The New York Times Company (NYSE: NYT) announced today fourth-quarter
2015 diluted earnings per share from continuing operations of $.31
compared with $.22 in the same period of 2014. Adjusted diluted earnings
per share from continuing operations (defined below) were $.37 in the
fourth quarter of 2015 compared with $.26 in the fourth quarter of 2014.
Operating profit grew to $87.7 million in the fourth quarter of 2015
compared with $62.4 million in the same period of 2014, driven by broad
cost savings. Adjusted operating profit (defined below) was $117.7
million in the fourth quarter of 2015 compared with $103.9 million in
the fourth quarter of 2014.
For the full year of 2015, the Company had an operating profit of $136.6
million compared with $91.9 million in 2014, with the increase mainly
driven by lower costs, including decreased severance expense, partially
offset by an increased pension settlement charge in 2015. Adjusted
operating profit in 2015 was $289.0 million compared with $256.3 million
in 2014.
“We ended the year with a solid quarter, with strong growth in adjusted
operating profit and digital advertising and consumer revenue, and the
addition of 53,000 net new paid digital-only subscribers, the largest
number of new subscribers in a quarter in three years,” said Mark
Thompson, president and CEO, The New York Times Company. “We also
succeeded in significantly reducing our costs.
“Overall, 2015 was a year of progress across the business. From the
launch of virtual reality, continued growth in T Brand Studio,
enhancement of mobile ad products, reimagined print sections and the
delivery of consistently excellent journalism, we laid the groundwork
for continued digital growth.”
Comparisons
Unless otherwise noted, all comparisons are for
the fourth quarter of 2015 to the fourth quarter of 2014. Discontinued
operations in 2014 include post-sale adjustments related to the New
England Media Group (NEMG), which was sold in 2013.
This release presents certain non-GAAP financial measures, including
diluted earnings per share from continuing operations excluding
severance, non-operating retirement costs and special items (or adjusted
diluted earnings per share from continuing operations); operating profit
before depreciation, amortization, severance, non-operating retirement
costs and special items (or adjusted operating profit); and operating
costs before depreciation, amortization, severance and non-operating
retirement costs (or adjusted operating costs). The exhibits include a
discussion of management’s reasons for the presentation of these
non-GAAP financial measures and reconciliations to the most comparable
GAAP financial measures, as well as an explanation of non-operating
retirement costs.
Fourth-quarter 2015 results included the following special item:
-
A $4.4 million ($2.6 million after tax or $.02 per share) charge for a
partial withdrawal obligation under a multiemployer pension plan.
Fourth-quarter 2014 results included the following special items:
-
A $9.2 million ($5.9 million after tax or $.04 per share) impairment
charge related to the Company’s investment in a joint venture.
-
An $11.5 million ($.07 per share) income tax benefit primarily due to
a reduction in the Company’s reserve for uncertain tax positions.
The Company had severance costs of $2.7 million ($1.6 million after tax
or $.01 per share) and $9.4 million ($5.6 million after tax or $.03 per
share) in the fourth quarters of 2015 and 2014, respectively.
Results from Continuing Operations
Revenues
Total revenues for the fourth quarter of 2015 were
$444.7 million, flat compared to the same quarter in 2014. Circulation
revenues increased 1.3 percent, while advertising revenues declined 1.3
percent and other revenues were flat.
Circulation revenues rose as revenues from the Company’s digital
subscription initiatives and the 2015 increase in home-delivery prices
at The New York Times more than offset a decline in print copies sold.
Circulation revenue from the Company’s digital-only subscription
products increased 13.3 percent to $50.4 million in the fourth quarter
and 13.8 percent to $192.7 million for the full year of 2015 compared
with the fourth quarter and full year of 2014, respectively.
Paid subscribers to the Company’s digital-only subscription products
totaled approximately 1,094,000 as of the end of the fourth quarter of
2015, a net increase of 53,000 subscribers compared to the end of the
third quarter and a 20 percent increase compared to the end of the
fourth quarter of 2014.
Fourth-quarter print advertising revenue decreased 6.6 percent while
digital advertising revenue increased 10.6 percent. Digital advertising
revenue was $69.9 million, or 34.1 percent of total Company advertising
revenues, compared with $63.2 million, or 30.5 percent, in the fourth
quarter of 2014.
For the full year of 2015, print advertising revenue decreased 8.0
percent while digital advertising revenue increased 8.2 percent. Digital
advertising revenue was $197.1 million in 2015 compared with $182.2
million in 2014.
Operating Costs
Operating costs decreased 7.7 percent in the
fourth quarter of 2015 to $352.7 million from $382.3 million in the
fourth quarter of 2014. Costs declined mainly as a result of
efficiencies in print production and distribution as well as declines in
severance, depreciation, amortization and raw materials costs. Adjusted
operating costs decreased 4.1 percent to $326.9 million.
Non-operating retirement costs, which exclude special items, decreased
to $7.5 million from $11.2 million in the fourth quarter, driven by
lower pension interest expense as well as lower retiree medical costs.
The exhibits in this release include the detail of those expenses.
Raw materials costs decreased to $20.2 million from $24.4 million in the
fourth quarter due to lower newsprint prices and volume declines.
Other Data
Interest Expense, net
Interest expense, net decreased to
$8.0 million in the fourth quarter of 2015 from $12.0 million in the
fourth quarter of 2014 due to a lower level of debt outstanding as a
result of the repayment, at maturity, of the Company’s 5.0 percent
senior notes in the first quarter of 2015 and an increase in dividend
income from investments.
Income Taxes
The Company had income tax expense of $28.0
million in the fourth quarter of 2015 and $8.7 million in the fourth
quarter of 2014. The increase was primarily due to an increase in income
from continuing operations in the fourth quarter of 2015 and the
reduction in the Company’s reserve for uncertain tax positions in the
fourth quarter of 2014.
The Company had income tax expense of $33.9 million for the full year of
2015 and an income tax benefit of $3.5 million for the full year of
2014. The increase was primarily due to an increase in income from
continuing operations in 2015 and the reduction in the Company’s reserve
for uncertain tax positions in 2014.
Liquidity
As of December 27, 2015, the Company had cash and
marketable securities of approximately $904.6 million (excluding
restricted cash of approximately $28.7 million primarily to
collateralize certain workers’ compensation obligations). Total debt and
capital lease obligations were approximately $431.2 million.
Share repurchases totaled $23.9 million in the fourth quarter and $69.8
million for the full year of 2015. As of February 2, 2016, repurchases
totaled $83.0 million and $18.1 million remained under the Company’s
current repurchase authorization.
Capital Expenditures
Capital expenditures totaled
approximately $10 million in the fourth quarter of 2015 and
approximately $29 million for the full year of 2015.
Outlook
Total circulation revenues in the first quarter of
2016 are expected to increase at a rate similar to that of the fourth
quarter of 2015.
Total advertising revenues in the first quarter of 2016 are expected to
decrease between 2-4 percent compared with the first quarter of 2015.
Operating costs and adjusted operating costs are each expected to
increase in low-single digits the first quarter of 2016 compared with
the first quarter of 2015.
The Company expects the following on a pre-tax basis in 2016:
-
Depreciation and amortization: $60 million to $65 million,
-
Interest expense, net: $35 million to $40 million, and
-
Capital expenditures: approximately $45 million.
Conference Call Information
The Company’s fourth-quarter and
full-year 2015 earnings conference call will be held on Thursday,
February 4 at 11:00 a.m. E.T. To access the call, dial 877-201-0168 (in
the U.S.) or 647-788-4901 (international callers). The passcode is
10712552. 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 855-859-2056 (in the U.S.) and 404-537-3406
(international callers) beginning approximately two hours after the call
until 11:59 p.m. E.T. on Thursday, February 11. The passcode is 10712552.
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve risks and uncertainties, and actual results could 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 28, 2014. 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 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.
This press release can be downloaded from www.nytco.com
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|
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Exhibits:
|
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
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)
|
|
|
|
Fourth Quarter
|
|
Full Year
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Circulation
|
|
$
|
213,301
|
|
|
$
|
210,555
|
|
|
1.3%
|
|
$
|
845,504
|
|
|
$
|
836,822
|
|
|
1.0%
|
Advertising(a)
|
|
204,846
|
|
|
207,632
|
|
|
-1.3%
|
|
638,709
|
|
|
662,315
|
|
|
-3.6%
|
Other(b)
|
|
26,539
|
|
|
26,496
|
|
|
0.2%
|
|
95,002
|
|
|
89,391
|
|
|
6.3%
|
Total revenues
|
|
444,686
|
|
|
444,683
|
|
|
*
|
|
1,579,215
|
|
|
1,588,528
|
|
|
-0.6%
|
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs
|
|
156,372
|
|
|
165,891
|
|
|
-5.7%
|
|
617,812
|
|
|
643,995
|
|
|
-4.1%
|
Selling, general and administrative costs
|
|
180,717
|
|
|
195,549
|
|
|
-7.6%
|
|
713,837
|
|
|
761,055
|
|
|
-6.2%
|
Depreciation and amortization
|
|
15,574
|
|
|
20,819
|
|
|
-25.2%
|
|
61,597
|
|
|
79,455
|
|
|
-22.5%
|
Total operating costs
|
|
352,663
|
|
|
382,259
|
|
|
-7.7%
|
|
1,393,246
|
|
|
1,484,505
|
|
|
-6.1%
|
Early termination charge (c)
|
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
2,550
|
|
|
*
|
Pension settlement charge(d)
|
|
—
|
|
|
—
|
|
|
*
|
|
40,329
|
|
|
9,525
|
|
|
*
|
Multiemployer pension withdrawal expense(e)
|
|
4,358
|
|
|
—
|
|
|
*
|
|
9,055
|
|
|
—
|
|
|
*
|
Operating profit
|
|
87,665
|
|
|
62,424
|
|
|
40.4%
|
|
136,585
|
|
|
91,948
|
|
|
48.5%
|
Loss from joint ventures(f)
|
|
(25
|
)
|
|
(7,845
|
)
|
|
-99.7%
|
|
(783
|
)
|
|
(8,368
|
)
|
|
-90.6%
|
Interest expense, net
|
|
7,955
|
|
|
11,970
|
|
|
-33.5%
|
|
39,050
|
|
|
53,730
|
|
|
-27.3%
|
Income from continuing operations before income taxes
|
|
79,685
|
|
|
42,609
|
|
|
87.0%
|
|
96,752
|
|
|
29,850
|
|
|
*
|
Income tax expense/(benefit)
|
|
28,006
|
|
|
8,685
|
|
|
*
|
|
33,910
|
|
|
(3,541
|
)
|
|
*
|
Income from continuing operations
|
|
51,679
|
|
|
33,924
|
|
|
52.3%
|
|
62,842
|
|
|
33,391
|
|
|
88.2%
|
Loss from discontinued operations, net of income taxes(g)
|
|
—
|
|
|
(92
|
)
|
|
*
|
|
—
|
|
|
(1,086
|
)
|
|
*
|
Net income
|
|
51,679
|
|
|
33,832
|
|
|
52.8%
|
|
62,842
|
|
|
32,305
|
|
|
94.5%
|
Net loss attributable to the noncontrolling interest
|
|
14
|
|
|
1,043
|
|
|
-98.7%
|
|
404
|
|
|
1,002
|
|
|
-59.7%
|
Net income attributable to The New York Times Company common
stockholders
|
|
$
|
51,693
|
|
|
$
|
34,875
|
|
|
48.2%
|
|
$
|
63,246
|
|
|
$
|
33,307
|
|
|
89.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to The New York Times Company common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
51,693
|
|
|
$
|
34,967
|
|
|
47.8%
|
|
$
|
63,246
|
|
|
$
|
34,393
|
|
|
83.9%
|
Loss from discontinued operations, net of income taxes
|
|
—
|
|
|
(92
|
)
|
|
*
|
|
—
|
|
|
(1,086
|
)
|
|
*
|
Net income
|
|
$
|
51,693
|
|
|
$
|
34,875
|
|
|
48.2%
|
|
$
|
63,246
|
|
|
$
|
33,307
|
|
|
89.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
162,179
|
|
|
150,779
|
|
|
7.6%
|
|
164,390
|
|
|
150,673
|
|
|
9.1%
|
Diluted
|
|
164,128
|
|
|
160,455
|
|
|
2.3%
|
|
166,423
|
|
|
161,323
|
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to The New York Times
Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.32
|
|
|
$
|
0.23
|
|
|
39.1%
|
|
$
|
0.38
|
|
|
$
|
0.23
|
|
|
65.2%
|
Loss from discontinued operations, net of income taxes
|
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
(0.01
|
)
|
|
*
|
Net income
|
|
$
|
0.32
|
|
|
$
|
0.23
|
|
|
39.1%
|
|
$
|
0.38
|
|
|
$
|
0.22
|
|
|
72.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to The New York Times
Company common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.31
|
|
|
$
|
0.22
|
|
|
40.9%
|
|
$
|
0.38
|
|
|
$
|
0.21
|
|
|
81.0%
|
Loss from discontinued operations, net of income taxes
|
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
(0.01
|
)
|
|
*
|
Net income
|
|
$
|
0.31
|
|
|
$
|
0.22
|
|
|
40.9%
|
|
$
|
0.38
|
|
|
$
|
0.20
|
|
|
90.0%
|
Dividends declared per share
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
*
|
|
$
|
0.16
|
|
|
$
|
0.16
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents a change equal to or in excess of 100% or not
meaningful.
|
See footnotes pages for additional information.
|
|
THE NEW YORK TIMES COMPANY FOOTNOTES (Dollars
in thousands)
|
|
(a)
|
|
The following table summarizes the fourth-quarter and full-year 2015
advertising revenues by category:
|
|
|
|
|
2015
|
|
|
|
|
Fourth Quarter
|
|
% Change
vs. 2014
|
|
Full Year
|
|
% Change
vs. 2014
|
|
|
Display
|
|
$
|
185,282
|
|
-3.6%
|
|
$
|
579,153
|
|
-4.6%
|
|
|
Classified
|
|
8,489
|
|
-0.3%
|
|
34,544
|
|
-5.8%
|
|
|
Other advertising
|
|
11,075
|
|
58.6%
|
|
25,012
|
|
33.1%
|
|
|
Total advertising
|
|
$
|
204,846
|
|
-1.3%
|
|
$
|
638,709
|
|
-3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
Other revenues consist primarily of revenues from news
services/syndication, digital archives, rental income, NYT Live
business, e-commerce and the Crossword product.
|
|
(c)
|
|
In the first quarter of 2014, the Company recorded a $2.6 million
charge for the early termination of a distribution agreement.
|
|
(d)
|
|
In the first quarter of 2015 and the second quarter of 2014, the
Company recorded pension settlement charges of $40.3 million and
$9.5 million, respectively, in connection with lump sum payment
offers to certain former employees.
|
|
(e)
|
|
During 2015, the Company recorded charges for partial withdrawal
obligations under a multiemployer pension plan of $4.7 million in
the first quarter of 2015 and $4.4 million in the fourth quarter
of 2015.
|
|
(f)
|
|
Includes an impairment charge related to an investment in a joint
venture that was recorded in the fourth quarter of 2014.
|
|
(g)
|
|
Discontinued operations in 2014 include post-sale adjustments
related to NEMG, which was sold in 2013.
|
|
THE NEW YORK TIMES COMPANY RECONCILIATION OF NON-GAAP
INFORMATION (Dollars in thousands, except per share data)
|
|
In this release, the Company has referred to non-GAAP financial
information with respect to diluted earnings per share from
continuing operations excluding severance, non-operating retirement
costs and special items (or adjusted diluted earnings per share from
continuing operations); operating profit before depreciation,
amortization, severance, non-operating retirement costs and special
items (or adjusted operating profit); and operating costs before
depreciation, amortization, severance and non-operating retirement
costs (or adjusted operating costs). 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.
|
|
Adjusted diluted earnings per share 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. Adjusted operating
profit is useful in evaluating the ongoing performance of the
Company’s business 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 non-operating retirement
costs. 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.
|
|
Non-operating retirement costs include interest cost, expected
return on plan assets and amortization of actuarial gains and loss
components of pension expense; interest cost and amortization of
actuarial gains and loss components of retiree medical expense; and
all expenses associated with multiemployer pension plan withdrawal
obligations. These non-operating retirement costs are primarily tied
to financial market performance and changes in market interest rates
and investment performance. Non-operating retirement costs do not
include service costs and amortization of prior service costs for
pension and retiree medical benefits, which management believes
reflect the ongoing service-related costs of providing pension and
retiree medical benefits to its employees. Management considers
non-operating retirement costs to be outside the performance of the
business and believes that presenting operating results excluding
non-operating retirement costs, in addition to the Company’s GAAP
operating results, provides increased transparency and a better
understanding of the underlying trends in the Company’s operating
business performance.
|
|
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, as well as details on the components of non-operating
retirement costs, are set out in the tables below.
|
|
|
Reconciliation of diluted earnings per
share from continuing operations excluding severance,
non-operating retirement costs and special items (or adjusted
diluted earnings per share from continuing operations)
|
|
|
|
Fourth Quarter
|
|
Full Year
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
Diluted earnings per share from continuing operations
|
|
|
$
|
0.31
|
|
|
$
|
0.22
|
|
|
40.9%
|
|
$
|
0.38
|
|
|
$
|
0.21
|
|
|
81.0%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
|
0.01
|
|
|
0.03
|
|
|
-66.7%
|
|
0.03
|
|
|
0.13
|
|
|
-76.9%
|
Non-operating retirement costs
|
|
|
0.03
|
|
|
0.04
|
|
|
-25.0%
|
|
0.12
|
|
|
0.13
|
|
|
-7.7%
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Early termination charge
|
|
|
—
|
|
|
—
|
|
|
*
|
|
—
|
|
|
0.01
|
|
|
*
|
Reduction in uncertain tax positions
|
|
|
—
|
|
|
(0.07
|
)
|
|
*
|
|
—
|
|
|
(0.13
|
)
|
|
*
|
Pension settlement charge
|
|
|
—
|
|
|
—
|
|
|
*
|
|
0.14
|
|
|
0.04
|
|
|
*
|
Multiemployer pension plan withdrawal expense
|
|
|
0.02
|
|
|
—
|
|
|
*
|
|
0.03
|
|
|
—
|
|
|
*
|
Impairment charge
|
|
|
—
|
|
|
0.04
|
|
|
*
|
|
—
|
|
|
0.04
|
|
|
*
|
Adjusted diluted earnings per share from continuing operations (1)
|
|
|
$
|
0.37
|
|
|
$
|
0.26
|
|
|
42.3%
|
|
$
|
0.71
|
|
|
$
|
0.43
|
|
|
65.1%
|
(1) Amounts may not add due to rounding.
|
* Represents a change equal to or in excess of 100% or not
meaningful
|
|
THE NEW YORK TIMES COMPANY RECONCILIATION OF NON-GAAP
INFORMATION (continued) (Dollars in thousands)
|
|
Reconciliation of operating profit before
depreciation & amortization, severance, non-operating retirement
costs and special items (or adjusted operating profit)
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Full Year
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
Operating profit
|
$
|
87,665
|
|
$
|
62,424
|
|
40.4%
|
|
$
|
136,585
|
|
$
|
91,948
|
|
48.5%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
15,574
|
|
20,819
|
|
-25.2%
|
|
61,597
|
|
79,455
|
|
-22.5%
|
Severance
|
2,686
|
|
9,420
|
|
-71.5%
|
|
7,035
|
|
36,082
|
|
-80.5%
|
Non-operating retirement costs
|
7,454
|
|
11,190
|
|
-33.4%
|
|
34,383
|
|
36,697
|
|
-6.3%
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
Early termination charge
|
—
|
|
—
|
|
*
|
|
—
|
|
2,550
|
|
*
|
Pension settlement charge
|
—
|
|
—
|
|
*
|
|
40,329
|
|
9,525
|
|
*
|
Multiemployer pension plan withdrawal expense
|
4,358
|
|
—
|
|
*
|
|
9,055
|
|
—
|
|
*
|
Adjusted operating profit
|
$
|
117,737
|
|
$
|
103,853
|
|
13.4%
|
|
$
|
288,984
|
|
$
|
256,257
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating costs before
depreciation & amortization, severance and non-operating
retirement costs (or adjusted operating costs)
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Full Year
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
Operating costs
|
$
|
352,663
|
|
$
|
382,259
|
|
-7.7%
|
|
$
|
1,393,246
|
|
$
|
1,484,505
|
|
-6.1%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
15,574
|
|
20,819
|
|
-25.2%
|
|
61,597
|
|
79,455
|
|
-22.5%
|
Severance
|
2,686
|
|
9,420
|
|
-71.5%
|
|
7,035
|
|
36,082
|
|
-80.5%
|
Non-operating retirement costs
|
7,454
|
|
11,190
|
|
-33.4%
|
|
34,383
|
|
36,697
|
|
-6.3%
|
Adjusted operating costs
|
$
|
326,949
|
|
$
|
340,830
|
|
-4.1%
|
|
$
|
1,290,231
|
|
$
|
1,332,271
|
|
-3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of non-operating retirement
costs (1)
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Full Year
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
Pension:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest cost
|
|
$
|
21,124
|
|
|
$
|
23,593
|
|
|
-10.5%
|
|
$
|
84,596
|
|
|
$
|
94,897
|
|
|
-10.9%
|
Expected return on plan assets
|
|
(28,822
|
)
|
|
(28,460
|
)
|
|
1.3%
|
|
(115,261
|
)
|
|
(113,839
|
)
|
|
1.2%
|
Amortization and other costs
|
|
9,358
|
|
|
8,297
|
|
|
12.8%
|
|
41,523
|
|
|
31,338
|
|
|
32.5%
|
Non-operating pension costs
|
|
1,660
|
|
|
3,430
|
|
|
-51.6%
|
|
10,858
|
|
|
12,396
|
|
|
-12.4%
|
Other postretirement benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest cost
|
|
729
|
|
|
772
|
|
|
-5.6%
|
|
2,794
|
|
|
3,722
|
|
|
-24.9%
|
Amortization and other costs
|
|
1,288
|
|
|
3,694
|
|
|
-65.1%
|
|
5,197
|
|
|
7,299
|
|
|
-28.8%
|
Non-operating other postretirement benefits costs
|
|
2,017
|
|
|
4,466
|
|
|
-54.8%
|
|
7,991
|
|
|
11,021
|
|
|
-27.5%
|
Expenses associated with multiemployer pension plan withdrawal
obligations
|
|
3,777
|
|
|
3,294
|
|
|
14.7%
|
|
15,534
|
|
|
13,280
|
|
|
17.0%
|
Total non-operating retirement costs
|
|
$
|
7,454
|
|
|
$
|
11,190
|
|
|
-33.4%
|
|
$
|
34,383
|
|
|
$
|
36,697
|
|
|
-6.3%
|
(1) Components of non-operating retirement
costs do not include special items
|
* Represents a change equal to or in excess of 100% or not
meaningful.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160204005787/en/
Copyright Business Wire 2016