DallasNews (US:DALN)2022-04-25 17:05Financial Data and Key Metrics Changes - The company reported a net loss of $2.6 million or $0.49 per share for Q1 2022, compared to a net loss of $2.8 million in Q1 2021, indicating a slight improvement [6] - Total net revenue for the quarter was $36.3 million, down from $36.8 million in the same period last year, primarily due to a $600,000 reduction in print advertising revenue [7] - On a non-GAAP basis, the adjusted operating loss improved by $700,000 or 30.6% to $1.6 million compared to $2.4 million in Q1 2021 [6] Business Line Data and Key Metrics Changes - Digital advertising and marketing services revenue increased by $100,000, partially offsetting the decline in print advertising revenue [7] - Circulation revenue increased by $100,000 year-over-year, driven by an increase in total members and effective pricing strategies [8] - Digital-only subscribers reached 62,356, representing a 22.6% year-over-year increase [10] Market Data and Key Metrics Changes - The company experienced supply chain issues affecting certain advertisers, particularly in key categories [8] - Membership revenue continued to grow in the mid-40% range year-over-year, contributing to stable subscription revenue [13] Company Strategy and Development Direction - The company aims to become a sustainably profitable digital news and information company, supported by a strong balance sheet [11] - There is a focus on enhancing diversity, equity, and inclusion (DEI) within the workforce, which is seen as a business advantage [22][23] - The company is actively monitoring commodity prices, particularly newsprint, and is working to mitigate financial impacts from price increases [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positive circulation results and the potential for continued growth [16] - The company is prepared for market volatility and inflation, with contingency plans in place [18] - There is a commitment to investing in resources and technology to support accurate news delivery [17] Other Important Information - Cash on the balance sheet was reported at $31 million as of March 31, 2022 [10] - The company anticipates receiving $22.7 million in interest and principal payments from Charter Holdings on June 30 [11] Q&A Session Summary Question: Can you explain DEI or CEI? - DEI stands for diversity, equity, and inclusion, which the company is focusing on to expand its workforce and create business advantages [22] Question: Can you discuss business trends, particularly in marketing? - The marketing side is seeing positive trends, with increased RFPs and new business wins, particularly in tourism and financial services [25] Question: Why hasn't the company started a share repurchase program? - The company has discussed various capital distribution choices and will address the share repurchase question at its September board meeting [31]