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
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COMMISSION FILE NUMBER 1-7553
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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
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(Registrant's telephone number, including area code)
NOT APPLICABLE
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(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-
<PAGE>
Table of Contents for 10-Q
Page
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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-
<PAGE>
<TABLE>
<CAPTION>
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
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
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-
<PAGE>
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.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
Consolidated Balance Sheet (Unaudited, in thousands of dollars, except share data)
Sept. 25 Dec. 26 Sept. 26
1994 1993 1993
-------- ------- --------
<S> <C> <C> <C>
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
========= ========= =========
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<PAGE>
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.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
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
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
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-
<PAGE>
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.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
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
-------- -------- -------- --------
<S> <C> <C> <C> <C>
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.
</TABLE>
-9-
<PAGE>
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-
<PAGE>
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-
<PAGE>
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-
<PAGE>
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-
<PAGE>
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)
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<PAGE>
<TABLE>
<CAPTION>
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
-------- -------- -------- --------
<S> <C> <C> <C> <C>
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-
<PAGE>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
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.
</LEGEND>
<MULTIPLIER> 1000
<S> <C> <C>
<PERIOD-TYPE> QTR-3 9-MOS
<FISCAL-YEAR-END> DEC-25-1994 DEC-25-1994
<PERIOD-START> JUN-27-1994 DEC-27-1993
<PERIOD-END> SEP-25-1994 SEP-25-1994
<CASH> 15,853 15,853
<SECURITIES> 0 0
<RECEIVABLES> 300,811 300,811
<ALLOWANCES> 15,038 15,038
<INVENTORY> 40,278 40,278
<CURRENT-ASSETS> 411,668 411,668
<PP&E> 1,661,837 1,661,837
<DEPRECIATION> 827,392 827,392
<TOTAL-ASSETS> 2,432,104 2,432,104
<CURRENT-LIABILITIES> 407,792 407,792
<BONDS> 0 0
<COMMON> 1,115 1,115
0 0
0 0
<OTHER-SE> 1,221,100 1,221,100
<TOTAL-LIABILITY-AND-EQUITY> 2,432,104 2,432,104
<SALES> 642,613 1,935,026
<TOTAL-REVENUES> 642,613 1,935,026
<CGS> 0 0
<TOTAL-COSTS> 567,336 1,699,653
<OTHER-EXPENSES> 12,191<F1> 35,363<F1>
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 11,394 33,578
<INCOME-PRETAX> 63,086 200,010
<INCOME-TAX> 25,843 82,274
<INCOME-CONTINUING> 37,243 117,736
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 37,243 117,736
<EPS-PRIMARY> .69 2.16
<EPS-DILUTED> .69 2.16
<FN>
<F1> 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).
</FN>
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
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
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
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
========= ========= ========= ========= ========= =========
</TABLE>
-17-
<PAGE>
<TABLE>
<CAPTION>
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)
<C> <C> <C> <C>
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)
<C> <C> <C> <C>
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
</TABLE>
-18-
<PAGE>
<TABLE>
<CAPTION>
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
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
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)
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
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
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
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.
</TABLE>
-19-
<PAGE>
<TABLE>
<CAPTION>
Knight-Ridder Share Trading
(As quoted by Knight-Ridder Financial Services) (Unaudited)
1994 Third Quarter 1993 Third Quarter
--------------------------------- ------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
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
</TABLE>
-20-
