Wednesday, December 31, 2008

Year End Blowout

Here's a snapshot of what happened to the market value of newspaper companies and their stock in 2008. All information comes from Yahoo Financial.

-- McClatchy, Belo and Media General have almost as much (or more) debt than they are worth.
-- All stock prices are down considerably, two companies more than 90 percent.
-- Three companies are posting net losses. This doesn't include Tribune, which is not included in the list because it's not a public company anymore. However, Tribune is in the net loss column.
-- Profit margins are way down, by more than 50 percent at one company.
-- The companies collectively have more than $10 billion in debt, which is less than just one company: Tribune.
-- One company has declared bankruptcy: Tribune.

Share price = 74 cents, down 94 percent since beginning of ’08.
Market cap = $61 million
Company's worth = $2 billion
Outstanding debt = $2.07B
Profit margin = down 70%

Notes: Paid $404 million in debt in 2008. Laid off 1,400 of its workers, or 16 percent. Miami Herald reportedly on auction block. Posting net losses.

Share price = $7.02, down 60 percent in ‘08.
Market cap = $1.01 billion
Company's worth = $2.1 billion
Debt = $1.13 B
Profit margin = down 1%

Notes: Is looking to do a sale-leaseback of a portion of new headquarters to generate about $225 million in needed cash. May sell stake in Red Sox. Boston Globe reportedly for sale.

Share price = $1.56, down 40 percent
Market cap = $159 M
Company worth = $1.29 B
Debt: $1.14 Billion
Profit margin = down 21%

Notes: Spun off newspaper business into separate unit called A.H Belo in early 2008. Belo is now a “pure play” broadcast company.

Share price = $2.18, down 38 percent
Market cap = $44.6 million
Company worth = $36.5 million
Debt = $10 M
Profit margin = down 56%

Notes: Laid off 500 employees in ‘08, generating $30 million in annual savings. Salary freeze went into effect November ’08. Amended credit agreement. Robert W. Decherd, A.H. Belo's chairman, president and chief executive, will receive a salary of $600,000 in 2009, compared with $250,000 this year.

Share price = $8, down 79 percent
Market cap = $1.82 B
Company worth = $5.6 Billion
Debt = 3.91 B
Profit margin = down 25%

Notes: Laid off 3,000 employees or 10 percent of its workforce; does not reflect 1,000 job cuts in Gannett Community Publishing. Detroit Free Press (in JOA with Detroit News) will reduce home delivery days to Thur., Fri. and Sun; subscribers can view paper online or via single copy sales on other days. S&P placed Gannett on credit watch list. Acquired shares of Career Builder from Tribune. Posting net losses.

Share price = $1.73, down 98percent
Market cap = $118.9 million
Company worth = $122.9 million
Debt = $60.3 million
Profit margin = down 29%

Notes: Laid off 400 workers. Selling Rocky Mountain News and San Diego Union-Tribune. Closed the Cincinnati Post and Albuquerque Tribune. Posting net losses.

Share price = $390.25, down 52 percent
Market cap = $3.65 Billion
Company worth = $3.69 billion
Debt = $509 million
Profit margin = up 3%

Notes: Announced will share certain news content with Baltimore Sun. Washington Post Co. is not a pure play newspaper company. Its Kaplan education unit provides about $2 billion in annual revenue, or the lion's share of the company's revenue.

Share price = $1.75, down 91 percent
Market cap = $39.9 million
Company worth = $777 million
Debt = $750 million
Profit margin = down 62%


Anonymous said...

Notes: Laid off 400 workers. Selling Rocky Mountain News and San Diego News Union. Closed the Cincinnati Post and Albuquerque Tribune.

Do you mean the San Diego Union-Tribune? That is a Copley newspaper, and yes, it is up for sale.

Maria Padilla said...

Yes, I meant the Union-Tribune, which Tribune is reportedly interested in buying.