DALLAS--(BUSINESS WIRE)--Jul. 17, 2013--
A. H. Belo Corporation (NYSE: AHC) today announced it completed the sale
of its five-story office building and certain related assets in
Riverside, California to the County of Riverside for $30 million. The
proceeds to the Company were approximately $28.6 million after selling
costs of approximately $1.4 million. In the third quarter of 2013 the
Company will record a gain of approximately $4 to $5 million related to
this transaction. However, this transaction will not result in a taxable
gain to the Company.
The Press-Enterprise (PE) entered into a six month lease-back
with the County of Riverside until PE’s new leased office space is ready
for move in, which is expected to take place by the end of this year.
The Company anticipates expenses associated with the relocation of The
Press-Enterprise offices to be approximately $0.5 million which will
be incurred in the fourth quarter. As result of the sale of the building
and the move to leased space, The Press-Enterprise anticipates
incurring incremental capital spending of $1.6 million in 2013 to build
a data center in its production facility and ongoing expenses of
approximately $0.2 million per year for incremental facilities cost.
Robert W. Decherd, chairman, president and Chief Executive Officer,
said, “We are pleased to have the sale of the Riverside office building
completed and thank our colleagues in Riverside for their hard work and
support in completing this transaction. The significant proceeds
received will provide funds for increasing shareholder returns and
diversifying our revenue streams in the future.”
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 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; The Press-Enterprise
(Riverside, CA), serving the Inland Southern California region and
winner of one Pulitzer Prize; 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, revenues, expenses, dividends, capital
expenditures, investments, impairments, business initiatives, pension
plan contributions and obligations, real estate sales, 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.
Source: A. H. Belo Corporation
A. H. Belo Corporation
Alison K. Engel, 214-977-2248
Senior
Vice President/Chief Financial Officer
