The E.W. Scripps Company (SSP) 8-K Completion of Acquisition or Disposition of Assets

EXHIBIT 99.1

The E.W. Scripps Company
Unaudited Pro Forma Condensed Consolidated Financial Information

The accompanying unaudited pro forma condensed consolidated financial information has been prepared to reflect the July 1, 2008 (the “Distribution Date”) distribution by The E.W. Scripps Company (the “Company”) of all the shares of Scripps Networks Interactive, Inc. (“SNI”) to the Company’s shareholders (the “SNI Spin-Off”). On the Distribution Date, the Company distributed one Class A Common Share of SNI for each Class A Common Share of the Company and one Common Voting Share of SNI for each Common Voting Share of the Company held on June 16, 2008, the record date of the SNI Spin-Off. The Company has received a ruling from the Internal Revenue Service that, based on customary representations and qualifications, the distribution will be tax-free to the Company’s shareholders for U.S. federal income tax purposes. SNI Class A common shares are listed on the New York Stock Exchange under the ticker symbol “SNI”.

The unaudited pro forma condensed consolidated balance sheet as of March 31, 2008 and the unaudited pro forma condensed consolidated statements of income for the three months ended March 31, 2008 and for the years ended December 31, 2007, 2006 and 2005 have been derived from our historical financial statements and adjusted to give effect to the following transactions, all of which were consummated in connection with the SNI Spin-Off (which will be accounted for as discontinued operations in the third quarter 2008 in accordance with Statement of Financial Accounting Standards No. 144 —Accounting for the Impairment or Disposal of Long-Lived Assets):

– The receipt of special cash dividend from SNI of approximately $430 million;

– The repayment of our corporate debt and accrued interest;

– The initial borrowing under our $200 million credit facility;

– The distribution of all of the common shares of SNI to our common shareholders;

The unaudited pro forma condensed consolidated statements of income for the years ended December 31, 2007, 2006 and 2005 and for the three months ended March 31, 2008 give effect to the SNI Spin-Off as if the distribution and related transactions occurred on January 1, 2005. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2008 gives effect to the SNI Spin-Off as if the distribution and related transactions occurred on March 31, 2008. The unaudited pro forma condensed consolidated financial statements are subject to the assumptions and adjustments set forth in the accompanying notes. Management believes that the assumptions used and the adjustments made are reasonable under the circumstances and given the information available.

The unaudited pro forma condensed consolidated financial information is for illustrative and informational purposes only and is not intended to represent, or be indicative of, what the Company’s results of operations or financial position would have been had the SNI Spin-Off occurred on the dates indicated. The unaudited pro forma condensed consolidated financial information also should not be considered representative of the Company’s future financial position or results of operations.

The unaudited pro forma condensed consolidated financial information should be read in conjunction with the:

• Accompanying notes to the unaudited pro forma condensed consolidated financial information;

• The Company’s Annual Report on Form 10-K for the year ended December 31, 2007;

• The Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2008;

• SNI’s Registration Statement on Form 10 initially filed with the Securities Exchange Commission on March 26, 2008, as amended by Amendment No. 1 filed on May 8, 2008, Amendment No. 2 filed on June 3, 2008, Amendment No. 3 filed on June 6, 2008 and Amendment No. 4 filed on June 11, 2008.

The E.W. Scripps Company
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of March 31, 2008

			SNI Spin-off			Pro Forma			E. W. Scripps
(In thousands)	Historical (*)		(a)			Adjustments			Pro Forma
ASSETS
Current assets:
Cash and cash equivalents	$	57,424	$	(44,173	)	$	11,739	(b)	$	24,990
Short-term investments		34,459		—						34,459
Accounts and notes receivables, net		550,110		(375,016	)					175,094
Program and program licenses		225,514		(223,240	)					2,274
Deferred income taxes		19,024		8,895						27,919
Assets of discontinued operations		173		—						173
Miscellaneous		56,315		(15,918	)					40,397
Total current assets		943,019		(649,452	)		11,739			305,306
Investments		220,259		(39,376	)					180,883
Property, plant & equipment, net		570,636		(176,195	)					394,441
Goodwill and other intangible assets:
Goodwill		1,659,519		(665,187	)					994,332
Other intangible assets, net		181,936		(123,895	)					58,041
Total goodwill and other intangible assets		1,841,455		(789,082	)		—			1,052,373
Other assets:
Program and program licenses (less current)		265,063		(261,446	)					3,617
Unamortized network distribution incentives		127,741		(127,741	)					—
Prepaid pension		9,051		—						9,051
Miscellaneous		28,367		(10,205	)		(1,419	)(c)		16,743
Total other assets		430,222		(399,392	)		(1,419	)		29,411
TOTAL ASSETS	$	4,005,591	$	(2,053,497	)	$	10,320		$	1,962,414
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	85,430	$	(31,860	)	$			$	53,570
Customer deposits and unearned revenue		54,376		(11,373	)					43,003
Accrued liabilities:
Employee compensation and benefits		52,225		(14,365	)					37,860
Accrued income taxes		32,343		(1,000	)					31,343
Network distribution incentives		4,899		(4,899	)					—
Accrued interest		4,581		—			(4,581	)(d)		—
Accrued marketing and advertising costs		21,470		(21,181	)					289
Miscellaneous		58,667		(25,738	)					32,929
Other current liabilities		32,098		(2,689	)					29,411
Liabilities of discontinued operations		147		—						147
Total current liabilities		346,236		(113,105	)		(4,581	)		228,552
Deferred income taxes		362,015		(112,458	)		(511	)(f)		249,046
Long-term debt		473,680		—			(413,680	)(e)		60,000
Other liabilities (less current portion)		205,835		(99,499	)					106,336
TOTAL LIABILITIES		1,387,766		(325,062	)		(418,772	)		643,934
Minority interests		108,032		(104,582	)					3,450
Shareholders’ equity		2,509,793		(1,623,853	)		429,092	(f)		1,315,032
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,005,591	$	(2,053,497	)	$	10,320		$	1,962,414

(*) Includes Cincinnati Post and Kentucky Post assets and liabilities classified as assets held for sale.

See notes to unaudited Pro Forma condensed consolidated financial statements.

The E.W. Scripps Company
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Three Months Ended March 31, 2008

										E. W.
				SNI Spin-off			Pro Forma			Scripps
(In thousands, except per share data)	Historical (*)			(b)			Adjustments			Pro Forma
Operating Revenues:
Advertising	$	430,559		$	(236,154	)	$			$	194,405
Referral fees		76,530			(76,530	)					—
Network affiliate fees, net		67,430			(67,430	)					—
Circulation		30,514			—						30,514
Licensing		18,606			(1,057	)					17,549
Other		18,835			(7,187	)					11,648
Total operating revenues		642,474			(388,358	)		—			254,116
Costs and Expenses:
Employee compensation and benefits		185,678			(58,610	)					127,068
Production and distribution		70,858			(14,099	)					56,759
Programs and program licenses		76,555			(64,997	)					11,558
Marketing and advertising		59,261			(55,690	)					3,571
Other costs and expenses		70,610			(36,994	)					33,616
Total costs and expenses		462,962			(230,390	)		—			232,572
Depreciation, Amortization, and (Gains) Losses:
Depreciation		22,463			(12,177	)					10,286
Amortization of intangible assets		6,299			(5,499	)					800
Losses (gains) on disposal of property, plant and equipment		867			(764	)					103
Net depreciation, amortization, and (gains) losses		29,629			(18,440	)		—			11,189
Operating income		149,883			(139,528	)		—			10,355
Interest expense		(5,832	)		(269	)		5,479	(c)		(622	)
Equity in earnings of JOAs and other joint ventures		12,189			(3,676	)					8,513
Miscellaneous, net		761			138						899
Income from continuing operations before income taxes and minority interests		157,001			(143,335	)		5,479			19,145
Provision for income taxes		50,874			(46,523	)		1,972	(d)		6,323
Income (loss) from continuing operations before minority interests		106,127			(96,812	)		3,507			12,822
Minority interests		22,293			(22,267	)					26
Income (loss) from continuing operations	$	83,834		$	(74,545	)	$	3,507		$	12,796
Income from continuing operations per share of common stock:
Basic	$	0.52								$	0.08
Diluted	$	0.51								$	0.08
Weighted average shares outstanding:
Basic		162,653									162,653
Diluted		163,659									163,659

(*) Includes Cincinnati Post and Kentucky Post as discontinued operations.

See notes to unaudited Pro Forma condensed consolidated financial statements.

The E.W. Scripps Company
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Year Ended December 31, 2007

				Cincinnati
				JOA
				Adjustments			Historical			SNI Spin-off			Pro Forma			E. W. Scripps
(In thousands, except per share data)	Historical			(a)			(Restated)			(b)			Adjustments			Pro Forma
Operating Revenues:
Advertising	$	1,770,180		$			$	1,770,180		$	(928,758	)	$			$	841,422
Referral fees		254,460						254,460			(254,343	)					117
Network affiliate fees, net		235,248						235,248			(235,248	)					—
Circulation		118,696						118,696			—						118,696
Licensing		72,626						72,626			(724	)					71,902
Other		65,930			(5	)		65,925			(22,192	)					43,733
Total operating revenues		2,517,140			(5	)		2,517,135			(1,441,265	)		—			1,075,870
Costs and Expenses:																	—
Employee compensation and benefits		705,775			(4,770	)		701,005			(216,941	)					484,064
Production and distribution		282,663			(677	)		281,986			(54,425	)					227,561
Programs and program licenses		286,574						286,574			(239,343	)					47,231
Marketing and advertising		202,580			(33	)		202,547			(186,533	)					16,014
Other costs and expenses		286,236			(704	)		285,532			(124,649	)					160,883
Total costs and expenses		1,763,828			(6,184	)		1,757,644			(821,891	)		—			935,753
Depreciation, Amortization, and (Gains) Losses:																	—
Depreciation		83,014			(12	)		83,002			(41,387	)					41,615
Amortization of intangible assets		48,536						48,536			(45,446	)					3,090
Write-down of uSwitch goodwill and intangible assets		411,006						411,006			(411,006	)					—
Losses (Gains) on disposal of property, plant and equipment		632						632			(656	)					(24	)
Net depreciation, amortization, and (gains) losses		543,188			(12	)		543,176			(498,495	)		—			44,681
Operating income		210,124			6,191			216,315			(120,879	)		—			95,436
Interest expense		(37,982	)					(37,982	)		860			33,014	(c)		(4,108	)
Equity in earnings of JOAs and other joint ventures		63,221			(17,930	)		45,291			(17,603	)					27,688
Miscellaneous, net		19,284			10			19,294			(2,136	)					17,158
Income from continuing operations before income taxes and minority interests		254,647			(11,729	)		242,918			(139,758	)		33,014			136,174
Provision for income taxes		177,265			(4,248	)		173,017			(139,088	)		11,885	(d)		45,814
Income (loss) from continuing operations before minority interests		77,382			(7,481	)		69,901			(670	)		21,129			90,360
Minority interests		82,981						82,981			(82,534	)					447
Income (loss) from continuing operations	$	(5,599	)	$	(7,481	)	$	(13,080	)	$	81,864		$	21,129		$	89,913
Income (loss) from continuing operations per share of common stock:
Basic	$	(0.03	)				$	(0.08	)							$	0.55
Diluted	$	(0.03	)				$	(0.08	)							$	0.55
Weighted average shares outstanding:
Basic		163,014						163,014									163,014
Diluted		163,014						163,014									164,267

See notes to unaudited Pro Forma condensed consolidated financial statements.

The E.W. Scripps Company
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Year Ended December 31, 2006

				Cincinnati
				JOA
				Adjustments			Historical			SNI Spin-off			Pro Forma			E. W. Scripps
(In thousands, except per share data)	Historical			(a)			(Restated)			(b)			Adjustments			Pro Forma
Operating Revenues:
Advertising	$	1,771,916		$			$	1,771,916		$	(835,848	)	$			$	936,068
Referral fees		269,403						269,403			(269,377	)					26
Network affiliate fees, net		194,662						194,662			(194,662	)					—
Circulation		122,961						122,961			—						122,961
Licensing		75,137						75,137			(394	)					74,743
Other		63,998						63,998			(23,188	)					40,810
Total operating revenues		2,498,077			—			2,498,077			(1,323,469	)		—			1,174,608
Costs and Expenses:
Employee compensation and benefits		666,284			(5,306	)		660,978			(181,205	)					479,773
Production and distribution		297,636			(683	)		296,953			(54,241	)					242,712
Programs and program licenses		243,235						243,235			(196,052	)					47,183
Marketing and advertising		226,044			(39	)		226,005			(210,746	)					15,259
Other costs and expenses		267,860			(698	)		267,162			(111,149	)					156,013
Total costs and expenses		1,701,059			(6,726	)		1,694,333			(753,393	)		—			940,940
Depreciation, Amortization, and (Gains) Losses:
Depreciation		70,818			(14	)		70,804			(29,156	)					41,648
Amortization of intangible assets		44,281						44,281			(41,685	)					2,596
Losses (Gains) on disposal of property, plant and equipment		1,124						1,124			(539	)					585
Gain on formation of Colorado newspaper partnership		(3,535	)					(3,535	)		—						(3,535	)
Hurricane recoveries, net		(1,900	)					(1,900	)		—						(1,900	)
Net depreciation, amortization, and (gains) losses		110,788			(14	)		110,774			(71,380	)		—			39,394
Operating income		686,230			6,740			692,970			(498,696	)		—			194,274
Interest expense		(55,965	)					(55,965	)		1,404			49,589	(c)		(4,972	)
Equity in earnings of JOAs and other joint ventures		55,196			(20,751	)		34,445			(13,378	)					21,067
Miscellaneous, net		4,743			9			4,752			(256	)					4,496
Income from continuing operations before income taxes and minority interests		690,204			(14,002	)		676,202			(510,926	)		49,589			214,865
Provision for income taxes		219,261			(5,084	)		214,177			(137,737	)		17,852	(d)		94,292
Income (loss) from continuing operations before minority interests		470,943			(8,918	)		462,025			(373,189	)		31,737			120,573
Minority interests		73,766						73,766			(72,796	)					970
Income (loss) from continuing operations	$	397,177		$	(8,918	)	$	388,259		$	(300,393	)	$	31,737		$	119,603
Income from continuing operations per share of common stock:
Basic	$	2.43					$	2.38								$	0.73
Diluted	$	2.41					$	2.36								$	0.73
Weighted average shares outstanding:
Basic		163,223						163,223									163,223
Diluted		164,849						164,849									164,849

See notes to unaudited Pro Forma condensed consolidated financial statements.

The E.W. Scripps Company
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Year Ended December 31, 2005

				Cincinnati
				JOA
				Adjustments			Historical			SNI Spin-off			Pro Forma			E. W. Scripps
(In thousands, except per share data)	Historical			(a)			(restated)			(b)			Adjustments			Pro Forma
Operating Revenues:
Advertising	$	1,621,768		$			$	1,621,768		$	(726,604	)	$			$	895,164
Referral fees		98,881						98,881			(98,881	)					—
Network affiliate fees, net		167,012						167,012			(167,012	)					—
Circulation		128,168						128,168			—						128,168
Licensing		77,049						77,049			(457	)					76,592
Other		61,756						61,756			(9,507	)					52,249
Total operating revenues		2,154,634			—			2,154,634			(1,002,461	)		—			1,152,173
Costs and Expenses:
Employee compensation and benefits		597,094			(6,299	)		590,795			(128,995	)					461,800
Production and distribution		288,354			(694	)		287,660			(47,917	)					239,743
Programs and program licenses		221,167						221,167			(173,823	)					47,344
Marketing and advertising		152,515			(41	)		152,474			(138,600	)					13,874
Other costs and expenses		228,600			(1,030	)		227,570			(83,774	)					143,796
Total costs and expenses		1,487,730			(8,064	)		1,479,666			(573,109	)		—			906,557
Depreciation, Amortization, and (Gains) Losses:
Depreciation		62,878			(27	)		62,851			(19,842	)					43,009
Amortization of intangible assets		19,500						19,500			(17,614	)					1,886
Losses (Gains) on disposal of property, plant and equipment		602						602			(34	)					568
Hurricane recoveries, net		(983	)					(983	)		(273	)					(1,256	)
Net depreciation, amortization, and (gains) losses		81,997			(27	)		81,970			(37,763	)		—			44,207
Operating income		584,907			8,091			592,998			(391,589	)		—			201,409
Interest expense		(38,791	)					(38,791	)		1,354			32,502	(c)		(4,935	)
Equity in earnings of JOAs and other joint ventures		61,926			(23,532	)		38,394			(11,120	)					27,274
Miscellaneous, net		5,756			3			5,759			18						5,777
Income from continuing operations before income taxes and minority interests		613,798			(15,438	)		598,360			(401,337	)		32,502			229,525
Provision for income taxes		216,815			(5,534	)		211,281			(130,088	)		11,701	(d)		92,894
Income (loss) from continuing operations before minority interests		396,983			(9,904	)		387,079			(271,249	)		20,801			136,631
Minority interests		58,467						58,467			(54,431	)					4,036
Income (loss) from continuing operations	$	338,516		$	(9,904	)	$	328,612		$	(216,818	)	$	20,801		$	132,595
Income from continuing operations per share of common stock:
Basic	$	2.07					$	2.01								$	0.81
Diluted	$	2.05					$	1.99								$	0.80
Weighted average shares outstanding:
Basic		163,279						163,279									163,279
Diluted		165,435						165,435									165,435

See notes to unaudited Pro Forma condensed consolidated financial statements.

The E.W. Scripps Company
Notes to unaudited pro forma condensed consolidated balance sheet as of March 31, 2008 (In thousands)

(a)	Represents the assets, liabilities and equity of Scripps Networks Interactive (“SNI”), the common shares which were distributed to our shareholders on July 1, 2008.
(b)	Represents estimated cash inflows relating to (i) special cash dividend received from SNI of $430,000 and (ii) the receipt of $60,000, the amount drawn on our $200,000 credit facility. Such estimated cash inflows are partially offset by the repayment of corporate notes, borrowings and interest under our variable-rate credit facilities of $478,261.
(c)	Represents the write-off of the un-amortized balance of debt issuance costs of $1,419 related to the corporate debt and revolving credit facility repaid in connection with the SNI Spin-Off.
(d)	Represents the payment of the accrued interest related to the corporate notes and borrowings under our variable-rate credit facilities repaid in connection with the SNI Spin-Off.
(e)	Represents the repayment of the corporate debt $473,680 in connection with the SNI Spin-Off offset by the $60,000 drawn on the $200,000 credit facility.
(f)	Represents increase to our shareholders’ equity due to the special cash dividends received from SNI of $430,000. Such increase is offset by the net estimated loss of approximately $908 relating to the write-off of debt issuance costs, net of related taxes of $511.

The E.W. Scripps Company
Notes to unaudited pro forma condensed consolidated statement of income for
the three months ended March 31, 2008 and the years ended December 31, 2007, 2006 and 2005 (in thousands)

(a)	Represents the classification of Cincinnati Post and Kentucky Post newspapers that participated in the Cincinnati JOA as discontinued operations, in accordance with the provisions of FAS 144. The Cincinnati joint operating agreement with Gannett Co. Inc. was not renewed when the agreement expired on December 31, 2007. In connection with the termination of the JOA, we ceased publication of our Cincinnati Post and Kentucky Post newspapers that participated in the Cincinnati JOA.
(b)	Represents the results of operations of SNI, the common shares of which were distributed to our shareholders on July 1, 2008. Other costs and expenses includes $5,345 and $3,849 in the three months ended March 31, 2008 and year ended December 31, 2007, respectively, of transaction costs directly related to the consummation of the SNI Spin-Off. These non-recurring charges will be recorded within discontinued operations.
(c)	Reflects interest expense reduction on corporate debt of $6,094, $35,510, $52,085, $34,998 for the three months ended March 31, 2008 and years ended December 31, 2007, 2006, and 2005, respectively given the repayment of the corporate notes and borrowings under the variable credit facilities in connection with the SNI Spin-Off offset by interest expense of $615 in the three months ended March 31, 2008 and $2,496 in each of the years ended December 31, 2007, 2006 and 2005, related to our draw of $60,000 on the $200,000 credit facility with a five year maturity. The interest expense on the $60,000 draw has been computed using an assumed interest rate of 4.16%, which represents the LIBOR rate in effect as of March 31, 2008 plus 1.5%. Each one-eighth of one percent change in LIBOR would result in a change in interest expense of $75 per annum.
(d)	Represents the tax effects of (c) above using a tax rate of 36% which represents the federal statutory rate of 35%, plus state rate of 1%.