DallasNews (DALN) - 2025 Q1 - Quarterly Report

Revenue Performance - Total net operating revenue for Q1 2025 was $29,125, a decrease of 6.4$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$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$4,949 in Q1 2025 compared to Q1 2024[142] - Digital advertising revenue decreased by $67, or 3.4$1,891 in Q1 2025 compared to Q1 2024[143] - Print circulation revenue decreased by $709, or 6.0$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$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]