Not too many surprises in the Washington Post (NYSE: WPO) Company’s 10-Q filing, which among other things, sheds a little more light on Newsweek’s poor financial condition. Meanwhile, the sale of Newsweek to audio equipment impresario Sidney Harman is still expected to close this month.
In its Q2 earnings report last week, WaPo already said that for the first six months of 2010, the company recorded $8.5 million in discontinued operations, which was how Newsweek was counted (in Q2, WaPo’s discontinued losses were $2.3 million).
Here’s the rundown of Newsweek’s assets and liabilities to date:
– In 2009, Newsweek lost $26.5 million
— Net accounts receivable of $21.9 million and other current assets of $5.8 million
— Goodwill of $24.5 million and other non-current assets of $2.7 million
— Current salaries and “accrued expenses” of $14.1 million
— Current and non-current deferred revenue of $50.8 million
— In terms of costs, in Q2, Newsweek had $3.9 million in write downs related to property and equipment. Additional writedowns in this area are expected in WaPo’s Q3 results, naturally.
Some of the stipulations in the sale agreement call for WaPo to provide Harman with “target working capital and selected equipment used in the business.” In return, he agrees to fulfill Newsweek