By: E&P Staff GateHouse Media reported that revenue in 2008 grew 17.9% to $683.1 million due mainly to acquisitions.
On a same-store basis, revenue at the company dropped 5.7% to $698.5 million in 2008 compared to 2007. In Q4, total revenue was down 8.7% to $168.6 million year-over-year.
Operating loss in 2008 was $582.9 million due mostly to a goodwill impairment charge. Excluding the goodwill charge, the company's operating income was $32.6 million compared to $45.2 million in 2007. Adjusted EBITDA on a same-store basis fell 20.3% to $131.4 million in 2008.
Michael Reed, GateHouse CEO, said in a statement: "In my 21 years in the local media sector, 2008 was by far the most challenging year. Our print classified business, our category that is most sensitive to the economy, declined nearly 20% on a same store basis in 2008 and accounted for over 75% of our total advertising revenue decline."
On a same-store basis for 2008, local print advertising revenue fell 3.8%. Print classified revenue declined 18.8% on double digit declines in the recruitment, auto, and real estate categories. Online ad revenue jumped 21.4% accounting for 5.1% of total ad revenue. Circulation revenue was up 1.7% on increased pricing.
Levered free cash flow in 2008 was $33.7 million compared to $55.4 million in 2007.
"As we look ahead over the next 12 to 24 months, we think the economy will remain very weak," Reed said in a statement. "Our focus is on improving our products and operations, aggressively pursuing reductions in controllable expenses, finding ways to become more efficient and continuing to invest in our fastest growing category, online."
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