New Media Investment Group Turns To Profit In Q1; To Buy Journal Multimedia

(RTTNews) - New Media Investment Group Inc. (NEWM) reported a turnaround to profit in the first quarter on double-digit revenue growth. Earnings per share for the quarter beat analysts' estimates, while revenues missed their estimates.

For the first quarter, the company's net income was $4.97 million or $0.11 per share, compared to net loss of $6.07 million or $0.14 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to earn $0.03 per share for the year. Analysts' estimates typically exclude special items.

Total revenues for the quarter rose 19.7 percent to $300.10 million from $250.62 million in the year-ago quarter. Analysts had a consensus revenue estimate of $300.66 million. However, revenue decreased 5.1 percent on a same store basis.

New Media's board of directors declared a first-quarter 2016 cash dividend of $0.33 per share of common stock. The dividend is payable on May 19, 2016 to shareholders of record as of the close of business on May 11, 2016.

Subsequent to the end of the quarter, New Media also reached an agreement to acquire substantially all of the assets of Journal Multimedia, a multi-title publisher of business journals, trade and consumer magazines, digital products, and a research and events division for $18.0 million in cash.

The company noted that acquisition will enable it to further build out the B2B media business it created with the acquisition of Dolan in early first quarter.

New Media anticipates the Journal Multimedia deal will close in the second quarter of 2016. However, the company noted that there can be no assurance as to the timing or the occurrence of the closing.