The first financial information released by Advanced Marketing Services in about six months was not very encouraging. In an amendment to its bank loan agreements, the company reported that for the nine months ended December 31, 2004, it had a loss of $3.3 million. The figure put AMS in violation of its loan agreement, which called for EBITDA of $4.2 million. As it has done in the past, the bank waived the violation.
The nine-month loss, though not a significant amount for a $1 billion company, furthers the perception that the company has been struggling in fiscal 2005, which ends March 31. In September, AMS reported that profits in the first two quarters were hurt by substantial expenses related to its audit and legal issues and by costs associated with reorganizing its distribution center.
