NEW YORK, Dec 09, 2008 (BUSINESS WIRE) -- The New York Times Company today will discuss its business trends and
strategy and provide the Company's outlook for 2009 during the UBS 36th
Annual Global Media & Communications Conference.
"Over the past several years, we have done a great deal to address the
changes occurring in our business," said Janet L. Robinson, president
and CEO. "This has included the creation of new products, major cost
restructuring, divestitures of traditional businesses, acquisitions of
digital properties, and significant development of our online properties.
"Like others in our industry and, in many businesses across America, we
have seen the softness in the economy become more pervasive in the last
several months. In November, the rate of change in advertising revenue
declined from what we saw in October. The entertainment, real estate and
automotive advertising categories were especially soft.
"There is no doubt that 2009 will be among the most challenging years we
have faced and more steps will be needed. We believe that through our
revenue initiatives, expense cuts and the steps we are taking to improve
our financial flexibility, the Times Company is well positioned to
weather the challenges next year is expected to bring."
"We are evaluating our liquidity requirements and are in discussions
with our lenders with regard to debt maturing in 2009 and 2010," said
James Follo, senior vice president and CFO. "We have no intention or
need of fully replacing the $400 million credit facility expiring next
year because our total borrowing under both agreements is projected to
be significantly less than $800 million, and currently is approximately
"We have begun a process to secure financing for up to $225 million in
the form of a sale-leaseback for a portion of our headquarters. The
proceeds will be used to repay existing long-term debt. The building
provides a unique opportunity for us to borrow at attractive rates in
today's market. We are also looking at various other financing
alternatives, including revolvers, public offerings or private
placements. While the credit markets remain challenging, we expect to
secure the financing necessary to meet our maturities when they come due.
"We also continue to evaluate our assets. Although the feasibility of
asset sales at this time is uncertain given the current market and
credit environment, it's incumbent upon us to make sure that we
carefully evaluate our properties to determine if they remain a
strategic fit and, given the outlook for the business and their
financial performance, make sense to continue to be a part of the
The following are updated expectations on key items for 2008 unless
Depreciation and amortization - $140 to $145 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. For 2009, the Company expects depreciation and
amortization to be $135 to $145 million.
Income from joint ventures - $15 to $20 million.
Interest expense - $49 to $53 million.
Capital expenditures - approximately $140 million, including
approximately $35 million for the consolidation of the Company's New
York area plants and about $22 million for its new headquarters. For
2009, the Company expects capital expenditures to be approximately $80
million, including approximately $33 million for a plant consolidation
and computer system project.
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 and
Quarterly Report on Form 10-Q for the quarter ended September 28, 2008.
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.
This press release can be downloaded from www.nytco.com
SOURCE: The New York Times Company
The New York Times Company
Catherine J. Mathis, 212-556-1981
Paula Schwartz, 212-556-5224