Date of Report (Date of earliest event reported): April 28, 2008
(Exact name of registrant as specified in its charter)
Delaware   1-33741   38-3765318
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (I.R.S. Employer
Identification No.)
P. O. Box 224866
Dallas, Texas
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (214) 977-8200
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
Press Release
Item 2.02. Results of Operations and Financial Condition.
On April 28, 2008, A. H. Belo Corporation announced its consolidated financial results for the quarter ended March 31, 2008. A copy of the announcement press release is furnished with this report as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
  99.1   A. H. Belo Corporation Earnings Press Release dated April 28, 2008



     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: April 28, 2008  A. H. BELO CORPORATION
  By:    /s/ Alison K. Engel  
    Alison K. Engel   
    Senior Vice President/Chief Financial Officer   



99.1   A. H. Belo Corporation Earnings Press Release dated April 28, 2008



Exhibit 99.1
  Monday, April 28, 2008
  7:00 A.M. CDT
     DALLAS – A. H. Belo Corporation (NYSE: AHC) reported first quarter revenues of $160.2 million, a net loss of $8.7 million or $0.43 per share and consolidated EBITDA of $2.9 million. The Company has not borrowed against its credit facility since it spun off from Belo Corp. and has no long term debt.
     Robert W. Decherd, chairman, president and Chief Executive Officer, said, “A. H. Belo is navigating through a challenging operating environment, but I am confident about the quality of our markets long-term, the strengths of AHC’s brands, and our ability to continue to transform AHC in an Internet-centric media world.”
     AHC is focused on leveraging its core newspapers and developing sustainable incremental revenues from niche products, the Internet, and business partnerships and various investments. The Company continues to align AHC’s strategy to optimize use of its existing infrastructure. In recent months, The Dallas Morning News and The Press-Enterprise have secured contracts to print and/or distribute other newspapers including The New York Times, the Financial Times, the San Diego Union Tribune, and the Orange County Register.
     AHC remains steadfast in managing expenses and has taken numerous measures to improve its cost structure. A letter to shareholders sent on April 21 by Robert Decherd, discussing AHC’s strategy and current operations, can be accessed at
First Quarter Highlights
     Like other newspaper companies, AHC was affected by economic and operating pressures in the first quarter. The Dallas Morning News contributed over 64 percent of the Company’s revenue in the quarter and did better than its peer group in revenue performance. Revenue declines in Providence were in line with industry trends while Riverside’s revenue performance was weaker.
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A. H. Belo First Quarter Financial Results
April 28, 2008
Page Two
     Total revenue decreased 8.8 percent in the first quarter versus the prior year. Advertising revenue, including print and Internet revenue, was down 12 percent. Advertising revenue, including print and Internet revenue, declined 26 percent at The Press-Enterprise in Riverside, California – one of the hardest-hit real estate markets in the nation. The Press-Enterprise’s performance had a significant impact on the Company’s total revenue.
     AHC had over $12 million in Internet revenue in the first quarter, which accounted for 7.5 percent of AHC’s total revenues. Circulation revenue increases of 12 percent at The Dallas Morning News contributed to AHC’s overall increase in circulation revenue of 5.4 percent for the quarter.
     In the first quarter, total newspaper expense decreased by $5.3 million or 3.5 percent over the same period last year. This decrease included a $2.9 million drop in newsprint expense versus the prior year, with approximately $0.6 million of the decline resulting from a lower average cost per ton and approximately $2.3 million from lower consumption.
     The aggregate newspaper EBITDA margin was 9.0 percent in the first quarter, down 5 percentage points from the first quarter of 2007.
Corporate Results
     Corporate expenses were flat versus the same period last year. The 2007 corporate expenses are based on an estimate of allocated amounts since AHC did not become a separate company until February 8, 2008. AHC’s historical financial information reflects allocations for services historically provided by Belo Corp., and these allocated costs may be different from the actual costs AHC will incur for these services in the future as a separate public company, including with respect to actual services provided to AHC by Belo Corp. under a services agreement and other agreements. In some instances, the costs incurred for these services as a separate public company may be higher than the share of total Belo Corp. expenses allocated to AHC historically. Corporate expenses for the full month of January 2008 and the first eight days of February 2008 are also based on an estimate of allocated calculations. Beginning February 9, 2008, corporate expenses reflect actual experience.
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A. H. Belo First Quarter Financial Results
April 28, 2008
Page Three
Non-GAAP Financial Measures
     Reconciliations of consolidated and newspaper EBITDA to net loss are included as exhibits to this release.
2008 Outlook
     AHC is only providing general financial guidance due to the volatile U.S. economic environment. Weak economic trends suggest that the Company is likely to see a decline in advertising revenue throughout 2008. A principal driver of this revenue decline will likely continue to be The Press-Enterprise.
     The Company is discontinuing “bonus days” and additional third party circulation to eliminate non-value-added circulation and reduce newsprint expense. The Company may be subject to additional newsprint price increases during 2008. AHC will complete its web width reduction project in early 2009, which reduces newsprint consumption going forward.
Financial Results Conference Call
     AHC will conduct a conference call today at 1:00 p.m. CDT to discuss financial and strategic results. The conference call will be available via Webcast by accessing the Company’s Web site ( or by dialing 800-288-8974 (USA) or 612-332-0418 (International). A replay line will be available at 800-475-6701 (USA) or 320-365-3844 (International) from 3:00 p.m. CDT on April 28 until 11:59 p.m. CDT on May 5, 2008. The access code for the replay is 918362.
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A. H. Belo First Quarter Financial Results
April 28, 2008
Page Four
About A. H. Belo Corporation
A. H. Belo Corporation (NYSE: AHC) headquartered in Dallas, Texas, is a distinguished news and information company that owns and operates four daily newspapers and 12 associated Web sites. A. H. Belo publishes The Dallas Morning News, Texas’ leading newspaper and winner of eight Pulitzer Prizes since 1986; The Providence Journal, the oldest continuously-published daily newspaper in the U.S. and winner of four Pulitzer Prizes; The Press-Enterprise (Riverside, CA), serving southern California’s Inland Empire region and winner of one Pulitzer Prize; and the Denton Record-Chronicle. The Company publishes various specialty publications targeting niche audiences, young adults and the fast-growing Hispanic market. A. H. Belo also owns direct mail and commercial printing businesses. Additional information is available at or by contacting Maribel Correa, director/Investor Relations, at 214-977-2702.
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, 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, interest rates, and newsprint prices; newspaper circulation matters, including changes in readership patterns and demography, and audits and related actions by the Audit Bureau of Circulations; circulation trends; technological changes; development of Internet commerce; industry cycles; changes in pricing or other actions by competitors and suppliers; 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; general economic conditions; significant armed conflict; and other factors beyond our control, as well as other risks described in the Company’s Annual Report on Form 10-K and other public disclosures and filings with the Securities and Exchange Commission, including the Company’s information statement on Form 10 dated January 31, 2008.



A. H. Belo Corporation
Consolidated Statements of Operations
    Three months ended  
    March 31,  
In thousands, except per share amounts   2008     2007  
    (unaudited)     (unaudited)  
Net operating revenues
  $ 124,423     $ 141,945  
    29,105       27,617  
    6,659       6,151  
Total net operating revenues
    160,187       175,713  
Operating Costs and Expenses
Salaries, wages and employee benefits
    74,265       75,299  
Other production, distribution and operating costs
    60,966       60,899  
Newsprint, ink and other supplies
    22,969       26,668  
    12,241       11,360  
    1,625       1,625  
Total operating costs and expenses
    172,066       175,851  
Loss from operations
    (11,879 )     (138 )
Other income and expense
Interest expense
    (3,066 )     (8,744 )
Other income (expense), net
    957       174  
Total other income and expense
    (2,109 )     (8,570 )
Loss before income taxes
    (13,988 )     (8,708 )
Income tax (benefit) expense
    (5,270 )     688  
Net loss
  $ (8,718 )   $ (9,396 )
Net loss per share
Basic and Diluted
  $ (.43 )   $ (.46 )
Average shares outstanding
Basic and Diluted
    20,473       20,452  
Cash dividends declared per share
  $ 0.25     $  



A. H. Belo Corporation
Condensed Consolidated Balance Sheets
    March 31,     December 31,  
In thousands   2008     2007  
Current assets
Cash and temporary cash investments
  $ 25,386     $ 6,874  
Accounts receivable, net
    75,888       90,792  
Other current assets
    37,250       24,353  
Total current assets
    138,524       122,019  
Property, plant and equipment, net
    282,704       307,788  
Intangible assets, net
    158,468       160,093  
Other assets
    42,394       29,810  
Total assets
  $ 622,090     $ 619,710  
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable
  $ 33,811     $ 25,384  
Accrued expenses
    29,660       32,550  
Other current liabilities
    33,674       62,468  
Total current liabilities
    97,145       120,402  
Notes payable to Belo Corp.
Deferred income taxes
    26,809       19,189  
Other liabilities
    16,553       14,263  
Total shareholders’ equity
    481,583       86,940  
Total liabilities and shareholders’ equity
  $ 622,090     $ 619,710  



A. H. Belo Corporation
Consolidated EBITDA
    Three months ended  
    March 31,  
In thousands (unaudited)   2008     2007  
Consolidated EBITDA (1)
  $ 2,944     $ 13,021  
Depreciation and Amortization
    (13,866 )     (12,985 )
Interest Expense
    (3,066 )     (8,744 )
Income Tax (Expense) Benefit
    5,270       (688 )
Net Loss
  $ (8,718 )   $ (9,396 )
A. H. Belo Corporation
Newspaper EBITDA
    Three months ended  
    March 31,  
In thousands (unaudited)   2008     2007  
Newspaper EBITDA (1)
  $ 14,429     $ 24,666  
Corporate expenses
    (12,442 )     (11,819 )
Other income (expense), net
    957       174  
Depreciation and Amortization
    (13,866 )     (12,985 )
Interest Expense
    (3,066 )     (8,744 )
Income Tax (Expense) Benefit
    5,270       (688 )
Net Loss
  $ (8,718 )   $ (9,396 )
Note 1: The Company defines Consolidated EBITDA as net earnings before interest expense, income taxes, depreciation and amortization and Newspaper EBITDA as net earnings before corporate expenses, interest expense, income taxes, 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.