A.H. Belo Corporation Announces Restatement; Receives NYSE Notice Regarding Late Form 10-Q Filing
November 20 2019 - 7:30AM
A. H. Belo Corporation (NYSE: AHC) announced today in a Form 8-K
filed with the Securities and Exchange Commission that it will not
timely file its quarterly report on Form 10-Q for the quarter ended
September 30, 2019, and has determined to restate its 2018 audited
financial statements. The restatement will impact three areas of
the 2018 audited financial statements: impairment of goodwill
and long-lived assets, the income tax valuation allowance, and
management’s report on internal control over financial reporting
and evaluation of disclosure control procedures included in Item 9A
of the 2018 Form 10-K. The asset impairment and valuation allowance
are due to a re-evaluation of the timing of the Company’s
impairment of assets related to its marketing services segment and
consequent calculation of its tax valuation allowance, both of
which are non-cash items.
The Company’s independent public accounting firm,
Grant Thornton LLP, selected the Company’s 2018 audit for internal
review by its risk and quality control group in August. The Public
Company Accounting Oversight Board (PCAOB) subsequently selected
Grant Thornton’s audit of the Company’s 2018 audited financial
statements for review.Due to the Company’s delay in filing its
quarterly report on Form 10-Q for the third quarter, it received a
notice today from the New York Stock Exchange (the “NYSE”) stating
that the Company is not in compliance with the NYSE’s continued
listing requirements under the timely filing criteria established
in Section 802.01E of the NYSE Listed Company Manual. In accordance
with NYSE rules, the Company contacted the NYSE to discuss the
status of the late filing. The noncompliance with the timely filing
criteria under the NYSE Listed Company Manual has no immediate
effect on the listing or trading of the Company’s common stock on
the NYSE. The NYSE has informed the Company that, under NYSE rules,
the Company will have six months from the Form 10-Q due date to
file the Form 10-Q with the SEC. The Company regains compliance
with the NYSE listing standards at any time prior to that date by
filing its Form 10-Q with the SEC.Katy Murray, senior vice
president and Chief Financial Officer, said, “We are working
expeditiously and are optimistic that we will be able to complete
this process and file our amended 2018 Form 10-K, amended first and
second quarter 2019 Forms 10-Q to the extent required, and our
third quarter 2019 Form 10-Q by the end of the year. There are
three areas under review: impairment of goodwill and long-lived
assets associated with the Company’s marketing services segment in
2018; the methodology used to calculate the income tax valuation
allowance in 2018; and, conclusions related to the effectiveness of
the Company’s internal control over financial reporting for 2018
and subsequent periods. It is important to note that any
adjustments in these areas will be non-cash adjustments and are not
expected to have an effect on our revenues or cash flow statements
reported for the year-ended December 31, 2018 or for the
quarters ending March 31, 2019 and June 30, 2019. The Company
reported cash and cash equivalents of $52.0 million as of June
30, 2019 and as of November 15, 2019, the Company has
$52.0 million in cash and cash equivalents and no debt. The
impact of any financial statement adjustments to A. H. Belo’s
fiscal year ending 2018 is timing related and will be reflected in
our September 30, 2019 financial statements.”Robert W.
Decherd, chairman, president and Chief Executive Officer, said,
“A. H. Belo made important progress during the third
quarter in assimilating all of its marketing services activities
into the single decision-making structure announced in July. A
considerable amount of work remains in this regard, but we expect
to complete the initiative by early next year. The result will be a
more focused, coordinated go-to-market capability for this aspect
of the Company’s digital business.“We are encouraged by trends in
print advertising as The Dallas Morning News moves
through the fourth quarter, and our operating teams continue to
concentrate on digital subscription growth in concert with The
News’ branding campaign introduced to the market in late September.
The re-launch of The News’ digital sites on the Arc platform in
August has been very well-received.”
About A. H. Belo Corporation
A. H. Belo Corporation is the leading local news
and information publishing company in Texas. The Company has
commercial printing, distribution and direct mail capabilities, as
well as a presence in emerging media and digital marketing. While
focusing on extending the Company’s media platforms, A. H. Belo
delivers news and information in innovative ways to a broad range
of audiences with diverse interests and lifestyles. For additional
information, visit www.ahbelo.com or email invest@ahbelo.com.
Statements in this communication concerning A. H.
Belo Corporation’s business outlook or future economic performance,
anticipated profitability, revenues, expenses, dividends, capital
expenditures, investments, dispositions, impairments, business
initiatives, acquisitions, pension plan contributions and
obligations, real estate sales, working capital, future financings
and other financial and non-financial items that are not historical
facts, are “forward-looking statements” as the term is defined
under applicable federal securities laws. Forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from those
statements. Such risks, trends and uncertainties are, in most
instances, beyond the Company’s control, and include changes in
advertising demand and other economic conditions; consumers’
tastes; newsprint prices; program costs; labor relations;
technology obsolescence; as well as other risks described in the
Company’s Annual Report on Form 10-K and in the Company’s other
public disclosures and filings with the Securities and Exchange
Commission. Forward-looking statements, which are as of the date of
this filing, are not updated to reflect events or circumstances
after the date of the statement.Contact:Katy Murray214-977-8869
A H Belo (NYSE:AHC)
Historical Stock Chart
From Jun 2024 to Jul 2024
A H Belo (NYSE:AHC)
Historical Stock Chart
From Jul 2023 to Jul 2024