AHC - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the A. H. Belo Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. turn Ms. over now Chief our to Officer, Financial like the to call host I'll Murray. Katy go Please ahead.

Katy Murray

Robert and Good release third H. President call. by of quarter everyone, Belo XXXX Chairman, morning, and Moise, investor I welcome Corporation; and am Publisher of Executive Officer Chief to Grant our Decherd, A. President and joined the hope well you press of families are third that and issued News, Yesterday announcing and are we for available results. who Morning XXXX all Dallas Q&A. do afternoon, safe. We quarter your a

release have posted we our We measure against Investor the Relations today's XXXX on Unless this third comparisons on specified, quarter website XXXX performance third under otherwise quarter call section. performance. used

Our include discussion today will forward-looking statements.

and results company cause otherwise that except uncertainties Forward-looking update required other obligation factors to communication, law. materially The statements. statements information actual are assumes those no the as by from to could to this differ subject in risks,

adjusted loss releases the these about include measures. information Additional third to is included $X.X last reported net non-GAAP to was third loss Today's of $X.X and A operating quarter peers. financial We the $XXX,XXX improvement assist an operating of measures severance, XXXX, per Adjusted of $XXX,XXX or loss, discussion A.H. and useful non-GAAP of of of operating loss depreciation, $X loss and information $X.XX investors XX% believe when the for of financial is quarter impairments, non-GAAP million. of to press factors determining share, adjusts reconciliation available exclude third in will financial supplemental that detailed operating net in to disposals filings compared GAAP third of loss million million operating asset the share, with comparisons in provide the $X.X amortization with company performance an quarter. which to release. SEC. measures In a our reported company's This press loss XXXX our million. GAAP an Belo quarter reported and per the million or year. an is or and publicly $X.XX $X

Cars.com in For GAAP in revenue when the million, reported quarter which expected million due paper $X.X compared result in to Relations print total digital prior reported $XX.X section. the $X.X revenue, XXXX, $XX.X decline year. was year. compared and year-over-year was third or for decrease approximately to primarily is decreased quarter million, $X.X significantly by when posted X% year-over-year million, on the primarily to impacted COVID-XX by for the revenue Investor of only of advertising decrease is XX% advertising reported revenue compared the under quarter a website $X.X to million or reduced pandemic. to year, X% third revenue last year million Digital of the to year-over-year. delivery attributable third has the sale. revenue. has $X.X The $X.X COVID-XX been of year, third $X.X this affiliate of the the XX,XXX decline compared our the is third significantly and quarter down sales. Print commercial the or an was million of $XX.X subscriptions September third year. was increase the to where of of last A of of quarter with Dallas impact. year-over-year This the Home has third quarter paid the summary quarter compared $XXX,XXX The in for is ended quarter The year. the last million subscription, decline decrease of of last of News typically have a circulation News' or the Morning in relationship $XXX,XXX an XX% XX,XXX XX% decrease this XX% circulation year. copy a with the the was third million quarter Digital printing quarter, been in termination million number will a of of last single locations of increase where the last the is XXXX digital-only Other

XXXX, quarter operating a was of expense $XX.X million $X.X Third million, GAAP or quarter last to the year. decrease XX.X% compared total of third

$X.X in asset disposals newsprint and million expense. reductions expense in million compensation X.X $X the benefit million million of primarily Excluding improvement the loss outside due $X.X and in XXXX, from and services to impairments expense, employee is in

cash XX, highlight third October of would we to equivalents. that had had stories As company like the in million and success I cash the in $XX approximately quarter.

News' Our shown year. since and technology the the investment beginning signs team membership success of supporting strong has the in of

focus a in growing an members. base, our print membership which Our and a is of decline membership digital combination in is paid increase

of XXXX searching Texas for of will North in readiness companies, the equity pressing the a to prestigious philanthropist her workforce funding, entries. provided averaged September, honors For a mother's the a The in as The have digital News, a education, we amid Morning a per Association death in X,XXX Murrow series the summer, answers that selected the month. North story more launched serial-murder investigation. for News coverage Dallas these X,XXX journalism journalist broadcast In expands News per Edward childhood Digital the pipeline story lab, year, affecting News' issues early most Funding Award by foundations R. by This been initiative philanthropic the told Edward education is the is community that after development, members including Texas. called school through in one Television the funded and of award and past CBS significantly in journalism. two some workforce part most Guardians per two community Murrow faint month. This funded Dallas XXX turnaround was R. month for school lens for Dallas. initiative years, News' of national losing members News topics new and awarded Radio named a education choice. lab woman Morning cover than non-profit such from most the members This XXX a this issues total growing of

more management technology a digital customer platform customer revenue will launched Over in-house drive an been new of the improve In relationships a modern team development subscription subscribers. the subs, content launch and upgrading sales accelerate with was art launched. art that By customers, we in Post with growth year platform. that on with the digital our September to digital platform last subs has is via offerings to reach efficient September, manages Washington relation past platform working the service complementary and It dallasnews.com. art year,

marketing in This successful. in contributed around By is our conversations than community, For are generating cause continues first health initiative wellness. companies, causes more revenue our its be to equitable education, connecting we the years. DFW, in two initiative million $X and

as expanded results in clients. across existing and Each with large content, clients, line and Our most existing strategy. as Corporate and minded News from agency relationships North partners In businesses Success the providing third Texas. to the issues media, brands and inclusion Responsibility civic the paid marketing Morning civically diversity Company with $XXX,XXX Social through agency expanding amplify expanded by cross-section services approximately and and clients and engagement, quarter, and influential brands stories analytics Dallas this incremental represent in creative a such philanthropy, global volunteerism. utilizes services including brand platform some of top won highlight and revenue Belo with

to we builder, launched intensity addition, aggressively XX-week lapsed business Belo business initiative sales reengage a and high In new designed grow clients.

have weeks, early account Our In they this contracts. six the and initiative. business meetings new first seeing sales in completed secured team success of new is hundreds XX

deliver to created virtual Downloads. revenue been for $X.X initiative this over Since in-person series readers called our in new events a in XXXX. expect We limited, million have DMN we speaker

than our held reporter. last investing, have some presented how while months, watchdog XX,XXX hosted XX initiatives. we of has personal has piled readers. have challenges, us discussions Over events food most finance, we even seeing nearly seven events we Topics are X,XXX the our of many and estate tax members, of incredibly reached momentum journalists. feature with initiative events, virtual Through readers. engaged By the comparison, around total and nearly This both only helping the News’ include and year success digital improve the real trends, growth other to XXX year, drive helped in-person and past improvement read virtual and stories the Overall, from are turn property print which we year-over-year is year-over-year statistics fight resulting these increases this for membership. our in from more

call successes. these will focused I the turn to now very on Robert. over building are We on

Robert Decherd

Katy, everyone. morning, thank and you, good

through control. be XX-month we when they are ones a Dallas are is all to that have very sense ahead Just before, and reflect look Katy navigating into proprietary content made XXXX are the This are original said as limbo. we others last to or transition and couple to the It's how matter take we've that in for News profitable by on activities, I'm you going its distinctive described the far, of this made. over newspaper a the known almost and digital really to Morning is sure of and thus sustainably the and of XXXX, apparent the created initiatives years we and that period going briefly, just time, that programs model original it's is affiliated

newspaper the play is digital it. build lifts has in All Dallas proprietary there the as When out better for terms an talking Katy our job the News. pandemic I content, ultimate more of than about a am Morning defined around the dynamics has newspaper to declines that in media that opportunity I operation certainly subscriptions, things clearly of compensating described and created going these are in America solutions print to that election, whatever are advertising, doubt is but done a or any in

We newspapers present running through will course, questionnaires, literally had of who decades the Zoom to this the calls. commitment voters to to for informing for every interviewing have year, themselves office and continued candidate

We of split XX-XX candidates. have in dozens It's party lines. endorsed

who's time. all minded, communities them we through and XX% with reason voting know, independent of election this Brendan very at for though, remain have that pages challenging us we called, as itself are probably Editor excelled the our way and Moise voted. presidential we really and of And think already helped our Editorials What's next Stake, our series Miniter, readers our We has prepare way Tuesday that Grant a around

go But we quarter before year's The say last surface was keep Q&A financial results other in the very in this to in the of results, I'd terms the is good third on quarter looks thing, mind weak. the environment.

as in typical XXXX. So the comps. into project fourth challenging more or that back We'll your from in the be as forward forward less a models, into situation quarter and we this was you standpoint quarter project of

in from move how to of the our Dallas alone we into manageable Morning is you've backside We're almost and the and to this you've heard News this. call continue ultimately more Board we're like position the invest to focused something through pandemic. limbo that the this But the be predictable, the So of continue in way been we on. and every company I'm on on that more do period to thrive sure in. positions in not try we

appreciate Thank the can. variables as which have of you, and balance continue the on the of there [Operator carry see what's we We an pause as and Wedbush. Our the Instructions] Mooney from our under we Chris Q&A with question is from possibly there. advantage, I'll that of line to control Operator, comes and extent sir. we'll in sheet first many

Your line is open.

Chris Mooney

Good morning, all.

that care to of you the you comment desk? on would Robert, all process have news with unionization gone the see. your through Let's

Robert Decherd

to meaning We for to unit summer the you came this took time members is in August, and in each of with for the that and return some place the in back that identified, with ballots our in been attention The fact the election of they there because people the not newsroom. held person an spring, where on turned the was News the NLRB the committee then the were been and our underway just organizing. and There be in spent out of one XX organizing what ultimately, people. identified choosing days ballots of all eligible be familiar in those which organizing members in ballots, with were for normally come voters. organizing – period it three with time, to would NewsGuild-CWA had almost was about day in communicating weeks eight-week and counted Of XXX late of ago, the effort department, committee an about to them have mailed the XXX And COVID, – the course, with of the election to

unit extensive or the requests organizing the now, officers committee from a have unit. a bargaining information to pretty So unit, we responding of are established, the we for

bargaining will, in faith. course good We of be

them. I all the with to this may members. of in conversations we'll just We of eligible meet in And conditions, hard certainly the the the it's person, Guild imagine of rules, by in what end of series to made be money. with financials, start expect however, saying that a we're work about things And that terms, Zoom, losing be terms contract. go our conversations Realistically, changes a clear in We the and into year.

we'll have what's this say management of a on actually, and department is commitment So significant and those time minds. the us on call. I'd energy News’ of and to their for even substantial see This a commitment. fairly the for

theme how out five strategic the I to it think focus all regrettable of years, the to make to which three through figuring on because been we that's of our has planning. next need completely

called it's and what's the of to unit. for noted, Chris, status for are extensive process requests a I meet So we the responding members And quo information. to preparing pretty for to point now, as – the of

Chris Mooney

Belo accurate? at an quarter of the Q in fourth marketing going – more success updated results? you about like in having and appearing the the is that looking a in Company, that Is you're The give services Okay. start little to bit us can sounds

Grant Moise

Grant, it's that. Chris, handle Good morning. I'll

the look date. is second seen point decline happened quarter to up the have what year-over-year the We the if third the it of the nice – definitely – ended part being you quarter, in at low

nicely we that are as bouncing we rebound of and categories serve. We of back. business also bit apprehension, look a at it's But the just different there's seeing that

our patterns obviously with we buying like the pandemic, that have think line learned other challenged, North For of clear business I here of to and there's it's this think because Texas, fear way estate our in that in of is being far example, changing big kind too and at a market services of the if real look if then like you estate marketing happening advertising that pandemic, category doing wonderfully. the forward, to give don't we forecastable a just historically. real We've sight a it's are hard categories us retailers, But consumer the of and have partners revenue learned so. enough look we've seen what's

But done. Chris, has activity, focus them. say, is I'm see contact trying can it with think our clients, with one right to So that eight is pleased thing the encouraged find number solutions saying close about I would it's being difficult sales to us. ahead now on we of much team than them. very The the I I've to weeks very for really more in worth six

Chris Mooney

$XX end the the said of about should million. fourth That's Katy, about quarter. Okay. you cash

end in quarter? into June the of – $XX.X the got you more that You or – according refund third note tax queue holder holder the Is the paid their the presumably the correct? going note million interest maybe pay year to you're company and importantly, the just or next

Katy Murray

and cash tax early was We to have in say and October, stabilization receive Chris, some did, that million drive And really thing improvement and some collectability the helping which refund did balance. are is, seen would other correct. I in $X.X the They collections. we the you

home. from some of it's on of customers out as to taken a how that make But think time payments I some seeing time to lot figure we're well.

see to collections least the say, I good at very been that's So what somewhat to returned would normal.

Chris Mooney

you October cash before get payments? increased the we like looks it And quarter-over-quarter into actually early

Katy Murray

that, was, we that was eSite. able cash and in did, transaction for a our part equity $XXX,XXX was we There of sale that. were there and We the to generated of company a that did. also We sell called XX% of

with as at April, their June owe that and now that the payment make So of year. an of they they well. The quarter interest But And they to end $XX then payment. your in happened next third payment point and January Holdings, us in that XX months. interest within final Charter did have due the is million

Robert Decherd

Charter estate And Grant as going of downtown, that to of that Texas core site, are parts that decade like the been a lot went last which just the who the pretty I'm in and not was on been city surprisingly on North announced underutilized. experiencing blocks and familiar our Street encouragingly been three the property strong. market most centers from cities real on in other market unrest the the of slowly early but real to with a in referenced, call, not resurgence relocations Chris, much Young property springtime hold right story with respect say XX and in to area, those and during not It's the for the has the back, country, yesterday coming the Holdings, from summer. has Dallas, XXX has a building

to would certainly interpret move see very capital cycle. as these and sign. that for get positive planning and So to next and things, we But had read ahead to is has a hard access It's access ready them of accurately. someone the all

Chris Mooney

thought I outlook new another for No, old location. headquarters announcement building Yes. your the nice was that positive for new

Let's plan improved a that see. Katy, to Is the that liability? pension just the of drop. Is result just performance? continues number

Katy Murray

several we being would say And that declining rate we've really any now, have funded. performance the are foreseeable plans. really, say mandatory year. do contributions is. that's of of with pension We I north performance really in It years. pleased the and positive future, this has of just discount our even not with I of the the next XX% investments will been the been right

tight then but portfolio, again, mix of the the the that last the plans only from of done overall, and asset the been real of all hedging five so of the have also side. the And investment just de-risking from the years, result management but not really the plus over

Chris Mooney

And the from print year third the the of contract, number or smaller quarter? business, of the reduce quarter of fourth you that part at print all last business, end customers the the

Katy Murray

It was in XXXX. the first – first quarter of

Chris Mooney

Okay.

Katy Murray

all to this We the out large small Right. I And last now down – was announced that for print decline the quarter customers, the nationals. took year expected. we're and we over

I'm have business, nationals print with imagine, pages, commercial deliver. of print and of the number in can we they their need you pleased The but our that printing some with As product. to declines still

Chris Mooney

Okay. Thank you.

Katy Murray

Thanks, Chris.

Operator

open. Mooney, Mr. in [Operator Mooney Instructions] it looks is and sir. One is Mr. like moment, Go queue. line your ahead, back Please.

Chris Mooney

did down this to CapEx that Is correctly million? now $X Katy, correct? for year I the And is expected read that

Katy Murray

Chris, bit million. than it'll actually be little $X a less

going is $XXX,XXX. think and I been just all that really any the of the North to to in maintenance And that right around the come normal kind of probably need do. plant we related has to

Chris Mooney

you. Thank

Katy Murray

Thanks, Chris.

Operator

one this And in queue. there is at time no

Katy Murray

safe. Well, Selena, meeting. for your with our and friends third much thank And investor are you joining hope thank the we when have and we Everyone, you we you year for XXXX you. hosting Thank will call, call. and fourth year-end quarter our very again, you next speak families quarter

Operator

and and does services. teleconferencing today. our for you using conclude for your conference AT&T that Thank for gentlemen, Ladies participation

may disconnect. now You

DallasNews (DALN) 27 Oct 202020 Q3 Earnings call transcript