Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Entity Registrant Name | A. H. Belo Corp | |
Entity Central Index Key | 1,413,898 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Series A [Member] | ||
Entity Common Stock, Shares Outstanding | 19,280,601 | |
Series B [Member] | ||
Entity Common Stock, Shares Outstanding | 2,472,565 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Operating Revenue: | ||||
Advertising and marketing services | $ 36,022 | $ 38,040 | $ 71,226 | $ 73,277 |
Circulation | 19,088 | 19,821 | 38,254 | 40,173 |
Printing, distribution and other | 7,979 | 8,765 | 14,510 | 15,659 |
Total net operating revenue | 63,089 | 66,626 | 123,990 | 129,109 |
Operating Costs and Expense: | ||||
Employee compensation and benefits | 24,853 | 24,774 | 52,728 | 51,791 |
Other production, distribution and operating costs | 29,736 | 29,898 | 58,062 | 58,229 |
Newsprint, ink and other supplies | 5,993 | 6,461 | 11,894 | 12,519 |
Depreciation | 2,727 | 2,605 | 5,233 | 5,237 |
Amortization | 199 | 229 | 399 | 455 |
Goodwill impairment | 228 | |||
Total operating costs and expense | 63,508 | 63,967 | 128,544 | 128,231 |
Operating income (loss) | (419) | 2,659 | (4,554) | 878 |
Other income (expense), net | (93) | 408 | (430) | 487 |
Income (Loss) from Continuing Operations Before Income Taxes | (512) | 3,067 | (4,984) | 1,365 |
Income tax provision | 293 | 2,393 | 251 | 1,284 |
Net Income (Loss) | (805) | 674 | (5,235) | 81 |
Net income (loss) attributable to noncontrolling interests | (19) | 20 | ||
Net Income (Loss) Attributable to A. H. Belo Corporation | $ (805) | $ 693 | $ (5,235) | $ 61 |
Per Share Basis | ||||
Net income (loss) attributable to A. H. Belo Corporation, Basic and diluted | $ (0.04) | $ 0.03 | $ (0.24) | $ 0 |
Number of common shares used in the per share calculation: | ||||
Basic | 21,743,390 | 21,614,260 | 21,717,032 | 21,564,200 |
Diluted | 21,743,390 | 21,762,559 | 21,717,032 | 21,724,876 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Comprehensive Income (Loss) (unaudited) [Abstract] | ||||
Net Income (Loss) | $ (805) | $ 674 | $ (5,235) | $ 81 |
Other Comprehensive Income (Loss): | ||||
Amortization of actuarial (gains) losses, net of tax | 56 | (24) | 113 | (32) |
Total other comprehensive income (loss) | 56 | (24) | 113 | (32) |
Comprehensive Income (Loss) | (749) | 650 | (5,122) | 49 |
Comprehensive income (loss) attributable to noncontrolling interests | (19) | 20 | ||
Total Comprehensive Income (Loss) Attributable to A. H. Belo Corporation | $ (749) | $ 669 | $ (5,122) | $ 29 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 64,856 | $ 80,071 |
Accounts receivable (net of allowance of $942 and $1,115 at June 30, 2017 and December 31, 2016, respectively) | 23,960 | 29,114 |
Inventories | 3,071 | 3,386 |
Prepaids and other current assets | 10,789 | 9,553 |
Assets held for sale | 8,740 | |
Total current assets | 111,416 | 122,124 |
Property, plant and equipment, at cost | 441,024 | 445,874 |
Less accumulated depreciation | (407,493) | (402,115) |
Property, plant and equipment, net | 33,531 | 43,759 |
Intangible assets, net | 4,473 | 4,872 |
Goodwill | 13,973 | 14,201 |
Other assets | 6,888 | 7,775 |
Total assets | 170,281 | 192,731 |
Current liabilities: | ||
Accounts payable | 8,411 | 9,036 |
Accrued compensation and benefits | 8,479 | 8,657 |
Other accrued expense | 4,440 | 6,318 |
Advance subscription payments | 12,832 | 13,243 |
Total current liabilities | 34,162 | 37,254 |
Long-term pension liabilities | 52,989 | 54,843 |
Other post-employment benefits | 2,321 | 2,329 |
Other liabilities | 6,456 | 6,483 |
Total liabilities | 95,928 | 100,909 |
Noncontrolling interest - redeemable | 2,670 | |
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 June 30, 2017 and December 31, 2016 | (11,233) | (11,233) |
Additional paid-in capital | 494,671 | 499,552 |
Accumulated other comprehensive loss | (39,195) | (39,308) |
Accumulated deficit | (370,122) | (361,324) |
Total shareholders’ equity attributable to A. H. Belo Corporation | 74,353 | 87,918 |
Noncontrolling interests | 1,234 | |
Total shareholders’ equity | 74,353 | 89,152 |
Total liabilities and shareholders’ equity | 170,281 | 192,731 |
Series A [Member] | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | 208 | 207 |
Series B [Member] | ||
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts receivable | $ 942 | $ 1,115 |
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 [Member] | ||
Common stock, shares, issued | 20,697,482 | 20,620,461 |
Series B [Member] | ||
Common stock, shares, issued | 2,472,565 | 2,472,680 |
Treasury Stock [Member] | Series A [Member] | ||
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 [Member] | Common Stock [Member]Series B [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member]Series A [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Noncontrolling Interests [Member] | Total |
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) | 61 | 7 | 68 | |||||||
Other comprehensive income (loss) | (32) | (32) | ||||||||
Distributions to noncontrolling interests | (165) | (165) | ||||||||
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 | |||||||||
Issuance of shares for stock option exercises | 1 | 155 | 156 | |||||||
Share-based compensation | 448 | 448 | ||||||||
Conversion of Series B to Series A, shares | 649 | (649) | ||||||||
Dividends | (5,265) | (5,265) | ||||||||
Ending Balance at Jun. 30, 2016 | 231 | 500,655 | (11,233) | (38,474) | (338,426) | 1,307 | 114,060 | |||
Ending Balance, Shares Common Stock at Jun. 30, 2016 | 20,620,355 | 2,472,786 | ||||||||
Ending Balance, Shares Treasury Stock at Jun. 30, 2016 | (1,416,881) | |||||||||
Beginning Balance at Dec. 31, 2016 | 231 | 499,552 | (11,233) | (39,308) | (361,324) | 1,234 | 89,152 | |||
Beginning Balance, Shares Common Stock at Dec. 31, 2016 | 20,620,461 | 2,472,680 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2016 | (1,416,881) | |||||||||
Net income (loss) | (5,235) | (5,235) | ||||||||
Other comprehensive income (loss) | 113 | 113 | ||||||||
Distributions to noncontrolling interests | (118) | (118) | ||||||||
Issuance of shares for restricted stock units, shares | 76,906 | |||||||||
Issuance of shares for restricted stock units | 1 | (1) | ||||||||
Share-based compensation | 626 | 626 | ||||||||
Purchases of noncontrolling interests | (5,506) | $ (1,116) | (6,622) | |||||||
Conversion of Series B to Series A, shares | 115 | (115) | ||||||||
Dividends | (3,563) | (3,563) | ||||||||
Ending Balance at Jun. 30, 2017 | $ 232 | $ 494,671 | $ (11,233) | $ (39,195) | $ (370,122) | $ 74,353 | ||||
Ending Balance, Shares Common Stock at Jun. 30, 2017 | 20,697,482 | 2,472,565 | ||||||||
Ending Balance, Shares Treasury Stock at Jun. 30, 2017 | (1,416,881) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Operating Activities | ||
Net income (loss) | $ (5,235) | $ 81 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,632 | 5,692 |
Net periodic pension and other post-employment benefit | (1,717) | (1,749) |
Share-based compensation | 626 | 448 |
Deferred income taxes | 9 | |
Loss on investment related activity | 250 | |
Gain on disposal of fixed assets | (325) | |
Goodwill impairment | 228 | |
Changes in working capital and other operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 5,154 | 6,041 |
Inventories, prepaids and other current assets | (921) | (2,006) |
Other assets | 637 | 443 |
Accounts payable | (625) | (748) |
Compensation and benefit obligations | (175) | 847 |
Other accrued expenses | (890) | (518) |
Advanced subscription payments | (411) | 101 |
Other post-employment benefits | (31) | (93) |
Net cash provided by operating activities | 2,522 | 8,223 |
Investing Activities | ||
Purchases of assets | (4,789) | (3,174) |
Net cash used in investing activities | (4,789) | (3,174) |
Financing Activities | ||
Purchases of noncontrolling interests | (9,231) | |
Dividends paid | (3,538) | (3,503) |
Proceeds from other financing activities | 2,566 | |
Distributions to noncontrolling interests | (179) | (264) |
Proceeds from exercise of stock options | 156 | |
Net cash used for financing activities | (12,948) | (1,045) |
Net increase (decrease) in cash and cash equivalents | (15,215) | 4,004 |
Cash and cash equivalents, beginning of period | 80,071 | 78,380 |
Cash and cash equivalents, end of period | 64,856 | 82,384 |
Supplemental Disclosures | ||
Income taxes paid, net (refund) | 1,163 | $ 1,289 |
Noncash investing and financing activities: | ||
Investments in property, plant and equipment payable | 160 | |
Dividends payable | $ 1,788 |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2017 | |
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 extending the Company’s media platform, A. H. Belo delivers 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 DMV Digital Holdings Company (“DMV Holdings”) and Your Speakeasy, LLC (“Speakeasy”), and provides event activation, 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. 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, 2016. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context indicates 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. New Accounting Pronouncements. The Financial Accounting Standards Board (“FASB”) 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 Accounting Standards Update (“ ASU ”) 2014-09 – Revenue from Contracts with Customers (Topic 606). This guidance prescribes a single comprehensive model for entities to use in the accounting of revenue arising from contracts with customers. The core principle contemplated by this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. Since May 2014, the FASB issued clarifying updates to the new standard specifically to address certain core principles including the identification of performance obligations, licensing guidance, the assessment of the collectability criterion, the presentation of taxes collected from customers, noncash considerations, contract modifications, and completed contracts at transition. The new guidance will supersede virtually all existing revenue guidance under GAAP and is effective for fiscal years beginning after December 31, 2017. There are two transition options available to entities, the full retrospective approach, in which the Company would restate prior periods, or the modified retrospective approach. The Company currently anticipates adopting ASU 2014-09 using the modified retrospective approach as of January 1, 2018. This approach consists of recognizing the cumulative effect of initially applying the standard as an adjustment to opening retained earnings. The Company coordinated a team of key stakeholders to develop a bottom-up approach to analyze the impact of the new standard on its portfolio of contracts. Based upon the Company’s initial evaluation, some of the issues currently being reviewed include the impact of gross versus net, level of disaggregation of revenue disclosed in the Company’s financial statements and evaluating the standalone selling price related to certain performance obligations. The Company is currently quantifying the impact that the updated guidance will have on the Company’s financial statements and related disclosures. 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 and will be applied retrospectively. 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 January 2017, the FASB issued ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The guidance will be effective for fiscal years beginning after December 15, 2019, 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 February 2017, the FASB issued ASU 2017-06 – Plan Accounting – Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962) and Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. This update clarifies the presentation requirements for a plan’s interest in a master trust and requires more detailed disclosures of the plan’s interest in the master trust. 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 2017, the FASB issued ASU 2017-07 – Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update clarifies the presentation and classification of the components of net periodic benefit costs in the Consolidated Statement of Operations. The guidance will be effective for fiscal years beginning after December 15, 2017, 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 | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 2 : Segment Reporting In the first quarter of 2017, in conjunction with the promotion of Grant Moise from Senior Vice President Business Development / Niche Products to General Manager of The Dallas Morning News and Executive Vice President of A. H. Belo, the Company reorganized its two reportable segments based on changes in reporting structure and the go-to-market for the Company’s service and product offerings. The two reportable segments are Publishing and Marketing Services. The Publishing segment includes the Company’s core print and digital operations associated with its newspapers, niche publications and related websites. These operations generate revenue from sales of advertising within its newspaper and digital platforms, subscription and retail sales of its newspapers, sponsorship advertising for events, commercial printing and distribution services, primarily related to national and regional newspapers, and preprint advertisers. Businesses within the Publishing segment leverage the production facilities, subscriber and advertiser base, and digital news platforms to provide additional contribution margin. The Company evaluates Publishing operations based on operating profit and cash flows from operating activities. The Marketing Services segment includes the operations of DMV Holdings, Speakeasy and digital advertising through Connect (programmatic advertising). The Company operates the portfolio of assets within its Marketing Services segment as separate businesses that sell digital marketing and advertising through different channels, including programmatic advertising and content marketing within the social media environment. Based on the organization of the Company’s structure and organizational chart, we believe the Company’s chief operating decision makers (the “CODMs”) are its Chief Executive Officer, Jim Moroney, and Grant Moise, the General Manager of The Dallas Morning News and Executive Vice President of A. H Belo Corporation. The CODMs allocate resources and capital to the Publishing and Marketing Services segments at the segment level. The following tables show summarized financial information for the Company’s reportable segments. Due to the first quarter 2017 reorganization of the Company’s two reportable segments, the prior year periods fi nancial information by segment were recast for comparative purposes. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Recast) (Recast) Revenue Publishing $ 54,822 $ 60,575 $ 108,313 $ 117,080 Marketing Services 8,267 6,051 15,677 12,029 Total $ 63,089 $ 66,626 $ 123,990 $ 129,109 Operating Income (Loss) Publishing $ (1,208) $ 1,678 $ (5,933) $ (802) Marketing Services 789 981 1,379 1,680 Total $ (419) $ 2,659 $ (4,554) $ 878 Noncash Expenses Publishing Depreciation $ 2,706 $ 2,587 $ 5,197 $ 5,198 Amortization — 26 — 52 Goodwill impairment — — 228 — Total $ 2,706 $ 2,613 $ 5,425 $ 5,250 Marketing Services Depreciation $ 21 $ 18 $ 36 $ 39 Amortization 199 203 399 403 Total $ 220 $ 221 $ 435 $ 442 June 30, December 31, 2017 2016 (Recast) Total Assets Publishing $ 147,495 $ 170,820 Marketing Services 22,786 21,911 Total $ 170,281 $ 192,731 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | Note 3: Acquisitions On February 16, 2017 , the Company acquired the remaining 30 percent voting interest in Speakeasy for a cash purchase price of $2,111 , and on March 2, 2017 , the Company acquired the remaining 20 percent voting interest in DMV Holdings for a cash purchase price of $7,120 . The initial purchase of 80 percent voting interest in DMV Holdings occurred in January 2015 for a cash purchase price of $14,110 . DMV Digital Holdings Company holds all outstanding ownership interests of three Dallas-based businesses, Distribion, Inc., Vertical Nerve, Inc. and CDFX , LLC. These businesses specialize in local marketing automation, search engine marketing, and direct mail and promotional products, respectively. These acquisitions complement 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. Pro-rata distributions. In connection with the 2015 acquisition of 80 percent voting interest in DMV Holdings, the shareholder agreement provide d for a pro-rata distribution of 50 percent and 100 percent of DMV Holdings’ free cash flow for fiscal years 201 6 and 201 5 , respectively . Free cash flow is defined as earnings before interest, taxes, depreciation and amortization less capital expenditures, debt amortization and interest expense, as applicable. In the six months ended June 30 , 2017 and 2016, the Company recorded pro-rata distributions to noncontrolling interests of $163 and $264 , respectively, in connection with this agreement based on 2016 and 2015 free cash flow as defined, respectively. Redeemable noncontrolling interest . Also, i n connection with the 2015 acquisition of 80 percent voting interest in DMV Holdings, the Company entered into a shareholder agreement which provide d for a put option to a noncontrolling shareholder. The put option provide d 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. Redeemable noncontrolling interest was recorded at fair value on the acquisition date and the carrying value was adjusted each period for its share of the earnings related to DMV Holdings and for any distributions . T he carrying value was also adjusted for the change in fair value, which was based on the estimated redemption value as of December 31, 2016 . Adjustments were recorded to retained earnings or additional paid in capital, as applicable, and have no effect to earnings of the Company. During the six months ended June 30 , 2017 and 2016 , redeemable noncontrolling interest was decreased by $61 and $99 , respectively, for distributions related to the 2016 and 2015 free cash flow , respectively, as required under the shareholder agreement . The exercisability of the noncontrolling interest put option was outside the control of the Company. As such, the redeemable noncontrolling interest of $2,670 was reported in the mezzanine equity section of the Consolidated Balance Sheet as of December 31, 2016 . As a result of the purchase of the remaining 20 percent voting interest in DMV Holdings, the shareholder agreement was terminated and the redeemable noncontrolling interest was eliminated as of March 31, 2017. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 4 : Goodwill and Intangible Assets The following table shows goodwill and other intangible assets by reportable segment as of June 30, 2017 and December 31, 2016. Due to the first quarter 2017 reorganization of the Company’s two reportable segments, the prior year period financial information by segment w as recast for comparative purposes. June 30, December 31, 2017 2016 (Recast) Goodwill Publishing $ — $ 228 Marketing Services 13,973 13,973 Total $ 13,973 $ 14,201 Intangible Assets Publishing Cost $ — $ 240 Accumulated Amortization — (240) Net Carrying Value $ — $ — Marketing Services Cost $ 6,470 $ 6,470 Accumulated Amortization (1,997) (1,598) Net Carrying Value $ 4,473 $ 4,872 In the six months ended June 30, 2017 , the Publishing segment’s fully amortized intangible assets of $240 of customer relationships were written-off and had no remaining useful life . Intangible assets consist of $4,950 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 $199 and $399 for the three and six months ended June 30, 2017 , respectively , and $229 and $455 for the three and six months ended June 30, 2016, respectively. Certain goodwill and intangible assets previously reported in the Marketing Services segment were moved to the Publishing segment as a result of the first quarter 2017 segment reorganization. The Publishing reporting unit’s goodwill was determined to be fully impaired as of December 31, 2016. Therefore, the Company recorded a n oncash goodwill impairment charge of $228 in the first quarter of 2017. The Company tested goodwill for impairment as of December 31, 2016 at the reporting unit level using a discounted cash flow methodology with a peer-based, risk-adjusted weighted average cost of capital, combined with a market approach using peer-based earnings multiples. The Company believes the use of a discounted cash flow approach, combined with the market approach, is the most reliable indicator of the estimated fair values of the businesses. Because the Company’s annual test indicated that the Publishing reporting unit’s carrying value exceeded its estimated fair value, a second phase of the goodwill impairment test (“Step 2”) was performed specific to the Publishing reporting unit. Under Step 2, the fair value of the Publishing reporting unit’s assets and liabilities were estimated, including intangible assets, for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of goodwill was then compared to the recorded goodwill to determine the amount of the impairment. Upon completion of the annual test, the Publishing reporting unit’s goodwill was determined to be impaired, and the Company recorded a noncash goodwill impairment charge of $22,682 in the fourth quarter of 2016, fully impairing the Publishing reporting unit’s goodwill. |
Long-term Incentive Plan
Long-term Incentive Plan | 6 Months Ended |
Jun. 30, 2017 | |
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 and Series B 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. Due to the expiration of the Plan on February 8, 2018, A. H. Belo implemented, and shareholders approved, a new long-term incentive plan (the “2017 Plan”) under which 8,000,000 shares of the Company’s Series A and Series B common stock are authorized for equity-based awards. Like its predecessor plan, awards under the 2017 Plan 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 , RSUs, performance shares, performance units or stock appreciation rights. No grants have yet been made under the 2017 Plan. 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 June 30, 2017 . Number of Options Weighted Average Exercise Price Outstanding at December 31, 2016 114,979 $ 8.21 Canceled (14,635) 20.16 Outstanding at June 30, 2017 100,344 6.46 As of June 30, 2017, the aggregate intrinsic value of outstanding options was $10 and the weighted average remaining contractual life of the Company’s stock options was 1.1 years . The aggregate intrinsic valu e of options exercised in the three and six months ended June 30, 2016 , was $183 and $300 , respectively . Restricted Stock Units. T he Company’s RSUs have service and/or performance conditions 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 up to three years. As of June 30, 2017 , the liability for the portion of the award s to be redeemed in cash was $771 . The table below sets forth a summary of RSU activity under the Plan. 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, 2016 121,131 $ 5.65 Granted 284,868 6.11 Vested and outstanding (159,212) 5.71 Vested and issued (22,734) 13,634 9,100 $ 57 6.90 Non-vested at June 30, 2017 224,053 6.07 For the six months ended June 30, 2017 , the Company issued 63,272 shares of Series A common stock and 42,189 shares were redeemed in cash for RSUs that were previously vested as of December 31, 201 6 . In addition, there were 290,825 and 237,074 RSUs that were vested and outstanding as of June 30, 2017 and December 31, 201 6 , 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 June 30, 2017 , unrecognized compensation expense related to non-vested RSUs totaled $1,018 , which is expected t o be recognized over a weighted average period of approximately 1.0 year. 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 June 30, 2017 $ 185 $ 38 $ 223 2016 76 69 145 Six Months Ended June 30, 2017 $ 626 $ 317 $ 943 2016 448 301 749 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
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 provision from continuing operations of $293 and $2,393 for the three months ended June 30, 2017 and 2016 , respectively , and $251 and $1,284 for the six months ended June 30, 2017 and 2016, respectively . Effective income tax rates from continuing operations were (5.0) percent and 94.1 percent for the six months ended June 30, 2017 and 2016 , respectively. The effective income tax rate for the six months ended June 30, 2017, was due to the federal tax benefit fully reserved with a valuation allowance and the effect of the Texas margin tax. The 2017 effective income tax rate was lower when compared to the prior year period due to taxable income generated from operations and the disposition of certain fixed assets in 2016. |
Pension and Other Retirement Pl
Pension and Other Retirement Plans | 6 Months Ended |
Jun. 30, 2017 | |
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 (the “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 201 7 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 expected 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest cost $ 2,386 $ 2,524 $ 4,772 $ 5,049 Expected return on plans' assets (3,314) (3,397) (6,627) (6,793) Amortization of actuarial loss 74 20 149 31 Net periodic pension benefit $ (854) $ (853) $ (1,706) $ (1,713) Defined Contribution Plans. The A. H. Belo Savings Plan (the “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 Savings P lan 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 June 30, 2017 and 2016 , the Company recorded expense of $231 and $222 , respectively, and during the six months ended June 30, 2017 and 2016, the Company recorded expense of $495 and $501 , respectively , for matching contributions to the Savings P lan . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 8 : Shareholders’ Equity Dividends. On May 10, 2017 , the Company’s board of directors declared an $0.08 per share dividend to shareholders of record and holders of RSUs as of the close of business on August 11, 2017 , which is payable on September 1, 2017 . During the three months ended June 30 , 2017, the Company recorded $1,78 8 to accrue for dividends declared but not yet paid. Accumulated other comprehensive loss. Accumulated other comprehensive loss consists of actuarial gains and losses attributable to the A. H. Belo Pension Plans, gains and losses resulting from Pension Plans’ amendments and other actuarial experience attributable to other post-employment benefit (“OPEB”) 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 the Pension Plans’ participants. Gains and losses associated with the Company’s OPEB plans are amortized over the average remaining service period of active OPEB plans’ participants. Net deferred tax assets associated with the accumulated other comprehensive loss are fully reserved. The table 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 June 30, 2017 2016 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (39,251) $ (39,662) $ 411 $ (38,450) $ (38,887) $ 437 Amortization 56 74 (18) (24) 20 (44) Balance, end of period $ (39,195) $ (39,588) $ 393 $ (38,474) $ (38,867) $ 393 Six Months Ended June 30, 2017 2016 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (39,308) $ (39,737) $ 429 $ (38,442) $ (38,898) $ 456 Amortization 113 149 (36) (32) 31 (63) Balance, end of period $ (39,195) $ (39,588) $ 393 $ (38,474) $ (38,867) $ 393 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 : Earnings Per Share The table below sets forth the reconciliation s for net income ( 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Earnings (Numerator) Net income (loss) attributable to A. H. Belo Corporation $ (805) $ 693 $ (5,235) $ 61 Less: Dividends to participating securities 43 28 82 54 Net income (loss) available to common shareholders from continuing operations $ (848) $ 665 $ (5,317) $ 7 Shares (Denominator) Weighted average common shares outstanding (basic) 21,743,390 21,614,260 21,717,032 21,564,200 Effect of dilutive securities — 148,299 — 160,676 Adjusted weighted average shares outstanding (diluted) 21,743,390 21,762,559 21,717,032 21,724,876 Earnings Per Share from Continuing Operations Basic and diluted $ (0.04) $ 0.03 $ (0.24) $ 0.00 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 615,222 and 499,726 options and RSUs outstanding as of June 30, 2017 and 2016 , respectively, were excluded from the calculation because the effect was anti-dilutive. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
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 was previously 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. In the second quarter of 2017, the Company and the customer entered into an amended printing services agreement extending the term of the agreement for an additional seven years, established pricing terms for the extended term and resolved the disputed invoices with no losses incurred by the Company. 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. |
Sales of Assets
Sales of Assets | 6 Months Ended |
Jun. 30, 2017 | |
Sales of Assets [Abstract] | |
Sales of Assets | Note 1 1 : 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 assets held for sale. In the second quarter of 2017, the Company announced that three parcels of land located in downtown Dallas, Texas are available for sale. These assets, with a total carrying value of $8,740 , are reported as assets held for sale as of June 30, 2017. |
Basis of Presentation and Rec19
Basis of Presentation and Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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. 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, 2016. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context indicates 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. |
New Accounting Pronouncements | New Accounting Pronouncements. The Financial Accounting Standards Board (“FASB”) 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 Accounting Standards Update (“ ASU ”) 2014-09 – Revenue from Contracts with Customers (Topic 606). This guidance prescribes a single comprehensive model for entities to use in the accounting of revenue arising from contracts with customers. The core principle contemplated by this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. Since May 2014, the FASB issued clarifying updates to the new standard specifically to address certain core principles including the identification of performance obligations, licensing guidance, the assessment of the collectability criterion, the presentation of taxes collected from customers, noncash considerations, contract modifications, and completed contracts at transition. The new guidance will supersede virtually all existing revenue guidance under GAAP and is effective for fiscal years beginning after December 31, 2017. There are two transition options available to entities, the full retrospective approach, in which the Company would restate prior periods, or the modified retrospective approach. The Company currently anticipates adopting ASU 2014-09 using the modified retrospective approach as of January 1, 2018. This approach consists of recognizing the cumulative effect of initially applying the standard as an adjustment to opening retained earnings. The Company coordinated a team of key stakeholders to develop a bottom-up approach to analyze the impact of the new standard on its portfolio of contracts. Based upon the Company’s initial evaluation, some of the issues currently being reviewed include the impact of gross versus net, level of disaggregation of revenue disclosed in the Company’s financial statements and evaluating the standalone selling price related to certain performance obligations. The Company is currently quantifying the impact that the updated guidance will have on the Company’s financial statements and related disclosures. 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 and will be applied retrospectively. 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 January 2017, the FASB issued ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The guidance will be effective for fiscal years beginning after December 15, 2019, 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 February 2017, the FASB issued ASU 2017-06 – Plan Accounting – Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962) and Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. This update clarifies the presentation requirements for a plan’s interest in a master trust and requires more detailed disclosures of the plan’s interest in the master trust. 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 2017, the FASB issued ASU 2017-07 – Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update clarifies the presentation and classification of the components of net periodic benefit costs in the Consolidated Statement of Operations. The guidance will be effective for fiscal years beginning after December 15, 2017, 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) | 6 Months Ended |
Jun. 30, 2017 | |
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) | 6 Months Ended |
Jun. 30, 2017 | |
Pension and Other Retirement Plans [Abstract] | |
Pension, Policy | The Company’s estimates of net periodic pension expense or benefit are based on the expected 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) | 6 Months Ended |
Jun. 30, 2017 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity, Policy | Accumulated other comprehensive loss. Accumulated other comprehensive loss consists of actuarial gains and losses attributable to the A. H. Belo Pension Plans, gains and losses resulting from Pension Plans’ amendments and other actuarial experience attributable to other post-employment benefit (“OPEB”) 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 the Pension Plans’ participants. Gains and losses associated with the Company’s OPEB plans are amortized over the average remaining service period of active OPEB plans’ participants. Net deferred tax assets associated with the accumulated other comprehensive loss are fully reserved. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Recast) (Recast) Revenue Publishing $ 54,822 $ 60,575 $ 108,313 $ 117,080 Marketing Services 8,267 6,051 15,677 12,029 Total $ 63,089 $ 66,626 $ 123,990 $ 129,109 Operating Income (Loss) Publishing $ (1,208) $ 1,678 $ (5,933) $ (802) Marketing Services 789 981 1,379 1,680 Total $ (419) $ 2,659 $ (4,554) $ 878 Noncash Expenses Publishing Depreciation $ 2,706 $ 2,587 $ 5,197 $ 5,198 Amortization — 26 — 52 Goodwill impairment — — 228 — Total $ 2,706 $ 2,613 $ 5,425 $ 5,250 Marketing Services Depreciation $ 21 $ 18 $ 36 $ 39 Amortization 199 203 399 403 Total $ 220 $ 221 $ 435 $ 442 June 30, December 31, 2017 2016 (Recast) Total Assets Publishing $ 147,495 $ 170,820 Marketing Services 22,786 21,911 Total $ 170,281 $ 192,731 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of identifiable intangible assets | June 30, December 31, 2017 2016 (Recast) Goodwill Publishing $ — $ 228 Marketing Services 13,973 13,973 Total $ 13,973 $ 14,201 Intangible Assets Publishing Cost $ — $ 240 Accumulated Amortization — (240) Net Carrying Value $ — $ — Marketing Services Cost $ 6,470 $ 6,470 Accumulated Amortization (1,997) (1,598) Net Carrying Value $ 4,473 $ 4,872 |
Long-term Incentive Plan (Table
Long-term Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Long-term Incentive Plan [Abstract] | |
Schedule of stock options outstanding activity | Number of Options Weighted Average Exercise Price Outstanding at December 31, 2016 114,979 $ 8.21 Canceled (14,635) 20.16 Outstanding at June 30, 2017 100,344 6.46 |
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, 2016 121,131 $ 5.65 Granted 284,868 6.11 Vested and outstanding (159,212) 5.71 Vested and issued (22,734) 13,634 9,100 $ 57 6.90 Non-vested at June 30, 2017 224,053 6.07 |
Schedule of compensation expense related to stock awards | RSUs Redeemable in Stock RSUs Redeemable in Cash Total RSU Awards Expense Three Months Ended June 30, 2017 $ 185 $ 38 $ 223 2016 76 69 145 Six Months Ended June 30, 2017 $ 626 $ 317 $ 943 2016 448 301 749 |
Pension and Other Retirement 26
Pension and Other Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Pension and Other Retirement Plans [Abstract] | |
Schedule of Net Periodic Pension Expense | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest cost $ 2,386 $ 2,524 $ 4,772 $ 5,049 Expected return on plans' assets (3,314) (3,397) (6,627) (6,793) Amortization of actuarial loss 74 20 149 31 Net periodic pension benefit $ (854) $ (853) $ (1,706) $ (1,713) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Shareholders' Equity [Abstract] | |
Changes in accumulated other comprehensive loss | Three Months Ended June 30, 2017 2016 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (39,251) $ (39,662) $ 411 $ (38,450) $ (38,887) $ 437 Amortization 56 74 (18) (24) 20 (44) Balance, end of period $ (39,195) $ (39,588) $ 393 $ (38,474) $ (38,867) $ 393 Six Months Ended June 30, 2017 2016 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (39,308) $ (39,737) $ 429 $ (38,442) $ (38,898) $ 456 Amortization 113 149 (36) (32) 31 (63) Balance, end of period $ (39,195) $ (39,588) $ 393 $ (38,474) $ (38,867) $ 393 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share reconciliation | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Earnings (Numerator) Net income (loss) attributable to A. H. Belo Corporation $ (805) $ 693 $ (5,235) $ 61 Less: Dividends to participating securities 43 28 82 54 Net income (loss) available to common shareholders from continuing operations $ (848) $ 665 $ (5,317) $ 7 Shares (Denominator) Weighted average common shares outstanding (basic) 21,743,390 21,614,260 21,717,032 21,564,200 Effect of dilutive securities — 148,299 — 160,676 Adjusted weighted average shares outstanding (diluted) 21,743,390 21,762,559 21,717,032 21,724,876 Earnings Per Share from Continuing Operations Basic and diluted $ (0.04) $ 0.03 $ (0.24) $ 0.00 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Reportable S
Segment Reporting (Reportable Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 63,089 | $ 66,626 | $ 123,990 | $ 129,109 | ||
Operating Income (Loss) | (419) | 2,659 | (4,554) | 878 | ||
Depreciation | 2,727 | 2,605 | 5,233 | 5,237 | ||
Amortization | 199 | 229 | 399 | 455 | ||
Goodwill impairment | $ 228 | $ 22,682 | 228 | |||
Total Assets | 170,281 | 192,731 | 170,281 | |||
Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 63,089 | 66,626 | 123,990 | 129,109 | ||
Operating Income (Loss) | (419) | 2,659 | (4,554) | 878 | ||
Total Assets | 170,281 | 192,731 | 170,281 | |||
Operating Segments [Member] | Publishing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 54,822 | 60,575 | 108,313 | 117,080 | ||
Operating Income (Loss) | (1,208) | 1,678 | (5,933) | (802) | ||
Depreciation | 2,706 | 2,587 | 5,197 | 5,198 | ||
Amortization | 26 | 52 | ||||
Goodwill impairment | 228 | |||||
Total | 2,706 | 2,613 | 5,425 | 5,250 | ||
Total Assets | 147,495 | 170,820 | 147,495 | |||
Operating Segments [Member] | Marketing Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 8,267 | 6,051 | 15,677 | 12,029 | ||
Operating Income (Loss) | 789 | 981 | 1,379 | 1,680 | ||
Depreciation | 21 | 18 | 36 | 39 | ||
Amortization | 199 | 203 | 399 | 403 | ||
Total | 220 | $ 221 | 435 | $ 442 | ||
Total Assets | $ 22,786 | $ 21,911 | $ 22,786 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Jan. 02, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Distributions to non-controlling interests | $ 179 | $ 264 | ||
Noncontrolling interest - redeemable | $ 2,670 | |||
DMV [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | Jan. 2, 2015 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | |||
Business Acquisition, Consideration Transferred | $ 14,110 | |||
Fiscal Year 2016 [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro-rata distributions, percentage of free-cash-flow | 50.00% | |||
Fiscal Year 2015 [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro-rata distributions, percentage of free-cash-flow | 100.00% | |||
Redeemable Between 2nd And 3rd Anniversaries [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners (percent) | 25.00% | |||
Redeemable Between 4th And 5th Anniversaries [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners (percent) | 50.00% | |||
Distributions Related To Free Cash Flow [Member] | ||||
Business Acquisition [Line Items] | ||||
Change in redeemable non-controlling interest | $ (61) | (99) | ||
Purchase Of Remaining Percent [Member] | DMV [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | Mar. 2, 2017 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | |||
Business Acquisition, Consideration Transferred | $ 7,120 | |||
Purchase Of Remaining Percent [Member] | Speakeasy [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Effective Date of Acquisition | Feb. 16, 2017 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | |||
Business Acquisition, Consideration Transferred | $ 2,111 | |||
DMV [Member] | ||||
Business Acquisition [Line Items] | ||||
Distributions to non-controlling interests | $ 163 | $ 264 |
Goodwill and Intangible Asset32
Goodwill and Intangible Assets (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Amortization expense | $ 199 | $ 229 | $ 399 | $ 455 | ||
Goodwill impairment | $ 228 | $ 22,682 | 228 | |||
Publishing [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset amount amortized | 240 | 240 | ||||
Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Definite-lived intangibles | 4,950 | $ 4,950 | ||||
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 13,973 | $ 14,201 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Net Carrying Value | 4,473 | 4,872 |
Publishing [Member] | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Accumulated Amortization | (240) | |
Operating Segments [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 13,973 | 14,201 |
Operating Segments [Member] | Publishing [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 228 | |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Cost | 240 | |
Accumulated Amortization | (240) | |
Operating Segments [Member] | Marketing Services [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 13,973 | 13,973 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Cost | 6,470 | 6,470 |
Accumulated Amortization | (1,997) | (1,598) |
Net Carrying Value | $ 4,473 | $ 4,872 |
Long-term Incentive Plan (Narra
Long-term Incentive Plan (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Share-based compensation expense | ||||
Number of shares authorized | 8,000,000 | |||
Number of shares issued | 63,272 | |||
2017 Plan [Member] | ||||
Share-based compensation expense | ||||
Number of options granted | 0 | |||
Employee Stock Option [Member] | ||||
Share-based compensation expense | ||||
Options, exercises in period, intrinsic Value | $ 183 | $ 300 | ||
Options, outstanding, intrinsic value | $ 10 | |||
Weighted average remaining contractual life | 1 year 1 month 6 days | |||
Number of options granted | 0 | |||
RSUs [Member] | ||||
Share-based compensation expense | ||||
RSUs Vested and outstanding | 290,825 | 237,074 | ||
Number of shares previously vested redeemed in cash | 42,189 | |||
RSUs Redeemed in cash, liability | $ 771 | |||
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 | $ 1,018 | |||
Unrecognized compensation cost, weighted-average period | 1 year |
Long-term Incentive Plan (Sched
Long-term Incentive Plan (Schedule of stock options outstanding activity) (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Stock option activity rollforward | |
Number of Options, Outstanding, Beginning Balance | shares | 114,979 |
Number of Options Canceled | shares | (14,635) |
Number of Options, Outstanding, Ending Balance | shares | 100,344 |
Weighted average price per share | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ / shares | $ 8.21 |
Weighted Average Exercise Price, Canceled | $ / shares | 20.16 |
Weighted Average Exercise Price, Outstanding Ending Balance | $ / shares | $ 6.46 |
Long-term Incentive Plan (Sch36
Long-term Incentive Plan (Schedule of RSU activity) (Details) - RSUs [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
RSU non-vested rollforward | |
Number of RSUs, Outstanding, Beginning Balance | 121,131 |
Number of RSUs Granted | 284,868 |
Number of RSUs Vested and outstanding | (159,212) |
Number of RSUs Vested and issued | (22,734) |
Number of RSUs, Outstanding, Ending Balance | 224,053 |
Vested RSUs redeemed for stock, cash, and related payments | |
Issuance of Common Stock | 13,634 |
RSUs Redeemed in Cash | 9,100 |
Cash Payments at Closing Price of Stock | $ | $ 57 |
Weighted-Average Price on Date of Grant | |
Beginning balance - Weighted average price | $ / shares | $ 5.65 |
Granted | $ / shares | 6.11 |
Vested and outstanding | $ / shares | 5.71 |
Vested and issued | $ / shares | 6.90 |
Ending balance - Weighted average price | $ / shares | $ 6.07 |
Long-term Incentive Plan (Sch37
Long-term Incentive Plan (Schedule of compensation expense related to stock awards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
RSUs Redeemable in Stocks [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 185 | $ 76 | $ 626 | $ 448 |
RSUs Redeemable in Cash [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 38 | 69 | 317 | 301 |
RSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 223 | $ 145 | $ 943 | $ 749 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes [Abstract] | ||||
Income tax provision | $ 293 | $ 2,393 | $ 251 | $ 1,284 |
Effective Income Tax Rate, Percent | (5.00%) | 94.10% |
Pension and Other Retirement 39
Pension and Other Retirement Plans (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)employee | Jun. 30, 2016USD ($) | |
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 | $ 231 | $ 222 | $ 495 | $ 501 |
Pension Plan [Member] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions | ||||
Estimated future employer contributions in 2017 | $ 0 | $ 0 |
Pension and Other Retirement 40
Pension and Other Retirement Plans (Schedule of net periodic pension benefit expense) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure | ||||
Interest cost | $ 2,386 | $ 2,524 | $ 4,772 | $ 5,049 |
Expected return on plans' assets | (3,314) | (3,397) | (6,627) | (6,793) |
Amortization of actuarial loss | 74 | 20 | 149 | 31 |
Net periodic pension benefit | $ (854) | $ (853) | $ (1,706) | $ (1,713) |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | May 10, 2017 | |
Shareholders' Equity [Abstract] | ||
Dividends Payable, Date Declared | May 10, 2017 | |
Dividends Payable, Amount Per Share | $ 0.08 | |
Dividends Payable, Date of Record | Aug. 11, 2017 | |
Dividends Payable, Date to be Paid | Sep. 1, 2017 | |
Dividends Payable | $ 1,788 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ (39,251) | $ (38,450) | $ (39,308) | $ (38,442) |
Amortization | 56 | (24) | 113 | (32) |
Balance, end of period | (39,195) | (38,474) | (39,195) | (38,474) |
Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (39,662) | (38,887) | (39,737) | (38,898) |
Amortization | 74 | 20 | 149 | 31 |
Balance, end of period | (39,588) | (38,867) | (39,588) | (38,867) |
Other Postretirement Benefit Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 411 | 437 | 429 | 456 |
Amortization | (18) | (44) | (36) | (63) |
Balance, end of period | $ 393 | $ 393 | $ 393 | $ 393 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 615,222 | 499,726 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of earnings per share reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to A. H. Belo Corporation | $ (805) | $ 693 | $ (5,235) | $ 61 |
Less: Dividends to participating securities | 43 | 28 | 82 | 54 |
Net income (loss) available to common shareholders from continuing operations | $ (848) | $ 665 | $ (5,317) | $ 7 |
Shares (Denominator) | ||||
Weighted average common shares outstanding (basic) | 21,743,390 | 21,614,260 | 21,717,032 | 21,564,200 |
Effect of dilutive securities | 148,299 | 160,676 | ||
Adjusted weighted average shares outstanding (diluted) | 21,743,390 | 21,762,559 | 21,717,032 | 21,724,876 |
Earnings Per Share from Continuing Operations | ||||
Basic and diluted | $ (0.04) | $ 0.03 | $ (0.24) | $ 0 |
Contingencies (Details)
Contingencies (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies [Abstract] | |
Additional years of agreement term | 7 years |
Sales of Assets (Details)
Sales of Assets (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($)item | |
Sales of Assets [Abstract] | |
Number of parcels of land available for sale | item | 3 |
Assets held for sale | $ | $ 8,740 |