NEW YORK--(BUSINESS WIRE)--New Media Investment Group Inc., (“New Media” or the “Company”; NYSE:NEWM), announced today that it acquired the Victorville Daily Press along with other publications and related assets from Freedom Communications for a purchase price of $8.0 million. The publications are located in and around Victorville, California with a circulation of about 50,000.
“This is the first acquisition by New Media,” said Mike Reed, Chief Executive Officer of New Media. “The Victorville Daily Press and related publications meet the criteria we look for in an acquisition, including market size, a solid retail base, the opportunity to leverage New Media’s infrastructure to grow digital revenue and our financial criteria. With revenue of about $12.5 million and operating margins before depreciation and amortization of slightly more than 20%, we expect the transaction to be immediately accretive to our results.”
Kirk Davis, Chief Operating Officer of New Media, added, “I am thrilled that the Victorville publications will be part of New Media. This is a strong local franchise with a long history as the primary source of news and information serving the local communities. We are excited to work with the Victorville team and look forward to enhancing the partnership they have with their communities.”
About New Media Investment Group Inc.
New Media is focused primarily on investing in a high quality, diversified portfolio of local media assets, and on growing existing advertising and digital marketing businesses. The Company is one of the largest publishers of locally based print and online media in the United States as measured by number of daily publications. The Company operates in 338 markets across 24 states. New Media’s portfolio of products, which includes 435 community publications, 353 related websites, and six yellow page directories, serves more than 128,000 business advertising accounts and reaches approximately 10 million people on a weekly basis.
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to various risks and uncertainties, including without limitation, statements relating to progress made by New Media in its integration efforts, growth in revenues and cash flow, on-line revenues, expense reduction efforts and potential acquisition and sale opportunities. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "would," "project," "predict," "continue" or other similar words or expressions. Forward looking statements are based on certain assumptions or estimates, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. New Media’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Although New Media believes that the expectations reflected in such forward looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Factors which could have a material adverse effect on New Media’s operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to, the condition of the economy and the credit markets generally, New Media’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt, New Media’s ability to maintain debt covenants, New Media’s ability to successfully grow digital revenues and audience and consumer revenues, New Media’s ability to successfully stabilize print revenues, the ability of New Media to successfully identify and develop new business ventures, New Media’s ability to close on a timely basis upon announced or contemplated transactions, unexpected liabilities arising from any transaction or that New Media will not receive the expected benefits from the transaction, New Media’s ability to generate sufficient cash flow to cover required interest and long-term obligations, the effect of New Media’s indebtedness and long-term obligations on its liquidity, New Media’s ability to integrate acquired assets and businesses, any increases in the price or reduction in the availability of newsprint, seasonal and other fluctuations affecting New Media’s revenues and operating results, any declines in circulation, New Media’s ability to obtain additional capital on terms acceptable to it, New Media’s ability to compete effectively in the local media industry, New Media’s success or failure in pursuing its digital business and related initiatives and strategic realignments and undertakings, increases in health costs, New Media’s vulnerability to economic downturns, regulatory changes or acts of nature in certain geographic areas, increases in competition for skilled personnel, a portion of New Media’s workforce being unionized, departure of key officers, increases in market interest rates, the cost and difficulty of complying with increasing and evolving regulation, and other risks detailed from time to time in New Media’s Securities and Exchange Commission (“SEC”) filings. When considering forward- looking statements, readers should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are also cautioned not to place undue reliance on any of these forward-looking statements, which reflect management's views as of the date of this press release. The factors discussed above and the other factors noted in New Media’s SEC filings could cause actual results to differ significantly from those contained in any forward-looking statement. Although New Media believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements and expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.