A. H. Belo Explores Potential Sale Of The Providence Journal - Quick Facts

(RTTNews) - A. H. Belo Corp. (AHC) announced Wednesday that it has engaged Stephens Inc. to explore a potential sale of The Providence Journal. The Providence Journal is the leading newspaper in Rhode Island and is the oldest major daily newspaper of general circulation and continuous publication in the United States.

The company said the decision is part of the revised financial and operating strategies. A sale of The Providence Journal would generate additional cash proceeds to potentially invest in or buy advertising and marketing services companies to grow and diversify revenues and to finance further share repurchases in the future. These funds may also be used for other general corporate purposes. Additionally, a sale of The Providence Journal would allow the Company to continue to focus resources and management time and attention on its core Dallas market.

However, the company noted that it cannot guarantee that an appropriate buyer will be located or that a transaction could be closed on acceptable terms and conditions.

The company anticipates full-year 2013 EBITDA from continuing operations to be in the range of $26 million and $29 million. This updated guidance reflects changes to the Company's results after considering revenue and expense trends for the first eleven months of 2013 and the impact of selling substantially all assets comprising the operations of The Press-Enterprise.

In the fourth quarter, the company also entered into an agreement to print the Fort Worth Star-Telegram for an initial term of 10 years and a renewal option to extend the contract. This contract is expected to begin in the first quarter of 2014 and will add $6.0 million to $6.5 million in printing and inserting revenues to The Dallas Morning News annually.