-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, n+kHR9c/KuoDWHX3iSerrlxIE7fPFAHJCiF/Who0UBuhHAs1Td4GNpE5861tJIc/ Gu7IKtvOFYaam09RL30nyw== 0000950112-95-001292.txt : 19950512 0000950112-95-001292.hdr.sgml : 19950512 ACCESSION NUMBER: 0000950112-95-001292 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW YORK TIMES CO CENTRAL INDEX KEY: 0000071691 STANDARD INDUSTRIAL CLASSIFICATION: NEWSPAPERS: PUBLISHING OR PUBLISHING & PRINTING [2711] IRS NUMBER: 131102020 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05837 FILM NUMBER: 95536749 BUSINESS ADDRESS: STREET 1: 229 W 43RD ST CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2125561234 MAIL ADDRESS: STREET 1: 229 W 43RD STREET CITY: NEW YORK STATE: NY ZIP: 10036 10-Q 1 THE NEW YORK TIMES COMPANY FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For Quarter Ended March 31, 1995 ---------------- Commission file number 1-5837 -------------- THE NEW YORK TIMES COMPANY -------------------------- (Exact name of registrant as specified in its charter) NEW YORK 13-1102020 - ------------------ ------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 229 WEST 43RD STREET, NEW YORK, NEW YORK ---------------------------------------- (Address of principal executive offices) 10036 ----- (Zip Code) Registrant's telephone number, including area code 212-556-1234 ------------ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No . ----- ------ Number of shares of each class of the registrant's common stock outstanding as of April 30, 1995 (exclusive of treasury shares): Class A Common Stock 96,577,496 shares Class B Common Stock 430,178 shares -2- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 INDEX PART I. FINANCIAL INFORMATION (Unaudited) Page ---- Item 1. Financial Statements: Condensed Consolidated Financial Statements Condensed Consolidated Statements of Income for the Three Months Ended March 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 3 Condensed Consolidated Balance Sheets as of March 31, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . 6 Notes to Condensed Consolidated Financial Statements . . . . . . . . . . . . . . . . . 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations: Segment Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Results of Operations - First Quarter of 1995 Compared with First Quarter of 1994 . . . . . . . . . . . . . . . . . . . . . . . . 13 Liquidity and Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security-Holders . . . . . . . . . . . . . . . . . . 18 Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
-3- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended March 31, 1995 1994 ------- ------- (Dollars and shares in thousands except per share data) Revenues Advertising . . . . . . . . . . . . . . . . . . . . . . . . . $401,151 $411,623 Circulation . . . . . . . . . . . . . . . . . . . . . . . . . 129,741 144,296 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,273 33,593 ------------- ------------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 571,165 589,512 ------------- ------------- Production Costs Raw Materials . . . . . . . . . . . . . . . . . . . . . . . . 79,991 78,419 Wages and Benefits . . . . . . . . . . . . . . . . . . . . . . 131,379 132,032 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,188 112,930 ------------- ------------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 307,558 323,381 Selling, General and Administrative Expenses . . . . . . . . . . 206,090 222,979 ------------- ------------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 513,648 546,360 ------------- ------------- Operating Profit . . . . . . . . . . . . . . . . . . . . . . . . 57,517 43,152 Interest Expense, Net of Interest Income . . . . . . . . . . . . 7,344 8,666 ------------- ------------- Income Before Income Taxes and Equity in Operations of Forest Products Group . . . . . . . . . . . . . . 50,173 34,486 Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 24,484 16,721 ------------- ------------- Income Before Equity in Operations of Forest Products Group . . . . . . . . . . . . . . . . . . . . . . . . 25,689 17,765 Equity in Operations of Forest Products Group . . . . . . . . . . 1,670 (30) ------------- ------------- Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,359 $ 17,735 ============= ============= Average Number of Common Shares Outstanding . . . . . . . . . . . 97,826 106,856 Per Share of Common Stock Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . $.28 $.17 Cash Dividends . . . . . . . . . . . . . . . . . . . . . . . . .14 .14
See notes to condensed consolidated financial statements. -4- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31, December 31, 1995 1994 -------- ------ (Dollars in thousands) ASSETS Current Assets Cash and short-term investments . . . . . . . . . . . . $ 174,780 $ 41,419 ---------------- ----------------- Marketable securities . . . . . . . . . . . . . . . . . 39,370 - ---------------- ----------------- Accounts receivable-net . . . . . . . . . . . . . . . . 241,299 247,750 ---------------- ----------------- Inventories Newsprint and magazine paper . . . . . . . . . . . . 26,514 24,783 Work-in-process, etc. . . . . . . . . . . . . . . . 6,275 5,762 ---------------- ----------------- Total inventories . . . . . . . . . . . . . . . . 32,789 30,545 ---------------- ----------------- Other current assets . . . . . . . . . . . . . . . . . 85,511 92,060 ---------------- ----------------- Total current assets . . . . . . . . . . . . . . 573,749 411,774 Other Assets Investment in forest products group . . . . . . . . . . 87,026 85,433 Property, plant and equipment (less accumulated depreciation of $675,246,000 in 1995 and $660,017,000 in 1994) . . . . . . . . . . . . . . . 1,163,944 1,158,751 Intangible assets acquired Cost in excess of net assets acquired (less accumulated amortization of $169,408,000 in 1995 and $166,045,000 in 1994) . . . . . . . . . 1,207,392 1,225,205 Other intangible assets acquired (less accumulated amortization of $7,786,000 in 1995 and $6,486,000 in 1994) . . . . . . . . . . 152,961 154,261 Miscellaneous assets . . . . . . . . . . . . . . . . . 102,869 102,207 ---------------- ----------------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . $ 3,287,941 $ 3,137,631 ================ =================
See notes to condensed consolidated financial statements. (Continued) - 1 -5- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION CONDENSED CONSOLIDATED BALANCE SHEETS - (Continued) (Unaudited)
March 31, December 31, 1995 1994 -------- -------- (Dollars in thousands) LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts and notes payable . . . . . . . . . . . . $ 101,360 $ 121,504 Payrolls . . . . . . . . . . . . . . . . . . . . . 66,958 67,012 Accrued expenses . . . . . . . . . . . . . . . . . 180,475 182,338 Unexpired subscriptions . . . . . . . . . . . . . . 83,478 77,697 Current portion of long-term debt . . . . . . . . . 64,329 2,681 ---------------- ---------------- Total current liabilities . . . . . . . . . . . 496,600 451,232 ---------------- ---------------- Other Liabilities Long-term debt . . . . . . . . . . . . . . . . . . 588,842 473,530 Capital lease obligations . . . . . . . . . . . . . 49,178 49,666 Deferred income taxes . . . . . . . . . . . . . . . 172,401 176,588 Other . . . . . . . . . . . . . . . . . . . . . . . 438,849 441,323 ---------------- ---------------- Total other liabilities . . . . . . . . . . . . 1,249,270 1,141,107 ---------------- ---------------- Stockholders' Equity Capital shares . . . . . . . . . . . . . . . . . . 12,620 12,615 Additional capital . . . . . . . . . . . . . . . . 600,557 597,860 Earnings reinvested in the business . . . . . . . . 1,193,440 1,179,715 Common stock held in treasury, at cost . . . . . . (264,546) (244,898) ---------------- ---------------- Total stockholders' equity . . . . . . . . . . . 1,542,071 1,545,292 ---------------- ---------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY. . . . . . . $ 3,287,941 $ 3,137,631 ================ ================
See notes to condensed consolidated financial statements. (Concluded) - 2 -6- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, CASH PROVIDED (USED): 1995 1994 ------ ------ (Dollars in thousands) OPERATING ACTIVITIES Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,359 $ 17,735 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization . . . . . . . . . . . . . . . . . . . . 36,402 38,896 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . (5,602) 1,325 Equity in operations of forest products group-net . . . . . . . . . . (2,192) 195 Other-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,406 28,669 ---------- ---------- Net cash provided by operating activities . . . . . . . . . . . . . . . . 69,373 86,820 ---------- ---------- INVESTING ACTIVITIES Net proceeds from sale of BPI Communications, L.P. . . . . . . . . . . . - 52,992 Purchases of marketable securities . . . . . . . . . . . . . . . . . . . (39,370) - Additions to property, plant and equipment . . . . . . . . . . . . . . . (35,713) (29,302) Other-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,439) (3,584) ---------- ---------- Net cash (used in) provided by investing activities . . . . . . . . . . . (79,522) 20,106 ---------- ---------- FINANCING ACTIVITIES Short-term borrowings-net . . . . . . . . . . . . . . . . . . . . . . . . (49,472) (62,340) Long-term obligations Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388,842 - Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (163,768) (1,436) Capital Shares Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 239 Repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,569) (5,510) Dividends paid to stockholders . . . . . . . . . . . . . . . . . . . . . (13,690) (14,990) Other-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) 98 ---------- ---------- Net cash (used in) provided by financing activities . . . . . . . . . . . 143,510 (83,939) ---------- ---------- Increase in Cash and short-term investments . . . . . . . . . . . . . . . 133,361 22,987 Cash and short-term investments at the beginning of the year . . . . . . 41,419 42,058 ---------- ---------- Cash and short-term investments at the end of the quarter . . . . . . . . $174,780 $ 65,045 ========== ==========
See notes to condensed consolidated financial statements. -7- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. General a. Results for the interim periods should not be considered as indicative of results for a full year. b. The information furnished, in the opinion of management, reflects all adjustments (which consist of normal recurring accruals) necessary for a fair presentation of results for the interim periods presented. c. The 1995 amounts are subject to year-end audit. 2. Income Taxes For the three months ended March 31, 1995 and 1994, income tax expense includes the reversal of deferred income taxes of $5,724,000 and $5,221,000, respectively. The principal reasons for the variance between the effective tax rate on income before income taxes and equity in operations of Forest Products Group and the federal statutory rate (exclusive of the effects of the Company's interest in Madison Paper Industries ("Madison"), a partnership) are state and local taxes and the amortization of certain intangible assets acquired. Equity in operations of Forest Products Group includes the income tax effects of the Company's interest in Madison and its equity in the operations of Canadian forest products companies. For the three months ended March 31, 1995 and 1994, income tax expense (benefit) included in equity in operations was $452,000 and $(36,000), respectively. The Company's consolidated federal income tax return includes the Company's interest in Madison. 3. Earnings Per Share The computation of earnings per share data is not separately disclosed as such computation can be clearly determined from the Condensed Consolidated Statements of Income. 4. Cash and Short-Term Investments For purposes of the Condensed Consolidated Statements of Cash Flows, the Company considers all highly-liquid debt instruments purchased with maturities of three months or less to be cash equivalents. The Company has overdraft positions at certain banks caused by outstanding checks. These overdrafts, including $1,015,000 as of March 31, 1995 related to repurchases of the Company's stock (see Note 10), have been reclassified to accounts payable. For the three-month period ended March 31, 1995 and 1994, the Company made cash payments for interest (net of amounts capitalized) totaling $8,392,000 and $13,847,000, respectively. Cash payments for income taxes for the three-month period ended March 31, 1995 and 1994 totaled $7,405,000 and $5,295,000, respectively. -8- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 5. Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company has classified the marketable securities as held-to-maturity, since the Company has the intent and ability to hold them to maturity. Held-to-maturity investments are carried at amortized cost. 6. Capital Investment Projects In December 1993, the Company and the City of New York executed a 25- year lease and related agreements, under which the Company is leasing 31 acres of City-owned land in College Point, New York, on which The New York Times ("The Times") is building a state-of-the-art production and distribution facility. Conditions stipulated under the lease were met in June 1994 and, accordingly, a capital lease of $5,000,000 was recorded at such time. In July 1994, the Company's Board of Directors approved the construction of the new facility, which will allow for later news deadlines and provide color and inserting capability for the daily newspaper. The cost of the new facility, excluding capitalized interest currently projected to be $45,000,000, is estimated to be $315,000,000. Construction of the facility began in August 1994 with completion anticipated in the second half of 1997. While the new facility will replace The Times's Manhattan production and distribution facility, business and news operations will remain at the Manhattan building. No write-down is anticipated as a result of the discontinuance of production at the Manhattan facility. 7. Staff Reductions and Union Negotiations In 1994, the Company completed its negotiations of long-term labor agreements with all of its unions at The Times and they extend to the year 2000. These agreements encompass wages, payments to the unions' benefits and pension funds, job security and financial incentives. These agreements apply to all of The Times's current and new production and distribution facilities. In connection with these union agreements and additional white-collar staff reductions for non-union employees, the Company recorded pre-tax charges ($35,400,000, or $.23 per share, in 1993; $28,000,000, or $.20 per share, in 1992; $20,000,000, or $.15 per share, in 1991; and $30,000,000, or $.22 per share, in 1989) for severance and related costs for staff reductions at The Times. At March 31, 1995 and December 31, 1994, approximately $15,800,000 and $23,700,000, respectively, were included in accrued expenses on the accompanying Condensed Consolidated Balance Sheets, which represent the unpaid balance of these pre-tax charges. The Company has committed the remaining funds. The remaining cash outflow associated with these charges are expected to occur over the next two years due to the timing of certain union pension and welfare fund contributions. -9- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 8. Acquisition/Dispositions In February 1995, the Company announced an agreement for the purchase of WTKR-TV in Norfolk, Virginia from Narragansett Television, Inc. The closing, currently expected in early summer, is subject to regulatory approval. In March 1995, the Company announced that it is in discussions for the possible sale of seven of its small regional newspapers. The net assets of $17,205,000 related to these properties are included in other current assets on the accompanying March 31, 1995 Condensed Consolidated Balance Sheet. On May 5, 1995, the Company signed a letter of intent to sell The Daily Commercial (Leesburg, Fla.). The closing is expected to occur in the second quarter. The disposition will not have a material effect on the Company's consolidated financial statements. The potential dispositions and acquisition will not have a material impact on the future operations of the Company. In July and August 1994, the Company completed the sales of its Women's Magazines Division and U.K. golf publications, respectively. These transactions resulted in a pre-tax gain of approximately $204,000,000 ($1.01 per share). In connection with the sale of the Women's Magazines Division, the Company entered into a four-year non-compete agreement, for which it received $40,000,000. This amount is being recognized as operating income, on a straight-line basis, over a four-year period commencing with the closing of the sale on July 26, 1994. Pro forma operating results for the three months ended March 31, 1994, had the sales of the U.K. golf publications and Women's Magazines Division occurred at the beginning of that period are as follows: revenues of $530,533,000; net income of $23,243,000; and net income per share of $.22. The above pro forma results are not necessarily indicative of the results of operations that might have occurred had the sales taken place at the beginning of the period, nor necessarily indicative of the results that may be obtained in the future. The gain on the sales is not included in the above pro forma operating results. 9. Debt On March 29, 1995, the Company completed a public offering of $400,000,000 in unsecured notes and debentures. Ten-year notes maturing March 15, 2005, totaling $250,000,000 were issued at a rate of 7.625 percent; the remaining $150,000,000 were issued as 30-year debentures maturing March 15, 2025, at a rate of 8.25 percent and are callable after 10 years. For both issuances interest is payable semi-annually on March 15 and September 15. The net proceeds from the offering were used to repay notes of $162,300,000 due March 31, 1995, with an effective interest rate of 11.85 percent related to the 1985 acquisition of three newspapers; and $50,000,000 will be used to repay 9.34 percent notes due July 15, 1995 assumed in connection with the October 1993 acquisition of The Boston Globe. The remaining net proceeds will be used for general corporate purposes, including the repayment at maturity of additional indebtedness from the Company's commercial paper program. -10- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Concluded) 10. Stock Repurchase Program During the first quarter of 1995, the remainder of an October 1994 $100,000,000 authorization was spent to repurchase approximately 600,000 shares of Class A Common Stock at an average price of $22.09. In February 1995, the Company's Board of Directors authorized additional expenditures of up to $50,000,000. To date, the Company has repurchased approximately 900,000 shares of its Class A Common Stock at an average price of $22.90 per share under this program. Under the program, purchases may be made from time to time either in the open market or through private transactions. The number of shares that may be purchased in market transactions may be limited as a result of The Globe transaction. Purchases may be suspended from time to time or discontinued. 11. Equity Put Options In addition to the Company's stock repurchase program (see Note 9), the Company sold put options in a series of private placements that entitle the holder, upon exercise, to sell one share of Class A Common Stock to the Company at a specified price. At March 31, 1995, and December 31, 1994, approximately $230,000 and $2,660,000, respectively, were included in other liabilities on the accompanying Condensed Consolidated Balance Sheets, which represents the amount that the Company would be obligated to pay if all the options were exercised. The proceeds from the sale of put options are accounted for as additional paid-in capital. -11- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) - ------------------------------------------------ Segment Information - -------------------
Three Months Ended March 31, 1995 1994 ------- ------- (Dollars in thousands) REVENUES Newspapers . . . . . . . . . . . . . . . . . . . . . . . . . . $513,094 $478,518 Magazines . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,902 96,466 Broadcasting . . . . . . . . . . . . . . . . . . . . . . . . . 17,169 14,528 ---------- ---------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . $571,165 $589,512 ========== ========== OPERATING PROFIT (LOSS) Newspapers . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,810 $ 48,079 Magazines . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,199 166 Broadcasting . . . . . . . . . . . . . . . . . . . . . . . . . 2,744 1,064 Unallocated Corporate Expenses . . . . . . . . . . . . . . . . (6,236) (6,157) ---------- ---------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,517 43,152 INTEREST EXPENSE, NET OF INTEREST INCOME . . . . . . . . . . . 7,344 8,666 ---------- ---------- INCOME BEFORE INCOME TAXES AND EQUITY IN OPERATIONS OF FOREST PRODUCTS GROUP . . . . . . . . . . . . 50,173 34,486 INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . 24,484 16,721 ---------- ---------- INCOME BEFORE EQUITY IN OPERATIONS OF FOREST PRODUCTS GROUP . . . . . . . . . . . . . . . . . . 25,689 17,765 EQUITY IN OPERATIONS OF FOREST PRODUCTS GROUP . . . . . . . . . 1,670 (30) ---------- ---------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,359 $ 17,735 ========== ==========
-12- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS - (Continued) - -------------------------------------------------- Segment Information - -------------------
Three Months Ended March 31, 1995 1994 ------- ------ (Dollars in thousands) DEPRECIATION AND AMORTIZATION Newspapers. . . . . . . . . . . . . . . . . . . . . . . . . . . $33,447 $33,012 Magazines . . . . . . . . . . . . . . . . . . . . . . . . . . . 585 3,265 Broadcasting . . . . . . . . . . . . . . . . . . . . . . . . . 2,173 2,464 Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 155 ---------- ---------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,402 $38,896 ========== ==========
-13- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) - ------------------------------------------------ The Company's largest source of revenues is advertising, which influences the pattern of the Company's quarterly consolidated revenues and is seasonal in nature. Traditionally, second-quarter and fourth-quarter advertising volume is higher than that which occurs in the first quarter. Advertising volume tends to be lower in the third quarter primarily because of the summer slow-down in many areas of economic activity. In addition, quarterly trends are affected by the overall economy and economic conditions that may exist in specific markets served by each of the Company's business segments. Results of Operations - First Quarter of 1995 - ---------------------------------------------- Compared with First Quarter of 1994 - ----------------------------------- The 1995 first-quarter net income was $27.4 million, or $.28 per share, compared with net income of $17.7 million, or $.17 per share, in 1994. The higher 1995 net income was principally due to improvements throughout all of the Company's operating groups, as well as higher equity in operations of the Forest Products Group. Revenues for the 1995 first quarter were $571.2 million compared with $589.5 million in the 1994 quarter. The lower revenues were due to the absence of the Women's Magazines and U.K. golf publications, which were sold in the 1994 third quarter offset, in part, by increased revenues in the Newspaper and Broadcasting Groups and the Sports/Leisure Magazines. On a comparable basis, excluding the revenues attributable to the magazines sold, 1995 first-quarter revenues increased by approximately 8 percent over 1994. For the first quarter of 1995, as a result of a strong operating performance, earnings before depreciation, amortization, interest and income taxes rose to $93.9 million from $82.0 million in the 1994 quarter. The Company currently anticipates that depreciation and amortization will approximate $150 million for the year 1995 as compared with $154 million in 1994. The quarterly per-share amounts were affected by the repurchase of the Company's Class A Common Stock throughout 1994 as well as in the 1995 first quarter. During 1994, approximately $235.2 million was expended to repurchase approximately 10.0 million shares. In the first quarter of 1995, an additional $19.5 million was expended to repurchase approximately 0.9 million shares. Interest expense, net of interest income, declined to $7.3 million in the first quarter of 1995 from $8.7 million last year. The decline was due principally to a higher level of capitalized interest in connection with facilities under construction. The 1995 and 1994 first-quarter effective tax rates, were 48.8 and 48.5 percent, respectively. The Company currently estimates that its annual effective income tax rate for 1995 will be 48.8 percent compared with 41.7 percent in 1994. The lower 1994 rate was due principally to the utilization of capital loss carryforwards in the fourth quarter of 1994. -14- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) - ------------------------------------------------ A discussion of the operating results of the Company's segments and equity interests follows: Beginning with the 1995 first quarter, the Information Services Division, formerly included with the Broadcasting Division, has been reclassified to the Newspaper Group Segment. The Information Services operations are closely aligned with the Newspaper Segment since they distribute The New York Times's related materials in a variety of electronic forms. The Information Services Division consists primarily of a news service, a features syndicate, TimesFax, NYT Custom Publishing and the licensing operations of The New York Times databases, CD-ROM and microfilm. The 1994 amounts have also been reclassified to conform with this presentation. The Newspaper Group consists of The New York Times ("The Times"), The Boston Globe ("The Globe"), 28 Regional Newspapers, newspaper wholesalers, Information Services and a 50 percent interest in the International Herald Tribune. First-quarter 1995 operating profit rose to $50.8 million from $48.1 million in the 1994 first quarter. Revenues were $513.1 million in the 1995 first quarter, compared with $478.5 million in 1994. The 7 percent increase in the Group's revenues was due primarily to higher advertising and circulation revenues. The increase in advertising revenues was due to a combination of higher advertising volume and rates. The circulation revenue increase was primarily due to higher rates, offset by the softness in circulation copies. The operating performance improved despite higher newsprint prices, which were 22 percent greater in the 1995 first quarter compared with the 1994 first quarter. Royalties from database licensing contributed to the improved performance. Higher newsprint prices are expected for the remainder of the year as a result of increased demand in the market. Management has begun to implement measures which are currently expected to minimize the impact of these price increases on the Groups' operating results for the year. At The Times, advertising volume for the first quarter of 1995 was 918,200 inches, up 7.2 percent from the 1994 first quarter. The zoned, classified and national advertising categories showed gains, but the retail advertising category was slightly down. Average circulation for the six months ended March 31, 1995, as reported to the Audit Bureau of Circulations ("ABC"), was 1,170,900 copies weekdays, down 17,100 copies from 1994, and 1,770,500 copies Sundays, up 2,700 copies. At The Globe, advertising volume was 684,600 inches for the 1995 first quarter, up 4.2 percent over the 1994 first quarter. Advertising was up in all categories except retail and preprint distribution was up 9.3 percent. Average circulation for the six months ended March 31, 1995, as reported to ABC, was 500,600 copies weekdays, up 300 copies, and 785,900 copies Sundays, down 29,400 copies. For the Regional Newspapers, advertising volume for the first quarter increased to 4.1 million inches, up 4.0 percent. Strong advertising in the classified and retail categories accounted for the improved results. Preprint distribution was down 4.3 percent. For the six months ended March 31, 1995, average circulation as reported to -15- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) - ------------------------------------------------ ABC, was 868,100 copies on weekdays, down 6,300 copies and 879,900 copies on Sunday, up 1,700 copies. Circulation was 54,900 copies for the nondailies, down 100 copies. The Magazine Group's first-quarter operating profit was $10.2 million in 1995 compared with $0.2 million in 1994 on revenues of $40.9 million and $96.5 million, respectively. The change in revenues for the quarter was due to the lack of revenues attributable to the Women's Magazines and U.K. golf publications which were sold in the 1994 third quarter. Excluding the 1994 first-quarter operations of the magazines sold and the 1995 first-quarter non-compete income of $2.5 million arising from the Women's Magazines sale (see Note 8), 1995 first-quarter operating profit for the Sports/Leisure Magazines was $7.7 million compared with $4.9 million in the 1994 quarter. Revenues for the Sports/Leisure Magazines for the first quarter of 1995 were $38.4 million compared with $34.6 million in the comparable 1994 period. The increases were primarily due to higher advertising revenues at Golf Digest and lower subscription promotion costs. The Broadcasting Group's first-quarter profit more than doubled as compared with the 1994 first quarter. Operating profit rose to $2.7 million in the 1995 first quarter from $1.1 million in the comparable 1994 quarter. First-quarter revenues were $17.2 million compared with $14.5 million in the 1994 quarter, an increase of 19 percent. Higher local advertising revenues and network compensation at the television stations, as well as higher revenues at the radio stations, accounted for the improved results. The Forest Products Group's equity in earnings (an after-tax amount) was $1.7 million for the first quarter of 1995, compared with break-even results in 1994. The 1995 improvement resulted from higher sales prices. This favorable trend is expected to continue throughout 1995. Liquidity and Capital Resources - ------------------------------- Net cash provided by operating activities was $69.4 million in the 1995 first quarter compared with $86.8 million in 1994. Such cash was used primarily to modernize facilities and equipment, to pay dividends to stockholders and to repurchase shares of the Company's Class A Common Stock. The ratio of current assets to current liabilities was 1.16 at March 31, 1995, and .91 at December 31, 1994, and long-term debt and capital lease obligations as a percentage of total capitalization was 29 percent at March 31, 1995, compared with 25 percent at December 31, 1994. In March 1995 the Company completed a public offering of $400.0 million in unsecured notes and debentures (see Note 9). Ten-year notes totaling $250.0 million maturing March 15, 2005 were issued at a rate of 7.625 percent, and the remaining $150 million were issued as 30-year debentures maturing March 15, 2025 at a rate of 8.25 percent. -16- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) - ------------------------------------------------ The net proceeds from the offering were used to repay $162.3 million of notes due March 1995, and will be used to repay $50.0 million of notes due July 1995 and to repay indebtedness from the Company's commercial paper program. The remaining proceeds will be used for general corporate purposes. During the first quarter of 1995, the remainder of an October 1994 $100.0 million authorization was spent to repurchase approximately 0.6 million shares of Class A Common Stock at an average price of $22.09. In February 1995, the Company's Board of Directors authorized additional expenditures of up to $50.0 million. To date, the Company has repurchased approximately 0.9 million shares of its Class A Common Stock at an average price of $22.90 per share under this program. Under the program, purchases may be made from time to time either in the open market or through private transactions. The number of shares that may be purchased in market transactions may be limited as a result of The Globe transaction. Purchases may be suspended from time to time or discontinued. The Company currently anticipates that depreciation and amortization will approximate $150.0 million for the year in 1995 as compared with $154.0 million in 1994. In July 1994, the Company's Board of Directors approved the construction of a new production and distribution facility in College Point, New York, for production of The Times (see Note 6). The cost of the new facility is estimated to be $315.0 million, exclusive of capitalized interest currently projected to be $45.0 million. Construction began in August 1994, with completion expected in the second half of 1997. While the new facility will replace The Times's Manhattan production and distribution facility, business and news operations will remain at the Manhattan building. No write-down is anticipated as a result of the discontinuance of production at the Manhattan facility. The Company currently anticipates that, inclusive of the College Point facility, capital expenditures for 1995 will range from $250.0 million to $300.0 million. In connection with a commitment related to the 1991 divestiture of a jointly-owned newsprint affiliate, Spruce Falls Power and Paper Company, Limited, the Company has fulfilled its commitment to lend $26.5 million (C$30.0 million) to the new owners of the mill. To date, the mill has been operating profitably and all interest payments related to the loan have been received by the Company. Under the terms of the loan, the five-year repayment period is not scheduled to commence until December 1997. The Company expects the former affiliate to fulfill its contractual obligation as stipulated in the loan agreement. -17- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART I. FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS (Concluded) - ------------------------------------------------ In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 121 - Accounting for Impairment of Long-Lived Assets ("SFAS 121"). SFAS 121 will require a review for impairment of long-lived assets and certain identifiable intangible assets to be held and used, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The statement shall be effective for financial statements for fiscal years beginning after December 15, 1995. The Company does not believe operations will be affected by the adoption of SFAS 121. The Company has only limited involvement with derivative financial instruments and does not use them for trading purposes. The Company is currently not engaged in interest rate swaps or hedging activity of a material nature. The Company has one interest rate swap agreement with a major financial institution to manage interest costs on $50.0 million of notes due in July 1995 (see Note 9). The swap agreement converted a 9.34 percent fixed interest rate to an effective interest rate of 10.3 percent for the 1995 first quarter. In connection with the 1993 charges totaling $35.4 million for staff reductions (see Note 7), approximately $23.8 million has been disbursed. The Company has committed the remaining funds. As a result of the timing of certain union pension and welfare fund contributions, the remaining cash outflow associated with these charges are expected to occur over the next two years. The Company does not anticipate that its ongoing business operations will be affected by this reduction of staff and expects to fund the amounts through internally-generated funds. In addition to cash provided from operating activities, the Company has several established sources for future liquidity purposes, including several revolving credit and term loan agreements. Currently, $170.0 million is available for borrowing by the Company under these agreements. The Company anticipates that during 1995, cash for operating, investing and financing activities will continue to come from a combination of internally-generated funds and external financing. -18- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security-Holders --------------------------------------------------- (a) The Company's annual meeting of stockholders was held on April 18,1995. (c) The following matters were voted on at the annual meeting: 1. The stockholders (with Class A and Class B stockholders voting separately) elected all of management's nominees for election as Class A Directors and Class B Directors. The results of the vote taken was as follows:
For Withheld --- -------- Class A Directors: Louis V. Gerstner, Jr. 85,591,845 703,525 A. Leon Higginbotham, Jr. 85,537,609 757,761 Robert A. Lawrence 85,596,511 698,859 Charles H. Price II 85,612,219 683,151 Donald M. Stewart 85,602,338 693,032 Class B Directors: John F. Akers 411,383 0 Richard L. Gelb 411,383 0 Marian S. Heiskell 411,383 0 Ruth S. Holmberg 411,383 0 George B. Munroe 411,383 0 George L. Shinn 411,383 0 Arthur Ochs Sulzberger 411,383 0 Judith P. Sulzberger 411,383 0 William O. Taylor 411,383 0 Cyrus R. Vance 411,383 0
2. The stockholders (with Class A and Class B stockholders voting together) approved the amendment of the Company's 1991 Executive Cash Bonus Plan and the 1991 Executive Stock Incentive Plan. The result of the vote taken was as follows: For 75,870,880 Against 8,737,292 Abstain 2,098,581 Total Against and Abstain* 10,835,873 - -------------------- * An abstention vote had the same effect as a vote against this matter. -19- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 PART II. OTHER INFORMATION 3. The stockholders (with Class A and Class B stockholders voting together) ratified the selection, by the Audit Committee of the Board of Directors, of Deloitte & Touche LLP, independent certified public accountants, as auditors of the Company for the year ending December 31, 1995. The result of the vote taken was as follows: For 86,280,639 Against 217,109 Abstain 209,005 Total Against and Abstain* 426,114 Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits -------- 3(ii) By-laws 27. Financial Data Schedule (b) Reports on Form 8-K ------------------- As reported in the Company's Annual Report on Form 10-K for the year ended December 31, 1994, on January 6, 1995, the Company filed a report on Form 8-K, dated December 12, 1994, relating to the disposition of the Company's interest in Gaspesia Pulp & Paper Company Ltd., a Canadian newsprint mill; and on March 1, 1995, the Company filed a report on Form 8- K, dated February 24, 1995, relating to the Company's announcement of an agreement with Narragansett Television, Inc. to purchase WTKR-TV, Norfolk, Virginia. - -------------------- * An abstention vote had the same effect as a vote against this matter. -20- THE NEW YORK TIMES COMPANY Form 10-Q March 31, 1995 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE NEW YORK TIMES COMPANY -------------------------- (Registrant) Date: May 11, 1995 /S/ D.L. Gorham ------------ --------------------------------- (signature) David L. Gorham Senior Vice President and Chief Financial Officer EXHIBIT INDEX 3(ii) By-laws 27. Financial Data Schedule EX-3.(II) 2 Exhibit 3(ii) THE NEW YORK TIMES COMPANY -------------- By-Laws -------------- As Amended by the Board of Directors October 21, 1968, February 26, 1969, March 24, 1971, March 29, 1972, March 28, 1973, May 30, 1973, November 28, 1973, March 27, 1974, March 31, 1976, April 26, 1977, January 30, 1978, October 25, 1978, April 3, 1979, July 23, 1979, March 20, 1980, May 15, 1980, March 19, 1981, March 18, 1982, February 17, 1983, April 28, 1983, February 16, 1984, July 18, 1985, February 20, 1986, April 30, 1986, October 16, 1986, February 19, 1987, February 18, 1988, March 16, 1989, February 15, 1990, February 21, 1991, February 20, 1992, February 18, 1993, October 21, 1993, December 16, 1993, February 17, 1994 and February 16, 1995. As Ratified by the Class B Stockholders April 22, 1969 and the Class A and Class B Stockholders (Article XI only) April 19, 1988 BY-LAWS OF THE NEW YORK TIMES COMPANY As Amended by the As Ratified by the Board of Directors Class B Stockholders October 21, 1968 April 22, 1969 February 26, 1969 and the Class A and March 24, 1971 Class B Stockholders March 29, 1972 (Article XI only) March 28, 1973 (April 19, 1988) May 30, 1973 November 28, 1973 March 27, 1974 March 31, 1976 April 26, 1977 January 30, 1978 October 25, 1978 April 3, 1979 July 23, 1979 March 20, 1980 May 15, 1980 March 19, 1981 March 18, 1982 February 17, 1983 April 28, 1983 February 16, 1984 July 18, 1985 February 20, 1986 April 30, 1986 October 16, 1986 February 19, 1987 February 18, 1988 March 16, 1989 February 15, 1990 February 21, 1991 February 20, 1992 February 18, 1993 October 21, 1993 December 16, 1993 February 17, 1994 February 16, 1995 i I N D E X PAGE ARTICLE I. Stockholders............................................. 1 1. Annual Meeting.................................... 1 2. Special Meetings.................................. 1 3. Notice of Meetings................................ 1 4. Quorum............................................ 1 5. Voting............................................ 1 ARTICLE II. Closing Transfer Books; Setting Record Date.............. 2 1. Qualification of Voters........................... 2 2. Determination of Stockholders of Record for Other Purposes......................................... 2 ARTICLE III. Board of Directors....................................... 2 1. Number, Classification, Election and Qualifications................................... 2 2. Vacancies......................................... 2 3. Regular Meetings.................................. 3 4. Special Meetings.................................. 3 5. Quorum............................................ 3 6. Committees........................................ 4 7. Salaries.......................................... 4 8. Resignation....................................... 4 9. Telephonic Meetings............................... 4 ARTICLE IV. Officers................................................. 4 1. Appointment....................................... 4 2. Term of Office.................................... 4 3. The Chairman of the Board......................... 5 4. The Vice Chairman of the Board.................... 5 5. The President..................................... 5 6. Vice Presidents................................... 5 7. The Secretary..................................... 5 8. The Treasurer..................................... 5 9. Duties of Officers may be Delegated............... 6 ARTICLE V. Stock Certificates....................................... 6 1. Issuance of Stock Certificates.................... 6 2. Lost Stock Certificates........................... 6 3. Transfers of Stock................................ 6 4. Regulations....................................... 6 ARTICLE VI. Seal..................................................... 7 ARTICLE VII. Checks................................................... 7 ARTICLE VIII. Books of Account and Stock Book.......................... 7 ARTICLE IX. Fiscal Year.............................................. 7 ARTICLE X. Voting Securities........................................ 7 ARTICLE XI. Indemnification.......................................... 7 ARTICLE XII. Interest of Directors and Officers in Contracts with the Company................................................. 8 ARTICLE XIII. Notices.................................................. 8 ARTICLE XIV. Amendment................................................ 9 ii THE NEW YORK TIMES COMPANY BY-LAWS ARTICLE I STOCKHOLDERS 1. Annual Meeting. The Annual Meeting of Stockholders for the election of directors and for the transaction of such other business as may properly come before the meeting shall be held on the third Tuesday in April, at such time and place either within or without the State of New York as may be specified by the Board of Directors. 2. Special Meetings. Special meetings of the stockholders, to be held at such place either within or without the State of New York and for the purpose or purposes as may be specified in the notices of such meetings, may be called by the Chairman of the Board or the President and shall be called by the President or the Secretary at the request of a majority of the Board of Directors or of stockholders owning 25 per cent or more of the shares or stock of the Company issued and outstanding and entitled to vote on any action proposed by such stockholders for such meetings. Such request shall be in writing and shall state the purpose or purposes of the proposed meeting. 3. Notice of Meetings. Notice of the time, place and purpose or purposes of every meeting of stockholders shall be in writing, signed by the President or the Secretary, and shall be mailed by the Secretary, or the person designated by him to perform this duty, at least ten, and not more than fifty, days before the meeting, to each stockholder of record entitled to vote at such meeting and to each stockholder of record who would be entitled to have his stock appraised if the action proposed at such meeting were taken. Such notice shall be directed to a stockholder at his address as it appears on the stock book, unless he shall have filed with the Secretary a written request that notices intended for him be mailed to some other address, in which case it will be mailed to the address designated in such request. 4. Quorum. The holders of record of a majority of the shares of stock issued and outstanding and entitled to vote thereat, present in person or by proxy, shall be requisite and shall constitute a quorum at each meeting of stockholders for the transaction of business, except as otherwise provided by law, by the Certificate of Incorporation or by these By-laws; provided that, when any specified action is required to be voted upon by a class of stock voting as a class, the holders of a majority of the shares of such class shall be requisite and shall constitute a quorum for the transaction of such specified action. If, however, there shall be no quorum, the officer of the Company presiding as chairman of the meeting shall have the power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present, when any business may be transacted which might have been transacted at the meeting as first convened had there been a quorum. 5. Voting. Each stockholder entitled to vote on any action proposed at a meeting of stockholders shall be entitled to one vote in person or by proxy for each share of voting stock held of record by him. Every proxy must be executed in writing by the stockholder or by his duly authorized attorney. No proxy shall be valid after the expiration of eleven months from the date of its execution, unless the person executing it shall have specified therein its duration. 1 The vote for directors shall be by ballot, and the election of each director shall be decided by a plurality vote. Except as otherwise provided by law, by the Certificate of Incorporation, by other certificate filed pursuant to law or by these By-laws, votes on any other matters coming before any meeting of stockholders shall be decided by the vote of the holders of a majority of the shares represented at such meeting, in person or by proxy, and entitled to vote on the specific matter. Except as required by law, by the Certificate of Incorporation, by other certificate filed pursuant to law or by these By-laws, the chairman presiding at any meeting of stockholders may rule on questions of order or procedure coming before the meeting or submit such questions to the vote of the meeting, which vote may at his direction be by ballot. The chairman shall submit any such questions to the vote of the meeting at the request of any stockholder entitled to vote present in person or by proxy at the meeting, which vote shall be by ballot. ARTICLE II CLOSING TRANSFER BOOKS; SETTING RECORD DATE 1. Qualification of Voters. The Board of Directors may prescribe a period, not exceeding fifty days prior to the date of any meeting of the stockholders or prior to the last day on which the consent or dissent of stockholders may be effectively expressed for any purpose without a meeting, as the time as of which stockholders entitled to notice of and to vote at such a meeting or whose consent or dissent is required or may be expressed for any purpose, as the case may be, shall be determined, and all persons who were holders of record of voting stock at such time and no others shall be entitled to notice of and to vote at such meeting or to express their consent or dissent, as the case may be. 2. Determination of Stockholders of Record for Other Purposes. The Board of Directors may fix a time, not exceeding forty days preceding the date fixed for the payment of any dividend or for the making of any distribution or for the delivery of evidences of rights or evidences of interests arising out of any change, conversion or exchange of capital stock, as a record time for the determination of the stockholders entitled to receive any such dividend, distribution, rights or interests, and in such case only stockholders of record at the time so fixed shall be entitled to receive such dividend, distribution, rights or interests. ARTICLE III BOARD OF DIRECTORS 1. Number, Classification, Election and Qualifications. The affairs of the Company shall be managed by a Board of Directors consisting of fifteen members. For the purpose of election of directors only, and not for any other purpose, the fifteen directors shall be divided into two classes, the five directors whom the holders of Class A Common Stock are entitled to elect, to be designated the Class A directors, and the ten directors whom the Class B Common Stock are entitled to elect, to be designated the Class B directors. The directors shall, except as provided in Section 2 of this Article III, be elected by the classes of shares entitled to elect them, by ballot at each annual meeting of stockholders, and shall hold office until the next annual meeting of stockholders and until their successors shall be elected and qualify. All directors must be of full age and at least one shall be a citizen of the United States and a resident of New York State. 2. Vacancies. Any vacancy in the Board of Directors, whether caused by resignation, death, increase in the number of directors, disqualification or otherwise, may be filled by a majority of the directors in office 2 after the vacancy has occurred, although less than a quorum. A director so elected shall hold office for the unexpired term in respect of which such vacancy occurred. 3. Regular Meetings. A regular meeting of the Board shall be held in each year immediately following the Annual Meeting of Stockholders or if such meeting be adjourned, the final adjournment thereof at the same place as such meeting of stockholders. No notice of such meeting shall be necessary to the newly elected directors in order to legally constitute the meeting. Other regular meetings of the Board may be held at such time and place, either within or without the State of New York, as shall from time to time be determined by a resolution of the Board. Any business may be transacted at any regular meeting at which a quorum is present. The time and place of any such regular meeting may be changed (i) at the preceding regular meeting; or (ii) subsequent to the adjournment of the preceding regular meeting by consent in writing signed by a majority of the whole Board; provided, however, that in either case notice of such change be served on each director personally or by telegram two days or by mail five days prior to the date originally designated for such regular meeting. 4. Special Meetings. A special meeting of the Board of Directors may be held at the time fixed by resolution of the Board or upon call of the Chairman of the Board, the President or any two directors and may be held at any place within or without the State of New York. Except as otherwise provided by law, by the Certificate of Incorporation, by other certificate filed pursuant to law or by these By-laws, notice of the time and place of any special meeting of the Board shall be given by the Secretary or other person designated by him to perform this duty by serving the same personally or by telegram on each director at his post office address as the same shall appear on the books of the Company at least two days previous to such meeting or by mailing a copy of such notice, postage prepaid, to each director at such address at least five days previous to such meeting, provided, however, that no notice need be given to any director if waived by him either before or after the meeting or if he shall be present at such meeting, and any meeting of the Board may be held at any time without notice if all the directors then in office shall be present thereat. Any such notice shall also state the items of business which are expected to come before the meeting, and the items of business transacted at any special meeting of the Board shall be limited to those stated in such notice, unless all the directors are present at the meeting, or all those absent consent in writing either before or after the meeting, to the transaction of an item or items of business not stated in such notice. 5. Quorum. At all meetings of the Board, the presence of any five of the directors in office shall be necessary and sufficient to constitute a quorum for the transaction of business, and, except as otherwise required by law, by the Certificate of Incorporation, by other certificate filed pursuant to law or by these By-laws, the affirmative vote of a majority of the directors present at any meeting at which a quorum is present shall be necessary for the adoption of any business or resolution which may come before the meeting; provided, however, that in the absence of a quorum a majority of the directors present or any director solely present may adjourn any meeting from time to time until a quorum is present. No notice of any adjournment to a later hour on the date originally designated for the holding of a meeting need be given, but immediate telegraphic notice shall be given by the Secretary or other person designated by him to perform this duty to all directors of any adjournment to any subsequent date, and such notice shall be deemed sufficient, though less than the notice required by Section 3 if such meeting be an adjourned regular meeting of the Board, or by Section 4 if such meeting be an adjourned special meeting of the Board. 3 6. Committees. The Board of Directors may by resolution or resolutions passed by a majority of the whole Board designate one or more committees, each committee to consist of three or more of the directors, which, to the extent provided in said resolution or resolutions, shall have and may exercise powers of the Board of Directors in the management of the business and affairs of the Company and may have power to authorize the seal of the Company to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. All committees so appointed shall keep regular minutes of the business transacted at their meetings. 7. Salaries. Directors, as such, shall not receive any stated salary for their services, but by resolution of the Board may receive an annual retainer and, in addition, a fixed sum and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting, or adjourned session thereof, of the Board; provided that nothing herein contained shall be construed to preclude any director from serving the Company in any other capacity and receiving compensation therefor. Members of committees may be allowed such compensation as may be fixed from time to time by the Board for attending committee meetings. 8. Resignation. Any director may, at any time, resign, such resignation to take effect upon receipt of written notice thereof by the President or the Secretary, unless otherwise stated in the resignation. 9. Telephonic Meetings. One or more directors may participate in a meeting of the Board of Directors, or a committee designated pursuant to Section 6 of this Article III, by a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear and speak to each other. Participation in a meeting pursuant to this provision shall constitute actual attendance at such meeting. ARTICLE IV OFFICERS 1. Appointment. The Board of Directors at its first meeting after the Annual Meeting of Stockholders, or as soon as practicable after the election of directors in each year, may appoint from their number a Chairman of the Board and one or more Vice Chairmen of the Board. The Board of Directors shall appoint a President, a Secretary and a Treasurer and may also appoint one or more Vice Presidents, none of whom need be members of the Board, and may from time to time appoint such other officers as they may deem proper. Any two of the aforesaid offices, except those of President and Vice President, or President and Secretary, may be filled by the same person. The compensation of all officers of the Company shall be fixed by the Board. 2. Term of Office. The officers of the Company shall hold office at the pleasure of the Board of Directors. Any officer elected or appointed by the Board may be removed from office at any time for or without cause by the affirmative vote of a majority of the whole Board of Directors. Any officer may resign his office at any time, such resignation to take effect upon receipt of written notice thereof by the Company, unless otherwise stated in the resignation. If the office of any officer becomes vacant for any reason, the vacancy may be filled by the Board. 4 3. The Chairman of the Board. The Chairman of the Board shall be the chief executive officer of the Company. He shall preside at all meetings of the Board of Directors and all meetings of the stockholders. He shall have final authority subject to the control of the Board of Directors over the general policy and business of the Company, and shall have such other powers and duties as may from time to time be prescribed by the Board of Directors. 4. The Vice Chairman of the Board. Each Vice Chairman of the Board shall have such powers and duties as may from time to time be prescribed by the Board of Directors or by the Chairman of the Board. In the absence or inability to act of the Chairman of the Board, a Vice Chairman of the Board, in order of seniority or priority established by the Board, shall preside at all meetings of the Board of Directors and all meetings of the stockholders. 5. The President. The President shall be the chief operating officer of the Company and as such shall have the general control and management of the business and affairs of the Company subject, however, to the control of the Chairman of the Board. The President shall have the power, subject to the control of the Chairman of the Board, to appoint or discharge and to prescribe the duties and to fix the compensation of such agents and employees of the Company as he may deem necessary. He shall have, as does the Chairman of the Board, the authority to make and sign bonds, mortgages and other contracts and agreements in the name and on behalf of the Company, except when the Board of Directors by resolution instructs the same to be done by some other officer or agent. He shall see that all orders and resolutions of the Board of Directors are carried into effect and shall perform all other duties necessary to his office or properly required of him by the Board of Directors, subject, however, to the right of the directors to delegate any specific powers, except such as may by statute be exclusively conferred upon the President, to any other officer or officers of the Company. In the absence or inability to act of the Chairman of the Board, the President shall have the duties prescribed for the Chairman of the Board subject, however, to Section 4 of this Article IV. 6. Vice Presidents. Each Vice President shall have such powers and perform such duties as may be assigned to him from time to time by the Chairman of the Board or the President. 7. The Secretary. The Secretary shall attend all sessions of the Board and all meetings of the stockholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose, and shall perform like duties for committees when required. He shall give, or cause to be given, notice of all meetings of the stockholders and meetings of the Board of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or the President. He shall keep in safe custody the seal of the Company and shall see that it is affixed to all documents, the execution of which, on behalf of the Company, under its seal, is necessary or proper, and when so affixed may attest the same. 8. The Treasurer. The Treasurer shall, if required by the Board of Directors, give a bond for the faithful discharge of his duties in such amount and with such surety or sureties as the Board of Directors may determine; the cost of any such bond, and any expenses incurred in connection therewith, shall be borne by the Company. He shall have the custody of the corporate funds and securities, except as otherwise provided by the Board, and shall cause to be kept full and accurate accounts of receipts and disbursements in books belonging to the Company and shall deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositaries as may be designated by the Board of Directors. He 5 shall disburse the funds of the Company as may be ordered by the Board, taking proper vouchers for such disbursements, and shall render to the President and the directors, at the regular meetings of the Board, or whenever they may require it, an account of all his transactions as Treasurer and of the financial condition of the Company. 9. Duties of Officers may be Delegated. In the case of the absence of any officer, or for any other reason that the Board may deem sufficient, the President or the Board may delegate for the time being the powers or duties of such officer to any other officer or to any director. ARTICLE V STOCK CERTIFICATES 1. Issuance of Stock Certificates. The Capital Stock of the Company shall be represented by certificates signed by the Chairman or the President or a Vice President and by the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer and sealed with the seal of the Company. Such seal may be a facsimile, engraved or printed and where any such certificate is signed by a transfer agent or transfer clerk and by a registrar the signatures of any officers appearing thereon may be facsimiles, engraved or printed. 2. Lost Stock Certificates. The Board of Directors may by resolution adopt, from time to time, such regulations concerning the issue of any new or duplicate certificates for lost, stolen or destroyed stock certificates of the Company as shall not be inconsistent with the provisions of the laws of the State of New York as presently in effect or as they may hereafter be amended. 3. Transfers of Stock. Transfers of stock shall be made only on the stock transfer books of the Company, and, except in the case of any such certificate which has been lost, stolen or destroyed, in which case the resolutions of the Board then in effect respecting lost, stolen or destroyed stock certificates shall be complied with, such transfer shall only be made upon surrender to the Company of a certificate for shares for cancellation duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer. Upon the issue of a new certificate to the person entitled thereto, the Company shall cancel the old certificate and record the transaction upon its books. 4. Regulations. Except to the extent that the exercise of such power shall be prohibited or circumscribed by these By-laws, by the Certificate of Incorporation, or other certificate filed pursuant to law, or by statute, the Board of Directors shall have power to make such rules and regulations concerning the issuance, registration, transfer and cancellation of stock certificates as it shall deem appropriate. 6 ARTICLE VI SEAL The seal of the Company shall be circular in form, shall bear the legend: "The New York Times Company-1851 Inc. 1896" and shall contain in the center the letters NYT. ARTICLE VII CHECKS All checks or demands for money and notes of the Company shall be signed by such officer or officers or such other person or persons as the Board of Directors may from time to time designate. ARTICLE VIII BOOKS OF ACCOUNT AND STOCK BOOK The Company shall keep at its principal office correct books of account of all its business and transactions. A book to be known as the stock book, containing the names alphabetically arranged, of all persons who are stockholders of the Company, showing their places of residence, the number of shares of stock held by them respectively, the times when they respectively became the owners thereof, and the amount paid thereon, shall be kept at the principal office of the Company or its transfer agent. ARTICLE IX FISCAL YEAR The fiscal year of the Company shall be the calendar year unless otherwise provided by the Board of Directors. ARTICLE X VOTING SECURITIES Unless otherwise ordered by the Board of Directors, the President, or, in the event of his absence or inability to act, the Vice Presidents, in order of seniority or priority established by the Board or by the President, unless and until the Board shall otherwise direct, shall have full power and authority on behalf of the Company to attend and to act and to vote, or to execute in the name and on behalf of the Company a proxy authorizing an agent or attorney-in-fact for the Company to attend and to act and to vote at any meetings of security holders of corporations in which the Company may hold securities, and at such meetings he or his duly authorized agent or attorney-in-fact shall possess and may exercise any and all rights and powers incident to the ownership of such securities, and which as the owner thereof the Company might have possessed and exercised, if present. The Board of Directors by resolution from time to time may confer like powers upon any other person or persons. ARTICLE XI INDEMNIFICATION 1. Directors and Officers. The Company shall, to the fullest extent permitted by applicable law as the same exists or may hereafter be in effect, indemnify any person who is or was made or threatened to be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the Company to procure a judgment in its favor and an action by or in the right of any other corporation of any type or kind, domestic or foreign, or any partnership, joint venture, trust, employee benefit plan or 7 any other entity, which any director or officer of the Company is serving, has served or has agreed to serve in any capacity at the request of the Company, by reason of the fact that such person or such person's testator or intestate is or was or has agreed to become a director or officer of the Company, or is or was serving or has agreed to serve such other corporation, partnership, joint venture, trust, employee benefit plan or other entity in any capacity, against judgments, fines, amounts paid or to be paid in settlement, taxes or penalties, and costs, charges and expenses, including attorneys' fees, incurred in connection with such action or proceeding or any appeal therein; provided, however, that no indemnification shall be provided to any such person if a judgment or other final adjudication adverse to the director or officer establishes that (i) his or her acts were committed in bad faith or were the result of active and deliberate dishonesty and, in either case, were material to the cause of action so adjudicated or (ii) he or she personally gained in fact a financial profit or other advantage to which he or she was not legally entitled. 2. Non-Exclusivity. Nothing contained in this Article XI shall limit the right to indemnification and advancement of expenses to which any person would be entitled by law in the absence of this Article, or shall be deemed exclusive of any other rights to which such person seeking indemnification or advancement of expenses may have or hereafter may be entitled under law, any provision of the Certificate of Incorporation, or By-laws, any agreement approved by the Board of Directors, or a resolution of stockholders or directors; and, the adoption of any such resolution or entering into of any such agreement approved by the Board of Directors is hereby authorized. 3. Continuity of Rights. The indemnification and advancement of expenses provided by, or granted pursuant to, this Article XI shall (i) apply with respect to acts or omissions occurring prior to the adoption of this Article XI to the fullest extent permitted by law and (ii) survive the full or partial repeal or restrictive amendment hereof with respect to events occurring prior thereto. ARTICLE XII INTEREST OF DIRECTORS AND OFFICERS IN CONTRACTS WITH THE COMPANY A director or officer of the Company shall not be disqualified by his office from dealing or contracting with the Company either as a vendor, purchaser or otherwise, nor shall any transaction or contract of the Company be void or voidable by reason of the fact that any director or officer or any firm of which any director or officer is a member or any corporation of which any director or officer is a shareholder, officer or director, is in any way interested in such transaction or contract, provided that such transaction or contract is or shall be authorized, ratified or approved either (1) by a vote of a majority of a quorum of the Board of Directors, without counting in such majority or quorum any director so interested or member of a firm so interested, or a shareholder, officer or director of a corporation so interested, or (2) by the written consent, or by the vote at any stockholders' meeting of the holders of record of a majority of all the outstanding shares of stock of the Company entitled to vote on such transaction or contract; nor shall any director or officer be liable to account to this Company for any profits realized by or from or through any such transaction or contract of the Company authorized, ratified or approved as aforesaid by reason of the fact that he, or any firm of which he is a member or any corporation of which he is a shareholder, officer or director, was interested in such transaction or contract. Nothing herein contained shall create liability in the events above described or prevent the authorization, ratification or approval of such transactions or contracts in any other manner permitted by law. ARTICLE XIII NOTICES Whenever, under the provisions of these By-laws, notice is required to be given to any director, officer, or stockholder, it shall not be construed to mean personal notice, but unless otherwise expressly stated in these By-laws, such notice may be given in writing by depositing the same in a post office or letter box in a postpaid sealed wrapper, addressed to such stockholder, officer or director, at such 8 address as appears on the books of the Company, and such notice shall be deemed to have been given at the time when the same was thus mailed. ARTICLE XIV AMENDMENT These By-laws may be amended, altered, changed, added to or repealed by a majority vote of all the Class B Common Stock issued and outstanding and entitled to vote at any annual or special meeting of the stockholders, provided that such amendments are not inconsistent with any provisions of the Company's Certificate of Incorporation. The Board of Directors, at any regular or at any special meeting, by a majority vote of the whole Board, may amend, alter, change, add to or repeal these By-laws, provided that such amendments are not inconsistent with any provisions of the Company's Certificate of Incorporation, and provided further that if any By-law regulating an impending election of directors is adopted or amended or repealed by the Board, there shall be set forth in the notice of the next stockholders meeting for the election of directors the By-laws so adopted or amended or repealed, together with a concise statement of the changes made. 9 EX-27 3
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND CONDENSED CONSOLIDATED BALANCE SHEETS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1995 MAR-31-1995 174,780 39,370 271,224 29,925 32,789 573,749 1,839,190 675,246 3,287,941 496,600 638,020 10,867 0 1,753 1,529,451 3,287,941 0 571,165 0 307,558 0 0 7,344 50,173 24,484 25,689 0 0 0 27,359 .28 .28
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