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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 4, 2009
THE E.W. SCRIPPS COMPANY
(Exact name of registrant as specified in its charter)
| Ohio | 0-16914 | 31-1223339 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
| 312 Walnut Street Cincinnati, Ohio |
45202 |
|
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (513) 977-3000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Table of Contents
Item 2.02 Results of Operations and Financial Condition
On May 4, 2009, we released information regarding results of operations for the year-to-date period
ended March 31, 2009. A copy of the press release is filed as Exhibit 99.03.
The discussion and the information contained in the press release contain certain forward-looking
statements related to the company’s businesses that are based on our current expectations.
Forward-looking statements are subject to certain risks, trends, and uncertainties that could cause
actual results to differ materially from the expectations expressed in the forward-looking
statements. Such risks, trends and uncertainties, which in most instances are beyond our control,
include changes in advertising demand and other economic conditions; consumers’ tastes; newsprint
prices; program costs; labor relations; technological developments; competitive pressures; interest
rates; regulatory rulings; and reliance on third-party vendors for various products and services.
The words “believe,” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions identify
forward-looking statements. All forward-looking statements, which are as of the date of this
filing, should be evaluated with the understanding of their inherent uncertainty. We undertake no
obligation to publicly update any forward-looking statement to reflect events or circumstances
after the date the statement is made.
Item 9.01 Financial Statements and Exhibits
| Exhibit | Exhibit No. | |||||||
| Number | Description of Item | Incorporated | ||||||
| 99.03 | Press release dated May 4, 2009
|
99.03 | ||||||
3
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE E.W. SCRIPPS COMPANY |
||||
| BY: | /s/ Douglas F. Lyons | |||
| Douglas F. Lyons | ||||
| Vice President and Controller | ||||
Dated: May 5, 2009
4
Table of Contents
Exhibit 99.03
Scripps reports first-quarter results
| For immediate release | (NYSE: SSP) | |
| May 4, 2009 |
CINCINNATI – The E.W. Scripps Company today reported first-quarter operating results for its
television, newspaper, and licensing and syndication businesses. The operations that formerly
comprised the company’s Scripps Networks and interactive media divisions, which were spun off into
a separate publicly traded company (now Scripps Networks Interactive Inc.) on July 1, 2008, are
reported in previous periods as discontinued operations.
In February, the company closed the Rocky Mountain News after an unsuccessful search for a buyer.
As part of the process of exiting the Denver market, Scripps expects to transfer its 50 percent
interest in the Denver Newspaper Agency (DNA), which published the Rocky Mountain News and The
Denver Post under a joint operating agreement and Prairie Mountain Publishing (PMP), a Colorado
newspaper partnership, to MediaNews Group, which was the company’s partner in PMP as well as DNA.
In 2008 the company closed its Albuquerque newspaper, which had been operated under a joint
operating agreement, after an unsuccessful search for a buyer.
The quarterly results reflect continued weakness in advertising sales at the company’s newspapers
and television stations. Consolidated revenue decreased 20 percent to $205 million, compared with
$256 million in the first quarter of 2008. The loss from continuing operations, net of tax, was
$221 million, or $4.12 per share, compared with income from continuing operations, net of tax, of
$8.6 million, or 16 cents per share, in the 2008 quarter.
Income (loss) from continuing operations, net of tax, included the following items in the first
quarter:
| • | a preliminary non-cash impairment charge of $192 million to write down the carrying value of the goodwill and other intangible assets at the Scripps television stations, | ||
| • | operating losses and wind-down costs at the company’s newspapers operated under joint operating agreements and newspaper partnerships of $13.3 million in 2009 (compared with operating income at such newspapers of $1.2 million in 2008), and | ||
| • | a non-cash curtailment charge of $2.6 million related to the company’s decision to freeze its pension plan later this year. |
Excluding those items, the net loss from continuing operations attributable to Scripps shareholders
would have been $13.0 million, or 24 cents per share, in the first quarter of 2009, compared with
net income from continuing operations of $7.4 million, or 14 cents per share, in the year-ago
period.
At the end of the quarter, the company’s long-term debt stood at $73.1 million, an increase of
$12.0 million from the end of 2008. During the quarter, the value of cash and short-term
investments on the company’s balance sheet increased $18.3 million to $44.9 million. The increase
in cash and marketable securities was due primarily to the
reimbursement of taxes paid in the third quarter of 2008 on income attributable to Scripps Networks
Interactive prior to the spin-off.
“In the first quarter we made a series of tough decisions intended to improve our financial
position through the current economic downturn and beyond into what we believe will be a
restructured environment for local media,” said Rich Boehne, president and chief executive officer
of Scripps. “The most difficult decision, but also the one that eliminated significant financial
risk, was the shutdown of the Rocky Mountain News in Denver. Operating losses and expenses related
to the shutdown were confined to the first quarter, so now we move ahead sadly but in a much better
position to weather the economic storm and focus on the television and newspapers markets where we
have long-term opportunity. Unfortunately, the operating environment in the second quarter has
shown no signs of improvement over our experience in the first quarter.
“We also suspended the company’s match of employee contributions to their 401(k) accounts, reduced
salaries, eliminated bonuses, and decided to freeze our pension plan, plus we reduced or cut out a
long list of other expenses. These savings will become more significant as we move through the
remainder of the year.
“Despite all we’ve done to reduce expenses during these difficult days, we have not done so
indiscriminately. Today our low debt is a competitive advantage, allowing us to leverage our
investments in local news and information content. In this period of dramatic economic pressure,
we’re determined to stay focused on the needs of viewers, readers and advertisers.”
First-quarter results by segment are as follows:
Television
Revenue from the company’s television stations was $60.4 million in the first quarter, a decrease
of 20.5 percent from the first quarter of 2008.
Revenue broken down by category was:
| • | Local, down 22.1 percent to $35.6 million | ||
| • | National, down 16.9 percent to $18.4 million | ||
| • | Other, which includes retransmission, rose 41.5 percent to $4.2 million | ||
| • | Political was $177,000, compared to $3.1 million in the 2008 quarter |
The decrease in the local and national revenue was largely attributable to reduced spending by
advertisers in the automotive, financial services and retail categories. As is common for this
stage of the election cycle, there was virtually no political spending in the first quarter of
2009, compared with the year-ago period that included local, state and national primaries.
Cash expenses for the station group increased slightly to $62.8 million, compared with $61.8
million a year ago. Increased pension benefits costs and a curtailment charge related to the
company’s plans to freeze the pension plan later this year more than offset a 5 percent decrease in
other employee costs. Programming costs were 12 percent higher due to contractual increases for
syndicated programming in several key markets.
The segment loss for the television division was $2.4 million in the first quarter, compared with
$14.2 million in segment profit in the first quarter of 2008.
Newspapers
Year-over-year revenue from newspapers managed solely by Scripps fell 21.7 percent to $122 million.
Advertising revenue was down 28.6 percent to $85.8 million.
Advertising revenue broken down by category was:
| • | Local, down 24.9 percent to $26.6 million | ||
| • | Classified, down 37.7 percent to $26.6 million | ||
| • | National, down 25.7 percent to $6.0 million | ||
| • | Preprint and other, down 19.7 percent to $19.3 million | ||
| • | Online, down 26.5 percent to $7.3 million |
The decline in online ad revenue is attributable to the weakness in print classified advertising,
to which 55 percent of the online advertising is tied. Revenue from pure-play advertisers who only
purchase ads on the company’s newspaper Web sites rose 30 percent to $3.4 million.
Circulation revenue rose slightly to $30.6 million.
Cash expenses for Scripps newspapers were down 8.6 percent from the prior year to $119 million.
Employee costs, including higher pension benefits costs and a curtailment charge related to the
company’s plans to freeze the pension plan later this year, declined 7 percent during the quarter
compared with the year-ago period. Newsprint expense declined 16 percent despite a 27 percent
increase in the average price per ton during the quarter.
Segment profit at newspapers managed solely by the company was $2.9 million, compared with $25.6
million in the first quarter of 2008.
Licensing and Other Media
Revenue was $23.1 million, a 2.1 percent decrease from the prior-year period. Costs and expenses
declined 7.2 percent to $20 million, resulting in a 50 percent increase in segment profit to $3.2
million.
Conference call
The senior management of The E.W. Scripps Company will discuss the company’s first-quarter results
during a telephone conference call at 9 a.m. EDT today. Scripps will offer a live audio webcast of
the conference call. To access the webcast, visit www.scripps.com, choose “Shareholders”
then follow the link in the “Upcoming Events” section.
To access the conference call by telephone, dial 1-800-230-1092 (U.S.) or 1-612-234-9960
(International), approximately 10 minutes before the start of the call. Callers will need the name
of the call (“first-quarter earnings report”) to be granted access. Callers
also will be asked to provide their name and company affiliation. The media and general public are
provided access to the conference call on a listen-only basis.
A replay line will be open from 11 a.m. EDT May 4 until 11:59 p.m. EDT May 11. The domestic number
to access the replay is 1-800-475-6701 and the international number is 1-320-365-3844. The access
code for both numbers is 995121.
A replay of the conference call will be archived and available online for an extended period of
time following the call. To access the audio replay, visit www.scripps.com approximately
four hours after the call, choose “Shareholders” then follow the “audio archives” link on the left
navigation bar.
Forward-looking statements
This press release contains certain forward-looking statements related to the company’s businesses
that are based on management’s current expectations. Forward-looking statements are subject to
certain risks, trends and uncertainties, including changes in advertising demand and other economic
conditions that could cause actual results to differ materially from the expectations expressed in
forward-looking statements. All forward-looking statements should be evaluated with the
understanding of their inherent uncertainty. The company’s written policy on forward-looking
statements can be found on page F-3 of its 2008 SEC Form 10K. We undertake no obligation to
publicly update any forward-looking statements to reflect events or circumstances after the date
the statement is made.
About Scripps
The E.W. Scripps Company is a diverse, 130-year-old media enterprise with interests in television
stations, newspapers, local news and information Web sites, and licensing and syndication. The
company’s portfolio of locally focused media properties includes: 10 TV stations (six ABC
affiliates, three NBC affiliates and one independent); daily and community newspapers in 14 markets
and the Washington, D.C.-based Scripps Media Center, home of the Scripps Howard News Service; and
United Media, the licensor and syndicator of Peanuts, Dilbert and approximately 150 other features
and comics. For a full listing of Scripps media companies and their associated Web sites, visit
http://www.scripps.com/.
###
Contact Tim King, The E.W. Scripps Company, 513-977-3732
tim.king@scripps.com
tim.king@scripps.com
THE E. W. SCRIPPS COMPANY
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| (in thousands, except per share data) | 2009 | 2008 | Change | |||||||||
Operating revenues |
$ | 205,368 | $ | 255,694 | (19.7 | )% | ||||||
Costs and expenses, excluding separation costs |
(230,263 | ) | (234,166 | ) | (1.7 | )% | ||||||
Separation costs |
(1,493 | ) | (1,059 | ) | 41.0 | % | ||||||
Depreciation and amortization |
(11,763 | ) | (11,086 | ) | 6.1 | % | ||||||
Impairment of goodwill and indefinite-lived assets |
(216,413 | ) | — | |||||||||
Losses on disposal of property, plant and equipment |
(338 | ) | (103 | ) | ||||||||
Operating income (loss) |
(254,902 | ) | 9,280 | |||||||||
Interest expense |
(246 | ) | (6,101 | ) | ||||||||
Equity in earnings of JOAs and other joint ventures |
(419 | ) | 8,513 | |||||||||
Miscellaneous, net |
(1,028 | ) | 899 | |||||||||
Income (loss) from continuing operations before income taxes |
(256,595 | ) | 12,591 | |||||||||
Benefit (provision) for income taxes |
35,748 | (3,970 | ) | |||||||||
Income (loss) from continuing operations, net of tax |
(220,847 | ) | 8,621 | |||||||||
Income from discontinued operations, net of tax |
— | 97,740 | ||||||||||
Net income (loss) |
(220,847 | ) | 106,361 | |||||||||
Net income (loss) attributable to noncontrolling interests |
(147 | ) | 22,293 | |||||||||
Net income (loss) attributable to the shareholders of
The E.W. Scripps Company |
$ | (220,700 | ) | $ | 84,068 | |||||||
Net income (loss) per basic share of common stock attributable
to the shareholders of The E.W. Scripps Company: |
||||||||||||
Income (loss) from continuing operations |
$ | (4.12 | ) | $ | 0.16 | |||||||
Income from discontinued operations |
0.00 | 1.39 | ||||||||||
Net income (loss) per basic share of common stock |
$ | (4.12 | ) | $ | 1.55 | |||||||
Weighted average basic shares outstanding |
53,573 | 54,218 | ||||||||||
Net income (loss) per share amounts may not foot since each is calculated independently.
See notes to results of operations.
Notes to Results of Operations
1. OTHER CHARGES AND CREDITS
Loss from continuing operations before income tax was affected by the following:
2009 — Separation costs include the costs to separate and install separate information systems as
well as other costs related to our separation from SNI. Efforts to separate and install separate
systems are expected to continue through the end of the second quarter. These costs increased loss
from continuing operations by $1.5 million in the first quarter.
In the first quarter we recorded a $216 million, non-cash charge to reduce the carrying value
of our goodwill and other indefinite lived intangible assets for our Television division.
2. SEGMENT INFORMATION
We determine our business segments based upon our management and internal reporting structure. Our
reportable segments are strategic businesses that offer different products and services.
Our newspaper business segment includes daily and community newspapers in 15 markets in the U.S.
Newspapers earn revenue primarily from the sale of advertising to local and national advertisers
and from the sale of newspapers to readers.
JOAs and newspaper partnerships include a newspaper that is operated pursuant to the terms of joint
operating agreement. The newspaper in the JOA maintains an independent editorial operation and
receives a share of the operating profits of the combined newspaper operations. This segment also
includes newspaper partnerships. We account for our share of the earnings of our JOA and newspaper
partnerships using the equity method of accounting. Our equity in earnings of our JOA and
newspaper partnerships is included in “Equity in earnings of JOAs and other joint ventures” in our
results from operations. When we ceased the publication of our Albuquerque newspaper our investment
became a passive investment and the equity earnings are no longer included in segment profit from
2008 forward.
Television includes six ABC-affiliated stations, three NBC-affiliated stations and one independent
station. Our television stations reach approximately 10% of the nation’s television households.
Television stations earn revenue primarily from the sale of advertising to local and national
advertisers.
Licensing and other media aggregates our operating segments that are too small to report
separately, and primarily includes syndication and licensing of news features and comics.
In addition, certain corporate costs and expenses, including information technology, pensions and
other employee benefits, and other shared services, are allocated to our business segments. The
allocations are generally amounts agreed upon by management, which may differ from amounts that
would be incurred if such services were purchased separately by the business segment. Corporate
assets are primarily cash, cash equivalents and other short-term investments, property and
equipment primarily used for corporate purposes, and deferred income taxes.
Our chief operating decision maker (as defined by SFAS 131 — Segment Reporting) evaluates the
operating performance of our business segments and makes decisions about the allocation of
resources to our business segments using a measure we call segment profit. Segment profit excludes
interest, income taxes, depreciation and amortization, impairment charges, divested operating
units, restructuring activities (including our proportionate share of JOA restructuring
activities), investment results and certain other items that are included in net income (loss)
determined in accordance with accounting principles generally accepted in the United States of
America.
Information regarding our business segments is as follows:
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| (in thousands) | 2009 | 2008 | Change | |||||||||
Segment operating revenues: |
||||||||||||
Newspapers |
$ | 121,825 | $ | 155,599 | (21.7 | )% | ||||||
JOAs and newspaper partnerships |
19 | 61 | (68.9 | )% | ||||||||
Television |
60,406 | 76,019 | (20.5 | )% | ||||||||
Licensing and other |
23,118 | 23,619 | (2.1 | )% | ||||||||
Corporate |
— | 396 | ||||||||||
Total operating revenues |
$ | 205,368 | $ | 255,694 | (19.7 | )% | ||||||
Segment profit (loss): |
||||||||||||
Newspapers |
$ | 2,947 | $ | 25,550 | (88.5 | )% | ||||||
JOAs and newspaper partnerships |
(21,086 | ) | 235 | |||||||||
Television |
(2,413 | ) | 14,170 | |||||||||
Licensing and other |
3,135 | 2,088 | 50.1 | % | ||||||||
Corporate |
(7,812 | ) | (13,782 | ) | (43.3 | )% | ||||||
Depreciation and amortization |
(11,763 | ) | (11,086 | ) | ||||||||
Impairment of goodwill and indefinite-lived assets |
(216,413 | ) | — | |||||||||
Equity earnings in investments |
(85 | ) | 1,780 | |||||||||
Losses on disposal of property, plant and equipment |
(338 | ) | (103 | ) | ||||||||
Interest expense |
(246 | ) | (6,101 | ) | ||||||||
Separation costs |
(1,493 | ) | (1,059 | ) | ||||||||
Miscellaneous, net |
(1,028 | ) | 899 | |||||||||
Income (loss) from continuing operations before
income taxes |
$ | (256,595 | ) | $ | 12,591 | |||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| (in thousands) | 2009 | 2008 | ||||||
Depreciation: |
||||||||
Newspapers |
$ | 5,474 | $ | 5,373 | ||||
JOAs and newspaper partnerships |
309 | 324 | ||||||
Television |
4,759 | 4,413 | ||||||
Licensing and other media |
322 | 117 | ||||||
Corporate |
179 | 59 | ||||||
Total depreciation |
$ | 11,043 | $ | 10,286 | ||||
Amortization of intangibles: |
||||||||
Newspapers |
$ | 637 | $ | 519 | ||||
Television |
83 | 281 | ||||||
Total amortization of intangibles |
$ | 720 | $ | 800 | ||||
Additions to property, plant and equipment: |
||||||||
Newspapers |
$ | 13,072 | $ | 13,766 | ||||
JOAs and newspaper partnerships |
— | 17 | ||||||
Television |
957 | 4,714 | ||||||
Licensing and other |
158 | 665 | ||||||
Corporate |
61 | 787 | ||||||
Total additions to property, plant and equipment |
$ | 14,248 | $ | 19,949 | ||||
The following is segment operating revenues for newspapers:
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| (in thousands) | 2009 | 2008 | Change | |||||||||
Segment operating revenues: |
||||||||||||
Local |
$ | 26,552 | $ | 35,378 | (24.9 | )% | ||||||
Classified |
26,642 | 42,763 | (37.7 | )% | ||||||||
National |
5,982 | 8,051 | (25.7 | )% | ||||||||
Online |
7,314 | 9,947 | (26.5 | )% | ||||||||
Preprint and other |
19,269 | 24,006 | (19.7 | )% | ||||||||
Newspaper advertising |
85,759 | 120,145 | (28.6 | )% | ||||||||
Circulation |
30,637 | 30,514 | 0.4 | % | ||||||||
Other |
5,429 | 4,940 | 9.9 | % | ||||||||
Total operating revenues |
$ | 121,825 | $ | 155,599 | (21.7 | )% | ||||||
The following is segment operating revenues for television:
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| (in thousands) | 2009 | 2008 | Change | |||||||||
Segment operating revenues: |
||||||||||||
Local |
$ | 35,644 | $ | 45,746 | (22.1 | )% | ||||||
National |
18,372 | 22,104 | (16.9 | )% | ||||||||
Political |
177 | 3,055 | (94.2 | )% | ||||||||
Network compensation |
2,056 | 2,177 | (5.6 | )% | ||||||||
Other |
4,157 | 2,937 | 41.5 | % | ||||||||
Total operating revenues |
$ | 60,406 | $ | 76,019 | (20.5 | )% | ||||||
3. JOINT OPERATING AGREEMENT AND NEWSPAPER PARTNERSHIPS
Financial information related to our Denver JOA and Colorado newspaper partnership is as follows:
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| (in thousands) | 2009 | 2008 | Change | |||||||||
Equity in earnings of JOAs and newspaper partnerships: |
||||||||||||
Denver |
$ | — | $ | 6,905 | ||||||||
Colorado |
(334 | ) | (172 | ) | 94.2 | % | ||||||
Total equity in earnings |
(334 | ) | 6,733 | |||||||||
Operating revenues of JOAs and
newspaper partnerships |
19 | 61 | (68.9 | )% | ||||||||
Total |
(315 | ) | 6,794 | |||||||||
JOA editorial costs and expenses |
20,771 | 6,559 | ||||||||||
Contribution to segment profit (loss) |
$ | (21,086 | ) | $ | 235 | |||||||
We closed our Albuquerque newspaper in the first quarter of 2008 after an unsuccessful search for a
buyer. Because we no longer publish a newspaper in the Albuquerque market, our share of the income
or loss of the Albuquerque JOA is not reported in our segment results. Our share of the results of
operations of the Albuquerque JOA, which are reported in equity earnings in investments, was $0.1
million in losses in 2009 and $1.9 million in income in 2008.
4. CONSOLIDATED BALANCE SHEETS
The following are the Condensed Consolidated Balance Sheets for The E.W. Scripps Company:
| As of | As of | |||||||
| March 31, | December 31, | |||||||
| (in thousands) | 2009 | 2008 | ||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 9,958 | $ | 5,376 | ||||
Short-term investments |
34,889 | 21,130 | ||||||
Other current assets |
200,225 | 259,030 | ||||||
Total current assets |
245,072 | 285,536 | ||||||
Investments |
11,722 | 12,720 | ||||||
Property, plant and equipment |
429,730 | 427,138 | ||||||
Goodwill |
— | 215,432 | ||||||
Other intangible assets |
24,743 | 26,464 | ||||||
Deferred income taxes |
126,906 | 112,405 | ||||||
Other long-term assets |
7,885 | 9,281 | ||||||
TOTAL ASSETS |
$ | 846,058 | $ | 1,088,976 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 30,285 | $ | 55,889 | ||||
Customer deposits and unearned revenue |
35,712 | 38,817 | ||||||
Accrued expenses and other current liabilities |
83,577 | 92,878 | ||||||
Total current liabilities |
149,574 | 187,584 | ||||||
Long-term debt |
73,130 | 61,166 | ||||||
Other liabilities (less current portion) |
228,221 | 245,259 | ||||||
Total equity |
395,133 | 594,967 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 846,058 | $ | 1,088,976 | ||||
5. NON-GAAP FINANCIAL INFORMATION
In addition to the results reported in accordance with accounting principals generally accepted in
the United States (“GAAP”) included in this press release, the company has provided information
regarding Adjusted net income (loss) from continuing operations. Adjusted net income from
continuing operations excludes impairment of goodwill and indefinite-lived assets, pension
curtailment loss and our share of the (income) loss for our JOA and newspaper partnerships.
Management believes Adjusted net income (loss) from continuing operations better reflects the
ongoing performance of the company and enables management and investors to meaningfully trend,
analyze and benchmark the performance of the company’s operations. Adjusted net income (loss) from
continuing operations excluding should not be considered a substitute for Net income (loss)
calculated in accordance with GAAP.
The table below reconciles Net income (loss) from continuing operations prepared in accordance with
GAAP to Adjusted net income (loss) from continuing operations:
| Three months ended | ||||||||
| March 31, | ||||||||
| (in thousands) | 2009 | 2008 | ||||||
Net income (loss) from continuing operations (GAAP basis) |
$ | (220,847 | ) | $ | 8,621 | |||
Impairment of goodwill and indefinite-lived assets, net of tax |
191,943 | — | ||||||
Pension curtailment loss, net of tax |
2,566 | — | ||||||
(Income) loss for our JOA and newspaper partnerships, net of tax |
13,335 | (1,243 | ) | |||||
Adjusted net income (loss) from continuing operations |
$ | (13,003 | ) | $ | 7,378 | |||