A. H. Belo Corporation Announces First Quarter 2014 Financial Results from Continuing Operations
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DALLAS--(BUSINESS WIRE)--Apr. 29, 2014--
Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization (“EBITDA”) from continuing operations with net investment-related 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 5 percent. Digital revenue increased 18 percent over the prior year quarter, primarily due to continued growth in automotive digital revenue at
Advertising revenue from niche publications, which is a component of the display, preprint, classified and digital revenues reported above, decreased 5 percent compared to the prior year period due primarily to lower advertising revenue at The
Circulation revenue increased 1 percent to
Printing and distribution revenue increased 9 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
Investments
In
The Company continues to explore a potential sale of The
2014 Guidance
For the full-year 2014, total capital expenditures are expected to be in the range 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, revenues, expenses, 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; and 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) | 2014 | 2013 | |||||||||
| Net Operating Revenue | |||||||||||
| Advertising and marketing services | $ | 46,860 | $ | 49,214 | |||||||
| Circulation | 29,347 | 28,944 | |||||||||
| Printing and distribution | 9,379 | 8,582 | |||||||||
| Total net operating revenue | 85,586 | 86,740 | |||||||||
| Operating Costs and Expense | |||||||||||
| Employee compensation and benefits | 36,837 | 39,342 | |||||||||
| Other production, distribution and operating costs | 34,525 | 34,905 | |||||||||
| Newsprint, ink and other supplies | 11,706 | 12,049 | |||||||||
| Depreciation | 4,062 | 4,813 | |||||||||
| Amortization | 1,123 | 1,123 | |||||||||
| Total operating costs and expense | 88,253 | 92,232 | |||||||||
| Loss from operations | (2,667 | ) | (5,492 | ) | |||||||
| Other Income (Expense), Net | |||||||||||
| Gains (losses) on equity method investments, net | (408 | ) | 549 | ||||||||
| Interest expense | (1 | ) | (411 | ) | |||||||
| Other income (loss), net | 118 | (104 | ) | ||||||||
| Total other income (expense), net | (291 | ) | 34 | ||||||||
| Loss from Continuing Operations Before Income Taxes | (2,958 | ) | (5,458 | ) | |||||||
| Income tax provision | 907 | 436 | |||||||||
| Loss from Continuing Operations | (3,865 | ) | (5,894 | ) | |||||||
| Loss from discontinued operations | — | (2,199 | ) | ||||||||
| Gain (loss) related to the divestiture of discontinued operations, net | (178 | ) | — | ||||||||
| Tax benefit from discontinued operations | — | (17 | ) | ||||||||
| Loss from Discontinued Operations, Net | (178 | ) | (2,182 | ) | |||||||
| Net Loss | (4,043 | ) | (8,076 | ) | |||||||
| Net loss attributable to noncontrolling interests | (6 | ) | (54 | ) | |||||||
| Net Loss Attributable to A. H. Belo Corporation | $ | (4,037 | ) | $ | (8,022 | ) | |||||
| Per Share Basis | |||||||||||
| Basic and Diluted | |||||||||||
| Continuing operations | $ | (0.18 | ) | $ | (0.27 | ) | |||||
| Discontinued operations | (0.01 | ) | (0.10 | ) | |||||||
| Net loss attributable to A. H. Belo Corporation | $ | (0.19 | ) | $ | (0.37 | ) | |||||
| Weighted average shares outstanding | |||||||||||
| Basic and Diluted | 21,918,800 | 22,032,803 | |||||||||
| A. H. Belo Corporation | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| March 31, | December 31, | |||||||||
| In thousands (unaudited) | 2014 | 2013 | ||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 82,540 | $ | 82,193 | ||||||
| Accounts receivable, net | 32,606 | 41,174 | ||||||||
| Other current assets | 21,092 | 15,685 | ||||||||
| Assets of discontinued operations | 778 | 1,633 | ||||||||
| Total current assets | 137,016 | 140,685 | ||||||||
| Property, plant and equipment, net | 94,257 | 97,112 | ||||||||
| Intangible assets, net | 28,801 | 29,924 | ||||||||
| Other assets | 10,902 | 11,497 | ||||||||
| Total assets | $ | 270,976 | $ | 279,218 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 14,950 | $ | 15,488 | ||||||
| Accrued expenses | 18,126 | 17,640 | ||||||||
| Advance subscription payments | 19,748 | 19,184 | ||||||||
| Liabilities of discontinued operations | 628 | 2,028 | ||||||||
| Total current liabilities | 53,452 | 54,340 | ||||||||
| Long-term pension liabilities | 47,257 | 50,082 | ||||||||
| Other liabilities | 6,592 | 6,020 | ||||||||
| Total shareholders’ equity | 163,675 | 168,776 | ||||||||
| Total liabilities and shareholders’ equity | $ | 270,976 | $ | 279,218 | ||||||
| A. H. Belo Corporation | |||||||||||
| Reconciliation of Net Loss to EBITDA and Adjusted EBITDA from Continuing Operations | |||||||||||
| Three Months Ended March 31, | |||||||||||
| In thousands (unaudited) | 2014 | 2013 | |||||||||
| Net Loss Attributable to A. H. Belo Corporation | $ | (4,037 | ) | $ | (8,022 | ) | |||||
| Less: Loss from discontinued operations, net | (178 | ) | (2,182 | ) | |||||||
| Plus: Net loss attributable to noncontrolling interests | (6 | ) | (54 | ) | |||||||
| Loss from Continuing Operations | (3,865 | ) | (5,894 | ) | |||||||
| Depreciation and amortization | 5,185 | 5,936 | |||||||||
| Interest expense | 1 | 411 | |||||||||
| Income tax provision | 907 | 436 | |||||||||
| EBITDA from Continuing Operations | $ | 2,228 | $ | 889 | |||||||
| Addback: | |||||||||||
| Net investment-related losses | $ | 934 | $ | — | |||||||
| Adjusted EBITDA from Continuing Operations | $ | 3,162 | $ | 889 | |||||||
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, as applicable, by adding back to EBITDA non-cash impairment expense and net investment-related losses.
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. Adjusted EBITDA is also used by management to evaluate the cash flows available for capital spending, investing, pension contributions (required and voluntary), dividends and other equity-related transactions. Neither EBITDA nor Adjusted 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 GAAP, and these non-GAAP measures may not be comparable to similarly-titled measures of other companies.
In previous periods, the Company added back pension expense in the determination of Adjusted EBITDA. Management reassessed this measurement and no longer excludes pension expense from Adjusted EBITDA.
Source:
A. H. Belo Corporation
Alison K. Engel, 214-977-2248
Senior Vice President/Chief Financial Officer