A. H. Belo (AHC) Says Q4 adj-EBITDA 'Exceeding Expectations'; Divides Belo Investment Assets
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A. H. Belo Corporation (NYSE: AHC) reports fourth quarter 2011 earnings before interest, taxes, depreciation, amortization, pension and impairment expenses and net investment-related losses (“Adjusted EBITDA”) is exceeding expectations, and the Company anticipates full-year 2011 Adjusted EBTIDA will surpass $45 million.
A. H. Belo also announced today that the Company and its former parent company, Belo Corp., divided the assets of Belo Investment, LLC (“Belo Investment”), a real estate investment company in which A. H. Belo and Belo Corp. each previously held a fifty percent interest, on December 31, 2011. Belo Investment owned real estate in downtown Dallas near the two companies’ operating facilities and the City’s new convention center hotel complex.
Decherd said, “The division of jointly-owned real estate is the last major step in separating the affairs of A. H. Belo and Belo Corp. This transaction fairly divided Belo Investment’s assets and provides both parties with greater financial flexibility.”
The division of Belo Investment’s assets was based on independent third party appraisals. A. H. Belo now owns three commercial parking lots, each occupying all or part of a full city block, and a public-private plaza covering another city block. Parking income will largely offset the carrying costs related to these properties. The Company anticipates its annual net cash outlay for these properties will be approximately $0.7 million less than its net cash outlay to Belo Investment in 2011.
As of result of the Belo Investment transaction, A. H. Belo anticipates that fourth quarter 2011 financial results will include a non-cash expense of approximately $4.5 million. The Company will also record a liability of $0.8 million for deferred capital improvements to a property retained by Belo Corp.
A. H. Belo also announced today that the Company and its former parent company, Belo Corp., divided the assets of Belo Investment, LLC (“Belo Investment”), a real estate investment company in which A. H. Belo and Belo Corp. each previously held a fifty percent interest, on December 31, 2011. Belo Investment owned real estate in downtown Dallas near the two companies’ operating facilities and the City’s new convention center hotel complex.
Decherd said, “The division of jointly-owned real estate is the last major step in separating the affairs of A. H. Belo and Belo Corp. This transaction fairly divided Belo Investment’s assets and provides both parties with greater financial flexibility.”
The division of Belo Investment’s assets was based on independent third party appraisals. A. H. Belo now owns three commercial parking lots, each occupying all or part of a full city block, and a public-private plaza covering another city block. Parking income will largely offset the carrying costs related to these properties. The Company anticipates its annual net cash outlay for these properties will be approximately $0.7 million less than its net cash outlay to Belo Investment in 2011.
As of result of the Belo Investment transaction, A. H. Belo anticipates that fourth quarter 2011 financial results will include a non-cash expense of approximately $4.5 million. The Company will also record a liability of $0.8 million for deferred capital improvements to a property retained by Belo Corp.
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