Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 21, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 1-33741 | |
Entity Registrant Name | DallasNews CORPORATION | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 38-3765318 | |
Entity Address, Address Line One | P. O. Box 224866 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75222-4866 | |
City Area Code | 214 | |
Local Phone Number | 977-7342 | |
Title of 12(b) Security | Series A Common Stock, $0.01 par value | |
Trading Symbol | DALN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001413898 | |
Amendment Flag | false | |
Series A [Member] | ||
Entity Common Stock, Shares Outstanding | 4,737,605 | |
Series B [Member] | ||
Entity Common Stock, Shares Outstanding | 614,885 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Net Operating Revenue: | |||
Total net operating revenue | $ 36,287 | $ 36,815 | |
Operating Costs and Expense: | |||
Employee compensation and benefits | 16,410 | 17,947 | |
Other production, distribution and operating costs | 19,249 | 19,090 | |
Newsprint, ink and other supplies | 2,394 | 2,341 | |
Depreciation | 712 | 1,074 | |
Amortization | 64 | ||
Gain on sale/disposal of assets, net | (1) | ||
Total operating costs and expense | 38,765 | 40,515 | |
Operating loss | (2,478) | (3,700) | |
Other income, net | 18 | 1,254 | |
Loss Before Income Taxes | (2,460) | (2,446) | |
Income tax provision | 184 | 319 | |
Net Loss | $ (2,644) | $ (2,765) | |
Per Share Basis | |||
Net loss, basic and diluted | [1] | $ (0.49) | $ (0.52) |
Number of common shares used in the per share calculation: | |||
Basic and diluted | [1] | 5,352,490 | 5,352,490 |
Advertising And Marketing Services [Member] | |||
Net Operating Revenue: | |||
Total net operating revenue | $ 16,264 | $ 16,769 | |
Circulation [Member] | |||
Net Operating Revenue: | |||
Total net operating revenue | 16,096 | 16,022 | |
Printing, Distribution And Other [Member] | |||
Net Operating Revenue: | |||
Total net operating revenue | $ 3,927 | $ 4,024 | |
[1] | Share and per share amounts have been retroactively adjusted to reflect the one-for-four reverse stock split effective June 8, 2021. See Note 1 – Basis of Presentation and Recently Issued Accounting Standards for additional information. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) | Jun. 08, 2021 | Mar. 31, 2022 |
Consolidated Statements of Operations [Abstract] | ||
Reverse stock split conversion ratio | 0.25 | 0.25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net Loss | $ (2,644) | $ (2,765) |
Other Comprehensive Income (Loss), Net of Tax: | ||
Amortization of actuarial losses | 130 | 360 |
Total other comprehensive income, net of tax | 130 | 360 |
Total Comprehensive Loss | $ (2,514) | $ (2,405) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 30,892 | $ 32,439 |
Accounts receivable (net of allowance of $512 and $551 at March 31, 2022 and December 31, 2021, respectively) | 12,758 | 16,012 |
Notes receivable | 22,400 | 22,400 |
Inventories | 1,781 | 2,192 |
Prepaids and other current assets | 4,733 | 3,485 |
Total current assets | 72,564 | 76,528 |
Property, plant and equipment, at cost | 312,959 | 312,979 |
Less accumulated depreciation | (304,868) | (304,157) |
Property, plant and equipment, net | 8,091 | 8,822 |
Operating lease right-of-use assets | 16,982 | 17,648 |
Deferred income taxes, net | 232 | 257 |
Other assets | 2,194 | 2,197 |
Total assets | 100,063 | 105,452 |
Current liabilities: | ||
Accounts payable | 5,832 | 7,821 |
Accrued compensation and benefits | 5,049 | 4,932 |
Other accrued expense | 4,937 | 4,573 |
Contract liabilities | 10,652 | 10,592 |
Total current liabilities | 26,470 | 27,918 |
Long-term pension liabilities | 14,365 | 14,275 |
Long-term operating lease liabilities | 18,529 | 19,181 |
Other post-employment benefits | 1,337 | 1,349 |
Other liabilities | 155 | 152 |
Total liabilities | 60,856 | 62,875 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value; Authorized 2,000,000 shares; none issued | ||
Treasury stock, Series A, at cost; 478,465 shares held at March 31, 2022 and December 31, 2021 | (13,443) | (13,443) |
Additional paid-in capital | 494,563 | 494,563 |
Accumulated other comprehensive loss | (32,276) | (32,406) |
Accumulated deficit | (409,695) | (406,195) |
Total shareholders’ equity | 39,207 | 42,577 |
Total liabilities and shareholders’ equity | 100,063 | 105,452 |
Series A [Member] | ||
Shareholders' equity: | ||
Common stock, $0.01 par value; Authorized 31,250,000 shares | 52 | 52 |
Series B [Member] | ||
Shareholders' equity: | ||
Common stock, $0.01 par value; Authorized 31,250,000 shares | $ 6 | $ 6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts receivable | $ 512 | $ 551 |
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 | 31,250,000 | 31,250,000 |
Series A [Member] | ||
Common stock, shares, issued | 5,216,045 | 5,216,045 |
Series B [Member] | ||
Common stock, shares, issued | 614,910 | 614,910 |
Treasury Stock [Member] | Series A [Member] | ||
Treasury stock Series A, shares held | 478,465 | 478,465 |
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] | Total | |
Beginning Balance at Dec. 31, 2020 | $ 233 | $ 494,389 | $ (13,443) | $ (32,468) | $ (402,303) | $ 46,408 | ||||
Beginning Balance, Shares at Dec. 31, 2020 | 5,213,710 | 617,245 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2020 | (478,465) | |||||||||
Net loss | (2,765) | (2,765) | ||||||||
Other comprehensive income (loss) | 360 | 360 | ||||||||
Conversion of Series B to Series A, shares | [1] | 20 | (20) | |||||||
Dividends declared ($0.16 per share) | [1] | (856) | (856) | |||||||
Ending Balance at Mar. 31, 2021 | 233 | 494,389 | (13,443) | (32,108) | (405,924) | 43,147 | ||||
Ending Balance, Shares at Mar. 31, 2021 | [1] | 5,213,730 | 617,225 | |||||||
Ending Balance, Shares Treasury Stock at Mar. 31, 2021 | [1] | (478,465) | ||||||||
Beginning Balance at Dec. 31, 2021 | 58 | 494,563 | (13,443) | (32,406) | (406,195) | 42,577 | ||||
Beginning Balance, Shares at Dec. 31, 2021 | 5,216,045 | 614,910 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2021 | (478,465) | |||||||||
Net loss | (2,644) | (2,644) | ||||||||
Other comprehensive income (loss) | 130 | 130 | ||||||||
Dividends declared ($0.16 per share) | (856) | (856) | ||||||||
Ending Balance at Mar. 31, 2022 | $ 58 | $ 494,563 | $ (13,443) | $ (32,276) | $ (409,695) | $ 39,207 | ||||
Ending Balance, Shares at Mar. 31, 2022 | 5,216,045 | 614,910 | ||||||||
Ending Balance, Shares Treasury Stock at Mar. 31, 2022 | (478,465) | |||||||||
[1] | Share and per share amounts have been retroactively adjusted to reflect the one-for-four reverse stock split effective June 8, 2021. See Note 1 – Basis of Presentation and Recently Issued Accounting Standards for additional information. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) | 3 Months Ended | |
Mar. 31, 2022$ / shares | Mar. 31, 2021$ / shares | |
Consolidated Statements of Shareholders' Equity [Abstract] | ||
Dividends declared per share | $ 0.16 | $ 0.16 |
Reverse stock split conversion ratio | 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net loss | $ (2,644) | $ (2,765) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation and amortization | 712 | 1,138 |
Net periodic pension and other post-employment expense (benefit) | 227 | (1,035) |
Bad debt expense | 31 | 211 |
Deferred income taxes | 25 | (15) |
Gain on sale/disposal of assets, net | (1) | |
Changes in working capital and other operating assets and liabilities: | ||
Accounts receivable | 3,223 | 848 |
Inventories, prepaids and other current assets | (837) | (1,924) |
Other assets | 3 | 391 |
Accounts payable | (1,989) | (378) |
Compensation and benefit obligations | 117 | (197) |
Other accrued expenses | 627 | 16 |
Contract liabilities | 60 | 864 |
Other post-employment benefits | (19) | (18) |
Net cash used for operating activities | (464) | (2,865) |
Investing Activities | ||
Purchases of assets | (227) | (163) |
Sales of assets | 1 | |
Net cash provided by (used for) investing activities | (227) | (162) |
Financing Activities | ||
Dividends paid | (856) | (856) |
Net cash used for financing activities | (856) | (856) |
Net decrease in cash and cash equivalents | (1,547) | (3,883) |
Cash and cash equivalents, beginning of period | 32,439 | 42,015 |
Cash and cash equivalents, end of period | 30,892 | 38,132 |
Supplemental Disclosures | ||
Income tax paid, net (refund) | (32) | 8 |
Dividends payable | $ 856 | $ 856 |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2022 | |
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. DallasNews Corporation, formerly A. H. Belo Corporation, and its subsidiaries are referred to collectively herein as “DallasNews” or the “Company.” DallasNews was formed in February 2008 through a spin-off from its former parent company and is registered on The Nasdaq Stock Market LLC (Nasdaq trading symbol: DALN). DallasNews is the Dallas-based holding company of The Dallas Morning News and Medium Giant. The Company operates The Dallas Morning News ( dallasnews.com ), Texas’ leading newspaper and winner of nine Pulitzer Prizes, and various niche publications targeting specific audiences. These operations generate revenue from sales of advertising within the Company’s newspaper and digital platforms, subscriptions and retail sales of its newspapers, commercial printing and distribution services primarily related to national newspapers, and preprint advertising. In addition, the Company has a full-service agency, Medium Giant, with capabilities including strategy, creative and media management with a focus on strategic and digital marketing, and data intelligence that provide a measurable return on investment to its clients. Name Change and Stock Exchange Listing. The Company transferred its stock exchange listing from the New York Stock Exchange (“NYSE”) to The Nasdaq Stock Market LLC (“Nasdaq”) and changed its corporate name to DallasNews Corporation. The listing and trading of the Company’s Series A common stock on the NYSE ceased trading at market close on June 28, 2021, and began trading on Nasdaq at market open on June 29, 2021, under the ticker symbol “DALN.” Reverse Stock Split. O n May 13, 2021, at the Company’s 2021 annual meeting of shareholders, its shareholders approved a reverse stock split at a ratio of not less than one-for-three and not more than one-for-five , with the exact ratio to be determined by the Company’s board of directors. Following the annual meeting, the Company’s board of directors approved a one-for-four reverse stock split of its issued, outstanding and treasury shares of common stock, par value $ 0.01 per share, which became effective June 8, 2021. As a result, every four shares of the Company’s issued and outstanding Series A common stock and Series B common stock (and any such shares held in treasury) were converted into one share of Series A common stock and Series B common stock, respectively. No fractional shares were issued in connection with the reverse stock split. The par value of the Series A and Series B common stock was not adjusted as a result of the reverse stock split and the Company reclassified an amount equal to the reduction in the number of Company shares at par value to additional paid-in capital. All issued and outstanding Series A and Series B common stock and per share amounts in the interim consolidated financial statements and footnotes included herein have been retroactively adjusted to reflect this reverse stock split for all periods presented. Share amounts retroactively adjusted to reflect the reverse stock split exclude 90 fractional shares of Series A common stock and 26 fractional shares of Series B common stock, which were settled in cash on June 9, 2021. COVID-19 Pandemic. Beginning in early 2020, the COVID-19 pandemic impacted, and may continue to impact, the Company’s customers, distribution partners, advertisers, production facilities, and third parties, and could result in additional loss of advertising revenue or supply chain disruption. Media was designated an essential business, therefore the Company’s operations have continued throughout the pandemic. The Company has been following the recommendations of local government and health authorities to minimize exposure risk for employees. Employees, including financial reporting staff, worked remotely since March 2020. Beginning in June 2021, the Company allowed its employees to return to the office on a voluntary basis and all employees returned to the office in the first quarter of 2022. If the pandemic were to affect a significant number of the workforce employed in printing operations, the Company may experience delays or be unable to produce, print and deliver its publications and other third-party print publications on a timely basis. The Company continues to evaluate for any future material impacts on its consolidated financial statements. 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 consolidated financial information as of and for the periods indicated in conformity with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim periods. All intercompany balances and transactions have been eliminated in consolidation. The Company consolidates its majority owned subsidiaries over which the Company exercises control. 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, 2021. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context indicates otherwise. Use of Estimates. The preparation of financial statements in conformity with 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. The COVID-19 pandemic has caused increased uncertainty in management’s estimates and assumptions affecting these interim consolidated financial statements. Areas where significant estimates are used include valuation allowances for doubtful accounts, fair value measurements, pension plan assets, pension and other post-employment benefit obligation assumptions, income taxes, leases, self-insured liabilities, and assumptions related to long-lived assets impairment review. Segment Presentation. Based on the Company’s structure and organizational chart, the Company’s chief operating decision-maker (the “CODM”) is its Chief Executive Officer, Robert W. Decherd. B ased on how the Company’s CODM makes decisions about allocating resources and assessing performance, the Company determined it has one reportable segment. 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 June 2016, the FASB issued Accounting Standards Update 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. Since June 2016, the FASB issued clarifying updates to the new standard including changing the effective date for smaller reporting companies. The guidance will be effective for fiscal years beginning after December 15, 2022, 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. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue [Abstract] | |
Revenue | Note 2: 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 the Company expects to be entitled to in exchange for those goods or services, typically at contract price or determined by stand-alone selling price. The Company has an estimated allowance for credits, refunds and similar obligations. 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. Credit terms are customary. The table below sets forth revenue disaggregated by revenue source. Three Months Ended March 31, 2022 2021 Advertising and Marketing Services Print advertising $ 10,597 $ 11,226 Digital advertising and marketing services 5,667 5,543 Total $ 16,264 $ 16,769 Circulation Print circulation $ 13,119 $ 13,976 Digital circulation 2,977 2,046 Total $ 16,096 $ 16,022 Printing, Distribution and Other $ 3,927 $ 4,024 Total Revenue $ 36,287 $ 36,815 Advertising and Marketing Services Print advertising is comprised of display, classified and preprint advertising revenue. Display revenue results from sales of advertising space within the Company’s core newspapers and niche publications to local, regional or national businesses with local operations, affiliates or resellers. Classified revenue, which includes automotive, real estate, employment, obituaries and other, results from sales of advertising space in the classified and other sections of the Company’s newspapers. Preprint revenue results from sales of preprinted advertisements or circulars inserted into the Company’s core newspapers, niche publications, and distributed to publications in other markets, or distributed by mail or third-party distributors to households in targeted areas in order to provide total market coverage for advertisers. The Company’s capabilities allow its advertisers to target preprint distribution selectively at the sub-zip code level in order to optimize coverage for the advertisers’ locations. Preprint advertising also includes other services revenue related to the Company’s niche publications. Digital advertising and marketing services revenue consists of strategic marketing management, consulting, creative services, targeted and multi-channel (programmatic) advertising placed on third-party websites, digital sales of banner, classified and native advertisements on the Company’s news and entertainment-related websites and mobile apps, social media management, search optimization, direct mail and the sale of promotional materials. 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. Barter advertising transactions are recognized at estimated fair value based on the negotiated contract price and the range of prices for similar advertising from customers unrelated to the barter transaction. The Company expenses barter costs as incurred, which is independent from the timing of revenue recognition. In addition, certain digital advertising revenue related to website access is recognized over time, based on the customers’ monthly rate. The Company typically extends credit to advertising and marketing services customers, although for certain advertising campaigns the customer may pay in advance. For ads placed on certain third-party websites, the Company must evaluate and use judgment to determine 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. The Company will record certain arrangements gross when it has latitude in establishing price or it determines the placement of the ads as a value added service to the customer. Circulation Print circulation revenue is generated primarily by selling home delivery subscriptions, including premium publications, and from single copy sales to non-subscribers. Home delivery revenue is recognized over the subscription period based on the days of actual delivery over the total subscription days and single copy revenue is recognized at a point in time when the paper is purchased. Revenue is directly reduced for any non-payment for the grace period of home delivery subscriptions where the Company recorded revenue for newspapers delivered after a subscription expired. Digital circulation revenue is generated by digital-only subscriptions and is recognized over the subscription period based on daily or monthly access to the content in the subscription period. Payment of circulation fees is typically received in advance and deferred over the subscription period. There is little judgment required for valuation or timing of circulation revenue recognition. Printing, Distribution and Other Printing, distribution and other revenue 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, which requires little judgment to determine. The Company typically extends credit to printing and distribution customers. Deferred Revenue Deferred revenue is recorded when cash payments are received in advance of the Company’s performance, including amounts which are refundable. The Company’s primary sources of deferred revenue are from circulation subscriptions and advertising paid in advance of the service provided. These up-front payments are recorded upon receipt as contract liabilities in the Consolidated Balance Sheets and the revenue is recognized when the Company’s obligations under the terms of the contract are satisfied . In the three months ended March 31, 2022, the Company recognized $ 7,151 of revenue that was included in the contract liabilities balance as of December 31, 2021. The Company typically recognizes deferred revenue within 1 to 12 months. 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, 2022 | |
Leases [Abstract] | |
Leases | Note 3: Leases 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’s leases have remaining terms of less than 1 year to 12 years. The Company determines if a contract is a lease at the inception of the arrangement. 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. I n determining the present value of lease payments, 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. Lease expense is recognized on a straight-line basis over the lease term and variable lease costs are expensed as incurred. For leases with terms of 12 months or less, no asset or liability is recorded and lease expense is recognized on a straight-line basis over the lease term. 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 recognized right-of-use assets and lease liabilities as calculated do not assume renewal options. The Company does not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants. Additionally, the Company does not separately identify lease and nonlease components, such as maintenance costs. The Company subleases office space to the Denton Publishing Company and additional office space in Dallas, Texas, both with a remaining lease term of approximately two 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. Sublease income is included in printing, distribution and other revenue in the Consolidated Statements of Operations. As of March 31, 2022, sublease income is expected to approximate $ 840 for the remainder of 2022, $ 600 in 2023, and $ 5 in 2024. As of March 31, 2022, the Company did not have any significant 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, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 16,982 $ 17,648 Liabilities Operating Current Other accrued expense $ 2,385 $ 2,430 Noncurrent Long-term operating lease liabilities 18,529 19,181 Total lease liabilities $ 20,914 $ 21,611 Lease Term and Discount Rate Operating leases Weighted average remaining lease term (years) 10.1 10.2 Weighted average discount rate (%) 7.5 7.5 The table below sets forth components of lease cost and supplemental cash flow information for the Company’s leases. Three Months Ended March 31, 2022 2021 Lease Cost Operating lease cost $ 1,062 $ 1,075 Short-term lease cost 8 4 Variable lease cost 177 179 Sublease income ( 337 ) ( 237 ) Total lease cost $ 910 $ 1,021 Supplemental Cash Flow Information Cash paid for operating leases included in operating activities $ 1,090 $ 1,075 The table below sets forth the remaining maturities of the Company’s lease liabilities as of March 31, 2022. Years Ending December 31, Operating Leases 2022 $ 2,862 2023 3,325 2024 2,467 2025 2,430 2026 2,476 Thereafter 17,215 Total lease payments 30,775 Less: imputed interest 9,861 Total lease liabilities $ 20,914 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4: Income Taxes T he Company calculated the income tax provision for the 2022 and 2021 interim periods using an estimated annual effective tax rate based on its expected annual loss before income taxes, adjusted for permanent differences, which it applied to the year-to-date loss before income taxes and specific events that are discretely recognized as they occur. The Company recognized an income tax provision of $ 184 and $ 319 for the three months ended March 31, 2022 and 2021, respectively. The income tax provision for the three months ended March 31, 2022 and 2021, was due to the effect of the Texas franchise tax. Effective income tax rates were ( 7.5 ) percent and ( 13.0 ) percent for the three months ended March 31, 2022 and 2021, respectively. The Consolidated Appropriations Act, 2021, which includes the COVID-related Tax Relief Act of 2020 and the Taxpayer Certainty and Disaster Tax Relief Act of 2020, was passed and signed into law the last week of 2020. Among others, the provisions in this act included items such as guidance on expenses associated with forgiven Paycheck Protection Program loans, business meals deductions, individual tax rebates and unemployment benefits. The Company did not avail itself of any of the items contained in this act. In addition, the American Rescue Plan Act of 2021 (the “ARP Act”), was passed and signed into law on March 11, 2021, and was designed to speed up the United States’ economic recovery. The ARP Act contains many provisions, including direct cash payments to eligible taxpayers below specified income limits, extended unemployment insurance benefits, additional relief designed to prevent layoffs and business closures at small businesses, and pension relief provisions. The pension relief provisions include extending the interest rate relief passed in previous years, permanently adding a floor to funding interest rates, and permanently changing the amortization period for pension underfunding from 7 to 15 years. All provisions are required to be effective for plan years beginning in 2022, but plan sponsors can elect certain provisions to apply to plan years beginning as early as 2019. The Company benefited from the shortfall amortization relief provisions and the segment interest rate relief provisions contained in the ARP Act effective for the 2020 plan year. |
Pension and Other Retirement Pl
Pension and Other Retirement Plans | 3 Months Ended |
Mar. 31, 2022 | |
Pension and Other Retirement Plans [Abstract] | |
Pension and Other Retirement Plans | Note 5: Pension and Other Retirement Plans Defined Benefit Plans. The Company sponsors the DallasNews Corporation Pension Plans (the “Pension Plans”), formerly the A. H. Belo Pension Plans, which provide benefits to approximately 1,350 current and former employees of the Company. DallasNews Pension Plan I provides benefits to certain current and former employees primarily employed with The Dallas Morning News or the DallasNews corporate offices. DallasNews 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 DallasNews Pension Plans, as future benefits were frozen. No contributions are required to the DallasNews Pension Plans in 2022 under the applicable tax and labor laws governing pension plan funding. Net Periodic Pension Expense (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. Participation in and accrual of new benefits to participants has been frozen since 2007 and, accordingly, on-going service costs are not a component of net periodic pension expense (benefit). For 2022, b ased on the re-allocation of the Pension Plans’ assets, the Company assumed a lower rate of return on the assets resulting in net periodic pension expense. The table below sets forth components of net periodic pension expense (benefit), which are included in other income, net in the Consolidated Statements of Operations. Three Months Ended March 31, 2022 2021 Interest cost $ 1,328 $ 1,174 Expected return on plans' assets ( 1,237 ) ( 2,574 ) Amortization of actuarial loss 131 361 Net periodic pension expense (benefit) $ 222 $ ( 1,039 ) Defined Contribution Plans. The DallasNews Savings Plan (the “Savings Plan”), a defined contribution 401(k) plan, covers substantially all employees of DallasNews. 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. Aggregate expense for matching contributions to the Savings Plan was $ 212 and $ 220 for the three months ended March 31, 2022 and 2021, respectively. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 6: Shareholders’ Equity Reverse Stock Split. T he Company’s board of directors approved a one-for-four reverse stock split of its issued, outstanding and treasury shares of common stock, par value $ 0.01 per share, which became effective June 8, 2021. All share and per share amounts have been retroactively adjusted to reflect the one-for-four reverse stock split effective June 8, 2021. See Note 1 – Basis of Presentation and Recently Issued Accounting Standards for additional information. Dividends. On March 3, 2022 , the Company’s board of directors declared a $ 0.16 per share dividend to shareholders of record as of the close of business on May 13, 2022 , which is payable on June 3, 2022 . Outstanding Shares. The Company had Series A and Series B common stock outstanding of 4,737,580 and 614,910 , respectively, net of treasury shares at March 31, 2022 and December 31, 2021. Accumulated Other Comprehensive Loss. Accumulated other comprehensive loss consists of actuarial gains and losses attributable to the DallasNews 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 other income, net in its Consolidated Statements of Operations. Gains and losses are amortized over the weighted average remaining life expectancy of the OPEB plans and Pension Plans’ participants. 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 March 31, 2022 2021 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ ( 32,406 ) $ ( 32,485 ) $ 79 $ ( 32,468 ) $ ( 32,571 ) $ 103 Amortization 130 131 ( 1 ) 360 361 ( 1 ) Balance, end of period $ ( 32,276 ) $ ( 32,354 ) $ 78 $ ( 32,108 ) $ ( 32,210 ) $ 102 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 7: Earnings Per Share The table below sets forth the net loss available to common shareholders 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, 2022 2021 Earnings (Numerator) Net loss available to common shareholders $ ( 2,644 ) $ ( 2,765 ) Shares (Denominator) Weighted average common shares outstanding (basic and diluted) (1) 5,352,490 5,352,490 Loss Per Share Basic and diluted (1) $ ( 0.49 ) $ ( 0.52 ) (1) Share and per share amounts have been retroactively adjusted to reflect the one-for-four reverse stock split effective June 8, 2021. See Note 1 – Basis of Presentation and Recently Issued Accounting Standards for additional information. There were no options or RSUs outstanding as of March 31, 2022 and 2021, that would result in dilution of shares or the calculation of EPS under the two-class method as prescribed under ASC 260 – Earnings Per Share . |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Contingencies [Abstract] | |
Contingencies | Note 8: 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 DallasNews’ results of operations, liquidity or financial condition. |
Disposal of Assets
Disposal of Assets | 3 Months Ended |
Mar. 31, 2022 | |
Disposal of Assets [Abstract] | |
Disposal of Assets | Note 9: Disposal of Assets In May 2019, the Company finalized a Purchase and Sale Agreement with Charter DMN Holdings, LP (the “Purchaser”) for the sale of the real estate assets in downtown Dallas, Texas, previously used as the Company’s headquarters for a sale price of $ 28,000 and a pretax gain of $ 25,908 . The sale price consisted of $ 4,597 cash received, after selling costs of approximately $ 1,000 , and a two year seller-financed promissory note of $ 22,400 (the “Promissory Note”), included in current notes receivable in the Consolidated Balance Sheets . The sale provided the Company an additional $ 1,000 contingency payment if certain conditions were met. The contingency expired in June 2020, with no payment made by the Purchaser related to the contingency. The Promissory Note is secured by a first lien deed of trust covering the property and bears interest payable in quarterly installments that began on July 1, 2019, continuing through its maturity on June 30, 2021, and includes a pre-payment feature. Interest will be accrued at 3.5 percent during the first year and at 4.5 percent during the second year. As a direct result of COVID-19 uncertainties, o n April 3, 2020, the Company and the Purchaser entered into an amendment to the Promissory Note deferring the Purchaser’s interest payment of $ 195 that was due April 1, 2020, and adding it to a second promissory note (the “Second Promissory Note”). In addition, the Second Promissory Note included a 2019 real property tax reconciliation payment due from the Purchaser under the Purchase and Sale Agreement in the amount of $ 180 . The Second Promissory Note, in the principal amount of $ 375 , was secured by a second lien deed of trust covering the property and was due June 30, 2021 . On June 29, 2021, the Company’s board of directors approved a second amendment and extension of the maturity date of the Promissory Note to June 30, 2022 (the “Second Modification Agreement”), effective June 30, 2021. In connection with the Second Modification Agreement, the Purchaser paid the Second Promissory Note in full. The unpaid, original principal balance of the Promissory Note will continue to bear interest at the rate of 4.5 percent, with interest payable quarterly through June 30, 2022, the maturity date of the Promissory Note. The Promissory Note continues to be secured by a first priority lien on the property. In the three months ended March 31, 2022 and 2021, the Company recorded $ 249 of interest income related to the promissory notes, included in other income, net in the Consolidated Statements of Operations. The Company evaluated the collectability of the note as a result of the Purchaser’s request to extend the maturity date of the Promissory Note and the continuation of the pandemic. Management believes as of March 31, 2022, the Promissory Note is recoverable since the Purchaser is in compliance with the terms, is publicly indicating its intent to develop the property, and management believes that the value of the collateral has not decreased from the sale date. In addition, on April 1, 2022, the Purchaser paid the first quarter 2022 interest payment of $ 249 due under the Second Modification Agreement. The timing in general of commercial development may have been impacted by the pandemic, and thus capital constraints in commercial real estate markets may exist. Management continues to closely monitor the collectability of the Promissory Note and the value of the underlying collateral. Continued economic and other effects of the pandemic could impact the timing of payment or realization of the note. Notes receivable are recorded net of an allowance for doubtful accounts. Interest income is accrued on the unpaid principal balance, included in accounts receivable in the Consolidated Balance Sheets. The Company puts notes receivable on non-accrual status and provides an allowance against accrued interest if it is determined the likelihood of collecting substantially all of the note and accrued interest is not probable. Notes are written-off against the allowance when all possible means of collection have been exhausted and the potential for recovery is considered remote. As of March 31, 2022 and December 31, 2021, there was no allowance recorded for the notes receivable or accrued interest receivable. |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Standards (Policy) | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation and Recently Issued Accounting Standards [Abstract] | |
Description of Business, Policy | Description of Business. DallasNews Corporation, formerly A. H. Belo Corporation, and its subsidiaries are referred to collectively herein as “DallasNews” or the “Company.” DallasNews was formed in February 2008 through a spin-off from its former parent company and is registered on The Nasdaq Stock Market LLC (Nasdaq trading symbol: DALN). DallasNews is the Dallas-based holding company of The Dallas Morning News and Medium Giant. The Company operates The Dallas Morning News ( dallasnews.com ), Texas’ leading newspaper and winner of nine Pulitzer Prizes, and various niche publications targeting specific audiences. These operations generate revenue from sales of advertising within the Company’s newspaper and digital platforms, subscriptions and retail sales of its newspapers, commercial printing and distribution services primarily related to national newspapers, and preprint advertising. In addition, the Company has a full-service agency, Medium Giant, with capabilities including strategy, creative and media management with a focus on strategic and digital marketing, and data intelligence that provide a measurable return on investment to its clients. Name Change and Stock Exchange Listing. The Company transferred its stock exchange listing from the New York Stock Exchange (“NYSE”) to The Nasdaq Stock Market LLC (“Nasdaq”) and changed its corporate name to DallasNews Corporation. The listing and trading of the Company’s Series A common stock on the NYSE ceased trading at market close on June 28, 2021, and began trading on Nasdaq at market open on June 29, 2021, under the ticker symbol “DALN.” |
Reverse Stock Split, Policy | Reverse Stock Split. O n May 13, 2021, at the Company’s 2021 annual meeting of shareholders, its shareholders approved a reverse stock split at a ratio of not less than one-for-three and not more than one-for-five , with the exact ratio to be determined by the Company’s board of directors. Following the annual meeting, the Company’s board of directors approved a one-for-four reverse stock split of its issued, outstanding and treasury shares of common stock, par value $ 0.01 per share, which became effective June 8, 2021. As a result, every four shares of the Company’s issued and outstanding Series A common stock and Series B common stock (and any such shares held in treasury) were converted into one share of Series A common stock and Series B common stock, respectively. No fractional shares were issued in connection with the reverse stock split. The par value of the Series A and Series B common stock was not adjusted as a result of the reverse stock split and the Company reclassified an amount equal to the reduction in the number of Company shares at par value to additional paid-in capital. All issued and outstanding Series A and Series B common stock and per share amounts in the interim consolidated financial statements and footnotes included herein have been retroactively adjusted to reflect this reverse stock split for all periods presented. Share amounts retroactively adjusted to reflect the reverse stock split exclude 90 fractional shares of Series A common stock and 26 fractional shares of Series B common stock, which were settled in cash on June 9, 2021. |
COVID-19 Pandemic, Policy | COVID-19 Pandemic. Beginning in early 2020, the COVID-19 pandemic impacted, and may continue to impact, the Company’s customers, distribution partners, advertisers, production facilities, and third parties, and could result in additional loss of advertising revenue or supply chain disruption. Media was designated an essential business, therefore the Company’s operations have continued throughout the pandemic. The Company has been following the recommendations of local government and health authorities to minimize exposure risk for employees. Employees, including financial reporting staff, worked remotely since March 2020. Beginning in June 2021, the Company allowed its employees to return to the office on a voluntary basis and all employees returned to the office in the first quarter of 2022. If the pandemic were to affect a significant number of the workforce employed in printing operations, the Company may experience delays or be unable to produce, print and deliver its publications and other third-party print publications on a timely basis. The Company continues to evaluate for any future material impacts on its consolidated financial statements. |
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 consolidated financial information as of and for the periods indicated in conformity with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim periods. All intercompany balances and transactions have been eliminated in consolidation. The Company consolidates its majority owned subsidiaries over which the Company exercises control. 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, 2021. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context indicates otherwise. |
Use of Estimates, Policy | Use of Estimates. The preparation of financial statements in conformity with 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. The COVID-19 pandemic has caused increased uncertainty in management’s estimates and assumptions affecting these interim consolidated financial statements. Areas where significant estimates are used include valuation allowances for doubtful accounts, fair value measurements, pension plan assets, pension and other post-employment benefit obligation assumptions, income taxes, leases, self-insured liabilities, and assumptions related to long-lived assets impairment review. |
Segment Presentation, Policy | Segment Presentation. Based on the Company’s structure and organizational chart, the Company’s chief operating decision-maker (the “CODM”) is its Chief Executive Officer, Robert W. Decherd. B ased on how the Company’s CODM makes decisions about allocating resources and assessing performance, the Company determined it has one reportable segment. |
New Accounting Pronouncements, Policy | 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 June 2016, the FASB issued Accounting Standards Update 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. Since June 2016, the FASB issued clarifying updates to the new standard including changing the effective date for smaller reporting companies. The guidance will be effective for fiscal years beginning after December 15, 2022, 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, 2022 | |
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, 2022 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity, Policy | Accumulated Other Comprehensive Loss. Accumulated other comprehensive loss consists of actuarial gains and losses attributable to the DallasNews 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 other income, net in its Consolidated Statements of Operations. Gains and losses are amortized over the weighted average remaining life expectancy of the OPEB plans and Pension Plans’ participants. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue [Abstract] | |
Disaggregated By Revenue Source | Three Months Ended March 31, 2022 2021 Advertising and Marketing Services Print advertising $ 10,597 $ 11,226 Digital advertising and marketing services 5,667 5,543 Total $ 16,264 $ 16,769 Circulation Print circulation $ 13,119 $ 13,976 Digital circulation 2,977 2,046 Total $ 16,096 $ 16,022 Printing, Distribution and Other $ 3,927 $ 4,024 Total Revenue $ 36,287 $ 36,815 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Consolidated Balance Sheet Information for Leases | Classification March 31, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 16,982 $ 17,648 Liabilities Operating Current Other accrued expense $ 2,385 $ 2,430 Noncurrent Long-term operating lease liabilities 18,529 19,181 Total lease liabilities $ 20,914 $ 21,611 Lease Term and Discount Rate Operating leases Weighted average remaining lease term (years) 10.1 10.2 Weighted average discount rate (%) 7.5 7.5 |
Schedule of Components of Lease Cost and Supplemental Cash Flow Information for Leases | Three Months Ended March 31, 2022 2021 Lease Cost Operating lease cost $ 1,062 $ 1,075 Short-term lease cost 8 4 Variable lease cost 177 179 Sublease income ( 337 ) ( 237 ) Total lease cost $ 910 $ 1,021 Supplemental Cash Flow Information Cash paid for operating leases included in operating activities $ 1,090 $ 1,075 |
Schedule of Remaining Maturities of Lease Liabilities | Years Ending December 31, Operating Leases 2022 $ 2,862 2023 3,325 2024 2,467 2025 2,430 2026 2,476 Thereafter 17,215 Total lease payments 30,775 Less: imputed interest 9,861 Total lease liabilities $ 20,914 |
Pension and Other Retirement _3
Pension and Other Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Pension and Other Retirement Plans [Abstract] | |
Schedule of Net Periodic Pension Benefit | Three Months Ended March 31, 2022 2021 Interest cost $ 1,328 $ 1,174 Expected return on plans' assets ( 1,237 ) ( 2,574 ) Amortization of actuarial loss 131 361 Net periodic pension expense (benefit) $ 222 $ ( 1,039 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Three Months Ended March 31, 2022 2021 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ ( 32,406 ) $ ( 32,485 ) $ 79 $ ( 32,468 ) $ ( 32,571 ) $ 103 Amortization 130 131 ( 1 ) 360 361 ( 1 ) Balance, end of period $ ( 32,276 ) $ ( 32,354 ) $ 78 $ ( 32,108 ) $ ( 32,210 ) $ 102 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | Three Months Ended March 31, 2022 2021 Earnings (Numerator) Net loss available to common shareholders $ ( 2,644 ) $ ( 2,765 ) Shares (Denominator) Weighted average common shares outstanding (basic and diluted) (1) 5,352,490 5,352,490 Loss Per Share Basic and diluted (1) $ ( 0.49 ) $ ( 0.52 ) (1) Share and per share amounts have been retroactively adjusted to reflect the one-for-four reverse stock split effective June 8, 2021. See Note 1 – Basis of Presentation and Recently Issued Accounting Standards for additional information. |
Basis of Presentation and Rec_3
Basis of Presentation and Recently Issued Accounting Standards (Narrative) (Details) | Jun. 08, 2021$ / sharesshares | May 13, 2021 | Mar. 31, 2022$ / sharesshares | Dec. 31, 2021$ / shares |
Basis of Presentation and Recently Issued Accounting Standards | ||||
Reverse stock split at a ratio, description | On May 13, 2021, at the Company’s 2021 annual meeting of shareholders, its shareholders approved a reverse stock split at a ratio of not less than one-for-three and not more than one-for-five, with the exact ratio to be determined by the Company’s board of directors. | |||
Reverse stock split conversion ratio | 0.25 | 0.25 | ||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Reverse Stock Split [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Number of common stock outstanding combined into one share | 4 | |||
Reverse Stock Split [Member] | Series A [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Fractional shares excluded from share amounts retroactively adjusted to reflect reverse stock split | 90 | |||
Reverse Stock Split [Member] | Series B [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Fractional shares excluded from share amounts retroactively adjusted to reflect reverse stock split | 26 | |||
Minimum | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Reverse stock split conversion ratio | 0.33 | |||
Maximum | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Reverse stock split conversion ratio | 0.20 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, revenue recognized | $ 7,151 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation expected timing of revenue recognition | 1 month |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation expected timing of revenue recognition | 12 months |
Revenue (Disaggregated by Reven
Revenue (Disaggregated by Revenue Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 36,287 | $ 36,815 |
Print Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10,597 | 11,226 |
Digital Advertising and Marketing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,667 | 5,543 |
Advertising And Marketing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 16,264 | 16,769 |
Print Circulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,119 | 13,976 |
Digital Circulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,977 | 2,046 |
Circulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 16,096 | 16,022 |
Printing, Distribution And Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,927 | $ 4,024 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Operating lease assets | $ 16,982,000 | $ 17,648,000 |
Operating lease liabilities | 20,914,000 | $ 21,611,000 |
Leases with terms of 12 months or less [Member] | ||
Operating lease assets | 0 | |
Operating lease liabilities | $ 0 | |
Office Space Subleases [Member] | ||
Operating leases remaining terms | 2 years | |
Sublease [Member] | ||
Sublease income expected for the remainder of 2022 | $ 840,000 | |
Sublease income expected in 2023 | 600,000 | |
Sublease income expected in 2024 | $ 5,000 | |
Minimum | ||
Operating lease term | 1 year | |
Operating leases remaining terms | 1 year | |
Minimum | Distributors Sublease [Member] | ||
Operating leases remaining terms | 1 year | |
Maximum | ||
Operating leases remaining terms | 12 years | |
Maximum | Distributors Sublease [Member] | ||
Operating leases remaining terms | 2 years |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Consolidated Balance Sheet Information for Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 16,982 | $ 17,648 |
Operating lease liabilities current | 2,385 | 2,430 |
Operating lease liabilities noncurrent | 18,529 | 19,181 |
Total lease liabilities | $ 20,914 | $ 21,611 |
Operating leases weighted average remaining lease term (years) | 10 years 1 month 6 days | 10 years 2 months 12 days |
Operating leases weighted average discount rate | 7.50% | 7.50% |
Leases (Schedule of Components
Leases (Schedule of Components of Lease Cost and Supplemental Cash Flow Information for Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 1,062 | $ 1,075 |
Short-term lease cost | 8 | 4 |
Variable lease cost | 177 | 179 |
Sublease income | (337) | (237) |
Total lease cost | 910 | 1,021 |
Cash paid for operating leases included in operating activities | $ 1,090 | $ 1,075 |
Leases (Schedule of Remaining M
Leases (Schedule of Remaining Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 2,862 | |
2023 | 3,325 | |
2024 | 2,467 | |
2025 | 2,430 | |
2026 | 2,476 | |
Thereafter | 17,215 | |
Total lease payments | 30,775 | |
Less: imputed interest | 9,861 | |
Total lease liabilities | $ 20,914 | $ 21,611 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax [Line Items] | ||
Income tax provision | $ 184 | $ 319 |
Effective income tax rate | (7.50%) | (13.00%) |
Minimum | ||
Income Tax [Line Items] | ||
Amortization period for pension underfunding | 7 years | |
Maximum | ||
Income Tax [Line Items] | ||
Amortization period for pension underfunding | 15 years |
Pension and Other Retirement _4
Pension and Other Retirement Plans (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)employee | Mar. 31, 2021USD ($) | |
Defined Contribution Plans | ||
Expense recognized | $ 212,000 | $ 220,000 |
401(K) plan | ||
Defined Contribution Plans | ||
Maximum pretax contribution per employee | 100.00% | |
Defined contribution plan, employer matching contribution, percent | 1.50% | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of employee participants | employee | 1,350 | |
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, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1,328 | $ 1,174 |
Expected return on plans' assets | (1,237) | (2,574) |
Amortization of actuarial loss | 131 | 361 |
Net periodic pension expense (benefit) | $ 222 | $ (1,039) |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | Mar. 03, 2022$ / shares | Jun. 08, 2021$ / shares | Mar. 31, 2022$ / sharesshares | Dec. 31, 2021$ / sharesshares |
Shareholders' Equity [Line Items] | ||||
Reverse stock split conversion ratio | 0.25 | 0.25 | ||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Dividends payable, amount per share | $ / shares | $ 0.16 | |||
Dividends payable, date declared | Mar. 3, 2022 | |||
Dividends payable, date of record | May 13, 2022 | |||
Dividends payable, date of payment | Jun. 3, 2022 | |||
Series A [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Common stock, shares, outstanding | shares | 4,737,580 | 4,737,580 | ||
Series B [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Common stock, shares, outstanding | shares | 614,910 | 614,910 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ (32,406) | $ (32,468) |
Amortization | 130 | 360 |
Balance, end of period | (32,276) | (32,108) |
Pension Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (32,485) | (32,571) |
Amortization | 131 | 361 |
Balance, end of period | (32,354) | (32,210) |
Other Post-Employment Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 79 | 103 |
Amortization | (1) | (1) |
Balance, end of period | $ 78 | $ 102 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share Reconciliation) (Details) $ / shares in Units, $ in Thousands | Jun. 08, 2021 | Mar. 31, 2022USD ($)$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | |
Earnings Per Share [Abstract] | ||||
Net loss available to common shareholders | $ | $ (2,644) | $ (2,765) | ||
Shares (Denominator) | ||||
Weighted average common shares outstanding (basic and diluted) | shares | [1] | 5,352,490 | 5,352,490 | |
Loss Per Share | ||||
Basic and diluted | $ / shares | [1] | $ (0.49) | $ (0.52) | |
Reverse stock split conversion ratio | 0.25 | 0.25 | ||
[1] | Share and per share amounts have been retroactively adjusted to reflect the one-for-four reverse stock split effective June 8, 2021. See Note 1 – Basis of Presentation and Recently Issued Accounting Standards for additional information. |
Disposal of Assets (Narrative)
Disposal of Assets (Narrative) (Details) - USD ($) | Apr. 01, 2022 | Jun. 29, 2021 | Apr. 03, 2020 | May 31, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from sale of assets | $ 1,000 | ||||||||
Gain on sale/disposal of assets, net | 1,000 | ||||||||
Current notes receivable | $ 22,400,000 | $ 22,400,000 | |||||||
Charter DMN Holdings, LP [Member] | Dallas, Texas [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Sale of real estate assets, amount | $ 28,000,000 | ||||||||
Proceeds from sale of assets | 4,597,000 | ||||||||
Real estate assets selling costs | $ 1,000,000 | ||||||||
Notes receivable term | 2 years | ||||||||
Long-term note receivable | $ 22,400,000 | ||||||||
Additional contingency payment receivable if certain conditions are met | 1,000,000 | ||||||||
Gain on sale/disposal of assets, net | $ 25,908,000 | ||||||||
Interest rate on promissory note during first year | 3.50% | ||||||||
Interest rate on promissory note during second year | 4.50% | ||||||||
Interest rate on unpaid original principal balance of Promissory Note | 4.50% | ||||||||
Interest income | $ 249,000 | $ 249,000 | |||||||
Allowance for notes receivable | $ 0 | $ 0 | |||||||
Charter DMN Holdings, LP [Member] | Dallas, Texas [Member] | Subsequent Event [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Interest income | $ 249,000 | ||||||||
Second Promissory Note [Member] | Charter DMN Holdings, LP [Member] | Dallas, Texas [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Current notes receivable | $ 375,000 | ||||||||
Note receivable, due date | Jun. 30, 2021 | ||||||||
Second Promissory Note [Member] | Charter DMN Holdings, LP [Member] | Dallas, Texas [Member] | Deferred Purchaser's Interest Payment [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Current notes receivable | $ 195,000 | ||||||||
Second Promissory Note [Member] | Charter DMN Holdings, LP [Member] | Dallas, Texas [Member] | 2019 Real Property Tax Reconciliation Payment Due from Purchaser [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Current notes receivable | $ 180,000 |