Printer Friendly

WASHINGTON POST COMPANY REPORTS FOURTH QUARTER AND YEAR END RESULTS

WASHINGTON POST COMPANY REPORTS FOURTH QUARTER AND YEAR END RESULTS
 WASHINGTON, Feb. 4 /PRNewswire/ -- The Washington Post Company (NYSE: WPO) today reported net income of $70.8 million ($5.96 per share) for 1991, a decrease of 59.4 percent from net income of $174.6 million ($14.45 per share) in 1990.
 The company's 1991 earning include a one-time, after-tax charge of $47.9 million ($4.04 per share) resulting from the adoption, effective at the beginning of the year, of Statement of Financial Accounting Standards No. 106, "Employers Accounting for Postretirement Benefits Other Than Pensions" (SFAS No. 106). This charge represents the cumulative effect on prior periods resulting from adopting SFAS No. 106. Excluding this one-time charge, the company's net income for 1991 would have decreased 32 percent to $118.7 million ($10 per share).
 Net income in 1991 also includes a credit of $10 million (84 cents per share) resulting from a favorable settlement with the Internal Revenue Service, and, as previously reported, an after-tax charge of $3.5 million (30 cents per share) for severance and related costs associated with a voluntary reduction in staff at The Washington Post newspaper.
 Revenue for 1991 totaled $1,380 million, down 4.1 percent from $1,439 million in 1990. Operating expenses for the year increased 2.6 percent to $1,187 million, from $1,157 million in 1990. This year's operating expenses included a current pre-tax charge of $7.1 million related to the adoption of SFAS No. 106.
 For the fourth quarter of 1991, the company's net income rose 11.6 percent to $47.0 million ($3.96 per share), from $42.1 million ($3.55 per share) in 1990. Fourth quarter 1991 results included the effects (84 cents per share) of the favorable IRS settlement. Excluding this credit, fourth-quarter net income fell 12.1 percent to $37 million ($3.12 per share). The company's fourth-quarter operating revenue of $366.6 million was down by less than 1 percent from $369.4 million in the comparable period last year.
 Throughout 1991 the recession continued to have an adverse effect on the results of the company, especially at those businesses dependent upon advertising.
 Newspaper division operating income in 1991 decreased 37.8 percent to $89.5 million, from $143.8 million in 1990. Division revenue totaled $642.7 million in 1991, a decline of 7 percent from revenue of $691.0 million in 1990.
 Total advertising volume at The Washington Post fell 13.4 percent to 3,570,600 inches, from 4,125,400 inches the previous year. Post advertising revenue was down 9.7 percent to $484.1 million, from $535.9 million in 1990. Both daily and Sunday circulation at The Post increased 1 percent over 1990 levels.
 For the fourth quarter of 1991, newspaper division revenue was essentially even with last year. Washington Post advertising inches declined 3.8 percent to 948,500 inches, from 986,300 inches in the fourth quarter of 1990.
 Broadcast division operating income in 1991 was $49.1 million, down 28.8 percent from $68.9 million in 1990. Division revenue for the year fell 8.9 percent to $163.5 million, from $179.4 million in 1990. For the 1991 fourth quarter, broadcast division revenue decreased 5.8 percent.
 Cable division operating income in 1991 totaled $35.0 million, a 20.1 percent increase over $29.2 million in 1990. Domestic cable cash flow in 1991 was $75.3 million, up 11.6 percent from $67.4 million the previous year. Revenue for 1991 was $159.5 million, an increase of 9.6 percent over revenue of $145.5 million in 1990. In the fourth quarter, cable revenue rose 6.8 percent from the comparable 1990 period.
 Newsweek's operating income in 1991 decreased 66.2 percent to $9.1 million, from $26.9 million in 1990. Revenue totaled $326.5 million in 1991, a decline of 4 percent from $340.2 million in 1990. For the fourth quarter of 1991, Newsweek revenue decreased 3.1 percent. Newsweek's average paid circulation rose 3 percent in 1991 to 3,319,000.
 Other businesses, including Stanley H. Kaplan Educational Center, Legi-Slate and American Personal Communications, recorded operating income of $10.2 million in 1991, a decrease of 21.9 percent from operating income of $13.1 million in 1990. Total revenue from other businesses rose 6.7 percent to $88.1 million, compared with $82.6 million in 1990. For the 1991 fourth quarter, revenue from these businesses was even with the comparable 1990 period.
 The company's equity in earnings of affiliates for 1991 was a loss of $1.9 million, compared with earnings of $6.2 million in 1990. In 1990 affiliate results reflected higher earnings from Cowles Media Company, which included gains on the sales of two small newspapers. In the fourth quarter of 1991, the company recorded a loss of $.5 million in its share of the equity in earnings affiliates, compared with earnings of $.6 million in 1990. Continued weakness at The company's newsprint manufacturing affiliates contributed to the loss.
 Net interest expense totaled $.4 million in 1991, compared with net interest income of $4.7 million in 1990. In the fourth quarter of 1991, net interest expense was $2.8 million, compared with net interest income of $1.8 million last year. Interest expense in the fourth quarter of 1991 included a fee of $2.1 million related to the prepayment of the company's $50 million, 10.68 percent unsecured promissory notes.
 During 1991 the company repurchased 42,900 shares of its Class B common stock at a cost of $7.4 million.
 THE WASHINGTON POST COMPANY
 Consolidated Statements of Income
 (In thousands, except per share amounts)
 Fourth Quarter Fiscal Year
 1991(A) 1990 1991 1990
 Operating revenues $ 366,553 $ 369,399 $ 1,380,261 $ 1,438,640
 Costs and expenses (299,422) (300,310) (1,187,395) (1,156,872)
 Income from
 operations 67,131 69,089 192,866 281,768
 Interest income 4,410 5,207 17,382 21,342
 Interest expense (7,254) (3,438) (17,759) (16,653)
 Equity in earnings of
 affiliates (457) 566 (1,856) 6,235
 Other (expense), net (606) (837) (412) (1,266)
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 63,224 70,587 190,221 291,426
 Provision for income
 taxes (16,255) (28,500) (71,500) (116,850)
 Income before
 cumulative effect
 of change in
 accounting principle 46,969 42,087 118,721 174,576
 Cumulative effect of
 change in method of
 accounting for post-
 retirement health
 care benefits (net
 of tax) -- -- (47,897) --
 Net income $ 46,969 $ 42,087 $ 70,824 $174,576
 Earnings per share:
 -- Before cumulative
 effect of change
 in accounting
 principle $3.96 $3.55 $10.00 $14.45
 -- Net income $3.96 $3.55 $5.96 $14.45
 Average shares
 outstanding 11,869 11,871 11,876 12,081
 (A) Fourth quarter earnings are presented as if SFAS No. 106 had been in effect for the full year ended Dec. 29, 1991. Prior quarters have been restated per following schedule.
 Restatement of 1991 Earnings
 (In thousands, except per share amounts)
 First Second Third
 Quarter Quarter Quarter
 Net income as originally
 reported $ 13,604 $ 35,071 $ 26,121
 Effect of adopting change
 in method of accounting
 for post-retirement
 benefits (1,060) (1,044) (940)
 Income before cumulative
 effect of change in
 accounting principle 12,544 34,027 25,181
 Cumulative effect on prior
 years of changing method of
 accounting for post-retirement
 benefits (net of tax) (47,897) -- --
 Net income as restated $(35,353) $ 34,027 $ 25,181
 Per share amounts:
 Net income as originally
 reported $ 1.15 $ 2.95 $ 2.20
 Effect of adopting change
 in method of accounting
 for post-retirement
 benefits (0.09) (0.09) (0.08)
 Income before cumulative
 effect of change in
 accounting principle 1.06 2.86 2.12
 Cumulative effect on
 prior years of changing
 method of accounting for
 post-retirement benefits (4.04) -- --
 Net income as restated $(2.98) $ 2.86 $ 2.12
 Lines of Business
 (in thousands)
 1991 1990
 Revenue
 Newspaper Division $ 642,694 $ 690,997
 Broadcast Division 163,471 179,385
 Cable Division 159,503 145,473
 Newsweek 326,475 340,177
 Other Businesses 88,118 82,608
 Total $1,380,261 $1,438,640
 Operating Income
 Newspaper Division $ 89,488 $ 143,758
 Broadcast Division 49,074 68,923
 Cable Division 35,011 29,157
 Newsweek 9,085 26,865
 Other Businesses 10,208 13,065
 Total $ 192,866 $ 281,768
 -0- 2/4/92
 /CONTACT: Guyon Knight of The Washington Post Company, 202-334-6642/
 (WPO) CO: The Washington Post Company ST: District of Columbia IN: PUB SU: ERN


MK-TW -- DC024 -- 6713 02/04/92 12:47 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 4, 1992
Words:1466
Previous Article:CENTOCOR ACQUIRES MERCIA DIAGNOSTICS
Next Article:GAS PRICE LOWEST SINCE MID-1990, AAA REPORT SHOWS
Topics:


Related Articles
WASHINGTON WATER POWER'S FOURTH-QUARTER, YEAR-END EARNINGS IMPROVE, INCREASE IN SPITE OF WEATHER-RELATED IMPACTS
THE WASHINGTON POST COMPANY REPORTS FIRST QUARTER EARNINGS
STRUCTURAL INSTRUMENTATION REPORTS YEAR END AND FOURTH QUARTER RESULTS
DANAHER CORPORATION REPORTS FOURTH QUARTER AND 1993 RESULTS
THE WASHINGTON POST COMPANY REPORTS 1993 RESULTS
WASHINGTON POST REPORTS FOURTH QUARTER AND FULL YEAR RESULTS
THE WASHINGTON POST COMPANY REPORTS NET INCOME FOR 1995
POST CO. LEARNS THAT EDUCATION IS PROFITABLE Kaplan division revenue grows 35% in 2004; net income up 38%.
The Washington Post Company Reports 2003 Fourth Quarter and Year-End Earnings.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters