Revenue Performance - Total net operating revenue for 2024 was $125,391, a decrease of 10.2% compared to $139,696 in 2023[95]. - Advertising and marketing services revenue decreased by 18.9% to $47,900, accounting for 38.2% of total revenue in 2024[95][96]. - Circulation revenue was $64,891, a slight decline of 0.7%, representing 51.8% of total revenue for 2024[95][100]. - Print advertising revenue decreased by 34.6% to $22,914 million in 2024 from $35,045 million in 2023, while digital advertising revenue remained flat at $8,633 million[115][116]. - Circulation revenue slightly decreased by 0.7% to $64,891 million in 2024, with print circulation down 4.8% and digital circulation up 11.7%[120][121]. - Marketing and media services revenue increased by 6.5% to $16,353 million in 2024, reflecting new customer contracts[118][137]. - Other income increased by 57.0% to $2,233 million in 2024 from $1,422 million in 2023[108]. Cost Management - The company expects annual expense savings of approximately $5,000 from streamlining its print operations to a smaller facility[85]. - Employee compensation and benefits decreased by 8.0% to $63,923 in 2024, reflecting cost management efforts[95]. - Newsprint, ink, and other supplies expenses decreased significantly by 40.2% to $5,256, indicating improved cost efficiency[95]. - Total operating costs and expenses decreased by 10.4% to $132,449 million in 2024 from $147,766 million in 2023, driven by reductions in employee compensation and other operating costs[128]. Operational Changes - The company exited its shared mail program for weekly preprints in Q3 2023, reflecting a strategic shift in response to declining print revenue[86][97]. - The company plans to reduce its headcount by 76 employees, or 14.4%, in 2025, with related severance costs of $2,765[89]. - The total employee headcount decreased by 12.5% to 526 employees, primarily due to the 2023 Voluntary Severance Program[128]. - The Company expects to reduce its headcount by 76 employees, or 14.4%, in 2025 as part of its operational streamlining[163]. Capital Investments - Capital investments of $6,404 were made in 2024 for a more efficient press and related equipment, with an additional $2,000 expected for the new facility[89]. - The Company suspended the declaration and payment of dividends until further notice due to required capital investments for transitioning print operations[164]. - The sale price of the North Plant Property is $43,500, with expected net cash proceeds of $40,651 after closing[161]. - The Company plans to make a voluntary cash contribution to the DallasNews Pension Plans using a portion of the proceeds from the North Plant Property sale[162]. Cash Flow and Financial Position - The Company's cash balances decreased from $11,697 in 2023 to $9,594 in 2024, primarily due to severance payments, dividends, and capital investments[158]. - Net cash used for operating activities increased by $4,307, totaling $5,481 in 2024 compared to $1,174 in 2023, mainly due to severance payments and changes in working capital[166]. - Net cash provided by investing activities was $4,234 in 2024, a significant improvement from $(11,528) in 2023, due to reinvestments in CDs and capital spending[167]. Pension Obligations - The projected benefit obligations of the DallasNews Pension Plans were estimated using a discount rate of 5.3% for 2024 and 4.7% for 2023[152]. Taxation - The income tax benefit recorded in 2024 was $4,956 million, compared to a provision of $464 million in 2023, resulting in effective income tax rates of 102.7% and (7.0%) respectively[110][111]. Segment Performance - TDMN segment profit improved to $20,004 million in 2024 from $18,629 million in 2023, while Agency segment loss decreased to $(249) million from $(1,446) million[134][135]. Newsprint Consumption - Newsprint consumption decreased to approximately 4,850 metric tons in 2024 from 6,658 metric tons in 2023, with average cost per metric ton dropping from $779 to $646[130]. Digital Strategy - The Company continues to focus on a sustainable strategy to balance pricing and digital subscriber growth, with a 5.1% sequential improvement in digital-only subscriptions in Q3 2024[121][136]. Contractual Obligations - The Company had contractual obligations totaling $17,064 for the next five years as of December 31, 2024[171].

Financial Performance - For Q4 2024, DallasNews Corporation reported a net income of $4.0 million, or $0.74 per share, compared to a net loss of $2.2 million, or $(0.41) per share in Q4 2023[2]. - Total revenue for Q4 2024 was $31.1 million, a decrease of $2.9 million or 8.5% compared to Q4 2023[7]. - For the full year 2024, total revenue was $125.4 million, a decrease of $14.3 million or 10.2% compared to 2023[12]. - The company reported a full year net income of $0.1 million, or $0.02 per share, compared to a net loss of $7.1 million, or $(1.33) per share in 2023[4]. - Adjusted operating loss for the full year 2024 was $1.6 million, an improvement of $1.1 million compared to an adjusted operating loss of $2.7 million in 2023[5]. - The operating loss for Q4 2024 was $1,752,000, an improvement from a loss of $2,480,000 in Q4 2023[36]. - Net income for Q4 2024 was $3,971,000, compared to a net loss of $2,207,000 in Q4 2023[32]. - Basic and diluted earnings per share for Q4 2024 were both $0.74, compared to a loss of $0.41 per share in Q4 2023[32]. Revenue Breakdown - Advertising and marketing services revenue in Q4 2024 was $11.5 million, down $1.3 million or 10.3% from $12.8 million in Q4 2023, primarily due to a 16.6% reduction in print advertising revenue[8]. - Total net operating revenue for Q4 2024 was $31,088,000, a decrease of 8.4% from $33,983,000 in Q4 2023[32]. - Advertising and marketing services revenue decreased to $11,493,000 in Q4 2024 from $12,807,000 in Q4 2023, representing a decline of 10.3%[34]. - Circulation revenue also declined slightly to $16,348,000 in Q4 2024 from $17,148,000 in Q4 2023, a decrease of 4.7%[34]. Cost Management - The company achieved expense savings of $6.5 million in distribution and $5.5 million in employee compensation and benefits for the full year 2024[6]. - Total operating costs and expenses for Q4 2024 were $32,840,000, down from $36,463,000 in Q4 2023, a reduction of 9.0%[37]. Balance Sheet - As of December 31, 2024, the company had cash and cash equivalents of $9.6 million and no debt[19]. - Total assets as of December 31, 2024, were $61,843,000, a slight decrease from $62,234,000 in 2023[33]. - Total liabilities decreased to $55,030,000 in 2024 from $59,276,000 in 2023, a reduction of 7.4%[33]. - Total shareholders' equity increased significantly to $6,813,000 in 2024 from $2,958,000 in 2023[33]. Workforce Changes - The company experienced a headcount reduction of 75 employees, or 12.5%, compared to the previous year[19]. Segment Performance - DallasNews Corporation's Medium Giant segment has shown significant improvement in profit margins, contributing positively to the company's overall financial position[2].

Core Insights - The sale of a printing facility for $43.5 million has resolved legacy pension liabilities and improved the financial position and flexibility of the company [1] - The transition to a smaller and more efficient printing and distribution facility is expected to enhance digital investments and journalism quality, moving the company closer to sustainable profitability [2] Financial Performance - For Q4 2024, the company reported a net income of $4.0 million, or $0.74 per share, compared to a net loss of $2.2 million, or $(0.41) per share in Q4 2023 [2][4] - The total revenue for Q4 2024 was $31.1 million, a decrease of $2.9 million or 8.5% from Q4 2023 [7] - The full year 2024 net income was $0.1 million, or $0.02 per share, with an operating loss of $7.1 million, including severance expenses of $2.8 million [4][5] Revenue Breakdown - Advertising and marketing services revenue for Q4 2024 was $11.5 million, down 10.3% from $12.8 million in Q4 2023, primarily due to a 16.6% reduction in print advertising revenue [8] - Circulation revenue for Q4 2024 was $16.3 million, a decrease of 4.7% compared to Q4 2023, largely due to a decline in print circulation revenue [9] - Total revenue for the full year 2024 was $125.4 million, a decrease of 10.2% from 2023 [12] Expense Management - Total consolidated operating expenses for Q4 2024 were $32.8 million, an improvement of 9.9% compared to Q4 2023 [11] - For the full year 2024, total operating expenses were $132.4 million, a decrease of 10.4% from 2023, driven by savings in distribution and employee compensation [16][17] Employee and Cash Position - As of December 31, 2024, the company had 526 employees, a decrease of 75 or 12.5% from the previous year [18] - Cash and cash equivalents stood at $9.6 million, with no debt reported [18] Segment Information - The company operates two reportable segments: TDMN, which generates revenue from subscriptions and advertising, and Agency, which provides full-service advertising [19][20]

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]