Wed, Apr 30, 9:29 PM (15 days ago)
**DallasNews Corporation (DALN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total net operating revenue decreased by 6.4% to $29,125,000 from $31,102,000 in Q1 2024. Advertising and marketing services revenue declined by 7.2%, circulation revenue by 5.2%, and printing, distribution, and other revenue by 9.2%. - **Profit Margins:** Operating income surged to $34,208,000, a significant improvement from a loss of $1,756,000 in Q1 2024, primarily due to a $36,206,000 gain from the sale of the Plano printing facility. - **Net Income:** Net income was $28,285,000, a substantial recovery from a loss of $1,363,000 in Q1 2024. - **Cash Flow:** Operating activities used $3,538,000 in cash, an increase from $3,208,000 in Q1 2024. Investing activities provided $38,114,000 in cash, mainly from the sale of the Plano facility. **Earnings Changes:** - **Earnings Per Share (EPS):** Basic and diluted EPS were $5.28, compared to a loss of $0.25 in Q1 2024. **Quarterly Performance Discussion:** - **Segment Performance:** TDMN segment profit decreased by $1,485,000 due to revenue declines in print advertising and circulation, partially offset by expense savings. Agency segment profit improved by $641,000 due to strategic expense savings. - **Cost Management:** Employee compensation and benefits decreased by 7.9%, and other production costs decreased by 2.6%. Depreciation expenses fell by 16.1% due to asset disposals. **Trends and Uncertainties:** - **Industry Trends:** The company faces challenges from declining print circulation and advertising revenue, prompting a focus on digital strategies and cost efficiency. - **Future Operations Impact:** The sale of the Plano facility and transition to a smaller, leased facility are expected to yield annual expense savings of approximately $5,000,000. The company plans to use proceeds from the sale to fund pension obligations and potentially return capital to shareholders. **Future Outlook:** - **Capital Allocation:** The company is reviewing its capital allocation strategy to balance returning capital to shareholders and investing in business growth. - **Pension Obligations:** The company settled defined benefit pension obligations through an annuity contract, expecting a one-time non-cash pension settlement charge of $33,000,000 to $37,000,000 in Q2 2025.