DALLAS, Aug. 22, 2022 (GLOBE NEWSWIRE) — DallasNews Corporation (Nasdaq: DALN) today announced that its Board of Directors has approved a special dividend of $1.50 per share payable September 30, 2022 to shareholders of record at the close of September 9, 2022. The Board also approved a voluntary contribution to the Company’s pension plans of $5 million, which will be paid before September 15, 2022.
On July 29, 2022, the Company received payment in full for a note related to the 2019 sale of its former headquarters campus in downtown Dallas. Total proceeds were $22.52 million, which includes interest on the note. The amount of the special dividend paid on September 30, 2022 is approximately $8 million, which, combined with the voluntary pension plan contribution, totals approximately $13 million. The remainder of the cash received from the corporate note, approximately $10 million, will be retained on the company’s balance sheet as DallasNews Corporation continues to move toward the company’s stated goal of becoming a digital media company. sustainably profitable.
After the payment of the special dividend, cash on the balance sheet at September 30, 2022 is expected to be approximately $33 million.
The special dividend is the fifth in the last ten years. The Company paid a special dividend of $0.96 per share in 2012, $6.00 per share in 2014, $9.00 per share in 2015 and $0.56 per share in 2017, in each case adjusted to reflect the impact of the stock consolidation in 2021. A total of $100.6 million in special dividends and $82.4 million in regular dividends have been declared since DallasNews Corporation became a separate company in 2008. The board directors said it plans to maintain a quarterly dividend at the current rate of $0.16 per share.
The voluntary contribution to the pension plans is the sixth since 2008. Previous voluntary contributions totaled $84.6 million and were made in 2011, 2012, 2013, 2014 and 2017. The pension plans are currently approximately 88% funded on the basis of generally accepted accounting principles.
Robert W. Decherd, executive chairman of DallasNews, said, “Since the company’s inception in 2008, directors have consistently focused on returning capital to shareholders when opportunities arise. We are also committed to improving the funding of the Company’s pension plans, which we view as a fundamental obligation to the men and women who have devoted a substantial portion of their working lives to DallasNews Corporation and The Dallas Morning News.
“The board regularly reviews a full range of choices for capital allocation and distribution with the firm’s investment banking advisors, and will continue to do so.”
About DallasNews society
DallasNews Corporation is the Dallas-based holding company of The Dallas Morning News and middle giant. The dallas Morning New is Texas’ leading daily newspaper with a strong journalistic reputation, intense regional focus and strong community ties. Medium Giant is a media and marketing agency comprised of diverse thinkers who craft strategies that deepen relationships, expand influence, and expand client success nationwide. For more information, visit dallasnewscorporation.com or email [email protected]
Statements in this communication regarding DallasNews Corporation’s future business prospects or economic performance, revenues, expenses, cash balance and other financial and non-financial items that are not historical facts are “looking towards the future Statements,” as that term is defined in applicable federal securities laws. Words such as “anticipate”, “believe”, “could”, “estimate”, “intend”, “expect”, “may”, “project”, “plan”, “will” , “would” and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from such statements. These risks, trends and uncertainties are, in most cases, beyond the Company’s control and include changes in advertising demand and other economic conditions; consumer tastes; newsprint prices; program costs; labor relations; cybersecurity incidents; technological obsolescence; and the current and future impacts of the COVID-19 pandemic. Among other risks, there can be no assurance that the Board of Directors will approve a quarterly dividend in future quarters or that our financial projections are accurate, as well as other risks described in the Company’s Annual Report on Form 10-K and in the other public disclosures and filings with the Securities and Exchange Commission. Forward-looking statements, which are as of the date of this filing, are not updated to reflect events or circumstances after the date of the statement.