Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Entity Registrant Name | A. H. Belo Corp | |
Entity Central Index Key | 1,413,898 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Series A | ||
Entity Common Stock, Shares Outstanding | 19,203,564 | |
Series B | ||
Entity Common Stock, Shares Outstanding | 2,472,696 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Operating Revenue: | ||||
Advertising and marketing services | $ 38,304 | $ 39,184 | $ 111,581 | $ 114,281 |
Circulation | 19,633 | 20,279 | 59,806 | 62,133 |
Printing, distribution and other | 6,843 | 7,445 | 22,502 | 22,606 |
Total net operating revenue | 64,780 | 66,908 | 193,889 | 199,020 |
Operating Costs and Expense: | ||||
Employee compensation and benefits | 25,626 | 29,041 | 77,417 | 81,649 |
Other production, distribution and operating costs | 30,615 | 30,562 | 88,844 | 93,037 |
Newsprint, ink and other supplies | 6,315 | 7,266 | 18,834 | 23,275 |
Depreciation | 2,488 | 2,780 | 7,725 | 8,695 |
Amortization | 225 | 361 | 680 | 1,107 |
Total operating costs and expense | 65,269 | 70,010 | 193,500 | 207,763 |
Operating income (loss) | (489) | (3,102) | 389 | (8,743) |
Other Income (Expense): | ||||
Loss from equity method investments, net | (564) | (288) | ||
Other income, (expense), net | 114 | (489) | 601 | (912) |
Total other income (expense), net | 114 | (1,053) | 601 | (1,200) |
Income (Loss) from Continuing Operations Before Income Taxes | (375) | (4,155) | 990 | (9,943) |
Income tax provision (benefit) | 77 | (188) | 1,361 | (5,601) |
Loss from Continuing Operations | (452) | (3,967) | (371) | (4,342) |
Loss from divestiture of discontinued operations | (52) | (62) | ||
Loss from Discontinued Operations | (52) | (62) | ||
Net Loss | (452) | (4,019) | (371) | (4,404) |
Net income (loss) attributable to noncontrolling interests | 45 | (63) | 65 | (219) |
Net Loss Attributable to A. H. Belo Corporation | $ (497) | $ (3,956) | $ (436) | $ (4,185) |
Per Share Basis | ||||
Net loss attributable to A. H. Belo Corporation, Basic and diluted | $ (0.02) | $ (0.18) | $ (0.02) | $ (0.19) |
Number of common shares used in the per share calculation: | ||||
Basic and diluted | 21,676,260 | 21,651,670 | 21,601,828 | 21,721,875 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Comprehensive Income (Loss) (unaudited) [Abstract] | ||||
Net Loss | $ (452) | $ (4,019) | $ (371) | $ (4,404) |
Other Comprehensive Income (Loss): | ||||
Amortization of net actuarial (gains) losses, net of tax | (17) | 313 | (49) | 938 |
Total other comprehensive income (loss) | (17) | 313 | (49) | 938 |
Comprehensive Loss | (469) | (3,706) | (420) | (3,466) |
Comprehensive income (loss) attributable to noncontrolling interests | 45 | (63) | 65 | (219) |
Total Comprehensive Loss Attributable to A. H. Belo Corporation | $ (514) | $ (3,643) | $ (485) | $ (3,247) |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 78,341 | $ 78,380 |
Accounts receivable (net of allowance of $940 and $1,441 at September 30, 2016 and December 31, 2015, respectively) | 26,750 | 31,502 |
Inventories | 4,257 | 4,052 |
Prepaids and other current assets | 9,134 | 9,415 |
Assets held for sale | 2,600 | |
Total current assets | 121,082 | 123,349 |
Property, plant and equipment, at cost | 445,069 | 448,223 |
Less accumulated depreciation | (399,265) | (396,865) |
Property, plant and equipment, net | 45,804 | 51,358 |
Intangible assets, net | 5,098 | 5,778 |
Goodwill | 36,883 | 36,883 |
Investments | 1,432 | 1,632 |
Other assets | 3,083 | 2,501 |
Total assets | 213,382 | 221,501 |
Current liabilities: | ||
Accounts payable | 10,838 | 12,736 |
Accrued compensation and benefits | 7,456 | 7,100 |
Other accrued expense | 5,152 | 4,712 |
Advance subscription payments | 13,211 | 14,424 |
Total current liabilities | 36,657 | 38,972 |
Long-term pension liabilities | 54,831 | 57,446 |
Other post-employment benefits | 2,430 | 2,489 |
Deferred income taxes, net | 1,059 | 1,046 |
Other liabilities | 5,227 | 1,277 |
Total Liabilities | 100,204 | 101,230 |
Noncontrolling interest - redeemable | 1,335 | 1,421 |
Shareholders' equity: | ||
Preferred stock, $.01 par value; Authorized 2,000,000 shares; none issued | ||
Treasury stock, Series A, at cost; 1,416,881 shares held at September 30, 2016 and December 31, 2015 | (11,233) | (11,233) |
Additional paid-in capital | 500,741 | 500,449 |
Accumulated other comprehensive loss | (38,491) | (38,442) |
Accumulated deficit | (340,686) | (333,222) |
Total shareholders’ equity attributable to A. H. Belo Corporation | 110,562 | 117,781 |
Noncontrolling interests | 1,281 | 1,069 |
Total shareholders’ equity | 111,843 | 118,850 |
Total liabilities and shareholders’ equity | 213,382 | 221,501 |
Series A | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | 207 | 205 |
Series B | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | $ 24 | $ 24 |
Consolidated Balance Sheets (u5
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts receivable | $ 940 | $ 1,441 |
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, shares, issued | 20,620,445 | 20,522,503 |
Series B | ||
Common stock, shares, issued | 2,472,696 | 2,387,509 |
Treasury Stock [Member] | Series A | ||
Treasury stock Series A, shares held | 1,416,881 | 1,416,881 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Common Stock [Member]Series A | Common Stock [Member]Series B | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member]Series A | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Noncontrolling Interests [Member] | Total |
Beginning Balance at Dec. 31, 2014 | $ 227 | $ 499,320 | $ (8,087) | $ (57,367) | $ (308,330) | $ 256 | $ 126,019 | |||
Beginning Balance, Shares Common Stock at Dec. 31, 2014 | 20,341,501 | 2,388,237 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2014 | (944,636) | |||||||||
Net income (loss) | (4,185) | (219) | (4,404) | |||||||
Other comprehensive income (loss) | 938 | 938 | ||||||||
Capital contributions of noncontrolling interests | 2,105 | 2,105 | ||||||||
Treasury stock purchases, shares | (369,952) | |||||||||
Treasury stock purchases | (2,589) | (2,589) | ||||||||
Issuance of shares for restricted stock units, shares | 155,097 | |||||||||
Issuance of shares for restricted stock units | 2 | (2) | ||||||||
Issuance of shares for stock option exercises, shares | 18,000 | |||||||||
Issuance of shares for stock option exercises | 71 | 71 | ||||||||
Excess tax benefit on share-based compensation | 546 | 546 | ||||||||
Share-based compensation | 537 | 537 | ||||||||
Conversion of Series B to Series A, shares | 728 | (728) | ||||||||
Dividends | (5,302) | (5,302) | ||||||||
Ending Balance at Sep. 30, 2015 | 229 | 500,472 | (10,676) | (56,429) | (317,817) | 2,142 | 117,921 | |||
Ending Balance, Shares Common Stock at Sep. 30, 2015 | 20,515,326 | 2,387,509 | ||||||||
Ending Balance, Shares Treasury Stock at Sep. 30, 2015 | (1,314,588) | |||||||||
Beginning Balance at Dec. 31, 2015 | 229 | 500,449 | (11,233) | (38,442) | (333,222) | 1,069 | 118,850 | |||
Beginning Balance, Shares Common Stock at Dec. 31, 2015 | 20,522,503 | 2,387,509 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2015 | (1,416,881) | |||||||||
Net income (loss) | (436) | 52 | (384) | |||||||
Other comprehensive income (loss) | (49) | (49) | ||||||||
Distributions to noncontrolling interests | (236) | $ (236) | ||||||||
Capital contributions of noncontrolling interests | 396 | (396) | ||||||||
Issuance of shares for restricted stock units, shares | 97,203 | |||||||||
Issuance of shares for restricted stock units | 1 | (1) | ||||||||
Issuance of shares for stock option exercises, shares | 85,926 | 85,926 | ||||||||
Issuance of shares for stock option exercises | 1 | 155 | $ 156 | |||||||
Share-based compensation | 534 | 534 | ||||||||
Conversion of Series B to Series A, shares | 739 | (739) | ||||||||
Dividends | (7,028) | (7,028) | ||||||||
Ending Balance at Sep. 30, 2016 | $ 231 | $ 500,741 | $ (11,233) | $ (38,491) | $ (340,686) | $ 1,281 | $ 111,843 | |||
Ending Balance, Shares Common Stock at Sep. 30, 2016 | 20,620,445 | 2,472,696 | ||||||||
Ending Balance, Shares Treasury Stock at Sep. 30, 2016 | (1,416,881) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net Loss | $ (371) | $ (4,404) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Loss from divestiture of discontinued operations | 62 | |
Depreciation and amortization | 8,405 | 9,802 |
Net periodic pension and other post-employment benefits | (2,626) | (3,425) |
Equity method investment loss in excess of dividends | 1,334 | |
Share-based compensation | 534 | 528 |
Deferred income taxes | 13 | (3,978) |
(Gain) loss on investment related activity | 200 | (1,046) |
(Gain) loss on disposal of fixed assets | (328) | 810 |
Other operating activities | 675 | |
Changes in working capital and other operating assets and liabilities, net of acquisitions | 852 | (9,203) |
Net cash provided by (used for) continuing operations | 6,679 | (8,845) |
Net cash used for discontinued operations | (23) | |
Net cash provided by (used for) operating activities | 6,679 | (8,868) |
Investing Activities | ||
Acquisition costs, net of cash acquired | (14,110) | |
Sales of assets | 328 | 5,911 |
Purchases of assets | (4,168) | (4,546) |
Other investment related proceeds | 1,045 | |
Purchases of investments | (500) | |
Net cash used for investing activities | (3,840) | (12,200) |
Financing Activities | ||
Dividends paid | (5,265) | (55,450) |
Proceeds from other financing activities | 2,566 | |
Distributions to noncontrolling interests | (335) | |
Purchases of treasury stock | (2,589) | |
Proceeds from exercise of stock options | 156 | 71 |
Excess tax benefit on share-based compensation | 546 | |
Net cash used for financing activities | (2,878) | (57,422) |
Net decrease in cash and cash equivalents | (39) | (78,490) |
Cash and cash equivalents, beginning of period | 78,380 | 158,171 |
Cash and cash equivalents, end of period | 78,341 | 79,681 |
Supplemental Disclosures | ||
Income taxes paid, net of refunds | 1,623 | 11,599 |
Noncash investing and financing activities: | ||
Investments in property and equipment not paid | $ 603 | |
Noncash contributions from noncontrolling interests | $ 3,368 |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation and Recently Issued Accounting Standards [Abstract] | |
Basis of Presentation and Recently Issued Accounting Standards | Note 1: Basis of Presentation and Recently Issued Accounting Standards Description of Business. A. H. Belo Corporation and subsidiaries are referred to collectively herein as “A. H. Belo” or the “Company . ” 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 digital marketing. With a continued focus on extendin g the Company’s media platform, A. H. Belo deliver s 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 marketing solutions through Your Speakeasy, LLC (“Speakeasy”) and DMV Digital Holdings Company (“DMV Holdings”) , and provides event promotion and marketing services through DMN CrowdSource LLC (“CrowdSource ”). Basis of Presentation. The interim consolidated financial statements included herein are unaudited; however, they include adjustments of a normal recurring nature which, in the Company’s opinion, are necessary to present fairly the interim consolidated financial information as of and for the periods indicated. All significant intercompany balances and transactions have been eliminated in consolidation. A. H. Belo consolidates the financial results of the entities in which it has controlling financial interest s, including Speakeasy and DMV Holdings, in which the Company holds ownership percentages of 70 percent and 80 percent, respectively . As a consequence, the assets and liabilities of such entities are presented on a consolidated basis in A. H. Belo’s financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context requires otherwise. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net operating revenues and expenses recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates. Recently Adopted Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-05 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The standard became effective for annual and interim reporting periods beg inning after December 15, 2015. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company adopted this standard in the f ourth quarter of 201 5 . Accordingly, the Company has not retroactively accounted for the changes in the purchase price allocation for DMV Holdings, which was finalized in the fourth quarter of 2015 . In March 2016, the FASB issued ASU 2016-09 – Compensation – Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting . The amendments in this update affect all entities that issue share-based payment awards to their employees. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. T he Company early adopted this standard in the first quarter of 2016. Adoption of this standard did not materially impact the Company's financial statements. New Accounting Pronouncements. The FASB has issued the following accounting pronouncements and guidance which may be applicable to the Company but have not yet become effective. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). This guidance is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principle - based approach. It also requires disclosures designed to enable readers of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Further, in March 2016, the FASB issued ASU 2016-08 – Revenue from Contr acts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), and in April 2016, the FASB issued ASU 2016-10 – Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . In May 2016, the FASB issued ASU 2016-12 – Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . These updates clarify implementation guidance on the related topic. The accounting guidance updates will replace most existing revenue recognition guidance in GAAP. The standard was to be effective for annual and interim reporting periods begi nning after December 15, 2016. ASU 2015-14 deferred the effective date of this update for all entities by one year. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the requirements of these updates and has not yet determined its impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 – Leases (Topic 842). This update requires an entity to recognize a right-of-use asset and a lease liability for virtually all of its leases. The liability will be equal to the present value of lease payments. The asset will generally be based on the liability. For income statement purposes operating leases will result in straight-line expense and finance leases will result in expenses similar to current capital leases. The guidance also requires additional disclosures to enable users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of this update and has not yet determined its impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-07 – Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. This update addresses the use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments in this update eliminate the requirement to retroactively adopt the equity method of accounting. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of this update and has not yet determined its impact on the Company’s consolidated financial statements. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 2 : Segment Reporting The Company ’s operating segments are based on internal management reporting as well as product and service offerings , and are defined as : Publishing (“Publishing”) and Marketing, Event Marketing and Other Services (“MEMO”). The Publishing segment includes the Company’s core print operations associated with its newspapers, niche publications and related websites. These operations generate revenue from sales of advertising within newspaper and digital platforms, subscription and retail sales of newspapers and commercial printing and distribution services primarily related to national and regional newspapers and preprint advertisers. Businesses within the Publishing segment lever age production facilities, subscriber base and digital news platforms to provide additional contribution margin. The Company assesses the performance of Publishing operations on the basis of operating profit and cash flows from operating activities. The MEMO segment is comprised of the Company’s marketing, event marketing and other businesses. Marketing services and product offerings include multi-channel marketing services and software, targeted-channel marketing services, marketing analytics, content development, social media management and other consulting services. Marketing services also include non-digital marketing products, including sales of business promotional items and sales of pay-for-performance services directed primarily to other newspaper companies. Marketing services include the operations of DMV Holdings, Speakeasy and Proven Performance Media, as well as its operating division doing business as Connect and its cars.com sales division. Event marketing includes the operations of CrowdSource, which promotes community events . The Company assesses the performance of MEMO operations on the basis of revenue growth and operating profit in conjunction with the expansion of these businesses within their respective markets. The following tables show summarized financial information for the Company’s reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue Publishing $ 52,606 $ 57,060 $ 160,821 $ 173,271 MEMO 12,174 9,848 33,068 25,749 Total $ 64,780 $ 66,908 $ 193,889 $ 199,020 Operating Income (Loss) Publishing $ (1,975) $ (3,939) $ (3,018) $ (9,083) MEMO 1,486 837 3,407 340 Total $ (489) $ (3,102) $ 389 $ (8,743) Depreciation and Amortization Publishing Depreciation $ 2,467 $ 2,752 $ 7,665 $ 8,607 Amortization — 30 — 90 Total $ 2,467 $ 2,782 $ 7,665 $ 8,697 MEMO Depreciation $ 21 $ 28 $ 60 $ 88 Amortization 225 331 680 1,017 Total $ 246 $ 359 $ 740 $ 1,105 September 30, December 31, 2016 2015 Total Assets Publishing $ 189,446 $ 196,912 MEMO 23,936 24,589 Total $ 213,382 $ 221,501 |
Sales of Assets
Sales of Assets | 9 Months Ended |
Sep. 30, 2016 | |
Sales of Assets [Abstract] | |
Sales of Assets | Note 3: Sales of Assets Assets held for sale include long-lived assets being actively marketed for which a sale is considered probable within the next 12 months. These assets are recorded at the lower of their fair value less costs to sell or their carrying value at the time they are classified as a ssets held for sale. In the third quarter of 2016 , the Company commenced due diligence related to the sale of a parking lot located in downtown Dallas, Texas . Th is asset, with a total carrying value of $2,600 , is reported as a ssets held for sale as of September 30 , 2016 . In June 2015, the Company completed the sale of land and a building which served as the headquarters of The Providence Journal , a publication formerly owned by the Company. The Company received net proceeds of $6,119 in the second quarter of 2015 upon closing of the transaction, generating a loss of $2 65 , which was offset by $328 of returned escrow received in the second quarter of 2016. Also during the second quarter of 2015, the Company demolished existing structures on an additional property in Providence, Rhode Island, at a cost of $412 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 4 : Goodwill and Intangible Assets Goodwill and other intangible assets by reportable segment as of September 30, 2016 and December 31, 2015 are as follows: September 30, December 31, 2016 2015 Goodwill Publishing $ 22,682 $ 22,682 MEMO 14,201 14,201 Total $ 36,883 $ 36,883 Intangible Assets MEMO Cost $ 6,710 $ 6,710 Accumulated Amortization (1,612) (932) Net Carrying Value $ 5,098 $ 5,778 Intangible assets consist of $5,190 of customer relationships with estimated useful lives of 10 years and $ 1,520 of developed technology with an estimated useful life of five years. Aggregate amortization expense was $225 and $680 for the three and nine months ended September 30, 2016 , respectively, and $361 and $1,107 for the three and nine months ended September 30, 2015 , respectively. |
Long-term Incentive Plan
Long-term Incentive Plan | 9 Months Ended |
Sep. 30, 2016 | |
Long-term Incentive Plan [Abstract] | |
Long-term Incentive Plan | Note 5 : Long-term Incentive Plan A. H. Belo sponsors a long-term incentive plan (the “Plan”) under which 8,000,000 shares of the Company’s Series A common stock are 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 share awards , restricted stock units (“ 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. Awards under the Plan were also granted to holders of stock options issued by A.H. Belo’s former parent company in connection with the Company’s separation from its former parent in 2008. Stock Options. S tock options granted under the Plan are fully vested and exercisable. No options have been granted since 2009, and all compensation expense associated with stock options has been fully recognized as of September 30, 2016 . The table below sets forth a summary of stock option activity under the P lan. Number of Options WeightedAverage Exercise Price Outstanding at December 31, 2015 259,311 $ 8.37 Exercised (85,926) 1.81 Canceled (26,942) 18.57 Outstanding at September 30, 2016 146,443 $ 10.34 No options were exercised in the three months ended September 30, 2016 and 2015. The aggregate intrinsic value of options exercised in the nine months ended September 30, 2016 and 2015 , was $300 and $100 , respectively . The aggregate intrinsic value of outstanding options at September 30, 2016 , was $89 . The weighted average remaining contractual life of the Company’s stock options was 1.4 years as of September 30, 2016 . Restricted Stock Units. T he Company’s RSUs have a service condition and, subject to retirement eligibility, 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 over a period of three years. As of September 30, 2016 , the liability for the portion of the award to be redeemed in cash was $793 . The table below sets forth a summary of RSU activity under the P lan. Total RSUs Issuance of Common Stock RSUs Redeemed in Cash Cash Payments at Closing Price of Stock Weighted- Average Price on Date of Grant Non-vested at December 31, 2015 92,355 $ 7.13 Granted 202,955 5.47 Vested and outstanding (142,113) 5.90 Vested and issued (18,668) 11,196 7,472 $ 44 8.10 Non-vested at September 30, 2016 134,529 $ 5.79 For the nine months ended September 30, 2016 , the Company issued 86,007 shares that were previously vested as of December 31, 2015. In addition, there were 223,676 and 224,911 RSUs that were vested and outstanding as of September 30, 2016 and December 31, 2015, respectively. The fair value of RSU grants is determined using the closing trading price of the Company’s Series A common stock on the grant date. As of September 30, 2016 , unrecognized compensation expense related to non-vested RSUs totaled $496 , which is expected to be recognized over a weighted-average period of 1. 1 years. Compensation Expense. A. H. Belo recognizes compensation expense for awards granted under the P lan over the vesting period of the award. Compensation expense related to RSUs granted under the Plan is set forth in the table below. RSUs Redeemable in Stock RSUs Redeemable in Cash Total RSU Awards Expense Three months ended September 30, 2016 $ 86 $ 303 $ 389 2015 77 (32) 45 Nine months ended September 30, 2016 $ 534 $ 604 $ 1,138 2015 528 (399) 129 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 6 : Income Taxes The interim provision for income 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 annual effective tax rate is reviewed each quarter based on the Company’s estimated income tax expense for the year. Under certain circumstances, the Company may be precluded from estimating an annual effective tax rate. Such circumstances may include periods in which tax rates vary significantly due to earnings trends, in addition to the existence of significant permanent or temporary differences. Under such circumstances, a discrete tax rate is calculated for the period. The Company recognized income tax pr ovision (benefit) from continuing operations of $77 and $(188) for the three months ended September 30, 2016 and 2015 , respectively, and $1,361 and $(5,601) for the nine months ended September 30, 2016 and 2015 , respectively. Effective income tax rates from continuing operations were 137.5 percent and 56.3 percent for the nine months ended September 30, 2016 and 2015 , respectively. The effective income tax rate for the nine months ended September 30, 2016, was higher when compared to the prior year period due to taxable income , changes in valuation allowance and the disposit ion of fixed assets . |
Pension and Other Retirement Pl
Pension and Other Retirement Plans | 9 Months Ended |
Sep. 30, 2016 | |
Pension and Other Retirement Plans [Abstract] | |
Pension and Other Retirement Plans | Note 7 : Pension and Other Retirement Plans Defined Benefit Plans. The Company sponsors the A. H. Belo Pension Plans, which provide benefits to approximately 2,300 current and former employees of the Company. A. H. Belo Pension Plan I provides benefits to certain current and former 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 former employees of The Providence Journal Company . This obligation was retained by the Company upon the sale 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 . No contributions are required to the A. H. Belo Pension Plans in 2016 under the applicable tax and labor laws governing pension plan funding. Net Periodic Pension Benefit The Company ’s estimates of net periodic pension expense or benefit are based on the e xpected return on plan assets, interest on the projected benefit obligations and the amortization of actuarial gains and losses that are deferred in accumulated other comprehensive loss . The table below sets forth components of net periodic pension benefit. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest cost $ 2,525 $ 3,540 $ 7,574 $ 10,620 Expected return on plans' assets (3,396) (5,008) (10,189) (15,024) Amortization of actuarial loss 11 313 42 938 Net periodic pension benefit $ (860) $ (1,155) $ (2,573) $ (3,466) 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’ compensa tion on a per-pay-period basis. During the three months ended September 30, 2016 and 2015 , the Company recorded expense of $248 and $239 , respectively, and during the nine months ended September 30, 2016 and 2015 , the Company recorded expense of $749 and $765 , respectively, for matching contributions to the plan . |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 8 : Shareholders’ Equity Dividends . On September 8, 2016 , the Company announced a $0.08 per share dividend to shareholders of record and holders of RSUs as of the close of business on November 10 , 2016 , which is payable on December 2, 2016 . During the three months ended September 30, 2016, the Company recorded $1,763 to accrue for dividends declared but not yet paid. Accumulated other comprehensive loss . Accumulated other comprehensive loss c onsists of actuarial gains and losses a ttributable to the A. H. Belo Pension Plans , gains and losses resulting from plan amendments and other actuarial experience attributable to other post-employment benefit plans. The Company records amortization of the components 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 plan 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. Net deferred tax assets associated with the accumulated other comprehensive loss are fully reserved. The tables below sets forth the changes in accumulated other comprehensive loss, net of tax , as presented in the Company’s consolidated financial statements. Three Months Ended September 30, 2016 2015 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (38,474) $ (38,867) $ 393 $ (56,742) $ (57,028) $ 286 Amortization (17) 11 (28) 313 314 (1) Balance, end of period $ (38,491) $ (38,856) $ 365 $ (56,429) $ (56,714) $ 285 Nine Months Ended September 30, 2016 2015 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (38,442) $ (38,898) $ 456 $ (57,367) $ (57,654) $ 287 Amortization (49) 42 (91) 938 940 (2) Balance, end of period $ (38,491) $ (38,856) $ 365 $ (56,429) $ (56,714) $ 285 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 : Earnings Per Share The table below sets forth the reconciliation for net loss and weighted average shares used for calculating basic and diluted earnings per share (“EPS”). The Company’s Series A an d B common stock equally share in the distributed and undistributed earnings. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Earnings (Numerator) Net loss attributable to A. H. Belo Corporation $ (497) $ (3,956) $ (436) $ (4,185) Less: Loss from discontinued operations — (52) — (62) Less: Dividends to participating securities 29 26 83 88 Net loss available to common shareholders from continuing operations $ (526) $ (3,930) $ (519) $ (4,211) Shares (Denominator) Weighted average common shares outstanding (basic and diluted) 21,676,260 21,651,670 21,601,828 21,721,875 Loss Per Share from Continuing Operations Basic and diluted $ (0.02) $ (0.18) $ (0.02) $ (0.19) 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 earnings per share. A total of 504,648 and 699,780 options and RSUs outstanding during the three and nine months ended September 30, 2016 and 2015 , respectively , were excluded from the calculation because the effect was anti-dilutive. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Contingencies [Abstract] | |
Contingencies | Note 1 0 : Contingencies Legal proceedings. From time to time, the Company is involved in a variety of claims, lawsuits and other disputes arising in the ordinary course of business. Management routinely assesses the likelihood of adverse judgments or outcomes in these matters, as well as the ranges of probable losses to the extent losses are reasonably estimable. Accruals for contingencies are recorded when, in the judgment of management, adverse judgments or outcomes are probable and the financial impact, should an adverse outcome occur, is reasonably estimable. The determination of likely outcomes of litigation matters relates to factors that include, but are not limited to, past experience and other evidence, interpretation of relevant laws or regulations and the specifics and status of each matter. Predicting the outcome of claims and litigation and estimating related costs and financial exposure involves substantial uncertainties that could cause actual results to vary materially from estimates and accruals. The Company is currently involved in a dispute with a customer regarding performance and pricing terms with respect to a change order to its printing services contract with the Company. Although the Company believes its position related to the contract can be sustained on its legal merits, it is reasonably possible that losses from zero up to the total amount of disputed invoices, totaling approximately $1,500 , could be incurred in connection with the dispute. In the opinion of management, liabilities, if any, arising from other currently existing claims against the Company would not have a material adverse effect on A. H. Belo’s results of operations, liquidity or financial condition. Pro-rata dis tributions . In con nection with the acquisition of DMV Holdings, the shareholder agreement provides for a pro-rata di stribution of 100 percent and 50 percent of DMV Holdings ’ 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 interes t expense, as applicable. In the nine months ended September 30, 2016 , the Company made pro-rata distributions to noncontrolling interests of $264 in connection with this agreement based on 2015 free cash flow as defined. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2016 | |
Redeemable Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 11: Redeemable Noncontrolling Interest In connection with the acquisition of DMV Holdings, the Company entered into a shareholder agreement which provides for 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 the noncontrolling ownership interest in DMV Holdings between the second and third anniversaries of the agreement and up to 50 percent of the noncontrolling ownership interest in DMV Holdings between the fourth and fifth anniversaries of the agreement. The exercisability of the noncontrolling interest put option is outside the control of the Company. As such, the redeemable noncontrolling interest of $1,335 and $ 1,421 is reported in the mezzanine equity section of the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, respectively. In the event that the put option expire s unexercised, the related portion of noncontrolling interest would be classified as a component of equity in the Consolidated Balance Sheets. Redeemable noncontrolling interest is recorded at fair value on the acquisition date and the carrying value is adjusted each period for its share of the earnings related to DMV Holdings. After the carrying value is adjusted for its share of the earnings related to DMV Holdings, the carrying value is adjusted for the change in fair value, which is the greater of the estimated redemption value or the value that would otherwise be assigned if the interest was not redeemable. Adjustments are recorded to retained earnings or additional paid in capital, as applicable, and have no effect to earnings of the Company. During the nine months ended September 30, 2016 , redeemable noncontrolling interest was increased by $13 for its share of the DMV Holdings’ earnings and decreased by $99 for distributions related to 2015 free cash flow as required under the shareholder agreement . |
Basis of Presentation and Rec19
Basis of Presentation and Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation and Recently Issued Accounting Standards [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation. The interim consolidated financial statements included herein are unaudited; however, they include adjustments of a normal recurring nature which, in the Company’s opinion, are necessary to present fairly the interim consolidated financial information as of and for the periods indicated. All significant intercompany balances and transactions have been eliminated in consolidation. A. H. Belo consolidates the financial results of the entities in which it has controlling financial interest s, including Speakeasy and DMV Holdings, in which the Company holds ownership percentages of 70 percent and 80 percent, respectively . As a consequence, the assets and liabilities of such entities are presented on a consolidated basis in A. H. Belo’s financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context requires otherwise. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net operating revenues and expenses recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-05 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The standard became effective for annual and interim reporting periods beg inning after December 15, 2015. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company adopted this standard in the f ourth quarter of 201 5 . Accordingly, the Company has not retroactively accounted for the changes in the purchase price allocation for DMV Holdings, which was finalized in the fourth quarter of 2015 . In March 2016, the FASB issued ASU 2016-09 – Compensation – Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting . The amendments in this update affect all entities that issue share-based payment awards to their employees. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. T he Company early adopted this standard in the first quarter of 2016. Adoption of this standard did not materially impact the Company's financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements. The FASB has issued the following accounting pronouncements and guidance which may be applicable to the Company but have not yet become effective. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). This guidance is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principle - based approach. It also requires disclosures designed to enable readers of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Further, in March 2016, the FASB issued ASU 2016-08 – Revenue from Contr acts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), and in April 2016, the FASB issued ASU 2016-10 – Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . In May 2016, the FASB issued ASU 2016-12 – Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . These updates clarify implementation guidance on the related topic. The accounting guidance updates will replace most existing revenue recognition guidance in GAAP. The standard was to be effective for annual and interim reporting periods begi nning after December 15, 2016. ASU 2015-14 deferred the effective date of this update for all entities by one year. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the requirements of these updates and has not yet determined its impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 – Leases (Topic 842). This update requires an entity to recognize a right-of-use asset and a lease liability for virtually all of its leases. The liability will be equal to the present value of lease payments. The asset will generally be based on the liability. For income statement purposes operating leases will result in straight-line expense and finance leases will result in expenses similar to current capital leases. The guidance also requires additional disclosures to enable users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of this update and has not yet determined its impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-07 – Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. This update addresses the use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments in this update eliminate the requirement to retroactively adopt the equity method of accounting. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of this update and has not yet determined its impact on the Company’s consolidated financial statements. |
Income Taxes (Policy)
Income Taxes (Policy) | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes, Policy | The interim provision for income 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 annual effective tax rate is reviewed each quarter based on the Company’s estimated income tax expense for the year. Under certain circumstances, the Company may be precluded from estimating an annual effective tax rate. Such circumstances may include periods in which tax rates vary significantly due to earnings trends, in addition to the existence of significant permanent or temporary differences. Under such circumstances, a discrete tax rate is calculated for the period. |
Pension And Other Retirement 21
Pension And Other Retirement Plans (Policy) | 9 Months Ended |
Sep. 30, 2016 | |
Pension and Other Retirement Plans [Abstract] | |
Pension and Other Retirement Obligations, Policy | The Company ’s estimates of net periodic pension expense or benefit are based on the e xpected return on plan assets, interest on the projected benefit obligations and the amortization of actuarial gains and losses that are deferred in accumulated other comprehensive loss . |
Shareholders' Equity (Policy)
Shareholders' Equity (Policy) | 9 Months Ended |
Sep. 30, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity, Policy | Dividends . On September 8, 2016 , the Company announced a $0.08 per share dividend to shareholders of record and holders of RSUs as of the close of business on November 10 , 2016 , which is payable on December 2, 2016 . During the three months ended September 30, 2016, the Company recorded $1,763 to accrue for dividends declared but not yet paid. Accumulated other comprehensive loss . Accumulated other comprehensive loss c onsists of actuarial gains and losses a ttributable to the A. H. Belo Pension Plans , gains and losses resulting from plan amendments and other actuarial experience attributable to other post-employment benefit plans. The Company records amortization of the components 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 plan 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. Net deferred tax assets associated with the accumulated other comprehensive loss are fully reserved. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | The following tables show summarized financial information for the Company’s reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue Publishing $ 52,606 $ 57,060 $ 160,821 $ 173,271 MEMO 12,174 9,848 33,068 25,749 Total $ 64,780 $ 66,908 $ 193,889 $ 199,020 Operating Income (Loss) Publishing $ (1,975) $ (3,939) $ (3,018) $ (9,083) MEMO 1,486 837 3,407 340 Total $ (489) $ (3,102) $ 389 $ (8,743) Depreciation and Amortization Publishing Depreciation $ 2,467 $ 2,752 $ 7,665 $ 8,607 Amortization — 30 — 90 Total $ 2,467 $ 2,782 $ 7,665 $ 8,697 MEMO Depreciation $ 21 $ 28 $ 60 $ 88 Amortization 225 331 680 1,017 Total $ 246 $ 359 $ 740 $ 1,105 September 30, December 31, 2016 2015 Total Assets Publishing $ 189,446 $ 196,912 MEMO 23,936 24,589 Total $ 213,382 $ 221,501 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of identifiable intangible assets | September 30, December 31, 2016 2015 Goodwill Publishing $ 22,682 $ 22,682 MEMO 14,201 14,201 Total $ 36,883 $ 36,883 Intangible Assets MEMO Cost $ 6,710 $ 6,710 Accumulated Amortization (1,612) (932) Net Carrying Value $ 5,098 $ 5,778 |
Long-term Incentive Plan (Table
Long-term Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Long-term Incentive Plan [Abstract] | |
Schedule of stock options outstanding activity | Number of Options WeightedAverage Exercise Price Outstanding at December 31, 2015 259,311 $ 8.37 Exercised (85,926) 1.81 Canceled (26,942) 18.57 Outstanding at September 30, 2016 146,443 $ 10.34 |
Schedule of RSU activity | Total RSUs Issuance of Common Stock RSUs Redeemed in Cash Cash Payments at Closing Price of Stock Weighted- Average Price on Date of Grant Non-vested at December 31, 2015 92,355 $ 7.13 Granted 202,955 5.47 Vested and outstanding (142,113) 5.90 Vested and issued (18,668) 11,196 7,472 $ 44 8.10 Non-vested at September 30, 2016 134,529 $ 5.79 |
Schedule of compensation expense related to stock awards | RSUs Redeemable in Stock RSUs Redeemable in Cash Total RSU Awards Expense Three months ended September 30, 2016 $ 86 $ 303 $ 389 2015 77 (32) 45 Nine months ended September 30, 2016 $ 534 $ 604 $ 1,138 2015 528 (399) 129 |
Pension and Other Retirement 26
Pension and Other Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Pension and Other Retirement Plans [Abstract] | |
Schedule of net periodic pension expense | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest cost $ 2,525 $ 3,540 $ 7,574 $ 10,620 Expected return on plans' assets (3,396) (5,008) (10,189) (15,024) Amortization of actuarial loss 11 313 42 938 Net periodic pension benefit $ (860) $ (1,155) $ (2,573) $ (3,466) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Shareholders' Equity [Abstract] | |
Changes in accumulated other comprehensive loss | Three Months Ended September 30, 2016 2015 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (38,474) $ (38,867) $ 393 $ (56,742) $ (57,028) $ 286 Amortization (17) 11 (28) 313 314 (1) Balance, end of period $ (38,491) $ (38,856) $ 365 $ (56,429) $ (56,714) $ 285 Nine Months Ended September 30, 2016 2015 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (38,442) $ (38,898) $ 456 $ (57,367) $ (57,654) $ 287 Amortization (49) 42 (91) 938 940 (2) Balance, end of period $ (38,491) $ (38,856) $ 365 $ (56,429) $ (56,714) $ 285 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share reconciliation | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Earnings (Numerator) Net loss attributable to A. H. Belo Corporation $ (497) $ (3,956) $ (436) $ (4,185) Less: Loss from discontinued operations — (52) — (62) Less: Dividends to participating securities 29 26 83 88 Net loss available to common shareholders from continuing operations $ (526) $ (3,930) $ (519) $ (4,211) Shares (Denominator) Weighted average common shares outstanding (basic and diluted) 21,676,260 21,651,670 21,601,828 21,721,875 Loss Per Share from Continuing Operations Basic and diluted $ (0.02) $ (0.18) $ (0.02) $ (0.19) |
Basis of Presentation and Rec29
Basis of Presentation and Recently Issued Accounting Standards (Details) | Sep. 30, 2016 |
Speakeasy | |
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |
Consolidated method - A. H. Belo ownership | 70.00% |
DMV | |
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |
Consolidated method - A. H. Belo ownership | 80.00% |
Segment Reporting (Reportable S
Segment Reporting (Reportable Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 64,780 | $ 66,908 | $ 193,889 | $ 199,020 | |
Operating Income (Loss) | (489) | (3,102) | 389 | (8,743) | |
Depreciation | 2,488 | 2,780 | 7,725 | 8,695 | |
Amortization | 225 | 361 | 680 | 1,107 | |
Total Assets | 213,382 | 213,382 | $ 221,501 | ||
Operating Segments | Publishing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 52,606 | 57,060 | 160,821 | 173,271 | |
Operating Income (Loss) | (1,975) | (3,939) | (3,018) | (9,083) | |
Depreciation | 2,467 | 2,752 | 7,665 | 8,607 | |
Amortization | 30 | 90 | |||
Total | 2,467 | 2,782 | 7,665 | 8,697 | |
Total Assets | 189,446 | 189,446 | 196,912 | ||
Operating Segments | Marketing, Event Marketing and Other Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 12,174 | 9,848 | 33,068 | 25,749 | |
Operating Income (Loss) | 1,486 | 837 | 3,407 | 340 | |
Depreciation | 21 | 28 | 60 | 88 | |
Amortization | 225 | 331 | 680 | 1,017 | |
Total | 246 | $ 359 | 740 | $ 1,105 | |
Total Assets | $ 23,936 | $ 23,936 | $ 24,589 |
Sales of Assets (Details)
Sales of Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale | $ 2,600 | |||
Net proceeds from sale of land and building | 328 | $ 5,911 | ||
Gain (loss) on sale or disposition of assets | $ 328 | $ (810) | ||
Land and Building Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of land and building | $ 6,119 | |||
Gain (loss) on sale or disposition of assets | (265) | |||
Escrow deposit returned | $ 328 | |||
Building Demolition | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on sale or disposition of assets | $ (412) |
Goodwill and Intangible Asset32
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 225 | $ 361 | $ 680 | $ 1,107 |
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite-lived intangibles | 5,190 | $ 5,190 | ||
Definite-lived intangibles, useful life | 10 years | |||
Developed Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite-lived intangibles | $ 1,520 | $ 1,520 | ||
Definite-lived intangibles, useful life | 5 years |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets (Schedule of identifiable intangible assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 36,883 | $ 36,883 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Net Carrying Value | 5,098 | 5,778 |
Operating Segments | Publishing | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 22,682 | 22,682 |
Operating Segments | Marketing, Event Marketing and Other Services | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 14,201 | 14,201 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Cost | 6,710 | 6,710 |
Accumulated Amortization | (1,612) | (932) |
Net Carrying Value | $ 5,098 | $ 5,778 |
Long-term Incentive Plan (Narra
Long-term Incentive Plan (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Share-based compensation expense | |||||
Number of shares authorized | 8,000,000 | 8,000,000 | |||
Number of options exercised | 85,926 | ||||
Number of shares issued | 86,007 | ||||
Employee Stock Option | |||||
Share-based compensation expense | |||||
Options, exercises in period, intrinsic Value | $ 300 | $ 100 | |||
Options, outstanding, intrinsic value | $ 89 | $ 89 | |||
Weighted average remaining contractual life | 1 year 4 months 24 days | ||||
Number of options exercised | 0 | 0 | |||
Number of options granted | 0 | ||||
RSUs | |||||
Share-based compensation expense | |||||
RSUs Vested and outstanding | 223,676 | 223,676 | 224,911 | ||
RSUs Redeemed in cash, liability | $ 793 | $ 793 | |||
RSUs, award vesting period | 3 years | ||||
RSUs, percentage of redemption in common stock | 60.00% | ||||
RSUs, percentage of redemption in cash | 40.00% | ||||
Unrecognized compensation cost | $ 496 | $ 496 | |||
Unrecognized compensation cost, weighted-average period | 1 year 1 month 6 days |
Long-term Incentive Plan (Sched
Long-term Incentive Plan (Schedule of stock options outstanding activity) (Details) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Stock option activity rollforward | |
Number of Options, Outstanding, Beginning Balance | shares | 259,311 |
Number of Options Exercised | shares | (85,926) |
Number of Options Canceled | shares | (26,942) |
Number of Options, Outstanding, Ending Balance | shares | 146,443 |
Weighted average price per share | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ / shares | $ 8.37 |
Weighted Average Exercise Price, Exercised | $ / shares | 1.81 |
Weighted Average Exercise Price, Canceled | $ / shares | 18.57 |
Weighted Average Exercise Price, Outstanding Ending Balance | $ / shares | $ 10.34 |
Long-term Incentive Plan (Sch36
Long-term Incentive Plan (Schedule of RSU activity) (Details) - RSUs $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
RSU non-vested rollforward | |
Number of RSUs, Outstanding, Beginning Balance | 92,355 |
Number of RSUs Granted | 202,955 |
Number of RSUs Vested and outstanding | (142,113) |
Number of RSUs Vested and issued | (18,668) |
Number of RSUs, Outstanding, Ending Balance | 134,529 |
Vested RSUs redeemed for stock, cash, and related payments | |
Issuance of Common Stock | 11,196 |
RSUs Redeemed in Cash | 7,472 |
Cash Payments at Closing Price of Stock | $ | $ 44 |
Weighted-Average Price on Date of Grant | |
Beginning balance - Weighted average price | $ / shares | $ 7.13 |
Granted | $ / shares | 5.47 |
Vested and outstanding | $ / shares | 5.90 |
Vested and issued | $ / shares | 8.10 |
Ending balance - Weighted average price | $ / shares | $ 5.79 |
Long-term Incentive Plan (Sch37
Long-term Incentive Plan (Schedule of compensation expense related to stock awards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
RSUs Redeemable in Stocks | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 86 | $ 77 | $ 534 | $ 528 |
RSUs Redeemable in Cash | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 303 | (32) | 604 | (399) |
RSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 389 | $ 45 | $ 1,138 | $ 129 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Taxes [Abstract] | ||||
Income tax provision (benefit) | $ 77 | $ (188) | $ 1,361 | $ (5,601) |
Effective Income Tax Rate, Percent | 137.50% | 56.30% |
Pension and Other Retirement 39
Pension and Other Retirement Plans (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)employee | Sep. 30, 2015USD ($) | |
Defined Benefit Plan Disclosure | ||||
Number of employee participants | employee | 2,300 | |||
Defined Contribution Plans | ||||
Maximum pretax contribution per employee | 100.00% | |||
Defined contribution plan, employer matching contribution, percent | 1.50% | |||
Expense recognized | $ 248 | $ 239 | $ 749 | $ 765 |
Pension Plan | ||||
Defined Benefit Plan, Estimated Future Employer Contributions | ||||
Estimated future employer contributions in 2016 | $ 0 |
Pension and Other Retirement 40
Pension and Other Retirement Plans (Schedule of net periodic pension benefit expense) (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure | ||||
Interest cost | $ 2,525 | $ 3,540 | $ 7,574 | $ 10,620 |
Expected return on plans' assets | (3,396) | (5,008) | (10,189) | (15,024) |
Amortization of actuarial loss | 11 | 313 | 42 | 938 |
Net periodic pension benefit | $ (860) | $ (1,155) | $ (2,573) | $ (3,466) |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 08, 2016 | |
Shareholders' Equity [Abstract] | ||
Dividends Payable, Date Declared | Sep. 8, 2016 | |
Dividends Payable, Amount Per Share | $ 0.08 | |
Dividends Payable, Date of Record | Nov. 10, 2016 | |
Dividends Payable, Date to be Paid | Dec. 2, 2016 | |
Dividends Payable | $ 1,763 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ (38,474) | $ (56,742) | $ (38,442) | $ (57,367) |
Amortization | (17) | 313 | (49) | 938 |
Balance, end of period | (38,491) | (56,429) | (38,491) | (56,429) |
Pension Plan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (38,867) | (57,028) | (38,898) | (57,654) |
Amortization | 11 | 314 | 42 | 940 |
Balance, end of period | (38,856) | (56,714) | (38,856) | (56,714) |
Other Postretirement Benefit Plan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 393 | 286 | 456 | 287 |
Amortization | (28) | (1) | (91) | (2) |
Balance, end of period | $ 365 | $ 285 | $ 365 | $ 285 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 504,648 | 699,780 | 504,648 | 699,780 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of earnings per share reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to A. H. Belo Corporation | $ (497) | $ (3,956) | $ (436) | $ (4,185) |
Less: Loss from discontinued operations | (52) | (62) | ||
Less: Dividends to participating securities | 29 | 26 | 83 | 88 |
Net loss available to common shareholders from continuing operations | $ (526) | $ (3,930) | $ (519) | $ (4,211) |
Shares (Denominator) | ||||
Weighted average common shares outstanding (basic and diluted) | 21,676,260 | 21,651,670 | 21,601,828 | 21,721,875 |
Loss Per Share from Continuing Operations | ||||
Basic and diluted | $ (0.02) | $ (0.18) | $ (0.02) | $ (0.19) |
Contingencies (Details)
Contingencies (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Pro-Rata Distributions [Line Items] | |
Possible losses from legal dispute, minimum | $ 0 |
Possible losses from legal dispute, maximum | 1,500 |
Distributions to non-controlling interests | $ 335 |
Fiscal year 2015 | |
Pro-Rata Distributions [Line Items] | |
Pro-rata distributions, percentage of free-cash-flow | 100.00% |
Fiscal year 2016 | |
Pro-Rata Distributions [Line Items] | |
Pro-rata distributions, percentage of free-cash-flow | 50.00% |
DMV | |
Pro-Rata Distributions [Line Items] | |
Distributions to non-controlling interests | $ 264 |
Redeemable Noncontrolling Int46
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest - redeemable | $ 1,335 | $ 1,421 |
Redeemable between 2nd and 3rd anniversaries | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners (percent) | 25.00% | |
Redeemable between 4th and 5th anniversaries | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners (percent) | 50.00% | |
DMV | Distributions Related To Earnings [Member] | ||
Noncontrolling Interest [Line Items] | ||
Change in redeemable non-controlling interest | $ 13 | |
DMV | Distributions Related To 2015 Free Cash Flow [Member] | ||
Noncontrolling Interest [Line Items] | ||
Change in redeemable non-controlling interest | $ (99) |