DALLAS--(BUSINESS WIRE)--Dec. 15, 2014--
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.
Source: A. H. Belo Corporation
A. H. Belo Corporation
Alison Engel, 214-977-2248
Senior Vice
President/Chief Financial Officer
www.ahbelo.com
