DallasNews Corporation Announces Fourth Quarter and Full Year 2024 Financial Results

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DallasNews 's Q4 and full-year 2024 results demonstrate a strategic transformation in progress, with improved bottom-line performance despite ongoing revenue challenges. The company posted Q4 net income of $4.0 million ($0.74 per share) compared to a $2.2 million loss in Q4 2023, though this improvement was largely driven by a $5.3 million non-cash tax benefit from the sale of its printing facility.

The $43.5 million facility sale represents a pivotal transaction that resolved legacy pension liabilities while generating capital for digital investments. This strategic rightsizing - moving to a facility 90% smaller - should meaningfully improve operational efficiency over time.

Core revenue challenges persist across all segments: advertising/marketing services declined 10.3% in Q4, circulation fell 4.7%, and printing/distribution dropped 19.4%. For the full year, total revenue decreased 10.2% to $125.4 million. The silver lining is digital-only subscription revenue, which grew 11.7% for the year.

From an operational perspective, the company has made substantial progress reducing expenses, with full-year adjusted operating expense improving 10.8% to $127.0 million. With $9.6 million cash and zero debt, the balance sheet remains solid, and the company has regained Nasdaq compliance with shareholders' equity of $6.8 million.

This transformation exemplifies the challenging pivot traditional media companies must execute - shrinking legacy operations while developing digital capabilities. The trajectory suggests operational improvement, though sustainable growth remains contingent on accelerating digital revenue to offset print declines.

The restructuring underway at DallasNews reflects the existential challenge facing local news organizations nationwide - how to maintain quality journalism while fundamentally transforming business operations. The 90% facility reduction and associated headcount reductions (down 12.5% in 2024 with more cuts coming in 2025) represent difficult but necessary decisions to align cost structure with current market realities.

What's particularly significant is management's explicit commitment to reinvest proceeds from the printing facility sale into both digital assets and journalism. CEO Grant Moise directly connected operational changes to investing in the newsroom, highlighting investigative projects on toll roads and preventable bleeding deaths as examples of the company's journalistic impact.

The digital transformation is showing early signs of traction with 11.7% growth in digital-only subscriptions, though this represents a relatively modest revenue stream compared to traditional sources. Medium Giant, the company's advertising agency, appears to be delivering improved profitability, potentially offering diversification beyond core publishing operations.

The company's adjusted operating loss improvement ($1.6 million in 2024 versus $2.7 million in 2023) indicates progress toward sustainable operations, though revenue declines across all major categories remain concerning. The strategic decision to exit shared mail programs and discontinue print-only niche publications shows management's willingness to make tough choices to focus resources on core products.

This earnings report demonstrates both the painful realities facing legacy newspaper companies and a potentially viable path forward through strategic asset monetization, operational right-sizing, and targeted digital investments.

03/17/2025 - 05:31 PM

Recent Close of $43.5 Million Printing Facility Sale Resolves Legacy Pension Liabilities; Enhances Financial Position and Flexibility

DALLAS, March 17, 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 fourth quarter and full year 2024.

Grant Moise, Chief Executive Officer, said, “2024 was a significant year for the Company as we began the transition of our printing and distribution facility to one that is 90 percent smaller and significantly more efficient. This change provides the Company with a source of funds to invest back into our digital assets, while simultaneously moving us closer to sustainable profitability. These operational changes, also allow us to invest in our journalism, which is the heartbeat of our business. In 2024, our newsroom published ambitious projects ranging from Texas’ excessive use of toll roads to an investigative series about why tens of thousands of Americans die from preventable bleeding each year. Last, but not least, Medium Giant’s bottom line contribution to the Company has improved significantly, and we look forward to continued improvement in its profit margin.”

For the fourth quarter of 2024, the Company reported net income of $4.0 million, or $0.74 per share, and an operating loss of $1.8 million. The fourth quarter 2024 net income includes a non-cash tax benefit of $5.3 million resulting from a reduction in the valuation allowance for deferred tax assets. The deferred tax assets were determined to be realizable due to the income from the sale of the Company’s Plano, TX printing facility. In the fourth quarter of 2023, the Company reported a net loss of $2.2 million, or $(0.41) per share, and an operating loss of $2.5 million, which includes expense of $2.7 million related to the 2023 Voluntary Severance Program.

For the fourth quarter of 2024, on a non-GAAP basis, DallasNews reported an operating loss adjusted for certain items (“adjusted operating income (loss)”) of $1.3 million, a decrease of $1.9 million when compared to adjusted operating income of $0.6 million reported in the fourth quarter of 2023. The decline is primarily due to a total revenue decrease of $2.9 million, partially offset by expense savings of $0.6 million in employee compensation and benefits, and $0.5 million in newsprint.

For the full year 2024, the Company reported net income of $0.1 million, or $0.02 per share, and an operating loss of $7.1 million, which includes severance expense of $2.8 million for the anticipated headcount reductions resulting from the transition to a smaller, more efficient printing facility. The 2024 net income includes a non-cash tax benefit of $5.0 million, primarily resulting from a reduction in the valuation allowance for deferred tax assets. For the full year 2023, the Company reported a net loss of $7.1 million, or $(1.33) per share, and an operating loss of $8.1 million.

For the full year 2024, on a non-GAAP basis, the Company reported an adjusted operating loss of $1.6 million, an improvement of $1.1 million when compared to an adjusted operating loss of $2.7 million reported for the full year 2023.

The improvement is primarily due to expense savings of $6.5 million in distribution, $5.5 million in employee compensation and benefits expense, and $3.5 million in newsprint, partially offset by a total revenue decline of $14.3 million. The $6.5 million expense savings in distribution and total revenue decline of $14.3 million are primarily the result of the Company’s strategic decision to exit its shared mail program and discontinue print-only editions of its niche publications at the end of August 2023.

Fourth Quarter Results

Total revenue was $31.1 million in the fourth quarter of 2024, a decrease of $2.9 million or 8.5 percent when compared to the fourth quarter of 2023.

Revenue from advertising and marketing services, including print and digital revenues, was $11.5 million in the fourth quarter of 2024, a decrease of $1.3 million or 10.3 percent when compared to the $12.8 million reported for the fourth quarter of 2023. The decline is primarily due to a $1.1 million or 16.6 percent reduction in print advertising revenue.

Circulation revenue was $16.3 million in the fourth quarter of 2024, a decrease of $0.8 million or 4.7 percent when compared to the fourth quarter of 2023, primarily due to a $0.7 million or 5.5 percent decline in print circulation revenue, which includes the impact of additional single copy revenue generated in 2023 related to the Texas Rangers World Series win.

Printing, distribution and other revenue was $3.2 million, a decrease of $0.8 million or 19.4 percent when compared to the fourth quarter of 2023, primarily resulting from a canceled commercial printing partnership, and nonrecurring revenue generated in 2023 from Texas Rangers World Series product sales.

Total consolidated operating expense in the fourth quarter of 2024, on a GAAP basis, was $32.8 million, an improvement of $3.6 million or 9.9 percent when compared to the fourth quarter of 2023. The improvement is primarily due to expense savings of $3.3 million in employee compensation and benefits, including severance, and $0.5 million in newsprint.

On a non-GAAP basis, adjusted operating expense was $32.4 million, an improvement of $1.0 million or 2.9 percent when compared to the fourth quarter of 2023.

Full Year Results

Total revenue was $125.4 million for the full year 2024, a decrease of $14.3 million or 10.2 percent when compared to the full year 2023.

Revenue from advertising and marketing services, including print and digital revenues, was $47.9 million in 2024, a decrease of $11.1 million or 18.9 percent when compared to the $59.0 million reported for the full year 2023. Excluding the $10.7 million reduction in print advertising revenue resulting from the Company ending its shared mail program and print-only niche publications, print advertising revenue declined $1.4 million or 5.7 percent, partially offset by an improvement of $1.0 million or 6.5 percent in marketing and media services revenue, driven by two customer contracts that began in 2024.

Circulation revenue was $64.9 million for the full year 2024, a decrease of $0.5 million when compared to the full year 2023. The digital-only subscription revenue increase of $1.9 million or 11.7 percent, mostly offset the print circulation decline of $2.4 million or 4.8 percent.

Printing, distribution and other revenue decreased $2.7 million, or 17.7 percent, to $12.6 million, primarily due to reductions in revenue from commercial printing and distribution, including the loss of $0.9 million in revenue from a canceled commercial printing partnership, as well as a reduction in revenue from mailed advertisements for business customers.

Total consolidated operating expense for the full year 2024, on a GAAP basis, was $132.4 million, an improvement of $15.3 million or 10.4 percent compared to the full year 2023. The improvement is primarily due to expense savings of $6.5 million in distribution, $5.5 million in employee compensation and benefits expense, including severance, and $3.5 million in newsprint, partially offset by $0.5 million in additional lease expense related to moving to a smaller printing facility.

On a non-GAAP basis, adjusted operating expense was $127.0 million, an improvement of $15.4 million or 10.8 percent when compared to $142.4 million of adjusted operating expense in the full year 2023.

As of December 31, 2024, the Company had 526 employees, a headcount decrease of 75 or 12.5 percent when compared to the prior year period, not including employees departing in 2025 when the transition to the new printing facility is complete. Cash and cash equivalents were $9.6 million at December 31, 2024, and the Company has no debt.

Segment Information

The Company determined it has the following two reportable segments:

TDMN primarily generates revenue from subscriptions and retail sales of The Dallas Morning News, and sales of advertising within its newspaper and on related digital platforms by Medium Giant’s cross-functional sales team.
Agency generates revenue from the services offered by the Company’s full-service advertising agency, Medium Giant.

The primary measure of segment profitability utilized by the Chief Operating Decision Maker (“CODM”) is segment profit (loss), which excludes Corporate and Other costs that are not associated with the ongoing operations of the segments. Reconciliation of segment profit (loss) to consolidated operating loss, and disaggregated revenue by reportable segment and revenue source are included in the exhibits to this release.

Update on Nasdaq Compliance

The Company has reported shareholders’ equity of $6.8 million as of December 31, 2024. Accordingly, the Company was in compliance with the minimum stockholders’ equity continued listing standard set forth under Rule 5550(b)(1) of the Nasdaq Listing Rules (the “Stockholders’ Equity Requirement”) as of December 31, 2024 and believes that it is in compliance with the Stockholders’ Equity Requirement as of the date of this release.

Non-GAAP Financial Measures

The CODM uses adjusted operating income (loss) for the purposes of evaluating consolidated performance and allocating resources.

Reconciliations of operating loss to adjusted operating income (loss) and total operating costs and expense to adjusted operating expense are included in the exhibits to this release.

The Company calculates adjusted operating income (loss) by adjusting operating loss to exclude depreciation, severance expense, (gain) loss on sale/disposal of assets, and asset impairments (“adjusted operating income (loss)”). The Company believes that inclusion of certain noncash expenses and other items in the results makes for more difficult comparisons between years and with peer group companies.

Adjusted operating income (loss) is not a measure of financial performance under generally accepted accounting principles (“GAAP”). Management uses adjusted operating income (loss) and similar measures in internal analyses as supplemental measures of the Company’s financial performance, and for performance comparisons versus its peer group of companies. Management uses this non-GAAP financial measure for the purposes of evaluating consolidated Company performance. The Company therefore believes that the non-GAAP measure presented provides useful information to investors by allowing them to view the Company’s business through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods and providing a focus on the underlying ongoing operating performance of its business. Adjusted operating income (loss) should not be considered in isolation or as a substitute for net income (loss), cash flows provided by (used for) operating activities or other comparable measures prepared in accordance with GAAP. Additionally, this non-GAAP measure may not be comparable to similarly-titled measures of other companies.

Financial Results Conference Call

DallasNews Corporation will conduct a conference call on Tuesday, March 18, 2025, at 9:00 a.m. CDT to discuss financial results. The conference call will be available via webcast by accessing the Company’s website at investor.dallasnewscorporation.com/events. An archive of the webcast will be available at dallasnewscorporation.com in the Investor Relations section.

To access the conference call, dial 1-800-715-9871 and provide the following access code when prompted: 4679948. A replay line will be available at 1-800-770-2030 until 11:59 p.m. CDT on April 1, 2025. The access code for the replay is 4679948#.

About DallasNews Corporation

DallasNews Corporation is the Dallas-based holding company of The Dallas Morning News and Medium Giant.

The Dallas Morning News, Texas’ leading daily newspaper, is renowned for its excellent journalistic reputation, intense regional focus, and close community ties. As a testament to its commitment to quality journalism, the publication has been honored with nine Pulitzer Prizes.

Medium Giant, an integrated creative marketing agency with offices in Dallas and Tulsa, works with a roster of premium brands and companies. In 2024, the agency earned top industry recognition, winning an AAF Addy and the AMA DFW Annual Marketer of the Year Award for Campaign of the Year, along with six prestigious Davey Awards. Medium Giant is a wholly owned business of DallasNews Corporation. For additional information, visit mediumgiant.co.

Statements in this communication concerning the Company’s planned transition of print operations; expense savings related to the transition, the Company’s business outlook or future economic performance, revenues, expenses, cash balance, investments, business initiatives, working capital, dividends, future financings, and other financial and non-financial items that are not historical facts are “forward-looking statements” as the term is defined under applicable federal securities laws. Words such as “anticipate,” “assume,” “believe,” “can,” “could,” “estimate,” “forecast,” “intend,” “expect,” “may,” “project,” “plan,” “seek,” “should,” “target,” “will,” “would” and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements. Such risks, trends and uncertainties are, in most instances, beyond the Company’s control, and include changes in advertising demand and other economic conditions; the timeline for transitioning print operations; consumers’ tastes; newsprint and distribution prices; program costs; the Company’s ability to successfully execute the Return to Growth Plan; the Company’s ability to maintain compliance with the continued listing requirements of The Nasdaq Capital Market; the success of the Company’s digital strategy; labor relations; cybersecurity incidents; and technological obsolescence. Among other risks, there can be no guarantee that the Company’s board of directors will approve a quarterly dividend in the future or that the Company’s financial projections are accurate, as well as other risks described in the Company’s Annual Report on Form 10-K and in the Company’s other public disclosures and filings with the Securities and Exchange Commission. Forward-looking statements, which are as of the date of this communication, are not updated to reflect events or circumstances after the date of the statement.

Contact:
Katy Murray
214-977-8869
KMurray@dallasnews.com

DallasNews Corporation and Subsidiaries
Consolidated Statements of Operations



	*Three Months Ended December 31,*						*Years Ended December 31,*
*In thousands, except share and per share amounts (unaudited)*	*2024*			*2023*			*2024*			*2023*
Net Operating Revenue:
Advertising and marketing services	$	11,493		$	12,807		$	47,900		$	59,038
Circulation		16,348			17,148			64,891			65,349
Printing, distribution and other		3,247			4,028			12,600			15,309
Total net operating revenue		31,088			33,983			125,391			139,696
Operating Costs and Expense:
Employee compensation and benefits		15,020			18,271			63,923			69,445
Other production, distribution and operating costs		16,060			15,909			61,663			68,008
Newsprint, ink and other supplies		1,369			1,881			5,256			8,793
Depreciation		391			402			1,607			1,520
Total operating costs and expense		32,840			36,463			132,449			147,766
Operating loss		(1,752	)		(2,480	)		(7,058	)		(8,070	)
Other income, net		445			340			2,233			1,422
Loss Before Income Taxes		(1,307	)		(2,140	)		(4,825	)		(6,648	)
Income tax provision (benefit)		(5,278	)		67			(4,956	)		464
Net Income (Loss)	$	3,971		$	(2,207	)	$	131		$	(7,112	)

Per Share Basis (1)
Net income (loss)
Basic	$	0.74		$	(0.41	)	$	0.02		$	(1.33	)
Diluted	$	0.74		$	(0.41	)	$	0.02		$	(1.33	)
Number of common shares used in the per share calculation:
Basic		5,352,490			5,352,490			5,352,490			5,352,490
Diluted		5,352,490			5,352,490			5,352,490			5,352,490

^{(1) The Company’s Series A and Series B common stock equally share in the distributed and undistributed earnings. There were no options or RSUs outstanding as of December 31, 2024 and 2023, that would result in dilution of shares or the calculation of EPS under the two-class method as prescribed under ASC 260 – Earnings Per Share.}

DallasNews Corporation and Subsidiaries
Consolidated Balance Sheets



	*December 31,*		*December 31,*
*In thousands (unaudited)*	*2024*		*2023*
Assets
Current assets:
Cash and cash equivalents	$	9,594	$	11,697
Short-term investments		—		10,781
Accounts receivable, net		10,662		9,923
Other current assets		4,087		4,532
Total current assets		24,343		36,933
Property, plant and equipment, net		12,633		7,099
Operating lease right-of-use assets		17,434		16,141
Deferred income taxes, net		5,609		271
Other assets		1,824		1,790
Total assets	$	61,843	$	62,234
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	4,808	$	3,963
Accrued compensation and other current liabilities		11,498		10,449
Contract liabilities		8,689		9,511
Total current liabilities		24,995		23,923
Long-term pension liabilities		11,764		17,353
Long-term operating lease liabilities		17,379		16,924
Other liabilities		892		1,076
Total liabilities		55,030		59,276
Commitments and contingencies
Total shareholders' equity		6,813		2,958
Total liabilities and shareholders’ equity	$	61,843	$	62,234

DallasNews Corporation and Subsidiaries
Disaggregated Revenue by Reportable Segment and Revenue Source



	*Three Months Ended December 31,*				*Years Ended December 31,*
*In thousands (unaudited)*	*2024*		*2023*		*2024*		*2023*
TDMN
Print advertising(1)	$	5,313	$	6,373	$	22,914	$	35,045
Digital advertising(2)		2,245		2,194		8,633		8,634
Agency
Marketing and media services(2)		3,935		4,240		16,353		15,359
Advertising and Marketing Services	$	11,493	$	12,807	$	47,900	$	59,038

TDMN
Print circulation		11,852		12,545		46,671		49,034
Digital circulation		4,496		4,603		18,220		16,315
Circulation	$	16,348	$	17,148	$	64,891	$	65,349

TDMN		3,247		4,028		12,600		14,884
Agency		—		—		—		425
Printing, Distribution and Other	$	3,247	$	4,028	$	12,600	$	15,309

Total Revenue	$	31,088	$	33,983	$	125,391	$	139,696

^{(1) The year ended December 31, 2023, includes $10,748 of revenue generated from the Company’s shared mail program to deliver weekly preprints, as well as advertising in the print-only editions of its niche publications. At the end of August 2023, the Company made the strategic decisions to exit its shared mail program and discontinue print-only editions of its niche publications.}
^{(2) Prior to the segment reporting change, digital advertising, and marketing and media services revenues were reported in aggregate.}

DallasNews Corporation
Reconciliation of Segment Profit (Loss) to Operating Loss



	*Three Months Ended December 31,*						*Years Ended December 31,*
*In thousands (unaudited)*	*2024*			*2023*			*2024*			*2023*
TDMN
Net operating revenue	$	27,153		$	29,743		$	109,038		$	123,912

Employee compensation and benefits		10,520			11,055			41,682			46,169
Other production, distribution and operating costs		11,702			11,668			42,746			50,773
Newsprint, ink and other supplies		1,250			1,586			4,606			8,341
Operating costs and expense		23,472			24,309			89,034			105,283
TDMN Segment Profit	$	3,681		$	5,434		$	20,004		$	18,629

Agency
Net operating revenue	$	3,935		$	4,240		$	16,353		$	15,784

Employee compensation and benefits		2,067			2,323			8,720			9,877
Other production, distribution and operating costs		1,672			1,452			7,232			6,901
Newsprint, ink and other supplies		119			295			650			452
Operating costs and expense		3,858			4,070			16,602			17,230
Agency Segment Profit (Loss)	$	77		$	170		$	(249	)	$	(1,446	)

Total Segment Profit	$	3,758		$	5,604		$	19,755		$	17,183
Reconciling items:
Corporate and Other		(5,510	)		(8,084	)		(26,813	)		(25,253	)
Operating Loss	$	(1,752	)	$	(2,480	)	$	(7,058	)	$	(8,070	)

DallasNews Corporation - Non-GAAP Financial Measures
Reconciliation of Operating Loss to Adjusted Operating Income (Loss)



	*Three Months Ended December 31,*						*Years Ended December 31,*
*In thousands (unaudited)*	*2024*			*2023*			*2024*			*2023*
Total net operating revenue	$	31,088		$	33,983		$	125,391		$	139,696
Total operating costs and expense		32,840			36,463			132,449			147,766
Operating Loss	$	(1,752	)	$	(2,480	)	$	(7,058	)	$	(8,070	)

Total operating costs and expense	$	32,840		$	36,463		$	132,449		$	147,766
Less:
Depreciation		391			402			1,607			1,520
Severance expense		45			2,673			3,803			3,834
Adjusted Operating Expense	$	32,404		$	33,388		$	127,039		$	142,412

Total net operating revenue	$	31,088		$	33,983		$	125,391		$	139,696
Adjusted operating expense		32,404			33,388			127,039			142,412
Adjusted Operating Income (Loss)	$	(1,316	)	$	595		$	(1,648	)	$	(2,716	)

FAQ

What was DallasNews 's (DALN) net income for Q4 2024?

DALN reported Q4 2024 net income of $4.0 million ($0.74 per share), including a $5.3 million non-cash tax benefit.

How much did DALN's digital subscription revenue grow in 2024?

Digital-only subscription revenue increased by 11.7% in 2024.

What was the value of DALN's printing facility sale?

The company sold its Plano, TX printing facility for $43.5 million.

How did DALN's total revenue change in 2024 compared to 2023?

Total revenue decreased by 14.3 million (10.2%) to $125.4 million in 2024 compared to 2023.

What is DALN's current cash position and debt status as of December 2024?

The company had $9.6 million in cash and zero debt as of December 31, 2024.

DallasNews Corporation Announces Fourth Quarter and Full Year 2024 Financial Results

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FAQ

What was DallasNews 's (DALN) net income for Q4 2024?

How much did DALN's digital subscription revenue grow in 2024?

What was the value of DALN's printing facility sale?

How did DALN's total revenue change in 2024 compared to 2023?

What is DALN's current cash position and debt status as of December 2024?

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DallasNews Corporation Announces Fourth Quarter and Full Year 2024 Financial Results

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What was DallasNews 's (DALN) net income for Q4 2024?

How much did DALN's digital subscription revenue grow in 2024?

What was the value of DALN's printing facility sale?

How did DALN's total revenue change in 2024 compared to 2023?

What is DALN's current cash position and debt status as of December 2024?

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