PTZ Pulitzer

Pulitzer Inc. Reports Second-Period Revenue For Four Weeks Ended February 29, 2004 ST. LOUIS, March 16 /PRNewswire-FirstCall/ -- Pulitzer Inc. today announced that revenue increased 4.6 percent for the four-week accounting period ended February 29,2004 and increased 3.3 percent for the nine-week year-to-date period when compared to the respective 2003 period. February 2004 advertising revenue in St. Louis and at the 12 Pulitzer Newspapers, Inc. (the "PNI Group") markets increased 4.5 percent, with increases of 2.0 percent at the St. Louis operations and 11.6 percent at the PNI Group. On a comparable basis, excluding the results of the PNI Group acquisitions absent in the comparable period of 2003, total revenue increased 3.8 percent for the four-week period ended February 29, 2004 and increased 2.5 percent for the nine-week year-to-date period. Total comparable advertising revenue increased 3.6 percent for the four-week period ended February 29, 2004 and increased 2.7 percent for the nine-week year-to-date period. February 2004 comparable advertising revenue increased 2.0 percent at the St. Louis operations and 8.1 percent at the PNI Group. Comparable advertising revenue increased 1.4 percent at the St. Louis operations and 6.6 percent at the PNI Group for the nine-week year-to-date period. The principal components of the second-period comparable advertising revenue results for St. Louis and the PNI Group were: -- Comparable retail advertising revenue, including preprints, increased 1.3 percent. Comparable retail ROP revenue increased 2.6 percent, principally due to strength in the grocery and electronic categories, as well as gains in local territory revenue, which increased 6.3 percent in St. Louis. These gains were partially offset by weakness in the department store, entertainment, home improvement and furniture segments. Comparable St. Louis and the PNI Group retail ROP revenue increased 2.0 percent and 3.7 percent, respectively. Comparable retail preprint revenue decreased 4.1 percent in St. Louis and increased 4.6 percent at the PNI Group. -- Comparable national advertising revenue, including preprints, decreased 10.4 percent versus the comparable 2003 period principally due to weakness in the pharmaceutical, package goods, and travel categories, particularly in St. Louis. Comparable national preprint revenue increased 18.6 percent for the period and comparable national ROP revenue decreased 14.0 percent. Comparable national advertising revenue, including preprints, decreased 11.2 percent in St. Louis and increased 4.8 percent at the PNI Group. -- Comparable classified revenue increased 11.0 percent from last year, with growth in all major categories. February 2004 revenue associated with the Company's 50 percent interest in the Tucson Newspaper Agency ("TNI") decreased 2.6 percent and total advertising revenue decreased 3.2 percent. TNI retail revenue, including preprints, decreased 5.6 percent with a 16.2 percent decrease in retail ROP partially offset by a 34.6 percent increase in retail preprint revenue. Local territory revenues decreased 6.1 percent for the period. TNI national revenue, including preprints, decreased 34.6 percent due to weakness in the pharmaceutical segment. February classified revenue increased 5.9 percent. Comparable Classified Advertising Revenue Percentage change 2004 versus 2003 PERIOD 2 PNI Total Total Pulitzer, St. Louis Group Pulitzer TNI including TNI Help Wanted 8.5% 24.3% 11.7% 41.5% 15.1% Automotive 1.7% 6.3% 2.8% (6.1%) 1.7% Real Estate 12.0% 26.0% 15.7% (8.3%) 13.1% Total classified revenue 9.4% 15.8% 11.0% 5.9% 10.4% Earnings Guidance (see Notes) In December, the Company provided guidance for full-year 2004 base earnings of at least $2.10 per fully diluted share. However, unanticipated softness from major retail advertisers, particularly in St. Louis, and costs related to the start-up of the new direct mail business in St. Louis, principally in the first and second quarters, make achieving this level of base earnings more challenging. The Company will provide additional guidance as the impact of these factors becomes clearer. Pulitzer Inc., through various subsidiaries and affiliated entities, isengaged in newspaper publishing and related new media activities. The Company's newspaper operations include two major metropolitan dailies, the St. Louis Post-Dispatch and the Arizona Daily Star in Tucson, Ariz., and, through its Pulitzer Newspapers, Inc. (PNI Group) subsidiary, 12 other dailies and more than 65 weekly newspapers, shoppers and niche publications. The PNI Group dailies are The Pantagraph, Bloomington, Ill.; The Daily Herald, Provo, Utah; the Santa Maria Times, Santa Maria, Calif.; The Napa Valley Register, Napa, Calif.; The World, Coos Bay, Ore.; The Sentinel, Hanford, Calif.; the Arizona Daily Sun, Flagstaff, Ariz.; The Daily Chronicle, DeKalb, Ill.; The Garden Island, Lihue, Hawaii; the Daily Journal, Park Hills, Mo.; The Lompoc Record, Lompoc, Calif.; and The Daily News, Rhinelander, Wisc. The Company's newspaper operations also include the Suburban Journals of Greater St. Louis, a group of 38 weekly papers and various niche publications. The Company's new media and interactive initiatives include STLtoday.com in St. Louis, azstarnet.com in Tucson, and Web sites for all of its other dailies. Pulitzer Inc. is the successor to the company originally founded by Joseph Pulitzer in St. Louis in 1878. For further information, visit our Web site at http://www.pulitzerinc.com/. NOTES: Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and other factors include, but are not limited to, industry cyclicality, the seasonal nature of the business, changes in pricing or other actions by competitors or suppliers (including newsprint), outcome of labor negotiations, capital or similar requirements, and general economic conditions, any of which may impact advertising and circulation revenues and various types of expenses, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in "forward-looking statements" are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Accordingly, investors are cautioned not to place undue reliance on any such "forward-looking statements," and the Company disclaims any obligation to update the information contained herein or to publicly announce the result of any revisions tosuch "forward-looking statements" to reflect future events or developments. The Company's calculation of "Base Earnings" and "Base Earnings per Diluted Share," including guidance contained herein for full-year 2004 base earnings per diluted share, exclude gains and losses related to certain non- operating investments that are not a strategic component of the Company's capital structure or operating plans (principally, investments in new media companies and partnerships making similar investments), and employment termination inducements associated with positions that will not be staffed. Gains or losses on the sale of marketable securities reflect activity in a strategic component of the Company's capital structure and are, therefore, included in the determination of "Base Earnings," and "Base Earnings per Diluted Share." The Company cannot currently determine full-year 2004 investment gains and losses, if any, related to certain non-operating investments or future employment termination inducements, if any. The Company's calculation of "Base Earnings" and "Base Earnings per Diluted Share," including guidance contained herein for full-year 2004 base earnings per diluted share, may not be comparable to similarly titled measures reported by other companies. "Base Earnings" and "Base Earnings per Diluted Share," as defined above, are not measures of performance under generally accepted accounting principles ("GAAP") and should not be construed as substitutes for consolidated net income and diluted earnings per share as a measure of performance. However, management uses "Base Earnings" and "Base Earnings per Diluted Share" for comparing the Company's past, current, and future performance and believes that they provide meaningful and comparable information to investors to aid in their analysis of the Company's performance relative to other periods and to its peers. PULITZER INC. AND SUBSIDIARIES PERIOD REVENUE AND STATISTICAL REPORT (Revenue in thousands--Unaudited) Four Four Nine Nine Weeks Weeks Weeks Weeks Ended Ended Ended Ended Feb. 29, Mar. 2, Feb. 29, Mar. 2, 2004 2003 Change 2004 2003 Change (Note 4) (Note 4) Consolidated Operating Revenue (Note 1): Advertising: Retail $ 8,896 $ 8,583 3.6% $ 18,622 $ 17,755 4.9% National 2,045 2,378 (14.0%) 3,950 4,680 (15.6%) Classified 10,094 8,988 12.3% 21,730 20,000 8.7% Total 21,035 19,949 5.4% 44,302 42,435 4.4% Preprints 4,311 4,297 0.3% 9,096 9,093 0.0% Total Advertising 25,346 24,246 4.5% 53,398 51,528 3.6% Circulation 6,536 6,144 6.4% 14,240 13,914 2.3% Other 611 669 (8.7%) 1,213 1,221 (0.7%) Total $32,493 $31,059 4.6% $ 68,851 $ 66,663 3.3% Operating Revenue of Consolidated Subsidiaries: St. Louis Operations (Note 2): Advertising (Note 3): $18,178 $17,824 2.0% $ 38,111 $ 37,602 1.4% Circulation 4,913 4,499 9.2% 10,657 10,308 3.4% Other 194 185 4.9% 370 296 25.0% Total $23,285 $22,508 3.5% $ 49,138 $ 48,206 1.9% Pulitzer Newspapers, Inc. Advertising (Note 3): $ 7,168 $ 6,422 11.6% $ 15,287 $ 13,926 9.8% Circulation 1,623 1,645 (1.3%) 3,583 3,606 (0.6%) Other 417 484 (13.8%) 843 925 (8.9%) Total $ 9,208 $ 8,551 7.7% $ 19,713 $ 18,457 6.8% Operating Revenue of Unconsolidated Newspaper Joint Venture: Pulitzer's 50% share of Tucson Newspaper Agency: Advertising (Note 3): $ 3,327 $ 3,436 (3.2%) $ 7,046 $ 7,216 (2.4%) Circulation 935 945 (1.1%) 2,091 2,107 (0.8%) Other 32 26 23.1% 91 66 37.9% Total $ 4,294 $ 4,407 (2.6%) $ 9,228 $ 9,389 (1.7%) Note 1 Year-to-year comparisons are affected by prior-year weekly newspaper acquisitions that complement the Company's newspapers in several markets. On a comparable basis, excluding the impactof the acquisitions for comparable ownership periods in each year, advertising and total revenues would have increased as follows: Four Weeks Nine Weeks Comparable Change Comparable Change Total PNI Total PNI Pulitzer Group Pulitzer Group Advertising Revenue 3.6% 8.1% 2.7% 6.6% Total Revenue 3.8% 4.8% 2.5% 4.1% Note 2 Includes revenues of the St. Louis Post-Dispatch, Suburban Journals of Greater St. Louis, St. Louis e-media operations, and STL Distribution Services. Note 3 For the four-week and year-to-date periodsended February 29, 2004, classified employment advertising revenue in St. Louis, including STLtoday.com, increased 8.5 percent and 3.6 percent, respectively. At the PNI Group, comparable classified employment advertising revenue, excluding the impact of acquisitions for comparable ownership periods in each year, increased 24.3 percent and 24.5 percent for the four-week and year-to-date periods, respectively. At the Tucson Newspaper Agency, classified employment advertising revenue increased 41.5 percent and 31.8 percent for the four-week and year-to-date periods, respectively. Note 4 Certain reclassifications have been made to the 2003 financial statements and statistical data to conform with the presentation made in 2004. PULITZER INC. AND SUBSIDIARIES PERIOD REVENUE AND STATISTICAL REPORT SELECTED STATISTICAL INFORMATION Four Four Nine Nine Weeks Weeks Weeks Weeks Ended Ended Ended Ended Feb. 29, Mar. 2, Feb. 29, Mar. 2, 2004 2003 Change 2004 2003 Change (Note 4) (Note 4) Advertising Linage (in thousands of inches) ST. LOUIS POST-DISPATCH: Advertising Inches Full run (all zones) Retail 54.3 57.0 (4.7%) 115.8 112.1 3.3% General 13.6 16.2 (16.1%) 27.4 31.8 (13.7%) Classified 67.0 74.3 (9.8%) 154.8 166.3 (6.9%) Total 134.9 147.6 (8.6%) 297.9 310.1 (3.9%) Part run (Retail/ Classified) 46.9 37.0 26.6% 94.7 73.2 29.4% Total Inches 181.8 184.6 (1.5%) 392.6 383.3 2.4% TUCSON NEWSPAPER AGENCY: Star/Citizen advertising inches Full run (all zones) Retail 114.0 121.0 (5.8%) 246.5 259.5 (5.0%) General 7.0 10.0 (30.0%) 14.6 17.5 (16.5%) Classified 120.1 122.8 (2.2%) 262.1 262.0 0.0% Total 241.1 253.8 (5.0%) 523.2 539.0 (2.9%) Part run (Retail/ Classified) 3.2 5.8 (44.8%) 9.7 12.9 (24.8%) Total Inches 244.3 259.6 (5.9%) 532.9 551.9 (3.4%) Year-to-Date Period Average Average 2004 2003 Change 2004 2003 Change Circulation (Note 5): ST. LOUIS POST-DISPATCH: Daily 276,178 280,380 (1.5%) 281,337 283,652 (0.8%) Sunday 444,090 461,278 (3.7%) 454,210 467,055 (2.8%) COMBINED PULITZER NEWSPAPERS, INC.: Daily 191,006 191,159 (0.1%) 189,139 189,557 (0.2%) Sunday 189,375 191,673 (1.2%) 188,309 190,909 (1.4%) TUCSON NEWSPAPER AGENCY: Star Daily 114,698 112,152 2.3% 113,163 111,126 1.8% Citizen Daily 33,353 35,713 (6.6%) 33,026 35,534 (7.1%) Combined Daily 148,051 147,865 0.1% 146,189 146,660 (0.3%) Star Sunday 181,135 184,039 (1.6%) 180,394 183,180 (1.5%) Four Four Nine Nine Weeks Weeks Weeks Weeks Ended Ended Ended Ended Feb. 29, Mar. 2, Feb. 29, Mar. 2, 2004 2003 Change 2004 2003 (Note 4) (Note 4) Change Online Page Views (in thousands) St. Louis 29,538 18,469 59.9% 65,463 38,827 68.6% Combined PNI Group Web sites 8,284 6,671 24.2% 16,697 14,042 18.9% Combined Tucson Web sites: 6,591 5,930 11.1% 13,310 12,730 4.6% Note 5 Year-to-date circulation levels represent averages (unaudited) for the current ABC annual audit periods ending September 30 and December 31 for the St. Louis Post-Dispatch and Tucson Newspaper Agency, respectively. Year-to-date PNI Group amounts represent combined averages (unaudited) for the annual periods ending December 31. DATASOURCE: Pulitzer Inc. CONTACT: James V. Maloney, Director of Shareholder Relations of Pulitzer Inc., +1-314-340-8402 Web site: http://www.pulitzerinc.com/

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