Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the DallasNews First Quarter 2023 Investor Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to our host, 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'm joined Grant Murray, remarks. be Officer, by Katy will reviewing who Financial who financial will Officer, results; brief and provide Moise, Executive President Chief business and Chief

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

Our discussion today statements. will include forward-looking

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

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

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

now will turn over the Katy. I to call

Katy Murray

morning, joining On GAAP Corporation an year, and reported operating today's million an for million. QX you thank $X.X a In million DallasNews everyone, a loss last $X.X $X.X million. reported we the per call. quarter, of operating net share, of and and basis a net $X.X Good $X.XX for loss or of loss loss of

loss million for last change a an $XXX,XXX. $XXX,XXX decline due than of is million, total period non-GAAP expense of basis greater $X.X year. $X.X adjusted we partially for reported operating operating adjusted primarily savings a million, the offset loss same of The to reported by On quarter, revenue the the $X.X of

mostly offset of in is million by service the a quarter $XX.X $XXX,XXX partially about for increase advertising XX.X% Grant financial preprint $X.X from due will total digital marketing or in The revenue print reduction decline dallasnews.com to primarily provide to year-over-year commentary advertising revenue. $XX.X million digital and services last clients. or revenue, X.X% million revenue year. reported increase The was a compared trends. We in on additional

circulation relatively to $XXX,XXX than stay QX or The stable subscription of year. to less $XXX,XXX was a as revenue Print decline total increase continues offset $XXX,XXX revenue digital-only last decreased Circulation of compared or X.X% XX.X%. by of circulation

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

This improvement non-GAAP year. operating $XXX,XXX period in adjusted newsprint the compared of basis, benefit. employee expense, for $XXX,XXX partially last and $XX.X by or million was distribution expense savings when the driven of by On of $X of in total $XXX,XXX million, compensation same an quarter increase a expense to an in X.X% is offset expense,

in average expense $XXX ton XXXX. compared per This consumption as $XXX was newsprint quarter, ton metric a per the year-over-year. to our metric for Regarding increase reflects XX% newsprint price

we ahead. are will per remain in optimistic prices but we metric the ton Newsprint the high, decline months see price that

Cash headcount head compared XX. March down was $XX.X XX, count to investments year. March of XXX, was As on XX last short-term million and

investments. have we XX, April of in short-term $XX million As cash, including

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

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

over now will Grant. I the turn to call

Grant Moise

Thanks, Katy, good and morning, everyone.

news. good Some

made before person. feel some formal person of to found current to full-service search be we know, Due Giant their this the transitions have confident space, of you has a to wealth conducted someone find mid-May. lead nationwide a right role, who agency Medium the we of from experience a As in announcement and the will we

we make to loss this we mentioned area of source for all as understand intelligence move sure monitoring than we that we entire can newspapers it our we will it. revenue net and increasing pressure experiencing trend was this what decline address reason on the on be downward revenue proactively Because forward experiencing are closely impact, clear are makes preprint business. to greater the Katy the do our nationwide markets quarter, In that Industry single in the this for volumes. preprint pressure company. first similar of

growing News, readers. deeply more Morning with on Dallas remain At engaging our The and digital we focused

trend to which of Over membership and us course both quarter, grew the continue an at as advertising first important for we the digital news. digital audiences is grow digital over XX% the on dallasnews.com and

March the up covered on remainder our year-end call line open will we XX, investor in now of I current the for so trends questions. operating

Operator

We line Mooney, Instructions] to of will [Operator Securities. Wedbush go Chris the

Chris Mooney

Net income, that interest from CDs? income $XXX,XXX, is the that

Katy Murray

have any income It's So recorded the no, the interest all not we -- yet accrued interest. on loan.

Chris Mooney

least prior at than significantly quarter. is the somewhat Okay. what And larger year's then? It's it

Katy Murray

-- talking are you you are income? about So talking other Chris,

Chris Mooney

Yes.

Katy Murray

I'm a This of side, like, the flip. sorry, other pension that and driving moved, year, said that and the was it's pension on income you going income. I we're net income, the side total No, other thought is I have what's okay. to

Chris Mooney

that Meaning -- have you

Katy Murray

We expense. had less

pension We quarter. year. year So the we this had in income the expense accounting had last on

Chris Mooney

get on Okay. the CDs? What rate you right. All did

Katy Murray

A little over X%.

Chris Mooney

in, more -- the put $XX.X didn't And reason you million you put Okay.

Katy Murray

million Yes, XX we mean $XX.X from a but and we purpose, to all making -- didn't just that $XX sure the I no-specific wanted Well, Chris, have up put X locked we million. just million the really cash we and hold put months. $XX.X between

Chris Mooney

should it have you who we be ask I with? concerned? Or Dare Okay.

Katy Murray

JPMorgan. concerned. I'm our happy not is should I -- bank And mean, You be

Chris Mooney

okay. they're guess I

Katy Murray

They're okay.

Chris Mooney

a behold problem. Lo lot of if they're we Yes. and not, have

Katy Murray

I know.

Chris Mooney

is there good in different any anything advertising news bad on? the preprints, trends just beyond The or news, going

Grant Moise

some look not grow. marketing did Yes. Not And seeing. they're just of March today. the isolated I line a XXXX period good also very When Chris, ironically, XX% under it X ROP There time, over in grow longer print to to continues end actually promising services. the the to that the years, grown X%, it's at the has digital only a trends of quarter are end March a actually, question. of all it from I'm meaning and it Actually, past little in ROP line. but

trends showing resilient. that ROP So me line the is is definitely that some

And power there's advertiser though smaller for -- high even it demand it's print, income, very a buying a is in high audience disposable audience.

still there's That growth had line. see very services So us was print our It see been definitely that the to happy dallasnews.com. marketing largely driven meaningful on to contribution shows very rate. that continue. also happy I X% digital that into return a by

at a a saw rate. XX% a line, But advertising. in of we lower growth the of dallasnews.com is line services marketing Our growth over that kind in

it's So interesting.

by flat XX inventory the The X also call prices audience, increase seeing seeing encouraging past had been actually sign relatively we're but on our quarters. did improvement we for website, Chris, about the but the slight I'm -- other those seeing is now we're we the months, grow not prices only a in so there growing the past seeing We're ECPM. year-over-year what

So that's sign. also a positive

Chris Mooney

to referring that that's And pay? prices advertisers

Grant Moise

website the advertisements prices on our and that app. Yes, our advertisers to pay place that's

Chris Mooney

encouraging. that's Well,

Grant Moise

It is.

Chris Mooney

you you X years, see are If out being? now, would do you the go DallasNews you -- you the how at if of revenues look where

Grant Moise

-- don't I Chris,

Chris Mooney

-- your How's

Grant Moise

my there of kind don't have of the something top I of head.

what mention in where think, very, period think in example, XX%, to for comments. There's it from in -- Fort that our down gone of it as And a really change with what I X%. many happens of time. And an Dallas, happened That to short made is category X% why really and preprints time. depends. I very that advertisers, preprints them down into is going Worth, that's were me can of a has preprints in of our trend it period so of have factors. down short I this my things one example, especially year, external Wednesday Wednesday shows

of this is which launched open of we changing, an grocers a that Antonio, they you give year. on a last San yet out But pulling preprint. to To back just that's I seems HEB example, stores line grocers grocery the -- it's mean, be Wednesday now to year, chain continues significant thought Dallas strategies are in very other that HEB,

know bigger enough more we in more the crystal so important becomes But Chris, size line marketing growth of become the engine it a the revenue So for sustainable proportionate the larger the bigger -- mix, and digital to of growth I line. services it are. top to which -- that us, things those continues but building I had we're a wish a a so also where general, becomes, that honestly, digital ball, will percentage on see

Chris Mooney

Okay.

don't I if printed think I'm if basis, you the subscriber,online, seem not longer, I just news that that's on sort any more, news actually and them ongoing As getting guess, or to I be -- that's and I be case. noticing of will sources helpful. from items an if a know

Grant Moise

bit be may You mix, just a Chris. of may noticing the be them. It content

want. of that One really arms but has Mather Mather with who contributed not getting choices, And across I are but an growth to only the company the team. in had making around audience important out our of the region much has announced we're things feedback know, content digital that is what newsroom partnering we're globe. the given so I to that recent the content previous things baseline that Atlanta, partnership trends, across audiences And Economics, country as that with better real-time also our the at one, quarter, just in know into analytics our and helps needs look we're

looking a that some And of seeing, so is is varying that audience providing are may be what for. you're sources of the what part

Chris Mooney

interests on noticing read on focused it I you’re that and newspaper of do I day am – Okay. be local in just online more helpful drawing guess think the and less that’s may that general developing content more I to every you. version in audience national, I seems and the

A –Grant Moise

the nail the head. Yes. on hitting Chris, you’re

through which use term to our know our team a is want the a the have so super-serve what is that We means Texas. cover at proposition and in that world we that Texas newsroom, unique market North we that here this lens to we North is with

out whether stories we’re ourselves, journalists, a of D.C., to this resident. covering ask our mean whenever does we’re North And we always what using so Texas

so we frequently. And about is that are that glad something seeing talking I’m you’re because that

Operator

further are time, There queue at please so no Instructions] in continue. [Operator this questions

Katy Murray

look we our Bye-bye. XXXX quarter again earnings and when thank this forward Karen, joined we And our Thank to you that thank all second summer. announce you again, later with talking call, you. you.

Operator

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

You may now disconnect.

DallasNews (DALN) 25 Apr 232023 Q1 Earnings call transcript