{"id":826625,"date":"2025-03-17T17:34:22","date_gmt":"2025-03-17T21:34:22","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/dallasnews-corporation-announces-fourth-quarter-and-full-year-2024-financial-results\/"},"modified":"2025-03-17T17:34:22","modified_gmt":"2025-03-17T21:34:22","slug":"dallasnews-corporation-announces-fourth-quarter-and-full-year-2024-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/dallasnews-corporation-announces-fourth-quarter-and-full-year-2024-financial-results\/","title":{"rendered":"DallasNews Corporation Announces Fourth Quarter and Full Year 2024 Financial Results"},"content":{"rendered":"

\nRecent Close of $43.5 Million Printing Facility Sale Resolves Legacy Pension Liabilities; Enhances Financial Position and Flexibility
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DALLAS, March 17, 2025 (GLOBE NEWSWIRE) — DallasNews Corporation (Nasdaq: DALN) (the \u201cCompany\u201d), the Dallas-based holding company of The\u00a0Dallas\u00a0Morning\u00a0News<\/em> and Medium Giant, today reported financial results for the fourth quarter and full year 2024.<\/p>\n

Grant Moise, Chief Executive Officer, said, \u201c2024 was a significant year for the Company as we began the transition of our printing and distribution facility to one that is 90\u00a0percent smaller and significantly more efficient. This change provides the Company with a source of funds to invest back into our digital assets, while simultaneously moving us closer to sustainable profitability. These operational changes, also allow us to invest in our journalism, which is the heartbeat of our business. In 2024, our newsroom published ambitious projects ranging from Texas\u2019 excessive use of toll roads to an investigative series about why tens of thousands of Americans die from preventable bleeding each year. Last, but not least, Medium Giant\u2019s bottom line contribution to the Company has improved significantly, and we look forward to continued improvement in its profit margin.\u201d<\/p>\n

For the fourth quarter of 2024, the Company reported net income of $4.0\u00a0million, or $0.74\u00a0per share, and an operating loss of $1.8\u00a0million. The fourth quarter 2024 net income includes a non-cash tax benefit of $5.3\u00a0million resulting from a reduction in the valuation allowance for deferred tax assets. The deferred tax assets were determined to be realizable due to the income from the sale of the Company\u2019s Plano,\u00a0TX printing facility. In the fourth quarter of 2023, the Company reported a net loss of $2.2\u00a0million, or $(0.41) per share, and an operating loss of $2.5\u00a0million, which includes expense of $2.7\u00a0million related to the 2023 Voluntary Severance Program.<\/p>\n

For the fourth quarter of 2024, on a non-GAAP basis, DallasNews reported an operating loss adjusted for certain items (\u201cadjusted operating income (loss)\u201d) of $1.3\u00a0million, a decrease of $1.9\u00a0million when compared to adjusted operating income of $0.6\u00a0million reported in the fourth quarter of 2023. The decline is primarily due to a total revenue decrease of $2.9\u00a0million, partially offset by expense savings of $0.6\u00a0million in employee compensation and benefits, and $0.5\u00a0million in newsprint.<\/p>\n

For the full year 2024, the Company reported net income of $0.1\u00a0million, or $0.02\u00a0per\u00a0share, and an operating loss of $7.1\u00a0million, which includes severance expense of $2.8\u00a0million for the anticipated headcount reductions resulting from the transition to a smaller, more efficient printing facility. The 2024 net income includes a non-cash tax benefit of $5.0\u00a0million, primarily resulting from a reduction in the valuation allowance for deferred tax assets. For the full year\u00a02023, the Company reported a net loss of $7.1\u00a0million, or $(1.33)\u00a0per share, and an operating loss of $8.1\u00a0million.<\/p>\n

For the full year 2024, on a non-GAAP basis, the Company reported an adjusted operating loss of $1.6\u00a0million, an improvement of $1.1\u00a0million when compared to an adjusted operating loss of $2.7\u00a0million reported for the full year 2023.<\/p>\n

The improvement is primarily due to expense savings of $6.5\u00a0million in distribution, $5.5\u00a0million in employee compensation and benefits expense, and $3.5\u00a0million in newsprint, partially offset by a total revenue decline of $14.3\u00a0million. The $6.5\u00a0million expense savings in distribution and total revenue decline of $14.3\u00a0million are primarily the result of the Company\u2019s strategic decision to exit its shared mail program and discontinue print-only editions of its niche publications at the end of August 2023.<\/p>\n

\n Fourth Quarter Results<\/strong>\n <\/p>\n

Total revenue was $31.1\u00a0million in the fourth quarter of 2024, a decrease of $2.9\u00a0million or 8.5\u00a0percent when compared to the fourth quarter of 2023.<\/p>\n

Revenue from advertising and marketing services, including print and digital revenues, was $11.5\u00a0million in the fourth quarter of 2024, a decrease of $1.3\u00a0million or 10.3\u00a0percent when compared to the $12.8\u00a0million reported for the fourth quarter of 2023. The decline is primarily due to a $1.1\u00a0million or 16.6\u00a0percent reduction in print advertising revenue.<\/p>\n

Circulation revenue was $16.3\u00a0million in the fourth quarter of 2024, a decrease of $0.8\u00a0million or 4.7\u00a0percent when compared to the fourth quarter of 2023, primarily due to a $0.7\u00a0million or 5.5\u00a0percent decline in print circulation revenue, which includes the impact of additional single copy revenue generated in 2023 related to the Texas Rangers World Series win.<\/p>\n

Printing, distribution and other revenue was $3.2\u00a0million, a decrease of $0.8\u00a0million or 19.4\u00a0percent when compared to the fourth quarter of 2023, primarily resulting from a canceled commercial printing partnership, and nonrecurring revenue generated in 2023 from Texas Rangers World Series product sales.<\/p>\n

Total consolidated operating expense in the fourth quarter of 2024, on a GAAP basis, was $32.8\u00a0million, an improvement of $3.6\u00a0million or 9.9\u00a0percent when compared to the fourth quarter of 2023. The improvement is primarily due to expense savings of $3.3\u00a0million in employee compensation and benefits, including severance, and $0.5\u00a0million in newsprint.<\/p>\n

On a non-GAAP basis, adjusted operating expense was $32.4\u00a0million, an improvement of $1.0\u00a0million or 2.9\u00a0percent when compared to the fourth quarter of 2023.<\/p>\n

\n Full Year Results<\/strong>\n <\/p>\n

Total revenue was $125.4\u00a0million for the full year 2024, a decrease of $14.3\u00a0million or 10.2\u00a0percent when compared to the full year 2023.<\/p>\n

Revenue from advertising and marketing services, including print and digital revenues, was $47.9\u00a0million in 2024, a decrease of $11.1\u00a0million or 18.9\u00a0percent when compared to the $59.0\u00a0million reported for the full year 2023. Excluding the $10.7\u00a0million reduction in print advertising revenue resulting from the Company ending its shared mail program and print-only niche publications, print advertising revenue declined $1.4\u00a0million or 5.7\u00a0percent, partially offset by an improvement of $1.0\u00a0million or 6.5\u00a0percent in marketing and media services revenue, driven by two customer contracts that began in 2024.<\/p>\n

Circulation revenue was $64.9\u00a0million for the full year 2024, a decrease of $0.5\u00a0million when compared to the full year 2023. The digital-only subscription revenue increase of $1.9\u00a0million or 11.7\u00a0percent, mostly offset the print circulation decline of $2.4\u00a0million or 4.8\u00a0percent.<\/p>\n

Printing, distribution and other revenue decreased $2.7\u00a0million, or 17.7\u00a0percent, to $12.6\u00a0million, primarily due to reductions in revenue from commercial printing and distribution, including the loss of $0.9\u00a0million in revenue from a canceled commercial printing partnership, as well as a reduction in revenue from mailed advertisements for business customers.<\/p>\n

Total consolidated operating expense for the full year 2024, on a GAAP basis, was $132.4\u00a0million, an improvement of $15.3\u00a0million or 10.4\u00a0percent compared to the full year 2023. The improvement is primarily due to expense savings of $6.5\u00a0million in distribution, $5.5\u00a0million in employee compensation and benefits expense, including severance, and $3.5\u00a0million in newsprint, partially offset by $0.5 million in additional lease expense related to moving to a smaller printing facility.<\/p>\n

On a non-GAAP basis, adjusted operating expense was $127.0\u00a0million, an improvement of $15.4\u00a0million or 10.8\u00a0percent when compared to $142.4\u00a0million of adjusted operating expense in the full year 2023.<\/p>\n

As of December 31, 2024, the Company had 526 employees, a headcount decrease of 75 or 12.5\u00a0percent when compared to the prior year period, not including employees departing in 2025 when the transition to the new printing facility is complete. Cash and cash equivalents were $9.6\u00a0million at December\u00a031, 2024, and the Company has no debt.<\/p>\n

\n Segment Information<\/strong>\n <\/p>\n

The Company determined it has the following two reportable segments:<\/p>\n