Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Entity Registrant Name | A. H. Belo Corp | |
Entity Central Index Key | 0001413898 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Accelerated Filer | |
Trading Symbol | ahc | |
Series A [Member] | ||
Entity Common Stock, Shares Outstanding | 19,043,949 | |
Series B [Member] | ||
Entity Common Stock, Shares Outstanding | 2,469,544 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Operating Revenue: | ||
Total net operating revenue | $ 46,589 | $ 49,453 |
Operating Costs and Expense: | ||
Employee compensation and benefits | 21,124 | 24,672 |
Other production, distribution and operating costs | 22,184 | 23,014 |
Newsprint, ink and other supplies | 4,747 | 5,311 |
Depreciation | 2,386 | 2,473 |
Amortization | 200 | 200 |
Total operating costs and expense | 50,641 | 55,670 |
Operating loss | (4,052) | (6,217) |
Other income, net | 897 | 888 |
Loss Before Income Taxes | (3,155) | (5,329) |
Income tax benefit | (143) | (1,315) |
Net Loss | $ (3,012) | $ (4,014) |
Per Share Basis | ||
Net loss, Basic and diluted | $ (0.14) | $ (0.19) |
Number of common shares used in the per share calculation: | ||
Basic and diluted | 21,594,262 | 21,716,419 |
Advertising And Marketing Services [Member] | ||
Net Operating Revenue: | ||
Total net operating revenue | $ 24,041 | $ 25,741 |
Circulation [Member] | ||
Net Operating Revenue: | ||
Total net operating revenue | 17,273 | 17,747 |
Printing, Distribution And Other [Member] | ||
Net Operating Revenue: | ||
Total net operating revenue | $ 5,275 | $ 5,965 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net Loss | $ (3,012) | $ (4,014) |
Other Comprehensive Income (Loss), Net of Tax: | ||
Amortization of actuarial losses | 63 | 158 |
Total other comprehensive income, net of tax | 63 | 158 |
Total Comprehensive Loss | $ (2,949) | $ (3,856) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 50,301 | $ 55,313 |
Accounts receivable (net of allowance of $844 and $581 at March 31, 2019 and December 31, 2018, respectively) | 19,552 | 22,057 |
Inventories | 3,877 | 3,912 |
Prepaids and other current assets | 6,367 | 5,023 |
Assets held for sale | 1,089 | 1,089 |
Total current assets | 81,186 | 87,394 |
Property, plant and equipment, at cost | 423,015 | 422,966 |
Less accumulated depreciation | (399,091) | (396,705) |
Property, plant and equipment, net | 23,924 | 26,261 |
Operating lease right-of-use assets | 22,527 | |
Intangible assets, net | 3,074 | 3,274 |
Goodwill | 13,973 | 13,973 |
Deferred income taxes, net | 6,720 | 6,417 |
Other assets | 4,028 | 5,029 |
Total assets | 155,432 | 142,348 |
Current liabilities: | ||
Accounts payable | 4,725 | 6,334 |
Accrued compensation and benefits | 5,625 | 8,294 |
Other accrued expense | 6,635 | 5,586 |
Advance subscription payments | 12,153 | 11,449 |
Total current liabilities | 29,138 | 31,663 |
Long-term pension liabilities | 30,997 | 31,889 |
Long-term operating lease liabilities | 23,862 | |
Other post-employment benefits | 1,162 | 1,165 |
Other liabilities | 4,696 | 7,045 |
Total liabilities | 89,855 | 71,762 |
Shareholders' equity: | ||
Preferred stock, $.01 par value; Authorized 2,000,000 shares; none issued | ||
Treasury stock, Series A, at cost; 1,780,899 and 1,697,370 shares held at March 31, 2019 and December 31, 2018, respectively | (12,941) | (12,601) |
Additional paid-in capital | 494,389 | 494,389 |
Accumulated other comprehensive loss | (37,578) | (37,641) |
Accumulated deficit | (378,526) | (373,794) |
Total shareholders’ equity | 65,577 | 70,586 |
Total liabilities and shareholders’ equity | 155,432 | 142,348 |
Series A [Member] | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | 209 | 209 |
Series B [Member] | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | $ 24 | $ 24 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts receivable | $ 844 | $ 581 |
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 | 20,854,739 | 20,854,728 |
Series B [Member] | ||
Common stock, shares, issued | 2,469,544 | 2,469,555 |
Treasury Stock [Member] | Series A [Member] | ||
Treasury stock Series A, shares held | 1,780,899 | 1,697,370 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - 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] | Series A [Member] | Total |
Beginning Balance at Dec. 31, 2017 | $ 232 | $ 494,989 | $ (11,302) | $ (24,932) | $ (361,288) | $ 97,699 | ||||
Beginning Balance, Shares Common Stock at Dec. 31, 2017 | 20,700,292 | 2,469,755 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2017 | (1,430,961) | |||||||||
Net loss | (4,014) | (4,014) | ||||||||
Other comprehensive income | 158 | 158 | ||||||||
Shares repurchased, shares | (108,778) | |||||||||
Shares repurchased | (555) | (555) | ||||||||
Issuance of shares for restricted stock units, shares | 117,102 | |||||||||
Issuance of shares for restricted stock units | 1 | (1) | ||||||||
Share-based compensation | 617 | 617 | ||||||||
Conversion of Series B to Series A, shares | 120 | (120) | ||||||||
Dividends declared | (1,781) | (1,781) | ||||||||
Ending Balance at Mar. 31, 2018 | 233 | 495,605 | (11,857) | (24,774) | (367,083) | 92,124 | ||||
Ending Balance, Shares Common Stock at Mar. 31, 2018 | 20,817,514 | 2,469,635 | ||||||||
Ending Balance, Shares Treasury Stock at Mar. 31, 2018 | (1,539,739) | |||||||||
Beginning Balance at Dec. 31, 2018 | 233 | 494,389 | (12,601) | (37,641) | (373,794) | 70,586 | ||||
Beginning Balance, Shares Common Stock at Dec. 31, 2018 | 20,854,728 | 2,469,555 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2018 | (1,697,370) | |||||||||
Net loss | (3,012) | (3,012) | ||||||||
Other comprehensive income | 63 | 63 | ||||||||
Shares repurchased, shares | (83,529) | (83,529) | ||||||||
Shares repurchased | (340) | $ (340) | (340) | |||||||
Conversion of Series B to Series A, shares | 11 | (11) | ||||||||
Dividends declared | (1,720) | (1,720) | ||||||||
Ending Balance at Mar. 31, 2019 | $ 233 | $ 494,389 | $ (12,941) | $ (37,578) | $ (378,526) | $ 65,577 | ||||
Ending Balance, Shares Common Stock at Mar. 31, 2019 | 20,854,739 | 2,469,544 | ||||||||
Ending Balance, Shares Treasury Stock at Mar. 31, 2019 | (1,780,899) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Shareholders' Equity [Abstract] | ||
Dividends declared | $ 0.08 | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net loss | $ (3,012) | $ (4,014) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 2,586 | 2,673 |
Net periodic pension and other post-employment benefit | (818) | (930) |
Share-based compensation | 617 | |
Bad debt expense | 400 | 241 |
Deferred income taxes | (303) | (1,619) |
Loss on disposal of fixed assets | 186 | |
Changes in working capital and other operating assets and liabilities: | ||
Accounts receivable | 2,105 | 6,049 |
Inventories, prepaids and other current assets | (1,309) | (1,478) |
Other assets | 1,001 | 772 |
Accounts payable | (1,609) | (2,566) |
Compensation and benefit obligations | (3,362) | (2,089) |
Other accrued expenses | 865 | 3,428 |
Advance subscription payments | 704 | 563 |
Other post-employment benefits | (14) | (886) |
Net cash provided by (used for) operating activities | (2,766) | 947 |
Investing Activities | ||
Purchases of assets | (180) | (2,307) |
Net cash used for investing activities | (180) | (2,307) |
Financing Activities | ||
Dividends paid | (1,726) | (1,770) |
Shares repurchased | (340) | (555) |
Net cash used for financing activities | (2,066) | (2,325) |
Net decrease in cash and cash equivalents | (5,012) | (3,685) |
Cash and cash equivalents, beginning of period | 55,313 | 57,660 |
Cash and cash equivalents, end of period | 50,301 | 53,975 |
Supplemental Disclosures | ||
Income tax paid, net (refund) | 9 | (300) |
Noncash investing and financing activities: | ||
Investments in property, plant and equipment payable | 327 | |
Dividends payable | $ 1,723 | $ 1,785 |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
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 the leading local news and information publishing company in Texas with commercial printing, distribution and direct mail capabilities, as well as a presence in emerging media and digital marketing. While focusing on extending the Company’s media platforms, A. H. Belo delivers news and information in innovative ways to a broad range 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, and various niche publications targeting specific audiences. 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 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, 2018. 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. Recently Adopted Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Since February 2016, the FASB issued clarifying updates to the new standard that did not change the core principle of ASU 2016-02. The new guidance will supersede virtually all existing lease guidance under GAAP and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-02 on January 1, 2019, using the modified retrospective approach; see Note 4 – Leases . New Accounting Pronouncements. The FASB issued the following accounting pronouncements and guidance, which may be applicable to the Company but have not yet become effective. In August 2018, the FASB issued ASU 2018-14 – Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that are no longer considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. The guidance will be effective for fiscal years ending after December 15, 2020. 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 financial statement disclosures. In August 2018, the FASB issued ASU 2018-15 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): C ustomer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . This update clarifies the accounting for implementation costs incurred in a cloud computing arrangement, or hosting arrangement, that is a service contract. Costs for implementation activities incurred during the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post implementation stages will be expensed as the activities are performed. The capitalized implementation costs will be expensed over the term of the hosting arrangement. The guidance will be effective for fiscal years beginning after December 15, 2019, and 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 | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 2: Segment Reporting The Company identified two reportable segments based on 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 and apps. These operations generate revenue from sales of advertising within its newspaper and digital platforms, subscription and retail sales of its newspapers, commercial printing and distribution services, primarily related to national and regional newspapers, and preprint advertising. Businesses within the Publishing segment leverage its 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 Digital Holdings Company (“DMV Holdings”) and digital advertising through Connect (programmatic advertising). The Company operates this integrated 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, the Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer, Robert W. Decherd. The CODM allocates resources and capital to the Publishing and Marketing Services segments at the segment level. The tables below set forth summarized financial information for the Company’s reportable segments. In the first quarter of 2019, the Company determined one of the Company’s business units, previously reported in the Publishing segment, is now providing services and products more closely aligned with the Marketing Services segment. Beginning January 1, 2019, this business unit will be reported in the Marketing Services segment. The 2018 financial information by segment was recast for comparative purposes. Three Months Ended March 31, 2019 2018 (Recast) Revenue Publishing $ 40,703 $ 43,629 Marketing Services 5,886 5,824 Total $ 46,589 $ 49,453 Operating Income (Loss) Publishing $ (4,040) $ (6,302) Marketing Services (12) 85 Total $ (4,052) $ (6,217) Noncash Expenses Publishing Depreciation $ 2,317 $ 2,436 Total $ 2,317 $ 2,436 Marketing Services Depreciation $ 69 $ 37 Amortization 200 200 Total $ 269 $ 237 March 31, December 31, 2019 2018 (Recast) Total Assets Publishing $ 129,590 $ 120,479 Marketing Services 25,842 21,869 Total $ 155,432 $ 142,348 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Revenue | Note 3: Revenue Revenue Recognition Revenue is recognized when obligations under the terms of a contract with our customer are satisfied. This occurs when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales tax collected concurrent with revenue-producing activities are excluded from revenue. Accounts receivable are reported net of a valuation reserve that represents an estimate of amounts considered uncollectible. The Company estimates the allowance for doubtful accounts based on historical write-off experience and the Company’s knowledge of the customers’ ability to pay amounts due. Accounts are written-off after all collection efforts fail; generally, after one year has expired. Expense for such uncollectible amounts is included in other production, distribution and operating costs. The table below sets forth revenue disaggregated by revenue source. Three Months Ended March 31, 2019 2018 Advertising revenue $ 18,155 $ 19,917 Digital services 4,309 4,468 Other services 1,577 1,356 Advertising and marketing services 24,041 25,741 Circulation 17,273 17,747 Printing, distribution and other 5,275 5,965 Total Revenue $ 46,589 $ 49,453 Advertising and Marketing Services Revenue Advertising revenue, included in the Publishing segment results, is generated by selling print and digital advertising products. Print advertising revenue represents sales of advertising space within the Company’s core and niche newspapers, as well as preprinted advertisements inserted into the Company’s core newspapers and niche publications or distributed to non-subscribers through the mail. Digital advertising is generated by selling banner and real estate classified advertising on The Dallas Morning News’ website dallasnews.com , online employment and obituary classified advertising on third-party websites sold under a print/digital bundle package and sales of online automotive classifieds on the cars.com platform. Digital services and other services revenues are included in the Marketing Services segment results. Digital services revenue includes targeted and multi-channel (programmatic) advertising placed on third-party websites, content development, social media management, search optimization, and other consulting. Other services revenue is primarily generated from the sale of promotional merchandise. Advertising and marketing services revenue is primarily recognized at a point in time when the ad or service is complete and delivered, based on the customers’ contract price. In addition, certain digital advertising revenue related to website access is recognized over time, based on the customers’ monthly rate. For ads placed on certain third-party websites, the Company must evaluate whether it is acting as the principal, where revenue is reported on a gross basis, or acting as the agent, where revenue is reported on a net basis. Generally, the Company reports advertising revenue for ads placed on third-party websites on a net basis, meaning the amount recorded to revenue is the amount billed to the customer net of amounts paid to the publisher of the third-party website. The Company is acting as the agent because the publisher controls the advertising inventory. Circulation Circulation revenue, included in the Publishing segment results, is generated primarily by selling home delivery and digital subscriptions, as well as single copy sales to non-subscribers. Home delivery and single copy revenue is recognized at a point in time when the paper is delivered or purchased. Digital subscriptions are recognized over time, based on the customers’ monthly rate. Printing, Distribution and Other Printing, distribution and other revenue, included in the Publishing segment results, is primarily generated from printing and distribution of other newspapers, as well as production of preprinted advertisements for other newspapers. Printing, distribution and other revenue is recognized at a point in time when the product or service is delivered. Remaining Performance Obligations The Company has various Publishing advertising contracts and Marketing Services digital services contracts that range from 13 months to 36 months. The Company recognizes revenue on the advertising contracts over the term of the agreement at a point in time when the service or product is delivered. The Company recognizes revenue on the digital services contracts over time, based on the customers’ monthly rate. At March 31, 2019, the remaining performance obligation was $3,495 . The Company expects to recognize $1,293 over the remainder of 2019, $1,196 in 2020, $886 in 2021, and $120 in 2022 . Deferred Revenue Deferred revenue is recorded when cash payments are received in advance of the Company’s performance, including amounts which are refundable. The short-term and long-term deferred revenue balance as of March 31, 2019, was $14,525 , included in advance subscription payments, other accrued expense and other liabilities in the Consolidated Balance Sheet. In the three months ended March 31, 2019, the balance increased $1,930 , primarily driven by cash payments received in advance of satisfying our performance obligations, offset by $7,241 of revenue recognized that was included in the deferred revenue balance as of December 31, 2018. Practical Expedients and Exemptions The Company generally expenses sales commissions and circulation acquisition costs when incurred because the amortization period would have been one year or less. These costs are recorded within employee compensation and benefits expense and other production, distribution and operating costs expense, respectively. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less and contracts for which revenue is recognized at the amount invoiced for services performed. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 4: Leases Adoption of ASU 2016-02 – Leases (Topic 842) On January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective approach applied to all leases with a remaining lease term greater than one year. Results for reporting periods beginning after January 1, 2019, are presented in accordance with the new guidance under ASU 2016-02, while prior period amounts are not restated. The adoption of the new lease guidance resulted in the Company recognizing operating lease right-of-use assets and lease liabilities based on the present value of remaining minimum lease payments. For the discount rate assumption, the implicit rate was not readily determinable in the Company’s lease agreements. Therefore, the Company used an estimated secured incremental borrowing rate, based on the Company’s credit rating, adjusted for the weighted average term of each lease in determining the present value of lease payments. There was no impact to opening retained earnings. The Company elected the practical expedients available under ASU 2016-02 and applied them consistently to all applicable leases. The Company did not apply ASU 2016-02 to any leases with a remaining term of 12 months or less. For these leases, no asset or liability was recorded and lease expense continues to be recognized on a straight-line basis over the lease term. As allowed by the practical expedients, the Company does not reassess whether any expired or existing contracts are or contain leases, does not reassess the lease classification for any expired or existing leases and does not reassess initial direct costs for existing leases. Additionally, the Company does not separately identify lease and nonlease components, such as maintenance costs. Lease Accounting The Company has various operating leases primarily for office space and other distribution centers, some of which include escalating lease payments and options to extend or terminate the lease. The Company determines if a contract is a lease at the inception of the arrangement. The exercise of lease renewal options are at the Company’s sole discretion and options are recognized when it is reasonably certain the Company will exercise the option. The Company’s leases have remaining terms of less than one year to 15 years. The Company does not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants. The Company has a sublease with Denton Publishing Company for a remaining term of approximately four years. Additionally, the Company has various subleases with distributors, for distribution center space, with varying remaining lease terms of less than one year to two years and are cancellable with notice by either party. As of March 31, 2019, sublease income is expected to approximate $390 for the remainder of 2019, $341 in 2020, $232 in 2021, $221 in 2022, and $129 in 2023. Operating lease right-of-use assets and liabilities are recognized at commencement date of lease agreements greater than one year based on the present value of lease payments over the lease term. Lease expense is recognized on a straight-line basis over the lease term and variable lease costs are expensed as incurred. As of March 31, 2019, the Company does no t have any significant additional operating leases that have not yet commenced. The table below sets forth supplemental Consolidated Balance Sheet information for the Company’s leases. Classification March 31, 2019 Assets Operating Operating lease right-of-use assets $ 22,527 Liabilities Operating Current Other accrued expense $ 1,802 Noncurrent Long-term operating lease liabilities 23,862 Total lease liabilities $ 25,664 Lease Term and Discount Rate Operating leases Weighted average remaining lease term (years) 12.2 Weighted average discount rate 7.4 % The table below sets forth components of lease expense and supplemental cash flow information for the Company’s leases. Three Months Ended March 31, 2019 Lease Cost Operating lease cost $ 1,038 Short-term lease cost 46 Variable lease cost 90 Sublease income (161) Total lease cost $ 1,013 Supplemental Cash Flow Information Cash paid for operating leases included in operating activities $ 998 The table below sets forth the remaining maturities of the Company’s lease liabilities as of March 31, 2019. Years Ending December 31, Operating Leases 2019 $ 2,700 2020 3,480 2021 3,450 2022 3,398 2023 2,986 Thereafter 24,506 Total lease payments 40,520 Less: imputed interest 14,856 Total lease liabilities $ 25,664 The table below sets forth the future minimum obligations for operating leases in effect as of December 31, 2018, as determined prior to the adoption of ASU 2016-02. Total operating lease expense was $4,688 for the year ended December 31, 2018. Total 2019 2020 2021 2022 2023 Thereafter Operating lease commitments $ 41,837 $ 4,403 $ 3,588 $ 3,575 $ 3,467 $ 3,533 $ 23,271 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 5: Goodwill and Intangible Assets The table below sets forth goodwill and other intangible assets by reportable segment as of March 31, 2019 and December 31, 2018. The Company’s Publishing and Marketing Services segments each operate as a single reporting unit. There are no intangible assets or goodwill remaining for the Publishing segment. March 31, December 31, 2019 2018 Goodwill Marketing Services $ 13,973 $ 13,973 Intangible Assets Marketing Services Cost $ 6,470 $ 6,470 Accumulated Amortization (3,396) (3,196) Net Carrying Value $ 3,074 $ 3,274 Marketing Services’ 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 $200 for the three months ended March 31, 2019 and 2018. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6: Related Party Transactions On March 1, 2019, the Company made a loan of $200 to eSite Analytics, Inc. As of March 31, 2019 and December 31, 2018, the Company had a note receivable of $850 and $650 , respectively, included in prepaids and other current assets, and other assets in the Consolidated Balance Sheets. The Company accounts for eSite Analytics, Inc. as an equity method investment. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7: Income Taxes The Company calculates the income tax provision based on the year-to-date pretax loss adjusted for permanent differences and discrete items on a pro-rata basis. Due to the volatility of the newspaper industry, reliable forecasting is unavailable. As such, a discrete tax rate was calculated for the period. The Company recognized income tax benefit of $143 and $1,315 for the three months ended March 31, 2019 and 2018 , respectively. Effective income tax rates were 4.5 percent and 24.7 percent for the three months ended March 31, 2019 and 2018 , respectively. The effective income tax rate for the three months ended March 31, 2019, was due to changes in the valuation allowance, an increase in the net operating loss deferred tax asset and the effect of the Texas margin tax. The change to the valuation allowance was an increase of $406 for the three months ended March 31, 2019 , primarily due to the pension liability, depreciation and accrued bonuses. |
Pension and Other Retirement Pl
Pension and Other Retirement Plans | 3 Months Ended |
Mar. 31, 2019 | |
Pension and Other Retirement Plans [Abstract] | |
Pension and Other Retirement Plans | Note 8: 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 1,400 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 2019 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, which are included in other income, net in the Consolidated Statements of Operations. Three Months Ended March 31, 2019 2018 Interest cost $ 1,974 $ 1,796 Expected return on plans' assets (2,867) (2,894) Amortization of actuarial loss 70 168 Net periodic pension benefit $ (823) $ (930) 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 Plan and the Internal Revenue Code. Employees can contribute up to 100 percent of their annual eligible compensation less required withholdings and deductions up to statutory limits. The Company provides an ongoing dollar-for-dollar match of eligible employee contributions, up to 1.5 percent of the employees’ compensation. During the three months ended March 31, 2019 and 2018 , the Company recorded expense of $213 and $243 , respectively, for matching contributions to the Savings Plan. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 9: Shareholders’ Equity Dividends. On March 7, 2019 , the Company’s board of directors declared an $0.08 per share dividend to shareholders of record as of the close of business on May 17, 2019 , which is payable on June 7, 2019 . During the three months ended March 31, 2019, the Company recorded $1,723 to accrue for dividends declared but not yet paid, included in other accrued expense in the Consolidated Balance Sheet. Treasury Stock. The Company repurchased shares of its common stock pursuant to a publicly announced share repurchase program authorized by the Company’s board of directors. In the first quarter of 2019, the Company’s board of directors authorized an additional 1,500,000 shares for repurchase. During the first quarter of 2019, the Company repurchased 83,529 shares of its Series A common stock at a total cost of $340 . Outstanding Shares. The Company had Series A and Series B common stock outstanding of 19,073,840 and 2,469,544 , respectively, net of treasury shares at March 31, 2019. At December 31, 2018, the Company had Series A and Series B common stock outstanding of 19,157,358 and 2,469,555 , respectively, net of treasury shares. 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 related to amounts recorded in accumulated other comprehensive loss are fully reserved. The tables below set forth the changes in accumulated other comprehensive loss, net of tax, as presented in the Company’s consolidated financial statements. Three Months Ended March 31, 2019 2018 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (37,641) $ (38,003) $ 362 $ (24,932) $ (25,434) $ 502 Amortization 63 70 (7) 158 168 (10) Balance, end of period $ (37,578) $ (37,933) $ 355 $ (24,774) $ (25,266) $ 492 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10: 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 and Series B common stock equally share in the distributed and undistributed earnings. Three Months Ended March 31, 2019 2018 Earnings (Numerator) Net loss $ (3,012) $ (4,014) Less: dividends to participating securities — 45 Net loss available to common shareholders $ (3,012) $ (4,059) Shares (Denominator) Weighted average common shares outstanding (basic and diluted) 21,594,262 21,716,419 Loss Per Share Basic and diluted $ (0.14) $ (0.19) Holders of service-based restricted stock units (“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 670,111 options and RSUs outstanding as of March 31, 2018 , were excluded from the calculation because the effect was anti-dilutive. There were no options or RSUs outstanding as of March 31, 2019. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Contingencies [Abstract] | |
Contingencies | Note 11: 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. 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 | 3 Months Ended |
Mar. 31, 2019 | |
Sales of Assets [Abstract] | |
Sales of Assets | Note 12: Sales of Assets 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. Real estate assets in downtown Dallas, Texas, previously used as the corporate headquarters, are available for sale. These assets, with a total carrying value of $1,089 , are reported as assets held for sale as of March 31, 2019 and December 31, 2018. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13: Subsequent Events On April 1, 2019, the Company completed the asset acquisition of Cubic, Inc. for a cash purchase price of approximately $2,400 , net of cash ac quired . The new entity Cubic Creative, Inc. is located in Tulsa, Oklahoma and has 25 employees. This acquisition adds creative strategy services, which will be complementary to service offerings currently available to A. H. Belo clients. The acquired operations will be included in the Marketing Services segment. The Company does not expect the acquisition to be material to its financial position or results of operations. |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Standards (Policy) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation and Recently Issued Accounting Standards [Abstract] | |
Description of Business, Policy | 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 the leading local news and information publishing company in Texas with commercial printing, distribution and direct mail capabilities, as well as a presence in emerging media and digital marketing. While focusing on extending the Company’s media platforms, A. H. Belo delivers news and information in innovative ways to a broad range 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, and various niche publications targeting specific audiences. |
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 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, 2018. 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Since February 2016, the FASB issued clarifying updates to the new standard that did not change the core principle of ASU 2016-02. The new guidance will supersede virtually all existing lease guidance under GAAP and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-02 on January 1, 2019, using the modified retrospective approach; see Note 4 – Leases . |
New Accounting Pronouncements | New Accounting Pronouncements. The FASB issued the following accounting pronouncements and guidance, which may be applicable to the Company but have not yet become effective. In August 2018, the FASB issued ASU 2018-14 – Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that are no longer considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. The guidance will be effective for fiscal years ending after December 15, 2020. 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 financial statement disclosures. In August 2018, the FASB issued ASU 2018-15 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): C ustomer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . This update clarifies the accounting for implementation costs incurred in a cloud computing arrangement, or hosting arrangement, that is a service contract. Costs for implementation activities incurred during the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post implementation stages will be expensed as the activities are performed. The capitalized implementation costs will be expensed over the term of the hosting arrangement. The guidance will be effective for fiscal years beginning after December 15, 2019, and 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. |
Pension And Other Retirement _2
Pension And Other Retirement Plans (Policy) | 3 Months Ended |
Mar. 31, 2019 | |
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) | 3 Months Ended |
Mar. 31, 2019 | |
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 related to amounts recorded in accumulated other comprehensive loss are fully reserved. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Three Months Ended March 31, 2019 2018 (Recast) Revenue Publishing $ 40,703 $ 43,629 Marketing Services 5,886 5,824 Total $ 46,589 $ 49,453 Operating Income (Loss) Publishing $ (4,040) $ (6,302) Marketing Services (12) 85 Total $ (4,052) $ (6,217) Noncash Expenses Publishing Depreciation $ 2,317 $ 2,436 Total $ 2,317 $ 2,436 Marketing Services Depreciation $ 69 $ 37 Amortization 200 200 Total $ 269 $ 237 March 31, December 31, 2019 2018 (Recast) Total Assets Publishing $ 129,590 $ 120,479 Marketing Services 25,842 21,869 Total $ 155,432 $ 142,348 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Disaggregated By Revenue Source | Three Months Ended March 31, 2019 2018 Advertising revenue $ 18,155 $ 19,917 Digital services 4,309 4,468 Other services 1,577 1,356 Advertising and marketing services 24,041 25,741 Circulation 17,273 17,747 Printing, distribution and other 5,275 5,965 Total Revenue $ 46,589 $ 49,453 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Consolidated Balance Sheet information for Leases | Classification March 31, 2019 Assets Operating Operating lease right-of-use assets $ 22,527 Liabilities Operating Current Other accrued expense $ 1,802 Noncurrent Long-term operating lease liabilities 23,862 Total lease liabilities $ 25,664 Lease Term and Discount Rate Operating leases Weighted average remaining lease term (years) 12.2 Weighted average discount rate 7.4 % |
Schedule of Components of Lease Expense and Supplemental Cash Flow Information for Leases | Three Months Ended March 31, 2019 Lease Cost Operating lease cost $ 1,038 Short-term lease cost 46 Variable lease cost 90 Sublease income (161) Total lease cost $ 1,013 Supplemental Cash Flow Information Cash paid for operating leases included in operating activities $ 998 |
Schedule of Remaining Maturities of Lease Liabilities | Years Ending December 31, Operating Leases 2019 $ 2,700 2020 3,480 2021 3,450 2022 3,398 2023 2,986 Thereafter 24,506 Total lease payments 40,520 Less: imputed interest 14,856 Total lease liabilities $ 25,664 |
Schedule of Future Minimum Obligations for Operating Leases as Determined Prior to Adoption of ASU 2016-02 | Total 2019 2020 2021 2022 2023 Thereafter Operating lease commitments $ 41,837 $ 4,403 $ 3,588 $ 3,575 $ 3,467 $ 3,533 $ 23,271 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of Identifiable Intangible Assets | March 31, December 31, 2019 2018 Goodwill Marketing Services $ 13,973 $ 13,973 Intangible Assets Marketing Services Cost $ 6,470 $ 6,470 Accumulated Amortization (3,396) (3,196) Net Carrying Value $ 3,074 $ 3,274 |
Pension and Other Retirement _3
Pension and Other Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Pension and Other Retirement Plans [Abstract] | |
Schedule of Net Periodic Pension Benefit | Three Months Ended March 31, 2019 2018 Interest cost $ 1,974 $ 1,796 Expected return on plans' assets (2,867) (2,894) Amortization of actuarial loss 70 168 Net periodic pension benefit $ (823) $ (930) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Shareholders' Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Three Months Ended March 31, 2019 2018 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (37,641) $ (38,003) $ 362 $ (24,932) $ (25,434) $ 502 Amortization 63 70 (7) 158 168 (10) Balance, end of period $ (37,578) $ (37,933) $ 355 $ (24,774) $ (25,266) $ 492 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | Three Months Ended March 31, 2019 2018 Earnings (Numerator) Net loss $ (3,012) $ (4,014) Less: dividends to participating securities — 45 Net loss available to common shareholders $ (3,012) $ (4,059) Shares (Denominator) Weighted average common shares outstanding (basic and diluted) 21,594,262 21,716,419 Loss Per Share Basic and diluted $ (0.14) $ (0.19) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Reportable S
Segment Reporting (Reportable Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 46,589 | $ 49,453 | |
Operating Income (Loss) | (4,052) | (6,217) | |
Depreciation | 2,386 | 2,473 | |
Amortization | 200 | 200 | |
Total Assets | 155,432 | $ 142,348 | |
Marketing Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization | 200 | 200 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 46,589 | 49,453 | |
Operating Income (Loss) | (4,052) | (6,217) | |
Total Assets | 155,432 | 142,348 | |
Operating Segments [Member] | Publishing [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 40,703 | 43,629 | |
Operating Income (Loss) | (4,040) | (6,302) | |
Depreciation | 2,317 | 2,436 | |
Total | 2,317 | 2,436 | |
Total Assets | 129,590 | 120,479 | |
Operating Segments [Member] | Marketing Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,886 | 5,824 | |
Operating Income (Loss) | (12) | 85 | |
Depreciation | 69 | 37 | |
Amortization | 200 | 200 | |
Total | 269 | $ 237 | |
Total Assets | $ 25,842 | $ 21,869 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation | $ 3,495 | |
Deferred revenue balance | 14,525 | |
Deferred revenue increase | $ 1,930 | |
Deferred revenue, revenue recognized | $ 7,241 | |
Maximum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 36 months | |
Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 13 months |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations, Start Date ) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 3,495 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 1,293 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 1,196 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 886 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 120 |
Revenue (Disaggregated by Reven
Revenue (Disaggregated by Revenue Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 46,589 | $ 49,453 |
Advertising Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 18,155 | 19,917 |
Digital Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 4,309 | 4,468 |
Other Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,577 | 1,356 |
Advertising And Marketing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 24,041 | 25,741 |
Circulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 17,273 | 17,747 |
Printing, Distribution And Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 5,275 | $ 5,965 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Operating leases that have not yet commenced | $ 0 | |
Operating lease expense | $ 4,688 | |
Sublease [Member] | ||
Sublease income expected for the remainder of 2019 | 390 | |
Sublease income expected in 2020 | 341 | |
Sublease income expected in 2021 | 232 | |
Sublease income expected in 2022 | 221 | |
Sublease income expected in 2023 | $ 129 | |
Denton Publishing Company [Member] | Sublease [Member] | ||
Operating leases remaining terms | 4 years | |
Maximum [Member] | ||
Operating leases remaining terms | 15 years | |
Maximum [Member] | Sublease [Member] | ||
Operating leases remaining terms | 2 years | |
Minimum [Member] | ||
Operating leases remaining terms | 1 year | |
Minimum [Member] | Sublease [Member] | ||
Operating leases remaining terms | 1 year |
Leases (Schedule of Lessee Leas
Leases (Schedule of Lessee Lease Assets and Liabilities) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 22,527 |
Operating current: Other accrued expense | 1,802 |
Operating noncurrent: Long-term operating lease liabilities | 23,862 |
Total lease liabilities | $ 25,664 |
Operating leases weighted average remaining lease term (years) | 12 years 2 months 12 days |
Operating leases weighted average discount rate | 7.40% |
Leases (Schedule of Lease Cost
Leases (Schedule of Lease Cost for All Leases) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating lease cost | $ 1,038 |
Short-term lease cost | 46 |
Variable lease cost | 90 |
Sublease income | (161) |
Total lease cost | 1,013 |
Cash paid for operating leases included in operating activities | $ 998 |
Leases (Remaining Maturities of
Leases (Remaining Maturities of Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 | $ 2,700 |
2020 | 3,480 |
2021 | 3,450 |
2022 | 3,398 |
2023 | 2,986 |
Thereafter | 24,506 |
Total lease payments | 40,520 |
Less: imputed interest | 14,856 |
Total lease liabilities | $ 25,664 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Obligations for Operating Leases as Determined Prior to Adoption of ASU 2016-02) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 4,403 |
2020 | 3,588 |
2021 | 3,575 |
2022 | 3,467 |
2023 | 3,533 |
Thereafter | 23,271 |
Total | $ 41,837 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 13,973,000 | $ 13,973,000 | |
Amortization expense | 200,000 | $ 200,000 | |
Publishing [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets excluding goodwill | 0 | ||
Goodwill | 0 | ||
Marketing Services [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 200,000 | $ 200,000 | |
Customer Relationships [Member] | Marketing Services [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangibles | $ 4,950,000 | ||
Definite-lived intangibles, useful life | 10 years | ||
Developed Technology [Member] | Marketing Services [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangibles | $ 1,520,000 | ||
Definite-lived intangibles, useful life | 5 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 13,973 | $ 13,973 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Net Carrying Value | 3,074 | 3,274 |
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 | (3,396) | (3,196) |
Net Carrying Value | $ 3,074 | $ 3,274 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 01, 2019 | Dec. 31, 2018 |
eSite Analytics, Inc. [Member] | |||
Notes receivable | $ 850 | $ 200 | $ 650 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Abstract] | ||
Income tax benefit | $ 143 | $ 1,315 |
Effective income tax rate | 4.50% | 24.70% |
Changes in valuation allowance | $ 406 |
Pension and Other Retirement _4
Pension and Other Retirement Plans (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)employee | Mar. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure | ||
Number of employee participants | employee | 1,400 | |
401(K) Plan [Member] | ||
Defined Contribution Plans | ||
Maximum pretax contribution per employee | 100.00% | |
Defined contribution plan, employer matching contribution, percent | 1.50% | |
Expense recognized | $ 213,000 | $ 243,000 |
Pension Plan [Member] | ||
Defined Benefit Plan, Estimated Future Employer Contributions | ||
Estimated future employer contributions | $ 0 |
Pension and Other Retirement _5
Pension and Other Retirement Plans (Schedule of Net Periodic Pension Benefit) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure | ||
Interest cost | $ 1,974 | $ 1,796 |
Expected return on plans' assets | (2,867) | (2,894) |
Amortization of actuarial loss | 70 | 168 |
Net periodic pension benefit | $ (823) | $ (930) |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 07, 2019 | Dec. 31, 2018 | |
Shareholders' Equity [Line Items] | ||||
Dividends payable, date declared | Mar. 7, 2019 | |||
Dividends payable, amount per share | $ 0.08 | |||
Dividends payable, date of record | May 17, 2019 | |||
Dividends payable, date to be paid | Jun. 7, 2019 | |||
Dividends payable | $ 1,723 | $ 1,785 | ||
Stock repurchase program, number of shares authorized to be repurchased | 1,500,000 | |||
Shares repurchased | $ 340 | $ 555 | ||
Series A [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Shares repurchased, shares | 83,529 | |||
Shares repurchased | $ 340 | |||
Common stock, shares, outstanding | 19,073,840 | 19,157,358 | ||
Series B [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Common stock, shares, outstanding | 2,469,544 | 2,469,555 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ (37,641) | $ (24,932) |
Amortization | 63 | 158 |
Balance, end of period | (37,578) | (24,774) |
Pension Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (38,003) | (25,434) |
Amortization | 70 | 168 |
Balance, end of period | (37,933) | (25,266) |
Other Postretirement Benefit Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 362 | 502 |
Amortization | (7) | (10) |
Balance, end of period | $ 355 | $ 492 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 670,111 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (3,012) | $ (4,014) |
Less: dividends to participating securities | 45 | |
Net loss available to common shareholders | $ (3,012) | $ (4,059) |
Shares (Denominator) | ||
Weighted average common shares outstanding (basic and diluted) | 21,594,262 | 21,716,419 |
Loss Per Share | ||
Basic and diluted | $ (0.14) | $ (0.19) |
Sales of Assets (Narrative) (De
Sales of Assets (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 1,089 | $ 1,089 |
Dallas, Texas [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 1,089 | $ 1,089 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Cubic Creative, Inc.[Member] - Tulsa, Oklahoma [Member] $ in Thousands | Apr. 01, 2019USD ($)employee |
Subsequent Event [Line Items] | |
Business acquisition cash purchase price, net of cash acquired | $ | $ 2,400 |
Number of employees | employee | 25 |