Announces Regular Quarterly Dividend
PRIMEDIA Inc. (NYSE:
PRM), a leading provider of print, Internet and mobile solutions to
help consumers find a place to live, today reported results for the
quarter ended June 30, 2009.
Second Quarter Highlights
-
Total revenue of $65.2 million, representing an $11.6 million decrease
compared to second quarter 2008, primarily due to lower New Homes and
DistribuTech revenue.
-
Apartments, the Company’s largest division, representing 92% of second
quarter advertising revenue, recorded a 1.0% decline in revenue
compared to second quarter 2008.
-
Adjusted EBITDA decreased $1.3 million to $13.6 million; however,
Adjusted EBITDA margin increased to 20.9% from 19.4% compared to
second quarter 2008.
-
Provision for restructuring costs was $21.5 million, primarily as a
result of previously announced actions to optimize the Company’s
distribution footprint by eliminating underperforming locations.
-
Income from Continuing Operations decreased $11.8 million to $(8.3)
million, or $(0.19) per common share, primarily due to lower revenue
and higher restructuring costs, partially offset by gain on redemption
of debt.
-
Net Loss of $(11.8) million, or $(0.27) per common share.
-
Retired $14.0 million in long-term debt, resulting in a net gain of
$3.6 million.
Adjusted EBITDA is a non-GAAP financial measure that is described and
reconciled to the corresponding GAAP measure in the accompanying
Financial Tables.
“We strengthened our competitive positioning and made significant
improvements in operating efficiency during the second quarter,” said
Charles Stubbs, president and CEO of PRIMEDIA. “Despite challenging
economic conditions, our Apartments businesses achieved gains in
customer count, expanded markets and produced relatively stable
financial results. The ongoing weakness in the residential real estate
market continued to adversely impact our New Homes and DistribuTech
businesses, which contributed to a decline in total revenue.
“We generated strong cash flow and improved the overall financial health
of the organization by effectively executing against our strategic
objectives and initiatives,” added Mr. Stubbs. “By applying rigorous
financial discipline to all of our operations, we now expect to reduce
our 2009 operating expenses by at least $20 million compared to the 2008
operating expense base, a $5 million improvement over the objective that
we announced earlier this year. PRIMEDIA has a strong financial
foundation, and we remain committed to managing our businesses with
focused discipline, while investing in growth opportunities to increase
our customer count and enhance long-term shareholder value.”
Second Quarter Revenue and Operations
Apartments – Apartment Guide, ApartmentGuide.com, Rentals.com and
RentalHouses.com
The Apartments division, representing approximately 92% of second
quarter 2009 advertising revenue, declined by 1.0% to $51.9 million from
$52.5 million. Apartment Guide and ApartmentGuide.com increased customer
count and grew the number of apartment community listings, while revenue
declined 1.2% due to expansion of lower-priced offerings and declines in
premium advertising spending. Revenue from the Company’s online
single-unit real estate rental product line, Rentals.com, increased by
2.9% compared to the second quarter of 2008, primarily due to an
increase in customer listings. The Company currently anticipates that
Apartments division revenue for 2009 is likely to be essentially flat to
slightly down compared to last year, primarily as clients struggle with
the weakened national economy.
During the second half of 2009, the Company is focused on continuing to
grow its customer count in its largest business, Apartment Guide, while
enhancing the product portfolio. The Company will continue to increase
its investment in search engine optimization and marketing over the
prior year. The Apartment Guide and ApartmentGuide.com mobile platform
recently expanded through the launch of its Android application, while
its iPhone app has generated over 300,000 downloads. The Company also
intends to continue to grow its Rentals.com business by focusing on
driving revenue and improving site engineering and performance, while
increasing traffic, primarily through search engine optimization.
New Homes – NewHomeGuide.com, AmericanHomeGuides.com
Revenue from New Homes, representing approximately 8% of second quarter
2009 advertising revenue, declined by 56.0% to $4.7 million from $10.5
million in the second quarter of 2008. The U.S. recession, particularly
as it affects the residential real estate market, continues to adversely
impact this business. The revenue decline was primarily due to
reductions in the number of new home community listings and revenue per
community.
The Company anticipates continued pressure on this business for the
foreseeable future and remains focused on reducing costs for this
business to offset expected revenue losses and maintaining close
relationships with its advertising clients to best position this
business for opportunities as macroeconomic conditions improve. The
Company currently expects full year percentage decline in revenue for
this business to exceed that experienced during the second quarter of
2009 compared to the same period in 2008. The Company suspended two
publications during the quarter and may suspend additional, less
effective publications based on local market conditions. The Company has
increased its focus on its Internet offerings in all markets through
NewHomeGuide.com and related websites.
DistribuTech
DistribuTech, the Company’s print distribution operation, generated
revenue of $8.6 million, compared to $13.8 million in the second quarter
of 2008, a 37.4% decline. This decline was primarily due to the ongoing
impact of lost business from third-party customers, who are scaling back
or ceasing to publish resale home and automotive and employment
classifieds publications or providing an Internet-only product, and a
decrease in the average revenue per pocket due to continued decline in
demand.
During the quarter, the Company eliminated approximately 2,000 retail
locations as part of its initiative to optimize the distribution
footprint by eliminating underperforming locations. These actions were
the main driver of the $21.5 million in restructuring costs in the
second quarter. The Company currently expects full year percentage
decline in revenue for this business to exceed that experienced during
the second quarter of 2009 as compared to the same period in 2008. For
the remainder of the year, the Company intends to continue to reduce the
cost structure of this business to offset, in part, expected revenue
losses. The Company’s overall goal is to create a more efficient
distribution network for the longer term by streamlining the expense
structure of this business.
Other Second Quarter Financial
Highlights
Operating Expenses
The decrease in Operating Expenses by 16.7% to $51.6 million was driven
primarily by reductions in General and Administrative, Distribution and
Circulation, and Cost of Sales. This reflects a post-headquarters
relocation overhead structure, the reduction of certain professional
fees and the initial results of various cost-cutting initiatives,
partially offset by an incremental increase in Internet and sales
channel expenses of $1.2 million. The total net expense savings from the
cost-cutting initiatives were previously targeted to be at least $15.0
million compared to the 2008 operating expense base. The Company now
expects that these initiatives will generate at least $20.0 million in
savings during 2009.
Adjusted EBITDA
Total Adjusted EBITDA decreased 8.4% to $13.6 million from $14.9
million. This decline was driven primarily by a decrease in revenue of
$11.6 million and $1.2 million increase in Internet and the sales
channel spend. This was partially offset by lower non-revenue generating
headcount, the completion of the headquarters relocation and initiatives
to reduce operating expenses. Adjusted EBITDA as a percentage of total
net revenue increased to 20.9% from 19.4% in the second quarter of 2008
and from 16.8% in the first quarter of 2009.
Income and Earnings per Share from Continuing Operations
Income from continuing operations decreased to $(8.3) million from $3.5
million in the second quarter of 2008. Earnings per share from
continuing operations decreased $0.27 to $(0.19) from $0.08 in the
second quarter of 2008. These decreases were primarily due to lower
revenue of $11.6 million and a $20.3 million increase in restructuring
costs, primarily for retail display allowances, partially offset by cost
and expense reductions of $11.2 million and a $3.6 million net gain on
redemption of debt.
Net Income
Net income decreased $13.7 million to $(11.8) million, compared to $1.9
million in the second quarter of 2008. This reduction was primarily due
to lower income from continuing operations and a $1.9 million decrease
in income from discontinued operations, net of tax.
Free Cash Flow and Capital Expenditures
Free cash flow was $6.0 million compared to $(1.1) million for the
second quarter of 2008. This change was primarily due to a $15.8 million
federal income tax refund, partially offset by prepayments associated
with distribution locations. The Company invested $2.5 million in
capital expenditures, compared to $2.9 million in the second quarter of
2008. Free cash flow is a non-GAAP financial measure that is described
and reconciled to the corresponding GAAP measure in the accompanying
Financial Tables.
Balance Sheet
As of June 30, 2009, the Company’s cash and cash equivalent balance was
$2.1 million, versus $6.8 million as of June 30, 2008. The Company had
debt, net of cash, of $231.0 million at June 30, 2009, compared to net
debt of $247.1 million at June 30, 2008. In addition to the required
quarterly repayment under the Company’s Term Loan Facility and repayment
of $4.4 million outstanding under the revolving credit facility, the
Company used excess cash to retire an incremental $14.0 million of its
Term Loan B Facility.
Dividend
The Board of Directors of the Company has authorized a regular quarterly
cash dividend of $0.07 per share of common stock, payable on September
2, 2009, to stockholders of record on August 17, 2009. The Company
currently expects to continue to pay a regular quarterly dividend.
Conference Call
The Company will host a conference call and audio webcast with
investors, analysts and other interested parties today at 10:00 A.M.
Eastern time. The call can be accessed live over the phone by dialing
1-877-941-1465 or for international callers, 1-480-629-9678. The
passcode is 4117044. Additionally, a live audio webcast will be
available to interested parties for a limited time only at www.primedia.com
under the Investor Relations section.
A recorded version will be available after the conference call at
1-800-406-7325 in the U.S. or 1-303-590-3030 if you are outside the U.S.
The replay ID is 4117044. The recorded version will be available shortly
after the completion of the call until midnight, Eastern time, August
13, 2009.
About PRIMEDIA Inc.
PRIMEDIA Inc. helps millions of consumers nationwide find a place to
live through its innovative print, Internet and mobile solutions. From
publishing its flagship advertising-supported Apartment Guide since 1975
to launching industry-leading online real estate destinations such as ApartmentGuide.com,
Rentals.com
and NewHomeGuide.com,
PRIMEDIA continues to simplify the consumer home search and drive leads
that result in occupancy for property managers, landlords, new home
builders and real estate professionals. For more information, visit www.primedia.com.
Forward-looking Statements
This release contains forward-looking statements as that term is used
under the Private Securities Litigation Reform Act of 1995. When used in
this release, words such as “anticipate,” “believe,” “estimate,”
“expect,” “intend” and similar expressions identify forward-looking
statements. These forward-looking statements are based on the current
assumptions, expectations and projections of the Company’s management
about future events, and the Company can give no assurance that they
will prove to be correct. These forward-looking statements are subject
to risks and uncertainties, including those detailed from time to time
in the Company’s filings with the Securities and Exchange Commission,
that may cause the Company’s actual results to differ materially from
those indicated in these forward-looking statements. Many of these risks
and uncertainties are beyond the ability of the Company to control or
predict. These potential risks and uncertainties include, among others,
general economic trends and conditions and, in particular, related
adverse trends and conditions in the apartment leasing and new home
sales sectors of the residential real estate industry, as well as
changes in technology and competition; the implementation and results of
the Company’s ongoing strategic and cost-cutting initiatives; the demand
by customers for the Company’s premium services; and expenses or adverse
results from litigation. The Company cautions you not to place undue
reliance on these forward-looking statements. All information in this
release is as of August 6, 2009. The Company undertakes no duty to
update or otherwise revise the information contained in this release.
PRIMEDIA, Apartment Guide, ApartmentGuide.com, My.ApartmentGuide.com,
Rentals.com, RentalHouses.com and NewHomeGuide.com are trademarks and/or
registered trademarks of PRIMEDIA Inc. iPhone is a trademark of Apple,
Inc. Android and Android Market are trademarks of Google.
© PRIMEDIA Inc. 2009. All rights reserved.
Financial Tables follow
|
PRIMEDIA Inc.
|
|
Financial Tables (Unaudited)
|
|
($ in millions, except per share amounts)(A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational Data (Including Reconciliation of Adjusted EBITDA to
Net Income)
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, Net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartments
|
|
|
$
|
51.9
|
|
|
|
$
|
52.5
|
|
|
$
|
103.9
|
|
|
|
$
|
104.4
|
|
|
|
New Homes
|
|
|
|
4.7
|
|
|
|
|
10.5
|
|
|
|
10.7
|
|
|
|
|
22.2
|
|
|
|
Total Advertising Revenue
|
|
|
|
56.6
|
|
|
|
|
63.0
|
|
|
|
114.6
|
|
|
|
|
126.6
|
|
|
|
Distribution
|
|
|
|
8.6
|
|
|
|
|
13.8
|
|
|
|
19.1
|
|
|
|
|
27.7
|
|
|
|
Total Revenue, Net
|
|
|
$
|
65.2
|
|
|
|
$
|
76.8
|
|
|
$
|
133.7
|
|
|
|
$
|
154.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold
|
|
|
$
|
6.0
|
|
|
|
$
|
8.3
|
|
|
$
|
12.5
|
|
|
|
$
|
17.0
|
|
|
|
Marketing and Selling
|
|
|
|
20.1
|
|
|
|
|
19.4
|
|
|
|
40.4
|
|
|
|
|
39.6
|
|
|
|
Distribution and Circulation
|
|
|
|
15.8
|
|
|
|
|
21.4
|
|
|
|
35.0
|
|
|
|
|
42.6
|
|
|
|
General and Administrative Expenses
|
|
|
|
9.7
|
|
|
|
|
12.8
|
|
|
|
20.7
|
|
|
|
|
27.3
|
|
|
|
Total Operating Expenses
|
|
|
$
|
51.6
|
|
|
|
$
|
61.9
|
|
|
$
|
108.6
|
|
|
|
$
|
126.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings before Interest, Taxes, Depreciation, Amortization
and Other Credits (Charges) (B) (Adjusted EBITDA) (C)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13.6
|
|
|
|
$
|
14.9
|
|
|
$
|
25.1
|
|
|
|
$
|
27.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization of Property and Equipment
|
|
|
|
(3.4
|
)
|
|
|
|
(3.3
|
)
|
|
|
(6.9
|
)
|
|
|
|
(6.6
|
)
|
|
|
Amortization of Intangible Assets
|
|
|
|
(0.6
|
)
|
|
|
|
(0.6
|
)
|
|
|
(1.2
|
)
|
|
|
|
(1.4
|
)
|
|
|
Non-Cash Compensation
|
|
|
|
(0.5
|
)
|
|
|
|
(0.3
|
)
|
|
|
(0.9
|
)
|
|
|
|
(0.3
|
)
|
|
|
Provision for Restructuring Costs
|
|
|
|
(21.5
|
)
|
|
|
|
(1.2
|
)
|
|
|
(25.8
|
)
|
|
|
|
(1.7
|
)
|
|
|
Interest Expense
|
|
|
|
(4.2
|
)
|
|
|
|
(4.9
|
)
|
|
|
(8.5
|
)
|
|
|
|
(9.9
|
)
|
|
|
Amortization of Deferred Financing Costs
|
|
|
|
(0.2
|
)
|
|
|
|
(0.2
|
)
|
|
|
(0.5
|
)
|
|
|
|
(0.4
|
)
|
|
|
Other Income, Net
|
|
|
|
4.4
|
|
(D)
|
|
|
0.4
|
|
|
|
6.5
|
|
(D)
|
|
|
0.5
|
|
|
|
Income Before Benefit (Provision) for Income Taxes
|
|
|
|
(12.4
|
)
|
|
|
|
4.8
|
|
|
|
(12.2
|
)
|
|
|
|
8.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit (Provision) for Income Taxes
|
|
|
|
4.1
|
|
|
|
|
(1.3
|
)
|
|
|
3.6
|
|
|
|
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Continuing Operations
|
|
|
|
(8.3
|
)
|
|
|
|
3.5
|
|
|
|
(8.6
|
)
|
|
|
|
5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations
|
|
|
|
(3.5
|
)
|
(E)
|
|
|
(1.6
|
)
|
(E)
|
|
(2.8
|
)
|
(E)
|
|
|
9.8
|
|
(E)
|
|
Net (Loss) Income
|
|
|
$
|
(11.8
|
)
|
|
|
$
|
1.9
|
|
|
$
|
(11.4
|
)
|
|
|
$
|
15.5
|
|
|
|
Basic and Diluted Earnings (Loss) per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
|
$
|
(0.19
|
)
|
|
|
$
|
0.08
|
|
|
$
|
(0.20
|
)
|
|
|
$
|
0.13
|
|
|
|
Discontinued Operations
|
|
|
|
(0.08
|
)
|
|
|
|
(0.04
|
)
|
|
|
(0.06
|
)
|
|
|
|
0.22
|
|
|
|
Net (Loss) Income
|
|
|
$
|
(0.27
|
)
|
|
|
$
|
0.04
|
|
|
$
|
(0.26
|
)
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Common Shares Outstanding (weighted-average)
|
|
|
|
44,084,940
|
|
|
|
|
44,174,533
|
|
|
|
44,102,117
|
|
|
|
|
44,173,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Common Shares Outstanding (weighted-average)
|
|
|
|
44,084,940
|
|
|
|
|
44,189,055
|
|
|
|
44,102,117
|
|
|
|
|
44,196,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures, net
|
|
|
$
|
2.5
|
|
|
|
$
|
2.9
|
|
|
$
|
4.5
|
|
|
|
$
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30,
|
|
|
At December 31,
|
|
At June 30,
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
2.1
|
|
|
|
$
|
31.5
|
|
|
$
|
6.8
|
|
|
|
|
|
|
|
Total debt, including current maturities
|
|
|
$
|
233.1
|
|
|
|
$
|
261.8
|
|
|
$
|
253.9
|
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
|
44,146,959
|
|
|
|
|
44,188,550
|
|
|
|
44,175,009
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Cash Provided By (Used In)
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
$
|
8.6
|
|
|
$
|
1.9
|
|
|
$
|
5.0
|
|
|
$
|
(14.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment
|
|
|
|
|
(2.5
|
)
|
|
|
(2.9
|
)
|
|
|
(4.5
|
)
|
|
|
(5.8
|
)
|
|
Capital lease payments
|
|
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
(0.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow (F)
|
|
|
|
$
|
6.0
|
|
|
$
|
(1.1
|
)
|
|
$
|
0.2
|
|
|
$
|
(20.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest (including interest on capital leases and
restructured contracts)
|
|
$
|
4.2
|
|
|
$
|
4.4
|
|
|
$
|
8.9
|
|
|
$
|
9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (refunded) paid for taxes, net
|
|
|
|
$
|
(18.1
|
)
|
|
$
|
1.4
|
|
|
$
|
(18.1
|
)
|
|
$
|
16.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Slight variations due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) Other credits (charges) include non-cash compensation and
provision for restructuring costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C) Use of the Term Adjusted EBITDA - Adjusted EBITDA is
defined as earnings before interest, taxes, depreciation,
amortization, non-cash compensation, provision for restructuring
costs and other. The Company believes that adjusted EBITDA provides
useful information to investors because it is an integral part of
the Company’s internal evaluation of operating performance. These
operating performance results are used by the Company’s chief
operating decision maker to make decisions about resource allocation
and to assess performance.
Adjusted EBITDA is not intended to be, and should not be
considered as, an alternative to net income as determined in
conformity with accounting principles generally accepted in the
United States of America. Adjusted EBITDA, as presented, may not
be comparable to similarly titled measures reported by other
companies since not all companies necessarily calculate adjusted
EBITDA in an identical manner, and, therefore, it is not
necessarily comparable between companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) During the three and six months ended June 30, 2009, the Company
sold certain cost-method investments for cash and recorded a gain of
$0.5 million and $2.3 million, respectively. In addition, the
Company retired $14.0 million in long-term debt, resulting in a net
gain of $3.6 million during the three and six months ended June 30,
2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E) For the three and six months ended June 30, 2009, the Company
recognized an estimated tax benefit of $0.1 million and $0.2
million, respectively, in discontinued operations. For the three and
six months ended June 30, 2008, the Company recognized an estimated
tax benefit of $0.6 million and $11.9 million, respectively, in
discontinued operations, primarily as a result of its ability to
carry back a projected 2008 net operating loss (for tax purposes)
against taxes paid on a portion of the 2007 gain on divestures of
certain subsidiaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F) Use of the Term Free Cash Flow - Free cash flow is
defined as net cash provided by (used in) operating activities,
adjusted for additions to property and equipment, and capital
lease payments. Discontinued operations are included until sold or
shut down.
The Company believes that the use of free cash flow enables the
Company’s chief operating decision maker to make decisions based
on the Company’s cash resources. The Company believes that free
cash flow provides useful information to investors as it is
considered to be an indicator of the Company’s liquidity,
including its ability to reduce debt, make strategic investments
and pay dividends.
Free cash flow is not intended to represent cash flows from
operating activities as determined in conformity with accounting
principles generally accepted in the United States of America.
Free cash flow, as presented, may not be comparable to similarly
titled measures reported by other companies since not all
companies necessarily define free cash flow in an identical
manner, and, therefore, it is not necessarily comparable between
companies.
|
Solebury Communications Group
Duff Anderson, 678-421-3800
danderson@soleburycomm.com
