-----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, rjgR+a3Ycq9F/6Ti9aDtJti/bkW3ivvHBt3K9L1UVMooxqVZk23hNMe5yELlV5b8 1Jum/XEnsh0dhwaHQfKMBg== 0000205520-94-000032.txt : 19941109 0000205520-94-000032.hdr.sgml : 19941109 ACCESSION NUMBER: 0000205520-94-000032 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19940925 FILED AS OF DATE: 19941108 SROS: NYSE 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: 94558093 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 THIRD 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 September 25, 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-53,424,665 shares as of October 30, 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 8K 13 SIGNATURE 14 Exhibit 11 Statement Re: Computation of Per Share Earnings 15 Exhibit 27 Financial Data Schedule 16 Exhibit 28 Additional Exhibits 17-20 -2-
Consolidated Statement of Income (Unaudited, in thousands of dollars, except share data) Quarter Ended Three Quarters Ended Four Quarters Ended --------------------- ---------------------- --------------------- Sept. 25 Sept. 26 Sept. 25 Sept. 26 Sept. 25 Sept. 26 1994 1993 1994 1993 1994 1993 -------- -------- -------- -------- -------- -------- OPERATING REVENUE Newspapers Advertising Retail $ 182,220 $ 175,319 $ 551,086 $ 536,180 $ 781,011 $ 764,241 General 40,337 36,617 132,871 124,138 177,506 166,189 Classified 155,511 139,303 456,594 416,237 587,110 540,282 -------- -------- -------- -------- -------- -------- Total 378,068 351,239 1,140,551 1,076,555 1,545,627 1,470,712 Circulation 120,475 117,761 362,790 353,594 483,616 469,641 Other 15,990 13,740 47,192 41,091 62,873 51,775 -------- -------- -------- -------- -------- -------- Total Newspapers 514,533 482,740 1,550,533 1,471,240 2,092,116 1,992,128 Business Information Services 128,080 110,384 384,493 327,460 495,558 425,278 -------- -------- -------- -------- -------- -------- Total Operating Revenue 642,613 593,124 1,935,026 1,798,700 2,587,674 2,417,406 -------- -------- -------- -------- -------- -------- OPERATING COSTS Labor and employee benefits 269,568 251,806 805,947 760,505 1,069,623 1,016,786 Newsprint, ink and supplements 81,801 82,518 241,113 247,492 328,664 329,745 Other operating costs 178,539 164,123 540,804 495,853 710,460 656,388 Depreciation and amortization 37,428 36,363 111,789 106,611 146,936 138,204 -------- -------- -------- -------- -------- -------- Total Operating Costs 567,336 534,810 1,699,653 1,610,461 2,255,683 2,141,123 -------- -------- -------- -------- -------- -------- OPERATING INCOME 75,277 58,314 235,373 188,239 331,991 276,283 -------- -------- -------- -------- -------- -------- -3- OTHER INCOME (EXPENSE) Interest expense (11,394) (7,773) (33,578) (33,410) (45,280) (46,558) Interest expense capitalized 249 50 312 68 364 68 Interest income 1,510 1,287 4,125 4,467 5,370 6,280 Other, net (2,556) 1,065 (6,222) (2,440) (5,958) (8,020) -------- -------- -------- -------- -------- -------- Total (12,191) (5,371) (35,363) (31,315) (45,504) (48,230) -------- -------- -------- -------- -------- -------- Income before income taxes 63,086 52,943 200,010 156,924 286,487 228,053 Income taxes 25,843 21,692 82,274 60,040 117,546 87,571 -------- -------- -------- -------- -------- -------- Net Income $ 37,243 $ 31,251 $ 117,736 $ 96,884 $ 168,941 $ 140,482 ======== ======== ======== ======== ======== ======== EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE $ 0.69 $ 0.57 $ 2.16 $ 1.75 $ 3.09 $ 2.53 ======== ======== ======== ======== ======== ======== DIVIDENDS DECLARED PER COMMON SHARE $ 0.37* $ 0.35 $ 1.09 $ 1.05 $ 1.44 $ 1.40 ======== ======== ======== ======== ======== ======== AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (000s) 53,825 54,957 54,535 55,393 54,688 55,417 ======== ======== ======== ======== ======== ======== * Excludes dividend of $.37 per common share which was declared on June 28, 1994 and presented in the interim financial information for the quarter ended June 26,1994. See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 19.
-4-
Consolidated Balance Sheet (Unaudited, in thousands of dollars, except share data) Sept. 25 Dec. 26 Sept. 26 1994 1993 1993 -------- ------- -------- Assets CURRENT ASSETS Cash, including short-term cash investments of $1,498 in 1994, $7,638 in December 1993 and $150 in September 1993 $ 15,853 $ 23,012 $ 11,863 Accounts receivable, net of allowances of $15,038 in 1994, $14,554 in December 1993 and $14,260 in September 1993 285,773 274,391 265,566 Inventories 40,278 41,422 47,643 Other current assets 69,764 62,491 80,942 ------- ------- ------- Total Current Assets 411,668 401,316 406,014 ------- ------- ------- INVESTMENTS AND OTHER ASSETS Equity in unconsolidated companies and joint ventures 287,762 289,986 286,103 Other 185,435 175,058 168,330 ------- ------- ------- Total Investments and Other Assets 473,197 465,044 454,433 ------- ------- ------- PROPERTY, PLANT AND EQUIPMENT Land and improvements 66,977 66,885 65,519 Buildings and improvements 378,976 379,556 380,684 Equipment 1,196,908 1,168,054 1,163,326 Construction and equipment installations in progress 18,976 13,100 13,642 --------- --------- --------- 1,661,837 1,627,595 1,623,171 Less accumulated depreciation 827,392 766,474 754,388 --------- --------- --------- Net Property, Plant and Equipment 834,445 861,121 868,783 --------- --------- --------- EXCESS OF COST OVER NET ASSETS ACQUIRED Less accumulated amortization of $176,885 in 1994, $160,545 in December 1993 and $155,526 in September 1993 712,794 703,951 701,412 --------- --------- --------- TOTAL $ 2,432,104 $2,431,432 $2,430,642 ========= ========= ========= -5- Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable $ 115,560 $ 124,620 $ 118,235 Accrued expenses and other liabilities 102,671 82,149 83,113 Accrued compensation and amounts withheld from employees 83,864 79,736 70,138 Federal and state income taxes 12,722 10 Deferred revenue 63,178 60,095 58,198 Dividends payable 19,789 19,199 19,130 Short-term borrowings and current portion of long-term debt 10,008 40,687 42,616 ------- ------- ------- Total Current Liabilities 407,792 406,496 391,430 ------- ------- ------- NON-CURRENT LIABILITIES Long-term debt 409,038 410,388 474,080 Deferred federal and state income taxes 150,811 135,979 126,633 Postretirement benefits other than pensions 169,469 174,331 175,032 Employment benefits and other non-current liabilities 70,590 57,816 58,984 ------- ------- ------- Total Non-Current Liabilities 799,908 778,514 834,729 ------- ------- ------- MINORITY INTERESTS 2,189 3,253 3,093 ------- ------- ------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common Stock, $.02 1/12 par value; shares authorized - 250,000,000; shares issued - 53,502,640 in 1994, 54,847,486 in December 1993 and 54,653,470 in September 1993 1,115 1,143 1,139 Additional capital 331,274 342,201 332,432 Retained earnings 889,826 899,825 867,819 ------- ------- ------- Total Shareholders' Equity 1,222,215 1,243,169 1,201,390 --------- --------- --------- TOTAL $ 2,432,104 $2,431,432 $2,430,642 ========= ========= ========= See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 19.
-6-
Consolidated Statement of Cash Flows (Unaudited, in thousands of dollars) Quarter Ended Three Quarters Ended Four Quarters Ended ----------------- ----------------- ------------------ Sept. 25 Sept. 26 Sept. 25 Sept. 26 Sept. 25 Sept. 26 1994 1993 1994 1993 1994 1993 ------- ------- ------- ------- ------- ------- CASH PROVIDED BY (REQUIRED FOR) OPERATING ACTIVITIES Net Income $37,243 $31,251 $117,736 $96,884 $168,941 $140,482 Non-cash items included in income: Depreciation 26,819 26,783 80,042 78,653 105,703 101,415 Amortization of excess of cost over net assets acquired 5,484 4,963 16,339 14,735 21,358 19,467 Amortization of other assets 5,125 4,617 15,408 13,223 19,875 17,322 Provision for non-current deferred taxes 4,747 6,926 14,832 12,434 24,178 28,693 Distributions from investees less than earnings (2,749) (712) (2,045) (14,226) (10,621) (6,522) Other items, net 8,486 8,216 27,124 26,058 30,650 38,253 Change in certain assets and liabilities: Accounts receivable 5,442 (3,408) (9,222) 4,759 (17,358) (13,280) Inventories (759) 2,978 1,144 (10,146) 7,489 (9,014) Other current assets (12,214) 2,264 (9,473) (16,614) 10,227 (12,553) Accounts payable (16,297) (10,336) (9,379) 6,088 (8,270) 17,188 Federal and state income taxes (2,251) (12,125) 12,711 (1,286) 17,539 (37,798) Other current liabilities 28,803 (9,250) 24,536 (10,763) 40,246 (10,743) ------- ------- ------- ------- ------- ------- Net cash provided by operating activities 87,879 52,167 279,753 199,799 409,957 272,910 ------- ------- ------- ------- ------- ------- CASH REQUIRED FOR INVESTING ACTIVITIES Additions to property, plant and equipment (17,275) (13,561) (47,317) (55,214) (61,644) (75,560) Other items, net (9,012) (12,968) (49,890) (60,498) (70,438) (116,639) ------- ------- ------- ------- ------- ------- Net cash required for investing activities (26,287) (26,529) (97,207) (115,712) (132,082) (192,199) ------- ------- ------- ------- ------- ------- -7- CASH PROVIDED BY(REQUIRED FOR)FINANCING ACTIVITIES Proceeds from sale of comercial paper and bank borrowings 65,107 70,236 272,520 256,091 324,412 342,827 Reduction of total debt (103,475) (51,813) (304,549) (299,639) (422,063) (322,004) ------- ------- ------- ------- ------- ------- Net change in total debt (38,368) 18,423 (32,029) (43,548) (97,651) 20,823 Payment of cash dividends (19,849) (19,093) (58,153) (57,657) (77,283) (76,849) Sale of common stock to employees 3,957 4,664 19,674 20,936 29,447 28,966 Purchase of treasury stock and stock tendered under stock option plans (13,761) (1,011) (99,621) (40,693) (99,621) (40,693) Other items, net (554) (26,323) (19,576) (48,366) (28,777) (55,495) ------- ------- ------- ------- ------- ------- Net cash required for financing activities (68,575) (23,340) (189,705) (169,328) (273,885) (123,248) ------- ------- ------- ------- ------- ------- Net Increase (Decrease) in Cash (6,983) 2,298 (7,159) (85,241) 3,990 (42,537) Cash and short-term cash investments at beginning of the period 22,836 9,565 23,012 97,104 11,863 54,400 ------- ------- ------- ------- ------- ------- Cash and short-term cash investments at end of the period $15,853 $11,863 $15,853 $11,863 $15,853 $11,863 ======= ======= ======= ======= ======= ======= Working capital at end of period $3,876 $14,584 $3,876 $14,584 $3,876 $14,584 ======= ======= ======= ======= ======= ======= See "Notes to Consolidated Financial Statements" and statistical data on pages 9 and 19.
-8-
Notes to Consolidated Financial Statements (Unaudited) Note 1 - Debt (In thousands of dollars) Effective Interest Balance at Rate at -------------------------------- Sept. 25 Sept. 25 Dec. 26 Sept. 26 1994 1994 1993 1993 -------- -------- -------- -------- Commercial paper, net of discount 5.0 % $62,393 $53,985 $117,760 Notes payable, net of discount (a) 8.6 159,060 198,930 198,878 Debentures, net of discount (b) 10.0 197,593 197,472 197,431 Other indebtedness 688 2,627 ------- ------- ------- Total debt (c) 8.7 419,046 451,075 516,696 Less amounts classified as current 5.0 10,008 40,687 42,616 ------- ------- ------- Total long-term debt 8.8 % $409,038 $410,388 $474,080 ======= ======= ======= (a) Represents $160 million of 8 1/2% Notes subject to mandatory pro rata amortization of 25% annually commencing 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 September 25, 1994 and September 26, 1993, interest payments of $29.5 million and $30.2 million had been made for the year-to-date, respectively. Note 2 - Income Tax Expense Income tax payments for the three quarters ended September 25, 1994 and September 26, 1993, were $45.5 million and $64.1 million respectively.
-9- Management's Discussion and Analysis of the Third Quarter Third Quarter 1994 Compared With Third Quarter 1993 Earnings per share for the third quarter of 1994 were $.69, a 21.1% increase from $.57 per share in 1993. For the year to date, earnings per share were $2.16, compared with $1.75 through the third quarter last year, an increase of 23.4%. Operating Revenue Newspaper advertising revenue increased 7.6% over the third quarter last year on a full-run ROP linage increase of 4.3%. For the year to date, advertising revenue was up 5.9%, on a 2.7% full-run ROP linage increase. Retail advertising revenue improved by $6.9 million, or 3.9%, over third quarter last year on a 1.0% increase in full-run ROP linage. Retail revenue was up 2.8% for the year to date, on a 0.6% decrease in full-run ROP linage. General advertising revenue was $3.7 million, or 10.2%, over last year on a 12.7% increase in full-run ROP linage. For the year to date, general revenue was up 7.0% on a 9.3% increase in full-run ROP linage. Classified advertising revenue reflected an 11.6% increase over the third quarter last year, on a 7.0% full-run ROP linage increase. The employment and automotive categories continue to show the biggest gains, with linage up 25.7% and 5.0% respectively. For the first three quarters, classified revenue was up 9.7% on a 5.7% full-run ROP linage improvement. Circulation revenue increased $2.7 million, or 2.3%, due to a 3.7% increase in average rates, offset by a 1.4% decline in circulation. Circulation revenue was up 2.6% for the first three quarters of the year. Other newspaper revenue increased by $2.3 million, or 16.4%, due partially to our emphasis on efforts to augment our core business. Business Information Services (BIS) revenue in the third quarter increased $17.7 million, or 16.0%. Acquisitions were a factor in the increase over last year. BIS revenue was up 17.4% for the year to date, again reflecting the impact of acquisitions. Excluding acquisitions, division revenue was up about 8.2% over both the third quarter last year and the first three quarters of 1993. Operating Costs Labor and employee benefit costs rose $17.8 million, or 7.1%, on a 1.5% increase in the work force and a 6.1% increase in average wage. The work force increase was a result of BIS expansion and acquisitions. For the year to date, labor and employee benefits were up 6.0% due to a 0.7% increase in the work force and a 5.1% increase in the average wage. -10- Newsprint, ink and supplement costs decreased $717,000, or 0.9%, on a 1.7% increase in newsprint consumption and a 2.8% decrease in the average newsprint price. These costs were down 2.6% for the first three quarters on a 1.2% rise in newsprint consumption and a 3.7% price decrease in the average price of newsprint. Other operating costs rose $14.4 million, or 8.8% over third quarter 1993. The increase resulted partly from increased circulation promotion, increased exchange fees with BIS overseas operations, and other costs associated with acquisitions. For the year to date, other operating costs increased by $45.0 million, or 9.1%. Depreciation and amortization increased 2.9% over third quarter 1993 and 4.9% over the same three quarters last year. The increase resulted from BIS expansion and acquisitions. Non-Operating Items And Income Taxes Interest expense, net of interest income and interest expense capitalized, increased $3.2 million during the quarter. The increase is due a to 1993 third quarter favorable interest reserve adjustment relating to IRS audit settlements. Net interest expense for the first three quarters was up 0.9% from last year. The average debt balance for the quarter was down almost $69.0 million from the third quarter of last year. The "Other, Net" line of the Non-Operating section reflects a $3.6 million unfavorable change in the third quarter, principally due to the impact of cumulative adjustments to our cable investments related to re-regulation. The effective income tax rate was 41.0% for both the third quarter 1994 and 1993. For the year to date, the 1994 effective income tax rate was 41.1%, compared to 38.3% in 1993. The increase resulted from a 1993 IRS audit settlement and other favorable adjustments related to resolution of other tax issues. OTHER Effective in the fourth quarter, Dialog will include results from Article Express International (AEI), a leading document delivery supplier, in which it previously held a minority ownership. Dialog acquired additional shares, resulting in AEI becoming a wholly owned subsidiary. The impact will not be material. For the first three quarters of 1994, the company purchased approximately 1.8 million shares of Knight-Ridder common stock and plans to repurchase additional shares from time to time. -11- Outlook for the Remainder of the Year We are pleased by results for the first three quarters of the year. Based on early indicators in the fourth quarter, we expect 1994 to be a record earnings year. The average price of newsprint for the year should be about flat with last year, although price increases in the last quarter will unfavorably impact 1995 results. BIS Division results continue to be strengthened by acquisitions and reinvestment for global expansion. Liquidity Net cash provided by operating activities increased to $87.9 million from $52.2 million in the third quarter of 1993, due to changes in several working capital components. Current liabilities showed a larger than usual increase during the third quarter 1994, since the second quarter 1994 did not include approximately $19.8 million of dividends, which were declared after the end of the second fiscal quarter. Cash and equivalents were down $7.0 million from last quarter and down $7.2 million from year end. Total debt decreased $38.4 million during the quarter and decreased $32.0 million from year end. The long-term-debt-to-equity ratio was 33.5%, compared with 33.0% at year end, and 39.5% last September. The total-debt-to-total-capital ratio was 25.5%, down from 26.6% at year end and 30.1% in September 1993. Approximately $438 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 Sept. 25, 1994, Dec. 26, 1993 and Sept. 26, 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. 27 - 1994 Third Quarter Financial Data Schedule No. 28 - Additional Exhibits b. Reports on Form 8-K No reports were filed on Form 8-K during the quarter ended September 25, 1994. -13- SIGNATURES 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 November 8, 1994 Tally Liu, Vice President/Finance and Controller (Chief Accounting Officer and Duly Authorized Officer of Registrant) -14- EX-11 2 1994 THIRD QUARTER DILUTIVE SHARES
EXHIBIT 11 ----------- COMPUTATION OF PER SHARE EARNINGS (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA) Quarter Ended Three Quarters Ended -------------------- -------------------- Sept. 25 Sept. 26 Sept. 25 Sept. 26 1994 1993 1994 1993 -------- -------- -------- -------- PRIMARY Average shares outstanding 53,567 54,581 54,151 54,901 Net effect of dilutive stock options-based on the Treasury Stock method using the average market price 258 376 384 492 ------- ------- ------- ------- TOTAL 53,825 54,957 54,535 55,393 ======= ======= ======= ======= Net Income $37,243 $31,251 $117,736 $96,884 ======= ======= ======= ======= Per Share amount from net income $0.69 $0.57 $2.16 $1.75 ======= ======= ======= ======= FULLY DILUTED Average shares outstanding 53,567 54,581 54,151 54,901 Net effect of dilutive options - based upon Treasury Stock method using the higher of quarter-end or average market price 258 376 416 492 ------- ------- ------- ------- TOTAL 53,825 54,957 54,567 55,393 ======= ======= ======= ======= Net Income $37,243 $31,251 $117,736 $96,884 ======= ======= ======= ======= Per Share amount from net income $0.69 $0.57 $2.16 $1.75 ======= ======= ======= ======= -15-
EX-27 3 1994 THIRD QUARTER FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF INCOME, THE CONSOLIDATED BALANCE SHEETS, THE CONSOLIDATED STATEMENTS OF CASH FLOWS AND THE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. 1000 QTR-3 9-MOS DEC-25-1994 DEC-25-1994 JUN-27-1994 DEC-27-1993 SEP-25-1994 SEP-25-1994 15,853 15,853 0 0 300,811 300,811 15,038 15,038 40,278 40,278 411,668 411,668 1,661,837 1,661,837 827,392 827,392 2,432,104 2,432,104 407,792 407,792 0 0 1,115 1,115 0 0 0 0 1,221,100 1,221,100 2,432,104 2,432,104 642,613 1,935,026 642,613 1,935,026 0 0 567,336 1,699,653 12,191 35,363 0 0 11,394 33,578 63,086 200,010 25,843 82,274 37,243 117,736 0 0 0 0 0 0 37,243 117,736 .69 2.16 .69 2.16 OTHER-EXPENSES CONSISTS OF ALL NON-OPERATING COSTS, EXCLUDING INCOME TAXES. AMOUNT INCLUDES INTEREST EXPENSE NET OF INTEREST INCOME AND OTHER NON-OPERATING COSTS (NET).
EX-28 4 1994 THIRD QUARTER ADDITIONAL INFORMATION
KNIGHT-RIDDER, INC. AND SUBSIDIARIES EXHIBIT 28 BUSINESS SEGMENT INFORMATION ---------- (Unaudited, in thousands of dollars) Quarter Ended Three Quarters Ended Four Quarters Ended ---------------------- --------------------- --------------------- Sept. 25 Sept. 26 Sept. 25 Sept. 26 Sept. 25 Sept. 26 1994 1993 1994 1993 1994 1993 -------- -------- -------- -------- -------- -------- OPERATING REVENUE Newspapers $ 514,533 $ 482,740 $ 1,550,533 $ 1,471,240 $ 2,092,116 $ 1,992,128 Business Information Services 128,080 110,384 384,493 327,460 495,558 425,278 --------- --------- --------- --------- --------- --------- $ 642,613 $ 593,124 $ 1,935,026 $ 1,798,700 $ 2,587,674 $ 2,417,406 ========= ========= ========= ========= ========= ========= OPERATING INCOME Newspapers $ 79,293 $ 59,926 $ 249,374 $ 199,112 $ 349,029 $ 289,796 Business Information Services 6,393 5,885 18,962 15,598 26,769 22,795 Corporate (10,409) (7,497) (32,963) (26,471) (43,807) (36,308) --------- --------- --------- --------- --------- --------- $ 75,277 $ 58,314 $ 235,373 $ 188,239 $ 331,991 $ 276,283 ========= ========= ========= ========= ========= ========= DEPRECIATION AND AMORTIZATION Newspapers $ 23,535 $ 23,786 $ 71,223 $ 71,139 $ 94,684 $ 92,882 Business Information Services 13,470 12,162 39,247 34,260 50,512 43,742 Corporate 423 415 1,319 1,212 1,740 1,580 --------- --------- --------- --------- --------- --------- $ 37,428 $ 36,363 $ 111,789 $ 106,611 $ 146,936 $ 138,204 ========= ========= ========= ========= ========= =========
-17-
Knight-Ridder, Inc. Third Quarter Graphs (Unaudited) ================================ THIRD QUARTER NET INCOME THIRD QUARTER TOTAL OPERATING REVENUE (From continuing operations, in $000s) (From continuing operations, in $000s) Year Amount Year Amount ---- ------ ---- ------- 1994 37,243 1994 642,613 1993 31,251 1993 593,124 1992 31,392 1992 564,854 1991 28,300 1991 544,446 1990 36,588 1990 575,437 1989 33,980 1989 545,075 THIRD QUARTER EARNINGS PER SHARE THIRD QUARTER NEWSPAPER ADVERTISING REVENUE (From continuing operations) (In $000s) Year Amount Year Amount ---- ----- ---- ------- 1994 $0.69 1994 378,068 1993 $0.57 1993 351,239 1992 $0.57 1992 345,712 1991 $0.54 1991 337,794 1990 $0.73 1990 381,690 1989 $0.65 1989 370,891
-18-
Circulation - Note A Quarter Ended Three Quarters Ended ----------------------------- ------------------------------ (Unaudited, in thousands of copies) Sept. 25 Sept. 26 Sept. 25 Sept. 26 1994 1993 Change 1994 1993 Change -------- -------- -------- -------- -------- -------- Average Morning Circulation 3,088 3,130 (42) 3,146 3,189 (43) Average Evening Circulation 452 460 (8) 451 463 (12) -------- -------- -------- -------- -------- -------- Average Daily Circulation 3,540 3,590 (50) 3,597 3,652 (55) ======== ======== ======== ======== ======== ======== Average Sunday Circulation 4,661 4,710 (49) 4,717 4,758 (41) ======== ======== ======== ======== ======== ========
Advertising Statistics - Notes A & B (Unaudited) Quarter Ended Three Quarters Ended ----------------------------- ------------------------------- Sept. 25 Sept. 26 Sept. 25 Sept. 26 1994 1993 % Change 1994 1993 % Change -------- -------- -------- -------- -------- -------- LINAGE (In thousands of six-column inches) Full-run ROP Retail 3,606 3,571 1.0 10,893 10,957 (0.6) General 350 310 12.7 1,118 1,023 9.3 Classified 3,603 3,368 7.0 10,467 9,899 5.7 -------- -------- -------- -------- Total 7,559 7,249 4.3 22,478 21,879 2.7 ======== ======== ======== ======== Factored Part-run ROP 455 465 (2.2) 1,303 1,401 (7.0) ======== ======== ======== ======== Full-run Preprint 3,889 3,528 10.2 11,743 11,254 4.3 ======== ======== ======== ======== Part-run Preprint 4,239 3,829 10.7 11,921 11,062 7.8 ======== ======== ======== ======== TOTAL PREPRINTS INSERTED (000s) 1,098,140 1,058,582 3.7 3,330,707 3,222,242 3.4 ======== ======== ======== ======== 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.
-19-
Knight-Ridder Share Trading (As quoted by Knight-Ridder Financial Services) (Unaudited) 1994 Third Quarter 1993 Third Quarter --------------------------------- ------------------------------------ Volume High Low Close Volume High Low Close --------- ----- ---- ----- -------- ----- ---- ----- 9,267,400 54 5/8 49 1/2 51 1/4 5,738,500 55 1/2 50 5/8 52 1/8
-20- -----END PRIVACY-ENHANCED MESSAGE-----