Reader’s Digest Association has experienced a slow in losses through the first quarter of this year (which ended March 31 and happens to mark the company’s first quarter since reemerging from Chapter 11 bankruptcy) compared to that time last year — specifically, a $27.1 million loss versus a considerably larger $499.3 million. The company believes restructuring has been the key to turning things around.
Then again, revenue for the company declined 10.2 percent to $413.9 million following a reduced base rate for Reader’s Digest magazine, as well as the shuttering of Backyard Living, Cooking for Two, Purpose Driven Connection and Selecciones.
Folio: explains some of the smarter accounting practices the company has been implementing since coming out of bankruptcy, including “the write-down of the unearned revenue liability which reduce magazine revenues after emergence from Chapter 11; an increase in depreciation and amortization expense prospectively as a consequence of the adjustment to the fair value of tangible and intangible assets; and a reduction of pension income due to the write-off of unrealized gains on pension assets.”
RDA president and CEO Mary Berner announced that the company is proud of their “improved profitability” and gains by their Lifestyle & Entertainment Direct and U.S. businesses.