Delaware
(State or other jurisdiction of incorporation or organization) |
38-3765318
(I.R.S. Employer Identification No.) |
|
P. O. Box
224866
Dallas, Texas |
75222-4866
(Zip Code) |
|
(Address
of principal executive offices)
|
Title of each class | Name of each exchange on which registered | |
Series A Common Stock, $.01 par value
Preferred Share Purchase Rights |
New York Stock Exchange |
Large accelerated filer [ ]
|
Accelerated filer [ X ] | |
Non-accelerated
filer [ ]
|
Smaller reporting company [ ] |
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29 | ||||||||
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34 | ||||||||
INDEX TO
CONSOLIDATED FINANCIAL STATEMENTS
|
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35 | ||||||||
38 | ||||||||
39 | ||||||||
41 | ||||||||
42 | ||||||||
43 | ||||||||
EX-10.1.8 | ||||||||
EX-10.2.5 | ||||||||
EX-10.3.6 | ||||||||
EX-12 | ||||||||
EX-21 | ||||||||
EX-23.1 | ||||||||
EX-23.2 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32 |
Item 1.
Business
Table of Contents
Table of Contents
2010
2009
2008
Daily
Sunday
Daily
Sunday
Daily
Sunday
Newspaper
Circulation
(a)
Circulation
Circulation
(a)
Circulation
Circulation
(a)
Circulation
262,227
(b)
373,815
(b)
274,143
(c)
404,227
(c)
350,867
(c)
498,834
(c)
187,442
(b)
173,711
(c)
124,387
(c)
449,669
373,815
447,854
404,227
475,254
498,834
101,123
(d)
137,339
(d)
112,310
(e)
154,300
(e)
138,538
(f)
186,571
(f)
109,079
(g)
112,357
(g)
113,356
(h)
122,691
(h)
149,893
(h)
160,016
(h)
10,786
(g)
10,208
(h)
9,478
(h)
119,865
112,357
123,564
122,691
159,371
160,016
(a)
Daily circulation is defined as a
Monday through Saturday
six-day
average.
(b)
Average circulation data for
The
Dallas Morning News
and its Niche publications is obtained
from its Publishers Statement for the six-month period
ended September 30, 2010, as filed with the Audit Bureau of
Circulations (Audit Bureau), subject to audit and from its
Publishers Statement for the six-month period ended
September 30, 2010, as filed with Certified Audit of
Circulations, Inc., subject to audit. For the first time,
The
Dallas Morning News
circulation figures included
The Denton Record-Chronicle
. If
The Denton
Record-Chronicle
had been excluded,
The Dallas Morning
News
daily and Sunday circulation numbers for the
six-month period ending September 30, 2010, would have been
252,724 and 361,576, respectively.
(c)
Average circulation data for
The
Dallas Morning News
and its Niche publications is obtained
from its Publishers Statement for the six-month periods
ended September 30, 2009 and 2008, as filed with the Audit
Bureau and from its Publishers Statement for the six-month
periods ended September 30, 2009 and 2008, as filed with
Certified Audit of Circulations, Inc.
(d)
Average circulation data for
The
Providence Journal
is obtained from its Publishers
Statement for the twenty-six weeks ended September 27,
2010, as filed with the Audit Bureau, subject to audit.
(e)
Average circulation data for
The
Providence Journal
is obtained from its Publishers
Statement for the twenty-six weeks ended September 30,
2009, as filed with the Audit Bureau.
(f)
Average circulation data for
The
Providence Journal
is obtained from its Publishers
Statement for the twenty-six weeks ended September 23,
2008, as filed with the Audit Bureau.
(g)
Average circulation data for
The
Press-Enterprise
and its Niche publications is obtained from
its Publishers Statement for the six months ended
September 30, 2010, as filed with the Audit Bureau, subject
to audit and from its Annual Audit Report for the period ended
September 30, 2010, as filed with Verified Audit
Circulation, subject to audit.
(h)
Average circulation data for 2009
and 2008 for
The Press-Enterprise
and its Niche
publications is obtained from its Publishers Statement for
the six months ended September 30, 2009 and 2008,
respectively, as filed with the Audit Bureau and from its Annual
Audit Report ended September 30, 2009 and 2008,
respectively, as filed with Verified Audit Circulation.
Table of Contents
established, well known and trusted brands within each of our
markets
a strong, cohesive and stable senior management team, with
significant sector experience, focused on strategy and operations
the ability of four daily metropolitan newspapers to produce
superior local content on a scale that competitors are unlikely
to duplicate
the ability to leverage our local content, distribution
platforms, technologies, and partnerships in order to develop
and sell new products
the ability to market, in print
and/or
online, products or services to large audiences at low marginal
costs
sales personnel with knowledge of the marketplace in which the
Company does business and, to varying degrees, relationships
with current and potential advertising clients
Table of Contents
a conservative capital structure and credit facility that
provide flexibility for our
go-to-market
strategies and operations
a highly liquid balance sheet and positive operating cash flow
to fund future operations, investments and obligations of the
Company
continue to manage our business structure proactively to keep
costs closely aligned with revenues; maintain a strong liquidity
position to support future initiatives; and, provide flexibility
to meet strategic investment opportunities and other cash flow
requirements
maintain our commitment to produce quality local content in the
communities we serve on a scale others are unlikely to match
efficiently manage our content to drive revenue over multiple
delivery platforms, including print, the Internet and mobile
devices
maximize interactive revenue and implement strategies to market
print and digital products in an integrated manner that creates
sustainable revenue and earnings
optimize and leverage marketing and sales capabilities and
implement initiatives to enable advertisers to reach high value
consumers more effectively
enhance our sales force capabilities to sell all products
effectively across all platforms
strengthen and improve our underlying technology platform while
continuously leveraging technological and other innovations to
reduce expenses
Table of Contents
Table of Contents
Item 1A.
Risk
Factors
Table of Contents
Table of Contents
Table of Contents
Item 1B.
Unresolved
Staff Comments
Table of Contents
Item 2.
Properties
Operations
Ownership
Location
Owned
Dallas, Texas, downtown
Owned
Plano, Texas
Owned
Dallas, Texas
Owned
Dallas, Texas
Owned
Denton, Texas, downtown
Leased
Phoenix, Arizona; Las Vegas, Nevada
Owned
Providence, Rhode Island, downtown
Owned
Providence, Rhode Island
Owned
Riverside, California
Owned
Riverside, California
(a)
The Companys and
The
Dallas Morning News
headquarters include two office
buildings, a parking garage and adjacent land that are part of a
ten-acre
campus in downtown Dallas, Texas. Other properties on this
campus are owned and used by Belo in its operations. The Company
has leased certain storage facilities in its parking garage and
a parcel of land to Belo under a long-term ground lease which
provides an option to purchase for nominal value.
(b)
In the third quarter of 2009, the
Company vacated its collating facility in Southern Dallas and
consolidated collating operations at its Plano facility. The
Southern Dallas facility is held for sale.
Item 3.
Legal
Proceedings
Table of Contents
Item 4.
Removed
and Reserved
Item 5.
Market
for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
High
Low
Close
Fourth quarter
$
9.33
$
6.75
$
8.70
Third quarter
$
7.99
$
6.01
$
7.07
Second quarter
$
9.16
$
6.00
$
6.64
First quarter
$
8.04
$
5.35
$
7.20
Fourth quarter
$
5.94
$
3.05
$
5.76
Third quarter
$
4.00
$
0.92
$
3.23
Second quarter
$
2.24
$
0.93
$
0.98
First quarter
$
2.80
$
0.59
$
0.98
Table of Contents
Table of Contents
Item 6.
Selected
Financial Data
As of and For the
Years Ended December 31,
In thousands
(except per share amounts)
2010
2009
2008
2007
2006
$
487,308
$
518,348
$
637,314
$
738,668
$
817,733
625,377
636,659
699,271
1,056,100
760,376
(138,069
)
(118,311
)
(61,957
)
(317,432
)
57,357
6,259
(2,059
)
(3,420
)
(31,067
)
(30,310
)
(7,575
)
(12,475
)
(15,857
)
(1,487
)
11,868
$
(124,235
)
$
(107,895
)
$
(49,520
)
$
(347,012
)
$
15,179
$
420,049
$
404,427
$
552,263
$
619,710
$
994,815
$
$
$
$
378,916
$
353,893
$
$
$
0.625
$
N/A
$
N/A
(a)
Total operating costs expense
include charges as follows: in 2010, a $132,346 charge for the
withdrawal from the GBD Pension Plan and non-cash asset
impairment charges of $3,404; and in 2009, 2008 and 2007
non-cash asset impairment charges of $106,389, $18,680 and
$344,424, respectively.
(b)
Other income and expense includes
$2,983, $34,834 and $31,814 for 2008, 2007 and 2006,
respectively, for interest on intercompany notes payable to
Belo. As of February 8, 2008, in connection with Belo
Corps spin-off of the Company, Belo contributed to the
capital of A. H. Belo and its subsidiaries the net
intercompany indebtedness owed to Belo by the Company and its
subsidiaries or assigned indebtedness to the Company. This
effectively settled the notes payable balances, (see the
Consolidated Financial Statements, Note 7 Long-
term Debt).
(c)
Amounts represent the long-term
portion of notes payable to Belo (see the Consolidated Financial
Statements, Note 7 Long-term Debt).
Item 7.
Managements
Discussion and Analysis of Financial Condition and Results of
Operations
Table of Contents
The Company recorded an expense of $132,346 related to
withdrawal from the GBD Pension Plan and establishment of the
New Pension Plans.
The Company disposed of assets during 2010 and received proceeds
of $9,765. These transactions resulted in a net gain of $6,402,
recorded in other (expense) income.
The Company and Belo agreed to allow the Company to carry back
$4,732 of 2009 tax losses against Belos 2008 taxable
income in exchange for Belo retaining 25 percent of the
refund, or $1,183, which was recorded to Other expense. The
Company has recorded a receivable for the remaining refund of
$3,549 in Other current assets, which it expects to receive in
the first quarter of 2011.
The Company recorded approximately $2,100 in expense related to
the anticipated settlement of certain claims against the Company.
The Company recorded a non-cash charge of $2,448, fully
impairing its investment in Sawbuck Realty, LLC, an investment
recorded under the equity method.
Table of Contents
Percentage
Percentage
Years
Ended December 31,
2010
Change
2009
Change
2008
$
487,308
(6.0
)%
$
518,348
(18.7
)%
$
637,314
625,377
(1.8
)%
636,659
(9.0
)%
699,271
6,259
(404.0
)%
(2,059
)
(39.8
)%
(3,420
)
(131,810
)
9.5
%
(120,370
)
84.1
%
(65,377
)
(7,575
)
(39.3
)%
(12,475
)
(21.3
)%
(15,857
)
$
(124,235
)
15.1
%
$
(107,895
)
117.9
%
$
(49,520
)
Percentage
Percentage
Years
Ended December 31,
2010
Change
2009
Change
2008
$
310,309
(11.9
)%
$
352,368
(27.3
)%
$
484,437
141,091
3.3
%
136,549
10.7
%
123,381
35,908
22.0
%
29,431
(0.2
)%
29,496
$
487,308
(6.0
)%
$
518,348
(18.7
)%
$
637,314
Percentage
Percentage
Years
Ended December 31,
2010
Change
2009
Change
2008
$
314,049
(5.5
)%
$
332,183
(17.8
)%
$
404,214
99,849
(5.4
)%
105,555
(19.7
)%
131,469
73,410
(8.9
)%
80,610
(20.7
)%
101,631
$
487,308
(6.0
)%
$
518,348
(18.7
)%
$
637,314
Table of Contents
Percent
Percent
Percent
of Total
Percentage
of Total
Percentage
of Total
Years Ended
December 31,
2010
Revenues
Change
2009
Revenues
Change
2008
Revenues
$
199,245
63.4
%
(9.8
)%
$
220,972
66.5
%
(26.4
)%
$
300,099
74.2
%
85,311
(13.7
)%
98,873
(24.5
)%
131,017
31,137
(9.2
)%
34,290
(45.2
)%
62,549
60,266
(6.7
)%
64,611
(15.0
)%
76,007
22,531
(2.9
)%
23,198
(24.0
)%
30,526
92,210
29.4
%
4.1
%
88,554
26.7
%
10.6
%
80,097
19.8
%
22,594
7.2
%
(0.3
)%
22,657
6.8
%
(5.7
)%
24,018
6.0
%
$
314,049
100.0
%
(5.5
)%
$
332,183
100.0
%
(17.8
)%
$
404,214
100.0
%
Table of Contents
Percent
Percent
Percent
of Total
Percentage
of Total
Percentage
of Total
Years Ended
December 31,
2010
Revenues
Change
2009
Revenues
Change
2008
Revenues
$
59,558
59.6
%
(16.1
)%
$
71,014
67.3
%
(30.9
)%
$
102,704
78.1
%
20,446
(15.5
)%
24,198
(40.2
)%
40,497
15,030
(24.0
)%
19,786
(31.0
)%
28,677
16,459
(11.9
)%
18,689
(21.7
)%
23,875
7,623
(8.6
)%
8,341
(13.6
)%
9,655
34,918
35.0
%
6.0
%
32,953
31.2
%
18.7
%
27,765
21.1
%
5,373
5.4
%
238.4
%
1,588
1.5
%
58.8
%
1,000
0.8
%
$
99,849
100.0
%
(5.4
)%
$
105,555
100.0
%
(19.7
)%
$
131,469
100.0
%
Percent
Percent
Percent
of Total
Percentage
of Total
Percentage
of Total
Years Ended
December 31,
2010
Revenues
Change
2009
Revenues
Change
2008
Revenues
$
51,506
70.2
%
(14.7
)%
$
60,383
74.9
%
(26.0
)%
$
81,634
80.3
%
13,944
(24.1
)%
18,365
(33.6
)%
27,646
16,677
(17.4
)%
20,197
(29.3
)%
28,560
14,469
(5.0
)%
15,238
(21.0
)%
19,292
6,416
(2.5
)%
6,583
7.3
%
6,136
13,963
19.0
%
(7.2
)%
15,041
18.7
%
(3.1
)%
15,519
15.3
%
7,941
10.8
%
53.1
%
5,186
6.4
%
15.8
%
4,478
4.4
%
$
73,410
100.0
%
(8.9
)%
$
80,610
100.0
%
(20.7
)%
$
101,631
100.0
%
Table of Contents
Percentage
Percentage
Years
Ended December 31,
2010
Change
2009
Change
2008
$
212,998
(0.7
)%
$
214,600
(24.5
)%
$
284,285
183,017
(12.6
)%
209,327
(15.7
)%
248,423
55,472
(9.0
)%
60,987
(35.5
)%
94,608
32,902
(15.3
)%
38,857
(16.9
)%
46,776
5,238
(19.4
)%
6,499
%
6,499
3,404
(96.8
)%
106,389
469.5
%
18,680
132,346
%
%
$
625,377
(1.8
)%
$
636,659
(9.0
)%
$
699,271
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Sources of
Liquidity
December 31,
2010
$
86,291
56,793
19,976
$
163,060
Table of Contents
Nature of
Commitment
Total
2011
2012
2013
2014
2015
Thereafter
$
6,213
$
3,323
$
1,445
$
1,445
$
$
$
18,426
4,094
3,531
2,899
2,580
1,721
3,601
$
24,639
$
7,417
$
4,976
$
4,344
$
2,580
$
1,721
$
3,601
Item 7A.
Quantitative
and Qualitative Disclosures about Market Risk
Table of Contents
Item 8.
Financial
Statements and Supplementary Data
Item 9.
Changes
in and Disagreements with Accountants on Accounting and
Financial Disclosure
Item 9A.
Controls
and Procedures
(a)
Evaluation of
Disclosure Controls and Procedures.
Preparation of more robust documentation of the Companys
analyses and conclusions concerning the Companys critical
accounting policies
Preparation of more detailed analyses of conclusions reached in
(a) the selection of new accounting policies and
(b) accounting for significant non-routine transactions
Enhancement of management review controls over conclusions
reached with regard to documentation of critical accounting
policies, selection of new policies and accounting for
significant non-routine transactions
(b)
Managements
Report on Internal Control Over Financial Reporting
Table of Contents
(c)
Changes in
Internal Control Over Financial Reporting
Preparation of more robust documentation of the Companys
analyses and conclusions concerning the Companys critical
accounting policies
Preparation of more detailed analyses of conclusions reached in
(a) the selection of new accounting policies and
(b) accounting for significant non-routine transactions
Enhancement of management review controls over conclusions
reached with regard to documentation of critical accounting
policies, selection of new policies and accounting for
significant non-routine transactions
Item 9B.
Other
Information
Table of Contents
Item 10.
Directors,
Executive Officers and Corporate Governance
Item 11.
Executive
Compensation
Item 12.
Security
Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
Item 13.
Certain
Relationships and Related Transactions, and Director
Independence
Table of Contents
Item 14.
Principal
Accountant Fees and Services
Table of Contents
Item 15.
Exhibits
and Consolidated Financial Statements
(a)(1)
The consolidated financial statements listed in the Index to
Consolidated Financial Statements included in the table of
contents are filed as part of this report.
(2)
All financial statement schedules have been omitted because they
are not applicable, are not required, or the required
information in shown in the consolidated financial statements or
notes thereto.
(3)
Exhibits
Exhibits marked with an asterisk (*) are incorporated by
reference to documents previously filed by the Company with the
Securities and Exchange Commission, as indicated. All other
documents are filed with this report. Exhibits marked with a
tilde
(
~
)
are management contracts, compensatory plan contracts or
arrangements filed pursuant to Item 601(b)(10)(iii)(A) of
Regulation S-K.
Exhibit
Number
Description
2
.1
*
Separation and Distribution Agreement by and between Belo Corp.
and A. H. Belo Corporation dated as of
February 8, 2008 (Exhibit 2.1 to the Companys
Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
February 12, 2008 (Securities and Exchange Commission File
No. 001-33741)
(the February 12, 2008
Form 8-K))
3
.1
*
Amended and Restated Certificate of Incorporation of the Company
(Exhibit 3.1 to Amendment No. 3 to the Companys
Form 10 dated January 18, 2008 (Securities and
Exchange Commission File
No. 001-33741)
(the Third Amendment to Form 10))
3
.2
*
Certificate of Designations of Series A Junior
Participating Preferred Stock of the Company dated
January 11, 2008 (Exhibit 3.2 to Post-Effective
Amendment No. 1 to Form 10 dated January 31, 2008
(Securities and Exchange Commission File
No. 001-33741))
3
.3
*
Amended and Restated Bylaws of the Company, effective
January 11, 2008 (Exhibit 3.3 to the Third Amendment
to Form 10)
4
.1
*
Certain rights of the holders of the Companys Common Stock
are set forth in
Exhibits 3.1-3.3
above
4
.2
*
Specimen Form of Certificate representing shares of the
Companys Series A Common Stock (Exhibit 4.2 to
the Third Amendment to Form 10)
4
.3
*
Specimen Form of Certificate representing shares of the
Companys Series B Common Stock (Exhibit 4.3 to
the Third Amendment to Form 10)
4
.4
*
Rights Agreement dated as of January 11, 2008 between the
Company and Mellon Investor Services LLC (Exhibit 4.4 to
the Third Amendment to Form 10)
10
.1
Financing agreements:
(1)
*
Credit Agreement dated as of February 4, 2008 among the
Company, as Borrower, JPMorgan Chase, N.A., as Administrative
Agent, JPMorgan Securities Inc. and Banc of America Securities
LLC, as Joint Lead Arrangers and Book runners, Bank of America,
N.A., as Syndication Agent, SunTrust Bank and Capitol One Bank,
N.A. as Co-Documentation Agents (Exhibit 99.1 to the
Companys Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
February 5, 2008 (Securities and Exchange Commission File
No. 001-33741))
(2)
*
First Amendment and Waiver to the Credit Agreement dated as of
October 23, 2008 (Exhibit 10.1 to the Companys
Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
October 24, 2008 (Securities and Exchange Commission File
No. 001-33741))
(3)
*
Amended and Restated Credit Agreement dated as of
January 30, 2009, (Exhibit 10.1 to the Companys
Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
February 2, 2009 (Securities and Exchange Commission File
No. 001-33741)
(the February 2, 2009
Form 8-K))
(4)
*
Amended and Restated Pledge and Security Agreement dated as of
January 30, 2009 (Exhibit 10.2 to the February 2,
2009 From
8-K)
(5)
*
First Amendment to the Amended and Restated Credit Agreement
dated as of August 18, 2009 (Exhibit 10.1(5) to the
Companys Quarterly Report on
Form 10-Q
file with the Securities and Exchange Commission on
December 13, 2009 (Securities and Exchange Commission File
No. 001-33741))
Table of Contents
Exhibit
Number
Description
(6)
*
Second Amendment to the Amended and Restated Credit Agreement
dated as of December 3, 2009, 2009 (Exhibit 10.1 to
the Companys Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
December 4, 2009 (Securities and Exchange Commission File
No. 001-33741))
(7)
*
Third Amendment to the Amended and Restated Credit Agreement
dated as of August 18, 2010 (Exhibit 10.1(7) to the
Companys Quarterly Report on
Form 10-Q
filed with the Securities and Exchange Commission on
November 3, 2010 (Securities and Exchange Commission File
No. 001-33741))
(8)
Fourth Amendment to the Amended and Restated Credit Agreement
dated March 10, 2011
10
.2
Compensatory plans and Arrangements:
~
(1)
*
A. H. Belo Corporation Savings Plan (Exhibit 10.4
to the February 12, 2008
Form 8-K)
*
(a)
First Amendment to the A. H. Belo Savings Plan dated
September 23, 2008 (Exhibit 10.2(1)(A) to the
Companys Quarterly Report on
Form 10-Q
filed with the Securities and Exchange Commission on
November 14, 2008 (Securities and Exchange Commission File
No. 001-33741))
*
(b)
Second Amendment to the A. H. Belo Savings Plan
effective March 27, 2009 (Exhibit 10.1 to the
Companys Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
April 2, 2009 (Securities and Exchange Commission File
No. 001-33741)
(the April 2, 2009
Form 8-K))
*
(c)
Third Amendment to the A. H. Belo Savings Plan
effective March 31, 2009 (Exhibit 10.2 to the
April 2, 2009
Form 8-K)
*
(d)
Fourth Amendment to the A. H. Belo Savings Plan dated
September 10, 2009, (Exhibit 10.1 to the
Companys Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
September 10, 2009 (Securities and Exchange Commission File
No. 001-33741))
~
(2)
*
A. H. Belo Corporation 2008 Incentive Compensation
Plan (Exhibit 10.5 to the February 12, 2008
Form 8-K)
*
(a)
First Amendment to A. H. Belo 2008 Incentive
Compensation Plan effective July 23, 2008
(Exhibit 10.2(2)(A) to the Companys Quarterly Report
on
Form 10-Q
filed with the Securities and Exchange Commission on
August 14, 2008 (Securities and Exchange Commission File
No. 001-33741))
*
(b)
Form of A. H. Belo 2008 Incentive Compensation Plan
Non-Employee Director Evidence of Grant (for Non-Employee
Director Awards) (Exhibit 10.2.2(b) to the Companys
Quarterly Report on
Form 10-Q
filed with the Securities and Exchange Commission on
May 13, 2010 (Securities and Exchange Commission File
No. 001-33741)
(the 1st Quarter 2010
Form 10-Q))
*
(c)
Form of A. H. Belo 2008 Incentive Compensation Plan
Evidence of Grant (for Employee Awards) (Exhibit 10.2.2(c)
to the 1st Quarter 2010
Form 10-Q)
~
(3)
*
A. H. Belo Pension Transition Supplement Restoration
Plan effective January 1, 2008 (Exhibit 10.6 to the
February 12, 2008
Form 8-K)
*
(a)
First Amendment to the A. H. Belo Pension Transition
Supplement Restoration Plan dated March 31, 2009
(Exhibit 10.4 to the April 2, 2009 From
8-K)
~
(4)
*
A. H. Belo Corporation Change In Control Severance
Plan (Exhibit 10.7 to the February 12, 2008
Form 8-K)
*
(a)
Amendment to the A. H. Belo Change in Control
Severance Plan dated March 31, 2009 (Exhibit 10.3 to
the April 2, 2009
Form 8-K)
~
(5)
John C. McKeon Retention and Relocation Agreement effective
September 22, 2010
10
.3
Agreements relating to the Distribution of A. H. Belo:
(1)
*
Tax Matters Agreement by and between Belo Corp. and
A. H. Belo Corporation dated as of February 8,
2008 (Exhibit 10.1 to the February 12, 2008
Form 8-K)
*
(a)
First Amendment to Tax Matters Agreement by and between Belo
Corp. and A. H. Belo Corporation dated
September 14, 2009 (Exhibit 10.1 to the Companys
Current Report on
Form 8-K
filed with the Securities and Exchange Commission on
September 15, 2009 (Securities and Exchange Commission file
No. 00-00371))
(2)
*
Employee Matters Agreement by and between Belo Corp. and
A. H. Belo Corporation dated as of February 8,
2008 (Exhibit 10.2 to the February 12, 2008
Form 8-K)
*
(a)
Amendment to Employee Matters Agreement as set forth in the
Pension Plan Transfer Agreement dated as of October 6, 2010
(Exhibit 10.1 to the October 8, 2010
Form 8-K)
(3)
*
Services Agreement by and between Belo Corp. and
A. H. Belo Corporation dated as of February 8,
2008 (Exhibit 10.3 to the February 12, 2008
Form 8-K)
(4)
*
Separation and Distribution Agreement by and between Belo Corp.
and A. H. Belo Corporation dated as of
February 8, 2008 (See Exhibit 2.1 to the
February 12, 2008
Form 8-K)
(5)
*
Pension Plan Transfer Agreement by and between Belo Corp. and
A. H. Belo Corporation dated as of October 6,
2010 (Exhibit 10.1 to the Companys Report on
Form 8-K
filed with the Securities and Exchange Commission on
October 8, 2010 (Securities and Exchange Commission File
No. 001-33741)
(the October 8, 2010
Form 8-K))
(6)
Agreement among the Company, Belo Corp. and the Pension Benefit
Guaranty Corporation, effective March 9, 2011
Table of Contents
Exhibit
Number
Description
12
Statements re: Computation of Ratios
16
.
*
Letter from Ernst and Young LLP, dated April 7, 2009, to
the Securities and Exchange Commission related to
A. H. Belos change in independent accounting
firm (Exhibit 16.1 to the April 7, 2009
Form 8-K)
21
Subsidiaries of the Company
23
.1
Consent of KPMG LLP
23
.2
Consent of Ernst & Young LLP
24
Power of Attorney (set forth on the signature page(s) hereof)
31
.1
Certification of Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
31
.2
Certification of Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
32
Certifications of Chief Executive Officer and Chief Financial
Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Table of Contents
By:
Signature
Title
Date
Chairman of the Board, President and
Chief Executive Officer
March 11, 2011
Director
March 11, 2011
Director
March 11, 2011
Director
March 11, 2011
Director
March 11, 2011
Director
March 11, 2011
Director
March 11, 2011
Senior Vice President/
Chief Financial Officer
and Treasurer (Principal Financial Officer)
March 11, 2011
Vice President/
Controller
(Principal Accounting Officer)
March 11, 2011
Table of Contents
Table of Contents
Table of Contents
March 16, 2009,
Table of Contents
Years ended December 31, | ||||||||||||||
In thousands, except per share amounts | 2010 | 2009 | 2008 | |||||||||||
Net Operating Revenues
|
||||||||||||||
Advertising
|
$ | 310,309 | $ | 352,368 | $ | 484,437 | ||||||||
Circulation
|
141,091 | 136,549 | 123,381 | |||||||||||
Printing and distribution
|
35,908 | 29,431 | 29,496 | |||||||||||
|
||||||||||||||
Total net operating revenues
|
487,308 | 518,348 | 637,314 | |||||||||||
Operating Costs and Expenses
|
||||||||||||||
Salaries, wages and employee benefits
|
212,998 | 214,600 | 284,285 | |||||||||||
Other production, distribution and operating costs
|
183,017 | 209,327 | 248,423 | |||||||||||
Newsprint, ink and other supplies
|
55,472 | 60,987 | 94,608 | |||||||||||
Depreciation
|
32,902 | 38,857 | 46,776 | |||||||||||
Amortization
|
5,238 | 6,499 | 6,499 | |||||||||||
Asset impairments
|
3,404 | 106,389 | 18,680 | |||||||||||
Pension plan withdrawal
|
132,346 | | | |||||||||||
|
||||||||||||||
Total operating costs and expenses
|
625,377 | 636,659 | 699,271 | |||||||||||
|
||||||||||||||
Loss from operations
|
(138,069 | ) | (118,311 | ) | (61,957 | ) | ||||||||
Other Income (Expense), Net
|
||||||||||||||
Interest expense
|
(808 | ) | (1,382 | ) | (4,028 | ) | ||||||||
Other (expense) income, net
|
7,067 | (677 | ) | 608 | ||||||||||
|
||||||||||||||
Total other income, (expense), net
|
6,259 | (2,059 | ) | (3,420 | ) | |||||||||
Loss before income taxes
|
(131,810 | ) | (120,370 | ) | (65,377 | ) | ||||||||
Income tax benefit
|
(7,575 | ) | (12,475 | ) | (15,857 | ) | ||||||||
|
||||||||||||||
Net loss
|
$ | (124,235 | ) | $ | (107,895 | ) | $ | (49,520 | ) | |||||
|
||||||||||||||
Net loss per share:
|
||||||||||||||
Basic and diluted
|
$ | (5.92 | ) | $ | (5.25 | ) | $ | (2.42 | ) | |||||
Weighted average shares outstanding:
|
||||||||||||||
Basic and diluted
|
20,992 | 20,548 | 20,478 | |||||||||||
Assets | December 31, | |||||||||
In thousands, except share and share amounts | 2010 | 2009 | ||||||||
Current assets:
|
||||||||||
Cash and cash equivalents
|
$ | 86,291 | $ | 24,503 | ||||||
Accounts receivable (net of allowance of $3,853 and $6,505 at
December 31, 2010 and December 31, 2009, respectively)
|
56,793 | 62,977 | ||||||||
Funds held by Belo Corp. for future pension payments
|
3,410 | 11,978 | ||||||||
Inventories
|
12,646 | 10,460 | ||||||||
Deferred income taxes
|
1,394 | | ||||||||
Assets held for sale
|
5,268 | 5,268 | ||||||||
Prepaids and other current assets
|
7,157 | 6,758 | ||||||||
Total current assets
|
172,959 | 121,944 | ||||||||
Property, plant and equipment at cost:
|
||||||||||
Land
|
26,789 | 27,844 | ||||||||
Buildings and improvements
|
207,486 | 211,793 | ||||||||
Publishing equipment
|
281,254 | 348,089 | ||||||||
Other
|
139,580 | 146,174 | ||||||||
Advance payments on property, plant and equipment
|
5,520 | 12,996 | ||||||||
Total property, plant and equipment
|
660,629 | 746,896 | ||||||||
Less accumulated depreciation
|
483,953 | 543,567 | ||||||||
Property, plant and equipment, net
|
176,676 | 203,329 | ||||||||
Intangible assets, net
|
22,189 | 27,427 | ||||||||
Goodwill
|
24,582 | 24,582 | ||||||||
Investments
|
16,661 | 21,314 | ||||||||
Deferred income taxes, net
|
2,127 | | ||||||||
Other assets
|
4,855 | 5,831 | ||||||||
Total assets
|
$ | 420,049 | $ | 404,427 | ||||||
Liabilities and Shareholders Equity | December 31, | |||||||||
In thousands, except share and share amounts | 2010 | 2009 | ||||||||
Current liabilities:
|
||||||||||
Accounts payable
|
$ | 29,159 | $ | 19,191 | ||||||
Accrued compensation and benefits
|
17,139 | 11,692 | ||||||||
Pension liabilities
|
54,833 | | ||||||||
Other accrued expenses
|
10,309 | 18,096 | ||||||||
Advance subscription payments
|
23,057 | 26,713 | ||||||||
Total current liabilities
|
134,497 | 75,692 | ||||||||
Long-term pension liabilities
|
77,513 | | ||||||||
Other post-employment benefits
|
3,492 | 3,876 | ||||||||
Deferred income taxes, net
|
| 223 | ||||||||
Other liabilities
|
4,674 | 3,039 | ||||||||
Commitments and contingent liabilities
|
||||||||||
Shareholders equity:
|
||||||||||
Preferred stock, $.01 par value. Authorized
2,000,000 shares; none issued
|
| | ||||||||
Common stock, $.01 par value. Authorized
125,000,000 shares
|
||||||||||
Series A: issued 18,896,876 and 18,248,970 shares at
December 31, 2010 and December 31, 2009, respectively
|
188 | 182 | ||||||||
Series B: issued 2,392,074 and 2,507,590 shares at
December 31, 2010 and December 31, 2009, respectively
|
24 | 25 | ||||||||
Additional paid-in capital
|
491,542 | 488,241 | ||||||||
Accumulated other comprehensive loss
|
2,569 | 3,364 | ||||||||
Accumulated deficit
|
(294,450 | ) | (170,215 | ) | ||||||
Total shareholders equity
|
199,873 | 321,597 | ||||||||
Total liabilities and shareholders equity
|
$ | 420,049 | $ | 404,427 | ||||||
In thousands, except share amounts | ||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
COMMON STOCK |
Additional
|
Other
|
||||||||||||||||||||||||||||||
Shares
|
Shares
|
Paid-in
|
Comprehensive
|
Accumulated
|
Belo Corp.
|
|||||||||||||||||||||||||||
Series A | Series B | Amount | Capital | Income/(Loss) | Deficit | Equity | Total | |||||||||||||||||||||||||
Balance at December 31, 2007
|
| | $ | | $ | | $ | | $ | | $ | 86,940 | $ | 86,940 | ||||||||||||||||||
Net loss
|
| | | | | (49,520 | ) | | (49,520 | ) | ||||||||||||||||||||||
Other Comprehensive Loss:
|
||||||||||||||||||||||||||||||||
Other post-employment benefits, net of tax
|
| | | | (458 | ) | | | (458 | ) | ||||||||||||||||||||||
Total Comprehensive Loss
|
| | | | | | | (49,978 | ) | |||||||||||||||||||||||
Contribution by Belo Corp.
|
| | | 484,007 | | | (86,940 | ) | 397,067 | |||||||||||||||||||||||
Issuance of stock in the Distribution
|
17,603,499 | 2,848,496 | 204 | (204 | ) | | | | | |||||||||||||||||||||||
Issuance of shares for restricted stock units
|
26,970 | | | | | | | | ||||||||||||||||||||||||
Conversion of Series B to Series A
|
144,080 | (144,080 | ) | | | | | | | |||||||||||||||||||||||
Share-based compensation
|
| | | 3,302 | | | | 3,302 | ||||||||||||||||||||||||
Dividends
|
| | | | | (12,800 | ) | | (12,800 | ) | ||||||||||||||||||||||
Balance at December 31, 2008
|
17,774,549 | 2,704,416 | 204 | 487,105 | (458 | ) | (62,320 | ) | | 424,531 | ||||||||||||||||||||||
Net loss
|
| | | | | (107,895 | ) | | (107,895 | ) | ||||||||||||||||||||||
Other Comprehensive Loss:
|
||||||||||||||||||||||||||||||||
Other post-employment benefits, net of tax
|
| | | | 3,822 | | | 3,822 | ||||||||||||||||||||||||
Total Comprehensive Loss
|
| | | | | | | (104,073 | ) | |||||||||||||||||||||||
Contribution to Belo Corp.
|
| | | (1,453 | ) | | | | (1,453 | ) | ||||||||||||||||||||||
Issuance of shares for restricted stock units
|
65,595 | | 1 | (1 | ) | | | | | |||||||||||||||||||||||
Issuance of shares for stock option exercises
|
148,000 | 64,000 | 2 | 616 | | | | 618 | ||||||||||||||||||||||||
Conversion of Series B to Series A
|
260,826 | (260,826 | ) | | | | | | | |||||||||||||||||||||||
Share-based compensation
|
| | | 1,974 | | | | 1,974 | ||||||||||||||||||||||||
Balance at December 31, 2009
|
18,248,970 | 2,507,590 | 207 | 488,241 | 3,364 | (170,215 | ) | | 321,597 | |||||||||||||||||||||||
Net loss
|
| | | | | (124,235 | ) | | (124,235 | ) | ||||||||||||||||||||||
Other Comprehensive Loss:
|
||||||||||||||||||||||||||||||||
Other post-employment benefits, net of tax
|
| | | | (795 | ) | | | (795 | ) | ||||||||||||||||||||||
Total Comprehensive Loss
|
| | | | | | | 196,567 | ||||||||||||||||||||||||
Issuance of shares for restricted stock units
|
79,137 | | 1 | (1 | ) | | | | | |||||||||||||||||||||||
Issuance of shares from stock option exercises
|
360,963 | 92,290 | 4 | 1,362 | | | | 1,366 | ||||||||||||||||||||||||
Conversion of Series B to Series A
|
207,806 | (207,806 | ) | | | | | | | |||||||||||||||||||||||
Share-based compensation
|
| | | 1,940 | | | | 1,940 | ||||||||||||||||||||||||
Balance at December 31, 2010
|
18,896,876 | 2,392,074 | $ | 212 | $ | 491,542 | $ | 2,569 | $ | (294,450 | ) | $ | | $ | 199,873 | |||||||||||||||||
In thousands | Years Ended December 31, | |||||||||||||
2010 | 2009 | 2008 | ||||||||||||
Operations
|
||||||||||||||
Net loss
|
$ | (124,235 | ) | $ | (107,895 | ) | $ | (49,520 | ) | |||||
Adjustments to reconcile net loss to net cash provided by
operations:
|
||||||||||||||
Pension plan withdrawal
|
132,346 | | | |||||||||||
Depreciation and amortization
|
38,140 | 45,356 | 53,275 | |||||||||||
Provision for uncertain tax positions
|
351 | | | |||||||||||
Gain on asset disposal
|
(6,402 | ) | (284 | ) | (936 | ) | ||||||||
Asset impairments
|
3,404 | 106,389 | 18,680 | |||||||||||
Deferred income taxes
|
(8,392 | ) | (1,079 | ) | (16,280 | ) | ||||||||
Employee retirement benefit
|
(626 | ) | | (674 | ) | |||||||||
Share-based compensation
|
1,940 | 2,350 | 1,832 | |||||||||||
Equity company dividends in excess of earnings
|
2,205 | | | |||||||||||
Other non-cash items
|
| 2,931 | 3,975 | |||||||||||
Changes in operating assets and liabilities, excluding the
effects of the Distribution: |
||||||||||||||
Accounts receivable
|
9,733 | 13,233 | 13,230 | |||||||||||
Funds held by Belo for future pension contributions
|
8,568 | (11,978 | ) | | ||||||||||
Inventories
|
(2,186 | ) | 12,181 | (11,234 | ) | |||||||||
Prepaids and other current assets
|
(399 | ) | (2,682 | ) | 1,879 | |||||||||
Other, net
|
976 | 1,177 | 4,003 | |||||||||||
Accounts payable
|
9,968 | (13,759 | ) | 6,746 | ||||||||||
Accrued compensation, benefits and other
|
7,582 | (15,451 | ) | (990 | ) | |||||||||
Accrued interest on notes payable
|
| (11 | ) | 11 | ||||||||||
Other accrued expenses
|
(7,788 | ) | (559 | ) | 4,034 | |||||||||
Advance subscription payments
|
(3,656 | ) | 378 | 897 | ||||||||||
Other post employment benefits
|
(307 | ) | | | ||||||||||
Net cash provided by operations
|
61,222 | 30,297 | 28,928 | |||||||||||
Investments
|
||||||||||||||
Capital expenditures
|
(10,597 | ) | (11,431 | ) | (18,089 | ) | ||||||||
Proceeds from sale of fixed assets
|
9,765 | 479 | 1,567 | |||||||||||
Other, net
|
32 | 5,221 | (6,546 | ) | ||||||||||
Net cash used for investments
|
(800 | ) | (5,731 | ) | (23,068 | ) | ||||||||
Financing
|
||||||||||||||
Dividends and distributions
|
| | (12,800 | ) | ||||||||||
Proceeds from exercise of stock options
|
1,366 | 3 | | |||||||||||
Proceeds (payments) on credit facility
|
| (10,000 | ) | 10,000 | ||||||||||
Net cash provided by (used for) financing activities
|
1,366 | (9,997 | ) | (2,800 | ) | |||||||||
Net increase in cash and temporary cash investments
|
61,788 | 14,569 | 3,060 | |||||||||||
Cash and cash equivalents at beginning of period
|
24,503 | 9,934 | 6,874 | |||||||||||
Cash and cash equivalents at end of period
|
$ | 86,291 | $ | 24,503 | $ | 9,934 | ||||||||
Supplemental Disclosures
|
||||||||||||||
Interest paid, net of amounts capitalized
|
$ | 320 | $ | 232 | $ | 110 | ||||||||
Income taxes paid, net of refunds
|
$ | 2,301 | $ | 2,930 | $ | 1,380 | ||||||||
Estimated
|
||
Useful Lives | ||
Buildings and improvements
|
5-30 years | |
Newspaper publishing equipment
|
3-20 years | |
Other
|
3-10 years | |
Consolidated
|
||||||||||||||||||||||||||||
Net Goodwill | The Dallas Morning News | The Providence Journal | The Press Enterprise | |||||||||||||||||||||||||
Accumulated
|
Accumulated
|
Accumulated
|
||||||||||||||||||||||||||
Cost | Cost | Impairment | Cost | Impairment | Cost | Impairment | ||||||||||||||||||||||
Balance, January 1,
2008
(1)
|
$ | 119,667 | $ | 24,582 | $ | | $ | 323,734 | $ | 242,794 | $ | 115,775 | $ | 101,630 | ||||||||||||||
Impairment
|
14,145 | | | | | | 14,145 | |||||||||||||||||||||
Balance, December 31, 2008
|
105,522 | 24,582 | | 323,734 | 242,794 | 115,775 | 115,775 | |||||||||||||||||||||
Impairment
|
80,940 | | | | 80,940 | | | |||||||||||||||||||||
Balance, December 31, 2009
|
24,582 | 24,582 | | 323,734 | 323,734 | 115,775 | 115,775 | |||||||||||||||||||||
Balance, December 31, 2010
|
$ | 24,582 | $ | 24,582 | $ | | $ | 323,734 | $ | 323,734 | $ | 115,775 | $ | 115,775 | ||||||||||||||
(1) | The January 1, 2008 balance of goodwill is net of $1,494, $46,421 and $14,242 of amortization that was recorded prior to the adoption of ASC 350 Intangibles Goodwill and Other for The Dallas Morning News , The Providence Journal, and The Press-Enterprise , respectively. |
Total
|
||||||||||||||||
Subscriber
|
The Dallas
|
The Providence
|
The Press-
|
|||||||||||||
Lists | Morning News | Journal | Enterprise | |||||||||||||
Gross balance at December 31, 2009
|
$ | 114,824 | $ | 22,896 | $ | 78,698 | $ | 13,230 | ||||||||
Accumulated amortization
|
(87,397 | ) | (22,896 | ) | (56,109 | ) | (8,392 | ) | ||||||||
Net balance at December 31, 2009
|
$ | 27,427 | $ | | $ | 22,589 | $ | 4,838 | ||||||||
Gross balance at December 31, 2010
|
$ | 114,824 | $ | 22,896 | $ | 78,698 | $ | 13,230 | ||||||||
Accumulated amortization
|
(92,635 | ) | (22,896 | ) | (60,480 | ) | (9,259 | ) | ||||||||
Net balance at December 31, 2010
|
$ | 22,189 | $ | | $ | 18,218 | $ | 3,971 | ||||||||
2010 | 2009 | |||||||
Equity method investments
|
$ | 15,899 | $ | 20,463 | ||||
Cost method investments
|
762 | 851 | ||||||
Total investments
|
$ | 16,661 | $ | 21,314 | ||||
| Belo Investment, LLC (Belo Investment) A. H. Belo and Belo each own a 50.0 percent interest in Belo Investment. Upon the February 2008 Distribution, Belo Investment was formed to hold certain properties including The Belo Building, related parking sites, and other downtown Dallas real estate. A third party real estate services firm, engaged by Belo Investment, manages The Belo Building and other its other real estate holdings and the Company and Belo equally share the operating costs associated with these properties. | |
| Classified Ventures, LLC (Classified Ventures) A. H. Belo and Belo, through their subsidiaries, jointly own 6.6 percent of Classified Ventures a joint venture in which the other owners are Gannett Co., Inc., The McClatchy Company, Tribune Company, and The Washington Post Company. The three principal online businesses Classified Ventures operates are cars.com , apartments.com , and homegain.com. |
2010 | 2009 | 2008 | ||||||||||
Weighted-average grant date fair value
|
$ | | $ | 1.08 | $ | 1.36 | ||||||
Weighted-average assumptions used:
|
||||||||||||
Expected volatility
|
| 126.5 | % | 85.8% | ||||||||
Expected life (years)
|
| 5.0 | 5.4 | |||||||||
Risk-free interest rate
|
| 3.57 | % | 3.09% | ||||||||
Expected dividend yield
|
| | 5.34 | |||||||||
Number of
|
Weighted-Average
|
|||||||
Options | Exercise Price | |||||||
Issued in connection with the Distribution on February 8,
2008
|
2,496,728 | $ | 21.09 | |||||
Granted
|
1,493,500 | $ | 3.66 | |||||
Exercised
|
| $ | | |||||
Canceled
|
(205,840 | ) | $ | 18.93 | ||||
Outstanding at December 31, 2008
|
3,784,388 | $ | 14.32 | |||||
Granted
|
181,482 | $ | 1.26 | |||||
Exercised
|
(212,000 | ) | $ | 2.05 | ||||
Canceled
|
(626,446 | ) | $ | 15.32 | ||||
Outstanding at December 31, 2009
|
3,127,424 | $ | 13.12 | |||||
Granted
|
| $ | | |||||
Exercised
|
(453,253 | ) | $ | 3.01 | ||||
Canceled
|
(482,435 | ) | $ | 13.01 | ||||
Outstanding at December 31, 2010
|
2,191,736 | $ | 16.77 | |||||
Vested and Exercisable at December 31, 2010
|
1,915,484 | $ | 18.72 | |||||
Vested and Exercisable weighted average remaining contractual
terms (in years)
|
3.7 | |||||||
Outstanding | Exercisable | |||||||||||||||||||||||
Number of
|
Weghted-Average
|
Average
|
Number of
|
Average
|
||||||||||||||||||||
Range of
|
Options
|
Remaining
|
Exercise
|
Options
|
Exercise
|
|||||||||||||||||||
Exercise Prices | Outstanding (a) | Life (years) | Price | Exercisable | Price | |||||||||||||||||||
$ | 1.00 $ 6.60 | 669,612 | 7.81 | $ | 3.82 | 393,360 | $ | 4.22 | ||||||||||||||||
$ | 6.61 $17.99 | 355,611 | 0.94 | $ | 17.92 | 355,611 | $ | 17.92 | ||||||||||||||||
$ | 18.00 $22.99 | 568,260 | 3.01 | $ | 21.14 | 568,260 | $ | 21.14 | ||||||||||||||||
$ | 23.00 $29.00 | 598,253 | 3.40 | $ | 26.44 | 598,253 | $ | 26.44 | ||||||||||||||||
$ | 1.00 $29.00 | 2,191,736 | 4.25 | $ | 16.77 | 1,915,484 | $ | 18.72 | ||||||||||||||||
Cash
|
||||||||||||||||||||
Payments at
|
Weighted-
|
|||||||||||||||||||
Issuance of
|
RSUs
|
Closing
|
Average Price
|
|||||||||||||||||
Common
|
Redeemed in
|
Price of
|
on Date of
|
|||||||||||||||||
Total RSUs | Stock | Cash | Stock | Grant | ||||||||||||||||
Non-vested at February 8, 2008
|
391,297 | $ | 18.35 | |||||||||||||||||
Granted
|
61,398 | $ | 7.65 | |||||||||||||||||
Vested
|
(45,050 | ) | 26,970 | 18,080 | $ | 263 | $ | 19.10 | ||||||||||||
Canceled
|
(4,694 | ) | $ | 19.09 | ||||||||||||||||
Non-vested at December 31, 2008
|
402,951 | $ | 16.63 | |||||||||||||||||
Granted
|
155,540 | $ | 1.26 | |||||||||||||||||
Vested
|
(109,415 | ) | 65,595 | 43,820 | $ | 75 | $ | 19.78 | ||||||||||||
Canceled
|
(10,494 | ) | $ | 16.71 | ||||||||||||||||
Non-vested at December 31, 2009
|
438,582 | $ | 10.35 | |||||||||||||||||
Granted
|
775,997 | $ | 6.21 | |||||||||||||||||
Vested
|
(132,024 | ) | 79,137 | 52,887 | $ | 417 | $ | 18.13 | ||||||||||||
Canceled
|
(64,103 | ) | $ | 9.18 | ||||||||||||||||
Non-vested at December 31, 2010
|
1,018,452 | $ | 6.36 | |||||||||||||||||
A. H. Belo | ||||||||||||||||||||||||
Equity Awards | ||||||||||||||||||||||||
Cash
|
Belo
|
Total
|
||||||||||||||||||||||
Awards
|
Equity
|
Incentive
|
||||||||||||||||||||||
Options | RSUs | Total | for RSUs | Awards | Awards | |||||||||||||||||||
2010
|
$ | 152 | $ | 1,788 | $ | 1,940 | $ | 3,007 | $ | 207 | $ | 5,154 | ||||||||||||
2009
|
$ | 837 | $ | 1,137 | $ | 1,974 | $ | 1,350 | $ | 1,617 | $ | 4,941 | ||||||||||||
2008
|
$ | 1,325 | $ | 1,977 | $ | 3,302 | $ | (2,215 | ) | $ | 1,340 | $ | 2,427 | |||||||||||
Expected
Benefit
|
||||
Year | Payments | |||
2011
|
$ | 18,067 | ||
2012
|
$ | 18,407 | ||
2013
|
$ | 18,891 | ||
2014
|
$ | 19,446 | ||
2015
|
$ | 19,900 | ||
2010 | 2009 | 2008 | ||||||||||
Current
|
||||||||||||
Federal
|
$ | | $ | | $ | | ||||||
State
|
817 | 1,531 | 4,092 | |||||||||
Total current
|
817 | 1,531 | 4,092 | |||||||||
Deferred
|
||||||||||||
Federal
|
(41,882 | ) | (19,076 | ) | (18,776 | ) | ||||||
State
|
(5,997 | ) | 1,665 | (1,173 | ) | |||||||
Total deferred
|
(47,879 | ) | (17,411 | ) | (19,949 | ) | ||||||
Valuation allowance
|
39,487 | 3,405 | | |||||||||
Total income tax benefit
|
$ | (7,575 | ) | $ | (12,475 | ) | $ | (15,857 | ) | |||
2010 | 2009 | 2008 | ||||||||||
Computed expected income tax expense
|
$ | (46,134 | ) | $ | (42,130 | ) | $ | (22,882 | ) | |||
State income tax (net of federal benefit)
|
(3,367 | ) | 863 | 1,650 | ||||||||
Federal and state provision to return
|
1,704 | (1,712 | ) | | ||||||||
2009 Net operating loss carry back Belo Corp
|
414 | | | |||||||||
Impairment
|
| 25,584 | 4,951 | |||||||||
Valuation allowance
|
39,487 | 3,405 | | |||||||||
Other items
|
321 | 1,515 | 424 | |||||||||
Income tax benefit
|
$ | (7,575 | ) | $ | (12,475 | ) | $ | (15,857 | ) | |||
Effective income tax benefit rate
|
5.7% | 10.4% | 24.3% | |||||||||
2010 | 2009 | |||||||
Deferred tax assets
|
||||||||
Deferred compensation and benefits
|
$ | 5,777 | $ | 4,901 | ||||
Expenses deductible for tax purposes in a year different from
the year accrued
|
4,607 | 6,996 | ||||||
Pension accrual
|
49,622 | | ||||||
Net operating loss
|
1,995 | 4,003 | ||||||
Minimum pension
|
127 | 246 | ||||||
Other
|
4,205 | 2,305 | ||||||
Total deferred tax assets
|
66,333 | 18,451 | ||||||
Valuation allowance for deferred tax assets
|
(43,019 | ) | (3,405 | ) | ||||
Deferred tax assets, net
|
23,314 | 15,046 | ||||||
Deferred tax liabilities
|
||||||||
Tax amortization in excess of book amortization
|
9,951 | 11,980 | ||||||
Tax depreciation in excess of book depreciation
|
7,731 | 2,688 | ||||||
Expenses deductible for tax purposes in a year different from
the year accrued
|
| 1,284 | ||||||
State taxes
|
2,111 | (683 | ) | |||||
Total deferred tax liabilities
|
19,793 | 15,269 | ||||||
Net deferred tax assets
|
$ | 3,521 | $ | (223 | ) | |||
Nature of Commitment | Total | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | ||||||||||||||||||||||||||||
Capital expenditures and licenses
|
$ | 6,213 | $ | 3,323 | $ | 1,445 | $ | 1,445 | $ | | $ | | $ | | |||||||||||||||||||||
Non-cancelable operating leases
|
18,426 | 4,094 | 3,531 | 2,899 | 2,580 | 1,721 | 3,601 | ||||||||||||||||||||||||||||
Total
|
$ | 24,639 | $ | 7,417 | $ | 4,976 | $ | 4,344 | $ | 2,580 | $ | 1,721 | $ | 3,601 | |||||||||||||||||||||
2010 | 1 st Quarter | 2 nd Quarter | 3 rd Quarter | 4 th Quarter | ||||||||||||||
Net Operating Revenues
|
||||||||||||||||||
Advertising
|
$ | 72,335 | $ | 77,156 | $ | 74,581 | $ | 86,237 | ||||||||||
Circulation
|
35,586 | 35,456 | 34,927 | 35,122 | ||||||||||||||
Other
|
7,837 | 8,958 | 9,624 | 9,489 | ||||||||||||||
Total net operating revenues
|
115,758 | 121,570 | 119,132 | 130,848 | ||||||||||||||
Operating Costs and Expenses
|
||||||||||||||||||
Salaries, wages and employee benefits
|
56,254 | 56,817 | 49,322 | 50,605 | ||||||||||||||
Other production, distribution and operating costs
|
46,030 | 47,034 | 43,280 | 46,673 | ||||||||||||||
Newsprint, ink and other supplies
|
11,222 | 12,492 | 13,280 | 18,478 | ||||||||||||||
Depreciation
|
9,164 | 8,441 | 7,496 | 7,801 | ||||||||||||||
Amortization
|
1,310 | 1,310 | 1,310 | 1,308 | ||||||||||||||
Asset impairments
|
| | 857 | 2,547 | ||||||||||||||
Pension plan withdrawal
|
| | | 132,346 | ||||||||||||||
Total operating costs and expenses
|
123,980 | 126,094 | 115,545 | 259,758 | ||||||||||||||
Income/(loss) from operations
|
(8,222 | ) | (4,524 | ) | 3,587 | (128,910 | ) | |||||||||||
Other (Expense) and Income
|
||||||||||||||||||
Interest expense
|
(203 | ) | (203 | ) | (199 | ) | (203 | ) | ||||||||||
Other income (expense), net
|
25 | 5,967 | 1,805 | (730 | ) | |||||||||||||
Total other (expense) and income
|
(178 | ) | 5,764 | 1,606 | (933 | ) | ||||||||||||
Income/(loss) before income taxes
|
(8,400 | ) | 1,240 | 5,193 | (129,843 | ) | ||||||||||||
Income tax (benefit) expense
|
728 | 1,411 | 621 | (10,335 | ) | |||||||||||||
Net (loss) income
|
$ | (9,128 | ) | $ | (171 | ) | $ | 4,572 | $ | (119,508 | ) | |||||||
Net (loss) income per
share
(1)
|
||||||||||||||||||
Basic
|
$ | (0.44 | ) | $ | (0.01 | ) | $ | 0.21 | $ | (5.65 | ) | |||||||
Diluted
|
$ | (0.44 | ) | $ | (0.01 | ) | $ | 0.20 | $ | (5.65 | ) | |||||||
2009
|
1 st Quarter | 2 nd Quarter | 3 rd Quarter | 4 th Quarter | ||||||||||||||
Net Operating Revenues
|
||||||||||||||||||
Advertising
|
$ | 89,331 | $ | 87,492 | $ | 83,816 | 91,729 | |||||||||||
Circulation
|
31,714 | 33,266 | 35,228 | 36,341 | ||||||||||||||
Other
|
7,449 | 6,746 | 7,823 | 7,413 | ||||||||||||||
Total net operating revenues
|
128,494 | 127,504 | 126,867 | 135,483 | ||||||||||||||
Operating Costs and Expenses
|
||||||||||||||||||
Salaries, wages and employee benefits
|
62,894 | 51,720 | 51,668 | 48,318 | ||||||||||||||
Other production, distribution and operating costs
|
55,866 | 50,867 | 48,920 | 53,674 | ||||||||||||||
Newsprint, ink and other supplies
|
19,619 | 16,425 | 12,302 | 12,641 | ||||||||||||||
Asset impairments
|
80,940 | 1,749 | 20,000 | 3,700 | ||||||||||||||
Depreciation
|
10,536 | 9,662 | 9,257 | 9,402 | ||||||||||||||
Amortization
|
1,624 | 1,625 | 1,625 | 1,625 | ||||||||||||||
Total operating costs and expenses
|
231,479 | 132,048 | 143,772 | 129,360 | ||||||||||||||
Income/(loss) from operations
|
(102,985 | ) | (4,544 | ) | (16,905 | ) | 6,123 | |||||||||||
Other (Expense) and Income
|
||||||||||||||||||
Interest expense
|
(300 | ) | (291 | ) | (211 | ) | (580 | ) | ||||||||||
Other income (expense), net
|
822 | (702 | ) | 240 | (1,037 | ) | ||||||||||||
Total other (expense) and income
|
522 | (993 | ) | 29 | (1,617 | ) | ||||||||||||
Loss before income taxes
|
(102,463 | ) | (5,537 | ) | (16,876 | ) | 4,506 | |||||||||||
Income tax benefit
|
(1,756 | ) | 1,534 | (11,110 | ) | (1,143 | ) | |||||||||||
Net (loss) income
|
$ | (100,707 | ) | $ | (7,071 | ) | $ | (5,766 | ) | $ | 5,649 | |||||||
Net (loss) income per
share
(1)
|
||||||||||||||||||
Basic and diluted
|
$ | (4.91 | ) | $ | (0.34 | ) | $ | (0.28 | ) | $ | 0.27 | |||||||
(1) | Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding. |
BORROWERS
:
A.H. BELO CORPORATION |
||||
By: | /s/ Alison K. Engel | |||
Alison K. Engel | ||||
Senior Vice President/Chief Financial Officer | ||||
THE DALLAS MORNING NEWS, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
DENTON PUBLISHING COMPANY
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
DFW PRINTING COMPANY, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
DMI ACQUISITION SUB, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
PRESS-ENTERPRISE COMPANY
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
THE PROVIDENCE JOURNAL COMPANY
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
OTHER LOAN PARTIES
:
A.H. BELO MANAGEMENT SERVICES, INC. |
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
AL DIA, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
THE BELO COMPANY
|
||||
By: | /s/ Sandra J. Radcliffe | |||
Sandra J. Radcliffe, | ||||
Treasurer/Assistant Secretary | ||||
BELO ENTERPRISES, INC.
|
||||
By: | /s/ Sandra J. Radcliffe | |||
Sandra J. Radcliffe, | ||||
Treasurer/Assistant Secretary | ||||
BELO INTERACTIVE, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
BELO INVESTMENTS II, INC.
|
||||
By: | /s/ Sandra J. Radcliffe | |||
Sandra J. Radcliffe, | ||||
Treasurer/Assistant Secretary | ||||
BELO TECHNOLOGY ASSETS, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
NEWS-TEXAN, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
PROVIDENCE HOLDINGS, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
President | ||||
TDMN NEW PRODUCTS, INC.
|
||||
By: | /s/Alison K. Engel | |||
Alison K. Engel | ||||
Treasurer/Assistant Secretary | ||||
TRUE NORTH REAL ESTATE LLC | ||||||||
|
||||||||
By: | A. H. Belo Corporation, its the sole member | |||||||
|
||||||||
|
By: |
/s/Alison K. Engel
|
||||||
|
Chief Financial Officer |
WASHINGTON STREET GARAGE CORPORATION | ||||||
|
||||||
|
By: |
/s/Alison K. Engel
|
||||
|
Treasurer/Assistant Secretary |
ADMINISTRATIVE AGENT AND LENDERS:
JPMORGAN CHASE BANK, N.A., individually, as a Lender, Administrative Agent, Issuing Bank and Swingline Lender |
||||
By: | /s/ Jeff A. Tompkins | |||
Name: | Jeff A. Tompkins | |||
Title: | Vice President | |||
CAPITAL ONE, N.A., as a Lender
|
||||
By: | /s/ Shannan Pratt | |||
Name: | Shannan Pratt | |||
Title: | Senior Vice President | |||
|
Sincerely, | |||
|
||||
|
/s/ Dan Blizzard
|
|||
|
Senior Vice President & Secretary | |||
|
A. H. Belo Corporation | |||
|
||||
Accepted:
|
/s/ John C. McKeon 9/22/10
|
A. Title:
|
President and General Manager
The Dallas Morning News |
|
|
||
B. Base Salary:
|
$400,000 | |
|
||
C. Target Bonus %:
|
60% | |
|
||
D. Equity Awards
|
You will be eligible to receive equity awards under the terms of the Companys Incentive Compensation Plan | |
|
||
E. Retention Bonus:
|
$300,000 Net After Tax ($407,886 Pre-Tax) | |
|
||
F. Relocation Assistance:
|
The Company will purchase your home in California for $3,100,000 if it does not sell after being listed for 180 days at the suggested listing price as agreed upon by HRO and the real estate agent selected by HRO. The purchase amount of $3,100,000 is the Average Market Value B as described in the attached investment and appraisal summary. | |
|
||
|
If you purchase a home in Texas, prior to selling your home in California to a third party or to the Company as outlined in section D above, the Company will reimburse you for the cost of the monthly mortgage payment, taxes, insurance and HOA dues on your Texas home. The Company will gross-up all such payments for taxes. | |
|
||
|
Per the Homeowner Relocation Policy offered to you at the time of your hire in August 2007 (copy attached) with the following clawback/repayment schedule and any other exceptions as approved by the Senior Vice President & Secretary of A. H. Belo Corporation. | |
|
||
G. Clawback/Repayment:
|
If you voluntarily resign from the Company during a three-year period from the date you sign the retention and relocation agreement, you will be required to repay the Company for all or a portion of the after-tax amount of the retention bonus ($300,000), closing costs and relocation expenses ($328,500) for a total of $628,500, per the following schedule: |
Repayment | ||||||||
Time Period | % | $ | ||||||
First 12 Months
|
100 | % | $ | 628,500 | ||||
12 - 24 Months
|
75 | % | $ | 471,375 | ||||
24 - 36 Months
|
50 | % | $ | 314,250 |
1
2
3
4
5
6
7
8
9
To AHC:
|
A. H. Belo Corporation
Attn: Chief Financial Officer 508 Young Street Dallas, Texas 75202 Telephone: (214) 977-2248 Facsimile: (214) 977-8285 |
10
|
with a copy to: | |
|
||
|
A. H. Belo Corporation
Attn: Legal Department 508 Young Street Dallas, Texas 75202 Telephone: (214) 977-8200 Facsimile: (214) 977-8201 |
|
|
||
To Belo:
|
Belo Corp.
Attn: Chief Financial Officer 400 South Record Street Dallas, Texas 75202 Telephone: (214) 977-6626 Facsimile: (214) 977-8209 |
|
|
||
|
with a copy to: | |
|
||
|
Belo Corp.
Attn: General Counsel 400 South Record Street Dallas, Texas 75202 Telephone: (214) 977-6601 Facsimile: (214) 977-7116 |
|
|
||
To PBGC:
|
Department of Insurance Supervision and Compliance
Pension Benefit Guaranty Corporation 1200 K Street, N.W. Washington, D.C. 20005-4026 Telephone: (202) 326-4070 Facsimile: (202) 842-2643 |
|
|
||
|
with a copy to: | |
|
||
|
Office of the Chief Counsel
Pension Benefit Guaranty Corporation 1200 K Street, N.W. Washington, D.C. 20005-4026 Telephone: (202) 326-4020 Facsimile: (202) 326-4112 |
11
12
Pension Benefit Guaranty Corporation | A. H. Belo Corporation | |||||||
|
||||||||
/s/ Michael Rae | /s/ Alison K. Engel | |||||||
Michael Rae | Alison K. Engel | |||||||
Acting Chief Insurance Program Officer | Senior Vice President/Chief Financial Officer | |||||||
|
||||||||
Date:
|
March 10, 2011 | Date: | March 10, 2011 | |||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
Belo Corp. | ||||||||
|
||||||||
/s/ Carey P. Hendrickson | ||||||||
Carey P. Hendrickson | ||||||||
Senior Vice President/Chief Financial Officer | ||||||||
|
Date: | March 10, 2011 | ||||||
|
13
Years Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Earnings (loss)
|
||||||||||||||||||||
Earnings (loss)
|
$ | (131,810 | ) | $ | (120,370 | ) | $ | (65,377 | ) | $ | (348,499 | ) | $ | 27,047 | ||||||
Add: Total fixed charges
|
2,285 | 3,453 | 6,289 | 36,331 | 33,348 | |||||||||||||||
Less: Capitalized interest
|
| | 69 | 451 | 833 | |||||||||||||||
|
||||||||||||||||||||
Adjusted Earnings
|
$ | (129,525 | ) | $ | (116,917 | ) | $ | (59,157 | ) | $ | (312,619 | ) | $ | 59,562 | ||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Fixed Charges:
|
||||||||||||||||||||
Interest
|
$ | 808 | $ | 1,382 | $ | 4,028 | $ | 34,834 | $ | 31,814 | ||||||||||
Portion of rental expense
representative of the
interest
factor (1) |
1,477 | 2,071 | 2,261 | 1,497 | 1,534 | |||||||||||||||
|
||||||||||||||||||||
Total Fixed Charges
|
$ | 2,285 | $ | 3,453 | $ | 6,289 | $ | 36,331 | $ | 33,348 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Ratio of Earnings to Fixed Charges
|
| (2)(3) | | (2)(4) | | (2)(5) | | 1.79 |
1. | For purposes of calculating fixed charges, an interest factor of one third was applied to total rental expense for the periods indicated. | |
2. | Adjusted earning are not sufficient to provide for fixed charges. | |
3. | Adjusted earnings are not sufficient to provide for fixed charges. For purposes of calculating the ratio of earnings to fixed charges, adjusted earnings include non-cash charges for asset impairments of $3,404 and $132,346 to withdraw from a multi-employer pension plan. Excluding the non-cash impairment and pension charges, the adjusted earnings would have been $6,225 and the ratio of earnings to fixed charges would have been 2.72. | |
4. | Adjusted earnings are not sufficient to provide for fixed charges. For purposes of calculating the ratio of earnings to fixed charges, adjusted earnings include a non-cash charge for asset impairments of $106,389. Excluding the non-cash charges asset impairment charges, the adjusted earnings would be $(10,528) and the ratio of earnings to fixed charges would be -3.05. | |
5. | Adjusted earning are not sufficient to provide for fixed charges. For purposes of calculating the ratio of earnings to fixed charges, adjusted earnings include a non-cash charge for goodwill impairment of $14,145 and as asset impairment of $4,535. Excluding the non-cash charges, the adjusted earnings would be $(40,477) and the ratio of earnings to fixed charges would be -6.44. |
LIST OF SUBSIDIARIES | EXHIBIT 21 |
STATE OR JURISDICTION OF | ||||||||
SUBSIDIARY | INCORPORATION | TRADE NAME | ||||||
A. H. Belo Corporation II
|
Delaware | |||||||
A. H. Belo Management Services, Inc.
|
Delaware | |||||||
Auto Z, LLC
|
Delaware | |||||||
Belo Lead Management LLC*
|
Delaware | |||||||
Belo Live Video Solutions LLC*
|
Delaware | |||||||
Belo Search Solutions LLC*
|
Delaware | |||||||
True North Real Estate LLC
|
Delaware | |||||||
Belo Enterprises, Inc.
|
Delaware | |||||||
Belo CV Holdings*
|
Delaware | |||||||
Belo Havana Bureau, Inc.
|
Delaware | |||||||
Belo Interactive, Inc.
|
Delaware | |||||||
Belo Investment, LLC*
|
Delaware | |||||||
Belo Investments II, Inc.
|
Delaware | |||||||
Belo Company (The)
|
Delaware | |||||||
Belo Technology Assets, Inc.
|
Delaware | |||||||
Colony Cable Networks, Inc.
|
Rhode Island | |||||||
Colony/PCS, Inc.
|
Rhode Island | |||||||
Dallas Morning News, Inc. (The)
|
Delaware | |||||||
Al Dia, Inc.
|
Delaware | |||||||
Belo Mexico, Inc.
|
Delaware | |||||||
Belocorp de Mexico, S. de R.L. de C.V.
|
Mexico | |||||||
Belo Mexico, LLC
|
Delaware | |||||||
Belocorp de Mexico, S. de R.L. de C.V.
|
Mexico | |||||||
DFW Printing Company, Inc.
|
Delaware | |||||||
TDMN New Products, Inc.
|
Delaware | Quick (Texas) | ||||||
Denton Publishing Company
|
Texas | |||||||
DMI Acquisition Sub, Inc.
|
Delaware | |||||||
Fountain Street Corporation
|
Rhode Island | |||||||
News-Texan, Inc.
|
Texas | |||||||
PJ Health Programming, Inc.
|
Rhode Island | |||||||
PJ Programming, Inc.
|
Rhode Island | |||||||
Press-Enterprise Company
|
California | |||||||
Providence Journal Company (The)
|
Delaware | |||||||
Providence Holdings, Inc.
|
Delaware | |||||||
Providence Journal Satellite Services, Inc.
|
Rhode Island | |||||||
Washington Street Garage Corporation
|
Rhode Island |
* | Non-wholly owned. |
|
/s/ ERNST & YOUNG LLP
|
|
Dallas, Texas
|
||
March 11, 2011
|
1. | I have reviewed this annual report on Form 10-K of A. H. Belo Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
1. | I have reviewed this annual report on Form 10-K of A. H. Belo Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |