Dallasnews Corp (DALN) 2025 Q1 法說會逐字稿

Hello and welcome to the Dallasnews Corporation first-quarter 2025 investor call. (Operator instructions)

您好，歡迎參加達拉斯新聞公司 2025 年第一季投資者電話會議。（操作員指示）

I would now like to turn the conference over to Gary Cobleigh, Vice President and Controller. You may begin.

現在，我想將會議交給副總裁兼財務總監 Gary Cobleigh。你可以開始了。

Good morning, everyone. This is Gary Cobleigh, Vice President and Controller of Dallasnews Corporation. Welcome to our first quarter of 2025 investor call.

大家早安。我是達拉斯新聞集團副總裁兼財務總監加里‧科布利 (Gary Cobleigh)。歡迎參加我們 2025 年第一季的投資者電話會議。

I'm joined by Kathy Collins, Dallasnews' Chief Financial Officer, who will be reviewing financial results. Katie Murray, President of Dallasnews; and Grant Louise, Chief Executive Officer, who will provide brief business remarks.

和我一起的還有達拉斯新聞的財務長凱西‧柯林斯 (Kathy Collins)，她將審查財務結果。達拉斯新聞總裁凱蒂·莫瑞 (Katie Murray)；執行長格蘭特·路易斯 (Grant Louise) 將發表簡短的商業評論。

Yesterday afternoon we issued a press release announcing first quarter 2025 results and filed our first quarter 10-Q. Both of these are posted on our website, dallasnewscorporation.com under the Investor Relations section.

昨天下午，我們發布了一份新聞稿，宣布了 2025 年第一季的業績，並提交了第一季的 10-Q 報表。這兩份文件均發佈在我們的網站 dallasnewscorporation.com 的「投資者關係」部分。

Unless otherwise specified, comparisons used on today's call measure first quarter 2025 performance against first quarter 2024 performance. Our discussion today will include forward-looking statements, including statements concerning our transition of print operations and associated expense savings, our business outlook or future economic performance, revenues, expenses, cash balance, investments, business initiatives, working capital, and other financial and non-financial items that are not historical facts.

除非另有說明，今天電話會議中使用的比較指標是 2025 年第一季的表現與 2024 年第一季的表現。我們今天的討論將包括前瞻性陳述，包括有關我們的印刷業務轉型和相關費用節省、我們的業務前景或未來經濟表現、收入、費用、現金餘額、投資、業務計劃、營運資本以及其他非歷史事實的財務和非財務項目的陳述。

Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those statements, including those identified in the earnings release we issued yesterday.

前瞻性陳述受風險、不確定性和其他因素的影響，這些因素可能導致實際結果與這些陳述有重大差異，包括我們昨天發布的收益報告中確定的結果。

The company assumes no obligation to update the information in this communication except as otherwise required by law. Additional information about these factors is detailed in the company's press releases and publicly available filings with the SEC.

除非法律另有規定，否則本公司不承擔更新本通訊中資訊的義務。有關這些因素的更多信息，請參閱公司的新聞稿和向美國證券交易委員會 (SEC) 提交的公開文件。

Today's discussion will include non-GAAP financial measures. We believe that non-GAAP financial measures provide useful supplemental information to assist investors in determining performance comparisons to our peers. A reconciliation of GAAP to non-GAAP financial measures is included with our press release.

今天的討論將包括非公認會計準則財務指標。我們相信，非公認會計準則財務指標提供了有用的補充信息，可幫助投資者確定與同行的績效比較。我們的新聞稿中包含了 GAAP 與非 GAAP 財務指標的對帳。

I will now turn the call over to Cathy.

現在我將把電話轉給凱西。

Good morning everyone and thank you for joining today's call. On a GAAP basis for the quarter, Dallasnews Corporation reported net income of $28.3 million or $5.28 per share, and operating income of $34.2 million, which includes a net gain of $36.2 million from the Plano printing facility sale.

大家早安，感謝大家參加今天的電話會議。根據本季的 GAAP 基礎，達拉斯新聞集團報告淨收入為 2,830 萬美元或每股 5.28 美元，營業收入為 3,420 萬美元，其中包括出售普萊諾印刷廠的 3,620 萬美元淨收益。

In the first quarter last year, we reported a net loss of $1.4 million and an operating loss of $1.8 million. On a non-GAAP basis for the quarter, we reported an adjusted operating loss of $1.2 million a decrease of $400,000 when compared to an adjusted operating loss of $800,000 reported for the same period last year.

去年第一季度，我們報告淨虧損 140 萬美元，營運虧損 180 萬美元。以非公認會計準則計算，本季我們報告的調整後營業虧損為 120 萬美元，與去年同期報告的調整後營業虧損 80 萬美元相比減少了 40 萬美元。

The decline is primarily due to a total revenue decrease of $2 million, partially offset by expense savings of $1.2 million in employee compensation and benefits. We reported total revenue of $29.1 million compared to $31.1 million reported for Q1 last year.

下降的主要原因是總收入減少了 200 萬美元，但員工薪資和福利費用節省了 120 萬美元，部分抵消了這一影響。我們報告的總收入為 2,910 萬美元，而去年第一季的總收入為 3,110 萬美元。

Advertising and marketing services revenue was $10.8 million, a decrease of $800,000 or 7.2% compared to $11.6 million reported last year and is primarily due to a print advertising revenue decline of $700,000 or 12.2%. Circulation revenue was $15.4 million, a decrease of $900,000 or 5.2% compared to the $16.3 million reported last year. The decline is primarily due to a print circulation revenue decrease of $700,000 or 6%.

廣告和行銷服務收入為 1,080 萬美元，與去年的 1,160 萬美元相比減少了 80 萬美元（7.2%），這主要是由於印刷廣告收入下降了 70 萬美元（12.2%）。發行收入為 1,540 萬美元，與去年的 1,630 萬美元相比減少了 90 萬美元，降幅為 5.2%。下降的主要原因是印刷發行收入減少了 70 萬美元，即 6%。

Total membership, including both print and digital, was 125,972 as of March 31, compared to 126,973 as of December 31 and 129,857 as of March last year. Digital only subscriptions of 65,028 reflect an increase of 1.1% as of March 31 compared to December 31, and an increase of 4.2% compared to March of last year. Shortly, Grant will provide additional commentary on our digital strategy to drive additional membership volume.

截至 3 月 31 日，包括印刷版和數位版在內的會員總數為 125,972 人，而截至 12 月 31 日為 126,973 人，截至去年 3 月為 129,857 人。截至 3 月 31 日，純數位訂閱用戶數為 65,028 人，較 12 月 31 日成長 1.1%，較去年 3 月成長 4.2%。不久之後，格蘭特將對我們的數位策略提供進一步的評論，以推動會員數量的增加。

On a non-GAAP basis, total adjusted operating expenses for the quarter improved $1.6 million due to employee compensation and benefits expense savings of $1.2 million dollars. As of March 31, total headcount was 461, down 70% compared to last year, primarily resulting from the transition to a smaller, more efficient printing facility requiring less staff.

根據非公認會計準則，本季調整後總營運費用改善了 160 萬美元，原因是員工薪資和福利費用節省了 120 萬美元。截至 3 月 31 日，總員工人數為 461 人，比去年同期下降 70%，主要原因是印刷廠規模縮小，效率提高，所需員工減少。

Consistent with interim periods, the company uses the estimated annual effective tax rate method and recorded $6 million of tax expense for the quarter due to an estimated $600,000 for the Texas franchise tax and the $36.2 million dollar gain generated from the sale of the Plano property. However, the utilization of our net operating loss carried forwards will reduce our cash taxes to approximately $700,000 for federal and state purposes.

與中期一致，該公司採用估計年度有效稅率法，並記錄了本季 600 萬美元的稅費，因為德州特許經營稅估計為 60 萬美元，而出售普萊諾房產產生了 3,620 萬美元的收益。然而，利用我們結轉的淨營業虧損將使我們的聯邦和州現金稅減少到約 70 萬美元。

The Plano property sale strengthened our balance sheet, and at the end of March, cash and cash equivalents were $44.2 million. And as the end of April 25, following the pension funding, we had $36 million in cash and cash equivalents.

普萊諾房產的出售增強了我們的資產負債表，截至 3 月底，現金和現金等價物為 4,420 萬美元。截至 4 月 25 日，退休金注資後，我們的現金和現金等價物為 3,600 萬美元。

I will now turn the call over to Katie.

我現在將電話轉給凱蒂。

Thank you, Cathy. Good morning, everyone, and thank you for joining today's call. We are pleased with the progress we've made so far in 2025 on two key initiatives that were significant milestones in our return to growth plan.

謝謝你，凱西。大家早安，感謝大家參加今天的電話會議。我們對 2025 年迄今在兩項關鍵措施上的進展感到滿意，這兩項措施是我們恢復成長計畫的重要里程碑。

As noted on our 2024 year end call, the sale of the Plano property provided us the required capital to fully fund our pension plan. In April, we were able to utilize approximately $10 million of company funds, along with $132 million in planned assets to purchase an annuity contract.

正如我們在 2024 年年終電話會議上所指出的，出售普萊諾房產為我們提供了全額資助退休金計畫所需的資金。4 月份，我們能夠利用約 1,000 萬美元的公司資金以及 1.32 億美元的計畫資產購買年金合約。

The transition of the full administration of the plan is in process and will be completed by July 1. We are thrilled that we have been able to fully fund our pension obligations, which has been a priority for the Board to secure the retirement benefits of former and current employees who have dedicated so many years of service to the company.

該計劃的全面管理過渡正在進行中，並將於 7 月 1 日完成。我們很高興能夠全額支付我們的退休金義務，這是董事會的首要任務，以確保為公司服務多年的前任和現任員工的退休福利。

As of the end of April, we have fully transitioned our print operations to our smaller, more efficient lease facility. Starting in May, we will begin to recognize realize planned savings planned expense savings relating to this transition, since this will be our first full month, no longer operating in dual facilities.

截至四月底，我們已將印刷業務完全轉移到規模較小、效率更高的租賃設施。從五月開始，我們將開始確認與此過渡相關的實現計劃節省和計劃費用節省，因為這將是我們不再在雙重設施中運營的第一個完整月份。

As Cathy noted, as of April 25, we had approximately $36 million in cash on the balance sheet as a result of the sale of our last piece of real estate. As the Board continues to discuss capital allocation strategies of one, investing back into the business to drive digital revenue growth, and two, returning capital shareholders, we are also continually to carefully -- we are continuing to carefully monitor the economy to see how changes in economic policies and tariffs may impact not only our business, but also the advertising and marketing budgets of our clients as well as the impact of the cost savings we expect to realize as a result of the Plano sale.

正如凱西所說，截至 4 月 25 日，由於出售了我們最後一處房地產，我們的資產負債表上有大約 3,600 萬美元的現金。董事會繼續討論資本配置策略，一是重新投資於業務以推動數位收入成長，二是回報資本股東，我們也在持續謹慎地——我們將繼續密切監測經濟，以了解經濟政策和關稅的變化不僅可能影響我們的業務，還可能影響我們客戶的廣告和行銷預算，以及我們預計透過出售普萊諾實現的成本節約的影響。

I am very pleased with the realization of these two important milestones within our return to growth plan and feel confident this puts us on a better trajectory moving forward.

我對我們恢復成長計畫中這兩個重要里程碑的實現感到非常高興，並相信這將使我們走上更好的前進軌道。

I will now turn the call over to Grant.

現在我將電話轉給格蘭特。

Thanks, Katie, and good morning, everyone. As Katie mentioned, our commitment to fulfill our pension obligations has always been one of our top priorities, and we're proud that we were able to take care of these employees who gave so much to the company over their many years of service.

謝謝，凱蒂，大家早安。正如凱蒂所提到的，履行退休金義務的承諾一直是我們的首要任務之一，我們很自豪能夠照顧這些在多年服務中為公司做出巨大貢獻的員工。

Eliminating our pension obligation is also a benefit to our shareholders because it eliminates our last source of debt and the need for any future contributions. Eliminating this debt will give investors clear visibility on how to value our company as we continue to get closer to operating profitably.

消除我們的退休金義務也對我們的股東有利，因為它消除了我們的最後一個債務來源和任何未來繳款的需要。隨著我們不斷接近獲利運營，消除這些債務將使投資者清楚地了解如何評估我們的公司。

Turning to medium giant, the agency's contribution to the company continues to improve year-over-year with an operating income increase of $600,000. As we've discussed on prior calls last year, we introduced segment reporting, which was designed to break out the agency business separate from the traditional Dallas Morning News business.

談到中型巨頭，該機構對該公司的貢獻繼續逐年提高，營業收入增加了 60 萬美元。正如我們在去年電話會議上討論的那樣，我們引入了分部報告，旨在將代理業務與傳統的《達拉斯晨報》業務分開。

Segment reporting has given us better visibility into aligning costs with revenues. We believe there is additional opportunity for margin improvements, and we continue to focus on growing revenues with larger, more profitable accounts at medium giant.

分部報告使我們能夠更好地了解成本與收入的平衡。我們相信利潤率還有進一步提高的機會，我們將繼續專注於透過中型巨頭規模更大、利潤更高的帳戶來增加收入。

The expansion of the medium giant agency operating margin is a priority, and its improvement is a result of two new large clients being added in a disciplined approach to expense management. In addition to the agency, Medium Giant did see softness in our print advertising related to the Dallas Morning News, which was down 12.2% on a year-over-year basis.

擴大中型巨型代理機構的營業利潤率是當務之急，而利潤率的提高是透過嚴謹的費用管理方法增加了兩個新的大客戶來實現的。除了代理商之外，Medium Giant 還發現與《達拉斯晨報》相關的平面廣告也出現疲軟，比去年同期下降了 12.2%。

I was happy to see this trend start to improve in April, but as Katie mentioned, we continue to monitor how our clients are responding to these uncertain economic conditions. The softness in the economy often presents itself in the print advertising line first because clients are able to stop this method of advertising more quickly than they are others.

我很高興看到這一趨勢在四月開始好轉，但正如凱蒂所提到的，我們將繼續監測我們的客戶如何應對這些不確定的經濟狀況。經濟疲軟通常首先體現在印刷廣告領域，因為客戶能夠比其他廣告方式更快地停止這種廣告方式。

Turning to digital membership, while digital volume grew slightly quarter-over-quarter, the growth has been slower than we expected. We knew the transition to our new dynamic paywall that occurred in March would take time for the AI algorithms to learn the uniqueness of our audience, but it took a little bit longer than we expected.

談到數位會員，雖然數位會員數量較上季略有成長，但成長速度低於我們的預期。我們知道，從三月開始向新的動態付費牆過渡需要一些時間，讓人工智慧演算法了解我們受眾的獨特性，但這比我們預期的要長一些。

Now that the tool is established, we are seeing the results, we're expecting with a 16% lift in starts coming from the new paywall versus our former meter strategy.

現在該工具已經建立，我們看到了結果，我們預計與我們以前的計量策略相比，新的付費牆將帶來 16% 的啟動率提升。

In addition to the paywall, we have also been rolling out our new video player and user commenting tools across the site. Both tools are intended to increase user engagement while adding a premium source of digital advertising revenue.

除了付費牆之外，我們還在整個網站上推出了新的影片播放器和用戶評論工具。這兩種工具都旨在提高用戶參與度，同時增加優質的數位廣告收入來源。

The Board and I remain confident in our return to growth plan in the second quarter is an important milestone in our plan for this year to ensure the expense savings from our printing transition will materialize as planned.

董事會和我仍然對我們第二季度恢復成長計劃充滿信心，這是我們今年計劃中的一個重要里程碑，以確保印刷轉型帶來的費用節省能夠按計劃實現。

In addition to these expense savings, we are considering where we need to invest in the business to deliver sustainable revenue growth. The investments we plan to evaluate will likely range from portfolio expansion to the continued evolution of our digital products and features. However, the timing and ultimate investment decisions will be evaluated over the next 90 days.

除了節省這些費用之外，我們還在考慮需要在哪些業務上進行投資，以實現可持續的收入成長。我們計劃評估的投資可能包括投資組合擴張以及數位產品和功能的持續發展。不過，時間和最終的投資決策將在未來 90 天內進行評估。

This work will continue over these months, and we will be able to provide further guidance on those initiatives and what it means for shareholders at the end of the second quarter. In closing, these first four months of 2025 have been significant in terms of accomplishments and alignment with our plan, and I'm optimistic about what that means for the company moving forward.

這項工作將在未來幾個月持續進行，我們將能夠在第二季末就這些舉措及其對股東的意義提供進一步的指導。最後，2025 年的前四個月在成就和與計畫的一致性方面具有重要意義，我對這對公司未來發展的意義感到樂觀。

So, Sarah, we are now ready for questions.

那麼，莎拉，我們現在可以回答問題了。

(Operator instructions)

（操作員指示）

Adam Ballantyne, Gondolin Capital.

亞當·巴蘭坦（Adam Ballantyne），Gondolin Capital。

Hey, good morning, everyone. Thanks for taking the questions.

嘿，大家早安。感謝您回答這些問題。

Good morning, Adam.

早安，亞當。

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.

嘿，那麼，關於利潤成長，預計 2024 年底的利潤成長約為 500 萬美元。我想知道你們是否仍在朝著這個目標前進，到 2025 年，我想是的——這確實意味著幾百萬美元，而且與一年前相比也是如此。我似乎知道我們現在處於什麼位置。

Yeah, Adam, no, we still fully expect to realize the $5 million of savings. As I made a comment in my prepared remarks, we won't start realizing those savings until May. Between January and April we were running in both facilities, and we had additional staff. So those savings you'll start to see realize in the month of May, but again, it's going to be an annualized number. So it's going to be over the months. It's not all going to happen in one specific quarter.

是的，亞當，不，我們仍然完全希望實現 500 萬美元的節省。正如我在準備好的演講中所說，我們要到五月才能開始實現這些節省。一月至四月期間，我們在兩個設施內運營，並且增加了工作人員。因此，您將在五月開始看到這些節省，但同樣，這將是一個年化數字。所以這將會持續數月。所有的事情不會在某個特定的季度發生。

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.

好的。因此，也許這種情況會提前三個月發生，但這是否像是一種形式上的變化，或者說，是一種運行率的變化？是否預期今年夏天、今年秋天能夠達到這樣的獲利水準？

Yeah, we're going to, I'm sorry, we're going to start seeing the expense savings coming through in May. So you're going to see a partial of that in the second quarter and then a full third quarter and fourth quarter.

是的，很抱歉，我們將在五月開始看到費用節省。因此，您將在第二季看到部分成長，然後在第三季和第四季看到全部成長。

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.

好的，太好了。謝謝。然後在數位收入方面，就你們針對演算法所採取的改變策略而言，它有助於了解你們的受眾。我想第一個問題是，您能否解釋一下與以前的策略相比，啟動量增加了 16% 是什麼意思？然後，第二部分是 4 月的情況如何，以及到目前為止，第二季度的用戶數量是否仍在增長。

Yeah, Adam, it's a great question. So let me clarify the 16%. So the meter is our largest source of starts. We have other sources as well. For example, we have an e-mail list of over a million people who take newsletters, but they don't, they're not subscribing. So that's one where, we have different methods of how we acquire subscribers, but the meter is the largest.

是的，亞當，這是一個很好的問題。那麼讓我來解釋一下 16%。因此，儀表是我們最大的啟動來源。我們還有其他消息來源。例如，我們有一個超過一百萬人的電子郵件列表，他們都接收新聞通訊，但他們卻沒有訂閱。因此，我們有不同的方法來獲取用戶，但電錶是最大的方法。

So our former model, which was just set by, I'll just try to simplify, it was a hard business rule of how often you came to the site or what you were reading. So the meter, which is our number one source of starts, we transitioned that to what's called a dynamic paywall, which is basically it's an AI driven algorithm which helps us understand what is the uniqueness of the person hitting the meter and what is their propensity to subscribe? And so using the AI for the meter, we are generating 16% more starts of people who are hitting our old business rules of a meter versus this new dynamic meter.

因此，我們之前的模型只是由…設定的，我只是想嘗試簡化，這是一個嚴格的商業規則，規定了您訪問網站的頻率或您正在閱讀的內容。因此，計費器（我們啟動的首要來源）被我們轉變為所謂的動態付費牆，它基本上是一種人工智慧驅動的演算法，可以幫助我們了解點擊計費器的人的獨特性以及他們的訂閱傾向是什麼？因此，使用人工智慧進行計量，與新的動態計量相比，我們達到了舊計量業務規則的人數增加了 16%。

So it's a 16% more starts than they were in the trailing 90 days before we implemented, really when the -- when it was, when the AI algorithm had at least four to five weeks to learn, to kind of learn our audience.

因此，與我們實施之前的 90 天相比，啟動次數增加了 16%，而當時，AI 演算法至少有四到五週的時間來學習，了解我們的受眾。

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.

這顏色確實很有幫助。謝謝，格蘭特。然後就第二部分而言，我只是有點好奇訂閱用戶的趨勢如何，是否仍然保持成長，與去年同期相比成長。

Yeah, it's still growing, Adam, but I'll tell you, as I mentioned in my prepared remarks, it's not growing as fast as we would like. So actually today we're testing a new, a little bit more aggressive offer. We were at $1 for three months. On starts, we went to $1 for six months, this morning we've studied other markets and we think that will help us galvanize and kind of get this volume up a bit more.

是的，它仍在增長，亞當，但我要告訴你，正如我在準備好的發言中提到的那樣，它的增長速度並不像我們希望的那麼快。所以實際上今天我們正在測試一個新的、更積極的提議。我們三個月的費用是 1 美元。一開始，我們的價格為 1 美元，持續了六個月，今天早上我們研究了其他市場，我們認為這將有助於我們激勵並進一步提高交易量。

So, again, we're just continuing with a sense of urgency this year is all, we are so focused on volume. And, we're going to just keep staying on top of this with as many tactics as we have studied and feel like are going to be beneficial not only to the volume, but obviously ultimately to the revenue.

所以，再說一次，我們今年只是繼續保持緊迫感，我們非常注重數量。而且，我們將繼續利用我們研究過的各種策略來保持領先地位，這些策略不僅有利於銷量，而且顯然最終也有利於收入。

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 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.

好的，然後我再問一個問題，關於您在廣告方面看到的需求。我想知道您是否可以評論一下第一季度真正疲軟的領域，或者在垂直領域比其他領域更強的領域，有很多企業，特別是在德克薩斯地區，一些房屋建築商，DR Horn，德克薩斯州的 LGI AutoNation 都大幅增加了廣告，這些廣告本質上是本地化的。

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.

所以我想，我有點驚訝地看到廣告業的某些疲軟。是的，所以我可能會有所幫助，也許可以介紹今年到目前為止的一些垂直行業，以及哪些行業的指數可能被高估或低估。

Yeah, happy to do it. I mean, let me talk about it on the both sides of the advertising business. Let's start with the Dallas Morning News, where really, let's just say print in the digital advertising in our paper and on our site. We, that our category diversity, Adam is very spread out. So we do not have a category or a vertical of business over 15% of that makeup. So it's very diversified. We have seen some softness interestingly, we don't have a lot of automotive business, Adam, so that did not affect us much.

是的，很高興這麼做。我的意思是，讓我從廣告業務的雙方來談論這個問題。讓我們從《達拉斯晨報》開始吧，實際上，我們只是說在我們的報紙和網站上印刷數位廣告。我們，我們的類別多樣性，亞當非常分散。因此，我們沒有一個類別或垂直業務佔該結構的 15% 以上。所以它非常多樣化。有趣的是，我們看到了一些疲軟，亞當，我們的汽車業務並不多，所以這對我們沒有太大影響。

Our real estate business, though, just especially because the inventory has slowed down, especially on the high end real estate, which is where advertisers come to us, we saw the real estate start to soften. We also have seen a little bit of that in retail.

然而，我們的房地產業務，特別是由於庫存放緩，尤其是高端房地產，也就是廣告商來找我們的地方，我們看到房地產開始疲軟。我們在零售業也看到了一些這樣的情況。

I think retailers right now, just with the questions on tariffs or the questions on, just their, the consumer demand, we saw a little bit of pullback there. And I would say the third recruiting for us is a meaningful category, and we, and again, I don't think any of us are surprised by this, but obviously with the uncertainty in the economy, we saw some of the different methods people use with us to recruit talent slow down.

我認為，就目前零售商而言，僅就關稅問題或消費者需求問題而言，我們看到了一點回檔。我想說，第三次招募對我們來說是一個有意義的類別，而且我們，再說一次，我認為我們中沒有人對此感到驚訝，但顯然由於經濟的不確定性，我們看到人們用來招募人才的一些不同方法正在放緩。

Now I will say there's that is offset a bit by the financial services category at the Dallas Morning News, which continues to be very robust. I think they're, especially with people at CD rates, for example, Adam, people who are trying to move money to safer havens, we've definitely seen more there.

現在我要說的是，達拉斯晨報的金融服務類別稍微抵消了這一影響，該類別仍然非常強勁。我認為，尤其是那些持有 CD 利率的人，例如亞當，那些試圖將資金轉移到更安全避風港的人，我們在那裡肯定看到了更多這樣的情況。

On the agency side, we are very, our two largest categories are tourism and they are basically academics. We have a lot of charters, a couple of very significant charter school clients, and that's been, not as impacted. The tourism piece, especially for state tourism boards would probably have a lag to that where that probably if the economy is soft in '25, that probably wouldn't really be seen in the agency till '26. So the agencies are definitely steadier then we're seeing on the print side, but as I mentioned in my prepared remarks, I've been in this business a long time and unfortunately it is easier for an advertiser to turn off a print ad campaign that it is something like an outdoor billboard campaign because of the complexity of kind of getting those advertisements started and stopped. So I'll pause there.

在代理商方面，我們最大的兩個類別是旅遊業和學術業。我們有很多特許學校，一些非常重要的特許學校客戶，但他們受到的影響並不大。旅遊業，特別是州旅遊局的旅遊業可能會有一定的滯後，如果 25 年經濟疲軟，那麼該機構可能要到 26 年才會真正看到這種滯後。因此，與印刷廣告相比，廣告代理商肯定更加穩定，但正如我在準備好的發言中提到的那樣，我從事這個行業已經很長時間了，不幸的是，對於廣告商來說，關閉印刷廣告活動比關閉戶外廣告牌活動更容易，因為這些廣告的開始和停止比較複雜。我就此暫停一下。

Really helpful for the color. Thanks, Grant. I'll pop back in.

對顏色確實有幫助。謝謝，格蘭特。我會再回來的。

(Operator instructions)

（操作員指示）

Adam Ballantyne, Gondolin Capital.

亞當·巴蘭坦（Adam Ballantyne），Gondolin Capital。

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.

好的，我把麥克風拿回來。就你們在報紙方面使用的噸數而言，這對利潤率造成了一些拖累。我認為那裡的噸位增加了 32%，我只是好奇，隨著新印刷設施的增加，從結構上講，今年剩餘時間的噸位是否會增加 30%，或者，就某種營運資本而言，一次性增加，通過損益表支出。我只是有點好奇我們是否可以在那裡得到一些顏色，因為它確實對利潤率有一定的拖累。

Adam, it's a great question and it was specific to the quarter, as we were running both facilities and actually testing our new print, our new printing presses. We had to increase our newsprint purchasing, and that's where you saw the newsprint usage increase in the first quarter, but it'll normalize going into the second quarter.

亞當，這是一個很好的問題，而且這個問題是針對本季的，因為我們正在運行這兩​​個設施，並且實際上正在測試我們的新印刷品、我們的新印刷機。我們必須增加新聞紙的購買量，這就是為什麼您看到第一季新聞紙使用量增加的原因，但進入第二季度它將恢復正常。

Okay, and then when you say normalize, is that sort of back to 2024 levels, which were fairly consistent on a quarterly basis?

好的，那麼當您說正常化時，這是否會回到 2024 年的水平，即按季度來看相當一致？

Well, the usage will go back to the '24 levels, but remember, the pricing could go up. We have not been hit with tariffs. So when you're thinking about the actual expense, we do first in first out. And so depending on the price, the pricing and the expense may move, but the tonnage that we're using will go back to the '24 levels.

好吧，使用量將回到 24 個級別，但請記住，價格可能會上漲。我們沒有受到關稅的打擊。因此，當您考慮實際費用時，我們會按照先進先出的原則。因此，根據價格，定價和費用可能會變動，但我們使用的噸位將回到 24 噸的水平。

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?

好的，完美。謝謝。然後回到退休金問題，我想您已經注意到，需要支付 1400 萬至 1600 萬美元來履行義務，我只是想知道，情況仍然如此嗎？然後我們會在第二季的現金流量表和資產負債表中看到這筆資金的流動嗎？

Yeah, Adam, it will be in Q2, but it was the $10 million that I referenced in my remarks. So we spent $10 million of company cash to fully fund the pension and that was less than the $14 million to $16 million that we had expected.

是的，亞當，它將在第二季度出現，但我在發言中提到的是 1000 萬美元。因此，我們花費了 1000 萬美元的公司現金來全額資助退休金，這比我們預期的 1,400 萬至 1,600 萬美元要少。

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?

哦，完美。抱歉，我遺漏了這一點。謝謝。然後，關於中型巨頭盈利能力的最後一個問題，有趣的是，鑑於業務（包括營銷、媒體、服務）同比仍有小幅下滑，我很好奇，盈利水平是否會從現在開始繼續上升，或者達到中等個位數範圍並實現盈利，還是全年仍會相當不穩定？

So Adam, first of all, it's a good pick up. Part of what we've done to get there is John Keiker, who leads our agency, has been very intentional about us, basically stopping our relationships with smaller clients and really attracting larger clients to the agency. In a professional services business like Medium Giants, sometimes you can spend as much time on a small client as you can on a big one, and that obviously impacts margins.

所以亞當，首先，這是一個很好的選擇。為了實現這一目標，我們採取的部分措施是得益於我們代理機構負責人約翰·凱克 (John Keiker) 的用心經營，他基本上終止了我們與小客戶的關係，並真正吸引大客戶到代理機構。在像 Medium Giants 這樣的專業服務行業中，有時你在小客戶身上花費的時間可能和在大客戶身上花費的時間一樣多，這顯然會影響利潤。

He's done an exceptional job and that whole team has of really just kind of discontinuing those relationships with those small clients while focusing on the bigger ones. That's what's helping the margin. And I alluded to it in my prepared remarks though, Adam, but no, I think the kind of margin that we've seen in the first quarter, we need to see that not only continue where it is, but I want it to improve. Now how much bigger can that margin become, time will tell, but I want to see that improve into the double digits. I just don't know how far into the double digits we will ultimately get.

他做得非常出色，整個團隊實際上已經終止了與小客戶的關係，轉而專注於大客戶。這對利潤有幫助。亞當，雖然我在準備好的發言中提到了這一點，但不，我認為我們在第一季度看到的利潤率，我們不僅需要看到它繼續保持現狀，而且我希望它能夠改善。現在，這個差距還能擴大多少，時間會證明一切，但我希望看到差距擴大到兩位數。我只是不知道我們最終能達到多遠的兩位數。

Great. Thanks for the color guys. Appreciate it.

偉大的。謝謝你們的顏色。非常感謝。

Sure thing. Thank you.

當然可以。謝謝。

This concludes the question and answer session. I'll turn the call to Cathy Collins for closing remarks.

問答環節到此結束。我將請 Cathy Collins 致結詞。

Thank you, Sarah, for your assistance this morning and to everyone who has joined, thank you again for listening to our first quarter 2025 results. And we look forward to updating everyone on our second quarter 2025 earnings call, which will be held in late July or early August.

謝謝莎拉今天早上的幫助，也感謝所有參加的人，再次感謝你們聆聽我們 2025 年第一季的業績。我們期待在 2025 年第二季財報電話會議上向大家通報最新情況，該電話會議將於 7 月底或 8 月初舉行。

This concludes today's conference call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。