 DALLAS, July 27, 2020 GLOBE NEWSWIRE -- A. H. Belo Corporation NYSE: AHC today reported a 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. Second quarter 2019 net income was driven by a pretax gain of 25.9 million from the sale of real estate previously used as the Companys headquarters, which for tax purposes is fully offset by net operating loss carryforwards. For the second quarter of 2020, on a non-GAAP basis, A. H. Belo reported an operating loss adjusted for certain items adjusted operating income loss of 2.5 million, a decline of 2.7 million when compared to adjusted operating income of 0.2 million reported in the second quarter of 2019.Robert W. Decherd, chairman, president and Chief Executive Officer, said, Given the many effects of the coronavirus pandemic, A. H. Belo has more than held its own during the first six months of 2020. Colleagues throughout the entire Company have made fast-paced, smart adjustments to how we publish content across platforms and deliver crucial news and information to the communities that rely on The Dallas Morning News. The leadership provided by Grant Moise, Katy Murray and their management teams has been exemplary. The Companys financial performance for the second quarter is in line with the revised 2020 Financial Plan reviewed with the Board in April and we are optimistic that revenue conditions can improve during the second half as we are presently projecting.Second Quarter ResultsTotal revenue was 35.4 million in the second quarter of 2020, a decrease of 11.7 million or 24.8 percent when compared to the second quarter of 2019.Revenue from advertising and marketing services, including print and digital revenues, was 15.6 million in the second quarter of 2020, a decrease of 9.7 million or 38.4 percent when compared to the 25.3 million reported for the second quarter of 2019.Circulation revenue was 15.7 million, a decrease of 1.3 million or 7.6 percent when compared to the second quarter of 2019. The decline is primarily due to a decrease in home delivery and single copy volumes, partially offset by rate increases and an increase of 0.3 million or 24.1 percent in digital-only subscription revenue.Printing, distribution and other revenue decreased 0.7 million, or 14.6 percent, to 4.1 million, primarily due to a reduction in brokered and commercial printing, partially offset by an increase in shared mail packaging revenue.Total consolidated operating expense in the second quarter of 2020, on a GAAP basis, was 39.8 million, an increase of 15.5 million or 64.0 percent compared to the second quarter of 2019. Excluding the 2019 gain of 25.9 million from the real estate sale, operating expense improved 10.4 million. The improvement is primarily due to decreases of 2.8 million in employee compensation and benefits expense, 2.7 million in outside services expense, 1.8 million in newsprint, ink and other supplies expense, and 1.4 million in distribution expense.In the second quarter of 2020, on a non-GAAP basis, adjusted operating expense was 38.9 million, an improvement of 11.2 million or 22.4 percent when compared to 50.1 million of adjusted operating expense in the second quarter of 2019. The improvement is primarily due to expense decreases in employee compensation and benefits, newsprint expense, distribution expense, and reductions from continued management of discretionary spending.As of June 30, 2020, the Company had 769 employees, a decrease of 110 or 12.5 percent when compared to the prior year period. Cash and cash equivalents were 42.3 million and the Company had no debt.Non-GAAP Financial MeasuresReconciliations of operating income loss to adjusted operating income loss, total net operating revenue to adjusted operating revenue, and total operating costs and expense to adjusted operating expense are included in the exhibits to this release.Financial Results Conference CallA. H. Belo Corporation will conduct a conference call on Tuesday, July 28, 2020, at 9:00 a.m. CDT to discuss financial results. The conference call will be available via webcast by accessing the Companys website at An archive of the webcast will be available at in the Investor Relations section.To access the listen-only conference call, dial 1-844-291-6358 and enter the following access code when prompted: 8250158. A replay line will be available at 1-866-207-1041 from 12:00 p.m. CDT on July 28, 2020 until 11:59 p.m. CDT on August 3, 2020. The access code for the replay is 8288468.About A. H. Belo CorporationA. H. Belo Corporation is the leading local news and information publishing company in Texas. The Company has commercial printing, distribution and direct mail capabilities, as well as a presence in emerging media and digital marketing. While focusing on extending the Companys media platforms, A. H. Belo delivers news and information in innovative ways to a broad range of audiences with diverse interests and lifestyles. For additional information, visit or email in this communication concerning A. H. Belo Corporations business outlook or future economic performance, revenues, expenses, 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. 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 Companys control, and include changes in advertising demand and other economic conditions; consumers tastes; newsprint prices; program costs; labor relations; cybersecurity incidents; technological obsolescence; and the current and future impacts of the COVID-19 public health crisis. Among other risks, there can be no guarantee that the board of directors will approve a quarterly dividend in future quarters; as well as other risks described in the Companys Annual Report on Form 10-K and in the Companys other public disclosures and filings with the Securities and Exchange Commission. Forward-looking statements, which are as of the date of this filing, are not updated to reflect events or circumstances after the date of the statement.Contact: Katy Murray 214-977-8869A. H. Belo Corporation and Subsidiaries Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, In thousands, except share and per share amounts unaudited2020 2019 2020 2019 Net Operating Revenue: Advertising and marketing services15,591 25,300 34,918 49,341 Circulation 15,723 17,013 32,137 34,286 Printing, distribution and other 4,101 4,802 8,703 10,077 Total net operating revenue 35,415 47,115 75,758 93,704 Operating Costs and Expense: Employee compensation and benefits 16,997 19,828 36,013 40,952 Other production, distribution and operating costs 18,659 23,845 39,651 46,029 Newsprint, ink and other supplies 2,271 4,022 5,542 8,769 Depreciation 1,802 2,333 3,567 4,719 Amortization 64 140 128 216 Gain on saledisposal of assets, net 25,908 5 25,908 Total operating costs and expense 39,793 24,260 84,896 74,777 Operating income loss 4,378 22,855 9,138 18,927 Other income, net 1,331 1,133 2,683 1,962 Income Loss Before Income Taxes 3,047 23,988 6,455 20,889 Income tax provision benefit 367 7,460 1,420 6,496 Net Income Loss3,414 16,528 5,035 14,393 Per Share Basis Net income loss Basic and diluted0.16 0.77 0.24 0.67 Number of common shares used in the per share calculation: Basic and diluted 21,410,423 21,525,971 21,410,423 21,578,014 A. 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Belo Corporation and Subsidiaries Consolidated Balance Sheets June 30, December 31, In thousands unaudited2020 2019 Assets Current assets: Cash and cash equivalents42,310 48,626 Accounts receivable, net 13,019 18,441 Notes receivable 22,775 Other current assets 11,610 7,737 Total current assets 89,714 74,804 Property, plant and equipment, net 15,181 18,453 Operating lease right-of-use assets 21,871 21,371 Intangible assets, net 191 319 Deferred income taxes, net 22 50 Long-term note receivable 22,400 Other assets 3,627 3,648 Total assets130,606 141,045 Liabilities and Shareholders Equity Current liabilities: Accounts payable4,903 6,103 Accrued compensation and other current liabilities 12,092 13,337 Contract liabilities 14,012 12,098 Total current liabilities 31,007 31,538 Long-term pension liabilities 20,275 23,039 Long-term operating lease liabilities 23,051 23,120 Other liabilities 5,702 5,611 Total liabilities 80,035 83,308 Total shareholders equity 50,571 57,737 Total liabilities and shareholders equity130,606 141,045 A. 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