NEW YORK--(BUSINESS WIRE)--Oct. 23, 2007--The New York Times
Company announced today third-quarter earnings per share (EPS) from
continuing operations of $.10, compared with $.06 in the third quarter
last year. Excluding the special items noted below, EPS from
continuing operations was $.15 compared with $.09 in the third quarter
last year. Operating profit increased 57.1 percent to $28.1 million
from $17.9 million in the third quarter of 2006 while operating profit
excluding depreciation and amortization increased 46.4 percent to
$79.9 million from $54.6 million in the third quarter of 2006.
Included in the results from continuing operations are the
following special items:
-- Accelerated depreciation expense of $11.7 million ($6.7
million after tax, or $.05 per share) in the third quarter of
2007 for assets at the Company's Edison, N.J., printing plant,
which is in the process of being closed.
-- A loss of $7.8 million ($4.3 million after tax, or $.03 per
share) in the third quarter of 2006 from the sale of the
Company's 50 percent investment in the Discovery Times Channel
(DTC), a digital cable channel.
"Our very strong earnings growth was driven by increased national
advertising, higher circulation revenues and our continued focus on
cost controls," said Janet L. Robinson, president and CEO. "Revenues
benefited from new products both in print and online. National
advertising grew significantly, up 10.9 percent, as a result of
improvement in categories such as entertainment, international fashion
and corporate. Circulation revenues rose 3.9 percent. Our digital
properties again posted very healthy revenue growth, up 26.5 percent
in the quarter.
"We continued to concentrate on controlling costs. This past
quarter our operating costs were on par with the same quarter last
year, and, excluding depreciation and amortization, decreased 1.5
percent, as we maintained our expense discipline. We believe that
reducing our cost structure in innovative ways, while making prudent
investments across platforms, is an important part of our ongoing
efforts to successfully manage our business during a challenging time
in the media marketplace.
"While September was a strong month, with ad revenues up 5.5
percent, visibility on the fourth quarter remains limited. To date in
October, advertising is not as strong as it was in September, although
it is performing better than in the first half of the year. We
continue to stay focused on our strategy of introducing new products,
building our innovation capability, rebalancing our portfolio of
businesses and stringently managing costs."
Third-Quarter Results from Continuing Operations
All comparisons are for the third quarter of 2007 to the third
quarter of 2006 and exclude the results of the Broadcast Media Group,
which was sold in May 2007.
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 increased 2.0 percent to $754.4 million from $739.6
million. Advertising revenues decreased 0.1 percent; circulation
revenues increased 3.9 percent; and other revenues rose 11.5 percent.
Operating Costs
Operating costs increased 0.6 percent to $726.3 million from
$721.7 million. Depreciation and amortization increased 41.2 percent
to $51.8 million from $36.7 million primarily due to the accelerated
depreciation for assets at the Edison printing plant and depreciation
on the Company's new headquarters. Excluding depreciation and
amortization, operating costs decreased 1.5 percent to $674.5 million
from $685.0 million, mainly as a result of lower newsprint expense
partially offset by higher professional fees. Newsprint expense
decreased 22.2 percent, with 13.4 percent of the decrease resulting
from lower newsprint prices and 8.8 percent resulting from lower
consumption. Professional fees increased primarily due to costs
associated with the Company's new headquarters and expense reduction
initiatives.
Staff reduction costs were $4.9 million ($2.8 million after tax,
or $.02 per share) compared with $7.4 million ($4.3 million after tax,
or $.03 per share) in the third quarter last year.
Operating Profit
Operating profit increased 57.1 percent to $28.1 million from
$17.9 million. Excluding depreciation and amortization, operating
profit increased 46.4 percent to $79.9 million from $54.6 million.
Third-Quarter Business Segment Results
News Media Group
Total News Media Group revenues increased 1.2 percent to $729.6
million from $721.3 million. Advertising revenues decreased 1.4
percent due to weakness in advertising at the New England and Regional
Media Groups, partially offset by increased advertising at The New
York Times Media Group. In particular, classified advertising revenues
decreased across the News Media Group, principally due to softness in
real estate advertising.
Circulation revenues increased 3.9 percent, mainly because of
higher prices for The New York Times partially offset by volume
declines. 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. In the third quarter of 2007, The
Times raised the newsstand price of the Sunday Times in the greater
New York metropolitan area and the daily newsstand price nationwide,
and increased home-delivery prices.
Other revenues increased 10.8 percent to $64.5 million from $58.2
million primarily because of rental income from the Company's lease of
five floors in its new headquarters, increased wholesale delivery
operation revenues, and revenues from Baseline StudioSystems, which
was acquired in August 2006.
Total News Media Group operating costs decreased 0.2 percent to
$696.5 million from $698.1 million. Excluding depreciation and
amortization, operating costs decreased 2.3 percent to $650.4 million
from $665.9 million, mainly as a result of lower newsprint expense.
Operating profit for the News Media Group increased 42.9 percent
to $33.1 million from $23.2 million. Excluding depreciation and
amortization, operating profit for the News Media Group increased 43.0
percent to $79.2 million from $55.4 million.
About Group
Total About Group revenues increased 34.9 percent to $24.7 million
from $18.3 million due to increased display and cost-per-click
advertising as well as revenues associated with the acquisition of
ConsumerSearch.com, a leading online publisher that analyzes product
reviews, in May 2007.
Total About Group operating costs increased 54.8 percent to $18.4
million from $11.9 million because of higher compensation costs;
investments in new revenue initiatives; costs related to the
acquisition of ConsumerSearch.com, including increased content costs;
and higher amortization expense.
Operating profit decreased 2.0 percent to $6.3 million from $6.4
million. The operating profit margin declined mainly because of
investments in new business initiatives that are expected to
contribute to future revenues, one-time restructuring costs for the
About Group's sales organization, and higher compensation and content
costs. Operating profit before depreciation and amortization rose 9.3
percent to $10.2 million from $9.4 million, due to higher revenues. In
the fourth quarter, both the operating profit and margin are expected
to increase above those of the third quarter, mainly because of higher
seasonal revenues and the absence of the one-time restructuring costs.
Corporate
Corporate costs were $11.3 million compared with $11.7 million in
the prior year third quarter.
Other Financial Data
Internet Revenues
In the third quarter, the Company's Internet revenues increased
26.5 percent to $79.7 million from $63.0 million in the third 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 10.6 percent of the Company's revenues in the
third quarter versus 8.5 percent in the 2006 third quarter.
Joint Ventures
Net income from joint ventures was $5.4 million compared with $7.3
million. Lower earnings resulted from weaker performance at all of the
properties in which the Company has equity interests. Included in the
third quarter last year is the loss of $7.8 million on the sale of the
Company's interest in DTC in October 2006.
Interest Expense-net
Interest expense-net decreased to $10.5 million from $13.3 million
primarily due to lower levels of short-term debt partially offset by
lower capitalized interest.
Income Taxes
The effective income tax rate increased to 39.0 percent in the
third quarter from 32.8 percent in the same period last year when a
favorable tax adjustment lowered the tax rate.
Cash and Total Debt
At the end of the quarter, cash and cash equivalents were
approximately $53 million and total debt was approximately $1 billion.
Capital Expenditures
In the third quarter, total capital expenditures were
approximately $71 million, which included approximately $18 million
for the Company's new headquarters.
Expectations
The following expectations are for the fourth quarter of 2007 with
the exception of cost savings and productivity gains, which are for
2008 and 2009.
-- Cost savings and productivity gains - 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.
-- Staff reduction costs - $14 to $16 million. This range can
vary significantly based on seniority and the timing of
implementation.
-- Depreciation and amortization - $48 to $50 million, which
includes $6 to $7 million of accelerated depreciation expense
associated with the plant consolidation project, mainly
presses.
-- Income from joint ventures - Loss of $3 to $5 million.
-- Interest expense - $11 to $13 million.
-- Capital expenditures - $50 to $80 million.
-- Income tax rate - Approximately 41 percent.
The fourth quarter of 2006 included an extra week that resulted in
$50.8 million in revenues, $36.8 million in costs and $.06 of earnings
per share.
Conference Call Information
The Company's third-quarter earnings conference call will be held
on Tuesday, October 23, at 10:30 a.m. E.T. To access the call, dial
877-704-5386 (in the U.S.) and 913-312-1302 (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 Wednesday, October 24. The
access code is 5871164. 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.
This press release can be downloaded from www.nytco.com
Exhibits: Condensed Consolidated Statements of Income
Segment Information
News Media Group Revenues by Operating Segment
Footnotes
Reconciliation of Non-GAAP Information
THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
----------------------------------------------------------------------
Third Quarter
------------------------------
2007 2006 % Change
---------- ---------- --------
Revenues
Advertising $ 465,043 $ 465,476 -0.1%
Circulation 223,420 215,007 3.9%
Other (a) 65,896 59,103 11.5%
---------- ----------
Total 754,359 739,586 2.0%
Operating costs
Production costs 331,962 344,098 -3.5%
Selling, general and administrative
costs 342,503 340,927 0.5%
Depreciation and amortization 51,789 36,676 41.2%
---------- ----------
Total 726,254 721,701 0.6%
Net loss on sale of assets (b) - - N/A
Gain on sale of WQEW-AM - - N/A
---------- ----------
Operating profit 28,105 17,885 57.1%
Net income from joint ventures 5,412 7,348 -26.3%
Interest expense - net 10,470 13,267 -21.1%
---------- ----------
Income from continuing operations
before income taxes and minority
interest 23,047 11,966 92.6%
Income tax expense 8,991 3,926 *
Minority interest in net loss of
subsidiaries 54 267 -79.8%
---------- ----------
Income from continuing operations 14,110 8,307 69.9%
Income from discontinued operations,
net of income taxes- Broadcast Media
Group (c) - 4,290 -100.0%
Gain/(loss) on sale of Broadcast Media
Group, net of income taxes (c) (671) - N/A
---------- ----------
Discontinued operations, net of income
taxes (671) 4,290 *
---------- ----------
Net income $ 13,439 $ 12,597 6.7%
========== ==========
Average Number of Common Shares
Outstanding:
Basic 143,902 144,454 -0.4%
Diluted 144,112 144,568 -0.3%
Basic Earnings Per Share:
Income from continuing operations $ 0.10 $ 0.06 66.7%
Discontinued operations, net of
income taxes (0.01) 0.03 *
---------- ----------
Net Income $ 0.09 $ 0.09 -
========== ==========
Diluted Earnings Per Share:
Income from continuing operations $ 0.10 $ 0.06 66.7%
Discontinued operations, net of
income taxes (0.01) 0.03 *
---------- ----------
Net Income $ 0.09 $ 0.09 -
========== ==========
Dividends Per Share 0.230 0.175 31.4%
Nine Months
------------------------------
2007 2006 % Change
----------- ---------- --------
Revenues
Advertising $1,478,425 $1,527,604 -3.2%
Circulation 664,538 654,993 1.5%
Other (a) 186,359 175,822 6.0%
---------- ----------
Total 2,329,322 2,358,419 -1.2%
Operating costs
Production costs 1,002,909 1,055,173 -5.0%
Selling, general and administrative
costs 1,029,045 1,030,941 -0.2%
Depreciation and amortization 142,871 107,712 32.6%
---------- ----------
Total 2,174,825 2,193,826 -0.9%
Net loss on sale of assets (b) 68,156 - N/A
Gain on sale of WQEW-AM 39,578 - N/A
---------- ----------
Operating profit 125,919 164,593 -23.5%
Net income from joint ventures 8,004 18,085 -55.7%
Interest expense - net 28,924 39,025 -25.9%
---------- ----------
Income from continuing operations
before income taxes and minority
interest 104,999 143,653 -26.9%
Income tax expense 48,741 51,557 -5.5%
Minority interest in net loss of
subsidiaries 39 604 -93.5%
---------- ----------
Income from continuing operations 56,297 92,700 -39.3%
Income from discontinued operations,
net of income taxes- Broadcast Media
Group (c) 5,753 11,890 -51.6%
Gain/(loss) on sale of Broadcast Media
Group, net of income taxes (c) 93,659 - N/A
---------- ----------
Discontinued operations, net of income
taxes 99,412 11,890 *
---------- ----------
Net income $ 155,709 $ 104,590 48.9%
========== ==========
Average Number of Common Shares
Outstanding:
Basic 143,901 144,803 -0.6%
Diluted 144,057 144,982 -0.6%
Basic Earnings Per Share:
Income from continuing operations $ 0.39 $ 0.64 -39.1%
Discontinued operations, net of
income taxes 0.69 0.08 *
---------- ----------
Net Income $ 1.08 $ 0.72 50.0%
========== ==========
Diluted Earnings Per Share:
Income from continuing operations $ 0.39 $ 0.64 -39.1%
Discontinued operations, net of
income taxes 0.69 0.08 *
---------- ----------
Net Income $ 1.08 $ 0.72 50.0%
========== ==========
Dividends Per Share 0.635 0.515 23.3%
* 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)
----------------------------------------------------------------------
Third Quarter Nine Months
---------------------------- ------------------------------
2007 2006 % Change 2007 2006 % Change
--------- --------- -------- ---------- ---------- --------
Revenues (c)
--------------------
News Media
Group $ 729,635 $ 721,260 1.2% $2,257,350 $2,302,441 -2.0%
About
Group 24,724 18,326 34.9% 71,972 55,978 28.6%
--------- --------- ---------- ----------
Total $ 754,359 $ 739,586 2.0% $2,329,322 $2,358,419 -1.2%
========= ========= ========== ==========
Operating Profit (Loss) (c)
------------------------------
News Media
Group $ 33,136 $ 23,183 42.9% $ 139,418 $ 178,371 -21.8%
About
Group 6,291 6,418 -2.0% 23,132 20,670 11.9%
Corporate (11,322) (11,716) -3.4% (36,631) (34,448) 6.3%
--------- --------- ---------- ----------
Total $ 28,105 $ 17,885 57.1% $ 125,919 $ 164,593 -23.5%
========= ========= ========== ==========
Operating Profit (Loss) Before Depreciation & Amortization and Special
Items(d)
----------------------------------------------------------------------
News Media
Group $ 79,223 $ 55,396 43.0% $ 295,245 $ 272,631 8.3%
About
Group 10,247 9,377 9.3% 33,639 29,534 13.9%
Corporate (9,576) (10,212) -6.2% (31,516) (29,860) 5.5%
--------- --------- ---------- ----------
Total $ 79,894 $ 54,561 46.4% $ 297,368 $ 272,305 9.2%
========= ========= ========== ==========
----------------------------------------------------------------------
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
NEWS MEDIA GROUP REVENUES BY OPERATING SEGMENT
(Dollars in thousands)
----------------------------------------------------------------------
2007
-----------------------------------------------
% %
Change vs. Change vs.
Third Quarter 2006 Nine Months 2006
------------- ---------- ----------- ----------
The New York Times
Media Group
Advertising $ 271,234 3.7% $ 867,774 -2.0%
Circulation 162,896 6.0% 481,446 2.9%
Other 47,388 14.1% 133,607 8.3%
------------- -----------
Total $ 481,518 5.4% $ 1,482,827 0.4%
------------- -----------
New England Media
Group
Advertising $ 91,838 -5.7% $ 289,414 -5.9%
Circulation 39,755 -1.8% 117,537 -2.9%
Other 11,498 3.2% 31,548 -1.9%
------------- -----------
Total $ 143,091 -4.0% $ 438,499 -4.8%
------------- -----------
Regional Media Group
Advertising $ 78,609 -11.6% $ 253,020 -10.1%
Circulation 20,769 -0.1% 65,555 -0.8%
Other 5,648 1.3% 17,449 -0.5%
------------- -----------
Total $ 105,026 -8.9% $ 336,024 -7.9%
------------- -----------
Total News Media
Group
Advertising $ 441,681 -1.4% $ 1,410,208 -4.4%
Circulation 223,420 3.9% 664,538 1.5%
Other (a) 64,534 10.8% 182,604 5.5%
------------- -----------
Total $ 729,635 1.2% $ 2,257,350 -2.0%
============= ===========
----------------------------------------------------------------------
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, rental income 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 then-existing 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 third quarter and nine months of
2007 and 2006 are below. In the third quarter of 2007, the gain
on the sale included post closing adjustments.
----------------- ------------------
Third Quarter Nine Months
----------------- ------------------
2007 2006 2007 2006
-------- -------- -------- ---------
Revenues $ - $36,476 $46,702 $107,542
Pre-tax income $ - $ 7,271 $ 9,848 $ 20,153
Income taxes - (2,981) (4,095) (8,263)
-------- -------- -------- ---------
Income from discontinued
operations, net of income taxes-
Broadcast Media Group - 4,290 5,753 11,890
Gain/(loss) on sale of Broadcast
Media Group, net of income taxes
of $0.7 million in the third
quarter of 2007 and $96.2
million for the nine months
ending 2007 (671) - 93,659 -
-------- -------- -------- ---------
Net (loss)/income $ (671) $ 4,290 $99,412 $ 11,890
======== ======== ======== =========
(d) See "Reconciliation of Non-GAAP Information" for reconciliations
of operating profit(loss) to operating profit(loss) before
depreciation and amortization and excluding special items. There
were no such special items in the third quarters of 2007 and
2006.
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
(however, there were no such special items in the third quarters of
2007 or 2006), 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, if any, 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
-----------------------------
Third Quarter
-----------------------------
2007 2006 % Change
---------- ------- ---------
Diluted EPS from continuing
operations $ 0.10 $ 0.06 66.7%
Adjustments:
Accelerated depreciation 0.05 -
Sale of Discovery Times
Channel interest - 0.03
---------- ------- ---------
Adjusted diluted EPS $ 0.15 $ 0.09 66.7%
========== ======= =========
Reconciliation of operating profit(loss) before depreciation and
amortization
---------------------------------------
Third Quarter 2007
---------------------------------------
News Media About Total
Group Group Corporate Company
---------- ------- --------- ---------
Operating profit(loss) $ 33,136 $ 6,291 $ (11,322) $ 28,105
Add:
Depreciation and
amortization 46,087 3,956 1,746 51,789
---------- ------- --------- ---------
Operating profit(loss) before
depreciation & amortization $ 79,223 $10,247 $ (9,576) $ 79,894
========== ======= ========== =========
---------------------------------------
Third Quarter 2006
---------------------------------------
News Media About Total
Group Group Corporate Company
---------- ------- --------- ---------
Operating profit(loss) $ 23,183 $ 6,418 $ (11,716) $ 17,885
Add:
Depreciation and
amortization 32,213 2,959 1,504 36,676
---------- ------- ---------- ---------
Operating profit(loss) before
depreciation & amortization $ 55,396 $ 9,377 $ (10,212) $ 54,561
========== ======= ====================
---------------------------------------
% Change
---------------------------------------
News Media About Total
Group Group Corporate Company
---------- ------- --------- ---------
Operating profit(loss) 42.9% -2.0% -3.4% 57.1%
Add:
Depreciation and
amortization 43.1% 33.7% 16.1% 41.2%
---------- ------- --------- ---------
Operating profit(loss) before
depreciation & amortization 43.0% 9.3% -6.2% 46.4%
========== ======= ========= =========
Reconciliation of operating profit(loss) before depreciation and
amortization and special items
---------------------------------------
Nine Months 2007
---------------------------------------
News Media About Total
Group Group Corporate Company
---------- ------- --------- ---------
Operating profit(loss) $ 139,418 $23,132 $ (36,631) $ 125,919
Add:
Depreciation and
amortization 127,249 10,507 5,115 142,871
Net loss on sale of assets 68,156 - - 68,156
Gain on sale of WQEW-AM (39,578) - - (39,578)
---------- ------- --------- ---------
Operating profit(loss) before
depreciation & amortization
and special items $ 295,245 $33,639 $ (31,516) $ 297,368
========== ======= ========== =========
THE NEW YORK TIMES COMPANY
RECONCILIATION OF NON-GAAP INFORMATION (continued)
(Dollars in thousands)
--------------------------------------
Nine Months 2006
--------------------------------------
News Media About Total
Group Group Corporate Company
---------- -------- --------- --------
Operating profit(loss) $ 178,371 $ 20,670 $(34,448) $164,593
Add:
Depreciation and amortization 94,260 8,864 4,588 107,712
---------- -------- --------- --------
Operating profit(loss) before
depreciation & amortization
and special items $ 272,631 $ 29,534 $(29,860) $272,305
========== ======== ========= ========
--------------------------------------
% Change
--------------------------------------
News Media About Total
Group Group Corporate Company
---------- -------- --------- --------
Operating profit(loss) -21.8% 11.9% 6.3% -23.5%
Add:
Depreciation and amortization 35.0% 18.5% 11.5% 32.6%
Net loss on sale of assets - - - -
Gain on sale of WQEW-AM - - - -
---------- -------- --------- --------
Operating profit(loss) before
depreciation & amortization
and special items 8.3% 13.9% 5.5% 9.2%
========== ======== ========= ========
Reconciliation of total operating costs excluding depreciation and
amortization and raw materials
-----------------------------
Third Quarter
-----------------------------
2007 2006 % Change
---------- -------- ---------
Total operating costs $ 726,254 $721,701 0.6%
Less:
Depreciation and
amortization 51,789 36,676
---------- -------- ---------
Sub-total 674,465 685,025 -1.5%
Less:
Raw materials 58,643 75,178
---------- -------- ---------
Adjusted operating costs $ 615,822 $609,847 1.0%
========== ======== =========
Reconciliation of News Media Group operating costs excluding
depreciation and amortization
-----------------------------
Third Quarter
-----------------------------
News Media Group 2007 2006 % Change
------------------------------- ---------- -------- ---------
Operating costs $ 696,499 $698,077 -0.2%
Less:
Depreciation and
amortization 46,087 32,213
---------- -------- ---------
Adjusted operating costs $ 650,412 $665,864 -2.3%
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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
paula.schwartz@nytimes.com
SOURCE: The New York Times Company
