NEW YORK, Jul 23, 2008 (BUSINESS WIRE) -- The New York Times Company announced today second-quarter earnings
per share (EPS) from continuing operations of $.15 compared with $.15
in the second quarter last year. In the second quarter of 2007,
special items (detailed below) reduced EPS by $.14 per share.
Excluding the effect of these items, EPS from continuing operations
was $.29 in the second quarter last year. There were no special items
in the second quarter of 2008.
Second-quarter 2008 operating profit decreased to $40.3 million
from $43.3 million in the second quarter of 2007. Excluding
depreciation and amortization and special items, operating profit
declined to $72.9 million in the second quarter of 2008 from $118.5
million in the second quarter last year.
"During the quarter, we saw the continued effect on our businesses
of the U.S. economic slowdown and secular forces playing out across
the media industry," said Janet L. Robinson, president and CEO. "Print
advertising continued to soften during the quarter, particularly in
the classified areas. At the same time, circulation revenues rose 2.5
percent to a second-quarter record of $224 million. Continuing our
digital transition, online revenues increased about 13 percent as a
result of strong display advertising, which benefited from the new
digital ad formats we introduced.
"Our operating costs decreased 2.1 percent as we continued our
drive to lower costs. Excluding depreciation and amortization and
buyouts, operating costs declined 3.6 percent. Given the economic
downturn, we are accelerating our cost reduction efforts. We are now
on track to exceed our previous plan to lower our 2007 cash cost base
by $130 million in 2008, and a total of $230 million by the end of
2009, excluding the effects of inflation, buyout costs and one-time
costs.
"To date in July, we have seen the effects of the deepening
economic slowdown, particularly in categories sensitive to the price
of oil - airlines, hotels and autos, and we expect that will continue
for some time. Despite the cyclical and secular issues facing the
industry and our company, we believe our strategy will provide value
to our shareholders over the longer term. In this challenging time, we
remain strongly focused on introducing new products in print and
online, building our research and development capability, driving down
costs and rebalancing our portfolio of businesses."
Comparisons
There were no special items in the second quarter of 2008.
In the second quarter of 2007, results from continuing operations
included 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) and
-- A pre-tax gain of $39.6 million from the sale of WQEW-AM
($21.2 million after tax or $.15 per share).
The net effect of these special items reduced second-quarter 2007
net income from continuing operations by $20.1 million or $.14 per
share.
In addition, the following items should be noted when comparing
the second quarter of 2008 versus the second quarter of 2007:
-- Depreciation and amortization declined 30.0 percent to $32.6
million from $46.6 million, mainly because there was no
accelerated depreciation expense in the second quarter of 2008
related to the Edison, N.J., printing facility, which was
closed in March of 2008. In the second quarter of 2007,
accelerated depreciation expense for assets at the Edison,
N.J., printing facility totaled $13.1 million.
-- Buyout costs were $27.6 million ($15.7 million after tax or
$.11 per share) compared with $5.0 million ($2.8 million after
tax or $.02 per share) in the second quarter last year.
-- In the second quarter of 2007, 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.
All comparisons are for the second quarter of 2008 to the second
quarter of 2007 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.
Second-Quarter Results
Revenues
Total revenues decreased 6.0 percent to $741.9 million from $788.9
million. Advertising revenues decreased 10.6 percent; circulation
revenues rose 2.5 percent; and other revenues increased 2.5 percent.
Revenues decreased mainly due to lower print advertising.
Operating Costs
Operating costs decreased 2.1 percent to $701.7 million from
$717.0 million. Excluding depreciation and amortization and buyouts,
operating costs were down 3.6 percent to $641.4 million from $665.4
million mainly as a result of lower compensation costs and newsprint
expense.
Compensation costs declined primarily due to lower incentive
compensation and a reduced workforce in the second quarter of 2008
compared with the same period last year.
Newsprint expense decreased 10.1 percent, with 16.8 percent from
lower consumption, offset in part by 6.7 percent in higher prices.
Second-Quarter Business Segment Results
News Media Group
Total News Media Group revenues decreased 6.7 percent to $713.3
million from $764.2 million.
Advertising revenues decreased 11.8 percent due to weakness in
print advertising across the News Media Group, partially offset by
higher online advertising revenues.
Circulation revenues rose 2.5 percent, mainly because of higher
prices at The New York Times offset in part by volume declines across
the News Media Group.
Other revenues increased 1.4 percent primarily because of revenues
from rental income and commercial printing, partially offset by the
elimination of subscription revenues for TimesSelect, an online
product offering that was discontinued in September 2007.
Total News Media Group operating costs decreased 2.9 percent to
$668.8 million from $689.0 million. Excluding depreciation and
amortization and buyouts, operating costs decreased 4.4 percent to
$614.1 million from $642.6 million, mainly as a result of the items
noted in the operating costs section above.
Operating profit for the News Media Group decreased 4.7 percent to
$44.5 million from $46.7 million. Excluding depreciation and
amortization and the special items identified above, operating profit
for the News Media Group decreased 38.3 percent to $72.0 million from
$116.7 million, because of lower print advertising revenues.
About Group
Total About Group revenues increased 15.8 percent to $28.6 million
from $24.7 million due to increased cost-per-click advertising.
Total About Group operating costs increased 20.4 percent to $19.5
million from $16.2 million. Excluding depreciation and amortization,
operating costs increased 26.2 percent to $16.1 million from $12.8
million, mainly because of investments in new revenue initiatives that
resulted in higher advertising, content and compensation costs. In
addition, operating costs reflect costs from ConsumerSearch, Inc.,
which was acquired in May 2007, for the entire quarter in 2008 and
only from the date of acquisition in 2007.
Operating profit grew 7.1 percent to $9.1 million from $8.5
million. Operating profit before depreciation and amortization rose
4.7 percent to $12.5 million from $11.9 million, due to higher
revenues.
Other Financial Data
Internet Revenues
Total Internet revenues grew 12.8 percent to $91.3 million from
$80.9 million, and Internet advertising revenues grew 18.3 percent to
$80.5 million from $68.0 million. Internet businesses include
NYTimes.com, About.com, Boston.com and other company Web sites. In
total, Internet businesses accounted for 12.3 percent of the Company's
revenues in the second quarter versus 10.3 percent in the 2007 second
quarter.
Joint Ventures
Net income from joint ventures was $10.2 million compared with
$4.7 million. Higher earnings resulted from stronger performance at
New England Sports Ventures, LLC, which owns the Boston Red Sox, and
at a paper mill in which the Company owns a minority interest.
Interest Expense-net
Interest expense-net increased to $12.1 million from $7.1 million,
as a result of less capitalized interest.
Income Taxes
The effective income tax rate decreased to 45.0 percent from 46.0
percent.
Cash and Total Debt
At the end of the quarter, cash and cash equivalents were
approximately $42 million and total debt was approximately $1.1
billion.
Capital Expenditures
In the second quarter, total capital expenditures were
approximately $36 million. Year to date, capital expenditures totaled
approximately $68 million.
Expectations
The following updated expectations are for 2008 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 cash cost base of a total of more than $230 million in
2008 and 2009, excluding the effects of inflation, buyout
costs and one-time costs. More than $130 million of these
savings are expected in 2008. (Previous guidance was
approximately $230 million in 2008 and 2009, excluding the
effects of inflation, buyout costs and one-time costs, and
about $130 million of these savings in 2008.)
-- Depreciation and amortization - $145 to $155 million, which
includes approximately $5 million of accelerated depreciation
expense in the first quarter of 2008 associated with the New
York area plant consolidation project. Depreciation for the
new headquarters building is expected to be $7 million per
quarter. (Previous guidance was $150 to $160 million and
approximately $8 million per quarter for depreciation for the
new headquarters building.)
-- Income from joint ventures - $20 to $25 million. (Previous
guidance was $16 to $20 million.)
-- Interest expense - $49 to $53 million. (Previous guidance was
$50 to $60 million.)
-- Income tax rate - 40% to 43%. There are many factors that can
result in significant volatility quarter to quarter.
-- Capital expenditures - $150 to $165 million, including
approximately $35 million for the consolidation of the
Company's New York area plants and about $22 million for its
new headquarters. (Previous guidance was approximately $42
million for the consolidation of the New York area plants.)
-- Buyouts - $40 to $50 million. (Previous guidance was $30 to
$35 million.)
Conference Call Information
The Company's second-quarter earnings conference call will be held
on Wednesday, July 23, at 11:00 a.m. E.T. To access the call, dial
(888) 213-3934 (in the U.S.) and (913) 981-5595 (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, and a transcript of the
call will also be posted. The archive and transcript will be available
for one quarter.
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 25. The access
code is 4062405.
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 our 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 30,
2007. 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 2007 revenues of $3.2 billion, includes The New York Times, the
International Herald Tribune, The Boston Globe, 16 other daily
newspapers, WQXR-FM and more than 50 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
----------------------------
%
2008 2007 Change
--------- --------- --------
Revenues
Advertising $454,377 $508,467 -10.6%
Circulation 224,168 218,664 2.5%
Other (a) 63,360 61,812 2.5%
--------- ---------
Total 741,905 788,943 -6.0%
Operating costs
Production costs 324,399 325,922 -0.5%
Selling, general and administrative
costs 344,609 344,481 0.0%
Depreciation and amortization 32,642 46,645 -30.0%
--------- ---------
Total 701,650 717,048 -2.1%
Write-down of assets (b) - - N/A
Net loss on sale of assets (c) - 68,156 N/A
Gain on sale of WQEW-AM - 39,578 N/A
--------- ---------
Operating profit 40,255 43,317 -7.1%
Net income from joint ventures 10,165 4,745 *
Interest expense - net 12,104 7,126 69.9%
--------- ---------
Income from continuing operations before
income taxes and minority interest 38,316 40,936 -6.4%
Income tax expense 17,251 18,851 -8.5%
Minority interest in net income of
subsidiaries (213) (24) *
--------- ---------
Income from continuing operations 20,852 22,061 -5.5%
Discontinued operations, Broadcast Media
Group: (d)
Income from discontinued operations, net
of income taxes - 1,977 N/A
Gain/(loss) on sale, net of income taxes 289 94,330 -99.7%
--------- ---------
Discontinued operations, net of income
taxes 289 96,307 -99.7%
--------- ---------
Net income $ 21,141 $118,368 -82.1%
========= =========
Average Number of Common Shares
Outstanding:
Basic 143,776 143,906 -0.1%
Diluted 144,037 144,114 -0.1%
Basic Earnings Per Share:
Income from continuing operations $ 0.15 $ 0.15 0.0%
Discontinued operations, net of income
taxes - 0.67 N/A
--------- ---------
Net income $ 0.15 $ 0.82 -81.7%
========= =========
Diluted Earnings Per Share:
Income from continuing operations $ 0.15 $ 0.15 0.0%
Discontinued operations, net of income
taxes - 0.67 N/A
--------- ---------
Net income $ 0.15 $ 0.82 -81.7%
========= =========
Dividends Per Share $ 0.230 $ 0.230 0.0%
----------------------------------------------------------------------
Six Months
------------------------------
%
2008 2007 Change
----------- ----------- ------
Revenues
Advertising $ 912,716 $1,013,382 -9.9%
Circulation 450,797 441,118 2.2%
Other (a) 126,247 120,463 4.8%
----------- -----------
Total 1,489,760 1,574,963 -5.4%
Operating costs
Production costs 664,963 670,947 -0.9%
Selling, general and administrative
costs 685,463 686,542 -0.2%
Depreciation and amortization 74,573 91,082 -18.1%
----------- -----------
Total 1,424,999 1,448,571 -1.6%
Write-down of assets (b) 18,291 - N/A
Net loss on sale of assets (c) - 68,156 N/A
Gain on sale of WQEW-AM - 39,578 N/A
----------- -----------
Operating profit 46,470 97,814 -52.5%
Net income from joint ventures 8,372 2,592 *
Interest expense - net 23,849 18,454 29.2%
----------- -----------
Income from continuing operations
before income taxes and minority
interest 30,993 81,952 -62.2%
Income tax expense 9,559 39,750 -76.0%
Minority interest in net income of
subsidiaries (317) (15) *
----------- -----------
Income from continuing operations 21,117 42,187 -49.9%
Discontinued operations, Broadcast
Media Group: (d)
Income from discontinued operations,
net of income taxes - 5,753 N/A
Gain/(loss) on sale, net of income
taxes (311) 94,330 *
----------- -----------
Discontinued operations, net of income
taxes (311) 100,083 *
----------- -----------
Net income $ 20,806 $ 142,270 -85.4%
=========== ===========
Average Number of Common Shares
Outstanding:
Basic 143,768 143,901 -0.1%
Diluted 144,051 144,114 0.0%
Basic Earnings Per Share:
Income from continuing operations $ 0.15 $ 0.29 -48.3%
Discontinued operations, net of
income taxes - 0.70 N/A
----------- -----------
Net income $ 0.15 $ 0.99 -84.8%
=========== ===========
Diluted Earnings Per Share:
Income from continuing operations $ 0.15 $ 0.29 -48.3%
Discontinued operations, net of
income taxes - 0.70 N/A
----------- -----------
Net income $ 0.15 $ 0.99 -84.8%
=========== ===========
Dividends Per Share $ 0.460 $ 0.405 13.6%
* 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 Six Months
------------------------- ------------------------------
% %
2008 2007 Change 2008 2007 Change
-------- --------- ------ ----------- ----------- ------
Revenues
-------------
News Media
Group $713,293 $764,238 -6.7% $1,432,978 $1,527,715 -6.2%
About Group 28,612 24,705 15.8% 56,782 47,248 20.2%
--------- --------- ----------- -----------
Total $741,905 $788,943 -6.0% $1,489,760 $1,574,963 -5.4%
========= ========= =========== ===========
Operating
Profit(Loss)
-------------
News Media
Group $ 44,472 $ 46,653 -4.7% $ 57,757 $ 106,282 -45.7%
About Group 9,116 8,511 7.1% 18,637 16,841 10.7%
Corporate (13,333) (11,847) 12.5% (29,924) (25,309) 18.2%
--------- --------- ----------- -----------
Total $ 40,255 $ 43,317 -7.1% $ 46,470 $ 97,814 -52.5%
========= ========= =========== ===========
Operating Profit(Loss) Before Depreciation & Amortization and Special
Items(e)
----------------------------------------------------------------------
News Media
Group $ 71,975 $116,670 -38.3% $ 140,471 $ 216,022 -35.0%
About Group 12,485 11,929 4.7% 25,039 23,392 7.0%
Corporate (11,563) (10,059) 15.0% (26,176) (21,940) 19.3%
--------- --------- ----------- -----------
Total $ 72,897 $118,540 -38.5% $ 139,334 $ 217,474 -35.9%
========= ========= =========== ===========
--------------------------------------- ------------------------------
See footnotes page for additional information.
THE NEW YORK TIMES COMPANY
NEWS MEDIA GROUP REVENUES BY OPERATING SEGMENT
(Dollars in thousands)
----------------------------------------------------------------------
2008
--------------------------------------
% Change % Change
Second vs. vs.
Quarter 2007 Six Months 2007
--------- -------- ---------- --------
The New York Times Media Group
Advertising $ 270,906 -9.5% $ 547,606 -8.2%
Circulation 165,088 4.6% 330,873 3.9%
Other 43,506 -1.4% 86,787 0.7%
--------- ----------
Total $ 479,500 -4.4% $ 965,266 -3.6%
--------- ----------
New England Media Group
Advertising $ 85,153 -15.1% $ 166,531 -15.7%
Circulation 37,588 -4.3% 75,263 -3.2%
Other 12,752 19.7% 25,346 26.4%
--------- ----------
Total $ 135,493 -9.8% $ 267,140 -9.6%
--------- ----------
Regional Media Group
Advertising $ 71,584 -16.0% $ 145,665 -16.5%
Circulation 21,492 0.1% 44,661 -0.3%
Other 5,224 -10.6% 10,246 -13.2%
--------- ----------
Total $ 98,300 -12.6% $ 200,572 -13.2%
--------- ----------
Total News Media Group
Advertising $ 427,643 -11.8% $ 859,802 -11.2%
Circulation 224,168 2.5% 450,797 2.2%
Other (a) 61,482 1.4% 122,379 3.6%
--------- ----------
Total $ 713,293 -6.7% $1,432,978 -6.2%
========= ==========
----------------------------------------------------------------------
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, commercial
printing, digital archives, direct mail advertising services and
rental income.
(b) Represents a non-cash charge for the write-down of assets for a
systems project. To decrease capital spending, the Company
reduced the scope of a major advertising and circulation project,
which resulted in the write-down of previously capitalized costs
in the first quarter of 2008.
(c) In 2006 the Company announced plans to consolidate the printing
operations of a facility it leased 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 of 2007.
(d) 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 first six
months of 2008 and 2007 are below. In 2008, the gain/(loss) on
sale included post-closing adjustments.
--------------------- ------------------
Second Quarter Six Months
--------------------- ------------------
2008 2007 2008 2007
---------- ---------- -------- ---------
Revenues $ - $ 13,798 $ - $ 46,702
Pre-tax income $ - $ 3,347 $ - $ 9,848
Income tax expense - (1,370) - (4,095)
---------- ---------- -------- ---------
Income from discontinued
operations, net of
income taxes - Broadcast
Media Group - 1,977 - 5,753
Gain/(loss) on sale of
Broadcast Media Group,
net of income taxes 289 94,330 (311) 94,330
---------- ---------- -------- ---------
Net income/(loss) $ 289 $ 96,307 $ (311) $100,083
========== ========== ======== =========
(e) See "Reconciliation of Non-GAAP Information" for reconciliations
of operating profit(loss) to operating profit(loss) before
depreciation & amortization and excluding special items.
THE NEW YORK TIMES COMPANY
RECONCILIATION OF NON-GAAP INFORMATION
(Dollars in thousands, except per share data)
In this release, the Company has included non-GAAP financial
information with respect to 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, buyouts and raw
materials. The Company has included these non-GAAP financial measures
because management reviews them on a regular basis and uses them to
evaluate and manage the performance of the operations. Management
believes that, for the reasons outlined below, these non-GAAP
financial measures provide useful information to investors as a
supplement to reported 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 or superior measures
of GAAP results.
EPS from continuing operations excluding 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 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, buyouts and raw materials.
Total operating costs excluding depreciation and amortization,
buyouts and raw materials provide investors with helpful supplemental
information on the Company's underlying operating costs that is used
by management in its financial and operational decision-making.
Reconciliations of these non-GAAP financial measures from,
respectively, EPS from continuing operations, operating profit(loss)
and operating costs, the most directly comparable GAAP items, are set
out in the tables below.
Reconciliation of earnings per share from continuing operations
excluding special items
-----------------------------
Second Quarter
-----------------------------
2008 2007 % Change
--------- -------- ----------
Earnings per share from
continuing operations $ 0.15 $ 0.15 0.0%
Add:
Net loss on sale of assets - 0.29
Gain on sale of WQEW-AM - (0.15)
--------- -------- ----------
Earnings per share from
continuing operations
excluding special items $ 0.15 $ 0.29 -48.3%
========= ======== ==========
Reconciliation of operating profit(loss) before depreciation &
amortization and special items
---------------------------------------
Second Quarter 2008
---------------------------------------
News
Media About Total
Group Group Corporate Company
--------- -------- ---------- ---------
Operating profit(loss) $ 44,472 $ 9,116 $ (13,333) $ 40,255
Add:
Depreciation & amortization 27,503 3,369 1,770 32,642
--------- -------- ---------- ---------
Operating profit(loss) before
depreciation & amortization $ 71,975 $12,485 $ (11,563) $ 72,897
========= ======== ========== =========
---------------------------------------
Second Quarter 2007
---------------------------------------
News
Media About Total
Group Group Corporate Company
--------- -------- ---------- --------
Operating profit(loss) $ 46,653 $ 8,511 $ (11,847) $ 43,317
Add:
Depreciation & amortization 41,439 3,418 1,788 46,645
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 $116,670 $11,929 $ (10,059) $118,540
========= ======== ========== =========
---------------------------------------
% Change
=======================================
News
Media About Total
Group Group Corporate Company
--------- -------- --------- --------
Operating profit(loss) -4.7% 7.1% 12.5% -7.1%
Add:
Depreciation & amortization -33.6% -1.4% -1.0% -30.0%
Net loss on sale of assets N/A N/A N/A N/A
Gain on sale of WQEW-AM N/A N/A N/A N/A
--------- -------- ---------- ---------
Operating profit(loss) before
depreciation & amortization
and special items -38.3% 4.7% 15.0% -38.5%
========= ======== ========== =========
THE NEW YORK TIMES COMPANY
RECONCILIATION OF NON-GAAP INFORMATION (continued)
(Dollars in thousands)
Reconciliation of operating profit(loss) before depreciation &
amortization and special items (continued)
--------------------------------------
Six Months 2008
--------------------------------------
News
Media About Total
Group Group Corporate Company
--------- -------- --------- ---------
Operating profit(loss) $ 57,757 $18,637 $(29,924) $ 46,470
Add:
Depreciation & amortization 64,423 6,402 3,748 74,573
Write-down of assets 18,291 - - 18,291
--------- -------- --------- ---------
Operating profit(loss) before
depreciation & amortization
and special items $140,471 $25,039 $(26,176) $139,334
========= ======== ========= =========
--------------------------------------
Six Months 2007
--------------------------------------
News
Media About Total
Group Group Corporate Company
--------- -------- --------- ---------
Operating profit(loss) $106,282 $16,841 $(25,309) $ 97,814
Add:
Depreciation & amortization 81,162 6,551 3,369 91,082
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 $216,022 $23,392 $(21,940) $217,474
========= ======== ========= =========
--------------------------------------
% Change
=====================================-
News
Media About Total
Group Group Corporate Company
--------- -------- --------- ---------
Operating profit(loss) -45.7% 10.7% 18.2% -52.5%
Add:
Depreciation & amortization -20.6% -2.3% 11.2% -18.1%
Write-down of assets N/A N/A N/A N/A
Net loss on sale of assets N/A N/A N/A N/A
Gain on sale of WQEW-AM N/A N/A N/A N/A
--------- -------- --------- ---------
Operating profit(loss) before
depreciation & amortization
and special items -35.0% 7.0% 19.3% -35.9%
========= ======== ========= =========
THE NEW YORK TIMES COMPANY
RECONCILIATION OF NON-GAAP INFORMATION (continued)
(Dollars in thousands)
Reconciliation of Total Company operating costs before depreciation &
amortization, buyouts and raw materials
---------------------------
Second Quarter
---------------------------
2008 2007 % Change
-------- -------- ---------
Total Company
-------------------------------
Operating costs $701,650 $717,048 -2.1%
Less:
Depreciation & amortization 32,642 46,645
Buyouts 27,582 4,986
-------- -------- ---------
Operating costs before
depreciation & amortization
and buyouts 641,426 665,417 -3.6%
Less:
Raw materials 60,285 63,139
-------- -------- ---------
Operating costs before
depreciation & amortization,
buyouts and raw materials $581,141 $602,278 -3.5%
======== ======== =========
Reconciliation of News Media Group operating costs before depreciation
& amortization and buyouts
---------------------------
Second Quarter
---------------------------
2008 2007 % Change
-------- -------- ---------
News Media Group
-------------------------------
Operating costs $668,821 $689,007 -2.9%
Less:
Depreciation & amortization 27,503 41,439
Buyouts 27,267 4,986
-------- -------- ---------
Operating costs before
depreciation & amortization
and buyouts $614,051 $642,582 -4.4%
======== ======== =========
Reconciliation of About Group operating costs before depreciation &
amortization
---------------------------
Second Quarter
---------------------------
2008 2007 % Change
-------- -------- ---------
About Group
-------------------------------
Operating costs $ 19,496 $ 16,194 20.4%
Less:
Depreciation & amortization 3,369 3,418
-------- -------- ---------
Operating costs before
depreciation & amortization $ 16,127 $ 12,776 26.2%
======== ======== =========
SOURCE: The New York Times Company
The New York Times Company
Catherine J. Mathis, 212-556-1981
mathis@nytimes.com
Paula Schwartz, 212-556-5224
paula.schwartz@nytimes.com
