DALN - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the DallasNews Corporation Fourth Quarter and Full Year 2021 Investor Call. [Operator Instructions] As a reminder, today's conference call is being recorded. Replay is available on the company's website. With that, I would now like to turn the conference over to Gary Cobleigh. ahead. go Please

Gary Cobleigh

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

discussion statements. today forward-looking will Our include

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

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

Katy Murray

inactive to of quarter or related quarter benefit XXXX of today's you million fourth reported of pension $X.X and million loss cash of per $X net of addresses. everyone, joining share fourth for net thank IP call. includes the $X.X income noncash The sale operating an Hello, a and million $XXX,XXX. DallasNews $X.XX and proceeds income

share quarter operating $X.X For of a million. company loss $X fourth and an XXXX, of the reported net per loss of the $X.XX or million

For and DallasNews net $X.XX an pension per GAAP of related basis, includes of the release of $XX The benefit XXXX reserve. of a to million a of full and sale a year XXXX operating $X.X addresses. noncash noncash net $X.X million to of And on related loss $XXX,XXX million. loss loss the a of million benefit uncertain $X.X includes or tax an proceeds share inactive the it IP reported tax

partially decline loss a $X.X full quarter, or exclude per to compensation offset operating in services of adjusted an due $XXX,XXX of decline quarter of For disposals compared for $XXX,XXX depreciation, operating in reported increases by the net of outside $XXX,XXX company operating The and income income $X.XX loss $XX.X in to revenue $XXX,XXX and fourth and asset -- is amortization, $XXX,XXX $XXX,XXX, million expense, severance of primarily share adjusted a and the or an decline $X.X operating income, the year to loss reported operating operating was or when improvement newsprint, of Adjusted XXXX, $XXX,XXX fourth the which in distribution benefits. GAAP impairments, an sales year. revenue of million. of in million last employee a and expense

commercial was million due year when compensation partially in benefit full of of an million, fourth improvement of operating last employee printing of $X.X $X.X reported of reported $XX.X the an an the for XXXX. primarily adjusted $XX.X For The decline for is $XXX,XXX improvement million offset in total due the $XXX,XXX quarter to GAAP X.X% was million, to loss decrease XXXX, the when increase $X.X full in or Fourth and year advertising adjusted by of expense, million operating expense. quarter promotion year revenue. compared revenue a $X.X a to to and a million primarily loss decrease compared

or quarter, year last the protected compared and by both and circulation revenue full year, the digital on to digital a and services last print year-over-year. revenue marketing was which impacted sales growing of stability in quarter slight circulation the year. initiatives Total marketing result compared to $XXX.X year. last revenue full remained compared to year we fourth quarter increase normalizing equipment to attrition COVID-XX fourth in subscription year and fourth year. million million the X.X% relatively revenue The subscriptions. the flat the lowering XX.X% COVID-XX, recent $XXX,XXX marketing of digital revenue XXX,XXX revenue For in million, the circulation services and by pricing, was and this last excluding Print to advertising by Digital total of Total for subscribers advertising is significantly in revenue pandemic. advertising circulation news' an year, XXXX. was has flat The print $X.X digital of when compared increase to flat $X.X services advertising total the revenue revenue remained and was grew subscribers $X.X -- or reported circulation $XXX,XXX of After XXXX revenue related million in focused year-over-year. quarter the improved

or subscriptions an improvement XX,XXX of XX.X%. XX,XXX X,XXX increase year digital-only $X.X third digital of circulation of of XX.X% million, XXXX. an news paid $X.X since with and revenue The the an subscriptions, ended quarter increase the For year, million or the increase was year-over-year

circulation to Relations under the quarter fourth or fourth quarter XX% of of subscriptions X.X% compared year-over-year. year. section. posted the million, New $XXX,XXX quarter up is last Print digital by digital of starts $XX.X a our decrease the was our and for year subscription A are Investor revenue summary on website

$X.X XXXX, $X.X to which home compared The delivery of declined the were Both For circulation copy year, revenue and $XX.X single decline year. in decline. home quarter fourth fourth X.X% had million $X.X or sales and $XXX,XXX million $X.X million, XX.X%. was $X.X or a the which or in print of was delivery year-over-year million million XXXX decline reported X.X% was Other million million of X.X% these, XX.X%. revenue $X of improvements a or quarter last reported single the to decline in or a compared of copy

other due $X decline declined year, and full a to year reduction in distribution. million to is quarter million. revenue printing X.X% and fourth or the $XX.X The For related commercial revenue

or for $XX As no of equivalents count was XX, Cash of company capital the million $X of approximately approximately reserves. for Friday, because be an cash expenditures was The a XX $X.X company in head the debt. of reversal $X.X XXXX The and tax of X, benefit a of of December release XXX, XXXX, million expect and related million. decrease as recorded And of had noncash the to from cash XXXX. March December million million. $XX tax tax we XX.X% benefit uncertain to

to tax. We XXXX Texas expect cash margin $XXX,XXX taxes to related the in be approximately

$XX.X digital-based December company in has encouraging. federal loss forward. of are revenue the XX, operating XXXX, we As carry are financial growing the our making million Overall, net very total and progress results

results a and over make will year. continue I we remain are in profitable We -- pleased Robert. the toward call company. early balance digital sheet we turn this now positioned progress well information to XXXX and we to news with strong And the being remain sustainably and with will seeing are a

Robert Decherd

very I'd few everyone. Katy, encouraging add comments a some developments. thank Grant thought discusses you, operating and good before morning, I

progress digital results, in print, we're talk you making membership As heard, specifically both more and will about good and that. Grant

a of multiyear we'll readers previously, uncertain we suggesting note the The levels, company advertisers that years to local that a is yet progress content invest Grant discussed important. both that pay very feel are will in and very second. also and have we a a past we just being all you again, on with continuing that's about that them XXXX. good encouraging The And returning the aspect management will the seek that be business continues know not X Katy noting, talk national prepandemic basis, just gradually very to particularly basis, did, for imperative as You going and soon. like continue and and Meeting We're paper print, to thanks event in we're supply like advertisers as gradually, But having to COVID-XX, advertisers Obviously, ours on focused the of XX% issue. be more talked them. all this May back pension on but funded expense long We but are sign. newsprint we proxy get to in been regular side in issue -- we to legacy is a a of have we for. the XX. and an out companies, We're made as right to pricing on becomes albeit status. that adjust in not Annual from there, our everything pricing. future. advertisers And to Thursday, at will foreseeable mandatory be this problems We're statement impacts are But for in-person our will steps a assume, case. an the for now over input the The derisking contributions it the resolved for us taken mostly The on That pricing commodities, industries of chain about work year. are to would XXXX about And of there in XXXX. holding plans period Shareholders big through component to stable, cycle holding that steady time an smaller to the of absence we're a plans term. long the no subject

receivable at receive me of to questions we'll We we're to Board, of due, With Grant know, after and address that. former allocation the as headquarters on late and sale July payment, of total million. meeting this is welcome payment scenarios, your campus. the some note that, full up $XX related the The of the we'll regular operating Board The approximately September. in themes, let in company's scenarios amount our pick the those review ask following including capital interest, expect to to you continues

Grant Moise

Thank you, Robert.

a The our Amy was our XXXX. past Managing Editor month. new Dallas Morning and the named hired editorial months, our Executive named of of News senior was Editor last Hardy Over newsroom Katrice new just in we've leadership team board. X in And Hollyfield July

also bedrock strong members. relationship February understanding that mindset balanced their We Bush, is also who that well. All performance. fair us keen the subscription The as roles Rudy and a a our in digital are these them of Editorial-Page leaders with helping named with digital-first bring approach a is Editor new of our of maintain X journalism the industry veterans X

consistent Medium role. subscriptions, team I'm breaking the our digital well on a progress very news new the as digital is audiences first estate strategy new newsroom a areas combination as has of subscription most. focus year subscription Giant we're strong grown coverage XXXX. with Speaking months very Katrice’s in had in restaurant our digital resourcing showing pleased and positions value our This of also in and She in good built real trending in few has a and her revenue.

we first grew for print grew sales, XXXX the year. As digital the normalizing Katy for -- After we for mentioned, advertising. our also advertising PPE

has and year, pandemic quarter. proud services. such and fourth our of the throughout supply and these team a This and course comps reducing the the But or line estate This of as of strong Eric our I foundation a Robert stability categories successful growth Medium leadership for look Myers, Giant, extremely to questions. and Even midst more of built impacted XXXX. referred achievements we we'll chain the is their maintained challenges, reflection occurred to strong stability our challenging investment success up built. think and with forward the Operator, that overall became Supply President has there supply clients our have open result either logistical over furniture, the we -- the and spite continue marketing in automotive just pause chain eliminating to I'm of in partners. products of challenge the issues that in real the the as

Operator

And a Wedbush question Instructions] have [Operator Chris we Securities. Mooney with from

Chris Mooney

up, you're Grant, perhaps First, estate content? teed since you elaborate real could still on the

Grant Moise

has Steve estate know, now is being Chris, done you has about I decades such covering you on done an as there, Chris, for avid Part of Brown, job. X Steve as been what know for reader his a own wonderful and real are, we've

that more it a estate is, strong how Real and more with and North between number especially added have has balance of Steve a commercial. piece of even digital converting and estate and real that, second opportunity estate estate I years, a X is Katrice a of We reporter you mentioned And Texas to the saw market expand. talent that strategic real is give to couple real performer her top even so sense of there been the and now Brown beat. residential team of our for a we can

a much to so knowledge just more Steve going little that market we’re So firepower add him. bit this alongside of has

Chris Mooney

Grant, well. And reader avid union, to glad that your it? unionization within may organization? employees I’m K those this an I process the members Is of at for where the As the people are proposed and see in see ongoing that. is be very are look located to the guess? you that I that as of way the XX%

Grant Moise

Yes, that that kick has best. Chris, union all so she can me Katy. let of been to Katy our answer handling work,

Katy Murray

is the newsroom, Chris, XXX right October as be there agreement, voted union XXXX. And there in contract a bargaining room. of you at it be has working covered of would we’re whether disclose to there’s approximately to this potential required union currently collective who time, is to perspective, the back only K it XXX know, a news from the employees members But so still been might now, by through some no form contract. not But but finalized. in

Chris Mooney

And in maybe headcount, right have reductions it’s did revenues, further you Okay. the expecting XXXX? the on stabilized, of currently, you the headcount I are to term, guess, employment sort as with

Katy Murray

and I’ll see say I’ll headcount. it to any take we’re that then pass we expect Right Actually, would I in don’t foresee Grant. reductions further to over first, Chris, hiring. or now, that

Grant We’re a news. in let and hiring as little we’re sales-facing about our more bit detail across where organizations, him multiple give organization hiring and mentioned, I’ll

Grant Moise

we mode. are Yes. hiring Revenue-generating kind Chris, full of positions, in

with at – being the obviously, digital our forefront the in subscriptions newsroom Our of at just growth mode, strategy. is

growing going where up add there. all environment, that we As and I’ve been interesting, It’s we’re wages in considerably. Katrice continue team, has unique mentioned, we to as know, competitive are a

so who for we employees are as opportunities. there’s And leaving a just us, to piece different lose too, where

especially we’re in though is Texas. in mode, North very here unique even a environment, think hiring I this a hiring

obviously environment we’re competitive And addition facing. is just obviously so that employees of the by offset

Chris Mooney

I newsprint pages? of see of Okay. also Is And about maybe down consumption year-over-year. XX% Grant, is number reflection of that that a the the

Grant Moise

the strategy been are demand. the of along is only advertising with count we’ve Part page down taking that we deploying, Chris,

about news because members, which they years hole this content that as So last reduced, our year our now, not have we for people much been, paying believe holding that as means is as year. the had content, I deserve are X price being they

But newsprint X is we’re metric down for So some coming of that, ton that right Katy you a also ton. ago, $XXX newsprint a mentioned, cost give just us, And of the volume. at mostly to we were price in as years at a metric sense, about now. $XXX

So reduce not just that, print product we’re charging the size close eye but on close, very keeping what to members. our on of a the trying we’re based

Chris Mooney

And the the ballparked sounds right? running the about that it Okay. same -- of address quarter. IP cash And the quarter. $X for And million sale just be more this far Katy, you’re fourth in of Is operating one kind without would I it about utilization recognizing me. so the million at about of $X.X like

Katy Murray

Chris, is right, was normalize you’re to the And IP a that that onetime sales, for correct. event. it

Chris Mooney

just IP for Sure. addresses? were what fun, the And

Katy Murray

and addresses. Yes, a market there’s for IP

addresses. sold as IP when IP took other of substantially it have you $X.X to say million will looking to addresses. we’ve is, in So and that range, we asset in for an monetize. businesses But a the can as that have I sales. us historically companies had, did had, that the was have over we know, onetime. more had a that think in people monetize of larger any of company. fourth what that as and is that’s and IP we addresses And do a again, we company, that, the you opportunity addresses with approach the quarter. similar been had about to and and generated opportunity that a We history about And market about IP third them much quarter. operating something the number We the our have IP operating had in And that in the not when the are substantial we XX,XXX sell XXXX come We we’ve course ranges. you them we ranges

Operator

Instructions] [Operator have we And questions. no

may You continue.

Robert Decherd

Lea. you, Thank

what use people Let to calculus running are Chris' is the of is frame and that's our content, maybe in we quality this. questions of how most time. creating reassure to is the And strategy consistently otherwise, in to we're are just actually side lot of everyone progress priced over are This why me we've that and a for digital seeing peers, equation to reported we that fully important. our our all about subs, compared the other journalistic willing get our pay And so peers. the valuable which

forward are because, turning the the we as people to company, going the invest, stewards track. we balance we're venture of going to marketing the to team this a to and and approach more very said, operations So operating and the Myers and which continue the that market journalists, year about we're continue And and this We're It's as Eric winning produce to who expense making is sheet our takes proceeds. are that of in the Grant of bear. the are off to be cannot progress, going to important telling our small an track. of skills as content, services, pushing side the advantage his equation. you we We're which careful look that so

joining. done, we and everyone, for thanks, So Lea, I think are

Operator

good. your Very today. for conference you does conclude gentlemen, Thank participation. and for that Ladies your

now may You disconnect.

DallasNews (DALN) 8 Mar 222021 Q4 Earnings call transcript