By: E&P Staff The collapsing real estate market in Florida hammered Morris Publishing Group profits in the third quarter, sending net income down 28% to $5 million from $6.9 million in the same period a year ago.
Revenue dropped 6.7% on weak advertising results, including an 11.8% fall in classified ads, a 3.9% decrease in retail, and a 17.1% tumble in national advertising.
In a filing with the Securities and Exchange Commission on Tuesday, Augusta, Ga.-based Morris said its third-quarter revenue was $109.5 million, off $7.9 million from a year ago. Advertising revenue was down 8.2% to $88.5 million.
Circulation revenue contracted slightly, down 1% to $17.1 million.
"Our Florida markets continue to be the entire source of our net decline in revenue, with the ongoing real estate slump having adversely affected advertising from builders, employers and retailers dependent on the housing industry," Morris President and CEO William S. Morris IV said in a statement.
Morris publishes two dailies in Florida, including The Florida Times-Union in Jacksonville. It recently agreed to sell its Winter Haven, Fla., daily to GateHouse Media. The chain publishes 27 dailies.
Morris noted that the chain's total operating
expense was $92.1 million, down $5.0 million, or 5.2%.
Total labor and employee benefit costs were $43.6 million, down $0.3 million, or 0.6%, while newsprint, ink and supplements costs were $10.9 million, down $3.9 million, or 26.3%.
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