What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-09 · 53 added, 50 removed, 223 unchanged (32% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion includes comments and analysis relating to our results of operations and financial condition as of and for the three months ended March 30, 2025.

The following discussion includes comments and analysis relating to our results of operations and financial condition as of and for the three months ended June 29, 2025.

This discussion should be read in conjunction with the Consolidated Financial Statements and related Notes thereto, included herein, and our 2024 Annual Report on Form 10-K.

23 unchanged sentences

RESULTS OF OPERATIONS

Three Months Ended March 30, 2025

Three Months Ended June 29, 2025

Operating results are summarized below.

(Thousands of Dollars, Except Per Common Share Data) March 30, 2025 March 24, 2024 Percent

(Thousands of Dollars, Except Per Common Share Data) June 29, 2025 June 23, 2024 Percent

Operating revenue:

14 unchanged sentences

Depreciation and amortization 3,783 6,850 (44.8) %

Assets loss (gain) on sales, impairments and other 126 7,617 (98.3) %

Assets gain on sales, impairments and other (1,562) (1,421) 9.9 %

Restructuring costs and other 7,141 3,795 88.2 %

1 unchanged sentence

Equity in earnings of associated companies 686 1,122 (38.9) %

Operating loss (4,503) (4,552) (1.1) %

Operating income 4,662 4,925 (5.3) %

Non-operating income (expense):

Interest expense (10,132) (10,082) 0.5 %

Pension and OPEB related benefit and other, net 658 293 NM

Pension and OPEB related benefit and other, net 1,050 617 70.2 %

Total non-operating expense, net (9,082) (9,465) (4.0) %

Loss before income taxes (4,420) (4,540) (2.6) %

Income tax benefit (1,780) (2,837) (37.3) %

Income tax benefit (2,744) (849) NM

Net loss (1,676) (3,691) (54.6) %

2 unchanged sentences

Diluted (0.31) (0.73) (56.8) %

References to the “2025 Quarter” refer to the three months ended March 30, 2025.

Similarly, references to the “2024 Quarter” refer to the three months ended March 24, 2024.

References to the “2025 Quarter” refer to the three months ended June 29, 2025.

Similarly, references to the “2024 Quarter” refer to the three months ended June 23, 2024.

Operating Revenue

5 unchanged sentences

Subscription revenue totaled $61.6 million in the 2025 Quarter, down 9.9% compared to the 2024 Quarter.

Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, growth in digital-only subscribers and price increases on digital subscriptions.

Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, and price increases on digital subscriptions.

Digital-only subscribers now total 670,000.

1 unchanged sentence

Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $0.3 million, or 2.0%, in the 2025 Quarter compared to the 2024 Quarter.

Digital services revenue totaled $4.8 million in the 2025 Quarter, a 5.7% decrease compared to the 2024 Quarter.

Digital services revenue totaled $5.3 million in the 2025 Quarter, a 3.5% increase compared to the 2024 Quarter.

Commercial printing revenue totaled $4.2 million in the 2025 Quarter, a 4.9% decrease compared to the 2024 Quarter, primarily driven by reduction in print volumes from our partners.

7 unchanged sentences

The decrease is attributable to declines in newsprint volumes.

Other operating expenses decreased $0.8 million in the 2025 Quarter, or 1.2%, compared to the 2024 Quarter.

Other operating expenses increased $3.1 million in the 2025 Quarter, or 4.1%, compared to the 2024 Quarter.

Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss on sales, impairments, and other, net.

The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses.

The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print edition, partially offset by investments to fund our digital growth strategy.

The increase is attributable to investments to our digital growth.

Restructuring costs and other increased $3.3 million, or 88.2%, compared to the 2024 Quarter.

3 unchanged sentences

The decrease in both is attributable to assets becoming fully depreciated or amortized.

Assets loss (gain) on sales, impairments and other, was a net loss of $0.1 million in the 2025 Quarter compared to a net gain of $7.6 million in the 2024 Quarter.

Assets loss (gain) on sales, impairments and other in the 2024 Quarter were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of mastheads, which are non-amortized intangible assets.

The factors noted above resulted in an operating loss of $4.5 million in the 2025 Quarter compared to $4.6 million in the 2024 Quarter.

Assets gain on sales, impairments and other, was a net gain of $1.6 million in the 2025 Quarter compared to a net gain of $1.4 million in the 2024 Quarter.

Assets gain on sales in both quarters were due to asset sales.

The factors noted above resulted in an operating income of $4.7 million in the 2025 Quarter compared to $4.9 million in the 2024 Quarter.

Non-operating Income and Expense

Non-operating income and expense decreased by $0.4 million , or 4.0%.

The decrease is primarily driven by a decrease in Interest expense of $0.3 million, or 2.6%, to $10.0 million in the 2025 Quarter, compared to the same Quarter last year.

The decrease was due to a lower average outstanding balance on our Term Loan.

The decrease is primarily driven by an increase in Pension and OPEB related benefits offset by an increase in Interest expense of $0.1 million, or 0.5%, to $10.1 million in the 2025 Quarter, compared to the same Quarter last year.

The increase to interest expense was due to the interest and rent waivers received in the second quarter which was added to the outstanding balance on our Term Loan.

Our weighted average cost of debt was 9% at the end of the 2025 Quarter and 2024 Quarter.

5 unchanged sentences

The change reflects the various items discussed above.

Six Months Ended March 30, 2025

Nine Months Ended June 29, 2025

Operating results are summarized below.

(Thousands of Dollars, Except Per Common Share Data) March 30, 2025 March 24, 2024 Percent Change

(Thousands of Dollars, Except Per Common Share Data) June 29, 2025 June 23, 2024 Percent Change

Operating revenue:

15 unchanged sentences

Assets loss (gain) on sales, impairments and other (2,365) 4,727 NM

Restructuring costs and other 11,666 8,404 NM

Restructuring costs and other 18,806 12,199 54.2 %

Total operating expenses 429,391 448,469 (4.3) %

6 unchanged sentences

Total non-operating expense, net (28,003) (25,738) 8.8 %

Loss before income taxes (26,776) (12,992) NM

Income tax expense (benefit) 1,463 (2,589) NM

Loss before income taxes (31,196) (17,532) 77.9 %

Income tax expense (benefit) (1,281) (3,438) (62.7) %

Net loss (29,915) (14,094) NM

2 unchanged sentences

Diluted (5.16) (2.68) 92.7 %

References to the “2025 Period” refer to the six months ended March 30, 2025.

Similarly, references to the “2024 Period” refer to the six months ended March 24, 2024.

References to the “2025 Period” refer to the nine months ended June 29, 2025.

Similarly, references to the “2024 Period” refer to the nine months ended June 23, 2024.

Operating Revenue

5 unchanged sentences

Subscription revenue totaled $191.4 million in the 2025 Period, down 8.4% compared to the 2024 Period.

Digital-only subscribers now total 670,000.

1 unchanged sentence

Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $1.9 million, or 4.7%, in the 2025 Period compared to the 2024 Period.

Digital services revenue totaled $9.9 million in the 2025 Period, a 1.7% decrease compared to the 2024 Period.

Digital services revenue totaled $15.2 million in the 2025 Period, a 0.1% increase compared to the 2024 Period.

Commercial printing revenue totaled $12.1 million in the 2025 Period, a 8.0% decrease compared to the 2024 Period, primarily driven by reductions in print volumes from our partners.

Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $223.8 million in the 2025 Period, an increase of 3.0% over the 2024 Period, and represented 52.9% of our total operating revenue in the 2025 Period.

Equity in earnings of TNI and MNI increased $0.5 million in the 2025 Period.

Equity in earnings of TNI and MNI decreased $0.9 million in the 2025 Period.

Operating Expenses

1 unchanged sentence

Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 3.0% in the 2025 Period.

Compensation expense increased $0.4 million in the 2025 Period, or 0.4%, compared to the 2024 Period due to higher expenses related to the Company's self-insured medical plan, investments in digital talent, partially offset by reductions in full time employees ("FTEs") due to continued business transformation efforts.

Compensation expense decreased $11.4 million in the 2025 Period, or 6.5%, compared to the 2024 Period from reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent and higher expenses related to the Company's self-insured medical plan.

Newsprint and ink costs decreased $3.1 million in the 2025 Period, or 23.7%, compared to the 2024 Period.

The decrease is attributable to declines in newsprint volumes.

Other operating expenses decreased $0.9 million in the 2025 Period, or 0.6%, compared to the 2024 Period.

Other operating expenses increased $2.1 million in the 2025 Period, or 1.0%, compared to the 2024 Period.

Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss (gain) on sales, impairments, and other, net.

The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses.

The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print edition, partially increases in investments to fund our digital growth strategy partially offset by investments to fund our digital growth strategy.

The increase is attributable to investments to our digital growth.

Restructuring costs and other increased $6.6 million in the 2025 Period, compared to the 2024 Period.

4 unchanged sentences

Assets loss (gain) on sales, impairments and other, was a net gain of $2.4 million in the 2025 Period compared to a net loss of $4.7 million in the 2024 Period.

Assets loss (gain) on sales, impairments and other in the 2024 Period were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of mastheads, which are non-amortized intangible assets.

Assets loss (gain) on sales, impairments and other in the 2024 Period were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of

mastheads, which are non-amortized intangible assets.

Assets gain on sales, impairments and other in the 2025 Period were the result of the disposition of non-core assets, including real estate.

29 unchanged sentences

This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions.

EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics.

It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors.

Adjusted EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics.

It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used

by the Company and its investors.

Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.

8 unchanged sentences

The table below reconciles the non-GAAP financial performance measure of Adjusted EBITDA to net income, the most directly comparable GAAP measure:

Three months ended Six months ended

(Thousands of Dollars) March 30, 2025 March 24, 2024 March 30, 2025 March 24, 2024

Three months ended Nine months ended

(Thousands of Dollars) June 29, 2025 June 23, 2024 June 29, 2025 June 23, 2024

Net loss (1,676) (3,691) (29,915) (14,094)

Adjusted to exclude

Income tax (benefit) expense (1,780) (2,837) 1,463 (2,589)

Income tax benefit (2,744) (849) (1,281) (3,438)

Non-operating expenses, net 9,082 9,465 28,003 25,738

2 unchanged sentences

Restructuring costs and other 7,141 3,795 18,806 12,199

Assets loss (gain) on sales, impairments and other, net 126 7,617 (803) 6,148

Assets (gain) loss on sales, impairments and other, net (1,562) (1,421) (2,365) 4,727

Stock compensation 540 474 1,328 1,189

2 unchanged sentences

The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable GAAP measure:

Three months ended Six months ended

(Thousands of Dollars) March 30, 2025 March 24, 2024 March 30, 2025 March 24, 2024

Three months ended Nine months ended

(Thousands of Dollars) June 29, 2025 June 23, 2024 June 29, 2025 June 23, 2024

Operating expenses 137,318 146,775 429,391 448,469

Depreciation and amortization 3,783 6,850 15,218 21,438

Assets loss (gain) on sales, impairments and other, net 126 7,617 (803) 6,148

Assets (gain) loss on sales, impairments and other, net (1,562) (1,421) (2,365) 4,727

Restructuring costs and other 7,141 3,795 18,806 12,199

11 unchanged sentences

Financing Activities

Cash provided by or required for financing activities totaled zero in the 2025 Period compared to $1.9 million required in the 2024 Period.

The Debt reduction accounted for nearly all the usage of funds in the 2024 Period.

Cash required for financing activities totaled $1.4 million in the 2025 Period compared to $3.0 million required in the 2024 Period.

The Debt reduction accounted for nearly all the usage of funds in both periods.

Additional Information on Liquidity

Our liquidity, consisting of cash on the balance sheet, totaled $4.7 million on March 30, 2025.

Our liquidity, consisting of cash on the balance sheet, totaled $14.1 million on June 29, 2025.

This liquidity amount excludes any future cash flows from operations.

For the six months ending March 30, 2025, cash required for operating activities totaled $8.1 million.

For the nine months ending June 29, 2025, cash provided by operating activities totaled $0.8 million.

The current operating environment, business transformation spending, and impacts from the Cyber Incident have reduced net cash flows and put pressure on the Company's liquidity.

2 unchanged sentences

Reductions in operating expenses and capital spending largely impact the Company's print businesses and future products that are not generating revenue today.

The Company's working capital was impacted by the Cyber Incident, as statements to customers were delayed and collection efforts were challenged.

The Company expects improved collections as we recover from the Cyber Incident.

In addition to these tactics, the Company was granted waivers of interest and rent for three months, two of which are already reflected in the financial statements.

Notwithstanding the aforementioned waivers of interest and rent, and considering the plans outlined above, we expect all interest and principal payments due in the next twelve months will be satisfied by existing cash and our cash flows, which will allow us to maintain an adequate level of liquidity.

Due to the cyber incident and in an effort to improve liquidity, the Company was granted waivers of interest and rent for three months.

The Company executed its plan in the 13 weeks ended June 29, 2025, resulting in an improvement in operating results (defined as net loss adjusted for non-working capital items).

This improvement marked a significant

milestone in the cyber recovery, as since May 2025 all mandatory and principal payments were funded through cash from operations.

The Company anticipates the improvement to continue into future quarters.

CHANGES IN LAWS AND REGULATIONS

4 unchanged sentences

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

There have been no changes in our internal control over financial reporting that occurred during the 13 weeks ended March 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

There have been no changes in our internal control over financial reporting that occurred during the 13 weeks ended June 29, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

OTHER INFORMATION

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis