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): November 5, 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)) |
Item 2.02 Results of Operations and Financial Condition
On November 5, 2009, we released information regarding results of operations for the quarter and
year-to-date period ended September 30, 2009. A copy of the press release is filed as Exhibit
99.05.
Certain forward-looking statements related to our businesses are included in this discussion.
Those forward-looking statements reflect 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. You should evaluate our forward-looking statements, which are as of
the date of this filing, with the understanding of their inherent uncertainty. We undertake no
obligation to update any forward-looking statements to reflect events or circumstances after the
date the statements.
Item 9.01 Financial Statements and Exhibits
| Exhibit | Exhibit No. | |||||
| Number | Description of Item | Incorporated | ||||
99.05
|
Press release dated November 5, 2009 | 99.05 | ||||
2
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: November 5, 2009
3
EXHIBIT INDEX
| Exhibit | Exhibit No. | |||||
| Number | Description of Item | Incorporated | ||||
99.05
|
Press release dated November 5, 2009 | 99.05 | ||||
4
EXHIBIT 99.05
Scripps reports third-quarter results
| For immediate release — November 5, 2009 |
(NYSE: SSP) |
CINCINNATI — The E.W. Scripps Company reported a net loss from continuing operations of $3.5
million, or 7 cents per share, in the third quarter of 2009, compared with a net loss from
continuing operations of $3.1 million, or 6 cents per share, in the 2008 quarter. In an environment
of declining revenues, disciplined expense management enabled the company to generate positive
segment profit in all three of its operating divisions during the quarter.
Also during the quarter, the company strengthened its financial condition by reducing long-term
debt to a level that is below the value of its cash and short-term investments.
Consolidated revenues were $186 million, a 19 percent decrease from $230 million in the third
quarter of 2008.
“We’re determined to position Scripps for continued success in the rapidly evolving news industry.
In the third quarter we made significant progress,” said Rich Boehne, president and chief executive
officer of The E.W. Scripps Company.
“During the third quarter, we significantly reduced our bank debt, giving us the flexibility we
need to pursue strategies for expanding audiences and revenue streams across multiple platforms
despite the difficult economic environment.
“In the TV station markets, we’re seeing some modest improvement in the flow of advertising dollars
but we intend to continue funding much of our investments in content and new business categories
through the shifting of internal resources. At the newspapers, where ad revenues continue to be
very weak, we’re deep into a restructuring of operations that will both reduce expenses and bring a
sharper focus to content and advertising sales.
“As we head into the last quarter of this very difficult year, we believe the advertising and
expense trends we experienced in the third quarter will continue. Newspaper ad revenue declines are
moderating slightly, and local and national TV revenues have shown gradual sequential improvement.
Comparisons for the TV station group are difficult given the $26 million in political ad revenues
we generated during the fourth quarter of 2008.”
The operations that formerly comprised the company’s Scripps Networks and interactive media
divisions, which were spun off into Scripps Networks Interactive on July 1, 2008, are reported in
previous periods as discontinued operations, as is the joint
operating agreement (JOA) that included the Rocky Mountain News, the company’s newspaper in Denver that was
closed in February 2009.
As part of the wind-down of the JOA in Denver, Scripps also transferred to its partner the
company’s 50-percent partnership interest in Prairie Mountain Publishing (PMP). The results for PMP
are reflected in the attached financial tables under “Equity in earnings of JOAs and other joint
ventures.”
Third-quarter results by segment are as follows:
Television
Revenue from the company’s television stations was $59.8 million in the third quarter, a decrease
of 22 percent from the third quarter of 2008, which benefitted from Olympic advertising and heavy
political spending.
Advertising revenue broken down by category was:
| • | Local, down 15 percent to $36.0 million | ||
| • | National, down 18 percent to $16.1 million | ||
| • | Political was $1.7 million, compared with $10.3 million in the 2008 quarter | ||
| • | Other revenue, which includes retransmission fees for carriage of the stations on cable and satellite systems, up 44 percent to $4.2 million |
The decrease in revenue from local and national advertisers was largely attributable to reduced
spending by automotive, financial services and retail advertisers, but the year-over-year declines
in local and national advertising showed sequential improvement compared with the second quarter,
when local was down 26 percent and national was down 29 percent.
As is common for this stage of the election cycle, political spending in the third quarter of 2009
was down significantly compared with the year-ago period that included political advertising in
advance of the November elections at the local, state and national levels.
Segment expenses for the station group decreased 5.4 percent to $56.7 million, compared with $60.0
million a year ago. Programming costs were 11 percent higher due to contractual increases for
syndicated programming in several key markets, but they were more than offset by reduced employee
costs and expense savings in production and distribution.
The television division reported segment profit of $3.1 million in the third quarter, compared with
$17.0 million in segment profit in the year-ago quarter.
Newspapers
Year-over-year revenue from Scripps newspapers fell 20 percent to $104 million. Advertising revenue
was down 27 percent to $73.3 million. Both figures reflect improvement of approximately 2
percentage points compared with the declines from the second quarter of 2008 to the second quarter
of 2009.
Advertising revenue broken down by category was:
| • | Local, down 27 percent to $21.5 million | ||
| • | Classified, down 36 percent to $22.3 million | ||
| • | National, down 17 percent to $4.9 million | ||
| • | Preprint and other, down 21 percent to $17.3 million | ||
| • | Online, down 20 percent to $7.3 million |
The decline in online advertising revenue is attributable to the weakness in print classified
advertising, to which roughly half of the online advertising is tied. Revenue from online-only ad
sales rose 38 percent to $3.9 million.
Circulation revenue rose 2.8 percent to $27.3 million.
Year-over-year employee costs declined 15 percent in the quarter due to this year’s decision to
adjust compensation programs. Excluding the favorable impact of a $3.0 million adjustment for
self-insured health care and disability claims in the third quarter of 2008 that did not repeat
this year, the year-over-year decrease in employee costs for the newspaper division in the third
quarter of 2009 would have been 19 percent. Newsprint and ink expense in the third quarter
declined 51 percent due to a 30 percent decrease in volume and a 33 percent decrease in the average
price per ton.
Segment expenses for Scripps newspapers were down 20 percent from the prior-year period to $93.5
million.
Segment profit in the newspaper division was $10.9 million, compared with $14.0 million in the
third quarter of 2008.
Licensing and other media
Third-quarter revenues from our licensing and syndication businesses were flat at $22.2 million.
Costs and expenses, including royalty payments, declined 7.6 percent to $19.1 million, resulting in
segment profit of $3.2 million, compared with $1.5 million in the prior-year period.
Financial flexibility
During the quarter, the company used Federal tax refunds totaling $28.4 million and cash on hand to
reduce borrowings under its recently amended revolving credit facility. Long-term debt at the end
of the third quarter was $29.5 million, while cash, cash equivalents and short-term investments
totaled $31.7 million. At the end of the second quarter, long-term debt was $73.1 million, and
cash, cash equivalents and short-term investments totaled $41.9 million.
Year-to-date results
Revenues from continuing operations through the first nine months of the year were $585 million,
compared with $737 million in the year-ago period.
The company reported a net loss from continuing operations in the first three quarters of 2009 of
$206 million, or $3.83 per share, including a charge for the
impairment of goodwill in the company’s television segment, restructuring charges and charges related to the
separation of the company’s cable networks and comparison shopping services into a separate,
publicly traded company. The net loss from continuing operations in the first three quarters of
2008 was $548 million, or $10.10 per share, including separation charges and a charge for the
impairment of goodwill and equity investments.
The year-to-date 2009 results reflect two non-recurring items from the first quarter, net of taxes:
1) an impairment charge of $192 million to write down the carrying value of goodwill and other
intangible assets at the Scripps television stations, and 2) a non-cash curtailment charge of $1.9
million related to the company’s decision to freeze its pension plan on June 30, 2009.
Conference call
The senior management of The E.W. Scripps Company will discuss the company’s third-quarter results
during a telephone conference call at 9 a.m. EST today. Scripps will offer a live audio webcast of
the conference call. To access the webcast, visit www.scripps.com, choose “Investor Relations” then
follow the link in the “Upcoming Events” section.
To access the conference call by telephone, dial 1-800-398-9386 (U.S.) or 1-612-332-0345
(International), approximately 10 minutes before the start of the call. Callers will need the name
of the call (“third 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. EST Nov. 5 until 11:59 p.m. EST Nov. 12. 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 116973.
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 “investor relations” 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 13 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 | Nine months ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| (in thousands, except per share data) | 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||
Operating revenues |
$ | 186,401 | $ | 230,245 | (19.0 | )% | $ | 584,927 | $ | 736,768 | (20.6 | )% | ||||||||||||
Costs and expenses, excluding separation costs |
(177,358 | ) | (203,971 | ) | (13.0 | )% | (564,034 | ) | (658,829 | ) | (14.4 | )% | ||||||||||||
Separation and restructuring costs |
(1,221 | ) | (22,020 | ) | (94.5 | )% | (4,155 | ) | (31,629 | ) | (86.9 | )% | ||||||||||||
Depreciation and amortization |
(10,907 | ) | (11,947 | ) | (8.7 | )% | (33,415 | ) | (34,517 | ) | (3.2 | )% | ||||||||||||
Impairment of goodwill and indefinite-lived assets |
— | — | (216,413 | ) | (778,900 | ) | ||||||||||||||||||
Gains (losses) on disposal of property, plant and
equipment |
130 | (17 | ) | (227 | ) | 2,244 | ||||||||||||||||||
Operating loss |
(2,955 | ) | (7,710 | ) | (233,317 | ) | (764,863 | ) | ||||||||||||||||
Interest expense |
(1,149 | ) | — | (1,558 | ) | (10,547 | ) | |||||||||||||||||
Equity in earnings of JOAs and other joint ventures |
586 | 649 | 798 | 3,399 | ||||||||||||||||||||
Write-down of investment in newspaper partnership |
— | — | — | (10,000 | ) | |||||||||||||||||||
Losses on repurchases of debt |
— | — | — | (26,380 | ) | |||||||||||||||||||
Miscellaneous, net |
270 | (508 | ) | (988 | ) | 7,136 | ||||||||||||||||||
Loss from continuing operations before income taxes |
(3,248 | ) | (7,569 | ) | (235,065 | ) | (801,255 | ) | ||||||||||||||||
Benefit (provision) for income taxes |
(293 | ) | 4,514 | 28,886 | 253,457 | |||||||||||||||||||
Loss from continuing operations, net of tax |
(3,541 | ) | (3,055 | ) | (206,179 | ) | (547,798 | ) | ||||||||||||||||
Income (loss) from discontinued operations, net of
tax |
280 | (13,677 | ) | (15,676 | ) | 130,627 | ||||||||||||||||||
Net loss |
(3,261 | ) | (16,732 | ) | (221,855 | ) | (417,171 | ) | ||||||||||||||||
Net income (loss) attributable to noncontrolling
interests |
— | 67 | (147 | ) | 46,801 | |||||||||||||||||||
Net loss attributable to the shareholders of
The E.W. Scripps Company |
$ | (3,261 | ) | $ | (16,799 | ) | $ | (221,708 | ) | $ | (463,972 | ) | ||||||||||||
Net income (loss) per basic share of common
stock attributable
to the shareholders of The E.W. Scripps
Company: |
||||||||||||||||||||||||
Loss from continuing operations |
$ | (0.07 | ) | $ | (0.06 | ) | $ | (3.83 | ) | $ | (10.10 | ) | ||||||||||||
Income (loss) from discontinued operations |
0.01 | (0.25 | ) | (0.29 | ) | 1.55 | ||||||||||||||||||
Net loss per basic share of common stock |
$ | (0.06 | ) | $ | (0.31 | ) | $ | (4.13 | ) | $ | (8.55 | ) | ||||||||||||
Weighted average basic shares outstanding |
53,986 | 54,182 | 53,734 | 54,254 | ||||||||||||||||||||
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 and restructuring costs include the costs to restructure our operations and to
install separate information systems as well as other costs related to affect the spin-off of SNI.
These costs increased loss from continuing operations before taxes by $1.2 million in the third
quarter and $4.2 million year-to-date.
In the first quarter we recorded a $215 million, non-cash charge to reduce the carrying value of
our goodwill for our Television division.
We also recorded a $1 million non-cash charge to reduce the carrying value of the FCC license for
our Lawrence, Kansas, television station.
2008 — In the second quarter we recorded a $779 million, non-cash charge to reduce the carrying
value of goodwill. We also recorded a non-cash charge of $10 million to reduce the carrying value
of our investment in the Colorado newspaper partnership to our share of the estimated fair value of
its net assets.
In the second quarter of 2008, we redeemed the remaining balances of our outstanding notes and
recorded a $26.4 million loss on the extinguishment of debt.
Transaction costs and other activities related to the spin-off of SNI increased our costs and
expenses by $22 million and $31.6 million, respectively for the three-and-nine-month periods ended
September 30, 2008.
Investment results, reported in the caption “Miscellaneous, net” in our Condensed Consolidated
Statements of Operations, include realized gains of $7.5 million from the sale of certain
investments in the nine-month period ended September 30, 2008.
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 13 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.
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 primarily include licensing of worldwide copyrights relating to
“Peanuts,” “Dilbert” and other properties for use on numerous products, including plush toys,
greeting cards and apparel, for promotional purposes and for exhibit on television and other media
syndication of news features and comics and other features for the newspaper industry.
The accounting policies of each of our business segments are those described in Note 1 in our
Annual Report on Form 10-K for the year ended December 31, 2008.
We allocate a portion of certain corporate costs and expenses, including information technology,
pensions and other employee benefits, and other shared services, to our business segments. The
allocations are generally amounts agreed upon by management, which may differ from an arms-length
amount. 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 evaluates the operating performance of our business segments and
makes decisions about the allocation of resources to our business segments using a measure called
segment profit. Segment profit excludes interest, income taxes, depreciation and amortization,
impairment charges, divested operating units, restructuring, 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 | Nine months ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| (in thousands) | 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||
Segment operating revenues: |
||||||||||||||||||||||||
Newspapers |
$ | 104,397 | $ | 131,103 | (20.4 | )% | $ | 338,031 | $ | 431,135 | (21.6 | )% | ||||||||||||
JOA and newspaper partnerships |
— | 25 | — | 74 | ||||||||||||||||||||
Television |
59,782 | 76,919 | (22.3 | )% | 181,286 | 233,458 | (22.3 | )% | ||||||||||||||||
Licensing and other |
22,222 | 22,185 | 0.2 | % | 65,610 | 71,645 | (8.4 | )% | ||||||||||||||||
Corporate and shared services |
— | 13 | — | 456 | ||||||||||||||||||||
Total operating revenues |
$ | 186,401 | $ | 230,245 | (19.0 | )% | $ | 584,927 | $ | 736,768 | (20.6 | )% | ||||||||||||
Segment profit (loss): |
||||||||||||||||||||||||
Newspapers |
$ | 10,875 | $ | 14,001 | (22.3 | )% | $ | 29,252 | $ | 58,625 | (50.1 | )% | ||||||||||||
JOA and newspaper partnerships |
— | 268 | (211 | ) | (813 | ) | (74.0 | )% | ||||||||||||||||
Television |
3,057 | 16,966 | (82.0 | )% | 5,493 | 49,441 | (88.9 | )% | ||||||||||||||||
Licensing and other |
3,150 | 1,547 | 8,173 | 6,088 | 34.2 | % | ||||||||||||||||||
Corporate and shared services |
(8,040 | ) | (6,458 | ) | 24.5 | % | (22,027 | ) | (35,456 | ) | (37.9 | )% | ||||||||||||
Depreciation and amortization |
(10,907 | ) | (11,947 | ) | (33,415 | ) | (34,517 | ) | ||||||||||||||||
Impairment of goodwill and
indefinite-lived assets |
— | — | (216,413 | ) | (778,900 | ) | ||||||||||||||||||
Equity earnings in newspaper
partnership |
587 | 599 | 1,011 | 3,453 | ||||||||||||||||||||
Gains (losses) on disposal of
property, plant and equipment |
130 | (17 | ) | (227 | ) | 2,244 | ||||||||||||||||||
Interest expense |
(1,149 | ) | — | (1,558 | ) | (10,547 | ) | |||||||||||||||||
Separation and restructuring costs |
(1,221 | ) | (22,020 | ) | (4,155 | ) | (31,629 | ) | ||||||||||||||||
Write-down of investment in newspaper
partnership |
— | — | — | (10,000 | ) | |||||||||||||||||||
Losses on repurchases of debt |
— | — | — | (26,380 | ) | |||||||||||||||||||
Miscellaneous, net |
270 | (508 | ) | (988 | ) | 7,136 | ||||||||||||||||||
Loss from continuing operations before
income taxes |
$ | (3,248 | ) | $ | (7,569 | ) | $ | (235,065 | ) | $ | (801,255 | ) | ||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Depreciation: |
||||||||||||||||
Newspapers |
$ | 5,715 | $ | 5,517 | $ | 17,026 | $ | 16,327 | ||||||||
JOA and newspaper partnerships |
— | 305 | — | 916 | ||||||||||||
Television |
4,305 | 4,788 | 13,399 | 13,925 | ||||||||||||
Licensing and other |
312 | 242 | 949 | 478 | ||||||||||||
Corporate and shared services |
193 | 285 | 556 | 460 | ||||||||||||
Total depreciation |
$ | 10,525 | $ | 11,137 | $ | 31,930 | $ | 32,106 | ||||||||
Amortization of intangibles: |
||||||||||||||||
Newspapers |
$ | 297 | $ | 525 | $ | 1,234 | $ | 1,563 | ||||||||
Television |
85 | 285 | 251 | 848 | ||||||||||||
Total amortization of intangibles |
$ | 382 | $ | 810 | $ | 1,485 | $ | 2,411 | ||||||||
Additions to property, plant and equipment: |
||||||||||||||||
Newspapers |
$ | 11,804 | $ | 14,474 | $ | 34,069 | $ | 39,895 | ||||||||
JOA and newspaper partnerships |
17 | 1 | 17 | 31 | ||||||||||||
Television |
3,677 | 5,654 | 5,156 | 16,675 | ||||||||||||
Licensing and other |
30 | 270 | 327 | 1,538 | ||||||||||||
Corporate and shared services |
43 | 3,421 | 138 | 3,583 | ||||||||||||
Total additions to property, plant and equipment |
$ | 15,571 | $ | 23,820 | $ | 39,707 | $ | 61,722 | ||||||||
The following is segment operating revenue for newspapers:
| Three months ended | Nine months ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| (in thousands) | 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||
Segment operating revenues: |
||||||||||||||||||||||||
Local |
$ | 21,490 | $ | 29,230 | (26.5 | )% | $ | 71,656 | $ | 97,228 | (26.3 | )% | ||||||||||||
Classified |
22,312 | 34,644 | (35.6 | )% | 73,096 | 117,078 | (37.6 | )% | ||||||||||||||||
National |
4,937 | 5,975 | (17.4 | )% | 15,953 | 20,744 | (23.1 | )% | ||||||||||||||||
Online |
7,278 | 9,058 | (19.7 | )% | 21,928 | 28,800 | (23.9 | )% | ||||||||||||||||
Preprint and other |
17,263 | 21,739 | (20.6 | )% | 55,810 | 68,851 | (18.9 | )% | ||||||||||||||||
Newspaper advertising |
73,280 | 100,646 | (27.2 | )% | 238,443 | 332,701 | (28.3 | )% | ||||||||||||||||
Circulation |
27,309 | 26,576 | 2.8 | % | 86,511 | 85,079 | 1.7 | % | ||||||||||||||||
Other |
3,808 | 3,881 | (1.9 | )% | 13,077 | 13,355 | (2.1 | )% | ||||||||||||||||
Total operating revenues |
$ | 104,397 | $ | 131,103 | (20.4 | )% | $ | 338,031 | $ | 431,135 | (21.6 | )% | ||||||||||||
The following is segment operating revenue for television:
| Three months ended | Nine months ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| (in thousands) | 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||
Segment operating revenues: |
||||||||||||||||||||||||
Local |
$ | 35,955 | $ | 42,350 | (15.1 | )% | $ | 108,925 | $ | 138,519 | (21.4 | )% | ||||||||||||
National |
16,064 | 19,539 | (17.8 | )% | 51,328 | 65,493 | (21.6 | )% | ||||||||||||||||
Political |
1,651 | 10,293 | (84.0 | )% | 2,161 | 14,968 | (85.6 | )% | ||||||||||||||||
Network compensation |
1,927 | 1,854 | 3.9 | % | 5,926 | 5,870 | 1.0 | % | ||||||||||||||||
Other |
4,185 | 2,883 | 45.2 | % | 12,946 | 8,608 | 50.4 | % | ||||||||||||||||
Total operating revenues |
$ | 59,782 | $ | 76,919 | (22.3 | )% | $ | 181,286 | $ | 233,458 | (22.3 | )% | ||||||||||||
3. CONSOLIDATED BALANCE SHEETS
The following are our Condensed Consolidated Balance Sheets:
| As of | As of | |||||||
| September 30, | December 31, | |||||||
| (in thousands) | 2009 | 2008 | ||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 10,408 | $ | 5,376 | ||||
Short-term investments |
21,254 | 21,130 | ||||||
Other current assets |
214,630 | 259,030 | ||||||
Total current assets |
246,292 | 285,536 | ||||||
Investments |
10,812 | 12,720 | ||||||
Property, plant and equipment |
432,107 | 426,671 | ||||||
Goodwill |
— | 215,432 | ||||||
Other intangible assets |
23,980 | 26,464 | ||||||
Deferred income taxes |
63,075 | 80,600 | ||||||
Other long-term assets |
14,367 | 9,281 | ||||||
Assets of discontinued operations — noncurrent |
— | 32,272 | ||||||
TOTAL ASSETS |
$ | 790,633 | $ | 1,088,976 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 25,814 | $ | 55,889 | ||||
Customer deposits and unearned revenue |
32,014 | 38,817 | ||||||
Accrued expenses and other current liabilities |
77,205 | 90,653 | ||||||
Liabilities of discontinued operations — current |
— | 2,225 | ||||||
Total current liabilities |
135,033 | 187,584 | ||||||
Long-term debt |
29,455 | 61,166 | ||||||
Other liabilities (less current portion) |
190,855 | 245,259 | ||||||
Total equity |
435,290 | 594,967 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 790,633 | $ | 1,088,976 | ||||