Washington Post 2000 Annual Report Download - page 7

for 2001 was increased to $5.60 per share, from $5.40 per share in
2000, $5.20 per share in 1999, and $5.00 per share in 1998.
Liquidity. At December 31, 2000, the Company had $20.3 million in
cash and cash equivalents.
At December 31, 2000, the Company had $525.4 million in com-
mercial paper borrowings outstanding at an average interest rate of
6.6 percent with various maturities throughout the first and second
quarter of 2001. In addition, the Company had outstanding $397.9
million of 5.5 percent, 10 year unsecured notes due February 2009.
These notes require semiannual interest payments of $11.0 million
payable on February 15 and August 15.
The Company utilizes a five-year $500 million revolving credit
facility and a one-year $250 million revolving credit facility to support
the issuance of its short-term commercial paper, and to provide for
general corporate purposes.
At December 31, 2000, the Company has classified $475.4 million
of its commercial paper borrowings as long-term debt in its Consolidated
Balance Sheets as the Company has the ability and intent to finance
such borrowings on a long-term basis under its credit agreements.
During 2000, the Company’s borrowings, net of repayments,
increased by $38.0 million. The net increase is principally attributable
to the acquisition of Quest Education Corporation in July 2000, par-
tially offset by cash generated by operations.
The Company expects to fund its estimated capital needs prima-
rily through internally generated funds and, to a lesser extent, com-
mercial paper borrowings. In management’s opinion, the Company will
have ample liquidity to meet its various cash needs in 2001.
Subsequent Events. On January 12, 2001, the Company sold a cable
system serving about 15,000 subscribers in Greenwood, Indiana, for
$61.9 million. In a related transaction, on March 1, 2001, the
Company completed a cable system exchange with AT&T Broadband
whereby the Company exchanged its cable systems in Modesto and
Santa Rosa, California, and approximately $42.0 million to AT&T
Broadband for cable systems serving approximately 155,000 sub-
scribers principally located in Idaho. For income tax purposes, these
transactions qualify as like-kind exchanges and are substantially tax
free in nature. However, the Company will record a book accounting
gain of approximately $195.3 million ($20.50 per share) in its earnings
for the first quarter of 2001.
On February 28, 2001, the Company acquired Southern Maryland
Newspapers, a division of Chesapeake Publishing Corp. Southern
Maryland Newspapers publishes the Maryland Independent in Charles
County, Maryland; the Lexington Park Enterprise in St. Mary’s County,
Maryland; and the Recorder in Calvert County, Maryland. The acquired
newspapers have a combined total paid circulation of 50,000.
Forward-looking Statements. This annual report contains certain for-
ward-looking statements that are based largely on the Company’s cur-
rent expectations. Forward-looking statements are subject to certain
risks and uncertainties that could cause actual results and achieve-
ments to differ materially from those expressed in the forward-looking
statements. For more information about these forward-looking state-
ments and related risks, please refer to the section titled “Forward-
looking Statements” in Part 1 of the Company’s Annual Report on
Form 10-K.
32 The Washington Post Company