A. H. Belo Corporation Announces Sale of the Former South Plant and Updates on Pension and Cash Taxes
December 15 2014 - 8:00AM
Business Wire
A. H. Belo Corporation (NYSE:AHC) announced today that the
Company closed on the sale of its former South Plant facility. Net
proceeds were $6.7 million and the Company will record a gain on
this sale in the fourth quarter of approximately $1.9 million.
The Company also determined it will make a $20 million voluntary
payment to its pension plans prior to the end of 2014. This
contribution will serve to continue to improve the unfunded
position of the pension plans as well as to reduce the Company’s
2014 cash taxes, as pension contributions are tax deductible.
In other efforts to de-risk the pension plans, in the fourth
quarter the Company completed a second lump sum payment offer to
certain pension plan participants. A total of 721 participants
accepted this lump sum offer which is expected to reduce the
pension benefit obligation by approximately $70 million. The
Company estimates it will record approximately $7.6 million of
additional non-cash pension expense in the fourth quarter due to
the recognition of prior year actuarial losses associated with the
liquidated pension obligations. The pension plans will pay
approximately $55 million to those participants accepting the lump
sum offer. As a result of both of these actions, the Company does
not expect to make any required pension contributions in 2015.
Based on current projections, including the sale of the South
Plant and the voluntary pension contribution, the Company expects
to pay approximately $6 to $8 million in federal and state cash
taxes for 2014. The estimated payments will be made in December
2014.
About A. H. Belo
Corporation
A. H. Belo Corporation (NYSE:AHC) is a leading local news and
information publishing company with commercial printing,
distribution and direct mail capabilities, as well as businesses
with expertise in emerging media and digital marketing. With a
continued focus on extending our media platform, we are able to
deliver news and information in innovative ways to new audiences
with diverse interests and lifestyles. For additional information,
visit ahbelo.com, email invest@ahbelo.com.
A. H. Belo CorporationAlison Engel, 214-977-2248Senior Vice
President/Chief Financial Officerwww.ahbelo.com
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