Exhibit 99.1

MORRIS PUBLISHING ANNOUNCES
2004 THIRD QUARTER RESULTS
AUGUSTA, Ga. (November 9, 2004) — Morris Publishing Group, LLC today announced results of operations for the third quarter ended September 30, 2004. The company reported that total net operating revenues increased by 5.5% in the third quarter over the same period a year ago, driven by growth in all categories of advertising revenues: retail, classified, and national. Total net operating revenues were $112.9 million versus $107.0 million in the third quarter of 2003.
Compared with last year, total advertising revenues were up 7.5% for the third quarter driven by all three categories of advertising revenues. National advertising revenues led the group with a 23.1% increase for the third quarter and a 15.1% increase year to date. Retail advertising revenues were up 6.1% for the quarter and 2.5% year to date. Classified advertising revenues were up 6.8% for the quarter and 7.2% year to date. Circulation revenues were down 2.3% for the quarter and 1.6% year to date.
“A year over year increase of 7.5% in total advertising revenues is very solid,” said William S. Morris IV, CEO and president of Morris Publishing Group. “National advertising revenues increased 23.1% primarily on the strength of our Jacksonville market. Both retail and classified revenues showed strong increases too. I’m pleased that we’ve been able to grow our total revenues near the 4% level so far this year despite some of the challenges we’ve faced.”
Total operating expenses increased 4.3% to $93.5 million, with compensation up 2.3%, health care and employee benefits up 7.6%, newsprint up 12.9%, and all other expenses up 3.1%.
EBITDA (net income before net interest expense, including amortization of debt issuance costs, provision for income taxes, depreciation and amortization expense) for the September 2004 fiscal quarter was $24.9 million.
The Company believes that EBITDA, a non-GAAP financial measure, is a useful metric for evaluating its financial performance because of its focus on the Company’s results from operations before depreciation and amortization. EBITDA is a common alternative measure of performance used by investors, financial analysts and rating agencies. These groups use EBITDA, along with other measures, to estimate the value of a company and evaluate a company’s ability to meet its debt service. Information concerning EBITDA is included in the exhibits to this release.
Certain statements contained in this report are forward-looking. They are based on management’s current knowledge of factors affecting Morris Publishing Group’s business. Actual results could differ materially from those currently anticipated, depending upon – but not limited to – the effects of interest rates, of national and local economies on revenue, of the evolution of the Internet, of unforeseen changes in the price of newsprint and other significant events that could affect the economy.
Morris Publishing Group, LLC is a wholly owned subsidiary of Morris Communications Company, LLC, a privately held media company based in Augusta, Ga. Morris Publishing was formed in 2001 and assumed the operations of the newspaper business segment of its parent, Morris Communications. Morris Publishing publishes 26 daily, 12 nondaily and 23 free community newspapers across the United States.
A conference call will be held Tuesday, November 9, 2004, at 10:00 a.m. Eastern Daylight Time. The dial-in number is 800-967-7188. Please ask for the Morris Publishing Group conference call. This press release is available on our Web sitewww.morris.com. The contents of the call will be available for replay for 30 days at the following site entry link:https://cis.premconf.com/sc/scw.dll/usr?cid=vlllrwclmmlvmlcnl
For further information, please contact:
Craig Mitchell
Senior Vice President of Finance
Morris Communications Company, LLC
706-823-3236
Third Quarter information follows:
Morris Publishing Group, LLC
Condensed Consolidated Statements of Income
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| | Three Months Ended September 30,
| | | Nine Months Ended September 30,
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(Dollars in thousands)
| | 2004
| | | 2003
| | | 2004
| | | 2003
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| | | | | (as restated) | | | | | | (as restated) | |
OPERATING REVENUES: | | | | | | | | | | | | | | | | |
Advertising | | $ | 91,211 | | | $ | 84,836 | | | $ | 269,349 | | | $ | 255,889 | |
Circulation | | | 17,351 | | | | 17,759 | | | | 52,647 | | | | 53,504 | |
Other | | | 4,365 | | | | 4,434 | | | | 13,569 | | | | 13,529 | |
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Total operating revenue | | | 112,927 | | | | 107,029 | | | | 335,565 | | | | 322,922 | |
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OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
Labor and employee benefits | | | 44,848 | | | | 43,442 | | | | 133,297 | | | | 127,363 | |
Newsprint, ink and supplements | | | 13,354 | | | | 12,181 | | | | 39,888 | | | | 37,616 | |
Other operating costs (excluding depreciation and amortization) | | | 30,024 | | | | 28,823 | | | | 89,067 | | | | 82,627 | |
Depreciation and amortization | | | 5,292 | | | | 5,256 | | | | 15,600 | | | | 15,146 | |
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Total operating expenses | | | 93,518 | | | | 89,702 | | | | 277,852 | | | | 262,752 | |
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Operating income | | | 19,409 | | | | 17,327 | | | | 57,713 | | | | 60,170 | |
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OTHER EXPENSE: | | | | | | | | | | | | | | | | |
Interest expense, including amortization of debt issuance costs | | | 8,166 | | | | 6,745 | | | | 23,986 | | | | 18,164 | |
Loss on extinguishment of debt | | | — | | | | 5,957 | | | | — | | | | 5,957 | |
Interest income | | | (458 | ) | | | (15 | ) | | | (963 | ) | | | (24 | ) |
Other, net | | | (195 | ) | | | 57 | | | | 440 | | | | 196 | |
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Total other expense | | | 7,513 | | | | 12,744 | | | | 23,463 | | | | 24,293 | |
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INCOME BEFORE INCOME TAXES | | | 11,896 | | | | 4,583 | | | | 34,250 | | | | 35,877 | |
PROVISION FOR INCOME TAXES | | | 4,664 | | | | 1,630 | | | | 13,502 | | | | 13,803 | |
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NET INCOME | | $ | 7,232 | | | $ | 2,953 | | | $ | 20,748 | | | $ | 22,074 | |
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The following table reconciles net income to EBITDA: | |
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| | Three Months Ended September 30,
| | | Nine Months Ended September 30,
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(Dollars in thousands)
| | 2004
| | | 2003
| | | 2004
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NET INCOME | | $ | 7,232 | | | $ | 2,953 | | | $ | 20,748 | | | $ | 22,074 | |
Add: | | | | | | | | | | | | | | | | |
Interest expense, including amortization of debt issuance costs | | | 8,166 | | | | 6,745 | | | | 23,986 | | | | 18,164 | |
Interest income | | | (458 | ) | | | (15 | ) | | | (963 | ) | | | (24 | ) |
Provision for income taxes | | | 4,664 | | | | 1,630 | | | | 13,502 | | | | 13,803 | |
Loss from Extinguishment of Debt | | | — | | | | 5,957 | | | | — | | | | 5,957 | |
Depreciation and amortization | | | 5,292 | | | | 5,256 | | | | 15,600 | | | | 15,146 | |
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EBITDA | | $ | 24,896 | | | $ | 22,526 | | | $ | 72,873 | | | $ | 75,120 | |
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