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Medianews Group Inc – ‘8-K’ for 5/1/96

As of: Monday, 5/20/96 · For: 5/1/96 · Accession #: 950134-96-2354 · File #: 33-75156

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 5/20/96  Medianews Group Inc               8-K:2,7     5/01/96    3:339K                                   RR Donnelley

Current Report — Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                        10     36K 
 2: EX-2.1      Agreement by American Publishing Et Al               120    375K 
 3: EX-2.2      Agrmnt. by Garden State Investments & Denver Post     12     48K

8-K — Current Report
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Acquisitions or Dispositions of Assets Financial Statements, Pro Forma Financial Information and Exhibits
1	1st Page - Filing Submission
2	Item 2. Acquisitions or Dispositions of Assets
3	Item 7. Financial Statements, Pro Forma Financial Information and Exhibits

8-K 1st Page of 10 TOC ↑Top Previous Next ↓Bottom Just 1st
 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549 

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)          May 1, 1996       
                                                        ----------------------

Garden State Newspapers, Inc.                                             
 -----------------------------------------------------------------------------

(Exact name of registrant as specified in its charter)                      

      Delaware                                            22-2675173
 -----------------------------------------------------------------------------
(State or other jurisdiction      (Commission                  (Employer    
    of incorporation)              File Number)            Identification No.)

1560 Broadway, Suite 1450, Denver, CO                        80202          
 -----------------------------------------------------------------------------
(Address of principal executive offices)                    (Zip Code)      

Registrant's telephone number, including area code         (303) 837-0886   
                                                    --------------------------

No Change 
 -----------------------------------------------------------------------------
(Former name or former address, if changed since last report.)

8-K 2nd Page of 10 TOC 1st Previous Next ↓Bottom Just 2nd
Item 2.     Acquisitions or Dispositions of Assets                              

On May 1, 1996, Garden State Investments, Inc., a wholly owned subsidiary of    
Garden State Newspapers, Inc. (the "Registrant"), sold the common stock of The  
Johnstown Tribune Publishing Company, publisher of the Johnstown                
Tribune-Democrat, to American Publishing (1991), Inc. ("American Publishing")   
in exchange for $32.6 million in cash and substantially all the assets used in  
the publication of the following daily and weekly newspapers:                   

                                                        [Enlarge/Download Table]

===========================================================================================================
        Newspaper Location                   Daily Publication                   Weekly Publication        
===========================================================================================================
                                                                                                           
Bridgeton, New Jersey               Bridgeton  Evening  News             None                              
-----------------------------------------------------------------------------------------------------------
Fort Morgan, Colorado               Fort  Morgan  Times                  Morgan  Times  Review(a)          
-----------------------------------------------------------------------------------------------------------
Sterling, Colorado                  Journal-Advocate                     J. A.  Shopper(a)                 
-----------------------------------------------------------------------------------------------------------
Lamar, Colorado                     Lamar  Daily  News                   Tri-State  Trader(a)              
-----------------------------------------------------------------------------------------------------------
Millville, New Jersey               Millville  News                      Millville  Shopper  News(a)       
-----------------------------------------------------------------------------------------------------------
Sidney, Nebraska                    Sidney  Telegraph                    High  Plains  Shopping  Guide(a)  
-----------------------------------------------------------------------------------------------------------
North Adams, Massachusetts          The  Transcript                      The  Transcript  Spotlight(a)     
-----------------------------------------------------------------------------------------------------------
Akron, Colorado                     None                                 Akron  News  Reporter(b)          
-----------------------------------------------------------------------------------------------------------
Brush, Colorado                     None                                 Brush  News-Tribune(b)            
-----------------------------------------------------------------------------------------------------------
Julesburg, Colorado                 None                                 Julesburg  Advocate(b)            
===========================================================================================================

(a) Free Weekly Distribution                                                    
(b) Paid Weekly Distribution                                                    

The Registrant also assumed non-compete and other long-term obligations with a  
discounted value of approximately $1.0 million in association with the          
acquisition of the newspapers listed above.  All the assets and the liabilities 
assumed have been recorded at their estimated fair market values at the date of 
the acquisition.                                                                

Immediately after the above described acquisition, the Registrant contributed   
all of the newly acquired assets and liabilities of the Sidney, Nebraska; and   
the Akron, Brush, Fort Morgan, Julesburg, Lamar and Sterling, Colorado daily    
and weekly newspapers to a newly formed corporation, Eastern Colorado           
Publishing Company ("Eastern Colorado").  The common stock of Eastern Colorado  
was then sold to The Denver Post Corporation, an affiliate of the Registrant,   
for approximately $15.6 million, including the assumption of $0.2 million of    
discounted non-compete covenants and other long-term obligations (The Denver    
Post Corporation is a 60 percent owned subsidiary of Affiliated Newspapers      
Investments, Inc., parent company of the Registrant).  No gain or loss was      
realized on the sale of the Eastern Colorado common stock. The sale price of    
the Eastern Colorado common stock was deemed to be fair based on an independent 
appraisal of the transaction.                                                   

1 

8-K 3rd Page of 10 TOC 1st Previous Next ↓Bottom Just 3rd
Proceeds from the sale of The Johnstown Tribune Publishing Company and Eastern  
Colorado were used to prepay certain debt obligations of the Registrant and its 
subsidiaries as follows: (1) $4.6 million was prepaid to holders of the         
Registrant's Senior Secured Notes; (2) $21.3 million was prepaid against        
borrowings under the NJN Investments, Inc., a subsidiary of the Registrant,     
revolver, representing 100 percent of the amount outstanding;  (3) $7.5 million 
was prepaid against a bank term loan, representing amounts due through          
September, 1996; and (4) the remaining amount of approximately $13.6 million    
was prepaid against the Registrant's revolving credit agreement.                

The description of the purchase and sale transactions set forth herein are      
qualified in their entirety by the provisions of the purchase and sales         
agreements which are attached hereto as exhibits.                               

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits     

(a)             Financial Statements of Businesses Acquired                   

Not Applicable Due to Size. 

(b)             Unaudited Pro Forma Financial Information                     

                      Unaudited pro forma financial information has been
                  presented for the disposition of The Johnstown
                        Tribune Publishing Company common stock beginning at
                  page 5 of this report.  The acquisition of the
               newspapers listed above did not require the
                      presentation of pro forma financial information as
                       required by Form 8-K.  Accordingly, the acquisition
                       transaction has been omitted from the unaudited pro
forma financial information.

(c)             Exhibits                                                      

               2.1      Agreement dated April 29, 1996 by and among American
                      Publishing (1991) Inc., Berksire Newspapers, Inc.,
                     Evening News Company, Sidney Publication Company,
                Sterling Publishing Company and Garden State
Investments, Inc.           

             2.2      Agreement dated April 30, 1996 by and among Garden
               State Investments, Inc. and The Denver Post
                    Corporation for the sale/purchase of the capital
                 stock of Eastern Colorado Publishing Company.

2 

8-K 4th Page of 10 TOC 1st Previous Next ↓Bottom Just 4th
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the        
registrant has duly caused this report to be signed on its behalf by the        
undersigned hereunto duly authorized.                                           

                       GARDEN STATE NEWSPAPERS, INC.

Date:  May 15, 1996                  By:   /s/ Joseph J. Lodovic, IV            
                                        --------------------------------------
                                   Joseph J. Lodovic, IV
                                       Executive Vice President,
                                     Chief Financial Officer

3 

8-K 5th Page of 10 TOC 1st Previous Next ↓Bottom Just 5th
GARDEN STATE NEWSPAPERS, INC. 
UNAUDITED PRO FORMA FINANCIAL INFORMATION 

The accompanying unaudited pro forma balance sheet as of March 31, 1996, gives  
effect to the sale of the common stock of The Johnstown Tribune Publishing      
Company, publisher of the Johnstown Tribune-Democrat, as if this transaction    
had occurred on July 1, 1995.                                                   

The accompanying unaudited pro forma consolidated statements of operations for  
the nine months ended March 31, 1996 and the year ended June 30, 1995, give     
effect to the sale of the common stock of The Johnstown Tribune Publishing      
Company, publisher of the Johnstown Tribune-Democrat, herein referred to as the 
"Johnstown Sale," as if the Johnstown Sale had occurred on July 1, 1995 and     
July 1, 1994, respectively.                                                     

These pro forma statements are not necessarily indicative of the future         
operations or of the consolidated results of operations had the Johnstown Sale  
actually taken place on July 1, 1995 or July 1, 1994. The unaudited pro forma   
financial information should be read in conjunction with the Company's          
historical financial statements and notes thereto appearing in the Company's    
Form 10-K and 10-Q for the periods ending June 30, 1995 and March 31, 1996,     
respectively.                                                                   

4 

8-K 6th Page of 10 TOC 1st Previous Next ↓Bottom Just 6th
GARDEN STATE NEWSPAPERS, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

March 31, 1996
(Amounts in Thousands)

                                                        [Enlarge/Download Table]

                         ASSETS                            As       Pro Forma                     
                                                        Reported  Adjustments           Pro Forma 
                                                        --------  -----------           --------- 
                                                                                                  
CURRENT ASSETS                                                                                    
  Cash and cash equivalents . . . . . . . . . . . . .  $  1,485     $  1,672   (a),(c)   $  3,105 
  Accounts receivable, less allowance                                                             
   for doubtful accounts  . . . . . . . . . . . . . .    27,183       (1,321)  (a)         25,862 
  Inventories of newsprint and supplies . . . . . . .     6,641         (401)  (a)          6,240 
  Prepaid expenses and other assets . . . . . . . . .     6,239       (1,793)  (a)          4,446 
                                                       --------     --------             -------- 
      TOTAL CURRENT ASSETS  . . . . . . . . . . . . .    41,548       (1,843)              39,705 
PROPERTY, PLANT AND EQUIPMENT                                                                     
  Land  . . . . . . . . . . . . . . . . . . . . . . .     5,296         (128)  (a),(d)      5,168 
  Buildings and improvements  . . . . . . . . . . . .    34,189       (1,593)  (a),(d)     32,596 
  Machinery and equipment . . . . . . . . . . . . . .    90,634       (5,793)  (a),(d)     84,841 
                                                       --------     --------             -------- 
      Total Property, Plant and Equipment . . . . . .   130,119       (7,514)             122,605 
  Less accumulated depreciation and amortization  . .   (52,238)       5,181   (a)        (47,057)
                                                       --------     --------             -------- 
      Net Property, Plant and Equipment . . . . . . .    77,881       (2,333)              75,548 
OTHER ASSETS                                                                                      
  Investment in partnership   . . . . . . . . . . . .     6,122          --                 6,122 
  Subscriber accounts, net of accumulated                                                         
   amortization . . . . . . . . . . . . . . . . . . .    47,143       (1,646)  (a)         45,497 
  Excess of cost over fair value of net assets                                                    
acquired,                                               101,613      (31,597)  (a)         70,016 
   net of accumulated amortization  . . . . . . . . .                                             
  Covenants net of compete and other identifiable         4,703          --                 4,703 
   intangible assets, not to accumulated amortization     3,244       (1,805)  (a)          1,439 
                                                       --------     --------             -------- 
  Other . . . . . . . . . . . . . . . . . . . . . . .   162,825      (35,048)             127,777 
                                                        -------     --------              ------- 
      TOTAL OTHER ASSETS  . . . . . . . . . . . . . .  $282,254     $(39,224)            $243,030 
                                                       ========     ========             ======== 
TOTAL ASSETS  . . . . . . . . . . . . . . . . . . . .                                             

See notes to unaudited pro forma financial information.   

5 

8-K 7th Page of 10 TOC 1st Previous Next ↓Bottom Just 7th
GARDEN STATE NEWSPAPERS, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

March 31, 1996
(In Thousands)

                                                        [Enlarge/Download Table]

                                                                  As         Pro Forma                 
                                                                Reported   Adjustments        Pro Forma
                                                                --------   -----------        ---------
                                                                                                       
             LIABILITIES AND SHAREHOLDERS' DEFICIT                                                     
CURRENT LIABILITIES                                                                                    
  Trade accounts payable  . . . . . . . . . . . . . . . . . . $    6,483      $  (144)  (a)  $   6,339 
  Accrued liabilities . . . . . . . . . . . . . . . . . . . .     13,407         (705)  (a)     12,702 
  Unearned income . . . . . . . . . . . . . . . . . . . . . .      7,375       (1,017)  (a)      6,358 
  Income taxes  . . . . . . . . . . . . . . . . . . . . . . .        578           --              578 
  Current portion of long-term debt and                                                                
    capital lease obligation  . . . . . . . . . . . . . . . .     21,266      (12,600)  (b)      8,666 
                                                               ---------     --------        --------- 
      TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . .     49,109      (14,466)          34,643 
LONG-TERM DEBT AND CAPITAL LEASE                                                                       
 OBLIGATION . . . . . . . . . . . . . . . . . . . . . . . . .    238,704      (34,300)  (b)    204,404 
OTHER LIABILITIES . . . . . . . . . . . . . . . . . . . . . .      8,898         (920)  (a)      7,978 
DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . .     13,579       (2,685)  (a)     10,894 
SHAREHOLDERS' DEFICIT                                                                                  
  Common stock  . . . . . . . . . . . . . . . . . . . . . . .          1          --                 1 
  Additional paid in capital  . . . . . . . . . . . . . . . .     78,570          --            78,570 
  Deficit   . . . . . . . . . . . . . . . . . . . . . . . . .   (106,607)      13,147   (a)    (93,460)
                                                                --------     --------        --------- 
    TOTAL SHAREHOLDERS' DEFICIT . . . . . . . . . . . . . . .    (28,036)      13,147          (14,889)
                                                                --------     --------        --------- 

TOTAL LIABILITIES AND SHAREHOLDERS'                                                                    
    DEFICIT . . . . . . . . . . . . . . . . . . . . . . . . .   $282,254     $(39,224)        $243,030 
                                                                ========     ========         ======== 

See notes to unaudited pro forma financial information. 

6 

8-K 8th Page of 10 TOC 1st Previous Next ↓Bottom Just 8th
GARDEN STATE NEWSPAPERS, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

Nine Months Ended March 31, 1996
(In Thousands)

                                                        [Enlarge/Download Table]

                                                        As       Pro Forma                 
                                                     Reported  Adjustments        Pro Forma
                                                     --------  -----------        ---------
                                                                                           
OPERATING REVENUES                                  $180,937     $(13,387)  (a)  $ 167,550 

COST AND EXPENSES                                                                          
  Cost of sales . . . . . . . . . . . . . . . . . .   73,211       (4,608)  (a)     68,603 
  Selling, general, and administrative  . . . . . .   75,237       (4,086)  (a)     71,151 
  Depreciation and amortization . . . . . . . . . .   15,180       (1,946)  (a)     13,234 
  Interest expense  . . . . . . . . . . . . . . . .   20,576       (2,533)  (b)     18,043 
    Other, (net)  . . . . . . . . . . . . . . . . .    2,869           34   (a)      2,903 
                                                    --------     --------         -------- 
      TOTAL COST AND EXPENSES . . . . . . . . . . .  187,073      (13,139)         173,934 
                                                     -------      -------          ------- 
LOSS BEFORE INCOME                                                                         
  TAXES . . . . . . . . . . . . . . . . . . . . . .   (6,136)         248           (6,384)
INCOME TAX BENEFIT (EXPENSE)  . . . . . . . . . . .      152         (223)  (a)        (71)
                                                    --------      -------         -------- 
NET LOSS  . . . . . . . . . . . . . . . . . . . . .  $(5,984)     $   471          $(6,455)
                                                     =======      =======          ======= 

See notes to unaudited pro forma financial information.   

7 

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GARDEN STATE NEWSPAPERS, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended June 30, 1995
(In Thousands)

                                                        [Enlarge/Download Table]

                                                         As       Pro Forma                  
                                                      Reported  Adjustments         Pro Forma
                                                      --------  -----------         ---------
                                                                                             
OPERATING REVENUES                                   $213,045     $(17,419)  (a)    $195,626 

COST AND EXPENSES                                                                            
  Cost of sales . . . . . . . . . . . . . . . . . .    79,098       (5,719)  (a)      73,379 
  Selling, general, and administrative  . . . . . .    90,513       (5,525)  (a)      84,988 
  Depreciation and amortization . . . . . . . . . .    18,710       (2,596)  (a)      16,114 
  Interest expense  . . . . . . . . . . . . . . . .    25,806       (2,547)  (c)      23,259 
    Other, (net)  . . . . . . . . . . . . . . . . .     2,387          132   (a)       2,519 
                                                    ---------    ---------         --------- 
      TOTAL COST AND EXPENSES . . . . . . . . . . .   216,514      (16,255)          200,259 

GAIN ON SALE OF NEWSPAPER PROPERTY  . . . . . . . .     4,153          -               4,153 
                                                    ---------   ----------         --------- 
INCOME (LOSS) BEFORE INCOME TAXES . . . . . . . . .       684       (1,164)             (480)
INCOME TAX BENEFIT (EXPENSE)  . . . . . . . . . . .       364         (344)  (a)          20 
                                                    ---------    ---------        ---------- 
NET INCOME (LOSS) . . . . . . . . . . . . . . . . . $   1,048    $  (1,508)        $    (460)
                                                    =========    =========         ========= 

See notes to unaudited pro forma financial information.   

8 

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GARDEN STATES NEWSPAPERS, INC.
NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION

NOTE 1:  UNAUDITED PRO FORMA BALANCE SHEETS                                     

              (a)     To eliminate assets and liabilities of The Johnstown
                     Tribune Publishing Company as of March 31, 1995, to
reflect the Johnstown Sale.   

        (b)     Apply net cash proceeds of approximately $46.9
                         million to the reduction of current and long-term debt.

            (c)     Increase cash to reflect the reduction in interest
                    expense as a result of paying down long-term debt,
                    net of cash expenses associated with the Johnstown
Sale.                         

      (d)     Record preliminary estimate of fair value of
                   long-term assets received as consideration in the
Johnstown Sale.               

NOTE 2:  UNAUDITED PRO FORMA STATEMENT OF OPERATIONS                            

     (a)     To eliminate revenues and expenses directly
                 associated with the operations of The Johnstown
Tribune Publishing Company.   

              (b)     To reduce interest expense to reflect the use of the
                proceeds from the Johnstown Sale to reduce the
                   Company's long-term debt.  The interest reduction
                     does not reflect nine months of interest savings on
                    the full pay down as $21.5 million was borrowed on
                   August 31, 1995 and $11.0 million was borrowed on
                    March 10, 1996 in conjunction with the New England
                      Newspapers and San Mateo acquisitions, respectively.
                     If the Johnstown Sale had occurred on July 1, 1995,
                   proceeds from the sale which were not used to pay
                       debt or acquire additional newspapers would have been
                   invested in short-term financial instruments, the
                   effect of which is not reflected in the pro forma
adjustments.                  

              (c)     To reduce interest expense to reflect the use of the
                proceeds from the Johnstown Sale to reduce the
                      Company's long-term debt.  The reduction in interest
                       expense in fiscal year-end June 30, 1995, was limited
                because $21.1 million of the amounts repaid in
                       conjunction with the Johnstown Sale were not borrowed
                       during fiscal year-end 1995.  The Company's remaining
              debt could not be repaid without substantial
                    penalties or renegotiations with the note holders.
                     If the Johnstown Sale had occurred on July 1, 1994,
                   proceeds from the sale which were not used to pay
                     down debt of approximately $17.3 million would have
                    been invested in short-term financial instruments,
                       the effect of which is not reflected in the pro forma
adjustments.                  

9

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘8-K’ Filing	Date	First	Last	Other Filings

Filed on:	5/20/96			10-Q
	5/15/96	4
For Period End:	5/1/96	1	2
	4/30/96	3
	4/29/96	3
	3/31/96	5	8	10-Q
	3/10/96	10
	8/31/95	10
	7/1/95	5	10
	6/30/95	5	10
	3/31/95	10
	7/1/94	5	10
				List all Filings

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Filing Submission 0000950134-96-002354 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Medianews Group Inc – ‘8-K’ for 5/1/96

As of: Monday, 5/20/96 · For: 5/1/96 · Accession #: 950134-96-2354 · File #: 33-75156

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