DallasNews (DALN) - 2024 Q3 - Quarterly Report

Revenue Performance - Total net operating revenue for Q3 2024 was $31,140, a decrease of 9.7$34,499 in Q3 2023[90] - Advertising and marketing services revenue decreased by 18.5% to $11,977 in Q3 2024, compared to$14,699 in Q3 2023[91] - Circulation revenue remained relatively stable, with a slight decrease of 0.8% to $16,062 in Q3 2024, compared to$16,194 in Q3 2023[91] - Digital advertising revenue accounted for 38.4% of total revenue in Q3 2024, down from 42.6% in Q3 2023[92] - Circulation revenue represented 51.6% of total revenue in Q3 2024, up from 46.9% in Q3 2023[96] - Total net operating revenue for the three months ended September 30, 2024, was $26,723, a decrease from$30,883 in the same period of 2023, representing a decline of 13.9%[127] Operating Loss and Expenses - The operating loss for Q3 2024 was $4,118, representing a significant increase of 155.1$1,614 in Q3 2023[91] - Employee compensation and benefits increased by 9.0% to $18,048 in Q3 2024, compared to$16,565 in Q3 2023[91] - Total operating costs and expenses decreased by 2.4% to $35,258 million for the three months ended September 30, 2024, compared to$36,113 million in 2023[121] - Employee compensation and benefits decreased by 8.2% to $10,379 million for the three months ended September 30, 2024, compared to$11,301 million in 2023[121] Severance and Transition Costs - The company recorded severance expenses of $2,982 related to the transition to a smaller printing facility[88] - The company accrued severance of$2,790 for the printing facility transition, which is included in other accrued expenses as of September 30, 2024[134] - The company recorded a severance expense of $2,982 million in the third quarter of 2024, primarily related to the transition to a smaller printing facility[122] - Total company employee headcount decreased by 12.2$5,404 million for the three months ended September 30, 2024, compared to $9,082 million in 2023[110] - Digital advertising revenue increased by 2.3$2,156 million for the three months ended September 30, 2024, compared to $2,108 million in 2023[110] - Print circulation revenue decreased by 4.2$11,460 million for the three months ended September 30, 2024, compared to $11,964 million in 2023[115] - Digital circulation revenue increased by 8.8$4,602 million for the three months ended September 30, 2024, compared to $4,230 million in 2023[115] Future Plans and Investments - The company plans to transition its printing operations to a smaller facility, expecting annual expense savings of approximately$5,000[87] - The Company expects to make capital investments of approximately $8,000 in a more efficient press and related equipment as part of streamlining its printing operations[133] - The company is actively marketing its Plano facility for sale, which includes land, building, and production assets[88] Tax and Other Income - Other income, net increased by 56.7$536 million for the three months ended September 30, 2024, compared to $342 million in the same period of 2023[104] - The income tax provision was$345 million for the three months ended September 30, 2024, up 148.2% from $139 million in 2023[106] Cash Flow - Net cash used for operating activities increased to$2,317 for the nine months ended September 30, 2024, compared to $114 in the prior year, primarily due to severance payments[136] - Net cash provided by investing activities was$5,464 for the nine months ended September 30, 2024, compared to $(11,359) in the same period of 2023[137] Dividend Suspension - The Company has suspended the declaration and payment of dividends until further notice due to required capital investments for the transition of print operations[135]