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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 March 2000
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
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(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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EXHIBIT LIST
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Sequential
Exhibit Description Page Number
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99.1 Press Release dated March 6, 2000 of Hollinger Inc. 4
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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: March 8, 1999
HOLLINGER INC.
by: /s/ Charles G. Cowan, Q.C.
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Name: Charles G. Cowan, Q.C.
Title: Vice-President and Secretary
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Exhibit 99.1
FOR IMMEDIATE RELEASE
MONDAY, MARCH 6, 2000
PRESS RELEASE
HOLLINGER INC.
HOLLINGER 1999 YEAR END RESULTS
TORONTO, March 6, 2000 -- Hollinger Inc., (TSE:HLG.C) today announced its
consolidated financial results for the year ended December 31, 1999 with
comparison to the year ended December 31, 1998.
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<CAPTION>
PER RETRACTABLE COMMON SHARE
--------------------------------------------
THREE MONTHS ENDED YEAR ENDED THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31
------------------- --------------------- ------------------ -------------------
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 867.1 909.3 3,260.3 3,341.7 n/a n/a n/a n/a
EBITDA 187.5 213.3 581.9 699.0 n/a n/a n/a n/a
Net earnings 2.6 52.0 154.8 111.5 $0.07 $1.58 $4.43 $3.35
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For more information, please call:
J. A. Boultbee
Executive Vice-President
and CFO
Hollinger Inc.
(416) 363-8721
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HOLLINGER INC.
CONSOLIDATED STATEMENT OF EARNINGS
($000's)
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<CAPTION>
THREE MONTHS ENDED DECEMBER 31 YEAR ENDED DECEMBER 31
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Revenue
Sales $ 863,884 $ 899,669 $3,241,319 $3,319,188
Investment and other income 3,167 9,674 18,953 22,464
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867,051 909,343 3,260,272 3,341,652
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Expenses
Cost of sales and expenses 676,392 686,365 2,659,458 2,620,177
Depreciation and amortization 56,796 55,367 228,802 209,498
Interest expense 61,888 58,964 246,238 233,878
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795,076 800,696 3,134,498 3,063,553
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Net earnings (loss) in equity accounted companies 154 177 1,211 (616)
Net foreign currency gains (losses) 927 (3,596) 3,911 (2,230)
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Earnings before the undernoted 73,056 105,228 130,896 275,253
Unusual items (61,204) (4,685) 413,397 404,519
Income tax (expense) recovery 7,286 (11,573) (207,263) (300,929)
Minority interest (16,501) (36,994) (182,215) (267,358)
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Net earnings $ 2,637 $ 51,976 $ 154,815 $ 111,485
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FOURTH QUARTER RESULTS
Net earnings for the year ended December 31, 1999 amounted to $154.8 million or
$4.43 per share compared with $111.5 million or $3.35 per share in 1998.
Net earnings in the fourth quarter of 1999 amounted to $2.6 million or $0.07 per
share compared with earnings of $52.0 million or $1.58 per share in 1998.
The results for the fourth quarter compared to last year have been affected by a
few significant matters.
Increased Internet activity in the area of internet site development and
operation has resulted in an EBITDA loss of $15.4 million in the fourth
quarter of 1999 compared with $2.5 million in 1998.
Community group newspapers sold in 1999 contributed $19.2 million to EBITDA
in the fourth quarter of 1998.
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 fourth quarter of 1998, when a substantial minority still
existed.
The start up in October 1998 of the National Post has resulted in an EBITDA loss
from the National Post for the fourth quarter of 1999 of $9.9 million, a
significant improvement over the third quarter EBITDA loss of $20.9 million. The
improvement reflects increased advertising revenue following the release in
October of Canadian readership and circulation statistics by the independent
research company, Newspaper Audience Databank Inc. (NADbank) which confirmed the
high circulation and market share of the National Post in its first full year of
operation.
Unusual items in the fourth quarter of 1999 consisted primarily of the write off
of credit facility fees, restructuring costs and an adjustment to the accounting
loss on repurchase by Hollinger International Inc. of its own shares. Unusual
items in the fourth quarter of 1998 consisted principally of the write-off of
the National Post launch costs, an adjustment to the gains at Southam on the
sale of the Kitchener and Hamilton papers, an accounting gain on the sale of
Hollinger International shares, and a provision against the cost of an
investment.
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. It owns the
Canada.com national portal site and a variety of other specialized sites.
Through its Hollinger Digital subsidiary, it has taken investment positions in
various Internet-based companies.
More detailed information about the operations of Hollinger International Inc.,
and its divisions and subsidiaries may be found in their press release dated
February 17, 2000.
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HOLLINGER INC.
CONSOLIDATED BALANCE SHEET
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<CAPTION>
(in thousands of dollars) December 31
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1999 1998
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<S> <C> <C>
ASSETS
Current assets
Cash $ 74,441 $ 128,061
Accounts receivable 528,072 584,503
Inventory 50,089 56,294
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652,602 768,858
Investments 159,744 75,242
Capital assets 3,930,388 4,129,445
Goodwill and other assets 907,700 730,956
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$5,650,434 $5,704,501
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LIABILITIES
Current liabilities
Bank indebtedness $ 307,961 $ 232,128
Accounts payable and accrued expenses 603,441 792,669
Income taxes payable 73,863 2,465
Current portion of long-term debt 71,437 183,150
Exchangeable shares 129,168 496,766
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1,185,870 1,707,178
Long-term debt 2,393,979 2,229,599
Exchangeable shares 156,043 51,038
Deferred unrealized gain 21,139 -
Deferred income taxes 401,294 460,179
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4,158,325 4,447,994
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MINORITY INTEREST AND DEFERRED CREDITS
SHAREHOLDERS' EQUITY 1,360,958 1,323,675
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Capital stock 315,229 240,434
Deficit (188,469) (306,181)
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126,760 (65,747)
Equity adjustment from foreign currency translation 4,391 (1,421)
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131,151 (67,168)
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$5,650,434 $5,704,501
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