Stock Review Report: New Media Investment Group Inc.’s (NYSE: NEWM)

On 10 Dec 18, New Media Investment Group Inc.’s (NYSE: NEWM) oscillated between $12.40 and $12.83 before concluding trading period lower/higher -1.10% at $12.61. The stock recorded total trading quantity of 542,989 shares as compared to its average volume of 466,512 shares. The firm has a total market worth of $59.10 million and $60.35 million shares remain outstanding.

New Media Investment Group Inc. (NEWM) recently stated its financial results for the third quarter ended September 30, 2018.

Third Quarter 2018 Financial Summary

  • New Media declares a cash dividend of $0.38 per ordinary share for the third quarter of 2018, an raise of $0.01 per ordinary share from the previous quarter
  • Total revenues of $380.4M, an raise of 19.9% to previous year on a stated basis, and down 4.8% on an organic same store basis not including, for comparability, the impact of ASC Topic 606º
  • Digital revenue of $46.6M, an raise of 31.3% to previous year on a stated basis
  • Operating income of $2.6M
  • Net loss attributable to New Media of $6.1M
  • As Adjusted EBITDA of $44.1M*
  • Free Cash Flow of $31.0M*
  • Liquidity, consisting of cash on the balance sheet and undrawn revolver, of $96.2M at the close of THIRD QUARTER 2018

Third Quarter 2018 & Subsequent Business Highlights

  • Closed the acquisition of a majority interest in Rugged Events Holding, LLC (“Rugged Events”) for $10.4M on August 15, 2018
  • Closed the acquisition of The Oklahoman in Oklahoma City, OK for $12.5M on October 1, 2018
  • Hurricane Florence affected several properties in North Carolina, which we estimate resulted in about $1M loss in both revenue and As Adjusted EBITDA within the third quarter. Subsequent to the quarter, Hurricane Michael also influenced several of our Florida properties.
  • UpCurve, our small and medium business (“SMB”) solutions platform, achieved $25.5M in revenue for the quarter, a 42.1% raise to the same quarter in the previous year. Not Including the $1.5M impact of ASC Topic 606, UpCurve revenue growth was up 50.6% contrast to previous year.º
  • GateHouse Live and Promotions achieved $11.4M in revenue, a 68.5% raise to the previous year

Third Quarter 2018 Financial Results

  • New Media recorded total revenues of $380.4M for the quarter, up 19.9% to the previous year, and down 4.8% on an organic same store basis, not including the $1.5M impact of ASC Topic 606. This is a 10bps improvement over our second quarter organic same store revenue performance. Hurricane Florence affected several of our North Carolina locations, which we estimate resulted in about $1.0M loss in both revenue and As Adjusted EBTIDA within the third quarter. Traditional Print advertising revenue reduced 13.8% on an organic same store basis. Over the past five quarters, this trend has held stable, declining in a 12-14% range.
  • Digital revenue raised 31.3% on a stated basis from the previous year to $46.6M, or grew 35.5% not including the $1.5M impact of ASC Topic 606. UpCurve generated $25.5M in revenue, an raise of 42.1% to the previous year on a stated basis. Not Including the $1.5M impact of ASC Topic 606, UpCurve performance raised 50.6% to the previous year.

Third Quarter 2018 Dividend

  • New Media’s Board of Directors reported a third quarter 2018 cash dividend of $0.38 per share of ordinary stock. The dividend is payable on November 20, 2018 to shareholders of record as of the close of business on November 12, 2018.
  • The declaration and payment of any dividends are at the sole discretion of the Board of Directors, which may decide to change the Company’s dividend policy at any time.

Analyst recommendation for this stock stands at 3.00. The P/E ratio was recorded at 25.12.The volatility in the previous week has experienced by 2.83% and observed of 2.34% in the previous month.91.40% ownership is held by institutional investors while insiders hold ownership of 1.10%.

Leave a Reply

Your email address will not be published. Required fields are marked *