compared with $87.6 million in the year-ago quarter. Publishing expenses, excluding the agency adjustment, decreased 0.2 percent, while broadcasting expenses increased 37.4 percent.
 Excluding WESH and KCCI's 1993 expenses and Lerner's 1992 expenses, consolidated operating expenses would have increased 4.4 percent, and publishing and broadcasting expenses would have increased 5.5 percent and 1.6 percent, respectively. Increases in newsprint and overall personnel costs were the principal factors in the higher level of expenses. Publishing and broadcasting expenses include selling, general and administrative expenses and depreciation and amortization.
 Net income for the nine months ended September 30, 1993 was $14.8 million, or $1.24 per share, compared with a net loss of $11.1 million, or $0.96 per share loss, the year before.
 Excluding the cumulative effect of accounting changes, other non-recurring items and WESH and KCCI, net income for the first nine months would have been $15.5 million, or $1.29 per share, compared with $12 million, or $1.04 per share (see Schedule).
 Operating cash flow (operating income plus depreciation and amortization) for the first nine months increased 27.4 percent to $46.5 million from $36.5 million. Excluding WESH and KCCI from 1993 and Lerner and a feature-film write-off from 1992 (see Schedule), cash flow for the first nine months of 1993 would have increased 7.1 percent.
 Publishing cash flow increased 16.2 percent to $21.2 million from $18.3 million. Excluding Lerner from 1992, publishing cash flow would have increased 1.8 percent. Broadcasting cash flow increased 25.2 percent to $28 million from $22.4 million. Excluding WESH and KCCI, broadcasting cash flow would have increased 11.5 percent.
 Revenues for the first nine months increased 4.4 percent to $304.8 million, from $292 million in the prior year. Publishing revenues were up 0.7 percent to $212.6 million, and broadcasting revenues were up 14.1 percent to $92.2 million. Excluding WESH and KCCI's 1993 revenues and Lerner's 1992 revenues, consolidated revenues would have increased 3.3 percent, and publishing and broadcasting revenues would have increased 3.1 percent and 4.0 percent, respectively.
 Operating expenses, excluding the St. Louis Agency adjustment, increased 2.3 percent to $267.1 million for the first nine months from $261.1 million in the prior year. Publishing expenses, excluding the agency adjustment, declined 0.6 percent, while broadcasting expenses increased 12.9 percent. Excluding WESH and KCCI's 1993 expenses and Lerner's 1992 expenses, consolidated operating expenses for the first nine months of 1993 would have increased 2.2 percent, and publishing and broadcasting expenses would have increased 3.5 percent and 0.8 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 $2.7 million from $4.1 million in the prior year, which included approximately $1.5 million for the feature-film write-off.
 Founded in St. Louis in 1878, Pulitzer Publishing Company 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 nine 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.; WESH in Daytona Beach (Orlando ADI), Fl.; and KCCI in Des Moines, Ia; 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)
 Third Quarter Ended Three Quarters Ended
 Sept. 30 Sept. 30 Sept. 30 Sept. 30
 1993 1992 1993 1992
 (Unaudited) (Unaudited)


OPERATING REVENUES--NET:

Publishing:
 Advertising $ 41,718 $ 42,339 $122,984 $126,373
 Circulation 19,355 19,150 58,963 58,129
 Other 10,242 8,917 30,609 26,670
 Broadcasting 35,518 27,028 92,197 80,835
 Total operating
 revenues 106,833 97,434 304,753 292,007


OPERATING EXPENSES:
 Publishing operations 32,114 30,995 94,963 92,904
 Broadcasting operations 14,700 11,534 36,989 33,756


Selling, general and
 administrative 41,690 40,416 119,097 120,336


St. Louis Agency
 adjustment 2,145 2,922 7,182 8,482


Depreciation and
 amortization 7,394 4,684 16,025 14,099
 Total operating
 expenses 98,043 90,551 274,256 269,577
 Operating Income 8,790 6,883 30,497 22,430
 Interest income 238 283 775 852
 Interest expense (3,224) (1,853) (6,444) (5,955)
 Net other (expense) (293) (192) (819) (585)
 Total (3,279) (1,762) (6,488) (5,688)


INCOME BEFORE PROVISION
 FOR INCOME TAXES 5,511 5,121 24,009 16,742


PROVISION FOR INCOME
 TAXES 2,216 1,132 9,528 2,683


INCOME BEFORE CUMULATIVE
 EFFECT OF CHANGE IN
 ACCOUNTING PRINCIPLES 3,295 3,989 14,481 14,059


CUMULATIVE EFFECT OF CHANGE
 IN ACCOUNTING PRINCIPLES,
 NET OF APPLICABLE INCOME
 TAXES 0 0 360 ( 25,147)
 NET INCOME (LOSS) $ 3,295 $ 3,989 $ 14,841 ($11,088)


PULITZER PUBLISHING COMPANY AND SUBSIDIARIES

STATEMENTS OF CONSOLIDATED INCOME (Continued)

(In thousands, except earnings per share data)
 Third Quarter Ended Three Quarters Ended
 Sept. 30 Sept. 30 Sept. 30 Sept. 30
 1993 1992 1993 1992
 (Unaudited) (Unaudited)


EARNINGS PER SHARE OF STOCK

(COMMON AND CLASS B COMMON)

Income before cumulative

effect of change in
 accounting principles $.25 $.35 $1.21 $1.22


Cumulative effect of change
 in accounting principles .00 .00 .03 (2.18)
 Total $.25 $.35 $1.2 ($.96)


WEIGHTED AVERAGE NUMBER OF SHARES

(COMMON AND CLASS B COMMON STOCK)
 OUTSTANDING 12,952 11,540 11,999 11,533


NOTES

TV Acquisitions: The 1993 third quarter and three quarters

year-to-date included the operations of WESH (Daytona Beach

Orlando Melbourne, Florida market) following its acquisition on June

30, 1993 and KCCI-TV (Des Moines, Iowa) following its acquisition on

September 9, 1993. The third quarter of 1993 included $3 million of

depreciation and amortization and $1.8 million of interest charges

related to these acquisitions which had a $1 million negative effect

on earnings for the quarter.

Lerner Closedown/Sale on October 13, 1992: The third quarter of

1992 included operating expenses of $1.6 million (pretax) for

severance and other charges related to the closedown and sale of

certain assets of Lerner Newspapers in Chicago and associated tax

benefits of $1.7 million, principally due to a tax write-off of

intangible assets.

Film Write-off: The three quarters of 1992 included the write-off

of $1.5 million (pretax) related to the production of a feature film.

Tax Settlement: The three quarters of 1992 included a positive

adjustment to income of $3.4 million following the favorable

settlement of federal tax examinations for the years 1985 through

1987.

SFAS 109: The three quarters of 1993 included a positive adjustment

to income of $360,000, or $0.03 per share, reflecting a change in

the deferred tax rate due to the adoption in the first quarter of

1993 of Financial Accounting Standard 109, "Accounting for Income

Taxes."

SFAS 106: Net income for the three 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 three quarters net income by the total of the

cumulative effect adjustment of $25.1 million, or $2.18 per share.

The third quarter and three quarters of 1992 were also decreased for

the incremental increase in quarterly net periodic postretirement

expense of $347,000 and $1 million (after agency adjustment and

income taxes), or $0.03 and $0.09 per share, respectively.

Tax Rate Change: A negative adjustment was made to the

third-quarter 1993 income tax provision retroactive to the beginning

of the year as a result of the new Revenue Reconciliation Act of

1993. In addition, a positive adjustment was made to the 1993 tax

provision to record the Company's net deferred tax asset under the

new tax legislation. These two adjustments were similar in amount,

resulting in no significant income statement impact for the quarter

and year-to-date.

Shares Outstanding: 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. On July 9, 1993 the Company issued

1.35 million shares of common stock in a public offering.

PULITZER PUBLISHING COMPANY AND SUBSIDIARIES

BUSINESS SEGMENTS

(In thousands)
 Third Quarter Ended Three Quarters Ended
 Sept. 30 Sept. 30 Sept. 30 Sept. 30
 1993 1992 1993 1992
 (Unaudited) (Unaudited)


Operating Revenues:
 Publishing $ 71,315 $ 70,406 $212,556 $211,172
 Broadcasting 35,518 27,028 92,197 80,835
 Total $ 106,833 $ 97,434 $ 304,753 $292,007


Operating Income:
 Publishing (a) $ 4,889 $ 3,099 $ 16,001 $ 12,166
 Broadcasting 4,798 4,676 17,185 14,372
 Corporate (b) (897) (892) (2,689) (4,108)
 Total $ 8,790 $ 6,883 $ 30,497 $ 22,430


Depreciation and Amortization:
 Publishing $ 1,807 $ 2,030 $ 5,235 $ 6,110
 Broadcasting 5,587 2,654 10,790 7,989
 Total $ 7,394 $ 4,684 $ 16,025 $ 14,099


Operating margins (Operating
 income to revenues)
 Publishing (c) 9.9% 8.6% 10.9% 9.8%
 Broadcasting 13.5% 17.3% 18.6% 17.8%


(a) 1992 included approximately $1.6 million in severance and other charges related to the closedown and sale of certain assets of Lerner Newspapers in Chicago.

(b) 1992 included approximately $1.5 million for write-off of feature film.

(c) Operating margins for publishing stated with St. Louis Agency adjustment added back to publishing operating income.

PULITZER PUBLISHING COMPANY AND SUBSIDIARIES SCHEDULE OF NON-RECURRING ITEMS AND EFFECT OF TELEVISION ACQUISITIONS (In thousands, except per share data)
 Third Quarter Ended
 September 30, 1993 September 30, 1992
 Net Income EPS Net Income EPS


WESH/KCCI Acquisitions
 Effect ($ 1,043) ($.08)
Lerner Closedown/Sale $ 147 $.01


Lerner Exclusive of
 Closedown/Sale (242) (.02)
 Subtotal ($ 1,043) ($.08) ($ 95) ($.01)


Net Income Excluding Non-Recurring
 Items and Effect of TV
 Acquisitions 4,338 .33 4,084 .36
 Net Income $ 3,295 $ .25 $ 3,989 $.35
 Shares Outstanding 12,952 11,540
 Three Quarters Ended
 September 30, 1993 September 30, 1992
 Net Income EPS Net Income EPS


WESH/KCCI Acquisitions
 Effect (1.043) (.08)
 Lerner Closedown/Sale 147 .01


Lerner Exclusive of
 Closedown/Sale (628) (.05)
Film Write-Off (883) (.07)
 Tax Settlement 1985/86/87 3,400 .29
 SFAS 109 One-Time Credit $ 360 $.03
 SFAS 106 One-Time Charge ($25,147) ($2.18)
 Subtotal ($ 683) ($.05) ($23,111) ($2.00)


Net Income Excluding Non-Recurring
 Items and Effect of TV
 Acquisitions 15,524 1.29 12,023 1.04
 Net Income (Loss) $ 14,841 $1.24 ($11,088) ($.96)
Shares Outstanding 11,999 11,533
 SEE NOTES ON STATEMENTS OF CONSOLIDATED INCOME.
 -0- 10/19/93
 /CONTACT: James V. Maloney, director of shareholder relations, Pulitzer Publishing Company, at (314) 340-8402/
 (PTZ)


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

DH -- NY039 -- 3883 10/19/93 10:53 EDT
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