DallasNews Corporation Announces First Quarter 2025 Financial Results
DallasNews Corporation reported strong Q1 2025 financial results, posting a net income of $28.3 million ($5.28 per share) and operating income of $34.2 million. The company's performance was significantly boosted by a $36.2 million net gain from the sale of its Plano printing facility.
Key highlights include:
- Net cash position of $40.7 million
- Agency segment profit improved by $0.6 million year-over-year
- Total revenue was $29.1 million, down 6.4% from Q1 2024
- Fully funded pension plans through facility sale proceeds
- Headcount reduced by 13.2% to 461 employees
The company's advertising revenue decreased 7.2% to $10.8 million, while circulation revenue fell 5.2% to $15.4 million. Despite revenue challenges, DallasNews maintains a strong balance sheet with $44.2 million in cash and zero debt, positioning itself for digital growth investments and potential shareholder returns.
DallasNews Corporation ha annunciato solidi risultati finanziari per il primo trimestre del 2025, registrando un utile netto di 28,3 milioni di dollari (5,28 dollari per azione) e un utile operativo di 34,2 milioni di dollari. Le performance dell'azienda sono state significativamente sostenute da una plusvalenza netta di 36,2 milioni di dollari derivante dalla vendita dell'impianto di stampa di Plano.
I punti salienti includono:
- Posizione di cassa netta di 40,7 milioni di dollari
- Incremento di 0,6 milioni di dollari nell'utile del segmento agenzia rispetto all'anno precedente
- Ricavi totali pari a 29,1 milioni di dollari, in calo del 6,4% rispetto al primo trimestre 2024
- Piani pensionistici completamente finanziati grazie ai proventi della vendita dell'impianto
- Riduzione del personale del 13,2%, arrivando a 461 dipendenti
I ricavi pubblicitari sono diminuiti del 7,2%, attestandosi a 10,8 milioni di dollari, mentre i ricavi da circolazione sono scesi del 5,2% a 15,4 milioni di dollari. Nonostante le sfide sui ricavi, DallasNews mantiene un bilancio solido con 44,2 milioni di dollari in cassa e nessun debito, posizionandosi per investimenti nella crescita digitale e possibili ritorni per gli azionisti.
DallasNews Corporation reportó sólidos resultados financieros en el primer trimestre de 2025, con un ingreso neto de 28.3 millones de dólares (5.28 dólares por acción) y un ingreso operativo de 34.2 millones de dólares. El desempeño de la empresa se vio impulsado significativamente por una ganancia neta de 36.2 millones de dólares proveniente de la venta de su planta de impresión en Plano.
Los aspectos clave incluyen:
- Posición neta de efectivo de 40.7 millones de dólares
- Mejora en la ganancia del segmento de agencias en 0.6 millones de dólares interanual
- Ingresos totales de 29.1 millones de dólares, una disminución del 6.4% respecto al primer trimestre de 2024
- Planes de pensiones completamente financiados gracias a los ingresos por la venta de la planta
- Reducción del personal en un 13.2%, quedando en 461 empleados
Los ingresos por publicidad disminuyeron un 7.2%, alcanzando 10.8 millones de dólares, mientras que los ingresos por circulación cayeron un 5.2% a 15.4 millones de dólares. A pesar de los retos en los ingresos, DallasNews mantiene un balance sólido con 44.2 millones de dólares en efectivo y sin deuda, posicionándose para inversiones en crecimiento digital y posibles retornos a los accionistas.
DallasNews Corporation는 2025년 1분기 강력한 재무 실적을 발표하며 순이익 2,830만 달러(주당 5.28달러)와 영업이익 3,420만 달러를 기록했습니다. 회사의 실적은 Plano 인쇄 시설 매각으로 인한 3,620만 달러의 순이익 덕분에 크게 향상되었습니다.
주요 내용은 다음과 같습니다:
- 순현금 포지션 4,070만 달러
- 에이전시 부문 이익이 전년 대비 60만 달러 증가
- 총수익 2,910만 달러로 2024년 1분기 대비 6.4% 감소
- 시설 매각 수익으로 연금 계획 완전 자금 조달
- 직원 수 13.2% 감소하여 461명
광고 수익은 7.2% 감소한 1,080만 달러, 발행 수익은 5.2% 감소한 1,540만 달러를 기록했습니다. 수익 감소에도 불구하고 DallasNews는 4,420만 달러 현금과 무부채 상태로 견고한 재무 상태를 유지하며 디지털 성장 투자 및 주주 환원을 위한 기반을 마련하고 있습니다.
DallasNews Corporation a annoncé de solides résultats financiers pour le premier trimestre 2025, affichant un bénéfice net de 28,3 millions de dollars (5,28 dollars par action) et un résultat d'exploitation de 34,2 millions de dollars. La performance de l'entreprise a été significativement renforcée par un gain net de 36,2 millions de dollars provenant de la vente de son site d'impression de Plano.
Les points clés comprennent :
- Position nette de trésorerie de 40,7 millions de dollars
- Amélioration du bénéfice du segment agence de 0,6 million de dollars en glissement annuel
- Revenu total de 29,1 millions de dollars, en baisse de 6,4 % par rapport au premier trimestre 2024
- Plans de retraite entièrement financés grâce aux produits de la vente du site
- Effectif réduit de 13,2 %, soit 461 employés
Les revenus publicitaires ont diminué de 7,2 % pour atteindre 10,8 millions de dollars, tandis que les revenus de diffusion ont chuté de 5,2 % à 15,4 millions de dollars. Malgré ces défis, DallasNews conserve un bilan solide avec 44,2 millions de dollars en liquidités et aucune dette, se positionnant pour des investissements dans la croissance numérique et de potentiels retours aux actionnaires.
DallasNews Corporation meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 28,3 Millionen US-Dollar (5,28 US-Dollar pro Aktie) und einem Betriebsergebnis von 34,2 Millionen US-Dollar. Die Unternehmensleistung wurde maßgeblich durch einen Nettogewinn von 36,2 Millionen US-Dollar aus dem Verkauf der Druckerei in Plano gestärkt.
Wichtige Highlights sind:
- Netto-Cash-Position von 40,7 Millionen US-Dollar
- Verbesserung des Gewinns im Agentursegment um 0,6 Millionen US-Dollar im Jahresvergleich
- Gesamtumsatz von 29,1 Millionen US-Dollar, ein Rückgang von 6,4 % gegenüber dem ersten Quartal 2024
- Vollständig finanzierte Pensionspläne durch Erlöse aus dem Anlagenverkauf
- Personalabbau um 13,2 % auf 461 Mitarbeiter
Die Werbeeinnahmen sanken um 7,2 % auf 10,8 Millionen US-Dollar, während die Vertriebserlöse um 5,2 % auf 15,4 Millionen US-Dollar zurückgingen. Trotz der Umsatzherausforderungen hält DallasNews eine starke Bilanz mit 44,2 Millionen US-Dollar in bar und keiner Verschuldung und positioniert sich für Investitionen in digitales Wachstum und mögliche Ausschüttungen an Aktionäre.
- Net income of $28.3M ($5.28/share) in Q1 2025 vs loss in Q1 2024
- Operating income of $34.2M including $36.2M gain from Plano facility sale
- Agency segment profit improved by $0.6M year-over-year
- Strong balance sheet with $44.2M cash and zero debt
- Pension liabilities fully funded through annuity purchase agreement
- Employee compensation and benefits expense improved by $1.2M
- Total revenue decreased 6.4% to $29.1M in Q1 2025
- Advertising revenue dropped 7.2% to $10.8M
- Print advertising revenue declined 12.2%
- Circulation revenue fell 5.2% to $15.4M
- Printing and distribution revenue decreased 9.2%
- 13.2% reduction in workforce (70 employees)
Insights
Q1 profit driven by one-time facility sale; core operations still challenging with revenue declining across all segments.
DallasNews Corporation's Q1 2025 shows a dramatic swing to
Revenue continues declining across all segments, with total revenue down
The balance sheet has significantly strengthened, with
Cost-cutting continues, with headcount reduced by
Print revenue continues declining while agency business shows promising growth; strategic pivot focuses on digital transformation.
DallasNews Corporation's Q1 results reflect the continued structural transformation facing traditional newspaper publishers. The
The company's decision to sell its Plano printing facility and transition to smaller operations represents a pragmatic adaptation to declining print volumes. This strategic move has dual benefits: generating immediate capital and reducing ongoing operational costs. The company expects to realize its first full month of expense savings from this transition in May.
The bright spot comes from Medium Giant, the company's agency segment, which improved its operating margin by
With a strengthened balance sheet showing
The completion of the pension liability funding also removes a significant financial obligation, allowing management to focus resources on their strategic priorities of digital growth and potentially returning capital to shareholders.
- Recorded net cash of
$40.7 million and a net gain of$36.2 million from the Plano printing facility sale - Agency segment profit improved
$0.6 million on a year-over-year basis - Pension liabilities are fully funded and to be transitioned to an insurance carrier with an annuity purchase agreement
DALLAS, April 30, 2025 (GLOBE NEWSWIRE) -- DallasNews Corporation (Nasdaq: DALN) (the “Company”), the Dallas-based holding company of The Dallas Morning News and Medium Giant, today reported financial results for the first quarter of 2025.
Grant Moise, Chief Executive Officer, said, “The first four months of this year have been significant in terms of accomplishments made in alignment with our Return to Growth Plan. The sale of the Plano property provided us with the required capital to fully fund the Company’s pension plans. This is a notable event for our Company as it allows us to ensure that former and current employees will receive the retirement benefits they earned, while removing what we viewed as the sole long-term debt of the Company. Also, in connection with the sale of the Plano property, we have completed the transition of our printing operations, and in May, we will realize our first full month of expense savings from this transition. Finally, the Agency grew its operating margin by
For the first quarter of 2025, the Company reported net income of
For the first quarter of 2025, on a non-GAAP basis, DallasNews reported an operating loss adjusted for certain items (“adjusted operating loss”) of
First Quarter Results
Total revenue was
Revenue from advertising and marketing services, including print and digital revenues, was
Circulation revenue was
Printing, distribution and other revenue was
Total consolidated operating expense in the first quarter of 2025, on a GAAP basis, was
On a non-GAAP basis, adjusted operating expense was
In the first quarter of 2025, the Company recorded tax expense of
As of March 31, 2025, the Company had 461 employees, a headcount decrease of 70 or 13.2 percent when compared to the prior year period, primarily the result of transitioning to a smaller, more efficient printing facility. Cash and cash equivalents were
Pension Plans Annuitization
As previously announced, in April the Company used a portion of the proceeds from the Plano printing facility sale to make a voluntary cash contribution to fully fund the Company’s pension liabilities and purchased an irrevocable group annuity contract from an insurance company. The Company’s defined benefit obligations to participants in its pension plans will be covered under the annuity contract. As a result of this transaction, the Company will be relieved of all pension obligations and the insurance company will assume all future financial obligations for the administration and payment of benefits earned by the transferred participants, with no change to the amount, timing or form of monthly benefit payments for those currently receiving monthly benefit payments.
Segment Information
The Company determined it has the following two reportable segments:
- TDMN primarily generates revenue from subscriptions and retail sales of The Dallas Morning News, and sales of advertising within its newspaper and on related digital platforms by Medium Giant’s cross-functional sales team.
- Agency generates revenue from the services offered by the Company’s full-service advertising agency, Medium Giant.
The primary measure of segment profitability utilized by the Chief Operating Decision Maker (“CODM”) is segment profit (loss), which excludes Corporate and Other costs that are not associated with the ongoing operations of the segments. Reconciliation of segment profit (loss) to consolidated operating income (loss), and disaggregated revenue by reportable segment and revenue source are included in the exhibits to this release.
Non-GAAP Financial Measures
The CODM uses adjusted operating income (loss) for the purposes of evaluating consolidated performance and allocating resources.
Reconciliations of operating income (loss) to adjusted operating loss and total operating costs and expense to adjusted operating expense are included in the exhibits to this release.
The Company calculates adjusted operating income (loss) by adjusting operating income (loss) to exclude depreciation, severance expense, (gain) loss on sale/disposal of assets, and asset impairments (“adjusted operating income (loss)”). The Company believes that inclusion of certain noncash expenses and other items in the results makes for more difficult comparisons between years and with peer group companies.
Adjusted operating income (loss) is not a measure of financial performance under generally accepted accounting principles (“GAAP”). Management uses adjusted operating income (loss) and similar measures in internal analyses as supplemental measures of the Company’s financial performance, and for performance comparisons versus its peer group of companies. Management uses this non-GAAP financial measure for the purposes of evaluating consolidated Company performance. The Company therefore believes that the non-GAAP measure presented provides useful information to investors by allowing them to view the Company’s business through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods and providing a focus on the underlying ongoing operating performance of its business. Adjusted operating income (loss) should not be considered in isolation or as a substitute for net income (loss), cash flows provided by (used for) operating activities or other comparable measures prepared in accordance with GAAP. Additionally, this non-GAAP measure may not be comparable to similarly-titled measures of other companies.
Financial Results Conference Call
DallasNews Corporation will conduct a conference call on Thursday, May 1, 2025, at 9:00 a.m. CDT to discuss financial results. The conference call will be available via webcast by accessing the Company’s website at investor.dallasnewscorporation.com/events. An archive of the webcast will be available at dallasnewscorporation.com in the Investor Relations section.
To access the conference call, dial 1-800-715-9871 and provide the following access code when prompted: 9759080. A replay line will be available at 1-800-770-2030 until 11:59 p.m. CDT on May 15, 2025. The access code for the replay is 9759080#.
About DallasNews Corporation
DallasNews Corporation is the Dallas-based holding company of The Dallas Morning News and Medium Giant.
The Dallas Morning News, Texas’ leading daily newspaper, is renowned for its excellent journalistic reputation, intense regional focus, and close community ties. As a testament to its commitment to quality journalism, the publication has been honored with nine Pulitzer Prizes.
Medium Giant, an integrated creative marketing agency with offices in Dallas and Tulsa, works with a roster of premium brands and companies. In 2024, the agency earned top industry recognition, winning an AAF Addy and the AMA DFW Annual Marketer of the Year Award for Campaign of the Year, along with six prestigious Davey Awards. Medium Giant is a wholly owned business of DallasNews Corporation. For additional information, visit mediumgiant.co.
Statements in this communication and in the Company’s conference call to discuss its financial results concerning the Company’s transition of print operations and associated expense savings, the Company’s business outlook or future economic performance, revenues, expenses, cash balance, investments, business initiatives, working capital, and other financial and non-financial items that are not historical facts are “forward-looking statements” as the term is defined under applicable federal securities laws. Words such as “anticipate,” “assume,” “believe,” “can,” “could,” “estimate,” “forecast,” “intend,” “expect,” “may,” “project,” “plan,” “seek,” “should,” “target,” “will,” “would” and their opposites and similar expressions are intended to identify 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. Such risks, trends and uncertainties are, in most instances, beyond the Company’s control, and include changes in advertising demand and other economic conditions; consumers’ tastes; newsprint and distribution prices; program costs; the Company’s ability to successfully execute the Return to Growth Plan; the Company’s ability to maintain compliance with the continued listing requirements of The Nasdaq Capital Market; the success of the Company’s digital strategy; changes in economic policies and tariffs; labor relations; cybersecurity incidents; and technological obsolescence. Among other risks, there can be no guarantee that the Company’s board of directors will approve a quarterly dividend in the future or that the Company’s financial projections are accurate, as well as other risks described in the Company’s Annual Report on Form 10-K and in the Company’s other public disclosures and filings with the Securities and Exchange Commission. Forward-looking statements, which are as of the date of this communication, are not updated to reflect events or circumstances after the date of the statement.
Contact:
Katy Murray
214-977-8869
KMurray@dallasnews.com
DallasNews Corporation and Subsidiaries
Consolidated Statements of Operations
| Three Months Ended March 31, | |||||||||
| In thousands, except share and per share amounts (unaudited) | 2025 | 2024 | |||||||
| Net Operating Revenue: | |||||||||
| Advertising and marketing services | $ | 10,813 | $ | 11,646 | |||||
| Circulation | 15,447 | 16,300 | |||||||
| Printing, distribution and other | 2,865 | 3,156 | |||||||
| Total net operating revenue | 29,125 | 31,102 | |||||||
| Operating Costs and Expense: | |||||||||
| Employee compensation and benefits | 14,847 | 16,117 | |||||||
| Other production, distribution and operating costs | 14,671 | 15,059 | |||||||
| Newsprint, ink and other supplies | 1,271 | 1,284 | |||||||
| Depreciation | 334 | 398 | |||||||
| Gain on sale/disposal of assets, net | (36,206 | ) | — | ||||||
| Total operating costs and expense | (5,083 | ) | 32,858 | ||||||
| Operating income (loss) | 34,208 | (1,756 | ) | ||||||
| Other income, net | 65 | 611 | |||||||
| Income (Loss) Before Income Taxes | 34,273 | (1,145 | ) | ||||||
| Income tax provision | 5,988 | 218 | |||||||
| Net Income (Loss) | $ | 28,285 | $ | (1,363 | ) | ||||
| Per Share Basis (1) | |||||||||
| Net income (loss) | |||||||||
| Basic | $ | 5.28 | $ | (0.25 | ) | ||||
| Diluted | $ | 5.28 | $ | (0.25 | ) | ||||
| Number of common shares used in the per share calculation: | |||||||||
| Basic | 5,352,490 | 5,352,490 | |||||||
| Diluted | 5,352,490 | 5,352,490 | |||||||
| (1) | The Company’s Series A and Series B common stock equally share in the distributed and undistributed earnings. There were no options or RSUs outstanding as of March 31, 2025 and 2024, that would result in dilution of shares or the calculation of EPS under the two-class method as prescribed under ASC 260 – Earnings Per Share. | ||||||||
DallasNews Corporation and Subsidiaries
Consolidated Balance Sheets
| In thousands (unaudited) | March 31, 2025 | December 31, 2024 | ||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 44,170 | $ | 9,594 | ||
| Accounts receivable, net | 8,818 | 10,662 | ||||
| Other current assets | 5,821 | 4,087 | ||||
| Total current assets | 58,809 | 24,343 | ||||
| Property, plant and equipment, net | 10,042 | 12,633 | ||||
| Operating lease right-of-use assets | 16,736 | 17,434 | ||||
| Deferred income taxes, net | 609 | 5,609 | ||||
| Other assets | 1,821 | 1,824 | ||||
| Total assets | $ | 88,017 | $ | 61,843 | ||
| Liabilities and Shareholders’ Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 4,019 | $ | 4,808 | ||
| Accrued compensation and other current liabilities | 10,384 | 11,498 | ||||
| Contract liabilities | 9,199 | 8,689 | ||||
| Total current liabilities | 23,602 | 24,995 | ||||
| Long-term pension liabilities | 11,555 | 11,764 | ||||
| Long-term operating lease liabilities | 16,662 | 17,379 | ||||
| Other liabilities | 880 | 892 | ||||
| Total liabilities | 52,699 | 55,030 | ||||
| Commitments and contingencies | ||||||
| Total shareholders' equity | 35,318 | 6,813 | ||||
| Total liabilities and shareholders’ equity | $ | 88,017 | $ | 61,843 | ||
DallasNews Corporation and Subsidiaries
Disaggregated Revenue by Reportable Segment and Revenue Source
| Three Months Ended March 31, | ||||||
| In thousands (unaudited) | 2025 | 2024 | ||||
| TDMN | ||||||
| Print advertising | $ | 4,949 | $ | 5,639 | ||
| Digital advertising (1) | 1,891 | 1,958 | ||||
| Agency | ||||||
| Marketing and media services (1) | 3,973 | 4,049 | ||||
| Advertising and Marketing Services | $ | 10,813 | $ | 11,646 | ||
| TDMN | ||||||
| Print circulation | 11,047 | 11,756 | ||||
| Digital circulation | 4,400 | 4,544 | ||||
| Circulation | $ | 15,447 | $ | 16,300 | ||
| TDMN | ||||||
| Printing, Distribution and Other | $ | 2,865 | $ | 3,156 | ||
| Total Revenue | $ | 29,125 | $ | 31,102 | ||
| (1) Prior to the segment reporting change, digital advertising, and marketing and media services revenues were reported in aggregate. | ||||||
DallasNews Corporation and Subsidiaries
Reconciliation of Segment Profit (Loss) to Operating Income (Loss)
| Three Months Ended March 31, | |||||||
| In thousands (unaudited) | 2025 | 2024 | |||||
| TDMN | |||||||
| Net operating revenue | $ | 25,152 | $ | 27,053 | |||
| Employee compensation and benefits | 10,006 | 10,593 | |||||
| Other production, distribution and operating costs | 10,239 | 10,132 | |||||
| Newsprint, ink and other supplies | 1,143 | 1,079 | |||||
| Operating costs and expense | 21,388 | 21,804 | |||||
| TDMN Segment Profit | $ | 3,764 | $ | 5,249 | |||
| Agency | |||||||
| Net operating revenue | $ | 3,973 | $ | 4,049 | |||
| Employee compensation and benefits | 1,876 | 2,426 | |||||
| Other production, distribution and operating costs | 1,729 | 1,819 | |||||
| Newsprint, ink and other supplies | 128 | 205 | |||||
| Operating costs and expense | 3,733 | 4,450 | |||||
| Agency Segment Profit (Loss) | $ | 240 | $ | (401 | ) | ||
| Total Segment Profit | $ | 4,004 | $ | 4,848 | |||
| Reconciling items: | |||||||
| Corporate and Other (1) | 30,204 | (6,604 | ) | ||||
| Operating Income (Loss) (1) | $ | 34,208 | $ | (1,756 | ) | ||
| (1) Three months ended March 31, 2025, includes a net gain of | |||||||
DallasNews Corporation - Non-GAAP Financial Measures
Reconciliation of Operating Income (Loss) to Adjusted Operating Loss
| Three Months Ended March 31, | ||||||||
| In thousands (unaudited) | 2025 | 2024 | ||||||
| Total net operating revenue | $ | 29,125 | $ | 31,102 | ||||
| Total operating costs and expense | (5,083 | ) | 32,858 | |||||
| Operating Income (Loss) | $ | 34,208 | $ | (1,756 | ) | |||
| Total operating costs and expense | $ | (5,083 | ) | $ | 32,858 | |||
| Less: | ||||||||
| Depreciation | 334 | 398 | ||||||
| Severance expense | 467 | 578 | ||||||
| Gain on sale/disposal of assets, net | (36,206 | ) | — | |||||
| Adjusted Operating Expense | $ | 30,322 | $ | 31,882 | ||||
| Total net operating revenue | $ | 29,125 | $ | 31,102 | ||||
| Adjusted operating expense | 30,322 | 31,882 | ||||||
| Adjusted Operating Loss | $ | (1,197 | ) | $ | (780 | ) | ||
FAQ
How much profit did DallasNews (DALN) make from the Plano facility sale in Q1 2025?
What is DallasNews (DALN) Q1 2025 revenue compared to Q1 2024?
How will the pension plan changes affect DALN employees in 2025?
What is DallasNews (DALN) cash position as of March 2025?
How much did DALN's advertising revenue decline in Q1 2025?
