[lbo-talk] sketching an "anti-economist"

Doug Henwood dhenwood at panix.com
Tue Aug 21 12:49:18 PDT 2007


On Aug 21, 2007, at 3:27 PM, Jordan Hayes wrote:


>> Could you guesstimate an annual budget for the kind of pub
>> that would be worth doing?
>
> You could do worse than to take a close look at Salon.
>
> http://biz.yahoo.com/e/070627/slnm.ob10-k.html

Not encouraging!


> Salon has a history of significant losses and expects to incur a
> net loss from operations for its year ending March 31, 2008.
> Because of past losses, an anticipated loss next year and a history
> of negative cash flows from operations, Salon's independent
> registered public accounting firm for the years ended March 31,
> 2005, March 31, 2006 and March 31, 2007 have included a paragraph
> in its reports indicating substantial doubt as to Salon's ability
> to continue as a going concern. During the last three years, Salon
> has relied on cash from the issuance of preferred stock and from
> the exercise of warrants to meet its cash requirements. Based on
> current cash projections for next year, including $8.1 million of
> advertising revenues and $10.4 million of total revenues, Salon
> estimates it will require an additional $0.6 million cash inflow to
> meet operating needs. If planned revenues are less than expected,
> the cash shortfall may be higher.



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