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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2023

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file no. 1-33741

DallasNews CORPORATION

(Exact name of registrant as specified in its charter)


Texas		38-3765318
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

P. O. Box 224866, Dallas, Texas 75222-4866		(214) 977-8869
(Address of principal executive offices, including zip code)		(Registrant’s telephone number, including area code)
Former name, former address and former fiscal year, if changed since last report.
None

Securities registered pursuant to Section 12(b) of the Act:




Title of each class	Trading Symbol	Name of each exchange on which registered
Series A Common Stock, $0.01 par value	DALN	The Nasdaq Stock Market LLC

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large Accelerated Filer: ¨

Accelerated Filer: ¨

Non-Accelerated Filer: þ

Smaller Reporting Company: þ

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No þ

Shares of Common Stock outstanding at October 19, 2023: 5,352,490 shares (consisting of 4,737,792 shares of Series A Common Stock and 614,698 shares of Series B Common Stock).

Table of Contents

DALLASNEWS CORPORATION

FORM 10-Q

TABLE OF CONTENTS




		Page
PART I
Item 1.	Financial Information		PAGE 3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		PAGE 16
Item 4.	Controls and Procedures		PAGE 23

PART II
Item 1.	Legal Proceedings		PAGE 24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		PAGE 24
Item 3.	Defaults Upon Senior Securities		PAGE 24
Item 4.	Mine Safety Disclosures		PAGE 24
Item 5.	Other Information		PAGE 24
Item 6.	Exhibits		PAGE 25
Signatures			PAGE 28
Exhibit Index			PAGE 29

DallasNews Corporation Third Quarter 2023 on Form 10-Q

Table of Contents

PART I

Item 1. Financial Information

DallasNews Corporation and Subsidiaries

Consolidated Statements of Operations



	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands, except share and per share amounts (unaudited)	2023		2022		2023		2022
Net Operating Revenue:
Advertising and marketing services	$	14,699	$	17,525	$	46,231	$	51,246
Circulation		16,194		16,230		48,201		48,576
Printing, distribution and other		3,606		3,933		11,281		11,726
Total net operating revenue		34,499		37,688		105,713		111,548
Operating Costs and Expense:
Employee compensation and benefits		16,565		16,428		51,174		49,642
Other production, distribution and operating costs		16,778		19,691		52,099		58,665
Newsprint, ink and other supplies		2,382		3,161		6,912		8,059
Depreciation		388		699		1,118		2,127
Asset impairments		—		—		—		102
Total operating costs and expense		36,113		39,979		111,303		118,595
Operating loss		(1,614)		(2,291)		(5,590)		(7,047)
Other income (loss), net		342		(94)		1,082		(48)
Loss Before Income Taxes		(1,272)		(2,385)		(4,508)		(7,095)
Income tax provision		139		201		397		550
Net Loss	$	(1,411)	$	(2,586)	$	(4,905)	$	(7,645)

Per Share Basis
Net loss
Basic	$	(0.26)	$	(0.48)	$	(0.92)	$	(1.43)
Number of common shares used in the per share calculation:
Basic		5,352,490		5,352,490		5,352,490		5,352,490

See the accompanying Notes to the Consolidated Financial Statements.

‎

DallasNews Corporation Third Quarter 2023 on Form 10-Q 3

Table of Contents

DallasNews Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)



	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands (unaudited)	2023		2022		2023		2022
Net Loss	$	(1,411)	$	(2,586)	$	(4,905)	$	(7,645)
Other Comprehensive Income (Loss), Net of Tax:
Amortization of actuarial (gains) losses		(10)		130		(30)		391
Total other comprehensive income (loss), net of tax		(10)		130		(30)		391
Total Comprehensive Loss	$	(1,421)	$	(2,456)	$	(4,935)	$	(7,254)

See the accompanying Notes to the Consolidated Financial Statements.

‎

DallasNews Corporation Third Quarter 2023 on Form 10-Q 4

Table of Contents

DallasNews Corporation and Subsidiaries

Consolidated Balance Sheets



	September 30,		December 31,
In thousands, except share amounts (unaudited)	2023		2022
Assets
Current assets:
Cash and cash equivalents	$	13,782	$	27,825
Short-term investments		10,672		—
Accounts receivable (net of allowance of $189 and $490 at September 30, 2023 and December 31, 2022, respectively)		10,407		14,023
Inventories		1,860		2,725
Prepaids and other current assets		4,159		3,352
Total current assets		40,880		47,925
Property, plant and equipment, at cost		313,325		313,440
Less accumulated depreciation		(306,031)		(306,002)
Property, plant and equipment, net		7,294		7,438
Operating lease right-of-use assets		16,439		14,811
Deferred income taxes, net		304		282
Other assets		1,795		1,809
Total assets	$	66,712	$	72,265
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	4,413	$	5,041
Accrued compensation and benefits		5,777		4,154
Other accrued expense		4,189		4,060
Contract liabilities		10,420		9,504
Total current liabilities		24,799		22,759
Long-term pension liabilities		18,778		19,455
Long-term operating lease liabilities		17,251		16,546
Other post-employment benefits		968		982
Other liabilities		58		160
Total liabilities		61,854		59,902
Shareholders’ equity:
Preferred stock, $0.01 par value; Authorized 2,000,000 shares; none issued		—		—
Common stock, $0.01 par value; Authorized 31,250,000 shares
Series A: issued 5,216,257 and 5,216,237 shares at September 30, 2023 and December 31, 2022, respectively		52		52
Series B: issued 614,698 and 614,718 shares at September 30, 2023 and December 31, 2022, respectively		6		6
Treasury stock, Series A, at cost; 478,465 shares held at September 30, 2023 and December 31, 2022		(13,443)		(13,443)
Additional paid-in capital		494,563		494,563
Accumulated other comprehensive loss		(41,410)		(41,380)
Accumulated deficit		(434,910)		(427,435)
Total shareholders’ equity		4,858		12,363
Total liabilities and shareholders’ equity	$	66,712	$	72,265

See the accompanying Notes to the Consolidated Financial Statements.

‎

DallasNews Corporation Third Quarter 2023 on Form 10-Q 5

Table of Contents

DallasNews Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity



	Nine Months Ended September 30, 2023 and 2022
	Common Stock						Treasury Stock
In thousands, except share and per share amounts (unaudited)	Shares Series A	Shares Series B	Amount		Additional ‎Paid-in ‎Capital		Shares ‎Series A	Amount		Accumulated ‎Other ‎Comprehensive ‎Loss		Accumulated ‎Deficit		Total
Balance at December 31, 2021	5,216,045	614,910	$	58	$	494,563	(478,465)	$	(13,443)	$	(32,406)	$	(406,195)	$	42,577
Net loss	—	—		—		—	—		—		—		(7,645)		(7,645)
Other comprehensive income	—	—		—		—	—		—		391		—		391
Conversion of Series B to Series A	163	(163)		—		—	—		—		—		—		—
Dividends declared ($1.98 per share)	—	—		—		—	—		—		—		(10,598)		(10,598)
Balance at September 30, 2022	5,216,208	614,747	$	58	$	494,563	(478,465)	$	(13,443)	$	(32,015)	$	(424,438)	$	24,725
Balance at December 31, 2022	5,216,237	614,718	$	58	$	494,563	(478,465)	$	(13,443)	$	(41,380)	$	(427,435)	$	12,363
Net loss	—	—		—		—	—		—		—		(4,905)		(4,905)
Other comprehensive loss	—	—		—		—	—		—		(30)		—		(30)
Conversion of Series B to Series A	20	(20)		—		—	—		—		—		—		—
Dividends declared ($0.48 per share)	—	—		—		—	—		—		—		(2,570)		(2,570)
Balance at September 30, 2023	5,216,257	614,698	$	58	$	494,563	(478,465)	$	(13,443)	$	(41,410)	$	(434,910)	$	4,858



	Three Months Ended September 30, 2023 and 2022
	Common Stock						Treasury Stock
In thousands, except share and per share amounts (unaudited)	Shares ‎Series A	Shares ‎Series B	Amount		Additional ‎Paid-in ‎Capital		Shares ‎Series A	Amount		Accumulated ‎Other ‎Comprehensive ‎Loss		Accumulated ‎Deficit		Total
Balance at June 30, 2022	5,216,103	614,852	$	58	$	494,563	(478,465)	$	(13,443)	$	(32,145)	$	(412,967)	$	36,066
Net loss	—	—		—		—	—		—		—		(2,586)		(2,586)
Other comprehensive income	—	—		—		—	—		—		130		—		130
Conversion of Series B to Series A	105	(105)		—		—	—		—		—		—		—
Dividends declared ($1.66 per share)	—	—		—		—	—		—		—		(8,885)		(8,885)
Balance at September 30, 2022	5,216,208	614,747	$	58	$	494,563	(478,465)	$	(13,443)	$	(32,015)	$	(424,438)	$	24,725
Balance at June 30, 2023	5,216,257	614,698	$	58	$	494,563	(478,465)	$	(13,443)	$	(41,400)	$	(432,642)	$	7,136
Net loss