Exhibit 99.1

MORRIS PUBLISHING ANNOUNCES
2006 FIRST QUARTER RESULTS
AUGUSTA, Ga. (May 11, 2006) — Morris Publishing Group, LLC today reported first quarter net income of $5.3 million, up $0.7 million from $4.6 million in the same period last year.
Total operating revenue for the first quarter was $113.9 million, up $0.6 million, or 0.5% from $113.3 million in the same quarter 2005, with total advertising revenue of $92.4 million, up 1.0%, and circulation revenue of $17.5 million, down 1.9%. Classified revenue was up 7.3%, while national and retail advertising revenues were down 14.2% and 2.0%, respectively, from the first quarter last year.
For the first quarter, total operating expense was $96.1 million, down $1.3 million, or 1.3%, from $97.3 million last year, with employee costs down 1.1%, newsprint, ink and supplements costs up 5.9%, and other operating costs down 4.0%. Total operating costs were impacted by the increases in the price of newsprint, lower health care costs and significant nonrecurring costs incurred in the first quarter last year.
Commenting on the results, William S. Morris IV, Morris Publishing Group’s chief executive officer and president, said, “We had a solid first quarter, despite the continued softness in several of our traditional sources of advertising revenue. We are continuing to grow our online advertising business and aggressively manage our costs, which contributed significantly to our first quarter results.”
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 owns and operates 27 daily and 13 nondaily newspapers, four city magazines and numerous other free community publications in the Southeast, Midwest, Southwest and Alaska. For more information, visitwww.morris.com.
A conference call will be held Thursday, May 11, 2006, at 10:00 a.m. Eastern Daylight Time. In order to participate, please call 1-888-928-9177 ten (10) minutes prior to the scheduled start. The pass code and leader’s name listed below will be required to join the conference call:
| | |
LEADER: | | MR. STEVE STONE |
PASS CODE: | | MORRIS PUBLI |
To access the Audio Replay of this call, all parties can:
1. Go to the URL:https://e-meetings.mci.com
2. Choose Audio Streaming under Join Events
3. Enter the conference number:8255793
4. Enter the pass code:MORRIS PUBLI
Replays of the conference call are available for 30 days after the live event at the URL link.
For further information, please contact:
Craig S. Mitchell
Senior Vice President of Finance
Morris Communications Company, LLC
706-823-3236
First-quarter results follow:
Morris Publishing Group, LLC
Condensed Consolidated Statements of Income
| | | | | | | | |
(Dollars in thousands) | | Three Months Ended March 31, | |
| 2006 | | | 2005 | |
NET OPERATING REVENUES: | | | | | | | | |
Advertising | | $ | 92,373 | | | $ | 91,501 | |
Circulation | | | 17,544 | | | | 17,880 | |
Other | | | 4,009 | | | | 3,957 | |
| | | | | | | | |
Total net operating revenue | | | 113,926 | | | | 113,338 | |
| | | | | | | | |
OPERATING EXPENSES: | | | | | | | | |
Labor and employee benefits | | | 44,032 | | | | 44,523 | |
Newsprint, ink and supplements | | | 14,764 | | | | 13,942 | |
Other operating costs (excluding depreciation and amortization) | | | 32,012 | | | | 33,332 | |
Depreciation and amortization | | | 5,281 | | | | 5,547 | |
| | | | | | | | |
Total operating expenses | | | 96,089 | | | | 97,344 | |
| | | | | | | | |
OTHER EXPENSE (INCOME): | | | | | | | | |
Interest expense, including amortization of debt issuance costs | | | 9,000 | | | | 8,515 | |
Interest income | | | (67 | ) | | | (298 | ) |
(Gain) loss on sale of fixed assets | | | (4 | ) | | | 7 | |
Other, net | | | (11 | ) | | | 27 | |
| | | | | | | | |
Total other expense, net | | | 8,918 | | | | 8,251 | |
| | | | | | | | |
INCOME BEFORE INCOME TAXES | | | 8,919 | | | | 7,743 | |
PROVISION FOR INCOME TAXES | | | 3,582 | | | | 3,101 | |
| | | | | | | | |
NET INCOME | | $ | 5,337 | | | $ | 4,642 | |
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