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Glacier profit squeezed by acquisitions

Newspaper publisher Glacier Media Inc. said its profit margins had been squeezed by community papers acquired last year from Postmedia. The Vancouver-based company's net income fell to $5.

Newspaper publisher Glacier Media Inc. said its profit margins had been squeezed by community papers acquired last year from Postmedia.

The Vancouver-based company's net income fell to $5.3 million, or six cents per share, in the third quarter, down from $7 million or eight cents per share a year earlier, before the deal with Postmedia.

Revenue increased, however, due largely to the addition of the Times Colonist and other former Postmedia papers starting in November as well as growth at Glacier's business and trade information operations.

Glacier Media's total revenue was $91.4 million, up from $71.7 million in the second quarter of 2011. Comparing assets that Glacier has owned for at least a year, consolidated revenue was relatively flat.

Glacier's consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) was $17.1 million, up 12.1 per cent from $15.3 million a year earlier.

Glacier said its consolidated EBITDA margin decreased to 18.7 per cent for the quarter from 21.3 per cent for the same quarter last year as a result of the lower margins of the Postmedia assets acquired.

"Management will seek to improve the margins and profit performance of the assets acquired through improved print and digital sales effectiveness, cost efficiency and other initiatives," the company said.

GVIC Communication Corp., a related company, reported separately that it had $5.2 million, or 1.7 cents per share, of net income attributable to shareholders with $91.4 million of revenue.

A year earlier, GVIC had $71.7 million of revenue and $7.7 million, or 2.6 cents per share, of net income attributable to common shareholders.

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