NEW YORK--(BUSINESS WIRE)--July 25, 2007--The New York Times
Company announced today second-quarter earnings per share (EPS) from
continuing operations of $.15, compared with $.37 in the second
quarter last year. Excluding the special items noted below, EPS was
$.34 from continuing operations compared with $.37 in the second
quarter last year. Operating profit decreased to $43.3 million from
$86.2 million in the second quarter of 2006, while operating profit
excluding depreciation and amortization and special items declined 2.7
percent to $118.5 million from $121.8 million in the second quarter of
2006.
Included in the second-quarter results from continuing operations
are the following special items:
- A pre-tax net loss of $68.2 million from the sale of assets,
principally the Edison, N.J., printing facility ($41.3 million
after tax or $.29 per share),
- A pre-tax gain of $39.6 million from the sale of WQEW-AM
($21.2 million after tax or $.15 per share), and
- Accelerated depreciation expense of $13.1 million ($7.4
million after tax, or $.05 per share) for assets at the
Company's Edison, N.J., printing plant, which is in the
process of being closed.
The net effect of these special items reduced net income from
continuing operations by $27.5 million or $.19 per share. In addition,
there was a pre-tax gain of $191.2 million from the sale of the
Broadcast Media Group ($94.3 million after tax or $.66 per share),
which is classified as discontinued operations.
"While our second-quarter results reflected the weakness in the
print advertising market stemming from both secular and cyclical
forces in our businesses, we continued to move aggressively on new
product development, cost reduction and the rebalancing of our
portfolio," said Janet L. Robinson, president and CEO. "Our online
properties again grew strongly, up 23 percent in the quarter and
accounted for more than 10 percent of the Company's revenues.
"For the third consecutive quarter, we achieved year-over-year
cost reductions, excluding the effect of an extra week in the fourth
quarter of last year. This quarter our operating costs fell about 2
percent and, excluding depreciation and amortization, dropped nearly 4
percent as we continued our drive to reduce costs. We recently
completed a comprehensive review of our cost structure. As a result,
we expect to reduce our year-end 2007 cost base by about $230 million
in 2008 and 2009, excluding the effects of inflation and one-time
costs. About $130 million of these savings are expected in 2008. We
believe that reducing our cost structure in creative and disciplined
ways is an important part of the Company's ongoing efforts to manage
the business to match the changing dynamics of our markets.
"During the quarter, we continued to rebalance our portfolio of
businesses with the sale of our television properties and a radio
station. In addition, we strengthened our portfolio of digital assets
with the acquisition of ConsumerSearch.com, a leading online publisher
that analyzes product reviews.
"As we move forward, we will continue to focus on our strategy of
introducing new products both in print and online, building our
innovation capability, stringently managing costs and rebalancing our
portfolio of businesses."
Second-Quarter Results from Continuing Operations
All comparisons are for the second quarter of 2007 to the second
quarter of 2006 and exclude the results of the Broadcast Media Group.
This release includes non-GAAP financial measures, and the
exhibits include a discussion of management's use of these non-GAAP
financial measures and reconciliations to the most comparable GAAP
financial measures.
Revenues
Total revenues decreased 3.7 percent to $788.9 million from $819.6
million. Advertising revenues decreased 5.7 percent; circulation
revenues decreased 0.5 percent; and other revenues rose 2.2 percent.
Operating Costs
Operating costs decreased 2.2 percent to $717.0 million from
$733.4 million. Excluding depreciation and amortization, operating
costs decreased 3.9 percent to $670.4 million from $697.8 million,
mainly as a result of lower newsprint, staff reductions and other
costs, partially offset by $5.7 million in costs related to the move
into the Company's new headquarters.
Staff reduction costs were $5.0 million ($2.8 million after tax,
or $.02 per share) compared with $9.1 million ($5.3 million after tax,
or $.04 per share) in the second quarter last year.
Newsprint expense decreased 22.9 percent due to a combination of
lower newsprint prices and lower consumption.
Operating Profit
Operating profit decreased 49.8 percent to $43.3 million from
$86.2 million. Excluding depreciation and amortization and the special
items discussed above, operating profit decreased 2.7 percent to
$118.5 million from $121.8 million, due to lower revenues.
Second-Quarter Business Segment Results
News Media Group
Total News Media Group revenues decreased 4.5 percent to $764.2
million from $800.2 million. Advertising revenues decreased 6.9
percent due to weakness in print advertising across the News Media
Group, partially offset by higher online advertising revenues.
Circulation revenues decreased 0.5 percent, mainly because of
volume declines offset by higher prices. In the fourth quarter of
2006, The New York Times raised the newsstand price of the Northeast
edition of the Sunday Times and increased home-delivery prices.
Other revenues increased 1.9 percent to $60.6 million from $59.5
million primarily because of revenues from wholesale delivery
operations and Baseline StudioSystems. Baseline, which was acquired in
August 2006, is a leading online database and research service for
information on the film and television industries.
Total News Media Group operating costs decreased 2.9 percent to
$689.0 million from $709.3 million. Excluding depreciation and
amortization, operating costs decreased 4.5 percent to $647.6 million
from $678.2 million, mainly as a result of the items noted in the
operating costs section above.
Operating profit for the News Media Group decreased 48.7 percent
to $46.7 million from $90.9 million. Excluding depreciation and
amortization and the special items identified above, operating profit
for the News Media Group decreased 4.4 percent to $116.7 million from
$122.0 million because of lower revenues.
About Group
Total About Group revenues increased 27.0 percent to $24.7 million
from $19.4 million due to increased display and cost-per-click
advertising as well as revenues associated with the acquisition of
ConsumerSearch.com in May 2007. ConsumerSearch.com is a leading online
publisher that analyzes product reviews.
Total About Group operating costs increased 33.4 percent because
of higher compensation costs, due in part to investments in new
initiatives, and higher editorial costs. Operating profit grew 16.4
percent to $8.5 million from $7.3 million. Operating profit before
depreciation and amortization rose 16.3 percent to $11.9 million from
$10.3 million, due to higher revenues.
Corporate
Corporate costs were $11.8 million compared with $12.0 million in
the prior year second quarter.
Other Financial Data
Internet Revenues
In the second quarter, the Company's Internet revenues grew 23.4
percent to $80.9 million from $65.6 million in the second quarter of
2006. Internet businesses include digital archives, NYTimes.com,
Boston.com, About.com and other Company Web sites. In total, Internet
businesses accounted for 10.3 percent of the Company's revenues in the
second quarter versus 8.0 percent in the 2006 second quarter.
Joint Ventures
Net income from joint ventures was $4.7 million compared with $8.8
million. Lower earnings resulted from weaker performance at the paper
mills in which the Company owns a minority interest and the sale of
the Company's interest in Discovery Times Channel in October 2006.
Interest Expense-net
Interest expense-net decreased to $7.1 million from $13.2 million,
as the Company reduced its levels of commercial paper outstanding with
the proceeds from the sale of the Broadcast Media Group.
Income Taxes
The effective income tax rate increased to 46.0 percent from 34.4
percent. The increase was primarily due to the income taxes associated
with the asset sales that occurred in the second quarter.
Cash and Total Debt
At the end of the quarter, cash and cash equivalents were
approximately $58 million and total debt was approximately $965
million.
Plant Consolidation
In 2006 the Company announced plans to consolidate the printing
operations of a facility it leases in Edison, N.J., into its newest
facility in College Point, Queens. As part of the consolidation, the
Company originally planned to sublease the Edison facility through
2018, the end of the current lease term. After evaluating the options
with respect to the lease, the Company decided it was financially
prudent to purchase the Edison facility and sell it, with two adjacent
properties it already owned, to a third party. The purchase and sale
of the Edison facility closed in the second quarter of 2007, relieving
the Company of rental terms that were above market as well as
restoration obligations under the original lease. As a result of the
sale, the Company recognized a pre-tax loss of $68.2 million in the
second quarter.
Capital Expenditures
In the second quarter, total capital expenditures were
approximately $106 million, which included approximately $56 million
for the Company's new headquarters.
Expectations
The following expectations are for 2007 with the exception of cost
savings and productivity gains, which also include expectations for
2008 and 2009.
Cost savings and productivity gains - $65 million to $75
million in 2007, excluding the effect of inflation and certain
one-time costs. The Company believes that it can achieve a
reduction in costs from its year-end 2007 cost base of a total
of approximately $230 million in 2008 and 2009, excluding the
effects of inflation and certain one-time costs. About $130
million of these savings are expected in 2008.
- To date in July, print advertising remains challenging,
especially for banking, financial services and the classified
categories. While the Company continues to see strong gains at
its digital properties, in the month of July, the rate of
growth for online advertising at the News Media Group is
expected to be lower than the Company has experienced to date
in 2007. This is partly because of two large campaigns that
will not repeat at NYTimes.com.
- In June the Company announced circulation price increases
effective in July for New York Times home delivery and
newsstand copies that together are expected to add $7 to $8
million in incremental revenues this year, and $14 to $16
million on an annualized basis.
- Newsprint cost per ton is expected to decline about 9 to 10
percent.
- Depreciation and amortization - $185 to $195 million, which
includes $48 to $52 million ($14 to $15 million in the third
quarter and $10 to $11 million in the fourth quarter) of
accelerated depreciation expense associated with the plant
consolidation project, mainly presses. Total depreciation and
amortization includes approximately $15 to $17 million for the
Company's new headquarters, primarily in the second half of
2007.
- Income from joint ventures - $5 to $10 million.
- Interest expense - $41 to $44 million.
- Capital expenditures - $340 to $370 million, including $170 to
$190 million for the Company's new headquarters and $75
million for the plant consolidation.
- me tax rate - Excluding unusual items during the year,
such as a tax adjustment in the first quarter and asset
dispositions, the Company's normalized income tax rate for
2007 is estimated to be approximately 41 percent.
Conference Call Information
The Company's second-quarter earnings conference call will be held
on Wednesday, July 25, at 10:30 a.m. E.T. To access the call, dial
800-665-0430 (in the U.S.) and 913-312-1300 (international callers).
Participants should dial into the conference approximately 10 minutes
before the start time. Online listeners can link to the live webcast
at www.nytco.com/investors.
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, July 27. The access
code is 5664000. An archive of the webcast will be available beginning
two hours after the call at www.nytco.com/investors. In addition, an
MP3 file of the call can be downloaded from the Company's site. The
archive and a transcript of the call will be available for one
quarter.
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 retail, national and classified advertising and
circulation generated by the Company's various markets and material
increases in newsprint prices. 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
31, 2006. The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
The New York Times Company (NYSE: NYT), a leading media company
with 2006 revenues of $3.3 billion, includes The New York Times, the
International Herald Tribune, The Boston Globe, 15 other daily
newspapers, WQXR-FM and more than 30 Web sites, including NYTimes.com,
Boston.com and About.com. The Company's core purpose is to enhance
society by creating, collecting and distributing high-quality news,
information and entertainment.
Exhibits: Condensed Consolidated Statements of Income
Segment Information
News Media Group Revenues by Operating Segment
Footnotes
Reconciliation of Non-GAAP Information
This press release can be downloaded from www.nytco.com
THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
----------------------------------------------------------------------
Second Quarter
--------------------------
2007 2006 % Change
-------- -------- --------
Revenues
Advertising $508,467 $539,443 -5.7%
Circulation 218,664 219,705 -0.5%
Other (a) 61,812 60,488 2.2%
-------- --------
Total 788,943 819,636 -3.7%
Operating costs
Production costs 325,922 354,329 -8.0%
Selling, general and administrative costs 344,481 343,504 0.3%
Depreciation and amortization 46,645 35,560 31.2%
-------- --------
Total 717,048 733,393 -2.2%
Net loss on sale of assets (b) 68,156 - N/A
Gain on sale of WQEW-AM 39,578 - N/A
-------- --------
Operating profit 43,317 86,243 -49.8%
Net income from joint ventures 4,745 8,770 -45.9%
Interest expense - net 7,126 13,234 -46.2%
-------- --------
Income from continuing operations before
income taxes and minority interest 40,936 81,779 -49.9%
Income tax expense 18,851 28,156 -33.0%
Minority interest in net (income)/loss of
subsidiaries (24) 244 *
-------- --------
Income from continuing operations 22,061 53,867 -59.0%
Income from discontinued operations,
net of income taxes-
Broadcast Media Group (c) 1,977 5,714 -65.4%
Gain on sale of Broadcast Media Group,
net of income taxes (c) 94,330 - N/A
-------- --------
Discontinued operations, net of income *
taxes 96,307 5,714
-------- --------
Net income $118,368 $ 59,581 98.7%
======== ========
Average Number of Common Shares
Outstanding:
Basic 143,906 144,792 -0.6%
Diluted 144,114 144,943 -0.6%
Basic Earnings Per Share:
Income from continuing operations $ 0.15 $ 0.37 -59.5%
Discontinued operations, net of income *
taxes 0.67 0.04
-------- --------
Net Income $ 0.82 $ 0.41 100.0%
======== ========
Diluted Earnings Per Share:
Income from continuing operations $ 0.15 $ 0.37 -59.5%
Discontinued operations, net of income *
taxes 0.67 0.04
-------- --------
Net Income $ 0.82 $ 0.41 100.0%
======== ========
Dividends Per Share 0.230 0.175 31.4%
Year-to-Date
------------------------------
2007 2006 % Change
---------- ---------- --------
Revenues
Advertising $1,013,382 $1,062,128 -4.6%
Circulation 441,118 439,986 0.3%
Other (a) 120,463 116,719 3.2%
---------- ----------
Total 1,574,963 1,618,833 -2.7%
Operating costs
Production costs 670,947 711,075 -5.6%
Selling, general and administrative
costs 686,542 690,014 -0.5%
Depreciation and amortization 91,082 71,036 28.2%
---------- ----------
Total 1,448,571 1,472,125 -1.6%
Net loss on sale of assets (b) 68,156 - N/A
Gain on sale of WQEW-AM 39,578 - N/A
---------- ----------
Operating profit 97,814 146,708 -33.3%
Net income from joint ventures 2,592 10,737 -75.9%
Interest expense - net 18,454 25,758 -28.4%
---------- ----------
Income from continuing operations
before income taxes and minority
interest 81,952 131,687 -37.8%
Income tax expense 39,750 47,631 -16.5%
Minority interest in net (income)/loss
of subsidiaries (15) 337 *
---------- ----------
Income from continuing operations 42,187 84,393 -50.0%
Income from discontinued operations,
net of income taxes-
Broadcast Media Group (c) 5,753 7,600 -24.3%
Gain on sale of Broadcast Media Group,
net of income taxes (c) 94,330 - N/A
---------- ----------
Discontinued operations, net of income *
taxes 100,083 7,600
---------- ----------
Net income $ 142,270 $ 91,993 54.7%
========== ==========
Average Number of Common Shares
Outstanding:
Basic 143,901 144,978 -0.7%
Diluted 144,114 145,166 -0.7%
Basic Earnings Per Share:
Income from continuing operations $ 0.29 $ 0.58 -50.0%
Discontinued operations, net of *
income taxes 0.70 0.05
---------- ----------
Net Income $ 0.99 $ 0.63 57.1%
========== ==========
Diluted Earnings Per Share:
Income from continuing operations $ 0.29 $ 0.58 -50.0%
Discontinued operations, net of *
income taxes 0.70 0.05
---------- ----------
Net Income $ 0.99 $ 0.63 57.1%
========== ==========
Dividends Per Share 0.405 0.340 19.1%
* Represents an increase or decrease in excess of 100%.
----------------------------------------------------------------------
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
SEGMENT INFORMATION
(Dollars in thousands)
----------------------------------------------------------------------
Second Quarter Year-to-Date
---------------------------- ------------------------------
2007 2006 % Change 2007 2006 % Change
--------- --------- -------- ---------- ---------- --------
Revenues (c)
--------------------
News Media
Group $ 764,238 $ 800,190 -4.5% $1,527,715 $1,581,181 -3.4%
About
Group 24,705 19,446 27.0% 47,248 37,652 25.5%
--------- --------- ---------- ----------
Total $ 788,943 $ 819,636 -3.7% $1,574,963 $1,618,833 -2.7%
========= ========= ========== ==========
Operating Profit (Loss) (c)
------------------------------
News Media
Group $ 46,653 $ 90,933 -48.7% $ 106,282 $ 155,188 -31.5%
About
Group 8,511 7,309 16.4% 16,841 14,252 18.2%
Corporate (11,847) (11,999) -1.3% (25,309) (22,732) 11.3%
--------- --------- ---------- ----------
Total $ 43,317 $ 86,243 -49.8% $ 97,814 $ 146,708 -33.3%
========= ========= ========== ==========
Operating Profit (Loss) Before Depreciation & Amortization (d)
--------------------------------------------------------------
News Media
Group $ 88,092 $ 122,031 -27.8% $ 187,444 $ 217,235 -13.7%
About
Group 11,929 10,255 16.3% 23,392 20,157 16.0%
Corporate (10,059) (10,483) -4.0% (21,940) (19,648) 11.7%
--------- --------- ---------- ----------
Total $ 89,962 $ 121,803 -26.1% $ 188,896 $ 217,744 -13.2%
========= ========= ========== ==========
----------------------------------------------------------------------
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
NEWS MEDIA GROUP REVENUES BY OPERATING SEGMENT
(Dollars in thousands)
----------------------------------------------------------------------
2007
---------------------------------------
% Change % Change
Second vs. Year-to- vs.
Quarter 2006 Date 2006
--------- -------- ---------- ---------
The New York Times Media Group
Advertising $ 299,394 -5.3% $ 596,540 -4.4%
Circulation 157,888 0.2% 318,550 1.4%
Other 44,143 5.6% 86,219 5.4%
--------- ----------
Total $ 501,425 -2.7% $1,001,309 -1.8%
--------- ----------
New England Media Group
Advertising $ 100,334 -7.6% $ 197,576 -6.0%
Circulation 39,297 -2.4% 77,782 -3.5%
Other 10,657 -8.3% 20,050 -4.6%
--------- ----------
Total $ 150,288 -6.4% $ 295,408 -5.2%
--------- ----------
Regional Media Group
Advertising $ 85,205 -11.6% $ 174,411 -9.3%
Circulation 21,479 -1.4% 44,786 -1.1%
Other 5,841 -3.9% 11,801 -1.3%
--------- ----------
Total $ 112,525 -9.4% $ 230,998 -7.5%
--------- ----------
Total News Media Group
Advertising $ 484,933 -6.9% $ 968,527 -5.6%
Circulation 218,664 -0.5% 441,118 0.3%
Other (a) 60,641 1.9% 118,070 2.8%
--------- ----------
Total $ 764,238 -4.5% $1,527,715 -3.4%
========= ==========
----------------------------------------------------------------------
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
FOOTNOTES
(Dollars in thousands)
(a) Other revenues consist primarily of revenue from wholesale
delivery operations, news services/syndication, digital
archives, TimesSelect, Baseline StudioSystems and commercial
printing.
(b) In 2006 the Company announced plans to consolidate the printing
operations of a facility it leases in Edison, N.J., into its
newest facility in College Point, Queens. As part of the
consolidation, the Company originally planned to sublease the
Edison facility through 2018, the end of the current lease term.
After evaluating the options with respect to the lease, the
Company decided it was financially prudent to purchase the
Edison facility and sell it, with two adjacent properties it
already owned, to a third party. The purchase and sale of the
Edison facility closed in the second quarter of 2007, relieving
the Company of rental terms that were above market as well as
restoration obligations under the original lease. As a result of
the sale, the Company recognized a pre-tax loss of $68.2 million
in the second quarter.
(c) On May 7, 2007, the Company sold the Broadcast Media Group,
consisting of nine network-affiliated television stations, their
related Web sites and the digital operating center, for $575
million. Under Statement of Financial Accounting Standards No.
144, Accounting for the Impairment or Disposal of Long-Lived
Assets, the Broadcast Media Group is treated as a discontinued
operation. The Company has made reclassifications in all periods
presented to reflect this change.
Results for the Broadcast Media Group, included within
discontinued operations, for the second quarter and year-to-date
2007 and 2006 are as follows:
----------------- -----------------
Second Quarter Year-to-Date
----------------- -----------------
2007 2006 2007 2006
-------- -------- -------- --------
Revenues $ 13,798 $ 39,112 $ 46,702 $ 71,066
Pre-tax income $ 3,347 $ 9,685 $ 9,848 $ 12,882
Income taxes (1,370) (3,971) (4,095) (5,282)
-------- -------- -------- --------
Income from discontinued
operations, net of income
taxes- Broadcast Media Group 1,977 5,714 5,753 7,600
Gain on sale of Broadcast
Media Group, net of income
taxes of $96.9 million 94,330 - 94,330 -
-------- -------- -------- --------
Net income $ 96,307 $ 5,714 $100,083 $ 7,600
======== ======== ======== ========
(d) See "Reconciliation of Non-GAAP Information" for reconciliations
of operating profit(loss) to operating profit(loss) before
depreciation and amortization and to operating profit(loss)
before depreciation and amortization and excluding special
items.
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 earnings per share (EPS) from
continuing operations excluding special items, operating profit(loss)
before depreciation and amortization and excluding special items, and
operating costs before depreciation and amortization and excluding
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 EPS 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 measures of results.
Diluted EPS from continuing operations excluding special items
provides 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 and
amortization and excluding special items is useful in evaluating the
Company's ongoing cash-generating ability 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 and amortization and raw
materials. Total operating costs excluding depreciation and
amortization provide a useful measure of manageable costs. Total
operating costs excluding depreciation and amortization and raw
materials provide investors with helpful supplemental information on
the Company's underlying operating costs.
Reconciliations of these non-GAAP financial measures from,
respectively, diluted EPS from continuing operations, operating
profit(loss) and total operating costs, the most directly comparable
GAAP items, are set out in the tables below.
Reconciliation of diluted earnings per share from continuing
operations excluding special items
---------------------
Second Quarter
---------------------
2007 2006 % Change
------ ----- --------
Diluted EPS from
continuing operations $0.15 $0.37 -59.5%
Adjustments:
Net loss on sale of assets 0.29 -
Gain on sale of WQEW-AM (0.15) -
Accelerated depreciation 0.05 -
------ ----- --------
Adjusted diluted EPS $0.34 $0.37 -8.1%
====== ===== ========
Reconciliation of operating profit(loss) before depreciation and
amortization and special items
--------------------------------------
Second Quarter 2007
--------------------------------------
News
Media About Total
Group Group Corporate Company
--------- ------- --------- ---------
Operating profit(loss) $ 46,653 $ 8,511 $ (11,847) $ 43,317
Add:
Depreciation and amortization 41,439 3,418 1,788 46,645
--------- ------- ---------- ---------
Operating profit(loss) before
depreciation and amortization $ 88,092 $11,929 $ (10,059) $ 89,962
Adjustments:
Net loss on sale of assets 68,156 - - 68,156
Gain on sale of WQEW-AM (39,578) - - (39,578)
--------- ------- ---------- ---------
Adjusted operating profit(loss) $ 116,670 $11,929 $ (10,059) $ 118,540
========= ======= ========== =========
--------------------------------------
Second Quarter 2006
--------------------------------------
News
Media About Total
Group Group Corporate Company
--------- ------- --------- ---------
Operating profit(loss) $ 90,933 $ 7,309 $ (11,999) $ 86,243
Add:
Depreciation and amortization 31,098 2,946 1,516 35,560
--------- ------- --------------------
Operating profit(loss) before
depreciation and amortization $ 122,031 $10,255 $ (10,483) $ 121,803
Adjustments:
Net loss on sale of assets - - - -
Gain on sale of WQEW-AM - - - -
--------- ------- --------------------
Adjusted operating profit(loss) $ 122,031 $10,255 $ (10,483) $ 121,803
========= ======= ====================
--------------------------------------
% Change
======================================
News
Media About Total
Group Group Corporate Company
--------- ------- --------- ---------
Operating profit(loss) -48.7% 16.4% -1.3% -49.8%
Add:
Depreciation and amortization 33.3% 16.0% 17.9% 31.2%
--------- ------- --------- ---------
Operating profit(loss) before
depreciation and amortization -27.8% 16.3% -4.0% -26.1%
Adjustments:
Net loss on sale of assets - - - -
Gain on sale of WQEW-AM - - - -
--------- ------- --------- ---------
Adjusted operating profit(loss) -4.4% 16.3% -4.0% -2.7%
========= ======= ========= =========
THE NEW YORK TIMES COMPANY
RECONCILIATION OF NON-GAAP INFORMATION (continued)
(Dollars in thousands)
Reconciliation of total operating costs excluding depreciation and
amortization and raw materials
--------------------------
Second Quarter
--------------------------
2007 2006 % Change
-------- -------- --------
Total operating costs $717,048 $733,393 -2.2%
Less:
Depreciation and amortization 46,645 35,560
-------- -------- --------
Sub-total 670,403 697,833 -3.9%
Less:
Raw materials 63,139 84,478
-------- -------- --------
Total $607,264 $613,355 -1.0%
======== ======== ========
Reconciliation of News Media Group operating costs excluding
depreciation and amortization
--------------------------
Second Quarter
--------------------------
News Media Group 2007 2006 % Change
---------------- -------- -------- --------
Operating costs $689,007 $709,257 -2.9%
Less:
Depreciation and amortization 41,439 31,098
-------- -------- --------
Adjusted operating costs $647,568 $678,159 -4.5%
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CONTACT: The New York Times Company
Catherine J. Mathis, 212-556-1981
mathis@nytimes.com
or
Paula Schwartz, 212-556-5224
schwap@nytimes.com
SOURCE: The New York Times Company
