A. H. Belo Corporation Announces Exploration of Sale of Providence Newspaper, Updated Guidance and New Printing Contract
December 04 2013 - 7:00AM
Business Wire
A. H. Belo Corporation (NYSE: AHC) today announces that the
Company has engaged Stephens Inc. to explore a potential sale of
The Providence Journal. The Providence Journal is the leading
newspaper in Rhode Island and is the oldest major daily newspaper
of general circulation and continuous publication in the United
States.
This decision is part of the revised financial and operating
strategies discussed in the Company’s third quarter earnings
release. A sale of The Providence Journal would generate additional
cash proceeds to potentially invest in or buy advertising and
marketing services companies to grow and diversify revenues and to
finance further share repurchases in the future. These funds may
also be used for other general corporate purposes. Additionally, a
sale of The Providence Journal would allow the Company to continue
to focus resources and management time and attention on its core
Dallas market. However, the Company cannot guarantee that an
appropriate buyer will be located or that a transaction could be
closed on acceptable terms and conditions.
Jim Moroney, chairman, president and Chief Executive Officer,
said, “The Providence Journal is an important financial contributor
to our Company, and the newspaper’s commitment to the citizens of
Providence and Rhode Island is unmatched. However, with A. H.
Belo’s focus on investing and growing in Dallas, it makes sense to
explore this opportunity.”
Updated Guidance
The Company anticipates full-year 2013 EBITDA from continuing
operations to be in the range of $26 million and $29 million. This
updated guidance reflects changes to the Company’s results after
considering revenue and expense trends for the first eleven months
of 2013 and the impact of selling substantially all assets
comprising the operations of The Press-Enterprise. The Company will
discuss 2014 EBITDA guidance in the first quarter of next year.
Printing Contract
In the fourth quarter, the Company also entered into an
agreement to print the Fort Worth Star-Telegram for an initial term
of 10 years and a renewal option to extend the contract. This
contract is expected to begin in the first quarter of 2014 and will
add $6.0 to $6.5 million in printing and inserting revenues to The
Dallas Morning News annually.
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 three daily
newspapers and related websites. A. H. Belo
publishes The Dallas Morning News, Texas’
leading newspaper and winner of nine Pulitzer Prizes; The
Providence Journal, the oldest continuously-published daily
newspaper in the United States and winner of four Pulitzer Prizes;
and the Denton Record-Chronicle. The Company publishes various
niche publications targeting specific audiences, and
its investments include Classified Ventures, owner of
Cars.com, and Wanderful Media, owner of Find&Save. A. H.
Belo offers digital marketing solutions through 508 Digital and
Speakeasy and also owns and operates commercial printing,
distribution and direct mail service businesses. Additional
information is available at 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, revenue, expense,
dividends, capital expenditures, investments, impairments, business
initiatives, pension plan contributions and obligations, real
estate sales, working capital, 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 and newsprint
prices; newspaper circulation trends and other circulation matters,
including changes in readership methods, patterns and demography;
and audits and related actions by the Alliance for Audited Media;
challenges implementing increased subscription pricing and new
pricing structures; challenges in achieving expense reduction goals
in a timely manner and the resulting potential effects on
operations; technological changes; development of Internet
commerce; industry cycles; changes in pricing or other actions by
existing and new competitors and suppliers; consumer acceptance of
new products and business initiatives; labor relations; 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; pension plan
matters; general economic conditions and changes in interest rates;
significant armed conflict; acts of terrorism; and other factors
beyond our control, as well as other risks described in
the Company’s Annual Report on Form 10-K, and in the Company’s
other public disclosures and filings with the Securities and
Exchange Commission.
A. H. Belo CorporationAlison K. Engel, 214-977-2248Senior Vice
President/Chief Financial Officerwww.ahbelo.com
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