content_image/134599.jpg content_image/134598.jpg
## MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 

This report contains certain forward-looking statements that are based largely on the Company’s current expectations and are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends, and uncertainties are changes in advertising demand, newsprint prices, interest rates, and other economic conditions and the effect of acquisitions, investments, and disposi- tions on the Company’s results of operations or financial condi- tion. The words “believe,” “expect,” “anticipate,” “intends,” “plans,” “projects,” “considers,” and similar expressions gener - ally identify forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which are as of the date of this report. 

## Operating results are summarized below: 

<img src='content_image/134599.jpg'>

* EBITDA is not a financial performance measurement under generally accepted accounting principles (GAAP), and should not be considered in isolation or a substitute for GAAP performance measurements. EBITDA is also not reflected in the Company’s consolidated statement of cash flows, but it is a common and meaningful alternative performance measurement for comparison to other companies in the newspaper industry. The computation excludes other non-operating items which are primarily the gain on sale of businesses. 

## Operating revenue consists of the following: 

<img src='content_image/134598.jpg'>

The following advertising and circulation revenue results are presented exclusive of acquisitions and dispositions. 

Retail “run-of-press” advertising is advertising by merchants in the local community that is printed in the newspaper, rather than “preprints,” which are printed separately by the Company or others and inserted into the newspaper. Retail revenue increased .5% in 2000, .4% in 1999, and decreased (.3%) in 1998. Retail revenue increases were caused primarily by an increase in volume as a result of the continuing emphasis on price incentives in return for larger or more frequent ads. 

Total revenue realized from retail and national merchants includes preprints, which have lower-priced, higher-volume distri- bution rates. Preprint revenue increased 2.9% in 2000, 4.2% in 1999, and 4.4% in 1998. 

Classified advertising revenue increased approximately 4.9% in 2000, 5.3% in 1999, and 8.1% in 1998. In 2000 growth in advertising revenue was in the employment and automotive cate- gories. In 1999 growth in advertising revenue was in the automo- tive and to a lesser extent in the employment categories. This growth offset a decrease in real estate. In 1998 continued signifi- cant growth in employment and real estate advertising offset a small reduction in automotive. 

In total, advertising revenue increased 3.1%, 3.2%, and 3.6%. 

In 2000 circulation revenue decreased (2.4%) primarily as a result of a decrease in units. In 1999 circulation revenue decreased by (.3%) as a result of a decrease in volume offset by higher rates. In 1998 circulation revenue decreased (.8%) as a result of a decrease in volume. 

