Good morning, everyone. I just wanted to start the day with providing you a performance update, but first, there is no better way to lead this off than by thanking every one of you for your work and dedication to O’Rourke Media Group. YOU are hands-down the biggest reason why we continue to deliver game-changing top and bottom-line results. I realize there are pain points along the way to support what we are doing to grow revenue, but growth pains are much, much different than start-up, how are we going to survive pains. And make no secret about it, WE ARE INDEED IN GROWTH MODE!
We have a cohesive, competitive, fun, and winning team orchestrating what I think is one of the top revenue success stories in the media industry. To inject a sports analogy, the team has posted an 8-1 record so far this year through nine months. Growing revenue allows us to continue to invest in people, digital, technology and the communities we serve. Caleb Anderson, Joe Mathes, Joe Paul, Megan Ivey, Michele Swain, Pam Mathes, Jim Johnson, Sally Shepherd, Sharon Schjoth, Rachel Hayes, Phil Scherer, Tara Jones, Bridget Higdon, Heather Young, Kelly Mixer, Jen Lee, Denise O’Rourke, Jonathan Bailey, Mark Sherry, Tony Humski, Maria Sanchez and Dave Pevonka. This is the team, along with their teams, that position us to post these amazing results…
Performance Highlights
- Q3 in comparison to prior year, cash flow +75%; total revenue +39% and total advertising revenue +46%.
- YTD in comparison to prior year, cash flow +78%; total revenue +51% and total advertising revenue +39%.
- YTD digital revenue +93% to prior year; Q3 +81% and 32% of total ad revenue. Our monthly run rate in Sept is +48% to our run rate in January.
- One of our favorite metrics is same store comps vs. prior year in Advertising where we consider the timing of acquisitions–Q3 +14% and YTD +18%.
- Our News team continues to impress with publishing great local newspapers each week and month while getting better and better with building digital audience. Reader revenue is relatively flat year-over-year (with very little focus on marketing and pricing) and digital audience growth is booming with monthly users and pageviews both up 46% to prior year through September.
As far as how the rest of 2022 is looking, October is off to an excellent start. We expect our growth trends to continue through the balance of the year. We are in the process of acquiring another excellent business that is expected to close in December then we get do this all over again in 2023!
Individual Market Highlights
- GM Michele Swain and her team in Delaware have done an amazing job since coming into O’Rourke Media Group this past April. We have far exceeded our YTD proforma expectations on the top and bottom line. The Print & Design business is pacing at its highest revenue level in over five years. This is our one business where we still print and manufacture internally at our facility in Seaford, DE. Matt Edwards and his team are efficient and committed to running a great operation, which I view as a competitive advantage in the market.
- At our 1st business in St Albans, VT total advertising revenue in September finished +95% to prior year and yielded very strong bottom line results. I need to stop right here on this one, but I will not be surprised if the same trend continues in Q4.
- The Las Vegas Optic is crushing it in New Mexico, operating at the highest profit margin in the company as a result of a great print product, an engaged digital audience, significantly improved revenue, and operational efficiency.
- Our Minnesota/Wisconsin market finished September with ad revenue up 71% to prior year (same store!). Digital +60%, but also impressive, a new print product launch “OMG! Mega Market” contributed to these results as well. Yes, a new total market coverage, mailed print product, full of ads!
- The Arizona market finished +36% to prior year in September. 118 ads in our monthly print publication, the City Sun Times.
- Our Wisconsin business continues to be a force to be reckoned with in Kiel, Ripon, Sheboygan, and Greater Madison (four acquisitions since Sept ’19). Total revenue in this market is pacing to finish +30% to prior year in 2022. Revenue is +230% since the original acquisition; EBITDA is +300%.
In conclusion, we are bullish and unwavering when it comes to our growth strategy. We are an advertising driven business model, laser focused on digital but will of course continue to drive print advertising, print and design and reader revenue. We have planted the seeds to fuel digital media start-ups in six new markets, all expected to positively contribute to cash flow growth in 2023. And, by the way, we are also building company enterprise value through our commercial real estate holdings division.
Thank you again for everything that you do at O’Rourke Media Group. As always, please feel free to reach out to me directly anytime via phone, in-person, google meet or text if you have ideas or suggestions to help improve and grow the Company!