Additional cost reduction measures are being implemented consistently with management's strategy of maintaining strong product and editorial quality while reducing operating costs where possible through initiatives that do not impact quality, sales capacity or market and competitive positions.
Management is being careful to maintain appropriate levels of resources in staff and technology as well as business development in order to facilitate long-term revenue growth.
The complementary media platform and product strategy addresses both the risks that digital media represents to the traditional print platform and the opportunities digital media offers in Glacier's local community and business and trade information markets. The strategy's premise is that customer utility and value should drive platform utilization and product design and functionality. Online, mobile, tablet and other information delivery devices will be fully utilized, while print content and design quality will also be fully maintained. While digital platforms offer many attractive new opportunities, print platforms continue to offer effective utility to both readers and advertisers. Maintaining strong print products also maintains strong brand image and awareness, which increases the likelihood of success online. Studies of time spent across media platforms and reader satisfaction support the complementary platform and product strategy. Management expects that customer utility will vary over time and will be affected by what Glacier and other media providers can creatively provide. Management believes the complementary platform and product strategy will be prudent for the foreseeable future, and will maximize revenue and profit generation.
As indicated, the business and trade information strategies are focused on increasing the value provided to customers through richer content, data and analytic value and heightening customer decision dependence of Glacier's products and services. This dependence moves Glacier's products and services further up the value ladder, with the higher revenue, profitability and recurring cash flow that this value proposition provides.
On an adjusted basis to include the Company's share of its joint ventures, Glacier's consolidated debt net of cash outstanding before deferred financing charges and other expenses was 2.55x trailing 12 months EBITDA as at March 31, 2013.
Including Glacier's joint ventures, the Company invested $2.1 million of capital expenditures during the period primarily on its new printing facility at 50% owned GWNLP and software related to the transition of the digital assets from Postmedia. The investment capital expenditures are being made to generate direct revenue and cash flow improvements and payback consistent with Glacier's targeted return on investment, as well as quality improvements and other benefits.
The Company (excluding its joint ventures) repaid $2.5 million of debt during the three months ended March 31, 2013. Glacier's consolidated debt net of cash outstanding before deferred financing charges was $118.5 million as at March 31, 2013.
As previously reported, in March 2013, an affiliate of the Company received correspondence from Canada Revenue Agency ("CRA") proposing to issue a notice of reassessment with respect to the utilization of non-capital losses by the affiliate, pertaining to taxation years 2008 to 2011. The Company believes that it has reported its tax position appropriately and believes the Company's affiliate has substantial defences to the matters raised by the CRA; however, should the proposed reassessment by CRA ultimately be upheld against the Company's affiliate, the resulting payment would materially affect the Company's financial statements and cash flows. Notwithstanding, the Company's affiliate has the financial capacity to pay such amounts, if any. The likely timing to resolve this matter may take years.
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