This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

AP Revenue Declines Slow In 2011; Seen Up In 2012

Also at the meeting on Tuesday, the AP board added six members, re-elected three and saw three leave. It now has 19 board members, who serve in staggered three-year terms.

The new board members are Rich Boehne, CEO of The E.W. Scripps Company; Stacey Cowles, publisher of The Spokesman-Review; John Winn Miller, publisher of the Concord Monitor; Robin McKinney Martin, owner of the Santa Fe New Mexican; Jim Moroney, publisher of The Dallas Morning News; and Bill Nutting, vice president of Ogden Newspapers Inc.

The AP's finances have suffered in recent years largely because of the financial pressures many of its member newspapers are under. Newspapers have been hit hard by declines in advertising revenue. As a result, the AP has cut the fees it charges newspapers.

Under accounting guidelines established by the Financial Accounting Standards Board, a company that has a cumulative loss over a three-year period must establish a reserve against the future tax benefits of those losses that it carries on its balance sheet. Those tax benefits on the AP's books were $168 million. Although the AP is optimistic that it will be able to realize the tax benefits in the future, the accounting rules dictate that a charge had to be taken, Dale said.

This has become standard practice in corporate finance, as accounting firms force companies to take the most conservative view of the value of such assets.

Dale said the charge had no impact on operations, adding they held up well considering the U.S. newspaper business continued to face declines in print advertising revenue. Fees from newspapers account for about a fifth of the AP's revenue, roughly the same amount it gets from online media outlets.

AP was able to control costs in 2011, even as it poured resources into news coverage of the Arab Spring revolts in the Middle East, Japan's earthquake and tsunami, Hurricane Irene and the royal wedding in Britain.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,960.43 +247.77 1.40%
S&P 500 2,081.59 +20.57 1.00%
NASDAQ 4,930.1680 +38.9490 0.80%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs