Journal's parent company posts wider net loss, lower revenue
2:39 PM Mon, Jul 27, 2009 | Permalink
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A.H. Belo Corp. of Dallas posted a wider net loss amid a sharp drop in revenue for the three months ended June 30. The company, which publishes the Providence Journal and Dallas Morning News, reported a second-quarter net loss of $7.07 million, or 34 cents a share, compared with a net loss of $3.19 million, or 16 cents a share, for the year-earlier period. A.H. Belo's second-quarter advertising revenue plunged by 30 percent, to $87.49 million. That was offset somewhat by a nearly 10 percent increase in circulation revenue, to $33.27 million. A.H. Belo's total net operating revenues dropped by 22 percent, to $127.5 million. For the quarter, the company's overall Internet revenues toppled 21 percent, to $9.8 million. A.H. Belo's Internet revenues accounted for 7.6 percent of the company's total revenues. During the quarter, the company generated $7.8 million in consolidated earnings before interest, taxes, depreciation and amortization -- a measurement of free cash flow, also known as EBITDA. The Providence Journal had the highest cash-flow margins of any of A.H. Belo's properties during the quarter; the Dallas Morning news was second, the company said in a statement. Robert W. Decherd, A.H. Belo's chairman, president and CEO, said in the statement, "We successfully managed costs in the second quarter to remain EBITDA positive and significantly pay down the company's credit facility. A. H. Belo continues to experience success with our strategy of providing high quality newspaper subscribers to our advertisers, resulting in increased circulation revenue in 2009." In a conference call with investors on Monday, Decherd said that expenses were down "significantly" in the second quarter. He also said that, "If revenue declines persist," the company will need to reduce costs further. Borrowings totaled $3.5 million at June 30, down from $12.7 million at March 31. (After the quarter closed, A.H. Belo paid off its borrowings, company officials said in the conference call.) A.H. Belo owns and operates four daily newspapers and a diverse group of Web sites, including projo.com. The company has about 2,500 full-time employees and 280 part-time employees. 
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