A. H. Belo Corporation (NYSE:AHC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 10:00 am ET


A. H. Belo Corporation (NYSE:AHC) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the second quarter 2020 financial results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions] As a reminder, today's call is being recorded.

I will now turn the call over to Chief Financial Officer, Katy Murray. Please go ahead.

Katy Murray

Thank you, Kevin. Good morning, everyone, and welcome to our second quarter 2020 conference call. I am joined by Robert Decherd, Chairman, President and Chief Executive Officer of A. H. Belo Corporation; and Grant Moise, Publisher and President of the Dallas Morning News, who are available for Q&A. We hope all of you and your families are well and safe.

Yesterday afternoon, we issued a press release announcing A.H. Belo's second quarter 2020 results. We have posted this release on our website under the Investor Relations section. Unless otherwise specified, comparisons used on today's call measure second quarter 2020 performance against second quarter 2019 performance.

Our discussion today will include forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law. Additional information about these factors is detailed in the Company's press releases and publicly available filings with the SEC.

Today's discussion will include non-GAAP financial measures. We believe that non-GAAP financial measures provide useful supplemental information to assist investors in determining performance comparisons to our peers. A reconciliation of GAAP to non-GAAP financial measures is included with our press release.

As a reminder, we are reporting as a single operating segment and have added details concerning total print and digital revenue, which is generated as part of advertising and marketing services revenue and circulation revenue. We believe this provides visibility into our digital growth strategy.

A.H. Belo reported second quarter 2020 net loss of $3.4 million or $0.16 per share. In the second quarter of 2019, the Company reported net income of $16.5 million or $0.77 per fully diluted share. In the second quarter last year, the Company sold its former headquarters at 508 Young Street, generating a tax-free operating gain of $25.9 million. For tax purposes, the operating gain was offset with net operating losses.

For the second quarter of 2020, total GAAP revenue was $35.4 million, a decrease of $11.7 million or 24.8% when compared to the $47.1 million reported for the second quarter of 2019, approximately $9.7 million of the year-over-year revenue decline relates to advertising and marketing services revenue. In the second quarter of 2020, we recorded digital advertising and marketing services revenue of $6.7 million, a decrease of $2.3 million or 25.9% from the $9 million related -- reported in the second quarter of last year. Approximately $2 million of this decline is attributable to the termination of the Dallas Morning News affiliate relationship with Cars.com