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EXHIBIT 99.1
HOLLINGER INC.
HOLLINGER 2000 THIRD QUARTER RESULTS
TORONTO, November 27, 2000 -- Hollinger Inc., (TSE: HLG.C)
today announced its consolidated financial results for the nine months ended
September 30, 2000 with comparison to the nine months ended September 30, 1999.
<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
2000 1999 2000 1999 2000 1999 2000 1999
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(MILLIONS OF CDN. DOLLARS) (CDN. DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total revenue 781.1 757.3 2,456.6 2,393.2 n/a n/a n/a n/a
EBITDA 126.5 95.0 447.9 394.4 n/a n/a n/a n/a
Net earnings (loss) (9.3) (3.9) 3.4 152.2 $(0.25) $(0.11) $0.09 $4.45
Net earnings (loss)
before the effects of
unusual items (11.1) (21.1) (10.0) (22.0) $(0.30) $(0.57) $(0.27) $(0.64)
</TABLE>
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HOLLINGER INC.
CONSOLIDATED STATEMENT OF EARNINGS
($000'S)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Revenue
Sales $ 777,868 $ 754,443 $2,448,203 $2,377,435
Investment and other income 3,224 2,850 8,390 15,786
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$ 781,092 757,293 2,456,593 2,393,221
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Expenses
Cost of sales and expenses 651,378 659,465 2,000,262 1,983,066
Depreciation and amortization 54,726 56,758 166,805 172,006
Interest expense 76,406 59,465 212,252 184,350
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782,510 775,688 2,379,319 2,339,422
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Net earnings in equity accounted companies 593 152 1,814 1,057
Net foreign currency (losses) gains (777) (888) 475 2,984
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Earnings (loss) before the undernoted (1,602) (19,131) 79,563 57,840
Unusual items 15,014 27,105 55,111 474,601
Income taxes (12,890) (7,285) (68,526) (214,549)
Minority interest (9,866) (4,586) (62,770) (165,714)
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Net earnings (loss) $ (9,344) $ (3,897) $ 3,378 $ 152,178
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Net earnings (loss) per retractable common share $ (0.25) $ (0.11) $ 0.09 $ 4.45
========= ========= ========== ==========
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THIRD QUARTER RESULTS
The loss before unusual items, income taxes and minority interest was $1.6
million for the three months ended September 30, 2000 compared to $19.1 million
for 1999. The net loss for the three months ended September 30, 2000 amounted to
$9.3 million or a loss of $0.25 per share compared with a net loss of $3.9
million or a loss of $0.11 per share in 1999. Excluding the net effect of
unusual items, a net loss of $11.1 million or a loss of $0.30 per share was
incurred in the third quarter of 2000 compared with a net loss of $21.1 million
or a loss of $0.57 per share in 1999.
Reported earnings for the quarter compared to last year have been affected by
several major items.
The National Post EBITDA loss for the third quarter of 2000 was $13.7
million, a $7.2 million improvement over the EBITDA loss of $20.9 million
in the third quarter of 1999, reflecting a 30.4% increase in revenue
year-over-year.
Unusual items in the third quarter 2000 include gains on sales of
community newspapers by Hollinger International Inc., additional start-up
costs related to the new printing facility in Chicago, and severance costs
in Canada. Unusual items in the third quarter of 1999 consisted primarily
of a gain on sales of community newspapers by Hollinger International Inc.
and an accounting gain on the issue of limited partnership units.
Interest expense for the quarter rose over 1999 as a result of higher
interest rates and increased debt levels, due in part to the purchase by
Hollinger International of its own shares for cancellation, and the
redemption in July of the HCPH Special Shares, and the impact of expensing
rather than capitalizing interest costs related to the new Chicago plant.
Third quarter revenue from Internet operations grew from $2.4 million in
1999 to $5.9 million in 2000 and Internet related EBITDA losses grew from
$4.0 million to $12.6 million over the same time frame, reflecting the
expanding success of these operations.
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.
More detailed information about the operations of Hollinger International Inc.
and its subsidiaries may be found in the press release dated November 8, 2000.
For more information, please call:
J.A. Boultbee
Executive Vice-President
and CFO
Hollinger Inc.
(416) 363-8721
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