DALN - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the DallasNews Corporation Q1 2022 Investor Call. [Operator Instructions] As a reminder, today’s call is being recorded. I will turn the call now over to Mr. Gary Cobleigh. Please go ahead.

Gary Cobleigh

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

include statements. will today discussion Our forward-looking

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

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

Katy Murray

million net an $XX.X the in $XXX,XXX advertising total advertising a primarily million. adjusted compared in employee a or decline certain this primarily compensation benefits decrease some $X.XX and reported Medium last first when of thank partially the growth digital quarter an or $XXX,XXX and non-GAAP shortly. pricing print will On an in The our month same operating offset to QX We per to improvement quarter, of GAAP $XXX,XXX we last million, which more Giant supply basis share in partially offset and $X.X in million print to to we loss quarter, the revenue. and see quarter operating today’s year. of agency an you $X.X for driven $XXX,XXX is loss $X.X In everyone the of strategies. The last trend morning, million by Grant marketing a call. million. net and and increase million for Good loss due by a $X.X and marketing combined for decrease in of reported the XX.X% $XX.X to on a March, revenue of the of reduction due revenue by revenue basis million service year, categories. we year. total key total chain in issues compared is loss members, a last reported period joining in for expand for of year-over-year million advertisers On to But of year. activity compares loss XXXX of services $X.X for continues of improvement digital $XXX,XXX $X.X $X.X and $X.X a experienced we a increased revenue reported operating million. saw offerings, we the This robust and our Circulation net follows

of subscribers XXX,XXX XX, as year-over-year was the $X.X reduction in and expense As for XX.X% X,XXX March million, improvement year digital-only or and March an is XX, of of of $XX.X quarter adjusted XX,XXX improvement. related sequential Dallas compared to had subscribers, XXX,XXX Morning News which million and benefit to year, from The Total a Total of was XX,XXX of of an improvement as XX March December operating expense. XX. million last primarily as the last compensation XXX,XXX reflecting $X.X

Texas April was was XXX the March Cash it and XX as the of of last balance of end of the tax sheet of used As headcount on to we for year. million, million. periods a as the compared recorded was quarter, XXX the rate the tax and $XX tax. $XXX,XXX with method expense year, interim estimated last Consistent margin annual we XX, $XX

in Texas year. Charter Holdings interest tax for We A to the $XX.X $XXX,XXX its notable million, receipt payments be Overall, items. other this We approximately XX. few make interest on payments anticipate of margin continues expect principal and timely. including our to sheet. profitable June call we over progress will by encouraged forward to digital now I a company on turn sustainably news the to by a look and are far becoming strong thus balance XXXX focused year information the Grant. and supported

Grant Moise

most lines expand a we of what on are and business these Thanks, few seeing in important Katy. to of want our I areas.

RFP excellent investment agreements saw as the tourism, activity well. new of Medium wins This financial the is largest is and an also excellent was have increased year-over-year. showing XX us with city rates development economic primarily XX of First, accounts Medium The level in and retention verticals. on renewed business service Giant client month in clients. for of gives Giant our services and us return providing confidence service March. that Medium rate its Giant renewal

second The revenue. membership is area

and relative financial in growing membership range the continues subscription membership and continue That mid-XX% stability mentioned, slightly we to grow year-over-year. Katy revenue, performance, growth, combined print revenue As digital revenue. to provide to with see stable

we are the of the accurate. and estate, are add restaurants news in our are on and and price our members business, value most. predicated these pay indicated trending real those Research Membership has breaking our experiencing volume be stability see conversion areas, proving ability members to team. continuing growth in hires and are content. to coverage value assumptions Examples recent for the metrics staff in members as growth willing areas to to continue maximize newsroom We the membership to

ton quarter side metric by is per been metric the With this commodity has of newsprint effective XXXX. year, for another recently expense This $XX increases, the prices first received we’re impacted had the price increase of per being a way. increase, newsprint of two ledger, significant in May On ton planned it highest the we price notice since cost X.

now cost monitoring to the impact to control are we working actively call over cannot will I our turn the the we area newsprint, of are this financials. and proactively While to Robert. mitigate

Robert Decherd

Grant, thank This first We, with everyone. report. for third course, this me the my version the year. of and proxy. quarter morning letter you is We had good had your

kind to is many year-over-year. can are result. the good coming XXXX. into out same. positive the themes the And have time first want in is years opportunity we So had call There think momentum to circulation build. the circulation momentum continues continue the I miss increase don’t in as we it that of to This

us as purposes across than that’s company feel they the ever, shareholder this strongly paramount been. today my to the the and always of accurate about news on taken back We and country. world Going letter, providing more have the in the are same importance around information

the in investments to that and technology. in these while is moving are sustainably make investment model is Katy be resources And enterprise. reminded very enables we us the us, those Our to carefully people developing that direction financial profitable a

has progress moving making just progress the aspect you eat area also contingency if the with newsprint, play the and with of norm know will our very can we almost cited Grant the forward is really we’re supplies year. beginning predicting which that We’re that DEI. in place is around in the We in of But And of letter, to encouraged this Q&A, address the of our production all version and market as Volatility you important become my through spills if examples since tricky. the tremendously cost have that we this in by a I over a bit. there. inflation year. quite the of to every of of Grant couple the remainder also of respect noted effect operations, continues, the wish. plans

in post-pandemic be world. is in person Our going the shareholder again meeting to

welcome. is the be vicinity Katy will look you there into visit can we any all to We are Operator, here company in also line headquarters long-term. matters as any matters XX. call, why May in the about at on more And the go the the are look forward for open to questions? detail our to addressed about brought. over to this but We the our opportunity who succeed the company going in and auditorium Grant of than we don’t forward pause and of how

Operator

go And Please of line possibly. Mooney, Wedbush is [Operator line go open, your we to the Securities. ahead. if Chris on mute Mooney with Chris will Instructions] are you

Chris Mooney

here. I Gary. that. morning. it. or you got explain? Thanks, am DEI could quite Good didn’t Okay, CEI, The get I

Grant, that in think, I was your quote.

Robert Decherd

diversity, and Yes, inclusion. equity

been he’s models, effort really this people that I’ll both is but also expand workforce So Grant making us. important and charge. advantages substantial them it us on primarily these let about as And those for a through turn business for elaborate to but company, inclusion, and into broad the equity because It’s our are factors. we’re to leading

Grant Moise

is it really that done Yes, in And Texas especially I that way client-facing our reflect to that departments in is demographics clearest in Chris, our obviously, our – we’re the believe means way great we’ve probably sales mean, explain aspiration just newsroom, those our teams. we hiring. to change a in I think the first. North job is our that

is commitment to making with, that business leadership pleased progress of kind getting workforces us kind that we diversifying we’re that and been of have and we’re refocused – they that monitoring own do their thing last – ranks that this we share very share are We who people perspective making And who with of vendors and diversity commitment really business great greater sure of our the have that kind that doing in they with Chris, there. in the values. the same then share of to better always of been our kind management and on, making sure all our or we’re

we’re progress areas. So each really of those important in – but making

Chris Mooney

little a marketing seeing Okay. side – bit you is the And positive I about Grant, can And indicated trends? trends. yes, go more, ahead. You some talk business

basic that’s Just question. the

Grant Moise

Medium Chris. on Giant touch I’ll first, Yes.

not. which supply would be the us mentioned, Katy As behind chain are we issues, thought

just primarily, inventory. of X they first example, with some because stores, with think For of the I’ll start of out getting our really quarter us furniture of kind went trouble having X just months dark the were for I enough

to didn’t was they to if so the there want not inventory be purchased. And advertise

– significant some were a beyond. big those services we So provide I business services is agency saw that And there the wins towards and primarily for win mentioning are we what process. start marketing quarter in big going through to we process, we is on, which to but trying when second will it what is is pleased in which March, end clients, was our RFP proposal and request the

us, because as monitored problem that And case a this mostly picked X been Chris, really the our March and have on them, will subscription not much you be trying pleased just had area that pricing that an to important. I digital our getting of growth willing has being mentioned, has in volume I pay clients have We fact us, pleased closely combination how we our side top or ago. sign. first to XX up this to to is was a quarter but membership for extremely positive our that That’s how hold has churn a team digital proud over on very able really, us the of business, And and there. because not we important only so in in meaning retain as now am know people just aggressive very I for focal the then you accounts, as retaining And of remember, And in is been subscription this a we shored on as seeing the new also, offsetting in are is loss business the the our been that – are – years the XX while Chris, growing, in print way seeing very really and a up. Katy area. also point be been putting, bit year of can that to them with

growth, sign the think I only momentum as well for positive not of a obviously, revenue subscriptions volume but So, us. is growth and

Chris Mooney

are generating most it looks – I I per their on XX-something doing recent Lee – Lee Enterprises And thousand bit little a about per is business. employee. like looks annual was is all annual, at it employee. – about $XXX,XXX like this And the calculating, of September a or you generating And so guess

Katy Murray

this Chris, Katy. is Hey

subscription or looking revenue? So, at you at revenue, total are you looking are

Chris Mooney

it, X per looking But got No. and not applicable would realized haven’t reduce total to but that’s still division rejected revenue at somewhat, down the probably I as it’s has was employee. revenue, analysis. Lee it I significantly I but higher it

Katy Murray

see we Lee would say, are employee think, So, that what take look… a look revenues I will you using at the But I I probably revenue, to calculation. will have on and look need what base that. to on and

Chris Mooney

keep say, look I at XX-K. would

Katy Murray

revenue And will mean that about But the and good and revenue the are at probably, are revenue where good at would which the Chris, service – per are advertising say, I hiring out we difference the are now elaborated from the point, look services. about advertising is Giant we technology revenue that. Medium employee in in any We fact, and marketing circulation the And go print perspective. are that’s where say, I as within from Obviously, people I than revenue, at versus take hiring line, where feel employee But that that the a XXX employees well. and hiring at. an to Medium feel is can looking Medium do. we we where are we revenue and employee through something we newsroom to to but to there we XXX as just today. newsroom, see Okay. coming do about side like from I and versus really the really look base this opportunities ourselves need the right I can the on smaller have in and we obviously growing said, back think don’t at need looking when the looking versus perspective, we head. that and want an Grant on I you base separately being at Giant rest of Giant are

Chris Mooney

Robert. Okay. one, probably for this is And guess I

So, Plano, just I under property the County has Collin assessed your for million $XX in ‘XX. guess

Robert Decherd

Right.

Chris Mooney

the may receive cash return receive to like headquarter or there June or of this is was will on X.X% on rate are of quicker current you at million early your but owed a but than higher share your that sale, I in happy And $XX to July. to looks happy to you able or It X.X% were return appreciative you from to out year billion, be – have to get billion am $XX money. price $XX you the become the for end X.X% at paying which the shareholders, of, a a July, more way

So, started a why program? haven’t share repurchase you

Robert Decherd

Board those. capital for know. bankers about choices years for analyses Chris, – have talked whole exist have distribution will range regularly we we have we is for with as I – choice a years, to of investment who say the choices. with though. of run you our each And And are It worked of invited those the benefits

its to We in is, repurchase this June. a end efficient are going again Board The at larger in proceeds market, gladly based charter be is of at very addressing we the from deposit meeting Share if question choice. will attractive a are September. an the

in of first, to float numbers. do large of do authorized neither difficult a lot an shares even under have plan, We those advantages. have and is not We purchasing

the Second is a little market. bit disruptive in

that more it’s and past, regular immediately because That’s we you auction have have in to the we our float a – say than idea they And up once to special. it’s of whether an Now, dividends, execution. current or matching trended Dutch something to discussed current variety. or I activity are its market of go simplicity can will but

So, with directors those have the we be promptly. will all conversations

address to want recently. see promptly them the we the had saying But we have it as goes, and We will money thereafter.

Chris Mooney

and all me. Thank that’s Okay. you for

Katy Murray

Chris. you, Thank

Robert Decherd

Thanks Chris.

Operator

[Operator questions to yes, in. no coming I was Instructions] And going say just further

Katy Murray

a week. this and any early our to seeing can for you first good Right. forward May. you. Well, look Have year’s come Shareholder quarter thank you call who Thank Meeting of everyone, phone in the joining of very much to

Operator

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

now may disconnect. You

DallasNews (DALN) 25 Apr 222022 Q1 Earnings call transcript