RE: RE: Will someone explain pls..."Maintaining revenue is my concern at this stage."
If revenue drops off at 10%, the company is still well able to pay off all debt. In fact, they have paid off the majority of bank debt already, well ahead of 2013 and what remains now is the $250 million on the non-revolving line. They should, at very minimum have about half of that right now. This is even there were NO earnings in Q3 (which is highly unlikely based on being cash positive for many quarters over many years). With no debt maturing in 2012 and $350-$360 million more at their disposal each year (reduced finance charges and no dividend), they should be in a more than comfortable to pay things off and probably do so early.
To top it off, 10% revenue drop each year assumes that:
1. There is no online rev growth (unlikely since it grew 44% from 2009 to 2010 and 33% in 2011 relative to 2010).
2. The rate of advertising in the print side keeps dropping at 10% without tapering to some steady level. 1 in 2 do still use the book in Canada once a month according to stats that YLO have gathered. This suggests that for some time to come, there will be value in advertising in the book.
Mark