NEW YORK--(BUSINESS WIRE)--Feb. 7, 2013--
The New York Times Company (NYSE: NYT) announced today fourth-quarter
2012 diluted earnings per share from continuing operations increased to
$.76 from $.34 in the same period of 2011, largely due to the special
items discussed below. Excluding severance and special items, diluted
earnings per share from continuing operations decreased to $.32 in the
fourth quarter of 2012 from $.39 in the fourth quarter of 2011. The
decrease was due principally to a higher effective tax rate applicable
in the fourth quarter of 2012 after the exclusion of severance and
special items.
The Company had operating profit of $44.0 million in the fourth quarter
of 2012 compared with $90.8 million in the same period of 2011.
Excluding depreciation, amortization, severance and the special items
discussed below, operating profit was $124.5 million in the fourth
quarter of 2012 compared with $126.8 million in the fourth quarter of
2011.
“2012 showed both the opportunities and challenges we face as a
company,” said Mark Thompson, president and chief executive officer. “We
saw continued strong growth in digital subscriptions as well as
increased revenue from our large print circulation base. Indeed, for the
first time in our history, annual circulation revenues surpassed those
from advertising. Our pay model continued to prove itself, with
approximately 668,000 paid digital subscriptions across the Company at
quarter end, up 13 percent from the end of the third quarter.
“The demonstrated willingness of users here and around the world to pay
for the high quality journalism for which The New York Times and the
Company's other titles are renowned will be a key building block in the
strategy for growth, which we are currently developing and which I will
have much more to say about later in the year.
“By contrast, the advertising environment remained challenging in the
fourth quarter, with advertising revenue trends similar to third-quarter
levels.
“We continued to improve our liquidity position in the fourth quarter.
In addition to steady cash flow from operations, our balance sheet was
further strengthened by the sales of the About Group and our ownership
interest in Indeed.com, as we sharpened our focus on our core brands.
All in, we ended 2012 with approximately $955 million in cash and
short-term investments, even after making pension contributions and debt
payments totaling about $188 million during the fourth quarter. At year
end, our total cash position exceeded total debt and capital lease
obligations by approximately $258 million.”
Comparisons
Unless otherwise noted, all comparisons are for the fourth quarter of
2012 to the fourth quarter of 2011. The results of the Regional Media
Group, which was sold in the first quarter of 2012, and the results of
the About Group, which was sold in the fourth quarter of 2012, are
reported within discontinued operations for all periods presented.
Because of the Company’s fiscal calendar, the 2012 fourth quarter and
year included an additional week (14 weeks and 53 weeks) compared with
the 2011 fourth quarter and year (13 weeks and 52 weeks). A
reconciliation of revenues, excluding the estimated effect of the
additional week, to revenues including the additional week, is included
in the exhibits to this release.
This release includes other 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.
The fourth-quarter 2012 results included the following special items:
-
A $164.6 million ($102.4 million after tax or $.66 per share) gain on
the sale of the Company’s ownership interest in Indeed.com, a search
engine for jobs.
-
A $48.7 million ($28.3 million after tax or $.18 per share) non-cash
settlement charge in connection with the Company’s immediate pension
benefit offer to certain former employees.
-
A $2.6 million ($1.5 million after tax or $.01 per share) charge in
connection with a legal settlement.
The fourth-quarter 2011 results included the following special item:
-
A $4.5 million ($2.6 million after tax or $.02 per share) charge for a
retirement and consulting agreement in connection with the retirement
of the Company’s former chief executive officer at the end of 2011.
In addition, the Company had severance costs of $7.9 million ($4.4
million after tax or $.03 per share) and $7.9 million ($4.7 million
after tax or $.03 per share) in the fourth quarters of 2012 and 2011,
respectively.
Sale of About Group – Discontinued Operations
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 $17 million. As a
result of the sale, the Company recorded a gain of $96.7 million ($61.9
million after tax) in the fourth quarter of 2012. The net after-tax
proceeds from the sale were approximately $291 million.
Fourth-Quarter Results from Continuing
Operations
Revenues
Total revenues increased 5.2 percent to $575.8 million from $547.4
million. Advertising revenues decreased 3.1 percent, while circulation
and other revenues increased 16.1 percent and 4.8 percent, respectively.
Excluding the additional week, estimated total revenues decreased 0.7
percent, with advertising revenues down 8.3 percent and circulation and
other revenues up 8.6 percent and 2.1 percent, respectively.
Print advertising revenues decreased 5.6 percent and digital advertising
revenues rose 5.1 percent. Excluding the additional week, estimated
print and digital advertising revenues decreased 10.2 percent and 1.7
percent, respectively, largely due to the uneven 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 6.3 percent to $480.5 million from $452.1
million. Excluding depreciation, amortization and severance, operating
costs increased 7.3 percent to $451.3 million from $420.6 million. In
addition to the effect of the additional week, costs rose mainly due to
higher promotion costs, benefits expense and various other costs, offset
in part by lower compensation costs, including stock-based compensation,
and raw materials expense.
Other Data
Digital
Digital businesses principally include NYTimes.com, BostonGlobe.com and
Boston.com. In the fourth quarter of 2012, digital advertising revenues
increased 5.1 percent to $69.0 million from $65.7 million. For the full
year of 2012, digital advertising revenues increased 0.2 percent to
$214.8 million from $214.5 million in 2011. Excluding the additional
week, estimated digital advertising revenues decreased 1.7 percent in
the fourth quarter and 1.9 percent for the full year of 2012.
Digital advertising revenues as a percentage of total Company
advertising revenues were 24.7 percent in the fourth quarter of 2012
compared with 22.7 percent in the fourth quarter of 2011. For the full
year, digital advertising revenues as a percentage of total Company
advertising revenues were 23.9 percent in 2012 compared with 22.5
percent in 2011.
Paid subscribers to The New York Times and the International Herald
Tribune digital subscription packages, e-readers and replica editions
totaled approximately 640,000 as of the end of the fourth quarter of
2012, an increase of approximately 13 percent since the end of the third
quarter of 2012. Paid digital subscribers to BostonGlobe.com and The
Boston Globe’s e-readers and replica editions totaled approximately
28,000 as of the end of the fourth quarter of 2012, up approximately 8
percent since the end of the third quarter of 2012.
Joint Ventures
Income from joint ventures decreased to $0.9 million from $4.1 million
largely because of the divestiture of the Company’s ownership interest
in Fenway Sports Group in the first half of 2012, coupled with lower
results for the paper mills in which the Company has an investment.
Interest Expense, net
Interest expense, net increased to $16.4 million from $15.5 million
mainly due to charges related to the termination of the Company’s
revolving credit facility and the repurchase of $5.9 million principal
amount of the Company’s 5.0 percent senior notes due March 15, 2015,
offset by lower interest expense due to the Company’s payment at
maturity on September 26, 2012 of all $75 million aggregate principal
amount of the Company’s 4.610 percent senior notes.
Income Taxes
The Company had income tax expense of $75.8 million (effective tax rate
of 39.2 percent) in the fourth quarter and $103.5 million (effective tax
rate of 39.3 percent) for the full year of 2012. The Company’s effective
tax rate in the fourth quarter of 2012 was favorably affected by a lower
income tax rate on the sale of the Company’s ownership interest in
Indeed.com. The Company had income tax expense of $28.4 million
(effective tax rate of 35.8 percent) in the fourth quarter and $31.9
million (effective tax rate of 38.4 percent) for the full year of 2011.
Excluding severance and special items, the Company’s effective tax rate
was 43.9 percent in the fourth quarter of 2012 compared with 36.5
percent in the fourth quarter of 2011. The 36.5 percent tax rate in the
2011 fourth quarter was favorably affected by the reversal of reserves
for uncertain tax positions due to the lapse of applicable statutes of
limitations.
Liquidity
The following table details the original maturities and carrying values
of the Company’s debt and capital lease obligations as of December 30,
2012.
|
(in thousands)
|
|
December 30, 2012
|
|
2015
|
|
|
|
|
|
5.0% senior notes
|
|
$
|
244,100
|
|
|
2016
|
|
|
|
|
|
6.625% senior notes
|
|
225,000
|
|
|
2019
|
|
|
|
|
|
Option to repurchase ownership interest in headquarters building
|
|
250,000
|
|
|
Total
|
|
|
|
|
|
|
|
$
|
719,100
|
|
|
Less: Unamortized amounts
|
|
(29,045
|
)
|
|
Carrying value of debt
|
|
$
|
690,055
|
|
|
Capital lease obligations
|
|
7,023
|
|
|
Total debt and capital lease obligations
|
|
$
|
697,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At the end of 2012, cash and short-term investments were approximately
$955 million (excluding restricted cash of approximately $24 million
that is subject to certain collateral requirements). As a result, the
Company’s cash and short-term investments exceeded total debt and
capital lease obligations by approximately $258 million. The Company
believes this provides a useful measure of its liquidity and overall
debt position.
In the fourth quarter of 2012, the Company’s cash and short-term
investments improved by more than $340 million from the third quarter of
2012, in large part due to proceeds from the sales of the About Group
and the Company’s ownership interest in Indeed.com. During the fourth
quarter, the Company also repaid in full the $75 million 4.610 percent
senior notes that matured on September 26, 2012, repurchased $5.9
million principal amount of the 5.0 percent senior notes due March 15,
2015, and terminated its $125 million asset-backed revolving credit
facility.
In early October 2012, Indeed.com, 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 and the net after-tax proceeds
were approximately $104 million.
Capital Expenditures
Capital expenditures totaled approximately $6 million in the fourth
quarter and approximately $26 million in 2012.
Pension Obligations
As part of the Company’s ongoing strategy to reduce its pension
obligations and the resulting volatility of the Company’s overall
financial condition, in September 2012, it 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 or to commence an immediate
monthly annuity. As a result, the Company recorded a non-cash settlement
charge of $48.7 million in connection with the lump sum payments made in
the fourth quarter of 2012, which totaled approximately $112 million.
These lump sum distributions were made with existing assets of The New
York Times Companies Pension Plan and not with Company cash.
For accounting purposes on a GAAP basis, based on preliminary results,
the underfunded status of the Company’s qualified pension plans as of
December 30, 2012, was approximately $396 million. While the
funded status of the Company’s qualified pension plans was negatively
affected by the decline in interest rates, that decline was more than
offset by contributions, the lump-sum offer and solid returns in pension
asset performance.
The Company made contributions of approximately $107 million in the
fourth quarter and approximately $144 million for the full year of 2012
to certain qualified pension plans. The majority of these contributions
were discretionary. In January 2013, the Company made a contribution of
approximately $57 million to The New York Times Newspaper Guild pension
plan, of which $20 million was necessary to satisfy minimum funding
requirements in 2013. For the full year 2013, the Company expects
mandatory contributions to other qualified pension plans to raise total
contributions to approximately $71 million. The Company will continue to
evaluate whether to make additional discretionary contributions in 2013
to its qualified pension plans based on cash flows, pension asset
performance, interest rates and other factors.
Outlook
Total advertising revenue trends in the first quarter of 2013 are
expected to be similar to the level experienced in the fourth quarter of
2012 on a 13-week basis.
Total circulation revenues are projected to increase in the mid-single
digits in the first quarter of 2013 because the Company expects to
benefit from its digital subscription initiatives as well as from the
print circulation price increase at The New York Times implemented in
the first quarter of 2013.
The Company expects first-quarter operating costs to decrease in the
low- to mid-single digits largely because it is cycling against
approximately $7 million in accelerated depreciation in the first
quarter of 2012. Operating costs, excluding depreciation, amortization
and severance, are expected to decrease in the low-single digits
compared with the same period last year.
In addition, the Company expects the following on a pre-tax basis in
2013:
-
Results from joint ventures: loss of $1 to $5 million,
-
Depreciation and amortization: $90 to $95 million,
-
Interest expense, net: $55 to $60 million, and
-
Capital expenditures: $40 to $50 million.
Conference Call Information
The Company’s fourth-quarter 2012 earnings conference call will be held
on Thursday, February 7, at 11:00 a.m. E.T. To access the call, dial
888-233-8011 (in the U.S.) and 913-312-1450 (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, February 8. The access code is 4856442.
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 2012 revenues of $2.0 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
|
|
|
|
|
Reconciliation of Non-GAAP Information
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Dollars and shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Full Year
|
|
|
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
|
|
|
|
(14 weeks)
|
|
(13 weeks)
|
|
|
|
(53 weeks)
|
|
(52 weeks)
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
$
|
279,975
|
|
|
$
|
289,039
|
|
|
-3.1%
|
|
$
|
898,078
|
|
|
$
|
954,531
|
|
|
-5.9%
|
|
Circulation
|
|
257,816
|
|
|
222,065
|
|
|
16.1%
|
|
952,968
|
|
|
862,982
|
|
|
10.4%
|
|
Other(a)
|
|
38,027
|
|
|
36,291
|
|
|
4.8%
|
|
139,034
|
|
|
135,117
|
|
|
2.9%
|
|
Total revenues
|
|
575,818
|
|
|
547,395
|
|
|
5.2%
|
|
1,990,080
|
|
|
1,952,630
|
|
|
1.9%
|
|
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs
|
|
224,110
|
|
|
206,920
|
|
|
8.3%
|
|
832,228
|
|
|
810,569
|
|
|
2.7%
|
|
Selling, general and administrative costs
|
|
235,114
|
|
|
221,501
|
|
|
6.1%
|
|
901,405
|
|
|
886,232
|
|
|
1.7%
|
|
Depreciation and amortization(b)
|
|
21,237
|
|
|
23,660
|
|
|
-10.2%
|
|
96,758
|
|
|
94,224
|
|
|
2.7%
|
|
Total operating costs
|
|
480,461
|
|
|
452,081
|
|
|
6.3%
|
|
1,830,391
|
|
|
1,791,025
|
|
|
2.2%
|
|
Pension settlement expense(c)
|
|
48,729
|
|
|
—
|
|
|
N/A
|
|
48,729
|
|
|
—
|
|
|
N/A
|
|
Other expense(d)
|
|
2,620
|
|
|
4,500
|
|
|
-41.8%
|
|
2,620
|
|
|
4,500
|
|
|
-41.8%
|
|
Write-down of assets(e)
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
9,225
|
|
|
N/A
|
|
Pension withdrawal expense(f)
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
4,228
|
|
|
N/A
|
|
Operating profit
|
|
44,008
|
|
|
90,814
|
|
|
-51.5%
|
|
108,340
|
|
|
143,652
|
|
|
-24.6%
|
|
Gain on sale of investments(g)
|
|
164,630
|
|
|
—
|
|
|
N/A
|
|
220,275
|
|
|
71,171
|
|
|
*
|
|
Write-down of investments(h)
|
|
—
|
|
|
—
|
|
|
N/A
|
|
5,500
|
|
|
—
|
|
|
N/A
|
|
Income from joint ventures
|
|
927
|
|
|
4,054
|
|
|
-77.1%
|
|
3,004
|
|
|
28
|
|
|
*
|
|
Premium on debt redemption(i)
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
46,381
|
|
|
N/A
|
|
Interest expense, net
|
|
16,402
|
|
|
15,461
|
|
|
6.1%
|
|
62,815
|
|
|
85,243
|
|
|
-26.3%
|
|
Income from continuing operations before income taxes
|
|
193,163
|
|
|
79,407
|
|
|
*
|
|
263,304
|
|
|
83,227
|
|
|
*
|
|
Income tax expense
|
|
75,775
|
|
|
28,423
|
|
|
*
|
|
103,482
|
|
|
31,932
|
|
|
*
|
|
Income from continuing operations
|
|
117,388
|
|
|
50,984
|
|
|
*
|
|
159,822
|
|
|
51,295
|
|
|
*
|
|
Income/(loss) from discontinued operations, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of income taxes(j)
|
|
59,789
|
|
|
7,921
|
|
|
*
|
|
(26,483
|
)
|
|
(91,519
|
)
|
|
-71.1%
|
|
Net income/(loss)
|
|
177,177
|
|
|
58,905
|
|
|
*
|
|
133,339
|
|
|
(40,224
|
)
|
|
*
|
|
Net (income)/loss attributable to the noncontrolling interest
|
|
(267
|
)
|
|
40
|
|
|
*
|
|
(166
|
)
|
|
555
|
|
|
*
|
|
Net income/(loss) attributable to The New York
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Times Company common stockholders
|
|
$
|
176,910
|
|
|
$
|
58,945
|
|
|
*
|
|
$
|
133,173
|
|
|
$
|
(39,669
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to The New York Times
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
117,121
|
|
|
$
|
51,024
|
|
|
*
|
|
$
|
159,656
|
|
|
$
|
51,850
|
|
|
*
|
|
Income/(loss) from discontinued operations, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
59,789
|
|
|
7,921
|
|
|
*
|
|
(26,483
|
)
|
|
(91,519
|
)
|
|
-71.1%
|
|
Net income/(loss)
|
|
$
|
176,910
|
|
|
$
|
58,945
|
|
|
*
|
|
$
|
133,173
|
|
|
$
|
(39,669
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
148,461
|
|
|
147,451
|
|
|
0.7%
|
|
148,147
|
|
|
147,190
|
|
|
0.7%
|
|
Diluted
|
|
154,685
|
|
|
149,887
|
|
|
3.2%
|
|
152,693
|
|
|
152,007
|
|
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The New York Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.79
|
|
|
$
|
0.35
|
|
|
*
|
|
$
|
1.08
|
|
|
$
|
0.35
|
|
|
*
|
|
Income/(loss) from discontinued operations, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
0.40
|
|
|
0.05
|
|
|
*
|
|
(0.18
|
)
|
|
(0.62
|
)
|
|
-71.0%
|
|
Net income/(loss)
|
|
$
|
1.19
|
|
|
$
|
0.40
|
|
|
*
|
|
$
|
0.90
|
|
|
$
|
(0.27
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss) per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The New York Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.76
|
|
|
$
|
0.34
|
|
|
*
|
|
$
|
1.04
|
|
|
$
|
0.34
|
|
|
*
|
|
Income/(loss) from discontinued operations, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
0.38
|
|
|
0.05
|
|
|
*
|
|
(0.17
|
)
|
|
(0.60
|
)
|
|
-71.7%
|
|
Net income/(loss)
|
|
$
|
1.14
|
|
|
$
|
0.39
|
|
|
*
|
|
$
|
0.87
|
|
|
$
|
(0.26
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
% Change
|
|
|
|
|
Fourth Quarter
|
|
|
vs. 2011
|
|
|
Full Year
|
|
|
vs. 2011
|
|
|
|
|
(14 weeks)
|
|
|
|
|
|
(53 weeks)
|
|
|
|
|
The New York Times Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
$
|
226,461
|
|
|
|
-3.5%
|
|
|
$
|
711,829
|
|
|
|
-5.9%
|
|
Circulation
|
|
|
216,123
|
|
|
|
18.1%
|
|
|
795,037
|
|
|
|
12.7%
|
|
Other
|
|
|
25,531
|
|
|
|
1.1%
|
|
|
88,475
|
|
|
|
-5.1%
|
|
Total
|
|
|
$
|
468,115
|
|
|
|
5.7%
|
|
|
$
|
1,595,341
|
|
|
|
2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New England Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
$
|
53,514
|
|
|
|
-1.6%
|
|
|
$
|
186,249
|
|
|
|
-6.1%
|
|
Circulation
|
|
|
41,693
|
|
|
|
6.8%
|
|
|
157,931
|
|
|
|
0.1%
|
|
Other
|
|
|
12,496
|
|
|
|
13.3%
|
|
|
50,559
|
|
|
|
20.8%
|
|
Total
|
|
|
$
|
107,703
|
|
|
|
3.1%
|
|
|
$
|
394,739
|
|
|
|
-0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
$
|
279,975
|
|
|
|
-3.1%
|
|
|
$
|
898,078
|
|
|
|
-5.9%
|
|
Circulation
|
|
|
257,816
|
|
|
|
16.1%
|
|
|
952,968
|
|
|
|
10.4%
|
|
Other(a)
|
|
|
38,027
|
|
|
|
4.8%
|
|
|
139,034
|
|
|
|
2.9%
|
|
Total
|
|
|
$
|
575,818
|
|
|
|
5.2%
|
|
|
$
|
1,990,080
|
|
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes page for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
% Change
|
|
|
|
|
Fourth Quarter
|
|
|
vs. 2011
|
|
|
Full Year
|
|
|
vs. 2011
|
|
|
|
|
(14 weeks)
|
|
|
|
|
|
(53 weeks)
|
|
|
|
|
National
|
|
|
$
|
190,663
|
|
|
|
-3.4%
|
|
|
$
|
601,630
|
|
|
|
-5.9%
|
|
Retail
|
|
|
52,602
|
|
|
|
-2.9%
|
|
|
153,217
|
|
|
|
-3.8%
|
|
Classified:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Help-Wanted
|
|
|
6,343
|
|
|
|
-4.0%
|
|
|
26,781
|
|
|
|
-2.5%
|
|
Real Estate
|
|
|
9,567
|
|
|
|
-10.9%
|
|
|
39,057
|
|
|
|
-16.2%
|
|
Automotive
|
|
|
5,958
|
|
|
|
9.4%
|
|
|
23,057
|
|
|
|
-2.5%
|
|
Other
|
|
|
7,469
|
|
|
|
-1.3%
|
|
|
28,780
|
|
|
|
-6.5%
|
|
Total Classified
|
|
|
29,337
|
|
|
|
-3.4%
|
|
|
117,675
|
|
|
|
-8.4%
|
|
Other
|
|
|
7,373
|
|
|
|
2.0%
|
|
|
25,556
|
|
|
|
-5.8%
|
|
Total Company
|
|
|
$
|
279,975
|
|
|
|
-3.1%
|
|
|
$
|
898,078
|
|
|
|
-5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
|
|
FOOTNOTES
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
(a)
|
|
Other revenues consist primarily of revenues from news
services/syndication, commercial printing and distribution, 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 fourth quarter of 2012, the Company recorded a $48.7 million
non-cash settlement charge in connection with the Company's
immediate pension benefit offer to certain former employees.
|
|
|
|
|
|
(d)
|
|
In the fourth quarter of 2012, the Company recorded a $2.6 million
charge in connection with a legal settlement. In the fourth quarter
of 2011, the Company recorded a $4.5 million charge for a retirement
and consulting agreement in connection with the retirement of the
Company's former chief executive officer at the end of 2011.
|
|
|
|
|
|
(e)
|
|
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.
|
|
|
|
|
|
(f)
|
|
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.
|
|
|
|
|
|
(g)
|
|
In the fourth quarter of 2012, the Company recorded a $164.6 million
gain on the sale of its ownership interest in Indeed.com, a search
engine for jobs. 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 ownership interest in
Indeed.com.
|
|
|
|
|
|
(h)
|
|
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.
|
|
|
|
|
|
(i)
|
|
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.
|
|
|
|
|
|
(j)
|
|
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.
|
|
|
|
|
|
|
|
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 have been classified as discontinued operations for all
periods presented.
|
|
|
|
|
|
|
|
The following tables summarize the results of operations presented
as discontinued operations for both the About Group and the Regional
Media Group:
|
|
|
|
|
|
Fourth Quarter
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
Regional
|
|
|
|
|
|
|
|
|
|
|
|
Regional
|
|
|
|
|
|
|
|
|
|
About
|
|
|
|
Media
|
|
|
|
|
|
|
|
About
|
|
|
|
Media
|
|
|
|
|
|
|
|
|
|
Group
|
|
|
|
Group
|
|
|
|
Total
|
|
|
|
Group
|
|
|
|
Group
|
|
|
|
Total
|
|
Revenues
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
26,116
|
|
|
|
|
$
|
69,449
|
|
|
|
|
$
|
95,565
|
|
Total operating costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
17,809
|
|
|
|
|
58,789
|
|
|
|
|
76,598
|
|
Write-down of assets
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,116
|
|
|
|
|
—
|
|
|
|
|
3,116
|
|
Pre-tax income
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
5,191
|
|
|
|
|
10,660
|
|
|
|
|
15,851
|
|
Income tax expense
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,994
|
|
|
|
|
5,936
|
|
|
|
|
7,930
|
|
Income from discontinued operations, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,197
|
|
|
|
|
4,724
|
|
|
|
|
7,921
|
|
Gain/(loss) on sale, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain/(loss) on sale
|
|
|
|
96,675
|
|
|
|
|
(724
|
)
|
|
|
|
95,951
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Income tax expense
|
|
|
|
34,785
|
|
|
|
|
1,377
|
|
|
|
|
36,162
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Gain/(loss) on sale, net of income taxes
|
|
|
|
61,890
|
|
|
|
|
(2,101
|
)
|
|
|
|
59,789
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Income/(loss) from discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of income taxes
|
|
|
|
$
|
61,890
|
|
|
|
|
$
|
(2,101
|
)
|
|
|
|
$
|
59,789
|
|
|
|
|
$
|
3,197
|
|
|
|
|
$
|
4,724
|
|
|
|
|
$
|
7,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
FOOTNOTES (continued)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
Regional
|
|
|
|
|
|
|
|
|
|
|
|
Regional
|
|
|
|
|
|
|
|
|
|
About
|
|
|
|
Media
|
|
|
|
|
|
|
|
About
|
|
|
|
Media
|
|
|
|
|
|
|
|
|
|
Group
|
|
|
|
Group
|
|
|
|
Total
|
|
|
|
Group
|
|
|
|
Group
|
|
|
|
Total
|
|
Revenues
|
|
|
|
$
|
74,970
|
|
|
|
|
$
|
6,115
|
|
|
|
|
$
|
81,085
|
|
|
|
|
$
|
110,826
|
|
|
|
|
$
|
259,945
|
|
|
|
|
$
|
370,771
|
|
|
Total operating costs
|
|
|
|
51,140
|
|
|
|
|
8,017
|
|
|
|
|
59,157
|
|
|
|
|
67,475
|
|
|
|
|
235,032
|
|
|
|
|
302,507
|
|
|
Write-down of assets
|
|
|
|
194,732
|
|
|
|
|
—
|
|
|
|
|
194,732
|
|
|
|
|
3,116
|
|
|
|
|
152,093
|
|
|
|
|
155,209
|
|
|
Pre-tax (loss)/income
|
|
|
|
(170,902
|
)
|
|
|
|
(1,902
|
)
|
|
|
|
(172,804
|
)
|
|
|
|
40,235
|
|
|
|
|
(127,180
|
)
|
|
|
|
(86,945
|
)
|
|
Income tax (benefit)/expense
|
|
|
|
(60,065
|
)
|
|
|
|
(736
|
)
|
|
|
|
(60,801
|
)
|
|
|
|
15,453
|
|
|
|
|
(10,879
|
)
|
|
|
|
4,574
|
|
|
(Loss)/income from discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of income taxes
|
|
|
|
(110,837
|
)
|
|
|
|
(1,166
|
)
|
|
|
|
(112,003
|
)
|
|
|
|
24,782
|
|
|
|
|
(116,301
|
)
|
|
|
|
(91,519
|
)
|
|
Gain/(loss) on sale, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain/(loss) on sale
|
|
|
|
96,675
|
|
|
|
|
(5,441
|
)
|
|
|
|
91,234
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Income tax expense/(benefit)
|
|
|
|
34,785
|
|
|
|
|
(29,071
|
)
|
*
|
|
|
5,714
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Gain on sale, net of income taxes
|
|
|
|
61,890
|
|
|
|
|
23,630
|
|
|
|
|
85,520
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
(Loss)/income from discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of income taxes
|
|
|
|
$
|
(48,947
|
)
|
|
|
|
$
|
22,464
|
|
|
|
|
$
|
(26,483
|
)
|
|
|
|
$
|
24,782
|
|
|
|
|
$
|
(116,301
|
)
|
|
|
|
$
|
(91,519
|
)
|
|
*Tax benefit is primarily due to a tax deduction for goodwill,
which was previously non-deductible, triggered upon the sale of
the Regional Media Group.
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
RECONCILIATION OF NON-GAAP INFORMATION
|
|
|
|
|
|
|
|
In this release, the Company has included non-GAAP financial
information with respect to diluted earnings per share from
continuing operations excluding severance and special items;
operating profit before depreciation, amortization, severance and
special items (if any); operating costs before depreciation,
amortization, severance and raw materials; revenues excluding the
estimated effect of the additional week in the 2012 fiscal calendar;
and the effective tax rate on income from continuing operations
excluding severance and special items. 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 Company's operations. In addition, because the Company's 2012
fiscal fourth quarter and year included an additional week (14 weeks
and 53 weeks) compared with the 2011 fiscal fourth quarter and year
(13 weeks and 52 weeks), the Company has disclosed revenues
excluding the estimated effect of the additional week in 2012.
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), operating costs,
revenues and the effective tax rate. 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. The effective tax rate on
income from continuing operations excluding severance and special
items provides investors with helpful supplemental information in
evaluating the Company's period-to-period diluted earnings per share
excluding severance and special items, by highlighting the relative
impact of the tax rates on this measure in 2012 and 2011.
|
|
|
|
Reconciliations of these non-GAAP financial measures from,
respectively, diluted earnings/(loss) per share from continuing
operations, operating profit, operating costs, revenues and the
effective tax rate on income from continuing operations, the most
directly comparable GAAP items, are set out in the tables below.
|
|
Reconciliation of diluted earnings per
share from continuing operations excluding severance and special
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
|
Full Year
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
% Change
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
% Change
|
|
Diluted earnings per share from continuing operations
|
|
|
|
$
|
|
|
0.76
|
|
|
|
|
$
|
|
|
0.34
|
|
|
|
|
*
|
|
|
|
$
|
|
|
1.04
|
|
|
|
|
$
|
|
0.34
|
|
|
|
|
*
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
|
|
0.03
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
0.07
|
|
|
|
|
0.04
|
|
|
|
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated depreciation
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
—
|
|
|
|
|
|
|
Pension settlement expense
|
|
|
|
0.18
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
0.18
|
|
|
|
|
—
|
|
|
|
|
|
|
Other expense
|
|
|
|
0.01
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
0.02
|
|
|
|
|
|
|
Write-down of assets
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
0.04
|
|
|
|
|
|
|
Pension withdrawal expense
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
0.02
|
|
|
|
|
|
|
Gain on sale of investments
|
|
|
|
(0.66
|
)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
(0.87
|
)
|
|
|
|
(0.27
|
)
|
|
|
|
|
|
Write-down of investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
—
|
|
|
|
|
|
|
Premium on debt redemption
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
0.18
|
|
|
|
|
|
|
Diluted earnings per share from continuing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations excluding severance and special items
|
|
|
|
$
|
|
|
0.32
|
|
|
|
|
$
|
|
|
0.39
|
|
|
|
|
-17.9%
|
|
|
|
$
|
|
|
0.47
|
|
|
|
|
$
|
|
0.37
|
|
|
|
|
27.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents an increase 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Full Year
|
|
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
|
|
(14 weeks)
|
|
|
(13 weeks)
|
|
|
|
|
|
(53 weeks)
|
|
|
(52 weeks)
|
|
|
|
|
|
Operating profit
|
|
|
$
|
44,008
|
|
|
|
$
|
90,814
|
|
|
|
-51.5%
|
|
|
$
|
108,340
|
|
|
|
$
|
143,652
|
|
|
|
-24.6
|
%
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
21,237
|
|
|
|
23,660
|
|
|
|
|
|
|
96,758
|
|
|
|
94,224
|
|
|
|
|
|
|
Severance
|
|
|
7,923
|
|
|
|
7,853
|
|
|
|
|
|
|
18,051
|
|
|
|
12,852
|
|
|
|
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement expense
|
|
|
48,729
|
|
|
|
—
|
|
|
|
|
|
|
48,729
|
|
|
|
—
|
|
|
|
|
|
|
Other expense
|
|
|
2,620
|
|
|
|
4,500
|
|
|
|
|
|
|
2,620
|
|
|
|
4,500
|
|
|
|
|
|
|
Write-down of assets
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
9,225
|
|
|
|
|
|
|
Pension withdrawal expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
4,228
|
|
|
|
|
|
|
Operating profit before depreciation & amortization,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
severance and special items
|
|
|
$
|
124,517
|
|
|
|
$
|
126,827
|
|
|
|
-1.8%
|
|
|
$
|
274,498
|
|
|
|
$
|
268,681
|
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating costs before
depreciation & amortization, severance and raw materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Full Year
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
2012
|
|
|
2011
|
|
|
% Change
|
|
|
|
|
|
(14 weeks)
|
|
|
(13 weeks)
|
|
|
|
|
|
(53 weeks)
|
|
|
(52 weeks)
|
|
|
|
|
|
Operating costs
|
|
|
$
|
480,461
|
|
|
|
$
|
452,081
|
|
|
|
6.3%
|
|
|
$
|
1,830,391
|
|
|
|
$
|
1,791,025
|
|
|
|
2.2
|
%
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
21,237
|
|
|
|
23,660
|
|
|
|
|
|
|
96,758
|
|
|
|
94,224
|
|
|
|
|
|
|
Severance
|
|
|
7,923
|
|
|
|
7,853
|
|
|
|
|
|
|
18,051
|
|
|
|
12,852
|
|
|
|
|
|
|
Operating costs before depreciation & amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and severance
|
|
|
451,301
|
|
|
|
420,568
|
|
|
|
7.3%
|
|
|
1,715,582
|
|
|
|
1,683,949
|
|
|
|
1.9
|
%
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials
|
|
|
37,975
|
|
|
|
37,525
|
|
|
|
|
|
|
136,526
|
|
|
|
138,622
|
|
|
|
|
|
|
Operating costs before depreciation & amortization,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
severance and raw materials
|
|
|
$
|
413,326
|
|
|
|
$
|
383,043
|
|
|
|
7.9%
|
|
|
$
|
1,579,056
|
|
|
|
$
|
1,545,327
|
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of revenues excluding the
estimated effect of the additional week
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
|
|
|
2012
|
|
|
|
Additional
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
|
Week
|
|
|
|
Adjusted
|
|
|
|
2011
|
|
|
|
% Change
|
|
Total Company
|
|
|
|
(14 weeks)
|
|
|
|
|
|
|
|
(13 weeks)
|
|
|
|
(13 weeks)
|
|
|
|
|
|
Advertising:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Print
|
|
|
|
$
|
210,949
|
|
|
|
|
$
|
(10,422
|
)
|
|
|
|
$
|
200,527
|
|
|
|
|
$
|
223,352
|
|
|
|
|
-10.2%
|
|
Digital
|
|
|
|
69,026
|
|
|
|
|
(4,435
|
)
|
|
|
|
64,591
|
|
|
|
|
65,687
|
|
|
|
|
-1.7%
|
|
Total advertising
|
|
|
|
279,975
|
|
|
|
|
(14,857
|
)
|
|
|
|
265,118
|
|
|
|
|
289,039
|
|
|
|
|
-8.3%
|
|
Circulation
|
|
|
|
257,816
|
|
|
|
|
(16,704
|
)
|
|
|
|
241,112
|
|
|
|
|
222,065
|
|
|
|
|
8.6%
|
|
Other
|
|
|
|
38,027
|
|
|
|
|
(964
|
)
|
|
|
|
37,063
|
|
|
|
|
36,291
|
|
|
|
|
2.1%
|
|
Total revenues
|
|
|
|
$
|
575,818
|
|
|
|
|
$
|
(32,525
|
)
|
|
|
|
$
|
543,293
|
|
|
|
|
$
|
547,395
|
|
|
|
|
-0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The New York Times Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
226,461
|
|
|
|
|
$
|
(11,613
|
)
|
|
|
|
$
|
214,848
|
|
|
|
|
$
|
234,660
|
|
|
|
|
-8.4%
|
|
Circulation
|
|
|
|
216,123
|
|
|
|
|
(13,903
|
)
|
|
|
|
202,220
|
|
|
|
|
183,032
|
|
|
|
|
10.5%
|
|
Other
|
|
|
|
25,531
|
|
|
|
|
(326
|
)
|
|
|
|
25,205
|
|
|
|
|
25,260
|
|
|
|
|
-0.2%
|
|
Total revenues
|
|
|
|
$
|
468,115
|
|
|
|
|
$
|
(25,842
|
)
|
|
|
|
$
|
442,273
|
|
|
|
|
$
|
442,952
|
|
|
|
|
-0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New England Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
53,514
|
|
|
|
|
$
|
(3,244
|
)
|
|
|
|
$
|
50,270
|
|
|
|
|
$
|
54,379
|
|
|
|
|
-7.6%
|
|
Circulation
|
|
|
|
41,693
|
|
|
|
|
(2,801
|
)
|
|
|
|
38,892
|
|
|
|
|
39,033
|
|
|
|
|
-0.4%
|
|
Other
|
|
|
|
12,496
|
|
|
|
|
(638
|
)
|
|
|
|
11,858
|
|
|
|
|
11,031
|
|
|
|
|
7.5%
|
|
Total revenues
|
|
|
|
$
|
107,703
|
|
|
|
|
$
|
(6,683
|
)
|
|
|
|
$
|
101,020
|
|
|
|
|
$
|
104,443
|
|
|
|
|
-3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
|
|
|
2012
|
|
|
|
Additional
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
|
Week
|
|
|
|
Adjusted
|
|
|
|
2011
|
|
|
|
% Change
|
|
Total Company
|
|
|
|
(53 weeks)
|
|
|
|
|
|
|
|
(52 weeks)
|
|
|
|
(52 weeks)
|
|
|
|
|
|
Advertising:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Print
|
|
|
|
$
|
683,306
|
|
|
|
|
$
|
(10,422
|
)
|
|
|
|
$
|
672,884
|
|
|
|
|
$
|
740,081
|
|
|
|
|
-9.1%
|
|
Digital
|
|
|
|
214,772
|
|
|
|
|
(4,435
|
)
|
|
|
|
210,337
|
|
|
|
|
214,450
|
|
|
|
|
-1.9%
|
|
Total advertising
|
|
|
|
898,078
|
|
|
|
|
(14,857
|
)
|
|
|
|
883,221
|
|
|
|
|
954,531
|
|
|
|
|
-7.5%
|
|
Circulation
|
|
|
|
952,968
|
|
|
|
|
(16,704
|
)
|
|
|
|
936,264
|
|
|
|
|
862,982
|
|
|
|
|
8.5%
|
|
Other
|
|
|
|
139,034
|
|
|
|
|
(964
|
)
|
|
|
|
138,070
|
|
|
|
|
135,117
|
|
|
|
|
2.2%
|
|
Total revenues
|
|
|
|
$
|
1,990,080
|
|
|
|
|
$
|
(32,525
|
)
|
|
|
|
$
|
1,957,555
|
|
|
|
|
$
|
1,952,630
|
|
|
|
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The New York Times Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
711,829
|
|
|
|
|
$
|
(11,613
|
)
|
|
|
|
$
|
700,216
|
|
|
|
|
$
|
756,148
|
|
|
|
|
-7.4%
|
|
Circulation
|
|
|
|
795,037
|
|
|
|
|
(13,903
|
)
|
|
|
|
781,134
|
|
|
|
|
705,163
|
|
|
|
|
10.8%
|
|
Other
|
|
|
|
88,475
|
|
|
|
|
(326
|
)
|
|
|
|
88,149
|
|
|
|
|
93,263
|
|
|
|
|
-5.5%
|
|
Total revenues
|
|
|
|
$
|
1,595,341
|
|
|
|
|
$
|
(25,842
|
)
|
|
|
|
$
|
1,569,499
|
|
|
|
|
$
|
1,554,574
|
|
|
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New England Media Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
|
$
|
186,249
|
|
|
|
|
$
|
(3,244
|
)
|
|
|
|
$
|
183,005
|
|
|
|
|
$
|
198,383
|
|
|
|
|
-7.8%
|
|
Circulation
|
|
|
|
157,931
|
|
|
|
|
(2,801
|
)
|
|
|
|
155,130
|
|
|
|
|
157,819
|
|
|
|
|
-1.7%
|
|
Other
|
|
|
|
50,559
|
|
|
|
|
(638
|
)
|
|
|
|
49,921
|
|
|
|
|
41,854
|
|
|
|
|
19.3%
|
|
Total revenues
|
|
|
|
$
|
394,739
|
|
|
|
|
$
|
(6,683
|
)
|
|
|
|
$
|
388,056
|
|
|
|
|
$
|
398,056
|
|
|
|
|
-2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Reconciliation of effective tax rate on
income from continuing operations excluding severance and special
items
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Pre-
|
|
|
|
After
|
|
Effective
|
|
Pre-
|
|
|
|
After
|
|
Effective
|
|
|
|
|
|
Tax
|
|
Tax
|
|
Tax
|
|
Tax Rate
|
|
Tax
|
|
Tax
|
|
Tax
|
|
Tax Rate
|
|
Income from continuing operations
|
|
|
|
$
|
|
193,163
|
|
|
$
|
|
75,775
|
|
|
$
|
|
117,388
|
|
|
39.2
|
%
|
|
$
|
|
79,407
|
|
|
$
|
|
28,423
|
|
|
$
|
|
50,984
|
|
|
35.8
|
%
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
|
|
7,923
|
|
|
3,525
|
|
|
4,398
|
|
|
|
|
7,853
|
|
|
3,184
|
|
|
4,669
|
|
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement expense
|
|
|
|
48,729
|
|
|
20,413
|
|
|
28,316
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Other expense
|
|
|
|
2,620
|
|
|
1,098
|
|
|
1,522
|
|
|
|
|
4,500
|
|
|
1,883
|
|
|
2,617
|
|
|
|
|
Gain on sale of investment
|
|
|
|
(164,630
|
)
|
|
(62,230
|
)
|
|
(102,400
|
)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
severance and special items
|
|
|
|
$
|
|
87,805
|
|
|
$
|
|
38,581
|
|
|
$
|
|
49,224
|
|
|
43.9
|
%
|
|
$
|
|
91,760
|
|
|
$
|
|
33,490
|
|
|
$
|
|
58,270
|
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
or
Andrea
Passalacqua, 212-556-7354
andrea.passalacqua@nytimes.com
|
