A. H. Belo Corporation (NYSE: AHC) today reported net income of $0.05 per share for the second quarter of 2013 compared to net income of $0.01 per share in the second quarter of 2012.
Second quarter 2013 results include a decline in advertising and marketing services revenues of 4 percent, the lowest year-over-year quarterly decline since the Company’s spin-off from Belo Corp. in 2008. This improvement was driven by a 1 percent increase in advertising and marketing services revenue at The Dallas Morning News, which is partly attributable to revenue diversification initiatives.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), was $8.7 million in the second quarter of 2013, compared to $10.5 million in the prior year period. As of June 30, 2013, cash and cash equivalents were $32.9 million, and the Company had no debt.
Robert W. Decherd, chairman, president and Chief Executive Officer, said, “The second quarter total revenue decrease of 4 percent is an improvement of one percentage point in the rate of decline compared to the first quarter. Our revenue diversification initiatives are driving these improvements. We plan to add more such initiatives in the second half of 2013 as well as into 2014.”On June 19, Decherd announced that he will retire as Chief Executive Officer in September and remain on the Board of Directors. James M. Moroney III will become CEO at that time in addition to his current role as Publisher and CEO of The Dallas Morning News. Moroney will also be elected to the Company’s Board of Directors. Second Quarter Results Total revenue was $104.5 million in the second quarter of 2013, a decrease of 4 percent compared to the prior year period. Total revenue at The Dallas Morning News remained flat compared to prior year . Revenue from advertising and marketing services, including print and digital revenues, decreased because improvements at The Dallas Morning News were more than offset by declines at The Providence Journal and The Press-Enterprise. Digital revenue increased 15 percent over the prior year quarter. When the impact of prior year revenue associated with a discontinued digital advertising platform is excluded, digital revenue increased 17 percent, primarily due to continued growth in automotive digital revenue at The Dallas Morning News and marketing services revenue associated with 508 Digital. Increases in digital revenue were offset by declines in display, preprint and classified advertising revenues which decreased 9 percent, 2 percent and 10 percent, respectively. Advertising revenue from niche publications, which is a component of the display, preprint, classified and digital revenues reported above, decreased 3 percent compared to the prior year period.