Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Entity Registrant Name | A. H. Belo Corp | |
Entity Central Index Key | 1413898 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Series A: Common stock | ||
Entity Common Stock, Shares Outstanding | 19,361,052 | |
Series B: Common stock | ||
Entity Common Stock, Shares Outstanding | 2,388,109 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Operating Revenue | ||
Advertising and marketing services | $36,831 | $37,726 |
Circulation | 21,038 | 21,012 |
Printing, distribution and other | 7,567 | 5,654 |
Total net operating revenues | 65,436 | 64,392 |
Operating Costs and Expense | ||
Employee compensation and benefits | 27,503 | 28,164 |
Other production, distribution and operating costs | 31,460 | 28,444 |
Newsprint, ink and other supplies | 8,166 | 7,988 |
Depreciation | 3,040 | 3,410 |
Amortization | 373 | 30 |
Total operating costs and expense | 70,542 | 68,036 |
Operating loss | -5,106 | -3,644 |
Other Income (Expense), Net | ||
Losses on equity method investments, net | -414 | -408 |
Other income, net | 109 | 117 |
Total other income (expense), net | -305 | -291 |
Loss from Continuing Operations Before Income Taxes | -5,411 | -3,935 |
Income tax provision (benefit) | -5,730 | 891 |
Income (Loss) from Continuing Operations | 319 | -4,826 |
Income from discontinued operations | 0 | 977 |
Loss related to the divestiture of discontinued operations | -12 | -178 |
Tax expense from discontinued operations | 0 | 16 |
Income (Loss) from Discontinued Operations, Net | -12 | 783 |
Net Income (Loss) | 307 | -4,043 |
Net loss attributable to noncontrolling interests | -56 | -6 |
Net Income (Loss) Attributable to A. H. Belo Corporation | $363 | ($4,037) |
Per Share Basis, Basic and Diluted | ||
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $0.02 | ($0.22) |
Income (Loss) from Discontinued Operations, Per Basic and Diluted Share | $0 | $0.03 |
Earnings Per Share, Basic and Diluted | $0.02 | ($0.19) |
Weighted average shares outstanding | ||
Basic | 21,770,698 | 21,918,000 |
Diluted | 21,845,197 | 21,918,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income (Loss) | $307 | ($4,043) |
Other comprehensive income (loss), net of tax | ||
Amortization of net actuarial losses | -312 | 173 |
Total other comprehensive (loss) income | 312 | -173 |
Comprehensive Income (Loss) | 619 | -4,216 |
Comprehensive loss attributable to noncontrolling interests | -56 | -6 |
Total Comprehensive Income (Loss) Attributable to A. H. Belo Corporation | $675 | ($4,210) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $81,442 | $158,171 |
Accounts receivable (net of allowance of $1,380 and $1,262 at March 31, 2015 and December 31, 2014, respectively) | 30,911 | 34,396 |
Inventories | 4,618 | 4,901 |
Prepaids and other current assets | 10,763 | 8,422 |
Deferred income taxes, net | 12 | 0 |
Assets of discontinued operations | 253 | 565 |
Total current assets | 127,999 | 206,455 |
Property, plant and equipment, at cost: | ||
Property, plant and equipment, at cost | 469,158 | 472,186 |
Less accumulated depreciation | -409,342 | -410,597 |
Property, plant and equipment, net | 59,816 | 61,589 |
Intangible assets, net | 12,273 | 656 |
Goodwill | 34,085 | 24,582 |
Investments | 2,577 | 2,572 |
Deferred income taxes, net | 462 | 0 |
Other assets | 2,817 | 2,893 |
Total assets | 240,029 | 298,747 |
Current liabilities: | ||
Accounts payable | 11,723 | 12,904 |
Accrued compensation and benefits | 9,638 | 8,233 |
Dividends Payable | 0 | 50,148 |
Other accrued expense | 4,581 | 13,684 |
Advance subscription payments | 16,451 | 15,894 |
Liabilities of discontinued operations | 150 | 543 |
Total current liabilities | 42,543 | 101,406 |
Long-term pension liabilities | 64,391 | 65,859 |
Other post-employment benefits | 2,530 | 2,656 |
Deferred income taxes, net | 1,041 | 530 |
Other liabilities | 1,461 | 2,277 |
Liabilities | 111,966 | 172,728 |
Noncontrolling interests - redeemable | 1,263 | 0 |
Shareholders' equity: | ||
Preferred stock, $.01 par value; Authorized 2,000,000 shares; none issued | 0 | 0 |
Treasury stock, Series A, at cost; 1,065,484 and 944,636 shares held at March 31, 2015 and December 31, 2014, respectively | -9,202 | 8,087 |
Additional paid-in capital | 500,267 | 499,320 |
Accumulated other comprehensive loss | -57,055 | -57,367 |
Accumulated deficit | -309,742 | -308,330 |
Total shareholders’ equity attributable to A. H. Belo Corporation | 124,496 | 125,763 |
Noncontrolling interests | 2,304 | 256 |
Total shareholders’ equity | 126,800 | 126,019 |
Total liabilities and shareholders’ equity | 240,029 | 298,747 |
Series A: Common stock | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | 204 | 203 |
Series B: Common stock | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | $24 | $24 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parenthetical (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts receivable | 1,380 | 1,262 |
Preferred stock, par value | 0.01 | 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Series A: Common stock | ||
Common Stock, Shares, Issued | 20,459,900 | 20,341,501 |
Series B: Common stock | ||
Common Stock, Shares, Issued | 2,388,237 | 2,388,237 |
Treasury Stock | Series A: Common stock | ||
Treasury stock Series A, shares held | 1,065,484 | 944,636 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (unaudited) (USD $) | Total | Common Stock | Common Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | Accumulated Deficit | Noncontrolling Interests |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | Series A | Series B | USD ($) | USD ($) | Series A | USD ($) | USD ($) | USD ($) |
Beginning Balance at Dec. 31, 2013 | $168,776 | $223 | $496,682 | ($3,113) | ($15,093) | ($310,099) | $176 | |||
Beginning Balance, Treasury Stock at Dec. 31, 2013 | -495,200 | |||||||||
Beginning Balance, Shares Common Stock at Dec. 31, 2013 | 19,931,599 | 2,397,155 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income (Loss) | -4,043 | -4,037 | -6 | |||||||
Other comprehensive income | -173 | -173 | ||||||||
Treasury stock purchases, shares | -75,228 | |||||||||
Treasury stock purchases | -675 | -675 | ||||||||
Issuance of shares for restricted stock units, shares | 157,659 | |||||||||
Issuance of shares for restricted stock units | 0 | 2 | -2 | |||||||
Issuance of shares from stock option exercises, shares | 135,412 | 0 | ||||||||
Issuance of shares for stock option exercises | 598 | 1 | 597 | |||||||
Income tax benefit on options and RSUs | 470 | 470 | ||||||||
Share-based compensation | 527 | 527 | ||||||||
Conversion of Series B to Series A, shares | 4,725 | -4,725 | ||||||||
Conversion of Series B to Series A | 0 | |||||||||
Dividends | -1,805 | -1,805 | ||||||||
Ending Balance at Mar. 31, 2014 | 163,675 | 226 | 498,274 | -3,788 | -15,266 | -315,941 | 170 | |||
Ending Balance, Shares Treasury Stock at Mar. 31, 2014 | -570,428 | |||||||||
Ending Balance, Shares Common Stock at Mar. 31, 2014 | 20,229,395 | 2,392,430 | ||||||||
Beginning Balance at Dec. 31, 2014 | 126,019 | 227 | 499,320 | -8,087 | -57,367 | -308,330 | 256 | |||
Beginning Balance, Treasury Stock at Dec. 31, 2014 | -944,636 | |||||||||
Beginning Balance, Shares Common Stock at Dec. 31, 2014 | 20,341,501 | 2,388,237 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income (Loss) | 307 | 363 | -56 | |||||||
Other comprehensive income | 312 | 312 | ||||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 2,104 | 2,104 | ||||||||
Treasury stock purchases, shares | -120,848 | |||||||||
Treasury stock purchases | -1,115 | -1,115 | ||||||||
Issuance of shares for restricted stock units, shares | 100,399 | |||||||||
Issuance of shares for restricted stock units | 0 | 1 | -1 | |||||||
Issuance of shares from stock option exercises, shares | 18,000 | 18,000 | 0 | |||||||
Issuance of shares for stock option exercises | 71 | 0 | 71 | |||||||
Income tax benefit on options and RSUs | 506 | 506 | ||||||||
Share-based compensation | 371 | 371 | ||||||||
Dividends | -1,775 | -1,775 | ||||||||
Ending Balance at Mar. 31, 2015 | $126,800 | $228 | $500,267 | ($9,202) | ($57,055) | ($309,742) | $2,304 | |||
Ending Balance, Shares Treasury Stock at Mar. 31, 2015 | -1,065,484 | |||||||||
Ending Balance, Shares Common Stock at Mar. 31, 2015 | 20,459,900 | 2,388,237 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net Income (Loss) | $307 | ($4,043) |
Adjustments to reconcile net income to net cash (used for) provided by operations: | ||
Net (income) loss from discontinued operations | 12 | -783 |
Depreciation and amortization | 3,413 | 3,440 |
Cash contributions to employee benefit plans in excess of net periodic expense | -1,142 | -3,009 |
Equity method investment losses | 495 | 408 |
Share-based compensation | 371 | 487 |
Deferred income taxes | -3,932 | 542 |
Gain on investment related activity, net | -81 | 0 |
Gain on disposal of fixed assets | -39 | 0 |
Increase (Decrease) in other operating assets and liabilities, net | -7,879 | 2,443 |
Net cash used for continuing operations | -8,475 | -515 |
Net cash (used for) provided by discontinued operations | -93 | 3,481 |
Net cash (used for) provided by operating activities | -8,568 | 2,966 |
Investing Activities | ||
Payments to acquire businesses, net of cash acquired | 14,111 | 0 |
Payments to acquire property, plant and equipment | -1,170 | -1,008 |
Purchase of investments | -500 | 0 |
Other investment related proceeds | 81 | 0 |
Net cash used for continuing investing activities | -15,700 | -1,008 |
Net cash used for discontinued investing activities | 0 | -199 |
Net cash used for investing activities | -15,700 | -1,207 |
Financing Activities | ||
Dividends paid | -51,923 | -1,805 |
Purchase of treasury stock | -1,115 | -675 |
Proceeds from exercise of stock options | 71 | 598 |
Income tax benefit on options and RSUs | 506 | 470 |
Net cash provided by (used in) financing activities | -52,461 | -1,412 |
Net increase (decrease) in cash and cash equivalents | -76,729 | 347 |
Cash and cash equivalents, beginning of period | 158,171 | 82,193 |
Cash and cash equivalents, end of period | 81,442 | 82,540 |
Supplemental Cash Flow Information | ||
Income taxes paid, net | 8,918 | 0 |
Noncash contributions by noncontrolling interests | 3,367 | 0 |
Other than temporary impairment losses, investments | $0 | $934 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Description of Business. A. H. Belo Corporation and subsidiaries (“A. H. Belo” or the “Company”), headquartered in Dallas, Texas, is a leading local news and information publishing company with commercial printing, distribution and direct mail capabilities, as well as expertise in emerging media and marketing services. With a continued focus on extending the Company’s media platform, A. H. Belo is able to deliver news and information in innovative ways to a broad spectrum of audiences with diverse interests and lifestyles. |
The Company publishes The Dallas Morning News (www.dallasnews.com), Texas’ leading newspaper and winner of nine Pulitzer Prizes; the Denton Record-Chronicle (www.dentonrc.com), a daily newspaper operating in Denton, Texas, and various niche publications targeting specific audiences. A. H. Belo also offers digital and other business marketing solutions as well as event marketing. | |
Basis of Presentation. These consolidated financial statements include the accounts of A. H. Belo and its subsidiaries. The Company follows the guidance set by the Financial Accounting Standards Board (“FASB”) or other authoritative accounting standards-setting bodies. Under Accounting Standards Codification (“ASC”) 810 – Consolidation, the Company determines whether subsidiaries, joint ventures, partnerships and other arrangements should be consolidated. Transactions between the consolidated companies are eliminated and noncontrolling interests in less than wholly-owned subsidiaries are reflected in the consolidated financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, all adjustments considered necessary for a fair presentation are included. All dollar amounts are presented in thousands, except per share amounts, unless the context requires otherwise. | |
Presentation of current and prior period amounts in the consolidated financial statements and notes thereto reflect continuing operations of the Company, unless otherwise noted. Amounts presented for 2014 are exclusive of results related to discontinued operations as well as prior year results of businesses subsequently acquired in 2015. | |
New Accounting Pronouncements. The FASB issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this amendment, requirements for reporting discontinued operations have changed. Discontinued operations may include disposals of a business, nonprofit activity or component of an entity upon meeting certain other criteria. Disposals representing components of an entity must reflect a strategic shift that has a major effect on the entity’s operations and financial results. Previous conditions prohibiting the entity from having significant continuing involvement in the disposal group and requiring the elimination of operations and cash flows from ongoing operations of the entity have been removed. The update is effective on a prospective basis for disposals that occur within annual periods beginning on or after December 15, 2014, and interim periods in those years. The adoption of this standard did not have a material impact on the accounting for the Company’s discontinued operations. | |
The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance generally clarified the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update is effective for fiscal years and interim periods beginning after December 15, 2016, and interim periods in those years. The Company is currently evaluating the impact this update will have on its recognition and presentation of revenues within the consolidated statements of operations. | |
The FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). This standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related disclosures. The new standard is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company does not anticipate the adoption of this standard to have a material impact on the presentation of the consolidated financial statements or disclosures. | |
The FASB issued ASU 2015-02, Consolidation (Topic 810). This update modifies requirements for consolidating certain legal entities. The standard removes the previous presumption that a general partner controls a limited partnership, revises when fees paid to a decision maker or service provider are a variable interest, and places additional emphasis on risk of loss in determining a controlling financial interest. The standard is effective for fiscal years and interim periods beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the impact this update will have on its consolidation of legal entities within the consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Business Combination Disclosure | On January 2, 2015, the Company acquired an 80 percent voting interest in DMV Digital Holdings Company, Inc. (“DMV”) which holds all outstanding ownership interests of three Dallas-based businesses, Distribion, Inc., Vertical Nerve, Inc. and CDFX, LLC (d/b/a MarketingFX). These businesses specialize in marketing automation, search engine marketing, direct mail and promotional products, respectively. This acquisition complements and expands the product and service offerings currently available to A. H. Belo clients, thereby strengthening the Company’s diversified product portfolio and allowing for greater penetration in a competitive advertising market. | |||
The Company’s interest in DMV was acquired for a cash purchase price of $14,111, net of $152 cash acquired. Transaction costs related to the purchase were a component of Other production, distribution and operating costs and totaled $1,287, of which $725 were incurred in 2015. The estimated fair value of the acquired businesses totals $17,478, of which $3,495 is attributable to noncontrolling interests. Approximately $693 of goodwill acquired is expected to be deductible for tax purposes. As further discussed in Note 11 – Contingencies, the contribution agreement included provisions for two pro-rata dividends and an embedded put arrangement with certain noncontrolling shareholders of DMV. The Company is in the process of finalizing the business valuation and its allocation to underlying assets and liabilities. The preliminary allocation of the purchase price, which is subject to adjustment upon finalization, is summarized as follows: | ||||
Estimated | ||||
Fair Value | ||||
Working capital, net of acquired cash | $ | (79 | ) | |
Property, plant and equipment | 57 | |||
Other intangible assets | 11,990 | |||
Goodwill | 9,503 | |||
Deferred income tax liabilities | (3,993 | ) | ||
$ | 17,478 | |||
Operating results of the businesses acquired have been included in the Condensed Consolidated Statements of Operations from the acquisition date forward. Revenue from marketing services is recognized at the time services are delivered. For arrangements that include multiple deliverables, revenue and upfront fees are allocated to each unit of accounting based on their relative selling prices. For the three months ended March 31, 2015, operating results include $1,858 of net operating revenue and a pretax loss of $132 before adjusting for noncontrolling interests. Pro forma results of the Company, assuming all of the acquisition had occurred at the beginning of each period presented, would not be materially different from the results reported. |
Discontinued_Operations_and_Sa
Discontinued Operations and Sales of Assets | 3 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | On September 3, 2014, The Providence Journal Company, a wholly-owned subsidiary of the Company, completed a transaction for the (i) sale of substantially all of the assets comprising the newspaper operations of The Providence Journal and related real property located in Providence, Rhode Island, and (ii) assumption of certain liabilities by LMG Rhode Island Holdings, Inc. (“LMG”), a subsidiary of New Media Investment Group Inc. On November 21, 2013, the Company completed the sale of the newspaper operations of The Press-Enterprise, including the production facility and related land, to Freedom Communications, Inc. (“Freedom Communications”) under a definitive asset purchase agreement. |
Upon completion of these divestitures, the Company no longer owns newspaper operations in Providence, Rhode Island or Riverside, California. The Company continues to hold and market for sale certain land and buildings in Providence, Rhode Island, including the administrative headquarters of The Providence Journal. The Company also retains the obligation for the A. H. Belo Pension Plan II, which provides benefits to employees of The Providence Journal Company. | |
As a result of the above transactions, the activity and balances of The Providence Journal and The Press-Enterprise are presented as discontinued operations. During the three months ended March 31, 2014, income from discontinued operations included revenues and expenses of $21,194 and $20,217, respectively related to The Providence Journal. The Company reduced the gain on the sale of The Providence Journal in the three months ended March 31, 2015, and The Press-Enterprise in the three months ended March 31, 2014, by $12 and $178, respectively. As of March 31, 2015, the remaining assets and liabilities of discontinued operations were $253 and $150, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Goodwill and Intangible Assets | As presented in Note 2 – Acquisitions, the Company acquired $9,503 of goodwill and $11,990 of definite-lived intangible assets in connection with its acquisition of DMV. Amortization expense of $283 was recorded for the three months ended March 31, 2015. The identification, valuation and amortization of these assets is not complete and subject to adjustment upon finalization. The definite-lived intangible assets are presented below as Other intangible assets, gross. | |||||||
The Company also records goodwill and intangible assets from its previous acquisitions. The carrying value of goodwill, exclusive of DMV, was $24,582 at March 31, 2015 and December 31, 2014. Definite-lived intangible assets recorded from previous acquisitions consist of customer relationships, amortized over an estimated useful life of 3 years. Amortization expense related to customer relationships from previous acquisitions was $90 and $30 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
The carrying value of definite-lived intangible assets is set forth in the table below. | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Customer relationships, gross | $ | 975 | $ | 975 | ||||
Other intangible assets, gross | 11,990 | — | ||||||
Finite-lived intangible assets, gross | 12,965 | 975 | ||||||
Accumulated amortization | (692 | ) | (319 | ) | ||||
Finite-lived intangible assets, net | $ | 12,273 | $ | 656 | ||||
Investments
Investments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments [Abstract] | ||||||||
Investments | The Company owns investment interests in various entities which are recorded under the equity method or cost method of accounting, or consolidated if the Company holds a controlling financial interest. Under the equity method, the Company records its share of the investee’s earnings or losses each period as a component of other income, net, in the consolidated statements of operations. Under the cost method, the Company records earnings or losses when such amounts are realized. The Company evaluates the recoverability of its investments each period and estimates the fair value of its investments if identified events or circumstances indicate a significant adverse effect on the carrying value. Net losses on equity method investments were $414 and $408 for the three months ended March 31, 2015 and 2014, respectively. The table below sets forth the Company’s investments. | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Equity method investments | $ | 1,145 | $ | 1,640 | ||||
Cost method investments | 1,432 | 932 | ||||||
Total investments | $ | 2,577 | $ | 2,572 | ||||
Equity method investments. Investments recorded under the equity method of accounting include the following: | ||||||||
Wanderful Media, LLC (“Wanderful”) – The Company owns a 13.0 percent interest in Wanderful, which operates FindnSave.com, a digital shopping platform where consumers can find national and local retail goods and services for sale. This platform combines local media participation with advanced search and database technology to allow consumers to view local advertised offers and online sales circulars or search for an item and receive a list of local advertisers and the price and terms offered for the searched item. It also utilizes location-based technology and incentives to drive consumers to retailer locations. | ||||||||
In the first quarter of 2014, the Company determined that an other-than-temporary decline occurred in the value of its investment in Wanderful Media after evaluating the estimated fair value of the investee as determined by an independent valuation specialist, which resulted in an impairment charge of $934 in the first quarter. The Company attributes the impairment primarily to a decline in business related to Wanderful Media’s legacy products. An additional contribution of $1,909 was made in 2014 to provide capital for development of new product offerings as Wanderful Media establishes its market presence. | ||||||||
Classified Ventures, LLC (“Classified Ventures”) – The Company owned a 3.3 percent interest in Classified Ventures through its sale date on October 1, 2014. The principal business of Classified Ventures is the operation of cars.com. On October 1, 2014, the Company completed a transaction with Gannett Co. Inc. and other unit holders of Classified Ventures whereby Gannett acquired all membership interests from the unit holders of Classified Ventures. Proceeds of $81 were received in the first quarter of 2015, representing an adjustment to the sale price and increasing the gain on the transaction. As of March 31, 2015, a receivable of $3,280 was recorded for additional proceeds related to the sale of Classified Ventures which are expected to be received by the end of the third quarter of 2015. | ||||||||
Consolidated investments. The Company consolidates the following investments in which it has a controlling financial interest: | ||||||||
• | Your Speakeasy, LLC (“Speakeasy”) - 70.0 percent ownership - targets middle-market business customers and provides turnkey social media account management and content development services. | |||||||
• | Untapped Festivals, LLC (“Untapped”) - 51.0 percent ownership - hosts events providing craft beer and entertainment events across major Texas cities. | |||||||
• | DMV Digital Holdings Company, Inc. - 80.0 percent ownership - specializes in marketing automation, search engine marketing, direct mail and promotional products. |
Longterm_Incentive_Plans
Long-term Incentive Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Share-Based Compensation | A. H. Belo sponsors a long-term incentive plan under which 8,000,000 common shares were authorized for equity based awards. Awards may be granted to A. H. Belo employees and outside directors in the form of non-qualified stock options, incentive stock options, restricted shares, RSUs, performance shares, performance units or stock appreciation rights. In addition, stock options may be accompanied by full and limited stock appreciation rights. Rights and limited stock appreciation rights may also be issued without accompanying stock options. | ||||||||||||||||
Stock Options. | |||||||||||||||||
The table below sets forth a summary of stock option activity under its long-term incentive plan. | |||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Options | Exercise Price | ||||||||||||||||
Outstanding at December 31, 2014 | 432,723 | $ | 13.15 | ||||||||||||||
Exercised | (18,000 | ) | 3.95 | ||||||||||||||
Canceled | (19,400 | ) | 23.26 | ||||||||||||||
Outstanding at March 31, 2015 | 395,323 | $ | 13.07 | ||||||||||||||
The intrinsic value of options exercised in three months ended March 31, 2015 and 2014, was $100 and $813, respectively, and the intrinsic value of outstanding options at March 31, 2015 was $729. The vested and exercisable weighted average remaining contractual term of stock options outstanding as of March 31, 2015, was 2.2 years. The expense associated with all outstanding options was fully recognized in prior years. | |||||||||||||||||
Restricted Stock Units. Under A. H. Belo’s long-term incentive plan, the Company’s board of directors periodically awards RSUs. The RSUs have service and/or performance conditions and vest over a period of up to three years. Vested RSUs are redeemed 60 percent in A. H. Belo Series A common stock and 40 percent in cash. As of March 31, 2015, the liability for the portion of the award to be redeemed in cash was $1,074. The table below sets forth a summary of RSU activity under its long-term incentive plan. | |||||||||||||||||
Total | Issuance of | RSUs | Cash | Weighted- | |||||||||||||
RSUs | Common | Redeemed in | Payments at | Average Price | |||||||||||||
Stock | Cash | Closing Price | on Date of | ||||||||||||||
of Stock | Grant | ||||||||||||||||
Non-vested at December 31, 2014 | 501,158 | $ | 6.81 | ||||||||||||||
Granted | 71,102 | 8.79 | |||||||||||||||
Vested | (167,341 | ) | 100,399 | 66,942 | $ | 596 | 6.63 | ||||||||||
Canceled | (48,239 | ) | 7.47 | ||||||||||||||
Non-vested at March 31, 2015 | 356,680 | $ | 7.2 | ||||||||||||||
Compensation Expense. A. H. Belo recognizes compensation expense for RSUs issued to its employees and directors under its long-term incentive plan over the vesting period of the award, as set forth in the table below. | |||||||||||||||||
RSUs Redeemable in Stock | RSUs Redeemable in Cash | Total RSU Awards Expense | |||||||||||||||
Three months ended March 31, | |||||||||||||||||
2015 | $ | 371 | $ | (68 | ) | $ | 303 | ||||||||||
2014 | 487 | 1,183 | 1,670 | ||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes are recorded using the asset and liability method. The provision for taxes reflects the Company’s estimate of the effective tax rate expected to be applied for the full fiscal year, adjusted for any discrete transactions which are reported in the period in which they occur. The estimated effective tax rate is re-evaluated each quarter based on the Company’s estimated tax expense for the year. If a reliable estimate cannot be made of the annual effective tax rate, which could be caused by the significant variability in rates when marginal earnings are expected for the year and significant permanent or temporary differences exist, a discrete tax rate is calculated for the period. |
The Company recognized income tax (benefit) provision from continuing operations of $(5,730) and $891 for the three months ended March 31, 2015 and 2014, respectively. Effective income tax rates from continuing operations were 105.9 percent and (22.6) percent for 2015 and 2014, respectively. The effective tax rate is affected by recurring items such as tax rates and income in jurisdictions which we expect to be fairly consistent in the near term. Tax benefit for the three months ended March 31, 2015, reflected a reduction in the valuation allowance for deferred tax assets of $3,993 as a result of DMV acquisition-date deferred tax liabilities assumed. Tax provision for the three months ended March 31, 2014, was primarily attributable to state income tax expense and changes in the valuation allowance on deferred tax assets. |
Pension_and_Other_Retirement_P
Pension and Other Retirement Plans | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Pension and Other Retirement Plans | Defined Benefit Plans. The Company sponsors two defined benefit pension plans, the A. H. Belo Pension Plans I and II (collectively the “A. H. Belo Pension Plans”). A. H. Belo Pension Plan I provides benefits to certain employees primarily employed with The Dallas Morning News or the A. H. Belo corporate offices. A. H. Belo Pension Plan II provides benefits to certain employees of The Providence Journal Company, the obligation for which was retained by the Company in the sale transaction of the newspaper operations of The Providence Journal. No additional benefits are accruing under the A. H. Belo Pension Plans, as future benefits were frozen prior to the plans’ effective date. | |||||||
During the three months ended March 31, 2014, the Company made required contributions of $1,940 to the A. H. Belo Pension Plans. No contributions are required to the A. H. Belo Pension Plans in 2015. Management believes the assumed rate of return on the plans’ assets of 6.5 percent continues to be appropriate. | ||||||||
Net Periodic Pension Benefit | ||||||||
The Company estimates net periodic pension expense or benefit based on the expected return on plan assets, the interest on projected pension obligations and the amortization of actuarial gains and losses in accumulated other comprehensive loss, if required. The table below sets forth components of net periodic pension benefit. | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Interest cost | $ | 3,540 | $ | 4,330 | ||||
Expected return on plans' assets | (5,008 | ) | (5,215 | ) | ||||
Amortization of actuarial loss | 312 | — | ||||||
Net periodic pension expense (benefit) | $ | (1,156 | ) | $ | (885 | ) | ||
Defined Contribution Plans. The A. H. Belo Savings Plan, a defined contribution 401(k) plan, covers substantially all employees of A. H. Belo. Participants may elect to contribute a portion of their pretax compensation, as provided by the plan and the Internal Revenue Code. Employees can contribute up to 100 percent of their annual eligible compensation (less required withholdings and deductions) up to statutory limits. The Company provides an ongoing dollar-for-dollar match of eligible employee contributions, up to 1.5 percent of the employees’ compensation on a per-pay-period basis. During the three months ended March 31, 2015 and 2014, the Company recorded expense of $258 and $253, respectively, for matching contributions to this plan. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Shareholders' Equity and Share-based Payments | Accumulated other comprehensive loss contains actuarial gains and losses associated with the A. H. Belo Pension Plans and gains and losses resulting from negative plan amendments and other actuarial experience related to other post-employment benefit plans. The Company records amortization of accumulated other comprehensive loss in employee compensation and benefits in its consolidated statements of operations. Gains and losses associated with the A. H. Belo Pension Plans are amortized over the weighted average remaining life expectancy of the participants. Gains and losses associated with the Company’s other post-employment benefit plans are amortized over the average remaining service period of active plan participants. The net deferred tax assets associated with accumulated other comprehensive loss are fully reserved. | |||||||||||||||||||||||
The table below sets forth the changes in accumulated other comprehensive loss, net of taxes. | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Total | Defined benefit pension plans | Other post-employment benefit plans | Total | Defined benefit pension plans | Other post-employment benefit plans | |||||||||||||||||||
Balance, beginning of period | $ | (57,367 | ) | $ | (57,654 | ) | $ | 287 | $ | (15,093 | ) | $ | (16,059 | ) | $ | 966 | ||||||||
Amortization | 312 | 312 | — | (173 | ) | — | (173 | ) | ||||||||||||||||
Balance, end of period | $ | (57,055 | ) | $ | (57,342 | ) | $ | 287 | $ | (15,266 | ) | $ | (16,059 | ) | $ | 793 | ||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings per Share | The table below sets forth the reconciliations for net income (loss) and weighted average shares used for calculating basic and diluted earnings per share (“EPS”). The Company’s Series A and B common stock equally share in the distributed and undistributed earnings. | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Earnings (numerator) | ||||||||
Net income attributable to A. H. Belo Corporation | $ | 363 | $ | (4,037 | ) | |||
Less: Income (loss) from discontinued operations, net | (12 | ) | 783 | |||||
Less: Income to participating securities | 36 | 58 | ||||||
Net income available to common shareholders from continuing operations | $ | 339 | $ | (4,878 | ) | |||
Shares (denominator) | ||||||||
Weighted average common shares outstanding (basic) | 21,770,698 | 21,918,000 | ||||||
Effect of dilutive securities | 74,499 | — | ||||||
Adjusted weighted average shares outstanding (diluted) | 21,845,197 | 21,918,000 | ||||||
Earnings per share from continuing operations | ||||||||
Basic and Diluted | $ | 0.02 | $ | (0.22 | ) | |||
Holders of service-based RSUs participate in A. H. Belo dividends on a one-for-one share basis. Distributed and undistributed income associated with participating securities is included in the calculation of EPS under the two-class method as prescribed under ASC 260 – Earnings Per Share. | ||||||||
The Company considers outstanding stock options and RSUs in the calculation of its earnings per share. A total of 565,733 and 1,316,475 options and RSUs outstanding during the three months ended March 31, 2015 and 2014, respectively, were excluded from the calculation because they did not affect the earnings per share for common shareholders or the effect was anti-dilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure | Legal proceedings. A number of legal proceedings are pending against A. H. Belo. In the opinion of management, liabilities, if any, arising from these legal proceedings would not have a material adverse effect on A. H. Belo’s results of operations, liquidity or financial condition. |
Pro-rata dividends. In conjunction with the acquisition of DMV, the contribution agreement provides for a pro-rata dividend of 100 percent and 50 percent of DMV’s free-cash flow for fiscal years 2015 and 2016, respectively. Free-cash-flow is defined as earnings before interest, taxes, depreciation and amortization less capital expenditures, debt amortization and interest expense, as applicable. | |
Redeemable noncontrolling interest. In connection with the acquisition, the Company entered into a shareholder agreement which provided a put option to a noncontrolling shareholder. The put option provides the shareholder with the right to require the Company to purchase up to 25 percent of his ownership interest between the second and third anniversaries of the agreement and up to 50 percent of his ownership interest between the fourth and fifth anniversaries of the agreement. | |
The exercisability of the noncontrolling interest put arrangement is outside of the control of the Company. As such, the redeemable noncontrolling interest of $1,263 is reported in the mezzanine equity section in the condensed consolidated balance sheets as of March 31, 2015. In the event that the put options expire unexercised, the related portion of noncontrolling interest would be classified as a component of equity in the condensed consolidated balance sheets. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation, Policy | These consolidated financial statements include the accounts of A. H. Belo and its subsidiaries. The Company follows the guidance set by the Financial Accounting Standards Board (“FASB”) or other authoritative accounting standards-setting bodies. Under Accounting Standards Codification (“ASC”) 810 – Consolidation, the Company determines whether subsidiaries, joint ventures, partnerships and other arrangements should be consolidated. Transactions between the consolidated companies are eliminated and noncontrolling interests in less than wholly-owned subsidiaries are reflected in the consolidated financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, all adjustments considered necessary for a fair presentation are included. All dollar amounts are presented in thousands, except per share amounts, unless the context requires otherwise. |
Discontinued Operations, Policy | Presentation of current and prior period amounts in the consolidated financial statements and notes thereto reflect continuing operations of the Company, unless otherwise noted. |
Investments, Policy | The Company owns investment interests in various entities which are recorded under the equity method or cost method of accounting, or consolidated if the Company holds a controlling financial interest. Under the equity method, the Company records its share of the investee’s earnings or losses each period as a component of other income, net, in the consolidated statements of operations. Under the cost method, the Company records earnings or losses when such amounts are realized. |
Pension and Other Retirement Obligations, Policy | The Company estimates net periodic pension expense or benefit based on the expected return on plan assets, the interest on projected pension obligations and the amortization of actuarial gains and losses in accumulated other comprehensive loss, if required. |
Shareholders' Equity, Policy | Accumulated other comprehensive loss contains actuarial gains and losses associated with the A. H. Belo Pension Plans and gains and losses resulting from negative plan amendments and other actuarial experience related to other post-employment benefit plans. The Company records amortization of accumulated other comprehensive loss in employee compensation and benefits in its consolidated statements of operations. Gains and losses associated with the A. H. Belo Pension Plans are amortized over the weighted average remaining life expectancy of the participants. Gains and losses associated with the Company’s other post-employment benefit plans are amortized over the average remaining service period of active plan participants. The net deferred tax assets associated with accumulated other comprehensive loss are fully reserved. |
Income Taxes, Policy | Income taxes are recorded using the asset and liability method. The provision for taxes reflects the Company’s estimate of the effective tax rate expected to be applied for the full fiscal year, adjusted for any discrete transactions which are reported in the period in which they occur. The estimated effective tax rate is re-evaluated each quarter based on the Company’s estimated tax expense for the year. If a reliable estimate cannot be made of the annual effective tax rate, which could be caused by the significant variability in rates when marginal earnings are expected for the year and significant permanent or temporary differences exist, a discrete tax rate is calculated for the period. |
New Accounting Pronouncements, Policy | The FASB issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this amendment, requirements for reporting discontinued operations have changed. Discontinued operations may include disposals of a business, nonprofit activity or component of an entity upon meeting certain other criteria. Disposals representing components of an entity must reflect a strategic shift that has a major effect on the entity’s operations and financial results. Previous conditions prohibiting the entity from having significant continuing involvement in the disposal group and requiring the elimination of operations and cash flows from ongoing operations of the entity have been removed. The update is effective on a prospective basis for disposals that occur within annual periods beginning on or after December 15, 2014, and interim periods in those years. The adoption of this standard did not have a material impact on the accounting for the Company’s discontinued operations. |
The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance generally clarified the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update is effective for fiscal years and interim periods beginning after December 15, 2016, and interim periods in those years. The Company is currently evaluating the impact this update will have on its recognition and presentation of revenues within the consolidated statements of operations. | |
The FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). This standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related disclosures. The new standard is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company does not anticipate the adoption of this standard to have a material impact on the presentation of the consolidated financial statements or disclosures. | |
The FASB issued ASU 2015-02, Consolidation (Topic 810). This update modifies requirements for consolidating certain legal entities. The standard removes the previous presumption that a general partner controls a limited partnership, revises when fees paid to a decision maker or service provider are a variable interest, and places additional emphasis on risk of loss in determining a controlling financial interest. The standard is effective for fiscal years and interim periods beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the impact this update will have on its consolidation of legal entities within the consolidated financial statements. |
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Purchase price allocation, preliminary | The preliminary allocation of the purchase price, which is subject to adjustment upon finalization, is summarized as follows: | |||
Estimated | ||||
Fair Value | ||||
Working capital, net of acquired cash | $ | (79 | ) | |
Property, plant and equipment | 57 | |||
Other intangible assets | 11,990 | |||
Goodwill | 9,503 | |||
Deferred income tax liabilities | (3,993 | ) | ||
$ | 17,478 | |||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Company's Identifiable Intangible Assets | amortized over an estimated useful life of 3 years. Amortization expense related to customer relationships from previous acquisitions was $90 and $30 for the three months ended March 31, 2015 and 2014, respectively. | |||||||
The carrying value of definite-lived intangible assets is set forth in the table below. | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Customer relationships, gross | $ | 975 | $ | 975 | ||||
Other intangible assets, gross | 11,990 | — | ||||||
Finite-lived intangible assets, gross | 12,965 | 975 | ||||||
Accumulated amortization | (692 | ) | (319 | ) | ||||
Finite-lived intangible assets, net | $ | 12,273 | $ | 656 | ||||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments [Abstract] | ||||||||
Company's investments | The table below sets forth the Company’s investments. | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Equity method investments | $ | 1,145 | $ | 1,640 | ||||
Cost method investments | 1,432 | 932 | ||||||
Total investments | $ | 2,577 | $ | 2,572 | ||||
Longterm_Incentive_Plans_Table
Long-term Incentive Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock option activity | The table below sets forth a summary of stock option activity under its long-term incentive plan. | ||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Options | Exercise Price | ||||||||||||||||
Outstanding at December 31, 2014 | 432,723 | $ | 13.15 | ||||||||||||||
Exercised | (18,000 | ) | 3.95 | ||||||||||||||
Canceled | (19,400 | ) | 23.26 | ||||||||||||||
Outstanding at March 31, 2015 | 395,323 | $ | 13.07 | ||||||||||||||
RSU activity | The table below sets forth a summary of RSU activity under its long-term incentive plan. | ||||||||||||||||
Total | Issuance of | RSUs | Cash | Weighted- | |||||||||||||
RSUs | Common | Redeemed in | Payments at | Average Price | |||||||||||||
Stock | Cash | Closing Price | on Date of | ||||||||||||||
of Stock | Grant | ||||||||||||||||
Non-vested at December 31, 2014 | 501,158 | $ | 6.81 | ||||||||||||||
Granted | 71,102 | 8.79 | |||||||||||||||
Vested | (167,341 | ) | 100,399 | 66,942 | $ | 596 | 6.63 | ||||||||||
Canceled | (48,239 | ) | 7.47 | ||||||||||||||
Non-vested at March 31, 2015 | 356,680 | $ | 7.2 | ||||||||||||||
Compensation expense related to stock awards | A. H. Belo recognizes compensation expense for RSUs issued to its employees and directors under its long-term incentive plan over the vesting period of the award, as set forth in the table below. | ||||||||||||||||
RSUs Redeemable in Stock | RSUs Redeemable in Cash | Total RSU Awards Expense | |||||||||||||||
Three months ended March 31, | |||||||||||||||||
2015 | $ | 371 | $ | (68 | ) | $ | 303 | ||||||||||
2014 | 487 | 1,183 | 1,670 | ||||||||||||||
Pension_and_Other_Retirement_P1
Pension and Other Retirement Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Net periodic pension expense | The table below sets forth components of net periodic pension benefit. | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Interest cost | $ | 3,540 | $ | 4,330 | ||||
Expected return on plans' assets | (5,008 | ) | (5,215 | ) | ||||
Amortization of actuarial loss | 312 | — | ||||||
Net periodic pension expense (benefit) | $ | (1,156 | ) | $ | (885 | ) |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Changes in accumulated other comprehensive loss | The table below sets forth the changes in accumulated other comprehensive loss, net of taxes. | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Total | Defined benefit pension plans | Other post-employment benefit plans | Total | Defined benefit pension plans | Other post-employment benefit plans | |||||||||||||||||||
Balance, beginning of period | $ | (57,367 | ) | $ | (57,654 | ) | $ | 287 | $ | (15,093 | ) | $ | (16,059 | ) | $ | 966 | ||||||||
Amortization | 312 | 312 | — | (173 | ) | — | (173 | ) | ||||||||||||||||
Balance, end of period | $ | (57,055 | ) | $ | (57,342 | ) | $ | 287 | $ | (15,266 | ) | $ | (16,059 | ) | $ | 793 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Weighted average shares used for calculating basic and diluted earnings per share | The table below sets forth the reconciliations for net income (loss) and weighted average shares used for calculating basic and diluted earnings per share (“EPS”). The Company’s Series A and B common stock equally share in the distributed and undistributed earnings. | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Earnings (numerator) | ||||||||
Net income attributable to A. H. Belo Corporation | $ | 363 | $ | (4,037 | ) | |||
Less: Income (loss) from discontinued operations, net | (12 | ) | 783 | |||||
Less: Income to participating securities | 36 | 58 | ||||||
Net income available to common shareholders from continuing operations | $ | 339 | $ | (4,878 | ) | |||
Shares (denominator) | ||||||||
Weighted average common shares outstanding (basic) | 21,770,698 | 21,918,000 | ||||||
Effect of dilutive securities | 74,499 | — | ||||||
Adjusted weighted average shares outstanding (diluted) | 21,845,197 | 21,918,000 | ||||||
Earnings per share from continuing operations | ||||||||
Basic and Diluted | $ | 0.02 | $ | (0.22 | ) | |||
Acquisitions_Details
Acquisitions (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ||
Goodwill | $34,085 | $24,582 |
Deferred tax liabilities | -3,993 | |
DMV | ||
Business Acquisition [Line Items] | ||
Working capital, net of cash acquired | -79 | |
Property, plant, and equipment | 57 | |
Other intangible assets | 11,990 | |
Goodwill | 9,503 | |
Deferred tax liabilities | -3,993 | |
Assets acquired and liabilities assumed, net | $17,478 |
Business_Acquisitions_Narrativ
Business Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Business Acquisition [Line Items] | |
Business Acquisition, Cumulative Transaction Costs | $1,287 |
Business Combination, Transaction Costs | 725 |
DMV | |
Business Acquisition [Line Items] | |
Business Acquisition, Effective Date of Acquisition | 2-Jan-15 |
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% |
Business Acquisition, Name of Acquired Entity | DMV Digital Holdings Company, Inc. |
Business Acquisition, Consideration Transferred | 14,111 |
Business Acquisition, Cash Acquired | 152 |
Business Acquisition, Assets Acquired and Liabilities Assumed, Net | 17,478 |
Business Acquisition, Noncontrolling Interest, Fair Value | 3,495 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 693 |
Business Acquisition, Current Revenues of Acquiree | 1,858 |
Business Acquisition, Current Net Loss before Income Taxes | ($132) |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Significant Acquisitions and Disposals | |||
Loss related to the divestiture of discontinued operations | $12 | $178 | |
Assets of discontinued operations | 253 | 565 | |
Liabilities of discontinued operations | 150 | 543 | |
Providence Journal | |||
Significant Acquisitions and Disposals | |||
Disposal date | 3-Sep-14 | ||
Loss related to the divestiture of discontinued operations | -12 | ||
Revenue | 21,194 | ||
Costs and expense | 20,217 | ||
Press Enterprise | |||
Significant Acquisitions and Disposals | |||
Disposal date | 21-Nov-13 | ||
Loss related to the divestiture of discontinued operations | ($178) |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles (Schedule of identifiable intangible assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Customer Relationships, Gross | $975 | $975 |
Other Finite-Lived Intangible Assets, Gross | 11,990 | 0 |
Finite-lived intangible assets, gross | 12,965 | 975 |
Accumulated amortization | -692 | -319 |
Finite-lived intangible assets, net | $12,273 | $656 |
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Goodwill [Line Items] | |||
Carrying value of goodwill | $34,085 | $24,582 | |
Finite-Lived Intangible Assets | |||
Other Finite-Lived Intangible Assets, Gross | 11,990 | 0 | |
Amortization | 373 | 30 | |
Acquisitions, current year | |||
Goodwill [Line Items] | |||
Carrying value of goodwill | 9,503 | ||
Acquisitions, prior years | |||
Goodwill [Line Items] | |||
Carrying value of goodwill | 24,582 | 24,582 | |
Acquisitions, current year | |||
Finite-Lived Intangible Assets | |||
Other Finite-Lived Intangible Assets, Gross | 11,990 | ||
Amortization | 283 | ||
Acquisitions, prior years | |||
Finite-Lived Intangible Assets | |||
Customer relationships, useful life | 3 years | ||
Amortization | $90 | $30 |
Investments_Schedule_of_invest
Investments (Schedule of investments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments | ||
Equity method investments | $1,145 | $1,640 |
Cost method investments | 1,432 | 932 |
Total investments | $2,577 | $2,572 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments | ||
Losses on equity method investments, net | ($414) | ($408) |
Other than temporary impairment losses, investments | 0 | 934 |
Purchase of investments | 500 | 0 |
Untapped | ||
Investments | ||
Consolidated method - A. H. Belo ownership | 51.00% | |
Speakeasy | ||
Investments | ||
Consolidated method - A. H. Belo ownership | 70.00% | |
Wanderful | ||
Investments | ||
Equity method - A. H. Belo ownership | 13.00% | |
Other than temporary impairment losses, investments | 934 | |
Purchase of investments | 1,909 | |
Classified Ventures | ||
Investments | ||
Equity method - A. H. Belo ownership | 0.00% | 3.30% |
Equity method investment, proceeds received | 81 | |
Equity method investment, gain on disposal | 81 | |
Escrow proceeds receivable | $3,280 | |
DMV | ||
Investments | ||
Consolidated method - A. H. Belo ownership | 80.00% |
Longterm_Incentive_Plans_Sched
Long-term Incentive Plans (Schedule of stock options outstanding activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Stock option activity rollforward | |
Number of Options, Outstanding, Beginning Balance | 432,723 |
Number of Options Exercised | -18,000 |
Number of Options Canceled | -19,400 |
Number of Options, Outstanding, Ending Balance | 395,323 |
Weighted average price per share | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $13.15 |
Weighted Average Exercise Price, Exercised | $3.95 |
Weighted Average Exercise Price, Canceled | $23.26 |
Weighted Average Exercise Price, Outstanding Ending Balance | $13.07 |
Longterm_Incentive_Plans_Sched1
Long-term Incentive Plans (Schedule of RSU activity) (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
RSU non-vested rollforward | |
Beginning Balance - Total RSUs | 501,158 |
Granted | 71,102 |
Vested | -167,341 |
Canceled | -48,239 |
Ending Balance - Total RSUs | 356,680 |
Vested RSUs redeemed for stock, cash, and related payments | |
Issuance of Common Stock | 100,399 |
RSUs Redeemed in Cash | 66,942 |
Cash Payments at Closing Price of Stock | $596 |
Weighted-Average Price on Date of Grant | |
Beginning balance - Weighted average price | $6.81 |
Granted | $8.79 |
Vested | $6.63 |
Canceled | $7.47 |
Ending balance - Weighted average price | $7.20 |
Longterm_Incentive_Plans_Narra
Long-term Incentive Plans (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 08, 2008 |
Share-based compensation expense | |||
Number of Shares Authorized | 8,000,000 | ||
Options, Exercises in Period, Intrinsic Value | $100 | $813 | |
Options, Outstanding, Intrinsic Value | 729 | ||
Options, Weighted Average Remaining Contractual Term | 2 years 2 months 0 days | ||
Employee Stock Option | |||
Share-based compensation expense | |||
RSUs, Award Vesting Period | 3 years | ||
RSUs | |||
Share-based compensation expense | |||
RSUs Redeemed in Cash, Liability | $1,074 | ||
RSUs, Percentage of Redemption in Common Stock | 60.00% | ||
RSUs, Percentage of Redemption in Cash | 40.00% |
Longterm_Incentive_Plans_Sched2
Long-term Incentive Plans (Schedule of compensation expense related to stock awards) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $303 | $1,670 |
RSUs Redeemable in Stock, Expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 371 | 487 |
RSUs Redeemable in Cash, Expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | ($68) | $1,183 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | ($5,730) | $891 |
Effective Income Tax Rate, Percent | 105.90% | -22.60% |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | $3,993 |
Pension_and_Other_Retirement_P2
Pension and Other Retirement Plans (Schedule of net periodic pension benefit (Details) (Pension Plan, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Plan | ||
Defined Benefit Plan Disclosure | ||
Interest cost | $3,540 | $4,330 |
Expected return on plans' assets | -5,008 | -5,215 |
Amortization of actuarial loss | 312 | 0 |
Net periodic pension expense (benefit) | ($1,156) | ($885) |
Pension_and_Other_Retirement_P3
Pension and Other Retirement Plans (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Contribution Plans | ||
Maximum pretax contribution per employee | 100.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent | 1.50% | |
Expense recognized | $258 | $253 |
Pension Plan | ||
Defined Benefit Plan Disclosure | ||
Expected long-term return on plan ssets | 6.50% | |
Employer contributions | 0 | 1,940 |
Defined Benefit Plan, Estimated Future Employer Contributions | ||
Estimated future employer contributions in 2015 | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Balance, beginning of period | ($57,367) | ($15,093) |
Amortization of net actuarial losses | 312 | -173 |
Balance, end of period | -57,055 | -15,266 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Balance, beginning of period | -57,654 | -16,059 |
Amortization of net actuarial losses | 312 | 0 |
Balance, end of period | -57,342 | -16,059 |
Other Post-Employment Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Balance, beginning of period | 287 | 966 |
Amortization of net actuarial losses | 0 | -173 |
Balance, end of period | $287 | $793 |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of earnings per share reconciliation) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net Income (Loss) Attributable to A. H. Belo Corporation | $363 | ($4,037) |
Less: Income (loss) from discontinued operations, net | -12 | 783 |
Less: Income to participating securities | 36 | -58 |
Net income available to common shareholders from continuing operations | $339 | ($4,878) |
Weighted Average Number of Shares Outstanding | ||
Weighted average common shares outstanding (basic) | 21,770,698 | 21,918,000 |
Effect of dilutive securities | 74,499 | 0 |
Adjusted weighted average shares outstanding (diluted) | 21,845,197 | 21,918,000 |
Earnings per share from continuing operations | ||
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $0.02 | ($0.22) |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 565,733 | 1,316,475 |
Investment_Dividends_Details
Investment Dividends (Details) | Mar. 31, 2015 |
Fiscal year 2015 | |
Pro-rata Dividends [Line Items] | |
Pro-rata dividend, percentage of free-cash-flow | 100.00% |
Fiscal year 2016 | |
Pro-rata Dividends [Line Items] | |
Pro-rata dividend, percentage of free-cash-flow | 50.00% |
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interests (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interests - redeemable | $1,263 | $0 |
Noncontrolling Interest, Change in Redemption Value | $0 | |
Maximum | Redeemable between 2nd and 3rd anniversaries | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25.00% | |
Maximum | Redeemable between 4th and 5th anniversaries | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% |