UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

A. H. BELO CORPORATION

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		75222-4866
(Address of principal executive offices)		(Zip Code)

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.

On November 3, 2010, A. H. Belo Corporation announced its consolidated financial results for the quarter ended September 30, 2010. 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 Financial Results Press Release dated November 3, 2010

Signatures

     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: November 3, 2010		A. H. BELO CORPORATION
		By:		/s/ David A. Gross   David A. Gross
				Vice President/Investor Relations and Strategic Analysis

EXHIBIT INDEX

99.1 A. H. Belo Corporation Financial Results Press Release dated November 3, 2010

Exhibit 99.1

A. H. Belo Corporation

FOR IMMEDIATE RELEASE
Wednesday, November 3, 2010
7:00 A.M. CDT

Newspaper Publisher A. H. Belo Corporation Reports
Third Quarter 2010 Net Income of $4.6 Million

     DALLAS — Newspaper publisher A. H. Belo Corporation (NYSE: AHC) today reported net income of $4.6 million, or $0.20 per diluted share, for the third quarter of 2010 compared to a net loss of $5.8 million, or $0.28 per diluted share, in the third quarter of 2009. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $14.2 million, an increase of $20.0 million compared to the third quarter of 2009. Third quarter 2010 EBITDA includes pension expense of $1.6 million; a $1.1 million bonus accrual; a $1.4 million gain on two real estate transactions in Dallas; a $1.2 million reversal of an accrual for workers’ compensation insurance; and $1.1 million of insurance proceeds. When pension expense is added to EBITDA (“Adjusted EBITDA”) in both periods, the resulting Adjusted EBITDA in the third quarter of 2010 was $15.8 million, an increase of $21.6 million compared to the third quarter of 2009.

     Robert W. Decherd, chairman, president and Chief Executive Officer, said, “The Board and Management Committee are very pleased with the progress reflected in A. H. Belo’s third quarter performance. Our corporate and operating unit teams have worked intensely for the past two years to reach this relative stability in an industry environment that continues to change at a rapid pace. Third quarter total revenue decreased 6.1 percent compared to 2009 and was only 100 basis points below the Company’s 2010 Financial Plan for the third quarter. Expense containment and cost reductions remain top priorities across the entire organization.

     “As of September 30, the Company had approximately $81.3 million of cash and cash equivalents, no borrowings outstanding under its bank credit facility, and remained in compliance with bank covenants. The addition of $21.3 million of cash and cash equivalents during the third quarter further strengthens the Company’s ability to maintain

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P. O. Box 224866 Dallas, Texas 75222-4866 Tel. 214.977.8200 Fax 214.977.8201
www.ahbelo.com Deliveries: 400 South Record Street Dallas, Texas 75202-4806

Newspaper Publisher A. H. Belo Corporation Reports
Third Quarter 2010 Net Income of $4.6 Million
November 3, 2010
Page Two

and enhance the quality of its local content and make decisions in the long-term interests of the Company, its shareholders and its employees.”

Operating Results

     Total revenue was $119.1 million in the third quarter, a decrease of 6.1 percent compared to the third quarter of 2009. Total advertising revenue, including print and digital revenue, decreased 11.2 percent. Circulation revenue decreased 0.9 percent. Other revenue increased 25.5 percent.

     Total consolidated operating expense in the third quarter was $115.5 million, a decrease of 19.6 percent compared to 2009. Excluding the effect of pension expense in both periods, operating expense in the third quarter was $113.9 million, a 20.7 percent decrease compared to 2009. The Company’s newsprint expense in the third quarter was $10.1 million, an increase of 10.5 percent compared to 2009 as newsprint consumption increased 2.5 percent and newsprint cost per metric ton increased 7.7 percent. The average purchase price per metric ton for newsprint increased 35.4 percent in the third quarter of 2010 compared to 2009.

Corporate and Non-Operating Expenses

     In the third quarter, corporate and non-operating expenses, net of costs allocated to operating units, were $7.1 million, an increase of 4.6 percent compared to the third quarter of 2009. Lower salary, wage and benefit expenses were offset primarily by a $1.3 million increase in depreciation related to the intra-company transfer of a technology asset.

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P. O. Box 224866 Dallas, Texas 75222-4866 Tel. 214.977.8200 Fax 214.977.8201
www.ahbelo.com Deliveries: 400 South Record Street Dallas, Texas 75202-4806

Newspaper Publisher A. H. Belo Corporation Reports
Third Quarter 2010 Net Income of $4.6 Million
November 3, 2010
Page Three

Non-GAAP Financial Measures

     Reconciliations of net income to EBITDA and Adjusted EBITDA are included as exhibits to this release.

Financial Results Conference Call

     AHC will conduct a conference call today at 2:30 p.m. CDT to discuss financial results. The conference call will be available via Webcast by accessing the Company’s Web site (www.ahbelo.com/invest) or by dialing 1-800-288-8976 (USA) or 651-291-0618 (International). A replay line will be available at 800-475-6701 (USA) or 320-365-3844 (International) from 4:30 p.m. CDT on November 3 until 11:59 p.m. CST on November 10, 2010. The access code for the replay is 174879.

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 a diverse group of Web sites. A. H. Belo publishes The Dallas Morning News, Texas’ leading newspaper and winner of nine 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, and its partnerships and/or investments include the Yahoo! Newspaper Consortium and Classified Ventures, owner of cars.com.

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P. O. Box 224866 Dallas, Texas 75222-4866 Tel. 214.977.8200 Fax 214.977.8201
www.ahbelo.com Deliveries: 400 South Record Street Dallas, Texas 75202-4806

Newspaper Publisher A. H. Belo Corporation Reports
Third Quarter 2010 Net Income of $4.6 Million
November 3, 2010
Page Four

A. H. Belo also owns direct mail and commercial printing businesses. Additional information is available at www.ahbelo.com or by contacting David A. Gross, vice president/Investor Relations and Strategic Analysis, at 214-977-4810.

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, pension plan contributions, 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 Audit Bureau of Circulations; challenges in achieving expense reduction goals, and on schedule, and the resulting potential effects on operations; 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; pension plan matters; general economic conditions and changes in interest rates; 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 for the year ended December 31, 2009, and other public disclosures and filings with the Securities and Exchange Commission.

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P. O. Box 224866 Dallas, Texas 75222-4866 Tel. 214.977.8200 Fax 214.977.8201
www.ahbelo.com Deliveries: 400 South Record Street Dallas, Texas 75202-4806

A. H. Belo Corporation
Condensed Consolidated Statements of Operations

		Three months ended								Nine months ended
		September 30,								September 30,
In thousands, except per share amounts (unaudited)		2010				2009				2010				2009
Net operating revenues
Advertising		$	74,388			$	83,816			$	223,578			$	260,638
Circulation			34,927				35,228				105,970				100,208
Other			9,817				7,823				26,914				22,019
Total net operating revenues			119,132				126,867				356,462				382,865
Operating Costs and Expenses
Salaries, wages and employee benefits			49,322				51,668				162,394				166,283
Other production, distribution and operating costs			43,280				48,920				136,341				155,652
Newsprint, ink and other supplies			13,280				12,302				36,994				48,345
Asset impairment			857				20,000				862				102,689
Depreciation			7,496				9,257				25,101				29,456
Amortization			1,310				1,625				3,930				4,874
Total operating costs and expenses			115,545				143,772				365,622				507,299
Loss from operations			3,587				(16,905	)			(9,160	)			(124,434	)
Other income and expense
Interest expense			(199	)			(211	)			(605	)			(802	)
Other income, net			1,805				240				7,798				362
Total other income (expense)			1,606				29				7,193				(440	)
Earnings
Income (loss) before income taxes			5,193				(16,876	)			(1,967	)			(124,874	)
Income tax expense (benefit)			621				(11,110	)			2,760				(11,331	)
Net income (loss)		$	4,572			$	(5,766	)		$	(4,727	)		$	(113,543	)
Net income (loss) per share
Basic		$	0.21			$	(0.28	)		$	(0.23	)		$	(5.53	)
Diluted		$	0.20			$	(0.28	)		$	(0.23	)		$	(5.53	)
Average shares outstanding
Basic			22,127				20,538				20,935				20,529
Diluted			22,391				20,538				20,935				20,529

A. H. Belo Corporation
Condensed Consolidated Balance Sheets

		September 30,				December 31,
In thousands		2010				2009
		(unaudited)
Assets
Current assets
Cash and cash equivalents		$	81,304			$	24,503
Accounts receivable, net			46,245				62,977
Other current assets			24,899				34,464
Total current assets			152,448				121,944
Property, plant and equipment, net			180,664				203,329
Intangible assets, net			48,080				52,009
Other assets			26,376				27,145
Total assets		$	407,568			$	404,427
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable		$	18,734			$	19,191
Accrued expenses			38,229				29,788
Advance subscription payments			23,814				26,713
Total current liabilities			80,777				75,692
Deferred income taxes			1,125				223
Other liabilities			6,805				6,915
Total shareholders’ equity			318,861				321,597
Total liabilities and shareholders’ equity		$	407,568			$	404,427

A. H. Belo Corporation
Reconciliation of Net Income to EBITDA and Adjusted EBITDA

		Three months ended								Nine months ended
		September 30,								September 30,
In thousands (unaudited)		2010				2009				2010				2009
AS REPORTED
Net Income/(Loss)		$	4,572			$	(5,766	)		$	(4,727	)		$	(113,543	)
Addback/(Subtract):
Depreciation and amortization			8,806				10,882				29,031				34,330
Interest expense			199				211				605				802
Income tax expense (benefit)			621				(11,110	)			2,760				(11,331	)
EBITDA (1)			14,198				(5,783	)			27,669				(89,742	)
Addback/(Subtract):
Pension expense			1,578				7				12,407				7
Adjusted EBITDA (1)		$	15,776			$	(5,776	)		$	40,076			$	(89,735	)