GVC.TO - Glacier Media

[BRK7]

I’m trying to get up to speed on the Glacier story.  Anyone care to share some thoughts following Tuesday’s quarterly report and the announcement of “value enhancement initiatives”? Thanks in advance.

[ItsAValueTrap]

It struck me as overly promotional.  Buffett said something to the effect of... "trying to cut costs is like getting bed out of the morning and breathing".  Of course the CEO should be trying to keep costs down, enhance shareholder value, etc.

 

*Disclosure:  I am long this stock because other people were and I was too lazy to do my research.  I will probably be closing my position.

[krazeenyc]

It struck me as overly promotional.  Buffett said something to the effect of... "trying to cut costs is like getting bed out of the morning and breathing".  Of course the CEO should be trying to keep costs down, enhance shareholder value, etc.

 

*Disclosure:  I am long this stock because other people were and I was too lazy to do my research.  I will probably be closing my position.

 

LOL at the disclosure portion ;D

 

Just curious do you avoid companies that give quarterly conference calls or publish investor presentations?

[plato1976]

It's still a story about if they can stablize  EBITDA...

 

I’m trying to get up to speed on the Glacier story.  Anyone care to share some thoughts following Tuesday’s quarterly report and the announcement of “value enhancement initiatives”? Thanks in advance.

[ItsAValueTrap]

Just curious do you avoid companies that give quarterly conference calls or publish investor presentations?

LOL.  No I don't.

 

I think that conference calls waste a lot of time.  The first part of a call always involves somebody reading pre-written material aloud... they might as well issue a press release with their prepared statements and let everybody read it instead of forcing them to listen through it.  And then analysts come on and most of them ask dumb or esoteric questions.  Those who ask controversial questions are almost never allowed onto the call.  It's such a silly exercise.  IDT probably had the right idea in letting investors send in questions and then answering them in written form.  (Though IDT has its nepotism issues.)

 

But sometimes the calls are worth listening to because management may give evasive answers on something or other weirdness happens (e.g. Premier Exhibitions, Ebix, etc.).  I actually only read the transcripts because I don't want to spend my time on listening to the whole thing.

 

Investor presentations are really useful.  Sometimes they contain important information not found in the 10-K or MD&A/financials.

[stylized_fact]

Just curious do you avoid companies that give quarterly conference calls or publish investor presentations?

LOL.  No I don't.

 

I think that conference calls waste a lot of time.  The first part of a call always involves somebody reading pre-written material aloud... they might as well issue a press release with their prepared statements and let everybody read it instead of forcing them to listen through it.  And then analysts come on and most of them ask dumb or esoteric questions.  Those who ask controversial questions are almost never allowed onto the call.  It's such a silly exercise.  IDT probably had the right idea in letting investors send in questions and then answering them in written form.  (Though IDT has its nepotism issues.)

 

But sometimes the calls are worth listening to because management may give evasive answers on something or other weirdness happens (e.g. Premier Exhibitions, Ebix, etc.).  I actually only read the transcripts because I don't want to spend my time on listening to the whole thing.

 

Investor presentations are really useful.  Sometimes they contain important information not found in the 10-K or MD&A/financials.

 

There's even a return anomaly for it  :):

http://www.hbs.edu/faculty/Publication%20Files/14-021_d63679f9-4437-48b6-9073-ed41ba2ef9f5.pdf

 

 

[ItsAValueTrap]

Oh yeah Parsad is hot and bothered by this stock right?

[JRH]

*Disclosure:  I am long this stock because other people were and I was too lazy to do my research.  I will probably be closing my position.

 

One of my favorite disclosures ever - sets an example of honesty I strive towards.*

 

*Disclosure: Strive towards a few scattered times a week, when I remember to.

[BRK7]

It struck me as overly promotional.  Buffett said something to the effect of... "trying to cut costs is like getting bed out of the morning and breathing".  Of course the CEO should be trying to keep costs down, enhance shareholder value, etc.

 

 

I had the same reaction to the "value enhancement" press release.  Seemed like a bunch of empty/obvious rhetoric.  Had they said something about improving transparency or eliminating related-party transactions (or at least putting the services that Madison provides out for competitive bid), then I’d feel differently.

 

Here’s the full Buffett quote, by the way.  It does seem to apply quite well:

 

“Whenever I read about some company undertaking a cost-cutting program, I know it's not a company that really knows what costs are all about. Spurts don't work in this area. The really good manager does not wake up in the morning and say, "This is the day I'm going to cut costs," any more than he wakes up and decides to practice breathing.”

 

[ap1234]

There was a sizeable community newspaper transaction this week. Sun Media sold 74 community newspapers to Transcontinental for $75 million. I believe Sun Media's community papers were generating $20 million in EBITDA. The implied valuation seems to be 3.8x EBITDA.

 

http://business.financialpost.com/2013/12/05/sun-media-transcontinental-quebec/?__lsa=d963-e29a

 

Do you think the Sun Media transaction is a good comparable for the private market value of Canadian community newspapers? If it is, the valuation of community papers seems to have declined dramatically over the past few years. If it is not a good comp, are there are structural reasons why Sun Media's community papers are less valuable than Glacier's community paper assets?

[yadayada]

They do seem to focus an awefull lot on FCF, and they dont seem to generate much of it in the past few years. And then there is the issue that they hold several larger papers in their portfolio? Seems they are destined to die a slow death, how large of a % is that of the profits?

 

ANd I find it hard to gauge how much online is a threat to their community papers. And to think I initially really  liked this one :) .

[krazeenyc]

any specific news?

[LanceSanity]

Probably just ex-dividend

[krazeenyc]

Probably just ex-dividend

 

it was ex dividend a few days ago. Just wondering if there is any news I missed

[argonaut]

Paccar, if I may ask...I assume you are still holding this one?

[phil_Buffett]

the dividend is only 0,02$. so today was a big drop  :o. but i cant find news

[argonaut]

Looks like they sold a building.

 

http://www.marketwatch.com/story/glacier-announces-property-sale-2013-12-27-191732048?reflink=MW_news_stmp

[phil_Buffett]

Looks like they sold a building.

 

http://www.marketwatch.com/story/glacier-announces-property-sale-2013-12-27-191732048?reflink=MW_news_stmp

 

nice thanks

[mbrock77]

GVC mentioned in Q3 that real estate sales would be "to a) cover any required deposit relating to the previously reported notice of possible re-assessment from Canada Revenue Agency (CRA) for the 2008-2011 income tax years, should a deposit become payable and b) result in a net reduction of leverage from current levels."

 

So my questions are a) will they be able to use this cash to reduce debt now or will they need to wait for the CRA decision b) does it worry anyone that they feel the need to mention the CRA decision as a reason to raise cash (ie has the likelihood of a negative outcome increased from the point of view of management)

 

Thanks

 

Max

[krazeenyc]

GVC mentioned in Q3 that real estate sales would be "to a) cover any required deposit relating to the previously reported notice of possible re-assessment from Canada Revenue Agency (CRA) for the 2008-2011 income tax years, should a deposit become payable and b) result in a net reduction of leverage from current levels."

 

So my questions are a) will they be able to use this cash to reduce debt now or will they need to wait for the CRA decision b) does it worry anyone that they feel the need to mention the CRA decision as a reason to raise cash (ie has the likelihood of a negative outcome increased from the point of view of management)

 

Thanks

 

Max

 

Obviously nobody knows the answer -- except the CRA. But in the press release they did say specifically that the money will be used to pay down debt.

[matjone]

If they had reason to believe it was likely they'd have to pay it they would have to have a liability for it, no?

[Guest Dazel]

http://www.usatoday.com/story/money/business/2014/01/03/warren-buffett-weighs-in-on-wisdom-of-newspaper-stocks/4306949/

 

 

It is my opinion that Mr. Buffett and Glacier would make a great team. They are a perfect fit....Berkshire could use Glacier's expertise to buy up all the small community papers and Glacier would have the financial backing do what they love...make deals.

[Phaceliacapital]

Glacier Media Inc. has signalled that it plans to close the Kamloops Daily News in the next 60 days, citing falling revenues and difficulty reducing expenses.

 

The Vancouver-based media company gave notice of the coming shutdown to Unifor, the union representing its staff, according to an article on the Daily News website.

 

“Personally I am very saddened to make this announcement,” Daily News publisher Tim Shoults said in the article. “We have struggled for the last several years, worked tirelessly and taken many difficult steps along the way which were designed to ensure our future. Unfortunately the realities of our industry, our local advertising market and our labour situation were too great for us to overcome.

 

“We recognize that this decision severely affects our staff and their families and our hearts go out to them as they deal with the shock and loss this decision creates. We are offering our staff counseling on site at the Daily News if they wish to take advantage of it."

 

According to the union's site, about 45 unionized workers will lose their jobs.

 

Toronto-based political pundit Warren Kinsella, who has contributed to the paper, blogged that he is "very sad" to hear of the looming closure.

 

"It’s sad because the loss of every newspaper means our democracy is diminished, in a real and measurable way. In an era where fewer and fewer citizens are voting, the media – as I have been reminded, as I have pinballed between newspapers and politics over the years – are the only institutions left who can truly hold the powerful to account, on a daily basis. Now, yet another media voice is gone," Kinsella wrote.

 

"Idiot bloggers, and idiot politicians, will continue to be happy about this sort of thing. The former will say the disappearance of the so-called MSM means more audience for them. And the latter will believe that it means more opportunities to communicate to said audience “without a filter” (which really means without a pesky reporter getting in the way)."

 

In November 2013, Glacier Media said it was taking measures to cut costs by more than $7 million a year.

 

The roots of the Daily News go back to the Kamloops Shopper, which started up in 1931.

 

[Phaceliacapital]

(CNP) Glacier Media to merge two daily newspapers in the northea

st of B.C.

 

+------------------------------------------------------------------------------+

 

Glacier Media to merge two daily newspapers in the northeast of B.C.

2014-01-23 00:54:03.224 GMT

 

 

Glacier Media to merge two daily newspapers in the northeast of

B.C.

 

    (Canadian Press) -- FORT ST. JOHN, B.C. -- Glacier Media

(TSX:GVC) says its will merge two daily newspapers in the Peace

River region of British Columbia.

    The area has been traditionally served by the Dawson Creek

Daily News and the Alaska Highway News in Fort St. John.

    But the papers' regional manager William Julian says the

Alaska Highway News will expand Feb. 3 to cover Dawson Creek,

Fort Nelson to the north and the surrounding areas.

    He says the move will deliver improved content, coverage

and circulation to readers and advertisers.

    According to Glacier's website, the Alaska Highway News has

a circulation of 4,100 and the Dawson Creek Daily News has a

circulation of 2,200.

    Earlier this month, Glacier closed the Kamloops Daily News,

citing declining revenue and a failure to sufficiently cut

costs.

[rogermunibond]

Posted from Tim McElvaine's May Partners Conf.

 

McElvaine:Yeah, I had the upside downside upside down, obviously. We first invested in Glacier when it was like $0.70 and a collection of tax losses. The people there are good. They grew the business aggressively, making, I think good acquisitions, but they were faced with an industry where the multiple went from 7 1⁄2 to 3. So, over the last ten years, their business has grown from really no cash flow to cash flow of some $50m. But, as I’ve said, the multiple you put on that is three. They got reassessed for tax, for their use of some tax losses, so that was a negative, as well. When we first started investing, I thought it was worth north of $5.00. What do I think it’s worth today? Well, if you split the business up, you would do better than keeping them together, but let’s say, $3.00. If we got good ideas that were, you know, as cheap valuations, would I sell Glacier? Sadly, that’s kind of what you have to do, right? But, I like the people. $1.60 seems particularly oversold, but it’s not what it was. That was an example of poor position and sizing on my point of view. Glacier wasn’t necessarily a bad idea. It was just too large a position. So, that’s what I got into that opaque comment on position-sizing.