AMI Revenue Dips 2% During First Quarter
Reports $500,000 net income, eliminates 132 jobs in 15 months.
Right: AMI president David Pecker
American Media Inc.â€™s estimated fiscal first quarter 2009 operating revenue was $118.8 million, down 2 percent from $121.1 million over the same period in 2008, the company reported today. The celebrity and fitness magazine publisher reported $500,000 in net income, up from a $100,000 net loss during the same period last year.
AMI attributed the dip in revenue to soft advertising revenue and â€śeconomic pressures.â€ť Bank EBITDA for the fiscal first quarter was down 9 percent to $33.3 million, from $36.4 million during the same period last year.
AMI also reported that between March 2006 and June 2008, the company eliminated 132 positions (from 877 to 745), a 15.1 percent workforce reduction.
Last month, AMI reported its fiscal 2008 revenue was $491 million, up about 4 percent over 2007.
Exploring Strategic Alternatives
According to the companyâ€™s 10-K filed on June 30, AMI is looking to refinance $389.5 million of one of its loans by February, and $145.5 million on another by 2010.
AMI said it also is exploring strategic alternatives, including a restructuring, to deal with its debt.
Operating income for fiscal 2008 was $67 million, as compared to a $254 million loss over 2007. AMI attributed its year-end revenue increase to ad revenue gains at Shape, Star and Menâ€™s Fitness magazines.
According to the publisher, Starâ€™s ad pages spiked by 21.5 percent in fiscal 2008, Menâ€™s Fitness increased pages by 13.2 percent, and Shapeâ€™s were up 10.5 percent.