-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, t4Ao1/qK3rd0l/UA/ROhn15awom0pJKLL1Az1bEJtiC4I4d92iqNf1Q5dsEinnHV HOpMv5bUAdnR3dkuZ76qQw== 0000205520-94-000023.txt : 19940518 0000205520-94-000023.hdr.sgml : 19940518 ACCESSION NUMBER: 0000205520-94-000023 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940327 FILED AS OF DATE: 19940510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KNIGHT RIDDER INC CENTRAL INDEX KEY: 0000205520 STANDARD INDUSTRIAL CLASSIFICATION: 2711 IRS NUMBER: 380723657 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07553 FILM NUMBER: 94526837 BUSINESS ADDRESS: STREET 1: ONE HERALD PLZ CITY: MIAMI STATE: FL ZIP: 33132 BUSINESS PHONE: 3053763800 MAIL ADDRESS: STREET 1: ONE HERALD PLZ CITY: MIAMI STATE: FL ZIP: 33132 FORMER COMPANY: FORMER CONFORMED NAME: KNIGHT RIDDER NEWSPAPERS INC /FL/ DATE OF NAME CHANGE: 19860707 10-Q 1 1994 FIRST QUARTER 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR QUARTERLY PERIOD ENDED March 27, 1994 ------------------ COMMISSION FILE NUMBER 1-7553 ------ KNIGHT-RIDDER, INC. - - --------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) FLORIDA 38-0723657 - - -------------------------------------------------------------------------- (State of Incorporation) (I.R.S. Employer Identification No.) ONE HERALD PLAZA, MIAMI, FLORIDA 33132 ---------------------------------------- (Address of principal executive offices) (305) 376-3800 - - --------------------------------------------------------------------------- (Registrant's telephone number, including area code) NOT APPLICABLE - - ---------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes x No ----- ---- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Common Stock, $.02 1/12 Par Value - 54,244,074 shares as of May 1, 1994. -1- Table of Contents for 10-Q Page ---- PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Consolidated Statements of Income 3-4 Consolidated Balance Sheets 5-6 Consolidated Statements of Cash Flows 7-8 Notes to Consolidated Financial Statements 9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10-12 PART II. OTHER INFORMATION Item 4 - Submission of Matters to a Vote of Security Holders 13-14 Item 6 - Exhibits and Reports on 8-K 14 SIGNATURE 15 Exhibit 11 Statement Re: Computation of Per Share Earnings 16 Exhibit 28 Additional Exhibits 17-20 -2-
Consolidated Statement Of Income (Unaudited, in thousands of dollars, except per share data) Quarter Ended Four Quarters Ended ---------------------- ----------------------- March 27 March 28 March 27 March 28 1994 1993 1994 1993 ---------- ---------- ---------- ----------- OPERATING REVENUE Newspapers Advertising Retail $ 174,026 $ 169,717 $ 770,414 $ 762,307 General 47,081 42,915 172,939 173,279 Classified 145,412 135,201 556,964 522,368 ---------- ---------- ---------- ----------- Total 366,519 347,833 1,500,317 1,457,954 Circulation 120,724 116,983 478,161 461,762 Other 14,627 13,002 58,397 43,194 ---------- ---------- ---------- ----------- Total Newspapers 501,870 477,818 2,036,875 1,962,910 Business Information Services 128,993 106,076 461,442 395,075 ---------- ---------- ---------- ----------- Total Operating Revenue 630,863 583,894 2,498,317 2,357,985 ---------- ---------- ---------- ----------- OPERATING COSTS Labor and employee benefits 268,395 253,376 1,039,200 1,004,286 Newsprint, ink and supplements 79,394 80,058 334,379 315,205 Other operating costs 181,118 162,896 683,731 627,424 Depreciation and amortization 37,146 33,884 145,020 129,239 ---------- ---------- ---------- ----------- Total Operating Costs 566,053 530,214 2,202,330 2,076,154 ---------- ---------- ---------- ----------- OPERATING INCOME 64,810 53,680 295,987 281,831 ---------- ---------- ---------- ----------- -3- OTHER INCOME (EXPENSE) Interest expense (10,522) (13,195) (42,439) (51,417) Interest expense capitalized 56 5 171 8,074 Interest income 1,265 1,754 5,223 5,407 Other, net (3,947) (3,273) (2,850) (8,076) ---------- ---------- ---------- ----------- Total (13,148) (14,709) (39,895) (46,012) ---------- ---------- ---------- ----------- Income before income taxes 51,662 38,971 256,092 235,819 Income taxes 21,290 15,835 100,767 91,603 ---------- ---------- ---------- ----------- Net income $ 30,372 $ 23,136 $ 155,325 $ 144,216 ========== ========== ========== =========== EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE $ 0.55 $ 0.42 $ 2.81 $ 2.60 ========== ========== ========== =========== DIVIDENDS DECLARED $ 0.35 $ 0.35 $ 1.40 $ 1.40 PER COMMON SHARE ========== ========== ========== =========== AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (000s) 55,233 55,747 55,203 55,453 ========== ========== ========== =========== See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 19.
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Consolidated Balance Sheet (Unaudited, in thousands of dollars, except share data) March 27 December 26 March 28 1994 1993 1993 ---------- ------------ ---------- Assets CURRENT ASSETS Cash, including short-term cash investments of $1,987 in 1994, $7,638 in December 1993 and $20,094 in March 1993 $ 20,225 $ 23,012 $ 32,348 Accounts receivable, net of allowances of $14,977 in 1994, $14,554 in December 1993 and $14,970 in March 1993 274,032 274,391 252,193 Inventories 38,042 41,422 45,824 Other current assets 73,851 62,491 86,285 ---------- ------------ ---------- Total Current Assets 406,150 401,316 416,650 ---------- ------------ ---------- INVESTMENTS AND OTHER ASSETS Equity in unconsolidated companies and joint ventures 285,843 289,986 277,598 Other 181,547 175,058 159,774 ---------- ------------ ---------- Total Investments and Other Assets 467,390 465,044 437,372 ---------- ------------ ---------- PROPERTY, PLANT AND EQUIPMENT Land and improvements 66,908 66,885 65,718 Buildings and improvements 377,934 379,556 379,785 Equipment 1,179,650 1,168,054 1,067,318 Construction and equipment installations in progress 12,010 13,100 92,821 ---------- ------------ ---------- 1,636,502 1,627,595 1,605,642 Less accumulated depreciation 785,010 766,474 716,590 ---------- ------------ ---------- Net Property, Plant and Equipment 851,492 861,121 889,052 ---------- ------------ ---------- EXCESS OF COST OVER NET ASSETS ACQUIRED Less accumulated amortization of $165,911 in 1994, $160,545 in December 1993 and $145,601 in March 1993 721,047 703,951 708,930 ---------- ------------ ---------- TOTAL $2,446,079 $2,431,432 $2,452,004 ========== ============ ========== -5- Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable $ 122,479 $ 124,620 $ 130,911 Accrued expenses and other liabilities 88,708 82,149 84,216 Accrued compensation and amounts withheld from employees 74,181 79,736 74,341 Federal and state income taxes 8,023 10 6,329 Deferred revenue 62,053 60,095 55,610 Dividends payable 19,107 19,199 19,326 Short-term borrowings and current portion of long-term debt 25,000 40,687 57,629 ---------- ------------ ---------- Total Current Liabilities 399,551 406,496 428,362 ---------- ------------ ---------- NON-CURRENT LIABILITIES Long-term debt 431,690 410,388 456,075 Deferred federal and state income taxes 139,764 135,979 113,168 Postretirement benefits other than pensions 169,209 174,331 174,532 Employment benefits and other non-current liabilities 65,335 57,816 79,393 ---------- ------------ ---------- Total Non-Current Liabilities 805,998 778,514 823,168 ---------- ------------ ---------- MINORITY INTERESTS 2,034 3,253 2,571 ---------- ------------ ---------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common Stock, $.02 1/12 par value; shares authorized - 250,000,000; shares issued - 54,608,949 in 1994, 54,847,486 in December 1993 and 55,216,920 in March 1993 1,138 1,143 1,150 Additional capital 340,584 342,201 333,310 Retained earnings 896,774 899,825 863,443 ---------- ------------ ---------- Total Shareholders' Equity 1,238,496 1,243,169 1,197,903 ---------- ------------ ---------- TOTAL $2,446,079 $2,431,432 $2,452,004 ========== ============ ========== See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 19.
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Consolidated Statement of Cash Flows (Unaudited, in thousands of dollars) Quarter Ended Four Quarters Ended March 27 March 28 March 27 March 28 1994 1993 1994 1993 ---------- --------- ---------- ---------- CASH PROVIDED BY(REQUIRED FOR)OPERATING ACTIVITIES Net income $ 30,372 $ 23,136 $ 155,325 $ 144,216 Non-cash items included in income Depreciation 26,624 25,063 105,875 94,645 Amortization of excess of cost over net assets acquired 5,366 4,810 20,310 18,981 Amortization of other assets 5,156 4,011 18,835 15,613 Provision for non-current deferred taxes 3,785 (1,031) 26,596 17,745 Distributions from investees in excess of (less than) earnings 3,064 (3,017) (16,721) (10,784) Other items, net 9,235 8,823 29,996 29,864 Change in certain assets and liabilities: Accounts receivable 2,430 18,132 (19,079) (7,728) Inventories 3,380 (8,327) 7,906 (7,641) Other current assets (11,664) (22,737) 14,159 (16,551) Accounts payable (2,460) 11,191 (6,454) 38,535 Federal and state income taxes 8,013 5,043 6,512 (2,831) Other current liabilities (344) 3,229 1,374 20,324 ---------- --------- ---------- ---------- Net cash provided by operating activities 82,957 68,326 344,634 334,388 ---------- --------- ---------- ---------- CASH REQUIRED FOR INVESTING ACTIVITIES Additions to property, plant and equipment (14,172) (24,402) (59,311) (87,459) Other items, net (34,306) (41,843) (73,509) (115,680) ---------- --------- ---------- ---------- Net cash required for investing activities (48,478) (66,245) (132,820) (203,139) ---------- --------- ---------- ---------- -7- CASH PROVIDED BY (REQUIRED FOR) FINANCING ACTIVITIES Proceeds from sale of commercial paper and bank borrowings 130,958 57,345 381,596 186,240 Reduction of total debt (125,343) (103,886) (438,610) (234,865) ---------- --------- ---------- ---------- Net change in total debt 5,615 (46,541) (57,014) (48,625) Payment of cash dividends (19,197) (19,238) (76,746) (76,480) Sale of common stock to employees 9,182 12,281 27,610 49,691 Purchase of treasury stock and stock tendered under stock option plans (25,122) (65,815) Other items, net (7,744) (13,339) (51,972) (39,978) ---------- --------- ---------- ---------- Net cash required for financing activities (37,266) (66,837) (223,937) (115,392) ---------- --------- ---------- ---------- Net Increase (Decrease) in Cash (2,787) (64,756) (12,123) 15,857 Cash and short-term cash investments at beginning of the period 23,012 97,104 32,348 16,491 ---------- --------- ---------- ---------- Cash and short-term cash investments at end of the period $ 20,225 $ 32,348 $ 20,225 $ 32,348 ========== ========= ========== ========== Working capital at end of period $ 6,599 $ (11,712)$ 6,599 $ (11,712) ========== ========= ========== ========== See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 19.
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Notes to Consolidated Financial Statements (Unaudited) Note 1 - Debt (In thousands of dollars) Effective Interest Balance at Rate at ---------------------------------- March 27 March 27 December 26 March 28 1994 1994 1993 1993 --------- ---------- --------- --------- Commercial paper, net of discount 3.6 % $100,206 $ 53,985 $ 14,989 Notes payable, net of discount (a) 8.6 158,974 198,930 298,463 Debentures, net of discount (b) 10.0 197,510 197,472 197,348 Other indebtedness 688 2,904 ---------- --------- --------- Total debt (c) 8.1 456,690 451,075 513,704 Less amounts classified as current 3.6 25,000 40,687 57,629 ---------- --------- --------- Total long-term debt 8.4 % $431,690 $410,388 $456,075 ========== ========= ========= (a) Represents $160 million of 8 1/2% Notes subject to mandatory pro rata amortization of 25% annually commencing 1998 through maturity in 2001, $100 million of 8% Notes payable in 1996 but called on April 15, 1993 and a $40 million 9.05% Note which matured and was redeemed on January 15, 1994. (b) Represents $200 million of 20-year 9 7/8% debentures due in 2009. (c) At March 27, 1994 and March 28, 1993, interest payments of $9.7 million and $13.9 million had been made for the year-to-date, respectively. Note 2 - Income Tax Expense Income tax payments for the quarters ended March 27, 1994 and March 28, 1993, were $2.3 million and $11.3 million, respectively.
-9- Management's Discussion and Analysis of the First Quarter First Quarter 1994 Compared With First Quarter 1993 Earnings per share for the first quarter of 1994 were $.55 per share, up $.13, or 31.0%, from last year's $.42 per share. Net income of $30.4 million improved by $7.2 million, or 31.3% over last year. Operating income for the quarter increased by 20.7% to $64.8 million, on an 8.0% operating revenue improvement. Operating Revenue Advertising revenues increased 5.4% on a 1.8% increase in full-run ROP linage. Retail advertising revenue increased $4.3 million, or 2.5%, over last year on a 1.5% decline in full-run ROP linage. Retail advertising has remained soft, even as other advertising categories gain momentum. General advertising revenue improved by $4.2 million, or 9.7%, from last year on a 13.0% increase in full-run ROP linage. Classified advertising revenue increased by 7.6% from last year on a 4.3% full-run ROP linage increase. The employment category showed the largest gain, posting a 15.5% improvement, with classified automotive advertising up 6.4%. This is the eighth consecutive quarter of classified revenue year- over-year improvement. Circulation revenue increased $3.7 million, or 3.2%, due to a 4.5% increase in average rates, on a 1.3% decline in seven-day circulation. Other newspaper revenue increased $1.6 million, or 12.5%, as a result of continued efforts to augment traditional newspaper revenue with new related sources of revenue. Business Information Services (BIS) revenue increased $22.9 million, or 21.6%. Part of the revenue growth resulted from the March 1993 acquisition of Data-Star, the late 1993 acquisitions of Equinet and Dataline, the formation of a 1994 joint venture with Southam called Infomart Dialog and the January 1994 acquisition of Technimetrics. Excluding the first-time impact of these acquisitions, BIS revenue would have been up about 9.0% for the quarter. -10- Operating Costs Labor and employee benefit costs rose $15.0 million, or 5.9%, on a 3.5% increase in the average wage per employee and a 0.7% increase in the number of equivalent full-time employees. The increase in the employee base resulted from BIS expansion and acquisitions, and was partially offset by reductions in the Newspaper Division. Some benefit costs increased at a higher rate than the wage base. Newsprint, ink and supplements cost declined $664,000, or 0.8%, on an 2.2% decrease in average newsprint price and a 1.8% increase in newsprint consumed. Other operating costs rose $18.2 million, or 11.2%. About one-third of the increase resulted from royalty expense and exchange fee increases related to BIS revenue improvements. Depreciation and amortization expense increased $3.3 million, or 9.6%, primarily due to BIS expansion and acquisitions. Non-Operating Items and Income Taxes Interest expense, net of interest income and interest expense capitalized, decreased $2.2 million, or 19.5%, due to lower debt levels during the quarter and utilization of lower rate commercial paper debt upon the prepayment and maturity of certain fixed-rate debt. Also, the average debt balance for the quarter was down $76.7 million from the first quarter of last year. The effective tax rate was 41.2%, compared with 40.6% in the first quarter of 1993, primarily as a result of the tax increases passed by Congress mid-year 1993. Other In the first quarter of 1994, the company formally adopted Financial Accounting Standard (FAS) 112 - Employers' Accounting for Postemployment Benefits and FAS 115 - Accounting for Certain Investments in Debt and Equity Securities. The adoption of FAS 112 and FAS 115 did not have a material impact on the company's results of operations. -11- In January 1994, the company acquired the assets of Technimetrics, which publishes information documenting the holdings of major global investment firms. Results of operations for Technimetrics are included in the BIS Division. BIS results also include full first quarter operations of a newly formed joint venture between Dialog and the Canadian electronic publishing operation of Southam, Inc. In the second quarter, the Journal of Commerce (another BIS subsidiary) intends to form a joint venture partnership with Americas Systems, Inc., which specializes in the development of custom software solutions for the transportation industry. The joint venture, Transax Systems, is expected to be operational in the second quarter and will provide tariff filing and retrieval products. Outlook for the Remainder of the Year 1994 has started out with some positive indicators of recovery, and we have started to realize the expected transition cost reductions related to the new plant in Philadelphia. The BIS Division appears to be headed for another good year, and we expect to continue with a solid growth rate strengthened by our global acquisitions during the last year. If the economy remains healthy, we expect a year of very favorable earnings growth. However, our enthusiasm is tempered by recent interest rate increases and a sluggish recovery in the retail sector. Both factors affect the company's growth in the future. Liquidity Net cash provided by continuing operations improved to $83.0 million from $68.3 million in the first quarter of 1993. The increase resulted primarily from higher earnings. Cash and equivalents were down $2.8 million from year end and $12.1 million from March 28, 1993. Total debt increased $5.6 million during the quarter due to the acquisition of Technimetrics, and decreased $57.0 million from March 28, 1993. The long term debt-to-equity ratio was 34.9%, compared to 33.0% at year end, and 38.1% last March. The total-debt-to-total-capital ratio was 26.9%, compared with 26.6% at year end and 30.0% in March 1993. Approximately $400.0 million in aggregate unused credit lines remained at the end of the quarter. The ratio of current assets to current liabilities was 1.0:1 at March 27, 1994, December 26, 1993 and March 28, 1993. In January 1994, $40.0 million in 9.05% Notes payable matured. Proceeds from the sale of commercial paper were used to finance the reduction in Notes. The company entered into a modest share repurchase program in the first quarter, which is continuing. -12- PART II. OTHER INFORMATION OTHER INFORMATION ----------------- Items 1, 2, 3, 4(d) and 5 are omitted as inapplicable, not required, or because the information is included in the consolidated financial information. Item 4(a),(b), Submission of Matters to a Vote of Security Holders (c) --------------------------------------------------- The Company's Annual Meeting of Shareholders was held on May 4, 1994. The results of the voting with respect to matters presented at the Annual Meeting (other than the approval of auditors) were as follows: 47,942,508 shares of Common Stock voted for the election of Randall L. Tobias as a Director to the Board of Directors for a term ending in 1996, 290,411 shares withheld and -0- shares voted against; 47,932,280 shares of Common Stock voted for the re- election of Alvah H. Chapman, Jr. as a Director to the Board of Directors for a term ending in 1997, 300,639 shares withheld and -0- shares voted against; 47,937,356 shares of Common Stock voted for the re-election of Peter C. Goldmark, Jr. as a Director to the Board of Directors for a term ending in 1997, 295,563 shares withheld and -0- shares voted against; 47,941,893 shares of Common Stock voted for the re-election of Barbara B. Hauptfuhrer as a Director to the Board of Directors for a term ending in 1997, 291,026 shares withheld and -0- shares voted against; 47,942,581 shares of Common Stock voted for the re-election of William S. Lee as a Director to the Board of Directors for a term ending in 1997, 290,338 shares withheld and -0- shares voted against; 47,942,782 shares of Common Stock voted for the re-election of John L. Weinberg as a Director to the Board of Directors for a term ending in 1997, 290,137 shares withheld and -0- shares voted against; 47,944,729 shares of Common Stock voted for the re-election of Ben R. Morris as a Director to the Board of Directors for a term ending in 1995, 288,190 shares withheld and -0- shares voted against; 47,940,159 shares of Common Stock voted for the re-election of Eric Ridder as a Director to the Board of Directors for a term ending in 1995, 292,760 shares withheld and -0- shares voted against; -13- 42,532,316 shares of Common Stock voted against a shareholder proposal concerning the preparation of a report regarding cigarette advertising, 1,758,217 shares of Common Stock were voted in favor of the proposal and 1,722,976 shares abstained from voting on such amendment, 2,219,410 shares were broker non votes; 30,733,362 shares of Common Stock voted against a shareholder proposal concerning the annual election of directors, 15,021,368 shares of Common Stock were voted in favor of the proposal and 258,779 shares abstained from voting on such amendment, 2,219,410 shares were broker non votes; 43,293,212 shares of Common Stock voted against a shareholder proposal concerning a change in editorial policy regarding gun control and related issues, 675,955 shares of Common Stock were voted in favor of the proposal and 2,044,342 shares abstained from voting on such amendment; 2,219,410 shares were broker non votes. Item 6 Exhibits and Reports on Form 8-K -------------------------------- a. Exhibits Filed No. 11 - Statement Re: Computation of Per Share Earnings No. 28 - Additional Exhibits b. Reports on Form 8-K No reports were filed on Form 8-K during the quarter ended March 27, 1994. -14- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KNIGHT-RIDDER, INC. (Registrant) Date May 10, 1994 Tally Liu, Vice President/Finance & Controller (Chief Accounting Officer and Duly Authorized Officer of Registrant) -15- EX-11 2 1994 FIRST QUARTER DILUTIVE SHARE DATA EXHIBIT 11 -----------
COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT PER SHARE DATA) Quarter Ended --------------------- March 27 March 28 1994 1993 --------- --------- PRIMARY Average shares outstanding 54,752 55,103 Net effect of dilutive stock options - based on the Treasury Stock method using the average market price 481 644 --------- --------- TOTAL 55,233 55,747 ========= ========= Net Income $30,372 $23,136 ========= ========= Per Share amount from net income $0.55 $0.42 ========= ========= FULLY DILUTED Average shares outstanding 54,752 55,103 Net effect of dilutive options - based upon Treasury Stock method using the higher of quarter-end or average market price 572 643 --------- --------- TOTAL 55,324 55,746 ========= ========= Net Income $30,372 $23,136 ========= ========= Per Share amount from net income $0.55 $0.42 ========= =========
-16- EX-28 3 1994 FIRST QUARTER ADDITIONAL INFORMATION EXHIBIT 28 ----------
KNIGHT-RIDDER, INC. AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (Unaudited, in thousands of dollars) Quarter Ended Four Quarters Ended ------------------------- ------------------------ March 27 March 28 March 27 March 28 1994 1993 1994 1993 ----------- ------------ ----------- ----------- OPERATING REVENUE Newspapers $ 501,870 $ 477,818 $ 2,036,875 $ 1,962,910 Business Information Services 128,993 106,076 461,442 395,075 ----------- ------------ ----------- ----------- $ 630,863 $ 583,894 $ 2,498,317 $ 2,357,985 =========== ============ =========== =========== OPERATING INCOME Newspapers $ 68,086 $ 56,528 $ 310,325 $ 292,640 Business Information Services 7,537 5,616 25,326 23,061 Corporate (10,813) (8,464) (39,664) (33,870) ----------- ------------ ----------- ----------- $ 64,810 $ 53,680 $ 295,987 $ 281,831 =========== ============ =========== =========== DEPRECIATION AND AMORTIZATION Newspapers $ 23,941 $ 22,944 $ 95,597 $ 88,257 Business Information Services 12,782 10,541 47,766 39,386 Corporate 423 399 1,657 1,596 ----------- ------------ ----------- ----------- $ 37,146 $ 33,884 $ 145,020 $ 129,239 =========== ============ =========== ===========
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Knight-Ridder, Inc. First Quarter Graphs ======================= FIRST QUARTER NET INCOME FIRST QUARTER TOTAL OPERATING REVENUE (From continuing operations, in $000s) (From continuing operations, in $000s) Year Amount Year Amount --------- ----------- --------- --------- 1994 30,372 1994 630,863 1993 23,136 1993 583,894 1992 25,006 * 1992 555,438 1991 15,830 1991 545,441 1990 25,849 1990 554,915 1989 20,684 1989 540,744 FIRST QUARTER EARNINGS PER SHARE FIRST QUARTER NEWSPAPER ADVERTISING REVENUE (From continuing operations) (In $000s) Year Amount Year Amount --------- ----------- --------- --------- 1994 $0.55 1994 366,519 1993 $0.42 1993 347,833 1992 $0.46 * 1992 334,023 1991 $0.32 1991 340,413 1990 $0.50 1990 371,690 1989 $0.39 1989 369,730 * Excludes a one-time change of $105.2 million, or $1.93 per share, representing the cummulative effect of changes in accounting principles.
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Circulation - Note A Quarter Ended ----------------------------------- (Unaudited, in thousands of copies) March 27 March 28 1994 1993 Change ---------- ---------- --------- Average Morning Circulation 3,196 3,241 (45) Average Evening Circulation 450 463 (13) ---------- ---------- --------- Average Daily Circulation 3,646 3,704 (58) ========== ========== ========= Average Sunday Circulation 4,790 4,818 (28) ========== ========== =========
Advertising Statistics - Notes A & B Quarter Ended ----------------------------------- March 27 March 28 1994 1993 % Change ---------- ---------- --------- LINAGE (Unaudited,in thousands of six-column inches) Full-run ROP Retail 3,477 3,528 (1.5) General 373 331 13.0 Classified 3,274 3,139 4.3 ---------- ---------- Total 7,124 6,998 1.8 ========== ========== Factored Part-run ROP 401 447 (10.3) ========== ========== Full-run Preprint 3,691 3,514 5.0 ========== ========== Part-run Preprint 3,355 3,340 0.4 ========== ========== TOTAL PREPRINTS INSERTED (000s) 1,089,400 1,022,557 6.5 ========== ========== Note A: Where necessary, certain previously reported statistics have been restated to be consistent with measurement guidelines currently in use. Note B: Factored part-run linage represents linage in zoned editions that is translated into full-run equivalent linage based on the ratio of the circulation in a particular zone to the total circulation of the newspaper.
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Knight-Ridder Share Trading 1994 First Quarter 1993 First Quarter (As quoted by Knight-Ridder Financial Services) --------------------------------- -------------------------------- Volume High Low Close Volume High Low Close --------- ----- ------ ------ --------- ----- ------ ------ 8,485,000 61 54 7/8 60 1/8 8,066,100 65 56 1/2 57 1/2
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