TV Belo cuts

Belo the TV company is now much more cousin than sibling to the DMN, but a reader passes this along:

They did layoffs at TXCN yesterday, a total of 11 people, mostly in production.

Whistling past the graveyard

While we wait for the inevitable.
It has come to me that some of you don't get my Spartacus reference. Too highbrow? Pepsi used it for a Super Bowl ad a couple of years ago, so how smart can it be?


I'm Spartacus - video powered by Metacafe

Here's the original:



(And yes, I know there isn't what you'd call a happy ending to the story...:) )

Not this week

The staff just got the following terse e-mail from Jim Moroney:

Subject: Reduction-In-Force

You were informed previously that the reduction-in-force would be
completed by March 27. I wanted to let you know that the action has
been delayed to allow additional time to complete the necessary work.

I appreciate your patience.

Jim

Somebody thinks AH Belo is a good value

A reader sent us this:

http://www.sec.gov/Archives/edgar/data/1413898/000115752309002062/a5916681.txt

Brian Ferguson and a couple of West Texas companies just bought a 7% stake in AH Belo shares. These are the guys who negotiated to buy Rocky Mtn News, but didn't close the deal.

How I plan to handle D Day here

What's happening in Houston today and tomorrow is a reminder that ours is coming. Here's what I'm planning to do on the day.

1) I'll be at work and I do not post on company computers, so do not expect live updates. I do have other resources, though, so I'll try to provide information as I can. (If I'm laid off, I'll be able to blog from home, of course.)

2) I will need help. I'm sure some of you will be keeping lists. What I would like are breakdowns: How many people from each department. And categories of people cut -- reporter, copy editor, photographer, line editor, etc...If you have a list and are willing to share, e-mail it to me.

3) If you are laid off and are willing to have your name posted, send me an e-mail along with any contact information or thoughts you want to share. I do not plan to post names from people who have not given permission. People have been hurt by that happening after previous layoffs.

If anybody has a suggestion about this, send me a note or post a comment.

Layoffs in Houston today

Many of us have friends there so I'm posting here.

Layoffs have begun today at the Houston Chronicle. Incredibly, it will
take them two days to do it.
The Houston Press is blogging about it.
http://blogs.houstonpress.com/hairballs/2009/03/at_the_chron_where_you_going_w.php

About AH Belo and EBITDA

A commenter has posted this and I thought it needed it's own posting.
Is this person correct? Read for yourself:

While I am not an expert in corporate finance, I am concerned about AHBelo's cash flow and its loan obligations to its lenders.

The information I am going to refer to is in the company's annualreport (10-k report), available on the web at http://phx.corporate-ir.net/phoenix.zhtml?c=219524&p=irol-sec

Here is a summary of that it says regarding its credit arrangements with the banks:

-- On February 4, 2008, the Company entered into a $100 million credit agreement with JP Morgan Chase Bank, J.P. Morgan Securities, Banc of America Securities and Bank of America. At that time the company had no debt.
-- As of September 30, 2008, the Company was not in compliance with the credit agreement. The company has used $10 million of its line of credit.
-- During the fourth quarter of 2008, the Company's bank group approved an amendment credit agreement. (In part reducing the line of credit to $50 million.)
-- On January 30, 2009, the Company amended its credit agreement again. Among other matters, the amended credit document creates a line of credit secured by the Company's accounts receivable, inventory, real property and other assets; and sets earning benchmarks that the company must meet.

Under the credit agreement the Company must meet the minimum adjusted EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) as outlined below:

For the six months ended March 31, 2009: -$4,000,000 (a negative number)

For the nine months ended June 30, 2009: $6,500,000

For the 12 months ended September 30, 2009: $15,000,000

For the 12 months ended December 31, 2009: $22,500,000

The key question is whether the company and meet these benchmarks. If it doesn't, several things could occur:
-- AH Belo renegotiates its credit agreement
-- The banks foreclose on AH Belo's property
-- The company goes into bankruptcy

My question: How realistic is it that AHBelo will meet any of those goals? Do we hit the wall at the end of the month?

Hoping for this RIF to pass over?

A religiously aware reader points out that the Jewish holiday of Passover starts sundown Wednesday April 8, which may or may not be around the time the layoffs happen. Our reader directs us to the book of Exodus for how the Hebrews managed their escape:

12:22 And ye shall take a bunch of hyssop, and dip it in the blood that is in the bason, and strike the lintel and the two side posts with the blood that is in the bason; and none of you shall go out at the door of his house until the morning.

12:23 For the LORD will pass through to smite the Egyptians; and when he seeth the blood upon the lintel, and on the two side posts, the LORD will pass over the door, and will not suffer the destroyer to come in unto your houses to smite you.

Dallas job opportunity

A former DMN-er and a friend to many of us, Steve Kenny, sends us this:

This just moved Friday on the Northwestern University group at LinkedIn, and I thought it might be worth posting. It's from Robert R. Frump, editorial director of Clark Consulting.


I'm looking for two senior financial writers with editorial and promotional and DM, plus web writing skills. Dallas area location. ABout 10 -12 years career experience preferred.

http://www.clarkconsulting.futurestep.com/Opportunities

A note to DMN staffers who are not in the newsroom departments

A comment to an earlier post noted that the newsroom is not the only department facing cuts. The limited scope of this blog intends no slight to those other departments. It's all I can do to try to get information on the editorial operation. If someone from another department wants to set up a blog, send me an e-mail and I'll be pleased to share what I think I know about how one should do this. The technology is simple. But there are issues to be aware of.