The Associated Press shared details of its finances with Guild negotiators Friday, reiterating much of what CEO Gary Pruitt said earlier this year at a town hall meeting with staff.
The AP said its projected revenue for 2013 is $599 million, down from $622 million a year earlier. On the good news side, the company said its operating cash profits are projected to be $37 million in 2013, up from $24 million a year earlier.
The company also said its debt, which was $36 million in August 2012, was $10 million in June 2013. Some of the debt was projected, the company said, as the AP made major capital investments, such as HD cameras.
For a look a the company’s slides on AP’s finances, click here:
For details on the company’s estimate of savings from its dismissal pay proposal, click here:
For details on AP’s figures on cash operating profits, click here.
The figures show that the company expects to cut expenses by $36 million from December 2012 to December 2013. The Guild asked how much of the reduction was due to cuts in compensation. You’ll see from the link to the cash operating profits that the savings from compensation cuts was $10 million, while the savings from freelance use was $5 million.
Other savings of $12 million came through moves such as renegotiating contracts with vendors, including switching health insurance carriers from Aetna to UHC, the company said. The company’s plan, called Cost-Conscious AP, saved money in other ways, including by reducing printing costs, the AP said.
The company expects to pay an ever-increasing amount into the now-frozen pension plan over the next five years, paying $196 million from 2014 to 2018. By 2018, when the payment is estimated to be $41 million, the company expects the amount to drop. Over the next five years, AP will pay about another $100 million so the plan is fully funded by the time the law requires that.
The Guild asked the AP how much money it makes from Invision, a photography company that the AP started in May 2012. AP said the photo assignments part of Invision is doing well but the licensing part is running behind expectations.