The New York Times Company (NYSE: NYT) announced today second-quarter
2013 diluted earnings per share from continuing operations of $.13
compared with $.25 in the same period of 2012. Excluding severance and
the 2012 special item discussed below, diluted earnings per share from
continuing operations were $.14 in the second quarter of 2013 compared
with $.11 in the second quarter of 2012.
The Company had operating profit of $53.4 million in the second quarter
of 2013 compared with $44.1 million in the same period of 2012.
Excluding depreciation, amortization and severance, operating profit
rose 13 percent to $77.8 million from $68.8 million in the second
quarter of 2012.
“Our improved results in the second quarter were an organization-wide
effort – with contributions from more favorable revenue trends and
strong cost performance,” said Mark Thompson, president and chief
executive officer. “The increase in operating profit reflects the
ongoing evolution of our digital subscription initiatives on the
circulation side, the moderation of revenue declines on the advertising
side and the continued focus on managing costs.
“Circulation revenues rose 5 percent led by digital subscription
initiatives. Paid digital subscriptions across the Company totaled
approximately 738,000 at quarter-end, an increase of nearly 40 percent
year-over-year from the end of the second quarter of 2012. And while
advertising revenues decreased approximately 6 percent, we saw a
sequential improvement from the first-quarter trends.
“We are making good progress and are on track with our strategic growth
initiatives. In particular, we are well under way in the ramp-up for the
fall re-brand of the International Herald Tribune as the International
New York Times and with the development work related to our new paid
products. I am also very pleased to welcome Meredith Kopit Levien, our
new executive vice president of advertising, who joined the Company
earlier this week.”
Comparisons
Unless otherwise noted, all comparisons are for the second quarter of
2013 to the second quarter of 2012. The results of the Regional Media
Group, which was sold in the first quarter of 2012, and the results of
the About Group, which was sold in the fourth quarter of 2012, are
reported within discontinued operations in 2012.
This release includes non-GAAP financial measures, a discussion of
management’s reasons for the presentation of these non-GAAP financial
measures and reconciliations to the most comparable GAAP financial
measures.
There were no special items in the second quarter of 2013.
The second-quarter 2012 results included the following special item:
-
A $37.8 million ($22.0 million after tax or $.15 per share) gain on
the sale of the Company’s remaining 210 units in Fenway Sports Group.
In addition to these special items, the Company had severance costs of
$2.7 million ($1.6 million after tax or $.01 per share) and $1.8 million
($1.1 million after tax or $.01 per share) in the second quarters of
2013 and 2012, respectively.
Second-Quarter Results from Continuing
Operations
Revenues
Total revenues decreased 0.9 percent to $485.4 million from $489.8
million. Circulation revenues increased 5.1 percent, while advertising
and other revenues decreased 5.8 percent and 9.7 percent, respectively.
Circulation revenues rose as digital subscription initiatives and the
increase in print circulation prices at The New York Times and The
Boston Globe earlier this year offset a decline in print copies sold. In
the second quarter of 2013, revenues from the Company's digital-only
subscription packages, e-readers and replica editions were $38.3
million, up 44.1 percent from the second quarter of 2012, and in the
first half of 2013 totaled $75.1 million, up 51.7 percent from the same
period in 2012.
Paid subscribers to The Times and the International Herald Tribune
digital-only subscription packages, e-readers and replica editions
totaled about 699,000 as of the end of the second quarter of 2013, an
increase of more than 35 percent year-over-year since the end of the
second quarter of 2012. Paid digital subscribers to BostonGlobe.com and
The Boston Globe’s e-readers and replica editions totaled about 39,000
as of the end of the second quarter of 2013, an increase of nearly 70
percent year-over-year from the end of the second quarter of 2012.
Print and digital advertising revenues decreased 6.8 percent and 2.7
percent, respectively, largely due to ongoing secular trends and an
increasingly complex and fragmented digital advertising marketplace. In
the second quarter of 2013, digital advertising revenues were $51.2
million compared with $52.6 million in the 2012 second quarter. Digital
advertising revenues as a percentage of total Company advertising
revenues were 24.7 percent in the second quarter of 2013 compared with
23.9 percent in the second quarter of 2012.
Operating Costs
Operating costs decreased 3.1 percent to $431.9 million from $445.7
million. Excluding depreciation, amortization and severance, operating
costs decreased 3.2 percent to $407.6 million from $421.0 million mainly
due to lower compensation and benefits costs and raw materials expense.
Other Data
Joint Ventures
Loss from joint ventures was $0.5 million compared with income of $1.1
million largely due to lower results for the paper mills in which the
Company has investments.
Interest Expense, net
Interest expense, net decreased to $14.6 million from $15.5 million
mainly due to the Company’s payment at maturity on September 26, 2012 of
all $75 million aggregate principal amount of the Company’s 4.610
percent senior notes.
Income Taxes
The Company had income tax expense of $18.2 million (effective tax rate
of 47.4 percent) in the second quarter of 2013 and an income tax expense
of $21.5 million (effective tax rate of 47.8 percent) in the first six
months of 2013.
The Company had income tax expense of $29.4 million (effective tax rate
of 43.6 percent) in the second quarter of 2012 and income tax expense of
$31.2 million (effective tax rate of 39.8 percent) in the first six
months of 2012.
Liquidity
As of June 30, 2013, the Company had cash and marketable securities of
approximately $918 million (excluding restricted cash of approximately
$22 million that is subject to certain collateral requirements). Total
debt and capital lease obligations were approximately $694 million.
During the second quarter of 2013, the Company repurchased approximately
$5 million principal amount of its 6.625 percent senior notes due 2016.
Capital Expenditures
Capital expenditures totaled approximately $1.8 million in the second
quarter of 2013 and approximately $5.5 million in the first six months
of 2013.
Prior Period Adjustments
During the second quarter of 2013, the Company determined that due to an
error in the actuarial valuation of accrued benefits for certain
participants in The New York Times Companies Pension Plan, the Company’s
pension benefit obligation was overstated by approximately $50.4 million
as of December 30, 2012. The Company concluded that the impact of the
error was not material individually or in the aggregate to any of the
prior reporting periods from an income statement and balance sheet
perspective.
This release contains 2012 second-quarter and six-month financial
information presented on an adjusted basis to correct the error and the
Company will make adjustments for future filings that include financial
statements for the periods affected. Financial information for the first
quarter of 2013 has also been adjusted. The adjustments resulted in a
reduction in pension expense and pension liability in each of the
periods presented.
As reported, in the first quarter of 2013, operating costs, operating
profit and diluted EPS were $443.1 million, $22.9 million and $.02,
respectively. As adjusted, first-quarter 2013 operating costs, operating
profit and diluted EPS were $442.3 million, $23.7 million and $.02,
respectively.
The quarterly impact of the adjustments on 2012 is summarized below:
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Full Year
|
2012 Operating Costs As Reported
|
|
$
|
462,812
|
|
|
$
|
446,599
|
|
|
$
|
440,519
|
|
|
$
|
480,461
|
|
|
$
|
1,830,391
|
2012 Operating Costs As Adjusted
|
|
461,948
|
|
|
445,734
|
|
|
439,656
|
|
|
479,599
|
|
|
1,826,937
|
|
|
|
|
|
|
|
|
|
|
|
2012 Settlement Charge As Reported
|
|
|
|
|
|
|
|
48,729
|
|
|
48,729
|
2012 Settlement Charge As Adjusted
|
|
|
|
|
|
|
|
47,657
|
|
|
47,657
|
|
|
|
|
|
|
|
|
|
|
|
2012 Operating Profit As Reported
|
|
12,620
|
|
|
43,203
|
|
|
8,509
|
|
|
44,008
|
|
|
108,340
|
2012 Operating Profit As Adjusted
|
|
13,484
|
|
|
44,068
|
|
|
9,372
|
|
|
45,942
|
|
|
112,866
|
|
|
|
|
|
|
|
|
|
|
|
2012 Diluted EPS As Reported
|
|
0.28
|
|
|
(0.59
|
)
|
|
0.02
|
|
|
1.14
|
|
|
0.87
|
2012 Diluted EPS As Adjusted
|
|
0.28
|
|
|
(0.58
|
)
|
|
0.02
|
|
|
1.15
|
|
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outlook
Total circulation revenues are projected to increase in the low- to
mid-single digits in the third quarter of 2013 compared with the same
period in 2012.
Total advertising revenue trends in the third quarter of 2013 are
expected to experience similar month-to-month volatility to the first
half of 2013.
Total operating costs in the third quarter of 2013 are expected to be in
line with the same period in 2012.
In addition, the Company expects the following on a pre-tax basis in
2013:
-
Results from joint ventures: loss of $3 to $6 million,
-
Depreciation and amortization: $90 to $95 million,
-
Interest expense, net: $55 to $60 million, and
-
Capital expenditures: approximately $35 million.
Conference Call Information
The Company’s second-quarter earnings conference call will be held on
Thursday, August 1, at 11:00 a.m. E.T. To access the call, dial
888-686-9683 (in the U.S.) and 913-312-1520 (international callers).
Participants should dial into the conference call approximately 10
minutes before the start time. Online listeners can link to the live
webcast at www.nytco.com/investors.
An archive of the webcast will be available beginning two hours after
the call at www.nytco.com/investors.
The archive will be available for approximately three months. An audio
replay will be available at 888-203-1112 (in the U.S.) and 719-457-0820
(international callers) beginning approximately two hours after the call
until 5 p.m. E.T. on Friday, August 2. The access code is 5503280.
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 circulation and advertising generated by the
Company’s various markets and the development of the Company’s digital
businesses. They also include other risks detailed from time to time in
the Company’s publicly filed documents, including the Company’s Annual
Report on Form 10-K for the year ended December 30, 2012. The Company
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
The New York Times Company, a leading global, multimedia news and
information company with 2012 revenues of $2.0 billion, includes The New
York Times, the International Herald Tribune, The Boston Globe,
NYTimes.com, BostonGlobe.com, Boston.com and related properties. The
Company’s core purpose is to enhance society by creating, collecting and
distributing high-quality news and information.
|
|
|
|
Exhibits:
|
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
Revenues by Operating Segment
|
|
|
|
Advertising Revenues by Category
|
|
|
|
Footnotes
|
|
|
|
Reconciliation of Non-GAAP Information
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Dollars and shares in thousands, except per share data)
|
|
|
|
|
|
|
Second Quarter
|
|
Six Months
|
|
|
2013
|
|
2012
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Circulation
|
|
$
|
245,132
|
|
|
$
|
233,291
|
|
|
5.1%
|
|
$
|
486,921
|
|
|
$
|
460,285
|
|
|
5.8%
|
Advertising
|
|
207,454
|
|
|
220,228
|
|
|
-5.8%
|
|
398,621
|
|
|
435,462
|
|
|
-8.5%
|
Other(a) |
|
32,777
|
|
|
36,283
|
|
|
-9.7%
|
|
65,754
|
|
|
69,487
|
|
|
-5.4%
|
Total revenues
|
|
485,363
|
|
|
489,802
|
|
|
-0.9%
|
|
951,296
|
|
|
965,234
|
|
|
-1.4%
|
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs
|
|
192,396
|
|
|
202,578
|
|
|
-5.0%
|
|
388,662
|
|
|
405,285
|
|
|
-4.1%
|
Selling, general and administrative costs
|
|
217,928
|
|
|
220,236
|
|
|
-1.0%
|
|
442,131
|
|
|
449,360
|
|
|
-1.6%
|
Depreciation and amortization(b) |
|
21,608
|
|
|
22,920
|
|
|
-5.7%
|
|
43,408
|
|
|
53,036
|
|
|
-18.2%
|
Total operating costs
|
|
431,932
|
|
|
445,734
|
|
|
-3.1%
|
|
874,201
|
|
|
907,681
|
|
|
-3.7%
|
Operating profit
|
|
53,431
|
|
|
44,068
|
|
|
21.2%
|
|
77,095
|
|
|
57,553
|
|
|
34.0%
|
Gain on sale of investment(c) |
|
—
|
|
|
37,797
|
|
|
N/A
|
|
—
|
|
|
55,645
|
|
|
N/A
|
Write-down of investments(d) |
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
4,900
|
|
|
N/A
|
(Loss)/income from joint ventures
|
|
(459
|
)
|
|
1,079
|
|
|
*
|
|
(3,399
|
)
|
|
1,050
|
|
|
*
|
Interest expense, net
|
|
14,646
|
|
|
15,464
|
|
|
-5.3%
|
|
28,720
|
|
|
30,916
|
|
|
-7.1%
|
Income from continuing operations before income taxes
|
|
38,326
|
|
|
67,480
|
|
|
-43.2%
|
|
44,976
|
|
|
78,432
|
|
|
-42.7%
|
Income tax expense
|
|
18,189
|
|
|
29,440
|
|
|
-38.2%
|
|
21,516
|
|
|
31,233
|
|
|
-31.1%
|
Income from continuing operations
|
|
20,137
|
|
|
38,040
|
|
|
-47.1%
|
|
23,460
|
|
|
47,199
|
|
|
-50.3%
|
Loss from discontinued operations, net of income taxes(e) |
|
—
|
|
|
(125,689
|
)
|
|
N/A
|
|
—
|
|
|
(92,298
|
)
|
|
N/A
|
Net income/(loss)
|
|
20,137
|
|
|
(87,649
|
)
|
|
*
|
|
23,460
|
|
|
(45,099
|
)
|
|
*
|
Net (income)/loss attributable to the noncontrolling interest
|
|
(6
|
)
|
|
27
|
|
|
*
|
|
243
|
|
|
80
|
|
|
*
|
Net income/(loss) attributable to The New York Times Company
common stockholders
|
|
$
|
20,131
|
|
|
$
|
(87,622
|
)
|
|
*
|
|
$
|
23,703
|
|
|
$
|
(45,019
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to The New York Times Company
common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
20,131
|
|
|
$
|
38,067
|
|
|
-47.1%
|
|
$
|
23,703
|
|
|
$
|
47,279
|
|
|
-49.9%
|
Loss from discontinued operations, net of income taxes
|
|
—
|
|
|
(125,689
|
)
|
|
N/A
|
|
—
|
|
|
(92,298
|
)
|
|
N/A
|
Net income/(loss)
|
|
$
|
20,131
|
|
|
$
|
(87,622
|
)
|
|
*
|
|
$
|
23,703
|
|
|
$
|
(45,019
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
148,797
|
|
|
148,005
|
|
|
0.5%
|
|
148,754
|
|
|
147,936
|
|
|
0.6%
|
Diluted
|
|
156,511
|
|
|
149,799
|
|
|
4.5%
|
|
156,101
|
|
|
150,669
|
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share attributable to The New York
Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.14
|
|
|
$
|
0.26
|
|
|
-46.2%
|
|
$
|
0.16
|
|
|
$
|
0.32
|
|
|
-50.0%
|
Loss from discontinued operations, net of income taxes
|
|
—
|
|
|
(0.85
|
)
|
|
N/A
|
|
—
|
|
|
(0.62
|
)
|
|
N/A
|
Net income/(loss)
|
|
$
|
0.14
|
|
|
$
|
(0.59
|
)
|
|
*
|
|
$
|
0.16
|
|
|
$
|
(0.30
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss) per share attributable to The New
York Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.13
|
|
|
$
|
0.25
|
|
|
-48.0%
|
|
$
|
0.15
|
|
|
$
|
0.31
|
|
|
-51.6%
|
Loss from discontinued operations, net of income taxes
|
|
—
|
|
|
(0.83
|
)
|
|
N/A
|
|
—
|
|
|
(0.61
|
)
|
|
N/A
|
Net income/(loss)
|
|
$
|
0.13
|
|
|
$
|
(0.58
|
)
|
|
*
|
|
$
|
0.15
|
|
|
$
|
(0.30
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents an increase or decrease in excess of 100%.
|
|
|
|
|
|
|
|
See footnotes page for additional information.
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
REVENUES BY OPERATING SEGMENT AND ADVERTISING REVENUES BY CATEGORY
|
(Dollars in thousands)
|
|
|
|
2013
|
|
|
Second Quarter
|
|
% Change vs. 2012
|
|
|
Six Months
|
|
% Change vs. 2012
|
|
The New York Times Media Group
|
|
|
|
|
|
|
|
|
|
|
Circulation
|
|
$
|
206,965
|
|
|
6.6
|
%
|
|
$
|
412,447
|
|
|
7.4
|
%
|
Advertising
|
|
163,040
|
|
|
-4.7
|
%
|
|
316,578
|
|
|
-8.1
|
%
|
Other
|
|
20,953
|
|
|
-6.9
|
%
|
|
42,608
|
|
|
-1.4
|
%
|
Total
|
|
$
|
390,958
|
|
|
0.8
|
%
|
|
$
|
771,633
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
New England Media Group
|
|
|
|
|
|
|
|
|
|
|
Circulation
|
|
$
|
38,167
|
|
|
-2.3
|
%
|
|
$
|
74,474
|
|
|
-2.1
|
%
|
Advertising
|
|
44,414
|
|
|
-9.5
|
%
|
|
82,043
|
|
|
-9.8
|
%
|
Other
|
|
11,824
|
|
|
-14.2
|
%
|
|
23,146
|
|
|
-11.9
|
%
|
Total
|
|
$
|
94,405
|
|
|
-7.4
|
%
|
|
$
|
179,663
|
|
|
-7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
|
|
|
|
|
|
|
|
Circulation
|
|
$
|
245,132
|
|
|
5.1
|
%
|
|
$
|
486,921
|
|
|
5.8
|
%
|
Advertising
|
|
207,454
|
|
|
-5.8
|
%
|
|
398,621
|
|
|
-8.5
|
%
|
Other(a) |
|
32,777
|
|
|
-9.7
|
%
|
|
65,754
|
|
|
-5.4
|
%
|
Total
|
|
$
|
485,363
|
|
|
-0.9
|
%
|
|
$
|
951,296
|
|
|
-1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes page for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
Second Quarter
|
|
% Change vs. 2012
|
|
|
Six Months
|
|
% Change vs. 2012
|
|
National
|
|
$
|
142,284
|
|
|
-3.5
|
%
|
|
$
|
272,389
|
|
|
-7.0
|
%
|
Retail
|
|
31,332
|
|
|
-12.9
|
%
|
|
60,494
|
|
|
-13.9
|
%
|
Classified:
|
|
|
|
|
|
|
|
|
|
|
Help-Wanted
|
|
6,337
|
|
|
-11.0
|
%
|
|
12,330
|
|
|
-13.0
|
%
|
Real Estate
|
|
9,309
|
|
|
-13.9
|
%
|
|
17,760
|
|
|
-14.5
|
%
|
Automotive
|
|
5,275
|
|
|
-4.4
|
%
|
|
10,515
|
|
|
-7.2
|
%
|
Other
|
|
6,948
|
|
|
-1.3
|
%
|
|
14,265
|
|
|
-1.6
|
%
|
Total Classified
|
|
27,869
|
|
|
-8.6
|
%
|
|
54,870
|
|
|
-9.7
|
%
|
Other
|
|
5,969
|
|
|
-5.1
|
%
|
|
10,868
|
|
|
-5.7
|
%
|
Total Company
|
|
$
|
207,454
|
|
|
-5.8
|
%
|
|
$
|
398,621
|
|
|
-8.5
|
%
|
|
THE NEW YORK TIMES COMPANY
|
FOOTNOTES
|
(Dollars in thousands)
|
|
|
|
(a)
|
|
Other revenues consist primarily of revenues from news
services/syndication, commercial printing and distribution, rental
income, digital archives and direct mail advertising services.
|
|
|
|
(b)
|
|
Includes $6.7 million of accelerated depreciation expense in the
first quarter of 2012 for certain assets at the Worcester Telegram &
Gazette’s facility in Millbury, Mass., associated with the
consolidation of most of its printing into The Boston Globe’s
facility in Boston, in the second quarter of 2012.
|
|
|
|
(c)
|
|
In the second quarter of 2012, the Company recorded a $37.8 million
gain on the sale of its remaining 210 units in Fenway Sports Group.
In the first quarter of 2012, the Company recorded a $17.8 million
gain on the sale of 100 of its units in Fenway Sports Group.
|
|
|
|
(d)
|
|
In the first quarter of 2012, the Company recorded a $4.9 million
non-cash charge for a write-down of certain investments.
|
|
|
|
(e)
|
|
On September 24, 2012, the Company completed the sale of the About
Group, consisting of About.com, ConsumerSearch.com, CalorieCount.com
and related businesses. The results of the About Group have been
classified as discontinued operations in 2012.
|
|
|
On January 6, 2012, the Company completed the sale of its Regional
Media Group, consisting of 16 regional newspapers, other print
publications and related businesses. The results of the Regional
Media Group have been classified as discontinued operations in 2012.
|
|
|
The following table summarizes the 2012 results of operations
presented as discontinued operations for both the About Group and
the Regional Media Group:
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
Six Months
|
|
|
2012
|
|
2012
|
|
|
About Group
|
|
Regional Media Group
|
|
Total
|
|
About Group
|
|
Regional Media Group
|
|
Total
|
Revenues
|
|
$
|
25,410
|
|
|
$
|
—
|
|
|
$
|
25,410
|
|
|
$
|
49,354
|
|
|
$
|
6,115
|
|
|
$
|
55,469
|
|
Total operating costs
|
|
17,505
|
|
|
—
|
|
|
17,505
|
|
|
34,453
|
|
|
8,017
|
|
|
42,470
|
|
Write-down of assets
|
|
194,732
|
|
|
—
|
|
|
194,732
|
|
|
194,732
|
|
|
—
|
|
|
194,732
|
|
Pre-tax loss
|
|
(186,827
|
)
|
|
—
|
|
|
(186,827
|
)
|
|
(179,831
|
)
|
|
(1,902
|
)
|
|
(181,733
|
)
|
Income tax benefit
|
|
65,643
|
|
|
—
|
|
|
65,643
|
|
|
62,968
|
|
|
736
|
|
|
63,704
|
|
Loss from discontinued operations, net of income taxes
|
|
(121,184
|
)
|
|
—
|
|
|
(121,184
|
)
|
|
(116,863
|
)
|
|
(1,166
|
)
|
|
(118,029
|
)
|
(Loss)/gain on sale, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale
|
|
—
|
|
|
(7,026
|
)
|
|
(7,026
|
)
|
|
—
|
|
|
(4,717
|
)
|
|
(4,717
|
)
|
Income tax benefit
|
|
—
|
|
|
2,521
|
|
|
2,521
|
|
|
—
|
|
|
30,448
|
|
*
|
30,448
|
|
(Loss)/gain on sale, net of income taxes
|
|
—
|
|
|
(4,505
|
)
|
|
(4,505
|
)
|
|
—
|
|
|
25,731
|
|
|
25,731
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
$
|
(121,184
|
)
|
|
$
|
(4,505
|
)
|
|
$
|
(125,689
|
)
|
|
$
|
(116,863
|
)
|
|
$
|
24,565
|
|
|
$
|
(92,298
|
)
|
* Tax benefit is primarily due to a tax deduction for goodwill.
|
|
|
|
|
|
|
|
|
|
|
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 diluted earnings per share from
continuing operations excluding severance and special items;
operating profit before depreciation, amortization, severance and
special items (if any); and operating costs before depreciation,
amortization, severance 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 Company’s operations. Management believes that, for the
reasons outlined below, these non-GAAP financial measures provide
useful information to investors as a supplement to reported diluted
earnings/(loss) per share from continuing operations, operating
profit/(loss) 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.
|
|
Diluted earnings/(loss) per share from continuing operations
excluding severance and special items provide useful information in
evaluating the Company’s period-to-period performance because it
eliminates items that the Company does not consider to be indicative
of earnings from ongoing operating activities. Operating
profit/(loss) before depreciation, amortization, severance and
special items (if any) is useful in evaluating the Company’s ongoing
performance of its businesses as it excludes the significant
non-cash impact of depreciation and amortization as well as items
not indicative of ongoing operating activities. Total operating
costs include depreciation, amortization, severance and raw
materials. Total operating costs excluding these items provide
investors with helpful supplemental information on the Company’s
underlying operating costs that is used by management in its
financial and operational decision-making.
|
|
Reconciliations of these non-GAAP financial measures from,
respectively, diluted earnings per share from continuing operations,
operating profit and 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 severance and special
items
|
|
|
|
|
|
|
Second Quarter
|
|
|
2013
|
|
2012
|
|
% Change
|
Diluted earnings per share from continuing operations
|
|
$
|
0.13
|
|
|
$
|
0.25
|
|
|
-48.0%
|
Add:
|
|
|
|
|
|
|
Severance
|
|
0.01
|
|
|
0.01
|
|
|
|
Special item:
|
|
|
|
|
|
|
Gain on sale of investment
|
|
—
|
|
|
(0.15
|
)
|
|
|
Diluted earnings per share from continuing operations excluding
severance and special item
|
|
$
|
0.14
|
|
|
$
|
0.11
|
|
|
27.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating profit before
depreciation & amortization and severance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
Six Months
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
2013
|
|
2012
|
|
% Change
|
|
Operating profit
|
|
$
|
53,431
|
|
|
$
|
44,068
|
|
|
21.2
|
%
|
|
$
|
77,095
|
|
|
$
|
57,553
|
|
|
34.0
|
%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
21,608
|
|
|
22,920
|
|
|
|
|
|
43,408
|
|
|
53,036
|
|
|
|
|
Severance
|
|
2,716
|
|
|
1,844
|
|
|
|
|
|
7,667
|
|
|
7,120
|
|
|
|
|
Operating profit before depreciation & amortization and
severance
|
|
$
|
77,755
|
|
|
$
|
68,832
|
|
|
13.0
|
%
|
|
$
|
128,170
|
|
|
$
|
117,709
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating costs before
depreciation & amortization, severance and raw materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
Six Months
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
2013
|
|
2012
|
|
% Change
|
|
Operating costs
|
|
$
|
431,932
|
|
|
$
|
445,734
|
|
|
-3.1
|
%
|
|
$
|
874,201
|
|
|
$
|
907,681
|
|
|
-3.7
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
21,608
|
|
|
22,920
|
|
|
|
|
|
43,408
|
|
|
53,036
|
|
|
|
|
Severance
|
|
2,716
|
|
|
1,844
|
|
|
|
|
|
7,667
|
|
|
7,120
|
|
|
|
|
Operating costs before depreciation & amortization and
severance
|
|
407,608
|
|
|
420,970
|
|
|
-3.2
|
%
|
|
823,126
|
|
|
847,525
|
|
|
-2.9
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials
|
|
28,854
|
|
|
33,596
|
|
|
|
|
|
58,947
|
|
|
66,959
|
|
|
|
|
Operating costs before depreciation & amortization, severance
and raw materials
|
|
$
|
378,754
|
|
|
$
|
387,374
|
|
|
-2.2
|
%
|
|
$
|
764,179
|
|
|
$
|
780,566
|
|
|
-2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This press release can be downloaded from www.nytco.com
Copyright Business Wire 2013