Last week's quarterly report from Postmedia was predictably grim.
Canada's largest newspaper company reported revenues had fallen 13.4 per cent from a year earlier. Plunging revenues have been a hallmark of Postmedia's six-year existence.
The corporation has slashed costs, but not enough to keep up with revenue losses. Postmedia took in $181 million in the quarter, $28 million less than the previous year. It cut operating costs by $21 million.
Operating income - the actual performance of the business - fell from $13 million to $6 million.
There are two key lessons from these numbers.
First, expect deeper cuts. What's happened so far hasn't been enough to keep up with falling revenues. And, or course, the cuts will lead to further revenue losses.
And second, note that for the first time - even after last year's debt restructuring - Postmedia's operating income of $6 million was less than its interest payments of $8 million.
In the short term, Postmedia can free up some cash to pay the interest. But the fundamentals, as they say, are dismal.
And the end, according to one-time newspaper baron Conrad Black, is clear.
"The bond holders control the company and are content to bleed it dry with the complicity of management. Bankruptcy is next," he said on Twitter.