Business News
Newspaper Publisher A. H. Belo Corporation Reports First Quarter 2010 Financial Results
Wednesday 05. May 2010 - Newspaper publisher A. H. Belo Corporation (NYSE:AHC) today reported a net loss of $0.44 per share in the first quarter of 2010 compared to a net loss of $4.91 per share in the first quarter of 2009.
Consolidated EBITDA in the first quarter of 2010 was $2.3 million, an increase of $11.3 million compared to the first quarter of 2009. Consolidated EBITDA in the first quarter of 2010 excluding pension expenses was $7.6 million, an increase of $16.7 million compared to the first quarter of 2009.
Robert W. Decherd, chairman, president and Chief Executive Officer, said, “Total first quarter revenue decreased 9.9 percent compared to the first quarter of 2009, the lowest year-to-year percent decline in two years. Advertising revenue, including print and digital revenue, was within 100 basis points of the Company’s 2010 Financial Plan for the first quarter. Circulation revenue increased 12.2 percent compared to the first quarter of 2009. These improvements reflect the Company’s strategy of focusing on selected audiences, creating high-quality local content and delivering valuable audiences to advertisers.”
“As of March 31, the Company had no borrowings outstanding under its bank credit facility, remained in compliance with the facility’s covenants and had approximately $43 million of cash and cash equivalents. We will continue to manage expenses aggressively to maximize EBITDA and operating cash flow over the long-term,” Decherd said.
Operating Results
In the first quarter of 2010, total revenue was $115.8 million, a decrease of 9.9 percent compared to the first quarter of 2009. The percent decrease in total revenue was lowest at The Providence Journal, followed by The Dallas Morning News and The Press-Enterprise. Advertising revenue, including print and digital revenue, decreased 19.2 percent. Although digital revenue decreased 8.0 percent to $8.5 million, non-classified digital revenue increased 7.1 percent to $3.6 million. Due to circulation pricing actions implemented in Dallas and Providence in 2009, total circulation revenue increased 12.2 percent. Other revenue increased 7.2 percent.
Total consolidated operating expenses in the first quarter of 2010 were $124 million, a decrease of 46.4 percent compared to the first quarter of 2009. Excluding the $80.9 million non-cash goodwill impairment charge at The Providence Journal in the first quarter of 2009, total consolidated operating expenses in the first quarter of 2010 decreased 17.6 percent. The Company’s newsprint expense in the first quarter of 2010 was $8.5 million, a decrease of 46.2 percent compared to the first quarter of 2009. In the first quarter of 2010, newsprint consumption decreased 33.0 percent and newsprint cost per metric ton decreased 19.7 percent. The Company’s average purchase price per metric ton for newsprint declined 23.3 percent in the first quarter of 2010 compared to the first quarter of 2009.
In the first quarter of 2010, Newspaper EBITDA was $9.4 million, an improvement of $11.8 million compared to the first quarter of 2009. Newspaper EBITDA margin was highest at The Providence Journal, followed by The Dallas Morning News and The Press-Enterprise. At The Press-Enterprise, the Newspaper EBITDA margin improved significantly compared to the first quarter of 2009 due to aggressive expense management.
The Company has maintained its long-standing commitment to delivering high-quality local content through editorial investments and targeted new products. In April 2010, the 2010 Pulitzer Prize for Editorial Writing was awarded to The Dallas Morning News’ Tod Robberson, Colleen McCain Nelson and William McKenzie for their “relentless editorials deploring the stark social and economic disparity between the city’s better-off northern half and distressed southern half.”
Corporate
In the first quarter of 2010, corporate and non-operating expenses, net of costs allocated to operating units, were $8.3 million, a decrease of 4.0 percent compared to the first quarter of 2009.
Non-GAAP Financial Measures
Reconciliations of Consolidated and Newspaper EBITDA to net loss are included as exhibits to this release.