DallasNews (DALN) 8-K A. H. Belo Corporation Announces Second Quarter 2008 Financial Results

Exhibit 99.1

FOR IMMEDIATE RELEASE
Monday, July 28, 2008
7:00 A.M. CDT

A. H. BELO CORPORATION ANNOUNCES
SECOND QUARTER 2008 FINANCIAL RESULTS

     DALLAS- A. H. Belo Corporation (NYSE: AHC) reported second quarter revenues of $163.3 million, a net loss of $3.2 million or $0.16 per share, and consolidated EBITDA of $10 million. The Company had no long term debt in the second quarter.

     Robert W. Decherd, chairman, president and Chief Executive Officer, said, “A. H. Belo continues to make notable progress in our strategy to diversify revenue and continue building strong brand equity. While these successes are transforming the Company, the weak macroeconomic environment and declines in overall advertising spending have impacted AHC significantly. Given that the declines in ad revenue are unlikely to stabilize in the near term, we’re taking steps to dramatically change AHC’s cost structure.”

     A letter to shareholders and a letter to colleagues outlining these initiatives and operating conditions were sent by Decherd today. These letters can be accessed at www.ahbelo.com/invest.

     During the second quarter, AHC furthered its commitment to maximizing the use of its existing infrastructure, building new partnerships, and investing in Internet businesses related to AHC’s core operations. These initiatives have the potential to develop meaningful and sustainable incremental revenue streams.

• The Company recently announced plans to launchBriefing,a new product published byThe Dallas Morning Newsbeginning August 27.Briefing, will leverage existing news resources and content to publish a condensed print news product, home-delivered for free Wednesdays through Saturdays.Briefingis targeted at 200,000 households with incomes of $75,000 and above.

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A. H. Belo Second Quarter Financial Results
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• The Company’s three newspapers have all recently secured contracts to print and/or distribute other publications. During the second quarter,The Providence Journalsecured a contract to distributeThe Wall Street Journal.This contract, along with other print and/or distribution contracts previously detailed in Dallas and Riverside, will contribute at least $4.0 million of incremental revenue in 2008 and another $1.5 million in 2009.

• AHC’s investment strategy is to seek opportunities that expand the breadth of products or services provided to its advertisers. The Company’s recent investment in ResponseLogix, announced on July 22, enables AHC to sell ResponseLogix’s advanced technology solutions to local automotive dealers who need a tool for managing Internet leads.

     Also during the second quarter, AHC’s brand equity and journalistic excellence showcased the Company’s Internet focus with Dallasnews.com winning the Edward R. Murrow National Award for best Non-Broadcast Affiliated Web site.

Second Quarter Highlights

     Total revenue decreased 15 percent in the second quarter versus the prior year. Advertising revenue, including print and Internet revenue, was down 21 percent. Ad revenue performance was driven by declines in classified revenue atThe Dallas Morning NewsandThe Press-Enterprise.

     The Press-Enterprisein Riverside, CA continues to encounter strong cyclical pressures. Advertising revenue, including print and Internet revenue, atThe Press-Enterprisedeclined 25 percent in the second quarter versus the prior year, a slight improvement over a 26 percent decline in the first quarter.

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A. H. Belo Second Quarter Financial Results
July 28, 2008
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     AHC’s total part-run revenue increased 3.3 percent versus the prior year. Despite its challenging business environment,The Press-Enterpriseexperienced a 21 percent increase in part-run revenue.

     AHC had over $12 million in Internet revenue in the second quarter, which accounted for 7.4 percent of total revenues. Circulation revenue increased 8.5 percent and other revenue, driven by commercial printing revenue, increased 14 percent.

     In the second quarter, AHC reduced total newspaper expenses by $5.8 million or 3.9 percent over the same period last year. This decrease included a $2.7 million decline in direct compensation and a $1.9 million decline in newsprint expense attributable to our diligent control of newsprint volume in the increasing newsprint price environment. Total newspaper expense at all three newspapers declined in the second quarter.

     The aggregate newspaper EBITDA margin was 12 percent in the second quarter, down 10 percentage points from the second quarter of 2007. All three newspapers had positive EBITDA performance. EBITDA margins were highest atThe Providence Journal,followed byThe Dallas Morning News.

Corporate & Non-Operating Company Results

     Corporate and non-operating company expenses declined more than $4 million versus the same period last year. The decline was due primarily to a drop in direct compensation and other operating expense. The 2007 corporate and non-operating company expenses are based on an estimate of allocated amounts since AHC did not become a separate public company until February 8, 2008 when AHC was spun off from Belo Corp. AHC’s 2007 historical financial information reflects allocations for services historically provided by Belo Corp., and these allocated costs may be different from the actual costs AHC will incur for these services in the future as a separate public company, including with respect to actual services provided to AHC by Belo Corp. under a services

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A. H. Belo Second Quarter Financial Results
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agreement and other agreements. In some instances, the costs incurred for these services as a separate public company may be higher than the share of total Belo Corp. expenses allocated to AHC historically.

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 1:00 p.m. CDT to discuss financial and strategic results. The conference call will be available via Webcast by accessing the Company’s Web site (www.ahbelo.com/invest) or by dialing 800-230-1096 (USA) or 612-326-1020 (International). A replay line will be available at 800-475-6701 (USA) or 320-365-3844 (International) from 3:00 p.m. CDT on July 28 until 11:59 p.m. CDT on August 4, 2008. The access code for the replay is 952133.

About A. H. Belo Corporation

     A. H. Belo Corporation (NYSE: AHC) headquartered in Dallas, Texas, is a distinguished news and information company that owns and operates four daily newspapers and 12 associated Web sites. A. H. Belo publishesThe 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

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A. H. Belo Second Quarter Financial Results
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California’s Inland Empire region and winner of one Pulitzer Prize; and theDenton Record-Chronicle. The Company publishes various specialty publications targeting niche audiences, young adults and the fast-growing Hispanic market. A. H. Belo also owns direct mail and commercial printing businesses. Additional information is available at www.ahbelo.com or by contacting Maribel Correa, director/Investor Relations, at 214-977-2702.

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, 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, interest rates, and newsprint prices; newspaper circulation matters, including changes in readership patterns and demography, and audits and related actions by the Audit Bureau of Circulations; circulation trends; 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; 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 and other public disclosures and filings with the Securities and Exchange Commission, including the Company’s information statement on Form 10 dated January 31, 2008.

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A. H. Belo Corporation
Consolidated Statements of Operations

	Three months ended						Six months ended
	June 30,						June 30,
In thousands, except per share amounts (unaudited)	2008			2007			2008			2007
Net operating revenues
Advertising	$	125,341		$	157,704		$	249,764		$	299,649
Circulation		30,275			27,894			59,380			55,511
Other		7,639			6,678			14,298			12,829
Total net operating revenues		163,255			192,276			323,442			367,989
									��
Operating Costs and Expenses
Salaries, wages and employee benefits		68,840			72,492			143,105			147,791
Other production, distribution and operating costs		60,948			65,170			121,914			126,069
Newsprint, ink and other supplies		23,738			26,007			46,707			52,675
Depreciation		12,211			11,352			24,452			22,712
Amortization		1,625			1,625			3,250			3,250
Total operating costs and expenses		167,362			176,646			339,428			352,497
Earnings (loss) from operations		(4,107	)		15,630			(15,986	)		15,492
Other income and expense
Interest expense		(165	)		(9,035	)		(3,231	)		(17,779	)
Other income (expense), net		305			2,608			1,262			2,782
Total other income and expense		140			(6,427	)		(1,969	)		(14,997	)
Earnings
Earnings (loss) before income taxes		(3,967	)		9,203			(17,955	)		495
Income tax benefit		(770	)		(3,097	)		(6,040	)		(2,409	)
Net earnings (loss)	$	(3,197	)	$	12,300		$	(11,915	)	$	2,904
Net earnings (loss) per share
Basic and Diluted	$	(.16	)	$	.60		$	(.58	)	$	.14
Average shares outstanding
Basic and Diluted		20,478			20,452			20,476			20,452
Cash dividends declared per share	$	—		$	—		$	0.25		$	—

A. H. Belo Corporation
Condensed Consolidated Balance Sheets

	June 30,		December 31,
In thousands	2008		2007
	(unaudited)
Assets
Current assets
Cash and temporary cash investments	$	24,882	$	6,874
Accounts receivable, net		72,408		90,792
Other current assets		34,524		24,353
Total current assets		131,814		122,019
Property, plant and equipment, net		275,223		307,788
Intangible assets, net		156,843		160,093
Other assets		43,237		29,810
Total assets	$	607,117	$	619,710
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	30,016	$	25,384
Accrued expenses		41,657		32,550
Other current liabilities		28,737		62,468
Total current liabilities		100,410		120,402
Long-term debt		—		378,916
Deferred income taxes		26,809		19,189
Other liabilities		13,916		14,263
Total shareholders’ equity		465,982		86,940
Total liabilities and shareholders’ equity	$	607,117	$	619,710

A. H. Belo Corporation
Consolidated EBITDA

	Three months ended						Six months ended
	June 30,						June 30,
In thousands (unaudited)	2008			2007			2008			2007
Consolidated EBITDA (1)	$	10,034		$	31,215		$	12,978		$	44,236
Depreciation and Amortization		(13,836	)		(12,977	)		(27,702	)		(25,962	)
Interest Expense		(165	)		(9,035	)		(3,231	)		(17,779	)
Income Tax Benefit		770			3,097			6,040			2,409
Net Earnings (Loss)	$	(3,197	)	$	12,300		$	(11,915	)	$	2,904

A. H. Belo Corporation
Newspaper EBITDA

	Three months ended						Six months ended
	June 30,						June 30,
In thousands (unaudited)	2008			2007			2008			2007
Newspaper EBITDA (1)	$	19,305		$	42,542		$	33,734		$	67,208
Corporate & Non-Operating Company Expenses		(9,576	)		(13,935	)		(22,018	)		(25,754	)
Other Income (Expense), net		305			2,608			1,262			2,782
Depreciation and Amortization		(13,836	)		(12,977	)		(27,702	)		(25,962	)
Interest Expense		(165	)		(9,035	)		(3,231	)		(17,779	)
Income Tax Benefit		770			3,097			6,040			2,409
Net Earnings (Loss)	$	(3,197	)	$	12,300		$	(11,915	)	$	2,904

Note 1: The Company defines Consolidated EBITDA as net earnings before interest expense, income taxes, depreciation and amortization and Newspaper EBITDA as net earnings before corporate and non-operating company expenses, other income net, interest expense, income taxes, 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.