Equity

9 Months Ended

Sep. 30, 2018

(9) Equity

(Loss) Income Per Share

The following table sets forth the computation of basic and diluted (loss) income per share (“EPS”):



	Three months ended						Nine months ended
	September 30, 2018			September 24, 2017			September 30, 2018		September 24, 2017
Numerator for (loss) income per share calculation:
Net (loss) income attributable to New Media	$	(6,105	)	$	(1,971	)	$	4,937	$	(27,343	)
Denominator for (loss) income per share calculation:
Basic weighted average shares outstanding	59,919,246			52,868,745			57,377,682		53,058,341
Effect of dilutive securities:
Stock Options and Restricted Stock	—			—			447,628		—
Diluted weighted average shares outstanding	59,919,246			52,868,745			57,825,310		53,058,341

The Company excluded the following securities from the computation of diluted income per share because their effect would have been antidilutive:



	Three months ended		Nine months ended
	September 30, 2018	September 24, 2017	September 30, 2018	September 24, 2017
Stock warrants	1,362,479	1,362,479	1,362,479	1,362,479
Stock options	2,904,811	2,307,562	700,000	2,307,562
Restricted stock grants	376,570	349,781	—	349,781

Equity

On May 17, 2017, the Board of Directors authorized the repurchase of up to $100,000 of the Company's common stock ("Share Repurchase Program") over the next 12 months. On May 1, 2018, the Board of Directors authorized an extension of the Share Repurchase Program through May 18, 2019. Under the Share Repurchase Program, the Company may purchase its shares from time to time in the open market or in privately negotiated transactions. During the three months ended June 25, 2017, the Company repurchased 391,120 shares at a weighted average price of $12.77 per share for a total cost, including transaction costs, of $5,001. The shares were subsequently retired. The cost paid to acquire the shares in excess of par was recorded in additional paid-in capital in the consolidated balance sheet.

Pursuant to the anti-dilution provisions of the Incentive Plan, the exercise price on the 652,311 remaining options granted to the Manager in 2014 were equitably adjusted during the three months ended April 1, 2018 from $14.37 to $12.95 as a result of return of capital distributions.

Pursuant to the anti-dilution provisions of the Incentive Plan, the exercise price on the 700,000 options granted to the Manager in 2015 were equitably adjusted during the three months ended April 1, 2018 from $20.36 to $18.94 as a result of return of capital distributions.

Pursuant to the anti-dilution provisions of the Incentive Plan, the exercise price on the 862,500 options granted to the Manager in 2016 were equitably adjusted during the three months ended April 1, 2018 from $16.00 to $13.24 as a result of return of capital distributions.

During the three months ended June 25, 2017, the Company issued 16,605 shares of its common stock to its Non-Officer Directors to settle a liability of $225 for 2016 services.

During the three months ended April 1, 2018, the Company issued 13,008 shares of its common stock to its Non-Officer Directors to settle a liability of $225 for 2017 services.

During April 2018, the Company completed the sale of 6,900,000 shares of the Company's common stock, including 25,000 shares of the Company's common stock sold to an officer of the Company. The estimated net proceeds of the sale were approximately $110,650. For the purpose of compensating the Manager for its successful efforts in raising capital for the Company, in connection with this offering, the Company granted options to the Manager to purchase 690,000 shares of the Company’s common stock at a price of $16.45, which had an aggregate fair value of approximately $1,408 as of the grant date. The assumptions used in an option valuation model to value the options were: a 2.8% risk-free rate, a 8.0% dividend yield, 28.1% volatility and an expected life of 10 years.

The following table includes additional information regarding the Manager stock options:



	Number of Options	Weighted-Average Grant Date Fair Value		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($000)
Outstanding at December 31, 2017	2,214,811	$	4.08	$	16.90	7.7	$	2,245
Granted	690,000	$	2.04	$	16.45
Outstanding at September 30, 2018	2,904,811	$	3.59	$	15.31	7.5	$	3,900

Exercisable at September 30, 2018	2,096,061			$	15.23	6.9	$	3,328

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2018 and September 24, 2017 are outlined below.



	Net actuarial loss and prior service cost ⁽¹⁾
For the nine months ended September 30, 2018:
Balance at December 31, 2017	$	(5,461	)
Amounts reclassified from accumulated other comprehensive loss	(202		)
Balance at September 30, 2018	$	(5,663	)
For the nine months ended September 24, 2017:
Balance at December 27, 2016	$	(3,977	)
Amounts reclassified from accumulated other comprehensive loss	83
Balance at September 24, 2017	$	(3,894	)


⁽¹⁾	This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost. See Note 11.

The following table presents reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2018 and September 24, 2017.



	Amounts Reclassified from Accumulated Other Comprehensive Loss											Affected Line Item in the Consolidated Statements of Operations and Comprehensive (Loss) Income
	Three months ended					Nine months ended
	September 30, 2018			September 24, 2017		September 30, 2018			September 24, 2017
Amortization of unrecognized (gain) loss	$	(67	)	$	27	$	(202	)	$	83	⁽¹⁾
Amounts reclassified from accumulated other comprehensive loss	(67		)	27		(202		)	83			Income (loss) before income taxes
Income tax expense	—			—		—			—			Income tax benefit
Amounts reclassified from accumulated other comprehensive loss, net of taxes	$	(67	)	$	27	$	(202	)	$	83		Net (loss) income


⁽¹⁾	This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost. See Note 11.

Dividends

During the nine months ended September 24, 2017, the Company paid dividends of $1.05 per share of Common Stock of New Media.

During the nine months ended September 30, 2018, the Company paid dividends of $1.11 per share of Common Stock of New Media.