ProJo Loses Sales and Circulation
Wednesday, November 02, 2011
Earnings ("EBITDA") was $9.2 million in the third quarter of 2011, a decrease of $5.0 million compared to the third quarter of 2010. The third quarter 2011 net loss, EBITDA and Adjusted EBITDA figures include $1.2 million of severance and related expenses.
Recently, the Providence Journal announced a new digital strategy that will require users to pay for content - Belo launch a similar strategy in the Spring in Dallas.
Robert W. Decherd, chairman, president and Chief Executive Officer, said, "Third quarter total revenue decreased 7.7 percent compared to 2010. Inconsistent advertising trends persisted throughout the quarter. We've taken additional steps to align expenses with lower revenue expectations for the remainder of the year and 2012. We anticipate full-year 2011 Adjusted EBITDA of approximately $45 million, which assumes no gains from real estate dispositions."
According to Belo, advertising revenue, including print and digital revenues, decreased 12.3 percent. Display advertising revenue decreased 24.5 percent to $21.4 million, and preprint revenue decreased 6.7 percent to $20.5 million. Classified revenue decreased 4.5 percent to $14.7 million. Digital revenue was $8.6 million, a decrease of 0.5 percent. Advertising revenue from niche publications, which is a component of the display, preprint, classified and digital revenue figures above, decreased 9.1 percent compared to the third quarter of 2010.
Circulation revenue decreased 0.5 percent to $34.7 million as a 1.4 percent rate-driven increase at The Dallas Morning News was offset by decreases at The Press-Enterprise and The Providence Journal. Printing and distribution revenue increased 2.0 percent to $10.0 million.
As of September 30, 2011, the Company had approximately $46 million of cash and cash equivalents (a decrease of $4 million from last quarter), had no borrowings outstanding under its bank credit facility, and remained in compliance with bank covenants.