The financial wires are playing the company’s announcement straight,Â comparing its 2008 $33.1Â million loss against last year’s $343.6Â million loss (which was due to gigantic and mostly non-cash write-downs). Â But I have questions. From the company’s statement:
The Company generated $5.9 million and $6.1 million in consolidated EBITDA for the fourth quarter and full year 2008, respectively, excluding the $14.0 million non-cash pension obligation. The aggregate newspaper EBITDA margin excluding all special charges mentioned above was 13 percent in the fourth quarter and 10 percent for the full year.
Full-year revenues were $637.3 million. How is $6.1 million a 10 percent margin? Maybe a FrontBurnervian with a better grasp of corporatese can explain what I’m missing. Regardless, $6.1 million is thin gruel (or working capital) on which to feed $600 million or so of revenues.Â Which is why the companyÂ recently announcedÂ a renegotiated credit line of $50 million.