Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the DallasNews Corporation 2022 Investor Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As reminder, this call is being recorded.

I would now like to turn the call over to our host, Gary Cobleigh. ahead. go Please

Gary Cobleigh

Murray, This Chief of everyone. for Executive and Cobleigh, President brief financial and by Vice year who remarks; Financial Good be business Officer, will Corporation. is who's who Welcome Chairman, questions. Controller reviewing Katy joined I'm DallasNews investor Grant quarter Decherd, and to and available Chief XXXX Officer; Moise, morning, results; call. Gary President Executive our Robert full provide fourth will

press a XXXX section. issued dallasnewscorporation.com, full against performance we and announcing our fourth XX-K. on year afternoon, XXXX Yesterday Investor quarter these Unless fourth website, full and release comparisons XXXX used full on today's results XXXX year Relations XXXX quarter specified, under year and performance. the our filed call XXXX and otherwise quarter are measure Both of posted fourth

today Our will statements. forward-looking discussion include

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

factors these about with company's in SEC. detailed publicly available information Additional filings press releases the the and is

with supplemental believe press in peers. Today's non-GAAP include financial provide measures. our release. of GAAP assist determining reconciliation A measures to non-GAAP discussion included financial financial measures We useful is performance comparisons will our information investors that to non-GAAP to

now to I'll over turn the call Katy.

Katy Murray

share year, and of million. loss net of we of the In loss the today's year quarter, for $X.X for QX million I results reviewing per and operating you morning, an begin loss a last net joining will $X.X operating quarter call. $XXX,XXX. and $X.X reported On reported Corporation income GAAP financial of of everyone, full thank an and with million or Good financial fourth DallasNews will results. basis a follow by $X.XX

related to quarter benefit and IP inactive proceeds the pension million addresses. fourth of income sale includes XXXX cash reminder, of a million $X $X.X of As net a non-cash

$X reported total for to $XX.X to basis same than other last decrease income revenue quarter, reported $X.X less the compared primarily print We due which a -- decline compared $XXX,XXX the non-GAAP million $X of when The million $XX.X circulation The period million, Both a of quarter, $X.X in the reduction advertising million is X.X% operating loss reported a decline operating revenue. year. to last million revenue decreased year-over-year a we is or of decrease for adjusted On compares due for to million year. revenue of $XXX,XXX an year. adjusted revenue. primarily in each prior to and

basis, revenue $X.X the reduced a non-GAAP to total operating of of due million, preprint $XXX,XXX increase market expense in driven distribution quarter an compared and by in to year, $XXX,XXX million was expense improvement out million adjusted savings benefit $X.X the and expense same in offset TMC and services, for of last expense. partially period On $XX.X compensation of an by when employee

or million on full net $X.X operating of million. year and loss a results $X reported GAAP We loss per $X.XX Turning a to basis. of share our an

we reported XXXX, operating For million. million and of loss of loss an $XX a net $X.X

to benefit proceeds loss $X.X a uncertain benefit related of non-cash IP to non-cash reminder, a tax inactive release million, million includes an net the sale a reserve pension $X.X of tax addresses. related cash of million As XXXX of $X.X the of and

employee compared year. greater loss The we in the a total when $X.X operating newsprint distribution basis partially to offset On compensation $X.X of million $X.X reported revenue of operating time in a non-GAAP loss million by loss savings for of a and same to adjusted expense decrease increase benefits. an is for million decline last million expense million an due the $X.X $X.X in million adjusted of $X.X million, a and and reported $X year, primarily

the compares of this in reductions revenue advertising $XXX,XXX or is X.X% and $XXX.X million advertising of total reported decline revenue. digital for due to $X.X year in marketing year. $XXX.X We million primarily print to and services The or revenue million year-over-year X.X% and last

As advertising more previously, partially sales the consultative low digital decision services. carry the marketing a company's that by to due primarily decline we've selling strategic noted is margin to exit offset

experiencing last increased revenue. on continued digital focus This the revenue to stability compared when been trend we growing year. subscriptions $XXX,XXX follows driven and Circulation have by

Total and or XX, December December X,XXX including compares of subscribers had which and year. delivery year-over-year XX both XXX,XXX News improvement. subscribers, home last The of that was digital to XX.X% digital XX,XXX is an As XXX,XXX only subscribers, as

and digital also due subscriptions, compared commercial distribution saved Investor A $XXX,XXX quarter mailed business from summary primarily our the website as Other customers and advertisements reductions revenue printing. revenue historical section. from on to memberships is decreased X.X% Relations to year, for revenue by known print of last in or under

adjusted offset of total $XXX.X expense adjusted expense the basis, million, million year million to million year. non-GAAP to of when in a newsprint expense. an or in was and last expense $XXX.X savings of $X.X improvement operating compensation The by million $X due $X.X operating primarily of million improvement an On compared for employee benefits $X.X increase in X.X% partially distribution, is

ton as to per XXXX, our year-over-year. in ton newsprint metric per metric XX% year, compared $XXX consumption was a average the $XXX reflecting increase price For

on compared last sheet XX, December on XXX, Cash balance was seven as count cash the to headcount million of of $XX.X March million. year. As X, XX was and was head December up $XX

expense. $XXX,XXX recorded For the year, the tax company of

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

of XX, company December net million the operating federal had $XX.X loss of As carryforwards.

in our line the expected far so encouraged by long-term the are sheet We has XXXX. made this year. balance we right progress strategy, we toward the a pleased year are company position end We to we remain on how with good and in in and are our what seeing with are

call now Grant. turn to will I the over

Grant Moise

marketing change a change transition, creating on profitable included That of business. digital At sustainably Corporation. journalism Last becoming our Texas year focus as at my core continue of services as model Katy. CEO DallasNews the the the Thank needs appointment invest outstanding to evolving continuing the you, we Board year was a media and North Throughout of defined in and the to that market. is meets business company. the

succeeding years. with total fortunate year in membership the needs digital The country, is growth the membership balance sign revenue meeting one of growth of shows The fine Dallas that is we're tuning last and at of of and rate in Morning reader we're XX the News how XX% highest the the to market interest. revenue the the very constantly dynamic cover most to markets needs community and

The price we're continuously as News as across our line remains volume. the possible, find focused as our North balance we the the Texas. between believe local of making reflects important journalism across we pricing have peers country on of we focused content Many the to optimal and to commitment on aggressively have but this revenue investments volume, seek and

also the its provide on the Giant marketing a services remain where progress strong foundation Medium because for at business. emphasis is annual on Giant's model marketing with pleased we services built contracts revenue. is core business that I'm focused Medium financial growing digital

We're the to services Currently, Medium new are for the a evolving XX plan currently marketing important a largest president the and that shows of Giant which of a on our search is second we're running clients, needs meeting Giant services Medium decision providing XX% clients. quarter. nationwide our in make retaining of decision

future the teams positions I in This and growth so newsroom. digital investments business our Board plan first in investing build best simultaneously return and while plan to the can include the created in new Overall, capital talent, on focuses digital and remain digital the shareholders. and on for analytics XXXX. returning focused the platforms, to that foundation we digital Business we

An impacting be based to we call team example breaking what print in was transition, and the digital we've new thoughtfully digitally we that Throughout company. is starts. this of transition in financial those managed that must as that and make membership teams a recognized immediately product provides a the trending the created XXXX a foundation newsroom is,

be stabilize membership to print with the team's pleased the continues of advertising to and side by been revenue. print expense print challenged business being That I've the said, ability inflation.

some allowing highest XX% newsprint membership in the year. and obstacles, we that print quality were context, charging to almost we're the just do of referred is And The put in the what so. than country, spite higher we But our years two News' as print XX% of than of For us to greater these they're are to, prices Katy last example, just even in costs higher believe that ago. product is

it now questions. will open we Operator, to up

Operator

Wedbush [Operator Mooney have Securities. question Instructions] a we And Please Chris from from go ahead. do

Chris Mooney

of lot Katy, went Good morning, a all. know, you I numbers. through

far appreciated. so if So actually newsprint on if advertising were year newspaper X.X new in first of and -- that seen the months you on that costs, trends the discuss would be news we've or you

Katy Murray

you're I I of The hope Sure, doing the Look, year, all we started and availability newsprint was newsprint. of for a really Chris. us surprise expense this think well. just when

the learned a back that or of and is wasn't really with these paper as during think lot doing I I boxes thing started pandemic. mills, corrugated one these I that plants familiar they

still the from all model can following that. all the and that, of of imagine, so as with business perspective, up and a And with Amazons you delivery

did up. newsprint prices So go

be of a this optimistic determined. another will bit price are that to increase we some with We maybe not but opportunity see year that, and little

things revenue I'll pleased slowing some last really we down Grant the starting of rebound And think with some bit, give side, kind seeing than February. in year, feel in performance print the across as I of different no we into I be year. you step this the On Look, starting a may were -- are let then well. see kind and context year, little going year a like but

a that economic think attention with going what's general I from feel an with track on in it paying where the be. are expect inflation, perspective, cetera., but to economy, we're I on et of lot we and to good Grant just Look, market

Grant Moise

Chris by kind quarter softened. more see hear in it's is we I at stuck January, down shows were happy Yeah. us you. prior X.X%, to that where print in which but advertising Good to you X% was is add down on Katy of but seen over things we quarter a Thanksgiving, see. little with hit the of full right I obvious numbers. and through that some context the That back fourth softening just now print, only to The was to mean rebound we saw from that and rates, -- year happy run fourth in would mentioned, I speaking. versus the kind as we're really really have around

Chris Mooney

trends any cetera.? us et give you stores, grocery or the of can auto insight into sectors, maybe And advertising

Grant Moise

a it's No, question. good Yeah.

grocery, on anyone the of So who's Chris, know our early grocery the -- and be has HEB probably that advertising. seeing entering regional is dominant market in stable competition fall. anywhere one because local our about the towards Texas. than in categories will moved call stability That the and the of of is for North player We've this into them HEB dominant entered some has that in country grocery, of more we're they here, market provided

become at really almost this has seen and automotive that us strong that been financial is of dealerships to the point. in for Obviously, low is category so print automotive where one for services, The both the nonexistent that's a have Automotive advertising of improve. where down, hit and grow continuing was business that in us business went not digital. really we inventory really very to at category and is has pandemic

is all -- services things tremendous and rates quite of services seeing and a of that, of and much now to also yield kind seeing there's this CDs lot a few in as Bank that. use quite branches market some their wanting banks, really than seen we've many into people adding lot our have like marketers of marketing of us doing know, Frost on We're amount that time stronger a in a we're financial a of

categories of So I note. think that's three probably kind the those to probably are a --

Chris Mooney

quarter, into place like quarter the have that things the kind in some to fourth of it Well, encouraging. be seems in sounds went trends first the improved Okay. versus

Katy Murray

statement, a Chris. correct that's Yes,

Chris Mooney

some in team focused one says to that bring liner drivers key you press the color that a the the the additional challenging. RTG plan business There's your will And the on? current phase release is that? be of most Could

Grant Moise

a I comment. that Chris, there's Yeah. few factors different to contribute that think

on of That's we not is which as markets but this, on environment, them it's pressures the here -- that we unstable. is in we range. of external kind we're wages. know, all XXX employee inflation this in seeing One And of kind as rather we Katy -- as to mentioned we're only -- have the XXX

equation is that external first factor on for newsprint. the pieces made that about company. points just on especially, of We size the are Kate, But of of is the believe the some correct we've the the that there,

used to expense And XXXX, line are be for us. was We it of as seeing you've us. for seen decreasing line that an a in line increasing

in -- technology. at have are we're there are our from we're that a especially is now an can too, we we really are the stage membership. Also, growth, making and in investing of this at And optimizing digital that in see those people not talent investment in in sure so our point are only we where more platforms, now systems, but point consistent we standpoint,

of volume kind growth our dissipate has become I then think membership that what a see see great bit waves little we and we we've patterns, on Chris, that of lower. and been part of seen

is that line bit just consistency there see our volume and of stage there. so fits and this need we in membership it's And more in where starts. of growth, a to It's a

margin with think a those to out there's just I otherwise, this down, really of and And We as also growing services that’s sense a because as seeing accomplishing going outside factors. take new happy effort. get point for team it lot in I’m we part products just and into heads got and I’m a But we but that we see real we're to Chris, a margin some at us back referred phase, important We're where we’ve factors sold, on an products what I this. want are have digital time combination just getting that here, in these a trimmed revenue that wider of focused internal we to that knowing our of within lower marketing goal. think

Operator

are there at time, questions And in this Instructions] other queue. [Operator no

Katy Murray

with to everybody the we look great results. XXXX towards April for to joining when will end of our forward end XXXX for everybody everyone Roxanne, I'd hope like Well, first our us a weekend. of our I talking earnings we thank and call. has call, discuss we again quarter

Operator

today. Investor available and replay the is our of participation a website, And under service. call for conferencing dallasnewscorporation.com conference Thank this using page. concludes for company's Relations And on this you the AT&T your

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DallasNews (DALN) 10 Mar 232022 Q4 Earnings call transcript