Financial Data and Key Metrics Changes - For Q4 2022, DallasNews Corporation reported a net loss of $2.1 million or $0.40 per share, compared to a net income of $2.1 million in Q4 2021 [8][12] - The total revenue for Q4 2022 was $39.1 million, down from $40.6 million in Q4 2021, primarily due to an 8.1% reduction in print advertising revenue [9][10] - For the full year 2022, the company reported a net loss of $9.8 million or $1.83 per share, compared to a net loss of $0.5 million in 2021 [12] - Total revenue for the year was $150.7 million, down from $154.4 million in 2021, with a decline in print advertising revenue of 5.6% [14] Business Line Data and Key Metrics Changes - Print advertising revenue decreased by $2.7 million or 5.6% for the year, while digital advertising and marketing services revenue fell by $900,000 or 3.6% [14] - Circulation revenue increased by $200,000 year-over-year, driven by a focus on growing digital subscriptions, with digital-only subscribers reaching 68,010, a 14.4% increase [15] - Other revenue decreased by $400,000 or 2.3%, primarily due to reductions in revenue from mailed advertisements and commercial printing [16] Market Data and Key Metrics Changes - The average newsprint consumption price increased by 27% year-over-year, reaching $728 per metric ton compared to $572 in 2021 [18] - The company noted that automotive advertising has significantly declined, while financial services advertising has shown strong growth [40][41] Company Strategy and Development Direction - The company is focused on becoming a sustainably profitable digital media and marketing services company, with a strong emphasis on digital membership revenue growth [21][22] - Investments are being made in digital and analytics talent, digital platforms, and new digital-first positions in the newsroom [26] - The company is strategically exiting low-margin sales in digital advertising to focus on higher-margin marketing services [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilizing print membership and advertising revenue despite challenges from inflation and rising newsprint costs [34][38] - The company is currently experiencing a rebound in revenue trends, particularly in the first quarter of 2023 [42][43] - Management acknowledged the external economic pressures but remains focused on returning to growth [45][49] Other Important Information - As of December 31, the company had $27.8 million in cash, with an expectation of cash taxes around $650,000 in 2023 [18][19] - The company is in a nationwide search for a new president of Medium Giant, which focuses on digital marketing services [25] Q&A Session Summary Question: Insights into advertising sector trends - Management noted stabilization in grocery advertising due to competition from HEB, while automotive advertising remains weak [39] Question: Trends in newsprint costs and advertising - Management indicated that newsprint costs have risen significantly, but they are optimistic about not seeing further increases this year [30][31] Question: Challenges in the current phase of the RTG plan - Management highlighted external economic factors and the need for consistent digital growth as key challenges [44][46]
DallasNews (DALN) - 2022 Q4 - Earnings Call Transcript