The New York Times Company (NYSE:NYT) announced an operating profit of
$12.9 million in the third quarter of 2013 compared with $8.9 million in
the same period of 2012. Excluding depreciation, amortization, severance
and a special item, operating profit rose 35.1 percent to $39.9 million
from $29.6 million in the third quarter of 2012.
There was a third-quarter 2013 diluted loss per share from continuing
operations of $.03 compared with a loss of $.02 in the same period in
2012. Excluding severance and a special item, there was a diluted loss
per share from continuing operations of $.01 in the third quarter of
2013 compared with a loss of $.02 in the third quarter of 2012.
Total revenues increased 1.8 percent in the third quarter of 2013,
with circulation revenues up 4.8 percent. In the third quarter, the
Company added more net digital subscribers than in the second quarter of
2013. The total number of digital subscribers at the end of the third
quarter was approximately 727,000, a 28 percent year-on-year increase.
Total advertising revenues declined 2.0 percent in the quarter – the
lowest quarterly year-on-year decline in advertising in three years.
“The third quarter of 2013 was a strong one for the Company,” said Mark
Thompson, president and chief executive officer. “We increased our
revenue, decreased our costs and, as a result, significantly increased
our operating profit compared with the same quarter last year.
“We also made significant progress on our strategic initiatives. But we
recognize that, despite these positive developments, we still have a
great deal of work to do to transform our business model and to achieve
our goal of long-term sustainable growth.
“In the third quarter we also announced the initiation of a 4-cent
quarterly dividend. This allows us to return capital to our shareholders
while maintaining a prudent view of both our balance sheet and free cash
flow.”
Sale of New England Media Group - Discontinued Operations
On October 24, 2013, the Company completed the sale of its New England
Media Group (NEMG) – consisting of The Boston Globe, BostonGlobe.com,
Boston.com, Worcester Telegram & Gazette, Telegram.com and related
properties – for approximately $70 million in cash, subject to customary
adjustments. The Company recorded an impairment in the third quarter of
2013 in the amount of $34.3 million to reflect assets held for sale at
fair value less costs to sell.
Comparisons
Unless otherwise noted, all comparisons are for the third quarter of
2013 to the third quarter of 2012. The results of NEMG, which was sold
at the beginning of the fourth quarter of 2013, are reported within
discontinued operations in 2013 and 2012; and the results of the
Regional Media Group, which was sold in the first quarter of 2012, and
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.
Third-quarter 2013 results included the following special item:
-
A $6.2 million ($3.7 million after tax or $.02 per share) charge for a
partial withdrawal obligation under a multiemployer pension plan.
There were no special items in the third quarter of 2012.
In addition, the Company had severance costs of $0.6 million ($0.4
million after tax or $.00 per share) and $1.0 million ($0.6 million
after tax or $.00 per share) in the third quarters of 2013 and 2012,
respectively.
Third-Quarter Results from Continuing Operations
Revenues
Total revenues increased 1.8 percent to $361.7 million from $355.3
million. Circulation revenues increased 4.8 percent, while advertising
and other revenues decreased 2.0 percent and 0.8 percent, respectively.
Circulation revenues rose as digital subscription initiatives and the
increase in print circulation prices at The New York Times earlier this
year offset a decline in print copies sold. Revenues from the Company’s
digital-only subscription packages, e-readers and replica editions were
$37.7 million in the third quarter of 2013, up 29.0 percent from the
third quarter of 2012, and in the first nine months of 2013 totaled
$110.0 million, up 42.4 percent from the same period in 2012.
Paid subscribers to The Times and International Herald Tribune
digital-only subscription packages, e-readers and replica editions
totaled approximately 727,000 as of the end of the third quarter of
2013, an increase of more than 28 percent compared with the end of the
third quarter of 2012.
Print and digital advertising revenues decreased 1.6 percent and 3.4
percent, respectively, largely due to ongoing secular trends and an
increasingly complex and fragmented digital advertising marketplace. In
the third quarter of 2013, digital advertising revenues were $32.8
million compared with $33.9 million in the 2012 third quarter. Digital
advertising revenues as a percentage of total Company advertising
revenues were 23.8 percent in the third quarter of 2013 compared with
24.1 percent in the third quarter of 2012.
For the first nine months of 2013, print and digital advertising
revenues decreased 7.3 percent and 3.2 percent, respectively. Digital
advertising revenues were $109.9 million during that period compared
with $113.6 million in the first nine months of 2012. Digital
advertising revenues as a percentage of total Company advertising
revenues were 24.2 percent in the first nine months of 2013 compared
with 23.4 percent in the first nine months of 2012.
Operating Costs
Operating costs decreased 1.1 percent to $342.7 million from $346.4
million. Excluding depreciation, amortization and severance, operating
costs decreased 1.2 percent to $321.8 million from $325.8 million mainly
due to lower pension expense and raw materials expense, as well as
printing and distribution efficiencies.
Other Data
Joint Ventures
Loss from joint ventures was $0.1 million compared with income of $1.0
million in the prior-year period largely due to lower results for the
paper mills in which the Company has investments.
Interest Expense, net
Interest expense, net was unchanged at $15.5 million. Payment at
maturity on September 26, 2012 of all $75 million aggregate principal
amount of the Company’s 4.610 percent senior notes that benefited
interest expense was offset by a charge related to the repurchase of
approximately $12 million principal amount of the Company’s 6.625
percent senior notes due 2016.
Income Taxes
The Company had income tax expense of $2.6 million on a pre-tax loss of
$2.7 million in the third quarter of 2013 and income tax expense of
$21.5 million (effective tax rate of 54.2 percent) in the first nine
months of 2013. Included in the tax expense for the third quarter of
2013 is a charge of $1.5 million related to the remeasurement of
deferred tax assets in connection with the sale of NEMG.
The Company had an income tax benefit of $3.2 million (effective tax
rate of 51.7 percent) in the third quarter of 2012 and income tax
expense of $28.4 million (effective tax rate of 38.4 percent) in the
first nine months of 2012.
Liquidity
As of September 29, 2013, the Company had cash and marketable securities
of approximately $938 million (excluding restricted cash of
approximately $22 million that is subject to certain collateral
requirements). Total debt and capital lease obligations were
approximately $683 million. During the third quarter of 2013, the
Company repurchased approximately $12 million principal amount of its
6.625 percent senior notes due 2016.
Capital Expenditures
Capital expenditures totaled approximately $5.0 million in the third
quarter of 2013 and approximately $9.2 million in the first nine months
of 2013.
Outlook
The following guidance on revenue trends for the fourth quarter of 2013
compared to the fourth quarter of 2012 is based on a 13-week comparison,
excluding the impact of the additional week in the fourth quarter of
2012. Fourth-quarter 2013 circulation revenues are expected to increase
in the low single digits, as the Company expects to see continued
benefit from its digital subscription initiatives, as well as from print
price increases at The Times in early 2013. Advertising revenue trends
remain subject to significant month-to-month volatility and are expected
to decrease in the low single digits in the fourth quarter of 2013.
Operating costs for the fourth quarter of 2013 compared to the fourth
quarter of 2012, including the additional week, are expected to increase
in the low single digits as investments around the Company’s strategic
growth initiatives accelerate.
In addition, the Company expects the following on a pre-tax basis in
2013:
-
Results from joint ventures: loss of $2 to $4 million,
-
Depreciation and amortization: $75 to $80 million,
-
Interest expense, net: $55 to $60 million, and
-
Capital expenditures: $15 to $20 million.
Conference Call Information
The Company’s third-quarter earnings conference call will be held on
Thursday, October 31 at 11:00 a.m. E.T. To access the call, dial
866-652-5200 (in the U.S.) or 412-317-6060 (international callers).
Participants should dial in to the conference call approximately 10
minutes before the start time. Online listeners can link to the live
webcast at investors.nytco.com.
An archive of the webcast will be available beginning about two hours
after the call at investors.nytco.com.
The archive will be available for approximately three months. An audio
replay will be available at 877-344-7529 (in the U.S.) and at
412-317-0088 (international callers) beginning approximately two hours
after the call until 9:00 a.m. E.T. on Friday, November 8. The access
code is 10035106.
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 (NYSE:NYT) is a global media organization
dedicated to enhancing society by creating, collecting and distributing
high-quality news and information. The company includes The New York
Times, International New York Times, NYTimes.com,
international.nytimes.com and
related properties. It is known globally for excellence in its
journalism, and innovation in its print and digital storytelling and its
business model. Follow news about the company at @NYTimesComm or
investor news at @NYT_IR.
|
Exhibits:
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
Nine Months
|
|
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Circulation
|
|
|
|
$
|
204,156
|
|
|
$
|
194,739
|
|
|
4.8
|
%
|
|
$
|
616,603
|
|
|
$
|
578,914
|
|
|
6.5
|
%
|
|
Advertising
|
|
|
|
138,018
|
|
|
140,880
|
|
|
-2.0
|
%
|
|
454,595
|
|
|
485,368
|
|
|
-6.3
|
%
|
|
Other(a)
|
|
|
|
19,564
|
|
|
19,718
|
|
|
-0.8
|
%
|
|
62,172
|
|
|
62,945
|
|
|
-1.2
|
%
|
|
Total revenues
|
|
|
|
361,738
|
|
|
355,337
|
|
|
1.8
|
%
|
|
1,133,370
|
|
|
1,127,227
|
|
|
0.5
|
%
|
|
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs
|
|
|
|
152,595
|
|
|
157,370
|
|
|
-3.0
|
%
|
|
462,398
|
|
|
473,878
|
|
|
-2.4
|
%
|
|
Selling, general and administrative costs
|
|
|
|
169,824
|
|
|
169,459
|
|
|
0.2
|
%
|
|
519,610
|
|
|
524,611
|
|
|
-1.0
|
%
|
|
Depreciation and amortization
|
|
|
|
20,293
|
|
|
19,594
|
|
|
3.6
|
%
|
|
57,981
|
|
|
60,488
|
|
|
-4.1
|
%
|
|
Total operating costs
|
|
|
|
342,712
|
|
|
346,423
|
|
|
-1.1
|
%
|
|
1,039,989
|
|
|
1,058,977
|
|
|
-1.8
|
%
|
|
Pension withdrawal expense(b)
|
|
|
|
6,171
|
|
|
—
|
|
|
N/A
|
|
6,171
|
|
|
—
|
|
|
N/A
|
|
Operating profit
|
|
|
|
12,855
|
|
|
8,914
|
|
|
44.2
|
%
|
|
87,210
|
|
|
68,250
|
|
|
27.8
|
%
|
|
Gain on sale of investment(c)
|
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
55,645
|
|
|
*
|
|
Write-down of investments(d)
|
|
|
|
—
|
|
|
600
|
|
|
*
|
|
—
|
|
|
5,500
|
|
|
*
|
|
(Loss)/income from joint ventures
|
|
|
|
(123
|
)
|
|
1,010
|
|
|
*
|
|
(3,398
|
)
|
|
2,089
|
|
|
*
|
|
Interest expense, net
|
|
|
|
15,454
|
|
|
15,490
|
|
|
-0.2
|
%
|
|
44,169
|
|
|
46,406
|
|
|
-4.8
|
%
|
|
(Loss)/income from continuing operations before income taxes
|
|
|
|
(2,722
|
)
|
|
(6,166
|
)
|
|
-55.9
|
%
|
|
39,643
|
|
|
74,078
|
|
|
-46.5
|
%
|
|
Income tax expense/(benefit)(e)
|
|
|
|
2,578
|
|
|
(3,187
|
)
|
|
*
|
|
21,473
|
|
|
28,446
|
|
|
-24.5
|
%
|
|
(Loss)/income from continuing operations
|
|
|
|
(5,300
|
)
|
|
(2,979
|
)
|
|
77.9
|
%
|
|
18,170
|
|
|
45,632
|
|
|
-60.2
|
%
|
|
(Loss)/income from discontinued operations, net of income taxes(f)
|
|
|
|
(18,987
|
)
|
|
5,703
|
|
|
*
|
|
(18,995
|
)
|
|
(88,007
|
)
|
|
-78.4
|
%
|
|
Net (loss)/income
|
|
|
|
(24,287
|
)
|
|
2,724
|
|
|
*
|
|
(825
|
)
|
|
(42,375
|
)
|
|
-98.1
|
%
|
|
Net loss attributable to the noncontrolling interest
|
|
|
|
61
|
|
|
21
|
|
|
*
|
|
304
|
|
|
101
|
|
|
*
|
|
Net (loss)/income attributable to The New York Times Company
common stockholders
|
|
|
|
$
|
(24,226
|
)
|
|
$
|
2,745
|
|
|
*
|
|
$
|
(521
|
)
|
|
$
|
(42,274
|
)
|
|
-98.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to The New York Times Company common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from continuing operations
|
|
|
|
$
|
(5,239
|
)
|
|
$
|
(2,958
|
)
|
|
77.1
|
%
|
|
$
|
18,474
|
|
|
$
|
45,733
|
|
|
-59.6
|
%
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
|
|
(18,987
|
)
|
|
5,703
|
|
|
*
|
|
(18,995
|
)
|
|
(88,007
|
)
|
|
-78.4
|
%
|
|
Net (loss)/income
|
|
|
|
$
|
(24,226
|
)
|
|
$
|
2,745
|
|
|
*
|
|
$
|
(521
|
)
|
|
$
|
(42,274
|
)
|
|
-98.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
150,033
|
|
|
148,254
|
|
|
1.2
|
%
|
|
149,724
|
|
|
148,042
|
|
|
1.1
|
%
|
|
Diluted
|
|
|
|
150,033
|
|
|
148,254
|
|
|
1.2
|
%
|
|
156,460
|
|
|
151,762
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share attributable to The New York
Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from continuing operations
|
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.02
|
)
|
|
50.0
|
%
|
|
$
|
0.12
|
|
|
$
|
0.31
|
|
|
-61.3
|
%
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
|
|
(0.13
|
)
|
|
0.04
|
|
|
*
|
|
(0.13
|
)
|
|
(0.59
|
)
|
|
-78.0
|
%
|
|
Net (loss)/income
|
|
|
|
$
|
(0.16
|
)
|
|
$
|
0.02
|
|
|
*
|
|
$
|
(0.01
|
)
|
|
$
|
(0.28
|
)
|
|
-96.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss) per share attributable to The New York
Times Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from continuing operations
|
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.02
|
)
|
|
50.0
|
%
|
|
$
|
0.12
|
|
|
$
|
0.30
|
|
|
-60.0
|
%
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
|
|
(0.13
|
)
|
|
0.04
|
|
|
*
|
|
(0.12
|
)
|
|
(0.58
|
)
|
|
-79.3
|
%
|
|
Net (loss)/income
|
|
|
|
$
|
(0.16
|
)
|
|
$
|
0.02
|
|
|
*
|
|
$
|
—
|
|
|
$
|
(0.28
|
)
|
|
-100.0
|
%
|
|
Dividends declared per share
|
|
|
|
$
|
0.04
|
|
|
$
|
—
|
|
|
N/A
|
|
$
|
0.04
|
|
|
$
|
—
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents an increase or decrease in excess of 100%.
|
|
|
|
|
|
|
See footnotes page for additional information.
|
|
|
THE NEW YORK TIMES COMPANY
|
|
ADVERTISING REVENUES BY CATEGORY
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
Third Quarter
|
|
% Change
vs. 2012
|
|
Nine Months
|
|
% Change
vs. 2012
|
|
National
|
|
|
|
$
|
108,920
|
|
|
1.8
|
%
|
|
$
|
355,419
|
|
|
-4.4
|
%
|
|
Retail
|
|
|
|
15,186
|
|
|
-15.0
|
%
|
|
52,612
|
|
|
-14.7
|
%
|
|
Classified:
|
|
|
|
|
|
|
|
|
|
|
|
Help-Wanted
|
|
|
|
3,485
|
|
|
-10.4
|
%
|
|
11,101
|
|
|
-13.4
|
%
|
|
Real Estate
|
|
|
|
5,561
|
|
|
-11.5
|
%
|
|
19,003
|
|
|
-12.1
|
%
|
|
Automotive
|
|
|
|
379
|
|
|
-59.4
|
%
|
|
1,340
|
|
|
-53.0
|
%
|
|
Other
|
|
|
|
3,660
|
|
|
-1.9
|
%
|
|
11,782
|
|
|
4.6
|
%
|
|
Total Classified
|
|
|
|
13,085
|
|
|
-11.8
|
%
|
|
43,226
|
|
|
-10.9
|
%
|
|
Other
|
|
|
|
827
|
|
|
-27.2
|
%
|
|
3,338
|
|
|
-6.4
|
%
|
|
Total Company
|
|
|
|
$
|
138,018
|
|
|
-2.0
|
%
|
|
$
|
454,595
|
|
|
-6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
FOOTNOTES
|
|
(Dollars in thousands)
|
|
(a)
|
|
Other revenues consist primarily of revenues from news
services/syndication, rental income and digital archives.
|
|
|
|
|
|
(b)
|
|
In the third quarter of 2013, the Company recorded a $6.2 million
charge for a partial withdrawal obligation under a multiemployer
pension plan.
|
|
|
|
|
|
(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 and third quarters of 2012, the Company recorded a $4.9
million and $0.6 million non-cash charge, respectively, for the
write-down of certain investments.
|
|
|
|
|
|
(e)
|
|
Included in the tax expense for the third quarter of 2013 is a
charge of $1.5 million, which relates to the remeasurement of
deferred tax assets in connection with the sale of NEMG.
|
|
|
|
|
|
(f)
|
|
On October 24, 2013, the Company completed the sale of NEMG,
consisting of The Boston Globe, BostonGlobe.com, Boston.com, the
Worcester Telegram & Gazette, Telegram.com and related businesses.
The results of NEMG have been classified as discontinued operations
for all periods presented.
|
|
|
|
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 the 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 tables summarize the 2013 and 2012 results of
operations presented as discontinued operations for NEMG, the About
Group and the Regional Media Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
Third Quarter
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
New
England
Media
Group
|
|
About
Group
|
|
Regional
Media
Group
|
|
Total
|
|
New
England
Media
Group
|
|
About
Group
|
|
Regional
Media
Group
|
|
Total
|
|
Revenues
|
|
|
|
$
|
89,073
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
89,073
|
|
|
$
|
93,691
|
|
|
$
|
25,616
|
|
|
$
|
—
|
|
|
$
|
119,307
|
|
Total operating costs
|
|
|
|
85,157
|
|
|
—
|
|
|
—
|
|
|
85,157
|
|
|
93,233
|
|
|
16,687
|
|
|
—
|
|
|
109,920
|
|
Pension withdrawal expense(a)
|
|
|
|
7,997
|
|
|
—
|
|
|
—
|
|
|
7,997
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Write-down of assets
|
|
|
|
34,300
|
|
|
—
|
|
|
—
|
|
|
34,300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Loss)/income from joint ventures
|
|
|
|
(82
|
)
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
Interest expense, net
|
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
Pre-tax (loss)/income
|
|
|
|
(38,466
|
)
|
|
—
|
|
|
—
|
|
|
(38,466
|
)
|
|
468
|
|
|
8,929
|
|
|
—
|
|
|
9,397
|
|
Income tax (benefit)/expense
|
|
|
|
(19,479
|
)
|
|
—
|
|
|
—
|
|
|
(19,479
|
)
|
|
791
|
|
|
2,903
|
|
|
—
|
|
|
3,694
|
|
Loss from discontinued operations, net of income taxes
|
|
|
|
(18,987
|
)
|
|
—
|
|
|
—
|
|
|
(18,987
|
)
|
|
(323
|
)
|
|
6,026
|
|
|
—
|
|
|
5,703
|
|
(Loss)/gain on sale, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income tax benefit
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Loss)/gain on sale, net of income taxes
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
|
|
$
|
(18,987
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(18,987
|
)
|
|
$
|
(323
|
)
|
|
$
|
6,026
|
|
|
$
|
—
|
|
|
$
|
5,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
FOOTNOTES (continued)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
|
|
Nine Months
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
New
England
Media
Group
|
|
About
Group
|
|
Regional
Media
Group
|
|
Total
|
|
New
England
Media
Group
|
|
About
Group
|
|
Regional
Media
Group
|
|
Total
|
|
Revenues
|
|
|
|
$
|
268,737
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
268,737
|
|
|
$
|
287,035
|
|
|
$
|
74,970
|
|
|
$
|
6,115
|
|
|
$
|
368,120
|
|
|
Total operating costs
|
|
|
|
262,079
|
|
|
—
|
|
|
—
|
|
|
262,079
|
|
|
288,360
|
|
|
51,140
|
|
|
8,017
|
|
|
347,517
|
|
|
Pension withdrawal expense(a)
|
|
|
|
7,997
|
|
|
—
|
|
|
—
|
|
|
7,997
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Write-down of assets(b)
|
|
|
|
34,300
|
|
|
—
|
|
|
—
|
|
|
34,300
|
|
|
—
|
|
|
194,732
|
|
|
—
|
|
|
194,732
|
|
|
Loss from joint ventures
|
|
|
|
(205
|
)
|
|
—
|
|
|
—
|
|
|
(205
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
Interest expense, net
|
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
Pre-tax (loss)
|
|
|
|
(35,853
|
)
|
|
—
|
|
|
—
|
|
|
(35,853
|
)
|
|
(1,344
|
)
|
|
(170,902
|
)
|
|
(1,902
|
)
|
|
(174,148
|
)
|
|
Income tax (benefit)/expense
|
|
|
|
(16,858
|
)
|
|
—
|
|
|
—
|
|
|
(16,858
|
)
|
|
391
|
|
|
(60,065
|
)
|
|
(736
|
)
|
|
(60,410
|
)
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
|
|
(18,995
|
)
|
|
—
|
|
|
—
|
|
|
(18,995
|
)
|
|
(1,735
|
)
|
|
(110,837
|
)
|
|
(1,166
|
)
|
|
(113,738
|
)
|
|
(Loss)/gain on sale, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,717
|
)
|
|
(4,717
|
)
|
|
Income tax benefit(c)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,448
|
)
|
|
(30,448
|
)
|
|
Gain on sale, net of income taxes
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,731
|
|
|
25,731
|
|
|
(Loss)/income from discontinued operations, net of income taxes
|
|
|
|
$
|
(18,995
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(18,995
|
)
|
|
$
|
(1,735
|
)
|
|
$
|
(110,837
|
)
|
|
$
|
24,565
|
|
|
$
|
(88,007
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The pension withdrawal expense related to charges for partial
withdrawal obligations under multiemployer pension plans triggered
by the sale of NEMG.
|
|
|
|
(b)
|
|
Included in the write-down of assets in 2012 is the impairment
of goodwill that related to the About Group for the nine months
ended September 23, 2012.
|
|
|
|
(c)
|
|
The income tax benefit for the Regional Media Group included a
tax deduction for goodwill, which was previously non-deductible,
triggered upon the sale of the Regional Media Group.
|
|
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 loss per share from continuing operations
excluding severance and a special item; operating profit before
depreciation, amortization, severance and a special item; 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 (if any) 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/(loss) per share from continuing operations, operating
profit/(loss) and operating costs, the most directly comparable GAAP
items, are set out in the tables below.
|
|
|
Reconciliation of diluted loss per share
from continuing operations excluding severance and a special item
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
Diluted loss per share from continuing operations
|
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.02
|
)
|
|
50.0
|
%
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Severance
|
|
|
|
—
|
|
|
—
|
|
|
|
|
Special item:
|
|
|
|
|
|
|
|
|
|
Pension withdrawal expense
|
|
|
|
0.02
|
|
|
—
|
|
|
|
|
Diluted loss per share from continuing operations
excluding
severance and a special item
|
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
-50.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating profit before
depreciation & amortization, severance and a special item
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
Nine Months
|
|
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
|
Operating profit
|
|
|
|
$
|
12,855
|
|
|
$
|
8,914
|
|
|
44.2
|
%
|
|
$
|
87,210
|
|
|
$
|
68,250
|
|
|
27.8
|
%
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
20,293
|
|
|
19,594
|
|
|
|
|
57,981
|
|
|
60,488
|
|
|
|
|
Severance
|
|
|
|
622
|
|
|
1,050
|
|
|
|
|
8,346
|
|
|
6,395
|
|
|
|
|
Special Item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension withdrawal expense
|
|
|
|
6,171
|
|
|
—
|
|
|
|
|
6,171
|
|
|
—
|
|
|
|
|
Operating profit before depreciation & amortization, severance,
and a special item
|
|
|
|
$
|
39,941
|
|
|
$
|
29,558
|
|
|
35.1
|
%
|
|
$
|
159,708
|
|
|
$
|
135,133
|
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating costs before
depreciation & amortization, severance and raw materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
Nine Months
|
|
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
2013
|
|
2012
|
|
% Change
|
|
Operating costs
|
|
|
|
$
|
342,712
|
|
|
$
|
346,423
|
|
|
-1.1
|
%
|
|
$
|
1,039,989
|
|
|
$
|
1,058,977
|
|
|
-1.8
|
%
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
20,293
|
|
|
19,594
|
|
|
|
|
57,981
|
|
|
60,488
|
|
|
|
|
Severance
|
|
|
|
622
|
|
|
1,050
|
|
|
|
|
8,346
|
|
|
6,395
|
|
|
|
|
Operating costs before depreciation & amortization and severance
|
|
|
|
321,797
|
|
|
325,779
|
|
|
-1.2
|
%
|
|
973,662
|
|
|
992,094
|
|
|
-1.9
|
%
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials
|
|
|
|
21,064
|
|
|
24,343
|
|
|
|
|
66,913
|
|
|
75,963
|
|
|
|
|
Operating costs before depreciation & amortization, severance and
raw materials
|
|
|
|
$
|
300,733
|
|
|
$
|
301,436
|
|
|
-0.2
|
%
|
|
$
|
906,749
|
|
|
$
|
916,131
|
|
|
-1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This press release can be downloaded from www.nytco.com
Copyright Business Wire 2013