DALLAS, Feb. 24 /PRNewswire-FirstCall/ -- Newspaper publisher A. H.
Belo Corporation (NYSE:AHC) reported preliminary fourth quarter
2009 and preliminary full-year 2009 financial results today and
will discuss these preliminary results during the conference call
scheduled for 1:00 p.m. CST. On February 12, 2010, the Company
issued a press release stating that its 2009 audit is substantially
complete but additional time is required to finalize the accounting
treatment of its future pension obligations with the Company's new
public accounting firm. When this work is finalized, the Company
anticipates recording a non-cash adjustment related to its future
pension obligations. At that time, the Company will finalize its
preliminary fourth quarter and preliminary full year financial
results. GAAP and non-GAAP financial measures presented in this
press release and during the conference call scheduled for later
today (including but not limited to expenses, EBITDA and net
income) are preliminary, do not reflect any pension adjustment(s)
for the fourth quarter or full year, and will change. Today, the
Company reported fourth quarter and full-year 2009 revenues of
$135.5 million and $518.3 million, respectively, and preliminary
net income of $5.6 million, or $0.27 per share, and a preliminary
net loss of $110.3 million, or ($5.37) per share, for the fourth
quarter and full year, respectively. The fourth quarter results
include non-cash charges of $3.7 million related to the write-off
of a Web content management system and $1.2 million related to
investment write-offs. Fourth quarter results also include a charge
of $0.4 million related to severance. Full year results include
non-cash impairment charges of $106.4 million related to goodwill
and other asset write-offs, including the Web content management
system, and $2.3 million related to investment write-offs. Full
year results also include a charge of $4.2 million related to
severance and related costs. These charges were partially offset by
$1.1 million related to insurance proceeds that the Company
received in the second quarter of 2009. Robert W. Decherd,
chairman, president and Chief Executive Officer, said, "In the
fourth quarter of 2009, The Dallas Morning News, The Providence
Journal and The Press-Enterprise saw their lowest year-to-year
percent declines in advertising revenue of the year. For the full
year, total consolidated operating expenses, including all non-cash
and cash charges mentioned above, decreased by $76.6 million and
consolidated EBITDA increased by $36.2 million. As of December 31,
2009, A. H. Belo had no borrowings outstanding under its bank
credit facility and remained in compliance with the facility's
covenants. The Company had approximately $24.5 million of cash and
cash equivalents. Although macroeconomic and secular challenges
remain, A. H. Belo will continue to focus on managing expenses,
producing high-quality local content, and delivering value-added
circulation to its advertisers." In the fourth quarter of 2009, A.
H. Belo generated consolidated EBITDA of $20.2 million, excluding
the $0.4 million charge for severance. For the full year, A. H.
Belo generated consolidated EBITDA of $37.0, excluding the $4.2
million charge for severance and related costs. The newspaper
EBITDA margin was 20.9 percent in the fourth quarter and 11.9
percent for the full year, excluding charges for severance and
severance and related costs, respectively. EBITDA margins in the
fourth quarter and for the full year were highest at The Providence
Journal, followed by The Dallas Morning News and The
Press-Enterprise. For the full year, The Providence Journal, The
Dallas Morning News and The Press-Enterprise each generated
positive EBITDA. Fourth Quarter Highlights Total revenue decreased
15.3 percent in the fourth quarter versus the prior year quarter.
Advertising revenue, including print and Internet revenue, was down
23.5 percent. Retail and general advertising were down 30.9 percent
and 17.0 percent, respectively. The percent decline in retail
advertising revenue was smallest at The Dallas Morning News,
followed by The Press-Enterprise and The Providence Journal. At The
Dallas Morning News, classified revenue, excluding Internet
classified revenue, decreased 31.1 percent. A. H. Belo's Internet
revenues accounted for 7.5 percent of total revenues in the
quarter. Internet revenues were $10.1 million, 8.5 percent below
the same period last year. The Company continues to focus on
editorial quality and value-added circulation for its advertisers.
In the fourth quarter, circulation revenue rose 12.0 percent due to
price increases implemented during 2009 at The Dallas Morning News
and The Providence Journal. Despite the non-cash charge of $3.7
million related to the Web content management system, A. H. Belo's
total consolidated operating expenses in the fourth quarter
decreased $65.3 million, or 33.5 percent, versus the same period
last year. This decrease was primarily driven by declines in
salaries, wages, benefits and newsprint. Full Year Highlights Total
revenue decreased 18.7 percent in the full-year 2009 versus the
prior year. Advertising revenue, including print and Internet
revenue, decreased 27.3 percent. Retail and general advertising
were down 27.4 percent and 19.7 percent, respectively. The percent
decline in retail advertising revenue was smallest at The Dallas
Morning News, followed by The Press-Enterprise and The Providence
Journal. At The Morning News, classified revenue, excluding
Internet classified revenue, decreased 45.4 percent and was the
most significant driver of the decline in advertising revenue. A.
H. Belo's Internet revenues accounted for 7.5 percent of total
revenues for the year. Internet revenues were $38.9 million, 17.3
percent below the prior year. A. H. Belo's circulation revenue
increased 10.7 percent versus the prior year. For the full year,
expense reduction initiatives resulted in a $76.6 million or 10.7
percent decrease in total consolidated operating expenses. This
decrease was primarily driven by declines in salaries, wages,
benefits and newsprint. Full year results include non-cash
impairment charges of $106.4 million related to goodwill and other
asset write-offs, including $3.7 million for the Web content
management system, and $2.3 million related to investment
write-offs. Full year results also include a charge of $4.2 million
related to severance and related costs. These charges were
partially offset by $1.1 million in insurance proceeds received in
the second quarter of 2009. In 2009, newsprint consumption
decreased 36.6 percent versus the prior year to 71,010 metric tons,
and the average purchase price per metric ton of newsprint declined
18.0 percent versus the prior year to $575 per metric ton.
Newsprint expense decreased $27.7 million or 37.3 percent. As of
December 31, 2009, A. H. Belo had approximately 2,300 full-time and
280 part-time employees. Financial Results Conference Call A. H.
Belo will conduct a conference call today at 1:00 p.m. CST to
discuss financial and strategic results. The listen-only conference
call will be available via Webcast by accessing the Company's Web
site (http://www.ahbelo.com/invest) or by dialing 1-800-288-8974
(USA) or 612-326-0027 (International). A replay line will be
available at 800-475-6701 (USA) 320-365-3844 (International) from
3:00 p.m. CST on February 24 until 11:59 p.m. CST on March 3, 2010.
The access code for the replay is 146833. 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
eight 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. A.
H. Belo also owns direct mail and commercial printing businesses.
Additional information is available at http://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, 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 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; 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, 2008, and other public disclosures and
filings with the Securities and Exchange Commission. A. H. Belo
Corporation Preliminary(1) Consolidated Statements of Operations
Three months ended Twelve months ended December 31, December 31, In
thousands, except ------------ ------------ per share amounts 2009
2008 2009 2008 -------------------- ---- ---- ---- ---- (unaudited)
(unaudited) (unaudited) Net operating revenues Advertising $91,731
$119,862 $352,368 $484,437 Circulation 36,341 32,438 136,549
123,381 Other 7,411 7,739 29,431 29,496 ----- ----- ------ ------
Total net operating revenues 135,483 160,039 518,348 637,314
Operating Costs and Expenses Salaries, wages and employee benefits
48,317 77,374 214,600 298,285 Other production, distribution and
operating costs 53,675 65,741 209,325 248,423 Newsprint, ink and
other supplies 12,642 24,379 60,987 94,608 Asset impairment 3,699
14,145 106,389 18,680 Depreciation 9,402 11,363 38,857 46,776
Amortization 1,625 1,625 6,499 6,499 ----- ----- ----- ----- Total
operating costs and expenses 129,360 194,627 636,657 713,271
Income/(loss) from operations 6,123 (34,588) (118,309) (75,957)
Other (expense) and income Interest expense (580) (745) (1,382)
(4,028) Other (expense) income, net (1,041) (629) (680) 608 ------
---- ---- --- Total other (expense) income (1,621) (1,374) (2,062)
(3,420) Earnings Loss before income taxes 4,502 (35,962) (120,371)
(79,377) Income tax benefit (1,144) (2,832) (10,114) (17,074)
------ ------ ------- ------- Net Income (loss) $5,646 $(33,130)
$(110,257) $(62,303) ===== ======== ========= ======== Net income
(loss) per share Basic and Diluted $0.27 $(1.62) $(5.37) $(3.04)
Average shares outstanding Basic and Diluted 20,598 20,479 20,548
20,478 (1) On February 12, 2010, the Company issued a press release
stating that its 2009 audit is substantially complete but
additional time is required to finalize the accounting treatment of
its future pension obligations with the Company's new public
accounting firm. When this work is finalized, the Company
anticipates recording a non-cash adjustment related to its future
pension obligations. At that time, the Company will finalize its
preliminary fourth quarter and preliminary full year financial
results. GAAP and non-GAAP financial measures presented in this
press release and during the conference call scheduled for later
today (including but not limited to expenses, EBITDA and net
income) are preliminary, do not reflect any pension adjustment(s)
for the fourth quarter or full-year, and will change. A. H. Belo
Corporation Preliminary(1) Condensed Consolidated Balance Sheets
December 31, December 31, In thousands 2009 2008 ------------- ----
---- (unaudited) Assets Current assets Cash and cash equivalents
$24,503 $9,934 Accounts receivable, net 62,977 77,383 Other current
assets 35,796 31,985 ------ ------ Total current assets 123,276
119,302 Property, plant and equipment, net 203,329 263,744
Intangible assets, net 52,009 139,449 Other assets 27,146 29,768
------ ------ Total assets $405,760 $552,263 ======== ========
Liabilities and Shareholders' Equity Current liabilities Current
portion of notes payable $- $10,000 Accounts payable 19,191 32,950
Accrued expenses 38,440 45,857 Advance subscription payments 26,713
26,335 ------ ------ Total current liabilities 84,344 115,142
Deferred income taxes 1,555 1,205 Other liabilities 15,372 27,264
Total shareholders' equity 304,489 408,652 ------- ------- Total
liabilities and shareholders' equity $405,760 $552,263 ========
======== (1) On February 12, 2010, the Company issued a press
release stating that its 2009 audit is substantially complete but
additional time is required to finalize the accounting treatment of
its future pension obligations with the Company's new public
accounting firm. When this work is finalized, the Company
anticipates recording a non-cash adjustment related to its future
pension obligations. At that time, the Company will finalize its
preliminary fourth quarter and preliminary full year financial
results. GAAP and non-GAAP financial measures presented in this
press release and during the conference call scheduled for later
today (including but not limited to expenses, EBITDA and net
income) are preliminary, do not reflect any pension adjustment(s)
for the fourth quarter or full-year, and will change. A. H. Belo
Corporation Preliminary(1) Consolidated EBITDA Three months ended
Twelve months ended December 31, December 31,
----------------------- ------------ ------------ In thousands
(unaudited) 2009 2008 2009 2008 ------------------------ ---- ----
---- ---- Consolidated EBITDA (2) $19,808 $(8,084) $32,756 $(3,394)
Asset impairment (3,699) (14,145) (106,389) (18,680) Depreciation
and Amortization (11,027) (12,988) (45,356) (53,275) Interest
Expense (580) (745) (1,382) (4,028) Income Tax Benefit (Expense)
1,144 2,832 10,114 17,074 ----- ----- ------ ------ Net Income
(loss) $5,646 $(33,130) $(110,257) $(62,303) ====== ========
========= ======== A. H. Belo Corporation Newspaper EBITDA Three
months ended Twelve months ended December 31, December 31,
------------------------ ------------ ------------ In thousands
(unaudited) 2009 2008 2009 2008 ------------------------ ---- ----
---- ---- Newspaper EBITDA (2) $27,996 $6,196 $58,230 $41,399
Corporate & Non-Operating Company Expenses (7,147) (13,651)
(24,794) (45,401) Other income, net (1,041) (629) (680) 608 Asset
impairment (3,699) (14,145) (106,389) (18,680) Depreciation and
Amortization (11,027) (12,988) (45,356) (53,275) Interest Expense
(580) (745) (1,382) (4,028) Income Tax Benefit (Expense) 1,144
2,832 10,114 17,074 ----- ----- ------ ------ Net Income (loss)
$5,646 $(33,130) $(110,257) $(62,303) ====== ======== =========
======== (1) On February 12, 2010, the Company issued a press
release stating that its 2009 audit is substantially complete but
additional time is required to finalize the accounting treatment of
its future pension obligations with the Company's new public
accounting firm. When this work is finalized, the Company
anticipates recording a non-cash adjustment related to its future
pension obligations. At that time, the Company will finalize its
preliminary fourth quarter and preliminary full year financial
results. GAAP and non-GAAP financial measures presented in this
press release and during the conference call scheduled for later
today (including but not limited to expenses, EBITDA and net
income) are preliminary, do not reflect any pension adjustment(s)
for the fourth quarter or full-year, and will change. (2) 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. DATASOURCE: A. H. Belo Corporation
CONTACT: David A. Gross, vice president/Investor Relations and
Strategic Analysis of A. H. Belo Corporation, +1-214-977-4810 Web
Site: http://www.ahbelo.com/
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