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FORM 10-Q UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
    (Mark One)þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 28, 2004 OR o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to Commission File Number 1-14541   PULITZER INC. (Exact name of registrant as specified in its charter)   Delaware
(State or other jurisdiction of
incorporation or organization)
    
    43-1819711
(I.R.S. Employer
Identification Number)
 900 North Tucker Boulevard, St. Louis, Missouri 63101
(Address of principal executive offices) (314) 340-8000
(Registrants telephone number, including area code) No Changes
(Former name, former address and former fiscal year, if changed since last report)   Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days. Yes x
    
    No o
   Indicate by check mark whether the registrant is an accelerated filer (as defined
in Rule 12b-2 of the Exchange Act). Yes x
    
    No o
 Indicate the number of shares outstanding of each of the issuers classes
of common stock, as of the latest practicable date. Class
    
    Outstanding 5/3/04Common Stock
Class B Common Stock
    
    9,866,165
11,736,592




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TABLE OF CONTENTS  Part I. FINANCIAL INFORMATIONItem 1. FINANCIAL STATEMENTSItem 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSItem 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKItem 4. CONTROLS AND PROCEDURESPart II. OTHER INFORMATIONItem 1. LEGAL PROCEEDINGSItem 2. CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIESItem 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERSItem 6. EXHIBITS AND REPORTS ON FORM 8-KSIGNATURESEXHIBIT INDEXCertification of President and CEOCertification of Senior VP-Finance & CFOCertification of President and CEOCertification of Senior VP-Finance and CFO    Table of Contents  
 Part I. FINANCIAL INFORMATION 
 Item 1. FINANCIAL STATEMENTS PULITZER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited  In thousands, except earnings per share) First Quarter EndedMar. 28,
    
    Mar. 30,2004
    
    2003OPERATING REVENUES:AdvertisingRetail
    
    $
    27,829
    
    
    $
    26,560National
    
    
    6,161
    
    
    
    6,821Classified
    
    
    32,247
    
    
    
    29,086Subtotal
    
    
    66,237
    
    
    
    62,467Preprints
    
    
    14,218
    
    
    
    13,732Total advertising
    
    
    80,455
    
    
    
    76,199Circulation
    
    
    20,568
    
    
    
    20,196Other
    
    
    1,712
    
    
    
    1,837Total operating revenues
    
    
    102,735
    
    
    
    98,232OPERATING EXPENSES:Payroll and other personnel expenses
    
    
    46,359
    
    
    
    45,355Newsprint expense
    
    
    11,036
    
    
    
    10,003Depreciation
    
    
    3,736
    
    
    
    3,682Amortization
    
    
    1,192
    
    
    
    1,105Other expenses
    
    
    28,108
    
    
    
    25,294Total operating expenses
    
    
    90,431
    
    
    
    85,439Equity in earnings of Tucson newspaper partnership
    
    
    3,917
    
    
    
    4,146Operating income
    
    
    16,221
    
    
    
    16,939Interest income
    
    
    1,159
    
    
    
    935Interest expense
    
    
    (4,694
    )
    
    
    (5,458
    )Net gain on marketable securities
    
    
    552
    
    
    
    25Net loss on investments
    
    
    (42
    )
    
    
    (784
    )Net other income
    
    
    4
    
    
    
    21INCOME BEFORE PROVISION FOR INCOME
TAXES
    
    
    13,200
    
    
    
    11,678PROVISION FOR INCOME TAXES
    
    
    4,884
    
    
    
    4,325MINORITY INTEREST IN NET EARNINGS OF
SUBSIDIARIES
    
    
    261
    
    
    
    297NET INCOME
    
    $
    8,055
    
    
    $
    7,056
 (Continued) -2-




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First Quarter EndedMar. 28,
    
    Mar. 30,2004
    
    2003BASIC EARNINGS PER SHARE OF STOCK:Basic earnings per share
    
    $
    0.37
    
    
    $
    0.33Weighted average number of shares outstanding
    
    
    21,541
    
    
    
    21,346DILUTED EARNINGS PER SHARE OF STOCK:Diluted earnings per share
    
    $
    0.37
    
    
    $
    0.33Weighted average number of shares outstanding
    
    
    21,855
    
    
    
    21,462
  See notes to condensed consolidated financial statements.
    
    (Concluded)
 -3-




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PULITZER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited In thousands) First Quarter EndedMar. 28,
    
    Mar. 30,2004
    
    2003NET INCOME
    
    $
    8,055
    
    
    $
    7,056OTHER COMPREHENSIVE INCOME (LOSS),
NET OF TAX:Unrealized holding gains on marketable
securities arising during the period
    
    
    408
    
    
    
    135Realized gains arising during the period
    
    
    (342
    )
    
    
    (16
    )Other comprehensive income items
    
    
    66
    
    
    
    119COMPREHENSIVE INCOME
    
    $
    8,121
    
    
    $
    7,175
 See notes to condensed consolidated financial statements. -4-




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PULITZER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited In thousands) Mar. 28,
    
    Dec. 28,2004
    
    2003ASSETSCURRENT ASSETS:Cash and cash equivalents
    
    $
    43,065
    
    
    $
    27,552Marketable securities
    
    
    154,254
    
    
    
    148,644Trade accounts receivable (less allowance for doubtful
accounts of $3,488 and $3,843)
    
    
    47,513
    
    
    
    54,700Inventory
    
    
    10,456
    
    
    
    7,566Income taxes receivable
    
    
    0
    
    
    
    7,097Prepaid expenses and other
    
    
    11,510
    
    
    
    9,171Total current assets
    
    
    266,798
    
    
    
    254,730PROPERTIES:Land
    
    
    9,732
    
    
    
    9,758Buildings
    
    
    73,195
    
    
    
    73,192Machinery and equipment
    
    
    156,864
    
    
    
    156,425Construction in progress
    
    
    1,781
    
    
    
    1,256Total
    
    
    241,572
    
    
    
    240,631Less accumulated depreciation
    
    
    128,144
    
    
    
    124,550Properties  net
    
    
    113,428
    
    
    
    116,081INTANGIBLE AND OTHER ASSETS:Goodwill
    
    
    811,724
    
    
    
    811,409Intangible assets  net of accumulated amortization
    
    
    36,407
    
    
    
    37,217Restricted cash and investments
    
    
    58,560
    
    
    
    54,810Other
    
    
    36,466
    
    
    
    35,426Total intangible and other assets
    
    
    943,157
    
    
    
    938,862TOTAL
    
    $
    1,323,383
    
    
    $
    1,309,673
 (Continued) -5-




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PULITZER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited In thousands, except share data) Mar. 28,
    
    Dec. 28,2004
    
    2003LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIES:Trade accounts payable
    
    $
    9,234
    
    
    $
    9,995Salaries, wages and commissions
    
    
    12,798
    
    
    
    15,595Interest payable
    
    
    5,289
    
    
    
    3,582Pension obligations
    
    
    1,356
    
    
    
    1,356Income taxes payable
    
    
    5,411
    
    
    
    0Other
    
    
    10,208
    
    
    
    9,766Total current liabilities
    
    
    44,296
    
    
    
    40,294LONG-TERM DEBT
    
    
    306,000
    
    
    
    306,000PENSION OBLIGATIONS
    
    
    6,114
    
    
    
    5,239POSTRETIREMENT AND POSTEMPLOYMENT
BENEFIT OBLIGATIONS
    
    
    63,310
    
    
    
    61,265OTHER LONG-TERM LIABILITIES
    
    
    45,150
    
    
    
    45,431COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS EQUITY:Preferred stock, $.01 par value; 100,000,000 shares authorized;
Issued and outstanding  noneCommon stock, $.01 par value; 100,000,000 shares authorized;
Issued 9,840,238 in 2004 and 9,682,134 in 2003
    
    
    98
    
    
    
    97Class B common stock, convertible, $.01 par value; 100,000,000
Shares authorized; issued  11,736,592 in 2004 and
11,834,592 in 2003
    
    
    117
    
    
    
    118Additional paid-in capital
    
    
    387,304
    
    
    
    384,291Retained earnings
    
    
    481,403
    
    
    
    477,437Accumulated other comprehensive loss
    
    
    (10,085
    )
    
    
    (10,151
    )Total
    
    
    858,837
    
    
    
    851,792Unamortized restricted stock grants
    
    
    (271
    )
    
    
    (303
    )Treasury stock  at cost; 1,191 shares of common
stock in 2004 and 1,061 in 2003, and 0 shares of Class B common stock in 2004 and 2003
    
    
    (53
    )
    
    
    (45
    )Total stockholders equity
    
    
    858,513
    
    
    
    851,444TOTAL
    
    $
    1,323,383
    
    
    $
    1,309,673
  See notes to condensed consolidated financial statements.
    
    (Concluded)
 -6-




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PULITZER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited In thousands) Three Months EndedMar. 28,
    
    Mar. 30,2004
    
    2003CASH FLOWS FROM OPERATING ACTIVITIES:Net Income
    
    $
    8,055
    
    
    $
    7,056Adjustments to reconcile net income to net cash provided by
operating activities:Depreciation
    
    
    3,736
    
    
    
    3,682Amortization
    
    
    1,192
    
    
    
    1,105Stock-based compensation
    
    
    407
    
    
    
    303Deferred income taxes
    
    
    (667
    )
    
    
    704Net gain on sale of assets
    
    
    (552
    )
    
    
    (25
    )Net loss on investments
    
    
    42
    
    
    
    784Changes in current assets and liabilities (net of the effects of the
purchase and sale of properties) which provided (used) cash:Trade accounts receivable
    
    
    7,222
    
    
    
    6,299Inventory
    
    
    (2,890
    )
    
    
    (468
    )Other assets
    
    
    (3,582
    )
    
    
    (5,617
    )Trade accounts payable and other liabilities
    
    
    1,828
    
    
    
    (604
    )Income taxes (receivable)/payable
    
    
    12,508
    
    
    
    3,726NET CASH FROM OPERATING ACTIVITIES
    
    
    27,299
    
    
    
    16,945CASH FLOWS FROM INVESTING ACTIVITIES:Capital expenditures
    
    
    (1,222
    )
    
    
    (3,748
    )Purchase of newspaper properties and distribution businesses,
net of cash acquired
    
    
    (704
    )
    
    
    (625
    )Purchases of marketable securities
    
    
    (164,245
    )
    
    
    (68,237
    )Sales of marketable securities
    
    
    159,028
    
    
    
    55,032Return of capital in (investment in) joint ventures and limited
partnerships
    
    
    566
    
    
    
    (1,534
    )Increase in restricted cash and investments
    
    
    (3,750
    )
    
    
    (3,750
    )Discretionary funding of retirement obligations
    
    
    0
    
    
    
    (10,837
    )NET CASH FROM INVESTING ACTIVITIES
    
    
    (10,327
    )
    
    
    (33,699
    )CASH FLOWS FROM FINANCING ACTIVITIES:Dividends paid
    
    
    (4,089
    )
    
    
    (3,840
    )Proceeds from exercise of stock options
    
    
    2,387
    
    
    
    711Proceeds from employee stock purchase plan
    
    
    251
    
    
    
    224Purchase of treasury stock
    
    
    (8
    )
    
    
    0NET CASH FROM FINANCING ACTIVITIES
    
    
    (1,459
    )
    
    
    (2,905
    )NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    15,513
    
    
    
    (19,659
    )CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
    
    
    27,552
    
    
    
    81,517CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    43,065
    
    
    $
    61,858
 (Continued) -7-




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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid (received) during the period for:Interest paid
    
    $
    3,139
    
    
    $
    4,649Interest received
    
    
    (1,243
    )
    
    
    (804
    )Income taxes paid
    
    
    10
    
    
    
    23Income tax refunds
    
    
    (7,000
    )
    
    
    (126
    )SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
AND FINANCING ACTIVITIES:Increase in dividends payable and decrease in retained earnings
    
    $
    0
    
    
    $
    3,844
  See notes to condensed consolidated financial statements.
    
    (Concluded)
 -8-




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PULITZER INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fiscal Year Pulitzer Inc. and its subsidiaries and affiliated entities
(the Company) fiscal year ends on the last Sunday of the calendar year. For
2004, the Companys fiscal year began on December 29, 2003 and will end on
December 26, 2004. For 2003, the Companys fiscal year began on December 30,
2002 and ended on December 28, 2003. Basis of Consolidation The condensed consolidated financial statements
include the accounts of Pulitzer Inc. and its subsidiary companies, all of
which are wholly-owned except for Pulitzer Inc.s (including another
subsidiary) 95 percent interest in the results of operations of the St. Louis
Post-Dispatch LLC (PD LLC) and STL Distribution Services LLC (DS LLC), a
distribution company serving the St. Louis market, and 50 percent interest in
the results of operations of the Tucson Newspaper Agency (TNI). All
significant intercompany transactions have been eliminated from the condensed
consolidated financial statements. Interim Adjustments In the opinion of management, the accompanying
unaudited condensed consolidated financial statements contain all adjustments,
consisting only of normal recurring adjustments, necessary to present fairly
the Companys consolidated financial position as of March 28, 2004 and December
28, 2003 and the results of operations and cash flows for the three-month
periods ended March 28, 2004 and March 30, 2003. These condensed consolidated
financial statements should be read in conjunction with the audited
consolidated financial statements and related notes thereto included in the
Companys Annual Report on Form 10-K for the fiscal year ended December 28,
2003. Consolidated results of operations and cash flows for interim periods
are not necessarily indicative of the results to be expected for the full year. Earnings Per Share of Stock Basic earnings per share of stock is
computed using the weighted average number of common and Class B common shares
outstanding during the applicable period. Diluted earnings per share of stock
is computed using the weighted average number of common and Class B common
shares outstanding and common stock equivalents (primarily outstanding stock
options). Weighted average shares used in the calculation of basic and diluted
earnings per share are summarized as follows: First Quarter EndedMar. 28,
    
    Mar. 30,2004
    
    2003(In thousands)Weighted average shares outstanding (Basic EPS)
    
    
    21,541
    
    
    
    21,346Common stock equivalents
    
    
    314
    
    
    
    116Weighted average shares outstanding and
Common stock equivalents (Diluted EPS)
    
    
    21,855
    
    
    
    21,462
 Common stock equivalents included in the diluted earnings per share
calculation were determined using the treasury stock method. Under the
treasury stock method, outstanding stock options are dilutive when the average
market price of the Companys common stock exceeds the option exercise price
during a period. In addition, proceeds from the assumed exercise of dilutive
options along with the related tax benefit are assumed to be used to repurchase
common shares at the average market price of such stock during the period. Financing Arrangements In December 2001 and August 2003 the Company
executed fixed-to-floating interest rate swap contracts in the current combined
amount of $150.0 million. The swap contracts mature with the Companys debt on
April 28, 2009. The Company accounts for all swaps as fair value hedges and
employs the short cut method. These interest rate swap contracts have the
effect of converting the interest cost for $150.0 million of the Companys debt
from fixed rate to variable rate. As of March 28, 2004, approximately 49
percent of the Companys long-term interest cost is subject to variable rates. In October 2002 the Company terminated other swap contracts totaling $75.0
million, resulting in a net gain of $5.0 million. The Company initially
recognized the $5.0 million cash receipt, representing the increased fair value
of the long-term debt at the date of the swap terminations, as an increase in
long-term liabilities with subsequent, ratable amortization as a reduction of
interest expense over the remaining life of the original interest rate swap
contracts which would have expired on April 28, 2009. -9-




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Stock-Based Employee Compensation The Company has two stock-based
employee compensation plans. The Company accounts for those plans under the
recognition and measurement principals of Accounting Principles Board Opinion
No. 25 (APB 25), Accounting for Stock Issued to Employees, and related
interpretations. Stock-based compensation cost associated with restricted stock
grants, restricted stock awards, and stock options granted to certain TNI
employees, is reflected in net income for 2004 and 2003. No stock-based
employee compensation cost is reflected in net income for stock option plans as
all options granted under those plans had an exercise price equal to the fair
market value of the underlying common stock on the date of grant. The following
table illustrates the effect on net income and earnings per share if the
Company had applied the fair value recognition provisions of FASB Statement No.
123, Accounting for Stock-Based Compensation(SFAS No. 123), to stock-based
employee compensation. The Company has estimated the fair value of its option
grants by using the binomial options pricing model. First Quarter EndedMar. 28,
    
    Mar. 30,2004
    
    2003(In thousands, except earnings per share)Net income, as reported
    
    $
    8,055
    
    
    $
    7,056Add: Stock-based compensation
expense included in reported
net income, net of related
tax effects
    
    
    244
    
    
    
    190Deduct: Total stock-based
compensation expense
determined under fair value
based method for all awards,
net of related tax effect
    
    
    (1,313
    )
    
    
    (1,237
    )Pro forma net income
    
    $
    6,986
    
    
    $
    6,009Pro forma earnings per share:Basic   as reported
    
    $
    0.37
    
    
    $
    0.33Basic  pro forma
    
    $
    0.32
    
    
    $
    0.28Pro forma earnings per share:Diluted  as reported
    
    $
    0.37
    
    
    $
    0.33Diluted  pro forma
    
    $
    0.32
    
    
    $
    0.28
 New Accounting Pronouncements- In December 2003, the Medicare
Prescription Drug, Improvement and Modernization Act of 2003 (the Act) was
signed into law. The Act introduced a prescription drug benefit under Medicare
(Medicare Part D) and a federal subsidy to sponsors of retiree health care
benefit plans that provide a benefit that is at least actuarially equivalent
(as that term is defined in the Act) to Medicare Part D. At present, detailed
regulations necessary to implement the Act have not been issued. Additionally,
certain accounting issues raised by the Act are not explicitly addressed in
existing accounting literature, such as FASB Statement No. 106, Employers
Accounting for Postretirement Benefits Other than Pensions. FASB Staff Position
106-1, Accounting and Disclosure Requirements Related to the Medicare
Prescription Drug, Improvement and Modernization Act of 2003(FSP 106-1),
which is effective for interim or annual financial statements for fiscal years
which ended after December 7, 2003, permits a sponsor of a postretirement
health care plan that provides a prescription drug benefit to make a one-time
election to defer accounting for the effects of the Act. The Company decided to recognize the effects of the Act on the Companys
accumulated postretirement benefit obligation (APBO) and postretirement
benefit costs initially in the first quarter of 2004. The Company has
concluded that it qualifies for the subsidy under the Act since the
prescription drug benefits provided under the Companys postretirement
healthcare plans generally require lower premiums from covered retirees and
have lower deductibles than the benefits provided in Medicare Part D and,
therefore, are actuarially equivalent to or better than the benefits provided
under the Act. In addition, the Company does not anticipate any material
change in the participation rate or per capita claims costs as a result of the
Act. The Company estimates that the provisions of the Act will lower the APBO
by approximately $12 million which will be treated as a negative prior service
cost that will be amortized beginning on March 8, 2004. This amortization -10-




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will result in a $1.3 million reduction to the APBO and postretirement
benefit costs in 2004, against which no income tax provision will be made in
accordance with the Act. Specific authoritative guidance on the accounting for
the federal subsidy is pending, and that guidance, when issued, could require
the Company to change previously reported information. Use of Estimates The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and reported amounts of
revenues and expenses during the reporting period. Actual results may differ
from those estimates. Reclassifications Certain reclassifications have been made to the 2003
consolidated financial statements to conform with the presentation made in
2004. 2. TUCSON NEWSPAPER PARTNERSHIP In Tucson, Arizona, a separate partnership, TNI Partners, (TNI), acting
as agent for the Companys subsidiary, Star Publishing Company (Star
Publishing), and Gannett Co. Inc. (Gannett), is responsible for printing,
delivery, advertising, and circulation of the Arizona Daily Star(the Star)
and the Tucson Citizen (the Citizen). TNI collects all of the receipts and
income relating to the Starand the Citizenand pays all operating expenses
incident to the partnerships operations and publication of the newspapers.
Each newspaper is solely responsible for its own news and editorial content.
Net pretax income or net pretax loss of TNI is allocated equally to Star
Publishing and Gannett. The Companys 50 percent share of TNIs operating
results is reported as Equity in earnings of Tucson newspaper partnership in
the accompanying condensed consolidated statements of income. Summarized financial information for TNI is as follows: Mar. 28,
    
    Dec. 28,2004
    
    2003(In thousands)Current assets
    
    $
    14,718
    
    
    $
    15,935Current liabilities
    
    $
    8,411
    
    
    $
    9,315Partners equity
    
    $
    6,307
    
    
    $
    6,620
 First Quarter EndedMar. 28,
    
    Mar. 30,2004
    
    2003Operating revenues
    
    $
    27,046
    
    
    $
    27,480Operating income
    
    $
    7,834
    
    
    $
    8,292Companys share of operating income
before depreciation, amortization, and
general and administrative expense (1)
    
    $
    3,917
    
    
    $
    4,146
  (1)
    
    Star Publishing depreciation, amortization, and general and
administrative expenses are reported as operating expenses on the Companys
condensed consolidated statements of income. In aggregate, these amounts
totaled $765,000 and $657,000 for the first quarter of 2004 and 2003,
respectively. 3. ACQUISITION OF PROPERTIES In the first quarter of 2004, Pulitzer Inc. subsidiaries acquired
businesses, principally weekly newspapers and niche publications that
complement Pulitzer Newspapers, Inc. and its subsidiaries (the PNI Group)
daily newspaper operations in Coos Bay, Oregon and Bloomington, Illinois, for
an aggregate price of approximately $0.7 million. In the first quarter of 2003
Pulitzer Inc. subsidiaries acquired businesses, principally St. Louis newspaper
distribution businesses, totaling $0.6 million. Pro forma results of these
acquisitions were not material and are, therefore, not presented. -11-




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4. GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amounts of goodwill and other intangible assets of
the Company for the three months ended March 28, 2004 were as follows: OtherIntangible(In thousands)
    
    Goodwill
    
    AssetsBalance at December 28, 2003
    
    $
    811,409
    
    
    $
    37,217Additions during the period
    
    
    315
    
    
    
    382Amortization expense
    
    
    0
    
    
    
    (1,192
    )Balance at March 28, 2004
    
    $
    811,724
    
    
    $
    36,407
 Other intangible assets at March 28, 2004 and December 28, 2003 were as
follows: Accumulated
    
    Net(In thousands)
    
    Cost
    
    Amortization
    
    CostMarch 28, 2004Other intangible assets:Advertising base
    
    $
    33,750
    
    
    $
    7,899
    
    
    $
    25,851Subscriber lists
    
    
    23,449
    
    
    
    14,731
    
    
    
    8,718Long-term pension asset
    
    
    1,260
    
    
    
    0
    
    
    
    1,260Non-compete agreements and other
assets
    
    
    5,376
    
    
    
    4,798
    
    
    
    578Total other intangible assets
    
    $
    63,835
    
    
    $
    27,428
    
    
    $
    36,407December 28, 2003Other intangible assets:Advertising base
    
    
    33,552
    
    
    
    7,487
    
    
    
    26,065Subscriber lists
    
    
    23,300
    
    
    
    14,040
    
    
    
    9,260Long-term pension asset
    
    
    1,260
    
    
    
    0
    
    
    
    1,260Non-compete agreements and other
assets
    
    
    5,341
    
    
    
    4,709
    
    
    
    632Total other intangible assets
    
    $
    63,453
    
    
    $
    26,236
    
    
    $
    37,217
 Pretax amortization expense of other intangible assets for the first
quarter ended March 28, 2004 was $1.2 million and annually over the next six
years is estimated to be: $4.7 million for 2004 and 2005, $4.5 million for
2006, $2.4 million for 2007, and $1.9 million for 2008 and 2009.  5.
    
    COMPONENTS OF PENSION AND OTHER BENEFIT PLANS NET PERIODIC
BENEFIT COSTS The Company has several funded and unfunded noncontributory defined
benefit pension plans that together cover a significant portion of its
employees. Benefits under the plans are generally based on salary and years of
service. The Companys liability and related expense for benefits under the
plans are recorded over the service period of active employees based upon
annual actuarial calculations. Plan funding strategies are influenced by tax
regulations. Plan assets consist primarily of domestic and foreign corporate
equity securities, government and corporate bonds, and cash. In addition, the Company provides retiree medical and life insurance
benefits under varying postretirement plans at several of its operating
locations. The level and adjustment of participant contributions vary
depending on the specific postretirement plan. In addition, PD LLC provides
postemployment disability benefits to certain employee groups prior to
retirement at the St Louis Post-Dispatch (Post-Dispatch). The Companys
liability and related expense for benefits under the postretirement plans are
recorded over the service period of active employees based upon annual
actuarial calculations. The Company accrues postemployment disability benefits
when it becomes probable that such benefits will be paid and when sufficient
information exists to make reasonable estimates of the amounts to be paid. -12-




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The Company uses a September 30 measurement date for all of its pension
and postretirement plan obligations. The pension cost components for the Companys pension and postretirement
plans are as follows: Pension Benefits
    
    Other BenefitsFirst Quarter EndedMar. 28,
    
    Mar. 30,
    
    Mar. 28,
    
    Mar. 30,2004
    
    2003
    
    2004
    
    2003(In thousands)Service cost for benefits earned during the period
    
    $
    1,225
    
    
    $
    1,092
    
    
    $
    712
    
    
    $
    582Interest cost on projected benefit obligation
    
    
    2,331
    
    
    
    2,323
    
    
    
    1,757
    
    
    
    1,670Expected return on plan assets
    
    
    (2,776
    )
    
    
    (2,466
    )
    
    
    (284
    )
    
    
    (192
    )Amortization of prior service cost
    
    
    78
    
    
    
    78
    
    
    
    0
    
    
    
    3Amortization of transition obligation
    
    
    0
    
    
    
    14
    
    
    
    0
    
    
    
    0Amortization of loss
    
    
    364
    
    
    
    100
    
    
    
    282
    
    
    
    90Cost for special termination benefits
    
    
    0
    
    
    
    32
    
    
    
    0
    
    
    
    0Net periodic pension cost
    
    $
    1,222
    
    
    $
    1,173
    
    
    $
    2,467
    
    
    $
    2,153
 Based on the Companys forecast at March 28, 2004, the Company expects to
contribute $1.4 million to its pension plans and $6.5 million to its
postretirement plans in 2004.  6.
    
    COMMITMENTS AND CONTINGENCIES Capital Commitments As of March 28, 2004, the Company had construction and equipment
commitments of approximately $2.8 million. Investment Commitments As of March 28, 2004, the Company had an unfunded capital contribution
commitment of approximately $7.1 million related to its investment in a limited
partnership not associated with or involved in the Companys operations. Merger Agreement Indemnification Pursuant to an Amended and Restated Agreement and Plan of Merger, dated as
of May 25, 1998 (the Merger Agreement), by and among Old Pulitzer, Pulitzer
Inc. and Hearst-Argyle Television, Inc. (Hearst-Argyle) on March 18, 1999,
Hearst-Argyle acquired, through the merger (the Merger) of Old Pulitzer with
and into Hearst-Argyle, Old Pulitzers television and radio broadcasting
operations (collectively, the Broadcasting Business) in exchange for the
issuance to Old Pulitzers stockholders of 37,096,774 shares of Hearst-Argyles
Series A common stock. Old Pulitzers Broadcasting Business consisted of nine
network-affiliated television stations and five radio stations owned and
operated by Pulitzer Broadcasting Company and its wholly owned subsidiaries.
Prior to the Merger, Old Pulitzers newspaper publishing and related new media
businesses were contributed to the Company in a tax-free spin-off to Old
Pulitzer stockholders (the Spin-off). The Merger and Spin-off are
collectively referred to as the Broadcast Transaction. Old Pulitzers historical basis in its newspaper publishing and related
new-media assets and liabilities has been carried over to the Company. The
Broadcast Transaction represents a reverse-spin transaction and, accordingly,
the Companys results of operations for periods prior to the consummation of
the Broadcast Transaction are identical to the historical results previously
reported by Old Pulitzer. Pursuant to the Merger Agreement, Pulitzer Inc. is obligated to indemnify
Hearst-Argyle against losses related to: (i) on an after tax basis, certain tax
liabilities, including (A) any transfer tax liability attributable to the
Spin-off, (B) with certain exceptions, any tax liability of Old Pulitzer, or
any subsidiary of Old Pulitzer attributable to any tax period (or portion
thereof) ending on or before the closing date of the Merger, including tax
liabilities resulting from the Spin-off, and (C) any tax liability of Pulitzer
Inc. or any subsidiary of Pulitzer Inc.; (ii) liabilities and obligations under
any employee benefit plans not assumed by Hearst-Argyle; and (iii) certain
other matters as set forth in the Merger Agreement. -13-




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Internal Revenue Services Matters In October 2001 the Internal Revenue Service (IRS) formally proposed
that Old Pulitzers taxable income for the tax year ended March 18, 1999 be
increased by approximately $80.4 million based on the assertion that Old
Pulitzer was required to recognize a taxable gain in that amount as a result of
the Spin-off. Pulitzer Inc. is obligated under the Merger Agreement to
indemnify Hearst-Argyle against any tax liability attributable to the Spin-off
and has the right to control any proceedings relating to the determination of
such tax liability. If the IRS were completely successful in its proposed
adjustment, the Companys indemnification obligation would be approximately
$29.3 million, plus applicable interest. Any income tax indemnification
payment would be recorded as an adjustment to additional paid-in capital, and
any related interest expense would be reflected as a component of net income in
the period recognized. The Company does not believe that Old Pulitzer realized any taxable gain
in connection with the Spin-off, and in January 2002, it contested the IRS
proposed increase in a formal written protest filed with the IRS Appeals
Office. In a letter addressed to the Companys representatives, the IRS
Appeals Officer indicated that he supports the position asserted by the IRS and
is inclined to sustain substantially the entire amount of the IRS proposed
increase in Old Pulitzers taxable income. The Companys representatives have
responded to the IRS Appeals Officers letter and are continuing their
discussions regarding the Companys position. While there can be no assurance
that the Company will completely prevail in its position, it continues to
believe that the IRS position is not supported by the facts or applicable
legal authority. The Company intends to vigorously contest the IRS
proposed increase in Old Pulitzers taxable income and has not accrued any liability in connection with this matter.
If the Company and the IRS are unable to resolve their differences in the IRS
Appeals Office, the Company likely will pursue its case before the United
States Tax Court. Potential Income Tax Refund On August 30, 2002, the Company, on behalf of Old Pulitzer, filed with the
IRS amended federal corporate income tax returns for the years ended December
1997 and 1998 and March 1999 in which refunds of tax in the aggregate amount of
approximately $8.1 million, plus interest, were claimed. These refund claims
were based on the Companys contention that Old Pulitzer was entitled to deduct
certain fees and expenses which it had not previously deducted and which Old
Pulitzer had incurred in connection with its investigation of several strategic
alternatives and potential transactions prior to its decision to proceed with
the Broadcast Transaction. Under the Merger Agreement, the Company is entitled
to any amounts recovered from the IRS as a result of these refund claims,
although there can be no assurance that the IRS will approve all or any portion
of these refund claims. Discussions between the Companys representatives and
the IRS regarding these refund claims are ongoing, and no
receivable has been recognized in connection with these refund claims. Any
income tax refunds would be recorded as an adjustment to additional
paid-in-capital, and any related interest received would be reflected as a
component of net income in the period recognized. PD LLC Operating Agreement On May 1, 2000, Pulitzer Inc. and The Herald Company, Inc. (Herald)
completed the transfer of their respective interests in the assets and
operations of the Post-Dispatchand certain related businesses to a new joint
venture (the Venture), known as PD LLC. Pulitzer Inc. is the managing member
of PD LLC. Under the terms of the operating agreement governing PD LLC (the
Operating Agreement), Pulitzer Inc. and another subsidiary hold a 95 percent
interest in the results of operations of PD LLC and Herald holds a 5 percent
interest. Heralds 5 percent interest is reported as Minority Interest in Net
Earnings of Subsidiary in the consolidated statements of income. Also, under
the terms of the Operating Agreement, Herald received on May 1, 2000 a cash
distribution of $306.0 million from PD LLC (the Initial Distribution). This
distribution was financed by a $306.0 million borrowing by PD LLC (the Loan).
Pulitzer Inc.s entry into the Venture was treated as a purchase for
accounting purposes. During the first ten years of its term, PD LLC is restricted from making
distributions (except under specified circumstances), capital expenditures and
member loan repayments unless it has set aside out of its cash flow a reserve
equal to the product of $15.0 million and the number of years since May 1,
2000, but not in excess of $150.0 million (the Reserve). PD LLC is not
required to maintain the Reserve after May 1, 2010. On May 1, 2010, Herald will
have a one-time right to require PD LLC to redeem Heralds interest in PD LLC,
together with Heralds interest, if any, in another limited liability company
in which Pulitzer Inc. is the managing member and which is engaged in the
business of delivering publications and products in the greater St. Louis
metropolitan area (DS LLC). The May 1, 2010 redemption price for Heralds
interest will be determined pursuant to a formula yielding an amount which will
result in the present value to May 1, 2000 of the after-tax cash flows to
Herald (based on certain assumptions) from PD LLC, including the Initial
Distribution and the special distribution described below, if any, and from DS
LLC, being equal to $275.0 million. In the event that PD LLC has an increase in
the tax basis of its assets as a result of Heralds recognizing taxable income
from certain transactions effected under the agreement governing the
contributions of Pulitzer Inc. and one of its subsidiaries and Herald to PD LLC
or the Operating -14-




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Agreement or from the transactions effected in connection with the
organization of DS LLC, Herald generally will be entitled to receive a special
distribution from PD LLC in an amount that corresponds, approximately, to the
present value of the after-tax benefit to the members of PD LLC of the tax
basis increase. Upon the termination of PD LLC and DS LLC, which will be on
May 1, 2015 (unless Herald exercises the redemption right described above),
Herald will be entitled to the liquidation value of its interests in PD LLC and
DS LLC, to be paid in cash by Pulitzer Inc. That amount will be equal to the
amount of Heralds capital accounts, after allocating the gain or loss that
would result from a cash sale of PD LLC and DS LLCs assets for their fair
market value at that time. Heralds share of such gain or loss generally will
be 5 percent, but will be reduced (but not below 1 percent) to the extent that
the present value to May 1, 2000 of the after-tax cash flows to Herald from PD
LLC and from DS LLC, including the Initial Distribution, the special
distribution described above, if any, and the liquidation amount (based on
certain assumptions), exceeds $325.0 million. The actual amount payable to Herald either on May 1, 2010 or upon the
termination of PD LLC and DS LLC on May 1, 2015 will depend on such variables
as future cash flows, the amounts of any distributions to Herald prior to such
payment, PD LLC and DS LLCs rate of growth and market valuations of newspaper
properties. While the amount of such payment cannot be predicted with
certainty, Pulitzer Inc. currently estimates (assuming a 5 percent annual
growth rate in Heralds capital accounts, no special distribution as described
above and consistent newspaper property valuation multiples) that the amount of
such payment would not exceed $100 million. Pulitzer Inc. further believes
that it will be able to finance such payment either from available cash
reserves or with the proceeds of a debt issuance. Legal Contingencies In the lawsuit filed in the Missouri Circuit Court, Twenty-Second Judicial
Circuit (City of St. Louis, Missouri), described in the Companys Annual
Report on Form 10-K for the year ended December 28, 2003, by a group of 33
independent carriers (the Plaintiffs) engaged in the business of delivering
the Post-Dispatchpursuant to home delivery contracts involving 44 carrier
routes, the Court has set a trial date of May 17, 2004, having denied the
dispositive motions of Pulitzer Inc., PD LLC and Suburban Journals LLC (the
Defendants) on the substance of Plaintiffs three claims. The Defendants
continue to deny any liability, are vigorously defending the suit and believe
that they have meritorious defenses and, therefore, the Company has not accrued
a liability in connection with this lawsuit. While the ultimate outcome of
litigation cannot be predicted with certainty, management, based on its
understanding of the facts, does not believe the ultimate resolution of this
litigation will have a materially adverse effect on the Companys consolidated
financial position. However, depending upon the period of resolution, such
effect could be material to the consolidated financial results of an individual
period. The Company has been involved, from time to time, in various claims and
lawsuits incidental to the ordinary course of its business, including such
matters as libel, slander and defamation actions, complaints alleging
discrimination, and product distribution practices. While the ultimate outcome
of litigation cannot be predicted with certainty, management, based on its
understanding of the facts, does not believe the ultimate resolution of these
matters will have a material adverse effect on the Companys consolidated
financial position or results of operations. However, depending upon the period
of resolution, such effects could be material to the consolidated financial
results of an individual period.  7.
    
    OPERATING REVENUES The Companys consolidated operating revenues consist of the following: First Quarter EndedMar. 28,
    
    Mar. 30,2004
    
    2003St. Louis operations
    
    $
    73,382
    
    
    $
    70,949Pulitzer Newspapers, Inc.
    
    
    29,353
    
    
    
    27,283Total
    
    $
    102,735
    
    
    $
    98,232
 ****** -15-




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##### Table of Contents



Item 2.
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Statements in this Quarterly Report on Form 10-Q concerning the Companys
business outlook or future economic performance, anticipated profitability,
revenues, expenses or other financial items, together with other statements
that are not historical facts, are forward-looking statements as that term is
defined under the Federal Securities Laws. Forward-looking statements are
subject to risks, uncertainties and other factors which could cause actual
results to differ materially from those stated in such statements. Such risks,
uncertainties and other factors include, but are not limited to, industry
cyclicality, the seasonal nature of the business, changes in pricing or other
actions by competitors or suppliers (including newsprint suppliers), outcome of
labor negotiations, capital or similar requirements, and general economic
conditions, any of which may impact advertising and circulation revenues and
various types of expenses, as well as other risks detailed in the Companys
filings with the Securities and Exchange Commission including this Quarterly
Report on Form 10-Q. Although the Company believes that the expectations
reflected in forward-looking statements are reasonable, it cannot guarantee
future results, levels of activity, performance or achievements. Accordingly,
investors are cautioned not to place undue reliance on any such
forward-looking statements, and the Company disclaims any obligation to
update the information contained herein or to publicly announce the result of
any revisions to such forward-looking statements to reflect future events or
developments. GENERAL Pulitzer Inc. (together with its subsidiaries and affiliated entities, the
Company) is a newspaper publishing company with integrated Internet
operations in 14 United States markets, the largest of which is St. Louis,
Missouri. For the first quarter of 2004, the Companys St. Louis operations
contributed approximately 71 percent of reported revenue. Pulitzer Inc. is the successor to the company founded by the first Joseph
Pulitzer in 1878 to publish the original St. Louis Post-Dispatch(the
Post-Dispatch"). The Company and its predecessors have operated continuously
since 1878 with the involvement of the Pulitzer family. Michael E. Pulitzer, a
grandson of the founder, currently serves as Chairman of the Board of the
Company. The Companys newspaper holdings include operations in St. Louis,
Missouri, where its subsidiariy, St. Louis Post-Dispatch LLC (PD LLC),
publishes the Post-Dispatch, the only major daily newspaper serving the greater
St. Louis metropolitan area, and in Tucson, Arizona, where its subsidiary, Star
Publishing Company (Star Publishing), publishes the Arizona Daily Star(the
"Star). In Tucson, Star Publishing shares, on an equal basis, the combined
results of the Starand the Tucson Citizen(the Citizen),published by the
Gannett Co., Inc. (Gannett). The St. Louis newspaper operations include the Suburban Journals (the
Suburban Journals), acquired by Suburban Journals of Greater St. Louis LLC in
August 2000. The Suburban Journals are a group of 38 weekly papers and various
niche publications that focus on providing local news and editorial content to
the communities that they serve and have a combined average weekly distribution
of approximately 1.3 million. As a result of the May 1, 2000 transaction that created PD LLC, PD LLC
operates the Post-Dispatch.Pulitzer Inc. and one of its subsidiaries hold a 95
percent interest in the results of PD LLC operations. Prior to May 1, 2000,
Pulitzer Inc. shared the operating profits and losses of the Post-Dispatchon a
50-50 basis with The Herald Company, Inc. (Herald). Pulitzer Inc.s wholly owned subsidiary, Pulitzer Newspapers, Inc.
(PNI), and its subsidiaries (collectively, the PNI Group) publish 12
dailies that serve markets in the Midwest, Southwest and West, as well as more
than 65 weekly newspapers, shoppers and niche publications. The Companys revenues are derived primarily from advertising and
circulation, which have respectively averaged approximately 78 percent and 20
percent of total revenue over the last five years. Advertising rates and rate
structures and resulting revenues vary among publications based, among other
things, on circulation, type of advertising, local market conditions and
competition. The Companys operating revenues are significantly influenced by a number
of factors, including overall advertising expenditures, the appeal of
newspapers in comparison to other forms of advertising, the performance of -16-




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the Company in comparison to its competitors in specific markets, the
strength of the national economy, and general economic conditions and
population changes in the markets served by the Company. The Companys business tends to be seasonal, with peak revenues and
profits generally occurring in the fourth and, to a lesser extent, second
quarters of each year as a result of increased advertising activity during the
Christmas and spring holiday periods. The first quarter is historically the
weakest quarter for revenues and profits. Acquisition and Disposition of Properties In the first quarter of 2004, Pulitzer Inc. subsidiaries acquired
businesses, principally weekly newspapers and niche publications that
complement the PNI Groups daily newspaper operations in Coos Bay, Oregon and
Bloomington, Illinois, for an aggregate price of approximately $0.7 million. In
the first quarter of 2003 Pulitzer Inc. subsidiaries acquired businesses,
principally St. Louis newspaper distribution businesses, totaling $0.6 million.
Pro forma results of these acquisitions were not material and are, therefore,
not presented. Critical Accounting Policies The Company regularly reviews its selection and application of significant
accounting policies and related financial disclosures. The application of
these accounting policies requires that management make estimates and
judgments. The estimates that affect the application of the most critical
accounting policies and require the most significant judgments are outlined in
Managements Discussion and Analysis of Financial Condition and Results of
Operations  Critical Accounting Policies  contained in our Annual Report on
Form 10-K for the year ended December 28, 2003. FIRST QUARTER ENDED MARCH 28, 2004 COMPARED WITH QUARTER ENDED MARCH 30, 2003 Executive Overview Operating revenue increased 4.6 percent to $102.7 million for the first
quarter of 2004 versus $98.2 million in 2003, reflecting a 5.6 percent increase
in advertising revenue and a 1.8 percent increase in circulation revenue. The
advertising revenue increase resulted, principally, from (a) a 3.9 percent
increase in retail advertising revenue, including retail preprints, reflecting
gains from smaller local advertisers, growth in the furniture, grocery and home
improvement categories, and revenues from Local Values, the Post-Dispatchsnew
direct mail initiative; and (b) a 10.9 percent increase from classified
advertising, reflecting an 11.4 percent increase in help wanted advertising, a
16.6 percent increase in real estate advertising, and a 6.3 percent increase in
automotive advertising. The retail and classified advertising revenue
increases were partially offset by a 5.6 percent decrease in national
advertising, including national preprints, principally due to weakness in the
telecommunication and travel categories. Operating expenses for the first quarter of 2004 increased 5.8 percent to
$90.4 million from $85.4 million in the first quarter of 2003, principally due
to increased labor and employee benefit costs, increased newsprint expense,
principally as a result of higher newsprint prices compared to the first
quarter of 2003, incremental operating expenses from PNI Group newspaper
acquisitions, and distribution and production expenses related to Local Values.
These expense increases were partially offset by decreased bad debt expense.
First quarter 2004 operating income decreased to $16.2 million, or 4.2 percent,
from $16.9 million in the first quarter of 2003. First quarter 2004 net income increased to $8.1 million, or $0.37 per
diluted share, compared to $7.1 million, or $0.33 per diluted share for the
first quarter of 2003. The increase in 2004 net income was principally due to
decreased interest expense resulting from the Companys interest rate swap
contracts attributable to declining interest rates during the quarter, lower
adjustments to the carrying value of certain non-operating investments during
the first quarter of 2004 compared to the prior year, a $0.6 million gain on
the sale of marketable securities and increased interest income due to higher
yields on invested funds, partially offset by a decrease in operating income. Operating Results Operating revenue for the first quarter of 2004 increased to $102.7
million, or 4.6 percent, from $98.2 million in the first quarter of 2003.
Retail advertising revenue increased 4.8 percent to $27.8 million in the first
quarter of 2004 from $26.6 million in the prior year. The increase was driven
by a 13.1 percent rise in revenue from small to mid-size advertisers in St.
Louis and the PNI Groups 2003 and 2004 newspaper acquisitions. These increases
were partially offset by weakness in the department store, furniture and home
improvement categories. Preprint revenue increased 3.5 percent to $14.2
million in 2004 from $13.7 million in 2003. -17-




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National advertising revenue decreased 9.7 percent in first quarter of
2004, to $6.2 million compared to $6.8 million in 2003. The decrease resulted,
principally, from weakness in the telecommunication and travel categories in
St. Louis, partially offset by increased revenue from the national automotive
category. First quarter 2004 classified advertising revenue increased 10.9 percent
to $32.2 million from $29.1 million in 2003. Demand for classified advertising
was broad-based, with each major classified revenue category increasing
compared to the comparable quarter in 2003. Real estate, help wanted and
automotive classified revenue categories reported year-over-year revenue
increases of 16.6 percent, 11.4 percent and 6.3 percent, respectively. The
Companys classified advertising revenue percentage changes for the first
quarter of 2004 versus the comparable period of 2003 are summarized in the
table below: Pulitzer
    
    St. Louis
    
    PNI GroupClassified advertising revenueFirst Quarter 2004 vs.
    
    percentage change from comparableFirst Quarter 2003
    
    prior year periodAutomotive
    
    
    +6.3
    %
    
    
    +7.0
    %
    
    
    +3.9
    %Help Wanted
    
    
    +11.4
    %
    
    
    +6.3
    %
    
    
    +31.2
    %Real Estate
    
    
    +16.6
    %
    
    
    +10.3
    %
    
    
    +33.4
    %Total Classified
    
    
    +10.9
    %
    
    
    +7.8
    %
    
    
    +20.3
    %
 Circulation revenues increased $0.4 million, or 1.8 percent, in the first
quarter of 2004. Other publishing revenues decreased $0.1 million, or 6.8
percent, due principally to decreased commercial printing revenue. Operating expense increased 5.8 percent in first quarter of 2004 to $90.4
million compared to $85.4 million in the first quarter of 2003. Labor and
employee benefits costs increased 2.2 percent, reflecting increased salary
expense, increased healthcare costs and higher pension expense and
post-retirement healthcare benefit expense. These increases were partially
offset by a 2.1 percent reduction in full-time equivalent employees (FTEs)
related to improved production and distribution efficiencies in St. Louis and
operating efficiencies at the PNI Group resulting from the combination of
certain weekly and daily newspaper operations. Newsprint expense increased 10.3 percent in the first quarter of 2004 to
$11.0 million from $10.0 million in the first quarter of 2003, resulting,
principally, from a 9.4 percent increase in newsprint prices, higher newsprint
consumption associated with the PNI Groups 2004 and 2003 acquisitions and the
redesign and expansion of the editorial content of the Suburban Journalsin St.
Louis. Depreciation and amortization expense increased 2.9 percent to $4.9
million in the first quarter of 2004 compared to $4.8 million in the first
quarter of 2003. Equity in earnings of Tucson newspaper partnership (TNI) decreased 5.5
percent to $3.9 million from $4.1 million in the first quarter of 2004 due,
principally, to decreased retail and national advertising revenue and higher
newsprint expense, principally driven by increased newsprint prices. First quarter 2004 operating income decreased 4.2 percent to $16.2 million
from $16.9 million in the first quarter of 2003. Non-Operating Items Interest expense, net of interest income, decreased in the first quarter
to $3.5 million from $4.5 million in the same quarter of 2003, principally due
to savings from the Companys interest rate swaps and higher yields on invested
funds. In addition, the Company realized a $0.6 million gain on the sale of
marketable securities. The effective income tax rate for the first quarter of
2004 and 2003 was 37.0 percent. -18-




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Net Income For the first quarter 2004 the Company reported net income of $8.1
million, or $0.37 per diluted share, compared to $7.1 million, or $0.33 per
diluted share, in the comparable quarter of 2003. LIQUIDITY AND CAPITAL RESOURCES As of March 28, 2004, the Company had an unrestricted cash and marketable
securities balance of $197.3 million compared to $176.2 million as of December
28, 2003. The increase resulted principally from an increase in first quarter
2004 net income, the receipt of 2003 income tax refunds and the absence, in
2004, of discretionary contributions to fund the Companys retirement
obligations. At both March 28, 2004, and December 28, 2003, the Company had $306.0
million of outstanding debt pursuant to a loan agreement between PD LLC and a
group of institutional lenders led by Prudential Capital Group (the Loan).
The aggregate principal amount of the Loan is payable on April 28, 2009, and
bears interest at an annual rate of 8.05 percent. The agreements with respect to the Loan (the Loan Agreements) contain
certain covenants and conditions including the maintenance of cash flow and
various other financial ratios, minimum net worth requirements and limitations
on the incurrence of other debt. In addition, the Loan Agreements and the PD
LLC Operating Agreement (the Operating Agreement) require that PD LLC
maintain a minimum reserve balance consisting of cash and investments in U.S.
government securities, totaling approximately $58.6 million as of March 28,
2004. The Loan Agreements and the Operating Agreement provide for a $3.75
million quarterly increase in the minimum reserve balance through May 1, 2010,
when the amount will total $150.0 million. There is no requirement for the
Company to maintain the reserve balance subsequent to May 1, 2010. The Company expects to spend approximately $10.0 million to $12.0 million
on property, plant and equipment in 2004. As of March 28, 2004, the Company
had capital commitments for buildings and equipment replacements of
approximately $2.8 million. In addition, as of March 28, 2004, the Company had
an unfunded capital contribution commitment of approximately $7.1 million
related to its investment in a limited partnership not associated with or
involved in the Companys operations. In order to build a stronger, more direct relationship with the readers of
the Post-Dispatch,PD LLC has purchased a number of distribution businesses
from independent carriers and dealers over the past four years, and it may
continue to purchase additional distribution businesses from time to time in
the future. As of March 28, 2004, PD LLC owned approximately 70 percent of its
circulation routes covering approximately 70 percent of the Post-Dispatchs
daily home delivery and 75 percent of single copy distribution in the
newspapers designated market. The Companys Board of Directors previously authorized the repurchase of
up to $100.0 million of the Companys outstanding capital stock. The Companys
repurchase program provides for the purchase of both common and Class B common
shares in either the open market or in privately negotiated transactions. As
of March 28, 2004, the Company had repurchased under this authority 1,000,000
shares of Class B common stock and 532,987 shares of common stock for a
combined purchase price of $62.2 million, leaving $37.8 million in remaining
share repurchase authority. The Company generally expects to generate sufficient cash from operations
to cover capital expenditures, working capital requirements, stock repurchases,
and dividend payments. Cash flows from operations are dependent upon, among
other things, the continued acceptance of newspaper advertising at current or
increased levels and the availability of raw materials, principally newsprint. CASH FLOWS Cash flow from operations is the Companys primary source of liquidity.
Cash provided from operating activities for the first three months of 2004 was
$27.3 million compared to $16.9 million in 2003. The increase resulted
principally from 2003 income tax refunds and increased net income. Cash used for investing activities during the first three months of 2004
was $10.3 million compared to $33.7 million used in the first three months
2003. The Company expended $5.2 million, net, for the purchase of marketable
securities in 2004 compared to a net expenditure of $13.2 million in the first
three months of 2003. The Company made no discretionary contributions to fund
retirement obligations during the first quarter of 2004 compared to a -19-




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$10.8 million contribution in the first quarter of 2003. In addition,
capital expenditures decreased by $2.5 million in the first three months of
2004 to $1.2 million from $3.7 million in 2003. Cash used for financing activities during the first three months of 2004
was $1.5 million compared to $2.9 million used in the first three months of
2003. The decrease in cash used was due to increased proceeds from the exercise
of stock options, partially offset by increased dividend payments in the first
three months of 2004 versus 2003. OTHER Pursuant to an Amended and Restated Agreement and Plan of Merger, dated as
of May 25, 1998 (the Merger Agreement), by and among Old Pulitzer, Pulitzer
Inc. and Hearst-Argyle Television, Inc. (Hearst-Argyle) on March 18, 1999,
Hearst-Argyle acquired, through the merger (the Merger) of Old Pulitzer with
and into Hearst-Argyle, Old Pulitzers television and radio broadcasting
operations (collectively, the Broadcasting Business) in exchange for the
issuance to Old Pulitzers stockholders of 37,096,774 shares of Hearst-Argyles
Series A common stock. Old Pulitzers Broadcasting Business consisted of nine
network-affiliated television stations and five radio stations owned and
operated by Pulitzer Broadcasting Company and its wholly owned subsidiaries.
Prior to the Merger, Old Pulitzers newspaper publishing and related new media
businesses were contributed to the Company in a tax-free spin-off to Old
Pulitzer stockholders (the Spin-off). The Merger and Spin-off are
collectively referred to as the Broadcast Transaction. Old Pulitzers historical basis in its newspaper publishing and related
new-media assets and liabilities has been carried over to the Company. The
Broadcast Transaction represents a reverse-spin transaction and, accordingly,
the Companys results of operations for periods prior to the consummation of
the Broadcast Transaction are identical to the historical results previously
reported by Old Pulitzer. Merger Agreement Indemnification Pursuant to the Merger Agreement, Pulitzer Inc. is obligated to indemnify
Hearst-Argyle against losses related to: (i) on an after tax basis, certain tax
liabilities, including (A) any transfer tax liability attributable to the
Spin-off, (B) with certain exceptions, any tax liability of Old Pulitzer, or
any subsidiary of Old Pulitzer attributable to any tax period (or portion
thereof) ending on or before the closing date of the Merger, including tax
liabilities resulting from the Spin-off, and (C) any tax liability of Pulitzer
Inc. or any subsidiary of Pulitzer Inc.; (ii) liabilities and obligations under
any employee benefit plans not assumed by Hearst-Argyle; and (iii) certain
other matters as set forth in the Merger Agreement. Internal Revenue Services Matters In October 2001 the Internal Revenue Service (IRS) formally proposed
that Old Pulitzers taxable income for the tax year ended March 18, 1999 be
increased by approximately $80.4 million based on the assertion that Old
Pulitzer was required to recognize a taxable gain in that amount as a result of
the Spin-off. Pulitzer Inc. is obligated under the Merger Agreement to
indemnify Hearst-Argyle against any tax liability attributable to the Spin-off
and has the right to control any proceedings relating to the determination of
such tax liability. If the IRS were completely successful in its proposed
adjustment, the Companys indemnification obligation would be approximately
$29.3 million, plus applicable interest. Any income tax indemnification
payment would be recorded as an adjustment to additional paid-in capital, and
any related interest expense would be reflected as a component of net income in
the period recognized. The Company does not believe that Old Pulitzer realized any taxable gain
in connection with the Spin-off, and in January 2002, it contested the IRS
proposed increase in a formal written protest filed with the IRS Appeals
Office. In a letter addressed to the Companys representatives, the IRS
Appeals Officer indicated that he supports the position asserted by the IRS and
is inclined to sustain substantially the entire amount of the IRS proposed
increase in Old Pulitzers taxable income. The Companys representatives have
responded to the IRS Appeals Officers letter and are continuing their
discussions regarding the Companys position. While there can be no assurance
that the Company will completely prevail in its position, it continues to
believe that the IRS position is not supported by the facts or applicable
legal authority. The Company intends to vigorously contest the IRS
proposed increase in Old Pulitzers taxable income and has not accrued any liability in connection with this matter.
If the Company and the IRS are unable to resolve their differences in the IRS
Appeals Office, the Company likely will pursue its case before the United
States Tax Court. -20-




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Potential Income Tax Refund On August 30, 2002, the Company, on behalf of Old Pulitzer, filed with the
IRS amended federal corporate income tax returns for the years ended December
1997 and 1998 and March 1999 in which refunds of tax in the aggregate amount of
approximately $8.1 million, plus interest, were claimed. These refund claims
were based on the Companys contention that Old Pulitzer was entitled to deduct
certain fees and expenses which it had not previously deducted and which Old
Pulitzer had incurred in connection with its investigation of several strategic
alternatives and potential transactions prior to its decision to proceed with
the Broadcast Transaction. Under the Merger Agreement, the Company is entitled
to any amounts recovered from the IRS as a result of these refund claims,
although there can be no assurance that the IRS will approve all or any portion
of these refund claims. Discussions between the Companys representatives and
the IRS regarding these refund claims are ongoing, and no
receivable has been recognized in connection with these refund claims. Any
income tax refunds would be recorded as an adjustment to additional
paid-in-capital, and any related interest received would be reflected as a
component of net income in the period recognized. PD LLC Operating Agreement On May 1, 2000, Pulitzer Inc. and The Herald Company, Inc. (Herald)
completed the transfer of their respective interests in the assets and
operations of the Post-Dispatchand certain related businesses to a new joint
venture (the Venture), known as PD LLC. Pulitzer Inc. is the managing member
of PD LLC. Under the terms of the operating agreement governing PD LLC (the
Operating Agreement), Pulitzer Inc. and another subsidiary hold a 95 percent
interest in the results of operations of PD LLC and Herald holds a 5 percent
interest. Heralds 5 percent interest is reported as Minority Interest in Net
Earnings of Subsidiary in the consolidated statements of income. Also, under
the terms of the Operating Agreement, Herald received on May 1, 2000 a cash
distribution of $306.0 million from PD LLC (the Initial Distribution). This
distribution was financed by a $306.0 million borrowing by PD LLC (the Loan).
Pulitzer Inc.s entry into the Venture was treated as a purchase for
accounting purposes. During the first ten years of its term, PD LLC is restricted from making
distributions (except under specified circumstances), capital expenditures and
member loan repayments unless it has set aside out of its cash flow a reserve
equal to the product of $15.0 million and the number of years since May 1,
2000, but not in excess of $150.0 million (the Reserve). PD LLC is not
required to maintain the Reserve after May 1, 2010. On May 1, 2010, Herald will
have a one-time right to require PD LLC to redeem Heralds interest in PD LLC,
together with Heralds interest, if any, in another limited liability company
in which Pulitzer Inc. is the managing member and which is engaged in the
business of delivering publications and products in the greater St. Louis
metropolitan area (DS LLC). The May 1, 2010 redemption price for Heralds
interest will be determined pursuant to a formula yielding an amount which will
result in the present value to May 1, 2000 of the after-tax cash flows to
Herald (based on certain assumptions) from PD LLC, including the Initial
Distribution and the special distribution described below, if any, and from DS
LLC, being equal to $275.0 million. In the event that PD LLC has an increase in
the tax basis of its assets as a result of Heralds recognizing taxable income
from certain transactions effected under the agreement governing the
contributions of Pulitzer Inc. and one of its subsidiaries and Herald to PD LLC
or the Operating Agreement or from the transactions effected in connection with
the organization of DS LLC, Herald generally will be entitled to receive a
special distribution from PD LLC in an amount that corresponds, approximately,
to the present value of the after-tax benefit to the members of PD LLC of the
tax basis increase. Upon the termination of PD LLC and DS LLC, which will be
on May 1, 2015 (unless Herald exercises the redemption right described above),
Herald will be entitled to the liquidation value of its interests in PD LLC and
DS LLC, to be paid in cash by Pulitzer Inc. That amount will be equal to the
amount of Heralds capital accounts, after allocating the gain or loss that
would result from a cash sale of PD LLC and DS LLCs assets for their fair
market value at that time. Heralds share of such gain or loss generally will
be 5 percent, but will be reduced (but not below 1 percent) to the extent that
the present value to May 1, 2000 of the after-tax cash flows to Herald from PD
LLC and from DS LLC, including the Initial Distribution, the special
distribution described above, if any, and the liquidation amount (based on
certain assumptions), exceeds $325.0 million. The actual amount payable to Herald either on May 1, 2010 or upon the
termination of PD LLC and DS LLC on May 1, 2015 will depend on such variables
as future cash flows, the amounts of any distributions to Herald prior to such
payment, PD LLC and DS LLCs rate of growth and market valuations of newspaper
properties. While the amount of such payment cannot be predicted with
certainty, Pulitzer Inc. currently estimates (assuming a 5 percent annual
growth rate in Heralds capital accounts, no special distribution as described
above and consistent newspaper property valuation multiples) that the amount of
such payment would not exceed $100 million. Pulitzer Inc. further believes
that it will be able to finance such payment either from available cash
reserves or with the proceeds of a debt issuance. -21-




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Legal Contingencies In the lawsuit filed in the Missouri Circuit Court, Twenty-Second Judicial
Circuit (City of St. Louis, Missouri), described in the Companys Annual
Report on Form 10-K for the year ended December 28, 2003, by a group of 33
independent carriers (the Plaintiffs) engaged in the business of delivering
the Post-Dispatchpursuant to home delivery contracts involving 44 carrier
routes, the Court has set a trial date of May 17, 2004, having denied the
dispositive motions of Pulitzer Inc., PD LLC and Suburban Journals LLC (the
Defendants) on the substance of Plaintiffs three claims. The Defendants
continue to deny any liability, are vigorously defending the suit and believe
that they have meritorious defenses and, therefore, the Company has not accrued
a liability in connection with this lawsuit. While the ultimate outcome of
litigation cannot be predicted with certainty, management, based on its
understanding of the facts, does not believe the ultimate resolution of this
litigation will have a materially adverse effect on the Companys consolidated
financial position. However, depending upon the period of resolution, such
effect could be material to the consolidated financial results of an individual
period. The Company has been involved, from time to time, in various claims and
lawsuits incidental to the ordinary course of its business, including such
matters as libel, slander and defamation actions, complaints alleging
discrimination, and product distribution practices. While the ultimate outcome
of litigation cannot be predicted with certainty, management, based on its
understanding of the facts, does not believe the ultimate resolution of these
matters will have a material adverse effect on the Companys consolidated
financial position or results of operations. However, depending upon the period
of resolution, such effects could be material to the consolidated financial
results of an individual period. New Accounting Pronouncements In December 2003, the Medicare Prescription Drug, Improvement and
Modernization Act of 2003 (the Act) was signed into law. The Act introduced
a prescription drug benefit under Medicare (Medicare Part D) and a federal
subsidy to sponsors of retiree health care benefit plans that provide a benefit
that is at least actuarially equivalent (as that term is defined in the Act) to
Medicare Part D. At present, detailed regulations necessary to implement the
Act have not been issued. Additionally, certain accounting issues raised by
the Act are not explicitly addressed in existing accounting literature, such as
FASB Statement No. 106, Employers Accounting for Postretirement Benefits Other
than Pensions. FASB Staff Position 106-1, Accounting and Disclosure
Requirements Related to the Medicare Prescription Drug, Improvement and
Modernization Act of 2003(FSP 106-1), which is effective for interim or
annual financial statements for fiscal years which ended after December 7,
2003, permits a sponsor of a postretirement health care plan that provides a
prescription drug benefit to make a one-time election to defer accounting for
the effects of the Act. The Company decided to recognize the effects of the Act on the Companys
accumulated postretirement benefit obligation (APBO) and postretirement
benefit costs initially in the first quarter of 2004. The Company has
concluded that it qualifies for the subsidy under the Act since the
prescription drug benefits provided under the Companys postretirement
healthcare plans generally require lower premiums from covered retirees and
have lower deductibles than the benefits provided in Medicare Part D and,
therefore, are actuarially equivalent to or better than the benefits provided
under the Act. In addition, the Company does not anticipate any material
change in the participation rate or per capita claims costs as a result of the
Act. The Company estimates that the provisions of the Act will lower the APBO
by approximately $12 million which will be treated as a negative prior service
cost that will be amortized beginning on March 8, 2004. This amortization will
result in a $1.3 million reduction to the APBO and postretirement benefit costs
in 2004, against which no income tax provision will be made in accordance with
the Act. Specific authoritative guidance on the accounting for the federal
subsidy is pending, and that guidance, when issued, could require the Company
to change previously reported information. -22-




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Item 3.
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Newsprint The primary raw material used in the Companys operations is newsprint,
representing 11.8 percent to 15.9 percent of operating expenses over the last
five years. Based on the Companys current level of newspaper operations,
expected annual newsprint consumption for 2004 is estimated to be in the range
of 103,000 metric tonnes. Historically, newsprint has been subject to
significant price fluctuations from year to year, unrelated in many cases to
general economic conditions. In the last five years, the Companys average
annual cost per metric tonne of newsprint has varied from its lowest price by
approximately 27.8 percent. For every one dollar change in the Companys
average annual cost per metric tonne of newsprint, 2004 pre-tax income would
change by approximately $103,000, assuming annual newsprint consumption of
103,000 metric tonnes. The Company attempts to obtain the best price available
by combining newsprint purchases for its different newspaper locations with
those of other newspaper companies. The Company considers its relationship with
newsprint producers to be good. The Company has not entered into derivative
contracts for newsprint. Loan/Swaps At March 28, 2004, the Company had $306.0 million of outstanding debt
pursuant to the Loan. The Loan bears interest at a fixed annual rate of 8.05
percent. The Company is a party to two interest rate swap contracts that convert a
portion of the Companys fixed rate debt to a variable rate. The interest rate
swaps have a combined $150.0 million notional amount and mature on April 28,
2009. Under the terms of the agreements, the Company pays interest at a
variable rate based upon LIBOR plus a combined adjustment average of 3.3392
percent and receives interest at a fixed rate of 8.05 percent. The floating
interest rates re-price semiannually. The Company accounts for the swaps as
fair value hedges and employs the short cut method. These transactions result
in approximately 49 percent of the Companys long-term interest cost being
subject to variable interest rates. Changes in market interest rates may cause the Company to incur higher or
lower net interest expense. For example, for every 1.0 percent change in the
variable interest rates associated with the Companys interest rate swaps, the
Companys annual interest expense would change by approximately $1.5 million. -23-




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Item 4. CONTROLS AND PROCEDURES As of the end of the period covered by this report, the Companys
management, including the President and Chief Executive Officer and Senior Vice
President-Finance and Chief Financial Officer, carried out an evaluation of the
effectiveness of the design and operation of the Companys disclosure controls
and procedures. Based upon that evaluation, the Companys President and Chief
Executive Officer and Senior Vice President-Finance and Chief Financial Officer
concluded that the Companys disclosure controls and procedures are effective
in alerting them to material information, on a timely basis, required to be
included in the Companys periodic SEC filings. During the period covered by
this report, there have been no significant changes in the Companys internal
control over financial reporting that have materially affected, or a reasonably
likely to materially affect, the Companys internal control over financial
reporting. -24-




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Part II. OTHER INFORMATION 
 Item 1. LEGAL PROCEEDINGS Please see Note 6 Commitments and Contingencies to the condensed
consolidated financial statements included in Part I, Item 1 of this Form 10-Q. 
 Item 2. CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES None reportable. 
 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS  (a)
    
    The Annual Meeting of Stockholders was held on April 27,
2004.(b)
    
    The following directors continued their term of office after
the Annual Meeting of Stockholders: Michael E. Pulitzer
Emily Rauh Pulitzer
William Bush
James M. Snowden, Jr.
Ronald H. Ridgway
Robert C. Woodworth
Susan T. Congalton
Ken J. Elkins
Alice B. Hayes
Richard W. Moore  (c)
    
    The following nominees for election as directors received the
votes indicated: For
    
    Withheld
    
    AbstainSusan T. Congalton (Class C)
    
    
    126,078,117
    
    
    
    137,156
    
    
    
    0Ken J. Elkins (Class C)
    
    
    123,457,577
    
    
    
    2,757,696
    
    
    
    0Alice B. Hayes (Class C)
    
    
    126,070,322
    
    
    
    144,951
    
    
    
    0Richard W. Moore (Class C)
    
    
    123,622,316
    
    
    
    2,592,957
    
    
    
    0
 The proposal of a stockholder, The St. Louis Newspaper Guild, Local
36047 of the Communications Workers of America, requesting that the
Board of Directors adopt a policy that it will voluntarily comply
with certain new listing standards of the New York Stock Exchange
which would require that the Board have a majority of independent
directors, and have certain board committees composed entirely of
independent directors was rejected by the vote indicated: For:
    
    
    3,665,597Against:
    
    
    121,494,365Broker non-votes:
    
    
    1,033,912Abstain:
    
    
    21,399
 Ratification of the appointment of Deloitte & Touche LLP as the
Companys independent auditors for the fiscal year 2004 was
approved by the vote indicated: For :
    
    
    126,124,664Against:
    
    
    71,504Broker non-votes:
    
    
    0Abstain:
    
    
    19,105
 -25-




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Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a)
    
    The following exhibits are filed as part of this report:31.1
    
    Certification by Robert C. Woodworth, President and Chief
Executive Officer of Pulitzer Inc., pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002, in connection with Pulitzer Inc.s
Quarterly Report on Form 10-Q for the quarter ended March 28, 2004.31.2
    
    Certification by Alan G. Silverglat, Senior Vice
President-Finance and Chief Financial Officer of Pulitzer Inc.,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, in
connection with Pulitzer Inc.s Quarterly Report on Form 10-Q for
the quarter ended March 28, 2004.32.1
    
    Certification by Robert C. Woodworth, President and Chief
Executive Officer of Pulitzer
Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, in connection with
Pulitzer Inc.s Quarterly Report on Form 10-Q for the quarter ended
March 28, 2004.32.2
    
    Certification by Alan G. Silverglat, Senior Vice
President-Finance and Chief Financial Officer of Pulitzer Inc.,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002, in connection with Pulitzer
Inc.s Quarterly Report on Form 10-Q for the quarter ended March 28,
2004.(b)
    
    Reports on Form 8-K.The Company filed a Current Report on Form 8-K on January 20, 2004
furnishing its i) press release which announced its consolidated
financial results for the fourth quarter and full year ended
December 28, 2003, and contained information regarding the
Companys full year 2004 base earnings guidance (as defined
therein), and ii) statistical report for the four week and 52 week
periods ended December 28, 2003.The Company filed a Current Report on Form 8-K on February 19, 2004
furnishing its press release which contained the Companys
statistical report for the first period ended February 1, 2004, and
which also contained information regarding the Companys full year
2004 base earnings guidance (as defined therein).The Company filed a Current Report on Form 8-K on April 16, 2004
furnishing its i) press release which announced its consolidated
financial results for the first quarter ended March 28, 2004, and
contained information regarding the Companys full year 2004 base
earnings guidance (as defined therein), and ii) statistical report
for the four week and 13 week periods ended March 28, 2004.
 All other items of this report are not applicable for the current quarter. 
 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 thereunto duly authorized. PULITZER INC.
(Registrant)Date: May 7, 2004
    /s/ Alan G. Silverglat(Alan G. Silverglat)Senior Vice President-Finance and
Chief Financial Officer
(on behalf of the Registrant and
as principal financial officer) -26-




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EXHIBIT INDEX 31.1
    
    Certification by Robert C. Woodworth, President and Chief
Executive Officer of Pulitzer
Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, in
connection with Pulitzer Inc.s Quarterly Report on Form 10-Q for
the quarter ended March 28, 2004.31.2
    
    Certification by Alan G. Silverglat, Senior Vice
President-Finance and Chief Financial Officer of
Pulitzer Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of
2002, in connection with
Pulitzer Inc.s Quarterly Report on Form 10-Q for the quarter ended
March 28, 2004.32.1
    
    Certification by Robert C. Woodworth, President and Chief
Executive Officer of Pulitzer
Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, in connection with
Pulitzer Inc.s Quarterly Report on Form 10-Q for the quarter ended
March 28, 2004.32.2
    
    Certification by Alan G. Silverglat, Senior Vice
President-Finance and Chief Financial Officer of
Pulitzer Inc., pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in
connection with Pulitzer Inc.s Quarterly Report on Form 10-Q for
the quarter ended March 28, 2004.
 -27-