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THE WASHINGTON POST COMPANY REPORTS EARNINGS

 WASHINGTON, Oct. 26 /PRNewswire/ -- The Washington Post Company (NYSE: WPO) today reported net income of $44.8 million ($3.82 per share) for the third quarter of 1993, compared with net income of $27.5 million ($2.33 per share) for the third quarter of 1992. Net income and earnings per share increased 63 percent and 64 percent, respectively, compared with the third quarter of 1992.
 The 1993 third quarter results include an after-tax gain ($1.14 per share) on the previously announced sale of the company's cable franchises in the United Kingdom, completed on Sept. 8, 1993. Excluding the gain, net income and earnings per share rose 14 percent and 15 percent, respectively.
 Improvement at the company's broadcast and cable divisions was the major factor in the increase in the third quarter.
 Revenue for the third quarter of 1993 was $364.1 million, up 4 percent from revenue of $351.0 million in the third quarter of 1992.
 Operating income in the third quarter rose 9 percent to $55.0 million, from $50.4 million in the same period last year.
 For the first nine months of 1993, the company's net income was $122.9 million ($10.45 per share), compared with net income of $93.0 million ($7.86 per share) in the same period of 1992. Net income and earnings per share for the first three quarters of 1993 rose 32 percent and 33 percent, respectively. In addition to the gain mentioned previously, results for the first nine months of 1993 included a one-time credit of $11.6 million (98 cents per share) resulting from the adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (SFAS No. 109), which requires the company to adjust its deferred income tax balances using current tax rates. Excluding these two credits, net income and earnings per share in the first three quarters of 1993 increased 5 percent and 6 percent, respectively.
 Revenue for the first nine months of 1993 rose 4 percent to $1,102.5 million, compared with $1,057.0 million in the first three quarters of 1992.
 Newspaper division revenue increased 3 percent in the third quarter and 4 percent in the first nine months of 1993. Advertising volume at The Washington Post totaled 795,400 inches in the third quarter of 1993, down slightly from 798,100 inches in the third quarter of 1992. Post advertising linage declined 1 percent in the first nine months of 1993 to 2,484,100 inches, from 2,499,300 inches in the first three quarters of 1992. For the first nine months of 1993, daily circulation at The Post was up 1 percent over the same period last year, while Sunday circulation fell slightly.
 Revenue at the broadcast division increased 10 percent in the third quarter and 8 percent in the first nine months of 1993.
 Cable division revenue increased 6 percent in the third quarter of 1993 and 9 percent in the first nine months (7 percent in the third quarter and 8 percent in the first three quarters, excluding operations in the United Kingdom).
 Newsweek revenue decreased 7.5 percent in the third quarter and 4.5 percent in the first three quarters of the year.
 Revenue from other businesses, principally Stanley H. Kaplan Educational Center, Pro Am Sports System (PASS) and Legi-Slate, rose 22 percent in the third quarter and 25 percent in the first nine months. Revenue from PASS, which was acquired at the end of 1992, was the major contributor to the increase.
 The company's equity in earnings of affiliates in the third quarter was a small loss of less than $.1 million (a loss of $2.4 million in the nine-month period), compared with a loss of $2.4 million in the third quarter (a loss of $9.0 million in the nine-month period) last year. Better results at the company's newsprint affiliates were the major factor contributing to the improvement in 1993.
 In the third quarter of 1993 the company adjusted the provision for income taxes to reflect the increase in the federal income tax rate, which was retroactive to the beginning of the year. Offsetting the impact of this rate increase was the lower effective rate for foreign taxes recorded on the sale of the company's cable operations in the United Kingdom.
 THE WASHINGTON POST COMPANY
 Consolidated Statements of Income
 (Unaudited)
 (In thousands, except per share amounts)
 Third Quarter 39 Weeks
 1993 1992 1993 1992
 Operating revenues $ 364,122 $ 351,021 $1,102,533 $1,057,025
 Costs and expenses (309,108) (300,620) (933,727) (887,776)
 Income from operations 55,014 50,401 168,806 169,249
 Interest income 2,653 2,944 7,747 8,794
 Interest expense (1,029) (1,671) (3,460) (4,986)
 Equity in losses of
 affiliates (11) (2,411) (2,397) (8,968)
 Other income
 (expense), net 19,266 (66) 19,853 (85)
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 75,893 49,197 190,549 164,004
 Provision for income
 taxes (31,050) (21,650) (79,210) (71,025)
 Income before cumulative
 effect of change in
 accounting principle 44,843 27,547 111,339 92,979
 Cumulative effect of
 change in method of
 accounting for income
 taxes -- -- 11,600 --
 Net income $ 44,843 $ 27,547 $ 122,939 $ 92,979
 Earnings per share:
 Before cumulative
 effect of change in
 accounting principle $3.82 $2.33 $ 9.47 $7.86
 Net income $3.82 $2.33 $10.45 $7.86
 Average shares
 outstanding 11,731 11,835 11,760 11,835
 -0- 10/26/93
 /CONTACT: John B. Morse Jr. of the Washington Post Company, 202-334-6662/
 (WPO)


CO: Washington Post Company ST: District of Columbia IN: PUB SU: ERN

MH-DC -- DC016 -- 6859 10/26/93 11:33 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
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