Sun-Times Media has cash for coming years, considers options

Sun-Times Media Group Inc. Chairman Cyrus Freidheim said the company has enough cash to get through industrywide declines in print advertising and is still reviewing financial options.

"We have the cash to weather the worst storms over the next two to three years," Freidheim said at the company's annual meeting in Chicago today. He said Sun-Times continues to evaluate the sale of publications or a going-private transaction after hiring Lazard Freres & Co. earlier this year.

Sun-Times Media, delisted from the New York Stock Exchange, reported a first-quarter loss of $35.8 million in May on a 13 percent drop in advertising sales. The Chicago-based company, also the owner of suburban daily and weekly publications, had $118.5 million in cash at the end of March. The company also sold commercial paper investments for $21 million in May.

"We are witnessing a major downsizing of the nation's newsrooms," Freidheim said. "We expect the market for print advertising for next 12 to 18 months to be very, very tough."

Sun-Times will continue to invest in its online operations and advertising sales teams as it works with Lazard, Freidheim said.

The stock rose 3 cents to 44 cents yesterday in the over- the-counter trading.