Projo Biz Blog

A.H. Belo Corp., owner of The Dallas Morning News and The Providence Journal, reported on Monday a first quarter net loss of $103.1 million, or $5.03 a share, compared with a net loss of $8.7 million or 43 cents a share in the year-ago period.

Excluding special, one-time charges, the first quarter net loss was $18.1 million, or 91 cents per share.

The results include $80.9 million, or $3.93 a share in a non-cash, goodwill impairment charge at The Providence Journal determined through an update of the annual testing of goodwill and other intangible assets. Goodwill is the value of the company's intangible assets representing the difference between the purchase price of an asset and its fair market value. Over a period of time, and changing market conditions, goodwill is adjusted through standard accounting practices. An impairment occurs when the value is adjusted downward.

The results also include a charge of $4 million or 19 cents a share, related to a workforce reduction and related costs announced in January. The workforce cutbacks are part of the company's ongoing expense reduction plans. The reductions affected about 500 employees and will save approximately $27 million in salaries and benefits annually.

Excluding the charge for the reduction-in-force and related costs, newspaper Earnings Before Income Taxes Depreciation and Amortization, a measurement of free cash flow also called EBITDA, was $1.3 million and the margin was 1.0 percent. EBITDA margins in the first quarter were highest at The Providence Journal, followed by The Dallas Morning News.

Dallas-based A.H. Belo (AHC:NYSE) also reported first quarter revenues of $128.5 million, down 19.8 percent, from the first quarter of 2008.

 Tags  A.H. Belo The Dallas Morning News The Providence Journal

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