Integration of Columbus Cluster Progressing On Track DALLAS, Aug.
13 /PRNewswire-FirstCall/ -- American Community Newspapers Inc.
(Amex: CRB; CRB.U; CRB.WS) ("ACN") today provided operating results
for its recently acquired operating business, American Community
Newspapers LLC, for the second quarter ended July 1, 2007. The
results presented in this release, which are limited to American
Community Newspapers LLC's operations, are presented for
informational purposes and are not included in the financial
statements of the Company for the period ended June 30, 2007. On
July 2, 2007, Courtside Acquisition Corp. (now known as American
Community Newspapers Inc.) acquired the assets of American
Community Newspapers LLC. Separately, on April 30, 2007, American
Community Newspapers LLC acquired the Columbus, Ohio community
newspaper cluster. Therefore, the results included in this release
include the results of operations of the Columbus cluster since the
date of acquisition by American Community Newspapers LLC in the
2007 second quarter. 2007 Second Quarter Highlights: -- Total
revenue was $18.1 million, up 24.9% from total revenue of $14.5
million in the prior year quarter, driven primarily by the
contribution of the Columbus cluster, acquired during the quarter.
-- Advertising revenue increased 23.1% to $17.0 million from the
second quarter of 2006. -- EBITDA was $5.0 million, up 28.6% from
the prior year quarter. -- Newspaper cash flow, which is defined as
EBITDA before corporate expenses, was $5.4 million, up 25.7%
year-over-year. -- On a same property basis, which excludes the
impact of the Columbus acquisition, total revenue for the quarter
decreased 2.8%, newspaper cash flow increased 6.6% and EBITDA
increased 7.6% from a year ago. -- Second quarter revenue was
consistent with, and EBITDA exceeded, the outlook Courtside offered
in May of performance generally in line with the second quarter of
2006, excluding the contribution from the Columbus cluster.
Selected Financial Information - Unaudited Three Months Ended Six
Months Ended July 1, July 2, July 1, July 2, ($000s) 2007 2006 2007
2006 Revenues: Advertising $17,038 $13,843 $28,852 $23,793
Circulation 611 466 1,081 950 Commercial printing and other 500 224
717 428 Total revenue 18,149 14,533 30,650 25,171 Operating costs
and expenses: Operating costs 7,584 5,927 13,118 10,577 Selling,
general and administrative 5,181 4,323 9,237 7,915 Newspaper cash
flow 5,384 4,283 8,295 6,679 Corporate expense 344 363 768 760
EBITDA $5,040 $3,920 $7,527 $5,919 "The Company realized several
significant achievements to date in 2007 that position us for
margin expansion in the second half of the year," said Gene Carr,
Chairman and Chief Executive Officer of ACN. "Year to date, we
entered the public marketplace through our acquisition by Courtside
Acquisition Corp., completed the purchase of our fourth community
newspaper cluster, and continued to execute on our long-term growth
strategy and carefully manage our business." Mr. Carr continued,
"EBITDA grew to $5.0 million, outpacing the industry as a whole,
despite a generally soft ad revenue environment. We expect to
further expand EBITDA margins in the second half of 2007 as we
continue to integrate the Columbus cluster. The majority of cost
savings have yet to be realized from the Columbus cluster, as we
began implementing the most significant of our expense savings
initiatives at the beginning of the third quarter. Additionally, we
recently restructured the cluster's management team and sales force
-- greatly improving and streamlining the advertising sales
process." Internet advertising revenues increased 48.1%
year-over-year in the 2007 second quarter. ACN newspaper Web sites
generated 4.4 million page views and had 1.2 million unique users
during the month of June. ACN's 100 print products had a total
circulation of 1.4 million in the 2007 second quarter. ACN has a
free, controlled-distribution model for most of its print products,
with circulation accounting for just 3.4% of total Company revenues
in the period. Mr. Carr concluded, "At ACN, we will continue to
execute on our strategy of pursuing organic growth, including the
launch of new in-market publications, tuck-in acquisitions, and
entry into new, attractive suburban markets through the acquisition
of new stand-alone clusters. The overall strength of our
publications is demonstrated by our pool of new and repeat
advertisers and the quality of our readership." Conference Call
& Webcast ACN will host a conference call at 4:30 p.m. ET today
to discuss 2007 second quarter operating results. Investors can
access the conference call via a live webcast on the company's
website, http://www.acnpapers.com/, or by dialing 888- 823-3991
(U.S.) or 706-643-3947 (International), passcode 12217276. A
webcast replay will be archived on the company's Web site.
Additionally, a replay of the call will be available by dialing
800-642-1687 (U.S.) or 706- 645-9291 (International), passcode
12217276, through Friday, August 17, 2007. About American Community
Newspapers Inc. ACN is a community newspaper publisher in the
United States, operating within four major U.S. markets:
Minneapolis - St. Paul, Dallas, Northern Virginia (suburban
Washington, D.C.) and Columbus, Ohio. These markets are some of the
most affluent, high growth markets in the United States, with ACN
strategically positioned in the wealthiest counties within each
market. ACN's goal is to be the preeminent provider of local
content and advertising in any market its serves. In these markets,
ACN publishes three daily and 83 weekly newspapers, each serving a
specific community, and 14 niche publications, with a combined
circulation of approximately 1.4 million households. In addition,
ACN's locally focused websites have average monthly page views and
visitors of approximately 4.4 million and 1.2 million,
respectively, extending the reach and frequency of its products
beyond their geographic print distribution area. Forward-Looking
Statements This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act,
with respect to ACN's future financial or business performance,
strategies and expectations. Forward- looking statements are
typically identified by words or phrases such as "trend,"
"potential," "opportunity," "pipeline," "believe," "comfortable,"
"expect," "anticipate," "current," "intention," "estimate,"
"position," "assume," "outlook," "continue," "remain," "maintain,"
"sustain," " seek, " "achieve," and similar expressions, or future
or conditional verbs such as "will," " would," "should," "could,"
"may" and similar expressions. Non-GAAP Financial Measures This
press release includes the following financial information defined
as non-GAAP financial measures by the Securities and Exchange
Commission: EBITDA and Newspaper Cash Flow. These measures may be
different from non-GAAP financial measures used by other companies.
The presentation of this financial information is not intended to
be considered in isolation or as a substitute for financial
information prepared and presented in accordance with generally
accepted accounting principles. ACN believes that the presentation
of these non-GAAP measures provides information that is useful to
investors as it indicates more clearly the ability of ACN to meet
capital expenditures and working capital requirements and otherwise
meet its obligations as they become due. ACN's EBITDA was derived
by taking earnings before interest, taxes, depreciation and
amortization as adjusted for discontinued operations and certain
one-time non-recurring items and exclusions. ACN's Newspaper Cash
Flow was derived by taking earnings before interest, taxes,
depreciation and amortization as adjusted for corporate expenses,
discontinued operations and certain one-time non-recurring items
and exclusions. See the following "Reconciliation of net income to
EBITDA" and "Reconciliation of net income to Newspaper Cash Flow"
tables for further information regarding these non-GAAP financial
measures. Reconciliation of Net Income to EBITDA - Unaudited
($000s) Three Months Ended Six Months Ended July 1, July 2, July 1,
July 2, 2007 2006 2007 2006 Net income $1,860 $1,697 $2,235 $1,731
State taxes (non income) - 45 - 45 Interest expense 2,072 1,288
3,308 2,461 Depreciation and amortization 1,108 890 1,984 1,682
EBITDA $5,040 $3,920 $7,527 $5,919 Reconciliation of Net Income to
Newspaper Cash Flow - Unaudited ($000s) Three Months Ended Six
Months Ended July 1, July 2, July 1, July 2, 2007 2006 2007 2006
Net income $1,860 $1,697 $2,235 $1,731 State taxes (non income) -
45 - 45 Interest expense 2,072 1,288 3,308 2,461 Depreciation and
amortization 1,108 890 1,984 1,682 Corporate expense 344 363 768
760 Newspaper Cash Flow $5,384 $4,283 $8,295 $6,679 DATASOURCE:
American Community Newspapers Inc. CONTACT: Dan Wilson of American
Community Newspapers, +1-972-628-4082, ; or Investors, Corey
Kinger, , or Media, Joe LoBello, , both of Brainerd Communicators,
+1-212-986-6667 Web site: http://www.acnpapers.com/
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