DallasNews Corporation Announces Second Quarter 2024 Financial Results
DallasNews (Nasdaq: DALN) reported net income of $1.5 million ($0.27 per share) and operating income of $0.6 million for Q2 2024, compared to a net loss of $0.9 million in Q2 2023. The company's total revenue decreased by 11% to $32.1 million, primarily due to exiting its shared mail program and discontinuing print-only niche publications. Despite this, circulation revenue increased by 1.2% to $16.2 million, with digital-only subscription revenue growing by 18.8%. The company achieved expense savings of $5.4 million, resulting in an adjusted operating income of $1.2 million, an improvement from the $0.3 million loss in Q2 2023. DallasNews had $17.1 million in cash and cash equivalents with no debt as of June 30, 2024.
DallasNews (Nasdaq: DALN) ha riportato un utile netto di 1,5 milioni di dollari (0,27 dollari per azione) e un utile operativo di 0,6 milioni di dollari per il secondo trimestre del 2024, rispetto a una perdita netta di 0,9 milioni di dollari nello stesso trimestre del 2023. I ricavi totali dell'azienda sono diminuiti dell'11% a 32,1 milioni di dollari, principalmente a causa dell'uscita dal programma di posta condivisa e della sospensione delle pubblicazioni di nicchia solo in formato cartaceo. Tuttavia, i ricavi da circolazione sono aumentati dell'1,2% a 16,2 milioni di dollari, con un incremento del 18,8% dei ricavi provenienti da abbonamenti digitali. L'azienda ha ottenuto risparmi sui costi di 5,4 milioni di dollari, che hanno portato a un utile operativo rettificato di 1,2 milioni di dollari, un miglioramento rispetto alla perdita di 0,3 milioni di dollari del secondo trimestre del 2023. Al 30 giugno 2024, DallasNews disponeva di 17,1 milioni di dollari in contante e equivalenti in contante senza debiti.
DallasNews (Nasdaq: DALN) reportó un ingreso neto de 1.5 millones de dólares (0.27 dólares por acción) y ingresos operativos de 0.6 millones de dólares para el segundo trimestre de 2024, en comparación con una pérdida neta de 0.9 millones de dólares en el segundo trimestre de 2023. Los ingresos totales de la empresa disminuyeron un 11% a 32.1 millones de dólares, principalmente debido a la salida de su programa de correo compartido y al cese de publicaciones de nicho solo en formato impreso. A pesar de esto, los ingresos por circulación aumentaron un 1.2% a 16.2 millones de dólares, con un crecimiento del 18.8% en los ingresos por suscripciones solo digitales. La empresa logró ahorros en gastos de 5.4 millones de dólares, lo que resultó en un ingreso operativo ajustado de 1.2 millones de dólares, mejorando de la pérdida de 0.3 millones de dólares en el segundo trimestre de 2023. Al 30 de junio de 2024, DallasNews tenía 17.1 millones de dólares en efectivo y equivalentes sin deudas.
달라스뉴스(DallasNews)(Nasdaq: DALN)는 2024년 2분기 동안 150만 달러의 순이익(주당 0.27달러)과 60만 달러의 운영이익을 보고하였습니다. 이는 2023년 2분기의 90만 달러 순손실과 비교되는 수치입니다. 회사의 총 수익은 32.1백만 달러로 11% 감소했습니다, 주로 공동 우편 프로그램 종료 및 인쇄 전용 니치 출판물 중단 때문입니다. 그럼에도 불구하고, 유통 수익은 16.2백만 달러로 1.2% 증가했습니다, 디지털 전용 구독 수익은 18.8% 성장했습니다. 회사는 540만 달러의 비용 절감을 달성했으며, 이로 인해 조정된 운영 소득이 120만 달러에 달해 2023년 2분기의 30만 달러 손실에서 개선되었습니다. 2024년 6월 30일 기준으로 달라스뉴스는 1710만 달러의 현금 및 현금 등가물이 있으며 부채가 없습니다.
DallasNews (Nasdaq : DALN) a annoncé un revenu net de 1,5 million de dollars (0,27 dollar par action) et un revenu opérationnel de 0,6 million de dollars pour le deuxième trimestre 2024, comparé à une perte nette de 0,9 million de dollars au deuxième trimestre 2023. Les revenus totaux de l'entreprise ont diminué de 11% pour atteindre 32,1 millions de dollars, principalement en raison de l'abandon de son programme de courrier partagé et de l'arrêt des publications de niche uniquement imprimées. Malgré cela, les revenus de la circulation ont augmenté de 1,2% pour atteindre 16,2 millions de dollars, avec des revenus d'abonnements uniquement numériques en hausse de 18,8%. L'entreprise a réalisé des économies de dépenses de 5,4 millions de dollars, ce qui a conduit à un revenu opérationnel ajusté de 1,2 million de dollars, une amélioration par rapport à la perte de 0,3 million de dollars au deuxième trimestre 2023. Au 30 juin 2024, DallasNews disposait de 17,1 millions de dollars en liquidités et équivalents sans dettes.
DallasNews (Nasdaq: DALN) berichtete von einem Nettogewinn von 1,5 Millionen Dollar (0,27 Dollar pro Aktie) und einem operativen Gewinn von 600.000 Dollar für das zweite Quartal 2024, im Vergleich zu einem Nettverlust von 900.000 Dollar im zweiten Quartal 2023. Die Gesamtumsätze des Unternehmens gingen um 11% auf 32,1 Millionen Dollar zurück, was hauptsächlich auf den Ausstieg aus seinem gemeinsamen Postprogramm und die Einstellung von rein gedruckten Nischenpublikationen zurückzuführen ist. Dennoch stieg der Umsatz aus Auflagen um 1,2% auf 16,2 Millionen Dollar, und die Einnahmen aus digitalen Abonnements wuchsen um 18,8%. Das Unternehmen erzielte Kosteneinsparungen von 5,4 Millionen Dollar, was zu einem adjustierten operativen Gewinn von 1,2 Millionen Dollar führte, eine Verbesserung gegenüber dem Verlust von 300.000 Dollar im zweiten Quartal 2023. DallasNews hatte zum 30. Juni 2024 17,1 Millionen Dollar in Bar und Barmitteln ohne Schulden.
- Net income improved from a loss of $0.9 million in Q2 2023 to a profit of $1.5 million in Q2 2024
- Adjusted operating income of $1.2 million, up from a $0.3 million loss in Q2 2023
- Digital-only subscription revenue increased by 18.8%
- Expense savings of $5.4 million achieved
- Strong cash position of $17.1 million with no debt
- Total revenue decreased by 11% to $32.1 million
- Advertising and marketing services revenue declined by 21.2%
- Print advertising revenue decreased by $3.9 million
- Print circulation revenue declined by 4.5%
- Headcount decreased by 17.2% compared to the previous year
Insights
DallasNews 's Q2 2024 results show a notable turnaround, with the company swinging to profitability. The net income of
Key financial highlights include:
- Total revenue decreased by
11% to$32.1 million - Advertising and marketing services revenue fell by
21.2% to$12.8 million - Circulation revenue increased slightly by
1.2% to$16.2 million - Operating expenses reduced by
15.4% to$31.5 million
The company's digital transformation is showing promise, with digital-only subscription revenue growing by
While the company has made progress towards its goal of sustainable profitability, investors should note that the revenue decline, particularly in advertising, poses ongoing challenges. The company's cash position of
DallasNews 's Q2 results reflect the ongoing transformation in the media industry. The company's strategic decisions to exit its shared mail program and discontinue print-only niche publications have contributed to the revenue decline but appear to be part of a broader shift towards a more sustainable business model.
The
The company's advertising and marketing services arm, Medium Giant, seems to be holding steady, with "all remaining advertising and marketing services revenue" showing a slight improvement. This diversification into full-service agency offerings could provide a valuable revenue stream as traditional advertising continues to evolve.
The reduction in headcount and other cost-cutting measures have been effective in the short term, but it's important to ensure these cuts don't compromise the quality of content or the company's ability to innovate. The balance between cost management and investment in digital transformation will be key to DallasNews 's long-term success in an increasingly competitive and digital-first media landscape.
DALLAS, July 30, 2024 (GLOBE NEWSWIRE) -- DallasNews Corporation (Nasdaq: DALN) (the “Company”) today reported second quarter 2024 net income of
For the second quarter of 2024, on a non-GAAP basis, DallasNews reported operating income adjusted for certain items (“adjusted operating income (loss)”) of
Grant Moise, Chief Executive Officer, said, “The second quarter showed positive year-over-year financial performance due to disciplined expense management and improved revenue performance from Medium Giant and Circulation at The Dallas Morning News. I am very pleased with the team’s performance, and these improved results continue to move us closer to our goal of becoming a sustainably profitable media and marketing company.”
Second Quarter Results
Total revenue was
Revenue from advertising and marketing services, including print and digital revenues, was
Circulation revenue was
Printing, distribution and other revenue was
Total consolidated operating expense in the second quarter of 2024, on a GAAP basis, was
On a non-GAAP basis, adjusted operating expense was
As of June 30, 2024, the Company had 533 employees, a headcount decrease of 111 or 17.2 percent when compared to the prior year period, resulting from the 2023 Voluntary Severance Program participants and additional first quarter headcount reductions at Medium Giant. Cash and cash equivalents along with short-term investments were
Segment Information
In the second quarter of 2024, based on changes made in the reporting package used by the Company’s Chief Operating Decision Maker (“CODM”) for purposes of allocating resources and assessing performance, the Company determined it has two reportable segments. The two reportable segments are the following:
- TDMN is comprised of the Company’s traditional print business that includes operating The Dallas Morning News and related digital platforms including dallasnews.com.
- Agency is comprised of the Company’s full-service advertising agency, Medium Giant.
In addition to the reportable segments, the Company has a Corporate and Other category that includes expenses not directly attributable to a specific reportable segment.
The CODM, who is the Chief Executive Officer, uses adjusted operating income (loss) for the purposes of evaluating performance and allocating resources. Adjusted operating income (loss) by reportable segment, and corporate and other is included in the exhibits to this release.
Non-GAAP Financial Measures
Reconciliations of operating income (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 income (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 Wednesday, July 31, 2024, 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 1-877-336-4436 and enter the following access code when prompted: 8453121. A replay line will be available at 1-866-207-1041 from 12:00 p.m. CDT on July 31, 2024 until 11:59 p.m. CDT on August 6, 2024. The access code for the replay is 4993908.
About DallasNews Corporation
DallasNews Corporation is the Dallas-based holding company of The Dallas Morning News and Medium Giant. The Dallas Morning News is Texas’ leading daily newspaper with an excellent journalistic reputation, intense regional focus and close community ties. With offices in Dallas and Tulsa, Medium Giant is a full-service advertising agency dedicated to designing, creating and delivering stories that drive customers to act. For additional information, visit dallasnewscorporation.com or email invest@dallasnews.com.
Statements in this communication concerning 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 set forth in forward-looking 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; volatility in the North Texas real estate market; 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 board of directors will approve dividends 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 filing, 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| In thousands, except share and per share amounts (unaudited) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net Operating Revenue: | |||||||||||||||
| Advertising and marketing services | $ | 12,784 | $ | 16,223 | $ | 24,430 | $ | 31,532 | |||||||
| Circulation | 16,181 | 15,996 | 32,481 | 32,007 | |||||||||||
| Printing, distribution and other | 3,096 | 3,793 | 6,252 | 7,675 | |||||||||||
| Total net operating revenue | 32,061 | 36,012 | 63,163 | 71,214 | |||||||||||
| Operating Costs and Expense: | |||||||||||||||
| Employee compensation and benefits | 14,738 | 17,236 | 30,855 | 34,609 | |||||||||||
| Other production, distribution and operating costs | 15,046 | 17,293 | 30,105 | 35,321 | |||||||||||
| Newsprint, ink and other supplies | 1,302 | 2,346 | 2,586 | 4,530 | |||||||||||
| Depreciation | 407 | 357 | 805 | 730 | |||||||||||
| Total operating costs and expense | 31,493 | 37,232 | 64,351 | 75,190 | |||||||||||
| Operating income (loss) | 568 | (1,220 | ) | (1,188 | ) | (3,976 | ) | ||||||||
| Other income, net | 641 | 378 | 1,252 | 740 | |||||||||||
| Income (Loss) Before Income Taxes | 1,209 | (842 | ) | 64 | (3,236 | ) | |||||||||
| Income tax provision (benefit) | (241 | ) | 26 | (23 | ) | 258 | |||||||||
| Net Income (Loss) | $ | 1,450 | $ | (868 | ) | $ | 87 | $ | (3,494 | ) | |||||
| Per Share Basis (1) | |||||||||||||||
| Net income (loss) | |||||||||||||||
| Basic | $ | 0.27 | $ | (0.16 | ) | $ | 0.02 | $ | (0.65 | ) | |||||
| Diluted | $ | 0.27 | $ | (0.16 | ) | $ | 0.02 | $ | (0.65 | ) | |||||
| 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 June 30, 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
| June 30, | December 31, | ||||||
| In thousands (unaudited) | 2024 | 2023 | |||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 16,601 | $ | 11,697 | |||
| Short-term investments | 500 | 10,781 | |||||
| Accounts receivable, net | 9,120 | 9,923 | |||||
| Other current assets | 5,062 | 4,532 | |||||
| Total current assets | 31,283 | 36,933 | |||||
| Property, plant and equipment, net | 9,280 | 7,099 | |||||
| Operating lease right-of-use assets | 18,690 | 16,141 | |||||
| Deferred income taxes, net | 273 | 271 | |||||
| Other assets | 1,779 | 1,790 | |||||
| Total assets | $ | 61,305 | $ | 62,234 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 5,111 | $ | 3,963 | |||
| Accrued compensation and other current liabilities | 6,926 | 10,449 | |||||
| Contract liabilities | 9,969 | 9,511 | |||||
| Total current liabilities | 22,006 | 23,923 | |||||
| Long-term pension liabilities | 16,180 | 17,353 | |||||
| Long-term operating lease liabilities | 18,848 | 16,924 | |||||
| Other liabilities | 1,022 | 1,076 | |||||
| Total liabilities | 58,056 | 59,276 | |||||
| Contingent liabilities | |||||||
| Total shareholders' equity | 3,249 | 2,958 | |||||
| Total liabilities and shareholders’ equity | $ | 61,305 | $ | 62,234 | |||
DallasNews Corporation and Subsidiaries
Revenue by Reportable Segment
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| In thousands (unaudited) | 2024 | 2023 (Recast) | 2024 | 2023 (Recast) | |||||||||||
| TDMN | |||||||||||||||
| Print advertising (1) | $ | 6,558 | $ | 10,294 | $ | 12,197 | $ | 19,590 | |||||||
| Digital advertising (2) | 2,274 | 2,255 | 4,232 | 4,332 | |||||||||||
| Agency | |||||||||||||||
| Marketing and media services (2) | 3,952 | 3,674 | 8,001 | 7,610 | |||||||||||
| Advertising and Marketing Services | $ | 12,784 | $ | 16,223 | $ | 24,430 | $ | 31,532 | |||||||
| TDMN | |||||||||||||||
| Print circulation | 11,603 | 12,144 | 23,359 | 24,525 | |||||||||||
| Digital circulation | 4,578 | 3,852 | 9,122 | 7,482 | |||||||||||
| Circulation | $ | 16,181 | $ | 15,996 | $ | 32,481 | $ | 32,007 | |||||||
| TDMN | 3,096 | 3,634 | 6,252 | 7,357 | |||||||||||
| Agency | — | 159 | — | 318 | |||||||||||
| Printing, Distribution and Other | $ | 3,096 | $ | 3,793 | $ | 6,252 | $ | 7,675 | |||||||
| Total Net Operating Revenue | $ | 32,061 | $ | 36,012 | $ | 63,163 | $ | 71,214 | |||||||
(1) Includes
(2) Prior to the segment reporting change, digital advertising, and marketing and media services revenues were reported in aggregate.
DallasNews Corporation - Non-GAAP Financial Measures
Reconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| In thousands (unaudited) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total net operating revenue | $ | 32,061 | $ | 36,012 | $ | 63,163 | $ | 71,214 | |||||||
| Total operating costs and expense | 31,493 | 37,232 | 64,351 | 75,190 | |||||||||||
| Operating Income (Loss) | $ | 568 | $ | (1,220 | ) | $ | (1,188 | ) | $ | (3,976 | ) | ||||
| Total operating costs and expense | $ | 31,493 | $ | 37,232 | $ | 64,351 | $ | 75,190 | |||||||
| Less: | |||||||||||||||
| Depreciation | 407 | 357 | 805 | 730 | |||||||||||
| Severance expense | 198 | 608 | 776 | 825 | |||||||||||
| Adjusted Operating Expense | $ | 30,888 | $ | 36,267 | $ | 62,770 | $ | 73,635 | |||||||
| Total net operating revenue | $ | 32,061 | $ | 36,012 | $ | 63,163 | $ | 71,214 | |||||||
| Adjusted operating expense | 30,888 | 36,267 | 62,770 | 73,635 | |||||||||||
| Adjusted Operating Income (Loss) | $ | 1,173 | $ | (255 | ) | $ | 393 | $ | (2,421 | ) | |||||
DallasNews Corporation - Non-GAAP Financial Measures
Adjusted Operating Income (Loss) by Reportable Segment, and Corporate and Other
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| In thousands (unaudited) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| TDMN | |||||||||||||||
| Total net operating revenue | $ | 28,109 | $ | 32,179 | $ | 55,162 | $ | 63,286 | |||||||
| Adjusted operating expense | 21,794 | 27,151 | 43,597 | 55,097 | |||||||||||
| Adjusted Operating Income (Loss) | $ | 6,315 | $ | 5,028 | $ | 11,565 | $ | 8,189 | |||||||
| Agency | |||||||||||||||
| Total net operating revenue | $ | 3,952 | $ | 3,833 | $ | 8,001 | $ | 7,928 | |||||||
| Adjusted operating expense | 3,921 | 4,338 | 8,372 | 8,872 | |||||||||||
| Adjusted Operating Income (Loss) | $ | 31 | $ | (505 | ) | $ | (371 | ) | $ | (944 | ) | ||||
| Corporate and Other | |||||||||||||||
| Total net operating revenue | $ | — | $ | — | $ | — | $ | — | |||||||
| Adjusted operating expense | 5,173 | 4,778 | 10,801 | 9,666 | |||||||||||
| Adjusted Operating Income (Loss) | $ | (5,173 | ) | $ | (4,778 | ) | $ | (10,801 | ) | $ | (9,666 | ) | |||
| Total Adjusted Operating Income (Loss) | $ | 1,173 | $ | (255 | ) | $ | 393 | $ | (2,421 | ) | |||||
| Excluded expenses: | |||||||||||||||
| Depreciation | 407 | 357 | 805 | 730 | |||||||||||
| Severance expense | 198 | 608 | 776 | 825 | |||||||||||
| Operating Income (Loss) | $ | 568 | $ | (1,220 | ) | $ | (1,188 | ) | $ | (3,976 | ) | ||||
| Other income, net | 641 | 378 | 1,252 | 740 | |||||||||||
| Income (Loss) Before Income Taxes | $ | 1,209 | $ | (842 | ) | $ | 64 | $ | (3,236 | ) | |||||
FAQ
What was DallasNews 's (DALN) net income for Q2 2024?
How did DALN's revenue change in Q2 2024 compared to Q2 2023?
What was the growth rate of DALN's digital-only subscription revenue in Q2 2024?
How much did DallasNews (DALN) save in expenses during Q2 2024?
What was DALN's cash position as of June 30, 2024?
