DALN - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the DallasNews Corporation's Earnings Conference Call. [Operator Instructions] As a reminder, your conference is being recorded.

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

Gary Cobleigh

Good morning, everyone. Vice Controller Cobleigh, DallasNews Gary is President of and Corporation. This investor our first to call. quarter Welcome XXXX I'm joined Moise, Murray,, the who by Katy provide financial be who will results; reviewing will and business Grant brief Chief Officer, President Executive remarks. of DallasNews, Chief we DallasNews' unable is a release plan the issued will a Officer, call, quarter investor to to our company's preparations to available press smaller for Financial Carrollton. second today's from move call. Earlier but Collins, Cathy attend be in this Plano our week, facility announcing Katy and filed announcement first we press Grant XX-Q. will clarity we on announcing first our provide issued in this additional quarter release and afternoon, a results, quarter XXXX moment. Yesterday a

comparisons are website, measure Investor All call under against of first quarter our on XXXX posted quarter these on used XXXX performance performance. today's otherwise dallasnewscorporation.com, specified, first the Relations section. Unless

statements. include Our forward-looking today discussion will

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

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

Mary Murray

$XX.X compared reported quarter same million. We last basis printing loss to the total of year. due program last before adjusted then financial quarter, a $X.X and over is operating to per an year, Good decision a in turn when Grant. On $XX.X and or I'm for improvement XX% niche discontinue company's the in million net million to million the today's Corporation by $X.X the QX loss reported of an going the an improvement and call. morning, and operating reported of $XXX,XXX, loss decline savings $X.X or reported net print-only call million $X.X a shared to our our $X.X provide million an for decline first year. to with quarter, to year newsprint, the and million. reported million our primarily $X.X $X.XX discussion I the basis revenue, compared is by operations DallasNews million The due GAAP joining or on we The employee everyone, a operating of period in start for to events print for the publications. total commentary $X.X of strategic quarter million announcement of million you non-GAAP of a thank of we company's loss decrease revenue last or offset and partially of million. On expense $X.X comp for adjusted of last of $X.X operating of a $X.X $XXX,XXX advertising share, In driven loss in loss distribution, an revenue primarily additions mail results XX.X%

the QX of Excluding $XXX,XXX or digital-only $XXX,XXX decline $XXX,XXX the increased of XX.X% X%. print increased Circulation or shared publications advertising all revenue The marketing compared $XXX,XXX revenue increase services and and X%. circulation subscription mail other impact, to revenue last revenue or of offset year.

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

as of and March including last XXX,XXX compares both revenue the as home positive XXX,XXX subscription price. Total declined, increase of to in of that was While the XX, on and of of of XXX,XXX volume company's March the is the last digital, end result the of optimal digital focus as delivery finding digital-only subscribers year balance year. and and subscribers,

and year, as when last as a XX.X% quarter due compared was distribution for business the decline of to to revenue mailed a Printing, advertisement first or revenue and million, primarily well distribution $XXX,XXX customers. $X.X of in decrease other commercial printing

basis, $XX.X $X.X million, was period operating by On last adjusted improvement expense XX.X% of for same total or compared in million the in non-GAAP and quarter million $X.X the year, newsprint. the changes savings from employee a in expense quarter and of to driven when the $X.X program compensation year, publication in third distribution, and mail million last primarily shared resulting of niche benefits made $XXX,XXX an

is March cost a continued The to of result $XXX circulation, has decrease. newsprint newsprint price metric favorable a as XX.X% expense year-over-year per Newsprint year-over-year in was of purchase favorably. trend lower and ton, the

continue We off quarter, later these this may but savings expect level the second pricing to year. realizing in

XXX, As resulting compared XXX headcount XXXX headcount year, additional headcount Program was to XX, to first of March Voluntary the Severance Medium within participants we the Giant. made from quarter down and last offered reductions in

XX. $XX cash May as had last And we investments Friday, in and $XX.X March on cash million Cash of XX, were short-term and equivalents. million

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

be Texas we The is and other headcount approximately relocation our print of our franchise completed, XXXX completed operating will and the fiscal later operations to announced a savings. $X the million key step in transition reduction lead to be expense employees move. We in facility year a return XXXX, about This from annualized operating tax of early to will this savings expense These smaller is once streamlining $XXX,XXX reduction related of XX for to to to decision a expect generated in expected pay and approximately in profitability. facility. month. On Tuesday,

months, we other the and equipment. X of press Over related a million in will capital $X investment estimated an be making next

dividends Directors to payment further declaration decided suspend the and investment, Board until the Given of notice. the of

the forward Grant. quarter, to to more I we and now of was efficient will the call streamlined operations progress print the pleased our to looking financial see to the made in successful I'm and turn process. I over transition first a

Grant Moise

X% clients the the the waning, and which quarter, relevant encouraging was most. Medium move our that management's quarter in steadfast first on Board's particularly returning Giant coupled quarter, I revenue This growth outlined operations on in commitment from our to sales Giant's Growth first right grew business results, printing Medium value streamline favorable it's made marketing mail The with with performance. continued and our is advertiser focus the services an assures products we since everyone. operations, our to delivering to announcement to sign sustainably morning, good solutions. allowed was first team profitable revenue to more Plan. the our and shared Katy, year Return we're in In recent Thanks, a pleased and our also interest reflect exiting our business last me

compared that The resilient. prior evidence continues it preprint first also at business print revenue trend provided is without ROP the quarter multiyear a advertising of which remained look stability. flat the When our ROP year, to business, we

the revenue I'm digital focus saw volume. by improved need growth This continue and X.X% quarter. price for that we charging also to content, also Katy encouraged optimal on our Circulation that know the but to growth revenue between to year-over-year. was a was by in referring first we our we will the circulation driven balance price premium find

on moving second volume we on that half shortened forward, ability focus were Our with of the subscriber -- since on expected to Tuesday that the volumes. to decision. our be facility introductory we'll time sustainable digital I this print a with in operation that base. Shifting we attention look announcement Tuesday is pricing on grow our our want specifics our that to our headwinds to we And continue during balances commensurate a will as strategy of in last focus year. current our price to digital X

First is Katy the and mentioned, improvements North opportunity the the property. to second is financial the monetize Plant

am can million decision. our which in expense improve in Our of business we by annually, improvement important our component play confident is will financial returning significant the an $X to operations company a operating role this profitability. I

past improvement gives the loss moving over adjusted ongoing from quarters, our current X $X confidence the from operations, This when shown change, right me have our that consistently. combined we the direction operating improving with financially. improvement in we are million estimated facility we're As

provides patiently the as to XX-acre zoned of center a in are logistics other data with the ware that types North operations which in Plano, use options with zoning Plant, This the a industrial variety options popular allows light decision industrial or a property including also as our society. Light potential property. us is of e-commerce-driven

get signs property. Overall, options the will least transition to strategic to in both operating X the our up monetize It efficient in And while for the months facility quarter start moving, new by running. encouraging the first our looking metrics us long-term print that getting we will operations. operation take highlighted to see moves, I more and how best and Carrollton at we're immediately at Plano

marketing and by All our of build excellent to company journalism. supports a media these local are desire that motivated sustainable moves

of last and, and between to put a throughout important up of our something Public last My the trust the announcement early but myriad the first greater an happening I to initiative company the the on we role felt media let's address it The Buckley Managing the hope recognized by acquisition Year the encouraging, won, so North from did awards Stephen this over was leads team the the bold national in has retention. Lois, Texas. Last least, we ultimately, winning the of was trust newsroom. News. with of now and help we we Deadly to epidemic this and unique our been our Texas year series, Editor response work public gap to improved fentanyl awards place Fake bridge journalism position do as which open also Newspaper for of in Dallas the questions. the amazing Morning with month lack to time ranging subscription to media, it added focused not in the to Texas new Editors, to the we to excellence of with quarter winning The our in which

Operator

Instructions] [Operator

Mary Murray

Thank like our everyone will and And available quarter call, on XXXX thank everyone for website. today. as I'd Lois, joining sometime this, to thank recorded had Thank earnings to our in you on held we call listening. later for And summer. second forward look we everyone. will the you, which it obviously, be we be said, you. updating the

Operator

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

disconnect. now may You

DallasNews (DALN) 16 May 242024 Q1 Earnings call transcript