Ad revenue for the 2nd quarter fell 30 percent; circ revenue was up 9 percent on higher subscription prices. Total rev was down 21.9 percent. Fortunately, the operating cuts that have been announced over the past 6 months hit the books, dropping expenses 21.5 percent. That and corporate cuts produced an EBITDA of $7.8 million while reporting a GAAP loss of $7.1 million (the $14 million swing is mostly non-cash depreciation).
The company used its cash flow to pay down debt by $7.2 million, probably because the lender required it. I won’t pretend to understand where it found the $2 million to invest in an online real estate sales company during the quarter. Perhaps executives will explain that on its investors conference call scheduled for 1 p.m Central today.
