SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported: October 27, 1999
THE READER'S DIGEST ASSOCIATION, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-10434 13-1726769
(State or other juris- (Commission File (I.R.S. Employer
diction of incorporation Number) Identification No.)
or organization)
Pleasantville, New York 10570-7000
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code:
(914) 238-1000
Page 1 of __ pages.
ITEM 5. Other Events.
Filed herewith as Exhibit 99.1 is a copy of the
company's news release, issued today, relating to the Company's
Earnings Release for the quarter ended September 30, 1999.
ITEM 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(a) Financial statements of business acquired
Not applicable
(b) Pro forma financial information
Not applicable
(c) Exhibits
Number Description
99.1 Press Release of The Reader's Digest
Association, Inc. dated October 27, 1999
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 hereunto duly authorized.
THE READER'S DIGEST ASSOCIATION, INC.
(Registrant)
Date: October 27, 1999
/s/GEORGE S. SCIMONE
George S. Scimone
Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release of The Reader's Digest
Association, Inc. dated October 27, 1999
Table 1 of 2
The Reader's Digest Association, Inc. and Subsidiaries
Consolidated Condensed Statements of Income
Three-month periods ended September 30,
1999 and 1998 (a)
(In millions, except per share data) September 30, Percentage
(unaudited) 1999 1998 Change
Revenues $519.2 $579.7 (10%)
Product, distribution and editorial 182.6 217.2 (16%)
expenses
Promotion, marketing and administrative 297.8 345.9 (14%)
expenses
Operating profit 38.8 16.6 134%
Other income (expense), net 7.0 (12.6) N/M
Income before provision for income taxes 45.8 4.0 N/M
Provision for income taxes 17.2 1.5 N/M
Income before cumulative effect of
change in accounting principles 28.6 2.5 N/M
Cumulative effect of change in
accounting principles
for pension assets (net of tax --- 25.3 N/M
provision of $15.2)
Net income $28.6 $27.8 2.9%
Weighted average common shares 107.4 107.2 ---
outstanding
Basic and diluted earnings per share:
Before cumulative effect of change in $0.26 $0.02 N/M
accounting principles
Cumulative effect of change in --- 0.24 N/M
accounting principles
Basic and diluted earnings per share $0.26 $0.26 ---
Dividends per common share $0.05 $0.225 (78%)
N/M - Not meaningful.
(a) The company reports on a fiscal year beginning July 1. The three-month
periods ended September 30, 1999 and 1998 are the first fiscal quarters
of fiscal year 2000 and fiscal year 1999, respectively. Operating
results for any interim period are not necessarily indicative of the
results for an entire year.
Table 2 of 2
The Reader's Digest Association, Inc. and Subsidiaries
Revenues and Operating Profit by Business Segments
Three-month periods ended September 30, 1999 and 1998
(In millions) September 30, Percentage
(unaudited) 1999 1998 Change
REVENUES
Global Books and Home Entertainment $319.7 $375.4 (15%)
U.S. Magazines 118.0 124.5 (5%)
International Magazines 72.6 79.4 (9%)
Other Businesses 8.9 0.4 N/M
Total Revenues $519.2 $579.7 (10%)
OPERATING PROFIT (LOSS)
Global Books and Home Entertainment $40.9 $17.2 138%
U.S. Magazines 3.4 4.3 (21%)
International Magazines 0.8 (4.8) 117%
Other Businesses (6.3) (0.1) N/M
Total Operating Profit $38.8 $16.6 134%
N/M - Not meaningful.
