Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |||
Sep. 30, 2013 | Oct. 25, 2013 | Oct. 25, 2013 | Oct. 25, 2013 | |
Common Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | ||
Entity Information [Line Items] | ||||
Document Type | 10-Q | |||
Amendment Flag | FALSE | |||
Document Period End Date | 30-Sep-13 | |||
Document Fiscal Year Focus | 2013 | |||
Document Fiscal Period Focus | Q3 | |||
Trading Symbol | MSO | |||
Entity Registrant Name | MARTHA STEWART LIVING OMNIMEDIA INC | |||
Entity Central Index Key | 1091801 | |||
Current Fiscal Year End Date | -19 | |||
Entity Filer Category | Accelerated Filer | |||
Entity Common Stock, Shares Outstanding | 56,534,252 | 30,549,627 | 25,984,625 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $14,479 | $19,925 |
Short-term investments | 21,265 | 29,182 |
Restricted cash and investments | 5,009 | 0 |
Accounts receivable, net | 28,646 | 38,073 |
Paper inventory | 3,593 | 4,580 |
Deferred television production costs | 150 | 434 |
Other current assets | 3,810 | 3,335 |
Total current assets | 76,952 | 95,529 |
PROPERTY AND EQUIPMENT, net | 8,594 | 10,738 |
GOODWILL | 850 | 850 |
OTHER INTANGIBLE ASSETS, net | 45,200 | 45,203 |
OTHER NONCURRENT ASSETS, net | 1,637 | 1,940 |
Total assets | 133,233 | 154,260 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 12,849 | 12,770 |
Accrued payroll and related costs | 4,856 | 9,316 |
Current portion of deferred subscription revenue | 7,310 | 13,168 |
Current portion of other deferred revenue | 4,590 | 5,605 |
Total current liabilities | 29,605 | 40,859 |
DEFERRED SUBSCRIPTION REVENUE | 3,193 | 4,478 |
OTHER DEFERRED REVENUE | 0 | 1,113 |
DEFERRED INCOME TAX LIABILITY | 8,042 | 7,117 |
OTHER NONCURRENT LIABILITIES | 4,628 | 5,177 |
Total liabilities | 45,468 | 58,744 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERSb EQUITY | ||
Series A Preferred Stock, 1 share issued and outstanding in 2013 and 2012 | 0 | 0 |
Capital in excess of par value | 341,555 | 340,586 |
Accumulated deficit | -253,277 | -244,529 |
Accumulated other comprehensive loss | -414 | -438 |
Shareholders' equity before treasury stock | 88,540 | 96,291 |
Less: Class A treasury stock b 59,400 shares at cost | -775 | -775 |
Total shareholdersb equity | 87,765 | 95,516 |
Total liabilities and shareholdersb equity | 133,233 | 154,260 |
Class A Common Stock [Member] | ||
SHAREHOLDERSb EQUITY | ||
Common Stock | 416 | 412 |
Class B Common Stock [Member] | ||
SHAREHOLDERSb EQUITY | ||
Common Stock | $260 | $260 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Series A Preferred Stock, shares issued | 1 | 1 |
Series A Preferred Stock, shares outstanding | 1 | 1 |
Class A Common Stock [Member] | ||
Common Stock, par value (in dollars per share) | 0.01 | 0.01 |
Common Stock, shares authorized | 350,000,000 | 350,000,000 |
Common Stock, shares issued | 41,599,948 | 41,220,689 |
Common Stock, shares outstanding | 41,540,548 | 41,161,289 |
Treasury stock, shares | 59,400 | 59,400 |
Class B Common Stock [Member] | ||
Common Stock, par value (in dollars per share) | 0.01 | 0.01 |
Common Stock, shares authorized | 150,000,000 | 150,000,000 |
Common Stock, shares issued | 25,984,625 | 25,984,625 |
Common Stock, shares outstanding | 25,984,625 | 25,984,625 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
REVENUES | ||||||
Publishing | $19,401 | $27,572 | $68,073 | $87,208 | ||
Merchandising | 14,153 | 13,233 | 41,776 | 41,355 | ||
Broadcasting | 294 | 2,744 | 3,421 | 12,701 | ||
Total revenues | 33,848 | 43,549 | 113,270 | 141,264 | ||
Production, distribution and editorial | -16,579 | -24,487 | -56,332 | -78,877 | ||
Selling and promotion | -10,401 | -13,028 | -32,348 | -37,954 | ||
General and administrative | -10,097 | -10,972 | -31,456 | -33,636 | ||
Depreciation and amortization | -847 | -1,003 | -2,940 | -3,028 | ||
Restructuring charges | 0 | -491 | -675 | [1] | -1,268 | [1] |
Goodwill, Impairment Loss | 0 | -44,257 | 0 | -44,257 | [1] | |
Gain on sale of subscriber list, net | 0 | 0 | 2,724 | 0 | ||
OPERATING LOSS | -4,076 | -50,689 | -7,757 | -57,756 | ||
Interest income, net | 194 | 327 | 571 | 908 | ||
Other (expense) / income, net | -76 | -106 | -486 | 862 | ||
LOSS BEFORE INCOME TAXES | -3,958 | -50,468 | -7,672 | -55,986 | ||
Income tax provision | -337 | -410 | -1,076 | -1,209 | ||
NET LOSS | ($4,295) | ($50,878) | ($8,748) | ($57,195) | ||
LOSS PER SHARE b BASIC AND DILUTED | ||||||
Net loss (in dollars per share) | ($0.06) | ($0.76) | ($0.13) | ($0.85) | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||||
Basic and diluted (in shares) | 67,490,820 | 67,271,211 | 67,366,285 | 67,198,281 | ||
[1] | As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $1.4 million and $3.1 million for the nine months ended September 30, 2013 and 2012, respectively. Included in non-cash equity compensation expense for the nine months ended September 30, 2013 were net reversals of expense of approximately $0.03 million. The nine months ended September 30, 2012 include net expense of $(0.02) million, which was generated in connection with restructuring activities. Accordingly, these amounts are reflected as restructuring charges in the Company's consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net loss | ($4,295) | ($50,878) | ($8,748) | ($57,195) |
Other comprehensive (loss) / income: | ||||
Unrealized (loss) / gain on securities | -48 | -34 | 24 | -220 |
Other comprehensive (loss) / income | -48 | -34 | 24 | -220 |
Total comprehensive loss | ($4,343) | ($50,912) | ($8,724) | ($57,415) |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Capital in Excess of Par Value [Member] | Accumulated deficit [Member] | Accumulated other comprehensive loss [Member] | Class A Treasury Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] |
In Thousands | Common Stock [Member] | Common Stock [Member] | |||||
Balance at Dec. 31, 2012 | $95,516 | $340,586 | ($244,529) | ($438) | ($775) | $412 | $260 |
Balance, shares at Dec. 31, 2012 | -59 | 41,221 | 25,985 | ||||
Net loss | -8,748 | -8,748 | |||||
Other comprehensive income | 24 | 24 | |||||
Issuance of shares of stock in conjunction with stock option exercises | 60 | 60 | |||||
Issuance of shares of stock in conjunction with stock option exercises, shares | 31 | ||||||
Issuance of shares of stock and restricted stock, net of cancellations and tax withholdings | -443 | -447 | 4 | ||||
Issuance of shares of stock and restricted stock, net of cancellations and tax withholdings, shares | 348 | ||||||
Non-cash equity compensation | 1,356 | 1,356 | |||||
Balance at Sep. 30, 2013 | $87,765 | $341,555 | ($253,277) | ($414) | ($775) | $416 | $260 |
Balance, shares at Sep. 30, 2013 | -59 | 41,600 | 25,985 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | ($8,748) | ($57,195) | |
Adjustments to reconcile net loss to net cash (used in) / provided by operating activities: | |||
Non-cash revenue | -403 | -405 | |
Depreciation and amortization | 2,940 | 3,028 | |
Amortization of deferred television production costs | 457 | 6,870 | |
Goodwill, Impairment Loss | 0 | 44,257 | [1] |
Non-cash equity compensation | 1,356 | 3,118 | |
Deferred income tax expense | 925 | 932 | |
Gain on sales of cost-based investments | 0 | -1,165 | |
Gain on sale of subscriber list, net | -2,724 | 0 | |
Other-than-temporary loss on cost-based investment | 0 | 88 | |
Other non-cash charges, net | -397 | 130 | |
Changes in operating assets and liabilities | |||
Accounts receivable, net | 9,427 | 17,993 | |
Paper inventory | 851 | 3,190 | |
Deferred television production costs | -173 | -7,804 | |
Accounts payable and accrued liabilities and other | 195 | -5,202 | |
Accrued payroll and related costs | -4,460 | -2,293 | |
Deferred subscription revenue | -4,956 | -3,603 | |
Deferred revenue | -1,725 | 980 | |
Other changes | -283 | -462 | |
Total changes in operating assets and liabilities | -1,124 | 2,799 | |
Net cash (used in) / provided by operating activities | -7,718 | 2,457 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | -908 | -1,217 | |
Purchases of short-term investments | -16,353 | -36,182 | |
Sales of short-term investments | 19,270 | 12,587 | |
Proceeds from the sales of cost-based investments | 0 | 1,165 | |
Proceeds from the sale of subscriber list, net | 673 | 0 | |
Net cash provided by / (used in) investing activities | 2,682 | -23,647 | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds received from stock option exercises | 60 | 153 | |
Change in restricted cash | -470 | 0 | |
Dividends paid | 0 | -2 | |
Net cash (used in) / provided by financing activities | -410 | 151 | |
Net decrease in cash | -5,446 | -21,039 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 19,925 | 38,453 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $14,479 | $17,414 | |
[1] | As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $1.4 million and $3.1 million for the nine months ended September 30, 2013 and 2012, respectively. Included in non-cash equity compensation expense for the nine months ended September 30, 2013 were net reversals of expense of approximately $0.03 million. The nine months ended September 30, 2012 include net expense of $(0.02) million, which was generated in connection with restructuring activities. Accordingly, these amounts are reflected as restructuring charges in the Company's consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively. |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General |
Martha Stewart Living Omnimedia, Inc., together with its subsidiaries, is herein referred to as “we,” “us,” “our,” or the “Company.” | |
The information included in the foregoing interim consolidated financial statements is unaudited. In the opinion of management, all adjustments, all of which are of a normal recurring nature and necessary for a fair presentation of the results of operations for the interim periods presented, have been reflected therein. The results of operations for interim periods do not necessarily indicate the results to be expected for the entire year. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) with respect to the Company’s fiscal year ended December 31, 2012 (the “2012 Form 10-K”) which may be accessed through the SEC’s website at http://www.sec.gov. | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management does not expect such differences to have a material effect on the Company’s consolidated financial statements. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies |
Recent accounting standards | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-02, "Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” ("ASU 2013-02") which supersedes and replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income" and 2011-12 "Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05" for all public organizations. The amendment requires an entity to provide additional information about reclassifications out of accumulated other comprehensive income. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. The adoption of ASU 2013-02 concerns disclosure only and the Company does not expect ASU 2013-02 to have an impact on its consolidated financial position, results of operations or cash flows. The Company adopted ASU 2013-02 on January 1, 2013 and has elected to present the required disclosures in the Notes to Consolidated Financial Statements, specifically Note 4, Accumulated Other Comprehensive Loss, in this Quarterly Report on Form 10-Q. | |
In July 2012, the FASB issued ASU 2012-02, "Intangibles - Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment" ("ASU 2012-02"), which amended Accounting Standards Codification ("ASC") 350, "Intangibles - Goodwill and Other" ("ASC 350"). This amendment is intended to simplify how an entity tests indefinite-lived intangible assets for impairment and allows an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity no longer is required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is more likely than not the indefinite-lived intangible asset is impaired. The more-likely-than-not threshold is defined as having a likelihood of more than 50%. ASU 2012-02 was effective for the Company beginning January 1, 2013. The adoption of ASU 2012-02 did not have an impact on its consolidated financial position, results of operations or cash flows. | |
The Company’s other significant accounting policies are discussed in detail in its 2012 Form 10-K. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
The Company categorizes its assets and liabilities measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: | |||||||||||||||||
• | Level 1: Observable inputs such as quoted prices for identical assets and liabilities in active markets obtained from independent sources. | ||||||||||||||||
• | Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of the Company’s level 2 securities are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case a weighted average market price is used. | ||||||||||||||||
• | Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the asset or liability. | ||||||||||||||||
The following tables present the Company’s assets that are measured at fair value on a recurring basis: | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
(in thousands) | Quoted | Significant | Significant | Total | |||||||||||||
Market | Other | Unobservable | Fair Value | ||||||||||||||
Prices in | Observable | Inputs | Measurements | ||||||||||||||
Active | Inputs | (Level 3) | |||||||||||||||
Markets for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Mutual fund | $ | 2,487 | $ | — | $ | — | $ | 2,487 | |||||||||
U.S. government and agency securities | — | 2,964 | — | 2,964 | |||||||||||||
Corporate obligations | — | 14,131 | * | — | 14,131 | ||||||||||||
Other fixed income securities | — | 441 | — | 441 | |||||||||||||
International securities | — | 3,809 | — | 3,809 | |||||||||||||
Municipal obligations | — | 1,972 | — | 1,972 | |||||||||||||
Total short-term investments | $ | 2,487 | $ | 23,317 | $ | — | $ | 25,804 | |||||||||
* Included in this amount is a $4.5 million corporate obligation which has been used to collateralize the Company's line of credit with Bank of America, and is included in the line item "Restricted cash and investments," a component of current assets, on the consolidated balance sheets. See Note 5, Credit Facilities, for further details. | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
(in thousands) | Quoted | Significant | Significant | Total | |||||||||||||
Market | Other | Unobservable | Fair Value | ||||||||||||||
Prices in | Observable | Inputs | Measurements | ||||||||||||||
Active | Inputs | (Level 3) | |||||||||||||||
Markets for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Mutual fund | $ | 2,507 | $ | — | $ | — | $ | 2,507 | |||||||||
U.S. government and agency securities | — | 3,510 | — | 3,510 | |||||||||||||
Corporate obligations | — | 12,796 | — | 12,796 | |||||||||||||
Other fixed income securities | — | 588 | — | 588 | |||||||||||||
International securities | — | 9,781 | — | 9,781 | |||||||||||||
Total | $ | 2,507 | $ | 26,675 | $ | — | $ | 29,182 | |||||||||
Assets measured at fair value on a nonrecurring basis | |||||||||||||||||
The Company’s non-financial assets, such as goodwill, intangible assets and property and equipment, are initially measured at cost or fair value. In the event there is an indicator of impairment, such asset's carrying value is adjusted to current fair value only when an impairment charge is recognized. Such impairment charges incorporate fair value measurements based on Level 3 inputs. | |||||||||||||||||
The Company has no liabilities that are measured at fair value on a recurring basis. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss |
The total net loss realized from accumulated other comprehensive loss was $0.1 million and $0.5 million for the three and nine months ended September 30, 2013, respectively. These amounts have been presented as "Other (expense) / income, net," on the consolidated statements of operations. |
Credit_Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities |
In May 2013, pursuant to the Amendment to Amended and Restated Loan Agreement between the Company and Bank of America, N.A., (the "Amended Credit Agreement"), the Company reduced its line of credit with Bank of America from $10.0 million to $5.0 million. Borrowings under this line of credit are available for investment opportunities, working capital, and the issuance of letters of credit. The annual interest rate on outstanding amounts is equal to a floating rate of 1-month LIBOR Daily Floating Rate plus 1.85%. The unused commitment fee is equal to 0.25%. In connection with the Amended Credit Agreement, the Company entered into a Pledge Agreement, which provides that the line of credit must be secured by cash or investment collateral. This restricted amount is included in the line item "Restricted cash and investments," a component of current assets, on the consolidated balance sheets. | |
The Amended Credit Agreement expires June 12, 2014, at which time any outstanding amounts borrowed under the agreement are then due and payable. As of September 30, 2013 and December 31, 2012, the Company had no outstanding borrowings against its line of credit or the predecessor line of credit, but had outstanding letters of credit of $1.6 million on both dates. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
In August 2013, the Company entered into an agreement with agents of the State of Delaware (“the State”) who will assist in administrating the State’s abandoned property reporting outreach program (“VDA Program”) in which the Company is enrolled and under which the Company will disclose information regarding its compliance with certain abandoned property procedures. As the VDA Program is in its early stages, the Company cannot quantify the State’s findings, if any, on its consolidated results of operations, financial condition, or liquidity. In the normal course of conduct, the Company records amounts due for abandoned property. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes |
The Company follows ASC Topic 740, Income Taxes (“ASC 740”). Under the asset and liability method of ASC 740, deferred assets and liabilities are recognized for the future costs and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company periodically reviews the requirements for a valuation allowance and makes adjustments to such allowances when changes in circumstances result in changes in the Company’s judgment about the future realization of deferred tax assets. ASC 740 places greater emphasis on historical information, such as the Company’s cumulative operating results than it places on estimates of future taxable income. Therefore, the Company has added $4.3 million to its valuation allowance in the nine months ended September 30, 2013, resulting in a cumulative balance of $93.2 million. The Company considered all income sources, including other comprehensive income, in determining the amount of deferred taxes recorded. The Company has recorded $1.1 million of tax expense during the nine months ended September 30, 2013, which is primarily attributable to differences between the financial statement carrying amounts of past acquisitions of certain indefinite-lived intangible assets and their respective tax bases. As a result, the Company has a cumulative net deferred tax liability of $8.0 million at September 30, 2013. The Company intends to maintain a valuation allowance until evidence would support the conclusion that it is more likely than not that the deferred tax asset will be realized. | |
ASC 740 further establishes guidance on the accounting for uncertain tax positions. As of September 30, 2013, the Company had a liability for uncertain tax positions balance of $0.07 million, of which $0.05 million represented unrecognized tax benefits, which if recognized at some point in the future would favorably impact the effective tax rate, and $0.02 million of interest expense. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2005 and state examinations for the years before 2003. |
Gain_on_Sale_of_Subscriber_Lis
Gain on Sale of Subscriber List, net | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gain on Sale of Subscriber List, net | Gain on Sale of Subscriber List, net |
On January 2, 2013 the Company sold certain intangible assets related to Whole Living magazine in exchange for consideration of approximately $1.0 million. Pursuant to the sale, the subscription contracts for the print and digital editions of the magazine, as well as the rights and benefits of the subscribers, were transferred to the buyer. The agreement also required that the Company reimburse the buyer up to $0.1 million for customer refunds resulting from the transaction and paid by the buyer through June 30, 2013. Accordingly, the Company received $0.9 million in cash on the close of the transaction, and, in early July 2013, received the remainder of the refund reserve which was not utilized by the buyer. As a result of selling the Whole Living subscriber list, and thus transferring the subscription liability fulfillment obligation to the buyer, the Company recorded its' existing $2.2 million deferred subscription revenue, resulting in a gain of $2.7 million as a component of operations. This gain on sale of subscriber list, net, reflected on the Company's consolidated statement of operations for the nine months ended September 30, 2013, was recorded within the Publishing segment and consisted of the $1.0 million list sale price, less broker fees and other costs of $0.5 million incurred in connection with the transaction, as well as the $2.2 million release of the deferred subscription revenue liability. |
Industry_Segments
Industry Segments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Industry Segments | Industry Segments | |||||||||||||||||||
The Company is an integrated media and merchandising company providing consumers with inspiring lifestyle content and programming, and well-designed, high-quality products. The Company’s business segments are Publishing, Merchandising and Broadcasting. | ||||||||||||||||||||
The Publishing segment primarily consists of the Company’s operations related to its magazines (Martha Stewart Living, Martha Stewart Weddings, and special interest publications) and books, as well as its digital operations, which includes the content-driven website, marthastewart.com, and the digital distribution of video content. Publishing segment results can vary from quarter to quarter due to publication schedules and seasonality of certain types of advertising. Certain costs vary from quarter to quarter, particularly newsstand marketing costs associated with the distribution of the Company's magazines. As part of the Company's restructuring announced in November 2012, Everyday Food ceased publication as a stand-alone title with its December 2012 issue and Whole Living was discontinued after its January/February 2013 issue. | ||||||||||||||||||||
The Merchandising segment primarily consists of the Company’s operations related to the design and branding of merchandise and related collateral and packaging materials that are manufactured and distributed by its retail and wholesale partners in exchange for royalty income. Revenues from the Merchandising segment can vary significantly from quarter to quarter due to changes in product mix, new product launches and the performance of certain seasonal product lines. The Merchandising segment also includes the licensing of talent services for television programming produced by third parties. | ||||||||||||||||||||
In 2012, the Company significantly restructured its Broadcasting segment, which included the termination of the Company's live audience television production operations. Subsequent to the restructuring, the Broadcasting segment consists of the Company's limited television production operations, television content library licensing and satellite radio operations. While future revenues and assets from these operations are not expected to be significant, the Company plans to continue reporting activities under the Broadcasting segment to provide historical context. | ||||||||||||||||||||
Segment information for the three months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||||||||
(in thousands) | Publishing | Merchandising | Broadcasting | Corporate | Consolidated | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 19,401 | $ | 14,153 | $ | 294 | $ | — | $ | 33,848 | ||||||||||
Non–cash equity compensation | (85 | ) | (57 | ) | (1 | ) | (276 | ) | (419 | ) | ||||||||||
Depreciation and amortization | (200 | ) | (12 | ) | (1 | ) | (634 | ) | (847 | ) | ||||||||||
Operating (loss) / income | (6,260 | ) | 9,479 | (214 | ) | (7,081 | ) | (4,076 | ) | |||||||||||
2012 | ||||||||||||||||||||
Revenues | $ | 27,572 | $ | 13,233 | $ | 2,744 | $ | — | $ | 43,549 | ||||||||||
Non–cash equity compensation | (169 | ) | (75 | ) | (11 | ) | (702 | ) | (957 | ) | ||||||||||
Depreciation and amortization | (187 | ) | (14 | ) | (87 | ) | (715 | ) | (1,003 | ) | ||||||||||
Restructuring charges | (491 | ) | — | — | — | (491 | ) | |||||||||||||
Goodwill impairment | (44,257 | ) | — | — | — | (44,257 | ) | |||||||||||||
Operating (loss) / income | (51,264 | ) | 8,525 | 281 | (8,231 | ) | (50,689 | ) | ||||||||||||
Segment information for the nine months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||||||||
(in thousands) | Publishing | Merchandising | Broadcasting | Corporate | Consolidated | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 68,073 | $ | 41,776 | $ | 3,421 | $ | — | $ | 113,270 | ||||||||||
Non–cash equity compensation * | (330 | ) | (181 | ) | (7 | ) | (863 | ) | (1,381 | ) | ||||||||||
Depreciation and amortization | (729 | ) | (39 | ) | (26 | ) | (2,146 | ) | (2,940 | ) | ||||||||||
Restructuring charges * | (140 | ) | (392 | ) | — | (143 | ) | (675 | ) | |||||||||||
Gain on sale of subscriber list, net | 2,724 | — | — | — | 2,724 | |||||||||||||||
Operating (loss) / income | (12,994 | ) | 26,872 | 1,812 | (23,447 | ) | (7,757 | ) | ||||||||||||
2012 | ||||||||||||||||||||
Revenues | $ | 87,208 | $ | 41,355 | $ | 12,701 | $ | — | $ | 141,264 | ||||||||||
Non–cash equity compensation * | (484 | ) | (378 | ) | (42 | ) | (2,197 | ) | (3,101 | ) | ||||||||||
Depreciation and amortization | (552 | ) | (37 | ) | (305 | ) | (2,134 | ) | (3,028 | ) | ||||||||||
Restructuring charges * | (584 | ) | (81 | ) | (529 | ) | (74 | ) | (1,268 | ) | ||||||||||
Goodwill impairment | (44,257 | ) | — | — | — | (44,257 | ) | |||||||||||||
Operating (loss) / income | (59,686 | ) | 28,147 | (599 | ) | (25,618 | ) | (57,756 | ) | |||||||||||
Total assets ** | 24,538 | 80,833 | 20,740 | 26,085 | 152,196 | |||||||||||||||
* As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $1.4 million and $3.1 million for the nine months ended September 30, 2013 and 2012, respectively. Included in non-cash equity compensation expense for the nine months ended September 30, 2013 were net reversals of expense of approximately $0.03 million. The nine months ended September 30, 2012 include net expense of $(0.02) million, which was generated in connection with restructuring activities. Accordingly, these amounts are reflected as restructuring charges in the Company's consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
** In accordance with ASC 280, Segment Reporting, total assets are disclosed as of September 30, 2012 in order to reflect the material change in the Publishing segment’s goodwill from the amount disclosed as of December 31, 2011. |
Other_Information
Other Information | 9 Months Ended |
Sep. 30, 2013 | |
Other Information [Abstract] | |
Other Information | Other Information |
Production, distribution and editorial expenses; selling and promotion expenses; and general and administrative expenses are each presented exclusive of depreciation and amortization, as well as restructuring charges, which are disclosed separately on the Company's consolidated statements of operations. Additionally, certain prior year amounts have been reclassified to conform to the current year presentation. |
Legal_Matters
Legal Matters | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters |
On January 23, 2012, Macy's Inc. and Macy's Merchandising Group, Inc. ( collectively, "Macy's") filed a lawsuit against the Company in the Supreme Court of the State of New York, County of New York titled Macy's, Inc. and Macy's Merchandising Group, Inc. v. Martha Stewart Living Omnimedia, Inc. In such lawsuit, Macy's claims that the Company's planned activities under the Company's commercial agreement with J.C. Penney Corporation, Inc. ("J.C. Penney") materially breach the agreement between the Company and Macy's Merchandising Group, Inc. dated April 3, 2006 (the "Agreement"). Macy's seeks a declaratory judgment, preliminary and permanent injunctive relief, and incidental and other damages. The Court entered a preliminary injunction on July 31, 2012 which limited the Company's activities with J.C. Penney in certain respects. In November 2012, Macy's amended its complaint to assert a second claim which alleges additional breaches of the Agreement. In January 2013, the lawsuit was consolidated with an action titled Macy's Inc. and Macy's Merchandising Group, Inc. v. J.C. Penney Corporation, Inc. The trial of the consolidated cases began on February 20, 2013. During a break in the trial in March 2013, the Court ordered mediation among the parties. The mediation did not result in a settlement and the trial resumed on April 7, 2013. On April 10 and 11, 2013, the Court dismissed the portions of the claim regarding confidentiality and disgorgement of profits, but did not dismiss the portion of Macy's claim that the Company is prohibited from designing for third parties in certain product categories. | |
On April 12, 2013, the Court denied Macy's request to expand the existing preliminary injunction against J.C. Penney and the Company. Macy's filed an appeal of that denial, as well as an appeal of the Court's decisions on April 10 and 11, 2013. On April 30, 2013, the New York State Supreme Court's Appellate Division, First Department, denied Macy's request for a preliminary injunction blocking the sale of goods at J.C. Penney. Closing arguments in the underlying case were heard on August 1, 2013. The Company believes that it has meritorious defenses to the claims made by Macy's, and the Company is vigorously defending such claims. Litigation costs in this matter are significant. | |
As set forth in Note 12, Subsequent Events, below, on October 21, 2013, the Company entered into a revised agreement with J.C. Penney. | |
The Company is also party to legal proceedings in the ordinary course of business, including product liability claims for which the Company is indemnified by its licensees. Other than the Macy's proceedings, none of these proceedings is deemed material. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On October 21, 2013, the Company and J.C. Penney entered into an amendment to their original commercial agreement, dated December 6, 2011, covering the companies' licensing partnership. Under this amendment, which reduced the term of the original commercial agreement from ten years to four and a half years, the Company will continue to design Martha Stewart branded products in the following categories: window treatments and hardware, lighting, holiday and celebrations, in exchange for design fees and guaranteed minimum royalty payments. Pursuant to the amendment, J.C. Penney made an upfront payment of the 2014 guaranteed minimum royalty, returned 11,000,000 shares of the Company's Class A Common Stock and one share of the Company's Series A Preferred Stock and removed its directors from the Board. Upon cancellation of the Series A Preferred Stock, J.C. Penney no longer has the right to designate directors to the Board. | |
On October 28, 2013, the Company announced the appointment of Daniel W. Dienst, a member of our Board, to the position of Chief Executive Officer. Mr. Dienst joined the Company’s Board in August 2013. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Assets Measured At Fair Value | The following tables present the Company’s assets that are measured at fair value on a recurring basis: | ||||||||||||||||
30-Sep-13 | |||||||||||||||||
(in thousands) | Quoted | Significant | Significant | Total | |||||||||||||
Market | Other | Unobservable | Fair Value | ||||||||||||||
Prices in | Observable | Inputs | Measurements | ||||||||||||||
Active | Inputs | (Level 3) | |||||||||||||||
Markets for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Mutual fund | $ | 2,487 | $ | — | $ | — | $ | 2,487 | |||||||||
U.S. government and agency securities | — | 2,964 | — | 2,964 | |||||||||||||
Corporate obligations | — | 14,131 | * | — | 14,131 | ||||||||||||
Other fixed income securities | — | 441 | — | 441 | |||||||||||||
International securities | — | 3,809 | — | 3,809 | |||||||||||||
Municipal obligations | — | 1,972 | — | 1,972 | |||||||||||||
Total short-term investments | $ | 2,487 | $ | 23,317 | $ | — | $ | 25,804 | |||||||||
* Included in this amount is a $4.5 million corporate obligation which has been used to collateralize the Company's line of credit with Bank of America, and is included in the line item "Restricted cash and investments," a component of current assets, on the consolidated balance sheets. See Note 5, Credit Facilities, for further details. | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
(in thousands) | Quoted | Significant | Significant | Total | |||||||||||||
Market | Other | Unobservable | Fair Value | ||||||||||||||
Prices in | Observable | Inputs | Measurements | ||||||||||||||
Active | Inputs | (Level 3) | |||||||||||||||
Markets for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Short-term investments: | |||||||||||||||||
Mutual fund | $ | 2,507 | $ | — | $ | — | $ | 2,507 | |||||||||
U.S. government and agency securities | — | 3,510 | — | 3,510 | |||||||||||||
Corporate obligations | — | 12,796 | — | 12,796 | |||||||||||||
Other fixed income securities | — | 588 | — | 588 | |||||||||||||
International securities | — | 9,781 | — | 9,781 | |||||||||||||
Total | $ | 2,507 | $ | 26,675 | $ | — | $ | 29,182 | |||||||||
Industry_Segments_Tables
Industry Segments (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Information | Segment information for the three months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||||
(in thousands) | Publishing | Merchandising | Broadcasting | Corporate | Consolidated | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 19,401 | $ | 14,153 | $ | 294 | $ | — | $ | 33,848 | ||||||||||
Non–cash equity compensation | (85 | ) | (57 | ) | (1 | ) | (276 | ) | (419 | ) | ||||||||||
Depreciation and amortization | (200 | ) | (12 | ) | (1 | ) | (634 | ) | (847 | ) | ||||||||||
Operating (loss) / income | (6,260 | ) | 9,479 | (214 | ) | (7,081 | ) | (4,076 | ) | |||||||||||
2012 | ||||||||||||||||||||
Revenues | $ | 27,572 | $ | 13,233 | $ | 2,744 | $ | — | $ | 43,549 | ||||||||||
Non–cash equity compensation | (169 | ) | (75 | ) | (11 | ) | (702 | ) | (957 | ) | ||||||||||
Depreciation and amortization | (187 | ) | (14 | ) | (87 | ) | (715 | ) | (1,003 | ) | ||||||||||
Restructuring charges | (491 | ) | — | — | — | (491 | ) | |||||||||||||
Goodwill impairment | (44,257 | ) | — | — | — | (44,257 | ) | |||||||||||||
Operating (loss) / income | (51,264 | ) | 8,525 | 281 | (8,231 | ) | (50,689 | ) | ||||||||||||
Segment information for the nine months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||||||||
(in thousands) | Publishing | Merchandising | Broadcasting | Corporate | Consolidated | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 68,073 | $ | 41,776 | $ | 3,421 | $ | — | $ | 113,270 | ||||||||||
Non–cash equity compensation * | (330 | ) | (181 | ) | (7 | ) | (863 | ) | (1,381 | ) | ||||||||||
Depreciation and amortization | (729 | ) | (39 | ) | (26 | ) | (2,146 | ) | (2,940 | ) | ||||||||||
Restructuring charges * | (140 | ) | (392 | ) | — | (143 | ) | (675 | ) | |||||||||||
Gain on sale of subscriber list, net | 2,724 | — | — | — | 2,724 | |||||||||||||||
Operating (loss) / income | (12,994 | ) | 26,872 | 1,812 | (23,447 | ) | (7,757 | ) | ||||||||||||
2012 | ||||||||||||||||||||
Revenues | $ | 87,208 | $ | 41,355 | $ | 12,701 | $ | — | $ | 141,264 | ||||||||||
Non–cash equity compensation * | (484 | ) | (378 | ) | (42 | ) | (2,197 | ) | (3,101 | ) | ||||||||||
Depreciation and amortization | (552 | ) | (37 | ) | (305 | ) | (2,134 | ) | (3,028 | ) | ||||||||||
Restructuring charges * | (584 | ) | (81 | ) | (529 | ) | (74 | ) | (1,268 | ) | ||||||||||
Goodwill impairment | (44,257 | ) | — | — | — | (44,257 | ) | |||||||||||||
Operating (loss) / income | (59,686 | ) | 28,147 | (599 | ) | (25,618 | ) | (57,756 | ) | |||||||||||
Total assets ** | 24,538 | 80,833 | 20,740 | 26,085 | 152,196 | |||||||||||||||
* As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $1.4 million and $3.1 million for the nine months ended September 30, 2013 and 2012, respectively. Included in non-cash equity compensation expense for the nine months ended September 30, 2013 were net reversals of expense of approximately $0.03 million. The nine months ended September 30, 2012 include net expense of $(0.02) million, which was generated in connection with restructuring activities. Accordingly, these amounts are reflected as restructuring charges in the Company's consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
** In accordance with ASC 280, Segment Reporting, total assets are disclosed as of September 30, 2012 in order to reflect the material change in the Publishing segment’s goodwill from the amount disclosed as of December 31, 2011. |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets Measured At Fair Value) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | $25,804 | $29,182 | |
Mutual Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 2,487 | 2,507 | |
U.S. Government And Agency Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 2,964 | 3,510 | |
Corporate Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 14,131 | 12,796 | |
Other Fixed Income Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 441 | 588 | |
International Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 3,809 | 9,781 | |
Municipal Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 1,972 | ||
Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 2,487 | 2,507 | |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 2,487 | 2,507 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 23,317 | 26,675 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government And Agency Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 2,964 | 3,510 | |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 14,131 | [1] | 12,796 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | Line of Credit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 4,500 | [1] | |
Significant Other Observable Inputs (Level 2) [Member] | Other Fixed Income Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 441 | 588 | |
Significant Other Observable Inputs (Level 2) [Member] | International Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 3,809 | 9,781 | |
Significant Other Observable Inputs (Level 2) [Member] | Municipal Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | $1,972 | ||
[1] | Included in this amount is a $4.5 million corporate obligation which has been used to collateralize the Company's line of credit with Bank of America, and is included in the line item "Restricted cash and investments," a component of current assets, on the consolidated balance sheets. See Note 5, Credit Facilities, for further details. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income, net | $194 | $327 | $571 | $908 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income, net | $100 | $500 |
Credit_Facilities_Additional_I
Credit Facilities - Additional Information (Detail) (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | 31-May-13 | Apr. 30, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ||||
Line of credit, previous maximum borrowing capacity | $10,000,000 | |||
Line of credit facility, current borrowing capacity | 5,000,000 | |||
Interest rate description | 1-month LIBOR Daily Floating Rate plus 1.85% | |||
Spread over LIBOR | 1.85% | |||
Unused commitment fees | 0.25% | |||
Outstanding borrowing under line of credit | 0 | 0 | ||
Outstanding letters of credit | $1,600,000 | $1,600,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Amount added to valuation allowance | $4,300,000 | |||
Cumulative valuation allowance | 93,200,000 | 93,200,000 | ||
Tax expense | 337,000 | 410,000 | 1,076,000 | 1,209,000 |
Deferred tax liability, indefinite-lived intangible assets | 8,000,000 | 8,000,000 | ||
Unrecognized tax benefits | 70,000 | 70,000 | ||
Unrecognized tax benefits, which if recognized would impact on effective tax rate | 50,000 | 50,000 | ||
Interest on income tax | $20,000 |
Gain_on_Sale_of_Subscriber_Lis1
Gain on Sale of Subscriber List, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jan. 02, 2013 | |
Whole Living Magazine [Member] | Whole Living Magazine [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale price | $1,000,000 | |||||
Amount of contingent liability related to customer refunds | 100,000 | |||||
Cash received from sale | 900,000 | |||||
Deferred revenue recorded in operations as a result of sale | 2,200,000 | |||||
Gain on sale of subscriber list, net | 0 | 0 | 2,724,000 | 0 | 2,724,000 | |
Broker fees and other costs | $500,000 |
Industry_Segments_Segment_Info
Industry Segments - Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Segment Reporting Information [Line Items] | ||||||||
Publishing Revenues | $19,401,000 | $27,572,000 | $68,073,000 | $87,208,000 | ||||
Merchandising Revenues | 14,153,000 | 13,233,000 | 41,776,000 | 41,355,000 | ||||
Broadcasting Revenues | 294,000 | 2,744,000 | 3,421,000 | 12,701,000 | ||||
Consolidated Revenues | 33,848,000 | 43,549,000 | 113,270,000 | 141,264,000 | ||||
Non-cash equity compensation | -419,000 | -957,000 | -1,381,000 | [1] | -3,101,000 | [1] | ||
Depreciation and amortization | -847,000 | -1,003,000 | -2,940,000 | -3,028,000 | ||||
Restructuring charges | 0 | -491,000 | -675,000 | [1] | -1,268,000 | [1] | ||
Goodwill, Impairment Loss | 0 | -44,257,000 | 0 | -44,257,000 | [1] | |||
Gain on sale of subscriber list, net | 0 | 0 | 2,724,000 | 0 | ||||
Operating income/(loss) | -4,076,000 | -50,689,000 | -7,757,000 | -57,756,000 | ||||
Share-based compensation | 1,356,000 | 3,118,000 | ||||||
Share-based compensation, net reversals of expense related to restructuring activities | 30,000 | -20,000 | ||||||
Assets | 133,233,000 | 152,196,000 | [2] | 133,233,000 | 152,196,000 | [2] | 154,260,000 | |
Publishing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Publishing Revenues | 19,401,000 | 27,572,000 | 68,073,000 | 87,208,000 | ||||
Non-cash equity compensation | -85,000 | -169,000 | -330,000 | [1] | -484,000 | [1] | ||
Depreciation and amortization | -200,000 | -187,000 | -729,000 | -552,000 | ||||
Restructuring charges | -491,000 | -140,000 | [1] | -584,000 | [1] | |||
Goodwill, Impairment Loss | -44,257,000 | -44,257,000 | [1] | |||||
Gain on sale of subscriber list, net | 2,724,000 | |||||||
Operating income/(loss) | -6,260,000 | -51,264,000 | -12,994,000 | -59,686,000 | ||||
Assets | 24,538,000 | [2] | 24,538,000 | [2] | ||||
Merchandising [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Merchandising Revenues | 14,153,000 | 13,233,000 | 41,776,000 | 41,355,000 | ||||
Non-cash equity compensation | -57,000 | -75,000 | -181,000 | [1] | -378,000 | [1] | ||
Depreciation and amortization | -12,000 | -14,000 | -39,000 | -37,000 | ||||
Restructuring charges | 0 | -392,000 | [1] | -81,000 | [1] | |||
Gain on sale of subscriber list, net | 0 | |||||||
Operating income/(loss) | 9,479,000 | 8,525,000 | 26,872,000 | 28,147,000 | ||||
Assets | 80,833,000 | [2] | 80,833,000 | [2] | ||||
Broadcasting [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Broadcasting Revenues | 294,000 | 2,744,000 | 3,421,000 | 12,701,000 | ||||
Non-cash equity compensation | -1,000 | -11,000 | -7,000 | [1] | -42,000 | [1] | ||
Depreciation and amortization | -1,000 | -87,000 | -26,000 | -305,000 | ||||
Restructuring charges | 0 | 0 | [1] | -529,000 | [1] | |||
Gain on sale of subscriber list, net | 0 | |||||||
Operating income/(loss) | -214,000 | 281,000 | 1,812,000 | -599,000 | ||||
Assets | 20,740,000 | [2] | 20,740,000 | [2] | ||||
Corporate [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Non-cash equity compensation | -276,000 | -702,000 | -863,000 | [1] | -2,197,000 | [1] | ||
Depreciation and amortization | -634,000 | -715,000 | -2,146,000 | -2,134,000 | ||||
Restructuring charges | 0 | -143,000 | [1] | -74,000 | [1] | |||
Gain on sale of subscriber list, net | 0 | |||||||
Operating income/(loss) | -7,081,000 | -8,231,000 | -23,447,000 | -25,618,000 | ||||
Assets | $26,085,000 | [2] | $26,085,000 | [2] | ||||
[1] | As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $1.4 million and $3.1 million for the nine months ended September 30, 2013 and 2012, respectively. Included in non-cash equity compensation expense for the nine months ended September 30, 2013 were net reversals of expense of approximately $0.03 million. The nine months ended September 30, 2012 include net expense of $(0.02) million, which was generated in connection with restructuring activities. Accordingly, these amounts are reflected as restructuring charges in the Company's consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively. | |||||||
[2] | In accordance with ASC 280, Segment Reporting, total assets are disclosed as of September 30, 2012 in order to reflect the material change in the Publishing segmentbs goodwill from the amount disclosed as of December 31, 2011. |
Subsequent_Events_Subsequent_E
Subsequent Events Subsequent Event (Details) | 9 Months Ended | 0 Months Ended | ||
Sep. 30, 2013 | Oct. 21, 2013 | Oct. 21, 2013 | Oct. 21, 2013 | |
Subsequent Event | Common Stock [Member] | Preferred Stock [Member] | ||
Class A Common Stock [Member] | Series A Preferred Stock [Member] | |||
Subsequent Event | Subsequent Event | |||
Subsequent Event [Line Items] | ||||
Commercial Agreement, Term | 10 years | 4 years 6 months | ||
Shares returned by JCP | 11,000,000 | 1 |