By: Jennifer Saba Hammered by a brutal downturn in classified and local advertising, GateHouse Media reported that total revenue fell 15.1% to $151.5 million in Q2 year-over-year. Adjusted revenue on a same-store basis was down 15.2% to $150.8 million.
During Q1, an a same-store basis, total revenue at GateHouse fell 16.3%
Classified advertising plunged 32.4% in Q2 while the local category was down 11.3%. Circulation revenue at the company dropped 3% on a same-store basis.
Like many of its peers affected by the recession, GateHouse cut expenses by $17.7 million or 12.1% due mainly to compensation and a 14.1% reduction in newsprint expenses.
Adjusted EBITDA fell 31.6% to $25.1 million in Q2, an improvement from the previous quarter when EBITDA dropped 67.4%.
GateHouse took an impairment charge of $481.4 million in Q2 amounting to a $475.2 million operating loss. Excluding the charge, operating income was $6.2 million.
Mike Reed, GateHouse Chairman and CEO, said in a statement, "While the recession continued to impact our performance, we were pleased with the progress we were able to make in the Q2 versus the Q1 of this year. Revenue trends improved slightly and we significantly reduced our run-rate expenses."
Levered free cash flow was 16 cents per share, compared with 20 cents during the same period last year. GateHouse experienced some relief from interest expense down $7.7 million to $15.5 million due to lower LIBOR rates.
"During the second half of 2009 we aim to further stabilize our cash flows through ongoing cost reductions," Reed added.
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