A.H. Belo 3Q Loss Widens on Severance Cost, Charge

By: A.H. Belo Corp. said Friday its third-quarter loss widened mostly on severance costs and an impairment charge, as ad sales continued to soften.

The publisher of The Dallas Morning News and three other newspapers also disclosed that it recently reduced its staff by an additional 90 positions, which will lead to a $2.4 million fourth-quarter charge.

A.H. Belo reported a loss of $17.3 million, or 84 cents per share, compared with a loss of $6.3 million, or 31 cents per share, in the previous year.

Quarterly results included an $11.1 million charge for a voluntary severance program and a $4.5 million printing press-related impairment charge.

In July the company had said it would slash 500 jobs through voluntary severance offers, which was on top of the reduction of 170 jobs earlier in the year.

For the period ended Sept. 30, operating revenue slipped 15 percent to $153.8 million from $181.9 million on lower advertising sales.

Ad revenue dropped to $114.8 million from $147.5 million, while circulation revenue improved to $31.6 million from $28.2 million.

The newspaper sector has struggled as consumers and advertisers continue to migrate to the Internet. The housing downturn, eroding credit and recession worries have also weighed on the industry.

A.H. Belo said it drew $10 million from a revolving credit agreement last month to help cover its severance costs. The company said the job cuts will lead to about $24 million in annual savings. Including the 90 staff positions being eliminated, A.H. Belo anticipates annual savings of $29 million.

The company had about 3,460 workers, including full- and part-time positions, as of Sept. 30.