| The New York Times Company Reports 2012 Third-Quarter Results | NEW YORK--(BUSINESS WIRE)--Oct. 25, 2012--
The New York Times Company (NYSE: NYT) announced today a 2012
third-quarter diluted loss per share from continuing operations of $.02
compared with diluted earnings per share from continuing operations of
$.04 in the same period of 2011. Excluding severance and the 2011
special items discussed below, diluted loss per share from continuing
operations was $.01 in the third quarters of each of 2012 and 2011.
The Company had an operating profit of $8.5 million in the third quarter
of 2012 compared with $21.0 million in the same period of 2011.
Excluding depreciation, amortization and severance, operating profit was
$34.0 million in the third quarter of 2012 compared with $47.7 million
in the third quarter of 2011.
“While our results for the third quarter reflect continued pressure on
advertising revenues, total circulation revenues rose led by the ongoing
expansion of our digital subscription base,” said Arthur Sulzberger,
Jr., chairman and chief executive officer, The New York Times Company.
“Digital subscription trends have remained robust and at quarter end,
paid digital subscriptions across the Company totaled approximately
592,000, up 11 percent from the end of the second quarter.
“Early in the fourth quarter of 2012, we completed the sale of the About
Group for $300 million, plus a working capital adjustment. This sale
will allow us to enhance our focus on our core business of generating
and distributing high-quality journalism. In early October, our interest
in Indeed.com was sold for approximately $167 million as a result of the
sale of that company. The after-tax proceeds from these transactions
further strengthened our solid liquidity position.”
Comparisons
Unless otherwise noted, all comparisons are for the third quarter of
2012 to the third quarter of 2011. The results of the Regional Media
Group, which had previously been included in the News Media Group and
was sold in the first quarter of 2012, and the results for the About
Group, which was sold in the fourth quarter of 2012, are reported within
discontinued operations for all periods presented. The quarterly results
of the About Group for 2012 and 2011 are summarized in the exhibits to
this release.
The Company previously classified its businesses into two reportable
segments, the News Media Group and the About Group. However, following
the announcement of the About Group sale in August 2012, the Company
views its operations and manages its business as one reportable segment
effective for the quarter ended September 23, 2012. The Company will
continue to provide revenues for The New York Times Media Group and the
New England Media Group.
This release includes non-GAAP financial measures, a discussion of
management’s reasons for the presentation of these non-GAAP financial
measures and reconciliations to the most comparable GAAP financial
measures.
There were no special items in the third quarter of 2012.
The third-quarter 2011 results included the following special items:
-
A $65.3 million ($37.8 million after tax or $.24 per share) gain on
the sale of 390 of the Company’s units in Fenway Sports Group.
-
A $46.4 million ($27.5 million after tax or $.18 per share) charge in
connection with the prepayment of the Company’s $250 million 14.053
percent notes.
In addition to these special items, the Company had $3.0 million ($1.7
million after tax or $.01 per share) in severance costs in the third
quarter of 2012 and $2.9 million ($1.7 million after tax or $.01 per
share) in the third quarter of 2011.
Third-Quarter Results from Continuing Operations
Revenues
Total revenues decreased 0.6 percent to $449.0 million from $451.6
million. Advertising revenues decreased 8.9 percent, circulation
revenues increased 7.4 percent and other revenues decreased 2.9 percent.
Print and digital advertising revenues decreased 10.9 percent and 2.2
percent, respectively, largely due to the challenging economic
environment, ongoing secular trends and an increasingly complex and
fragmented digital advertising marketplace. Circulation revenues rose
mainly as growth in digital subscriptions and the increase in print
circulation prices in the first half of 2012 at The New York Times and
The Boston Globe offset a decline in print copies sold.
Operating Costs
Operating costs increased 2.3 percent to $440.5 million from $430.5
million. Excluding depreciation, amortization and severance, operating
costs increased 2.8 percent to $415.0 million from $403.9 million mainly
due to higher benefits costs, performance-based compensation costs,
stock-based compensation expense and costs associated with higher
commercial printing revenues.
Other Financial Data
Digital
Digital businesses principally include NYTimes.com, BostonGlobe.com and
Boston.com. In the third quarter of 2012, total digital advertising
revenues decreased 2.2 percent to $44.6 million from $45.6 million
primarily because of lower national display and real estate classified
advertising revenues. Digital advertising revenues as a percentage of
total Company advertising revenues were 24.4 percent in the third
quarter of 2012 compared with 22.8 percent in the third quarter of 2011.
In the first nine months of 2012, the Company’s total digital
advertising revenues decreased 2.0 percent to $145.7 million from $148.8
million in the first nine months of 2011. Digital advertising revenues
as a percentage of total Company advertising revenues were 23.6 percent
for the first nine months of 2012 compared with 22.4 percent in the
first nine months of 2011.
Paid subscribers to The New York Times and the International Herald
Tribune digital subscription packages, e-readers and replica editions
totaled approximately 566,000 as of the end of the third quarter, an
increase of approximately 57,000 or 11 percent since the end of the
second quarter of 2012. Paid digital subscribers to BostonGlobe.com and
The Boston Globe’s e-readers and replica editions totaled approximately
26,000 as of the end of the third quarter, up about 3,000 or 13 percent
since the end of the second quarter of 2012.
Joint Ventures
Income from joint ventures was $1.0 million in the third quarter of 2012
compared with a loss of $1.1 million in the third quarter of 2011. Joint
venture results for the third quarter of 2012 were primarily impacted by
the sale of the Company’s interest in Fenway Sports Group in the first
half of 2012 and improved results for the paper mills.
Interest Expense, net
Interest expense, net decreased to $15.5 million from $20.0 million
mainly due to the prepayment of the Company’s $250 million 14.053
percent senior notes in August 2011.
Income Taxes
The Company had an income tax benefit of $2.8 million (effective tax
rate of 42.6 percent) in the third quarter of 2012 and an income tax
expense of $27.7 million (effective tax rate of 39.5 percent) in the
first nine months of 2012.
The Company had an effective tax rate of 66.1 percent in the third
quarter of 2011 primarily driven by the impact of special items. The
Company’s effective tax rate for the first nine months of 2011 is not
meaningful given the near break-even results.
Liquidity
The following table details the original maturities and carrying values
of the Company’s debt and capital lease obligations as of September 23,
2012. Cash in the table below excludes restricted cash of approximately
$24 million that is subject to certain collateral requirements. Net debt
represents debt and capital lease obligations, net of cash and
short-term investments. The Company believes net debt, a non-GAAP
measure, provides a useful measure of the Company’s liquidity and
overall debt position.
|
(in thousands)
|
|
|
|
September 23, 2012
|
|
|
2012 4.610% senior notes
|
|
|
|
$
|
75,000
|
|
|
|
2015 5.0% senior notes
|
|
|
|
250,000
|
|
|
|
2016 6.625% senior notes
|
|
|
|
225,000
|
|
|
|
2019 Option to repurchase ownership interest in headquarters
building
|
|
|
|
250,000
|
|
|
|
Total
|
|
|
|
$
|
800,000
|
|
|
|
Less: Unamortized amounts
|
|
|
|
(30,175
|
)
|
|
|
Carrying value of debt
|
|
|
|
$
|
769,825
|
|
|
|
Capital lease obligations
|
|
|
|
7,114
|
|
|
|
Total debt and capital lease obligations
|
|
|
|
$
|
776,939
|
|
|
|
Less: Cash and short-term investments
|
|
|
|
(614,114
|
)
|
|
|
Net debt
|
|
|
|
$
|
162,825
|
|
|
|
|
|
|
|
|
|
|
|
As of September 23, 2012, there were no outstanding borrowings under the
Company’s $125 million revolving credit facility.
Subsequent Events
On September 24, 2012, the first day of the fiscal fourth quarter, the
Company completed the sale of the About Group for $300 million in cash,
plus a net working capital adjustment of approximately $16 million,
subject to customary post-closing review and finalization. The Company
expects the net after-tax proceeds from the sale will be approximately
$290 million and expects to record an after-tax gain of approximately
$68 million in the fourth quarter of 2012.
In early October 2012, Indeed.com, a search engine for jobs, in which
the Company had an ownership interest, was sold. The pre-tax proceeds
from the sale of the Company’s interest were approximately $167 million.
The Company expects the after-tax proceeds and the after-tax gain from
the sale, which will be recorded in the fourth quarter, to be
approximately $100 million.
In addition, the Company repaid in full the $75 million 4.610 percent
senior notes that matured on September 26, 2012.
Capital Expenditures
Capital expenditures totaled approximately $5 million in the third
quarter of 2012, and approximately $20 million in the first nine months
of 2012.
Pension Obligations
As part of the Company’s strategy to reduce its pension obligations and
the resulting volatility of the Company’s overall financial condition,
in September the Company offered certain former employees who
participate in The New York Times Companies Pension Plan the option to
receive a one-time lump sum payment equal to the present value of the
participant’s pension benefit (payable in cash or rolled over into a
qualified retirement plan or IRA) or to commence an immediate monthly
annuity. The election period for this voluntary offer will end during
the fourth quarter of 2012.
While it is too early to estimate the participation rate, assuming an
acceptance rate of 50 percent of the pension obligations associated with
the offer, the Company would make settlement distributions of
approximately $100 million and would record a non-cash settlement charge
of approximately $45 million in the fourth quarter of 2012. The
settlement distributions, the majority of which will be made by the end
of 2012, will be made with existing assets of the pension plan and not
with Company cash. The actual amount of the settlement distributions and
the charge will largely depend upon the number of participants electing
the offer and the associated pension benefit of those electing
participants, as well as interest rates and asset performance. This
offer is expected to have a minimal impact on the Company’s underfunded
pension plan balance and the timing and amount of its funding
obligations.
Outlook
Total advertising revenue trends in the fourth quarter of 2012 are
expected to be similar to third-quarter 2012 levels.
Total circulation revenues are expected to increase in the mid- to
high-single digits in the fourth quarter of 2012 because of growth in
digital subscriptions as well as print price increases implemented
earlier this year.
The Company expects operating costs to increase in the low-single digits
in the fourth quarter of 2012.
In addition, the Company expects the following on a pre-tax basis in
2012:
-
Results from joint ventures: $4 to $6 million,
-
Depreciation and amortization: $95 to $100 million,
-
Interest expense, net: $60 to $65 million, and
-
Capital expenditures: approximately $35 million.
Conference Call Information
The Company’s third-quarter 2012 earnings conference call will be held
on Thursday, October 25, at 11:00 a.m. E.T. To access the call, dial
888-218-8088 (in the U.S.) and 913-981-5581 (international callers).
Participants should dial into the conference call approximately 10
minutes before the start time. Online listeners can link to the live
webcast at www.nytco.com/investors.
An archive of the webcast will be available beginning two hours after
the call at www.nytco.com/investors.
The archive will be available for approximately three months. An audio
replay will be available at 888-203-1112 (in the U.S.) and 719-457-0820
(international callers) beginning approximately two hours after the call
until 5 p.m. E.T. on Friday, October 26. The access code is 6840432.
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those predicted by such forward-looking
statements. These risks and uncertainties include national and local
conditions, as well as competition, that could influence the levels
(rate and volume) of national, retail and classified advertising and
circulation generated by our various markets, material increases in
newsprint prices and the development of our digital businesses. They
also include other risks detailed from time to time in the Company’s
publicly filed documents, including the Company’s Annual Report on Form
10-K for the year ended December 25, 2011. The Company undertakes no
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
The New York Times Company, a leading global, multimedia news and
information company with 2011 revenues of $2.3 billion, includes The New
York Times, the International Herald Tribune, The Boston Globe,
NYTimes.com, BostonGlobe.com, Boston.com and related properties. The
Company’s core purpose is to enhance society by creating, collecting and
distributing high-quality news and information.
This press release can be downloaded from www.nytco.com.
|
Exhibits:
|
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
|
|
Revenues by Operating Segment
|
|
|
|
|
|
Advertising Revenues by Category
|
|
|
|
|
|
Footnotes
|
|
|
|
|
|
Other Notes
|
|
|
|
|
|
Reconciliation of Non-GAAP Information
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars and shares in thousands, except per share data)
|
|
|
|
|
|
|
Third Quarter
|
|
|
Nine Months
|
|
|
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
|
2012
|
|
2011
|
|
% Change
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
182,641
|
|
|
$
|
200,508
|
|
|
-8.9%
|
|
|
$
|
618,103
|
|
|
$
|
665,492
|
|
|
-7.1%
|
|
|
Circulation
|
|
|
|
|
234,867
|
|
|
|
218,601
|
|
|
7.4%
|
|
|
|
695,152
|
|
|
|
640,917
|
|
|
8.5%
|
|
|
Other(a)
|
|
|
|
|
31,520
|
|
|
|
32,460
|
|
|
-2.9%
|
|
|
|
101,007
|
|
|
|
98,826
|
|
|
2.2%
|
|
|
Total revenues
|
|
|
|
|
449,028
|
|
|
|
451,569
|
|
|
-0.6%
|
|
|
|
1,414,262
|
|
|
|
1,405,235
|
|
|
0.6%
|
|
|
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs
|
|
|
|
|
201,577
|
|
|
|
197,504
|
|
|
2.1%
|
|
|
|
608,118
|
|
|
|
603,649
|
|
|
0.7%
|
|
|
Selling, general and administrative costs
|
|
|
|
|
216,457
|
|
|
|
209,269
|
|
|
3.4%
|
|
|
|
666,291
|
|
|
|
664,731
|
|
|
0.2%
|
|
|
Depreciation and amortization(b)
|
|
|
|
|
22,485
|
|
|
|
23,747
|
|
|
-5.3%
|
|
|
|
75,521
|
|
|
|
70,564
|
|
|
7.0%
|
|
|
Total operating costs
|
|
|
|
|
440,519
|
|
|
|
430,520
|
|
|
2.3%
|
|
|
|
1,349,930
|
|
|
|
1,338,944
|
|
|
0.8%
|
|
|
Write-down of assets(c)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
N/A
|
|
|
|
—
|
|
|
|
9,225
|
|
|
N/A
|
|
|
Pension withdrawal expense(d)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
N/A
|
|
|
|
—
|
|
|
|
4,228
|
|
|
N/A
|
|
|
Operating profit
|
|
|
|
|
8,509
|
|
|
|
21,049
|
|
|
-59.6%
|
|
|
|
64,332
|
|
|
|
52,838
|
|
|
21.8%
|
|
|
Gain on sale of investments(e)
|
|
|
|
|
—
|
|
|
|
65,273
|
|
|
N/A
|
|
|
|
55,645
|
|
|
|
71,171
|
|
|
-21.8%
|
|
|
Write-down of investments(f)
|
|
|
|
|
600
|
|
|
|
—
|
|
|
N/A
|
|
|
|
5,500
|
|
|
|
—
|
|
|
N/A
|
|
|
Income/(loss) from joint ventures
|
|
|
|
|
1,027
|
|
|
|
(1,068
|
)
|
|
*
|
|
|
|
2,077
|
|
|
|
(4,026
|
)
|
|
*
|
|
|
Premium on debt redemption(g)
|
|
|
|
|
—
|
|
|
|
46,381
|
|
|
N/A
|
|
|
|
—
|
|
|
|
46,381
|
|
|
N/A
|
|
|
Interest expense, net
|
|
|
|
|
15,497
|
|
|
|
20,039
|
|
|
-22.7%
|
|
|
|
46,413
|
|
|
|
69,782
|
|
|
-33.5%
|
|
|
(Loss)/income from continuing operations before income taxes
|
|
|
|
|
(6,561
|
)
|
|
|
18,834
|
|
|
*
|
|
|
|
70,141
|
|
|
|
3,820
|
|
|
*
|
|
|
Income tax (benefit)/expense
|
|
|
|
|
(2,796
|
)
|
|
|
12,440
|
|
|
*
|
|
|
|
27,707
|
|
|
|
3,509
|
|
|
*
|
|
|
(Loss)/income from continuing operations
|
|
|
|
|
(3,765
|
)
|
|
|
6,394
|
|
|
*
|
|
|
|
42,434
|
|
|
|
311
|
|
|
*
|
|
|
Income/(loss) from discontinued operations, net of income taxes(h)
|
|
|
|
|
6,026
|
|
|
|
9,074
|
|
|
-33.6%
|
|
|
|
(86,272
|
)
|
|
|
(99,440
|
)
|
|
-13.2%
|
|
|
Net income/(loss)
|
|
|
|
|
2,261
|
|
|
|
15,468
|
|
|
-85.4%
|
|
|
|
(43,838
|
)
|
|
|
(99,129
|
)
|
|
-55.8%
|
|
|
Net loss attributable to the noncontrolling interest
|
|
|
|
|
21
|
|
|
|
217
|
|
|
-90.3%
|
|
|
|
101
|
|
|
|
515
|
|
|
-80.4%
|
|
|
Net income/(loss) attributable to The New York Times Company
common stockholders
|
|
|
|
$
|
2,282
|
|
|
$
|
15,685
|
|
|
-85.5%
|
|
|
$
|
(43,737
|
)
|
|
$
|
(98,614
|
)
|
|
-55.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to The New York Times Company common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from continuing operations
|
|
|
|
$
|
(3,744
|
)
|
|
$
|
6,611
|
|
|
*
|
|
|
$
|
42,535
|
|
|
$
|
826
|
|
|
*
|
|
|
Income/(loss) from discontinued operations, net of income taxes
|
|
|
|
|
6,026
|
|
|
|
9,074
|
|
|
-33.6%
|
|
|
|
(86,272
|
)
|
|
|
(99,440
|
)
|
|
-13.2%
|
|
|
Net income/(loss)
|
|
|
|
$
|
2,282
|
|
|
$
|
15,685
|
|
|
-85.5%
|
|
|
$
|
(43,737
|
)
|
|
$
|
(98,614
|
)
|
|
-55.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
148,254
|
|
|
|
147,355
|
|
|
0.6%
|
|
|
|
148,042
|
|
|
|
147,103
|
|
|
0.6%
|
|
|
Diluted
|
|
|
|
|
148,254
|
|
|
|
151,293
|
|
|
-2.0%
|
|
|
|
151,762
|
|
|
|
152,424
|
|
|
-0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)/earnings per share attributable to The New York
Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from continuing operations
|
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.05
|
|
|
*
|
|
|
$
|
0.29
|
|
|
$
|
0.01
|
|
|
*
|
|
|
Income/(loss) from discontinued operations, net of income taxes
|
|
|
|
|
0.04
|
|
|
|
0.06
|
|
|
-33.3%
|
|
|
|
(0.59
|
)
|
|
|
(0.68
|
)
|
|
-13.2%
|
|
|
Net income/(loss)
|
|
|
|
$
|
0.02
|
|
|
$
|
0.11
|
|
|
-81.8%
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.67
|
)
|
|
-55.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)/earnings per share attributable to The New York
Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from continuing operations
|
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.04
|
|
|
*
|
|
|
$
|
0.28
|
|
|
$
|
0.01
|
|
|
*
|
|
|
Income/(loss) from discontinued operations, net of income taxes
|
|
|
|
|
0.04
|
|
|
|
0.06
|
|
|
-33.3%
|
|
|
|
(0.57
|
)
|
|
|
(0.66
|
)
|
|
-13.6%
|
|
|
Net income/(loss)
|
|
|
|
$
|
0.02
|
|
|
$
|
0.10
|
|
|
-80.0%
|
|
|
$
|
(0.29
|
)
|
|
$
|
(0.65
|
)
|
|
-55.4%
|
|
|
* Represents an increase or decrease in excess of 100%.
|
|
See footnotes page for additional information.
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
|
REVENUES BY OPERATING SEGMENT AND ADVERTISING REVENUES BY CATEGORY
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
Third Quarter
|
|
|
% Change
vs. 2011
|
|
|
Nine Months
|
|
|
% Change
vs. 2011
|
|
|
The New York Times Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
140,880
|
|
|
-9.7
|
%
|
|
|
$
|
485,368
|
|
|
-6.9
|
%
|
|
|
Circulation
|
|
|
|
|
194,739
|
|
|
9.3
|
%
|
|
|
|
578,914
|
|
|
10.9
|
%
|
|
|
Other
|
|
|
|
|
19,718
|
|
|
-12.5
|
%
|
|
|
|
62,944
|
|
|
-7.4
|
%
|
|
|
Total
|
|
|
|
$
|
355,337
|
|
|
-0.4
|
%
|
|
|
$
|
1,127,226
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New England Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
41,761
|
|
|
-6.0
|
%
|
|
|
$
|
132,735
|
|
|
-7.8
|
%
|
|
|
Circulation
|
|
|
|
|
40,128
|
|
|
-0.6
|
%
|
|
|
|
116,238
|
|
|
-2.1
|
%
|
|
|
Other
|
|
|
|
|
11,802
|
|
|
18.8
|
%
|
|
|
|
38,063
|
|
|
23.5
|
%
|
|
|
Total
|
|
|
|
$
|
93,691
|
|
|
-1.1
|
%
|
|
|
$
|
287,036
|
|
|
-2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
182,641
|
|
|
-8.9
|
%
|
|
|
$
|
618,103
|
|
|
-7.1
|
%
|
|
|
Circulation
|
|
|
|
|
234,867
|
|
|
7.4
|
%
|
|
|
|
695,152
|
|
|
8.5
|
%
|
|
|
Other(a)
|
|
|
|
|
31,520
|
|
|
-2.9
|
%
|
|
|
|
101,007
|
|
|
2.2
|
%
|
|
|
Total
|
|
|
|
$
|
449,028
|
|
|
-0.6
|
%
|
|
|
$
|
1,414,262
|
|
|
0.6
|
%
|
|
|
|
|
|
See footnotes page for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
Third Quarter
|
|
|
% Change
vs. 2011
|
|
|
Nine Months
|
|
|
% Change
vs. 2011
|
|
|
National
|
|
|
|
$
|
118,084
|
|
|
-9.5
|
%
|
|
|
$
|
410,967
|
|
|
-7.1
|
%
|
|
|
Retail
|
|
|
|
|
30,343
|
|
|
-9.5
|
%
|
|
|
|
100,615
|
|
|
-4.3
|
%
|
|
|
Classified:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Help-Wanted
|
|
|
|
|
6,267
|
|
|
4.1
|
%
|
|
|
|
20,438
|
|
|
-2.1
|
%
|
|
|
Real Estate
|
|
|
|
|
8,707
|
|
|
-19.5
|
%
|
|
|
|
29,490
|
|
|
-17.8
|
%
|
|
|
Automotive
|
|
|
|
|
5,770
|
|
|
2.4
|
%
|
|
|
|
17,099
|
|
|
-6.1
|
%
|
|
|
Other
|
|
|
|
|
6,817
|
|
|
-8.7
|
%
|
|
|
|
21,311
|
|
|
-8.1
|
%
|
|
|
Total Classified
|
|
|
|
|
27,561
|
|
|
-7.9
|
%
|
|
|
|
88,338
|
|
|
-10.0
|
%
|
|
|
Other
|
|
|
|
|
6,653
|
|
|
2.4
|
%
|
|
|
|
18,183
|
|
|
-8.6
|
%
|
|
|
Total Company
|
|
|
|
$
|
182,641
|
|
|
-8.9
|
%
|
|
|
$
|
618,103
|
|
|
-7.1
|
%
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
FOOTNOTES
|
|
(Dollars in thousands)
|
|
|
|
|
|
(a)
|
|
Other revenues consist primarily of revenues from news
services/syndication, commercial printing, rental income, digital
archives and direct mail advertising services.
|
|
|
|
|
|
(b)
|
|
Includes $6.7 million of accelerated depreciation expense in the
first quarter of 2012 for certain assets at the Worcester Telegram &
Gazette’s facility in Millbury, Mass., associated with the
consolidation of most of its printing into The Boston Globe’s
facility in Boston, Mass., in the second quarter of 2012.
|
|
|
|
|
|
(c)
|
|
In the second quarter of 2011, the Company recorded a $9.2 million
non-cash charge for the write-down of certain assets held for sale.
|
|
|
|
|
|
(d)
|
|
In the second quarter of 2011, the Company recorded a $4.2 million
charge for a pension withdrawal obligation under a multiemployer
pension plan at The Boston Globe.
|
|
|
|
|
|
(e)
|
|
In the second quarter of 2012, the Company recorded a $37.8 million
gain on the sale of its remaining 210 units in Fenway Sports Group.
In the first quarter of 2012, the Company recorded a $17.8 million
gain on the sale of 100 of its units in Fenway Sports Group.
|
|
|
|
|
|
|
|
In the third quarter of 2011, the Company recorded a $65.3 million
gain on the sale of 390 of its units in Fenway Sports Group. In the
first quarter of 2011, the Company recorded a $5.9 million gain on
the sale of a portion of the Company’s interest in Indeed.com.
|
|
|
|
|
|
(f)
|
|
In the first and third quarters of 2012, the Company recorded a $4.9
million and $0.6 million non-cash charge, respectively, for the
write-down of certain investments.
|
|
|
|
|
|
(g)
|
|
In the third quarter of 2011, the Company recorded a $46.4 million
charge in connection with the prepayment of its $250 million 14.053%
notes.
|
|
|
|
|
|
(h)
|
|
On September 24, 2012, the Company completed the sale of the About
Group, consisting of About.com, ConsumerSearch.com,
CalorieCount.com and related businesses. The results of the About
Group have been classified as discontinued operations for all
periods presented. See Other Notes on the next page for results of
operations for the About Group.
On January 6, 2012, the Company completed the sale of its Regional
Media Group, consisting of 16 regional newspapers, other print
publications and related businesses. The results of the Regional
Media Group, which had previously been included in the News Media
Group reportable segment, have been classified as discontinued
operations for all periods presented. In the second quarter of
2012, the Company recorded post-closing adjustments related to the
sale totaling $4.5 million after-tax.
|
|
|
|
|
|
|
|
The following table summarizes the results of operations presented
as discontinued operations for both the About Group and the
Regional Media Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
Nine Months
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
25,616
|
|
|
$
|
85,666
|
|
|
$
|
81,085
|
|
|
|
$
|
275,206
|
|
|
|
|
|
Total operating costs
|
|
|
|
|
16,687
|
|
|
|
73,670
|
|
|
|
59,157
|
|
|
|
|
225,909
|
|
|
|
|
|
Write-down of assets
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
194,732
|
|
|
|
|
152,093
|
|
|
|
|
|
Pre-tax income/(loss)
|
|
|
|
|
8,929
|
|
|
|
11,996
|
|
|
|
(172,804
|
)
|
|
|
|
(102,796)
|
|
|
|
|
|
Income tax expense/(benefit)
|
|
|
|
|
2,903
|
|
|
|
2,922
|
|
|
|
(60,801
|
)
|
|
|
|
(3,356)
|
|
|
|
|
|
Income/(loss) from discontinued operations, net of income taxes
|
|
|
|
|
6,026
|
|
|
|
9,074
|
|
|
|
(112,003
|
)
|
|
|
|
(99,440)
|
|
|
|
|
|
(Loss)/gain on sale, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,717
|
)
|
|
|
|
—
|
|
|
|
|
|
Income tax benefit
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(30,448
|
)
|
*
|
|
|
—
|
|
|
|
|
|
Gain on sale, net of income taxes
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25,731
|
|
|
|
|
—
|
|
|
|
|
|
Income/(loss) from discontinued operations, net of income taxes
|
|
|
|
$
|
6,026
|
|
|
$
|
9,074
|
|
|
$
|
(86,272
|
)
|
|
|
$
|
(99,440)
|
|
|
|
|
|
* Tax benefit is primarily due to a tax deduction for goodwill
related to the Regional Media Group sale.
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
OTHER NOTES
|
|
(Dollars in thousands)
|
|
|
|
On September 24, 2012, the Company completed the sale of the About
Group, consisting of About.com, ConsumerSearch.com, CalorieCount.com
and related businesses. The results of the About Group for each
quarter and the first nine months of 2012, and for each quarter and
annual period of 2011, reported as discontinued operations, are
summarized below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
|
|
|
Second
Quarter
|
|
|
|
|
Third
Quarter
|
|
|
|
|
Nine
Months
|
|
|
Revenues
|
|
|
|
|
|
|
$
|
23,944
|
|
|
|
|
$
|
25,410
|
|
|
|
|
|
$
|
25,616
|
|
|
|
|
$
|
74,970
|
|
|
|
Total operating costs
|
|
|
|
|
|
|
|
16,948
|
|
|
|
|
|
17,505
|
|
|
|
|
|
|
16,687
|
|
|
|
|
|
51,140
|
|
|
|
Write-down of assets
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
194,732
|
|
|
|
|
|
|
—
|
|
|
|
|
|
194,732
|
|
|
|
Pre-tax income/(loss)
|
|
|
|
|
|
|
|
6,996
|
|
|
|
|
|
(186,827
|
)
|
|
|
|
|
|
8,929
|
|
|
|
|
|
(170,902
|
)
|
|
|
Income tax expense/(benefit)
|
|
|
|
|
|
|
|
2,675
|
|
|
|
|
|
(65,643
|
)
|
|
|
|
|
|
2,903
|
|
|
|
|
|
(60,065
|
)
|
|
|
Net income/(loss)
|
|
|
|
|
|
|
$
|
4,321
|
|
|
|
|
$
|
(121,184
|
)
|
|
|
|
|
$
|
6,026
|
|
|
|
|
$
|
(110,837
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
|
|
|
Second
Quarter
|
|
|
|
|
Third
Quarter
|
|
|
|
|
Fourth
Quarter
|
|
|
|
|
Full
Year
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
$
|
31,142
|
|
|
|
|
$
|
27,844
|
|
|
|
|
$
|
25,724
|
|
|
|
|
$
|
26,116
|
|
|
|
|
$
|
110,826
|
|
|
Total operating costs
|
|
|
|
|
|
|
|
|
|
|
16,995
|
|
|
|
|
|
16,369
|
|
|
|
|
|
16,302
|
|
|
|
|
|
17,809
|
|
|
|
|
|
67,475
|
|
|
Write-down of assets
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
3,116
|
|
|
|
|
|
3,116
|
|
|
Pre-tax income
|
|
|
|
|
|
|
|
|
|
|
14,147
|
|
|
|
|
|
11,475
|
|
|
|
|
|
9,422
|
|
|
|
|
|
5,191
|
|
|
|
|
|
40,235
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
5,433
|
|
|
|
|
|
4,407
|
|
|
|
|
|
3,619
|
|
|
|
|
|
1,994
|
|
|
|
|
|
15,453
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
$
|
8,714
|
|
|
|
|
$
|
7,068
|
|
|
|
|
$
|
5,803
|
|
|
|
|
$
|
3,197
|
|
|
|
|
$
|
24,782
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
RECONCILIATION OF NON-GAAP INFORMATION
|
|
(Dollars in thousands)
|
|
|
|
In this release, the Company has included non-GAAP financial
information with respect to diluted loss per share from continuing
operations excluding severance and special items, operating profit
before depreciation, amortization, severance and special items (if
any) and operating costs before depreciation, amortization,
severance and raw materials. The Company has included these non-GAAP
financial measures because management reviews them on a regular
basis and uses them to evaluate and manage the performance of the
operations. Management believes that, for the reasons outlined
below, these non-GAAP financial measures provide useful information
to investors as a supplement to reported diluted earnings/(loss) per
share from continuing operations, operating profit/(loss) and
operating costs. However, these measures should be evaluated only in
conjunction with the comparable GAAP financial measures and should
not be viewed as alternative or superior measures of GAAP results.
|
|
|
|
Diluted earnings/(loss) per share from continuing operations
excluding severance and special items provide useful information in
evaluating the Company’s period-to-period performance because it
eliminates items that the Company does not consider to be indicative
of earnings from ongoing operating activities. Operating
profit/(loss) before depreciation, amortization, severance and
special items (if any) is useful in evaluating the Company’s ongoing
performance of its businesses as it excludes the significant
non-cash impact of depreciation and amortization as well as items
not indicative of ongoing operating activities. Total operating
costs include depreciation, amortization, severance and raw
materials. Total operating costs excluding these items provide
investors with helpful supplemental information on the Company’s
underlying operating costs that is used by management in its
financial and operational decision-making.
|
|
|
|
Reconciliations of these non-GAAP financial measures from,
respectively, diluted (loss)/earnings per share from continuing
operations, operating profit and operating costs, the most directly
comparable GAAP items, are set out in the tables below.
|
|
|
|
Reconciliation of diluted loss per share
from continuing operations excluding severance and special items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
Diluted (loss)/earnings per share from continuing operations
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
0.04
|
|
|
|
*
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of investment
|
|
|
|
|
—
|
|
|
|
|
(0.24
|
)
|
|
|
|
|
Premium on debt redemption
|
|
|
|
|
—
|
|
|
|
|
0.18
|
|
|
|
|
|
Diluted loss per share from continuing operations excluding
severance and special items
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.01
|
)
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents a decrease in excess of 100%.
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating profit before
depreciation & amortization, severance and special items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
Nine Months
|
|
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
|
2012
|
|
2011
|
|
% Change
|
|
|
Operating profit
|
|
|
$
|
8,509
|
|
$
|
21,049
|
|
-59.6%
|
|
|
$
|
64,332
|
|
$
|
52,838
|
|
21.8%
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
22,485
|
|
|
23,747
|
|
-5.3%
|
|
|
|
75,521
|
|
|
70,564
|
|
7.0%
|
|
|
Severance
|
|
|
|
3,008
|
|
|
2,899
|
|
3.8%
|
|
|
|
10,128
|
|
|
4,999
|
|
*
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-down of assets
|
|
|
|
—
|
|
|
—
|
|
N/A
|
|
|
|
—
|
|
|
9,225
|
|
N/A
|
|
|
Pension withdrawal expense
|
|
|
|
—
|
|
|
—
|
|
N/A
|
|
|
|
—
|
|
|
4,228
|
|
N/A
|
|
|
Operating profit before
depreciation & amortization,
severance
and special items
|
|
|
$
|
34,002
|
|
$
|
47,695
|
|
-28.7%
|
|
|
$
|
149,981
|
|
$
|
141,854
|
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Represents an increase in excess of 100%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating costs before
depreciation & amortization, severance and raw materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
Nine Months
|
|
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
|
2012
|
|
2011
|
|
% Change
|
|
|
Operating costs
|
|
|
$
|
440,519
|
|
$
|
430,520
|
|
2.3%
|
|
|
$
|
1,349,930
|
|
$
|
1,338,944
|
|
0.8%
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
22,485
|
|
|
23,747
|
|
|
|
|
|
75,521
|
|
|
70,564
|
|
|
|
|
Severance
|
|
|
|
3,008
|
|
|
2,899
|
|
|
|
|
|
10,128
|
|
|
4,999
|
|
|
|
|
Operating costs before
depreciation & amortization
and
severance
|
|
|
|
415,026
|
|
|
403,874
|
|
2.8%
|
|
|
|
1,264,281
|
|
|
1,263,381
|
|
0.1%
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials
|
|
|
|
31,592
|
|
|
32,722
|
|
|
|
|
|
98,551
|
|
|
101,097
|
|
|
|
|
Operating costs before
depreciation & amortization,
severance
and raw materials
|
|
|
$
|
383,434
|
|
$
|
371,152
|
|
3.3%
|
|
|
$
|
1,165,730
|
|
$
|
1,162,284
|
|
0.3%
|
|
Source: The New York Times Company
The New York Times Company
For Media:
Abbe Serphos,
212-556-4425
serphos@nytimes.com
or
For
Investors:
Paula Schwartz, 212-556-5224
paula.schwartz@nytimes.com
|
|
