DallasNews Corporation Announces Third Quarter 2024 Financial Results
DallasNews (DALN) reported a Q3 2024 net loss of $3.9 million, or $(0.73) per share, compared to a net loss of $1.4 million in Q3 2023. Total revenue decreased 9.7% to $31.1 million. The quarter included $3.0 million in severance expenses due to planned headcount reductions. Advertising and marketing services revenue fell 18.5% to $12.0 million, while circulation revenue slightly decreased by 0.8% to $16.1 million. Digital-only subscription revenue grew 8.8%, offsetting some print circulation decline. The company ended Q3 with $14.0 million in cash and no debt, while implementing a new volume-centric digital subscription strategy.
DallasNews (DALN) ha riportato una perdita netta di $3,9 milioni nel terzo trimestre del 2024, equivalente a $(0,73) per azione, rispetto a una perdita netta di $1,4 milioni nello stesso trimestre del 2023. I ricavi totali sono diminuiti del 9,7%, raggiungendo $31,1 milioni. Nel trimestre sono stati inclusi $3,0 milioni di spese per indennità di licenziamento a causa di una riduzione pianificata del personale. I ricavi da servizi pubblicitari e di marketing sono diminuiti del 18,5% a $12,0 milioni, mentre i ricavi da circolazione sono leggermente diminuiti dello 0,8% a $16,1 milioni. I ricavi da abbonamenti digitali sono cresciuti dell'8,8%, compensando in parte il calo della circolazione cartacea. L'azienda ha chiuso il terzo trimestre con $14,0 milioni in contante e senza debiti, implementando una nuova strategia di abbonamento digitale incentrata sul volume.
DallasNews (DALN) reportó una pérdida neta de $3.9 millones en el tercer trimestre de 2024, o $(0.73) por acción, comparado con una pérdida neta de $1.4 millones en el tercer trimestre de 2023. Los ingresos totales disminuyeron un 9.7% a $31.1 millones. El trimestre incluyó $3.0 millones en gastos por indemnización debido a reducciones planificadas de personal. Los ingresos por servicios de publicidad y marketing cayeron un 18.5% a $12.0 millones, mientras que los ingresos por circulación disminuyeron ligeramente un 0.8% a $16.1 millones. Los ingresos por suscripciones solo digitales crecieron un 8.8%, compensando parte de la disminución en la circulación impresa. La empresa cerró el tercer trimestre con $14.0 millones en efectivo y sin deudas, implementando una nueva estrategia de suscripción digital centrada en el volumen.
달라스뉴스 (DALN)는 2024년 3분기에 390만 달러의 순손실을 보고했으며, 주당 $(0.73)의 손실로, 2023년 3분기에는 140만 달러의 순손실에 비해 증가한 수치입니다. 총 수익은 9.7% 감소해 3110만 달러에 달했습니다. 이번 분기에는 계획된 인원 감축으로 인한 300만 달러의 퇴직금 지출이 포함되었습니다. 광고 및 마케팅 서비스 수익은 18.5% 감소하여 1200만 달러였고, 유통 수익은 0.8% 소폭 감소해 1610만 달러에 달했습니다. 디지털 전용 구독 수익은 8.8% 증가하여 인쇄 유통 감소를 어느 정도 상쇄했습니다. 회사는 3분기 종료 시 1400만 달러의 현금을 보유하고 있으며, 부채는 없는 상태로, 새로운 볼륨 중심의 디지털 구독 전략을 시행하고 있습니다.
DallasNews (DALN) a rapporté une perte nette de 3,9 millions de dollars au troisième trimestre 2024, soit $(0,73) par action, comparativement à une perte nette de 1,4 million de dollars au troisième trimestre 2023. Le revenu total a diminué de 9,7 % pour atteindre 31,1 millions de dollars. Le trimestre a inclus 3,0 millions de dollars de dépenses de licenciement en raison de réductions d'effectifs planifiées. Les revenus des services de publicité et de marketing ont baissé de 18,5 % pour atteindre 12,0 millions de dollars, tandis que les revenus de la diffusion ont légèrement diminué de 0,8 % pour atteindre 16,1 millions de dollars. Les revenus d'abonnements uniquement numériques ont augmenté de 8,8 %, compensant une partie de la baisse de la diffusion imprimée. L'entreprise a terminé le troisième trimestre avec 14,0 millions de dollars en liquidités et sans dettes, tout en mettant en œuvre une nouvelle stratégie d'abonnement numérique axée sur le volume.
DallasNews (DALN) meldete einen Nettoverlust von 3,9 Millionen Dollar im dritten Quartal 2024, was $(0,73) pro Aktie entspricht, im Vergleich zu einem Nettoverlust von 1,4 Millionen Dollar im dritten Quartal 2023. Der Gesamtumsatz verringerte sich um 9,7% auf 31,1 Millionen Dollar. Im Quartal wurden 3,0 Millionen Dollar an Abfindungskosten aufgrund geplanter Personalabbauten verzeichnet. Die Einnahmen aus Werbe- und Marketingdiensten sanken um 18,5% auf 12,0 Millionen Dollar, während die Einnahmen aus dem Vertrieb leicht um 0,8% auf 16,1 Millionen Dollar zurückgingen. Die Einnahmen aus digitalen Abonnements allein stiegen um 8,8% und machten einen Teil des Rückgangs im Printvertrieb wett. Das Unternehmen schloss das dritte Quartal mit 14,0 Millionen Dollar Bargeld und ohne Schulden ab und führte eine neue volumenorientierte digitale Abonnementstrategie ein.
- Digital-only subscription revenue increased 8.8%
- Adjusted operating loss improved by 18.5% to $0.7 million
- Expense savings of $3.5 million achieved
- Company maintains strong balance sheet with $14.0 million cash and no debt
- Net loss widened to $3.9 million from $1.4 million year-over-year
- Total revenue declined 9.7% to $31.1 million
- Advertising and marketing services revenue decreased 18.5%
- Print circulation revenue declined 4.2%
- $3.0 million in severance expenses due to headcount reductions
Insights
DallasNews 's Q3 2024 results reveal concerning financial trends. The
The company's strategic shifts show mixed results. While the new volume-centric digital subscription strategy ended a 14-month decline in subscribers, the
With
DALLAS, Nov. 12, 2024 (GLOBE NEWSWIRE) -- DallasNews Corporation (Nasdaq: DALN) (the “Company”) today reported a third quarter 2024 net loss of
For the third quarter of 2024, on a non-GAAP basis, DallasNews reported operating loss adjusted for certain items (“adjusted operating loss”) of
Grant Moise, Chief Executive Officer, said, “The third quarter
“I noted in our last investor call that we were reviewing our strategy to optimize subscription volume and pricing. In the third quarter, we modified our digital subscription strategy to a volume-centric strategy. This change successfully ended our 14-month volume decline, with the growth exceeding our expectations since we implemented the new pricing. This strategic change will take time to be reflected in revenue growth, but we are pleased with how consumers are responding to the new pricing in its early stages.”
Third 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 third quarter of 2024, on a GAAP basis, was
On a non-GAAP basis, adjusted operating expense was
As of September 30, 2024, the Company had 534 employees, a headcount decrease of 74 or 12.2 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 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 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.
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 for the Corporate and Other category is included in the exhibits to this release.
Non-GAAP Financial Measures
Reconciliations of operating loss to adjusted operating loss, and total operating costs and expense to adjusted operating expense are included in the exhibits to this release.
The Company calculates adjusted operating loss by adjusting operating loss to exclude depreciation, severance expense, (gain) loss on sale/disposal of assets, and asset impairments (“adjusted operating 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 Thursday, November 14, 2024, at 9:00 a.m. CST 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 1-844-291-6362 and enter the following access code when prompted: 4239907. A replay line will be available at 1-866-207-1041 from 12:00 p.m. CST on November 14, 2024 until 11:59 p.m. CST on November 20, 2024. The access code for the replay is 5933346.
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 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| In thousands, except share and per share amounts (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net Operating Revenue: | ||||||||||||||||
| Advertising and marketing services | $ | 11,977 | $ | 14,699 | $ | 36,407 | $ | 46,231 | ||||||||
| Circulation | 16,062 | 16,194 | 48,543 | 48,201 | ||||||||||||
| Printing, distribution and other | 3,101 | 3,606 | 9,353 | 11,281 | ||||||||||||
| Total net operating revenue | 31,140 | 34,499 | 94,303 | 105,713 | ||||||||||||
| Operating Costs and Expense: | ||||||||||||||||
| Employee compensation and benefits | 18,048 | 16,565 | 48,903 | 51,174 | ||||||||||||
| Other production, distribution and operating costs | 15,498 | 16,778 | 45,603 | 52,099 | ||||||||||||
| Newsprint, ink and other supplies | 1,301 | 2,382 | 3,887 | 6,912 | ||||||||||||
| Depreciation | 411 | 388 | 1,216 | 1,118 | ||||||||||||
| Total operating costs and expense | 35,258 | 36,113 | 99,609 | 111,303 | ||||||||||||
| Operating loss | (4,118 | ) | (1,614 | ) | (5,306 | ) | (5,590 | ) | ||||||||
| Other income, net | 536 | 342 | 1,788 | 1,082 | ||||||||||||
| Loss Before Income Taxes | (3,582 | ) | (1,272 | ) | (3,518 | ) | (4,508 | ) | ||||||||
| Income tax provision | 345 | 139 | 322 | 397 | ||||||||||||
| Net Loss | $ | (3,927 | ) | $ | (1,411 | ) | $ | (3,840 | ) | $ | (4,905 | ) | ||||
| Per Share Basis (1) | ||||||||||||||||
| Net loss | ||||||||||||||||
| Basic | $ | (0.73 | ) | $ | (0.26 | ) | $ | (0.72 | ) | $ | (0.92 | ) | ||||
| Diluted | $ | (0.73 | ) | $ | (0.26 | ) | $ | (0.72 | ) | $ | (0.92 | ) | ||||
| 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 September 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
| September 30, | December 31, | |||||||
| In thousands (unaudited) | 2024 | 2023 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 13,988 | $ | 11,697 | ||||
| Short-term investments | — | 10,781 | ||||||
| Accounts receivable, net | 11,236 | 9,923 | ||||||
| Other current assets | 4,702 | 4,532 | ||||||
| Total current assets | 29,926 | 36,933 | ||||||
| Property, plant and equipment, net | 11,504 | 7,099 | ||||||
| Operating lease right-of-use assets | 18,034 | 16,141 | ||||||
| Deferred income taxes, net | 253 | 271 | ||||||
| Other assets | 1,885 | 1,790 | ||||||
| Total assets | $ | 61,602 | $ | 62,234 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,018 | $ | 3,963 | ||||
| Accrued compensation and other current liabilities | 13,068 | 10,449 | ||||||
| Contract liabilities | 9,396 | 9,511 | ||||||
| Total current liabilities | 27,482 | 23,923 | ||||||
| Long-term pension liabilities | 15,593 | 17,353 | ||||||
| Long-term operating lease liabilities | 18,124 | 16,924 | ||||||
| Other liabilities | 979 | 1,076 | ||||||
| Total liabilities | 62,178 | 59,276 | ||||||
| Contingent liabilities | ||||||||
| Total shareholders' equity | (576 | ) | 2,958 | |||||
| Total liabilities and shareholders’ equity | $ | 61,602 | $ | 62,234 | ||||
DallasNews Corporation and Subsidiaries
Revenue by Reportable Segment
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| In thousands (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| TDMN | ||||||||||||||||
| Print advertising (1) | $ | 5,404 | $ | 9,082 | $ | 17,601 | $ | 28,672 | ||||||||
| Digital advertising (2) | 2,156 | 2,108 | 6,388 | 6,440 | ||||||||||||
| Agency | ||||||||||||||||
| Marketing and media services (2) | 4,417 | 3,509 | 12,418 | 11,119 | ||||||||||||
| Advertising and Marketing Services | $ | 11,977 | $ | 14,699 | $ | 36,407 | $ | 46,231 | ||||||||
| TDMN | ||||||||||||||||
| Print circulation | 11,460 | 11,964 | 34,819 | 36,489 | ||||||||||||
| Digital circulation | 4,602 | 4,230 | 13,724 | 11,712 | ||||||||||||
| Circulation | $ | 16,062 | $ | 16,194 | $ | 48,543 | $ | 48,201 | ||||||||
| TDMN | 3,101 | 3,499 | 9,353 | 10,856 | ||||||||||||
| Agency | — | 107 | — | 425 | ||||||||||||
| Printing, Distribution and Other | $ | 3,101 | $ | 3,606 | $ | 9,353 | $ | 11,281 | ||||||||
| Total Revenue | $ | 31,140 | $ | 34,499 | $ | 94,303 | $ | 105,713 | ||||||||
(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 Loss to Adjusted Operating Loss
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| In thousands (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total net operating revenue | $ | 31,140 | $ | 34,499 | $ | 94,303 | $ | 105,713 | ||||||||
| Total operating costs and expense | 35,258 | 36,113 | 99,609 | 111,303 | ||||||||||||
| Operating Loss | $ | (4,118 | ) | $ | (1,614 | ) | $ | (5,306 | ) | $ | (5,590 | ) | ||||
| Total operating costs and expense | $ | 35,258 | $ | 36,113 | $ | 99,609 | $ | 111,303 | ||||||||
| Less: | ||||||||||||||||
| Depreciation | 411 | 388 | 1,216 | 1,118 | ||||||||||||
| Severance expense | 2,982 | 336 | 3,758 | 1,161 | ||||||||||||
| Adjusted Operating Expense | $ | 31,865 | $ | 35,389 | $ | 94,635 | $ | 109,024 | ||||||||
| Total net operating revenue | $ | 31,140 | $ | 34,499 | $ | 94,303 | $ | 105,713 | ||||||||
| Adjusted operating expense | 31,865 | 35,389 | 94,635 | 109,024 | ||||||||||||
| Adjusted Operating Loss | $ | (725 | ) | $ | (890 | ) | $ | (332 | ) | $ | (3,311 | ) | ||||
DallasNews Corporation - Non-GAAP Financial Measures
Adjusted Operating Income (Loss) by Reportable Segment, and Corporate and Other
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| In thousands (unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| TDMN | ||||||||||||||||
| Total net operating revenue | $ | 26,723 | $ | 30,883 | $ | 81,885 | $ | 94,169 | ||||||||
| Adjusted operating expense | 21,965 | 25,877 | 65,562 | 80,974 | ||||||||||||
| Adjusted Operating Income | $ | 4,758 | $ | 5,006 | $ | 16,323 | $ | 13,195 | ||||||||
| Agency | ||||||||||||||||
| Total net operating revenue | $ | 4,417 | $ | 3,616 | $ | 12,418 | $ | 11,544 | ||||||||
| Adjusted operating expense | 4,372 | 4,288 | 12,744 | 13,160 | ||||||||||||
| Adjusted Operating Income (Loss) | $ | 45 | $ | (672 | ) | $ | (326 | ) | $ | (1,616 | ) | |||||
| Corporate and Other | ||||||||||||||||
| Total net operating revenue | $ | — | $ | — | $ | — | $ | — | ||||||||
| Adjusted operating expense | 5,528 | 5,224 | 16,329 | 14,890 | ||||||||||||
| Adjusted Operating Loss | $ | (5,528 | ) | $ | (5,224 | ) | $ | (16,329 | ) | $ | (14,890 | ) | ||||
| Total Adjusted Operating Loss | $ | (725 | ) | $ | (890 | ) | $ | (332 | ) | $ | (3,311 | ) | ||||
| Excluded expenses: | ||||||||||||||||
| Depreciation | 411 | 388 | 1,216 | 1,118 | ||||||||||||
| Severance expense | 2,982 | 336 | 3,758 | 1,161 | ||||||||||||
| Operating Loss | $ | (4,118 | ) | $ | (1,614 | ) | $ | (5,306 | ) | $ | (5,590 | ) | ||||
| Other income, net | 536 | 342 | 1,788 | 1,082 | ||||||||||||
| Loss Before Income Taxes | $ | (3,582 | ) | $ | (1,272 | ) | $ | (3,518 | ) | $ | (4,508 | ) | ||||
FAQ
What was DallasNews 's (DALN) net loss in Q3 2024?
How much did DALN's total revenue decline in Q3 2024?
What was DALN's digital subscription revenue growth in Q3 2024?
How much cash did DALN have at the end of Q3 2024?
