DALN - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the DallasNews Corp third quarter year 2021 investor call. At this time, your telephone lines are in a listen-only mode. Later, there will be an opportunity for questions-and-answers with instructions given at that time. [Operator Instructions].

conference is your recorded. reminder, a cal being today As over the first I turn call to would now conference your Cobleigh. speaker, Gary Please ahead. go

Gary Cobleigh

the Publisher morning Corporation. available reviewing XXXX quarter is Chairman, Executive also Gary President XXXX specified, Welcome otherwise Q&A. Good here Dallas performance, Murray, Robert performance. Chief and am our of is Decherd, website, of quarter who Katy issued Grant we on XXXX Investor a This used Corporation. we comparisons will XXXX under posted Officer and Morning financial Officer, release and third call against DallasNews quarter Relations and be joined Cobleigh, for third by Chief section. are to quarter the investor of measure Yesterday XX-Q. President quarter third Both our these afternoon, XXXX Controller third Unless Moise, and announcing quarter Financial third today's filed DallasNews press call. third I of on our results dallasnewscorporation.com, News, everyone. results

statements. today include forward-looking discussion Our will

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

non-GAAP the press will turn determining that Additional to Today's financial is A of believe over discussion non-GAAP reconciliation assist I detailed Katy. factors releases non-GAAP measures investors peers. measures now in in our with GAAP information with comparisons performance measures. is available supplemental call our to to the information included We filings SEC. to release. these and will about the provide company's publicly press financial useful include financial

Katy Murray

In million or of call. $X.XX million. Thank everyone. joining $X.XX loss for third share and $X.X an the company net share XXXX quarter morning loss $X.X quarter $XXX,XXX Good operating a loss net reported of XXXX, per and income $X.X of the operating of of DallasNews reported an or today's million. third per you

tax primarily release income recorded net disposals which GAAP uncertain limitations exclude severance The asset the third a third total The revenue. million, tax when a million operating of of quarter. to operating XXXX the decline year. $X.X loss includes compared revenue-related quarter, of this The XXXX. last December loss, an in Adjusted of depreciation, employee of benefit adjusts in increases $X.X operating statute in expense, the quarter expense, and expired $XXX,XXX amortization of due and loss adjusted and million a reserve is impairments, offset in benefit $X.X was to services $XXX,XXX expense to increase non-cash of third for decline of compensation related $XXX,XXX by in in an quarter reported to partially outside and

the or advertising and This For used the platform. digital grew or was personal year, of X.X% early quarter improvement the year-over-year subscription marketing to $X.X year, the revenue, million year, third improvement the or increase and digital the in of circulation or by XX.X% number in XX,XXX QX million $X.X included in revenue. of equipment, subscriptions. digital $X revenue second and XXX of revenue circulation The growth XX.X% circulation of reflects advertising subscription Digital year-over-year million. automation services services digital to XXX,XXX and XX.X% pandemic, and the lowering an the a million, an or slight of partially to protective last replaces was comparative an last personal in a has when The continued This subscribers. consecutive a when X.X% stages million operated sales X.X% marketing stability the marketing is show branding third purposes, when million, subscribers XXX,XXX print and revenue QX decline primarily having an of for the quarter. digital quarter that our incumbent revenue quarter development. from advertising X,XXX print to primarily was currently services of assets. the or year. won reported subscribers of value in This seeing compared when in increase the to and marketing agency. high print $XXX,XXX XX,XXX third compared million compares excluding the year-to-date. of growth quarter on from in $XX.X brand Therefore, increase marketing quarter last revenue on or digital with the services dallasnews.com, print or on when compared Because Last focused recently in in and $X.X revenue total year. advertising focus provided an platform third the third last or The is $XXX,XXX marketing offset equipment digital strategic compared growth increase our advertising $XXX,XXX revenue this in $XXX,XXX order This on decline we year year year, XX.X% revenue and An are and owned contract periods. approximately and generated is growing assets creative as last an will RFP by and X.X%. digital-only equipment of quarter of XX.X% and agreement $XXX,XXX a a XX.X% XXXX $XXX,XXX quarter, digital ended attrition initiatives sold of XX.X% web News advertising circulation quarter News growth. operated revenue and or advertising third the in pricing, for this year. through was third to revenue digital or and a or protective digital total services was and to $XX.X strategic GAAP to of of and this of to advertising from to generated print approximately last result paid sales dallasnews.com Total services year. last and strategic $XXX,XXX year-to-date subscriptions, of digital quarter $XX.X driving in digital $XXX,XXX was This due $XX.X Revenue focus is grew the million example year compared last of owned for we third XX.X% total for circulation company's of revenue The reported margin comparable such the services on when compared

digital are New to compared or circulation XX% revenue Print quarter a X.X% of prior year. the decrease when third year-over-year. $XXX,XXX starts for million, was $XX.X up subscriptions the

experienced pre-pandemic we in reported delivery stability this only print a its as to is are million, quarter base in copy the sales return for to relative in schedules X.X%. improved in September the quarter of year people sales third was Single the months seeing single and printing noted, X.X% X.X% home of revenue commercial subscriber last revenue nine $X.X declined delivery $X.X year Other course to $XXX,XXX decrease due and as over XX, year. I has the revenue reported Single home have decline copy million As declined News XX.X%. third compared revenue. copy activities. XXXX, of this ending The declined The sales declines

of last million, was compensation third The and partially of related quarter year. due increase savings operating year. last GAAP to of change to by salaries increases amounts in XXXX in X.X% expense total expense, cost outside benefit to $XXX,XXX and is the or $XXX,XXX an expense. increase medical and The of is compared pre-pandemic quarter services beginning decrease $XX.X expense $XXX,XXX XXXX in revenue quarter of due $XXX,XXX Third third the benefit in offset a depreciation restoring employee expense base and employees' compensation primarily employee to

non-cash million the The recorded reversed. third sale Record-Chronicle this was earlier, quarter lapsed $X.X reserve of million. The benefit resulted The tax of federal uncertain of in reserve $X.X in the noted December in a in of August year. of As tax recording statute I company XXXX and non-cash limitations Denton the company this a

and or cash had $XX.X year. the equivalents of employees, when no September cash compared in has equivalents. will making financial and I As company very over were turn a the to base million XXX Currently, XXXX, approximately XX, company prior the Robert. decrease are and revenue of debt. call and Cash $XX encouraging. are the results now XX we progress the digital million in to to has company cash the growing our XX.X% Overall,

Robert Decherd

thank everyone. Katy, morning and you good

events that operating business part becoming losses business. aware a dynamic two is even As in the in we the the of time, in earlier noted previous years. advance And eventually both digital same company. shareholder focused anticipated priorities. shareholders help we capital investing and are the for Board an to in over the the profitable sustainably while this are continue keenly transition, we results XXXX It become more to but the will of five need optimistic to return At communications, will next

As Texas with The the encouraged as community its News' these we Katy of National and news word has coverage and Morning Award The noted, the next into year. revenue remain This the the quarter in well Metro in beginning are by performance continue context. by of recent the owned front sales we very our Journalists and keys Black we are work circulation product commitment the digital of Practices only creating reflect value. News Dallas operating to that Improved very the Dallas term as will social based News' overall promising growth end is movement. Good long Best outlined third the XXXX the The indications entire and with on of saw News and for that recognized through Katy is is revenue serve. this operated subscription DEI been justice better of to enterprise trends Association The

month pension to in at to As the are condition. the de-risked XX%. be Campbell our will mandatory percentage million funded of continued subleasing been There XX% way, company's Dallas. we this plans office in a generate and contributions the stable month, This XXXX, received we pension otherwise. we Center We for have plans completed not cash financial sound that By would and lease ends the which of at this remaining space incremental no along have company's further over foreseeable future. in reported the the in leased $X.X an vacating space term hold

point, and DallasNews to here, much on pause Corporation from at and healthy are so to public brings square insights gained going forward serving questions Q&A Operator, other this the we a on larger to all we Board's company remarks. we in election we leadership She add formal insofar roles to with understands for Finally, and the continuing moment, course is Dunia substantial Dunia complexities expertise executive insight Board to successful fully highly our of media important of month is chosen digital deliberations. as Shive's the have a last Directors take an knowledge. to bear boards. look are the

Operator

Instructions]. [Operator

our For to first moment line. your we with question, we open Chris line Securities. the Mooney of while go Wedbush One will please

line please. is ahead, Your open. Go

Chris Mooney

you Good morning. hope could me. I hear

Katy Murray

Good to Chris. can, you as well. We morning

Chris Mooney

a little lies? at can cash cash. help $XX I this and bit, Katy, Can on million the had through quarter us in you you the said have you us you where time morning $XX in walk that you the conference million $X believe approximately difference second call, now you said, million

Katy Murray

from we quarter the primarily a out. had paid Chris, was amount Yes. severance fair now, of to that second

VSO. you recall, the offered As we

there from a perspective. that million in out so almost And was went $X approximately cash VSO

anything in payment that ends wasn't related course dividends, extraordinary some severance had of normal payable had. our is say been we around had and balance account have Everything our that did dividend the I have payroll. between There main right we when timing else the business. between of the to that been would The normal to our where you be. other now, difference we also may VSO we offering quarter, but went quarter the There really that that out. cash expected as is know, it really the the But thing has

Chris Mooney

And what's the dividend quarterly rate?

Katy Murray

share per $X.XX and $XXX,XXX. approximately It's

Chris Mooney

that you in fourth you. plan. the something with post-quarter? that Thank Robert did Is So quarter? mentioned the pension

Katy Murray

the plan pension we this, did it do did in Well, effective what in was October. and we

X% had I earlier, of past risk in returning have We or seeking we the modified the think of approximately to strategy between hedged. does perspective. for to an asset activity asset at take been XX% you and market that asset the investment XX% XX% that funded this hedged. hedged that able that return out a our us asset opportunity seeing. and allowing year, Really had recall, we XX% around XX% not month to the our moves to an we return break to percentage, us XX% return sustain really this do and this month If We be had with funded even plan to that pension been lot recently impact was and has it investment thing seeking been seeking staying asset. felt we the It Chris, right XX% current from like and moved have

So markets up, that. the offsets when go our hedging

future make that that if would we would opportunity we a to have the there really again, the obviously in this contributions, we point it cash hedge right If portfolio, no is future with we cost. we do change thing pension investment decide a the in call and obviously we wanted while later disclosed was can But no even more. we So and time felt have be the decision. and go ahead plan to the like on that something mandatory such that

Robert Decherd

second. for let me a Chris, with just Yes. stay

factors pension know, and it's there reported in several different your liability determining even you forms. two are As in

With sense potentially of plan And that sense. really into plan this makes plan, the itself participants, employees the ago, factor the moving skewed actuarial time. on they real age years the in to the work. older And is we into a can are terms up, retire, as only improving that froze the is who or in to chair, investment committee of just it our plan of pension McCray, rate we long its make more lot even group sits an we a which view then other and that well they XX effectively condition and sit chairs debt are discount as since go committee cohort the active move in move to audit Katy the to and regard, tables this since financial a liability Ron as We for condition it of seemed just having our on. certain

Chris Mooney

and position good others clarify myself to You just a very there wanted confusion. was be in I that it cash to maybe appear there. for not

Robert Decherd

the No. This mix. was strictly portfolio in a change

Chris Mooney

business on contract? get we more old it new that within the the a generated? color being Is Could Company? and little million Or that first $X Belo is

Grant Moise

of are that which strategic than really their group to what tenure of the call group. and we that Chris, of really will proven have his of team team correct. Yes. have it's they and those of for a done paying job Belo sign where talent Chris, a Company. and that big stickier been North our they a the going branding a It's with leads great services of are is after. a we brains, working, those the a regional why they accounts, example reason size It's the be But And morning. those terms company who things, for the type of is, rather Myers heck That's us for in stick out it's on media think That the moving win It's here continued, paying our simply and in we buying accounts kind thing of that behalf. are Grant. is and have just Texas. we Good us. to I called we are that Eric

Chris Mooney

Okay.

Belo. saw Continued some the you note offices, I space. progress And you assume. I the had I vacated subleased in the Q that to assume

it old Belo in So Center? the was Campbell just space

Katy Murray

It was, Chris.

subleased XXth we fifth floors. So the the and

through subleased So Robert rental this to to XXXX. uncertain as have we August the lease mentioned, done are is And of kind the be of able which time. fully term very during that excited end

Chris Mooney

now. Great. I am Thank finished for you.

Katy Murray

Chris. Thanks

Operator

[Operator Instructions].

Katy Murray

we we Thank our with which you thank joining be so want go ahead I to in conference look us more thin early year-end next conference everybody our for results much. and forward on questions, I the call. XXXX. conclude will Alan, and call no think to will We

Operator

your AT&T gentlemen, for conclude your that today. for and for Thank call Teleconferencing. conference and will Ladies participation you using Event

You may now disconnect.

DallasNews (DALN) 26 Oct 212021 Q3 Earnings call transcript