Q2 2024 DallasNews Corp Earnings Call

Your conference will begin momentarily. Please continue to hold.

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Operator: Ladies and gentlemen, thank you for standing by and welcome to the Dallas News Corporation investor Q2 earnings call. This call is being recorded, and a replay will be available starting at 11 a.m. Central Time today through midnight on August 7th. To access the replay, dial 866-207-1041 and enter access code 4993908. Once again, replay will be available starting 11 a.m. Central Time today through midnight on August 7th, and the number to call is 866-207-1041 and the access code to enter is 4993908.

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Dallas News Corporation Investor Q2 earnings call. This call is being recorded, and a replay will be available starting at 11 a.m. Central Time today through midnight on August 7th. To access the replay, dial 866-207-1041 and enter access code 4993908. Once again, replays will be available starting at 11 a.m. Central Time today through midnight on August 7th, and the number to call is 866-207-1041, and the access code to enter is 4993908.

Operator: Listen for your name at the end of the presentation during the Q&A session. At this time, I would like to turn the conference call over to your host, Vice President and Controller of Dallas News Corporation, Gary Cobleigh. Please go ahead, sir.

Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to the Dallas News Corporation Investor Q2 earnings call. This call is being recorded and a replay will be available starting at 11, a M. Central time today through midnight on August 7th to access the replay dial 86620710.

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Enter access code 49, 93908, well once again, a replay will be available starting at 11, a M. Central time today through midnight on August 7th and the number to call is 8662071041.

The access code to enter as 49939008.

Operator: At this time, all participants are in listen-only mode. Later, you will have an opportunity to ask questions for those listening by phone. You may queue up at any time during the presentation by pressing one, then zero on your phone's keypad. Pressing one zero second time will remove you from the queue and withdraw your question, and you may queue up any time. Listen for your name at the end of the presentation during the Q&A session.

Operator: At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions. For those listening by phone, you may queue up at any time during the presentation by pressing 1, then 0 on your phone's keypad. Pressing 1, then 0 a second time will remove you from the queue and withdraw your question. You may queue up at any time. Listen for your name at the end of the presentation during the Q&A session. At this time, I would like to turn the conference call over to your host, Vice President and Controller of Dallas News Corporation, Gary Cobleigh. Please go ahead, sir.

Speaker Change: At this time all participants are in a listen only mode. Later, you will have an opportunity to ask questions for those listening by phone you makes you up at any time during the presentation by pressing one then zero on your phone's keypad are pressing one zero a second time will remove you from the queue and withdraw your question.

Speaker Change: And you make up any time listen for your name at the end of the presentation during the Q&A session.

Operator: At this time, I would like to turn the conference call over to your host, Vice President and Controller Dallas News Corporation, Gary Kobley. Please go ahead, sir.

Gary Cobleigh: At this time I would like to turn the conference call over to your host Vice President and Controller Dallas News Corporation, Gary Coberly. Please go ahead Sir.

Gary Cobleigh: Good morning, everyone. This is Gary Kobley, Vice President and Controller of Dallas News Corporation. Welcome to our second quarter of 2024 investor call.

Gary Cobleigh: Good morning, everyone. This is Gary Cobleigh, Vice President and Controller of Dallas News Corporation. Welcome to our second quarter 2024 investor presentation. I'm joined by Kathy Collins, Dallas News' Chief Financial Officer, who will be reviewing financial results, Katie Murray, President of Dallas News, and Grant Moise, Chief Executive Officer, who will provide brief business remarks. Yesterday afternoon, we issued a press release announcing our second quarter 2024 results, and we filed our second quarter 10-Q. All these are posted on our website, dallasnewscorporation.com, under the Investor Relations section.

Gary Cobleigh: Good morning, everyone. This is Gary Cobleigh, Vice President and Controller of Dallas News Corporation. Welcome to our second quarter 2024 investor presentation. I'm joined by Cathy Collins, Dallas News' Chief Financial Officer, who will be reviewing financial results, Katie Murray, President of Dallas News, and Grant Moise, Chief Executive Officer, who will provide brief business remarks. Yesterday afternoon, we issued a press release announcing our second quarter 2024 results, and we filed our second quarter 10-Q. All these are posted on our website, dallasnewscorporation.com, under the Investor Relations section.

Speaker Change: Good morning, everyone. This is Gerry Connolly, Vice President and controller.

Speaker Change: Alex News Corporation welcome to our second quarter 2024 Investor call.

Gary Cobleigh: I'm joined by Kathy Collins, Dallas News' chief financial officer, who will be reviewing financial results, Katie Murray, President of Dallas News, and great-moist chief executive officer, who will provide brief business remarks. Yesterday afternoon, we issued a press release announcing second quarter 2024 results, and we filed our second quarter 10-Q. All of these are posted on our website, DallasNewsCorporation.com, under the Investor Relations section. Unless otherwise specified, comparisons used on today's call measure second quarter 2024 performance against second quarter 2023 performance.

Speaker Change: I'm joined by can be calling Dallas news as Chief Financial Officer, who will be reviewing financial results Katie Murray President of Dallas News and Great more East Chief Executive Officer, who will provide brief business remarks.

Speaker Change: Yesterday afternoon, we issued a press release announcing second quarter 2020 for results and we filed our second quarter 10-Q. All of these are posted on our website Dallas News Corporation Dot com under the Investor Relations section.

Gary Cobleigh: Unless otherwise specified, comparisons used on today's call measure a second quarter 2024 performance against a second quarter 2023 performance. Our discussion today will include forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those statements. The company assumes no obligation to update the information in this communication except as otherwise required by law.

Gary Cobleigh: Unless otherwise specified, comparisons used on today's call measure a second quarter 2024 performance against a second quarter 2023 performance. Our discussion today will include forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those statements. The company assumes no obligation to update the information in this communication except as otherwise required by law.

Speaker Change: Unless otherwise specified comparisons used on todays call measure second quarter 2020 for performance against second quarter 2023 performance. Our discussion today will include forward looking statements forward looking statements are subject to risks uncertainties and other factors that could cause actual results to differ materially from those statements.

Gary Cobleigh: Our discussion today will include forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those statements. The company assumes no obligation to update the information in this communication, except as otherwise required by law. Additional information about these factors is being held in the company's press releases and publicly available filings with the SEC.

The company assumes no obligation to update the information in this communication, except as otherwise required by law.

Speaker Change: Additional information about these factors is detailed in the company's press releases and publicly available filings with the SEC.

Gary Cobleigh: 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 gap to non-gap financial measures is included in with our press release.

Gary Cobleigh: Additional information about these factors is detailed in the company's press releases and publicly available filings with the FCC. 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. I'll now turn the call over to Cat.

Gary Cobleigh: Additional information about these factors is detailed in the company's press releases and publicly available filings with the FCC. 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. I'll now turn the call over to Cat.

Speaker Change: 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.

Speaker Change: A reconciliation of GAAP to non-GAAP financial measures is included with our press release.

Catherine Collins: I'll now turn the call over to Kathy. Good morning, everyone, and thank you for joining today's call. On a gas basis for the quarter, Dallas News Corporation reported net income of $1.5 million or $0.27 cents per share and operating income of $600,000. In Q2 last year, we reported a net loss of $900,000 and an operating loss of $1.2 million. On a non-gap basis for the quarter, we reported adjusted operating income of $1.2 million and improvement of $1.4 million when compared to an adjusted operating loss of $250,000 reported for the same period last year. The improvement is primarily due to expense savings of $2.3 million in distribution, $2.1 million in employee compensation and benefits, and $1 million in newsprint, partially offset by a total revenue decline of $4 million that is primarily due to the decision in the third quarter of 2023 to end the shared mail program to deliver weekly preprint and print-only editions of our news publications.

Speaker Change: Now ill turn the call over to Kathy.

Catherine G. Collins: Good morning, everyone, and thank you for joining today's call. On a GAAP basis for the quarter, Dallas News Corporation reported net income of $1.5 million, or $0.27 per share, and operating income of $600,000. In Q2 last year, we reported a net loss of $900,000 and an operating loss of $1.2 million. On a non-GAAP basis for the quarter, we reported adjusted operating income of $1.2 million, an improvement of $1.4 million when compared to an adjusted operating loss of $250,000 recorded for the same period last year.

Kathy Collins: Good morning everyone and thank you for joining today's call. On a gap basis for the quarter, Dallas News Corporation reported net income of $1.5 million or $0.27 per share and operating income of $600,000. In Q2 last year, we reported a net loss of $900,000 and an operating loss of $1.2 million. On a non-GAAP basis for the quarter, we reported adjusted operating income of $1.2 million, an improvement of $1.4 million when compared to an adjusted operating loss of $250,000 recorded for the same period last year.

Kathy: Good morning, everyone and thank you for joining today's call.

Catherine G. Collins: The improvement is primarily due to expense savings of $2.3 million in distribution, $2.1 million in employee compensation and benefits, and $1 million in newsprint, partially offset by a total revenue decline of $4 million that is primarily due to the decision in the third quarter of 2023 to end the shared mail program to deliver weekly preprints and print-only editions of our niche publications. All other advertising and marketing services revenue, excluding the discontinued products I just mentioned, increased $400,000, or 3.5%, when compared to the second quarter of 2023.

Kathy: On a GAAP basis for the quarter Dallas News Corporation reported net income of $1 $5 million or 27 cents per share and operating income of 600000.

Kathy: In Q2 last year, we reported a net loss of 900000, and an operating loss of $1 $2 million.

Kathy: On a non-GAAP basis for the quarter, we reported adjusted operating income of $1.2 million, an improvement of $1 4 million when compared to an adjusted operating loss of $250000 reported for the same period last year.

Kathy: The improvement is primarily due to expense savings of $2 $3 million in distributions to <unk> 1 million in employee compensation and benefits and $1 million in newsprint, partially offset by a total revenue decline of $4 million that is primarily due to the decision in the third quarter of 2023.

Kathy: And the shared mail program to deliver weekly preprint and print only additions of any publication.

Catherine Collins: All other advertising and marketing services revenue, excluding the discontinued product that I just mentioned, increased $400,000 or 3.5% when compared to the second quarter of 2023. This is primarily due to classified advertising that continues to be a steady source of revenue for us. Circulation revenue increased $200,000 or 1.2% driven by our focus on pricing, specifically in digital subscriptions. Moving forward, the company will adjust its focus to find the optimal balance between volume of price, with the ultimate goal of generating the most digital subscription revenue. Digital only subscription decreased 7,704 or 11.2% compared to Q2 last year.

Kathy: All other advertising and marketing services revenue, excluding the discontinued products I, just mentioned increased $400000 or three 5% when compared to the second quarter of 2023. This is primarily due to classified advertising that continues to be a steady source of revenue for us.

Catherine G. Collins: This is primarily due to classified advertising, which continues to be a steady source of revenue for us. Circulation revenue increased $200,000 or 1.2%, driven by our focus on pricing, specifically digital subscriptions. Moving forward, the company will adjust its focus to find the optimal balance between volume and price with the ultimate goal of generating the most digital subscription revenue. Digital Only subscriptions decreased 7,704 or 11.2% compared to Q2 last year. Total subscribers, including both home delivery and digital subscribers, were 126,405 as of June 30th, compared to 132,694 as of December 31st and 142,436 as of June of last year.

Speaker Change: Circulation revenue increased $200000 or one 2% driven by our focus on pricing.

Speaker Change: Specifically in digital subscriptions.

Speaker Change: Moving forward the company will adjust its focus to find the optimal balance between volume and price with the ultimate goal of generating the most digital subscription revenue.

Speaker Change: Digital only subscription decreased 700, excuse me 7704, or 11, 2% compared to Q2 last year total.

Catherine Collins: Total subscribers, including both home delivery and digital subscribers, was 126,405 as of June 30th, compared to 132,694 at December 31st. And $142,436 as of June of last year. Other revenue decreased $700,000 primarily due to declines in commercial printing and distribution revenue. On a non-gap basis, total adjusted operating expenses for the quarter improved $5.4 million, driven by extensible to $2.3 million in distribution, and $1 million in this print, primarily resulting from the discontinued products and a decline in the cost in these print, which was down 13.9% compared to prior year. In addition, employee compensation improved $2.1 million.

Speaker Change: Total subscribers, including both home delivery and digital subscribers with 126405 as of June 30, compared to 132694 at December 31, and 142436 as of June of last year.

Catherine G. Collins: Other revenue decreased $700,000 primarily due to declines in commercial printing and distribution revenue. On a non-GAAP basis, total adjusted operating expenses for the quarter improved $5.4 million, driven by expense savings of $2.3 million in distribution and $1 million in newsprint, primarily resulting from discontinued products and a decline in the cost of newsprint, which was down 13.9% compared to the prior year. In addition, employee compensation improved $2.1 million. As of June 30th, headcount was 533, down 111 compared to last year, resulting from the voluntary severance program offered in the fall of 2023 and additional first quarter headcount reductions within Medium Giant.

Speaker Change: Other revenue decreased $700000, primarily due to declines in commercial printing and distribution revenue.

Speaker Change: On a non-GAAP basis total adjusted operating expenses for the quarter improved $5 $4 million driven by expense savings of $2 3 million of distributions and $1 million in newsprint, primarily resulting from the discontinued products and a decline in the cost of newsprint, which was down 13, 9%.

Speaker Change: Compared to prior year. In addition employee compensation improved $2 $1 billion.

Catherine Collins: As of June 30th, headcount was 533,000, down 111 compared to last year, resulting from a voluntary severance program offered in the fall of 2023, an additional first quarter headcount reductions within medium-giant. Consistent with the interim period, the company used the estimated annual effective tax rate methods, which one applies to the Q2 year-to-date income, resulted in a tax benefit of $240,000. We do expect Texas franchise tax extemplator this year. We paid approximately $540,000 of Texas franchise tax for fiscal year 2023 in the second quarter. We continue to have a strong balance sheet with no debt, and as of the end of June, cash and short-term investments were $17.1 million.

Speaker Change: As of June 30th head Count was 533 down 111 compared to last year, resulting from the voluntary severance program offered in the fall of 2023, and additional first quarter head count reductions, but then medium giant.

Catherine G. Collins: Consistent with interim periods, the company used the estimated annual effective tax rate method, which, when applied to the Q2 year-to-date income, resulted in a tax benefit of $240,000. We do expect a Texas Franchise Tax expense later this year. We paid approximately $540,000 of Texas Franchise Tax for fiscal year 2023 in the second quarter. We continue to have a strong balance sheet with no debt, and as of the end of June, cash and short-term investments were $17.1 million.

Speaker Change: Consistent with the interim periods.

Speaker Change: The company used the estimated annual effective tax rate method, which when applied to the Q2 year to date income resulted in a tax benefit of $240000. We do expect Texas franchise tax expense later this year.

Speaker Change: We paid approximately $540000 of Texas franchise tax for fiscal year 2023 in the second quarter.

Speaker Change: We continue to have a strong balance sheet with no debt and as of the end of June cash and short term investments were $17 $1 million and as of July 26, we had $19 1 million in cash and cash equivalents.

Catherine Collins: And as of July 26th, we had $19.1 million in cash and cash equivalents. I was pleased to see the financial progress we made in the second quarter.

Catherine G. Collins: And as of July 26, we had $19.1 million in cash and cash equivalents. I was pleased to see the financial progress we made in the second quarter. As we look to the second half of the year, we will continue our disciplined expense management, but the transition to the new printing facility will require incurring capital and operating costs this year, which Katie will elaborate on. I will now turn the call over to Katie.

Katy: I was pleased to see the financial progress we made in the second quarter as we look to the second half of the year. We will continue our disciplined expense management, but the transition to the new printing facility will require incurring capital and operating cost this year, which Katie will elaborate on I will now turn the call over to Katy.

Catherine Collins: As we look to the second half of the year, we will continue our disciplined expense management, but the transition to the new print facility will require incurring capital and operating costs this year, which Katie will elaborate on.

Katie Murray: I will now turn the call over to Katie. Good morning, everyone. I want to provide an update on our print operation transition. We announced in May and plans for the existing print facility. As a reminder, the transition of the company's print operations to a smaller facility is a pivotal element of our Return to Growth plan. Once the transition is completed, we expect a benefit from annual expense savings of approximately 5 million. On June 28, we entered into a five-year lease for the future printing and production plant in Carrollton, Texas. Modifications have begun to prepare the location for the new press and other equipment, so we can transition printing operations around the beginning of next year as planned.

Mary Kathryn Murray: Good morning, everyone. I want to provide an update on our print operation transition we announced in May and plans for the existing print facility. As a reminder, the transition of the company's print operations to a smaller facility is a pivotal element of our return to growth plan. Once the transition is completed, we expect to benefit from annual expense savings of approximately $5 million.

Katy: Good morning, everyone I.

Katy: I want to provide an update on our print operation transition, we announced in May and plans for the existing print facility.

Katy: As a reminder, the transition of the company's print operations to a smaller facility is a pivotal element of a return to growth plan.

Katy: Once the transition is completed we expect to benefit from annual expense savings of approximately $5 million.

Mary Kathryn Murray: On June 28, we entered into a five-year lease for the future printing and production plant in Carrollton, TX. Modifications have begun to prepare the location for the new press and other equipment so we can transition printing operations around the beginning of next year, as planned. In Q2, we spent $2.9 million in capital for this transition and expect to spend an additional $5 million for the remaining capital needed for the facility. In addition to the news, we will also continue to print and deliver our national partners, including the New York Times, Wall Street Journal, and USA Today. I am very pleased to say that this transition is currently on schedule and is again planned for completion in early 2025.

Katy: On June 28, we entered into a five year lease for the future printing and production plant in Carrollton, Texas mom.

Katy: Modifications have begun to prepare the location of the new press and other equipment. So we can transition printing operations around the beginning of next year as planned.

Katie Murray: In Q2, we spent 2.9 million in capital for this transition and expected to spend an additional five million for the remaining capital needed for the facility. In addition to the news, we will also continue to print and deliver our national partners, including the New York Times, Wall Street Journal, and USA Today. I am very pleased to say that this transition is currently on schedule and has again planned for completion in early 2025. Turning to the current print facility, as a reminder, we own approximately 29 acres and a 620,000 square foot building located in Plano, Texas.

Katy: In Q2, we spent $2 9 million in capital for this transition and expect to spend an additional 5 million for the remaining for the remaining capital needed for the facility.

Katy: In addition to the news we will also continue to print and deliver our national partners, including the New York Times Wall Street Journal and USA today I'm very pleased to say that this transition is currently on schedule and is again planned for completion in early 2025.

Mary Kathryn Murray: Turning to the current print facility, as a reminder, we own approximately 29 acres and a 620,000 square foot building located in Plano, TX. We recently hired Holt Lunsford and Foundry to represent us, and they are already actively marketing the property for sale. The property is owned by Leiden Industrial, which includes Industrial Development and Data Center. We have had a great deal of interest in the property, but it is too early to speculate on when the property could sell and the value of the transaction.

Katy: Turning to the current print facility as a reminder, we own approximately 29 acres and a 620000 square foot building located in Plano, Texas.

Katie Murray: We recently hired Holt Lunsford and Foundry to represent us, and they are already actively marketing the property for sale. The property is owned for live industrial, which includes industrial development and data centers. We have had a great deal of interest in the property, but it is too early to speculate on when the property could sell and the value of the transaction. However, I want to remind everyone that as of December 31, we have approximately 54 million in total net operating loss carryforwards, with 17 million that expires in 2037 and 37 million that does not have an expiration date.

Katy: We recently hired hold one third and boundary to represent us and they are already actively marketing the property for sale.

Katy: The property is owned for light industrial which includes industrial development and data centers.

Katy: We have had a great deal of interest in the property, but it is too early to speculate on when the property could sell and the value of the transaction.

Mary Kathryn Murray: However, I want to remind everyone that as of December 31st, we have approximately $54 million in total net operating loss carry forward, with $17 million that expires in 2037 and $37 million that does not have an expiration date. These NOLs will offset a significant amount of the gain, leading to greater growth proceeds to the company. I will now turn the call over to Grant, who will provide additional insights on the quarter.

Speaker Change: However, I want to remind everyone that as of December 31, we have approximately 54 million in total net operating loss carryforwards with 17 million that expires in 2037, and 37 million that does not have an expiration date. These nols will offset a significant amount of the game.

Katie Murray: These NOLs will offset a significant amount of the game, leading to greater growth proceeds to the company.

Speaker Change: Leading to greater gross proceeds to the company.

Grant Moise: I will now turn the call over to Grant, who will provide additional insights on the quarter. Thanks, Katie, and good morning, everyone. As Kathy noted earlier, we are reporting strong second quarter financial results generated from planned expense savings and revenue growth in key areas.

Grant: I will now turn the call over to grant who will provide additional insights on the quarter.

Grant S. Moise: Thanks, Katie, and good morning, everyone. As Kathy noted earlier, we're reporting strong second-quarter financial results generated from planned expense savings and revenue growth in key areas. The natural question from investors is if we've reached sustainable operating profitability. The answer is not yet, but we are making progress.

Grant: Thanks, Katie and good morning, everyone. As Kathy noted earlier, we're reporting strong second quarter financial results generated from planned expense savings and revenue growth from here is the natural question from investors is if we've reached reach sustainable operating profitability.

Grant Moise: The natural question from investors is if we have reached sustainable operating profitability. The answer is not yet, but we are making progress. The signs of progress that stand out most are our ability to grow revenue from continued operations at medium-giant and to grow circulation revenue at the Dallas Morning News. Medium-giant and circulation revenue are the two largest revenue areas in the company, and having both sources grow is essential to our success.

Grant: The answer is not yet, but we are making progress.

Grant S. Moise: The signs of progress that stand out most are our ability to grow revenue from continued operations at Medium Giant and to grow circulation revenue at the Dallas Morning News. Medium, Giant, and Circulation revenue are the two largest revenue areas in the company, and having both sources grow is essential to our success. I would also like to address the decline in the volume of our digital subscriptions. As I've discussed on previous earnings calls, we have chosen a premium pricing strategy for digital subscriptions. We know, through industry benchmarking, that we are in the top 10% in digital subscription pricing for local news.

Speaker Change: The signs of progress that stand out most or our ability to grow revenue from continued operations at medium giant and to grow circulation revenue at the Dallas morning News medium giant in circulation revenue are the two largest revenue areas in the company and a boat and having both sources grow.

Speaker Change: Central to our success.

Grant Moise: I would also like to address the decline in the volume of our digital subscriptions. As I've discussed on previous earnings calls, we have chosen a premium pricing strategy for digital subscriptions. We know through our industry benchmarking, we are in the top 10% in digital subscription pricing for local news, and while that has contributed to volume the clients over the past year, it has also generated a strong foundation of revenue for the news, which will cover the costs of our newsroom and editorial operations this year. However, while we have grown circulation revenue year over year, we realize we cannot overlook the need for growing volume, and that's a focus of ours going into the second half of 2024.

Speaker Change: I would also like to address the decline in the volume of our digital subscriptions as I've discussed on previous earnings calls, we have chosen a premium pricing strategy for digital subscriptions, we know through our industry benchmarking. We are in the top 10% in digital subscription pricing for local news and why.

Grant S. Moise: And while that has contributed to volume declines over the past year, it has also generated a strong foundation of revenue for the news, which will cover the cost of our newsroom and editorial operations this year. However, while we have grown circulation revenue year over year, we realize we cannot overlook the need for growing volume, and that's a focus of ours going into the second half of 2024. This focus will include enhancing our digital products and technology and testing new price points to find the inflection point where our digital subscription base will return to growth.

Speaker Change: That has contributed to volume declines over the past year. It has also generated a strong foundation of revenue for the news, which will cover the cost of our newsroom and editorial operations. This year.

Speaker Change: However, while we have grown circulation revenue year over year, we realized we cannot overlook the need for growing volume and that's a focus of ours going into the second half of 2020 for.

Grant Moise: This focus will include enhancing our digital products and technology, and testing new price points to find the inflection point where a digital subscription base will return to growth.

Speaker Change: This focus will include enhancing our digital products and technology and testing new price points to find the inflection point, where our digital subscription base will return to growth.

Grant Moise: Finally, this quarter, we introduce segment reporting, which breaks up the agency operating segment under Medium Giant, and reports on all of the Dallas Morning News as a separate operating segment. We understand the margin profile of each of these operating segments is different, and reporting on them separately helps investors better understand the component parts of our company, and allows Kady and me to manage the business more effectively. A year ago, we hired John Kiger, an agency veteran with 30 years in the ad agency business, to help us better understand how to separate the agency from our traditional media business.

Grant S. Moise: Finally, this quarter, we introduce segment reporting, which breaks out the agency operating segment under Medium Giant and reports on all of the Dallas Morning News as a separate operating segment. We understand the margin profile of each of these operating segments is different, and reporting on them separately helps investors better understand the component parts of our company and allows Katie and me to manage the business more effectively.

Speaker Change: Finally, this quarter, we introduced segment reporting which breaks out the agency operating segment under medium giant and reports on all of the Dallas morning News as a separate operating segment, we understand the margin profile of each of these operating segments is different and reporting on them separately helps investors better understand the.

Speaker Change: Ponant parts of our company and allows Canadian me to manage the business more effectively.

Grant S. Moise: A year ago, we hired John Kiger, an agency veteran with 30 years in the ad agency business, to help us better understand how to separate the agency from our traditional media business. Over the past year, John has effectively reorganized the business in a way that streamlines its operations while maintaining its synergy. Year-to-date, we've added $573,000 in operating income from the agency segment, and while we know there is still significant room for financial growth, we now have a clear foundation from which we can build.

Speaker Change: Year ago, we hired John Tiger and agency veteran with 30 years in the AD agency business to help us better understand how to separate the agency from our traditional media business over the past year, John is effectively reorganize the business in a way that streamlines their operations, while maintaining their synergies.

Grant Moise: Over the past year, John has effectively reorganized the business in a way that streamlines their operations while maintaining their synergies. Year to date, we've added $573,000 in operating income from the agency segment, and while we know there's still significant room for financial growth, we now have a clearer foundation from which we can build. The agency will grow by continuing to win new business driven by larger, retainer-based clients and retaining the current clients that fit our ideal client profile.

Speaker Change: Year to date, we've added $573000 in operating income from the agency segment and while we know there is still significant room for financial growth. We now have a clearer foundation from which we can build.

Grant S. Moise: The agency will grow by continuing to win new business driven by larger retainer-based clients and retaining the current clients that fit our ideal client profile. In closing, we've made meaningful progress from this time last year, and I'm proud of our team who has made this happen. We have more work to do to become a sustainably profitable company, but I'm confident we're on the right path, which is evidenced by our financial results in the second quarter. John, we are now ready for questions. Thank you.

Speaker Change: The agency will grow by continuing to win new business, driven by larger retainer based clients and retaining the current clients that fit our ultimate.

Speaker Change: It fit our ideal client profile.

Grant Moise: In closing, we've made meaningful progress from this time last year, and I'm proud of our team who has made this happen. We have more work to do to become a sustainably profitable company, but I'm confident we're on the right path, which is evidenced by our financial results in the second quarter.

Speaker Change: In closing we've made meaningful progress from this time last year and I'm proud of our team who has made this happened we have more work to do to become a sustainably profitable company, but I'm confident we're on the right path, which is evidenced by our financial results in the second quarter.

Operator: John, we are now ready for questions. Thank you, ladies and gentlemen. If you'd like to ask a question, please press 1-0 on your phone's keypad at this time. Listen to your name to be called, pressing 1-0. Second time, we'll be from the key and we'll draw your question. Once again for questions, please press 1-0.

Speaker Change: John we are now ready for questions.

Operator: Ladies and gentlemen, if you'd like to ask a question, please press 1 and 0 on your phone's keypad at this time. Listen for your name to be called, and press 1-0 a second time when we move you from the queue and withdraw your question. Once again, for questions, please press 1, then 0, and our first question comes from Rohan Gilmore. Please go ahead.

John: Thank you, ladies and gentlemen, if you'd like to ask a question. Please press one zero on your phone's keypad at this time.

Speaker Change: Listen for your name to be called pushing one zero second time, when we moved from the Q and withdraw your question once the unit for questions. Please press one zero.

Rohan Gilmore: Our first question comes from Rohan Gilmore. Please go ahead.

Speaker Change: First question comes from Royal Hunt Gilmore. Please go ahead.

Grant Moise: Hey, good morning, guys. Good morning. First of all, congratulations on a really strong quarter. I just have my questions kind of centered around the new digital products. Is there any timeline that can be shared around that, and would it be fair to say that management hopes that the majority of future digital growth will be from these new digital products?

Speaker Change: Hey, good morning, guys.

Speaker Change: Yeah.

Rohan Gilmore: First of all, congratulations on a really strong quarter. I just have a question about the new digital products. Is there any timeline that can be shared around that, and would it be fair to say that management hopes that the majority of future digital growth will be from these new digital products?

Speaker Change: First of all congratulations on a really strong quarter.

Speaker Change: I just have a my question is kind of centered around the new digital products.

Speaker Change: Is there any timeline that can be shared around that and would it be fair to say that management upset the majority of future digital growth will be from these new digital products.

Grant S. Moise: Yeah, Rohan, it's Grant. Good to talk to you. Thanks for calling in. You know, right now, we are doing extreme scrutinizing of proformas on these future products. As people know, whenever you're trying to build something new, you can get married to a proforma that you can hope is realistic, but ultimately, you know, we are in this phase where scrutinizing the proformas and making sure these new products are truly accretive is what we're digging into.

Grant Moise: Yeah, Rohan. It's great. Good to talk to you. Thanks for calling in. Right now, we are doing extreme scrutinizing of pro-formats on these future products.

Speaker Change: Yes, Rohit, it's grant good to talk to you thanks for calling in.

Speaker Change: Right now we are doing it.

Speaker Change: Extreme scrutinizing of pro formats on these future products.

Speaker Change: As people know whenever you're trying to build something new you can get married to a pro forma that.

Grant Moise: People know whenever you're trying to build something new, you can get married to a pro-format that you can hope is realistic, but ultimately, you know, we are in this phase where scrutinizing the pro-formats and making sure these new products are truly accretive is what we're digging into. We're also looking at which areas, kind of content areas, have our best success rate. So, for example, we're looking at things like a potential expansion of high school sports. We're into the suburbs with more of a kind of a hyper-local digital strategy.

Speaker Change: You can hope is realistic but ultimately you know we are in this space, we're scrutinizing the pro formats and making sure. These new products are truly accretive is what we're digging into.

Speaker Change: We're also looking at which areas kind of content areas. However, that's success rate. So for example, we're looking at things like a potential expansion of high School sports. We're looking at other things that look into product expansion into the suburbs with more of kind of a hyper.

Grant S. Moise: We're also looking at which areas, kinds of content areas, have our best success rate. So, for example, we're looking at things like a potential expansion of high school sports. We're looking at other things that look into product expansion into the suburbs with more of kind of a hyper-local digital strategy. But right now, Rohan, we are just trying to make sure that the proformas are, you know, really realistic and something that will be accretive before we start investing in the hard costs of development.

Kathy Collins: Local digital strategy, but right now roll on we are just trying to make sure that the pro forma are you know really a realistic and something that will be accretive before we started investing the hard costs again.

Grant Moise: But right now, Rohan, we are just trying to make sure that the pro-formats are really realistic and something that will be accretive before we start investing, you know, the hard costs against development. But, you know, in terms of looking into the future of how much of that will come from new products versus enhancing our current digital products. I don't have a clear answer for that yet, and that's why we're investing in both. For example, we've got features that need to come into our core digital product right now, like additional video. Video is meaningful for engagement of current subscribers, and it also carries a premium price for advertising.

Speaker Change: <unk> development, but in.

Grant S. Moise: But, you know, in terms of looking into the future of how much of that will come from new products versus enhancing our current digital products, I don't have a clear answer for that yet, and that's why we're investing in both. For example, we've got features that need to come into our core digital product right now, like additional video. Video is meaningful for the engagement of current subscribers, and it also carries a premium price for advertising. So, looking at those type of features is the kind of thing where we're trying to enhance the current products while also, you know, building new products. But thanks for the question.

Speaker Change: In terms of looking into the future of how much of that will come from new products versus enhancing our current digital products.

Speaker Change: I don't have a clear answer for that yet and that's why we're investing in both for example, we've got features that need to come in to our core our core digital product right now like additional video video is meaningful for engagement of current subscribers and it also carries a premium.

Speaker Change: Price for advertising so looking at those type of features are the kind of things, where we're trying to enhance the current products while also.

Grant Moise: So, looking at those type of features, are the kind of things where we're trying to enhance the current products while also, you know, building new products. But thanks for the question.

Speaker Change: Building new products, but thanks for the question.

Rohan Gilmore: Thank you.

Grant S. Moise: Thank you. I just have one follow-up, if that's okay with you. On the advertising side of the business, are you guys able to quantify how much revenue was generated from the Eclipse? I guess I'm just trying to see how much of the advertising revenue was one-time in nature from that tailwind versus from just a general improvement in market conditions in the business.

Speaker Change: Thank you and I just have one follow up if that's all right.

Rohan Gilmore: I just have one follow up if that's all right. On the advertising side of the business, are you guys able to quantify, you know, how much revenue was generated from the eclipse? I guess I'm just trying to see if, you know, how much of the advertising revenue was one time in nature, from that tailwind versus from just the general improvement in market conditions and the business?

Speaker Change: Sure on the advertising on the advertising side of the business are you guys able to quantify how much revenue was generated from the eclipse I guess I'm just trying to see how much of the advertising revenues was onetime in nature from that table wins versus just a general improvement in end market conditions in the business.

Speaker Change: Yes.

Grant S. Moise: Yeah, I think, Rohan, it's a good question. One of the things that we're always looking at with something like the Eclipse is when it's a one-time event, and it's material, we point that out. So, for example, the Texas Rangers winning the World Series last year, as we have publicly documented, was a very meaningful advertising revenue event. The Eclipse, I'm looking at Kathy, I think we don't have the number top of mind, and it's because, Rohan, it was not a very material spike in advertising revenue. It was nice, you know; it grew some short-term page views, but it was not financially material.

Grant Moise: Yeah, I think Rohan, it's a good question. One of the things that we're always looking at with something like the eclipse is when it's a one-time event and it's material; we point that out. So, for example, the Texas Rangers winning the World Series last year, as we had publicly documented, was a very meaningful advertising revenue event.

Speaker Change: Yeah, I think <unk>. It's a good question one of the things that we're always looking out with something like the eclipse is when it's a one time event and it's material we point that out. So for example would be the Texas Rangers, winning the World series last year as.

Speaker Change: As we have we had publicly document it was a very meaningful advertising revenue event.

Grant Moise: The eclipse was, I'm looking at Kathy, I think we don't have the number, top of mind, because Rohan, it was not a very material spike in advertising revenue. It was a nice, you know, it grew some short-term page views, but it was not financially material. Got it.

Speaker Change: Eclipse was.

Kathy Collins: I'm looking at Cathy I think we don't have the number top of mind and it's because of ROE on it was not a very material.

Speaker Change: Spike in advertising revenue. It was a nice you know it grew some short term page views, but it was not financially material.

Rohan Gilmore: got it. Well, those are my questions. Thank you for taking them and congratulations. Congratulations again to the whole Thank you.

Speaker Change: Got it well those are my questions. Thank you for taking that then congratulates congratulations against the OPM.

Rohan Gilmore: Well, those are my questions.

Rohan Gilmore: Thank you for taking them, and congratulations against the whole team. Thank you. Thanks, Rohan.

Brian: Alright, Thanks, Brian.

Gentleman Wagner: The next question comes from Gentleman Wagner. Please go ahead.

Operator: The next question comes from John Wagner. Please go ahead.

Brian: Our next question comes from John Wagner. Please go ahead.

Gentleman Wagner: Hi Grant, Katie, Kathy. Congrats on a great quarter. Just one question from you today. The company put out a press release on May 14th that had mentioned a market study was being conducted to assess the future use of the plan out facility.

John Wagner: Hi Grant, Katie, and Kathy. Congratulations on a great quarter. Just one question for me today. The company put out a press release on May 14th that mentioned a market study was being conducted to assess the future use of the Plano facility. I know you shared a brief update in your prepared remarks, but any additional color you can share on the marketing front for that asset and the brokerage firm you guys are working with would be great. Hey, John, sure.

John Wagner: Hi, Grant Katy Kathy Congrats congrats on a great quarter, just one question for me today.

Speaker Change: The company put out a press release on May 14th that hadn't mentioned a market study was being conducted to assess the future use of the Plano facility.

Grant Moise: I know you shared a brief update on the prepared remarks, but any additional color you can share on the marketing front of that asset and the brokerage from you guys are working with would be great to hear.

Speaker Change: I know you share a brief update on the prepared remarks, but any additional color you can share on the marketing front that asset and the brokerage firm you guys are working with would be great to hear.

Mary Kathryn Murray: It's hard to find 29 acres with the access to significant, you know, between the roads and highways and that. So, the other piece of that was really understanding, from an industrial redevelopment perspective, what benefits the property had, but then from a data center perspective, really sitting there and focusing on what the power requirements were. As most people know, as you know, in Austin, the data center growth in Texas is pretty significant. It is reliant on how much power you can generate on that property.

Mary Kathryn Murray: Sure. So really, what we spent time looking at was what would be the best possible uses of that property. One, it is the last significant infill property in Plano. So one, it's getting a lot of interest.

Grant Moise: Hey John, sure. So really what we've spent time looking at is what would be the best possible uses of that property?

John: Hey, John sure.

Speaker Change: So really what we we spent time looking at is what would be the best possible uses of that property.

Grant Moise: One, it is the last significant infill property in play notes. So one is getting a lot of interest. It's hard to find 29 acres with the access to significant, you know, between the roads and highways and that. So the other piece of that was really understanding from an industrial redevelopment perspective, what benefits the property had, but then from a data center perspective really sitting there and focusing on what were the power requirements? As most people know, as you know, and often that the data center growth in Texas is pretty significant. It is reliant on how much power you can generate to that property.

John Wagner: One it is the last significant infill property in Plano. So one it's getting a lot of interest it's hard to find 29 acres would be access to significant you know between that roads and highways in that.

Speaker Change: So the other piece of that was really understanding from an industrial redevelopment perspective.

John Wagner: What benefits the property had but then from a data center perspective, really sitting there and focusing on what where the power requirements as most people know them as you know.

Speaker Change: Often that the data center.

John: Growth in Texas is pretty significant it is reliant on how much power you can generate to that property. We do have two lines of power going into the property.

Grant Moise: We do have two lines of power going into the property. So that was a lot of the work that we were doing. We're really trying to understand what kind of power requirements we were going to have to have if somebody potentially wanted to come in with a data center opportunity. We also have an active rail spur on the property, which is unique from a lot of big about manufacturing industry.

Mary Kathryn Murray: We do have two lines of power going into the property, so that was a lot of the work that we were doing was really trying to understand what kind of power requirements we were going to have if somebody potentially wanted to come in with a data center opportunity. We also have an active rail spur on the property, which is unique from a lot of manufacturing industries. So, John, that's really what we were doing, and Holt Lunsford and Foundry, you probably know the names, significant experience in industrial redevelopment, also on the data center side, a lot of activity in the area near us.

John Wagner: So that was a lot of the work that we were doing was really trying to understand what kind of power requirements. We were gonna have to have if somebody potentially wanted to come in with the datacenter opportunity. We also have an active rail spur on the property, which is unique from a lot of them do you think about manufacturing industry. So John that's really what we were doing and Houghton.

Grant Moise: So, John, that's really what we were doing. And Holt Runsford and Foundry, you probably know the name, significant experience in industrial redevelopment. Also, on the data center side, a lot of activity in the area near us. They've sold a lot of the properties that are up there. So really excited about partnering with them. And again, you know, to just kick off the marketing of that, but the interest has been solid, which has been just been really great. Again, don't know exactly how long it's going to take to sell the property, but very excited about the potential outcomes.

Speaker Change: <unk> started boundary you probably know the names significant experience and industrial redevelopment.

Speaker Change: Also on the data center side, a lot of activity in the area near us.

Mary Kathryn Murray: They've sold a lot of the properties that are up there, so really excited about partnering with them. Again, they've just kicked off the marketing of that, but the interest has been solid, which has been really great. Again, just don't know exactly how long it's going to take to sell the property, but very excited about the potential outcome.

Speaker Change: But a lot of the properties that are up there.

Speaker Change: So really excited about partnering with them and again.

Speaker Change: We have just kicked off the marketing.

Speaker Change: But the interest has been solid which has been just been really great again, just don't know exactly how long, it's going to take to sell the property, but I'm very excited about the potential outcome.

John: Yeah.

Kathy Collins: Okay.

Gentleman Wagner: Okay, great.

John Wagner: Okay, great. Thank you so much.

Speaker Change: Okay, great. Thank you so much.

Gentleman Wagner: Thank you so much. Thank you, John.

John: Thanks, John.

Operator: We have one more question in Q.

Operator: We have one more question in queue, we're going out of Barry blank, go ahead, please.

Speaker Change: We have one more question in queue, we're going out of Barry Blank go ahead. Please.

Barry Blank: We're going out of Barry Blank.

Barry Blank: Go ahead, please. Hi, good morning.

Barry Blank: Good morning. I have a question regarding the letter that you received regarding the listing. What exactly are they asking for you to do to get the market price up to a certain level or to get the market cap up to a certain level? That was my first question, and my second would be: I know you paused the dividend, is there any possibility in line that the dividend may be reinstated and or stock purchases in the market?

Speaker Change: Hi, Good morning, I have a question regarding the letter that you received is about the listing what exactly.

Barry Blank: I have a question regarding the letter that you received about the listing. What exactly are they asking for you to do: you get the market price up to a certain level or to get the market cap up to a certain level? That was my first question.

Speaker Change: Are you asking for you to do to get the market price up to a certain level to get the market cap up to a certain level.

Speaker Change: My question first question and my second would be I know you.

Barry Blank: And my second would be, I know you will pause the dividend. Is there any possibility in line that the dividend may be reinstated and or stock purchases in the market?

Speaker Change: <unk>.

Speaker Change: Pause the dividend is there any.

Speaker Change: Possibility alignment the dividend may be reinstated <unk> stock stock purchases in the market.

Grant Moise: Hi, Barry.

Catherine G. Collins: Hi Barry, it's good to talk to you again. So on the NASDAQ listing, what that specifically meant when we received the letter in June is that our stockholders' equity had fallen below the requirement of $2.5 million. The good news is, when we closed June, we were back over that requirement, and we're actually at $3.3 million. So we did file an 8K in the middle of July, about a week or two ago, that stated that.

Kathy Collins: Hi, Barry its good to talk to you again.

Grant Moise: It's good to talk to you again. So on the NASDAQ listing, what that specifically meant when we received a letter in June is our stock older equity has fallen below the requirement of a $2.5 million stockholder equity. The good do is when we closed June, we were back over that requirement and we're actually at $3.3 million. So we did file an 8-K in the middle of July about a week or two ago that stated that. And so, at this point, we're back in compliance with NASDAQ. There's nothing else that we need to do. We need to show consistently that we can stay in compliance, but there's nothing we need to do from a share price perspective or from a market cap perspective.

Speaker Change: Yes, so on the NASDAQ listing what that specifically when we did receive a letter in June at our stockholders' equity has fallen below the requirement of the $2 5 million dollar stockholder equity.

Speaker Change: The good news is I'm only closed in we were back over that requirement and we are actually at $3 3 million. So we did file an 8-K in the middle of July that a week or two ago that stated that and so at this point, we're back in compliance with NASDAQ Theres nothing else that we need to do we need to show consistently that we can stay in <unk>.

Catherine G. Collins: And so at this point, we're back in compliance with NASDAQ. There's nothing else that we need to do. We need to show consistently that we can stay in compliance, but there's nothing we need to do from a share price perspective or from a market cap perspective. It was strictly related to the stockholder's equity balance as of March 31.

Speaker Change: Compliance but.

Speaker Change: There's nothing we need to do from a share price perspective or from a market cap perspective. It was strictly related to the stockholders' equity balance as of March 31, and again, we really did that at June 30th.

Grant Moise: It was strictly related to the stockholder's equity balance as of March 31. And again, we remitted that at June 30th.

Catherine G. Collins: And again, we remitted that on June 30. On the dividend, great question, and I appreciate you bringing that up, and on the stock repurchase. I think everybody, when we talk about capital allocation and as we think about capital allocation with the amount of cash we have on the books, we have to think about it really kind of in three ways.

Grant Moise: On the dividend, a great question. I appreciate you bringing that up and on the stock repurchase. I think everybody, when we talk about capital allocation, and as we think about capital allocation, with the amount of cash we have on the books, we have to think about really kind of the three ways. We think about it investments back into the business. As we mentioned, even this transition, we're going to spend $8 million transitioning our print facility, which is going to generate for us a net $5 million of savings analyzed starting in 2025. The other piece of that is we have to think about what do we do from a shareholder perspective?

Speaker Change: On the dividend Great question and I appreciate you, bringing that up and on the stock repurchase.

Kathy Collins: I think everybody when we talk about capital allocation as we think about capital allocation with the amount of cash we have on the books.

Speaker Change: We have to think about really kind of in three ways, we think about it investments back into the business as.

Catherine G. Collins: We think of it as investments back into the business. As we mentioned, even this transition, we're going to spend $8 million on transitioning our print facility, which is going to generate for us a net $5 million of savings annually starting in 2025. The other piece of that is we have to think about, you know, what do we do from a shareholder perspective? And, you know, historically, we have issued dividends. We also have had share repurchase programs, but there's nothing that's active right now.

Kathy Collins: As we mentioned even this transition we're going to spend $8 million transitioning our print facility, which is going to generate for us.

Kathy Collins: A net $5 million of savings.

Speaker Change: Annualized starting in 2025.

Kathy Collins: The other piece of that is we have to think about you know what do we do from a shareholder perspective, and you know historically, we've we had issued dividends.

Grant Moise: And historically, we have issued dividends. We also have had shared repurchase programs. There's nothing that's active right now. But then the last piece of that is how do we think about capital allocation in terms of our pension obligation? And our desire to really see that to completion. Our pension today is funded a little bit over 90%. But again, we feel that that's our responsibility, while it's not technically debt. We look at it that way and that we're going to honor the obligation that we have to all the former employees of this company.

Kathy Collins: Also haven't had had share repurchase program. There's nothing that's active right now, but then the last piece of that is how do we think about capital allocation in terms of our pension obligation.

Catherine G. Collins: But then the last piece of that is how we think about capital allocation in terms of our pension obligation and our desire to really see that through to completion? Our pension today is funded a little bit over 90 percent, but again, we feel that that's our responsibility. While it's not technically debt, we look at it that way and are going to honor the obligation that we have to all the former employees of this company. So right now, Barry, there's no specific change in direction that I can share right now.

Kathy Collins: And our desire to to really see that to completion, our pension today has funded a little bit over 90%.

Speaker Change: But again, we feel that that's our responsibility while it's not technically that we look at it that way and that we're going to honor the obligation that we have to all of the former employees of this company.

Grant Moise: So right now, Barry, there's no specific change in path that I can to chair right now. Again, our capital allocation decision has been the focus on this print transition, which will be completed in the beginning of the year. At that time, obviously, the Board of Directors grants on the board have active conversations about capital allocation. And with the expense savings that we should be seeing, and then ultimately with the sale of this property, there'll be a lot of conversations around that. But again, we look at it really in kind of three ways: investing in the business.

Kathy Collins: So right now Barry there's no specific change in <unk>.

Kathy Collins: And Pat that I can share right now again, our capital allocation decision has been to focus on the print transition, which will be completed in the beginning of the year.

Catherine G. Collins: Again, our capital allocation decision has been to focus on this print transition, which will be completed in the beginning of the year. At that time, obviously, the board of directors, and grants on the board, have active conversations about capital allocation and with the expense savings that we should be seeing and then ultimately with the sale of this property, there'll be a lot of conversations around that. But again, we look at it really in kind of three ways: investing in the business; how do we think about returning capital to our shareholders and then also thinking about our pension obligations.

Speaker Change: At that time, obviously, the board of directors Grant on the board have active conversations about capital allocation and with the expense savings that we should be seeing and then ultimately with the sale of this property there'll be a lot of conversations around that but again, we look at it really in kind of three ways of investing in the business.

Grant Moise: How do we think about returning capital to our shareholders and then also thinking about our pension obligation?

Speaker Change: How do we think about returning capital to our shareholders and then also thinking about our pension obligations.

Barry Blank: I've got one other question. I know that you can't predict what price you'll sell the property at, but can't you give any guidance as to what comparable per acre prices have gone for real estate in your area?

Barry Blank: I've got one of the questions.

Speaker Change: So one one other question.

Barry Blank: I know that you can predict what price you'll sell the property at, but can you give any guidance to what comparable prices have gone for the real estate in your area? Oh, Mary, that's hard when you think about this property. You know, if you're thinking about just pure industrial redevelopment, it could be different than a data center.

Speaker Change: I know that you can't predict what price you'll sell the property yet, but can you give any guidance what comparable per acre.

Speaker Change: Prices have gone for the real estate in your area.

Catherine G. Collins: Oh, Barry, that's hard. When you think about this property, you know, if you're thinking about just pure industrial redevelopment, it could be different than a data center. You know, what I would say is I don't have a comparable price set right now. It's just a little too early to make that kind of commitment. But again, our focus is going to be to maximize the value of that property and ensure that we're doing that as efficiently and effectively as we can. And Barry, it's great.

Speaker Change: Oh, Barry that that's hard when you think about this property.

Speaker Change: If you're thinking about just pure industrial redevelopment it could be different than a data center.

Grant Moise: You know, while I would say I don't have a comparable price set right now, it's just a little too early to make that kind of commitment. But again, our focus is going to be to maximize the value of that property and ensure that we're doing that as efficiently and effectively as we can.

Speaker Change: You know what I would say I don't have a comparable price set right now it's just a little too early to make that kind of commitment, but again, our focus is going to be to maximize the value of that property.

Speaker Change: And ensure that we're doing that as efficiently and effectively as we can and various grants I think the only thing I would add to that is it's no different than I think all of us think about when we're selling our homes. You know there's also a difference of Cam that 620000.

Grant Moise: And Mary, it's Grant. I think the only thing I would add to that is it's no different than I think all of us think about when we're selling our homes. You know, there's also a difference of can that 620,000 square feet of the building be used rather than just selling it for a lot of value? And obviously that's something where if we can't find a buyer who can use and can kind of reduce their expenses on the other side of the transaction, you know, that obviously can impact the price.

Catherine G. Collins: various grants. I think the only thing I would add to that is it's no different than I think all of us think about when we're selling our homes. You know, there's also a difference in the amount that 620,000 Gary Cobleigh, Chris Mooney, Catherine Collins, Dallasnews, Mary Murray, Gary Cobleigh, Chris Moise, Gary Cobleigh, Chris Mooney, Gary Cobleigh, Larry Cobleigh, Dallasnews, Mary Murray, Gary Cobleigh

Speaker Change: Square feet of the building be used rather than just selling it for a lot value and obviously, that's something where if we if we can't find a buyer.

Speaker Change: Who can use and can kind of reduce their expenses on the other side of the transaction.

Speaker Change: That obviously can impact the price so kind of three areas here. One is it just a development property to us in the data center and three could someone used the existing significant size of this building and that's why the ranges.

Grant Moise: So kind of three areas here. One is that just a development property. Two is it a data center? And three could someone use the existing significant size of this building? And that's why the range is fluctuate widely.

Speaker Change: Fluctuate wisely.

Barry Blank: Now, go one last question regarding your pension liabilities. A lot of companies have used the option of purchasing an annuity, which could be a substantial discount, but will pay out over the period of the time that your employees are supposed to get payments. Have you looked into that to reducing the expense that you would have to make out of cash for the future?

Catherine G. Collins: I've got one last question regarding your pension liabilities. A lot of companies have used the option of purchasing an annuity, which could be a substantial discount but will pay out over the period of time that your employee is supposed to get payments. Have you looked into that, to reduce the expense that you would have to make out of cash in the future?

Speaker Change: Got one last question regarding your pension liabilities.

Speaker Change: A lot of companies have used the option of purchasing an annuity.

Speaker Change: Which could be you know a substantial discount but will pay out over the period of time at your employees as opposed to get payments.

Speaker Change: Have you looked into that to reducing the expense that you would have to make kind of out of cash for the future.

Catherine G. Collins: So, Gary, it's a great question and, yes, we have over the, gosh, the nine years I've been here, we've done three separate de-risking offerings with our pension to reduce the pension liability. When I joined, we had over 2,600 participants in the pension. We are now down right at 1,300.

Grant Moise: So very the great question. And yes, we have over the nine years I've been here. We've done three separate de-risking offerings with our pension to reduce the pension liability. When I joined, we had over 2,600 participants in the pension. We are now down right at 1,300. We did an annuitization back in 2016, where we took 20 million of a contribution, and then we took 23 million of plan assets, and we induitized 45 million of pension liability at that time. It's something that we think about with our advisors. We have offered cash out. We have also offered the ability to roll the pension over into a 401(k).

Speaker Change: So very it's a great question and yes, we have over half the nine years I've been here, we've done three separate derisking.

Speaker Change: Offerings with our pension to reduce the pension liability when I joined we had over 2600 participants in the pension we are now down right. At 1300, we did an annuity <unk> back in 2016, where we took $20 million of a contribution and then we took 23 million of planned assets and we can do it.

Catherine G. Collins: We did an annuitization back in 2016 where we took $20 million of a contribution and then we took $23 million of plan assets, and we annuitized $45 million of pension liability at that time. It's something that we think about with our advisors. We have offered cash outs, and we have also offered the ability to roll the pension over into a 401K. So, that's something that we look at consistently, Barry, and have had a lot of success with.

Kathy Collins: <unk> 45 million of pension liability at that time.

Speaker Change: It's something that we think about with our advisors.

Speaker Change: We have offered cash outs. We had also offered the ability to roll a attention over into a 401K. So that's something that we look at consistently dairy and it had a lot of success with.

Grant Moise: So that's something that we look at consistently, Barry, and have had a lot of success with. The other thing right now is we are seeing favorable performance on the asset sides with our investment managers. So it's a great question, and it's something that we think about on how we want to reduce that liability. But right now, you have focused on the market and the opportunity to close that gap between the equity return and possibly the interest rates.

Catherine G. Collins: The other thing right now is that we are seeing favorable performance on the asset side with our investment managers. So, it's a great question and it's something that we think about how we want to reduce that liability. But right now, you know, we are focused on the market and the opportunity to close that gap between the equity return and possibly the interest rates.

Kathy Collins: The other thing right now is we are seeing.

Kathy Collins: A favorable performance on the asset size with our investment manager. So it's a great question and it's something that we think about on how we want to reduce that liability.

Speaker Change: But right now you have focused on the market and the opportunity to to close that gap between the equity return and possibly the interest rates.

Barry Blank: I've got one last question. I don't mean to take up too much of your time. Have you ever thought of a possible employee stock purchase plan? It's very beneficial that the employees feel like they're owners of the company, production gets better, they work harder, and they can benefit from the appreciation, hopefully, of the price of the stock.

Barry Blank: Got one last question. I don't mean to take up too much of your time. Have you ever thought of a possible employee stock purchase plan? It's very beneficial that the employees feel like their owners of the company; the production gets better, they work harder, and they can benefit from the appreciation, hopefully, of the price of the stock.

Speaker Change: Got it one last question and I don't mean to take up too much of your time have you ever thought of a possible employees stock purchase plan.

Speaker Change: Very beneficial at the employees feel like they are owners of the company. The production gets better if they work harder and they can.

Speaker Change: They can benefit from the appreciation hopefully over the price of the stock.

Gary Cobleigh: Mary Murray, Gary Cobleigh, Chris Mooney, Gary Cobleigh. All right. Thank you, John, for your assistance this morning. And to everyone who's joined the call, thank you again for listening to our second quarter results.

Catherine G. Collins: Barry, it's another great question. You're correct; we do not have an employee stock purchase plan. The company did have one a number of years ago, and that was discontinued. It is something that, again, you know, we do talk about but have not looked to re-implement that one given the volatility of our stock over the last several years and our focus on our return to growth plan. It might be something we consider in the future, but right now, it's not something that we're looking at putting back in place.

Kathy Collins: Barry it's another great question.

Speaker Change: You're correct, we do not have an employee stock purchase plan. The company did have one on <unk>.

Speaker Change: Number of years ago, and that was discontinued it is something that again you know we do talk about them, but have not look to re implement that one given me the volatility of our stock over the last several years and our focus on our return to growth plan it might be something we consider in the future, but right now it is.

Kathy Collins: Not something that we're looking at putting back in place.

Catherine G. Collins: Thank you very much for your time. Thank you, Barry.

Barry Blank: Thank you very much. Thank you, Barry.

Speaker Change: Okay. Thank you very much for your time.

Barry: Thank you Barry.

Speaker Change: At this moment, we have no additional questions in queue.

Operator: All right. Thank you, John, for your assistance this morning. And to everyone who joined the call, thank you again for listening to our second quarter results. And we look forward to updating everyone on our third quarter earnings call, which will be held in the fourth quarter. Ladies and gentlemen, a replay of this call will be available again from 11 a.m. Central Time today through midnight on August 7th. It's accessible by dialing 866-207-1041 and entering access code 499-3908. The number to call is

Speaker Change: Alright. Thank you John for your assistance this morning and to everyone who has joined the call. Thank you again for listening to our second quarter results and we look forward to updating everyone on our third quarter earnings call, which will be held in the fourth quarter.

Operator: And we look forward to updating everyone on our third quarter earnings call, which will be held in the fourth quarter. Ladies and gentlemen, a replay of this call will be available again from 11 a.m. Central time today through midnight on August 7th. It's accessible by dialing 866-207-1041 and entering access code 4993908. Again, the number to call is 866-207-1041 and access code is 4993908. And that does include your conference call for today. We do thank you for your participation and for using AT&T Event Conferencing.

Kathy Collins: Okay.

Operator: Ladies and gentlemen, a replay of this call will be available again from 11 a.m. Central Time today through midnight on August 7th. It's accessible by dialing 866-207-1041 and entering access code 499-3908. Again, the number to call is 866-207-1041, and the access code is 4993908, and that does conclude your conference call for today. We do thank you for your participation and for using AT&T Event Conferencing. You may now disconnect.

Speaker Change: Ladies and gentlemen, a replay of this call will be available again from a liberty am central time today through midnight on August 7th.

Operator: We're sorry, your conference is ending now. Please hang up.

Speaker Change: The successful by Dialling 8662071041, and entering access code 4993908.

Speaker Change: Again, the number to call is 8662071041.

Speaker Change: And the access code is 4993908.

Speaker Change: This concludes your conference call for today, we do thank you for your participation and for using AT&T event conferencing you may now disconnect.

Operator: You may now disconnect. We're sorry, your conference is ending now. Please hang up.

Kathy Collins: Okay.

Speaker Change: We're sorry your conferences ending now please hang up.