Newspaper Publisher A. H. Belo Corporation Reports Second Quarter 2009 Financial Results
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The Company's borrowings were
Robert W. Decherd, chairman, president and Chief Executive Officer, said,
"We successfully managed costs in the second quarter to remain EBITDA positive
and significantly pay down the Company's credit facility.
Second Quarter Highlights
Total revenue decreased 21.9 percent in the second quarter versus the prior year quarter.
Advertising revenue, including print and Internet revenue, was down 30.2
percent, due to declines in retail, general and classified revenues in all AHC
markets. AHC's Internet revenues accounted for 7.6 percent of total revenues
in the quarter. Internet revenues were
The Company continues to focus on editorial quality and value-added
circulation for its advertisers. In the second quarter, circulation revenue
rose 9.9 percent primarily due to increased prices for single copy and home
delivery in
Total consolidated operating expenses in the second quarter were
Corporate and non-operating expenses, net of costs allocated to operating
units, declined by
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
About
Statements in this communication concerning
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
A. H. Belo Corporation
Consolidated Statements of Operations
Three months ended Six months ended
June 30, June 30,
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In thousands, except
per share amounts 2009 2008 2009 2008
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(unaudited)(unaudited)(unaudited)(unaudited)
Net operating revenues
Advertising $87,492 $125,341 $176,823 $249,764
Circulation 33,266 30,275 64,980 59,380
Other 6,746 7,639 14,195 14,298
------- ------- ------- -------
Total net operating revenues 127,504 163,255 255,998 323,442
Operating Costs and Expenses
Salaries, wages and employee
benefits 51,720 68,840 114,614 143,105
Other production, distribution
and operating costs 50,867 60,948 106,734 121,914
Newsprint, ink and other
supplies 16,425 23,738 36,043 46,707
Goodwill impairment - - 80,940 -
Asset impairment 1,749 - 1,749 -
Depreciation 9,662 12,211 20,198 24,452
Amortization 1,625 1,625 3,249 3,250
------- ------- ------- -------
Total operating costs
and expenses 132,048 167,362 363,527 339,428
Loss from operations (4,544) (4,107) (107,529) (15,986)
Other (expense) and income
Interest expense (291) (165) (591) (3,231)
Other (expense) income, net (702) 305 120 1,262
---- --- --- -----
Total other (expense) income (993) 140 (471) (1,969)
Earnings
Loss before income taxes (5,537) (3,967) (108,000) (17,955)
Income tax expense (benefit) 1,534 (770) 2,139 (6,040)
----- --- ----- -----
Net Loss $(7,071) $(3,197) $(110,139) $(11,915)
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Net loss per share
Basic and Diluted $(.34) $(.16) $(5.37) $(.58)
Average shares outstanding
Basic and Diluted 20,537 20,478 20,521 20,476
Cash dividends declared per share $- $- $- $0.250
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A. H. Belo Corporation
Condensed Consolidated Balance Sheets
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June 30, December 31,
In thousands 2009 2008
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(unaudited)
Assets
Current assets
Cash and temporary cash investments $12,205 $9,934
Accounts receivable, net 52,236 77,383
Other current assets 30,165 37,400
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Total current assets 94,606 124,717
Property, plant and equipment, net 244,563 263,744
Intangible assets, net 55,259 139,449
Other assets 40,170 29,768
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Total assets $434,598 $557,678
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Liabilities and Shareholders' Equity
Current liabilities
Current portion of notes payable $3,540 $10,000
Accounts payable 20,526 32,950
Accrued expenses 39,062 42,834
Other current liabilities 30,142 29,358
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Total current liabilities 93,270 115,142
Deferred income taxes 19,093 6,620
Other liabilities 23,003 27,264
Total shareholders' equity 299,232 408,652
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Total liabilities and shareholders'
equity $434,598 $557,678
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A. H. Belo Corporation
Consolidated EBITDA
Three months ended Six months ended
June 30, June 30,
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In thousands (unaudited) 2009 2008 2009 2008
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Consolidated EBITDA (1) $7,790 $10,034 $(1,273) $12,978
Goodwill impairment - - (80,940) -
Asset impairment (1,749) - (1,749) -
Depreciation and Amortization (11,287) (13,836) (23,447) (27,702)
Interest Expense (291) (165) (591) (3,231)
Income Tax (Expense) Benefit (1,534) 770 (2,139) 6,040
----- ----- ------- ------
Net Loss $(7,071) $(3,197) $(110,139) $(11,915)
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A. H. Belo Corporation
Newspaper EBITDA
Three months ended Six months ended
June 30, June 30,
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In thousands (unaudited) 2009 2008 2009 2008
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Newspaper EBITDA (1) $13,127 $19,305 $10,806 $33,734
Corporate & Non-Operating
Company Expenses (4,635) (9,576) (12,199) (22,018)
Other income, net (702) 305 120 1,262
Goodwill impairment - - (80,940) -
Asset impairment (1,749) - (1,749) -
Depreciation and Amortization (11,287) (13,836) (23,447) (27,702)
Interest Expense (291) (165) (591) (3,231)
Income Tax (Expense) Benefit (1,534) 770 (2,139) 6,040
----- ----- ------- ------
Net Loss $(7,071) $(3,197) $(110,139) $(11,915)
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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.