<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November, 1999
HOLLINGER INC.
(Translation of registrant's name into English)
10 Toronto Street
Toronto, Ontario M5C 2B7
CANADA
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F Form 40-F x
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No x
1
<PAGE> 2
EXHIBIT LIST
<TABLE>
<CAPTION>
Exhibit Description
<S> <C>
99.1 Interim Report of Hollinger Inc. for the nine months ended
September 30, 1999
</TABLE>
2
<PAGE> 3
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.
Date: December 6, 1999
HOLLINGER INC.
by: /s/ Charles G. Cowan, Q.C.
--------------------------
Name: Charles G. Cowan, Q.C.
Title: Vice-President and Secretary
3
<PAGE> 1
EXHIBIT 99.1
3 Interim Report
9 Months Ended September 30, 1999
HOLLINGER INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
NINE MONTHS ENDED SEPTEMBER 30
<TABLE>
<CAPTION>
1999 1998
(millions of dollars)
<S> <C> <C>
Total revenue 2,393.2 2,432.3
Net earnings 152.2 59.5
Cash flow provided by operations (note) 191.9 288.1
(dollars)
Net earnings per retractable common share 4.45 1.78
Cash flow provided by operations per
retractable common share (note) 5.61 8.66
</TABLE>
NOTE
Cash flow provided by operations is before any increase or decrease in non-cash
operating working capital, the cash used for discontinued operations, other
costs and foreign currency translation adjustment.
Throughout this report, Hollinger Inc. is referred to as "Hollinger" or the
"Company", Hollinger International Inc. is referred to as "Hollinger
International Inc." or "Hollinger International", Hollinger Canadian Publishing
Holdings Inc. is referred to as "HCPH", and Hollinger Canadian Newspapers,
Limited Partnership is referred to as "Hollinger L.P." The word "company" refers
to one or other of Hollinger Inc.'s subsidiary companies, depending on the
context.
Reference to "dollars " and "$" are to Canadian dollars, "U.S. $" are to United
States dollars and "pounds sterling" and "(pound)" are tO lawful currency of the
United Kingdom.
"EBITDA" means earnings before interest, taxes, depreciation and amortization.
<PAGE> 2
TO THE SHAREHOLDERS
THIRD QUARTER RESULTS
A net loss in the third quarter of 1999 amounted to $3.9 million or a loss of
$0.11 per share compared with a loss of $23.3 million or $0.71 per share in
1998. Net earnings for the nine months ended September 30, 1999 amounted to
$152.2 million or $4.45 per share compared with $59.5 million or $1.78 per share
in 1998. Excluding the effect of unusual items, a net loss of $21.1 million or a
loss of $0.57 per share was incurred in the third quarter of 1999 compared with
a net loss of $11.3 million or $0.34 per share for 1998.
The results for the third quarter compared to last year have been affected by a
few significant matters.
The start up in October 1998 of the National Post has resulted in an
EBITDA loss from the National Post for the third quarter of $20.9
million. This loss is greater than initially expected because
circulation has been higher than anticipated without, yet, delivering
the inevitable advertising revenue. The release in October of Canadian
readership and circulation statistics by the independent research
company, Newspaper Audience Databank Inc. (NADbank) confirmed the high
circulation and market share of the National Post in its first full year
of operation. Promotional spending at the National Post was increased in
the third quarter to take advantage in the fourth quarter of the release
of this independent circulation data. The fourth quarter is
traditionally a strong quarter for newspapers.
Approximately 45 United States Community group newspapers which
contributed $16.2 million to EBITDA in the third quarter of 1998 were
sold in February 1999.
A stronger Canadian dollar versus both the pound sterling and United
States dollar in the third quarter of 1999 compared with the third
quarter 1998 has been reflected in lower translated results at both
United States newspapers and United Kingdom newspaper groups.
Increased Internet activity in the area of Internet site development and
operation has resulted in lower EBITDA by $4.0 million in the third
quarter of 1999 compared with $2.0 million in 1998.
<PAGE> 3
Interest expense in total for the quarter was $59.5 million compared
with $62.6 million in 1998, a reduction of $3.1 million. Included in
interest expense are dividends on Series II and Series III exchangeable
non-voting preference shares as required under accounting rules for
financial instruments. In May 1999, at the Initial Period Expiry date,
the Series II shares changed in nature to "mirror shares" which track a
fixed number of Class A Common Shares of Hollinger International. This
effectively reduced the dividend from 7% per annum to the equivalent
Class A Common Share dividend. In addition, in June 1999 the Company
redeemed approximately 13 million Series II preference shares and during
the third quarter many holders of Series II preference shares have
exchanged their shares for Class A Common Shares of Hollinger
International. These events have resulted in a significantly lower third
quarter Series II dividend compared with 1998. Average debt levels of
the Hollinger group excluding the Series II and Series III preference
shares are higher than in the third quarter of 1998 resulting in
increased interest expense which has partly offset the lower Series II
dividend. This increased debt level results primarily from the
acquisition of the remaining Southam shares in early 1999.
With the acquisition of the remainder of Southam Inc. in February 1999,
all of the earnings of Southam Inc. are now attributable to the Company
compared with the third quarter of 1998, when a substantial minority
still existed.
Unusual items in the third quarter of 1999 consisted primarily of a gain on sale
of community newspapers by Hollinger International and an accounting gain on the
issue of limited partnership units. Unusual items in the third quarter of 1998
consisted principally of the gains at Southam on the sale of the Kitchener and
Hamilton papers, gains on the sale of the Guelph and Cambridge papers, an
accounting loss on the dilution of the investment in Southam and a provision
against the cost of an investment. Virtually all of these 1998 third quarter
unusual items net of taxes related to the minority shareholders in Southam since
the book values of Hollinger's share of the assets sold were adjusted to market
value when the Southam shares were purchased. As a result, the effect of unusual
items on third quarter 1998 net income was largely eliminated by the related
minority interest charge.
<PAGE> 4
More detailed information about the operations of Hollinger International Inc.
and its subsidiaries is contained in Form 10-Q which has been filed by that
company with the United States Securities and Exchange Commission.
NATIONAL POST
At the end of October, 1999, the long-awaited independent research conducted by
Newspaper Audience Databank Inc. (NADbank) confirmed the phenomenal success of
the National Post. According to the results, more than 1,477,700 Canadians read
the National Post each week. Despite having launched the National Post only a
year ago, this number is very close to the Post's main competitor, the 155
year-old The Globe and Mail. In the sixteen markets that NADbank reports on, the
National Post enjoyed a spectacular showing, with a weekday readership of
810,400, while the Globe lost 16% of its readership nationally to arrive at a
figure of 844,700.
Hollinger was especially pleased to report the results for the highly
competitive market of Metropolitan Toronto, where the numbers show the National
Post had established a market share nearly as big as The Globe and Mail, largely
by gaining readers at the expense of the Globe and The Toronto Star.
HOLLINGER INTERNATIONAL INC.
Hollinger International's operations are composed of the U.S. Newspapers Group
consisting of the Chicago Group (including the Chicago Sun-Times) and the
Community Group (American Publishing Company and The Jerusalem Post), the U.K.
Newspaper Group, including the Telegraph Group Limited, and the Canadian
Newspaper Group (held by HCPH) consisting of the interests in Southam Inc.,
Hollinger L.P., Sterling Newspapers Company and UniMedia Inc.
During the third quarter of 1999, Hollinger International continued to
repurchase shares of its Class A Common Stock with approximately 9 million
shares repurchased through the end of the third quarter 1999.
<PAGE> 5
TELEGRAPH GROUP LIMITED
The company's EBITDA for the nine months ended September 30, 1999 was
(pound)34.0 million compared to (pound)32.3 million during the corresponding
period in 1998, an increase of 5%. Advertising revenue has continued to increase
despite the ongoing slowdown in recruitment advertising year-on-year. Display
advertising continued to perform strongly during the third quarter, as did the
separate Travel and Property sections.
The ABC net circulation figure for The Daily Telegraph for the period April 1999
to September 1999 was 1,043,848, more than 300,000 copies ahead of its nearest
competitor. The ABC net circulation figure for The Sunday Telegraph for the
period April to September 1999 was 822,163.
The Electronic Telegraph retained its circulation lead over all other British
online newspapers with a daily audience of around 70,000 people. During the
quarter, there were significant new revenue contributions from both sponsorship
and electronic commerce via online retail partnerships.
Electronic Telegraph also became the first newspaper in Interactive Television
in the UK through a strategic partnership with a cable TV network supplier. As
part of the review of other available delivery channels, a text-based news
headlines service was launched on CNN's Text channel.
THE CHICAGO GROUP
Third quarter 1999 operating revenue increased 5% over the third quarter of
1998, primarily due to growth in advertising revenue at the Chicago Sun-Times.
Third quarter 1999 EBITDA increased 14% primarily due to the increase in revenue
and a decrease in newsprint costs.
THE COMMUNITY GROUP
In February 1999, the Community Group sold approximately 45 newspapers which had
a total paid daily circulation of approximately 296,000. This resulted in an
overall decrease in Community Group operating revenue, EBITDA and operating
income. On a "same store" basis, the Community Group third quarter 1999
operating revenue increased 1% from 1998 and third quarter 1999 EBITDA increased
17% from 1998. The increase in EBITDA is mainly due to a 16% decrease in
newsprint costs.
CANADIAN NEWSPAPER GROUP
Third quarter 1998 results included the results of the Hamilton Spectator, The
Record Kitchener-Waterloo, the Cambridge Reporter and the Guelph Mercury which
were sold in September of 1998. 1999 results include the Victoria Times-Colonist
and several Vancouver Island weekly newspapers acquired in 1998 and the National
Post which commenced operations in October 1998.
<PAGE> 6
On September 26, 1999 Hollinger L.P. acquired The Record in Sherbrooke, Quebec,
a daily newspaper with a paid circulation of 5,500. This acquisition was funded
by the sale of The Port Elgin Beacon-Times, The Wiarton Echo and the
Lloydminster Times.
On a same newspaper basis, third quarter total operating revenue increased 5%
and EBITDA decreased 2.1% in 1999 from 1998. The gross profit percentage
decreased from 18.6% in 1998 to 17.3% in 1999. The effects of the year-over-year
increase in revenue were more than offset by increased Internet losses and
promotional expenditures.
INTERNET INVESTMENTS
In addition to the Internet sites being developed and operated as part of
newspaper operations, five investments totaling over $20 million were added to
Hollinger's Internet portfolio during the third quarter. This portfolio now
represents a total investment of approximately $96 million. Included among these
minority investments are Trip.com, handbag.com, Interactive Investor
International, Third Age, Tobjobs.net, Vault.com, Stockhouse.com and Newsalert,
Inc.
YEAR 2000 COMPUTER CONCERNS
At the time of writing all mission critical and high priority systems have been
found to be Y2K compliant or have been made so or have been replaced with Y2K
compliant systems. At a few divisions installation of these systems is
continuing and will be completed before year end. In these cases the systems
involved are systems that have been installed at other locations and have been
fully tested at those locations. For all lower priority systems compliance has
been achieved and tested or work is continuing. In these latter cases plans are
in place to work around possible problems. Contact has been made with all
important suppliers to ensure that they have taken the necessary steps to ensure
that they will be able to continue to operate without interruption. The
additional cost to complete all installation and testing is estimated to be less
than $2 million and will be financed from operations.
RETRACTION PRICE OF RETRACTABLE COMMON SHARES
The retraction price of the outstanding retractable common shares of the Company
as of October 7, 1999 was $13.00 per share.
GENERAL
At September 30, 1999, Hollinger's publishing interests included 76 daily
newspapers and 311 non-daily newspapers. Total paid daily circulation, including
The Daily Telegraph and the Chicago Sun-Times, was approximately 4.0 million.
The total circulation of the non-dailies was approximately 7.0 million. Web
sites are operated at all of the major newspapers. Through its Hollinger Digital
subsidiary, it operates the Canada.com national portal site, a variety of other
specialized sites and has taken investment positions in various Internet-based
companies.
<PAGE> 7
DIVIDENDS
A regular quarterly dividend of 15(cent) per retractable common share has been
declared payable on December 10, 1999 to shareholders of record on November 25,
1999.
November 19, 1999 Conrad M. Black
Chairman of the Board and
Chief Executive Officer
<PAGE> 8
MARKET VALUE INFORMATION BALANCE SHEET
(in thousands of dollars except where noted)
<TABLE>
<CAPTION>
SEPTEMBER 30 December 31
1999 1998
(not audited)
<S> <C> <C>
ASSETS
Investment in Hollinger International $ 869,740 $1,152,124
Other investments 13,317 19,311
Other assets 33,545 83,517
$ 916,602 $1,254,952
LIABILITIES
Exchangeable shares $ 301,451 $ 547,804
Other liabilities 311,546 343,491
612,997 891,295
NET ASSETS REPRESENTING SHAREHOLDERS' EQUITY
Capital stock 315,232 240,434
Net unrealized appreciation of investments 159,814 419,667
Net unrealized decrease (increase) in liabilities 23,292 (16,175)
Deficit (194,733) (280,269)
303,605 363,657
$ 916,602 $1,254,952
RETRACTABLE COMMON SHARES OUTSTANDING 37,196,415 32,941,072
NET ASSET VALUE PER RETRACTABLE COMMON SHARE $ 8.16 $ 11.04
</TABLE>
STATEMENT OF INCOME AND EXPENSES
(not audited)
(in thousands of dollars)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1999 1998
<S> <C> <C>
INCOME
Dividends $ 82,120 $ 78,180
Interest and other 5,030 1,319
Net management fees 8,790 8,400
95,940 87,899
EXPENSES
Administrative and other expenses 7,895 7,533
Interest expense 34,446 50,842
42,341 58,375
Income before the undernoted 53,599 29,524
Unusual items 22,256 (1,644)
Income tax expense (3,730) (2,168)
Net income for the period $ 72,125 $ 25,712
EARNINGS PER RETRACTABLE COMMON SHARE $ 2.11 $ 0.76
</TABLE>
<PAGE> 9
SCHEDULE OF SEGMENTED EARNINGS
(not audited)
(in thousands of dollars)
<TABLE>
<CAPTION>
U.K. CANADIAN CORPORATE
CHICAGO COMMUNITY NEWSPAPER NEWSPAPER AND CONSOLIDATED
GROUP GROUP GROUP GROUP OTHER TOTAL
THREE MONTHS ENDED SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C> <C>
Sales revenue $143,459 $30,159 $201,734 $378,966 $ 125 $ 754,443
Cost of sales
and expenses 122,343 22,690 164,851 342,020 7,561 659,465
Income before
interest, taxes,
depreciation and
amortization 21,116 7,469 36,883 36,946 (7,436) 94,978
Depreciation and
amortization 8,401 2,389 15,047 29,130 1,791 56,758
Operating
income (loss) $ 12,715 $ 5,080 $ 21,836 $ 7,816 $ 9,227) $ 38,220
THREE MONTHS ENDED SEPTEMBER 30, 1998
Sales revenue $139,852 82,061 $ 204,637 $ 362,948 $ 3,718 $793,216
Cost of sales
and expenses 120,972 59,993 169,607 297,829 6,670 655,071
Income before
interest, taxes,
depreciation and
amortization 18,880 22,068 35,030 65,119 (2,952) 138,145
Depreciation and
amortization 6,395 9,036 15,860 21,803 1,824 54,918
Operating
income (loss) $ 12,485 $13,032 $ 19,170 $ 43,316 $ (4,776) $ 83,227
</TABLE>
<PAGE> 10
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
<TABLE>
<CAPTION>
SEPTEMBER 30 December 31
1999 1998
(not audited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 102,339 $ 128,061
Accounts receivable 503,647 584,503
Inventory 44,761 56,294
650,747 768,858
INVESTMENTS 102,663 75,242
CAPITAL ASSETS 4,016,752 4,129,445
GOODWILL AND OTHER ASSETS 921,318 730,956
$5,691,480 $5,704,501
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 311,102 $ 232,128
Accounts payable and accrued expenses 551,662 792,669
Income taxes payable 90,128 2,465
Current portion of long-term debt 225,531 183,150
Exchangeable shares (note 1) 181,120 496,766
1,359,543 1,707,178
LONG-TERM DEBT 2,260,527 2,229,599
EXCHANGEABLE SHARES 156,064 51,038
3,776,134 3,987,815
MINORITY INTEREST AND DEFERRED CREDITS 1,772,126 1,783,854
SHAREHOLDERS' EQUITY
Capital stock 315,232 240,434
Deficit (170,432) (306,181)
144,800 (65,747)
Equity adjustment from foreign currency translation (1,580) (1,421)
143,220 (67,168)
$5,691,480 $5,704,501
</TABLE>
NOTE
1. As a result of setting the exchange number for the Series II preference
shares, these shares are now exchangeable into Class A common stock of
Hollinger International Inc. which had a market value of $145.4 million at
September 30, 1999.
The balance above includes a deferred unrealized gain of $35.7 million which
would be recognized to the extent of any future preference share retractions.
<PAGE> 11
CONSOLIDATED STATEMENT OF EARNINGS
(not audited)
(in thousands of dollars)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1999 1998 1999 1998
<S> <C> <C> <C> <C>
REVENUE
Sales $ 754,443 $ 793,216 $2,377,435 $2,419,519
Investment and other income 2,850 4,869 15,786 12,790
757,293 798,085 2,393,221 2,432,309
EXPENSES
Cost of sales and expenses 659,465 655,071 1,983,066 1,933,812
Depreciation and amortization 56,758 54,918 172,006 154,131
Interest expense 59,465 62,635 184,350 174,914
775,688 772,624 2,339,422 2,262,857
NET EARNINGS (LOSS) IN EQUITY ACCOUNTED
COMPANIES 152 (75) 1,057 (793)
NET FOREIGN CURRENCY (LOSSES) GAINS (888) (520) 2,984 1,366
EARNINGS (LOSS) BEFORE THE UNDERNOTED . (19,131) 24,866 57,840 170,025
Unusual items 27,105 115,981 474,601 409,204
Income taxes (7,285) (95,740) (214,549) (289,356)
Minority interest (4,586) (68,381) (165,714) (230,364)
NET EARNINGS (LOSS) $ (3,897) $ (23,274) $152,178 $ 59,509
</TABLE>
<TABLE>
<CAPTION>
(dollars) (dollars)
<S> <C> <C> <C> <C>
NET EARNINGS (LOSS) PER RETRACTABLE
COMMON SHARE (note 2)
Basic $(0.11) $(0.71) $4.45 $1.78
Fully diluted $(0.11) $(0.71) $3.80 $1.50
CASH FLOW PROVIDED BY OPERATIONS PER
RETRACTABLE COMMON SHARE (note 1)
Basic $0.79 $2.30 $5.61 $8.66
Fully diluted $0.79 $2.30 $5.30 $6.47
</TABLE>
NOTES TO THE CONSOLIDATED STATEMENT OF EARNINGS
1. Cash flow provided by operations per retractable common share is based on
cash flow provided by operations which is before any increase or decrease in
non-cash operating working capital, the cash used by discontinued operations,
prepaid subscription program and other costs and foreign currency translation
adjustment. 2. Earnings per retractable common share is based on earnings
applicable to retractable common shares reduced by an equity accretion in
respect of the equity-linked convertible securities.
<PAGE> 12
RECONCILIATION TO UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
(not audited)
(in thousands of Canadian dollars)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1999 1998 1999 1998
NET EARNINGS
<S> <C> <C> <C> <C>
NET EARNINGS (LOSS) FOR THE PERIOD
BASED ON CANADIAN GAAP $(3,897) $(23,274) $152,178 $ 59,509
Capitalization of betterments,
net of related amortization (3,260) (3,163) (8,191) (10,536)
Acquired tax losses 167 176 505 508
Start-up costs, net of amortization
and write-offs 39 214 120 641
Business combinations (note 4) 233 233 699 699
Foreign exchange (note 2) 2,452 (66) 2,452 (196)
Compensation to employees (285) (277) (832) (796)
Adjustment to tax provision - 11,100 - 15,100
Financial instruments (notes 3 and 8) 4,346 9,674 21,552 29,427
Settlement of convertible
securities (note 6) - - - 492
NET EARNINGS (LOSS) FOR THE
PERIOD BASED ON U.S. GAAP $ (205) $ (5,383) $168,483 $ 94,848
EARNINGS PER SHARE (dollars) (dollars)
NET EARNINGS PER RETRACTABLE COMMON
SHARE AND COMMON EQUIVALENT SHARE
Earnings from continuing
operations (notes 5 and 7) $(0.10) $(0.42) $4.60 $2.05
Net earnings $(0.10) $(0.42) $4.37 $2.06
NET EARNINGS PER RETRACTABLE
COMMON SHARE - ASSUMING FULL DILUTION
Earnings from continuing
operations (notes 5 and 7) $(0.10) $(0.42) $4.14 $1.70
Net earnings $(0.10) $(0.42) $3.91 $1.71
</TABLE>
NOTES TO THE RECONCILIATION TO UNITED STATES GAAP.
1. The above represents additional information to the Consolidated Statement of
Earnings of the Company which was prepared in accordance with Canadian GAAP. Set
out above are the material adjustments (net of deferred income taxes, minority
interest and foreign exchange rate adjustments where applicable) to net earnings
for the nine months ended September 30, 1999 and September 30, 1998 and the
three months ended September 30, 1999 and September 30, 1998 in order to conform
to accounting principles generally accepted in the United States.
2. Under Canadian GAAP, the unrealized foreign exchange gain or loss on the
translation of the U.S. dollar Liquid Yield Option Notes (LYONs) into Canadian
dollars which was not considered a hedge against a U.S. dollar investment was
being deferred or amortized over the term of the notes. Under U.S. GAAP this
exchange gain or loss was expensed in the immediately.
3. Under the accounting standards for financial instruments, a portion of
certain of the Company's convertible instruments are classified as equity rather
than debt. Under U.S. GAAP, no portion of the convertible instruments would be
classified as equity and the related interest expense on the equity component
would be classified as an interest expense rather than as a dividend equivalent.
In addition, Canadian GAAP requires the carrying value of the debt component of
an instrument be increased over time to its settlement amount on maturity,
through a charge to interest expense. Under U.S. GAAP, no portion of the
instrument would be classified as equity and accordingly this adjustment to
interest expense is not required. Canadian GAAP also requires the value ascribed
to certain subsidiary special shares be increased over the life of the shares to
the Company's optional cash settlement amount through a periodic charge to
earnings. Under U.S. GAAP the shares are recorded at their fair value on the
date of issue and such a charge to increase their carried amount is not
required.
4. U.S. GAAP requires that the transfer of the Canadian Newspaper Group be
accounted for at historical values using "as-if pooling of interests"
accounting, resulting in no gain on the sale of properties and no additional
amount being ascribed to circulation.
5. A loss on extinguishment of debt can be classified as an extraordinary item
under U.S. GAAP, but not under Canadian GAAP.
6. Cash payments on conversion of the LYONS are treated as capital transactions
under Canadian GAAP. Under U.S. GAAP, the gain or loss on cash settlement must
be reflected in income.
7. A gain or loss on settlement of convertible securities can be classified as
an extraordinary item under U.S. GAAP.
8. U.S GAAP earnings for the three months and nine months ended September 30,
1998 and for the six months ended June 30, 1999 have been increased by
$8,497,000, $26,332,000 and $15,396,000 respectively as a result of a
restatement to include the effects of dividends accrued on the Series I, II, and
III preference shares which are treated as interest expense under Canadian GAAP,
but as dividends paid under U.S. GAAP. This adjustment had no impact on U.S.
GAAP earnings per share.
<PAGE> 13
TRANSFER AGENTS AND REGISTRARS
Retractable Common Shares, Series II and III Preference Shares: Montreal Trust
Company of Canada, Toronto, Montreal and Vancouver, Canada The Bank of Nova
Scotia Trust Company of New York New York, New York, U.S.A.
Warrants to Purchase Retractable Common Shares of Hollinger Inc.:
Montreal Trust Company of Canada, Toronto
STOCK EXCHANGE LISTINGS
The Retractable Common Shares are listed on the Toronto, Montreal, and Vancouver
stock exchanges (stock symbol HLG.C), and are also quoted on The NASDAQ Stock
Market (trading symbol HLGCF). The Series II and III Preference Shares are
listed on the Toronto, Montreal and Vancouver stock exchanges (trading symbols
HLG.PR.B and HLG. PR.C, respectively). The Warrants to Purchase Retractable
Common Shares are not listed on any stock exchange. INVESTOR INFORMATION Holders
of the Company's securities and other interested parties seeking information
about the Company should communicate with the Executive Vice-President and Chief
Financial Officer, at 10 Toronto Street, Toronto, Ontario M5C 2B7, Tel (416)
363-8721, Fax (416) 364-0832.
SHARE INFORMATION
For information relating to Retractable Common Shares and Series II and III
Preference Shares holdings, dividends, lost share certificates, etc., please
communicate with: Montreal Trust Company of Canada, Tel: (416) 981-9500 or
1-800-663-9097 (toll free in Canada and U.S.) Fax: (416) 981-9800
<TABLE>
MAJOR ELECTRONIC WEB SITES
<S> <C> <C>
Hollinger International http://www.hollinger.com Telegraph http://www.telegraph.co.uk
http://www.UKMax.com http://www.thebestofbritish.com
Chicago Sun-Times http://www.suntimes.com
Chicago Network http://www.chicago-news.com
Jerusalem Post http://jpost.co.il
Southam http://www.canada.com UniMedia
http://www.unimedia.ca Star-Phoenix
http://www.saskstar.sk.ca Leader-Post
http://www.leader-post.sk.ca
</TABLE>
VERSION FRANCAISE
Pour recevoir ce rapport en francais s'adresser a : Compagnie Montreal Trust du
Canada, 151, rue Front ouest, 8e etage, Toronto (Ontario) M5J 2N1.
10 Toronto Street, Toronto, Ontario, M5C 2B7
General Enquiries:Telephone (416) 363-8721 Fax: (416) 364-2088
