MFM/BCCA Annual Conference
Atlanta, GA
May 16, 2011
Bond & Pecaro, Inc.
1920 N St., NW – Suite 350
Washington, DC 20036
(202) 775-8870
www.bondpecaro.com
Panelists
 John S. Sanders, Principal, Bond & Pecaro, Inc.
 Gary M. Greene, Managing Director, Cribb, Greene &
Associates
 Frank J. Grueter, Jr., III, Senior Vice President, Publishing
Group, Citizen’s Bank
 Nancy Trillo, Vice President – Enterprise Finance,
Controller, and Treasurer, Freedom Communications, Inc.
6/28/2016
2
’00-’10 Reasonably
Expected CAGR :
5.0%
’95-’00 CAGR:
6.5%
’00-’10 Reasonably
Expected CAGR :
5.0%
’95-’00
CAGR: 6.5%
’00-’10 CAGR: 5.4%
Comparative Operating Performance and
Valuations – 2010 to 2011
(Dollars in Thousands)
Year Ending March 30, 2010
Revenue
McClatchy
Lee
New York
Times
Daily Journal
A. H. Belo
Recurring
EBITDA
$1,411.5
$413.1
795.1
Year Ending March 30, 2011
Enterprise EBITDA
Margin
Value Multiple
Recurring
Enterprise EBITDA
Revenue EBITDA Margin
Value
Multiple
29.3% $2,236.0
5.4
$1,343.3
$382.5
28.5%
$1,971.0
5.2
180.9
22.8%
1,269.0
7.0
771.4
177.5
23.0%
1,123.0
6.3
2,424.2
398.9
16.5%
2,296.0
5.8
2,372.1
365.6
15.4%
2,244.0
6.1
39.9
13.4
33.6%
94.0
7.0
34.5
12.0
34.8%
96.0
8.0
505.6
46.3
9.2%
107.0
2.3
483.7
35.4
7.3%
128.0
3.6
$5,176.3
$1,052.6
20.3% $6,002.0
5.7
$5,005.0
$973.0
19.4%
$5,562.0
5.7
-3.3%
-7.6%
-7.3%
0.3%
Percent
Change
6/28/2016
.
Current Newspaper Valuation Issues
 Market Turbulence Has Caused a Multitude of Valuation Issues
 Economic Decision-making and Transaction Analysis (debt/equity
swaps, financings, etc.)
 ASC 350 (Formerly FAS 142) Impairment Testing
 ASC 360 (Formerly FAS 144) Long-Lived Assets Including Tangibles
 ASC 805 (Formerly FAS 141) Business Combinations
 Property Tax Valuations
 Fresh Start Accounting
 Sec. 1031 Like Kind Exchanges and Ongoing IRS Controversy
Regarding Masthead Valuation
 IRC 409A Appraisals in connection with stock options and deferred
compensation
 Employee Stock Ownership Plans (ESOPs) – Dept. of Labor
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MFM/BCCA Annual Conference
Atlanta, GA
May 16, 2011
Bond & Pecaro, Inc.
1920 N St., NW – Suite 350
Washington, DC 20036
(202) 775-8870
www.bondpecaro.com