Newspaper Publisher A. H. Belo Corporation Reports First Quarter 2009 Financial Results
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The Company had (
The Company's borrowings were
Robert W. Decherd, chairman, president and Chief Executive Officer, said,
"
First Quarter Highlights
Total revenue decreased 19.8 percent in the first quarter versus the prior year.
Advertising revenue, including print and Internet revenue, was down 28.2
percent, primarily due to declines in classified revenues in all AHC markets.
AHC's Internet revenues accounted for 7.2 percent of total revenues in the
quarter. Internet revenues were
The Company continues to focus on editorial quality and value-added
circulation for its advertisers. In the first quarter, circulation revenue
rose 9 percent primarily due to increased prices for single copy and home
delivery in
Including the
The non-cash goodwill impairment charge at The
Corporate and non-operating expenses declined by
Non-GAAP Financial Measures
Reconciliations of consolidated and newspaper EBITDA to net loss are included as exhibits to this release.
Financial Results Conference Call
AHC will conduct a conference call today at
About
Statements in this communication concerning
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 trends and other circulation matters, including changes in
readership patterns and demography, and audits and related actions by the
A. H. Belo Corporation
Consolidated Statements of Operations
Three months ended
March 31,
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In thousands, except per share amounts 2009 2008
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(unaudited) (unaudited)
Net operating revenues
Advertising $89,331 $124,423
Circulation 31,714 29,105
Other 7,449 6,659
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Total net operating revenues 128,494 160,187
Operating Costs and Expenses
Salaries, wages and employee benefits 62,894 74,265
Other production, distribution
and operating costs 55,867 60,966
Newsprint, ink and other supplies 19,618 22,969
Goodwill Impairment 80,940 -
Depreciation 10,536 12,241
Amortization 1,624 1,625
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Total operating costs and expenses 231,479 172,066
Loss from operations (102,985) (11,879)
Other income and expense
Interest expense (300) (3,066)
Other income, net 822 957
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Total other income (expense) 522 (2,109)
Earnings
Loss before income taxes (102,463) (13,988)
Income tax expense (benefit) 605 (5,270)
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Net Loss $(103,068) $(8,718)
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Net loss per share
Basic and Diluted $(5.03) $(.43)
Average shares outstanding
Basic and Diluted 20,506 20,473
Cash dividends declared per share $- $0.250
========== =========
A. H. Belo Corporation
Condensed Consolidated Balance Sheets
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March 31, December 31,
In thousands 2009 2008
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(unaudited)
Assets
Current assets
Cash and temporary cash investments $6,809 $9,934
Accounts receivable, net 56,969 77,383
Other current assets 34,881 37,400
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Total current assets 98,659 124,717
Property, plant and equipment, net 253,800 263,744
Intangible assets, net 56,884 139,449
Other assets 38,379 29,768
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Total assets $447,722 $557,678
========== =========
Liabilities and Shareholders' Equity
Current liabilities
Current portion of long term debt $12,650 $10,000
Accounts payable 19,666 32,950
Accrued expenses 37,793 42,834
Other current liabilities 30,763 29,358
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Total current liabilities 100,872 115,142
Deferred income taxes 15,143 6,620
Other liabilities 25,853 27,264
Total shareholders' equity 305,854 408,652
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Total liabilities and shareholders'
equity $447,722 $557,678
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A. H. Belo Corporation
Consolidated EBITDA
Three months ended
March 31,
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In thousands (unaudited) 2009 2008
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Consolidated EBITDA (1) $(9,063) $2,944
Goodwill impairment (80,940) -
Depreciation and Amortization (12,160) (13,866)
Interest Expense (300) (3,066)
Income Tax (Expense) Benefit (605) 5,270
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Net Loss $(103,068) $(8,718)
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A. H. Belo Corporation
Newspaper EBITDA
Three months ended
March 31,
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In thousands (unaudited) 2009 2008
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Newspaper EBITDA (1) $(2,321) $14,429
Corporate & Non-Operating Company
Expenses (7,564) (12,442)
Other income, net 822 957
Goodwill impairment (80,940) -
Depreciation and Amortization (12,160) (13,866)
Interest Expense (300) (3,066)
Income Tax (Expense) Benefit (605) 5,270
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Net Loss $(103,068) $(8,718)
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Note 1: The Company defines Consolidated EBITDA as net earnings before
interest expense, income taxes, goodwill impairment, depreciation and
amortization and Newspaper EBITDA as net earnings before corporate and
non-operating company expenses, other income net, interest expense, income
taxes, goodwill impairment, 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.