Revenue Performance - Total net operating revenue for Q1 2025 was $29,125, a decrease of 6.4% from $31,102 in Q1 2024[120] - Advertising and marketing services revenue decreased by 7.2% to $10,813, while circulation revenue decreased by 5.2% to $15,447[121] - Circulation revenue accounted for 53.0% of total revenue in Q1 2025, up from 52.4% in Q1 2024[127] - Total operating revenue for the TDMN segment decreased to $25,152 in Q1 2025 from $27,053 in Q1 2024[161] Operating Income and Expenses - The company reported an operating income of $34,208 for Q1 2025, compared to an operating loss of $1,756 in Q1 2024[121] - Employee compensation and benefits decreased by 7.9% to $14,847, reflecting cost management efforts[121] - The company recognized an income tax provision of $5,988 in Q1 2025, primarily due to income from the sale of the Plano facility[138] - Other income decreased by 89.4% to $65 in Q1 2025, down from $611 in Q1 2024[134] Revenue Stream Changes - Print advertising revenue decreased by $690, or 12.2%, to $4,949 in Q1 2025 compared to Q1 2024[142] - Digital advertising revenue decreased by $67, or 3.4%, to $1,891 in Q1 2025 compared to Q1 2024[143] - Print circulation revenue decreased by $709, or 6.0%, to $11,047 in Q1 2025 compared to Q1 2024, driven by a decline in print subscriptions[147] - Digital circulation revenue decreased by $144, or 3.2%, to $4,400 in Q1 2025 compared to Q1 2024[148] Asset Management and Sales - The company completed the sale of its Plano printing facility for net cash proceeds of $40,651, generating a net gain of $36,206[116] - The company recorded a net gain of $36,206 from the sale of the North Plant Property in Q1 2025[157] - Cash and cash equivalents increased to $44,170 as of March 31, 2025, from $9,594 as of December 31, 2024[165] - Net cash provided by investing activities was $38,114 in Q1 2025, primarily from the sale of the North Plant Property[171] Strategic Focus and Future Outlook - The company is focusing on diversifying revenue streams through digital strategies and new advertising products to counteract declining print circulation[118] - The company continues to leverage its existing assets for cost-efficient commercial printing and distribution services[113] - The company expects annual expense savings of approximately $5,000 following the transition to a smaller, more efficient printing facility[167] - The Company is transitioning its print operations and expects capital investments and expense savings related to this transition[179] Risks and Uncertainties - There are anticipated pension settlement charges that may impact the Company's financial outlook[179] - The Company is focused on executing its Return to Growth Plan, which is subject to various risks and uncertainties[179] - The success of the Company's digital strategy is critical for future revenue growth[179] - The Company faces risks related to changes in advertising demand and economic conditions that could affect performance[179] - There is no guarantee that the Company's board will approve future quarterly dividends[179] - Forward-looking statements are subject to risks that could cause actual results to differ materially from projections[179] Reporting and Compliance - The Company filed its Annual Report on Form 10-K for the year ended December 31, 2024, on March 17, 2025, with the SEC[177] - No material changes were made to the Company's critical accounting policies as stated in the Annual Report on Form 10-K[178]

DallasNews Corporation Announces First Quarter 2025 Financial Results DALLAS – DallasNews Corporation (Nasdaq: DALN) (the "Company"), the Dallas-based holding company of The Dallas Morning News Grant Moise, Chief Executive Officer, said, "The first four months of this year have been significant in terms of accomplishments made in alignment with our Return to Growth Plan. The sale of the Plano property provided us with the required capital to fully fund the Company's pension plans. This is a notable event fo ...

Recorded net cash of $40.7 million and a net gain of $36.2 million from the Plano printing facility saleAgency segment profit improved $0.6 million on a year-over-year basisPension liabilities are fully funded and to be transitioned to an insurance carrier with an annuity purchase agreement DALLAS, April 30, 2025 (GLOBE NEWSWIRE) -- DallasNews Corporation (Nasdaq: DALN) (the “Company”), the Dallas-based holding company of The Dallas Morning News and Medium Giant, today reported financial results for the fir ...

Company Overview - DallasNews Corporation is the holding company for The Dallas Morning News and Medium Giant, based in Dallas [3] - The Dallas Morning News is recognized as Texas' leading daily newspaper, known for its strong journalistic reputation and community ties, having won nine Pulitzer Prizes [3] - Medium Giant is an integrated creative marketing agency that has received multiple industry awards, including the AAF Addy and AMA DFW Annual Marketer of the Year Award for Campaign of the Year in 2024 [4] Upcoming Financial Results - DallasNews Corporation will release its first quarter 2025 financial results before the market opens on May 1, 2025 [1] - A conference call to discuss the financial results will take place on May 1, 2025, at 9:00 a.m. CDT [1] - The conference call will be available via webcast on the company's investor relations website, with an archive accessible afterward [2]

Core Viewpoint - DallasNews Corporation has experienced a significant decline in its stock price and revenues, despite reporting a net income improvement due to a non-cash tax benefit. The company is undergoing strategic changes to enhance efficiency and financial stability. Financial Performance - In Q4 2024, DallasNews reported a net income of $0.74 per share, a turnaround from a net loss of $0.41 per share in the same quarter the previous year [2] - Total revenues decreased by 8.5% to $31.1 million from $34 million year-over-year, while the operating loss slightly narrowed to $1.8 million from $2.5 million [2] - On a non-GAAP basis, the company had an adjusted operating loss of $1.3 million compared to an adjusted operating income of $0.6 million in the prior-year quarter, with a net income of $4 million reversing a net loss of $2.2 million [3] Revenue Breakdown - Advertising and marketing services revenues fell by 10.3% year-over-year to $11.5 million, primarily due to a 16.6% decline in print advertising [4] - Circulation revenues decreased by 4.7% to $16.3 million, affected by lower print subscriptions and the absence of one-time gains from Texas Rangers-related sales in 2023 [4] - Printing, distribution, and other revenues dropped by 19.4% to $3.2 million due to the termination of a commercial printing partnership [4] Cost Management - Total consolidated operating expenses were $32.8 million, down 9.9% year-over-year, attributed to savings in employee compensation and benefits [5] - Adjusted operating expenses saw a smaller decline of 2.9% to $32.4 million [5] Strategic Initiatives - Management highlighted progress in transitioning to a smaller, more efficient printing facility, expected to yield $5 million in annualized savings starting Q2 2025 [6] - The recent sale of the Plano printing facility for $43.5 million will be used to eliminate pension liabilities and strengthen the balance sheet [7] Factors Influencing Revenue - The revenue decline was largely due to the strategic discontinuation of the shared mail program and print-only editions, which accounted for $10.7 million of the $14.3 million full-year revenue drop [8] - Digital-only subscription revenues increased by 11.7% for the year, with Q4 seeing the strongest volume growth in two years, adding over 3,100 subscribers [9] Full Year Update - For 2024, revenues fell by 10.2% to $125.4 million, with a net income of $0.1 million compared to a net loss of $7.1 million in 2023, largely due to a $5 million tax benefit [11] Other Developments - The sale of the Plano printing facility is expected to provide approximately $39 million in net proceeds, primarily aimed at fully funding pension obligations, thereby eliminating the company's "only debt" [12]

Financial Data and Key Metrics Changes - For Q4 2024, DallasNews Corporation reported a net income of $4 million or $0.74 per share, compared to a net loss of $2.2 million in Q4 2023 [6] - Total revenue for Q4 2024 was $31.1 million, down from $34 million in the same quarter last year [6] - For the full year 2024, the company reported a net income of $131,000 or $0.02 per share, an improvement from a net loss of $7.1 million in 2023 [10] - Total revenue for the year was $125.4 million, down from $139.7 million in 2023 [11] Business Line Data and Key Metrics Changes - Advertising and marketing services revenue decreased by $1.3 million in Q4 2024, primarily due to a 6% decline in print advertising revenue [7] - Circulation revenue decreased by $800,000 in Q4 2024, mainly due to a $700,000 decline in print circulation revenue [7] - For the full year, advertising marketing services revenue decreased by $11.1 million or 18.9% year over year [12] - Digital-only subscribers increased by 1,334 or 2.1% year over year, totaling 64,334 as of December 31, 2024 [13] Market Data and Key Metrics Changes - The average newsprint industry cost per metric ton decreased by 7.3% to $637 compared to $687 in 2023 [16] - The company had $60.1 million of federal net operating loss carryforward as of December 31, 2024 [19] Company Strategy and Development Direction - The company has transitioned print operations to a smaller, more efficient facility, generating over $5 million in annualized expense savings starting in 2025 [21] - The sale of the Plano property for $43.5 million will allow the company to fully fund its pension plan [22] - Investments in website and app enhancements were prioritized to stabilize the digital audience before expanding the digital product portfolio [27] Management's Comments on Operating Environment and Future Outlook - Management noted that print advertising revenue is volatile due to the lack of long-term contracts with advertisers, but there is potential for recovery [40] - The company is focused on becoming cash flow positive as soon as possible, although specific guidance was not provided [67] - Management expressed optimism about the progress made in 2024 and the expected benefits from operational changes in 2025 [19][20] Other Important Information - The company recorded a non-cash tax benefit of $5 million due to a reduction in the valuation allowance [10] - As of March 17, 2025, cash and short-term investments totaled $47 million [18] Q&A Session Summary Question: What led to the decrease in print advertising revenue? - Management indicated that print advertising is volatile, with less than 10% of advertisers on annual contracts, leading to a significant drop in classified revenue in Q4 2024 [39][40] Question: Can you provide details on the operating expenses related to the severance plan? - Management stated that specific fourth-quarter expenses would be clearer in the first quarter call, with substantial savings expected from the severance plan [43][45] Question: What are the expected after-tax proceeds from the asset sale? - The gross proceeds from the sale were $43.5 million, with expected net proceeds around $39 million after taxes and expenses [57][58] Question: What is the expected capital expenditure after the first quarter? - Management indicated that capital expenditures would return to a range of $250,000 to $500,000 per quarter after the initial expenses related to the new facility [59][75] Question: How are digital margins performing? - Management noted that video advertising yields higher returns than print, contributing positively to digital margins [91][92]

Revenue Performance - Total net operating revenue for 2024 was $125,391, a decrease of 10.2% compared to $139,696 in 2023[95]. - Advertising and marketing services revenue decreased by 18.9% to $47,900, accounting for 38.2% of total revenue in 2024[95][96]. - Circulation revenue was $64,891, a slight decline of 0.7%, representing 51.8% of total revenue for 2024[95][100]. - Print advertising revenue decreased by 34.6% to $22,914 million in 2024 from $35,045 million in 2023, while digital advertising revenue remained flat at $8,633 million[115][116]. - Circulation revenue slightly decreased by 0.7% to $64,891 million in 2024, with print circulation down 4.8% and digital circulation up 11.7%[120][121]. - Marketing and media services revenue increased by 6.5% to $16,353 million in 2024, reflecting new customer contracts[118][137]. - Other income increased by 57.0% to $2,233 million in 2024 from $1,422 million in 2023[108]. Cost Management - The company expects annual expense savings of approximately $5,000 from streamlining its print operations to a smaller facility[85]. - Employee compensation and benefits decreased by 8.0% to $63,923 in 2024, reflecting cost management efforts[95]. - Newsprint, ink, and other supplies expenses decreased significantly by 40.2% to $5,256, indicating improved cost efficiency[95]. - Total operating costs and expenses decreased by 10.4% to $132,449 million in 2024 from $147,766 million in 2023, driven by reductions in employee compensation and other operating costs[128]. Operational Changes - The company exited its shared mail program for weekly preprints in Q3 2023, reflecting a strategic shift in response to declining print revenue[86][97]. - The company plans to reduce its headcount by 76 employees, or 14.4%, in 2025, with related severance costs of $2,765[89]. - The total employee headcount decreased by 12.5% to 526 employees, primarily due to the 2023 Voluntary Severance Program[128]. - The Company expects to reduce its headcount by 76 employees, or 14.4%, in 2025 as part of its operational streamlining[163]. Capital Investments - Capital investments of $6,404 were made in 2024 for a more efficient press and related equipment, with an additional $2,000 expected for the new facility[89]. - The Company suspended the declaration and payment of dividends until further notice due to required capital investments for transitioning print operations[164]. - The sale price of the North Plant Property is $43,500, with expected net cash proceeds of $40,651 after closing[161]. - The Company plans to make a voluntary cash contribution to the DallasNews Pension Plans using a portion of the proceeds from the North Plant Property sale[162]. Cash Flow and Financial Position - The Company's cash balances decreased from $11,697 in 2023 to $9,594 in 2024, primarily due to severance payments, dividends, and capital investments[158]. - Net cash used for operating activities increased by $4,307, totaling $5,481 in 2024 compared to $1,174 in 2023, mainly due to severance payments and changes in working capital[166]. - Net cash provided by investing activities was $4,234 in 2024, a significant improvement from $(11,528) in 2023, due to reinvestments in CDs and capital spending[167]. Pension Obligations - The projected benefit obligations of the DallasNews Pension Plans were estimated using a discount rate of 5.3% for 2024 and 4.7% for 2023[152]. Taxation - The income tax benefit recorded in 2024 was $4,956 million, compared to a provision of $464 million in 2023, resulting in effective income tax rates of 102.7% and (7.0%) respectively[110][111]. Segment Performance - TDMN segment profit improved to $20,004 million in 2024 from $18,629 million in 2023, while Agency segment loss decreased to $(249) million from $(1,446) million[134][135]. Newsprint Consumption - Newsprint consumption decreased to approximately 4,850 metric tons in 2024 from 6,658 metric tons in 2023, with average cost per metric ton dropping from $779 to $646[130]. Digital Strategy - The Company continues to focus on a sustainable strategy to balance pricing and digital subscriber growth, with a 5.1% sequential improvement in digital-only subscriptions in Q3 2024[121][136]. Contractual Obligations - The Company had contractual obligations totaling $17,064 for the next five years as of December 31, 2024[171].

Financial Performance - For Q4 2024, DallasNews Corporation reported a net income of $4.0 million, or $0.74 per share, compared to a net loss of $2.2 million, or $(0.41) per share in Q4 2023[2]. - Total revenue for Q4 2024 was $31.1 million, a decrease of $2.9 million or 8.5% compared to Q4 2023[7]. - For the full year 2024, total revenue was $125.4 million, a decrease of $14.3 million or 10.2% compared to 2023[12]. - The company reported a full year net income of $0.1 million, or $0.02 per share, compared to a net loss of $7.1 million, or $(1.33) per share in 2023[4]. - Adjusted operating loss for the full year 2024 was $1.6 million, an improvement of $1.1 million compared to an adjusted operating loss of $2.7 million in 2023[5]. - The operating loss for Q4 2024 was $1,752,000, an improvement from a loss of $2,480,000 in Q4 2023[36]. - Net income for Q4 2024 was $3,971,000, compared to a net loss of $2,207,000 in Q4 2023[32]. - Basic and diluted earnings per share for Q4 2024 were both $0.74, compared to a loss of $0.41 per share in Q4 2023[32]. Revenue Breakdown - Advertising and marketing services revenue in Q4 2024 was $11.5 million, down $1.3 million or 10.3% from $12.8 million in Q4 2023, primarily due to a 16.6% reduction in print advertising revenue[8]. - Total net operating revenue for Q4 2024 was $31,088,000, a decrease of 8.4% from $33,983,000 in Q4 2023[32]. - Advertising and marketing services revenue decreased to $11,493,000 in Q4 2024 from $12,807,000 in Q4 2023, representing a decline of 10.3%[34]. - Circulation revenue also declined slightly to $16,348,000 in Q4 2024 from $17,148,000 in Q4 2023, a decrease of 4.7%[34]. Cost Management - The company achieved expense savings of $6.5 million in distribution and $5.5 million in employee compensation and benefits for the full year 2024[6]. - Total operating costs and expenses for Q4 2024 were $32,840,000, down from $36,463,000 in Q4 2023, a reduction of 9.0%[37]. Balance Sheet - As of December 31, 2024, the company had cash and cash equivalents of $9.6 million and no debt[19]. - Total assets as of December 31, 2024, were $61,843,000, a slight decrease from $62,234,000 in 2023[33]. - Total liabilities decreased to $55,030,000 in 2024 from $59,276,000 in 2023, a reduction of 7.4%[33]. - Total shareholders' equity increased significantly to $6,813,000 in 2024 from $2,958,000 in 2023[33]. Workforce Changes - The company experienced a headcount reduction of 75 employees, or 12.5%, compared to the previous year[19]. Segment Performance - DallasNews Corporation's Medium Giant segment has shown significant improvement in profit margins, contributing positively to the company's overall financial position[2].

Core Insights - The sale of a printing facility for $43.5 million has resolved legacy pension liabilities and improved the financial position and flexibility of the company [1] - The transition to a smaller and more efficient printing and distribution facility is expected to enhance digital investments and journalism quality, moving the company closer to sustainable profitability [2] Financial Performance - For Q4 2024, the company reported a net income of $4.0 million, or $0.74 per share, compared to a net loss of $2.2 million, or $(0.41) per share in Q4 2023 [2][4] - The total revenue for Q4 2024 was $31.1 million, a decrease of $2.9 million or 8.5% from Q4 2023 [7] - The full year 2024 net income was $0.1 million, or $0.02 per share, with an operating loss of $7.1 million, including severance expenses of $2.8 million [4][5] Revenue Breakdown - Advertising and marketing services revenue for Q4 2024 was $11.5 million, down 10.3% from $12.8 million in Q4 2023, primarily due to a 16.6% reduction in print advertising revenue [8] - Circulation revenue for Q4 2024 was $16.3 million, a decrease of 4.7% compared to Q4 2023, largely due to a decline in print circulation revenue [9] - Total revenue for the full year 2024 was $125.4 million, a decrease of 10.2% from 2023 [12] Expense Management - Total consolidated operating expenses for Q4 2024 were $32.8 million, an improvement of 9.9% compared to Q4 2023 [11] - For the full year 2024, total operating expenses were $132.4 million, a decrease of 10.4% from 2023, driven by savings in distribution and employee compensation [16][17] Employee and Cash Position - As of December 31, 2024, the company had 526 employees, a decrease of 75 or 12.5% from the previous year [18] - Cash and cash equivalents stood at $9.6 million, with no debt reported [18] Segment Information - The company operates two reportable segments: TDMN, which generates revenue from subscriptions and advertising, and Agency, which provides full-service advertising [19][20]

Core Points - DallasNews Corporation has successfully closed the sale of its Plano, TX printing facility for total proceeds of $43,500,000, which aligns with its strategy to streamline operations into a smaller, leased facility in Carrollton, Texas [1][2] - A portion of the proceeds will be used to fully fund the Company's pension liabilities, which the Company considers as eliminating debt [2] - The CEO of DallasNews Corp. expressed satisfaction with the financial outcome of the sale, highlighting its significance in the Return to Growth Plan and the assurance it provides regarding retirement benefits for over 1,300 employees [3] Company Overview - DallasNews Corporation is the holding company for The Dallas Morning News and Medium Giant, with The Dallas Morning News being Texas' leading daily newspaper known for its strong journalistic reputation and community ties [4] - Medium Giant is an integrated creative marketing agency under DallasNews Corporation, recognized for its industry achievements, including winning multiple awards in 2024 [5]