New Media Investment Group reports higher revenues in Q1, net loss of $6.7 million
NEW YORK, NY – May 1, 2014 — New Media Investment Group Inc. today reported its financial results for the first quarter ended March 30, 2014.
New Media President and Chief Executive Officer, Michael E. Reed, said, “This is our fifth consecutive quarter of improving revenue trends, with over 60% of total revenues generated by stable or growing categories.
“Our continued shift to a more diversified revenue mix contributed to further stabilization in total revenues. Most significantly, we saw strong growth in both our Digital and Commercial Printing and Other businesses. Digital Revenue grew over 8% year-over-year, with our digital marketing services platform, Propel, generating $3.8 million of revenue. Additionally, our Commercial Printing and Other business generated $12.0 million, up over 16% from the prior year.
“Due to the seasonality of our business, first quarter results have historically been the most muted of the year by a substantial margin, a dynamic we expect to see again in 2014. Our outlook for the remainder of the year is optimistic, and we are excited to announce that our initial dividend will be declared along with our second quarter results. We estimate to pay approximately 40-50% of Free Cash Flow as we continue our efforts to drive shareholder value.”
First Quarter 2014
New Media recorded Revenues of $142.0 million for the quarter, which represents a decline of 2.8% when compared to the prior year on a same store basis. This represents the company’s lowest quarterly decline in the past five quarters.
Total Print Advertising declined 8.1% on a same store basis driven by Local Display and Classified Print Revenue, which declined 10.0% and 10.7%, respectively, on a same store basis. However, the Company experienced strong revenue performance from Commercial Printing and Other, and Digital, which increased 16.2% and 8.3%, respectively, from the prior year on a same store basis. Propel contributed $3.8 million to the first quarter Digital Revenue.
Total Expenses in the quarter of $132.9 million were down 1.8% compared to the prior year on a same store basis after adjusting for non-recurring and non-cash items.
Net (loss) for the quarter was $(6.7) million, compared to $(17.5) million in the prior year, representing an improvement of $10.8 million. As Adjusted EBITDA for the quarter was $9.1 million, which was down $1.6 million compared to the prior year on a same store basis. Approximately $1.3 million of the decline was due to higher than normal utilities costs and benefit costs, which the company expects to be one-time in nature.
Unrestricted Cash on the balance sheet at the end of the quarter was approximately $22.0 million and the amount available under the revolver was approximately $20.0 million.