SEEING RED: American Media Inc. delivered on its promise of reporting its March 31, 2007 fiscal earnings by Aug. 31. And while it proved heavy reading going into the holiday weekend, the level of red ink it revealed made it clear why the publishing company might want to release the figures just before a three-day weekend. In the filing, the company advised it has a much higher level of debt than certain competitors, which “may put us at a competitive disadvantage,” as well as limit its ability to pursue other business opportunities. As of June 30, AMI’s total outstanding debt was approximately $1.1 billion. As for the continual delays in filing its reports, there is another one already set: AMI said it has already obtained an extension until October to report its earnings for the quarter ended June 30. Total operating loss for the year ended March 31 was $261,130. The prior fiscal year reported a loss of $96,782.
The company implemented approximately $19 million in cost-saving initiatives and $17 million in revenue-enhancement opportunities during the quarter ended March 31 that are aimed at curbing debt in 2008. Cost savings include the “rationalization of unprofitable subscriptions,” production savings and layoffs, or “head count reductions.” Revenue enhancements include cover price increases on selected titles other than Star, ad rate increases in several categories not including Star and online initiatives that require a small investment. The company offered that it might not be able to realize “some or all of these initiatives.”
The publisher also addressed its declines in circulation. Historically, it has been able to offset some drops through increasing cover prices, but AMI advised that “we cannot assure you that we will be able to increase cover prices without decreasing circulation…”
There were some bright spots. The women’s health and fitness publications segment, which includes Shape, saw operating income increase by $100,000, to $24 million from the prior year. And, for the newspaper segment, operating income, before goodwill impairment, increased by $3.6 million to $60.3 million. — Amy Wicks
CHECKING IN: Burberry has a new director of U.S. public relations, just in time for Milan Fashion Week later this month. Alex Malgouyres has moved to New York for the job, following three years in Paris, as Burberry’s head of p.r. for France, Italy, Spain, Portugal, Belgium and Switzerland. Prior to Burberry, Malgouyres worked in the Paris offices of KCD. “This is a great career opportunity,” he said. He replaces John Cross, who left the company in June. — A.W.
NEW HIRE: Rosie Amodio has been named editor of In Style Specials, succeeding Sarah Gray Miller, who left two weeks ago after a rocky 15-month tenure. Amodio was previously vice president, editorial, of The Knot, overseeing both print and online content for all of its brands, including wedding planning magazine The Knot and The Nest, a lifestyle magazine for newlyweds. She’s also held positions at Marie Claire, Maxim and Cosmopolitan. Amodio will edit the quarterly In Style Weddings, the biannual In Style Home and annual In Style Makeovers. She will also help relaunch instyleweddings.com in January. Amodio takes her new post Thursday; her first assignment will be to oversee the spring 2008 issue of Weddings. — Stephanie D. Smith