GateHouse CEO: Small-market papers undervalued
By Alexandra Zeumer, Friday 9 May 2008 at 22:35 :: Newspaper Data :: #1642 :: rss
Lower valuations for U.S. metro dailies have unfairly led to lower prices of small-market papers, according to the CEO of community newspaper publisher GateHouse Media Inc., Editor & Publisher reported Friday.
Newspapers' market valuations have “spilled too much into the small-market newspaper industry,” CEO Michael E. Reed said in a conference call with analysts. “What that means is there’s a fantastic opportunity in that space.”
GateHouse is dealing with its own large long-term debt, which was at around US$1.2 billion in the first quarter, and Reed said the company's leverage ratio of about 6.3 times assets complies with bank agreements, E&P reported.
Although Reed did not mention more acquisitions, he said the company's chain of more than 100 dailies will examine “opportunities that are accretive and good for shareholders.” He also recommended that GateHouse use its free cash flow in order to buy back its low stock, according to E&P.
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