Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |||
Mar. 31, 2014 | 2-May-14 | 2-May-14 | 2-May-14 | |
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 | 31-Mar-14 | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' | ' |
Trading Symbol | 'MSO | ' | ' | ' |
Entity Registrant Name | 'MARTHA STEWART LIVING OMNIMEDIA INC | ' | ' | ' |
Entity Central Index Key | '0001091801 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 56,939,138 | 31,204,513 | 25,734,625 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $18,014 | $21,884 |
Short-term investments | 42,107 | 19,268 |
Restricted cash and investments | 5,015 | 5,072 |
Accounts receivable, net | 19,795 | 39,694 |
Paper inventory | 2,034 | 2,901 |
Other current assets | 3,076 | 3,876 |
Total current assets | 90,041 | 92,695 |
PROPERTY AND EQUIPMENT, net | 5,209 | 7,961 |
GOODWILL | 850 | 850 |
OTHER INTANGIBLE ASSETS, net | 45,200 | 45,200 |
OTHER NONCURRENT ASSETS | 1,548 | 1,661 |
Total assets | 142,848 | 148,367 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued liabilities | 11,828 | 12,464 |
Accrued payroll and related costs | 5,174 | 8,665 |
Current portion of deferred subscription revenue | 7,020 | 7,632 |
Current portion of other deferred revenue | 20,052 | 17,227 |
Total current liabilities | 44,074 | 45,988 |
DEFERRED SUBSCRIPTION REVENUE | 2,817 | 3,587 |
OTHER DEFERRED REVENUE | 15,212 | 17,307 |
DEFERRED INCOME TAX LIABILITY | 7,040 | 7,094 |
OTHER NONCURRENT LIABILITIES | 3,889 | 3,916 |
Total liabilities | 73,032 | 77,892 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERSb EQUITY | ' | ' |
Capital in excess of par value | 343,702 | 342,213 |
Accumulated deficit | -273,654 | -271,051 |
Accumulated other comprehensive loss | -26 | -479 |
Shareholders' equity before treasury stock | 70,591 | 71,250 |
Less: Class A treasury stock b 59,400 shares at cost | -775 | -775 |
Total shareholdersb equity | 69,816 | 70,475 |
Total liabilities and shareholdersb equity | 142,848 | 148,367 |
Class A Common Stock [Member] | ' | ' |
SHAREHOLDERSb EQUITY | ' | ' |
Common Stock | 312 | 307 |
Class B Common Stock [Member] | ' | ' |
SHAREHOLDERSb EQUITY | ' | ' |
Common Stock | $257 | $260 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | 31,218,064 | 30,704,491 |
Common Stock, shares outstanding | 31,158,664 | 30,645,091 |
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 | 25,734,625 | 25,984,625 |
Common Stock, shares outstanding | 25,734,625 | 25,984,625 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUES | ' | ' | |
Publishing | $19,506 | $24,482 | |
Merchandising | 13,084 | 11,507 | |
Broadcasting | 678 | 1,235 | |
Total revenues | 33,268 | 37,224 | |
Production, distribution and editorial | -15,413 | -20,614 | |
Selling and promotion | -8,097 | -9,651 | |
General and administrative | -8,909 | -11,203 | |
Depreciation and amortization | -3,039 | -967 | |
Restructuring charges | 0 | -523 | [1] |
Gain on sale of subscriber list, net | 0 | 2,689 | |
OPERATING LOSS | -2,190 | -3,045 | |
Interest income, net | 62 | 204 | |
Other expense, net | -494 | -70 | |
LOSS BEFORE INCOME TAXES | -2,622 | -2,911 | |
Income tax benefit / (provision) | 19 | -362 | |
NET LOSS | ($2,603) | ($3,273) | |
LOSS PER SHARE b BASIC AND DILUTED | ' | ' | |
Net loss (in dollars per share) | ($0.05) | ($0.05) | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ' | ' | |
Basic and diluted (in shares) | 56,680,826 | 67,241,626 | |
[1] | As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $0.6 million for the three months ended March 31, 2013. Included in non-cash equity compensation expense were net reversals of expense of approximately $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 three months ended March 31, 2013. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net loss | ($2,603) | ($3,273) |
Other comprehensive income / (loss): | ' | ' |
Amounts reclassified for net realized losses on available-for-sale securities included in net loss | 491 | 66 |
Unrealized losses on available-for-sale securities occurring during the period | -38 | -143 |
Other comprehensive income / (loss) | 453 | -77 |
Total comprehensive loss | ($2,150) | ($3,350) |
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, 2013 | $70,475 | $342,213 | ($271,051) | ($479) | ($775) | $307 | $260 | |
Balance, shares at Dec. 31, 2013 | ' | ' | ' | ' | -59 | 30,705 | 25,985 | |
Net loss | -2,603 | ' | -2,603 | ' | ' | ' | ' | |
Other comprehensive income | 453 | ' | ' | 453 | ' | ' | ' | |
Conversion of shares | [1] | 0 | ' | ' | ' | ' | 3 | -3 |
Conversion of shares, shares | [1] | ' | ' | ' | ' | ' | 250 | -250 |
Issuance of shares of stock in conjunction with stock option exercises | 890 | 888 | ' | ' | ' | 2 | ' | |
Issuance of shares of stock in conjunction with stock option exercises, shares | ' | ' | ' | ' | ' | 277 | ' | |
Issuance of shares of stock and restricted stock, net of cancellations and tax withholdings | 0 | 0 | ' | ' | ' | 0 | ' | |
Issuance of shares of stock and restricted stock, net of cancellations and tax withholdings, shares | ' | ' | ' | ' | ' | -14 | ' | |
Non-cash equity compensation | 601 | 601 | ' | ' | ' | ' | ' | |
Balance at Mar. 31, 2014 | $69,816 | $343,702 | ($273,654) | ($26) | ($775) | $312 | $257 | |
Balance, shares at Mar. 31, 2014 | ' | ' | ' | ' | -59 | 31,218 | 25,735 | |
[1] | The converted shares of Class B Common Stock were retired and returned to the authorized but unissued shares of Class B Common Stock. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($2,603) | ($3,273) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Non-cash revenue | -1,768 | -133 |
Depreciation and amortization | 3,039 | 967 |
Non-cash equity compensation | 601 | 558 |
Deferred income tax expense | -54 | 308 |
Gain on sale of subscriber list, net | 0 | -2,689 |
Other non-cash charges, net | 535 | -91 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable, net | 19,899 | 12,875 |
Paper inventory | 867 | 1,077 |
Accounts payable and accrued liabilities and other | -599 | -278 |
Accrued payroll and related costs | -3,491 | -3,651 |
Deferred subscription revenue | -1,382 | -2,132 |
Deferred revenue | 2,498 | -1,429 |
Other changes | 1,016 | -885 |
Total changes in operating assets and liabilities | 18,808 | 5,577 |
Net cash provided by operating activities | 18,558 | 1,224 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -305 | -282 |
Purchases of short-term investments | -25,498 | -2,418 |
Sales of short-term investments | 2,471 | 9,452 |
Proceeds from the sale of subscriber list, net | 0 | 738 |
Net cash (used in) / provided by investing activities | -23,332 | 7,490 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds received from stock option exercises | 890 | 0 |
Change in restricted cash | 14 | 0 |
Net cash provided by financing activities | 904 | 0 |
Net (decrease) / increase in cash | -3,870 | 8,714 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 21,884 | 19,925 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $18,014 | $28,639 |
General
General | 3 Months Ended |
Mar. 31, 2014 | |
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, 2013 (the “2013 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 | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
The Company’s significant accounting policies are discussed in detail in its 2013 Form 10-K. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The Company categorizes its assets 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 Company has no liabilities that are measured at fair value on a recurring basis. The following tables present the Company’s assets that are measured at fair value on a recurring basis: | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
(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: | ||||||||||||||||
Fixed income mutual fund | $ | 2,485 | $ | — | $ | — | $ | 2,485 | ||||||||
U.S. government and agency securities | — | 1,757 | — | 1,757 | ||||||||||||
Corporate obligations | — | 32,576 | * | — | 32,576 | |||||||||||
Other fixed income securities | — | 626 | — | 626 | ||||||||||||
International securities | — | 7,641 | — | 7,641 | ||||||||||||
Municipal obligations | — | 1,474 | — | 1,474 | ||||||||||||
Total | $ | 2,485 | $ | 44,074 | $ | — | $ | 46,559 | ||||||||
31-Dec-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: | ||||||||||||||||
Fixed income mutual fund | $ | 2,485 | $ | — | $ | — | $ | 2,485 | ||||||||
U.S. government and agency securities | — | 2,233 | — | 2,233 | ||||||||||||
Corporate obligations | — | 14,159 | * | — | 14,159 | |||||||||||
Other fixed income securities | — | 361 | — | 361 | ||||||||||||
International securities | — | 3,048 | — | 3,048 | ||||||||||||
Municipal obligations | — | 1,477 | — | 1,477 | ||||||||||||
Total | $ | 2,485 | $ | 21,278 | $ | — | $ | 23,763 | ||||||||
* Included in this amount is a corporate obligation of $4.5 million as of March 31, 2014 and December 31, 2013. This corporate obligation 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 6, Credit Facilities, for further details. | ||||||||||||||||
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. |
ShortTerm_Investments
Short-Term Investments | 3 Months Ended |
Mar. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Short-Term Investments | ' |
Short-Term Investments | |
The Company's investments consist of marketable debt securities that are classified as available-for-sale and presented as "Short-term investments" and a portion of "Restricted cash and investments," both components of current assets on the consolidated balance sheets. The Company's available-for-sale securities represent investments available for current operations and may be sold prior to their stated maturities for strategic or operational reasons. The available-for-sale debt securities are carried at fair value, with the unrealized gains and losses reported in "Accumulated other comprehensive loss." The amortized cost of the available-for-sale debt securities is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method. Such amortization in included in "Interest income, net" on the consolidated statements of operations. | |
Realized gains and losses are included in "Other expense, net" on the consolidated statements of operations. The cost of securities sold is based on the specific identification method. Interest and dividends on available-for-sale securities are included in "Interest income, net" on the consolidated statements of operations. | |
As of March 31, 2014 and December 31, 2013, the Company's amortized cost of its available-for-sale securities approximated fair value. Gross unrealized losses of $(0.05) million, as of March 31, 2014, were partially offset by gross unrealized gains of $0.03 million. As of December 31, 2013, gross unrealized losses of $(0.5) million were partially offset by gross unrealized gains of $0.03 million. The Company considered the declines in market value of its marketable available-for-sale securities investment portfolio to be temporary in nature and did not consider any of its investments other-than-temporarily impaired as of March 31, 2014 and December 31, 2013. Contractual maturities for the Company's available-for-sale securities are generally within two years of March 31, 2014. | |
During the three months ended March 31, 2014, the gross realized gains and losses on sales of available-for-sale marketable securities were $0.03 million and $(0.5) million, respectively, and presented net as "Other expense, net" on the consolidated statements of operations, including amounts reclassified out of accumulated other comprehensive loss of $0.03 million and $(0.5) million, respectively. See Note 5, Accumulated Other Comprehensive Loss, for further information. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated other comprehensive income/(loss), included as a component of shareholders' equity, consists of unrealized gains and losses affecting equity that, under GAAP, are excluded from net income/(loss). For the Company, accumulated other comprehensive loss is impacted by unrealized gains/(losses) on available-for-sale securities as of the reporting period date and by reclassification adjustments resulting from sales or maturities of available-for-sale securities. The components of accumulated other comprehensive loss as of March 31, 2014 and December 31, 2013 are set forth in the schedule below: | ||||||||
(in thousands) | Unrealized Gains/(Losses) on Available-for-sale Securities | Total Accumulated Other Comprehensive Loss | ||||||
Balance at December 31, 2013 | $ | (479 | ) | $ | (479 | ) | ||
Amounts reclassified for net realized losses on available-for-sale securities included in net loss * | 491 | 491 | ||||||
Net unrealized losses on available-for-sale securities occurring during the period | (38 | ) | (38 | ) | ||||
Balance at March 31, 2014 | $ | (26 | ) | $ | (26 | ) | ||
* Amounts reclassified for previously unrealized losses on available-for-sale securities are included in "Other expense, net" on the consolidated statements of operations. |
Credit_Facilities
Credit Facilities | 3 Months Ended |
Mar. 31, 2014 | |
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 arranged for a line of credit with Bank of America of $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 of at least $5.0 million. The Company had restricted investments of $4.5 million as of each of March 31, 2014 and December 31, 2013, and restricted cash of $0.6 million on each of these dates. The aggregate of these amounts 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 on June 12, 2014, at which time any outstanding amounts borrowed under the agreement become due and payable. As of March 31, 2014 and December 31, 2013, the Company had no outstanding borrowings against its line of credit or the predecessor line of credit, but had outstanding letters of credit of $1.0 million and $1.6 million, respectively. |
Depreciation_and_Amortization
Depreciation and Amortization | 3 Months Ended |
Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ' |
Depreciation and Amortization | ' |
Depreciation and Amortization | |
Depreciation and amortization expense of $3.0 million for the three months ended March 31, 2014 included $2.1 million from the non-recurring accelerated amortization of leasehold improvements related to the consolidation of the Company's primary office space during February 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
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. 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 assets will be realized. The Company recorded $(0.02) million of net tax benefit during the three months ended March 31, 2014. During the quarter, the Company reduced its overall effective tax rate from 41% to 39% as a result of the 2014 New York corporate tax reform, which was enacted on March 31, 2014. The amount recorded includes a non-recurring tax benefit to revalue deferred tax liabilities as a result of the change in our effective rate and is partially offset by tax expense attributable to differences between the financial statement carrying amounts of past acquisitions of certain indefinite-lived intangible assets and their respective tax bases. | |
ASC 740 further establishes guidance on the accounting for uncertain tax positions. As of March 31, 2014, the Company had a liability for uncertain tax positions balance of $0.06 million, of which $0.04 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. |
Industry_Segments
Industry Segments | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Industry Segments | ' | |||||||||||||||||||
Industry Segments | ||||||||||||||||||||
The Company is an integrated media and merchandising company providing consumers with inspiring lifestyle content 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 and Martha Stewart Weddings) 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. | ||||||||||||||||||||
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. | ||||||||||||||||||||
The Broadcasting segment consists of the Company's limited television production operations, television content library licensing and satellite radio operations. | ||||||||||||||||||||
Segment information for the three months ended March 31, 2014 and 2013 is as follows: | ||||||||||||||||||||
(in thousands) | Publishing | Merchandising | Broadcasting | Corporate | Consolidated | |||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 19,506 | $ | 13,084 | $ | 678 | $ | — | $ | 33,268 | ||||||||||
Non–cash equity compensation | (58 | ) | (53 | ) | (1 | ) | (489 | ) | (601 | ) | ||||||||||
Depreciation and amortization | (170 | ) | (19 | ) | (1 | ) | (2,849 | ) | (3,039 | ) | ||||||||||
Operating (loss) / income | (2,750 | ) | 9,300 | 193 | (8,933 | ) | (2,190 | ) | ||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 24,482 | $ | 11,507 | $ | 1,235 | $ | — | $ | 37,224 | ||||||||||
Non–cash equity compensation * | (144 | ) | (79 | ) | (7 | ) | (353 | ) | (583 | ) | ||||||||||
Depreciation and amortization | (255 | ) | (15 | ) | (24 | ) | (673 | ) | (967 | ) | ||||||||||
Restructuring charges * | — | (392 | ) | — | (131 | ) | (523 | ) | ||||||||||||
Gain on sale of subscriber list, net | 2,689 | — | — | — | 2,689 | |||||||||||||||
Operating (loss) / income | (990 | ) | 5,686 | 961 | (8,702 | ) | (3,045 | ) | ||||||||||||
* As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $0.6 million for the three months ended March 31, 2013. Included in non-cash equity compensation expense were net reversals of expense of approximately $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 three months ended March 31, 2013. |
Other_Information
Other Information | 3 Months Ended |
Mar. 31, 2014 | |
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, restructuring charges and gain on sale of subscriber list, net, 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 | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Matters | ' |
Legal Matters | |
The Company is party to legal proceedings in the ordinary course of business, including product liability claims for which the Company is indemnified by its licensees. None of these proceedings is deemed material. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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: | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
(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: | ||||||||||||||||
Fixed income mutual fund | $ | 2,485 | $ | — | $ | — | $ | 2,485 | ||||||||
U.S. government and agency securities | — | 1,757 | — | 1,757 | ||||||||||||
Corporate obligations | — | 32,576 | * | — | 32,576 | |||||||||||
Other fixed income securities | — | 626 | — | 626 | ||||||||||||
International securities | — | 7,641 | — | 7,641 | ||||||||||||
Municipal obligations | — | 1,474 | — | 1,474 | ||||||||||||
Total | $ | 2,485 | $ | 44,074 | $ | — | $ | 46,559 | ||||||||
31-Dec-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: | ||||||||||||||||
Fixed income mutual fund | $ | 2,485 | $ | — | $ | — | $ | 2,485 | ||||||||
U.S. government and agency securities | — | 2,233 | — | 2,233 | ||||||||||||
Corporate obligations | — | 14,159 | * | — | 14,159 | |||||||||||
Other fixed income securities | — | 361 | — | 361 | ||||||||||||
International securities | — | 3,048 | — | 3,048 | ||||||||||||
Municipal obligations | — | 1,477 | — | 1,477 | ||||||||||||
Total | $ | 2,485 | $ | 21,278 | $ | — | $ | 23,763 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||
The components of accumulated other comprehensive loss as of March 31, 2014 and December 31, 2013 are set forth in the schedule below: | ||||||||
(in thousands) | Unrealized Gains/(Losses) on Available-for-sale Securities | Total Accumulated Other Comprehensive Loss | ||||||
Balance at December 31, 2013 | $ | (479 | ) | $ | (479 | ) | ||
Amounts reclassified for net realized losses on available-for-sale securities included in net loss * | 491 | 491 | ||||||
Net unrealized losses on available-for-sale securities occurring during the period | (38 | ) | (38 | ) | ||||
Balance at March 31, 2014 | $ | (26 | ) | $ | (26 | ) |
Industry_Segments_Tables
Industry Segments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
Segment information for the three months ended March 31, 2014 and 2013 is as follows: | ||||||||||||||||||||
(in thousands) | Publishing | Merchandising | Broadcasting | Corporate | Consolidated | |||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 19,506 | $ | 13,084 | $ | 678 | $ | — | $ | 33,268 | ||||||||||
Non–cash equity compensation | (58 | ) | (53 | ) | (1 | ) | (489 | ) | (601 | ) | ||||||||||
Depreciation and amortization | (170 | ) | (19 | ) | (1 | ) | (2,849 | ) | (3,039 | ) | ||||||||||
Operating (loss) / income | (2,750 | ) | 9,300 | 193 | (8,933 | ) | (2,190 | ) | ||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 24,482 | $ | 11,507 | $ | 1,235 | $ | — | $ | 37,224 | ||||||||||
Non–cash equity compensation * | (144 | ) | (79 | ) | (7 | ) | (353 | ) | (583 | ) | ||||||||||
Depreciation and amortization | (255 | ) | (15 | ) | (24 | ) | (673 | ) | (967 | ) | ||||||||||
Restructuring charges * | — | (392 | ) | — | (131 | ) | (523 | ) | ||||||||||||
Gain on sale of subscriber list, net | 2,689 | — | — | — | 2,689 | |||||||||||||||
Operating (loss) / income | (990 | ) | 5,686 | 961 | (8,702 | ) | (3,045 | ) | ||||||||||||
* As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $0.6 million for the three months ended March 31, 2013. Included in non-cash equity compensation expense were net reversals of expense of approximately $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 three months ended March 31, 2013. |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets Measured At Fair Value) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | $46,559 | $23,763 | ||
Mutual Funds [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 2,485 | 2,485 | ||
U.S. Government And Agency Securities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 1,757 | 2,233 | ||
Corporate Obligations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 32,576 | 14,159 | ||
Other Fixed Income Securities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 626 | 361 | ||
International Securities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 7,641 | 3,048 | ||
Municipal Obligations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 1,474 | 1,477 | ||
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 | 2,485 | 2,485 | ||
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 | 2,485 | 2,485 | ||
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 44,074 | 21,278 | ||
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 | 1,757 | 2,233 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 32,576 | [1] | 14,159 | [1] |
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 | 4,500 | ||
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 | 626 | 361 | ||
Significant Other Observable Inputs (Level 2) [Member] | International Securities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | 7,641 | 3,048 | ||
Significant Other Observable Inputs (Level 2) [Member] | Municipal Obligations [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Short-term investments | $1,474 | $1,477 | ||
[1] | Included in this amount is a corporate obligation of $4.5 million as of MarchB 31, 2014 and December 31, 2013. This corporate obligation 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 6, Credit Facilities, for further details. |
ShortTerm_Investments_Details
Short-Term Investments (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Debt Securities [Member] | Debt Securities [Member] | Accumulated Gross Realized Gain [Member] | Accumulated Gross Realized Loss [Member] | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, gross unrealized loss | ' | ' | ($50,000) | ($500,000) | ' | ' |
Available-for-sale debt securities, gross unrealized gain | ' | ' | 30,000 | 30,000 | ' | ' |
Available-for-sale debt securities, gross realized gain | ' | ' | 30,000 | ' | ' | ' |
Available-for-sale debt securities, gross realized loss | ' | ' | -500,000 | ' | ' | ' |
Other expense, net | ($494,000) | ($70,000) | ' | ' | $30,000 | ($500,000) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | Unrealized Gains/(Losses) on Available-for-sale Securities [Member] | Unrealized Gains/(Losses) on Available-for-sale Securities [Member] | Net Realized Losses on Available-for-Sale Securities Included in Net Loss [Member] | Net Realized Losses on Available-for-Sale Securities Included in Net Loss [Member] | Net Unrealized Losses on Available-for-Sale Securities [Member] | Net Unrealized Losses on Available-for-Sale Securities [Member] | ||||
Unrealized Gains/(Losses) on Available-for-sale Securities [Member] | Unrealized Gains/(Losses) on Available-for-sale Securities [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Beginning balance | ($26) | ($479) | ($26) | ($479) | ' | ' | ' | ' | ||
Reclassifications from accumulated other comprehensive income (loss) | ' | ' | ' | ' | 491 | [1] | 491 | [1] | -38 | -38 |
Ending balance | ($26) | ($479) | ($26) | ($479) | ' | ' | ' | ' | ||
[1] | Amounts reclassified for previously unrealized losses on available-for-sale securities are included in "Other expense, net" on the consolidated statements of operations. |
Credit_Facilities_Details
Credit Facilities (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
31-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' | ' |
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% | ' | ' |
Cash or investment collateral, amount | 5,000,000 | ' | ' |
Restricted investments | ' | 4,500,000 | ' |
Restricted cash | ' | 600,000 | ' |
Outstanding borrowing under line of credit | ' | 0 | 0 |
Outstanding letters of credit | ' | $1,000,000 | $1,600,000 |
Depreciation_and_Amortization_
Depreciation and Amortization (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization | $3,039 | $967 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization | $2,100 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax (benefit) / provision | ($19,000) | $362,000 | ' |
Effective income tax rate | 39.00% | ' | 41.00% |
Unrecognized tax benefits | 60,000 | ' | ' |
Unrecognized tax benefits, which if recognized would impact on effective tax rate | 40,000 | ' | ' |
Interest on income tax | $20,000 | ' | ' |
Industry_Segments_Details
Industry Segments (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | |
Publishing Revenues | $19,506,000 | $24,482,000 | |
Merchandising Revenues | 13,084,000 | 11,507,000 | |
Broadcasting Revenues | 678,000 | 1,235,000 | |
Consolidated Revenues | 33,268,000 | 37,224,000 | |
Non-cash equity compensation | -601,000 | -583,000 | [1] |
Depreciation and amortization | -3,039,000 | -967,000 | |
Restructuring charges | 0 | -523,000 | [1] |
Gain on sale of subscriber list, net | 0 | 2,689,000 | |
Operating income/(loss) | -2,190,000 | -3,045,000 | |
Share-based compensation | 601,000 | 558,000 | |
Share-based compensation, net reversals of expense related to restructuring activities | ' | 20,000 | |
Publishing [Member] | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | |
Publishing Revenues | 19,506,000 | 24,482,000 | |
Non-cash equity compensation | -58,000 | -144,000 | [1] |
Depreciation and amortization | -170,000 | -255,000 | |
Gain on sale of subscriber list, net | ' | 2,689,000 | |
Operating income/(loss) | -2,750,000 | -990,000 | |
Merchandising [Member] | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | |
Merchandising Revenues | 13,084,000 | 11,507,000 | |
Non-cash equity compensation | -53,000 | -79,000 | [1] |
Depreciation and amortization | -19,000 | -15,000 | |
Restructuring charges | ' | -392,000 | [1] |
Operating income/(loss) | 9,300,000 | 5,686,000 | |
Broadcasting [Member] | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | |
Broadcasting Revenues | 678,000 | 1,235,000 | |
Non-cash equity compensation | -1,000 | -7,000 | [1] |
Depreciation and amortization | -1,000 | -24,000 | |
Operating income/(loss) | 193,000 | 961,000 | |
Corporate [Member] | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | |
Non-cash equity compensation | -489,000 | -353,000 | [1] |
Depreciation and amortization | -2,849,000 | -673,000 | |
Restructuring charges | ' | -131,000 | [1] |
Operating income/(loss) | ($8,933,000) | ($8,702,000) | |
[1] | As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $0.6 million for the three months ended March 31, 2013. Included in non-cash equity compensation expense were net reversals of expense of approximately $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 three months ended March 31, 2013. |