DallasNews (US:DALN)2024-03-07 17:03Financial Data and Key Metrics Changes - On a non-GAAP basis for Q4 2023, the company reported adjusted operating income of $600,000, an improvement of $1.6 million compared to an adjusted operating loss of $1 million for the same period last year, primarily due to expense savings of $6.7 million [8] - For the full year 2023, the company reported an adjusted operating loss of $2.7 million, an improvement of $2.6 million compared to an adjusted operating loss of $5.3 million in 2022, driven by expense savings of $13.5 million [10][28] - The company reported a net loss of $2.2 million or $0.41 per share for Q4 2023, compared to a net loss of $2.1 million in Q4 2022 [25] Business Line Data and Key Metrics Changes - Core print advertising revenue declined by 5.1% year-over-year, while circulation revenue increased by $500,000, aided by single-copy sales related to the Texas Rangers' World Series win [9] - Digital-only subscription revenue increased by $1.2 million or 34.1%, partially offset by a print circulation decline of $600,000 or 4.8% [9] - Digital advertising and marketing services revenue declined by $900,000 or 3.5%, primarily due to a decrease in marketing services revenue [11] Market Data and Key Metrics Changes - As of December 31, 2023, the company had 63,000 digital-only subscribers, a decrease of 5,010 or 7.4% compared to the previous year [30] - Total subscribers, including home delivery and digital, were 132,694 as of December 31, down from 146,583 a year earlier [30] - Newsprint inventory cost per metric ton decreased to $687 from $829 in 2022, a reduction of 17.1% [32] Company Strategy and Development Direction - The company is focused on enhancing its digital product offerings and building new digital products to reach new audiences, with the recent addition of a Chief Product and Innovation Officer [35] - The decision to exit the shared mail business was made to align with advertiser preferences, reflecting a disciplined approach to managing the decline of the print business [18] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the progress made in improving adjusted operating income and highlighted the importance of exceptional journalism and digital subscription revenue growth [16] - The company remains optimistic about its balance sheet and is encouraged by early signs in 2024 [14] Other Important Information - The company recorded $464,000 of tax expense for the year and expects cash taxes to be approximately $580,000 in 2024 [33] - As of December 31, 2023, the company had $54.2 million in federal net operating loss carryforwards [33] Q&A Session Summary - The Q&A session concluded without specific questions being documented in the provided content [36]