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]

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 in 2024, including an AAF Addy and the AMA DFW Annual Marketer of the Year Award for Campaign of the Year [4] Upcoming Financial Results - DallasNews Corporation will release its fourth quarter and full year 2024 financial results before the market opens on March 18, 2025 [1] - A conference call to discuss these results will take place on the same day at 9:00 a.m. CDT [1] Conference Call Details - The conference call will be available via webcast on the company's investor relations website, with an archive accessible later [2] - To participate in the call, interested parties can dial 1-800-715-9871 and use the access code 4679948 [2] - A replay of the call will be available until April 1, 2025, at 11:59 p.m. CDT, using the same access code [2]

Core Points - Veteran journalist Robert Wilonsky is returning to The Dallas Morning News, where he previously made significant contributions as an editor and city columnist [1][2] - Wilonsky is recognized for his storytelling ability and deep knowledge of Dallas, making him a respected voice in local journalism [2][3] - His return is seen as a homecoming, and he is expected to continue covering Dallas with the same depth and commitment as before [3][4] Company Overview - DallasNews Corporation is the holding company for The Dallas Morning News and Medium Giant, emphasizing its strong journalistic reputation and community ties [5] - The Dallas Morning News is Texas' leading daily newspaper, known for its quality journalism and has won nine Pulitzer Prizes [5] - Medium Giant, a creative marketing agency under DallasNews Corporation, has received multiple industry awards, including the AAF Addy and AMA DFW Annual Marketer of the Year Award [6]

Core Insights - The series "Meth: The Prison Pipeline" highlights the severe sentencing disparities for methamphetamine compared to other drugs, particularly fentanyl, despite meth causing fewer deaths and hospitalizations [1][2] - The investigation reveals that the median meth sentence in the Northern District of Texas is over 10 years, significantly higher than the national median of 6 years, indicating a trend of harsher penalties for meth offenses [3] Summary by Sections Investigation Findings - The Dallas Morning News conducted a comprehensive investigation involving hundreds of North Texas meth cases, analyzing thousands of sentencing transcripts and crime data [2] - The analysis showed that sentences for meth are disproportionately severe compared to those for more lethal drugs like fentanyl [2] Sentencing Disparities - The Northern District of Texas has the longest meth sentences in the country, with first-time, non-violent offenders facing decades in prison without parole [3] - The annual cost to taxpayers for these meth sentences is estimated at $1.4 billion [3] Historical Context - The series discusses the origins of current meth laws, tracing back to tough-on-crime policies from the 1980s and 1990s, which have led to the current sentencing landscape [4]

Core Message - The Dallas Morning News has launched a new brand campaign titled "This is Home," aimed at fostering community connections and enhancing reader trust through meaningful storytelling [1][3]. Group 1: Campaign Overview - The campaign is a collaboration between The Dallas Morning News and Medium Giant, focusing on personal connections and community engagement [2][4]. - "This is Home" aims to address the lack of trust in media and to help North Texans feel a stronger sense of community [3][5]. Group 2: Themes and Content - The campaign will highlight the diverse experiences of North Texans, including challenges such as the fentanyl crisis and the impact of toll roads, while also celebrating resilience and hope [3][5]. - An important aspect of the campaign is the concept of intersections, where stories and perspectives converge, positioning The News as a vital source of information for its readers [4][5]. Group 3: Implementation and Legacy - The campaign is set to launch this week and will focus on iconic intersections across North Texas, inviting readers to engage with their community beyond just headlines [5][6]. - The initiative continues The Dallas Morning News' legacy of impactful journalism, reinforcing its commitment to relevant storytelling [6].

Financial Data and Key Metrics Changes - DallasNews Corporation reported a net loss of $3.9 million or $0.73 per share for Q3 2024, compared to a net loss of $1.4 million in Q3 2023 [5] - The operating loss for Q3 2024 was $4.1 million, an increase from an operating loss of $1.6 million in the same period last year [5] - On a non-GAAP basis, the adjusted operating loss improved to $700,000, a $200,000 improvement from an adjusted operating loss of $900,000 in Q3 2023 [5][6] Business Line Data and Key Metrics Changes - Total revenue declined by $3.4 million primarily due to the discontinuation of the shared mail program and niche publications [6] - Digital advertising revenue increased by $48,000, while print advertising revenue decreased [6] - Marketing and media services revenue improved by $900,000 due to two new customer contracts [6] - Circulation revenue decreased by $100,000, with digital circulation revenue increasing by $400,000, offsetting a $500,000 decline in print circulation revenue [7] Market Data and Key Metrics Changes - The total number of subscribers decreased to 124,886 as of September 30, down from 137,493 a year earlier [7] - Digital-only subscription rates increased by approximately 13.5%, despite an 8% decline in digital subscribers [7] Company Strategy and Development Direction - The company is transitioning to a smaller printing facility, which is expected to incur additional capital and operating costs in the short term but will lead to annual expense savings [10] - The focus is on building a sustainably profitable media company while managing pension plan funding, which is currently over 90% funded [11][14] - The strategy includes extending the introductory pricing window for digital subscriptions to increase volume [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in digital advertising due to declining referral traffic from Google, which has impacted overall digital advertising revenue [16] - The company is optimistic about the new digital pricing strategy, which has already shown positive results in subscriber growth [17] - Management expects to see continued improvement in adjusted operating loss and is focused on disciplined expense management [10][15] Other Important Information - The company has no debt and reported cash and cash equivalents of $14 million as of September 30, with a slight decrease to $11.6 million by November 8 [9][10] - The transition of printing operations is expected to be completed in the first quarter of 2025 [12] Q&A Session Summary Question: What was the digital circulation volume growth since the change in pricing midway through the quarter? - The company reported a growth of over 3,100 digital subscribers since the strategy change in early September [18] Question: Has there been any meaningful pickup in advertising revenue related to election spending? - There has not been a significant increase in advertising revenue from election spending, as most funds are directed towards television and streaming [23] Question: What is the total addressable market (TAM) for the digital news product at the current price point? - The estimated TAM for digital subscribers is around 600,000 in North Texas, with the company currently serving a little over 10% of that market [22] Question: What are the expectations for pricing growth as subscription volumes increase? - The company is testing different price points to determine the optimal balance between subscription volume and pricing, with a focus on reducing churn [32][34] Question: What is the expected annualized expense savings from the transition to the new printing facility? - The expected annualized expense savings from the transition is around $5 million [43]

Core Insights - DallasNews Corporation (DALN) shares increased by 4.8% following the earnings report for the quarter ended September 30, 2024, outperforming the S&P 500 index, which saw a decline of 0.3% during the same period [1] - The company reported a net loss of $3.9 million, or 73 cents per share, which is a significant increase from a net loss of $1.4 million, or 26 cents per share, in the same quarter of the previous year [1] Revenue Performance - Total revenues for the third quarter of 2024 were $31.1 million, reflecting a 9.7% decrease from $34.5 million in the same quarter of 2023 [2] - The decline in revenue was primarily due to an 18.5% drop in advertising and marketing services revenue, which fell from $14.7 million to $12 million [2] - Circulation revenue experienced a slight decline of 0.8%, totaling $16.1 million compared to $16.2 million in the prior year [2] Other Revenue Streams - Printing, distribution, and other revenue decreased by 14% to $3.1 million, mainly due to reductions in commercial printing and mailed advertisement revenues [3] Operating Metrics - The company incurred an adjusted operating loss of $0.7 million, an improvement from the $0.9 million loss recorded a year ago, attributed to cost-saving measures that reduced adjusted operating expenses by 10% to $31.9 million [4] - The TDMN segment's adjusted operating income was $4.8 million, slightly down from $5 million in the third quarter of 2023, while the Agency segment reported a modest adjusted operating income of $0.05 million, recovering from a loss of $0.7 million in the previous year [5] Strategic Initiatives - CEO Grant Moise emphasized a strategic shift towards digital growth, implementing an adjusted digital subscription model aimed at reversing the decline in subscription volume, with gradual revenue growth expected from this initiative [6] - The decline in advertising revenues was influenced by the company's decision to phase out its shared mail program and certain print-only niche publications [7] Cost Management - Operating expenses decreased by 2.4% year over year to $35.3 million, aided by a $1.9 million reduction in distribution costs and $1.1 million in savings from newsprint expenses, despite an increase in employee compensation due to a $3 million severance expense related to workforce restructuring [8] Workforce Changes - During the quarter, DallasNews reduced its workforce by 12.2%, bringing the employee count to 534 as of September 30, 2024, as part of a restructuring initiative aimed at streamlining operations and enhancing efficiency [9]

Revenue Performance - Total net operating revenue for Q3 2024 was $31,140, a decrease of 9.7% compared to $34,499 in Q3 2023[90] - Advertising and marketing services revenue decreased by 18.5% to $11,977 in Q3 2024, compared to $14,699 in Q3 2023[91] - Circulation revenue remained relatively stable, with a slight decrease of 0.8% to $16,062 in Q3 2024, compared to $16,194 in Q3 2023[91] - Digital advertising revenue accounted for 38.4% of total revenue in Q3 2024, down from 42.6% in Q3 2023[92] - Circulation revenue represented 51.6% of total revenue in Q3 2024, up from 46.9% in Q3 2023[96] - Total net operating revenue for the three months ended September 30, 2024, was $26,723, a decrease from $30,883 in the same period of 2023, representing a decline of 13.9%[127] Operating Loss and Expenses - The operating loss for Q3 2024 was $4,118, representing a significant increase of 155.1% compared to an operating loss of $1,614 in Q3 2023[91] - Employee compensation and benefits increased by 9.0% to $18,048 in Q3 2024, compared to $16,565 in Q3 2023[91] - Total operating costs and expenses decreased by 2.4% to $35,258 million for the three months ended September 30, 2024, compared to $36,113 million in 2023[121] - Employee compensation and benefits decreased by 8.2% to $10,379 million for the three months ended September 30, 2024, compared to $11,301 million in 2023[121] Severance and Transition Costs - The company recorded severance expenses of $2,982 related to the transition to a smaller printing facility[88] - The company accrued severance of $2,790 for the printing facility transition, which is included in other accrued expenses as of September 30, 2024[134] - The company recorded a severance expense of $2,982 million in the third quarter of 2024, primarily related to the transition to a smaller printing facility[122] - Total company employee headcount decreased by 12.2% to 534 compared to September 30, 2023, primarily due to the Voluntary Severance Program[122] Digital and Print Revenue Trends - Print advertising revenue decreased by 40.5% to $5,404 million for the three months ended September 30, 2024, compared to $9,082 million in 2023[110] - Digital advertising revenue increased by 2.3% to $2,156 million for the three months ended September 30, 2024, compared to $2,108 million in 2023[110] - Print circulation revenue decreased by 4.2% to $11,460 million for the three months ended September 30, 2024, compared to $11,964 million in 2023[115] - Digital circulation revenue increased by 8.8% to $4,602 million for the three months ended September 30, 2024, compared to $4,230 million in 2023[115] Future Plans and Investments - The company plans to transition its printing operations to a smaller facility, expecting annual expense savings of approximately $5,000[87] - The Company expects to make capital investments of approximately $8,000 in a more efficient press and related equipment as part of streamlining its printing operations[133] - The company is actively marketing its Plano facility for sale, which includes land, building, and production assets[88] Tax and Other Income - Other income, net increased by 56.7% to $536 million for the three months ended September 30, 2024, compared to $342 million in the same period of 2023[104] - The income tax provision was $345 million for the three months ended September 30, 2024, up 148.2% from $139 million in 2023[106] Cash Flow - Net cash used for operating activities increased to $2,317 for the nine months ended September 30, 2024, compared to $114 in the prior year, primarily due to severance payments[136] - Net cash provided by investing activities was $5,464 for the nine months ended September 30, 2024, compared to $(11,359) in the same period of 2023[137] Dividend Suspension - The Company has suspended the declaration and payment of dividends until further notice due to required capital investments for the transition of print operations[135]

Financial Performance - In Q3 2024, DallasNews Corporation reported a net loss of $3.9 million, or $(0.73) per share, compared to a net loss of $1.4 million, or $(0.26) per share in Q3 2023[1]. - Total revenue for Q3 2024 was $31.1 million, a decrease of $3.4 million or 9.7% from $34.5 million in Q3 2023[2]. - Advertising and marketing services revenue was $12.0 million, down $2.7 million or 18.5% from $14.7 million in Q3 2023, primarily due to a $3.1 million decline in print advertising revenue[2]. - Circulation revenue decreased slightly to $16.1 million, down $0.1 million or 0.8% from $16.2 million in Q3 2023, with digital-only subscription revenue increasing by $0.4 million or 8.8%[2]. - The operating loss for the three months ended September 30, 2024, was $4,118, compared to a loss of $1,614 in the same period last year, indicating a significant decline[19]. - Adjusted operating income for the TDMN segment was $4,758 for the three months ended September 30, 2024, down from $5,006 in the same period of 2023[20]. Operating Expenses - Total consolidated operating expenses were $35.3 million, an improvement of $0.9 million or 2.4% compared to Q3 2023, driven by savings in distribution and newsprint[3]. - Total operating costs and expenses for the three months ended September 30, 2024, were $35,258, a decrease of 2.4% from $36,113 in the same period of 2023[19]. Employment and Workforce - The company had 534 employees as of September 30, 2024, a decrease of 74 employees or 12.2% compared to the previous year[5]. Cash and Assets - Cash and cash equivalents stood at $14.0 million as of September 30, 2024, with no debt reported[5]. - Total current assets decreased to $29,926 as of September 30, 2024, from $36,933 as of December 31, 2023, reflecting a decline of 19%[19]. - Cash and cash equivalents increased to $13,988 as of September 30, 2024, from $11,697 as of December 31, 2023, representing a growth of 19.6%[19]. Shareholders' Equity and Liabilities - The company reported a total shareholders' equity of $(576) as of September 30, 2024, down from $2,958 as of December 31, 2023, indicating a significant decline[19]. - Total liabilities increased to $62,178 as of September 30, 2024, compared to $59,276 as of December 31, 2023, marking an increase of 4.8%[19]. Strategic Focus - The company is focusing on optimizing subscription volume and pricing, which has ended a 14-month volume decline[2]. - Medium Giant's advertising and marketing services revenue grew by $0.4 million in Q3 2024, despite the termination of the shared mail program[1]. Digital and Print Revenue - Print advertising revenue decreased to $5,404 for the three months ended September 30, 2024, down 40.5% from $9,082 in the prior year[18]. - Digital advertising revenue increased slightly to $2,156, compared to $2,108 in the same period last year, reflecting a growth of 2.3%[18].

DALLAS, Nov. 12, 2024 (GLOBE NEWSWIRE) -- DallasNews Corporation (Nasdaq: DALN) (the “Company”) today reported a third quarter 2024 net loss of $3.9 million, or $(0.73) per share, and an operating loss of $4.1 million. In the third quarter of 2023, the Company reported a net loss of $1.4 million, or $(0.26) per share, and an operating loss of $1.6 million. The third quarter 2024 net loss includes severance expense of $3.0 million, primarily due to the Company’s anticipated headcount reductions related to th ...