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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: MARCH 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NO. 1-8598
A. H. BELO CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 75-0135890
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
P. O. BOX 655237
DALLAS, TEXAS 75265-5237
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (214) 977-6606
Former name, former address and former fiscal year,
if changed since last report.
NONE
Indicate by check mark whether 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 (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
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Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS OUTSTANDING AT 4/30/95
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Common Stock, $1.67 par value 19,774,718*
* Consisting of 15,064,924 shares of Series A Common Stock and 4,709,794
shares of Series B Common Stock.
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A. H. BELO CORPORATION
FORM 10-Q/A
TABLE OF CONTENTS
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PAGE
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PART I FINANCIAL INFORMATION
Item 1. Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
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EXLANATORY NOTE:
On May 15 1995, A. H. Belo Corporation (the "Company") filed its Form 10-Q for
the three months ended March 31, 1995 with the Securities and Exchange
Commission pursuant to Section 13 of the Securities Exchange Act of 1934, as
amended. That report contained a typographical error in the Consolidated
Condensed Statements of Cash Flows on page 4. Net earnings for the three months
ended March 31, 1994 were presented as $10,083 (in thousands). The correct net
earnings for the three months ended March 31, 1994 are $10,038 (in thousands).
The Amendment No. 1 on Form 10-Q/A filed herewith replaces and supersedes the
Consolidated Condensed Statements of Cash Flows of the Form 10-Q. No other
changes have been made.
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PART I.
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF EARNINGS
A. H. Belo Corporation and Subsidiaries
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Three months ended March 31,
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In thousands, except per share amounts
(unaudited) 1995 1994
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NET OPERATING REVENUES
Newspaper publishing $ 93,300 $ 82,921
Broadcasting 69,739 49,126
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Total net operating revenues 163,039 132,047
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OPERATING COSTS AND EXPENSES
Salaries, wages and employee benefits 50,230 41,249
Newsprint, ink and other supplies 29,238 25,177
Other production, distribution and operating costs 43,640 36,018
Depreciation 10,314 7,327
Amortization 4,106 3,092
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Total operating costs and expenses 137,528 112,863
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Earnings from operations 25,511 19,184
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OTHER INCOME AND EXPENSE
Interest expense (6,616) (2,820)
Other, net 290 476
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Total other income and expense (6,326) (2,344)
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EARNINGS
Earnings before income taxes 19,185 16,840
Income taxes 7,742 6,802
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Net earnings $ 11,443 $ 10,038
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NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE $ .57 $ .49
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Average shares outstanding 20,133 20,527
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Cash dividends declared per share $ .15 $ .15
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</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
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CONSOLIDATED CONDENSED BALANCE SHEETS
A. H. Belo Corporation and Subsidiaries
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In thousands MARCH 31, December 31,
(Current year unaudited) 1995 1994
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ASSETS
Current assets:
Cash and temporary cash investments $ 10,073 $ 9,294
Accounts receivable, net 94,873 99,825
Other current assets 23,806 21,218
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Total current assets 128,752 130,337
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Property, plant and equipment, at cost:
Land 24,542 19,803
Buildings 135,224 126,632
Newspaper publishing equipment 192,787 188,006
Broadcast equipment 148,286 118,816
Other 45,283 40,369
Advance payments on plant and equipment expenditures 27,662 28,352
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Total property, plant and equipment 573,784 521,978
Less accumulated depreciation (220,064) (209,824)
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Net property, plant and equipment 353,720 312,154
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Excess cost over values assigned to
tangible assets of purchased subsidiaries 520,124 403,268
Other intangibles, net 18,631 18,949
Other assets, at cost 49,933 49,083
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Total assets $1,071,160 $ 913,791
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CONSOLIDATED CONDENSED BALANCE SHEETS (CONTINUED)
A. H. Belo Corporation and Subsidiaries
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In thousands, except share data MARCH 31, December 31,
(Current year unaudited) 1995 1994
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 49,087 $ 62,590
Other current liabilities 22,710 21,147
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Total current liabilities 71,797 83,737
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Long-term debt 494,400 330,400
Deferred income taxes 111,872 110,324
Other liabilities 7,601 6,795
Shareholders' equity:
Preferred stock, $1.00 par value. Authorized
5,000,000 shares; none issued
Common stock, $1.67 par value. Authorized
150,000,000 shares:
Series A: Issued 15,058,454 shares at March 31, 1995
and 14,238,888 shares at December 31, 1994 25,148 23,779
Series B: Issued 4,710,164 shares at March 31, 1995
and 5,621,988 shares at December 31, 1994 7,866 9,389
Additional paid-in capital 125,806 124,431
Retained earnings 232,167 230,959
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Total 390,987 388,558
Deferred compensation - restricted shares (5,497) (6,023)
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Total shareholders' equity 385,490 382,535
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Total liabilities and shareholders' equity $ 1,071,160 $ 913,791
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</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
A. H. Belo Corporation and Subsidiaries
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Three months ended March 31,
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In thousands
(unaudited) 1995 1994
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OPERATIONS
Net earnings $ 11,443 $ 10,038
Adjustments to reconcile net earnings
to net cash provided by operations:
Depreciation and amortization 14,420 10,419
Deferred income taxes 1,952 3,154
Non-cash adjustments and allowances (206) 76
Other, net 544 (74)
Net change in current assets and liabilities:
Accounts receivable 5,246 8,557
Other current assets (2,952) ( 902)
Accounts payable and accrued expenses (14,053) (10,923)
Other current liabilities 2,045 2,997
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Net cash provided by operations 18,439 23,342
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INVESTING
Acquisitions (163,303) (2,000)
Capital expenditures (8,838) (6,771)
Other, net 39 684
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Net cash used for investing (172,102) (8,087)
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FINANCING
Borrowings for acquisition of KIRO-TV 163,313 -
Net proceeds from (payments on) revolving debt 687 (17,000)
Payments to repurchase stock (8,440) -
Payments of dividends on stock (2,986) (3,038)
Net proceeds from exercise of stock options 1,868 3,117
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Net cash provided by (used for) financing 154,442 (16,921)
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Net increase (decrease) in cash and temporary cash investments 779 (1,666)
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Cash and temporary cash investments at beginning of period 9,294 8,943
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Cash and temporary cash investments at end of period $ 10,073 $ 7,277
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SUPPLEMENTAL DISCLOSURES
Interest paid, net of amounts capitalized $ 6,324 $ 3,588
Income taxes paid, net of refunds $ 5,176 $ -
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</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
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NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
A. H. Belo Corporation and Subsidiaries
(1) The unaudited consolidated condensed financial statements as of
March 31, 1995 and for the three-month periods ended March 31, 1995
and 1994 and related notes should be read in conjunction with the
audited consolidated financial statements and related notes as of
December 31, 1994.
(2) In the opinion of A. H. Belo Corporation (the "Company" or "Belo")
management, the accompanying unaudited consolidated condensed
financial statements contain all adjustments necessary to present
fairly the Company's financial position as of March 31, 1995, and its
results of operations and cash flows for the indicated periods. All
such adjustments are of a normal recurring nature.
Certain amounts for the prior periods have been reclassified to
conform to the current year presentation.
(3) On June 1, 1994, Belo acquired the assets of television station
WWL-TV, the CBS affiliate in New Orleans, Louisiana from Rampart
Operating Partnership for approximately $110,000,000 in cash. On
February 1, 1995, Belo acquired Third Avenue Television, Inc., holder
of the assets of television station KIRO-TV in Seattle, Washington.
On the same date, Belo acquired the FCC license of television station
KIRO-TV and certain other related assets from Bonneville Holding
Company. The purchase price was $162,500,000 in cash, plus
transaction costs.
The costs of the acquisitions have been allocated on the basis of the
estimated fair market values of the assets acquired. These
allocations resulted in excess cost over values assigned to tangible
assets of purchased subsidiaries for WWL-TV of $81,673,000 and for
KIRO-TV of $120,643,000. The KIRO-TV purchase allocation is still
preliminary. These amounts are being amortized on a straight line
basis over 40 years.
The pro forma financial results of operations below, which reflect
purchase price adjustments including average revolving debt rates in
effect for the periods presented, assume both the WWL-TV and KIRO-TV
transactions took place effective January 1, 1994 (in thousands):
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Three months ended March 31, 1995 1994
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Net operating revenues $ 166,034 $ 150,988
Net earnings $ 10,611 $ 9,951
Net earnings per share $ .53 $ .48
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A change of 1/8 of one percent in revolving debt rates would affect
the pro forma results by $54,000 after taxes.
The pro forma financial information is provided for informational
purposes only and is not necessarily representative of the operating
results that would have occurred had the acquisitions been completed
as of the indicated dates, nor is it indicative of future operating
results.
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NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
A. H. Belo Corporation and Subsidiaries
(4) During the three months ended March 31, 1995, Belo repurchased 148,000
shares of treasury stock for an aggregate purchase price of
$8,440,000. All of these shares have been retired, resulting in an
$8,440,000 reduction in total shareholders' equity.
(5) On February 22, 1995, the Company announced a two-for-one stock split
in the form of a stock dividend whereby one additional share of Series
A and Series B Common Stock will be issued for each share of Series A
and Series B Common Stock outstanding on May 19, 1995, the record date
for the split. The stock split will be effected on June 9, 1995. The
effect of the stock split will be to double the number of shares
outstanding and reduce earnings per share and other per share amounts
by one-half. Total shareholders' equity and the proportionate
ownership in the Company of individual shareholders will not be
affected by the stock split. All information in this report is set
forth on a pre-split basis.
(6) Net operating revenues, earnings from operations, and depreciation and
amortization by industry segment are shown below (in thousands):
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Three months ended March 31,
1995 1994
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NET OPERATING REVENUES
Newspaper publishing $ 93,300 $ 82,921
Broadcasting 69,739 49,126
Intersegment revenues - -
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$ 163,039 $ 132,047
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EARNINGS FROM OPERATIONS
Newspaper publishing $ 15,468 $ 10,908
Broadcasting 14,140 11,498
Corporate expenses (4,097) (3,222)
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$ 25,511 $ 19,184
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DEPRECIATION AND AMORTIZATION
Newspaper publishing $ 5,385 $ 5,131
Broadcasting 8,864 5,138
Other 171 150
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$ 14,420 $ 10,419
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
A. H. BELO CORPORATION
May 16, 1995 By: /S/Michael D. Perry
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Michael D. Perry
Senior Vice President and
Chief Financial Officer
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