Third Quarter Highlights

Total revenue decreased 17.5 percent in the third quarter versus the prior year quarter.

Advertising revenue, including print and Internet revenues, decreased 27.0 percent, and classified revenue decreased 40.6 percent. In Dallas, the percent decline in advertising revenue was less than in Providence and Riverside. AHC's Internet revenue was $9.7 million and represented 7.6 percent of total revenue in the quarter. Although Internet revenue decreased 15.0 percent versus the same period last year, non-classified Internet revenue increased 15.6 percent.

The Company continues to focus on high-quality, local content and value-added circulation for its advertisers. In the third quarter, circulation revenue rose 11.6 percent due to pricing actions taken by The Dallas Morning News and The Providence Journal in late 2008 and thus far in 2009.

Total consolidated operating expenses in the third quarter were $143.8 million, a decrease of $35.4 million or 19.8 percent versus the same period last year. Excluding impairment charges in both periods, total consolidated operating expenses in the third quarter were $123.8 million, a decrease of $50.9 million or 29.1 percent versus the same period last year. Newsprint expense fell $9.5 million, a decline of 50.7 percent versus the same period last year, as both newsprint volume and prices declined.

Corporate and non-operating expenses, net of costs allocated to operating units, decreased by $3.9 million, or 36.6 percent in the third quarter versus the prior year quarter. This decrease is primarily due to lower outside services expense and the modification of a service agreement, which resulted in a one-time credit of $0.8 million.