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
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<PAGE>
EXHIBIT LIST
------------
Sequential
Exhibit Description Page Number
- - ------- ----------- -----------
99.1 Press Release dated November 26, 1999 4
of Hollinger Inc.
<PAGE>
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.
HOLLINGER INC.
Date: November 29, 1999 by
/s/ Charles G. Cowan, Q.C.
------------------------------
Name: Charles G. Cowan, Q.C.
Title: Vice President and
Secretary
Exhibit 99.1
For Release at 5:00 p.m.
Friday, November 26, 1999
PRESS RELEASE
HOLLINGER INC.
HOLLINGER 1999 THIRD QUARTER RESULTS
TORONTO, November 26, 1999 -- Hollinger Inc., (TSE, ME, VSE:HLG.C;
Nasdaq:HLGCF) today announced its consolidated financial results for the nine
months ended September 30, 1999 with comparison to the nine months ended
September 30, 1998.
<TABLE>
<CAPTION>
Per Retractable Common Share
Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended
September 30 September 30 September 30 September 30
1999 1998 1999 1998 1999 1998 1999 1998
---- ---- ---- ---- ---- ---- ---- ----
(Millions of Cdn. Dollars) (Cdn. Dollars)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total revenue 757.3 798.1 2,393.2 2,432.3 n/a n/a n/a n/a
EBITDA 95.0 138.1 394.4 485.7 n/a n/a n/a n/a
Net earnings (loss) (3.9) (23.3) 152.2 59.5 $(0.11) $(0.71) $4.45 $1.78
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HOLLINGER INC.
CONSOLIDATED STATEMENT OF EARNINGS
($000's)
Three Months Ended September 30 Nine Months Ended 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>
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 cents per share was incurred in the third quarter
of 1999 compared with net earnings of $11.3 million or $0.34 cents 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.
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
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.
Hollinger is a Canadian-based international newspaper company that, through
its subsidiaries, is engaged in the publishing, printing and distribution of
newspapers and magazines in the United Kingdom, the United States, Canada and
Israel. Web sites are operated at all of its major newspapers. Through its
Hollinger Digital subsidiary, it operates Canada.com national portal site, a
variety of other specialized sites and has taken investment positions in
various Internet-based companies.
More detailed information about the operations of Hollinger International Inc.
and its subsidiaries may be found in the press release dated October 29, 1999.
For more information, please call:
J.A. Boultbee
Executive Vice-President
and CFO
Hollinger Inc.
(416) 363-8721
