Newspaper Publisher A. H. Belo Corporation Reports Third Quarter 2009 Financial Results
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During the third quarter,
In
In the third quarter, excluding the non-cash impairment charge,
As of
Third Quarter Highlights
Total revenue decreased 17.5 percent in the third quarter versus the prior year quarter.
Advertising revenue, including print and Internet revenues, decreased 27.0 percent, and classified revenue decreased 40.6 percent. In
The Company continues to focus on high-quality, local content and value-added circulation for its advertisers. In the third quarter, circulation revenue rose 11.6 percent due to pricing actions taken by
Total consolidated operating expenses in the third quarter were
Corporate and non-operating expenses, net of costs allocated to operating units, decreased by
Non-GAAP Financial Measures
Reconciliations of consolidated and newspaper EBITDA to net income 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 Nine months ended September 30, September 30, ----------------------------------------------------------------------- In thousands, except per share amounts 2009 2008 2009 2008 ----------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (unaudited) Net operating revenues Advertising $83,816 $114,811 $260,638 $364,575 Circulation 35,228 31,563 100,208 90,943 Other 7,823 7,459 22,019 21,757 ----- ----- ------ ------ Total net operating revenues 126,867 153,833 382,865 477,275 Operating Costs and Expenses Salaries, wages and employee benefits 51,668 77,804 166,283 220,909 Other production, distribution and operating costs 48,920 60,768 155,652 182,682 Newsprint, ink and other supplies 12,302 23,523 48,345 70,230 Asset impairment 20,000 4,535 102,689 4,535 Depreciation 9,257 10,962 29,456 35,414 Amortization 1,625 1,625 4,874 4,875 ----- ----- ----- ----- Total operating costs and expenses 143,772 179,217 507,299 518,645 Loss from operations (16,905) (25,384) (124,434) (41,370) Other (expense) and income Interest expense (211) (52) (802) (3,283) Other income (expense), net 240 (25) 362 1,237 --- --- --- ----- Total other (expense) income 29 (77) (440) (2,046) Earnings Loss before income taxes (16,876) (25,461) (124,874) (43,416) Income tax benefit (11,110) (8,203) (8,970) (14,243) ------- ------ ------ ------- Net Loss $(5,766) $(17,258) $(115,904) $(29,173) ======= ======== ========= ======== Net loss per share Basic and Diluted $(.28) $(.84) $(5.65) $(1.42) Average shares outstanding Basic and Diluted 20,538 20,479 20,521 20,477 Cash dividends declared per share $- $0.375 $- $0.625 == ====== == ======A. H. Belo Corporation Condensed Consolidated Balance Sheets ------------------------------------------------------------------- September 30, December 31, In thousands 2009 2008 ------------------------------------------------------------------- (unaudited) Assets Current assets Cash and cash equivalents $10,825 $9,934 Accounts receivable, net 57,697 77,383 Other current assets 25,161 37,400 ------ ------ Total current assets 93,683 124,717 Property, plant and equipment, net 218,133 263,744 Intangible assets, net 53,634 139,449 Other assets 26,957 29,768 ------ ------ Total assets $392,407 $557,678 ======== ======== Liabilities and Shareholders' Equity Current liabilities Current portion of notes payable $- $10,000 Accounts payable 14,364 32,950 Accrued expenses 32,701 42,834 Other current liabilities 30,821 29,358 ------ ------ Total current liabilities 77,886 115,142 Deferred income taxes 5,266 6,620 Other liabilities 15,322 27,264 Total shareholders' equity 293,933 408,652 ------- ------- Total liabilities and shareholders' equity $392,407 $557,678 ======== ========A. H. Belo Corporation Consolidated EBITDA Three months ended Nine months ended September 30, September 30, ------------------------------------------------ ----------------- In thousands (unaudited) 2009 2008 2009 2008 ------------------------------------------------ ----------------- Consolidated EBITDA (1) $14,217 $(8,287) $12,947 $4,691 Asset impairment (20,000) (4,535) (102,689) (4,535) Depreciation and Amortization (10,882) (12,587) (34,330) (40,289) Interest Expense (211) (52) (802) (3,283) Income Tax (Expense) Benefit 11,110 8,203 8,970 14,243 ------ ----- ----- ------ Net Loss $(5,766) $(17,258) $(115,904) $(29,173) ======= ======== ========= ========A. H. Belo Corporation Newspaper EBITDA Three months ended Nine months ended September 30, September 30, ------------------------------------------------ ----------------- In thousands (unaudited) 2009 2008 2009 2008 ------------------------------------------------ ----------------- Newspaper EBITDA (1) $19,427 $1,468 $30,232 $35,202 Corporate & Non-Operating Company Expenses (5,450) (9,730) (17,647) (31,748) Other income, net 240 (25) 362 1,237 Asset impairment (20,000) (4,535) (102,689) (4,535) Depreciation and Amortization (10,882) (12,587) (34,330) (40,289) Interest Expense (211) (52) (802) (3,283) Income Tax (Expense) Benefit 11,110 8,203 8,970 14,243 ------ ----- ----- ------ Net Loss $(5,766) $(17,258) $(115,904) $(29,173) ======= ======== ========= ======== 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 inthe 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.