PROVIDENCE – New Media Investment Group Inc., the parent company of the Providence Journal, reported a $21.7 million loss for the second quarter of 2017, a reversal of its $9.4 million profit a year prior. The net loss per diluted share for the quarter was 41 cents. The company noted that its bottom line was negatively affected by about $36.6 million in non-cash charges, including a $27.4 million impairment of intangible assets and $8 million of tax expense. Through the first six months of 2017, New Media has posted a net loss of $25.4 million, compared with net income through the first half of 2016 of $14.4 million.
Revenue for New Media increased 2.6 percent year over year to $322.9 million, as well as a 61 percent increase in cash flow from operations to $49.6 million. Advertising revenue for the chain fell 3.9 percent year over year, even as circulation, and commercial printing and other revenue increased 6.2 percent and 22.8 percent, respectively.
When Your Period Is Disrupting Your Life, It’s Time to Talk About It
For many women, heavy or irregular menstrual cycles are often brushed off as “normal”—something to…
Learn More
The company noted that as a part of cost reduction programs, it was in the process of consolidating print facilities, having ceased operations at 11 print facilities in the past two quarters.
Despite the loss, the company said it was pleased to rein in operating costs, which increased 2.6 percent in the quarter. In addition, the company instituted a $100 million share repurchase program and declared a dividend of 35 cents per common share.
“We were pleased with the direction of our second-quarter operating results. We saw an improvement in the trends for most of the important segments of our business. Our organic same-store revenue trend decline improved to 5.4 percent after being 6.2 percent the previous two quarters,” said New Media President and CEO Michael E. Reed.
“We were pleased to get a few deals done in the second quarter and subsequent, closing on the sale of the Medford, Ore., Mail Tribune for $15 million at a very attractive multiple, and acquiring the local media business in Pennsylvania from the Calkins family for $17.5 million. Even more importantly, we feel very good about our pipeline for acquisitions for the back half of 2017.”
The company did not break out results for the Providence Journal.
Chris Bergenheim is the PBN web editor.
