Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 06, 2023 | Jun. 30, 2022 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
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 | 977-8869 | ||
Title of 12(b) Security | Series A Common Stock, $0.01 par value | ||
Trading Symbol | DALN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 29,518,354 | ||
Entity Central Index Key | 0001413898 | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Selected designated portions of the registrant’s definitive proxy statement, relating to the Annual Meeting of Shareholders to be held on May 11, 2023, are incorporated by reference into Parts II and III of this Annual Report. | ||
Auditor Firm ID | 248 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Dallas, Texas | ||
Series A [Member] | |||
Entity Common Stock, Shares Outstanding | 4,737,772 | ||
Series B [Member] | |||
Entity Common Stock, Shares Outstanding | 614,718 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Operating Revenue: | ||
Total net operating revenue | $ 150,651 | $ 154,374 |
Operating Costs and Expense: | ||
Employee compensation and benefits | 67,096 | 69,078 |
Other production, distribution and operating costs | 78,638 | 81,041 |
Newsprint, ink and other supplies | 11,035 | 9,878 |
Depreciation | 2,709 | 4,002 |
Amortization | 64 | |
Loss on sale/disposal of assets, net | 58 | 29 |
Asset impairments | 102 | 232 |
Total operating costs and expense | 159,638 | 164,324 |
Operating loss | (8,987) | (9,950) |
Other income (loss), net | (241) | 7,332 |
Loss Before Income Taxes | (9,228) | (2,618) |
Income tax provision (benefit) | 558 | (2,151) |
Net Loss | $ (9,786) | $ (467) |
Per Share Basis, Basic | ||
Net loss Basic | $ (1.83) | $ (0.09) |
Number of common shares used in the per share calculation: | ||
Basic | 5,352,490 | 5,352,490 |
Advertising And Marketing Services [Member] | ||
Net Operating Revenue: | ||
Total net operating revenue | $ 69,667 | $ 73,271 |
Circulation [Member] | ||
Net Operating Revenue: | ||
Total net operating revenue | 65,191 | 64,943 |
Printing, Distribution And Other [Member] | ||
Net Operating Revenue: | ||
Total net operating revenue | $ 15,793 | $ 16,160 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net Loss | $ (9,786) | $ (467) |
Other Comprehensive Income (Loss), Net of Tax: | ||
Amortization of actuarial losses | 522 | 1,440 |
Actuarial losses | (9,496) | (1,378) |
Total other comprehensive income (loss), net of tax | (8,974) | 62 |
Total Comprehensive Loss | $ (18,760) | $ (405) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 27,825 | $ 32,439 |
Accounts receivable (net of allowance of $490 and $551 at December 31, 2022 and 2021, respectively) | 14,023 | 16,012 |
Notes receivable | 22,400 | |
Inventories | 2,725 | 2,192 |
Prepaids and other current assets | 3,352 | 3,485 |
Total current assets | 47,925 | 76,528 |
Property, plant and equipment, at cost | 313,440 | 312,979 |
Less accumulated depreciation | (306,002) | (304,157) |
Property, plant and equipment, net | 7,438 | 8,822 |
Operating lease right-of-use assets | 14,811 | 17,648 |
Deferred income taxes, net | 282 | 257 |
Other assets | 1,809 | 2,197 |
Total assets | 72,265 | 105,452 |
Current liabilities: | ||
Accounts payable | 5,041 | 7,821 |
Accrued compensation and benefits | 4,154 | 4,932 |
Other accrued expense | 4,060 | 4,573 |
Contract liabilities | 9,504 | 10,592 |
Total current liabilities | 22,759 | 27,918 |
Long-term pension liabilities | 19,455 | 14,275 |
Long-term operating lease liabilities | 16,546 | 19,181 |
Other post-employment benefits | 982 | 1,349 |
Other liabilities | 160 | 152 |
Total liabilities | 59,902 | 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 December 31, 2022 and 2021 | (13,443) | (13,443) |
Additional paid-in capital | 494,563 | 494,563 |
Accumulated other comprehensive loss | (41,380) | (32,406) |
Accumulated deficit | (427,435) | (406,195) |
Total shareholders’ equity | 12,363 | 42,577 |
Total liabilities and shareholders’ equity | 72,265 | 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts receivable | $ 490 | $ 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 | 5,216,237 | 5,216,045 |
Series B [Member] | ||
Common stock, shares, issued | 614,718 | 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 | (467) | (467) | |||||||
Other comprehensive income (loss) | 62 | 62 | |||||||
Conversion of Series B to Series A, shares | 2,335 | (2,335) | |||||||
Dividends declared | (3,425) | (3,425) | |||||||
Fractional shares paid out related to the reverse stock split | (1) | (1) | |||||||
Reduction of shares at par value related to the reverse stock split | (175) | 175 | |||||||
Ending Balance at Dec. 31, 2021 | 58 | 494,563 | (13,443) | (32,406) | (406,195) | 42,577 | |||
Ending Balance, Shares at Dec. 31, 2021 | 5,216,045 | 614,910 | |||||||
Ending Balance, Shares Treasury Stock at Dec. 31, 2021 | (478,465) | ||||||||
Net Loss | (9,786) | (9,786) | |||||||
Other comprehensive income (loss) | (8,974) | (8,974) | |||||||
Conversion of Series B to Series A, shares | 192 | (192) | |||||||
Dividends declared | (11,454) | (11,454) | |||||||
Ending Balance at Dec. 31, 2022 | $ 58 | $ 494,563 | $ (13,443) | $ (41,380) | $ (427,435) | $ 12,363 | |||
Ending Balance, Shares at Dec. 31, 2022 | 5,216,237 | 614,718 | |||||||
Ending Balance, Shares Treasury Stock at Dec. 31, 2022 | (478,465) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Shareholders' Equity [Abstract] | ||
Dividends declared per share | $ 2.14 | $ 0.64 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | ||
Net loss | $ (9,786) | $ (467) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation and amortization | 2,709 | 4,066 |
Net periodic costs and contributions related to employee benefit plans | (4,090) | (4,141) |
Bad debt expense | 307 | 184 |
Deferred income taxes | (25) | (180) |
Provision, interest and penalties for uncertain tax positions | 9 | (3,025) |
Loss on sale/disposal of assets, net | 58 | 29 |
Asset impairments | 102 | 232 |
Changes in working capital and other operating assets and liabilities: | ||
Accounts receivable | 1,682 | 366 |
Inventories, prepaids and other current assets | (400) | 1,077 |
Other assets | 388 | 407 |
Accounts payable | (2,780) | 62 |
Compensation and benefit obligations | (778) | (822) |
Other accrued expenses | (170) | (1,179) |
Contract liabilities | (1,088) | (2,304) |
Other post-employment benefits | (71) | (65) |
Net cash used for operating activities | (13,933) | (5,760) |
Investing Activities | ||
Purchases of assets | (1,627) | (767) |
Sales of assets | 2 | |
Note payment received for asset sales | 22,400 | 375 |
Net cash provided by (used for) investing activities | 20,773 | (390) |
Financing Activities | ||
Dividends paid | (11,454) | (3,425) |
Fractional share payments related to the reverse stock split | (1) | |
Net cash used for financing activities | (11,454) | (3,426) |
Net decrease in cash and cash equivalents | (4,614) | (9,576) |
Cash and cash equivalents, beginning of period | 32,439 | 42,015 |
Cash and cash equivalents, end of period | $ 27,825 | $ 32,439 |
Significant Accounting Policies
Significant Accounting Policies and Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies and Recently Issued Accounting Standards | |
Significant Accounting Policies and Recently Issued Accounting Standards | Note 1: Significant Accounting Policies 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. Employees. As of December 31, 2022, the Company had 663 employees of which approximately 21 percent were represented by a labor union. The Company is in the process of finalizing an initial collective bargaining agreement. While there have not been any operational disruptions to date, the Company cannot predict the timing or outcome of these negotiations. 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. In May , 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. All fractional shares were settled in cash, in connection with the reverse stock split, on June 9, 2021. 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. 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. 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 consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its majority owned subsidiaries over which the Company exercises control. All intercompany balances and transactions have been eliminated in consolidation. 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. Areas where 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. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. 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, Grant S. Moise. Based on how the Company’s CODM makes decisions about allocating resources and assessing performance, the Company determined it has one reportable segment. Cash and Cash Equivalents. The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The Company places its cash and cash equivalents with high credit quality institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Accounts Receivable. 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. Bad debt expense for 2022 and 2021 was $ 307 and $ 184 , respectively. Write-offs, net of recoveries and other adjustments for 2022 and 2021 were $ 367 and $ 345 , respectively. Risk Concentration. A significant portion of the Company’s customer base is concentrated within the North Texas geographical area. The Company generally extends credit to customers, and the ultimate collection of accounts receivable could be affected by the national and local economy, which has been impacted by the pandemic. Management continually performs credit evaluations of its customers and may require cash in advance or other special arrangements from certain customers. The Company maintains an allowance for losses based upon the collectability of accounts receivable. Management does not believe significant credit risk exists that could have a material adverse effect on the Company’s consolidated financial condition, liquidity or results of operations. Notes Receivable. Notes receivable are related to the financed portion of the sale of the Company’s former headquarters, which was paid in full in the third quarter of 2022; see Note 10 – Disposal of Assets . 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 December 31, 2021, there was no allowance recorded for the notes receivable or accrued interest receivable. Inventories. Inventories, consisting primarily of newsprint, ink and other supplies used in printing newspapers, are recorded at the lower of cost or net realizable value. Cost is determined by the weighted average purchase price of the inventory acquired. Property, Plant and Equipment. The Company records property, plant and equipment at cost or its fair value if acquired through a business acquisition or non-monetary exchange. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets and depreciable assets are reviewed to ensure the remaining useful life of the assets continues to be appropriate. An adjustment resulting from a change in the estimated useful life of an asset is recorded to depreciation expense on a prospective basis. The table below sets forth property, plant and equipment by type. December 31, Estimated 2022 2021 Useful Lives Land $ 1,971 $ 1,971 Buildings and improvements 85,714 85,400 5 - 30 years Publishing equipment 173,646 173,123 3 - 20 years Other 51,336 51,744 3 - 10 years Construction in process 773 741 Total 313,440 312,979 Less accumulated depreciation ( 306,002 ) ( 304,157 ) Property, plant and equipment, net $ 7,438 $ 8,822 Long-Lived Assets. The Company evaluates its ability to recover the carrying value of property, plant and equipment and finite-lived intangible assets, using the lowest level of separately identifiable cash flows associated with the assets, which are grouped based on the Company’s intended use of these assets. This evaluation is performed whenever a change in circumstances indicates that the carrying value of an asset group may not be recoverable. If the analysis of undiscounted future cash flows indicates the carrying value of the long-lived assets cannot be recovered, the assets are adjusted to the lower of its carrying value or fair value. During the year ended December 31, 2022, the Company performed a review of potential impairment indicators for its long-lived assets, including property, plant and equipment, and right-of-use assets. The Company determined there was no significant decrease in the market value of the long-lived assets or significant change in the extent or manner in which the asset group is being used or in its physical condition as of December 31, 2022, and there was no significant adverse change in legal factors or in the business climate during the period that could affect the value of the asset group. Based upon the review of indicators, the Company did not identify any events or changes in circumstances that indicate the carrying amount of long-lived assets may not be recoverable. See Note 3 – Leases for information on right-of-use asset impairments occurring in 2022 and 2021. Investments. The Company owns certain equity securities in companies in which it does not exercise control. These investments are recorded under the cost method with a balance of $ 1,432 at December 31, 2022 and 2021, and the Company recognizes income or loss upon the receipt of dividends or distributions, or upon liquidation of the investment. The Company evaluates its ability to recover the carrying value of cost method investments based upon operating results and the financial strength of the investee. If the Company determines the carrying value is not recoverable, an impairment charge is recorded for the difference between the fair value of the investment and the carrying value. Pension. The Company follows accounting guidance for single-employer defined benefit plans. Plan assets and the projected benefit obligation are measured each December 31, and the Company records as an asset or liability the net funded position of the plans. Certain changes in actuarial valuations related to returns on plan assets and projected benefit obligations are recorded to accumulated other comprehensive income (loss) and are amortized to net periodic pension expense (benefit) over the weighted average remaining life of plan participants, to the extent the cumulative balance in accumulated other comprehensive income (loss) exceeds 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. Net periodic pension expense (benefit) is recognized each period by accruing interest expense on the projected benefit obligation and accruing a return on assets associated with the plan assets. 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). From time to time, the Company-sponsored plans may settle pension obligations with certain plan participants through the plans’ master trust as part of its de-risking strategies. The gains or losses associated with settlements of plan obligations to participants are recognized to earnings if such settlements exceed the interest component of net periodic pension cost for the year. Otherwise, such amounts are included in actuarial gains (losses) in accumulated other comprehensive income (loss). Re-measurement of plan assets and liabilities upon a significant settlement or curtailment event is performed based on the values of the month-end closest to the event. Long-Term Incentive Plan. The Company sponsored a long-term incentive plan (the “Plan”) under which it issued restricted stock units (“RSUs”) and cash awards to directors and certain employees of the Company. Due to the expiration of the Plan in February 2018, DallasNews implemented, and shareholders approved, a new long-term incentive plan (the “2017 Plan”) under which 1,000,000 shares of the Company’s Series A and Series B common stock are authorized and remain available for equity-based awards. The authorized shares were adjusted in connection with the reverse stock split on June 8, 2021, discussed above. Like its predecessor plan, awards under the 2017 Plan may be granted to DallasNews employees and outside directors in the form of non-qualified stock options, incentive stock options, restricted share awards, RSUs, performance shares, performance units or stock appreciation rights. As of December 31, 2022 and 2021, there were no stock-based awards outstanding . Shareholders’ Equity. The Company authorized the issuance of shares of Series A and Series B common stock. Series A common stock has one vote per share and Series B common stock has 10 votes per share. Shares of Series B common stock are convertible at any time on a share-for-share basis into shares of Series A common stock, but not vice versa. The Company is authorized to grant stock option and RSU awards to employees and directors of the Company. Upon vesting of RSUs, shares of Series A common stock are issued. Upon the exercise of stock options, Series A common stock is issued if the holder of the stock options executes a simultaneous exercise and sale. If the holder of the stock option chooses not to sell the shares, Series B common stock is issued. In 2012, the Company’s board of directors authorized the purchase of the DallasNews Series A or Series B common stock, for use other than retirement, through open market purchases, privately negotiated transactions or otherwise. Treasury stock acquired under the repurchase program is recorded at cost, reducing shareholders’ equity. The acquired shares are available for sale on the open market or for settlement of obligations related to future stock-based awards, if granted. Accumulated other comprehensive loss consists of actuarial gains and losses associated with the DallasNews Pension Plans (the “Pension Plans”), formerly the A. H. Belo Pension Plans, and other post-employment benefit (the “OPEB”) plans. The cumulative balances are amortized to earnings over the weighted average remaining life expectancy of the participants to the extent such balances exceed 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. The Company discloses amounts reclassified from accumulated other comprehensive loss to net income (loss) in Note 6 - Shareholders' Equity . Revenue Recognition. The Company’s principal sources of revenue are 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 newspapers, and preprint advertising. In addition, revenue includes strategic marketing management, consulting, creative services, targeted and multi-channel (programmatic) advertising placed on third-party websites, social media management, search optimization, direct mail and the sale of promotional materials. 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. See Note 2 – Revenue for disaggregated revenue by source and additional information . Leases. 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. Income Taxes. The Company uses the asset and liability method of accounting for income taxes and recognizes deferred tax assets and liabilities based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates. The Company establishes a valuation allowance if it is more-likely-than-not that the deferred tax assets will not be realized. The factors used to assess the likelihood of realization of the deferred tax assets include future reversal of deferred tax liabilities, available tax planning strategies, future taxable income and taxable income in prior carryback years. The Company evaluates any uncertain tax positions each reporting period by tax jurisdiction to determine if it is more-likely-than-not that the tax position will not be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements for such positions are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. If a net operating loss or other tax credit carry forward exists, the Company records the unrecognized tax benefits for such tax positions as a reduction to a deferred tax asset. Otherwise, the unrecognized tax benefits are recorded as a liability. The Company records a liability for uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Interest and penalties, if any, related to unrecognized tax benefits are recorded in other income (loss), net. Fair Value Measurements. The Company’s financial instruments, including cash, cash equivalents, accounts receivable, interest receivable, accounts payable and amounts due to customers are carried at cost, which approximates its fair value because of the short-term nature of these instruments. 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 (“ASU”) 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 will adopt this ASU on January 1, 2023, using the modified retrospective approach and does not expect a material impact on its consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [Abstract] | |
Revenue | Note 2: Revenue The table below sets forth revenue disaggregated by revenue source. Years Ended December 31, 2022 2021 Advertising and Marketing Services Print advertising $ 44,802 $ 47,483 Digital advertising and marketing services 24,865 25,788 Total $ 69,667 $ 73,271 Circulation Print circulation $ 52,045 $ 55,339 Digital circulation 13,146 9,604 Total $ 65,191 $ 64,943 Printing, Distribution and Other $ 15,793 $ 16,160 Total Revenue $ 150,651 $ 154,374 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 through 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 services, consulting, branding, paid media strategy and management, creative services, search optimization, direct mail and the sale of promotional materials, as well as providing multi-channel marketing solutions through subscription sales of the Company’s cloud-based software. In addition, it includes digital sales of banner, classified and native advertisements on the Company’s news and entertainment-related websites and mobile apps, as well as targeted and multi-channel (programmatic) advertising placed on third-party websites. 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 year ended December 31, 2022, the Company recognized $ 10,027 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 | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 3: Leases 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 11 years. The Company subleases office space in Dallas, Texas, with a remaining lease term of approximately one year . 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. The Company terminated the lease and sublease agreements for the office space of the Denton Publishing Company, resulting in a right-of-use asset impairment of $ 102 recorded in the second quarter of 2022. In 2021, the Company subleased office space in Dallas, Texas at a lower rate than the head lease, resulting in a right-of-use asset impairment of $ 232 . Sublease income is included in p rinting, distribution and other revenue in the Consolidated Statements of Operations. As of December 31, 2022, sublease income is expected to approximate $ 710 in 2023 and $ 5 in 2024. As of December 31, 2022, the Company renewed three operating leases with lease terms of three years , which will result in a right-of-use asset and lease liability of approximately $ 810 in aggregate upon commencement in the first quarter of 2023. In addition, the Company renewed an operating lease with a lease term of three years , which will result in a right-of-use asset and lease liability of approximately $ 1,861 upon commencement in the second quarter of 2023. The table below sets forth supplemental Consolidated Balance Sheet information for the Company’s leases. Classification December 31, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 14,811 $ 17,648 Liabilities Operating Current Other accrued expense $ 1,547 $ 2,430 Noncurrent Long-term operating lease liabilities 16,546 19,181 Total lease liabilities $ 18,093 $ 21,611 Lease Term and Discount Rate Operating leases Weighted average remaining lease term (years) 10.1 10.2 Weighted average discount rate (%) 7.7 7.5 The table below sets forth components of lease cost and supplemental cash flow information for the Company’s leases. Years Ended December 31, 2022 2021 Lease Cost Operating lease cost $ 4,088 $ 4,292 Short-term lease cost 63 20 Variable lease cost 645 706 Sublease income ( 1,155 ) ( 1,071 ) Total lease cost $ 3,641 $ 3,947 Supplemental Cash Flow Information Cash paid for operating leases included in operating activities $ 4,212 $ 4,337 Right-of-use assets obtained in exchange for operating lease liabilities 424 90 The table below sets forth the remaining maturities of the Company’s lease liabilities as of December 31, 2022. Years Ending December 31, Operating Leases 2023 $ 2,877 2024 2,348 2025 2,315 2026 2,366 2027 2,377 Thereafter 14,342 Total lease payments 26,625 Less: imputed interest 8,532 Total lease liabilities $ 18,093 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4: Income Taxes The table below sets forth the Company’s income tax provision (benefit). Years Ended December 31, 2022 2021 Current Federal $ — $ ( 2,575 ) State 583 604 Total current 583 ( 1,971 ) Deferred Federal ( 1,985 ) ( 571 ) State ( 28 ) ( 180 ) Total deferred ( 2,013 ) ( 751 ) Valuation Allowance 1,988 571 Income Tax Provision (Benefit) $ 558 $ ( 2,151 ) The table below reconciles the income tax benefit computed by applying the applicable United States federal income tax rate to the income tax provision (benefit) computed at the effective income tax rate. Years Ended December 31, 2022 2021 Computed expected income tax benefit $ ( 1,939 ) $ ( 550 ) State income tax (net of federal benefit) 460 534 Valuation allowance 1,988 571 Nondeductible expenses 120 72 Uncertain tax position reserve — ( 2,575 ) Deferred adjustment 94 ( 185 ) Other ( 165 ) ( 18 ) Income tax provision (benefit) $ 558 $ ( 2,151 ) Effective income tax rate ( 6.0 )% 82.2 % The income tax provision of $ 558 recorded in 2022, was due to the effect of the Texas franchise tax. An income tax benefit of $( 2,151 ) was recorded in 2021. The benefit was primarily due to the release of $ 2,575 , included in other liabilities, for a federal uncertain tax reserve resulting from the statute of limitations lapsing in August 2021, partially offset by the effect of the Texas franchise tax. The Company made income tax payments, net of refunds, of $ 619 and $ 666 in 2022 and 2021, respectively. 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. On August 16, 2022, the Inflation Reduction Act (the “Act”) was enacted and signed into law. The Act is a budget reconciliation package that includes significant law changes relating to tax, climate change, energy, and health care. The tax provisions include, among other items, a corporate alternative minimum tax of 15 percent, an excise tax of 1 percent on corporate stock buy-backs, energy-related tax credits, and additional IRS funding. Certain provisions, including the corporate alternative minimum tax and excise tax on corporate stock buy-backs, do not become effective until tax years beginning after December 31, 2022. The U.S. Department of the Treasury and the IRS are expected to release further regulations and interpretive guidance implementing the legislation contained in the Act, but the details and timing of such regulations are subject to uncertainty at this time. The Company continues to evaluate the impacts of this legislation as additional guidance is released; however, it does not expect a material impact on its consolidated financial statements. The table below sets forth the significant components of the Company’s deferred tax assets and liabilities. December 31, 2022 2021 Gross Deferred Tax Assets: Defined benefit plans $ 4,088 $ 2,998 Investments 114 87 Tax depreciation less than book depreciation 1,107 1,014 Expenses deductible for tax purposes in a year different from the year accrued 640 731 Lease liability 3,806 4,538 Deferred compensation and benefits 40 — Book amortization in excess of tax amortization 935 987 State taxes 171 124 Net operating loss carryforward 10,063 7,114 Other 316 349 Total deferred tax assets 21,280 17,942 Valuation allowance ( 17,380 ) ( 13,507 ) Total deferred tax assets, net of valuation allowance 3,900 4,435 Gross Deferred Tax Liabilities: Right-of-use asset ( 3,117 ) ( 3,706 ) Other ( 501 ) ( 472 ) Total deferred tax liabilities ( 3,618 ) ( 4,178 ) Net Deferred Tax Assets $ 282 $ 257 The presentation of net deferred tax assets and liabilities for each jurisdiction are presented as noncurrent within the Company’s Consolidated Balance Sheets. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when the taxes are actually paid or recovered. The Company recognizes a valuation allowance for deferred tax assets when it is more-likely-than-not that these assets will not be realized. In making this determination, all positive and negative evidence is considered, including future reversals of existing taxable temporary differences, tax planning strategies, future taxable income and taxable income in prior carryback years. In 2022, the valuation allowance increased $ 3,873 , of which $ 1,886 arose from deferred tax assets related to amounts recorded in accumulated other comprehensive loss that are fully reserved by a valuation allowance. At December 31, 2022, the Company had a federal net operating loss carryforward of $ 47,395 , of which $ 17,528 expires in 2037 and $ 29,867 does not have an expiration. The annual utilization of the portion of the federal net operating loss, which does not have an expiration, is limited to 80 percent of taxable income in tax years beginning after January 1, 2021. The Company has a state net operating loss of $ 2,844 , which will begin to expire in 2033. Uncertain tax positions are evaluated and a liability is recognized for the tax benefit associated with uncertain positions only if it is more-likely-than-not that the positions will not be sustained upon examination by taxing authorities, based on the technical merits of the positions. The Company assesses its filing positions in all significant jurisdictions where it is required to file income tax returns for all open tax years. The Company’s federal income tax return for December 31, 2014 and for tax years subsequent to December 31, 2016 remain subject to examination, and income tax returns in major state income tax jurisdictions where the Company operated remain subject to examination. The statute of limitations associated with the December 31, 2014 federal return was extended in 2020 due to the net operating loss carryback pursuant to the CARES Act. The Company has recorded a reserve for the tax benefit related to uncertain tax positions existing as of December 31, 2022 in other liabilities in the Consolidated Balance Sheets. The table below sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefit. 2022 2021 Balance at January 1 $ 66 $ 2,641 Decrease related to statute of limitations expiring — ( 2,575 ) Balance at December 31 $ 66 $ 66 The Company recorded interest income (expense) of $( 4 ) and $ 455 for 2022 and 2021, respectively, and penalty expense of $ 5 for 2022 and 2021, included in other income (loss), net in the Consolidated Statements of Operations. Accrued interest and penalty at December 31, 2022 and 2021 was $ 36 and $ 27 , respectively, included in other liabilities in the Consolidated Balance Sheets. In 2021, the Company recorded a tax benefit of $ 2,575 and $ 455 of interest income due to the release of a fed eral uncertain tax reserve and related interest resulting from the statute of limitations lapsing in August 2021. |
Pension and Other Retirement Pl
Pension and Other Retirement Plans | 12 Months Ended |
Dec. 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 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. The Company is the sole sponsor of the Pension Plans and is required to meet certain pension funding requirements as established under the Employment Retirement Income Security Act (“ERISA”). Instability in global and domestic capital markets may result in low returns on the assets contributed to the Pension Plans. Additionally, low yields on corporate bonds may decrease the discount rate, resulting in a higher funding obligation. Although legislation was enacted into law in 2012, which provided limited funding relief, market conditions could materially increase the funding requirements associated with the Pension Plans, with an adverse effect on the Company’s liquidity and financial condition. The Company was not required to make contributions to the DallasNews Pension Plans in 2022 and 2021 under ERISA. On August 31, 2022, the Company made a board approved voluntary contribution of $ 5,000 to the Pension Plans, reflected in long-term pension liabilities in the Consolidated Balance Sheet. The Company will continue to evaluate the feasibility of de-risking strategies based on the economic benefits to the Company. Actuarial losses of $( 9,818 ) and $( 1,358 ) were recorded to other comprehensive income (loss) in 2022 and 2021, respectively, related to the Pension Plans; see Note 6 - Shareholders' Equity for information on amounts recorded to accumulated other comprehensive loss. The table below sets forth summarized financial information about the DallasNews Pension Plans. 2022 2021 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 219,364 $ 233,640 Interest cost 5,311 4,697 Actuarial gain ( 42,425 ) ( 6,477 ) Benefit payments ( 12,706 ) ( 12,496 ) Projected benefit obligation at end of year 169,544 219,364 Change in Plan Assets Fair value of plan assets at beginning of year 205,089 215,120 Return on plan assets ( 47,294 ) 2,465 Employer contributions 5,000 — Benefit payments ( 12,706 ) ( 12,496 ) Fair value of plan assets at end of year 150,089 205,089 Funded Status $ ( 19,455 ) $ ( 14,275 ) Amounts Recorded on the Balance Sheet Long-term pension liabilities $ 19,455 $ 14,275 Accumulated Benefit Obligation $ 169,544 $ 219,364 Net Periodic Pension Expense (Benefit) The projected benefit obligations of the DallasNews Pension Plans are estimated using the FTSE Pension Discount Curve, which is based upon a portfolio of high-quality corporate debt securities with maturities that correlate to the expected timing of estimated benefit payments to the Pension Plans’ participants. Future estimated benefit payments are discounted to their present value at the appropriate yield curve spot rate to determine the projected benefit obligation outstanding at each year end. The single equivalent discount rate as of December 31, 2022, was 4.9 percent and 2.5 percent for December 31, 2021. The significant gains related to changes in the projected benefit obligation for 2022 and 2021, were primarily due to the movement in the discount rate. Interest expense included in net periodic pension benefit is based on the FTSE Pension Discount Curve established at the beginning of the fiscal year. The discount rate for fiscal year 2022 and 2021 interest cost was 2.5 percent and 2.1 percent, respectively. The Company assumed a 2.5 percent and 5.5 percent long-term return on the Pension Plans’ assets in 2022 and 2021, respectively. This return is based upon historical returns of similar investment pools having asset allocations consistent with the expected allocations of the DallasNews Pension Plans. Investment strategies for the Pension Plans’ assets are based upon factors such as the effective duration of the actuarial liabilities and market risks. 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, based 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 (loss), net in the Consolidated Statements of Operations. Years Ended December 31, 2022 2021 Interest cost $ 5,311 $ 4,697 Expected return on plans' assets ( 4,949 ) ( 10,299 ) Amortization of actuarial loss 526 1,444 Net periodic pension expense (benefit) $ 888 $ ( 4,158 ) Plan Assets The Company is responsible for directing the investment strategies of the DallasNews Pension Plans’ assets. The investment strategies focus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risks. In 2022, the long-term targeted allocation of the Pension Plans’ assets invested in equity securities and fixed income securities was approximately 5 percent and 95 percent, respectively. In 2021 management and the board agreed that the Pension Plans’ investment portfolio should be further de-risked to 95 percent liability hedging assets. These targets are determined based on the effective duration of the actuarial liabilities, the expected long-term rate of return on assets, and expected market risks. Investment risk is continuously monitored and Pension Plans’ assets are rebalanced to target allocations to meet the Company’s strategy and the Pension Plans’ liquidity needs. At December 31, 2022, the Pension Plans’ investments in equity securities and fixed income securities accounted for 4.4 percent and 95.6 percent of the total noncash holdings, respectively. The table below sets forth the DallasNews Pension Plans’ assets at fair value as of December 31, 2022 and 2021, with inputs used to develop fair value measurements. Fair Value Measurements Using Total Quoted Price in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Description 2022 2021 2022 2021 2022 2021 2022 2021 Cash and Money Market Funds $ 1,608 $ 2,749 $ 1,608 $ 2,749 $ — $ — $ — $ — Equity Funds U.S. equity securities 3,666 6,492 — — 3,666 6,492 — — International equity securities 2,856 3,317 — — 2,856 3,317 — — Fixed Income Funds Domestic corporate and government debt securities 72,194 96,362 — — 72,194 96,362 — — Domestic corporate debt securities 69,243 95,647 — — 69,243 95,647 — — International corporate and government debt securities 522 522 — — 522 522 — — Total $ 150,089 $ 205,089 $ 1,608 $ 2,749 $ 148,481 $ 202,340 $ — $ — Inputs and valuation techniques used to measure the fair value of Pension Plans’ assets vary according to the type of asset being valued. Cash and money market funds are designated as Level I. Remaining investments are in commingled funds and fair values are determined by the fund manager primarily based upon closing market quotes of the assets. Equity securities held through units in these funds are monitored as to issuer and industry. As of December 31, 202 2, there were no significant concentrations of equity or debt securities in any single issuer or industry. Other The table below sets forth the Company’s expected future pension benefit payments as of December 31, 2022. Payment year Expected Benefit Payments 2023 $ 13,849 2024 13,817 2025 13,779 2026 13,615 2027 13,473 2028 - 2032 63,139 The Company currently does not expect to make contributions to the DallasNews Pension Plans in 2023 and no contributions are required to these plans in 2023 under ERISA. Other defined benefit plans. DallasNews also sponsors other post-employment benefit (the “OPEB”) plans, which provide health and life insurance benefits for certain retired employees. These plans were frozen subsequent to the separation from the Company’s former parent company; therefore, no future benefits accrue and on-going service costs are not a component of net periodic benefit cost. The Company recorded a liability of $ 982 and $ 1,349 related to the OPEB plans as of December 31, 2022 and 2021, respectively. A net periodic benefit cost of $ 22 and $ 17 in 2022 and 2021, respectively, was recorded to other income (loss), net. The net periodic benefit cost primarily represents amortization of actuarial gains (losses) and prior service costs, offset by interest expense associated with the actuarial liability. Actuarial gains (losses) of $ 322 and $( 20 ) were recorded to other comprehensive income (loss) in 2022 and 2021, respectively; see Note 6 - Shareholders' Equity . 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. The Company recorded expense of $ 739 and $ 735 in 2022 and 2021, respectively, for matching contributions to the Savings Plan. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 6: Shareholders’ Equity Reverse Stock Split. 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. See Note 1 – Significant Accounting Policies and Recently Issued Accounting Standards for additional information. Dividends. Quarterly dividends returned $ 11,454 and $ 3,425 to shareholders in 2022 and 2021, respectively. On December 1, 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 February 10, 2023 , paid on March 3, 2023 . Outstanding Shares. The Company had Series A and Series B common stock outstanding of 4,737,772 and 614,718 , respectively, net of treasury shares at December 31, 2022. At December 31, 2021, the Company had Series A and Series B common stock outstanding of 4,737,580 and 614,910 , respectively, net of treasury shares. 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 OPEB plans. The Company records amortization of the components of accumulated other comprehensive loss in other income (loss), 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. Years Ended December 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 522 526 ( 4 ) 1,440 1,444 ( 4 ) Actuarial gains (losses) ( 9,496 ) ( 9,818 ) 322 ( 1,378 ) ( 1,358 ) ( 20 ) Balance, end of period $ ( 41,380 ) $ ( 41,777 ) $ 397 $ ( 32,406 ) $ ( 32,485 ) $ 79 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 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 earnings per share (“EPS”). The Company’s Series A and Series B common stock equally share in the distributed and undistributed earnings. Years Ended December 31, 2022 2021 Earnings (Numerator) Net loss available to common shareholders $ ( 9,786 ) $ ( 467 ) Shares (Denominator) Weighted average common shares outstanding (basic) 5,352,490 5,352,490 Loss Per Share Basic $ ( 1.83 ) $ ( 0.09 ) There were no options or RSUs outstanding as of December 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 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 8: Commitments and Contingencies As of December 31, 2022, the Company had contractual obligations, in aggregate, of $ 12,283 for the next five years and $ 14,342 thereafter, for operating leases, primarily for office space and other distribution centers, some of which include escalating lease payments. See Note 3 – Leases for future lease payments by year. In December 2016, the Dallas Morning News, Inc., a wholly-owned subsidiary of the Company, entered into a 16 -year lease agreement for office space for the Company’s new corporate headquarters. The Company recognizes rent expense on a straight-line basis. Per the amended lease agreement, rent payments began in November 2018. Total lease expense for property and equipment was $ 4,796 and $ 5,018 in 2022 and 2021, respectively. The Company funds the DallasNews Pension Plans to meet or exceed statutory requirements. The Company currently does not expect to make contributions to the DallasNews Pension Plans in 2023 and no contributions are required to these plans in 2023 under the applicable tax and labor laws governing pension plan funding; see Note 5 - Pension and Other Retirement Plans . 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. |
Supplemental Cash Flow Data
Supplemental Cash Flow Data | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Cash Flow Data | Note 9: Supplemental Cash Flow Data The table below sets forth supplemental disclosures related to the Company’s Consolidated Statements of Cash Flows. Years Ended December 31, 2022 2021 Income tax paid, net $ 619 $ 666 Noncash investing and financing activities: Investments in property, plant and equipment payable — 245 Dividends payable 856 856 |
Disposal of Assets
Disposal of Assets | 12 Months Ended |
Dec. 31, 2022 | |
Disposal of Assets [Abstract] | |
Disposal of Assets | Note 10: 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 December 31, 2021 Consolidated Balance Sheet. Effective June 30, 2022, the Company and the Purchaser entered into an agreement extending the maturity date of the Promissory Note to July 29, 2022 (the “Third Modification Agreement”). The unpaid, original principal balance of the Promissory Note accrued interest at the rate of 6.5 percent. On July 29, 2022, the Company was paid in full, receiving cash proceeds of $ 22,516 , including interest, due from the Purchaser under the Third Modification Agreement. In 2022 and 2021, the Company recorded $ 616 and $ 1,008 , respectively, of interest income related to the Promissory Note, included in other income (loss), net in the Consolidated Statements of Operations. In 2021, the Company sold inactive IP addresses for $ 1,349 , included in other income (loss), net in the Consolidated Statements of Operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11: Subsequent Events The Company evaluates subsequent events at the date of the consolidated balance sheet as well as conditions that arise after the balance sheet date but before the consolidated financial statements are issued. To the extent any events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions. On March 9, 2023 , 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 12, 202 3 , which is payable on June 2, 2023 . |
Significant Accounting Polici_2
Significant Accounting Policies and Recently Issued Accounting Standards (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies and Recently Issued Accounting Standards | |
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. Employees. As of December 31, 2022, the Company had 663 employees of which approximately 21 percent were represented by a labor union. The Company is in the process of finalizing an initial collective bargaining agreement. While there have not been any operational disruptions to date, the Company cannot predict the timing or outcome of these negotiations. 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. In May , 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. All fractional shares were settled in cash, in connection with the reverse stock split, on June 9, 2021. 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. |
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. 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 consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its majority owned subsidiaries over which the Company exercises control. All intercompany balances and transactions have been eliminated in consolidation. 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. Areas where 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. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. |
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, Grant S. Moise. Based on how the Company’s CODM makes decisions about allocating resources and assessing performance, the Company determined it has one reportable segment. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents. The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The Company places its cash and cash equivalents with high credit quality institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Accounts Receivable, Policy | Accounts Receivable. 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. Bad debt expense for 2022 and 2021 was $ 307 and $ 184 , respectively. Write-offs, net of recoveries and other adjustments for 2022 and 2021 were $ 367 and $ 345 , respectively. |
Risk Concentration, Policy | Risk Concentration. A significant portion of the Company’s customer base is concentrated within the North Texas geographical area. The Company generally extends credit to customers, and the ultimate collection of accounts receivable could be affected by the national and local economy, which has been impacted by the pandemic. Management continually performs credit evaluations of its customers and may require cash in advance or other special arrangements from certain customers. The Company maintains an allowance for losses based upon the collectability of accounts receivable. Management does not believe significant credit risk exists that could have a material adverse effect on the Company’s consolidated financial condition, liquidity or results of operations. |
Notes Receivable, Policy | Notes Receivable. Notes receivable are related to the financed portion of the sale of the Company’s former headquarters, which was paid in full in the third quarter of 2022; see Note 10 – Disposal of Assets . 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 December 31, 2021, there was no allowance recorded for the notes receivable or accrued interest receivable. |
Inventories, Policy | Inventories. Inventories, consisting primarily of newsprint, ink and other supplies used in printing newspapers, are recorded at the lower of cost or net realizable value. Cost is determined by the weighted average purchase price of the inventory acquired. |
Property, Plant and Equipment, Policy | Property, Plant and Equipment. The Company records property, plant and equipment at cost or its fair value if acquired through a business acquisition or non-monetary exchange. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets and depreciable assets are reviewed to ensure the remaining useful life of the assets continues to be appropriate. An adjustment resulting from a change in the estimated useful life of an asset is recorded to depreciation expense on a prospective basis. The table below sets forth property, plant and equipment by type. December 31, Estimated 2022 2021 Useful Lives Land $ 1,971 $ 1,971 Buildings and improvements 85,714 85,400 5 - 30 years Publishing equipment 173,646 173,123 3 - 20 years Other 51,336 51,744 3 - 10 years Construction in process 773 741 Total 313,440 312,979 Less accumulated depreciation ( 306,002 ) ( 304,157 ) Property, plant and equipment, net $ 7,438 $ 8,822 |
Long-Lived Assets, Policy | Long-Lived Assets. The Company evaluates its ability to recover the carrying value of property, plant and equipment and finite-lived intangible assets, using the lowest level of separately identifiable cash flows associated with the assets, which are grouped based on the Company’s intended use of these assets. This evaluation is performed whenever a change in circumstances indicates that the carrying value of an asset group may not be recoverable. If the analysis of undiscounted future cash flows indicates the carrying value of the long-lived assets cannot be recovered, the assets are adjusted to the lower of its carrying value or fair value. During the year ended December 31, 2022, the Company performed a review of potential impairment indicators for its long-lived assets, including property, plant and equipment, and right-of-use assets. The Company determined there was no significant decrease in the market value of the long-lived assets or significant change in the extent or manner in which the asset group is being used or in its physical condition as of December 31, 2022, and there was no significant adverse change in legal factors or in the business climate during the period that could affect the value of the asset group. Based upon the review of indicators, the Company did not identify any events or changes in circumstances that indicate the carrying amount of long-lived assets may not be recoverable. See Note 3 – Leases for information on right-of-use asset impairments occurring in 2022 and 2021. |
Investments, Policy | Investments. The Company owns certain equity securities in companies in which it does not exercise control. These investments are recorded under the cost method with a balance of $ 1,432 at December 31, 2022 and 2021, and the Company recognizes income or loss upon the receipt of dividends or distributions, or upon liquidation of the investment. The Company evaluates its ability to recover the carrying value of cost method investments based upon operating results and the financial strength of the investee. If the Company determines the carrying value is not recoverable, an impairment charge is recorded for the difference between the fair value of the investment and the carrying value. |
Pension, Policy | Pension. The Company follows accounting guidance for single-employer defined benefit plans. Plan assets and the projected benefit obligation are measured each December 31, and the Company records as an asset or liability the net funded position of the plans. Certain changes in actuarial valuations related to returns on plan assets and projected benefit obligations are recorded to accumulated other comprehensive income (loss) and are amortized to net periodic pension expense (benefit) over the weighted average remaining life of plan participants, to the extent the cumulative balance in accumulated other comprehensive income (loss) exceeds 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. Net periodic pension expense (benefit) is recognized each period by accruing interest expense on the projected benefit obligation and accruing a return on assets associated with the plan assets. 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). From time to time, the Company-sponsored plans may settle pension obligations with certain plan participants through the plans’ master trust as part of its de-risking strategies. The gains or losses associated with settlements of plan obligations to participants are recognized to earnings if such settlements exceed the interest component of net periodic pension cost for the year. Otherwise, such amounts are included in actuarial gains (losses) in accumulated other comprehensive income (loss). Re-measurement of plan assets and liabilities upon a significant settlement or curtailment event is performed based on the values of the month-end closest to the event. |
Long-Term Incentive Plan, Policy | Long-Term Incentive Plan. The Company sponsored a long-term incentive plan (the “Plan”) under which it issued restricted stock units (“RSUs”) and cash awards to directors and certain employees of the Company. Due to the expiration of the Plan in February 2018, DallasNews implemented, and shareholders approved, a new long-term incentive plan (the “2017 Plan”) under which 1,000,000 shares of the Company’s Series A and Series B common stock are authorized and remain available for equity-based awards. The authorized shares were adjusted in connection with the reverse stock split on June 8, 2021, discussed above. Like its predecessor plan, awards under the 2017 Plan may be granted to DallasNews employees and outside directors in the form of non-qualified stock options, incentive stock options, restricted share awards, RSUs, performance shares, performance units or stock appreciation rights. As of December 31, 2022 and 2021, there were no stock-based awards outstanding |
Shareholders' Equity, Policy | Shareholders’ Equity. The Company authorized the issuance of shares of Series A and Series B common stock. Series A common stock has one vote per share and Series B common stock has 10 votes per share. Shares of Series B common stock are convertible at any time on a share-for-share basis into shares of Series A common stock, but not vice versa. The Company is authorized to grant stock option and RSU awards to employees and directors of the Company. Upon vesting of RSUs, shares of Series A common stock are issued. Upon the exercise of stock options, Series A common stock is issued if the holder of the stock options executes a simultaneous exercise and sale. If the holder of the stock option chooses not to sell the shares, Series B common stock is issued. In 2012, the Company’s board of directors authorized the purchase of the DallasNews Series A or Series B common stock, for use other than retirement, through open market purchases, privately negotiated transactions or otherwise. Treasury stock acquired under the repurchase program is recorded at cost, reducing shareholders’ equity. The acquired shares are available for sale on the open market or for settlement of obligations related to future stock-based awards, if granted. Accumulated other comprehensive loss consists of actuarial gains and losses associated with the DallasNews Pension Plans (the “Pension Plans”), formerly the A. H. Belo Pension Plans, and other post-employment benefit (the “OPEB”) plans. The cumulative balances are amortized to earnings over the weighted average remaining life expectancy of the participants to the extent such balances exceed 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. The Company discloses amounts reclassified from accumulated other comprehensive loss to net income (loss) in Note 6 - Shareholders' Equity . |
Revenue Recognition, Policy | Revenue Recognition. The Company’s principal sources of revenue are 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 newspapers, and preprint advertising. In addition, revenue includes strategic marketing management, consulting, creative services, targeted and multi-channel (programmatic) advertising placed on third-party websites, social media management, search optimization, direct mail and the sale of promotional materials. 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. See Note 2 – Revenue for disaggregated revenue by source and additional information . |
Leases, Policy | Leases. 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. |
Income Taxes, Policy | Income Taxes. The Company uses the asset and liability method of accounting for income taxes and recognizes deferred tax assets and liabilities based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates. The Company establishes a valuation allowance if it is more-likely-than-not that the deferred tax assets will not be realized. The factors used to assess the likelihood of realization of the deferred tax assets include future reversal of deferred tax liabilities, available tax planning strategies, future taxable income and taxable income in prior carryback years. The Company evaluates any uncertain tax positions each reporting period by tax jurisdiction to determine if it is more-likely-than-not that the tax position will not be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements for such positions are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. If a net operating loss or other tax credit carry forward exists, the Company records the unrecognized tax benefits for such tax positions as a reduction to a deferred tax asset. Otherwise, the unrecognized tax benefits are recorded as a liability. The Company records a liability for uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Interest and penalties, if any, related to unrecognized tax benefits are recorded in other income (loss), net. |
Fair Value Measurements, Policy | Fair Value Measurements. The Company’s financial instruments, including cash, cash equivalents, accounts receivable, interest receivable, accounts payable and amounts due to customers are carried at cost, which approximates its fair value because of the short-term nature of these instruments. |
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 (“ASU”) 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 will adopt this ASU on January 1, 2023, using the modified retrospective approach and does not expect a material impact on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies and Recently Issued Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies and Recently Issued Accounting Standards | |
Property, Plant and Equipment by Type | December 31, Estimated 2022 2021 Useful Lives Land $ 1,971 $ 1,971 Buildings and improvements 85,714 85,400 5 - 30 years Publishing equipment 173,646 173,123 3 - 20 years Other 51,336 51,744 3 - 10 years Construction in process 773 741 Total 313,440 312,979 Less accumulated depreciation ( 306,002 ) ( 304,157 ) Property, plant and equipment, net $ 7,438 $ 8,822 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [Abstract] | |
Disaggregated by Revenue Source | Years Ended December 31, 2022 2021 Advertising and Marketing Services Print advertising $ 44,802 $ 47,483 Digital advertising and marketing services 24,865 25,788 Total $ 69,667 $ 73,271 Circulation Print circulation $ 52,045 $ 55,339 Digital circulation 13,146 9,604 Total $ 65,191 $ 64,943 Printing, Distribution and Other $ 15,793 $ 16,160 Total Revenue $ 150,651 $ 154,374 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Consolidated Balance Sheet Information for Leases | Classification December 31, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 14,811 $ 17,648 Liabilities Operating Current Other accrued expense $ 1,547 $ 2,430 Noncurrent Long-term operating lease liabilities 16,546 19,181 Total lease liabilities $ 18,093 $ 21,611 Lease Term and Discount Rate Operating leases Weighted average remaining lease term (years) 10.1 10.2 Weighted average discount rate (%) 7.7 7.5 |
Schedule of Components of Lease Cost and Supplemental Cash Flow Information for Leases | Years Ended December 31, 2022 2021 Lease Cost Operating lease cost $ 4,088 $ 4,292 Short-term lease cost 63 20 Variable lease cost 645 706 Sublease income ( 1,155 ) ( 1,071 ) Total lease cost $ 3,641 $ 3,947 Supplemental Cash Flow Information Cash paid for operating leases included in operating activities $ 4,212 $ 4,337 Right-of-use assets obtained in exchange for operating lease liabilities 424 90 |
Schedule of Remaining Maturities of Lease Liabilities | Years Ending December 31, Operating Leases 2023 $ 2,877 2024 2,348 2025 2,315 2026 2,366 2027 2,377 Thereafter 14,342 Total lease payments 26,625 Less: imputed interest 8,532 Total lease liabilities $ 18,093 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | Years Ended December 31, 2022 2021 Current Federal $ — $ ( 2,575 ) State 583 604 Total current 583 ( 1,971 ) Deferred Federal ( 1,985 ) ( 571 ) State ( 28 ) ( 180 ) Total deferred ( 2,013 ) ( 751 ) Valuation Allowance 1,988 571 Income Tax Provision (Benefit) $ 558 $ ( 2,151 ) |
Schedule of Effective Income Tax Rate Reconciliation | Years Ended December 31, 2022 2021 Computed expected income tax benefit $ ( 1,939 ) $ ( 550 ) State income tax (net of federal benefit) 460 534 Valuation allowance 1,988 571 Nondeductible expenses 120 72 Uncertain tax position reserve — ( 2,575 ) Deferred adjustment 94 ( 185 ) Other ( 165 ) ( 18 ) Income tax provision (benefit) $ 558 $ ( 2,151 ) Effective income tax rate ( 6.0 )% 82.2 % |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2022 2021 Gross Deferred Tax Assets: Defined benefit plans $ 4,088 $ 2,998 Investments 114 87 Tax depreciation less than book depreciation 1,107 1,014 Expenses deductible for tax purposes in a year different from the year accrued 640 731 Lease liability 3,806 4,538 Deferred compensation and benefits 40 — Book amortization in excess of tax amortization 935 987 State taxes 171 124 Net operating loss carryforward 10,063 7,114 Other 316 349 Total deferred tax assets 21,280 17,942 Valuation allowance ( 17,380 ) ( 13,507 ) Total deferred tax assets, net of valuation allowance 3,900 4,435 Gross Deferred Tax Liabilities: Right-of-use asset ( 3,117 ) ( 3,706 ) Other ( 501 ) ( 472 ) Total deferred tax liabilities ( 3,618 ) ( 4,178 ) Net Deferred Tax Assets $ 282 $ 257 |
Schedule of Unrecognized Tax Positions | 2022 2021 Balance at January 1 $ 66 $ 2,641 Decrease related to statute of limitations expiring — ( 2,575 ) Balance at December 31 $ 66 $ 66 |
Pension and Other Retirement _2
Pension and Other Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Pension and Other Retirement Plans [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | 2022 2021 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 219,364 $ 233,640 Interest cost 5,311 4,697 Actuarial gain ( 42,425 ) ( 6,477 ) Benefit payments ( 12,706 ) ( 12,496 ) Projected benefit obligation at end of year 169,544 219,364 Change in Plan Assets Fair value of plan assets at beginning of year 205,089 215,120 Return on plan assets ( 47,294 ) 2,465 Employer contributions 5,000 — Benefit payments ( 12,706 ) ( 12,496 ) Fair value of plan assets at end of year 150,089 205,089 Funded Status $ ( 19,455 ) $ ( 14,275 ) Amounts Recorded on the Balance Sheet Long-term pension liabilities $ 19,455 $ 14,275 Accumulated Benefit Obligation $ 169,544 $ 219,364 |
Schedule of Net Periodic Pension Benefit | Years Ended December 31, 2022 2021 Interest cost $ 5,311 $ 4,697 Expected return on plans' assets ( 4,949 ) ( 10,299 ) Amortization of actuarial loss 526 1,444 Net periodic pension expense (benefit) $ 888 $ ( 4,158 ) |
Schedule of Fair Value and Allocation of Plan Assets | Fair Value Measurements Using Total Quoted Price in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Description 2022 2021 2022 2021 2022 2021 2022 2021 Cash and Money Market Funds $ 1,608 $ 2,749 $ 1,608 $ 2,749 $ — $ — $ — $ — Equity Funds U.S. equity securities 3,666 6,492 — — 3,666 6,492 — — International equity securities 2,856 3,317 — — 2,856 3,317 — — Fixed Income Funds Domestic corporate and government debt securities 72,194 96,362 — — 72,194 96,362 — — Domestic corporate debt securities 69,243 95,647 — — 69,243 95,647 — — International corporate and government debt securities 522 522 — — 522 522 — — Total $ 150,089 $ 205,089 $ 1,608 $ 2,749 $ 148,481 $ 202,340 $ — $ — |
Schedule of Expected Benefit Payments | Payment year Expected Benefit Payments 2023 $ 13,849 2024 13,817 2025 13,779 2026 13,615 2027 13,473 2028 - 2032 63,139 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Years Ended December 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 522 526 ( 4 ) 1,440 1,444 ( 4 ) Actuarial gains (losses) ( 9,496 ) ( 9,818 ) 322 ( 1,378 ) ( 1,358 ) ( 20 ) Balance, end of period $ ( 41,380 ) $ ( 41,777 ) $ 397 $ ( 32,406 ) $ ( 32,485 ) $ 79 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | Years Ended December 31, 2022 2021 Earnings (Numerator) Net loss available to common shareholders $ ( 9,786 ) $ ( 467 ) Shares (Denominator) Weighted average common shares outstanding (basic) 5,352,490 5,352,490 Loss Per Share Basic $ ( 1.83 ) $ ( 0.09 ) |
Supplemental Cash Flow Data (Ta
Supplemental Cash Flow Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Disclosures of Cash Flows | Years Ended December 31, 2022 2021 Income tax paid, net $ 619 $ 666 Noncash investing and financing activities: Investments in property, plant and equipment payable — 245 Dividends payable 856 856 |
Significant Accounting Polici_4
Significant Accounting Policies and Recently Issued Accounting Standards (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||
May 31, 2021 | Dec. 31, 2022 USD ($) item segment $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jun. 08, 2021 $ / shares | |
Basis of Presentation and Recently Issued Accounting Standards | ||||
Entity Number of Employees | item | 663 | |||
Percent of employees represented by a labor union | 21% | |||
Allowance for notes receivable | $ 0 | |||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Write-offs, net of recoveries and other adjustments | $ 367,000 | $ 345,000 | ||
Number of reportable segments | segment | 1 | |||
Provision for Doubtful Accounts | $ 307,000 | 184,000 | ||
Investments recorded under the cost method | $ 1,432,000 | $ 1,432,000 | ||
Series A [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Common stock, voting rights, number of votes | item | 1 | |||
Series B [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Common stock, voting rights, number of votes | item | 10 | |||
RSUs [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Share-based payment award other than option outstanding | shares | 0 | 0 | ||
2017 Plan [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Number of shares authorized | shares | 1,000,000 | |||
Minimum [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Reverse stock split conversion ratio | 0.33 | |||
Maximum [Member] | ||||
Basis of Presentation and Recently Issued Accounting Standards | ||||
Reverse stock split conversion ratio | 0.20 |
Significant Accounting Polici_5
Significant Accounting Policies and Recently Issued Accounting Standards (Property, Plant and Equipment by Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment | ||
Total | $ 313,440 | $ 312,979 |
Less accumulated depreciation | (306,002) | (304,157) |
Property, plant and equipment, net | 7,438 | 8,822 |
Land [Member] | ||
Property, Plant and Equipment | ||
Total | 1,971 | 1,971 |
Buildings And Improvements [Member] | ||
Property, Plant and Equipment | ||
Total | $ 85,714 | 85,400 |
Buildings And Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 5 years | |
Buildings And Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 30 years | |
Publishing Equipment [Member] | ||
Property, Plant and Equipment | ||
Total | $ 173,646 | 173,123 |
Publishing Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Publishing Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 20 years | |
Other [Member] | ||
Property, Plant and Equipment | ||
Total | $ 51,336 | 51,744 |
Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 10 years | |
Construction In Process [Member] | ||
Property, Plant and Equipment | ||
Total | $ 773 | $ 741 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, revenue recognized | $ 10,027 |
Minimum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation expected timing of revenue recognition | 1 month |
Maximum [Member] | |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 150,651 | $ 154,374 |
Print Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 44,802 | 47,483 |
Digital Advertising And Marketing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24,865 | 25,788 |
Advertising And Marketing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 69,667 | 73,271 |
Print Circulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 52,045 | 55,339 |
Digital Circulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,146 | 9,604 |
Circulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 65,191 | 64,943 |
Printing, Distribution And Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 15,793 | $ 16,160 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Mar. 31, 2023 | |
Asset impairments | $ 102 | $ 232 | |||
Operating lease assets | 14,811 | 17,648 | |||
Operating lease liabilities | $ 18,093 | 21,611 | |||
Operating lease, lease not yet commenced, term of contract | 3 years | ||||
Forecast [Member] | |||||
Operating lease assets | $ 1,861 | ||||
Operating lease liabilities | $ 1,861 | ||||
Three operating leases [Member] | |||||
Operating lease, lease not yet commenced, term of contract | 3 years | ||||
Three operating leases [Member] | Forecast [Member] | |||||
Operating lease assets | $ 810 | ||||
Operating lease liabilities | $ 810 | ||||
Office Space Subleases [Member] | |||||
Operating leases remaining terms | 1 year | ||||
Asset impairments | $ 102 | $ 232 | |||
Sublease [Member] | |||||
Sublease income expected in 2023 | $ 710 | ||||
Sublease income expected in 2024 | $ 5 | ||||
Minimum [Member] | |||||
Operating leases remaining terms | 1 year | ||||
Minimum [Member] | Distributors Sublease [Member] | |||||
Operating leases remaining terms | 1 year | ||||
Maximum [Member] | |||||
Operating leases remaining terms | 11 years | ||||
Maximum [Member] | 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 14,811 | $ 17,648 |
Operating lease liabilities current | $ 1,547 | $ 2,430 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Operating lease liabilities noncurrent | $ 16,546 | $ 19,181 |
Total lease liabilities | $ 18,093 | $ 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 | 7.70% | 7.50% |
Leases (Schedule of Components
Leases (Schedule of Components of Lease Cost and Supplemental Cash Flow Information for Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 4,088 | $ 4,292 |
Short-term lease cost | 63 | 20 |
Variable lease cost | 645 | 706 |
Sublease income | (1,155) | (1,071) |
Total lease cost | 3,641 | 3,947 |
Cash paid for operating leases included in operating activities | 4,212 | 4,337 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 424 | $ 90 |
Leases (Schedule of Remaining M
Leases (Schedule of Remaining Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 2,877 | |
2024 | 2,348 | |
2025 | 2,315 | |
2026 | 2,366 | |
2027 | 2,377 | |
Thereafter | 14,342 | |
Total lease payments | 26,625 | |
Less: imputed interest | 8,532 | |
Total lease liabilities | $ 18,093 | $ 21,611 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 16, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Line Items] | |||
Income tax provision (benefit) | $ 558 | $ (2,151) | |
Income tax paid, net | 619 | 666 | |
Net operating loss carryforward | 10,063 | 7,114 | |
Tax benefit recognized from the release of a federal uncertain tax reserve | 2,575 | ||
Changes in valuation allowance | 3,873 | ||
Income tax, interest income (expense) | (4) | 455 | |
Income tax, penalty expense | 5 | 5 | |
Income tax examination accrued interest and penalty | $ 36 | $ 27 | |
Inflation Reduction Act [Member] | |||
Income Tax [Line Items] | |||
Corporate alternative minimum tax rate | 15% | ||
Excise tax rate | 1% | ||
American Rescue Plan Act of 2021 [Member] | Minimum [Member] | |||
Income Tax [Line Items] | |||
Amortization period for pension underfunding | 7 years | ||
American Rescue Plan Act of 2021 [Member] | Maximum [Member] | |||
Income Tax [Line Items] | |||
Amortization period for pension underfunding | 15 years | ||
Other Deferred Tax Assets [Member] | |||
Income Tax [Line Items] | |||
Changes in valuation allowance | $ 1,886 | ||
Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | 47,395 | ||
Federal [Member] | Net Operating Loss Carryforward Expiring In 2037 [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | 17,528 | ||
Federal [Member] | Net Operating Loss Carryforward With No Expiration [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforward | $ 29,867 | ||
Net operating loss maximum annual utilization of taxable income, percent | 80% | ||
State and Local Jurisdiction [Member] | Net Operating Loss Carryforward Expiring In 2033 [Member] | |||
Income Tax [Line Items] | |||
State net operating loss carryforward | $ 2,844 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||
Federal | $ (2,575) | |
State | $ 583 | 604 |
Total current | 583 | (1,971) |
Deferred | ||
Federal | (1,985) | (571) |
State | (28) | (180) |
Total deferred | (2,013) | (751) |
Valuation Allowance | 1,988 | 571 |
Income Tax Provision (Benefit) | $ 558 | $ (2,151) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Abstract] | ||
Computed expected income tax benefit | $ (1,939) | $ (550) |
State income tax (net of federal benefit) | 460 | 534 |
Valuation allowance | 1,988 | 571 |
Nondeductible expenses | 120 | 72 |
Uncertain tax position reserve | (2,575) | |
Deferred adjustment | 94 | (185) |
Other | (165) | (18) |
Income Tax Provision (Benefit) | $ 558 | $ (2,151) |
Effective income tax rate | (6.00%) | 82.20% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes [Abstract] | ||
Defined benefit plans | $ 4,088 | $ 2,998 |
Investments | 114 | 87 |
Tax depreciation less than book depreciation | 1,107 | 1,014 |
Expenses deductible for tax purposes in a year different from the year accrued | 640 | 731 |
Lease liability | 3,806 | 4,538 |
Deferred compensation and benefits | 40 | |
Book amortization in excess of tax amortization | 935 | 987 |
State taxes | 171 | 124 |
Net operating loss carryforward | 10,063 | 7,114 |
Other | 316 | 349 |
Total deferred tax assets | 21,280 | 17,942 |
Valuation allowance | (17,380) | (13,507) |
Total deferred tax assets, net of valuation allowance | 3,900 | 4,435 |
Gross Deferred Tax Liabilities: | ||
Right-of-use asset | (3,117) | (3,706) |
Other | (501) | (472) |
Total deferred tax liabilities | (3,618) | (4,178) |
Net Deferred Tax Assets | $ 282 | $ 257 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 66 | $ 2,641 |
Decrease related to statute of limitations expiring | (2,575) | |
Balance at December 31 | $ 66 | $ 66 |
Pension and Other Retirement _3
Pension and Other Retirement Plans (Narrative) (Details) | 12 Months Ended | ||
Aug. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 5,000,000 | ||
Actuarial gains (losses) | $ (9,496,000) | $ (1,378,000) | |
401 (K) plan [Member] | |||
Defined Contribution Plans | |||
Maximum pretax contribution per employee | 100% | ||
Defined contribution plan, employer matching contribution, percent | 1.50% | ||
Expense recognized | $ 739,000 | 735,000 | |
Other Post-Employment Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic cost (benefit) | 22,000 | 17,000 | |
Recorded liabilities | 982,000 | 1,349,000 | |
Actuarial gains (losses) | $ 322,000 | $ (20,000) | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate of projected benefit obligation | 4.90% | 2.50% | |
Discount rate, net periodic pension expense (benefit) | 2.50% | 2.10% | |
Expected long-term return on plan assets | 2.50% | 5.50% | |
Employer contributions | $ 5,000,000 | ||
Net periodic cost (benefit) | 888,000 | $ (4,158,000) | |
Actuarial gains (losses) | (9,818,000) | $ (1,358,000) | |
Defined Benefit Plan, Estimated Future Employer Contributions | |||
Estimated future employer contributions | $ 0 | ||
Defined Contribution Plans | |||
Number of employee participants | employee | 1,350 | ||
Pension Plan [Member] | Pension Pan, Equity Securities [Member] | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Target allocation of plans' assets | 5% | ||
Allocation of plans' assets | 4.40% | ||
Pension Plan [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Target allocation of plans' assets | 95% | ||
Allocation of plans' assets | 95.60% | ||
Pension Plan [Member] | Liability hedging assets [Member] | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Allocation of plans' assets | 95% |
Pension and Other Retirement _4
Pension and Other Retirement Plans (Schedule of Defined Benefit Plans Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Plan Assets [Roll Forward] | |||
Employer contributions | $ 5,000 | ||
Long-term pension liabilities | $ 19,455 | $ 14,275 | |
Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll forward] | |||
Projected benefit obligation at beginning of year | 219,364 | 233,640 | |
Interest cost | 5,311 | 4,697 | |
Actuarial gain | (42,425) | (6,477) | |
Benefit payments | (12,706) | (12,496) | |
Projected benefit obligation at end of year | 169,544 | 219,364 | |
Defined Benefit Plan, Change in Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 205,089 | 215,120 | |
Return on plan assets | (47,294) | 2,465 | |
Employer contributions | 5,000 | ||
Benefit payments | (12,706) | (12,496) | |
Fair value of plan assets at end of year | 150,089 | 205,089 | |
Funded status | (19,455) | (14,275) | |
Long-term pension liabilities | 19,455 | 14,275 | |
Accumulated benefit obligation | $ 169,544 | $ 219,364 |
Pension and Other Retirement _5
Pension and Other Retirement Plans (Schedule of Net Periodic Pension Benefit) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 5,311 | $ 4,697 |
Expected return on plans' assets | (4,949) | (10,299) |
Amortization of actuarial loss | 526 | 1,444 |
Net periodic pension expense (benefit) | $ 888 | $ (4,158) |
Pension and Other Retirement _6
Pension and Other Retirement Plans (Schedule of Fair Value and Allocation of Plan Assets) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | $ 150,089 | $ 205,089 | $ 215,120 |
Cash And Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 1,608 | 2,749 | |
U.S. Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 3,666 | 6,492 | |
International Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 2,856 | 3,317 | |
Domestic Corporate And Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 72,194 | 96,362 | |
Domestic Corporate Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 69,243 | 95,647 | |
International Corporate And Government Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 522 | 522 | |
Level I - Fair Value, Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 1,608 | 2,749 | |
Level I - Fair Value, Inputs [Member] | Cash And Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 1,608 | 2,749 | |
Level II - Fair Value, Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 148,481 | 202,340 | |
Level II - Fair Value, Inputs [Member] | U.S. Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 3,666 | 6,492 | |
Level II - Fair Value, Inputs [Member] | International Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 2,856 | 3,317 | |
Level II - Fair Value, Inputs [Member] | Domestic Corporate And Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 72,194 | 96,362 | |
Level II - Fair Value, Inputs [Member] | Domestic Corporate Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 69,243 | 95,647 | |
Level II - Fair Value, Inputs [Member] | International Corporate And Government Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | $ 522 | $ 522 |
Pension and Other Retirement _7
Pension and Other Retirement Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Pension and Other Retirement Plans [Abstract] | |
2023 | $ 13,849 |
2024 | 13,817 |
2025 | 13,779 |
2026 | 13,615 |
2027 | 13,473 |
2028-2032 | $ 63,139 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 01, 2022 | Jun. 08, 2021 | |
Shareholders' Equity [Line Items] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Dividends payable, amount per share | $ 0.16 | |||
Dividends paid | $ 11,454 | $ 3,425 | ||
Dividends payable, date declared | Dec. 01, 2022 | |||
Dividends payable, date of record | Feb. 10, 2023 | |||
Dividends payable, date of payment | Mar. 03, 2023 | |||
Series A [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Common stock, shares, outstanding | 4,737,772 | 4,737,580 | ||
Series B [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Common stock, shares, outstanding | 614,718 | 614,910 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ (32,406) | $ (32,468) |
Amortization | 522 | 1,440 |
Actuarial gains (losses) | (9,496) | (1,378) |
Balance, end of period | (41,380) | (32,406) |
Pension Plan [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (32,485) | (32,571) |
Amortization | 526 | 1,444 |
Actuarial gains (losses) | (9,818) | (1,358) |
Balance, end of period | (41,777) | (32,485) |
Other Post-Employment Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 79 | 103 |
Amortization | (4) | (4) |
Actuarial gains (losses) | 322 | (20) |
Balance, end of period | $ 397 | $ 79 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option [Member] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
RSUs [Member] | ||
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) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net loss available to common shareholders | $ (9,786) | $ (467) |
Shares (Denominator) | ||
Weighted average common shares outstanding (basic) | 5,352,490 | 5,352,490 |
Loss Per Share | ||
Basic | $ (1.83) | $ (0.09) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | |
Commitments and Contingencies [Line Items] | |||
Contractual obligations due in next five years | $ 12,283,000 | ||
Operating leases, contractual obligations due after fifth year | 14,342,000 | ||
Dallas Morning News, Inc [Member] | |||
Commitments and Contingencies [Line Items] | |||
Operating lease term | 16 years | ||
Property and Equipment [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lease expense for property and equipment | 4,796,000 | $ 5,018,000 | |
Pension Plan [Member] | |||
Commitments and Contingencies [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 0 |
Supplemental Cash Flow Data (Su
Supplemental Cash Flow Data (Supplemental Disclosures of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Data [Abstract] | ||
Income tax paid, net | $ 619 | $ 666 |
Investments in property, plant and equipment payable | 245 | |
Dividends payable | $ 856 | $ 856 |
Disposal of Assets (Narrative)
Disposal of Assets (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 29, 2022 | May 31, 2019 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash received | $ 22,400,000 | $ 375,000 | |||
Proceeds from sale of assets | 2,000 | ||||
(Loss) gain on sale/disposal of assets, net | (58,000) | (29,000) | |||
Current notes receivable | 22,400,000 | ||||
Allowance for notes receivable | 0 | ||||
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 | ||||
(Loss) gain on sale/disposal of assets, net | 25,908,000 | ||||
Current notes receivable | $ 22,400,000 | ||||
Interest income | $ 616,000 | 1,008,000 | |||
Third Modification Agreement [Member] | Charter DMN Holdings, LP [Member] | Dallas, Texas [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash received | $ 22,516,000 | ||||
Interest rate on unpaid original principal balance of Promissory Note | 6.50% | ||||
Note receivable, due date | Jul. 29, 2022 | ||||
Inactive IP addresses [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of other inactive assets | $ 1,349,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Mar. 09, 2023 | Dec. 31, 2022 | Dec. 01, 2022 | |
Subsequent Event [Line Items] | |||
Dividends Payable, Date Declared | Dec. 01, 2022 | ||
Dividends Payable, Amount Per Share | $ 0.16 | ||
Dividends payable, date of record | Feb. 10, 2023 | ||
Dividends Payable, Date to be Paid | Mar. 03, 2023 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividends Payable, Date Declared | Mar. 09, 2023 | ||
Dividends Payable, Amount Per Share | $ 0.16 | ||
Dividends payable, date of record | May 12, 2023 | ||
Dividends Payable, Date to be Paid | Jun. 02, 2023 |