Cronkite City Chronicle
| (in 000s) | 2005 | 2012 | 2013 | 2014 | 2015 |
| Revenue: | |||||
| Adv Sales | $14,000 | $11,500 | $10,500 | $9,000 | $7,500 |
| Circ | 2100 | 1725 | 1575 | 1800 | 1810 |
| Total Rev | $16,100 | $13,225 | $12,075 | $10,800 | $9,310 |
| Operating | |||||
| Expense: | |||||
| Prod/Pres | 1,000 | 1,200 | 1,100 | 1,050 | 1,075 |
| Nwprt | 1,800 | 2,200 | 2,300 | 1,800 | 1,850 |
| Editorial | 3,000 | 3,200 | 2,750 | 2,450 | 2,400 |
| Circulation | 650 | 625 | 600 | 625 | 675 |
| Sales | 450 | 350 | 325 | 375 | 400 |
| Info Tech | 20 | 120 | 200 | 300 | 350 |
| Promo | 300 | 350 | 250 | 150 | 50 |
| Total Dept | 7,220 | 8,045 | 7,525 | 6,750 | 6,800 |
| Gen&Admin: | |||||
| Admin | 1,500 | 1,200 | 1,400 | 1,200 | 1,350 |
| Insurance | 200 | 225 | 250 | 350 | 400 |
| Utilities | 25 | 25 | 25 | 25 | 25 |
| Rents | 50 | 50 | 50 | 40 | 35 |
| Tot G&A | 1,775 | 1,500 | 1,725 | 1,615 | 1,810 |
| Total Operating Exp | $8,995 | $9,545 | $9,250 | $8,365 | $8,610 |
| Net Operating Profit EBITDA | |||||
| $7,105 | $3,680 | $2,825 | $2,435 | $700 | |
| ROS | 44% | 28% | 23% | 23% | 8% |
| Non-Operating Exp | |||||
| Interst Ex | 120 | 100 | 250 | 450 | 500 |
| Deprec | 40 | 40 | 150 | 150 | 150 |
| Total | 160 | 140 | 400 | 600 | 650 |
| Taxable Income | |||||
| 6,945 | 3,540 | 2,425 | 1,835 | 50 | |
| less tax | 3125.25 | 1593 | 1212.5 | 917.5 | 25 |
| Earnings after tax | $3,820 | $1,947 | $1,213 | $918 | $25 |
| Plus depreciation | $3,860 | $1,987 | $1,363 | $1,068 | $175 |
| EPS (100,000 shrs) | 38.60 | 19.87 | 13.63 | 10.68 | 1.75 |
| P/E | 10 | 6 | 4 | 4 | 3 |
| Share Price | $385.98 | $119.22 | $54.50 | $42.70 | $5.25 |
Questions:
- Would you invest in this company?
- What about holding EPS steady even though revenues are down?
- Can you reduce editorial staff and still retain readers? Why?
- What if your company had to invest in new circulation equipment?
- Can you cut commissions in difficult times and sustain sales?