Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Second Quarter 2023 DallasNews Corporation Investor Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Instructions will be given at that time. reminder, is a recorded. As Instructions] this being conference [Operator

conference to your go I like the ahead. over Please would now Cobleigh. turn to Gary host, Mr.

Gary Cobleigh

remarks. Good Chief XXXX and Executive investor President I’m joined financial Cobleigh, Corporation. morning, results; Murray, Grant to who call. is Officer, President will Katy provide of reviewing and Welcome quarter Chief Controller brief Officer, who DallasNews Vice second our by everyone. This Financial Moise, business and will Gary be

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

will include statements. forward-looking discussion Our today

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

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

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

I’ll now turn the call over to Katy.

Katy Murray

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

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

year-over-year primarily for $XX.X million to and quarter this is is reduction decline we the $XXX,XXX we decline to The preprint in year, a quarter We reported decline in preprint year. compared revenue XX.X% of first to with total decline due see reported of the in $XX revenue. expect advertising or the and The forward. million the last going consistent million

to delivery Last month, to delivering we and weekly we be including expenses announced August a line and net elimination expenses associated impact related of mail partnership the inserts preprints decision bottom exit this year. shared employee our the to neutral. XXst After on of the expect for

services year. decreased Digital increase X.X% would revenue print or XX.X%. of or X.X% advertising QX and marketing partially year-over-year. digital-only was The of to compared subscription last of decline $XXX,XXX revenue revenue $XXX,XXX down by circulation $XXX,XXX revenue or offset $XXX,XXX Circulation

subscribers, XX,XXX,XXX As X,XXX XX, of digital-only a the June X.X% had or which is news year-over-year improvement.

did some sequential slight trends. a will decline digital-only on in However, our Grant we subscriber digital additional have comments overall subscribers. provide

in in we recognized This March Total to last or $XXX,XXX digital newsprint. XXst. $X.X and XXX,XXX benefit operating expense of On year. quarter, in cost quarter related as outside compared delivery of for XXX,XXX $X.X last subscribers, both $XX.X leaf and was when distribution, by non-recurring of as including non-GAAP expense of of million, an was driven QX adjusted XXX,XXX services, a savings X.X% improvement compared to as June home total to year was basis, a million this and million the XXth, $XXX,XXX $XXX,XXX

by to decrease was year-over-year the and eliminate the driven expense, distribution our Saturday print Regarding Briefing Bulldog decision additions.

publications August, the Briefing at savings will a the remainder and the end Al addition of of recent for year. discontinuation of experience the the In announcement company with the Dia of additional

month latest our has price newsprint down compared ton June, with to per when ton year. was a average to X% last the decrease is expense year, favorability metric newsprint This purchase purchase continue newsprint time last this metric we $X.XX $XXX the to to Turning as since of of expense, been price lowest see and newsprint expect per last April consumed. pricing we’ve recently of of favorably, in trending seen

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

these This June’s the to expense in ending quarter, June. we headcount related not recorded approximately of late does terminations $XXX,XXX reflect announced in terminations. XX XXX severance

XXst, In we in investments. addition, showed $XX July cash, including million as of short-term

the uncertain reversal of the the quarter expense $XX,XXX position recorded primarily paid tax fiscal a for tax, franchise had For In year this QX, XXXX. due company franchise which $XXX,XXX quarter, we recorded tax of Texas to of lower tax for expired. the Texas

I turn to Grant. call will now over the

Grant Moise

Katy, I on Thank morning, expand decision exit our the everyone. to preprint you, want good Wednesday and to business.

when see expected continue We in XXXX. to entered we to declines preprint the advertising

decision up the declines visibility made the exit in of However, preprint for to us we came allow When line have we been the our more June, than revenue. our business partner anticipated. contract this to renewal into with greater

revenue June, resources we right-size more our the our sales than expense clients total advertising the this detail, by Giant’s products accounted program realign $X.X decline of the which $X.X million. structure By and can more exiting declined line Giant Medium Wednesday of million of value was the for Providing with preprint Giant’s which most. all associated towards Medium business Medium year-to-date through

advertisers for nation’s provide with our solutions. a to marketing clients. they in This grocery decision strategies investment on the well positioned was store the business marketing to exiting announced affirmed like its preprint when Giant would return future is digital portfolio in Kroger, that its that of be chain well Kroger, digital favor Medium solutions into May largest help the of

led agency run Group, and Giant to most strategic companies last agency the changes most and announced the models. John had by Giant XX world’s us John is of agency. comes Medium Integer were the the place President in new that was and he of These respected years Medium holding from we spent Integer recently Kiker, where May. one sustainable John Omnicom, profitable President where by the the of owned Wren that

We’re to so happy have him.

audiences was following occurred I an in the to begin to focus late that digital again, our pleased see News, the decline audience pandemic. grow our Morning to Shifting

to advertising by our quarter. Our increased membership base to allowing slowed and the second website. volume X% related down digital digital to dallasnews.com said, year, digital our this have momentum on us grow the visitors membership That our

Two contributing factors decline. led to this

had experienced we past holiday with prices price, higher cancelation six-month pay ran is we first those from the last full expired December result began a in offers. we The we introductory starts to where offer. of introductory discount had year When they of significant and had volumes than promotions

digital contributing second our decline seasonality. membership to The is factor

when traffic return and football lower price will we regular memberships volume to Texas revenue rebound its and will optimize begins. and the remain we and moving digital families essential school in forward to an part always our Our we is this business to continue in company. Digital the of August return important between routines of season line summer kids grow as strategy the for will

will questions. up we [ph], [Greg] now for open the line

Operator

Okay. [Operator Instructions]

Operator

at no And questions. there are this time,

Katy Murray

speak after remainder right, Thank second late of you us you everyone I’d have to enjoy you. hope Bye-bye. will of thank the summer call. your Greg, our the we quarter like All October. third well end our with all and you. We on quarter for and joining well thank in

Operator

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

You may now disconnect.

DallasNews (DALN) 26 Jul 232023 Q2 Earnings call transcript