MORRIS PUBLISHING GROUP LLC

CIK:0001276477|SEC Filings

Unaudited condensed consolidated statements of operations (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
NET OPERATING REVENUES:
Advertising	$ 34,250	$ 37,389
Circulation	14,639	15,340
Other	2,964	2,187
Total net operating revenues	51,853	54,916
OPERATING EXPENSES:
Labor and employee benefits	20,550	22,473
Newsprint, ink and supplements	4,826	5,800
Other operating costs (excluding depreciation and amortization)	22,642	23,018
Impairment of fixed assets	2,400	0
Depreciation and amortization expense	1,874	2,153
Total operating expenses	52,292	53,444
OPERATING INCOME (LOSS)	(439)	1,472
OTHER EXPENSES (INCOME):
Interest expense, including amortization of debt issuance costs	2,528	3,146
Interest income	(1)	(1)
Other, net	(40)	50
Total other expense (income), net	2,487	3,195
LOSS BEFORE INCOME TAX BENEFIT	(2,926)	(1,723)
INCOME TAX BENEFIT	(1,018)	(573)
NET LOSS	$ (1,908)	$ (1,150)

Unaudited condensed consolidated statements of cash flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
OPERATING ACTIVITIES:
Net loss	$ (1,908)	$ (1,150)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	1,874	2,153
Amortization & write off of debt issuance costs	66	113
Accretion of original issue discount	737	933
Bad debt provision	184	(261)
Gain on sale of fixed assets, net	175	64
Impairment of fixed assets	2,400	0
Deferred income taxes	(1,239)	(539)
Changes in assets and liabilities:
Accounts receivable	3,411	6,461
Inventories	(75)	(260)
Prepaids and other current assets	(243)	(329)
Other assets	141	0
Accounts payable	881	(718)
Income taxes receivable		(34)
Accrued employee costs	1,516	1,007
Accrued interest expense	(187)	(188)
Due to Morris Communications	60	1,956
Deferred revenues and other liabilities	422	630
Income taxes payable	220	0
Other long-term liabilities	(102)	338
Net cash provided by operating activities	8,333	10,176
INVESTING ACTIVITIES:
Capital expenditures	(963)	(219)
Net proceeds from sale of property and equipment	4	5
Net cash used in investing activities	(959)	(214)
FINANCING ACTIVITIES:
Redemption of New Notes	(7,423)	(7,496)
Net cash used in financing activities	(7,423)	(7,496)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(49)	2,466
CASH AND CASH EQUIVALENTS, beginning of period	5,330	2,636
CASH AND CASH EQUIVALENTS, end of period	5,281	5,102
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	1,895	2,286
Accrued capital expenditures	$ 404	$ 742

Unaudited condensed consolidated balance sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 5,281	$ 5,330
Accounts receivable, net of allowance for doubtful accounts of $1,970 and $2,008 at March 31, 2012 and December 31, 2011, respectively	19,750	23,346
Inventories	1,900	1,825
Deferred income taxes, net	1,211	1,150
Assets held for sale	14,416	14,416
Prepaid and other current assets	1,088	845
Total current assets	43,646	46,912
NET PROPERTY AND EQUIPMENT	63,241	67,069
OTHER ASSETS:
Intangible assets, net of accumulated amortization of $3,921 and $3,856 at March 31,2012 and December 31, 2011, respectively	5,599	5,665
Deferred loan costs and other assets, net of accumulated amortization of loan costs of $424 and $358 at March 31, 2012 and December 31, 2011, respectively	2,036	2,243
Total other assets	7,635	7,908
Total assets	114,522	121,889
CURRENT LIABILITIES:
Accounts payable	7,209	6,732
Current maturities of long-term debt	17,000	17,000
Accrued interest expense	1,598	1,785
Income taxes payable	1,273	1,053
Due to Morris Communications	1,215	1,155
Deferred revenues	12,161	12,090
Accrued employee costs	4,482	2,966
Other accrued liabilities	1,426	1,076
Total current liabilities	46,364	43,857
LONG-TERM DEBT, less current portion and original issue discount	43,799	50,484
DEFERRED INCOME TAXES, net	20,312	21,490
OTHER LONG-TERM LIABILITIES	2,658	2,761
Total liabilities	113,133	118,592
COMMITMENTS AND CONTINGENCIES (Note 6)
MEMBER'S INTEREST IN ASSETS
Member's surplus	1,389	3,297
Total member's interest in assets	1,389	3,297
Total liabilities and member's interest in assets	$ 114,522	$ 121,889