DALLAS--(BUSINESS WIRE)--Dec. 4, 2013--
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.
Source: A. H. Belo Corporation
A. H. Belo Corporation
Alison K. Engel, 214-977-2248
Senior
Vice President/Chief Financial Officer
www.ahbelo.com
