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IS THE TOPEKA CAPITAL-JOURNAL DOING AS WELL AS AUDIENCE DEVELOPMENT DIRECTOR  CAYWOOD CLAIMS? | Q & A PART 1

Topcity.org just read Audience Development Director Caywood’s blog at CJOnline a short time ago.

Caywood’s 7/13 blog is a response to a comment made by a CJonline reader regarding an article Topcity.org wrote almost one week ago. The article discusses the financial hardships facing Morris Publishing Group, Morris Communications and Questo, the newly created parent company discussed in MPG’s March 31st SEC filing.

Caywood first claims that financial problems facing CJ’s parent companies are public record. That’s true; the SEC documents are a matter of public record. It’s what’s in the documents that tells a story, that for whatever reason, is receiving minimal and sometimes outright deceptive coverage from CJ.

Caywood also states:

“What’s happening at the corporate level is in an entirely different orbit that what’s happening locally. We haven’t got the time, training or taste for high finance. In the newsroom, we’re focused on the being first and best with the sort of coverage only our team of 40-plus news gatherers can provide in Topeka, Shawnee County and Northeast Kansas.”

Since CJ’s editorial staff and 40-plus  news-gatherers seem reluctant to read the SEC filing and report on “high finance” issues facing CJ, Topcity.org is glad to help.

Questions and Answers Regarding Caywood’s Blog post:

1: Caywood says that the financial problems of CJ’s parent companies are a “matter of public record.” Where can I read this record, since Caywood didn’t provide a link or a location?

A: Good question. Despite owing well over 400 million in debt ( with less than half of that being actual assets) and a slew of bone-cutting hits to the Morris workforce, this matter of public record is receiving minimal coverage.

You can find the March 31st SEC filing at the SEC website.

2: Caywood says some things on the internet aren’t always true. He also says that any articles regarding trouble at CJ are merely pontification?

A:  Topcity.org agrees; not everything on the internet is true. However, that’s the only part of the statement Topcity.org agrees with. Here are some figures and facts that show the true problems facing CJ and its parent companies:

72 percent of MPG’s revenue comes from advertising. Advertising was down among all 13 major daily papers, including CJ.

CJ’s overall advertising was down $1.2 million, or 27.8 percent. Retail advertising was down 17.5 percent, or $400,000. Classified advertising was down 39.2 percent, or $800,000.

CJ employees took a forced pay reduction of 5 percent for anyone making less than $25,000, 7.5 percent for those between $25,000 and $50,000 and 10 percent for anyone making over $50,000. Employer matched 401k contributions are suspended. Retired employees lost their medical plans.

The SEC filing clearly states that MPG expects to lose money for some time and that the chance of it meeting its debt obligations seem unlikely. Total assets are worth less than half of the over 400 million owed.

There are only two categories where CJ and its parent companies showed a gain.

There was a modest increase in circulation revenue from the 50 percent news-stand hike and other circulations increases. Roughly 20 percent less was spent on labor and employee costs from last year due to the pay cuts, benefit take-backs, and an almost 20 percent overall employee reduction – which can be seen at the new CJonline, as most of the older staff have been replaced and no longer work for CJ.

The almost 10 million owed tomorrow (July 14th) is only interest – it does not account for any of the principal. Secondly, CJ’s parent companies have failed to make this payment a total of 7 times. If they don’t take it tomorrow, the debt holders have the right to reclaim the full amount immediately.

CJ lost an enormous amount of revenue last year. The high finance wizards at MPG think CJ and Cj’s aprent companies will continue to lose money for some time. CJ workers are doing more work for less money and a very uncertain future with an employer who’s revenue dropped both nationally and in Topeka.

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Part 2 will be here shortly. Topcity.org wants to run this by Audience Director Caywood so he has a chance to pontificate on – I mean, correct – any information that isn’t factual. if Caywood can find that these numbers are off, Topcity.org will correct the errors and notify the SEC that MPG’s March 31st 1st quarter filing is in error.