How are energy investors positioned?
DallasNews Corporation (NASDAQ:DALN), currently trading at $4.44 with a market capitalization of $23.82 million, has completed the process of transferring its pension plan obligations through the purchase of a group annuity contract, as per the latest SEC filing. According to InvestingPro analysis, the company is currently fairly valued based on its comprehensive Fair Value model. The transaction, which closed on April 17, 2025, involved the DallasNews Corporation Pension Plan I and II and will affect approximately 1,261 participants and beneficiaries.
The annuity contract, purchased from First Allmerica Financial Life Insurance (NSE:LIFI) Company, ensures that the insurer will be solely responsible for paying the pension benefits of the transferred participants starting July 1, 2025. The benefits payable to these participants will not change as a result of this transaction.
Funding for the purchase came from $132 million in Plan assets and a $10 million cash contribution from DallasNews Corp. This cash was procured from the sale of The Dallas Morning News, Inc.’s print facility and surrounding land, known as the North Plant Property. The company anticipates a one-time non-cash pre-tax pension settlement charge between $33 million to $37 million in the second quarter of 2025, the final amount contingent on the finalization of actuarial and other assumptions.
Additionally, an escrow fund of $600,000 from the sale of the North Plant Property was released to The Dallas Morning News, Inc. on April 15, 2025, following environmental testing that confirmed no remediation was required on the property.
The company’s forward-looking statements in the SEC filing indicate expected pension settlement charges and other financial items, cautioning that actual results could differ materially due to various risks and uncertainties.
This news is based on a press release statement and is intended to provide factual information without speculation on the potential impact of these events.
In other recent news, Dallasnews Corporation reported a significant decline in revenue for the fourth quarter of 2024, with total revenue dropping to $31.1 million from $34 million in the same period the previous year. The company also revealed a quarterly net income of $4 million, or $0.74 per share, amid decreasing advertising revenues, which fell by 18.9%. Dallasnews achieved expense savings of $15.4 million year-over-year, but the overall revenue decline impacted its financial performance. The company plans to continue investing in digital products and aims to grow its digital subscription base, despite the slow growth observed in early 2025. The company has transitioned its print operations to a more efficient facility, generating over $5 million in annualized expense savings. The sale of its Plano property for $43.5 million was completed, providing additional capital to fully fund its pension plan. Dallasnews is focused on becoming cash flow positive and is cautious about the outlook given the challenging market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.