A. H. Belo Corporation Provides Business Update in Response to COVID-19 Outbreak
07 April 2020 - 2:15AM
A. H. Belo Corporation (NYSE: AHC) announced today that it is
taking several actions to maintain operating momentum while
preserving cash and financial flexibility.
Grant Moise, president and publisher of The Dallas Morning News,
said, “We have entered an economic reality where our growth in
audience is not enough to offset near-term challenges in
advertising revenue. While we are aggressively reducing
non-compensation related expenses, that will not be enough. Base
compensation for all employees is being reduced between 3 percent
and 17 percent. Total compensation for senior executives may be
reduced by as much as 27 percent. There will be no immediate
layoffs or furloughs.
“The responsible stewardship of the Company’s balance sheet will
allow us to come out of the downturn in a position of comparative
strength. Our unduplicated, high-quality journalism and
public engagement have never been more important.”
Katy Murray, executive vice president and Chief Financial
Officer, said, “In addition to these operating actions, the Board
of Directors is reducing capital expenditures to less than $1.0
million for this year, lowering director compensation by 17 percent
going forward, and lowering the quarterly dividend rate to $0.04
per share from the current rate of $0.08 per share effective in the
third quarter of this year. Commencing with the 2020 annual meeting
of shareholders, non-employee directors will receive an annual
retainer of $105,000 with no additional amounts for service as Lead
Director or committee chair. The size of the Board will be reduced
by two at the annual meeting, as directors Ty Miller and Nicole
Small will not stand for reelection.
“In regards to the Company’s 2019 SEC quarterly and annual
filings, we are pleased to have the 2019 first and second quarter
amended reports on file and we expect to file the third
quarter 2019 Form 10-Q by the middle of this month. On
March 16, 2020, the Company availed itself of a 45-day
extension to file its 2019 Form 10-K based on the Securities and
Exchange Commission’s March 4, 2020 order permitting certain
exemptions and extensions for COVID-19-related delays. The
Company’s 2019 Form 10-K is now due April 30, 2020, and is eligible
for an additional 15-day extension. We expect to file the 2019 Form
10-K by April 30.”
Robert W. Decherd, chairman, president and Chief Executive
Officer, said, “Our Company is advantaged by comparison to most
others, especially within the newspaper industry. This gives our
Board choices to prioritize the long-term health of this great
enterprise and support its reason for being – that is, to provide
invaluable news and information to the people who depend on us and
to the communities The Dallas Morning News has served for
nearly 135 years.
“We started the year with $48.6 million of cash and no
debt. Based on the actions we have taken to refocus the Company’s
2020 financial plan, we’ll invest approximately $8.0 million
of cash from our balance sheet this year to maintain operations,
continue paying a dividend, and fund progress toward becoming
sustainably profitable in a digital world.”
About A.
H. Belo
Corporation
A. H. Belo Corporation is the leading local news and information
publishing company in Texas. The Company has commercial printing,
distribution and direct mail capabilities, as well as a presence in
emerging media and digital marketing. While focusing on extending
the Company’s media platforms, A. H. Belo delivers news and
information in innovative ways to a broad range of audiences with
diverse interests and lifestyles. For additional information, visit
www.ahbelo.com or email invest@ahbelo.com.
Statements in this communication concerning A. H. Belo
Corporation’s business outlook or future economic performance,
revenues, expenses, and other financial
and non-financial items that are not historical facts,
including statements of the Company’s expectations relating to the
outcome of its ongoing review of asset impairment and related items
and the timing of its late third quarter 2019 report and its 2019
Form 10-K with the Securities and Exchange Commission and filing
future reports, are “forward-looking statements” as the term is
defined under applicable federal securities laws. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including factors that
could cause actual outcomes and results to differ materially from
current expectations. Such risks, trends and uncertainties are, in
most instances, beyond the Company’s control, and include changes
in advertising demand and other economic conditions; consumers’
tastes; newsprint prices; program costs; labor relations;
technology obsolescence; the current and future impacts of the
COVID-19 public health crisis; as well as other risks described in
the Company’s most recent Annual Report on Form 10-K and in its
other public disclosures and filings with the Securities and
Exchange Commission. Among other risks, there can be no guarantee
that the Board will approve a quarterly dividend in future
quarters. A. H. Belo Corporation undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise, except as may be
required by law.
Contact:Katy Murray214-977-8869
A H Belo (NYSE:AHC)
Historical Stock Chart
From Sep 2024 to Oct 2024
A H Belo (NYSE:AHC)
Historical Stock Chart
From Oct 2023 to Oct 2024