The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Hey, good morning, everyone. Thanks for taking the questions.
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Hey, so, on the profit improvement, expectation that was kind of laid out at the end of 2024, I think it was around $5 million year-over-year. And I
was wondering if you guys were still on track for that, in 2025, I think it was -- it does imply a couple million dollars and it just it versus a year ago.
I kind of seeing where we're at there.
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Okay. So maybe that kind of gets moved about three months ahead of time, but is that like on a pro forma basis, kinda on a run rate, I should say.
Is that expectation for, on a runway basis to kind of hit there this summer, this fall, that those profitability levels.
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MAY 01, 2025 / 2:00PM, DALN.OQ - Q1 2025 Dallasnews Corp Earnings Call
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Okay, great. Thanks. And then on the digital revenue side, it's helpful color in terms of the changes strategy that you guys had for the algorithms
kind of learn your audience. I guess the first question is what could you explain what you meant by the 16% lift in starts versus the former strategy
and then, part two would just be how things are trending in April and if you're still seeing growth in subscribers, so far Q2.
Question: Adam Ballantyne - Gondolin Capital - Analyst
: That's really helpful color. Thanks, Grant. And then just on that part two, I was just kind of curious how subscribers were trending if there was still
growth there, year-over-year, quarter-over-quarter.
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Okay, And then just kind of one more for me and I'll hop hop back in, but in terms of the kind of demand that you're seeing on the advertising
front. I was wondering if you could kind of comment on maybe areas that were really weak in the first quarter, or areas that were stronger than
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MAY 01, 2025 / 2:00PM, DALN.OQ - Q1 2025 Dallasnews Corp Earnings Call
others in terms of verticals, there's -- there are a number of businesses that are, especially in the Texas area, some, home builders, DR Horn, LGI
AutoNation in Texas of significantly ramped up advertising, which would be local in nature.
So I guess, I was kind of surprised to see kind of some advertising weakness. Yeah, so I would be kind of helpful to kind of maybe run through some
of the verticals and where you're maybe overindexed or under indexed, so far this year.
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Really helpful for the color. Thanks, Grant. I'll pop back in.
Question: Adam Ballantyne - Gondolin Capital - Analyst
: All right, I'll take the mic back. In terms of the metric tons that you guys used on the newspaper side, that was a bit of a drag to margins. I think
there was a 32% increase in the tonnage there and I was just curious, is that structurally going to be higher 30% for the rest of the year as you ramp
up on the new printing facility or is that, one time in terms of sort of working capital that got expense through the income statement. I was just
kind of curious if we can get some color there because it did kind of drag on margins.
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MAY 01, 2025 / 2:00PM, DALN.OQ - Q1 2025 Dallasnews Corp Earnings Call
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Okay, and then when you say normalize, is that sort of back to 2024 levels, which were fairly consistent on a quarterly basis?
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Okay, perfect. Thank you. And then just to kind of jump back to the pension, I think you had noted that there was $14million to $16 million to pay
out to fulfill the obligations, and I was just wondering, is that still the case and then are we going to see that flow through the 2Q cash flow statement
and balance sheet?
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Oh perfect. Apologies for missing that. Thank you. And then, just kind of final question here in terms of medium giants profitability, it was interesting
to see that given there was still a small year-over-year decline in the business, so marketing and media, services, and I was just curious, is that
profitability level sort of go forward from here or, kind of mid single digit range and profitable or is it going to be still pretty volatile throughout
the year?
Question: Adam Ballantyne - Gondolin Capital - Analyst
: Great. Thanks for the color guys. Appreciate it.
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