Posts Tagged ‘GateHouse Media’

A shout out to Macomb

Thursday, May 21st, 2009

I learned today that Oliver Wiest — a former co-worker from the Jacksonville Journal-Courier — is slaving away as an editor at the Macomb Journal, another GateHouse Media publication.

One of these days, Oliver, we’ll have to make that road trip to Goofy Ridge.

Local newspaper ownership rocks

Thursday, May 21st, 2009

Thus speaketh Gene Hall of  the Charles City Press, as quoted in Rural Blog:

Hall notes that he was “a corporate officer in a publicly traded media company for more than 15 years.” His piece doesn’t name the companies, but he told us that they were, in succession, Hollinger, Liberty Group and GateHouse Media. “Never was there a meaningful discussion about the product being germane to the community. Never a sentence about putting something back into the product or community,” he recalls. “What has and is ruining American media is that, like even baseball, it came to be run solely as a business. Newspapers are more than a business. They have obligations and responsibilities far beyond what a big box retail store or a widget manufacturer has. … Big business has corrupted a sacred covenant. Care must be taken with a commodity so central to democracy.”

Bad news coming for GateHouse employees

Tuesday, May 12th, 2009

From Dan Kennedy’s Media Nation blog:

Media Nation is picking up reliable buzz that GateHouse Media, which owns some 100 community newspapers in Eastern Massachusetts, will be announcing significant downsizing moves in the very near future.

For those who don’t read Peoria Pundit regularly, GateHouse Media also owns the Peoria Journal Star, the Peoria Times-Observer, the Pekin Times, the Galesburg Register Mail and just about every daily and weekly newspaper in this part of the state.

And they just posted big first quarter revenue declines.

More cuts coming from GateHouse

Saturday, May 9th, 2009

From the Democrat and Chronicle:

In response, the company plans to do more cost-cutting. Its compensation costs were down 10 percent during the first quarter of 2009 compared with the same quarter in 2008, and Reed said, “We will be even more aggressive over the next couple of quarters as we weather this economic downturn. We remain highly focused on liquidity and improving our cash position.”

Apparently, the bosses are unaware of the wonderful EBIDTA.

GateHouse owns the Peoria Journal Star and just about every daily and weekly newspaper in this part of Illinois.

Journal Star owner loses $10.3 million in 1st quarter (UPDATE)

Thursday, May 7th, 2009

From Editor and Publisher:

GateHouse Media, publisher of 92 community dailies and hundreds of non-dailies, reported a first-quarter operating loss of $10.3 million from a year-ago profit of $200,000.

Total revenue fell by 15% to $139.2 million, and was down by 16.3% to $138.6 million on a same-property basis, comparing the results of newspapers and other businesses that have been operating continuously since the first quarter of 2008.

UPDATED: It has been suggested that I do not know how to read financial statements because I reprinted the first two paragraphs from Editor & Publisher’s report on the subject of GateHouse Media’s recently released financial statements. It was suggested a more accurate report — that focused on something called EBIDTA could be found on GateHouse Media’s Website.

So I will reprint the entire release, which you will notice absolutely does NOT focus on EBIDTA. (more…)

Media: JS reports on GateHouse quarterly statements, CEO predicts recovery

Friday, August 8th, 2008

In an un-bylined article, the Journal Star reported on parent company GateHouse Media’s 2nd quarter statement and conference call. It’s the first coverage the PJS has given the company since the company’s stock prices fell below $1.

The article stated that GateHouse was suspending dividend payments and was going to use the money to pay down debt instead.

GateHouse Media Inc., parent of the Journal Star and several other central Illinois newspapers, posted a loss in the second quarter, but did experience revenue growth, the company announced today.

Also:

CEO Michael Reed said the decision to suspend cash dividends to pay down debt “makes sense in these tough economic times” and said it did not take away from the company’s goal to deliver a profitable product to its shareholders.

He told analysts during a conference call that the company remains strong, that it would be able to weather the current economic storm because its existing credit facility doesn’t mature until 2014.

“We have time to operate through this. It’s important we not panic or lose confidence in our assets,” Reed said.

I’ve mentioned in previous posts about how some analysts believed that GateHouse was making a mistake by continuing to pay generous dividends even though it was in great debt due a constant stream of acquisitions. Other analysts said that the dividend was the only reason for owning the stock.

I am NOT a market analyst, so the following observations are those of a layman: I’d think the beating the stock has taken would have shaken out the chicken-hearted. Some folks might sell because dividends have been suspended, but I think most of those folks are gone. And it’s better to have a plan to pay off debts than otherwise.

So, perhaps Reed is right and GateHouse is on the road to recovery.

Media: Another GateHouse newspaper eliminates Monday news

Monday, August 4th, 2008

This time, the victims are the folks who rely on the McPherson (Kan.) Sentinel. And the press release they printed on the front page makes it sound like just another run of the mill business decision, much like switching from brand-name coffee to the generic stuff in the cafeteria.

But they ARE going to update the Web site on Monday, which is understandable, considering there will be people working on Monday to produce the Tuesday paper.  And here is a poser for GateHouse, if updating the Website is the same as printing a newspaper on paper in terms of keeping readers informed (a position I’ve taken for years), why do they continue to print in paper anyway, when it’s do damn expensive?

Because their business model is based on printing press scarcity: The fact that while anyone can afford to own/rent a Web server, not everyone can afford a printing press. So they give away for free the stuff they charge for when its on paper. This drives out competition. If they stopped printing on paper entirely, they would have to charge for the Web. If they did that (even at a fraction of the cost of home delivery), then entrepreneurs would come along for their piece of the pie.

Media: GateHouse ended well today (relatively speaking)

Monday, August 4th, 2008

GateHouse Media — which closed at 44 cents a share on Friday — opened at 60 cents, then dropped down to 40 cents. It hovered around 43 cents most of the day. Two minutes before closing, Marketwatch was telling me the stock was worth 40 cents, but at close, the stock had rallied to 50 cents a share. Which is about half of what it needs to be to avoid delisting on the NYSE.

Media: Online news has bright future, newspapers not so much

Monday, August 4th, 2008

The New York Times writes about how no one wants to buy newspaper companies anymore. Of course, GateHouse Media’s woes get a mention. But they saved the money paragraph for the last:

Despite the long-term challenges, analysts and bankers think that buyers will return to the newspaper market, though they may be outnumbered by people who decide to invest in online news start-ups instead.

It makes sense. Printing news on paper and hand-delivering it door to door strikes me as inefficient. And the free market is supposed to weed out the inefficient and replace them with those who can delivery the most goods for the least cost.

And THAT is one reason for the drop in value for newspaper companies. Why invest in the print media when the market is just waiting for the inevitable?

Of course, some newspaper companies have problems beyonde those that are common in the industry right now. GateHouse stock closed at 44 cents Friday. I have no idea how it will close today, but even if the stock doubles in value, it won’t be enough to keep it from being delisted.

At least if GateHouse enters bankruptcy, there’s one thing that won’t stand in the way of the Journal Star being sold in one piece: Debt from the paper’s new printing press. I had been worried that anyone who bought the PJS would also get stuck with the debt for the multi-million presses. I’ve been told by someone who should know that this isn’t the case.

Media: Some idle speculation about GateHouse’s future

Thursday, July 31st, 2008

The lovely and talented Marie Carnes set me an email with an observation: Most bankruptcies are filed in court during the first week of the month. So, if GateHouse Media is to inclined, we might hear about it within the next seven days.

Marie predicts that the company would probably declare Chapter 11, which would allow it to reorganize. Chapter 7 basically puts the company out of business. The difference is explained here.

Media: Newspaper, cover thyself

Wednesday, July 30th, 2008

I’ve gotten used to the sound of silence from the local media when it comes to bad financial news regarding local media.

So I was a bit surprised with I saw this link to bad news about GateHouse Media coming from, of all places, a GateHouse Media newspaper.

Alas, all I’m getting is page-cannot-be-found message.

However, I did find this AP story via the Patriot-Ledger.

Media: GateHouse default likely, analyst says

Wednesday, July 30th, 2008

From Editor & Publisher:

GateHouse Media is likely to default under its credit agreement unless it can negotiate an amendment to its covenants or get a cash injection from its largest stakeholder, Moody’s Investor Service says in a report downgrading the community newspaper publisher’s credit and probability of default ratings.

and

GateHouse could bump up against loan covenants, Moody’s added.

“Moody’s considers it highly questionable whether GateHouse will be able to comply with this covenant test over the near term without the benefit of proceeds from asset sales [emphasis mine] or another equity cure from its largest shareholder,” [Moody's Senior Analyst John] Page wrote.

In other words, GateHouse is going to have to sell of a big chunk of its assets (perhaps the Peoria Journal Star) or get more cash from Fortress Investment Group, a hedge fund that owns close to half of GateHouse.

GateHouse stock closed trading today at 75 cents a share, which is higher than its previous closing price of 72 cents a share. But the price did reach a brand-new all time low of 51 cents a share. Its previous low was 56, which happened yesterday.

UPDATE: I’m not the only blogger on a death watch.

Media: GateHouse on it’s ‘funeral march?’

Monday, July 28th, 2008

On the first trading day after its stock reached a new low, GateHouse Media saw the value of its stock plummet to an all-new low of 66 cents a share. The stock rebounded to 90 cents a share, less than what’s needed to avoid delisting on the New York Stock Exchange.

The drop is being blamed both on declining prices for troubled newspaper companies, and on bad news in particular for GateHouse:

Moody’s questioned management’s thinking in noting that Gatehouse Media was relying “upon proposed asset sales to provide financial flexibility.” The rating agency pointed out that the newspaper publisher had but $25 million in its pocket and all but $11 million of that was the remaining balance on a revolver line of credit that Moody’s says is doubtful its lender would permit Gatehouse to use.

“At the end of March 2008, GateHouse’s credit agreement-defined results provided the company with a modest 3% cushion within its total leverage financial ratio tests,” the Rating agency noted. “Moody’s considers it highly questionable whether GateHouse will be able to comply with this covenant test over the near term without the benefit of proceeds from asset sales or another equity cure from its largest shareholder.”

“Assett sales.” As in “selling the Journal Star,” not to mention any of the many GateHouse properties in Illinois.

No doubt any new buyer will demand their own cuts in personnel.

And like C.J. Summers, I’m not hopeful we are going to see any coverage of this in the Peoria Journal Star, or any other local media organization.

Media: Boycotting GateHouse, fighting back with blogging

Sunday, May 4th, 2008

The folks who are boycotting the Norwich (Connecticut) Bulletin are fighting back by offering news via hyper-local citizen journalism. The complaints? Censored and poorly edited letters to the editor, fact errors, ignoring legitimate news, boosterism in editorials.

My two cents: Some of the complaints seem to be of a partisan nature, which is fine. But you can’t offer an alternative to your hometown newspaper unless you also can produce the occasional piece of journalism of yoru own, beyond just commenting on the stuff you don’t like about the hometown newspaper. And THAT takes a bit more effort that sitting down at the keyboard once or twice a day.

Good luck, though.

Local: Monday morning linkage

Monday, March 31st, 2008

Here’s a start-of-the-work-week tour of the Blogosphere:

  • Long before GateHouse Media bought the Peoria Journal Star, I was writing about how Peoria’s only daily newspaper skewed its editorials and coverage to promote some local candidates at the expense of others (here’s one example, out of many). According to this site, another GateHouse newspaper is getting in on the act:

    Gatehouse Media, Rick Daniels’ boss – Michael E. Reed should change his company mantra from it’s all about you, to: It’s ALL ABOUT POWER, INFLUENCE & MONEY.

    Under Mr. Daniels leadership The Hingham Journal continues to ‘cleanse’ the Hingham news to fit its Editors’ image and likeness of what she wants residents to read. There has only been once, last year, during Ford’s regime she did not use journalistically-unethical influence to manipulate the outcome of town elections in Hingham.

  • It’s always a little slice of heaven when I see Peoria Journal Star articles running verbatim in newspapers as far away as West Frankfort. Ah, the joys of regional media monopolies in which virtually the entire state has to rely on the accuracy and fairness of one and only one reporter.
  • On the way in to work today, I heard Dr. Dean Edell complaining about how we’ve evolved from a nation founded by learned men who made decisions rationally to one in which politicians brag about how they don’t bother to read newspapers with all their inconvenient facts. Edell links this attitude to those foolish people who bad-mouth immunizations, while in places like Somalia they have finally eliminated polio through vaccination programs. So I’m a little disappointed at how C.J. Summers approvingly links to a quote from Ben Stein that complains about how scientists are responsible for Nazism and Communism.
  • Peoria Illinoisan makes good use of cut and paste in capturing for all eternity the sort of reader comments that the Journal Star doesn’t want to use on its YourPage.
  • Hat tip to Chase Ingersoll for sending me a link to a Slashdot article that links to this fantastic article in the New Yorker by Eric Alterman about how newspapers are coping with the growth of the Internet as a source of news. He discusses how online news/opinion sites like the Huffington Post are finding success with a “mullet”-like business-in-the-front, party-in-the-back approach. Specifically, the site hires good writers to put serious articles on the front page, but there’s plenty of reader-generated comments and posts as well that generate interest and links.

    Almost by accident, however, the owners of the Huffington Post had discovered a formula that capitalized on the problems confronting newspapers in the Internet era, and they are convinced that they are ready to reinvent the American newspaper. “Early on, we saw that the key to this enterprise was not aping Drudge,” Lerer recalls. “It was taking advantage of our community. And the key was to think of what we were doing through the community’s eyes.”

    On the Huffington Post, Peretti explains, news is not something handed down from above but “a shared enterprise between its producer and its consumer.” Echoing Murdoch, he says that the Internet offers editors “immediate information” about which stories interest readers, provoke comments, are shared with friends, and generate the greatest number of Web searches. An Internet-based news site, Peretti contends, is therefore “alive in a way that is impossible for paper and ink.”