-----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, GlpqSPoUUfdUQrAMKEHbdmRF6h1y+iUKtSF7WI9vdvPZay3SufXHekXhYZdopN+/ 4QAH6QHZ+DEdqS+R55oktQ== 0000205520-94-000029.txt : 19940817 0000205520-94-000029.hdr.sgml : 19940817 ACCESSION NUMBER: 0000205520-94-000029 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940626 FILED AS OF DATE: 19940809 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: 94542350 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 SECOND 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 June 26, 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-53,598,688 shares as of July 31, 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 6 - Exhibits and Reports on 8-K 13 SIGNATURE 14 Exhibit 11 Statement Re: Computation of Per Share Earnings 15 Exhibit 28 Additional Exhibits 16-19 -2-
Consolidated Statement Of Income (Unaudited, in thousands of dollars, except share data) Quarter Ended Two Quarters Ended Four Quarters Ended ---------------------- --------------------- ------------------------ June 26 June 27 June 26 June 27 June 26 June 27 1994 1993 1994 1993 1994 1993 --------- --------- --------- --------- --------- --------- OPERATING REVENUE Newspapers Advertising Retail $ 194,840 $ 191,144 $ 368,866 $ 360,861 $ 774,110 $ 764,965 General 45,453 44,606 92,534 87,521 173,786 168,282 Classified 155,671 141,733 301,083 276,934 570,902 531,938 --------- --------- --------- --------- --------- --------- Total 395,964 377,483 762,483 725,316 1,518,798 1,465,185 Circulation 121,591 118,850 242,315 235,833 480,902 465,606 Other 16,575 14,349 31,202 27,351 60,623 47,854 --------- --------- --------- --------- --------- --------- Total Newspapers 534,130 510,682 1,036,000 988,500 2,060,323 1,978,645 Business Information Services 127,420 111,000 256,413 217,076 477,862 410,491 --------- --------- --------- --------- --------- --------- Total Operating Revenue 661,550 621,682 1,292,413 1,205,576 2,538,185 2,389,136 --------- --------- --------- --------- --------- --------- OPERATING COSTS Labor and employee benefits 267,984 255,323 536,379 508,699 1,051,861 1,009,775 Newsprint, ink and supplements 79,918 84,916 159,312 164,974 329,381 321,357 Other operating costs 181,147 168,834 362,265 331,730 696,044 645,106 Depreciation and amortization 37,215 36,364 74,361 70,248 145,871 133,871 --------- --------- --------- --------- --------- --------- Total Operating Costs 566,264 545,437 1,132,317 1,075,651 2,223,157 2,110,109 --------- --------- --------- --------- --------- --------- OPERATING INCOME 95,286 76,245 160,096 129,925 315,028 279,027 --------- --------- --------- --------- --------- --------- -3- OTHER INCOME (EXPENSE) Interest expense (11,662) (12,442) (22,184) (25,637) (41,659) (51,338) Interest expense capitalized 7 13 63 18 165 978 Interest income 1,350 1,426 2,615 3,180 5,147 6,004 Other, net 281 (232) (3,666) (3,505) (2,337) (9,399) --------- --------- --------- --------- --------- --------- Total (10,024) (11,235) (23,172) (25,944) (38,684) (53,755) --------- --------- --------- --------- --------- --------- Income before income taxes 85,262 65,010 136,924 103,981 276,344 225,272 Income taxes 35,141 22,513 56,431 38,348 113,395 84,649 --------- --------- --------- --------- --------- --------- Net income $ 50,121 $ 42,497 $ 80,493 $ 65,633 $ 162,949 $ 140,623 ========= ========= ========= ========= ========= ========= EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE $ 0.92 $ 0.77 $ 1.47 $ 1.18 $ 2.96 $ 2.53 ========= ========= ========= ========= ========= ========= DIVIDENDS DECLARED PER COMMON SHARE $ 0.37 * $ 0.35 $ 0.72 $ 0.70 $ 1.42 $ 1.40 ========= ========= ========= ========= ========= ========= AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (000s) 54,548 55,476 54,890 55,611 54,971 55,535 ========= ========= ========= ========= ========= ========= * Dividends for the second quarter of 1994 were declared on June 28, 1994. See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 18.
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Consolidated Balance Sheet (Unaudited, in thousands of dollars, except share data) June 26 December 26 June 27 1994 1993 1993 --------- --------- --------- Assets CURRENT ASSETS Cash, including short-term cash investments of $7,493 in 1994, $7,638 in December 1993 and $150 in June 1993 $ 22,836 $ 23,012 $ 9,565 Accounts receivable, net of allowances of $14,760 in 1994, $14,554 in December 1993 and $14,167 in June 1993 291,237 274,391 262,158 Inventories 39,519 41,422 50,621 Other current assets 58,436 62,491 82,638 --------- --------- --------- Total Current Assets 412,028 401,316 404,982 --------- --------- --------- INVESTMENTS AND OTHER ASSETS Equity in unconsolidated companies and joint ventures 287,174 289,986 286,858 Other 180,335 175,058 160,276 --------- --------- --------- Total Investments and Other Assets 467,509 465,044 447,134 --------- --------- --------- PROPERTY, PLANT AND EQUIPMENT Land and improvements 66,880 66,885 65,462 Buildings and improvements 378,803 379,556 380,804 Equipment 1,193,804 1,168,054 1,158,465 Construction and equipment installations in progress 9,871 13,100 11,478 --------- --------- --------- 1,649,358 1,627,595 1,616,209 Less accumulated depreciation 806,827 766,474 735,517 --------- --------- --------- Net Property, Plant and Equipment 842,531 861,121 880,692 --------- --------- --------- EXCESS OF COST OVER NET ASSETS ACQUIRED Less accumulated amortization of $171,400 in 1994, $160,545 in December 1993 and $150,563 in June 1993 717,954 703,951 706,375 --------- --------- --------- TOTAL $2,440,022 $2,431,432 $2,439,183 ========= ========= ========= -5- Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable $ 131,857 $ 124,620 $ 128,571 Accrued expenses and other liabilities 82,563 82,149 88,709 Accrued compensation and amounts withheld from employees 78,463 79,736 77,834 Federal and state income taxes 14,972 10 12,125 Deferred revenue 59,770 60,095 54,030 Dividends payable 19,199 19,093 Short-term borrowings and current portion of long-term debt 40,000 40,687 42,750 --------- --------- --------- Total Current Liabilities 407,625 406,496 423,112 --------- --------- --------- NON-CURRENT LIABILITIES Long-term debt 417,414 410,388 455,666 Deferred federal and state income taxes 146,064 135,979 119,707 Postretirement benefits other than pensions 169,306 174,331 174,706 Employment benefits and other non-current liabilities 62,374 57,816 77,730 --------- --------- --------- Total Non-Current Liabilities 795,158 778,514 827,809 --------- --------- --------- MINORITY INTERESTS 2,825 3,253 2,646 --------- --------- --------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common Stock, $.02 1/12 par value; shares authorized - 250,000,000; shares issued - 53,675,913 in 1994, 54,847,486 in December 1993 and 54,569,041 in June 1993 1,118 1,143 1,137 Additional capital 333,159 342,201 328,781 Retained earnings 900,137 899,825 855,698 --------- --------- --------- Total Shareholders' Equity 1,234,414 1,243,169 1,185,616 --------- --------- --------- TOTAL $2,440,022 $2,431,432 $2,439,183 ========= ========= ========= See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 18.
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Consolidated Statement of Cash Flows (Unaudited, in thousands of dollars) Quarter Ended Two Quarters Ended Four Quarters Ended ----------------- ----------------- ----------------- June 26 June 27 June 26 June 27 June 26 June 27 1994 1993 1994 1993 1994 1993 ------- ------- ------- ------- ------- ------- CASH PROVIDED BY(REQUIRED FOR)OPERATING ACTIVITIES Net income $ 50,121 $ 42,497 $ 80,493 $ 65,633 $ 162,949 $ 140,623 Non-cash items included in income: Depreciation 26,599 26,807 53,223 51,870 105,667 98,305 Amortization of excess of cost over net assets acquired 5,489 4,962 10,855 9,772 20,837 19,210 Amortization of other assets 5,127 4,595 10,283 8,606 19,367 16,356 Provision for non-current deferred taxes 6,300 6,539 10,085 5,508 26,357 23,062 Distributions from investees in excess of (less than) earnings (2,360) (10,497) 704 (13,514) (8,584) (18,601) Other items, net 9,403 9,019 18,638 17,842 30,380 32,310 Change in certain assets and liabilities: Accounts receivable (17,094) (9,965) (14,664) 8,167 (26,208) (15,909) Inventories (1,477) (4,797) 1,903 (13,124) 11,226 (16,269) Other current assets 14,405 3,859 2,741 (18,878) 24,705 (4,151) Accounts payable 9,378 5,233 6,918 16,424 (2,309) 41,870 Federal and state income taxes 6,949 5,796 14,962 10,839 7,665 (12,881) Other current liabilities (3,923) (4,742) (4,267) (1,513) 2,193 4,947 ------- ------- ------- ------- ------- ------- Net cash provided by operating activities 108,917 79,306 191,874 147,632 374,245 308,872 ------- ------- ------- ------- ------- ------- CASH REQUIRED FOR INVESTING ACTIVITIES Additions to property, plant and equipment (15,870) (17,251) (30,042) (41,653) (57,930) (76,319) Other items, net (6,572) (5,687) (40,878) (47,530) (74,394) (114,566) -------- -------- -------- -------- -------- -------- Net cash required for investing activities (22,442) (22,938) (70,920) (89,183) (132,324) (190,885) -------- -------- -------- -------- -------- -------- -7- CASH PROVIDED BY (REQUIRED FOR) FINANCING ACTIVITIES Proceeds from sale of commercial paper and bank borrowings 76,455 128,510 207,413 185,855 329,541 272,591 Reduction of total debt (75,731) (143,940) (201,074) (247,826) (370,401) (294,016) -------- -------- -------- -------- -------- -------- Net change in total debt 724 (15,430) 6,339 (61,971) (40,860) (21,425) Payment of cash dividends (19,107) (19,326) (38,304) (38,564) (76,527) (76,823) Sale of common stock to employees 6,535 3,991 15,717 16,272 30,154 41,380 Purchase of treasury stock and stock tendered under stock option plans (60,738) (39,682) (85,860) (39,682) (86,871) (39,682) Other items, net (11,278) (8,704) (19,022) (22,043) (54,546) (43,185) -------- -------- -------- -------- -------- -------- Net cash required for financing activities (83,864) (79,151) (121,130) (145,988) (228,650) (139,735) -------- -------- -------- -------- -------- -------- Net Increase (Decrease) in Cash 2,611 (22,783) (176) (87,539) 13,271 (21,748) Cash and short-term cash investments at beginning of the period 20,225 32,348 23,012 97,104 9,565 31,313 -------- -------- -------- -------- -------- -------- Cash and short-term cash investments at end of the period $ 22,836 $ 9,565 $ 22,836 $ 9,565 $ 22,836 $ 9,565 ======== ======== ======== ======== ======== ======== Working capital at end of the period $ 4,403 $ (18,130) $ 4,403 $ (18,130) $ 4,403 $ (18,130) ======== ======== ======== ======== ======== ======== See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 18.
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Notes to Consolidated Financial Statements (Unaudited) Note 1 - Debt (In thousands of dollars) Effective Interest Balance at Rate at -------------------------------- June 26 June 26 December 26 June 27 1994 1994 1993 1993 -------- -------- -------- -------- Commercial paper, net of discount 4.0 % $100,849 $ 53,985 $ 99,431 Notes payable, net of discount (a) 8.6 159,017 198,930 198,827 Debentures, net of discount (b) 10.0 197,548 197,472 197,390 Other indebtedness 688 2,768 -------- -------- -------- Total debt (c) 8.2 457,414 451,075 498,416 Less amounts classified as current 4.0 40,000 40,687 42,750 -------- -------- -------- Total long-term debt 8.6 % $417,414 $410,388 $455,666 ======== ======== ======== (a) Represents $160 million of 8 1/2% Notes subject to mandatory pro rata amortization of 25% annually commencing in 1998 through maturity in 2001, 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 June 26, 1994 and June 27, 1993, interest payments of $22.1 million and $29.0 million had been made for the year-to-date, respectively. Note 2 - Income Tax Expense Income tax payments for the two quarters ended June 26, 1994 and June 27, 1993, were $23.3 million and $20.7 million respectively.
-9- Management's Discussion and Analysis of the Second Quarter Second Quarter 1994 Compared With Second Quarter 1993 Earnings per share for the second quarter of 1994 increased by 19.5% to $.92 per share, compared with $.77 per share in 1993. Earnings per share for the first two quarters of 1994 were $1.47 compared with $1.18 in 1993, a 24.6% improvement. Operating Revenue Newspaper advertising revenue increased by 4.9% over the second quarter last year, on a full-run ROP linage increase of 2.1%. Retail advertising revenue increased $3.7 million, or 1.9%, over last year on a 1.2% decline in full-run ROP linage. Improved average rates and an increase in preprint revenue more than offset the drop in linage. Retail revenue is up 2.2% for the year-to-date, on a 1.3% decrease in full-run ROP linage. General advertising revenue increased by $847,000, or 1.9%, from last year on a 3.3% improvement in full-run ROP linage. For the year-to-date general revenue is up 5.7% on a 7.8% rise in full-run ROP linage. Classified advertising revenue improved by 9.8% over the second quarter last year, on a 5.8% full-run ROP linage increase. The employment revenue category has shown the biggest gain, up 21.2%. For the first two quarters, classified revenue is up 8.7% on a 5.1% full-run ROP linage improvement. Classified has shown full-run ROP linage year-over-year improvement for each of the last eight quarters. Circulation revenue increased $2.7 million, or 2.3%, due to a 3.9% increase in average rates, offset by a slight decline in circulation. Revenue is up 2.7% so far this year. Other newspaper revenues improved by $2.2 million, or 15.5%, primarily due to various efforts to augment traditional newspaper revenues with new related revenue sources. Business Information Services (BIS) revenue in the second quarter increased $16.4 million, or 14.8%, due in part to recent acquisitions and joint ventures. Business Information Services revenue is up 18.1% for the year-to- date, again reflecting the impact of the acquisitions. Excluding the impact of joint ventures and recent acquisitions, division revenue was 7.5% over the second quarter last year and 8.2% higher than the first two quarters of 1993. Operating Costs Labor and employee benefit costs rose $12.7 million, or 5.0%, on a 0.1% increase in the work force and a 5.3% increase in average wage. If not for recent BIS acquisitions and expansion, the workforce would have been down, due to reductions in the Newspaper Division. -10- Newsprint, ink and supplements costs decreased $5.0 million, or 5.9%, on a 6.0% decrease in average newsprint price. These costs are down 3.4% for the first two quarters on a 0.9% rise in newsprint consumption and a 4.2% average price decrease. Other operating costs rose $12.3 million, or 7.3%. The increase resulted primarily from volume related exchange fee expense in the BIS Division, increased distribution costs resulting from an emphasis on alternate delivery and increased circulation promotion costs. Non-Operating Items and Income Taxes Interest expense, net of interest income and interest expense capitalized, decreased by $698,000, or 6.3% due primarily to lower debt levels. The average debt balance for the quarter was down almost $39 million, or 7.4%, from the second quarter of last year. The effective tax rate for the second quarter 1994 was 41.2% compared to 34.6% in the second quarter 1993. The 1.0% increase in the statutory tax rate enacted by Congress in the third quarter 1993, and a second quarter 1993 favorable tax adjustment were major factors in the increase compared to second quarter last year. Other In April 1994, the Journal of Commerce formed a joint venture partnership with American Systems, Inc., which specializes in the development of custom software solutions for the transportation industry. The joint venture, Transax Systems, provides tariff filing and retrieval products, and its results are included in the BIS Division for the second quarter. On June 28, 1994, the Board of Directors increased the quarterly dividend by 5.7% to $.37 per share. At the same time the Board authorized the repurchase of up to three million shares of Knight-Ridder common stock, in addition to approximately 750,000 shares remaining under an earlier authorization. In the first two quarters, the company purchased approximately 1.5 million shares under the earlier authorization. The company will be buying in the market from time to time. Outlook for the Remainder of the Year We have continued the positive momentum of the first quarter, and we expect 1994 to be a year of very healthy earnings growth. Classified continues to be strong and retail and general advertising growth are firming up. For the year, we expect the average cost of newsprint to be about flat with 1993, and we look forward to additional improvement from Philadelphia, which is realizing its expected reductions in transition costs related to the new plant. Additionally, our results continue to be bolstered by the BIS Division acquisitions, and the impact of its global expansion. -11- Liquidity Net cash provided by operating activities increased to $108.9 million from $79.3 million in the second quarter of 1993, due to improved earnings and distributions from investees and changes in several working capital components. Current liabilities for the second quarter 1994 did not include approximately $19.9 million of dividends which were declared on June 28, 1994, after the end of the second quarter. Dividends to shareholders are normally declared prior to the quarter end and recorded as current liabilities. Cash and equivalents were up $2.6 million from last quarter and down $176,000 from year end. Total debt was increased $724,000 during the quarter and $6.3 million from year end. This slight increase in debt resulted from the anticipated share repurchase program and the 1994 BIS acquisitions. Both of these were, in large part, funded through internally generated cash flow. The long-term-debt-to-equity ratio was 33.8%, up slightly from 33.0% at year end, and down from 38.4% last June. The total-debt-to-total-capital ratio was 27% compared with 26.6% at year end and 29.6% in June 1993. Approximately $400 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 June 26, 1994, Dec. 26, 1993, and at June 27, 1993. -12- PART II. OTHER INFORMATION OTHER INFORMATION ----------------- Items 1, 2, 3, 4 and 5 are omitted as inapplicable, not required, or because the information is included in the consolidated financial information. 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 June 26, 1994. -13- 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 August 9, 1994 Tally Liu, Vice President/Finance and Controller (Chief Accounting Officer and Duly Authorized Officer of Registrant) -14- EX-11 2 1994 SECOND QUARTER DILUTIVE SHARE DATA
EXHIBIT 11 ----------- COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT PER SHARE DATA) Quarter Ended Two Quarters Ended ------------------- ------------------- June 26 June 27 June 26 June 27 1994 1993 1994 1993 ------- ------- ------- ------- PRIMARY Average shares outstanding 54,133 55,020 54,443 55,061 Net effect of dilutive stock options - based on the Treasury Stock method using the average market price 415 456 447 550 ------- ------- ------- ------- TOTAL 54,548 55,476 54,890 55,611 ======= ======= ======= ======= Net Income $50,121 $42,497 $80,493 $65,633 ======= ======= ======= ======= Per Share amount from net income $0.92 $0.77 $1.47 $1.18 ======= ======= ======= ======= FULLY DILUTED Average shares outstanding 54,133 55,020 54,443 55,061 Net effect of dilutive options - based on the Treasury Stock method using the higher of quarter-end or average market price 371 454 472 549 ------- ------- ------- ------- TOTAL 54,504 55,474 54,915 55,610 ======= ======= ======= ======= Net Income $50,121 $42,497 $80,493 $65,633 ======= ======= ======= ======= Per Share amount from net income $0.92 $0.77 $1.47 $1.18 ======= ======= ======= ======= -15-
EX-28 3 1994 SECOND QUARTER ADDITIONAL INFORMATION
KNIGHT-RIDDER, INC. AND SUBSIDIARIES EXHIBIT 28 BUSINESS SEGMENT INFORMATION ---------- (Unaudited, in thousands of dollars) Quarter Ended Two Quarters Ended Four Quarters Ended ----------------------- ---------------------- ---------------------- June 26 June 27 June 26 June 27 June 26 June 27 1994 1993 1994 1993 1994 1993 --------- --------- --------- --------- --------- --------- OPERATING REVENUE Newspapers $ 534,130 $ 510,682 $1,036,000 $ 988,500 $2,060,323 $1,978,645 Business Information Services 127,420 111,000 256,413 217,076 477,862 410,491 --------- --------- --------- --------- --------- --------- $ 661,550 $ 621,682 $1,292,413 $1,205,576 $2,538,185 $2,389,136 ========= ========= ========= ========= ========= ========= OPERATING INCOME Newspapers $ 101,995 $ 82,658 $ 170,081 $ 139,186 $ 329,662 $ 294,667 Business Information Services 5,032 4,097 12,569 9,713 26,261 21,989 Corporate (11,741) (10,510) (22,554) (18,974) (40,895) (37,629) --------- --------- --------- --------- --------- --------- $ 95,286 $ 76,245 $ 160,096 $ 129,925 $ 315,028 $ 279,027 ========= ========= ========= ========= ========= ========= DEPRECIATION AND AMORTIZATION Newspapers $ 23,747 $ 24,410 $ 47,688 $ 47,354 $ 94,935 $ 91,086 Business Information Services 12,995 11,557 25,777 22,098 49,204 41,212 Corporate 473 397 896 796 1,732 1,573 --------- --------- --------- --------- --------- --------- $ 37,215 $ 36,364 $ 74,361 $ 70,248 $ 145,871 $ 133,871 ========= ========= ========= ========= ========= =========
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KNIGHT-RIDDER, INC SECOND QUARTER GRAPHS SECOND QUARTER NET INCOME SECOND QUARTER TOTAL OPERATING REVENUE (From continuing operations, In $000s) (From continuing operations, In $000s) Year Amount Year Amount ---- ------ ---- ------- 1994 50,121 1994 661,550 1993 42,497 1993 621,682 1992 46,090 1992 590,531 1991 41,573 1991 569,497 1990 44,609 1990 591,739 1989 40,201 * 1989 578,700 SECOND QUARTER EARNINGS PER SHARE SECOND QUARTER NEWSPAPER ADVERTISING REVENUE (From continuing operations) (In $000s) Year Amount Year Amount ---- ------ ---- ------- 1994 $0.92 1994 395,964 1993 $0.77 1993 377,483 1992 $0.84 1992 370,252 1991 $0.82 1991 369,030 1990 $0.88 1990 405,641 1989 $0.77 * 1989 406,974 * Excludes $29,891,000, or $.58 per share, after-tax gain on the sale of the Pasadena newspaper. -17-
Circulation - Note A Quarter Ended Two Quarters Ended --------------------------------- --------------------------------- (Unaudited, in thousands of copies) June 26 June 27 June 26 June 27 1994 1993 Change 1994 1993 Change -------- -------- -------- -------- -------- -------- Average Morning Circulation 3,155 3,198 (43) 3,176 3,219 (43) Average Evening Circulation 450 466 (16) 450 465 (15) -------- -------- -------- -------- -------- -------- Average Daily Circulation 3,605 3,664 (59) 3,626 3,684 (58) ======== ======== ======== ======== ======== ======== Average Sunday Circulation 4,701 4,747 (46) 4,745 4,782 (37) ======== ======== ======== ======== ======== ========
Advertising Statistics - Notes A & B Quarter Ended Two Quarters Ended --------------------------------- --------------------------------- June 26 June 27 June 26 June 27 1994 1993 % Change 1994 1993 % Change -------- -------- -------- -------- -------- -------- LINAGE (Unaudited, in thousands of six-column inches) Full-run ROP Retail 3,809 3,858 (1.3) 7,287 7,386 (1.3) General 395 382 3.4 768 713 7.8 Classified 3,590 3,392 5.8 6,864 6,531 5.1 --------- --------- --------- --------- Total 7,794 7,632 2.1 14,919 14,630 2.0 ========= ========= ========= ========= Factored Part-run ROP 447 488 (8.5) 848 935 (9.3) ========= ========= ========= ========= Full-run Preprint 4,163 4,212 (1.2) 7,854 7,726 1.7 ========= ========= ========= ========= Part-run Preprint 4,328 3,892 11.2 7,682 7,233 6.2 ========= ========= ========= ========= TOTAL PREPRINTS INSERTED (000s) 1,143,167 1,141,103 0.2 2,232,567 2,163,660 3.2 ========= ========= ========= ========= 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 (As quoted by Knight-Ridder Financial Services) 1994 Second Quarter 1993 Second Quarter -------------------------------- ------------------------------------ Volume High Low Close Volume High Low Close --------- ------ ----- ----- --------- ------ ------ ------ 7,003,400 60 1/4 52 52 6,755,900 58 3/4 51 1/8 52 1/8
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