NEW YORK | 13-1102020 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Class A Common Stock | 148,943,075 | shares | |||
Class B Common Stock | 818,061 | shares |
ITEM NO. | ||||||
Financial Information | ||||||
Item | Financial Statements | |||||
Condensed Consolidated Balance Sheets as of September 29, 2013 (unaudited) and December 30, 2012 | ||||||
Condensed Consolidated Statements of Operations (unaudited) for the quarter and nine months ended September 29, 2013 and September 23, 2012 | ||||||
Condensed Consolidated Statements of Comprehensive Income/(Loss) (unaudited) for the quarter and nine months ended September 29, 2013 and September 23, 2012 | ||||||
Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 29, 2013 and September 23, 2012 | ||||||
Notes to the Condensed Consolidated Financial Statements | ||||||
Item | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||
Item | Quantitative and Qualitative Disclosures about Market Risk | |||||
Item | Controls and Procedures | |||||
Other Information | ||||||
Item | 1 | Legal Proceedings | ||||
Item | 1A | Risk Factors | ||||
Item | 2 | Unregistered Sales of Equity Securities and Use of Proceeds | ||||
Item | 6 | Exhibits |
September 29, 2013 | December 30, 2012 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 390,008 | $ | 820,490 | |||
Short-term marketable securities | 382,795 | 134,820 | |||||
Accounts receivable (net of allowances of $15,153 in 2013 and $15,452 in 2012) | 164,282 | 197,589 | |||||
Inventories: | |||||||
Newsprint and magazine paper | 7,184 | 5,609 | |||||
Other inventory | 1,318 | 1,728 | |||||
Total inventories | 8,502 | 7,337 | |||||
Deferred income taxes | 58,214 | 58,214 | |||||
Other current assets | 46,522 | 42,067 | |||||
Assets held for sale | 97,640 | 137,050 | |||||
Total current assets | 1,147,963 | 1,397,567 | |||||
Other assets | |||||||
Long-term marketable securities | 165,378 | 4,444 | |||||
Investments in joint ventures | 36,171 | 40,872 | |||||
Property, plant and equipment (less accumulated depreciation and amortization of $852,526 in 2013 and $807,976 in 2012) | 721,171 | 773,469 | |||||
Goodwill | 124,524 | 122,691 | |||||
Deferred income taxes | 267,933 | 280,523 | |||||
Miscellaneous assets | 165,130 | 166,214 | |||||
Total assets | $ | 2,628,270 | $ | 2,785,780 |
September 29, 2013 | December 30, 2012 | ||||||
(Unaudited) | |||||||
Liabilities and stockholders’ equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 83,980 | $ | 88,990 | |||
Accrued payroll and other related liabilities | 70,651 | 86,772 | |||||
Unexpired subscriptions | 58,006 | 57,336 | |||||
Accrued expenses and other | 121,284 | 118,753 | |||||
Accrued income taxes | 131 | 38,932 | |||||
Liabilities held for sale | 30,963 | 32,373 | |||||
Total current liabilities | 365,015 | 423,156 | |||||
Other liabilities | |||||||
Long-term debt and capital lease obligations | 682,983 | 696,752 | |||||
Pension benefits obligation | 642,612 | 737,889 | |||||
Postretirement benefits obligation | 106,290 | 110,347 | |||||
Other | 145,289 | 152,000 | |||||
Total other liabilities | 1,577,174 | 1,696,988 | |||||
Stockholders’ equity | |||||||
Common stock of $.10 par value: | |||||||
Class A – authorized 300,000,000 shares; issued: 2013 – 151,038,187; 2012 – 150,270,975 (including treasury shares: 2013 – 2,253,155; 2012 – 2,483,537) | 15,109 | 15,027 | |||||
Class B – convertible – authorized and issued shares: 2013 – 818,061; 2012 – 818,385 (including treasury shares: 2013 – none; 2012 – none) | 82 | 82 | |||||
Additional paid-in capital | 30,355 | 25,610 | |||||
Retained earnings | 1,223,945 | 1,230,450 | |||||
Common stock held in treasury, at cost | (88,062 | ) | (96,278 | ) | |||
Accumulated other comprehensive loss, net of income taxes: | |||||||
Foreign currency translation adjustments | 12,107 | 11,327 | |||||
Unrealized gain/(loss) on available-for-sale security | 114 | (431 | ) | ||||
Funded status of benefit plans | (510,576 | ) | (523,462 | ) | |||
Total accumulated other comprehensive loss, net of income taxes | (498,355 | ) | (512,566 | ) | |||
Total New York Times Company stockholders’ equity | 683,074 | 662,325 | |||||
Noncontrolling interest | 3,007 | 3,311 | |||||
Total stockholders’ equity | 686,081 | 665,636 | |||||
Total liabilities and stockholders’ equity | $ | 2,628,270 | $ | 2,785,780 |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||
September 29, 2013 | September 23, 2012 | September 29, 2013 | September 23, 2012 | |||||||||||||
(13 weeks) | (39 weeks) | |||||||||||||||
Revenues | ||||||||||||||||
Circulation | $ | 204,156 | $ | 194,739 | $ | 616,603 | $ | 578,914 | ||||||||
Advertising | 138,018 | 140,880 | 454,595 | 485,368 | ||||||||||||
Other | 19,564 | 19,718 | 62,172 | 62,945 | ||||||||||||
Total revenues | 361,738 | 355,337 | 1,133,370 | 1,127,227 | ||||||||||||
Operating costs | ||||||||||||||||
Production costs: | ||||||||||||||||
Raw materials | 21,064 | 24,343 | 66,913 | 75,963 | ||||||||||||
Wages and benefits | 82,387 | 80,696 | 247,199 | 242,742 | ||||||||||||
Other | 49,144 | 52,331 | 148,286 | 155,173 | ||||||||||||
Total production costs | 152,595 | 157,370 | 462,398 | 473,878 | ||||||||||||
Selling, general and administrative costs | 169,824 | 169,459 | 519,610 | 524,611 | ||||||||||||
Depreciation and amortization | 20,293 | 19,594 | 57,981 | 60,488 | ||||||||||||
Total operating costs | 342,712 | 346,423 | 1,039,989 | 1,058,977 | ||||||||||||
Pension withdrawal expense | 6,171 | — | 6,171 | — | ||||||||||||
Operating profit | 12,855 | 8,914 | 87,210 | 68,250 | ||||||||||||
Gain on sale of investment | — | — | — | 55,645 | ||||||||||||
Impairment of investments | — | 600 | — | 5,500 | ||||||||||||
(Loss)/income from joint ventures | (123 | ) | 1,010 | (3,398 | ) | 2,089 | ||||||||||
Interest expense, net | 15,454 | 15,490 | 44,169 | 46,406 | ||||||||||||
(Loss)/income from continuing operations before income taxes | (2,722 | ) | (6,166 | ) | 39,643 | 74,078 | ||||||||||
Income tax expense/(benefit) | 2,578 | (3,187 | ) | 21,473 | 28,446 | |||||||||||
(Loss)/income from continuing operations | (5,300 | ) | (2,979 | ) | 18,170 | 45,632 | ||||||||||
(Loss)/income from discontinued operations, net of income taxes | (18,987 | ) | 5,703 | (18,995 | ) | (88,007 | ) | |||||||||
Net (loss)/income | (24,287 | ) | 2,724 | (825 | ) | (42,375 | ) | |||||||||
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 | ) | |||||
Amounts attributable to The New York Times Company common stockholders: | ||||||||||||||||
(Loss)/income from continuing operations | $ | (5,239 | ) | $ | (2,958 | ) | $ | 18,474 | $ | 45,733 | ||||||
(Loss)/income from discontinued operations, net of income taxes | (18,987 | ) | 5,703 | (18,995 | ) | (88,007 | ) | |||||||||
Net (loss)/income | $ | (24,226 | ) | $ | 2,745 | $ | (521 | ) | $ | (42,274 | ) | |||||
Average number of common shares outstanding: | ||||||||||||||||
Basic | 150,033 | 148,254 | 149,724 | 148,042 | ||||||||||||
Diluted | 150,033 | 148,254 | 156,460 | 151,762 | ||||||||||||
Basic earnings/(loss) per share attributable to The New York Times Company common stockholders: | ||||||||||||||||
(Loss)/income from continuing operations | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.12 | $ | 0.31 | ||||||
(Loss)/income from discontinued operations, net of income taxes | (0.13 | ) | 0.04 | (0.13 | ) | (0.59 | ) | |||||||||
Net (loss)/income | $ | (0.16 | ) | $ | 0.02 | $ | (0.01 | ) | $ | (0.28 | ) | |||||
Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders: | ||||||||||||||||
(Loss)/income from continuing operations | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.12 | $ | 0.30 | ||||||
(Loss)/income from discontinued operations, net of income taxes | (0.13 | ) | 0.04 | (0.12 | ) | (0.58 | ) | |||||||||
Net (loss)/income | $ | (0.16 | ) | $ | 0.02 | $ | — | $ | (0.28 | ) | ||||||
Dividends declared per share | $ | 0.04 | $ | — | $ | 0.04 | $ | — |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||
September 29, 2013 | September 23, 2012 | September 29, 2013 | September 23, 2012 | |||||||||||||
(13 weeks) | (39 weeks) | |||||||||||||||
Net (loss)/income | $ | (24,287 | ) | $ | 2,724 | $ | (825 | ) | $ | (42,375 | ) | |||||
Other comprehensive income/(loss), before tax: | ||||||||||||||||
Foreign currency translation adjustments | 3,261 | 3,251 | 1,497 | (1,148 | ) | |||||||||||
Unrealized derivative gain on cash-flow hedge of equity method investment | — | — | — | 1,143 | ||||||||||||
Unrealized gain/(loss) on available-for-sale security | 1,022 | (2,338 | ) | 908 | 1,251 | |||||||||||
Pension and postretirement benefits obligation | 6,597 | 5,817 | 21,454 | 1,356 | ||||||||||||
Other comprehensive income, before tax | 10,880 | 6,730 | 23,859 | 2,602 | ||||||||||||
Income tax expense | 4,196 | 2,539 | 9,648 | 732 | ||||||||||||
Other comprehensive income, net of tax | 6,684 | 4,191 | 14,211 | 1,870 | ||||||||||||
Comprehensive (loss)/income | (17,603 | ) | 6,915 | 13,386 | (40,505 | ) | ||||||||||
Comprehensive loss attributable to the noncontrolling interest | 61 | 21 | 304 | 101 | ||||||||||||
Comprehensive (loss)/income attributable to The New York Times Company common stockholders | $ | (17,542 | ) | $ | 6,936 | $ | 13,690 | $ | (40,404 | ) |
For the Nine Months Ended | |||||||
September 29, 2013 | September 23, 2012 | ||||||
(39 weeks) | |||||||
Cash flows from operating activities | |||||||
Net loss | $ | (825 | ) | $ | (42,375 | ) | |
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities: | |||||||
Impairment of assets | 34,300 | 194,732 | |||||
Pension withdrawal expense | 14,168 | — | |||||
Gain on sale of investment | — | (55,645 | ) | ||||
Impairment of investments | — | 5,500 | |||||
Loss on sale of Regional Media Group | — | 4,717 | |||||
Depreciation and amortization | 64,799 | 82,538 | |||||
Stock-based compensation expense | 6,905 | 5,618 | |||||
Undistributed loss of equity method investments | 5,004 | 2,418 | |||||
Long-term retirement benefit obligations | (92,311 | ) | (33,650 | ) | |||
Deferred income taxes | 4,124 | (63,404 | ) | ||||
Other–net | 20,550 | 8,862 | |||||
Changes in operating assets and liabilities–net of dispositions: | |||||||
Accounts receivable–net | 40,261 | 49,218 | |||||
Inventories | (56 | ) | 3,311 | ||||
Other current assets | 4,871 | (1,575 | ) | ||||
Accounts payable and other liabilities | (92,070 | ) | (39,635 | ) | |||
Unexpired subscriptions | 350 | 3,639 | |||||
Net cash provided by operating activities | 10,070 | 124,269 | |||||
Cash flows from investing activities | |||||||
Purchases of marketable securities | (697,572 | ) | (439,700 | ) | |||
Maturities of marketable securities | 283,150 | 264,806 | |||||
Capital expenditures | (11,660 | ) | (29,978 | ) | |||
Change in restricted cash | 2,000 | 3,287 | |||||
(Purchase of)/proceeds from investments–net | (499 | ) | 96,431 | ||||
Proceeds from sale of Regional Media Group | — | 140,044 | |||||
Net cash (used in)/provided by investing activities | (424,581 | ) | 34,890 | ||||
Cash flows from financing activities | |||||||
Long-term obligations: | |||||||
Repayment of debt and capital lease obligations | (19,825 | ) | (432 | ) | |||
Capital shares: | |||||||
Issuances from stock option exercises | 3,623 | 536 | |||||
Net cash (used in)/provided by financing activities | (16,202 | ) | 104 | ||||
(Decrease)/increase in cash and cash equivalents | (430,713 | ) | 159,263 | ||||
Effect of exchange rate changes on cash and cash equivalents | 231 | (40 | ) | ||||
Cash and cash equivalents at the beginning of the year | 820,490 | 175,151 | |||||
Cash and cash equivalents at the end of the quarter | $ | 390,008 | $ | 334,374 |
(In thousands) | September 29, 2013 | December 30, 2012 | ||||||
Short-term marketable securities | ||||||||
Marketable debt securities | ||||||||
U.S Treasury securities | $ | 143,524 | $ | 124,831 | ||||
Corporate debt securities | 79,331 | — | ||||||
U.S. agency securities | 51,145 | — | ||||||
Municipal securities | 45,495 | — | ||||||
Certificates of deposit | 32,523 | — | ||||||
Commercial paper | 30,777 | 9,989 | ||||||
Total short-term marketable securities | $ | 382,795 | $ | 134,820 | ||||
Long-term marketable securities | ||||||||
Marketable debt securities | ||||||||
Corporate debt securities | $ | 100,129 | $ | — | ||||
U.S. agency securities | 53,537 | — | ||||||
Municipal securities | 7,018 | — | ||||||
Total | 160,684 | — | ||||||
Marketable equity security | ||||||||
Available-for-sale security | 4,694 | 4,444 | ||||||
Total long-term marketable securities | $ | 165,378 | $ | 4,444 |
(In thousands) | Total Company | |||
Balance as of December 26, 2011 | ||||
Goodwill | $ | 927,909 | ||
Accumulated impairment losses | (805,218 | ) | ||
Balance as of December 30, 2012 | 122,691 | |||
Goodwill transferred to held for sale (1) | — | |||
Foreign currency translation | 1,833 | |||
Balance as of September 29, 2013 | $ | 124,524 |
Company | Approximate % Ownership | ||
Donohue Malbaie Inc. | 49 | % | |
Madison Paper Industries | 40 | % |
(In thousands) | Coupon Rate | September 29, 2013 | December 30, 2012 | ||||||||
Senior notes due 2015 | 5.0 | % | $ | 244,048 | $ | 244,022 | |||||
Senior notes due 2016 | 6.625 | % | 204,924 | 221,523 | |||||||
Option to repurchase ownership interest in headquarters building in 2019 | 227,300 | 224,510 | |||||||||
Total debt | 676,272 | 690,055 | |||||||||
Short-term capital lease obligations(1) | 47 | 123 | |||||||||
Long-term capital lease obligations | 6,711 | 6,697 | |||||||||
Total capital lease obligations | 6,758 | 6,820 | |||||||||
Total debt and capital lease obligations | $ | 683,030 | $ | 696,875 |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||
(In thousands) | September 29, 2013 | September 23, 2012 | September 29, 2013 | September 23, 2012 | ||||||||||||
Cash interest expense | $ | 14,494 | $ | 14,453 | $ | 41,635 | $ | 43,249 | ||||||||
Non-cash amortization of discount on debt | 1,355 | 1,129 | 3,622 | 3,386 | ||||||||||||
Capitalized interest | — | — | — | (14 | ) | |||||||||||
Interest income | (395 | ) | (92 | ) | (1,088 | ) | (215 | ) | ||||||||
Total interest expense, net | $ | 15,454 | $ | 15,490 | $ | 44,169 | $ | 46,406 |
(In thousands) | September 29, 2013 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Available-for-sale security | $ | 4,694 | $ | 4,694 | $ | — | $ | — | ||||||||
Liabilities | ||||||||||||||||
Deferred compensation | $ | 48,497 | $ | 48,497 | $ | — | $ | — |
(In thousands) | December 30, 2012 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Available-for-sale security | $ | 4,444 | $ | 4,444 | $ | — | $ | — | ||||||||
Liabilities | ||||||||||||||||
Deferred compensation | $ | 52,882 | $ | 52,882 | $ | — | $ | — |
(In thousands) | Carrying Value | Fair Value Measured and Recorded Using | Impairment Losses | |||||||||||||||||
September 29, 2013 | Level 1 | Level 2 | Level 3 | 2013 | ||||||||||||||||
Property, plant and equipment (1) | $ | 55,056 | $ | — | $ | — | $ | 55,056 | $ | 34,300 |
(1) | Impairment losses related to the New England Media Group are included within “(Loss)/income from discontinued operations, net of income taxes” in the Condensed Consolidated Statements of Operations for the quarter and nine months ended September 29, 2013. See Note 11 for additional information. |
For the Quarters Ended | ||||||||||||||||||||||||
September 29, 2013 | September 23, 2012 | |||||||||||||||||||||||
(In thousands) | Qualified Plans | Non- Qualified Plans | All Plans | Qualified Plans | Non- Qualified Plans | All Plans | ||||||||||||||||||
Service cost | $ | 2,323 | $ | 256 | $ | 2,579 | $ | 2,894 | $ | 377 | $ | 3,271 | ||||||||||||
Interest cost | 19,284 | 2,643 | 21,927 | 23,592 | 3,122 | 26,714 | ||||||||||||||||||
Expected return on plan assets | (31,063 | ) | — | (31,063 | ) | (29,614 | ) | — | (29,614 | ) | ||||||||||||||
Amortization of prior service (credit)/cost | (486 | ) | — | (486 | ) | 201 | — | 201 | ||||||||||||||||
Recognized actuarial loss | 8,442 | 1,312 | 9,754 | 7,229 | 1,122 | 8,351 | ||||||||||||||||||
Net periodic pension (income)/cost | $ | (1,500 | ) | $ | 4,211 | $ | 2,711 | $ | 4,302 | $ | 4,621 | $ | 8,923 |
For the Nine Months Ended | ||||||||||||||||||||||||
September 29, 2013 | September 23, 2012 | |||||||||||||||||||||||
(In thousands) | Qualified Plans | Non- Qualified Plans | All Plans | Qualified Plans | Non- Qualified Plans | All Plans | ||||||||||||||||||
Service cost | $ | 6,968 | $ | 768 | $ | 7,736 | $ | 8,794 | $ | 1,131 | $ | 9,925 | ||||||||||||
Interest cost | 57,858 | 7,929 | 65,787 | 70,832 | 9,366 | 80,198 | ||||||||||||||||||
Expected return on plan assets | (93,188 | ) | — | (93,188 | ) | (88,805 | ) | — | (88,805 | ) | ||||||||||||||
Amortization of prior service (credit)/cost | (1,459 | ) | — | (1,459 | ) | 603 | — | 603 | ||||||||||||||||
Recognized actuarial loss | 25,327 | 3,935 | 29,262 | 21,681 | 3,367 | 25,048 | ||||||||||||||||||
Net periodic pension (income)/cost | $ | (4,494 | ) | $ | 12,632 | $ | 8,138 | $ | 13,105 | $ | 13,864 | $ | 26,969 |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||
(In thousands) | September 29, 2013 | September 23, 2012 | September 29, 2013 | September 23, 2012 | ||||||||||||
Service cost | $ | 285 | $ | 239 | $ | 855 | $ | 717 | ||||||||
Interest cost | 1,009 | 1,246 | 3,027 | 3,738 | ||||||||||||
Amortization of prior service credit | (3,693 | ) | (3,778 | ) | (11,078 | ) | (11,334 | ) | ||||||||
Recognized actuarial loss | 1,022 | 832 | 3,066 | 2,496 | ||||||||||||
Net periodic postretirement benefit income | $ | (1,377 | ) | $ | (1,461 | ) | $ | (4,130 | ) | $ | (4,383 | ) |
For the Quarters Ended | ||||||||||||||||||||||||||||||||
September 29, 2013 | September 23, 2012 | |||||||||||||||||||||||||||||||
(In thousands) | 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(1) | 7,997 | — | — | 7,997 | — | — | — | — | ||||||||||||||||||||||||
Impairment 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)/income from discontinued operations, net of income taxes | $ | (18,987 | ) | $ | — | $ | — | $ | (18,987 | ) | $ | (323 | ) | $ | 6,026 | $ | — | $ | 5,703 |
(1) | The pension withdrawal expense related to estimated charges for complete or partial withdrawal obligations under multiemployer pension plans triggered by the sale of the New England Media Group. |
For the Nine Months Ended | ||||||||||||||||||||||||||||||||
September 29, 2013 | September 23, 2012 | |||||||||||||||||||||||||||||||
(In thousands) | 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(1) | 7,997 | — | — | 7,997 | — | — | — | — | ||||||||||||||||||||||||
Impairment of assets(2) | 34,300 | — | — | 34,300 | — | 194,732 | — | 194,732 | ||||||||||||||||||||||||
(Loss)/income 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 expense/(benefit) | (16,858 | ) | — | — | (16,858 | ) | 391 | (60,065 | ) | (736 | ) | (60,410 | ) | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | (18,995 | ) | — | — | (18,995 | ) | (1,735 | ) | (110,837 | ) | (1,166 | ) | (113,738 | ) | ||||||||||||||||||
Gain/(loss) on sale, net of income taxes | ||||||||||||||||||||||||||||||||
Loss on sale | — | — | — | — | — | — | (4,717 | ) | (4,717 | ) | ||||||||||||||||||||||
Income tax benefit(3) | — | — | — | — | — | — | (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 | ) |
(1) | The pension withdrawal expense related to estimated charges for complete or partial withdrawal obligations under multiemployer pension plans triggered by the sale of the New England Media Group. |
(2) | Included in the impairment of assets in 2012 is the impairment of goodwill that related to the About Group for the nine months ended September 23, 2012. |
(3) | 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. |
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||||||||||
(In thousands) | New England Media Group | About Group | Regional Media Group | Total | New England Media Group | About Group | Regional Media Group | Total | ||||||||||||||||||||||||
Accounts receivable, net | $ | 33,389 | $ | — | $ | — | $ | 33,389 | $ | 40,343 | $ | — | $ | — | $ | 40,343 | ||||||||||||||||
Inventories | 1,970 | — | — | 1,970 | 3,078 | — | — | 3,078 | ||||||||||||||||||||||||
Property, plant and equipment, net | 55,056 | — | — | 55,056 | 86,917 | — | — | 86,917 | ||||||||||||||||||||||||
Other assets | 7,225 | — | — | 7,225 | 6,712 | — | — | 6,712 | ||||||||||||||||||||||||
Total assets | 97,640 | — | — | 97,640 | 137,050 | — | — | 137,050 | ||||||||||||||||||||||||
Total liabilities | 30,963 | — | — | 30,963 | 32,373 | — | — | 32,373 | ||||||||||||||||||||||||
Net liabilities | $ | 66,677 | $ | — | $ | — | $ | 66,677 | $ | 104,677 | $ | — | $ | — | $ | 104,677 |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||
(In thousands, except per share data) | September 29, 2013 | September 23, 2012 | September 29, 2013 | September 23, 2012 | ||||||||||||
Amounts attributable to The New York Times Company common stockholders: | ||||||||||||||||
(Loss)/income from continuing operations | $ | (5,239 | ) | $ | (2,958 | ) | $ | 18,474 | $ | 45,733 | ||||||
(Loss)/income from discontinued operations, net of income taxes | (18,987 | ) | 5,703 | (18,995 | ) | (88,007 | ) | |||||||||
Net (loss)/income | $ | (24,226 | ) | $ | 2,745 | $ | (521 | ) | $ | (42,274 | ) | |||||
Average number of common shares outstanding–Basic | 150,033 | 148,254 | 149,724 | 148,042 | ||||||||||||
Incremental shares for assumed exercise of securities | — | — | 6,736 | 3,720 | ||||||||||||
Average number of common shares outstanding–Diluted | 150,033 | 148,254 | 156,460 | 151,762 | ||||||||||||
Basic earnings/(loss) per share attributable to The New York Times Company common stockholders: | ||||||||||||||||
(Loss)/income from continuing operations | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.12 | $ | 0.31 | ||||||
(Loss)/income from discontinued operations, net of income taxes | (0.13 | ) | 0.04 | (0.13 | ) | (0.59 | ) | |||||||||
Net (loss)/income–Basic | $ | (0.16 | ) | $ | 0.02 | $ | (0.01 | ) | $ | (0.28 | ) | |||||
Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders: | ||||||||||||||||
(Loss)/income from continuing operations | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.12 | $ | 0.30 | ||||||
(Loss)/income from discontinued operations, net of income taxes | (0.13 | ) | 0.04 | (0.12 | ) | (0.58 | ) | |||||||||
Net (loss)/income–Diluted | $ | (0.16 | ) | $ | 0.02 | $ | — | $ | (0.28 | ) |
(In thousands) | Total New York Times Company Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance as of December 30, 2012 | $ | 662,325 | $ | 3,311 | $ | 665,636 | ||||||
Net loss | (521 | ) | (304 | ) | (825 | ) | ||||||
Other comprehensive income, net of tax | 14,211 | — | 14,211 | |||||||||
Effect of issuance of shares | 5,767 | — | 5,767 | |||||||||
Dividends declared | (5,985 | ) | — | (5,985 | ) | |||||||
Stock-based compensation | 7,277 | — | 7,277 | |||||||||
Balance as of September 29, 2013 | $ | 683,074 | $ | 3,007 | $ | 686,081 |
(In thousands) | Total New York Times Company Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance as of December 25, 2011 | $ | 533,678 | $ | 3,149 | $ | 536,827 | ||||||
Net loss | (42,274 | ) | (101 | ) | (42,375 | ) | ||||||
Other comprehensive income, net of tax | 1,870 | — | 1,870 | |||||||||
Effect of issuance of shares | 2,094 | — | 2,094 | |||||||||
Stock-based compensation | 5,370 | — | 5,370 | |||||||||
Balance as of September 23, 2012 | $ | 500,738 | $ | 3,048 | $ | 503,786 |
(In thousands) | Foreign Currency Translation Adjustments | Unrealized Loss on Available-For-Sale Security | Funded Status of Benefit Plans | Total Accumulated Other Comprehensive Loss | ||||||||||||
Balance as of December 30, 2012 | $ | 11,327 | $ | (431 | ) | $ | (523,462 | ) | $ | (512,566 | ) | |||||
Other comprehensive income before reclassifications, before tax | 1,497 | 908 | 1,662 | 4,067 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss, before tax | — | — | 19,792 | 19,792 | ||||||||||||
Income tax expense | 717 | 363 | 8,568 | 9,648 | ||||||||||||
Net current-period other comprehensive income, net of tax | 780 | 545 | 12,886 | 14,211 | ||||||||||||
Balance as of September 29, 2013 | $ | 12,107 | $ | 114 | $ | (510,576 | ) | $ | (498,355 | ) |
For the Quarter Ended September 29, 2013 | For the Nine Months Ended September 29, 2013 | |||||||
(In thousands) | Amounts reclassified from accumulated other comprehensive loss | |||||||
Detail about accumulated other comprehensive loss components | ||||||||
Funded status of benefit plans: | ||||||||
Amortization of prior service credit(1) | $ | (4,179 | ) | (12,537 | ) | |||
Recognized actuarial loss(1) | 10,776 | 32,328 | ||||||
Total reclassification, before tax | 6,597 | 19,791 | ||||||
Income tax expense | 4,196 | 9,648 | ||||||
Total reclassification, net of tax | $ | 2,401 | $ | 10,143 |
(1) | These items are included in the components of net periodic benefit cost for pension and other retirement benefits. See Note 9 for additional information. |
▪ | a 49% interest in a Canadian newsprint company, Donohue Malbaie Inc.; and |
▪ | a 40% interest in a partnership, Madison Paper Industries, operating a supercalendered paper mill in Maine. |
• | 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. |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||
(In thousands) | September 29, 2013 | September 23, 2012 | % Change | September 29, 2013 | September 23, 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 | 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: | ||||||||||||||||||||||
Raw materials | 21,064 | 24,343 | (13.5 | ) | 66,913 | 75,963 | (11.9 | ) | ||||||||||||||
Wages and benefits | 82,387 | 80,696 | 2.1 | 247,199 | 242,742 | 1.8 | ||||||||||||||||
Other | 49,144 | 52,331 | (6.1 | ) | 148,286 | 155,173 | (4.4 | ) | ||||||||||||||
Total 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 | 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 | — | — | N/A | — | 55,645 | * | ||||||||||||||||
Impairment of investments | — | 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) | 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 | (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 | ) | ||||||||
* Represents an increase or decrease in excess of 100%. |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||
(In thousands) | September 29, 2013 | September 23, 2012 | % Change | September 29, 2013 | September 23, 2012 | % Change | ||||||||||||||||
National | $ | 108,920 | $ | 107,034 | 1.8 | $ | 355,419 | $ | 371,597 | (4.4 | ) | |||||||||||
Retail | 15,186 | 17,874 | (15.0 | ) | 52,612 | 61,665 | (14.7 | ) | ||||||||||||||
Classified | 13,085 | 14,836 | (11.8 | ) | 43,226 | 48,541 | (10.9 | ) | ||||||||||||||
Other | 827 | 1,136 | (27.2 | ) | 3,338 | 3,565 | (6.4 | ) | ||||||||||||||
Total Company | $ | 138,018 | $ | 140,880 | (2.0 | ) | $ | 454,595 | $ | 485,368 | (6.3 | ) |
Classified | |||||||||||||||||||||||||
National | Retail and Preprint | Help- Wanted | Real Estate | Auto- motive | Other | Total Classified | Other Advertising Revenues | Total | |||||||||||||||||
78 | % | 12 | % | 2 | % | 4 | % | — | % | 3 | % | 9 | % | 1 | % | 100 | % |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||
(In thousands) | September 29, 2013 | September 23, 2012 | % Change | September 29, 2013 | September 23, 2012 | % Change | ||||||||||||||||
Production costs: | ||||||||||||||||||||||
Raw materials | $ | 21,064 | $ | 24,343 | (13.5 | ) | $ | 66,913 | $ | 75,963 | (11.9 | ) | ||||||||||
Wages and benefits | 82,387 | 80,696 | 2.1 | 247,199 | 242,742 | 1.8 | ||||||||||||||||
Other | 49,144 | 52,331 | (6.1 | ) | 148,286 | 155,173 | (4.4 | ) | ||||||||||||||
Total 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 | ) |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||
(In thousands) | September 29, 2013 | September 23, 2012 | September 29, 2013 | September 23, 2012 | ||||||||||||
Cash interest expense | $ | 14,494 | $ | 14,453 | $ | 41,635 | $ | 43,249 | ||||||||
Non-cash amortization of discount on debt | 1,355 | 1,129 | 3,622 | 3,386 | ||||||||||||
Capitalized interest | — | — | — | (14 | ) | |||||||||||
Interest income | (395 | ) | (92 | ) | (1,088 | ) | (215 | ) | ||||||||
Total interest expense, net | $ | 15,454 | $ | 15,490 | $ | 44,169 | $ | 46,406 |
For the Quarters Ended | ||||||||||||||||||||||||||||||||
September 29, 2013 | September 23, 2012 | |||||||||||||||||||||||||||||||
(In thousands) | 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(1) | 7,997 | — | — | 7,997 | — | — | — | — | ||||||||||||||||||||||||
Impairment 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)/income from discontinued operations, net of income taxes | (18,987 | ) | — | — | (18,987 | ) | (323 | ) | 6,026 | — | 5,703 |
(1) | The pension withdrawal expense related to estimated charges for complete or partial withdrawal obligations under multiemployer pension plans triggered by the sale of the New England Media Group. |
For the Nine Months Ended | ||||||||||||||||||||||||||||||||
September 29, 2013 | September 23, 2012 | |||||||||||||||||||||||||||||||
(In thousands) | 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(1) | 7,997 | — | — | 7,997 | — | — | — | — | ||||||||||||||||||||||||
Impairment of assets(2) | 34,300 | — | — | 34,300 | — | 194,732 | — | 194,732 | ||||||||||||||||||||||||
(Loss)/income from joint ventures | (205 | ) | — | — | (205 | ) | (12 | ) | — | — | (12 | ) | ||||||||||||||||||||
Interest expense, net | 9 | — | — | 9 | 7 | — | — | 7 | ||||||||||||||||||||||||
Pre-tax (loss)/income | (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 | ) | ||||||||||||||||||
Gain/(loss) on sale, net of income taxes | ||||||||||||||||||||||||||||||||
Loss on sale | — | — | — | — | — | — | (4,717 | ) | (4,717 | ) | ||||||||||||||||||||||
Income tax benefit(3) | — | — | — | — | — | — | (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 | ) |
(1) | The pension withdrawal expense related to estimated charges for complete or partial withdrawal obligations under multiemployer pension plans triggered by the sale of the New England Media Group. |
(2) | Included in the impairment of assets in 2012 is the impairment of goodwill that related to the About Group for the nine months ended September 23, 2012. |
(3) | 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. |
For the Nine Months Ended | ||||||||
(In thousands) | September 29, 2013 | September 23, 2012 | ||||||
Operating Activities | $ | 10,070 | $ | 124,269 | ||||
Investing Activities | $ | (424,581 | ) | $ | 34,890 | |||
Financing Activities | $ | (16,202 | ) | $ | 104 |
(In thousands) | Coupon Rate | September 29, 2013 | December 30, 2012 | ||||||||
Senior notes due 2015 | 5.0 | % | $ | 244,048 | $ | 244,022 | |||||
Senior notes due 2016 | 6.625 | % | 204,924 | 221,523 | |||||||
Option to repurchase ownership interest in headquarters building in 2019 | 227,300 | 224,510 | |||||||||
Total debt | 676,272 | 690,055 | |||||||||
Short-term capital lease obligations(1) | 47 | 123 | |||||||||
Long-term capital lease obligations | 6,711 | 6,697 | |||||||||
Total capital lease obligations | 6,758 | 6,820 | |||||||||
Total debt and capital lease obligations | $ | 683,030 | $ | 696,875 |
(1) | Included in “Accrued expenses and other” in our Condensed Consolidated Balance Sheets. |
Total Number of Shares of Class A Common Stock Purchased | Average Price Paid Per Share of Class A Common Stock | Total Number of Shares of Class A Common Stock Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares of Class A Common Stock that May Yet Be Purchased Under the Plans or Programs | ||||||||||
Period | (a) | (b) | (c) | (d) | |||||||||
July 1, 2013 – August 4, 2013 | — | — | — | $ | 91,386,000 | ||||||||
August 5, 2013 – September 1, 2013 | — | — | — | $ | 91,386,000 | ||||||||
September 2, 2013 – September 29, 2013 | — | — | — | $ | 91,386,000 | ||||||||
Total for the third quarter of 2013 | — | — | — | $ | 91,386,000 |
(1) | On April 13, 2004, our Board of Directors authorized repurchases in an amount up to $400.0 million. During the third quarter of 2013, we did not purchase any shares of Class A Common Stock pursuant to our publicly announced share repurchase program. As of November 1, 2013, we had authorization from our Board of Directors to repurchase an amount of up to approximately $91 million of our Class A Common Stock. Our Board of Directors has authorized us to purchase shares from time to time as market conditions permit. There is no expiration date with respect to this authorization. |
THE NEW YORK TIMES COMPANY | |||
(Registrant) | |||
Date: November 7, 2013 | /s/ JAMES M. FOLLO | ||
James M. Follo Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Exhibit No. | ||
12 | Ratio of Earnings to Fixed Charges. | |
31.1 | Rule 13a-14(a)/15d-14(a) Certification. | |
31.2 | Rule 13a-14(a)/15d-14(a) Certification. | |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
For the Nine Months Ended September 29, 2013 | For the Years Ended | |||||||||||||||||||||||
(In thousands, except ratio) | December 30, 2012 | December 25, 2011 | December 26, 2010 | December 27, 2009 | December 28, 2008 | |||||||||||||||||||
Earnings/(loss) from continuing operations before fixed charges | ||||||||||||||||||||||||
Earnings/(loss) from continuing operations before income taxes, noncontrolling interest and income/(loss) from joint ventures | $ | 43,041 | $ | 255,621 | $ | 66,283 | $ | 58,742 | $ | 46,800 | $ | 2,915 | ||||||||||||
Distributed earnings from less than fifty-percent owned affiliates | 1,400 | 9,251 | 3,463 | 8,325 | 2,775 | 35,733 | ||||||||||||||||||
Adjusted pre-tax earnings/(loss) from continuing operations | 44,441 | 264,872 | 69,746 | 67,067 | 49,575 | 38,648 | ||||||||||||||||||
Fixed charges less capitalized interest | 47,980 | 67,279 | 90,500 | 95,028 | 87,475 | 45,229 | ||||||||||||||||||
Earnings/(loss) from continuing operations before fixed charges | $ | 92,421 | $ | 332,151 | $ | 160,246 | $ | 162,095 | $ | 137,050 | $ | 83,877 | ||||||||||||
Fixed charges | ||||||||||||||||||||||||
Interest expense, net of capitalized interest(1) | $ | 45,257 | $ | 63,254 | $ | 85,941 | $ | 89,176 | $ | 83,118 | $ | 40,310 | ||||||||||||
Capitalized interest | — | 17 | 427 | 299 | 1,566 | 2,639 | ||||||||||||||||||
Portion of rentals representative of interest factor | 2,723 | 4,025 | 4,559 | 5,852 | 4,357 | 4,919 | ||||||||||||||||||
Total fixed charges | $ | 47,980 | $ | 67,296 | $ | 90,927 | $ | 95,327 | $ | 89,041 | $ | 47,868 | ||||||||||||
Ratio of earnings to fixed charges | 1.93 | 4.94 | 1.76 | 1.70 | 1.54 | 1.75 |
Note: The Ratio of Earnings to Fixed Charges should be read in conjunction with this Quarterly Report on Form 10-Q, as well as the Annual Report on Form 10-K for the year ended December 30, 2012 for The New York Times Company (the “Company”). | ||
(1 | ) | The Company’s policy is to classify interest expense recognized on uncertain tax positions as income tax expense. The Company has excluded interest expense recognized on uncertain tax positions from the Ratio of Earnings to Fixed Charges. |
1. | I have reviewed this Quarterly Report on Form 10-Q of The New York Times Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 7, 2013 | /s/ MARK THOMPSON | |||
Mark Thompson Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of The New York Times Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 7, 2013 | /s/ JAMES M. FOLLO | |||
James M. Follo Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ MARK THOMPSON |
Mark Thompson |
Chief Executive Officer |
November 7, 2013 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ JAMES M. FOLLO |
James M. Follo |
Chief Financial Officer |
November 7, 2013 |
Discontinued Operations
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS New England Media Group On August 3, 2013, we entered into an agreement to sell the New England Media Group, consisting of The Boston Globe, BostonGlobe.com, Boston.com, the T&G, Telegram.com and related businesses, to an acquisition company. On October 24, 2013, we completed the sale of substantially all of the assets and operating liabilities of the New England Media Group. See Note 16 for additional information regarding this sale. The results of operations of the New England Media Group have been classified as discontinued operations for all periods presented and certain assets and liabilities are classified as held for sale for all periods presented. As a result, we triggered complete or partial withdrawal obligations under several multiemployer pension plans. Accordingly, we recorded a pension withdrawal expense estimated to be approximately $8 million in the third quarter of 2013. The actual liability will not be known until each plan completes a final assessment of the withdrawal liability and issues a demand to us. The carrying value of goodwill and intangible assets associated with the New England Media Group had been previously written down to zero. During the third quarter of 2013, we estimated the fair value less cost to sell of the group, which resulted in a $34.3 million impairment charge for fixed assets at the New England Media Group. About Group On September 24, 2012, we completed the sale of the About Group, consisting of About.com, ConsumerSearch.com, CalorieCount.com and related businesses, to IAC/InterActiveCorp for $300.0 million in cash, plus a net working capital adjustment of approximately $17 million. In 2012, the sale resulted in a pre-tax gain of $96.7 million ($61.9 million after-tax). The results of operations of the About Group, which had previously been presented as a reportable segment, have been classified as discontinued operations for all periods presented in 2012. Regional Media Group On January 6, 2012, we completed the sale of the Regional Media Group, consisting of 16 regional newspapers, other print publications and related businesses, to Halifax Media Holdings LLC for approximately $140 million in cash. The net after-tax proceeds from the sale, including a tax benefit, were approximately $150 million. In 2012, the sale resulted in an after-tax gain of $23.6 million (including post-closing adjustments recorded in the second and fourth quarters of 2012 totaling $6.6 million). The results of operations of the Regional Media Group have been classified as discontinued operations for all periods presented in 2012. The results of operations for the New England Media Group, the About Group and the Regional Media Group presented as discontinued operations are summarized below.
Included in impairment of assets in 2013 is the impairment of fixed assets held for sale that related to the New England Media Group. During the third quarter of 2013, we estimated the fair value less cost to sell of the group held for sale, using unobservable inputs (Level 3). We recorded a $34.3 million non-cash charge in the third quarter of 2013 for fixed assets at the New England Media Group to reduce the carrying value of fixed assets to their fair value less cost to sell. Goodwill is not amortized but tested for impairment annually or in an interim period if certain circumstances indicate a possible impairment may exist. Our policy is to perform our annual goodwill impairment test in the fourth quarter of our fiscal year. However, due to certain impairment indicators at the About Group in the second quarter of 2012, we performed an interim impairment test. As of June 24, 2012, the interim impairment test resulted in a $194.7 million non-cash charge in the second quarter of 2012 for the impairment of goodwill at the About Group. The impairment charge reduced the carrying value of goodwill to its fair value. The assets and liabilities classified as held for sale for the New England Media Group, the About Group and the Regional Media Group are summarized below.
|
Supplemental Stockholders' Equity Information - Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 29, 2013
|
Sep. 23, 2012
|
Sep. 29, 2013
|
Sep. 23, 2012
|
|||||
Reclassification out of accumulated other comprehensive income (loss): | ||||||||
(Loss)/income from continuing operations | $ (5,300) | $ (2,979) | $ 18,170 | $ 45,632 | ||||
Income tax expense | 2,578 | (3,187) | 21,473 | 28,446 | ||||
Funded Status of Benefit Plans [Member] | Reclassification out of accumulated other comprehensive income (loss) [Member]
|
||||||||
Reclassification out of accumulated other comprehensive income (loss): | ||||||||
Amortization of prior service credit(1) | (4,179) | [1] | (12,537) | [1] | ||||
Recognized actuarial loss(1) | 10,776 | [1] | 32,328 | [1] | ||||
(Loss)/income from continuing operations | 6,597 | 19,791 | ||||||
Income tax expense | 4,196 | 9,648 | ||||||
Total reclassification, net of tax | $ 2,401 | $ 10,143 | ||||||
|
/[6NR&D005/I^_"TR3"N'HVI$+D
M8TO/LPB'SO2?.Z8AA],;OAHJH'&,HJ;Z0&\^C6TL_P```/__`P!02P,$%``&
M``@````A`+55,"/U````3`(```L`"`)?_GZ?E[MNN,95#SM#_OK/T;I"&(VNC7[:CVRL!T;
M#VQ^;#)&5,*"/`M2*&H$`!:11XB"8#!S390`.`S2X9]/>JJ<&!&"%F3$^/]7
M&",30.5`,SE2WX:HVY!F%H)\)>='!2,FG35*(P<:?1:E402@3D.`B30B\L]<
M-#$E!%DDM9APB<8>!QJYT"2H$6`BBY!<9Q'AVE``O'!&?WS`8T?AF6%(*FEG
MA?FDS$RD\#=H,C'\TH70_]U6"#D'P-4WD+4X>73F0
M)18[HW;R2;O5C
&:T>,QF@F0B8+B)D5P9)IBJ:!RU8Y
M\*G'#39`D%D)IQV4-I$7%*EL)&7&.&N;,3IJ;$+KB&B#-'1HDZV0W9J4E!E]
M;)"!!)SE9E1+&22J(%$'B<9'$*DP5$WJF)AI-.>AO/JXA(F;Y:1,4$$;9/(Q
M2[,D&O]1I$0$?LYAC%FI@D0=[J;Q!2&B88]KHJ?
KMPB4)OO!48B+<&X)5LP(!D"\`K
MV8$!R1Z`5Q+'H$`3WP/QBQKG*>Q;CLL^]<=EY[*(G>H7L7=9Q%[UB]B])#)>
MQ^ER7"1Y9L>NBNTDM]QPGW#RDAP,M+@)P-O@%AB0M`%X)1TP(.D"\$IZ8$#2
M!^"5#,XRAF`@Z`B`-^@8#$@F`+R2*1B0S`!X)7,P(%DD0+I[*26[%VO[LH3(
M&W8%!L*N`7@E&S`@V0+P2G9@0+('X)7$,2C0Q.>]&C<@\L=E^W)]NI"49FZD)#W\34-&
MMTOE!W%:0M0V1#=!N5J2`]L1LJXI*Q>*ZMZL2'N<%L,D]CF0UR`#ICBL.N1"
M1!P9#:&DEZO66(@FC#CJF'(AZI@9==S0S:&RO&"9"]F"$6]GETQQ-&3%A6C(
MFA$'?<.%H&\9<=!W7`CZ/D52QU=.=\',%QM*>GM**>D!>;M)27^!HRGI$0E-
MHJ3/"BON=P"$"GY%[CI-34DOA#VCNLA5G;8P-=)(>?5->=F4/]T&S%R`G\JM
MMP'$`<*4A):[#Q"FI$SJ&S+W`4(A:ALBWP%"(>M:LB"J1'+)Z`E=GQ&O3P9,
M<1AVR(5PQRA%DL$J%T+'NW]"-&'$4<>4"U''S*CCADY\5AWOD
2!=(.SB"QLD.VF#2I*QIT]9)6RW;K"^X
MT\WYGC"VENPL_CZGL?/FS&7GY.)%&CNUL&-K.[;2U.#9DRD*0Y/L(&,<8[Z4
M%3]F\=%]0.?#:8,25-,,&G*H&AAQZ8/(#DMQS-TJV_````__\#`%!+`P04
M``8`"````"$`3G^BN8,.``!\D@``#0```'AL+W-T>6QE
(WBWWF/5F!'*):1DC,L5$(^!Y2#
ML@H(FH,AMX=__4%ETC))Y5[BP/UUL'H+$6=7!N42B:P+IRI[:%8ON@K)4/06
M,"915Q,SK7,C`]B9=EAC16\<^\%+VN1POX-%EQG8NSB#,O'#M=UQCH90`FS'
MR5IIGU$1+%,-SR]"L\7PIGY39^L2)\0('+5V5G/;L5H`L9<",.
M@-B#4[UZ_8U(65F%V0+\'\WD<)445C%FOA!D@$@&/_*0>85M,0-!;<#)0*1-
MLBI4;9$,3=:-#;)107+*`')4(%(ZF.F)6,T+B&\3PK.+4(/JFSERRHQ5V#1G
MEJ;E]N8CP`.`NNZ\GJ/Z6JKM**FOX,7T2S+*2AY9X+WTWI^?MZZ_8YBVUWUW
MT3U%$/WBQFNUVY?O+VZZ%^^\*^0@MKN=GE*5G2&HO,*E@=["I!,:)#O\MIT#
MB#4
HU@^2YXC+TP$4XP
MM/!2UN)N_=Z<6`?8*-%;RS)V2:KVRGU8[0>5.RWI:JJ57.AJE\A&D62.G06^
M%FS.7I(GT7@5>\C?!M5JPFKZ`<]*7;79$P/80(=%(4K-YEB$FC">]")#'U9\
M",HN[79B5)7+S=7<=P.YE-1M)]FT='ZRR5>::#!)JMM@/GZR$"\YZ]?[!VLM
MZ__]84DK8\/7^T?K[1NQ.IAOU1*E'.XH<[%_/48[K*\W.W%UIYD8]4A*6F.$
M