New Media Investment Group Inc. (NYSE:NEWM) Q1 2018 Earnings Conference Call Transcript
May 03, 2018 • 10:00 am ET
Good morning. My name is Essia, and I will be the conference operator today. At this time, I'd like to welcome everyone to the New Media First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions) Thank you.
At this time, I would like to turn the conference over to Ashley Higgins. Please go ahead ma'am.
Great. Thank you, and good morning, everyone. I'd like to welcome you to New Media's first quarter 2018 earnings call. Joining us today are Mike Reed, New Media's CEO and President; Greg Freiberg, our CFO; Kirk Davis, COO of New Media; and Peter Newton, Chief Revenue Officer of GateHouse Media. I would like to call your attention to the earnings supplement that was posted to New Media's Web site this morning. If you have not already done so, I would suggest that you download it now.
Before we begin, please let me remind you that statements made today are not historical facts and may be forward-looking statements. These statements, by their nature, are uncertain and may differ materially from actual results. We encourage you to read the forward-looking statements disclaimer in the presentation, as well as the risk factors described in New Media's filings made with the SEC. In addition, we will be discussing some non-GAAP financial measures during the call today and the reconciliations of those measures to the most directly comparable GAAP measures can be found in the earnings supplement.
Lastly, I would like to remind you that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase any interest in New Media. The webcast and audiocast is copyrighted material of New Media, and may not be duplicated, reproduced, or rebroadcasted without our consent.
With that, I'd like to turn the call over to Mike.
Michael E. Reed
Thanks, Ashley. Good morning everyone. Thanks for joining our call this morning. We are pleased to share our first quarter results with you this morning which show strong progress on our organic growth initiatives and M&A activities so far this year. 2018 is off to a great start.
I'm going to begin on Slide 2 of the supplement that Ashley referenced a few minutes ago. The highlights I would like to share today also reflect a continuation of the strong progress we reported recently for the fourth quarter. And let's start with one of the most important financial metrics for us and that's organic same-store revenue trends. We continue to see nice improvement in this number. At the beginning of 2018, there was an accounting rule change ASC Topic 606 that went into effect. This impacted how we recognized a portion of our IT services revenue earned through UpCurve cloud. The accounting change has no impact on profit, it's simply net some pass through expenses against revenue.
Excluding this change New Media Q1 revenue was down 4.5% to prior year. And that's improved