DALLAS – A.H. Belo Corp., parent company of The Providence Journal and three other daily newspapers, reported net income of $262,000, or 1 cent per diluted share, compared with a net loss of $6.8 million, or 32 cents per diluted share, during the second quarter of 2011.
Revenue decreased 5 percent to $109.1 million from $114.5 million year-over-year. The company’s EBITDA – earnings before interest, taxes, depreciation and amortization – was $10.5 million during the three months ended June 30, an increase of 61.1 percent year over year. Further calculations created by adding back pension expenses, non-cash impairment expenses and net investment-related losses produced an adjusted EBITDA figure of $11.6 million for the quarter.
“Second-quarter total revenue decreased 5 percent compared to the prior year, an improvement of almost two percentage points in the rate of decline compared to the first quarter,” Robert W. Decherd, chairman, president and CEO said in a statement.
“While we think advertising revenue volatility may continue for the remainder of the year, we expect to achieve our prior full-year adjusted EBITDA target of $37 million to $41 million with prudent expense management,” added Decherd.
Advertising revenue, including print and digital revenue, dropped 8 percent during the quarter, with the largest percentage decrease at The Providence Journal.
Excluding the $900,000 of circulation revenue resulting from the Journal’s transition to a distributer circulation model in 2011, total circulation revenue at A.H. Belo decreased 6 percent to $32.9 million.
Printing and distribution revenue increased 15 percent to $11.2 million during the three months ended June 30. A.H. Belo attributed the increase to new contracts at The Providence Journal and The Press-Enterprise.
As of June 30, A.H. Belo had roughly 2,100 full-time equivalent employees, a drop of approximately 9 percent year over year.
A.H. Belo Corp.,
The Providence Journal,
robert w. decherd