Pulitzer Earnings Up on Healthy Ads

By: E&P Staff St. Louis-based Pulitzer Inc. today reported a first-quarter net income of $8.1 million, or 37 cents per diluted share, up from $7.1 million or 33 cents per share in the same period last year.

First-quarter operating revenue increased 4.6% to $102.7 million from $98.2 million in 2003. Pulitzer said operating income decreased 4.2% to $16.2 million, which it attributed to expenses related to the March 1 launch of its new direct mail product, Local Values, in the St. Louis market, as well as higher newsprint prices and increased healthcare costs.

Pulitzer said its Q1 2004 and 2003 results included investment 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. Excluding these items from the 2004 and 2003 first-quarter periods, first-quarter 2004 and 2003 base earnings per diluted share were $0.37 and $0.35, respectively, Pulitzer said.

"We are pleased with the company's performance for the quarter," said Robert C. Woodworth, president and CEO. "Operating revenue was up 4.6%, and advertising revenue increased 5.6%, with strong growth during March, when total revenue increased 7.3% and advertising revenue grew nearly 10%. Revenue growth was led by classified, up 11% for the quarter, with particular strength in help wanted, up 6.3% in St. Louis and 31.2% at Pulitzer Newspapers, Inc."

Woodworth said at the Tucson Newspaper Agency, classified was up 9.5%, with help wanted up 36.5%. He said Pulitzer's "focus on increasing local market share continues to pay off," with local territory retail revenues up 13.1% in St. Louis during the quarter.

"As we look ahead," Woodworth said, "our solid first-quarter performance leads us to reaffirm the guidance we provided last December of full-year 2004 base earnings of at least $2.10 per fully diluted share. This view assumes the continued health of our key advertising segments."