-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DzFi7jYFCff7tgVIFhRXc60LLbX1KJNRujOtXqA9bEIfK3X9hbn0UBdDm3LSuniu HBX6+/6jbuNmM2aHfrsVYw== 0001157523-06-006944.txt : 20060718 0001157523-06-006944.hdr.sgml : 20060718 20060718101849 ACCESSION NUMBER: 0001157523-06-006944 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20060717 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Cost Associated with Exit or Disposal Activities ITEM INFORMATION: Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060718 DATE AS OF CHANGE: 20060718 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05837 FILM NUMBER: 06966366 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 8-K 1 a5189654.txt THE NEW YORK TIMES COMPANY 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 17, 2006 The New York Times Company - -------------------------------------------------------------------------------- (Exact name of Registrant as Specified in Its Charter) New York 1-5837 13-1102020 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 229 West 43rd Street, New York, New York 10036 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (212) 556-1234 -------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. Results of Operations and Financial Condition. On July 18, 2006, The New York Times Company (the "Company") issued a press release announcing the Company's earnings for the quarter ended June 25, 2006. On July 18, 2006, the Company also issued a press release announcing the Company's revenues for June 2006. Copies of these press releases are attached as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein. ITEM 2.05. Costs Associated with Exit or Disposal Activities. On July 18, 2006, the Company announced that it plans to consolidate its New York metro area printing into its newest facility in College Point, Queens, and sublease its older Edison, New Jersey, facility. As part of the consolidation, the Company expects a workforce reduction of approximately 250 full-time equivalent employees. The Company plans to facilitate the reductions through a variety of severance and buyout packages. The consolidation is expected to be completed in the second quarter of 2008. The Company is not able at this time to estimate the total charges for cost and expenses related to the consolidation. The Company will file an additional report or reports as and when it determines such estimates. A copy of the Company's press release regarding the consolidation of printing operations is attached as Exhibit 99.3 and is incorporated by reference herein. ITEM 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers. On July 17, 2006, Leonard P. Forman, Chief Financial Officer and Executive Vice President, informed the Company of his decision to retire in 2007, after a successor is named. A copy of the Company's press release announcing Mr. Forman's planned retirement is attached as Exhibit 99.4 and is incorporated by reference herein. Forward-Looking Statements Except for the historical information contained herein, the matters discussed in this current report on Form 8-K are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by our various markets and material increases in newsprint prices. They also include other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 25, 2005. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. 2 ITEM 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit 99.1 The New York Times Company Earnings Press Release dated July 18, 2006 Exhibit 99.2 The New York Times Company June Revenues Press Release dated July 18, 2006 Exhibit 99.3 The New York Times Company Press Release dated July 18, 2006 Exhibit 99.4 The New York Times Company Press Release dated July 18, 2006 3 SIGNATURE 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 hereunto duly authorized. THE NEW YORK TIMES COMPANY Date: July 18, 2006 By: /s/ Rhonda L. Brauer --------------------------------- Rhonda L. Brauer Secretary and Corporate Governance Officer 4 Exhibit List Exhibit 99.1 The New York Times Company Earnings Press Release dated July 18, 2006 Exhibit 99.2 The New York Times Company June Revenues Press Release dated July 18, 2006 Exhibit 99.3 The New York Times Company Press Release dated July 18, 2006 Exhibit 99.4 The New York Times Company Press Release dated July 18, 2006 5 EX-99.1 2 a5189654ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 The New York Times Company Reports 2006 Second-Quarter Results NEW YORK--(BUSINESS WIRE)--July 18, 2006--The New York Times Company announced today that 2006 second-quarter diluted earnings per share (EPS) were $.42, compared with $.42 in the second quarter of the prior year. Second-quarter net income was $61.3 million compared with $60.8 million in the same period of 2005. The 2006 second-quarter results include a pre-tax charge of $9.1 million ($5.3 million after tax or $.04 per share) for costs associated with a staff reduction program announced in September 2005. The 2005 second-quarter results included a pre-tax charge of $10.0 million ($6.1 million after tax, or $.04 per share) for costs associated with a staff reduction program that was announced in May 2005. The Company only presents EPS on a generally accepted accounting principles (GAAP) basis. This differs from the pro forma EPS provided by databases such as First Call and Reuters. "Our second-quarter results reflect higher advertising, circulation and other revenues at The New York Times Media Group and the Regional Media Group, partly because of the introduction of innovative new products," said Janet L. Robinson, president and chief executive officer. "Performance at the New England Media Group was adversely affected by consolidation among important advertisers and by a continued challenging economic environment. "The Web sites in our News Media Group posted solid gains in advertising revenues - up 25 percent in the quarter, which is a particularly strong showing given the large revenue base for this increase. Results in the quarter benefited from the redesign of NYTimes.com, which has provided enhanced features for readers and improved placements for advertisers. At many of our sites we have added videos, podcasts and blogs that have been very well received by our readers and advertisers. "About.com turned in another quarter of outstanding performance. All three of its revenue streams - display advertising, cost-per-click advertising and e-commerce - were strong in the quarter, resulting in an overall revenue increase of 63 percent. "In total, our Internet businesses now account for 7.7 percent of our overall revenues, up from 5.8 percent in the second quarter of last year as a result of strong demand for online advertising across our properties. "At our Broadcast Media Group, results improved mainly because of the increased political advertising. We expect further improvement this quarter, particularly as we move closer to elections. "On the cost side, we are benefiting from the changes we made to our expense structure in 2005. Total costs grew 2.9 percent in the second quarter. We expect the rate of growth for costs - excluding those for staff reductions and the extra week in our fiscal calendar - to be lower for the balance of the year. "As we move forward, we remain focused on improving our margins by continuing to enhance our existing businesses, developing leadership positions in key content areas and staying ahead of the curve through our research and development unit. We continue to search for opportunities to extend our strong brands and high-quality content across multiple platforms. At the same time, we remain dedicated to reducing costs and improving the efficiency and effectiveness of our organization." Second-Quarter Financial Results All comparisons are for the second quarter of 2006 to the second quarter of 2005, unless otherwise noted. Revenues Total revenues rose 1.6 percent to $858.7 million compared with $845.1 million. Advertising revenues grew 1.0 percent, circulation revenues were up 0.6 percent and other revenues increased 12.6 percent. In the second quarter, the Company was adversely affected by the timing of Easter, which was in April this year but was in March in 2005. Traditionally Easter is a time of reduced overall advertising since classified advertising typically declines on the holiday, while retail advertising normally increases in the days leading up to Easter. Costs and Expenses Total costs and expenses increased 2.9 percent to $759.7 million from $738.5 million. Excluding those related to staff reductions, total costs and expenses rose 3.0 percent. The increase includes: -- 0.8 percent attributable to increased raw materials expense, -- 0.7 percent attributable to higher benefits expense, -- 0.5 percent attributable to higher distribution and outside printing expense and -- 0.4 percent attributable to higher promotion expense. Newsprint expense rose 7.4 percent, mainly from higher prices partially offset by lower consumption. Stock-based compensation expense decreased to $4.2 million ($2.4 million after tax or $.02 per share) from $6.6 million ($4.5 million after tax or $.03 per share), partially offsetting the increase in expenses discussed above. In 2006 compensation expense is not being recorded for the Company's employee stock purchase plan as a result of changes implemented in 2006. Total costs and expenses excluding staff reductions, raw materials and depreciation and amortization increased 2.2 percent. Reconciliations to total costs and expenses excluding these items (non-GAAP financial measures) are included in the exhibits to this release. Operating Profit Operating profit decreased to $99.1 million from $106.5 million due to higher expenses, as discussed above, partially offset by growth in revenues. Business Segment Results News Media Group Total News Media Group revenues increased 0.5 percent to $800.2 million from $795.9 million. Advertising revenues decreased 0.7 percent, mainly due to weakness in print advertising at the New England Media Group partially offset by higher online revenues across the News Media Group. Circulation revenues were up 0.6 percent due to growth at The New York Times Media Group and the Regional Media Group partially offset by declines at the New England Media Group. Other revenues increased 12.3 percent largely because of the introduction of TimesSelect and higher commercial printing revenues. Operating profit for the News Media Group decreased to $93.1 million from $107.2 million, reflecting higher expenses, as discussed above, partially offset by growth in revenues. Broadcast Media Group Broadcast Media Group revenues rose 5.2 percent to $39.1 million from $37.2 million, due to revenues resulting from the acquisition of KAUT-TV in November 2005 and increased political advertising revenues. Excluding KAUT-TV, Broadcast Media Group revenues increased 1.6 percent. Operating profit for the Broadcast Media Group rose 5.7 percent to $9.7 million from $9.2 million. Excluding KAUT-TV, operating profit increased mainly because of higher advertising revenues and lower expenses. About.com About.com's second-quarter revenues increased 62.7 percent to $19.4 million from $12.0 million. Operating profit increased to $7.3 million from $2.5 million. The Company expects that About.com will add to earnings this year. Other Financial Data Internet Revenues In the second quarter, the Company's Internet-related businesses generated $66.1 million in revenue, up from $49.0 million. Internet-related businesses include our digital archives, the Web sites of our newspapers and broadcast properties, and About.com. In total, Internet businesses accounted for about 7.7 percent of the Company's revenues in the second quarter versus 5.8 percent in the same quarter a year ago. Joint Ventures Net income from joint ventures increased in the second quarter to $8.8 million compared with net income of $3.1 million because of stronger performance at all of the properties in which the Company has equity interests. In April the Company exercised its right to require Discovery Communications, Inc. (DCI) to purchase its 50 percent investment in the Discovery Times Channel, a digital cable channel. The Company is currently negotiating the price with DCI and expects to complete the transaction before the end of the year. Income Taxes The effective income tax rate decreased to 35.5 percent compared with 38.5 percent as the Company benefited from the closing of certain tax audits. Interest Expense-net Interest expense-net increased to $13.2 million from $11.8 million mainly because of higher levels of debt outstanding and higher short-term interest rates. Shares In the second quarter, the Company repurchased 0.5 million Class A shares at a cost of $13.1 million. Approximately $124 million remained at the end of the second quarter from the Company's current share repurchase authorization. Class A and Class B common shares outstanding at the end of the quarter totaled 144.6 million shares. Cash and Total Debt At the end of the quarter, the Company's cash and cash equivalents were approximately $41 million and total debt was approximately $1.4 billion. Capital Expenditures In the second quarter, the Company's capital expenditures totaled approximately $80 million. This amount includes both the Company's and its development partner's expenditures for its new headquarters building. The Company's capital expenditures, excluding its development partner's expenditures, were approximately $56 million, which included approximately $40 million for its new headquarters. 2006 Expectations Below are the Company's expectations for 2006. -- The Company's revenues will include a full year of revenue from About.com, which is expected to have revenue growth above the industry average of 30 percent as well as double-digit operating profit growth. -- Newsprint cost per ton - Growth rate expected to be 11 to 13 percent. -- Depreciation and amortization - $154 to $158 million (excluding the effect of the consolidation of the New York metro area printing plants). -- Net income from joint ventures - $20 to $24 million. -- Interest expense - $51 to $55 million. -- Tax rate - 39.2 percent. -- Capital expenditures - Under GAAP, total capital expenditures for both the Company and its development partner in its new headquarters building appear on the Company's financial statements. Company* $355 to $385 million Development partner $125 to $135 " -------------------- Total $480 to $520 million *Includes $240 to $270 million for new headquarters Conference Call Information The Company's second-quarter earnings conference call will be held on Tuesday, July 18, at 11 a.m. E.T. To access the call, dial 800-289-0494 (in the U.S.) and 913-981-5520 (international callers). Participants should dial into the conference approximately 10 minutes before the start time. Online listeners can link to the live webcast at www.nytco.com/investors.html. A digital replay will be available at 888-203-1112 (in the U.S.) and 719-457-0820 (international callers) beginning approximately two hours after the call until 5 p.m. E.T. on Thursday, July 20. The access code is 6770894. An archive of webcast will be available beginning two hours after the call for 30 days at www.nytco.com/investors.html. In addition, an MP3 file of the call can be downloaded from the Company's site. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by our various markets and material increases in newsprint prices. They also include other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 25, 2005. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. The New York Times Company (NYSE: NYT), a leading media company with 2005 revenues of $3.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, nine network-affiliated television stations, two New York City radio stations and 35 Web sites, including NYTimes.com, Boston.com and About.com. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment. This press release can be downloaded from www.nytco.com Exhibits: Condensed Consolidated Statements of Income Segment Information News Media Group Revenues by Operating Segment Footnotes - Reconciliation to Costs and Expenses Excluding Certain Items THE NEW YORK TIMES COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Statements of Income are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). (Dollars and shares in thousands, except per share data) Second Quarter -------------------------------------- 2006 2005 % Change ------------ ------------ ------------ Revenues Advertising $ 577,984 $ 572,363 1.0% Circulation 219,705 218,482 0.6% Other (a) 61,059 54,224 12.6% ------------ ------------ Total 858,748 845,069 1.6% Costs and expenses (b) 759,675 738,527 2.9% ------------ ------------ Operating profit 99,073 106,542 -7.0% Net income from joint ventures 8,770 3,138 * Interest expense - net 13,234 11,844 11.7% Other income - 1,250 N/A ------------ ------------ Income from continuing operations before income taxes and minority interest 94,609 99,086 -4.5% Income taxes 33,540 38,110 -12.0% Minority interest in net loss/(income) of subsidiaries 244 (161) * ------------ ------------ Net Income $ 61,313 $ 60,815 0.8% ============ ============ Average Number of Common Shares: Basic 144,792 145,524 -0.5% Diluted 144,943 146,003 -0.7% Basic Earnings Per Share $ 0.42 $ 0.42 0.0% ============ ============ Diluted Earnings Per Share $ 0.42 $ 0.42 0.0% ============ ============ Dividends Per Share $ 0.175 $ 0.165 6.1% ============ ============ Six Months -------------------------------------- 2006 2005 % Change ------------ ------------ ------------ Revenues Advertising $ 1,132,611 $ 1,106,142 2.4% Circulation 439,986 438,099 0.4% Other (a) 117,923 106,411 10.8% ------------ ------------ Total 1,690,520 1,650,652 2.4% Costs and expenses (b) 1,523,171 1,458,984 4.4% Gain on sale of assets (c) - 122,946 N/A ------------ ------------ Operating profit 167,349 314,614 -46.8% Net income from joint ventures 10,737 2,890 * Interest expense - net 25,758 26,092 -1.3% Other income - 2,500 N/A ------------ ------------ Income from continuing operations before income taxes and minority interest 152,328 293,912 -48.2% Income taxes 56,397 121,768 -53.7% Minority interest in net loss/(income) of subsidiaries 337 (280) * ------------ ------------ Net Income $ 96,268 $ 171,864 -44.0% ============ ============ Average Number of Common Shares: Basic 144,978 145,696 -0.5% Diluted 145,166 146,377 -0.8% Basic Earnings Per Share $ 0.66 $ 1.18 -44.1% ============ ============ Diluted Earnings Per Share $ 0.66 $ 1.17 -43.6% ============ ============ Dividends Per Share $ 0.340 $ 0.320 6.3% ============ ============ * Represents an increase/decrease in excess of 100%. See footnotes page for additional information. THE NEW YORK TIMES COMPANY SEGMENT INFORMATION Revenues, Operating Profit (Loss) and Depreciation & Amortization are prepared in accordance with GAAP. (Dollars in thousands) -------------------------------------- Second Quarter -------------------------------------- 2006 2005 % Change ------------ ------------ ------------ Revenues - -------- News Media Group $ 800,190 $ 795,934 0.5% Broadcast Media Group 39,112 37,184 5.2% About.com (d) 19,446 11,951 62.7% ------------ ------------ Total $ 858,748 $ 845,069 1.6% ============ ============ Operating Profit (Loss) - ----------------------- News Media Group $ 93,144 $ 107,236 -13.1% Broadcast Media Group 9,685 9,165 5.7% About.com (d) 7,309 2,514 * Corporate (11,065) (12,373) -10.6% ------------ ------------ Total $ 99,073 $ 106,542 -7.0% ============ ============ Depreciation & Amortization - --------------------------- News Media Group $ 31,098 $ 29,359 5.9% Broadcast Media Group 2,670 2,056 29.9% About.com (d) 2,946 2,907 1.3% Corporate 1,516 1,726 -12.2% ------------ ------------ Total $ 38,230 $ 36,048 6.1% ============ ============ -------------------------------------- Six Months -------------------------------------- 2006 2005 % Change ------------ ------------ ------------ Revenues - -------- News Media Group $ 1,581,181 $ 1,569,100 0.8% Broadcast Media Group 71,066 68,501 3.7% About.com (d) 38,273 13,051 * ------------ ------------ Total $ 1,690,520 $ 1,650,652 2.4% ============ ============ Operating Profit (Loss) - ----------------------- News Media Group $ 161,455 $ 198,545 -18.7% Broadcast Media Group 12,882 13,216 -2.5% About.com (d) 14,873 2,656 * Corporate (21,861) (22,749) -3.9% Gain on Sale of Assets (c) - 122,946 N/A ------------ ------------ Total $ 167,349 $ 314,614 -46.8% ============ ============ Depreciation & Amortization - --------------------------- News Media Group $ 62,047 $ 59,024 5.1% Broadcast Media Group 5,003 4,042 23.8% About.com (d) 5,905 3,127 88.8% Corporate 3,084 3,456 -10.8% ------------ ------------ Total $ 76,039 $ 69,649 9.2% ============ ============ * Represents an increase in excess of 100%. See footnotes page for additional information. THE NEW YORK TIMES COMPANY NEWS MEDIA GROUP REVENUES BY OPERATING SEGMENT Revenues are prepared in accordance with GAAP. (Dollars in thousands) 2006 ------------------------- Second % Change Quarter vs. 2005 ------------ ------------ The New York Times Media Group Advertising $ 316,045 1.4% Circulation 157,646 2.8% Other 41,788 11.2% ------------ Total $ 515,479 2.5% ------------ New England Media Group Advertising $ 108,608 -10.4% Circulation 40,276 -7.2% Other 11,622 16.2% ------------ Total $ 160,506 -8.1% ------------ Regional Media Group Advertising $ 96,343 5.3% Circulation 21,783 0.4% Other 6,079 12.4% ------------ Total $ 124,205 4.7% ------------ Total News Media Group Advertising $ 520,996 -0.7% Circulation 219,705 0.6% Other (a) 59,489 12.3% ------------ Total $ 800,190 0.5% ============ 2006 ------------------------- Six % Change Months vs. 2005 ------------ ------------ The New York Times Media Group Advertising $ 623,856 1.7% Circulation 314,119 2.3% Other 81,821 8.1% ------------ Total $ 1,019,796 2.4% ------------ New England Media Group Advertising $ 210,145 -8.9% Circulation 80,572 -6.5% Other 21,027 16.6% ------------ Total $ 311,744 -6.9% ------------ Regional Media Group Advertising $ 192,392 5.3% Circulation 45,295 1.0% Other 11,954 11.5% ------------ Total $ 249,641 4.7% ------------ Total News Media Group Advertising $ 1,026,393 0.0% Circulation 439,986 0.4% Other (a) 114,802 9.9% ------------ Total $ 1,581,181 0.8% ============ See footnotes page for additional information. THE NEW YORK TIMES COMPANY FOOTNOTES (a) Other revenue consists primarily of revenue from wholesale delivery operations, news services and direct marketing. (b) The Company recognized charges of $9.1 million for costs associated with staff reductions in the second quarter of 2006 and $18.4 million for the full six months of 2006 compared with a charge of $10.0 million for the second quarter and first six months of 2005. (c) In the first quarter of 2005, the Company recognized a $122.9 million pre-tax gain from the sale of assets. The Company's sale of its current headquarters building resulted in a total pre- tax gain of $143.9 million, of which $114.5 million was recognized in the first quarter of 2005. The remainder of the gain is being deferred and amortized under GAAP and is offsetting the leaseback expense in connection with the sale. Additionally, in the first quarter of 2005, the Company sold property in Sarasota, Fla., which resulted in a pre-tax gain of $8.4 million. (d) On March 18, 2005, the Company purchased About, Inc., a leading online consumer information provider. Fiscal year 2006 includes results for About.com for the full six months compared to results for nine days in the first quarter and the entire second quarter of 2005. Reconciliation to Costs and Expenses Excluding Certain Items Total costs and expenses include expenses related to staff reductions. The Company believes that excluding this item (a non-GAAP financial measure) provides investors with helpful supplemental information on the Company's underlying operating expenses that is used by management in its financial and operational decision-making. Total costs and expenses also include depreciation and amortization and raw material costs. The Company believes that excluding these items (a non-GAAP financial measure) provides a useful measure of manageable costs. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. A reconciliation to costs and expenses excluding these items is below: -------------------------------------- (In thousands) Second Quarter -------------------------------------- 2006 2005 % Change ------------ ------------ ------------ Costs and Expenses $ 759,675 $ 738,527 2.9% Less: Staff reduction expenses 9,052 9,952 ------------ ------------ ------------ Sub-total 750,623 728,575 3.0% Less: Depreciation & amortization 38,230 36,048 ------------ ------------ ------------ Sub-total 712,393 692,527 2.9% Less: Raw materials 84,478 78,353 ------------ ------------ ------------ Total $ 627,915 $ 614,174 2.2% ============ ============ ============ CONTACT: The New York Times Company Catherine J. Mathis, 212-556-1981 mathis@nytimes.com or Paula Schwartz, 212-556-5224 schwap@nytimes.com EX-99.2 3 a5189654ex99-2.txt EXHIBIT 99.2 Exhibit 99.2 The New York Times Company Reports June Revenues NEW YORK--(BUSINESS WIRE)--July 18, 2006--The New York Times Company announced today that in June 2006 advertising revenues for the Company's business units increased 0.7% and total Company revenues increased 1.2% compared with June 2005. "To date in July, print advertising has been challenging, especially in categories such as studio entertainment, automotive and corporate, where we are experiencing declines," said Janet L. Robinson, president and CEO. "At the same time, we continue to benefit from solid gains at our digital properties, particularly About.com." All comparisons are for June 2006 to June 2005 unless otherwise noted: The New York Times Media Group - Advertising revenues for The New York Times Media Group rose 1.5%. National advertising revenues increased as strength in banking, financial-B2B/insurance and telecommunications advertising offset softness in the studio entertainment, national automotive and hotel ad categories. Retail advertising revenues decreased due to weakness in department and fashion apparel store advertising. Classified advertising revenues declined as softness in automotive and help-wanted advertising offset solid gains in real estate advertising. New England Media Group - Advertising revenues for the New England Media Group decreased 10.0%. National advertising revenues were lower on softness in national automotive, telecommunications, travel and entertainment advertising. Retail advertising revenues decreased largely due to the consolidation of the group's two largest department store advertisers. Classified advertising revenues decreased because of weakness in automotive, real estate and help-wanted advertising. Regional Media Group - Advertising revenues for the Regional Media Group grew 3.3%. Retail advertising revenues increased as growth in home improvement and banking advertising offset weakness in telecommunications advertising. Classified advertising revenues outpaced last year as strong gains in real estate advertising offset softer automotive and help-wanted advertising. The Internet ad revenues included in the three media groups above increased 22.7% due to continued robust growth in both display and classified advertising. In the second quarter, Internet ad revenues rose 25.0%, and year-to-date they increased 24.0%. TimesSelect, the fee-based product on NYTimes.com that includes The Times's distinctive columnists and extensive access to its archives, currently has approximately 513,000 subscribers, with about 63% receiving TimesSelect as a benefit of their home-delivery subscriptions and 37% receiving it from online-only subscriptions. Circulation revenues for June were on a par with last year. Circulation revenues increased at The New York Times Media Group and the Regional Media Group, but declined at the New England Media Group. Broadcast Media Group - Advertising revenues grew 10.0% at the Broadcast Media Group, which benefited from the acquisition of KAUT-TV. Excluding KAUT-TV, advertising revenues increased 6.3% mainly due to political advertising. About.com - Advertising revenues for About.com rose 38.0%. June's growth was due to significant increases in both cost-per-click and display advertising. Display advertising increased on growth in the retail, telecommunications, technology, food, pharmaceutical and financial ad categories. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by our various markets and material increases in newsprint prices. They also include other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 25, 2005. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. The New York Times Company (NYSE: NYT), a leading media company with 2005 revenues of $3.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, nine network-affiliated television stations, two New York City radio stations and 35 Web sites, including NYTimes.com, Boston.com and About.com. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment. This press release can be downloaded from www.nytco.com THE NEW YORK TIMES COMPANY 2006 TOTAL COMPANY REVENUES (a) JUNE AND YEAR TO DATE - ---------------------------------------------------------------------- Total Company Revenues ($ 000's) June Year to Date ------------------------------------------------------- % % 2006 2005 Change 2006 2005 Change --------- --------- ------ ---------- --------- ------ Advertising Revenues News Media National(b) $68,356 $68,187 +0.2 $452,657 $456,347 -0.8 Retail(c) 35,876 36,656 -2.1 232,578 235,220 -1.1 Classified(d) 49,137 50,135 -2.0 309,338 304,697 +1.5 Other Ad Revenue(e) 4,956 4,798 +3.3 31,819 30,323 +4.9 --------- --------- ----------- ----------- Sub-Total 158,324 159,775 -0.9 1,026,393 1,026,587 -0.0 Broadcast Media 11,617 10,560 +10.0 69,862 66,958 +4.3 --------- --------- ----------- ----------- Sub-Total 169,941 170,335 -0.2 1,096,255 1,093,545 +0.2 About.com 5,809 4,210 +38.0 36,355 12,597 N/A --------- --------- ----------- ----------- Total Advertising Revenues 175,750 174,546 +0.7 1,132,611 1,106,142 +2.4 Circulation Revenues 67,285 66,868 +0.6 439,986 438,099 +0.4 Other Revenues (f) 19,996 18,510 +8.0 117,923 106,411 +10.8 --------- --------- ----------- ----------- Total Company Revenues $263,031 $259,924 +1.2 $1,690,520 $1,650,652 +2.4 ========= ========= =========== =========== - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes all ad revenue from the International Herald Tribune. (c) Includes all preprint revenues. (d) Includes legal advertising. (e) Primarily includes ad revenue from the Regional Media Group's magazines. (f) Primarily includes revenues from wholesale delivery operations, news services, direct marketing, digital archives, commercial printing and TimesSelect. THE NEW YORK TIMES COMPANY 2006 TOTAL COMPANY REVENUES (a) SECOND QUARTER - ---------------------------------------------------------------------- Total Company Revenues ($ 000's) Second Quarter -------------------------------------- % 2006 2005 Change ------------ ------------ ------------ Advertising Revenues News Media National (b) $227,200 $228,305 -0.5 Retail (c) 121,658 121,894 -0.2 Classified (d) 155,331 158,511 -2.0 Other Ad Revenue (e) 16,807 15,751 +6.7 ------------ ------------ Sub-Total 520,996 524,460 -0.7 Broadcast Media 38,542 36,355 +6.0 ------------ ------------ Sub-Total 559,537 560,815 -0.2 About.com 18,447 11,547 +59.7 ------------ ------------ Total Advertising Revenues 577,984 572,363 +1.0 Circulation Revenues 219,705 218,482 +0.6 Other Revenues (f) 61,059 54,224 +12.6 ------------ ------------ Total Company Revenues $858,748 $845,069 +1.6 ============ ============ - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes all ad revenue from the International Herald Tribune. (c) Includes all preprint revenues. (d) Includes legal advertising. (e) Primarily includes ad revenue from the Regional Media Group's magazines. (f) Primarily includes revenues from wholesale delivery operations, news services, direct marketing, digital archives, commercial printing and TimesSelect. THE NEW YORK TIMES COMPANY 2006 ADVERTISING REVENUES (a) JUNE AND YEAR TO DATE - ---------------------------------------------------------------------- Total Company Advertising Revenues ($ 000's) June Year to date -------------------------------------------------------- % % 2006 2005 Change 2006 2005 Change -------- -------- ------ ---------- -------- ------ News Media Group New York Times Media Group(b) $95,895 $94,503 +1.5 $623,856 $613,228 +1.7 New England Media Group(c) 33,906 37,661 -10.0 210,145 230,586 -8.9 Regional Media Group 28,524 27,611 +3.3 192,392 182,773 +5.3 -------- -------- ---------- ---------- Sub-Total 158,324 159,775 -0.9 1,026,393 1,026,587 -0.0 Broadcast Media Group(d) 11,617 10,560 +10.0 69,862 66,958 +4.3 -------- -------- ---------- ---------- Sub-Total 169,941 170,335 -0.2 1,096,255 1,093,545 +0.2 About.com 5,809 4,210 +38.0 36,355 12,597 N/A -------- -------- ---------- ---------- Total Company Ad Revenues $175,750 $174,546 +0.7 $1,132,611 $1,106,142 +2.4 ========= ========= ========== =========== - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) The New York Times, NYTimes.com, International Herald Tribune and WQXR-FM. (c) The Boston Globe, Boston.com and the Worcester Telegram & Gazette. (d) Beginning in November 2005, includes the results of KAUT-TV, purchased November 3, 2005. Excluding KAUT-TV, advertising revenues were up 6.3% in June and up 0.5% year to date. THE NEW YORK TIMES COMPANY 2006 ADVERTISING REVENUES (a) SECOND QUARTER - ---------------------------------------------------------------------- Total Company Advertising Revenues ($ 000's) Second Quarter -------------------------------------- % 2006 2005 Change ------------ ------------ ------------ News Media Group New York Times Media Group(b) $316,045 $311,762 +1.4 New England Media Group(c) 108,608 121,179 -10.4 Regional Media Group 96,343 91,519 +5.3 ------------ ------------ Sub-Total 520,996 524,460 -0.7 Broadcast Media Group(d) 38,542 36,355 +6.0 ------------ ------------ Sub-Total 559,537 560,815 -0.2 About.com 18,447 11,547 +59.7 ------------ ------------ Total Company Ad Revenues $577,984 $572,363 +1.0 ============ ============ - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) The New York Times, NYTimes.com, International Herald Tribune and WQXR-FM. (c) The Boston Globe, Boston.com and the Worcester Telegram & Gazette. (d) Beginning in November 2005, includes the results of KAUT-TV, purchased November 3, 2005. Excluding KAUT-TV, advertising revenues were up 2.4% in the second quarter. - ---------------------------------------------------------------------- THE NEW YORK TIMES COMPANY 2006 NEWS MEDIA AD REVENUE GROWTH BY CLASSIFIED CATEGORY JUNE, SECOND QUARTER AND YEAR TO DATE - ---------------------------------------------------------------------- % Change % Change % Change June '06 Q2 '06 YTD '06 vs. June '05 vs. Q2 '05 vs. YTD '05 -------------------------------------- News Media Help Wanted -8.9 -9.0 -5.4 Real Estate +13.8 +13.7 +19.9 Automotive -18.3 -16.5 -14.9 - ---------------------------------------------------------------------- THE NEW YORK TIMES COMPANY 2006 PRINT ADVERTISING VOLUME (a) (Inches in thousands, Preprints in thousands of copies) JUNE AND YEAR TO DATE - ---------------------------------------------------------------------- June Year to Date - ---------------------------------------------------------------------- % % 2006 2005 Change 2006 2005 Change -------- -------- -------- ---------- ---------- -------- National(b) 173.7 179.6 -3.3 1,166.0 1,183.1 -1.4 Retail 474.8 481.1 -1.3 3,097.2 3,164.0 -2.1 Classified 746.2 751.6 -0.7 4,859.9 4,858.6 +0.0 -------- -------- ---------- ---------- Total ROP 1,394.8 1,412.3 -1.2 9,123.0 9,205.6 -0.9 -------- -------- ---------- ---------- Part Run/ Zoned 184.1 183.3 +0.5 1,015.8 1,065.9 -4.7 -------- -------- ---------- ---------- Total 1,578.9 1,595.6 -1.0 10,138.8 10,271.5 -1.3 ======== ======== ========== ========== Preprints 216,185 222,024 -2.6 1,403,055 1,415,641 -0.9 - ---------------------------------------------------------------------- (a) Advertising volume is based on preliminary internal data, which may be updated in subsequent reports and may not be indicative of advertising revenue or operating profit. Numbers may not add due to rounding. (b) Includes all ad volume from the International Herald Tribune. THE NEW YORK TIMES COMPANY 2006 PRINT ADVERTISING VOLUME (a) (Inches in thousands, Preprints in thousands of copies) SECOND QUARTER - ---------------------------------------------------------------------- Second Quarter - ---------------------------------------------------------------------- 2006 2005 Change ------------ ------------ ------------ National (b) 584.3 594.0 -1.6 Retail 1,590.1 1,604.6 -0.9 Classified 2,483.4 2,518.9 -1.4 ------------ ------------ Total ROP 4,657.8 4,717.5 -1.3 ------------ ------------ Part Run/ Zoned 555.4 583.7 -4.9 ------------ ------------ Total 5,213.2 5,301.3 -1.7 ============ ============ Preprints 716,905 727,570 -1.5 - ---------------------------------------------------------------------- (a) Advertising volume is based on preliminary internal data, which may be updated in subsequent reports and may not be indicative of advertising revenue or operating profit. Numbers may not add due to rounding. (b) Includes all ad volume from the International Herald Tribune. CONTACT: The New York Times Company Catherine J. Mathis, 212-556-1981 mathis@nytimes.com or Paula Schwartz, 212-556-5224 schwap@nytimes.com EX-99.3 4 a5189654ex99-3.txt EXHIBIT 99.3 Exhibit 99.3 The New York Times Plans to Consolidate New York Print Run at Newest Facility in College Point, Queens and Sublease Older Edison, New Jersey, Printing Plant in Early 2008 The Times Also Plans Transition from Traditional 54 Inch "Broadsheet" Size to Evolving Industry Standard 48 Inches by Q2 2008 NEW YORK--(BUSINESS WIRE)--July 18, 2006--The New York Times announced today that it plans to consolidate all of its New York metro area printing into its newest production facility in College Point, Queens, and sublease its older Edison, New Jersey, plant. The Times also plans to update the look of its print edition by moving from a traditional "broadsheet" size of 54 inches to the evolving industry-standard 48-inch web width for all editions of the paper across the country. The size will be similar to that of USA Today and soon The Wall Street Journal. Both the printing consolidation and the web width reduction are expected to be completed by the second quarter of 2008. The moves are expected to save more than $42 million annually and avoid the need for approximately $50 million in capital investment at the New Jersey facility over the next ten years. Janet L. Robinson, president and CEO of The New York Times Company, said, "Over the last two years, we have eliminated approximately $100 million in annual costs through improved productivity and other measures, while continuing to invest in the highest quality journalism. We believe that the moves we have announced today will result in considerable additional savings and generate an estimated after-tax return on investment of at least 15% with a payback period of five and a half years. They will also allow us to deliver a high-quality product in a size that is attractive for advertisers and more convenient and easy to use for today's readers." Ms. Robinson continued, "The New York Times editorial and design staffs are exploring opportunities for adapting The Times's signature look and feel while also making the paper more user-friendly. Our research has shown that readers, particularly young readers and commuters, prefer the smaller size. We are confident that both readers and advertisers will embrace this update and continue to look to The New York Times, whether in print or online, for the highest quality journalism. Our New York area readership remains the highest of any paper in the area, totaling some 3.4 million in combined print and online readers." Plant Consolidation In consolidating the two plants, the Company will add a sixth high-speed, double-capacity, all-color press in College Point, and expand that existing facility by some 60,000 square feet, to accommodate the volume now printed in the Edison plant. Scott Heekin-Canedy, president and general manager of The New York Times, said, "We will combine new printing technology with our established production efficiencies, giving us the ability to print the same number of papers at College Point that we currently print at both plants, and still have room for growth. By consolidating our production in one facility, we will eliminate significant operating and capital costs associated with maintaining our Edison plant. In addition, reducing page width substantially decreases newsprint expense." With the exception of the daily newspaper, much of the printing at Edison has already shifted to other plants. When the Edison plant opened in 1992, it was initially intended for production only of Sunday sections of The Times that are printed in advance of the weekend, such as the Book Review, Arts & Leisure and Travel. Almost half of that production has been transferred to national printing facilities located closer to the homes and offices of the paper's readers across the country. As part of the consolidation, the Company expects a workforce reduction of approximately 250 full-time equivalent employees. The Company plans to facilitate the reductions through a variety of severance and buyout packages. The transition is expected to be completed in the second quarter of 2008. Both plants will remain fully operational until then, at which time the Company expects to have a new tenant for the Edison property. Capital expenditures for the consolidation and web width reduction are expected to total approximately $150 million. Of that amount, approximately $20 million is expected in 2006 and the balance in 2007 and the first half of 2008. The Company expects to record one-time charges for severance and buyouts and certain other consolidation expenses. The amount and timing of such charges have not been determined. On an ongoing basis the Company expects to save more than $42 million annually: $30 million in lower operating costs and $12 million from the web width reduction due to decreased newsprint consumption. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by our various markets and material increases in newsprint prices. They also include other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 25, 2005. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. The New York Times Company (NYSE: NYT), a leading media company with 2005 revenues of $3.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, nine network-affiliated television stations, two New York City radio stations and 35 Web sites, including NYTimes.com, Boston.com and About.com. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment. This press release can be downloaded from www.nytco.com CONTACT: The New York Times Company Catherine Mathis, 212-556-1981 mathis@nytimes.com or Diane McNulty, 212-556-5244 mcnuldc@nytimes.com or Mike Holloway, 212-556-4425 holloms@nytimes.com EX-99.4 5 a5189654ex99-4.txt EXHIBIT 99.4 Exhibit 99.4 The New York Times Company Announces Retirement Of EVP & CFO Leonard P. Forman NEW YORK--(BUSINESS WIRE)--July 18, 2006--The New York Times Company announced today that Leonard P. Forman, executive vice president and chief financial officer, plans to retire in 2007, after a successor is named. "Len's strategic insight and financial discipline have been critical elements in positioning the Company for the future," said Janet L. Robinson, president and chief executive officer, The New York Times Company. "Over the past several years, he has championed significant productivity improvements and efficiencies. And in his more than two decades of service, he has provided strong leadership, helping to develop the next generation of financial executives. We are deeply grateful for all that he has contributed to the Times Company." "My work at The Times has been extraordinarily rewarding and exciting, especially in recent years as we've moved into the digital space," Mr. Forman said. "But after a long business career, it's time for a change and I look forward to working with the new CFO to ensure an orderly transition." The Company has retained Heidrick & Struggles to identify candidates from both inside and outside the organization. Mr. Forman, 61, became executive vice president in 2004 and chief financial officer in 2002. Previously, he had been president and chief executive officer of The New York Times Company Magazine Group from 1998 to 2001, when the Group was sold to Advance Publications. From 1996 to 1998, he was senior vice president of corporate development, new ventures and electronic businesses. Before that, Mr. Forman spent 10 years working in television, online services, print media and advertising. From 1995 to 1996, he served as president and chief executive officer of a Nynex/Newsday joint venture. Mr. Forman was chief operating officer of the Newspaper Association of America (NAA) from 1992 to 1994, and from 1989 to 1992, he was president and chief executive officer of the Newspaper Advertising Bureau, which merged with the NAA in 1992. From 1986 to 1989, Mr. Forman served as senior vice president, operations at Telemundo, Inc., a Spanish language television company, where he was responsible for broadcast and network operations and affiliate relations. Previously, he had been director of corporate planning and chief economist at The New York Times Company from 1974 to 1986. He was a research economist at the Federal Reserve Bank of New York from 1973 to 1974. Mr. Forman also served as an adjunct professor of economics at Yale University Graduate School of Management and an assistant professor of economics at Fordham University Graduate School of Business. He received a B.A. degree in economics from Queens College, City University of New York in 1967 and completed a Ph.D. dissertation in economics at New York University in 1975. The New York Times Company (NYSE: NYT), a leading media company with 2005 revenues of $3.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, nine network-affiliated television stations, two New York City radio stations and 35 Web sites, including NYTimes.com, Boston.com and About.com. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment. This press release can be downloaded from www.nytco.com CONTACT: The New York Times Company Catherine J. Mathis, 212-556-1981 E-mail: mathis@nytimes.com Diane McNulty, 212-556-5244 E-mail: mcnuldc@nytimes.com -----END PRIVACY-ENHANCED MESSAGE-----