QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

12 Months Ended

Dec. 30, 2012

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

11.  QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

Our business is somewhat seasonal with peak revenues and profits generally occurring in the second and fourth quarters of each year as a result of increased advertising activity during the holiday seasons. The first and third quarters are historically the slowest quarters for revenues and profits. Our quarterly results are summarized as follows:

	Quarters Ended
(in thousands, except per share amounts)	March 25, 2012	June 24, 2012	September 23, 2012	December 30, 2012
Net Revenues (1)	$306,689	$320,126	$306,332	$376,492
Operating income	$27,975	$42,935	$32,479	$82,747
Net income (loss)	$(2,087)	$26,865	$5,093	$(30,015)
Net income (loss) per share	$(0.02)	$0.31	$0.06	$(0.35)

	Quarters Ended
(in thousands, except per share amounts)	March 27, 2011	June 26, 2011	September 25, 2011	December 25, 2011
Net Revenues (1)	$322,734	$336,734	$320,527	$371,860
Operating income	$20,455	$45,133	$45,443	$90,284
Net income (loss)	$(1,962)	$4,947	$9,399	$42,005
Net income (loss) per share	$(0.02)	$0.06	$0.11	$0.49

(1)       Certain amounts in circulation revenues have been corrected as discussed in Note 1 to the Consolidated Financial Statements.

The following are significant activities in fiscal year 2012:

· During the quarter ended March 25, 2012, we incurred a gain on extinguishment of debt totaling $4.4 million related to bonds that were repurchased in the open market.

· During the quarter ended June 24, 2012, we had a reversal of non-cash interest expense totaling $7.8 million related to the release of tax reserves. In addition, we had a favorable adjustment to net income totaling $7.0 million for a tax settlement related to state tax positions previously taken.

· As discussed in Note 1, our fiscal year 2012 reporting period is a 53-week year versus a 52-week year in 2011, and as a result, the quarter ended December 30, 2012 includes 14 weeks compared to 13 weeks in the quarter ended December 25, 2011. Also, during the quarter ended December 31, 2012, in connection with our refinance of our 11.50% Notes, as described in Note 5, we recognized $94.5 million as a loss on extinguishment of debt.

The following are significant activities in fiscal year 2011:

· In the quarter ended March 27, 2011, we incurred impairment charges of approximately $10.3 million, which were recorded to other operating expenses related to the value of the real estate assets sold for less than carrying value. We also incurred severance charges totaling $4.5 million related to restructuring of our newspaper operations. These amounts were partially offset by a favorable tax settlement for $9.9 million related to state tax positions previously taken. A tax benefit of $7.6 million was recognized and the related interest expense was reduced by $3.7 million.

· In the quarter ended June 26, 2011, we incurred severance charges totaling $7.6 million related to restructuring of newspaper operations.