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Previous: COOKER RESTAURANT CORP /OH/, 10-Q, 1995-05-15 |
Next: PHOENIX TECHNOLOGIES LTD, 10-Q, 1995-05-15 |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND 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 AND EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 1-16914
THE E.W. SCRIPPS COMPANY
(Exact name of registrant as specified in its charter)
Delaware 51-0304972
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1105 N. Market Street
Wilmington, Delaware 19801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 478-4141
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
and 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. As of
April 28, 1995 the registrant had outstanding 59,741,319 shares of
Class A Common stock and 20,174,833 shares of Common Voting stock.
<PAGE>
INDEX TO THE E.W. SCRIPPS COMPANY
REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1995
Item No. Page
PART I - FINANCIAL INFORMATION
1 Financial Statements 3
2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 3
PART II - OTHER INFORMATION
1 Legal Proceedings 3
2 Changes in Securities 3
3 Defaults Upon Senior Securities 3
4 Submission of Matters to a Vote of Security Holders 4
5 Other Information 4
6 Exhibits and Reports on Form 8-K 4
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS
The information required by this item is filed as part of this Form 10-
Q. See Index to Financial Information at page F-1 of this Form 10-Q.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The information required by this item is filed as part of this Form 10-
Q. See Index to Financial Information at page F-1 of this Form 10-Q.
PART II
ITEM 1. LEGAL PROCEEDINGS
The Company is involved in litigation arising in the ordinary course
of business, such as defamation actions. In addition, the Company is
involved from time to time in various governmental and administrative
proceedings relating to, among other things, renewal of broadcast
licenses, none of which is expected to result in material loss.
ITEM 2. CHANGES IN SECURITIES
There were no changes in the rights of security holders during the
quarter for which this report is filed.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
There were no defaults upon senior securities during the quarter for
which this report is filed.
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of security holders during
the quarter for which this report is filed.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits
The information required by this item is filed as part of this
Form 10-Q. See Index to Exhibits at page E-1 of this Form 10-Q.
Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which this
report is filed.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
THE E.W. SCRIPPS COMPANY
Dated: May 15, 1995 BY:/s/ Daniel J. Castellini
D. J. Castellini
Senior Vice President, Finance &
Administration
<PAGE>
THE E.W. SCRIPPS COMPANY
Index to Financial Information
Item Page
Consolidated Balance Sheets F-2
Consolidated Statements of Income F-4
Consolidated Statements of Cash Flows F-5
Consolidated Statements of Stockholders' Equity F-6
Notes to Consolidated Financial Statements F-7
Management's Discussion and Analysis of Financial
Condition and Results of Operations F-10
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
<CAPTION>
( in thousands ) As of
March 31, December 31, March 31,
1995 1994 1994
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 28,227 $ 16,609 $ 14,165
Accounts and notes receivable (less
allowances - $5,485, $5,653, $5,543) 143,180 155,917 127,313
Program rights and production costs 27,644 35,073 42,586
Inventories 25,248 22,201 24,868
Refundable income taxes 1,810 25,214
Deferred income taxes 25,092 22,007 18,424
Miscellaneous 20,754 20,007 21,367
Total current assets 271,955 297,028 248,723
Investments 34,308 35,146 66,166
Property, Plant, and Equipment 711,500 713,763 719,216
Goodwill and Other Intangible Assets 609,949 616,113 548,625
Other Assets:
Program rights and production costs (less current portion) 34,476 38,779 45,886
Miscellaneous 10,406 22,131 17,795
Total other assets 44,882 60,910 63,681
TOTAL ASSETS $ 1,672,594 $ 1,722,960 $ 1,646,411
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
<CAPTION>
( in thousands, except share data ) As of
March 31, December 31, March 31,
1995 1994 1994
(Unaudited) (Unaudited)
<S> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 62,582
Accounts payable $ 63,613 $ 131,592 71,959
Customer deposits and unearned revenue 22,194 23,846 20,180
Accrued liabilities:
Employee compensation and benefits 30,208 32,648 31,058
Artist and author royalties 10,306 8,177 11,141
Copyright and programming costs 7,341 7,522 6,718
Interest 2,129 1,999 3,186
Income taxes 3,264 2,507 13,515
Miscellaneous 47,792 50,533 37,349
Total current liabilities 186,847 258,824 257,688
Deferred Income Taxes 152,059 150,968 172,716
Long-Term Debt (less current portion) 110,455 110,431 151,560
Other Long-Term Obligations and Minority Interests 118,007 119,269 195,570
Stockholders' Equity:
Preferred stock, $.01 par - authorized: 25,000,000 shares;
none outstanding
Common stock, $.01 par:
Class A - authorized: 120,000,000 shares; issued and
outstanding: 59,715,019, 59,671,242,
and 54,596,643 shares 597 597 546
Voting - authorized: 30,000,000 shares; issued and
outstanding: 20,174,833 shares 202 202 202
Total 799 799 748
Additional paid-in capital 249,173 248,098 98,272
Retained earnings 843,535 823,204 750,852
Unrealized gains on securities available for sale 12,430 12,518 19,110
Unvested restricted stock awards (1,981) (2,036) (899)
Foreign currency translation adjustment 1,270 885 794
Total stockholders' equity 1,105,226 1,083,468 868,877
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,672,594 $ 1,722,960 $ 1,646,411
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
( in thousands, except share data ) Three months ended
March 31,
1995 1994
<S> <C> <C>
Operating Revenues:
Advertising $ 108,251 $ 100,744
Circulation 31,320 29,556
Other newspaper revenue 12,036 11,737
Total newspapers 151,607 142,037
Broadcast television 66,968 60,353
Cable television 66,995 62,385
Entertainment 26,694 20,978
Total operating revenues 312,264 285,753
Operating Expenses:
Employee compensation and benefits 94,822 88,123
Program rights and production costs 32,737 27,224
Newsprint and ink 26,871 20,657
Other operating expenses 74,164 68,622
Depreciation 22,121 21,412
Amortization of intangible assets 7,665 7,613
Total operating expenses 258,380 233,651
Operating Income 53,884 52,102
Other Credits (Charges):
Interest expense (3,487) (4,659)
Miscellaneous, net 1,627 122
Net other credits (charges) (1,860) (4,537)
Income Before Income Taxes and Minority Interests 52,024 47,565
Provision for Income Taxes 21,975 20,352
Income Before Minority Interests 30,049 27,213
Minority Interests 935 2,116
Net Income $ 29,114 $ 25,097
Per Share of Common Stock:
Net income $0.36 $0.34
Dividends declared $0.11 $0.11
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
( in thousands ) Three months ended
March 31,
1995 1994
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $ 29,114 $ 25,097
Adjustments to reconcile net income
to net cash flows from operating activities:
Depreciation and amortization 29,786 29,025
Deferred income taxes (1,947) 1,535
Minority interests in income of subsidiary companies 935 2,116
Changes in certain working capital accounts, net of effects
from subsidiary companies purchased and sold (35,834) 13,772
Miscellaneous, net 18,260 3,037
Net operating activities 40,314 74,582
Cash Flows from Investing Activities:
Additions to property, plant, and equipment (20,331) (20,433)
Purchase of subsidiary companies and investments (2,074) (18,131)
Sale of subsidiary companies and investments 2,711
Miscellaneous, net 742 2,762
Net investing activities (18,952) (35,802)
Cash Flows from Financing Activities:
Payments on long-term debt (13) (33,814)
Dividends paid (8,783) (8,223)
Dividends paid to minority interests (421) (885)
Miscellaneous, net (527) (299)
Net financing activities (9,744) (43,221)
Increase (Decrease) in Cash and Cash Equivalents 11,618 (4,441)
Cash and Cash Equivalents:
Beginning of year 16,609 18,606
End of period $ 28,227 $ 14,165
Supplemental Cash Flow Disclosures:
Interest paid, excluding amounts capitalized $ 3,323 $ 4,307
Income taxes paid (refunded) (903) 12,208
Increase in program rights and related liabilities 5,762 6,713
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
<CAPTION>
( in thousands, except share data )
Unrealized
Gains on Unvested Foreign
Additional Securities Restricted Currency
Common Paid-in Retained Available Stock Translation
Stock Capital Earnings for Sale Awards Adjustment
<S> <C> <C> <C> <C> <C> <C>
Balances at December 31, 1993 $ 748 $ 97,945 $ 733,978 $ 27,381 $ (1,009) $ 592
Net income 25,097
Dividends: declared and
paid - $.11 per share (8,223)
Class A Common shares issued pursuant to
compensation plans, net:
12,550 shares issued,
and 2,402 shares repurchased 270
Tax benefits on compensation plans 57
Amortization of restricted stock awards 110
Foreign currency translation adjustment 202
Increase (decrease) in unrealized gains
on securities available for sale, net
of deferred income taxes of ($4,454) (8,271)
Balances at March 31, 1994 $ 748 $ 98,272 $ 750,852 $ 19,110 $ (899) $ 794
Balances at December 31, 1994 $ 799 $ 248,098 $ 823,204 $ 12,518 $ (2,036) $ 885
Net income 29,114
Dividends: declared and
paid - $.11 per share (8,783)
Class A Common shares issued pursuant to
compensation plans, net:
58,500 shares issued,
and 14,723 shares repurchased 811 (86)
Tax benefits on compensation plans 264
Amortization of restricted stock awards 141
Foreign currency translation adjustment 385
Increase (decrease) in unrealized gains
on securities available for sale, net
of deferred income taxes of ($47) (88)
Balances at March 31, 1995 $ 799 $ 249,173 $ 843,535 $ 12,430 $ (1,981) $ 1,270
See notes to consolidated financial statements.
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
_____________________________________________________________________________
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation - The financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Except as disclosed herein, there has been no material change
in the information disclosed in the notes to consolidated
financial statements included in the Company's Annual Report
on Form 10-K for the year ended December 31, 1994. Financial
information as of December 31, 1994 included in these
financial statements has been derived from the audited
consolidated financial statements included in that report.
In management's opinion all adjustments (consisting of normal
recurring accruals) necessary for a fair presentation of the
interim periods have been made.
Results of operations for the three-month period ended March
31, 1995 are not necessarily indicative of the results that
may be expected for future interim periods or for the year
ended December 31, 1995.
Net Income Per Share - Net income per share computations are
based upon the weighted average common shares outstanding.
The weighted average common shares outstanding were as
follows:
<TABLE>
<CAPTION>
( in thousands ) Three months ended
March 31,
1995 1994
<S> <C> <C>
Weighted average shares outstanding 79,854 74,762
</TABLE>
Reclassification - For comparison purposes certain 1994 items
have been reclassified to conform with 1995 classifications.
<PAGE>
2.ACQUISITIONS AND DIVESTITURES
A.Acquisitions
1995 - The Company acquired a cable television system.
1994 - The Company acquired Cinetel Productions (an
independent producer of programs for cable television).
The following table presents additional information about the
acquisitions:
<TABLE>
<CAPTION>
( in thousands ) Three months ended
March 31,
1995 1994
<S> <C> <C>
Goodwill and other intangible assets acquired $ 85 $ 3,245
Other assets acquired 47 14,725
Cash paid $ 132 $ 17,970
</TABLE>
The acquisitions have been accounted for as purchases, and
accordingly purchase prices were allocated to assets and
liabilities based on the estimated fair value as of the dates
of acquisition. The acquired operations have been included in
the consolidated statements of income from the dates of
acquisition. Pro forma results are not presented because the
combined results of operations would not be significantly
different from the reported amounts.
B.Divestitures
1995 - The Company sold its Watsonville, California, daily newspaper.
<PAGE>
3.LONG-TERM DEBT
Long-term debt consisted of the following:
<TABLE>
<CAPTION>
( in thousands ) As of
March 31, December 31, March 31,
1995 1994 1994
<S> <C> <C> <C>
Variable Rate Credit Facilities $ 54,200
7.375% notes, due in 1998 $ 61,198 $ 61,161 99,301
9.0% notes, due in 1996 47,000 47,000 50,000
8.5% notes, payable through 1994 8,334
Other notes 2,257 2,270 2,307
Total long-term debt 110,455 110,431 214,142
Current portion of long-term debt 62,582
Long-term debt (less current portion) $ 110,455 $ 110,431 $ 151,560
Weighted average interest rate on Variable Rate
Credit Facilities at balance sheet date 3.5%
</TABLE>
The Company has a Competitive Advance/Revolving Credit Agreement
which expires in September 1995 and permits maximum borrowings up
to $50,000,000, and additional lines of credit totaling $20,000,000
which expire at various dates through June 1995 (collectively
"Variable Rate Credit Facilities"). Maximum borrowings under the
Variable Rate Credit Facilities are changed as the Company's
anticipated needs change and are not indicative of the Company's
short-term borrowing capacity. The Variable Rate Credit Facilities
may be extended upon mutual agreement.
Certain long-term debt agreements contain maintenance requirements
on net worth and coverage of interest expense and restrictions on
dividends and incurrence of additional indebtedness.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Consolidated results of operations were as follows:
<TABLE>
<CAPTION>
( in thousands, except per share data ) Year-to-Date
1995 Change 1994
<S> <C> <C> <C>
Operating revenues:
Newspapers $ 151,313 7.2 % $ 141,210
Broadcast television 66,968 11.0 % 60,353
Cable television 66,995 7.4 % 62,385
Entertainment 26,694 27.2 % 20,978
Continuing operations 311,970 9.5 % 284,926
Divested operations 294 827
Total operating revenues $ 312,264 $ 285,753
Operating income:
Newspapers $ 29,522 5.0 % $ 28,118
Broadcast television 16,296 3.2 % 15,790
Cable television 13,464 41.4 % 9,525
Entertainment (844) 2,045
Corporate (4,446) (3,277)
Continuing operations 53,992 3.4 % 52,201
Divested operations (108) (99)
Total operating income 53,884 52,102
Interest expense (3,487) (4,659)
Miscellaneous, net 1,627 122
Income taxes (21,975) (20,352)
Minority interest (935) (2,116)
Net income $ 29,114 16.0 % $ 25,097
Net income per share of common stock $ .36 5.9 % $ .34
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
( in thousands ) Year-to-Date
1995 Change 1994
<S> <C> <C> <C>
Other Financial and Statistical Data:
Total advertising revenues $ 178,813 9.9 % $ 162,634
Advertising revenues as a
percentage of total revenues 57.3 % 57.1 %
EBITDA:
Newspapers $ 38,629 4.4 % $ 36,987
Broadcast television 22,515 8.1 % 20,820
Cable television 27,187 12.0 % 24,267
Entertainment (276) 2,242
Corporate (4,280) (3,129)
Continuing operations $ 83,775 3.2 % $ 81,187
Effective income tax rate 42.2 % 42.8 %
Weighted average shares outstanding 79,854 6.8 % 74,762
Total capital expenditures $ 20,331 (0.5)% $ 20,433
</TABLE>
Interest expense decreased as a result of reduced borrowings.
Minority interests decreased as a result of the September 1994
acquisition of the remaining minority interest in Scripps Howard
Broadcasting Company.
Earnings before interest, income taxes, depreciation, and amortization
("EBITDA") is included in the discussion of segment results because:
Changes in depreciation and amortization are often unrelated to
current performance. Management believes the year-over-year
change in EBITDA is a more useful measure of year-over-year
performance than the change in operating income because, combined
with information on capital spending plans, it is a more reliable
indicator of results that may be expected in future periods.
Banks and other lenders use EBITDA to determine the Company's
borrowing capacity.
Financial analysts use EBITDA to value communications media
companies.
Acquisitions of communications media businesses are based on
multiples of EBITDA.
EBITDA should not, however, be construed as an alternative measure of
the amount of the Company's income or cash flows from operating
activities.
The Company sold its Watsonville, California, daily newspaper in the
first quarter of 1995.
Operating results, excluding the Watsonville newspaper, are presented
on the following pages. The results of the divested operation are
excluded from the segment operating results because management
believes it is not relevant to understanding the Company's ongoing
operations.
<PAGE>
NEWSPAPERS - Operating results for the newspaper segment, excluding
the Watsonville newspaper, were as follows:
<TABLE>
<CAPTION>
( in thousands, except newsprint information ) Year-to-Date
1995 Change 1994
<S> <C> <C> <C>
Operating revenues:
Local $ 46,815 3.9 % $ 45,046
Classified 42,094 13.5 % 37,072
National 3,889 (2.4)% 3,985
Preprint 15,225 8.6 % 14,018
Newspaper advertising 108,023 7.9 % 100,121
Circulation 31,270 6.3 % 29,414
Joint operating agency distributions 10,173 4.2 % 9,766
Other 1,847 (3.2)% 1,909
Total operating revenues 151,313 7.2 % 141,210
Operating expenses:
Employee compensation and benefits 54,780 1.4 % 54,005
Newsprint and ink 26,846 30.4 % 20,583
Other 31,058 4.8 % 29,635
Depreciation and amortization 9,107 2.7 % 8,869
Total operating expenses 121,791 7.7 % 113,092
Operating income $ 29,522 5.0 % $ 28,118
Other Financial and Statistical Data:
Earnings before interest,
income taxes, depreciation,
and amortization ("EBITDA") $ 38,629 4.4 % $ 36,987
Percent of operating revenues:
Operating income 19.5 % 19.9 %
EBITDA 25.5 % 26.2 %
Capital expenditures $ 3,194 (47.4)% $ 6,073
Advertising inches:
Local 1,706 (0.1)% 1,707
Classified 2,559 8.2 % 2,366
National 83 6.4 % 78
Total full run ROP 4,348 4.7 % 4,151
Newsprint information:
Consumption (in tonnes) 47,724 1.4 % 47,055
Weighted average cost per tonne $ 541 29.1 % $ 419
</TABLE>
<PAGE>
EBITDA for the newspaper division improved as increased advertising
revenues and cost control measures more than offset the sharp rise in
the price of newsprint. Advertising revenues and volume increased at
most of the Company's newspapers.
Newsprint prices are expected to increase further in 1995. Based on
price increases announced by suppliers, including an increase
effective May 1995, the average price of newsprint for the 1995 full-
year period will be approximately 40% higher than in 1994.
BROADCAST TELEVISION - Operating results for the broadcast television
segment were as follows:
<TABLE>
<CAPTION>
( in thousands ) Year-to-
Date
1995 Change 1994
<S> <C> <C> <C>
Operating revenues:
Local $ 35,256 8.5 % $ 32,487
National 27,668 9.3 % 25,325
Political 61 362
Other 3,983 82.8 % 2,179
Total operating revenues 66,968 11.0 % 60,353
Operating expenses:
Employee compensation and benefits 21,710 21.0 % 17,938
Program rights 10,350 (13.9)% 12,026
Other 12,393 29.5 % 9,569
Depreciation and amortization 6,219 23.6 % 5,030
Total operating expenses 50,672 13.7 % 44,563
Operating income $ 16,296 3.2 % $ 15,790
Other Financial and Statistical Data:
Earnings before interest,
income taxes, depreciation,
and amortization ("EBITDA") $ 22,515 8.1 % $ 20,820
Percent of operating revenues:
Operating income 24.3 % 26.2 %
EBITDA 33.6 % 34.5 %
Capital expenditures $ 4,318 60.4 % $ 2,692
</TABLE>
Revenues increased sharply at the Company's Phoenix and Tampa
television stations. The Company negotiated 10-year affiliation
agreements with ABC to replace those stations' Fox affiliations in
1994. The Company also entered into a 10-year affiliation with NBC in
Kansas City in 1994, replacing that station's Fox affiliation. The
increase in employee costs, other expenses, depreciation and
amortization, and capital expenditures is due primarily to the
Company's expanded schedules of local news programs at the former Fox
affiliates. The decrease in program rights expense is due to the
availability of more network programming at the former Fox affiliates.
Depreciation and amortization also increased as a result of the
acquisition of the remaining minority interest in Scripps Howard
Broadcasting Company.
<PAGE>
CABLE TELEVISION - In March 1995 the Company announced plans to
evaluate strategic options for its cable television division and
engaged Merrill Lynch & Company to assist with the process. The
Company intends to develop a long-term strategy which could include
seeking joint ventures with other cable operators, selling some or all
of the Company's current systems, or acquiring additional systems.
Operating results for the cable television segment were as follows:
<TABLE>
<CAPTION>
( in thousands, except per subscriber information ) Year-to-Date
1995 Change 1994
<S> <C> <C> <C> <C>
Operating revenues:
Basic services $ 44,314 8.0 % $ 41,037
Premium programming services 12,503 4.2 % 11,997
Other monthly service 4,364 3.6 % 4,214
Advertising 2,582 19.5 % 2,160
Installation and miscellaneous 3,232 8.6 % 2,977
Total operating revenues 66,995 7.4 % 62,385
Operating expenses:
Employee compensation and benefits 11,002 4.3 % 10,549
Program costs 17,191 15.1 % 14,939
Other 11,615 (8.0)% 12,630
Depreciation and amortization 13,723 (6.9)% 14,742
Total operating expenses 53,531 1.3 % 52,860
Operating income $ 13,464 41.4 % $ 9,525
Other Financial and Statistical Data:
Earnings before interest,
income taxes, depreciation,
and amortization ("EBITDA") $ 27,187 12.0 % $ 24,267
Percent of operating revenues:
Operating income 20.1 % 15.3 %
EBITDA 40.6 % 38.9 %
Capital expenditures $ 7,693 (33.2)% $ 11,521
Average number of basic subscribers 746.1 5.7 % 705.8
Average monthly revenue
per basic subscriber $ 29.93 1.6 % $ 29.46
Homes passed at end of period 1,176.1 2.5 % 1,147.8
Basic subscribers at end of period 752.1 5.7 % 711.3
Penetration rate 63.9 % 62.0 %
</TABLE>
<PAGE>
ENTERTAINMENT - Operating results for the entertainment segment were
as follows:
<TABLE>
<CAPTION>
( in thousands ) Year-to-Date
1995 Change 1994
<S> <C> <C> <C>
Operating revenues:
Licensing $ 15,482 (2.1)% $ 15,808
Syndication 4,424 (6.2)% 4,714
Advertising 1,240
Film and television programming 5,548 456
Total operating revenues 26,694 27.2 % 20,978
Operating expenses:
Employee compensation and benefits 4,595 43.4 % 3,205
Artists' royalties 10,285 (3.3)% 10,641
Programming and production costs 5,196 259
Other 6,894 48.9 % 4,631
Depreciation and amortization 568 188.3 % 197
Total operating expenses 27,538 45.4 % 18,933
Operating income $ (844) (141.3)% $ 2,045
Other Financial and Statistical Data:
Earnings before interest,
income taxes, depreciation,
and amortization ("EBITDA") $ (276) (112.3)% $ 2,242
Percent of operating revenues:
Operating income (3.2)% 9.7 %
EBITDA (1.0)% 10.7 %
Capital expenditures $ 4,193 $ 31
</TABLE>
The Company acquired Cinetel Productions in Knoxville, Tennessee, on
March 31, 1994. Cinetel is one of the largest independent producers
of programs for cable television. Cinetel's results of operations are
included in the Entertainment segment from the date of acquisition.
The year-over-year change in the exchange rate for the Japanese yen
increased licensing revenues $700,000.
Operating losses for the Home & Garden Television network ("HGTV")
totaled $3,200,000 in 1995 and $300,000 in 1994.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow from operating activities was $40,000,000 in 1995 compared
to $75,000,000 in 1994.
Cash flow from operating activities in 1995 was used primarily for
capital expenditures of $20,300,000, acquisitions and investments of
$2,100,000, and dividend payments of $9,200,000.
The Company expects to finance its capital requirements and investment
in HGTV primarily through cash flow from operations.
<PAGE>
THE E.W. SCRIPPS COMPANY
Index to Exhibits
Exhibit
No.
Item Page
12 Ratio of Earnings to Fixed Charges E-2
<PAGE>
<TABLE>
RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12
<CAPTION>
( in thousands ) Three months ended
March 31,
1995 1994
<S> <C> <C>
EARNINGS AS DEFINED:
Earnings from operations before income taxes after
eliminating undistributed earnings of 20%- to
50%-owned affiliates $ 57,089 $ 48,674
Fixed charges excluding capitalized interest and
preferred stock dividends of majority-owned
subsidiary companies 4,851 6,000
Earnings as defined $ 61,940 $ 54,674
FIXED CHARGES AS DEFINED:
Interest expense, including amortization of
debt issue costs $ 3,487 $ 4,659
Interest capitalized 33
Portion of rental expense representative
of the interest factor 1,364 1,147
Preferred stock dividends of majority-owned
subsidiary companies 20 20
Share of interest expense related to guaranteed debt
50%-owned affiliated company 194
Fixed charges as defined $ 4,904 $ 6,020
RATIO OF EARNINGS TO FIXED CHARGES 12.63 9.08
</TABLE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<PERIOD-TYPE> 3-MOS
<CASH> 28,227
<SECURITIES> 34,308
<RECEIVABLES> 148,665
<ALLOWANCES> 5,485
<INVENTORY> 25,248
<CURRENT-ASSETS> 271,955
<PP&E> 1,277,925
<DEPRECIATION> 566,425
<TOTAL-ASSETS> 1,672,594
<CURRENT-LIABILITIES> 186,847
<BONDS> 0
0
0
<COMMON> 799
<OTHER-SE> 1,104,427
<TOTAL-LIABILITY-AND-EQUITY> 1,672,594
<SALES> 312,264
<TOTAL-REVENUES> 312,264
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 258,380
<LOSS-PROVISION> 1,862
<INTEREST-EXPENSE> 3,487
<INCOME-PRETAX> 52,024
<INCOME-TAX> 21,975
<INCOME-CONTINUING> 29,114
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,114
<EPS-PRIMARY> $0.36
<EPS-DILUTED> $0.36
</TABLE>
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