DALLAS, May 4 /PRNewswire-FirstCall/ -- Newspaper publisher A. H.
Belo Corporation (NYSE:AHC) reported first quarter 2009 revenues of
$128.5 million and a first quarter net loss of $103.1 million or
$5.03 per share. Excluding special charges, the first quarter net
loss was $18.1 million or $0.91 per share. First quarter results
include $80.9 million or $3.93 per share in non-cash goodwill
impairment at The Providence Journal and a charge of $4.0 million
or $0.19 per share related to a reduction-in-force and related
costs announced in January. The reduction-in-force is part of the
Company's ongoing expense reduction initiatives. A. H. Belo's
reduction-in-force impacted approximately 500 employees and will
save approximately $27 million in salaries and benefits annually.
The Company had ($9.1) million in consolidated EBITDA and ($2.3)
million in newspaper EBITDA for the first quarter. The aggregate
newspaper EBITDA margin was (1.8) percent. Excluding the charge for
the reduction-in-force and related costs, newspaper EBITDA was $1.3
million and the margin was 1.0 percent. EBITDA margins in the first
quarter were highest at The Providence Journal, followed by The
Dallas Morning News. The Company's borrowings were $12.7 million as
of March 31, 2009 and the Company was in compliance with its bank
covenants at the end of the first quarter. Robert W. Decherd,
chairman, president and Chief Executive Officer, said, "A. H. Belo
continues to face significant revenue challenges in 2009. Lower
advertising revenues require us to continue to focus on expense
reductions and operational realignment. These efforts resulted in
significantly lower expenses in the first quarter, approximately
$21.5 million below the first quarter of 2008 excluding the
non-cash goodwill impairment charge of $80.9 million. We are
extremely proud of the work done to adjust our cost base by A. H.
Belo's operating units, corporate leadership and all of our
employees." First Quarter Highlights Total revenue decreased 19.8
percent in the first quarter versus the prior year. Advertising
revenue, including print and Internet revenue, was down 28.2
percent, primarily due to declines in classified revenues in all
AHC markets. AHC's Internet revenues accounted for 7.2 percent of
total revenues in the quarter. Internet revenues were $9.3 million,
24 percent below the same period last year. The Company continues
to focus on editorial quality and value-added circulation for its
advertisers. In the first quarter, circulation revenue rose 9
percent primarily due to increased prices for single copy and home
delivery in Dallas and Providence. Including the $4.0 million cost
of the reduction-in-force and excluding the non-cash goodwill
impairment charge of $80.9 million, total consolidated operating
expenses in the first quarter were $150.5 million, a 12.5 percent
decrease from the same period last year. This decrease reflects
reductions in almost all expense categories. Newsprint expense
decreased approximately $2.2 million in the first quarter due to
lower prices and volumes. The non-cash goodwill impairment charge
at The Providence Journal was determined through an update to the
annual impairment testing of goodwill and other intangible assets
using the methodology prescribed by Statement of Financial
Accounting Standards No. 142. The $80.9 million impairment charge
is a non-cash charge to earnings and, as such, will not affect A.
H. Belo's liquidity, cash flows from operating activities, debt
covenants, or have any impact on future operations. Corporate and
non-operating expenses declined by $5.8 million in the first
quarter versus the prior year, primarily due to lower outside
services resulting from allocating more Belo Technologies costs
directly to the operating units to better reflect usage of
services. Non-GAAP Financial Measures Reconciliations of
consolidated and newspaper EBITDA to net loss are included as
exhibits to this release. Financial Results Conference Call AHC
will conduct a conference call today at 1:30 p.m. CDT to discuss
financial results. The conference call will be available via
Webcast by accessing the Company's Web site
(http://www.ahbelo.com/invest) or by dialing 1-877-777-1973 (USA)
or 1-651-291-0900 (International). A replay line will be available
at 1-800-475-6701 (USA) or 1-320-365-3844 (International) from 3:30
p.m. CDT on May 4 until 11:59 p.m. CDT on May 11, 2009. The access
code for the replay is 996489. About A. H. Belo Corporation A. H.
Belo Corporation (NYSE:AHC), headquartered in Dallas, Texas, is a
distinguished newspaper publishing and local news and information
company that owns and operates four daily newspapers and a diverse
group of Web sites. A. H. Belo publishes The Dallas Morning News,
Texas' leading newspaper and winner of eight Pulitzer Prizes since
1986; The Providence Journal, the oldest continuously-published
daily newspaper in the U.S. and winner of four Pulitzer Prizes; The
Press-Enterprise (Riverside, CA), serving southern California's
Inland Empire region and winner of one Pulitzer Prize; and the
Denton Record-Chronicle. The Company publishes various specialty
publications targeting niche audiences, and its partnerships and/or
investments include the Yahoo! Newspaper Consortium and Classified
Ventures, owner of cars.com. A. H. Belo also owns direct mail and
commercial printing businesses. Additional information is available
at http://www.ahbelo.com/ or by contacting Alison K. Engel, senior
vice president/Chief Financial Officer, at 214-977-2248. Statements
in this communication concerning A. H. Belo Corporation's (the
"Company's") business outlook or future economic performance,
anticipated profitability, revenues, expenses, dividends, capital
expenditures, investments, future financings, and other financial
and non-financial items that are not historical facts, are
"forward-looking statements" as the term is defined under
applicable federal securities laws. Forward-looking statements are
subject to risks, uncertainties and other factors that could cause
actual results to differ materially from those statements. Such
risks, uncertainties and factors include, but are not limited to,
changes in capital market conditions and prospects, and other
factors such as changes in advertising demand, interest rates, and
newsprint prices; newspaper circulation trends and other
circulation matters, including changes in readership patterns and
demography, and audits and related actions by the Audit Bureau of
Circulations; challenges in achieving expense reduction goals, and
on schedule, and the resulting potential effects on operations;
technological changes; development of Internet commerce; industry
cycles; changes in pricing or other actions by competitors and
suppliers; regulatory, tax and legal changes; adoption of new
accounting standards or changes in existing accounting standards by
the Financial Accounting Standards Board or other accounting
standard-setting bodies or authorities; the effects of Company
acquisitions, dispositions, co-owned ventures, and investments;
general economic conditions; significant armed conflict; and other
factors beyond our control, as well as other risks described in the
Company's Annual Report on Form 10-K for the year ended December
31, 2008. A. H. Belo Corporation Consolidated Statements of
Operations Three months ended March 31,
----------------------------------------------------------------------
In thousands, except per share amounts 2009 2008
----------------------------------------------------------------------
(unaudited) (unaudited) Net operating revenues Advertising $89,331
$124,423 Circulation 31,714 29,105 Other 7,449 6,659 ----------
--------- Total net operating revenues 128,494 160,187 Operating
Costs and Expenses Salaries, wages and employee benefits 62,894
74,265 Other production, distribution and operating costs 55,867
60,966 Newsprint, ink and other supplies 19,618 22,969 Goodwill
Impairment 80,940 - Depreciation 10,536 12,241 Amortization 1,624
1,625 ---------- --------- Total operating costs and expenses
231,479 172,066 Loss from operations (102,985) (11,879) Other
income and expense Interest expense (300) (3,066) Other income, net
822 957 ---------- --------- Total other income (expense) 522
(2,109) Earnings Loss before income taxes (102,463) (13,988) Income
tax expense (benefit) 605 (5,270) ---------- --------- Net Loss
$(103,068) $(8,718) ========== ========= Net loss per share Basic
and Diluted $(5.03) $(.43) Average shares outstanding Basic and
Diluted 20,506 20,473 Cash dividends declared per share $- $0.250
========== ========= A. H. Belo Corporation Condensed Consolidated
Balance Sheets
-----------------------------------------------------------------------
March 31, December 31, In thousands 2009 2008
-----------------------------------------------------------------------
(unaudited) Assets Current assets Cash and temporary cash
investments $6,809 $9,934 Accounts receivable, net 56,969 77,383
Other current assets 34,881 37,400 ---------- --------- Total
current assets 98,659 124,717 Property, plant and equipment, net
253,800 263,744 Intangible assets, net 56,884 139,449 Other assets
38,379 29,768 ---------- --------- Total assets $447,722 $557,678
========== ========= Liabilities and Shareholders' Equity Current
liabilities Current portion of long term debt $12,650 $10,000
Accounts payable 19,666 32,950 Accrued expenses 37,793 42,834 Other
current liabilities 30,763 29,358 ---------- --------- Total
current liabilities 100,872 115,142 Deferred income taxes 15,143
6,620 Other liabilities 25,853 27,264 Total shareholders' equity
305,854 408,652 ---------- --------- Total liabilities and
shareholders' equity $447,722 $557,678 ========== ========= A. H.
Belo Corporation Consolidated EBITDA Three months ended March 31,
----------------------------------------------------------------------
In thousands (unaudited) 2009 2008
----------------------------------------------------------------------
Consolidated EBITDA (1) $(9,063) $2,944 Goodwill impairment
(80,940) - Depreciation and Amortization (12,160) (13,866) Interest
Expense (300) (3,066) Income Tax (Expense) Benefit (605) 5,270
---------- --------- Net Loss $(103,068) $(8,718) ==========
========= A. H. Belo Corporation Newspaper EBITDA Three months
ended March 31,
----------------------------------------------------------------------
In thousands (unaudited) 2009 2008
----------------------------------------------------------------------
Newspaper EBITDA (1) $(2,321) $14,429 Corporate & Non-Operating
Company Expenses (7,564) (12,442) Other income, net 822 957
Goodwill impairment (80,940) - Depreciation and Amortization
(12,160) (13,866) Interest Expense (300) (3,066) Income Tax
(Expense) Benefit (605) 5,270 ---------- --------- Net Loss
$(103,068) $(8,718) ========== ========= Note 1: The Company
defines Consolidated EBITDA as net earnings before interest
expense, income taxes, goodwill impairment, depreciation and
amortization and Newspaper EBITDA as net earnings before corporate
and non-operating company expenses, other income net, interest
expense, income taxes, goodwill impairment, depreciation and
amortization. Neither Consolidated EBITDA nor Newspaper EBITDA is a
measure of financial performance under accounting principles
generally accepted in the United States. Management uses both
measures in internal analyses as a supplemental measure of the
financial performance of the Company to assist it with determining
bonus achievement, performance comparisons against its peer group
of companies, as well as capital spending and other investing
decisions. They are also common alternative measures of performance
used by investors, financial analysts, and rating agencies to
evaluate financial performance. Neither Consolidated EBITDA nor
Newspaper EBITDA should be considered in isolation or as a
substitute for cash flows provided by operating activities or other
income or cash flow data prepared in accordance with U.S. GAAP and
this non-GAAP measure may not be comparable to similarly titled
measures of other companies. DATASOURCE: A. H. Belo Corporation
CONTACT: Alison K. Engel, senior vice president/Chief Financial
Officer of A. H. Belo Corporation, +1-214-977-2248 Web Site:
http://www.ahbelo.com/
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