New Media Investment Group bolts to profitability due to new acquisitions
Revenue jumps 89 percent as company, which acquired The Columbus Dispatch and Providence Journal in the past 12 months, continues acquisition strategy
The private equity backed newspaper company, New Media Investment Group Inc. reported earnings this morning, saying that total revenues increased 89.1 percent compared to the prior year, driven by acquisitions. Same property sales, though, decreased 5.7 percent.
The added revenue led the company to report income of $6.1 million, an improvement from the loss of $4.7 million the publisher reported in the prior year.
“Our performance in Q3 marks another strong quarter for the Company with total revenues, As Adjusted EBITDA, and free cash flow increasing 89.1 percent, 84.8 percent, and 90.3 percent vs. the prior year, respectively,” said Michael E. Reed, New Media President and CEO. “On a same store basis, Q3 total revenues decreased 5.7% vs. prior year driven primarily by declines in our Local Print Advertising and Preprints categories. Same store sequential revenue trends were also impacted by two of our tuck-in acquisitions, ACM Southwest and The Progress-Index, cycling out of our quarterly numbers. We are pleased to report that excluding tuck-in acquisitions, revenue at businesses we have owned for over one year performed much better, decreasing 3.7%, highlighting the operational improvements we are able to make once we have time to execute on our strategy.”
The company also announced that its digital marketing services business, Propel, would be represented in Canada by Postmedia Network.
New Media announced in June that it had a deal to buy The Columbus Dispatch, and last December said it acquired Foster’s Daily Democrat. One month before that New Media acquired Halifax Media Group for $280 million, and last summer A.H. Belo sold it The Providence Journal. It was only in November of 2013 that the company emerged from Chapter 11 bankruptcy.