<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 10-Q
(Mark One)
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1997
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------------- ----------------
COMMISSION FILE NUMBER 1-9329
-----------------------------
PULITZER PUBLISHING COMPANY
(Exact name of registrant as specified in its charter)
----------------------------------------------------
DELAWARE 430496290
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
900 NORTH TUCKER BOULEVARD, ST. LOUIS, MISSOURI 63101
(Address of principal executive offices)
(314) 340-8000
(Registrant's telephone number, including area code)
NO CHANGES
(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 (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 / /
------------------------------------------
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
CLASS OUTSTANDING 4/30/97
-------------------- -------------------
COMMON STOCK 6,554,342
CLASS B COMMON STOCK 15,513,992
================================================================================
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE DATA)
<TABLE>
<CAPTION>
First Quarter Ended
March 31,
--------------------------------
OPERATING REVENUES - NET: 1997 1996
--------------- ---------------
<S> <C> <C>
Publishing: (Unaudited)
Advertising $ 53,927 $ 39,913
Circulation 22,434 19,039
Other 9,474 7,237
Broadcasting 50,171 49,517
Total operating revenues -------- --------
136,006 115,706
-------- --------
OPERATING EXPENSES:
Publishing operations 34,533 32,938
Broadcasting operations 16,994 16,271
Selling, general and administrative 45,782 39,492
St. Louis Agency adjustment 4,929 1,758
Depreciation and amortization 9,183 6,741
Total operating expenses -------- --------
111,421 97,200
-------- --------
Operating income 24,585 18,506
Interest income 1,595 1,428
Interest expense (4,525) (2,389)
Net other expense (465) (708)
-------- --------
INCOME BEFORE PROVISION FOR INCOME
TAXES 21,190 16,837
PROVISION FOR INCOME TAXES 8,695 6,596
-------- --------
NET INCOME $ 12,495 $ 10,241
======== ========
EARNINGS PER SHARE OF STOCK
(COMMON AND CLASS B COMMON) $ 0.57 $ 0.47
======== ========
WEIGHTED AVERAGE NUMBER OF SHARES
(COMMON AND CLASS B COMMON STOCK
OUTSTANDING) 22,029 21,864
======== ========
</TABLE>
See notes to consolidated financial statements.
2
<PAGE> 3
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED FINANCIAL POSITION
(IN THOUSANDS)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
----------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 99,732 $ 73,052
Trade accounts receivable (less allowance for doubtful
accounts of $2,842 and $2,576) 71,795 80,010
Inventory 5,328 4,976
Prepaid expenses and other 7,821 5,650
Program rights 5,549 8,452
-------- --------
Total current assets 190,225 172,140
-------- --------
PROPERTIES:
Land 14,692 14,692
Buildings 79,340 78,733
Machinery and equipment 210,937 209,854
Construction in progress 3,922 2,071
-------- --------
Total 308,891 305,350
Less accumulated depreciation 155,220 149,418
-------- --------
Properties - net 153,671 155,932
-------- --------
INTANGIBLE AND OTHER ASSETS:
Intangible assets - net of applicable amortization 295,010 298,305
Receivable from The Herald Company 39,229 39,955
Other 12,963 17,519
-------- --------
Total intangible and other assets 347,202 355,779
-------- --------
TOTAL $691,098 $683,851
======== ========
</TABLE>
(Continued)
3
<PAGE> 4
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED FINANCIAL POSITION
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-------------- --------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $12,797 $13,355
Current portion of long-term debt 14,705 14,705
Salaries, wages and commissions 11,541 14,897
Income taxes payable 7,003 1,267
Program contracts payable 6,095 8,916
Interest payable 3,569 7,177
Pension obligations 2,123 2,123
Acquisition payable 9,804 9,804
Other 7,471 4,566
-------- --------
Total current liabilities 75,108 76,810
-------- --------
LONG-TERM DEBT 235,410 235,410
-------- --------
PENSION OBLIGATIONS 24,572 23,415
-------- --------
POSTRETIREMENT AND POSTEMPLOYMENT
BENEFIT OBLIGATIONS 92,285 92,252
-------- --------
OTHER LONG-TERM LIABILITIES 5,758 6,027
-------- --------
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; 25,000,000 shares
authorized; issued and outstanding - none
Common stock, $.01 par value; 100,000,000 shares authorized;
issued - 6,571,946 in 1997 and 6,498,215 in 1996 66 65
Class B common stock, convertible, $.01 par value; 50,000,000
shares authorized; issued - 27,214,842 in 1997 and 1996 272 272
Additional paid-in capital 130,464 129,173
Retained earnings 315,047 308,283
-------- --------
Total 445,849 437,793
Treasury stock - at cost; 23,400 and 22,811 shares of common
stock in 1997 and 1996, respectively, and 11,700,850 shares
of Class B common stock in 1997 and 1996 (187,884) (187,856)
-------- --------
Total stockholders' equity 257,965 249,937
-------- --------
TOTAL $691,098 $683,851
======== ========
(Concluded)
</TABLE>
See notes to consolidated financial statements.
4
<PAGE> 5
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
First Quarter Ended
March 31,
--------------------------------
1997 1996
--------------- ---------------
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $12,495 $ 10,241
Adjustments to reconcile net income to net cash provided by
operating activities:
Non-cash items:
Depreciation 5,802 4,781
Amortization of intangibles 3,381 1,960
Increase in postretirement and postemployment
benefit obligations 33 478
Changes in assets and liabilities which provided (used) cash:
Trade accounts receivable 8,215 4,640
Inventory (352) 1,203
Other assets (2,053) (460)
Trade accounts payable and other liabilities (6,392) (3,787)
Income taxes payable 5,736 4,657
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 26,865 23,713
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (3,554) (4,570)
Decrease (increase) in notes receivable 4,965 (4,993)
-------- --------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,411 (9,563)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (2,859) (2,458)
Proceeds from exercise of stock options 1,291 497
Purchase of treasury stock (28)
-------- --------
NET CASH USED IN FINANCING ACTIVITIES (1,596) (1,961)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS 26,680 12,189
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 73,052 100,380
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $99,732 $112,569
======== ========
</TABLE>
See notes to consolidated financial statements.
5
<PAGE> 6
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. ACCOUNTING POLICIES
Interim Adjustments - In the opinion of management, the accompanying
unaudited consolidated financial statements contain all adjustments,
consisting only of normal recurring adjustments, necessary to present
fairly Pulitzer Publishing Company's financial position as of March 31,
1997 and the results of operations and cash flows for the three month
periods ended March 31, 1997 and 1996. Results of operations for interim
periods are not necessarily indicative of the results to be expected for
the full year.
Fiscal Year and Fiscal Quarters - The Company's fiscal year and first
fiscal quarter end on the Sunday coincident with or prior to December 31
and March 31, respectively. For ease of presentation, the Company has
used December 31 as the year end and March 31 as the first quarter end.
Earnings Per Share of Stock - Earnings per share of stock have been
computed using the weighted average number of common and Class B common
shares outstanding during the applicable period.
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, Earnings per Share ("SFAS 128").
This statement simplifies the standards for computing earnings per share
("EPS"), making them comparable to international standards, and supersedes
Accounting Principles Board Opinion No. 15, Earnings Per Share("APB 15").
SFAS 128 replaces the presentation of primary EPS with a presentation of
basic EPS. The statement also requires dual presentation of basic and
diluted EPS on the face of the income statement for all entities with
complex capital structures and requires a reconciliation of the numerator
and denominator of the basic EPS computation to the numerator and
denominator of the diluted EPS computation. This statement is effective
for the Company's financial statements to be issued for the year ending
December 31, 1997. After the effective date, all prior period EPS data
presented must be restated to conform to the provisions of SFAS 128.
The adoption of SFAS 128 is not expected to have a significant impact on
the Company's earnings per share.
2. DIVIDENDS
In the first quarter of 1996, two dividends of $0.1125 per share were
declared, payable on February 1, 1996 and May 1, 1996. In the second
quarter of 1996, a dividend of $0.1125 per share was declared, payable on
August 1, 1996. In the third quarter of 1996, a dividend of $0.12 per
share was declared, payable on November 1, 1996.
In the first quarter of 1997, two dividends of $0.13 per share were
declared, payable on February 3, 1997 and May 1, 1997.
6
<PAGE> 7
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
In addition, a four-for-three stock split (payable in the form of a 33.3
percent common and Class B common stock dividend) was declared by the
Company's Board of Directors on September 12, 1996. The dividend was
distributed on November 1, 1996 to stockholders of record on October 10,
1996. The Company's capital balances and share amounts have been adjusted
to reflect the split
3. BUSINESS SEGMENTS
The Company's operations are divided into two business segments, publishing
and broadcasting. The following is a summary of operating data by segment
(in thousands):
<TABLE>
<CAPTION>
First Quarter Ended
March 31,
----------------------------------
1997 1996
---------------- ----------------
(Unaudited)
<S> <C> <C>
Operating revenues:
Publishing (a) $ 85,835 $ 66,189
Broadcasting 50,171 49,517
-------- --------
Total $136,006 $115,706
======== ========
Operating income (loss):
Publishing (a) $ 11,150 $ 4,798
Broadcasting 14,819 14,995
Corporate (1,384) (1,287)
-------- --------
Total $ 24,585 $ 18,506
======== ========
Depreciation and amortization:
Publishing (a) $ 3,349 $ 1,122
Broadcasting 5,834 5,619
-------- --------
Total $ 9,183 $ 6,741
======== ========
Operating margins
(Operating income to revenues):
Publishing (a) (b) 18.7% 9.9%
Broadcasting 29.5% 30.3%
</TABLE>
(a) Publishing operations for 1997 include the results of
Scripps League Newspapers, Inc.(subsequently renamed Pulitzer
Community Newspapers, Inc.), which was acquired on July 1,
1996. See Note 4.
(b) Operating margins for publishing stated with St. Louis
Agency adjustment added back to publishing operating income.
7
<PAGE> 8
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
4. ACQUISITION OF PROPERTIES
During 1996, the Company acquired in a purchase transaction all of the
stock of Scripps League Newspapers, Inc. ("Scripps League"), a privately
owned company that publishes a group of community newspapers, including 14
dailies, which serve smaller markets, primarily in the West and Midwest.
The purchase price of approximately $216 million (including acquisition
costs) includes all of the operating assets of the newspapers, working
capital of approximately $6 million and intangibles. The acquisition was
financed by long-term borrowings of $135 million and cash of approximately
$81 million (approximately $69 million net of cash acquired). The
Company's Statement of Consolidated Income for the three-month period ended
March 31, 1997 includes the operating results of Scripps League
(subsequently renamed Pulitzer Community Newspapers, Inc.).
The following supplemental unaudited pro forma information shows the
results of operations of the Company for the three-month period ended March
31, 1996 adjusted for the acquisition of Scripps League, assuming such
transaction and the related debt financing had been consummated at the
beginning of the period presented. The unaudited pro forma financial
information is not necessarily indicative either of results of operations
that would have occurred had the transaction occurred at the beginning of
the period presented or of future results of operations (in thousands,
except per share amounts).
First Quarter Ended March 31, 1996 (Unaudited):
Operating revenues - net $131,490
========
Operating income $ 19,800
========
Net income $ 8,497
========
Earnings per share of stock (common
and Class B common) $ 0.39
========
Weighted average number of shares (common
and Class B common stock outstanding) 21,864
========
8
<PAGE> 9
PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
5. STOCK PURCHASE PLAN
Subsequent to the end of the first quarter, on April 24, 1997, the
Company's stockholders approved the adoption of the Pulitzer Publishing
Company 1997 Employee Stock Purchase Plan (the "Plan"). The Plan allows
eligible employees to authorize payroll deductions for the periodic
purchase of the Company's Common Stock ("Common Stock") at a price
generally equal to 85 percent of the Common Stock's fair market value.
In general, other than Michael E. Pulitzer, all employees of the Company
and its subsidiaries are eligible to participate in the Plan after
completing at least one year of service. Subject to appropriate adjustment
for stock splits and other capital changes, the Company may sell a total of
500,000 shares of its Common Stock under the Plan. Shares sold under the
Plan may be authorized and unissued or held by the Company in its treasury.
The Company may purchase shares for resale under the Plan.
6. LITIGATION
The Company and its subsidiaries are defendants in a number of lawsuits,
some of which claim substantial amounts. While the results of litigation
cannot be predicted, management believes the ultimate outcome of such
litigation will not have a material adverse effect on the consolidated
financial statements of the Company and its subsidiaries.
9
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Statements in this Quarterly Report on Form 10-Q concerning the Company's
business outlook or future economic performance, anticipated profitability,
revenues, expenses or other financial items, together with other statements
that are not historical facts, are "forward-looking statements" as that term is
defined under the Federal Securities Laws. Forward-looking statements are
subject to risks, uncertainties and other factors which could cause actual
results to differ materially from those stated in such statements. Such risks,
uncertainties and factors include, but are not limited to, industry
cyclicality, the seasonal nature of the business, changes in pricing or other
actions by competitors or suppliers, and general economic conditions, as well
as other risks detailed in the Company's filings with the Securities and
Exchange Commission including this Quarterly Report on Form 10-Q.
GENERAL
The Company's operating revenues are significantly influenced by a number
of factors, including overall advertising expenditures, the appeal of
newspapers, television and radio in comparison to other forms of advertising,
the performance of the Company in comparison to its competitors in specific
markets, the strength of the national economy and general economic conditions
and population growth in the markets served by the Company.
The Company's business tends to be seasonal, with peak revenues and
profits generally occurring in the fourth and, to a lesser extent, second
quarters of each year as a result of increased advertising activity during the
Christmas and spring holiday periods. The first quarter is historically the
weakest quarter for revenues and profits.
CONSOLIDATED
Operating revenues for the first quarter of 1997 increased 17.5 percent,
to $136 million from $115.7 million for the first quarter of 1996. The revenue
comparison was affected by the acquisition of Scripps League (subsequently
renamed Pulitzer Community
10
<PAGE> 11
Newspapers, Inc. ("PCN")) on July 1, 1996. Excluding PCN from 1997,
consolidated revenues would have increased 3.6 percent for the first quarter.
The increase reflected gains in both publishing and broadcasting.
Operating expenses, excluding the St. Louis Agency adjustment, for the
1997 first quarter increased 11.6 percent, to $106.5 million from $95.4 million
in the first quarter of 1996. Excluding PCN from 1997, consolidated expenses
would have decreased 3 percent. The current year decrease was attributable to
lower newsprint costs of $3.9 million and a decrease in purchased supplements
of $861,000, partially offset by a $1.1 million increase in overall personnel
costs.
Operating income in the 1997 first quarter increased 32.8 percent, to
$24.6 million from $18.5 million in the first quarter of 1996. Excluding PCN
from 1997, consolidated operating income would have increased 21 percent. The
1997 increase reflected higher operating income in the publishing segment,
resulting from increased advertising revenues and lower newsprint costs.
Interest expense increased to $4.5 million in the 1997 first quarter from
$2.4 million in the first quarter of 1996 due to higher debt levels. Interest
expense on new long-term borrowings related to the acquisition of Scripps
League amounted to approximately $2.4 million for the first quarter. The
Company's average debt level for the 1997 first quarter increased to $250.1
million from $128.8 million in the first quarter of 1996. The Company's
average interest rate for the first quarter of 1997 decreased slightly to 7.2
percent from 7.4 percent in the 1996 first quarter. Interest income increased
$167,000 due to higher average interest rates in the 1997 first quarter.
The effective income tax rate for the first quarter of 1997 increased to
41 percent from 39.2 percent in the prior year quarter, due to approximately $1
million of nondeductible goodwill amortization related to the Scripps League
acquisition. It is
11
<PAGE> 12
expected that, on an annual basis, the effective tax rate for 1997 will be in
the 41 percent range.
Net income in the 1997 first quarter increased 22 percent to $12.5
million, or $0.57 per share, compared with $10.2 million, or $0.47 per share,
in the first quarter of 1996. The gain in net income reflected an increase in
the publishing segment's operating profits, primarily as a result of higher
advertising revenues and lower newsprint costs.
PUBLISHING
Operating revenues from the Company's publishing segment for the first
quarter of 1997 increased 29.7 percent, to $85.8 million from $66.2 million in
the first quarter of 1996. Excluding PCN from 1997, publishing revenues would
have increased 5.3 percent for the first quarter. The gain reflected increases
in classified and retail advertising revenues at both the St. Louis
Post-Dispatch ("Post-Dispatch") and The Arizona Daily Star ("Star").
Excluding PCN from 1997, newspaper advertising revenues, increased $3.7
million, or 9.2 percent, in the first quarter of 1997. The significant portion
of the current year increase resulted from higher classified and retail
advertising revenue at both the Post-Dispatch and Star. Full run advertising
volume (linage in inches) increased 2.7 percent at the Post-Dispatch and 4.8
percent at Star for the first quarter of 1997. In the fourth quarter of 1996
and the first quarter of 1997, varying rate increases were implemented at the
Post-Dispatch, Star and most of the Company's new community newspaper
properties.
Excluding PCN from 1997, circulation revenues for the first quarter were
unchanged from the prior year at $19 million. The Post-Dispatch and Star
experienced
12
<PAGE> 13
only slight fluctuations in paid circulation and average rates in the first
quarter of 1997 compared to the prior year.
Operating expenses (including selling, general and administrative expenses
and depreciation and amortization) for the publishing segment, excluding the
St. Louis Agency adjustment, increased 17 percent to $69.8 million for the 1997
first quarter compared to $59.6 million for the same period in the prior year.
Excluding PCN from 1997, operating expenses would have declined 6.4 percent.
The decrease, on a comparable basis, reflected the impact of lower newsprint
prices which reduced newsprint costs by $3.9 million and a decrease in
purchased supplements of $861,000.
Operating income from the Company's publishing activities for the first
quarter of 1997 increased 132.4 percent to $11.2 million from $4.8 million.
Excluding PCN from 1997, operating income would have increased 86.8 percent,
due primarily to increased advertising revenues and lower newsprint costs.
Fluctuations in the price of newsprint significantly impact the results of
the Company's publishing segment, where newsprint expense accounts for
approximately 20 percent of the segment's total operating costs. For the first
quarter of 1997, excluding PCN, the Company's average cost for newsprint was
approximately $525 per metric ton, compared to $750 per metric ton in the 1996
first quarter and $645 per metric ton for the full year of 1996. During March
and April 1997, supplier price increases raised the Company's cost of
newsprint to the range of $540 to $575 per metric ton, which will be reflected
in second quarter operating results. On an annual basis, the Company's 1996
newsprint cost and metric tons consumed, after giving effect to the St. Louis
Agency adjustment and excluding PCN, were approximately $30.7 million and
47,751 metric tons, respectively.
13
<PAGE> 14
BROADCASTING
Broadcasting operating revenues for the first quarter of 1997 increased
1.3 percent, to $50.2 million from $49.5 million in the first quarter of 1996.
Local spot advertising increased 5.4 percent while national spot advertising
decreased 3.6 percent. The decrease in national advertising reflected the
impact of a $1.1 million decline in political advertising in the first quarter
of 1997.
Broadcasting operating expenses (including selling, general and
administrative expenses and depreciation and amortization) for the first
quarter of 1997 increased 2.4 percent, to $35.4 million from $34.5 million in
the first quarter of the prior year. The increase was primarily attributable to
higher overall personnel costs of approximately $742,000.
Operating income from the broadcasting segment declined 1.2 percent to
$14.8 million from $15 million, due primarily to the current year decrease in
political advertising revenue.
LIQUIDITY AND CAPITAL RESOURCES
Outstanding debt, inclusive of the short-term portion of long-term debt,
as of March 31, 1997, was $250.1 million, unchanged from the balance at
December 31, 1996. The Company's borrowings consist primarily of fixed-rate
senior notes with The Prudential Insurance Company of America ("Prudential")
and a $50 million variable rate credit agreement with The First National Bank
of Chicago, as Agent, for a group of lenders ("FNBC"). Subsequent to the end
of the first quarter, on April 8, 1997, the Company repaid $12 million of the
FNBC borrowings. In addition, on April 22, 1997, the Company made the final
scheduled repayment of $14.5 million under its 8.8 percent Senior Note
Agreement with Prudential.
14
<PAGE> 15
The Company's Senior Note Agreements with Prudential and FNBC Credit
Agreement require it to maintain certain financial ratios, place restrictions
on the payment of dividends and prohibit new borrowings, except as permitted
thereunder.
As of March 31, 1997, commitments for capital expenditures were
approximately $12.7 million, relating to normal capital equipment replacements
and the cost of a new facility for the Flagstaff, Arizona newspaper property.
Capital expenditures to be made in fiscal 1997 are estimated to be in the range
of $25 to $30 million. Commitments for film contracts and license fees as of
March 31, 1997 were approximately $23.5 million. In addition, as of March 31,
1997, the Company had capital contribution commitments of approximately $3.4
million related to investments in two unconsolidated limited partnerships.
As of March 31, 1997, the Company had entered into purchase agreements to
acquire the assets of two radio stations (one in Louisville, KY and one in
Winston-Salem, NC) for a combined purchase price of approximately $2.9 million
("Radio Acquisitions").
At March 31, 1997, the Company had working capital of $115.1 million and a
current ratio of 2.53 to 1. This compares to working capital of $95.3 million
and a current ratio of 2.24 to 1 at December 31, 1996.
The Company from time to time considers acquisitions of broadcasting,
newspaper and other properties when favorable investment opportunities are
identified. Other than the Radio Acquisitions, the Company has no agreements
to acquire additional properties. In the event an investment opportunity is
identified, management expects that it would be able to arrange financing on
terms and conditions satisfactory to the Company.
15
<PAGE> 16
The Company generally expects to generate sufficient cash from operations
to cover ordinary capital expenditures, film contract and license fees, working
capital requirements, debt installments and dividend payments.
16
<PAGE> 17
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------------------------------------------
(a) The following exhibit is filed as part of this report:
27 Financial Data Schedule
The following exhibit is incorporated herein by reference to Exhibit
4.1 of the Company's Form S-8 Registration Statement No. 333-26329
dated May 1, 1997:
10.1 Pulitzer Publishing Company 1997 Employee Stock Purchase Plan
(b) Reports on Form 8-K. The Company did not file any reports on Form 8-K
during the quarter for which this report was filed.
All other items of this report are not applicable for the current quarter.
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.
PULITZER PUBLISHING COMPANY
(Registrant)
Date: May 13, 1997 /s/ Ronald H. Ridgway
---------------------------------------
(Ronald H. Ridgway)
Director; Senior Vice-President-Finance
(on behalf of the Registrant and
as principal financial officer)
17
<PAGE> 18
EXHIBIT INDEX
EXHIBIT NUMBER TITLE OR DESCRIPTION
27 Financial Data Schedule
18
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 99,732
<SECURITIES> 0
<RECEIVABLES> 74,637
<ALLOWANCES> 2,842
<INVENTORY> 5,328
<CURRENT-ASSETS> 190,225
<PP&E> 308,891
<DEPRECIATION> 155,220
<TOTAL-ASSETS> 691,098
<CURRENT-LIABILITIES> 75,108
<BONDS> 235,410
0
0
<COMMON> 338
<OTHER-SE> 445,511
<TOTAL-LIABILITY-AND-EQUITY> 691,098
<SALES> 136,006
<TOTAL-REVENUES> 136,006
<CGS> 51,527
<TOTAL-COSTS> 51,527
<OTHER-EXPENSES> 9,183
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,525
<INCOME-PRETAX> 21,190
<INCOME-TAX> 8,695
<INCOME-CONTINUING> 12,495
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,495
<EPS-PRIMARY> 0.57
<EPS-DILUTED> 0
</TABLE>
