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Financial losses continue for Bonita-based magazine distributor
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BONITA SPRINGS — Bonita Springs-based Source Interlink Cos. Inc. had another disappointing quarter.
The magazine distributor and entertainment merchandiser reported a loss of $15.9 million, or 30 cents a share, in the second quarter. That compared to profits of $2.4 million, or 4 cents a share, a year ago.
“Our second quarter results were definitely tempered by the current economic environment,” said Michael R. Duckworth, the company’s chairman, in a conference call on Thursday.
Source is still struggling because of a challenging environment for selling ads and a slow down in newsstand sales.
“Weakness in the (print) advertising markets accelerated in the second quarter, particularly in the automotive and marine segments,” Duckworth said.
In its Media Segment, which publishes more than 75 magazines for automotive fans and other “enthusiasts” and operates dozens of related Web sites, advertising revenue was down by about $13.8 million, or 16.7 percent.
Adjusted earnings were $5.4 million, or 10 cents a share, up from $4.7 million, or 9 cents a share, a year ago.
In a tough economy, the company has cut its outlook for the year.
In the second quarter, the company had revenues of $577.5 million, up more than 30 percent from $434.1 million a year ago.
The company continues to cut costs and look for other efficiencies to boost its revenues. Meanwhile, it continues to strike new distribution deals for magazines, books, CDs and DVDs.
“While the current conditions are difficult, we believe our strategies remain intact and business fundamentals remain strong,” Duckworth said.
Earnings were released after market close.
On Thursday, shares closed up 8 cents at $1.34 on Nasdaq. They dropped more than 6 percent in after-market trading.
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yikes swampforu2, thanx for the update.
#1 Posted by beetlejuice on September 5, 2008 at 1:50 a.m. (Suggest removal)
Thanks for helping Laura out, swamp4u2.
Lord knows, even if she'd been aware of this salient fact she might not have figured out a way to include it in her story.
#2 Posted by elnuestros on September 5, 2008 at 1:51 a.m. (Suggest removal)
Who has time to read magazines anymore? Who wants to dig through all those ads to find an interesting article and have 15 subscription offer cards fall out on the floor from every issue?
There's such a glut of magazines too.
Then there's all that paper to recycle.
#3 Posted by Bramble on September 5, 2008 at 4:32 a.m. (Suggest removal)
Did they close their Buggy Whip Manufacturing Division?
#4 Posted by YearRoundResident on September 5, 2008 at 9:24 a.m. (Suggest removal)
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