A. H. Belo Corporation Announces First Quarter 2015 Financial Results from Continuing Operations
"Although the Company anticipates continued challenges for print advertising revenues, we continue our efforts to look for opportunities to increase the channels of marketing we can offer to our customers while assiduously working on expense management."
Net income from continuing operations was
Adjusted EBITDA, or earnings before interest, taxes, depreciation and
amortization ("EBITDA") from continuing operations with acquisition
costs and net investment-related gains and losses added back, was
As of
First Quarter Results from Continuing Operations
Total revenue was
Revenue from advertising and marketing services, including print and
digital revenues, decreased 2.4 percent. Marketing services revenue more
than doubled from the prior year period as a result of growth of
Speakeasy and the acquisition of DMV. The acquired marketing services
businesses contributed
Circulation revenue remained flat to the prior year period at
Printing and distribution revenue increased 33.8 percent to
Total consolidated operating expense in the first quarter was
The Company's newsprint expense in the first quarter was
Corporate and non-operating unit expenses in the first quarter were
As of
Non-GAAP Financial Measures
Reconciliations of net loss to EBITDA and Adjusted EBITDA from continuing operations are included as exhibits to this release.
Financial Results Conference Call
About
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, dispositions, impairments, business initiatives, acquisitions, 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; audits and
related actions by the
| A. H. Belo Corporation | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| Three Months Ended March 31, | |||||||||||
| In thousands, except share and per share amounts (unaudited) | 2015 | 2014 | |||||||||
| Net Operating Revenue | |||||||||||
| Advertising and marketing services | $ | 36,831 | $ | 37,726 | |||||||
| Circulation | 21,038 | 21,012 | |||||||||
| Printing, distribution and other | 7,567 | 5,654 | |||||||||
| Total net operating revenue | 65,436 | 64,392 | |||||||||
| Operating Costs and Expense | |||||||||||
| Employee compensation and benefits | 27,503 | 28,164 | |||||||||
| Other production, distribution and operating costs | 31,460 | 28,444 | |||||||||
| Newsprint, ink and other supplies | 8,166 | 7,988 | |||||||||
| Depreciation | 3,040 | 3,410 | |||||||||
| Amortization | 373 | 30 | |||||||||
| Total operating costs and expense | 70,542 | 68,036 | |||||||||
| Operating loss | (5,106 | ) | (3,644 | ) | |||||||
| Other Income (Expense), Net | |||||||||||
| Losses on equity method investments, net | (414 | ) | (408 | ) | |||||||
| Other income, net | 109 | 117 | |||||||||
| Total other income (expense), net | (305 | ) | (291 | ) | |||||||
| Loss from Continuing Operations Before Income Taxes | (5,411 | ) | (3,935 | ) | |||||||
| Income tax (benefit) provision | (5,730 | ) | 891 | ||||||||
| Income (Loss) from Continuing Operations | 319 | (4,826 | ) | ||||||||
| Income from discontinued operations | — | 977 | |||||||||
| Loss related to the divestiture of discontinued operations, net | (12 | ) | (178 | ) | |||||||
| Tax expense from discontinued operations | — | 16 | |||||||||
| Gain (Loss) from Discontinued Operations, Net | (12 | ) | 783 | ||||||||
| Net Income (Loss) | 307 | (4,043 | ) | ||||||||
| Net loss attributable to noncontrolling interests | (56 | ) | (6 | ) | |||||||
| Net Income (Loss) Attributable to A. H. Belo Corporation | $ | 363 | $ | (4,037 | ) | ||||||
| Per Share Basis | |||||||||||
| Basic and Diluted | |||||||||||
| Continuing operations | $ | 0.02 | $ | (0.22 | ) | ||||||
| Discontinued operations | — | 0.03 | |||||||||
| Net income (loss) attributable to A. H. Belo Corporation | $ | 0.02 | $ | (0.19 | ) | ||||||
| Weighted average shares outstanding | |||||||||||
| Basic | 21,770,698 | 21,918,000 | |||||||||
| Diluted | 21,845,197 | 21,918,000 | |||||||||
| A. H. Belo Corporation | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
|
March 31, |
December 31, | ||||||||
| In thousands (unaudited) | 2015 | 2014 | |||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 81,442 | $ | 158,171 | |||||
| Accounts receivable, net | 30,911 | 34,396 | |||||||
| Other current assets | 15,393 | 13,323 | |||||||
| Assets of discontinued operations | 253 | 565 | |||||||
| Total current assets | 127,999 | 206,455 | |||||||
| Property, plant and equipment, net | 59,816 | 61,589 | |||||||
| Intangible assets, net | 46,358 | 25,238 | |||||||
| Other assets | 5,856 | 5,465 | |||||||
| Total assets | $ | 240,029 | $ | 298,747 | |||||
| Liabilities and Shareholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 11,723 | $ | 12,904 | |||||
| Accrued expenses and other current liabilities | 14,219 | 72,065 | |||||||
| Advance subscription payments | 16,451 | 15,894 | |||||||
| Liabilities of discontinued operations | 150 | 543 | |||||||
| Total current liabilities | 42,543 | 101,406 | |||||||
| Long-term pension liabilities | 64,391 | 65,859 | |||||||
| Other liabilities | 5,032 | 5,463 | |||||||
| Noncontrolling interests - redeemable | 1,263 | — | |||||||
| Total shareholders’ equity | 126,800 | 126,019 | |||||||
| Total liabilities and shareholders’ equity | $ | 240,029 | $ | 298,747 | |||||
| A. H. Belo Corporation | |||||||||||
| Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA from Continuing Operations | |||||||||||
| Three Months Ended March 31, | |||||||||||
| In thousands (unaudited) | 2015 | 2014 | |||||||||
| Net Income (Loss) Attributable to A. H. Belo Corporation | $ | 363 | $ | (4,037 | ) | ||||||
| Less: Income (Loss) from discontinued operations, net | (12 | ) | 783 | ||||||||
| Plus: Net loss attributable to noncontrolling interests | (56 | ) | (6 | ) | |||||||
| Income (Loss) from continuing operations | 319 | (4,826 | ) | ||||||||
| Depreciation and amortization | 3,413 | 3,440 | |||||||||
| Income tax provision (benefit) | (5,730 | ) | 891 | ||||||||
| EBITDA from Continuing Operations | (1,998 | ) | (495 | ) | |||||||
| Addback: | |||||||||||
| Acquisition costs | 725 | — | |||||||||
| Net investment-related (gains) losses | (81 | ) | 934 | ||||||||
| Adjusted EBITDA from Continuing Operations | $ | (1,354 | ) | $ | 439 | ||||||
The Company evaluates earnings before interest, taxes, depreciation and amortization ( “EBITDA”) which is presented for continuing operations by adjusting for discontinued operations and losses attributable to noncontrolling interests. Adjusted EBITDA is calculated by adding back to EBITDA recorded expenses to acquire new businesses, net investment-related gains and losses and non-cash impairment expense, as applicable.
Neither EBITDA nor Adjusted EBITDA is a measure of financial performance under generally accepted accounting principles (“GAAP”). Management uses EBITDA, Adjusted EBITDA and similar measures in internal analyses as supplemental measures of the Company’s financial performance, and for performance comparisons against its peer group of companies. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as a substitute for net income from continuing operations, cash flows provided by operating activities or other comparable measures prepared in accordance with GAAP. Additionally, these non-GAAP measures may not be comparable to similarly-titled measures of other companies.
Source:
A. H. Belo Corporation
Katy Murray, 214-977-8869
Senior Vice
President / Chief Financial Officer