A. H. Belo Corporation Announces Second Quarter 2015 Financial Results from Continuing Operations
"Our combined digital advertising and marketing services revenues now comprise 25 percent of the Company's total advertising and marketing services revenue. By year end, we expect revenues from core print advertising to be less than one-third of the Company's total revenue.
"Although the Company anticipates continued challenges for core print revenues, we believe new and organic revenue opportunities and continued expense management will help mitigate expected declines in these areas."
Net loss from continuing operations was
As of
Second Quarter Results from Continuing Operations
Total revenue was
Revenue from advertising and marketing services, including print and digital revenues, decreased 4.9 percent. Marketing services revenue more than doubled from the prior year period as a result of growth of Speakeasy and the acquisition of DMV. Revenue from Crowdsource, our event marketing business, also doubled from the same period last year. Increases in marketing services revenue were offset by declines in display, classified, and preprint advertising revenues which decreased 18.5 percent, 10.8 percent, and 7.9 percent, respectively.
Circulation revenue decreased 1.9 percent to
Commercial printing, distribution and other revenue decreased 2.4
percent to
Total consolidated operating expense in the second quarter was
As of
Financial Results Conference Call
To access the listen-only conference call, dial 1-800-230-1059 (
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 June 30, | Six Months Ended June 30, | |||||||||||||||
| In thousands, except share and per share amounts (unaudited) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net Operating Revenue | ||||||||||||||||
| Advertising and marketing services | $ | 38,266 | $ | 40,251 | $ | 75,097 | $ | 77,977 | ||||||||
| Circulation | 20,816 | 21,227 | 41,854 | 42,239 | ||||||||||||
| Printing, distribution and other | 7,594 | 7,783 | 15,161 | 13,437 | ||||||||||||
| Total net operating revenue | 66,676 | 69,261 | 132,112 | 133,653 | ||||||||||||
| Operating Costs and Expense | ||||||||||||||||
| Employee compensation and benefits | 25,105 | 25,722 | 52,608 | 53,886 | ||||||||||||
| Other production, distribution and operating costs | 31,015 | 29,640 | 62,475 | 58,084 | ||||||||||||
| Newsprint, ink and other supplies | 7,843 | 8,114 | 16,009 | 16,102 | ||||||||||||
| Depreciation | 2,875 | 3,348 | 5,915 | 6,758 | ||||||||||||
| Amortization | 373 | 30 | 746 | 60 | ||||||||||||
| Total operating costs and expense | 67,211 | 66,854 | 137,753 | 134,890 | ||||||||||||
| Operating income (loss) | (535 | ) | 2,407 | (5,641 | ) | (1,237 | ) | |||||||||
| Other Income (Expense), Net | ||||||||||||||||
| Gains on equity method investments, net | 690 | 18,567 | 276 | 18,159 | ||||||||||||
| Other income (loss), net | (532 | ) | 141 | (423 | ) | 258 | ||||||||||
| Total other income (expense), net | 158 | 18,708 | (147 | ) | 18,417 | |||||||||||
| Income (Loss) from Continuing Operations Before Income Taxes | (377 | ) | 21,115 | (5,788 | ) | 17,180 | ||||||||||
| Income tax provision (benefit) | 317 | 1,428 | (5,413 | ) | 2,319 | |||||||||||
| Income (Loss) from Continuing Operations | (694 | ) | 19,687 | (375 | ) | 14,861 | ||||||||||
| Income from discontinued operations | — | 2,146 | — | 3,123 | ||||||||||||
| Income (Loss) related to the divestiture of discontinued operations, net | 2 | 153 | (10 | ) | (25 | ) | ||||||||||
| Tax expense from discontinued operations | — | 30 | — | 46 | ||||||||||||
| Gain (Loss) from Discontinued Operations, Net | 2 | 2,269 | (10 | ) | 3,052 | |||||||||||
| Net Income (Loss) | (692 | ) | 21,956 | (385 | ) | 17,913 | ||||||||||
| Net loss attributable to noncontrolling interests | (100 | ) | (24 | ) | (156 | ) | (30 | ) | ||||||||
| Net Income (Loss) Attributable to A. H. Belo Corporation | $ | (592 | ) | $ | 21,980 | $ | (229 | ) | $ | 17,943 | ||||||
| Per Share Basis | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | (0.03 | ) | $ | 0.86 | $ | (0.01 | ) | $ | 0.64 | ||||||
| Discontinued operations | — | 0.10 | — | 0.14 | ||||||||||||
| Net income (loss) attributable to A. H. Belo Corporation | $ | (0.03 | ) | $ | 0.96 | $ | (0.01 | ) | $ | 0.78 | ||||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | (0.03 | ) | $ | 0.85 | $ | (0.01 | ) | $ | 0.64 | ||||||
| Discontinued operations | — | 0.10 | — | 0.14 | ||||||||||||
| Net income (loss) attributable to A. H. Belo Corporation | $ | (0.03 | ) | $ | 0.95 | $ | (0.01 | ) | $ | 0.78 | ||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 21,747,635 | 22,014,125 | 21,758,382 | 21,946,256 | ||||||||||||
| Diluted | 21,747,635 | 22,121,695 | 21,758,382 | 22,064,339 | ||||||||||||
| A. H. Belo Corporation | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| June 30, | December 31, | |||||
| In thousands (unaudited) | 2015 | 2014 | ||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 84,061 | $ | 158,171 | ||
| Accounts receivable, net | 32,249 | 34,396 | ||||
| Other current assets | 14,980 | 13,323 | ||||
| Assets of discontinued operations | 253 | 565 | ||||
| Total current assets | 131,543 | 206,455 | ||||
| Property, plant and equipment, net | 52,034 | 61,589 | ||||
| Intangible assets, net | 45,985 | 25,238 | ||||
| Other assets | 5,538 | 5,465 | ||||
| Total assets | $ | 235,100 | $ | 298,747 | ||
| Liabilities and Shareholders’ Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 13,769 | $ | 12,904 | ||
| Accrued expenses and other current liabilities | 12,369 | 72,065 | ||||
| Advance subscription payments | 15,429 | 15,894 | ||||
| Liabilities of discontinued operations | 85 | 543 | ||||
| Total current liabilities | 41,652 | 101,406 | ||||
| Long-term pension liabilities | 62,923 | 65,859 | ||||
| Other liabilities | 5,322 | 5,463 | ||||
| Noncontrolling interests - redeemable | 1,263 | — | ||||
| Total shareholders’ equity | 123,940 | 126,019 | ||||
| Total liabilities and shareholders’ equity | $ | 235,100 | $ | 298,747 | ||
View source version on businesswire.com: http://www.businesswire.com/news/home/20150727006348/en/
Source:
A. H. Belo Corporation
Katy Murray, 214-977-8869
Senior Vice
President / Chief Financial Officer