Exhibit 99.1
MORRIS PUBLISHING ANNOUNCES
2005 SECOND QUARTER RESULTS
AUGUSTA, Ga. (August 10, 2005) — Morris Publishing Group, LLC today reported second quarter operating income of $20.8 million, down $0.5 million, or 2.3%, from $21.3 million for the same period in 2004. Net income for the quarter was $7.4 million, down $0.8 million from $8.2 million in the prior year.
Total operating revenue for the second quarter was $117.0 million, up 2.1% from $114.6 million in the same quarter 2004, with advertising revenue of $95.0 million, up 2.9%, and circulation revenue of $17.6 million, up 1.2%. Classified and retail advertising revenues were up 7.0% and 2.0%, respectively, while national advertising revenue was down 13.3%.
For the second quarter, total operating cost was $96.2 million, up 3.1% from $93.4 million last year, with employee cost of $44.8 million, down 0.4%, newsprint cost of $14.5 million, up 7.4%, and all other operating cost of $36.9 million, up 5.8%.
Commenting on the results, William S. Morris IV, Morris Publishing Group’s CEO and President, said, “Our second quarter was impacted by the increase in newsprint prices, the softness of retail and national advertising revenue in Jacksonville, and the launch ofBluffton Today, a free daily newspaper located in Bluffton, SC. While the climate for increased retail advertising is not as good as we would like, we expect classified advertising to remain strong. I am pleased with our second quarter results.”
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 13 non-daily newspapers, 5 city magazines and numerous other free community publications across the United States.
A conference call will be held Wednesday, August 10, 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=vlllrsclsmnvdcsnm
For further information, please contact:
Craig Mitchell
Senior Vice President of Finance
Morris Communications Company, LLC
706-823-3236
Second quarter results are as follows:
Morris Publishing Group, LLC
Condensed Consolidated Statements of Income
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(Dollars in thousands)
| | Three months ended June 30,
| | | Six months ended June 30,
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| | | 2005
| | | 2004
| | | 2005
| | | 2004
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NET OPERATING REVENUES: | | | | | | | | | | | | | | | | |
Advertising | | $ | 94,964 | | | $ | 92,306 | | | $ | 186,465 | | | $ | 178,397 | |
Circulation | | | 17,643 | | | | 17,431 | | | | 35,523 | | | | 35,299 | |
Other | | | 4,384 | | | | 4,890 | | | | 8,341 | | | | 9,204 | |
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Total net operating revenue | | | 116,991 | | | | 114,627 | | | | 230,329 | | | | 222,900 | |
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OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
Labor and employee benefits | | | 44,796 | | | | 44,956 | | | | 89,319 | | | | 88,536 | |
Newsprint, ink and supplements | | | 14,507 | | | | 13,512 | | | | 28,449 | | | | 26,534 | |
Other operating costs (excluding depreciation and amortization) | | | 31,396 | | | | 29,739 | | | | 64,727 | | | | 59,198 | |
Depreciation and amortization | | | 5,529 | | | | 5,169 | | | | 11,077 | | | | 10,308 | |
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Total operating expenses | | | 96,228 | | | | 93,376 | | | | 193,572 | | | | 184,576 | |
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Operating income | | | 20,763 | | | | 21,251 | | | | 36,757 | | | | 38,324 | |
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OTHER EXPENSE (INCOME): | | | | | | | | | | | | | | | | |
Interest expense, including amortization of debt issuance costs | | | 8,867 | | | | 8,008 | | | | 17,382 | | | | 15,820 | |
Interest income | | | (354 | ) | | | (361 | ) | | | (652 | ) | | | (506 | ) |
Other, net | | | (14 | ) | | | 102 | | | | 20 | | | | 636 | |
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Total other expense | | | 8,499 | | | | 7,749 | | | | 16,750 | | | | 15,950 | |
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INCOME BEFORE INCOME TAXES | | | 12,264 | | | | 13,502 | | | | 20,007 | | | | 22,374 | |
PROVISION FOR INCOME TAXES | | | 4,822 | | | | 5,306 | | | | 7,923 | | | | 8,838 | |
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NET INCOME | | $ | 7,442 | | | $ | 8,196 | | | $ | 12,084 | | | $ | 13,536 | |
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