DallasNews (US:DALN)2023-04-25 18:22Financial Data and Key Metrics Changes - On a GAAP basis, the company reported a net loss of $2.6 million or $0.49 per share, and an operating loss of $2.8 million, consistent with the net loss of $2.6 million and operating loss of $2.5 million reported in Q1 last year [16] - Total revenue for the quarter was $35.2 million, down from $36.3 million in the same period last year, primarily due to a $1.4 million or 27.8% reduction in preprint revenue [17] - The adjusted operating loss on a non-GAAP basis was $2.2 million, which is $500,000 greater than the adjusted operating loss of $1.6 million reported for the same period last year [4] Business Line Data and Key Metrics Changes - Print circulation revenue declined by $700,000 or 5.6%, but this was offset by a digital-only subscription increase of $700,000 or 21.9% [5] - Digital-only subscribers increased to 69,050, a 10.7% year-over-year improvement, while total subscribers decreased to 145,369 from 149,117 in Q1 last year [18] - The average newsprint consumption price increased to $824 per metric ton, reflecting a 25% year-over-year increase [19] Market Data and Key Metrics Changes - The company is experiencing increasing pressure on its preprint business, with a significant revenue decline noted in this area [8] - Industry intelligence indicates that newspapers nationwide are facing similar downward pressure on preprint volumes [8] Company Strategy and Development Direction - The company is focused on growing and engaging more deeply with digital readers, with digital audiences on dallasnews.com growing over 14% [21] - The company is building its digital and marketing services line to become a more significant growth engine and a larger proportion of the revenue mix [30] Management's Comments on Operating Environment and Future Outlook - Management noted that the trends in advertising are mixed, with some promising signs in the ROP line in print, which grew under 5% in the quarter and 13% over the past two years [38] - There is optimism regarding a potential decline in newsprint prices in the coming months [19] Other Important Information - As of March 31, the company had cash and short-term investments totaling $25.8 million, which increased to $26 million by April 21 [7] - The company recorded a tax expense of $232,000 for the quarter and expects cash taxes to be approximately $650,000 for the year [7] Q&A Session Summary Question: Is the net income of $362,000 interest income from CDs? - Management clarified that no interest income has been recorded yet on the loan, only accrued interest [23] Question: What are the trends in advertising beyond preprints? - Management indicated that there are promising trends, with the ROP line in print continuing to grow and a slight improvement in advertising prices on the website [38][39] Question: How is the company adapting its content to attract more audience? - Management emphasized a focus on covering news through a North Texas lens, which has contributed to recent growth in the digital audience [47]