Question-and-Answer Session
Operator
Thank you. (Operator’s Instructions) Our first question from the line of Jack Ripstein with Potrero Capital Research. Please go ahead.
Jack Ripstein - Potrero Capital Research
Hi, good morning, thanks for taking my call. You guys went through a couple of the numbers in different ways than maybe I’d been thinking about it; but could you give us just—you talked about 8.1% EBITDA margin. Is that after G&A et cetera?
And then I’m assuming that’s excluding the charges. And then we’re working without the benefit of the queue, obviously which will be soon, could you give us the operating cash-flow number as well?
Robert Decherd
Ali, you want to start in?
Alison Engel
8.1% in the newspaper EBITDA margin, so that’s not consolidated, EBITDA margin. That’s the margin for the three papers, excluding the special items, so excluding the VSO, any impairment of the printing press.
Robert Decherd
But which is a way of trying to focus on what the operating potential is of the three newspapers. The other parts of expense that come in when you put in the corporate numbers and overhead we retain at corporate is what brings that number down to the reported net income.
Jack Ripstein - Potrero Capital Research
Okay, but the non-cash items. So you still at even the consolidated level, it looks like you would have– if I am looking the numbers correctly, positive EBITDA, when you back out the special charges, is that correct?
Robert Decherd
Correct.
Jack Ripstein - Potrero Capital Research
Okay, even on a consolidated with overhead, correct?
Robert Decherd
Well, we’d be pretty close to break even.
Jack Ripstein - Potrero Capital Research
Okay. And then of these charges, what of those are cash versus non-cash?
Alison Engel
The $11.1 million for the VSO is a cash charge. The $4.5 million for the impairment of the printing press is a non-cash charge.
Jack Ripstein - Potrero Capital Research
Okay.
Robert Decherd
And this is a press that we inherited when we took over the Dallas Times Herald in the early 90s; we previously wrote-off the second press we received from them to install a new press in the mid 90s. So this just cease to have any value and so far as our current operations or expected future operations.
And Jack, just work back through that EBITDA number, it’s probably about $1.5 million negative, if you roll everything together, to not be break even.
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