Organic growth and strategic acquisitions in 2008 helped boost Vancouver-based Glacier Media Inc.'s (TSX:GVC) annual revenue by 15% for the year ending December 31, 2008.
Annual revenue rose to $249.1 million from $216.4 million and consolidated annual cash flow from its various media operations increased 15.1% to $44.4 million from $38.6 million.
Net income declined 7% to $28.3 million, primarily as a result of a non-recurring settlement expense of $6.3 million that was paid subsequent to the year-end. The charge related to Glacier's purchase of Hollinger Canada assets in 2006.
On a normalized basis, net income rose 12.7% to $34.5 million from $30.6 million.
The company, which publishes more than 200 titles in more than 20 business niche markets, completed $46.4 million in acquisitions in 2008. The acquisitions included community newspapers in Western Canada and agricultural, energy and other trade information businesses. Coupled with a variety of sales initiatives, they improved the company's revenue in its local and multi-market advertising, as well as online and information sales.
The company, which is the parent of Business in Vancouver Media Group, said it's continuing to improve content quality and design and plans to leverage and monetize its content through print, online and electric information development.
Unlike some of the factors affecting publishers of large metropolitan daily newspapers, Glacier said its local daily and weekly community papers remain the primary source of local information for readers and continue to enjoy high readership. The company added that its publications remain the main marketing channel for local and regional advertisers with paid subscription, national advertising and classified revenue representing only a small percentage of Glacier's overall revenue.
However, the economy eroded fourth-quarter revenue and continues to affect the company in 2009's first quarter. The company said it expects to maintain sufficient levels of profitability given some areas of its business, such as agricultural and trade information, remain resilient to the recession.
The company implemented cost reductions in the beginning of 2008 that helped boost profitability. But other measures, including staff layoffs and reduced hours for part-time employees, are also being implemented to offset the recession's impact. The company said it's reducing costs in stages when necessary instead of making deep initial cuts to avoid weakening the operational strength of its businesses.
Glacier's share price range during the past week: between $1.67 and $1.80; 52-week high: $4.35; 52-week low: $1.49.