Voluntary Severance Program Is Completed
September 04 2008 - 5:00PM
PR Newswire (US)
DALLAS, Sept. 4 /PRNewswire-FirstCall/ -- A. H. Belo Corporation
(NYSE:AHC) said today that the voluntary severance offer (VSO)
extended to the Company's newspaper employees in July has been
completed. Overall, 413 employees will leave the company under the
VSO -- 270 at The Dallas Morning News, 23 at The Providence
Journal, and 120 at The Press-Enterprise. The total cost of the VSO
is approximately $11.2 million, the majority of which will be
expensed in the third quarter. In addition, an involuntary
reduction in force will be completed by mid-to-late October to
achieve the necessary remaining workforce reductions. The expense
related to the reduction in force is estimated at $2.4 million and
will be recorded in the fourth quarter. The reduction in force is
limited to the news, production, customer retention call center,
and Al Dia departments at The Dallas Morning News; the news,
consumer sales, packaging and production departments (excluding
pressroom) at The Press-Enterprise; and, the news, editorial,
advertising and promotion departments, subject to contractual
obligations, at The Providence Journal. The combined workforce
reductions are expected to result in a savings of more than $29
million on an annualized basis. Robert W. Decherd, chairman,
president and Chief Executive Officer, said, "These job actions are
part of a restructuring of our newspaper operations that
accelerates the allocation of resources to promising new print and
online products while focusing our workforce on A. H. Belo's local
content creation and sales capabilities. We greatly appreciate the
dedication and service of all A. H. Belo employees who are leaving
the Company under the voluntary severance program. I'm confident
that we're taking the right steps to realign our resources to meet
consumer and advertiser needs while maintaining the exceptional
quality of A. H. Belo's journalistic products." A copy of the
letter sent to operating company employees today by Jim Moroney,
executive vice president of A. H. Belo and Publisher and Chief
Executive Officer of The Dallas Morning News is available at
http://www.ahbelo.com/invest. About A. H. Belo Corporation A. H.
Belo Corporation (NYSE:AHC) headquartered in Dallas, Texas, is a
distinguished news and information company that owns and operates
four daily newspapers and 12 associated Web sites. A. H. Belo
publishes The Dallas Morning News, Texas' leading newspaper and
winner of eight Pulitzer Prizes since 1986; The Providence Journal,
the oldest continuously-published daily newspaper in the U.S. and
winner of four Pulitzer Prizes; The Press-Enterprise (Riverside,
CA), serving southern California's Inland Empire region and winner
of one Pulitzer Prize; and the Denton Record-Chronicle. The Company
publishes various specialty publications targeting niche audiences,
young adults and the fast-growing Hispanic market. A. H. Belo also
owns direct mail and commercial printing businesses. Additional
information is available at http://www.ahbelo.com/ or by contacting
Maribel Correa, director/Investor Relations, at 214-977-2702.
Statements in this communication concerning A. H. Belo
Corporation's (the "Company's") business outlook or future economic
performance, anticipated profitability, revenues, expenses,
dividends, capital expenditures, investments, future financings,
and other financial and non-financial items that are not historical
facts, are "forward-looking statements" as the term is defined
under applicable federal securities laws. Forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from those
statements. Such risks, uncertainties and factors include, but are
not limited to, changes in capital market conditions and prospects,
and other factors such as changes in advertising demand, interest
rates, and newsprint prices; newspaper circulation matters,
including changes in readership patterns and demography, and audits
and related actions by the Audit Bureau of Circulations;
circulation trends; technological changes; development of Internet
commerce; industry cycles; changes in pricing or other actions by
competitors and suppliers; regulatory, tax and legal changes;
adoption of new accounting standards or changes in existing
accounting standards by the Financial Accounting Standards Board or
other accounting standard-setting bodies or authorities; the
effects of Company acquisitions, dispositions, co-owned ventures,
and investments; general economic conditions; significant armed
conflict; and other factors beyond our control, as well as other
risks described on Form 10-K and other public disclosures and
filings with the Securities and Exchange Commission. DATASOURCE: A.
H. Belo Corporation CONTACT: Maribel Correa, director|Investor
Relations of A. H. Belo Corporation, +1-214-977-2702 Web site:
http://www.ahbelo.com/
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