A. H. Belo
(AHC - Get Report)
shares are up today after the newspaper publisher swung to a profit in the third quarter.
A. H. Belo shares are up more than 5% in morning trading to around $8.05 after the company reported earnings of $4.57 million, or 20 cents per diluted share, compared with a loss of $5.77 million, or 28 cents per diluted share, in the same period a year ago. The stock is up more than 33% over the past year.
Total operating revenue fell 6.1% to $119.1 million from $126.9 million during the quarter as the company saw a decrease in its advertising and circulation revenue.
Advertising revenue, including print and digital, decreased 11.2% while circulation revenue was down 0.9%. Newsprint expenses increased 10.5% in the third quarter to $10.1 million as newsprint consumption increased 2.5% and the average newsprint purchase price increased 35.4%.
"Our corporate and operating unit teams have worked intensely for the past two years to reach this relative stability in an industry environment that continues to change at a rapid pace. Third quarter total revenue decreased 6.1% compared to 2009 and was only 100 basis points below the company's 2010 financial plan for the third quarter," chairman, president and CEO Robert Decherd said. "Expense containment and cost reductions remain top priorities across the entire organization."
Total consolidated operating expense was down 19.6% to $115.5 million from $143.8 million.
For the first nine months of the year, the company had a loss of $4.7 million, or 23 cents per share, compared with a loss of $113.5 million, or $5.53 a share, in the same period a year ago. Revenue dropped 6.9% to $356.5 million from $382.9 million.
A. H. Belo owns and operates four daily newspapers in the U.S., including
The Dallas Morning News
in California, as well as several Web sites.
--Written by Theresa McCabe in Boston.
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