Primedia Reports Profit for 2Q; Performs Reverse Stock Split
Primedia Inc. reported profit of $7.6 million for the second quarter of the year and revenue of $81.6 million, up slightly from $81.3 million. The loss from continuing operations dropped to $11.1 million, down from $19 million in the second quarter of 2006.
Primedia’s line of free consumer guides remains its primary business and the company is in the process of relocating its headquarters from New York City to Atlanta, where its Consumer Source business is based.
On the heels of the completion of the $1.2 billion sale of its enthusiast media division to Source Interlink last week, Primedia effected a 1-for-6 reverse stock split of its common stock in which the number of outstanding shares have become one-sixth of their prior amount and the par value remains $0.01 per share. “The primary purpose of this reverse stock split is to make the company’s common stock purchasable by investors that require investments to have a share price above $10 per share at their time of investment,” the company says in a statement.
Primedia also entered a credit agreement with a variety of lenders with aggregate commitments of approximately $100 million (maturing on Aug. 1, 2013) and a Term Loan B credit facility with an aggregate principal amount of $250 million, which matures on Aug. 1, 2014.
Meanwhile, Primedia named Robert Metz as its new president and CEO, effective Sept. 1. He replaces Dean Nelson, who will remain as chairman.