Exhibit 99.1
MORRIS PUBLISHING ANNOUNCES
2005 FIRST QUARTER RESULTS
AUGUSTA, Ga. (May 13, 2005) — Morris Publishing Group, LLC today reported first quarter operating income of $16.0 million, down $1.1 million, or 6.3%, from $17.1 million for the same period in 2004. Net income for the quarter was $4.6 million, down $0.7 million from $5.3 million in the prior year.
Total operating revenue for the first quarter was $113.3 million, up 4.7% from $108.3 million in the same quarter 2004, with advertising revenue of $91.5 million, up 6.3%, and circulation revenue of $17.9 million, up 0.1%. Classified and retail advertising revenues were up 10.6% and 4.5%, respectively, while national advertising revenue was down 3.4%.
For the first quarter, total operating cost was $97.3 million, up 6.7% from $91.2 million last year, with employee cost of $44.5 million, up 2.2%, newsprint cost of $11.5 million, up 5.0%, and all other operating cost of $41.3 million, up 12.5%.
Commenting on the results, William S. Morris IV, Morris Publishing Group’s CEO and President, said, “Our strong growth in revenue and a substantial part of our operating cost increase were driven by Jacksonville’s hosting of the NFL’s Super Bowl in February 2005. Net of the Super Bowl, we estimate that our revenue growth and operating cost increases would have been 3.7% and 5.5%, respectively.”
“In addition to the Super Bowl cost, other operating costs were impacted by the accrual for potential Winn Dixie bankruptcy losses, from additional distribution cost associated with the of new Skirt!magazines in Jacksonville, Charlotte and Savannah, and from rent associated with Savannah’s new administrative and production facility,” said Morris.
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 27 daily and 12 non-daily newspapers, 5 city magazines and numerous other free community publications across the United States.
A conference call will be held Friday, May 13, 2005, at 10:00 a.m. Eastern Standard Time. The dial-in number is 1-800-262-1292. 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=vlllrsdslwdvrdmdl
For further information, please contact:
Craig Mitchell
Senior Vice President of Finance
Morris Communications Company, LLC
706-823-3236
First quarter results are as follows:
Morris Publishing Group, LLC
Condensed Consolidated Statements of Income
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| | | Three Months Ended March 31,
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(Dollars in thousands)
| | 2005
| | | 2004
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OPERATING REVENUES: | | | | | | | |
Advertising | | $ | 91,501 | | | 86,091 | |
Circulation | | | 17,880 | | | 17,868 | |
Other | | | 3,957 | | | 4,314 | |
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Total operating revenue | | | 113,338 | | | 108,273 | |
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OPERATING EXPENSES: | | | | | | | |
Labor and employee benefits | | | 44,523 | | | 43,580 | |
Newsprint, ink and supplements | | | 13,942 | | | 13,022 | |
Other operating costs (excluding depreciation and amortization) | | | 33,331 | | | 29,459 | |
Depreciation and amortization | | | 5,547 | | | 5,139 | |
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Total operating expenses | | | 97,343 | | | 91,200 | |
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Operating income | | | 15,995 | | | 17,073 | |
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OTHER EXPENSE: | | | | | | | |
Interest expense, including amortization of debt issuance costs | | | 8,515 | | | 7,812 | |
Interest income | | | (298 | ) | | (144 | ) |
Other, net | | | 35 | | | 532 | |
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Total other expense | | | 8,252 | | | 8,200 | |
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INCOME BEFORE INCOME TAXES | | | 7,743 | | | 8,873 | |
PROVISION FOR INCOME TAXES | | | 3,100 | | | 3,532 | |
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NET INCOME | | $ | 4,643 | | | 5,341 | |
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