<PAGE>   1
--------------------------------------------------------------------------------

                                  United States

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q

 (Mark One)
     x            QUARTERLY REPORT PURSUANT TO SECTION 13 OR
 ---------        15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For
                  the quarterly period ended September 26, 1999

                  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: 1-10333


                            CENTRAL NEWSPAPERS, INC.
             (Exact name of registrant as specified in its charter)

             INDIANA                                            35-0220660
  (State or other jurisdiction                               (I.R.S. Employer
of incorporation or organization)                         Identification Number)

                 200 E. VAN BUREN STREET, PHOENIX, ARIZONA 85004
                     (Address of principal executive office)

                                 (602) 444-8000
                         (Registrant's telephone number)


Indicate by check mark whether the registrant has (1) 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 _____

The number of shares of each class of common stock outstanding as of October 31,
1999:

         CLASS A COMMON STOCK                               33,324,781
         CLASS B COMMON STOCK                               55,356,010

--------------------------------------------------------------------------------
<PAGE>   2
                      [This Page Intentionally Left Blank]
<PAGE>   3
                            Central Newspapers, Inc.

                               Index to Form 10-Q

<TABLE>
<CAPTION>
<S>                                                                             <C>
       Part I -   FINANCIAL INFORMATION                                          Page

                  Item 1 - Financial Statements:

                           Consolidated Statement of Financial Position          4 - 5

                           Consolidated Statement of Income                        6

                           Consolidated Statement of Shareholders' Equity          7

                           Consolidated Statement of Cash Flows                    8

                           Notes to Consolidated Financial Statements              9

                  Item 2 - Management's Discussion and Analysis of
                           Financial Condition and Results of Operations        9 - 14

       Part II -  OTHER INFORMATION                                             15 - 16
</TABLE>


                                       3
<PAGE>   4
                                     PART I.

Item 1. Financial Statements

                            CENTRAL NEWSPAPERS, INC.
                  Consolidated Statement of Financial Position


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                                      September 26,        December 27,
ASSETS                                                                                   1999                  1998
(In thousands)                                                                        (Unaudited)
----------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>                  <C>
CURRENT ASSETS:
                Cash and cash equivalents                                                 $43,597              $24,774
                Marketable securities                                                       3,257               12,636
                Accounts receivable (net of allowances of $3,212 and $2,602)               89,837               90,858
                Inventories                                                                10,113               11,841
                Deferred income tax benefits                                                8,680                8,430
                Other current assets                                                        9,146               11,253
----------------------------------------------------------------------------------------------------------------------
                               Total current assets                                       164,630              159,792
----------------------------------------------------------------------------------------------------------------------


PROPERTY, PLANT AND EQUIPMENT:
                Land                                                                       18,898               18,985
                Buildings and improvements                                                136,274              135,725
                Leasehold improvements                                                      1,356                  687
                Machinery and equipment                                                   424,285              407,211
                Construction in progress                                                    7,508                8,237
----------------------------------------------------------------------------------------------------------------------

                                                                                          588,321              570,845
                               Less accumulated depreciation                              318,479              287,136
----------------------------------------------------------------------------------------------------------------------

                                                                                          269,842              283,709
----------------------------------------------------------------------------------------------------------------------

OTHER ASSETS:
                Land held for development                                                   5,229                5,229
                Goodwill and other intangibles                                            139,226              127,349
                Investment in Affiliate                                                     9,384                9,848
                Other                                                                      45,892               43,432
----------------------------------------------------------------------------------------------------------------------

                                                                                          199,731              185,858
----------------------------------------------------------------------------------------------------------------------

TOTAL ASSETS                                                                             $634,203             $629,359
======================================================================================================================
</TABLE>

See accompanying notes to consolidated financial statements.


                                       4
<PAGE>   5
                            CENTRAL NEWSPAPERS, INC.
                  Consolidated Statement of Financial Position

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                                      September 26,       December 27,
LIABILITIES AND SHAREHOLDERS' EQUITY                                                     1999                 1998
(In thousands, except share data)                                                      (Unaudited)
----------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>                 <C>
CURRENT LIABILITIES:
                Accounts payable                                                          $26,513              $23,088
                Short-term bank debt                                                       90,000               52,072
                Accrued compensation                                                       26,176               19,305
                Dividends payable                                                           5,048                5,217
                Accrued expenses and other liabilities                                     19,961               18,208
                Deferred revenue                                                           29,156               28,789
----------------------------------------------------------------------------------------------------------------------

                               Total current liabilities                                  196,854              146,679
----------------------------------------------------------------------------------------------------------------------

DEFERRED INCOME TAXES                                                                      27,573               26,703
----------------------------------------------------------------------------------------------------------------------

LONG-TERM DEBT                                                                            185,011              200,025
----------------------------------------------------------------------------------------------------------------------

POSTRETIREMENT AND OTHER NONCURRENT LIABILITIES                                            94,177               91,001
----------------------------------------------------------------------------------------------------------------------

MINORITY INTEREST IN SUBSIDIARIES                                                                                2,868
----------------------------------------------------------------------------------------------------------------------

REDEEMABLE PREFERRED STOCK ISSUED BY SUBSIDIARY                                            18,920               18,920
----------------------------------------------------------------------------------------------------------------------

SHAREHOLDERS' EQUITY:
                Preferred stock--issuable in series:
                  Authorized--25,000,000 shares
                  Issued--none Class A common stock--without par value:
                  Authorized--150,000,000 shares
                  Issued and outstanding--33,309,114 and 34,446,180 shares                 37,565               30,937
                Class B common stock--without par value:
                  Authorized--130,000,000 shares
                  Issued and outstanding--55,366,010 and 62,691,000 shares                     55                   63
                Retained earnings                                                          75,664              112,104
                Unamortized value of restricted stock                                      (3,226)              (1,407)
                Accumulated other comprehensive income                                      1,610                1,466
----------------------------------------------------------------------------------------------------------------------

                                                                                          111,668              143,163
----------------------------------------------------------------------------------------------------------------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                               $634,203             $629,359
======================================================================================================================
</TABLE>

See accompanying notes to consolidated financial statements.


                                        5
<PAGE>   6
              CENTRAL NEWSPAPERS, INC.
          Consolidated Statement of Income
  (Unaudited)




<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
(In thousands, except per share data)                         Thirteen Weeks Ended                  39 Weeks Ended
                                                         September 26,      September 27,     September 26,  September 27,
                                                              1999               1998             1999           1998
------------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>                <C>               <C>            <C>
OPERATING REVENUES:
                Advertising                                 $144,630           $135,390           $437,948      $411,885
                Circulation                                   36,988             36,537            115,418       112,376
                Other                                         13,497              9,399             36,912        30,787
------------------------------------------------------------------------------------------------------------------------

                                                             195,115            181,326            590,278       555,048
------------------------------------------------------------------------------------------------------------------------

OPERATING EXPENSES:
                Compensation                                  64,682             60,580            193,330       181,787
                Newsprint and ink                             21,669             25,341             77,063        84,100
                Other operating costs                         53,135             47,140            158,222       145,622
                Depreciation and amortization                 13,049             11,839             38,401        34,613
                Work force reduction cost                      3,400                                 3,692            77
------------------------------------------------------------------------------------------------------------------------

                                                             155,935            144,900            470,708       446,199
------------------------------------------------------------------------------------------------------------------------

OPERATING INCOME                                              39,180             36,426            119,570       108,849

OTHER INCOME                                                   1,863                843              5,467         3,581

OTHER EXPENSES                                                (4,352)              (322)           (11,516)         (773)
------------------------------------------------------------------------------------------------------------------------

INCOME BEFORE INCOME TAXES                                    36,691             36,947            113,521       111,657

PROVISION FOR INCOME TAXES                                    14,708             15,315             45,345        46,231
------------------------------------------------------------------------------------------------------------------------

INCOME BEFORE MINORITY INTEREST AND
                EQUITY IN AFFILIATE                           21,983             21,632             68,176        65,426

MINORITY INTEREST IN SUBSIDIARIES                               (319)              (502)            (1,248)       (1,937)

EQUITY IN NET EARNINGS (LOSS) OF AFFILIATE                      (226)               327               (301)          803
------------------------------------------------------------------------------------------------------------------------

NET INCOME                                                   $21,438            $21,457            $66,627       $64,292
========================================================================================================================

NET INCOME PER COMMON SHARE:
                Basic                                          $0.54              $0.43              $1.64         $1.28
                Diluted                                         0.52               0.42               1.59          1.25

DIVIDENDS DECLARED PER CLASS A COMMON SHARE                    $0.13              $0.12              $0.37         $0.33

AVERAGE COMMON SHARES OUTSTANDING:
(combined Class A and equivalent Class B shares)
                Basic                                         39,871             49,490             40,508        50,122
                Diluted                                       41,425             50,768             41,924        51,542
</TABLE>

See accompanying notes to consolidated financial statements.

                                        6
<PAGE>   7
                            CENTRAL NEWSPAPERS, INC.
                 Consolidated Statement of Shareholders' Equity
                                  (Unaudited)



<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
(In thousands, except share data)
                                                            Class A                           Class B
                                                          Common Stock                      Common Stock
                                                      Shares         Amount             Shares        Amount
------------------------------------------------------------------------------------------------------------
<S>                                               <C>               <C>             <C>                <C>
BALANCE AT DECEMBER 28, 1997                      44,035,252        $29,934         62,691,000           $63

      Net income (39 weeks)
      Change in net unrealized
      gain on
        available-for-sale securities

      Comprehensive Income

      Dividends
      declared:
        Class A common stock
        Class B common stock
      Exercise of stock options                      377,824          7,742
      Repurchase of Class A common stock          (1,795,460)        (1,477)
      Issuance of restricted stock                    10,500            344
      Amortization of restricted stock

------------------------------------------------------------------------------------------------------------

BALANCE AT SEPTEMBER 27, 1998                     42,628,116        $36,543         62,691,000           $63

      Net income (13 weeks)
      Change in net unrealized
      gain on
        available-for-sale securities

      Comprehensive Income

      Dividends
      declared:
        Class A common stock
        Class B common stock
      Exercise of stock options                       53,264          1,171
      Repurchase of Class A common stock          (8,244,200)        (7,075)
      Issuance of restricted stock                     9,000            298
      Amortization of restricted stock

------------------------------------------------------------------------------------------------------------

BALANCE AT DECEMBER 27, 1998                      34,446,180        $30,937         62,691,000           $63

      Net income (39 weeks)
      Change in net unrealized gain on
        available-for-sale securities

      Comprehensive Income

      Dividends
      declared:
        Class A common stock
        Class B common stock
      Exercise of stock options                      245,435          5,558
      Repurchase of Class A common stock          (2,200,000)        (1,994)
      Common stock conversion                        732,499              8         (7,324,990)           (8)
      Issuance of restricted
      stock,
      net of cancellations                            85,000          3,056
      Amortization of restricted stock

------------------------------------------------------------------------------------------------------------

BALANCE AT SEPTEMBER 26, 1999                     33,309,114        $37,565         55,366,010           $55
============================================================================================================
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                  Unamortized       Accumulated
                                                                    Value of           Other
                                                  Retained        Restricted       Comprehensive
                                                  Earnings           Stock            Income            Total
---------------------------------------------------------------------------------------------------------------
<S>                                               <C>             <C>              <C>                 <C>
BALANCE AT DECEMBER 28, 1997                      $352,531          ($1,924)            $1,675         $382,279

      Net income (39 weeks)                         64,292                                               64,292
      Change in net unrealized
      gain on
        available-for-sale securities                                                     (345)            (345)
                                                                                                      ---------
      Comprehensive Income                                                                               63,947
                                                                                                      =========
      Dividends
      declared:
        Class A common stock                       (14,409)                                             (14,409)
        Class B common stock                        (2,069)                                              (2,069)
      Exercise of stock options                                                                           7,742
      Repurchase of Class A common stock           (56,638)                                             (58,115)
      Issuance of restricted stock                                     (344)
      Amortization of restricted stock                                  849                                 849

---------------------------------------------------------------------------------------------------------------

BALANCE AT SEPTEMBER 27, 1998                     $343,707          ($1,419)            $1,330         $380,224

      Net income (13 weeks)                         24,250                                               24,250
      Change in net unrealized
      gain on
        available-for-sale securities                                                      136              136
                                                                                                      ---------
      Comprehensive Income                                                                               24,386
                                                                                                      =========
      Dividends
      declared:
        Class A common stock                        (4,134)                                              (4,134)
        Class B common stock                          (752)                                                (752)
      Exercise of stock options                                                                           1,171
      Repurchase of Class A common stock          (250,967)                                            (258,042)
      Issuance of restricted stock                                     (298)
      Amortization of restricted stock                                  310                                 310

---------------------------------------------------------------------------------------------------------------

BALANCE AT DECEMBER 27, 1998                      $112,104          ($1,407)            $1,466         $143,163

      Net income (39 weeks)                         66,627                                               66,627
      Change in net unrealized gain on
        available-for-sale securities                                                      144              144
                                                                                                      ---------
      Comprehensive Income                                                                               66,771
                                                                                                      =========
      Dividends
      declared:
        Class A common stock                       (12,725)                                             (12,725)
        Class B common stock                        (2,136)                                              (2,136)
      Exercise of stock options                                                                           5,558
      Repurchase of Class A common stock           (88,206)                                             (90,200)
      Common stock conversion
      Issuance of restricted
      stock,
      net of cancellations                                           (3,056)
      Amortization of restricted stock                                1,237                               1,237

---------------------------------------------------------------------------------------------------------------

BALANCE AT SEPTEMBER 26, 1999                      $75,664          ($3,226)            $1,610         $111,668
===============================================================================================================
</TABLE>

See accompanying notes to consolidated financial statements.

                                        7
<PAGE>   8
                            CENTRAL NEWSPAPERS, INC.
                      Consolidated Statement of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
(In thousands)
                                                                                    39 Weeks Ended
                                                                           September 26,         September 27,
                                                                               1999                   1998
-------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>                    <C>
OPERATING ACTIVITIES:
               Net income                                                      $66,627                $64,292
               Items which did not use (provide) cash:
                 Depreciation and
               amortization                                                     38,401                 34,613
                 Postretirement and pension benefits                             5,200                  2,645
                 Loss (gain) on disposition of assets                           (1,742)                   131
                 Minority interest in earnings of
               subsidiaries                                                      1,248                  1,937
                 Equity loss (earnings) in Affiliate                               301                   (803)
                 Deferred income taxes                                          (1,020)                  (637)
                 Amortization of restricted stock awards                         1,237                    849
                 Other                                                            (900)                  (568)
                 Net proceeds from (purchases of) trading securities            12,510                 (1,578)
                 Net change in other current assets and liabilities             20,719                 12,508
-------------------------------------------------------------------------------------------------------------

                             Net cash provided by operating activities         142,581                113,389
-------------------------------------------------------------------------------------------------------------

INVESTING ACTIVITIES:
               Purchases of property, plant and equipment                      (22,280)               (30,916)
               Net proceeds from (purchases of) available-for sale
               securities                                                        1,942                 (3,143)
               Acquisitions                                                    (17,681)                (5,839)
               Other                                                            (5,008)                (1,244)
-------------------------------------------------------------------------------------------------------------

                             Net cash used by investing activities             (43,027)               (41,142)
-------------------------------------------------------------------------------------------------------------

FINANCING ACTIVITIES:
               Cash dividends paid                                             (14,699)               (16,478)
               Dividends paid to minority interest                              (2,391)                (1,324)
               Proceeds from exercise of stock options                           3,563                  4,200
               (Repayments) borrowings of short-term debt                       38,009                 (5,405)
               Repayments of long-term debt                                    (15,013)
               Repurchase of common stock                                      (90,200)               (58,115)

                             Net cash used by financing activities             (80,731)               (77,122)
-------------------------------------------------------------------------------------------------------------

INCREASE IN CASH AND CASH EQUIVALENTS                                           18,823                 (4,875)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  24,774                 36,924
-------------------------------------------------------------------------------------------------------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                       $43,597                $32,049
=============================================================================================================

SUPPLEMENTAL CASH FLOW INFORMATION:
               Income taxes paid                                               $43,600                $49,880
               Interest paid                                                    11,233                    277
</TABLE>

See accompanying notes to consolidated financial statements.


                                        8
<PAGE>   9
                            CENTRAL NEWSPAPERS, INC.
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

1. Central Newspapers, Inc. and its subsidiaries (the "Company") are primarily
engaged in the publishing and distribution of newspapers. Revenues are
principally derived from advertising and newspaper sales in the Phoenix, Arizona
and Indianapolis, Indiana metropolitan areas. The Company also owns Career
Services, Inc., which is predominantly in the job fair business and a 13.5%
interest in Ponderay Newsprint Company ("Affiliate"), a partnership formed to
own a newsprint mill in the State of Washington.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and revenues and expenses
as of and for the period ending with the financial reporting date. Actual
results could differ from those estimates.

2. The accompanying unaudited consolidated financial statements do not include
all of the information and disclosures that are normally included in Form 10-K
and the annual report to shareholders. These financial statements should be read
in conjunction with the Company's audited consolidated financial statements and
related notes for the year ended December 27, 1998. The accompanying
consolidated financial statements have been prepared in accordance with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated
statement of financial position at December 27, 1998, has been derived from
audited financial statements. In the opinion of the Company's management, the
unaudited consolidated financial statements reflect all adjustments which are
necessary to present fairly, the Company's financial position, results of
operations and cash flows for the interim periods presented. All adjustments are
of a normal recurring nature. Such statements are not necessarily indicative of
the results to be expected for the full year.

3. Basic EPS is computed based upon the weighted average number of common shares
outstanding in each year. The Class B common stock is included in the
computation as if converted to Class A common stock at a ratio of 10 shares of
Class B common stock to one share of Class A common stock. Diluted EPS includes
the effect of stock options granted under the Company's Amended and Restated
Stock Compensation Plan. On December 8, 1998, the Board of Directors declared a
two-for-one split of the Class A and Class B common stock which was distributed
on January 8, 1999 to shareholders of record as of the close of business on
December 18, 1998. All shares and per share amounts presented herein, have been
retroactively restated to reflect the impact of the split.

4. On October 31, 1999, we completed the sale of our 80% interest in Homebuyer's
Fair, Inc., its subsidiary National School Reporting Services, Inc. and FAS
Hotline to Homestore.com, Inc. The net proceeds from the sale were $51.9
million, consisting of $49.5 million in cash and receivables and 50,000 shares
of Homestore.com, Inc. stock, valued at $2.4 million at closing. The pretax and
after-tax gains on the sale were $32.7 million and $19.6 million, respectively.


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

FORWARD-LOOKING STATEMENTS

The information in this report contains material that is forward-looking in
nature. From time to time, we may provide forward-looking statements relating to
such matters as anticipated financial performance, business prospects, and
similar matters. We may identify these forward-looking statements by the use of
the words such as "anticipate," "believe," "expect," "plan," "foresee," or
derivations thereof. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for these statements. We want to ensure that these
statements are accompanied by meaningful cautionary language to comply with the
safe harbor under the Act. We assume no obligation to update any forward-looking
statements. A variety of factors could cause our actual results to differ
materially from the expectations expressed in the forward-looking statements,
including, but not limited to, the following:

         -     declines in circulation due to changing reader preferences and/or
               new forms of information dissemination;

         -     economic weakness in geographic markets;

                                       9
<PAGE>   10
         -     weakness in advertising categories due to a variety of factors
               including retail consolidations, declines in the advertising
               budgets of major customers, increased competition from print and
               non-print products, including the internet, and new competitors
               emerging in our markets;

         -     the negative impact of issues related to labor agreements;

         -     unexpected fluctuations in the price of newsprint;

         -     an increase in distribution and/or production costs over
               anticipated levels; and

         -     an increase in actual interest rates over expected rates.


GENERAL

Our principal line of business is newspaper publishing. We derive revenues
primarily from advertising and newspaper sales in the Phoenix, Arizona and
Indianapolis, Indiana metropolitan areas. We also own:

         -     a 100% interest in Career Services, Inc., which is predominantly
               in the job fair business;

         -     a 13.5% interest in Ponderay newsprint company, a partnership
               that owns a newsprint mill in the State of Washington;

         -     a 100% interest in Carantin & Co. Inc., which provides direct
               marketing support services to its clients.

The analysis of the third quarter and the nine month period ended September 26,
1999 compared with comparable 1998 periods should be read in conjunction with
the fiscal 1998 consolidated financial statements and the accompanying notes to
the consolidated financial statements.

Our business tends to be seasonal, with peak revenues and profits generally
occurring in the second and fourth quarters of each year.


RECENT EVENTS

On October 31, 1999, we completed the sale of our 80% interest in Homebuyer's
Fair, Inc., its subsidiary National School Reporting Services, Inc. and FAS
Hotline to Homestore.com, Inc. The net proceeds from the sale were $51.9
million, consisting of $49.5 million in cash and receivables and 50,000 shares
of Homestore.com, Inc. stock, valued at $2.4 million at closing. The pretax and
after-tax gains on the sale were $32.7 million and $19.6 million, respectively.

On October 1, 1999, we ceased publication of our afternoon newspaper, The
Indianapolis News, and realigned the news gathering structure of our morning
newspaper, The Indianapolis Star. On September 14, 1999, we announced plans to
outsource the transportation function for The Indianapolis Star. These changes
resulted in recording a one-time pretax charge to earnings of $3.4 million in
the third quarter of 1999 and are expected to result in annual pretax savings of
approximately $4.0 million. A substantial portion of the savings will be derived
from elimination of approximately 83 positions as a result of these actions.

On September 14, 1999, the Board of Directors approved relocation of our
Indianapolis presses from the Star/News headquarters to a new facility adjacent
to our Pulliam Production Center. This plan will be executed over a three to
four year period beginning in fiscal 2000, at a total cost of approximately
$70.8 million. The relocation is expected to afford The Indianapolis Star the
ability to more than double its color advertising capacity. It will also provide
increased flexibility in creating additional zoned editions of The Indianapolis
Star. The plan will result in the elimination of approximately 80 production and
transportation positions. Within five years, we expect this project to generate
estimated annual cash savings of approximately $6.1 million.

On August 12, 1999, the Board of Directors approved repurchase and retirement of
2,200,000 shares of Class A Common Stock from the Eugene S. Pulliam Revocable
Trust for a total consideration of approximately $90.2 million. This repurchase
was financed through additional borrowings of $90.0 million from the $300
million revolving credit facility established in 1998.

On April 30,1999, we purchased the remaining 20% of Career Services, Inc. that
we did not previously own for approximately $13.7 million from the minority
shareholders. This transaction is not expected to have a material impact on
future earnings.

                                       10
<PAGE>   11
In April 1999, we completed a registered secondary offering of 2,673,699 shares
of Class A common stock priced at $30.50 per share. The shares were sold by the
Nina Mason Pulliam Charitable Trust. To complete the sale, a total of 1,777,560
shares of Class B Common Stock were converted to 177,756 shares of Class A
Common Stock. No new shares were issued in this transaction and we did not
receive any proceeds from the sale.


QUARTERLY RESULTS OF OPERATIONS

Third quarter and year-to-date diluted earnings per share for 1999 were $.52 and
$1.59 for increases of 23.8% and 27.2%, respectively, over the corresponding
1998 periods. Excluding special charges, diluted earnings per share would have
been $.57 for the third quarter of 1999 and $1.64 for the 1999 nine month
period, which represented increases of 35.7% and 31.2%, respectively, versus
comparable 1998 amounts. Operating income for the third quarter and the nine
months of 1999 was $39.2 million and $119.6 million, respectively, which
represented increases of 7.6% and 9.9%, respectively, over comparable 1998
periods. Excluding special charges, operating income increased 16.9% for the
third quarter and 13.2% for the nine month period compared to 1998 periods. The
increase in operating income for the nine months between the periods was
primarily due to a 6.3% increase in advertising revenue and savings achieved
from reduced newsprint prices.

Net income for the third quarter of 1999 was $21.4 million, which was comparable
to the same period of 1998. For the nine month period, net income for 1999 was
$66.6 million, up 3.6% over the prior year. Excluding special charges, net
income increased 9.4% for the third quarter and 7.0% for the nine month period,
compared to 1998 periods. EBITDA (operating income before depreciation,
amortization and special charges) for the comparable periods was $55.6 million
for the third quarter of 1999 and $161.7 million year-to-date, representing
increases of 15.3% and 12.6%, respectively, versus comparable 1998 amounts.


OPERATING REVENUES

Third quarter and the nine month revenues increased to $195.1 million and $590.3
million for increases of 7.6% and 6.4%, respectively, when compared with the
same 1998 periods.

Advertising revenue for the three and nine month periods ended September 26,
1999 was $144.6 million and $437.9 million for increases of 6.8% and 6.3%,
respectively over comparable periods in 1998. The increases in advertising
revenue for the third quarter of 1999 resulted from gains in national and retail
advertising in both major markets and gains in classified advertising in the
Phoenix market.

Circulation revenue for the third quarter and year-to-date periods increased to
$37.0 million and $115.4 million, respectively, for increases of 1.2% and 2.7%
when compared to 1998. The increase is primarily due to the distribution system
conversion to delivery agents in the state of Indiana delivery area (resulting
in a revenue increase of $0.5 million for the third quarter of 1999 and $1.5
million for the nine month period of 1999) and an April 1999 Arizona Republic
home delivered price increase.

Other revenue for the third quarter and year-to-date was $13.5 million and $36.9
million, for increases of 43.6% and 19.9%, respectively, over comparable 1998
periods. The increase for the third quarter of 1999 was due to gains in online,
direct marketing and commercial printing revenue.


                                       11
<PAGE>   12
The following is a summary of major market linage and circulation statistics for
the third quarter and nine month periods:

 (In thousands, except circulation)

<TABLE>
<CAPTION>
                                                 Third Quarter             %                 Year-to-date            %
                                                 1999         1998      Change             1999         1998      Change
                                                 ----         ----      ------             ----         ----      ------
<S>                                           <C>          <C>          <C>             <C>          <C>          <C>
Full Run Linage in six column inches:
  Retail                                        707.7        686.7        3.1%          2,183.9      2,059.0        6.1
  National                                      133.3        113.8       17.1%            400.5        336.8       18.9
  Classified                                    878.2        819.6        7.1%          2,555.8      2,436.4        4.9
                                                -----        -----      ------          -------      -------      -----
Total                                         1,719.2      1,620.1        6.1%          5,140.2      4,832.2        6.4
                                              =======      =======      ======          =======      =======      =====

Full Run Linage by Major Markets:
  Phoenix                                       771.4        728.4        5.9%          2,357.1      2,263.4        4.1
  Indianapolis                                  947.8        891.7        6.3%          2,783.1      2,568.8        8.3
                                                -----        -----        ----          -------      -------        ---
Total                                         1,719.2      1,620.1        6.1%          5,140.2      4,832.2        6.4
                                              =======      =======      ======          =======      =======      =====

Net Advertising Revenue                      $144,630     $135,390        6.8%         $437,948     $411,885        6.3

Combined Average Daily Circulation:
  Phoenix                                     422,735      424,978       (0.5)%         464,497      466,793       (0.5)
  Indianapolis a.m.                           235,776      224,056        5.2%          241,566      233,882        3.3
  Indianapolis p.m.                            30,772       34,967      (12.0)%          31,937       36,339      (12.1)
Sunday Circulation:
  Phoenix                                     545,452      545,360        0.0%          584,784      582,596        0.4
  Indianapolis                                369,475      390,449       (5.4)%         375,416      390,911       (4.0)
</TABLE>

OPERATING EXPENSES

Compensation costs, which include fringe benefits, increased 6.8% to $64.7
million in the third quarter and 6.4% to $193.3 million for the nine month
period. With headcount flat year over year, the increase in expense was
primarily attributable to merit increases, volume related commission increases
and performance based bonuses.

Newsprint and ink expense of $21.7 million decreased 14.5% in the third quarter
of 1999 and 8.4% for the nine month period. The decreases in newsprint expense
were primarily due to lower newsprint prices during both 1999 periods when
compared with 1998 offset by a volume increase of 3.8% for the third quarter and
2.8% for the nine month period over comparable 1998 periods related to increased
advertising linage and added newspaper sections.

Other operating costs increased 12.7% to $53.1 million in the third quarter and
8.7% to $158.2 million for the nine month period. Significant items contributing
to these increases in both 1999 periods versus the same 1998 periods included:

-    costs associated with new database marketing projects and online services;

-    software maintenance costs related to new systems;

-    distribution costs related to the conversion to circulation agents in the
     state distribution area of Indianapolis;

-    contributions to local communities; and

-    professional fees.

Depreciation and amortization expense increased 10.2% to $13.0 million in the
third quarter and 10.9% to $38.4 million year-to-date. The expense increases
were primarily a result of new information technology projects in Phoenix and
Indianapolis.

We recorded work force reduction costs of $3.4 million in the third quarter of
1999 and $3.7 million for the nine months ended September 26, 1999. Of the third
quarter amount, approximately $1.2 million resulted from closure of the
Indianapolis News and approximately $2.2 million related to outsourcing of the
Indianapolis transportation department. Approximately 83 positions were
eliminated as a result of these actions.

                                       12
<PAGE>   13
NON-OPERATING ITEMS AND EQUITY IN AFFILIATE

Other non-operating income (primarily investment income) increased to $1.9
million from $0.8 million in the third quarter of 1999 primarily due to an
increase in investable cash from operations and income from limited partnership
gains. Other non-operating expense increased $4.0 million in the third quarter
and $10.7 million year-to-date from an increase in interest expense related to
higher debt levels associated with the purchase of Class A common stock from the
Eugene S. Pulliam Revocable Trust in the current period and the Nina Mason
Pulliam Charitable Trust in the last quarter of 1998. Income tax expense for the
nine months of 1999 and 1998 was $45.3 million and $46.2 million, respectively,
reflecting effective tax rates of 39.9% and 41.4%, respectively. The rate
decrease was largely a result of operational changes.

Equity in Affiliate recorded losses in the third quarter and the nine month
period due to an decrease in newsprint selling prices by Ponderay Newsprint
Company.


LIQUIDITY AND CAPITAL RESOURCES FOR THE QUARTER ENDED

Net cash provided by operating activities is our primary source of liquidity.
Net cash provided by operating activities, excluding the effects of net proceeds
from (or net purchases of) trading securities for the first nine months of 1999
and 1998, was $130.1 million and $115.0 million, respectively. Changes for both
years were primarily attributable to net income and working capital differences.

The principal uses of cash in the first nine months of 1999 were repurchase of
2.2 million shares of Class A common stock from the Eugene S. Pulliam Revocable
Trust, the purchase of the remaining 20% of Career Services Inc., repayment of
debt, capital expenditures and the payment of dividends. The corresponding 1998
period included the purchase of 2.5 million shares of Class A common stock from
the Nina Mason Pulliam Charitable Trust, capital expenditures, payment of
dividends, and repayment of bank debt. At the end of the nine month period, our
available cash and investments totaled $46.9 million, an increase of $9.4
million from the balance at the end of 1998. The ratio of current assets to
current liabilities was 0.8:1 at September 26, 1999 vs. 1.1:1 at the end of
1998.

Total capital expenditures for the nine months of 1999 were $22.3 million
compared to $30.9 million for the comparable 1998 period. On September 14, 1999,
the Board of Directors approved an Indianapolis press project of approximately
$70.8 million to be executed over a three to four year period beginning in
fiscal 2000. As of September 26, 1999, there were no significant formal
commitments related to future capital expenditures.

On September 14, 1999, the Board of Directors approved an 8.3% increase in our
cash dividend to a new annual rate of $0.52 per share on its Class A common
stock and $0.052 on its Class B common stock. Dividends of $0.13 per share on
the Class A common stock and $0.013 on the Class B common stock were declared
during the quarter and paid October 7, 1999. Total Class A and B dividends paid
during the nine month period of 1999 were $14.7 million.

On August 22, 1999, we repurchased 2,200,000 shares of Class A common stock at
$41 per share from the Eugene S. Pulliam Revocable Trust. The $90.2 million
transaction was funded through utilization of our $300 million credit facility.
As of September 26, 1999, $275.0 million in debt remained outstanding under this
facility.

We have demonstrated a consistent ability to generate net cash flow from
operations. Management believes that existing cash and investments, net cash
flows from operations and available bank credit resources are sufficient to
enable us to maintain our current level of operations. We expect financing for
future investing opportunities to come from a combination of existing cash, new
debt facilities and/or use of equity.

                                       13
<PAGE>   14
YEAR 2000

Our Year 2000 project is on schedule to meet its objectives. In 1998, we
developed a comprehensive program to identify, evaluate, test, upgrade, or
replace each of our computer and non-computer based systems in connection with
Year 2000 readiness. We have devoted significant resources to the program,
including the development of a Year 2000 project team, which reports to senior
management on a regular basis, and we constructed a test environment dedicated
to the Year 2000 testing process. The Chief Information Officer reports progress
at every regularly scheduled Board of Directors meeting and on a weekly basis to
our Operating Committee.

We have been actively implementing new systems and technology since 1995 for
reasons unrelated to Year 2000, and these actions have resulted in a number of
our major information technology systems becoming Year 2000 compliant.

The discovery phase of our program was completed in 1998. We performed several
review audits that ensured that all susceptible systems had been identified,
including client server, desktop, and all systems with embedded computer chips.
All desktop systems, application software, and servers were updated to a
compliant level in 1998. All database modules are in the process of being
upgraded. We completed the remediation and testing phase for the embedded
computer chip systems in December 1998. We have completed testing of all mission
critical systems and the remediation and testing phase of all remaining systems.
We will continue to retest systems throughout the remainder of 1999 to ensure
continued compliance.

In 1998, we requested letters of compliance from each of our vendors and,
wherever possible, we worked with our vendors to determine an appropriate
testing and compliance process. We continue to receive upgrades and patches from
our system, database and telecommunications vendors and we install and test
these as they are received. In addition, certain employees have attended a
number of Year 2000 training programs and outside consultants have been hired
when necessary. We have published company wide employee Year 2000 awareness
bulletins.

Total costs associated with our Year 2000 project are being funded with
operating cash flows and are estimated to be approximately $8.5 million, of
which approximately $6.5 million was incurred in 1998 with the remainder to be
incurred this year.

Despite the efforts described above, we could potentially experience a
disruption in our operations as a result of potential non-compliance of certain
vendors, financial institutions, governmental agencies or other third parties or
external systems. This disruption could potentially affect various aspects of
our business operations including the timeliness and content of certain
newspapers or online products. At this time, we are unable to determine whether
the consequences of Year 2000 failures would have a material impact on our
results of operations, liquidity or financial condition.

In an effort to minimize any disruption, we have created a comprehensive
contingency plan for all sites to address potential Year 2000 scenarios. The
contingency plans outline alternative solutions in the event they are required.
Such plans include maintaining an inventory of critical supplies such as
newsprint, ink, and other consumables for at least a 30-45 day production cycle
as well as creating a smaller newspaper product designed to maximize advertising
content.


OUTLOOK FOR THE REMAINDER OF 1999

We anticipate growth in revenues for the remainder of 1999 at a rate that
approximates four to six percent compared with the same period in 1998.
Compensation expense is expected to be higher than the third quarter due to an
increase in performance based incentives for non-contract employees resulting
from performance that is projected to be higher than our original operating plan
for the year. We expect newsprint expense, our second largest expense item, to
continue to be down from the prior year due to reduced newsprint prices. As a
result, we expect an increase in net income for the year and we expect a greater
increase in diluted earnings per share due to fewer outstanding shares. We plan
to continue to use our substantial free cash flow to pursue a combination of
debt reduction, additional share repurchases and other investment opportunities.


                                       14
<PAGE>   15
                                    PART II

                            CENTRAL NEWSPAPERS, INC.

Item 1.   Legal Proceedings -- None

Item 2.   Changes in Securities -- None

Item 3.   Default Upon Senior Securities -- None

Item 4.   Submission of Matters to a Vote of Security Holders -- None

Item 5.   Other Information -- None

Item 6.   Exhibits and Reports on Form 8-K
          Exhibit 15 -- Independent Accountant's Report
          Exhibit 27 -- Selected financial data
          No reports on Form 8-K were filed during the quarter

                                   SIGNATURES

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

                                                  CENTRAL NEWSPAPERS, INC.



Dated: November 3, 1999                       By: /s/ Louis A. Weil, III
                                                  ___________________________
                                                  Louis A. Weil, III
                                                  Chairman, President and
                                                  Chief Executive Officer


                                              By: /s/ Thomas K. MacGillivray
                                                  ______________________________
                                                  Thomas K. MacGillivray
                                                  Senior Vice President and
                                                  Chief Financial Officer


                                      15
<PAGE>   16
                                 EXHIBIT INDEX



  Exhibit Number         Description

    Exhibit 15           Independent Accountant's Report

    Exhibit 27           Selected financial data