-----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, JymO4i6uYzjLbA0t2ddi9wIBiqdTPglDhdomY6/ZSeb8Kwi/zbvEgL0PBsJZMY5W Cna65njoDClxx6JXIGUfKQ== 0001157523-07-007183.txt : 20070725 0001157523-07-007183.hdr.sgml : 20070725 20070725090917 ACCESSION NUMBER: 0001157523-07-007183 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070725 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070725 DATE AS OF CHANGE: 20070725 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: 07998008 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 a5455191.txt THE NEW YORK TIMES COMPANY 8-K UNITED STATES 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 25, 2007 ------------- 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 File Number) (IRS Employer of Incorporation) Identification No.) 620 Eighth Avenue, New York, New York 10018 - -------------------------------------------------------------------------------- (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 25, 2007, The New York Times Company (the "Company") issued a press release announcing the Company's earnings for the quarter ended July 1, 2007. On July 25, 2007, the Company also issued a press release announcing the Company's revenues for June 2007. Copies of these press releases are furnished as exhibits to this Form 8-K. ITEM 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit 99.1 The New York Times Company Earnings Press Release dated July 25, 2007 Exhibit 99.2 The New York Times Company June Revenues Press Release dated July 25, 2007 -2- 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 25, 2007 By: /s/ Rhonda L. Brauer -------------------- Rhonda L. Brauer Secretary and Corporate Governance Officer -3- Exhibit List Exhibit 99.1 The New York Times Company Earnings Press Release dated July 25, 2007 Exhibit 99.2 The New York Times Company June Revenues Press Release dated July 25, 2007 -4- EX-99.1 2 a5455191ex991.txt EXHIBIT 99.1 Exhibit 99.1 The New York Times Company Reports 2007 Second-Quarter Results NEW YORK--(BUSINESS WIRE)--July 25, 2007--The New York Times Company announced today second-quarter earnings per share (EPS) from continuing operations of $.15, compared with $.37 in the second quarter last year. Excluding the special items noted below, EPS was $.34 from continuing operations compared with $.37 in the second quarter last year. Operating profit decreased to $43.3 million from $86.2 million in the second quarter of 2006, while operating profit excluding depreciation and amortization and special items declined 2.7 percent to $118.5 million from $121.8 million in the second quarter of 2006. Included in the second-quarter results from continuing operations are the following special items: -- A pre-tax net loss of $68.2 million from the sale of assets, principally the Edison, N.J., printing facility ($41.3 million after tax or $.29 per share), -- A pre-tax gain of $39.6 million from the sale of WQEW-AM ($21.2 million after tax or $.15 per share), and -- Accelerated depreciation expense of $13.1 million ($7.4 million after tax, or $.05 per share) for assets at the Company's Edison, N.J., printing plant, which is in the process of being closed. The net effect of these special items reduced net income from continuing operations by $27.5 million or $.19 per share. In addition, there was a pre-tax gain of $191.2 million from the sale of the Broadcast Media Group ($94.3 million after tax or $.66 per share), which is classified as discontinued operations. "While our second-quarter results reflected the weakness in the print advertising market stemming from both secular and cyclical forces in our businesses, we continued to move aggressively on new product development, cost reduction and the rebalancing of our portfolio," said Janet L. Robinson, president and CEO. "Our online properties again grew strongly, up 23 percent in the quarter and accounted for more than 10 percent of the Company's revenues. "For the third consecutive quarter, we achieved year-over-year cost reductions, excluding the effect of an extra week in the fourth quarter of last year. This quarter our operating costs fell about 2 percent and, excluding depreciation and amortization, dropped nearly 4 percent as we continued our drive to reduce costs. We recently completed a comprehensive review of our cost structure. As a result, we expect to reduce our year-end 2007 cost base by about $230 million in 2008 and 2009, excluding the effects of inflation and one-time costs. About $130 million of these savings are expected in 2008. We believe that reducing our cost structure in creative and disciplined ways is an important part of the Company's ongoing efforts to manage the business to match the changing dynamics of our markets. "During the quarter, we continued to rebalance our portfolio of businesses with the sale of our television properties and a radio station. In addition, we strengthened our portfolio of digital assets with the acquisition of ConsumerSearch.com, a leading online publisher that analyzes product reviews. "As we move forward, we will continue to focus on our strategy of introducing new products both in print and online, building our innovation capability, stringently managing costs and rebalancing our portfolio of businesses." Second-Quarter Results from Continuing Operations All comparisons are for the second quarter of 2007 to the second quarter of 2006 and exclude the results of the Broadcast Media Group. This release includes non-GAAP financial measures, and the exhibits include a discussion of management's use of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. Revenues Total revenues decreased 3.7 percent to $788.9 million from $819.6 million. Advertising revenues decreased 5.7 percent; circulation revenues decreased 0.5 percent; and other revenues rose 2.2 percent. Operating Costs Operating costs decreased 2.2 percent to $717.0 million from $733.4 million. Excluding depreciation and amortization, operating costs decreased 3.9 percent to $670.4 million from $697.8 million, mainly as a result of lower newsprint, staff reductions and other costs, partially offset by $5.7 million in costs related to the move into the Company's new headquarters. Staff reduction costs were $5.0 million ($2.8 million after tax, or $.02 per share) compared with $9.1 million ($5.3 million after tax, or $.04 per share) in the second quarter last year. Newsprint expense decreased 22.9 percent due to a combination of lower newsprint prices and lower consumption. Operating Profit Operating profit decreased 49.8 percent to $43.3 million from $86.2 million. Excluding depreciation and amortization and the special items discussed above, operating profit decreased 2.7 percent to $118.5 million from $121.8 million, due to lower revenues. Second-Quarter Business Segment Results News Media Group Total News Media Group revenues decreased 4.5 percent to $764.2 million from $800.2 million. Advertising revenues decreased 6.9 percent due to weakness in print advertising across the News Media Group, partially offset by higher online advertising revenues. Circulation revenues decreased 0.5 percent, mainly because of volume declines offset by higher prices. In the fourth quarter of 2006, The New York Times raised the newsstand price of the Northeast edition of the Sunday Times and increased home-delivery prices. Other revenues increased 1.9 percent to $60.6 million from $59.5 million primarily because of revenues from wholesale delivery operations and Baseline StudioSystems. Baseline, which was acquired in August 2006, is a leading online database and research service for information on the film and television industries. Total News Media Group operating costs decreased 2.9 percent to $689.0 million from $709.3 million. Excluding depreciation and amortization, operating costs decreased 4.5 percent to $647.6 million from $678.2 million, mainly as a result of the items noted in the operating costs section above. Operating profit for the News Media Group decreased 48.7 percent to $46.7 million from $90.9 million. Excluding depreciation and amortization and the special items identified above, operating profit for the News Media Group decreased 4.4 percent to $116.7 million from $122.0 million because of lower revenues. About Group Total About Group revenues increased 27.0 percent to $24.7 million from $19.4 million due to increased display and cost-per-click advertising as well as revenues associated with the acquisition of ConsumerSearch.com in May 2007. ConsumerSearch.com is a leading online publisher that analyzes product reviews. Total About Group operating costs increased 33.4 percent because of higher compensation costs, due in part to investments in new initiatives, and higher editorial costs. Operating profit grew 16.4 percent to $8.5 million from $7.3 million. Operating profit before depreciation and amortization rose 16.3 percent to $11.9 million from $10.3 million, due to higher revenues. Corporate Corporate costs were $11.8 million compared with $12.0 million in the prior year second quarter. Other Financial Data Internet Revenues In the second quarter, the Company's Internet revenues grew 23.4 percent to $80.9 million from $65.6 million in the second quarter of 2006. Internet businesses include digital archives, NYTimes.com, Boston.com, About.com and other Company Web sites. In total, Internet businesses accounted for 10.3 percent of the Company's revenues in the second quarter versus 8.0 percent in the 2006 second quarter. Joint Ventures Net income from joint ventures was $4.7 million compared with $8.8 million. Lower earnings resulted from weaker performance at the paper mills in which the Company owns a minority interest and the sale of the Company's interest in Discovery Times Channel in October 2006. Interest Expense-net Interest expense-net decreased to $7.1 million from $13.2 million, as the Company reduced its levels of commercial paper outstanding with the proceeds from the sale of the Broadcast Media Group. Income Taxes The effective income tax rate increased to 46.0 percent from 34.4 percent. The increase was primarily due to the income taxes associated with the asset sales that occurred in the second quarter. Cash and Total Debt At the end of the quarter, cash and cash equivalents were approximately $58 million and total debt was approximately $965 million. Plant Consolidation In 2006 the Company announced plans to consolidate the printing operations of a facility it leases in Edison, N.J., into its newest facility in College Point, Queens. As part of the consolidation, the Company originally planned to sublease the Edison facility through 2018, the end of the current lease term. After evaluating the options with respect to the lease, the Company decided it was financially prudent to purchase the Edison facility and sell it, with two adjacent properties it already owned, to a third party. The purchase and sale of the Edison facility closed in the second quarter of 2007, relieving the Company of rental terms that were above market as well as restoration obligations under the original lease. As a result of the sale, the Company recognized a pre-tax loss of $68.2 million in the second quarter. Capital Expenditures In the second quarter, total capital expenditures were approximately $106 million, which included approximately $56 million for the Company's new headquarters. Expectations The following expectations are for 2007 with the exception of cost savings and productivity gains, which also include expectations for 2008 and 2009. -- Cost savings and productivity gains - $65 million to $75 million in 2007, excluding the effect of inflation and certain one-time costs. The Company believes that it can achieve a reduction in costs from its year-end 2007 cost base of a total of approximately $230 million in 2008 and 2009, excluding the effects of inflation and certain one-time costs. About $130 million of these savings are expected in 2008. -- To date in July, print advertising remains challenging, especially for banking, financial services and the classified categories. While the Company continues to see strong gains at its digital properties, in the month of July, the rate of growth for online advertising at the News Media Group is expected to be lower than the Company has experienced to date in 2007. This is partly because of two large campaigns that will not repeat at NYTimes.com. -- In June the Company announced circulation price increases effective in July for New York Times home delivery and newsstand copies that together are expected to add $7 to $8 million in incremental revenues this year, and $14 to $16 million on an annualized basis. -- Newsprint cost per ton is expected to decline about 9 to 10 percent. -- Depreciation and amortization - $185 to $195 million, which includes $48 to $52 million ($14 to $15 million in the third quarter and $10 to $11 million in the fourth quarter) of accelerated depreciation expense associated with the plant consolidation project, mainly presses. Total depreciation and amortization includes approximately $15 to $17 million for the Company's new headquarters, primarily in the second half of 2007. -- Income from joint ventures - $5 to $10 million. -- Interest expense - $41 to $44 million. -- Capital expenditures - $340 to $370 million, including $170 to $190 million for the Company's new headquarters and $75 million for the plant consolidation. -- Income tax rate - Excluding unusual items during the year, such as a tax adjustment in the first quarter and asset dispositions, the Company's normalized income tax rate for 2007 is estimated to be approximately 41 percent. Conference Call Information The Company's second-quarter earnings conference call will be held on Wednesday, July 25, at 10:30 a.m. E.T. To access the call, dial 800-665-0430 (in the U.S.) and 913-312-1300 (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. An audio 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 Friday, July 27. The access code is 5664000. An archive of the webcast will be available beginning two hours after the call at www.nytco.com/investors. In addition, an MP3 file of the call can be downloaded from the Company's site. The archive and a transcript of the call will be available for one quarter. 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 the Company's 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 31, 2006. 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 2006 revenues of $3.3 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, WQXR-FM and more than 30 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. Exhibits: Condensed Consolidated Statements of Income Segment Information News Media Group Revenues by Operating Segment Footnotes Reconciliation of Non-GAAP Information This press release can be downloaded from www.nytco.com THE NEW YORK TIMES COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars and shares in thousands, except per share data) - ---------------------------------------------------------------------- Second Quarter -------------------------- 2007 2006 % Change -------- -------- -------- Revenues Advertising $508,467 $539,443 -5.7% Circulation 218,664 219,705 -0.5% Other (a) 61,812 60,488 2.2% -------- -------- Total 788,943 819,636 -3.7% Operating costs Production costs 325,922 354,329 -8.0% Selling, general and administrative costs 344,481 343,504 0.3% Depreciation and amortization 46,645 35,560 31.2% -------- -------- Total 717,048 733,393 -2.2% Net loss on sale of assets (b) 68,156 - N/A Gain on sale of WQEW-AM 39,578 - N/A -------- -------- Operating profit 43,317 86,243 -49.8% Net income from joint ventures 4,745 8,770 -45.9% Interest expense - net 7,126 13,234 -46.2% -------- -------- Income from continuing operations before income taxes and minority interest 40,936 81,779 -49.9% Income tax expense 18,851 28,156 -33.0% Minority interest in net (income)/loss of subsidiaries (24) 244 * -------- -------- Income from continuing operations 22,061 53,867 -59.0% Income from discontinued operations, net of income taxes- Broadcast Media Group (c) 1,977 5,714 -65.4% Gain on sale of Broadcast Media Group, net of income taxes (c) 94,330 - N/A -------- -------- Discontinued operations, net of income * taxes 96,307 5,714 -------- -------- Net income $118,368 $ 59,581 98.7% ======== ======== Average Number of Common Shares Outstanding: Basic 143,906 144,792 -0.6% Diluted 144,114 144,943 -0.6% Basic Earnings Per Share: Income from continuing operations $ 0.15 $ 0.37 -59.5% Discontinued operations, net of income * taxes 0.67 0.04 -------- -------- Net Income $ 0.82 $ 0.41 100.0% ======== ======== Diluted Earnings Per Share: Income from continuing operations $ 0.15 $ 0.37 -59.5% Discontinued operations, net of income * taxes 0.67 0.04 -------- -------- Net Income $ 0.82 $ 0.41 100.0% ======== ======== Dividends Per Share 0.230 0.175 31.4% Year-to-Date ------------------------------ 2007 2006 % Change ---------- ---------- -------- Revenues Advertising $1,013,382 $1,062,128 -4.6% Circulation 441,118 439,986 0.3% Other (a) 120,463 116,719 3.2% ---------- ---------- Total 1,574,963 1,618,833 -2.7% Operating costs Production costs 670,947 711,075 -5.6% Selling, general and administrative costs 686,542 690,014 -0.5% Depreciation and amortization 91,082 71,036 28.2% ---------- ---------- Total 1,448,571 1,472,125 -1.6% Net loss on sale of assets (b) 68,156 - N/A Gain on sale of WQEW-AM 39,578 - N/A ---------- ---------- Operating profit 97,814 146,708 -33.3% Net income from joint ventures 2,592 10,737 -75.9% Interest expense - net 18,454 25,758 -28.4% ---------- ---------- Income from continuing operations before income taxes and minority interest 81,952 131,687 -37.8% Income tax expense 39,750 47,631 -16.5% Minority interest in net (income)/loss of subsidiaries (15) 337 * ---------- ---------- Income from continuing operations 42,187 84,393 -50.0% Income from discontinued operations, net of income taxes- Broadcast Media Group (c) 5,753 7,600 -24.3% Gain on sale of Broadcast Media Group, net of income taxes (c) 94,330 - N/A ---------- ---------- Discontinued operations, net of income * taxes 100,083 7,600 ---------- ---------- Net income $ 142,270 $ 91,993 54.7% ========== ========== Average Number of Common Shares Outstanding: Basic 143,901 144,978 -0.7% Diluted 144,114 145,166 -0.7% Basic Earnings Per Share: Income from continuing operations $ 0.29 $ 0.58 -50.0% Discontinued operations, net of * income taxes 0.70 0.05 ---------- ---------- Net Income $ 0.99 $ 0.63 57.1% ========== ========== Diluted Earnings Per Share: Income from continuing operations $ 0.29 $ 0.58 -50.0% Discontinued operations, net of * income taxes 0.70 0.05 ---------- ---------- Net Income $ 0.99 $ 0.63 57.1% ========== ========== Dividends Per Share 0.405 0.340 19.1% * Represents an increase or decrease in excess of 100%. - ---------------------------------------------------------------------- See footnotes page for additional information. THE NEW YORK TIMES COMPANY SEGMENT INFORMATION (Dollars in thousands) - ---------------------------------------------------------------------- Second Quarter Year-to-Date ---------------------------- ------------------------------ 2007 2006 % Change 2007 2006 % Change --------- --------- -------- ---------- ---------- -------- Revenues (c) - -------------------- News Media Group $ 764,238 $ 800,190 -4.5% $1,527,715 $1,581,181 -3.4% About Group 24,705 19,446 27.0% 47,248 37,652 25.5% --------- --------- ---------- ---------- Total $ 788,943 $ 819,636 -3.7% $1,574,963 $1,618,833 -2.7% ========= ========= ========== ========== Operating Profit (Loss) (c) - ------------------------------ News Media Group $ 46,653 $ 90,933 -48.7% $ 106,282 $ 155,188 -31.5% About Group 8,511 7,309 16.4% 16,841 14,252 18.2% Corporate (11,847) (11,999) -1.3% (25,309) (22,732) 11.3% --------- --------- ---------- ---------- Total $ 43,317 $ 86,243 -49.8% $ 97,814 $ 146,708 -33.3% ========= ========= ========== ========== Operating Profit (Loss) Before Depreciation & Amortization (d) - -------------------------------------------------------------- News Media Group $ 88,092 $ 122,031 -27.8% $ 187,444 $ 217,235 -13.7% About Group 11,929 10,255 16.3% 23,392 20,157 16.0% Corporate (10,059) (10,483) -4.0% (21,940) (19,648) 11.7% --------- --------- ---------- ---------- Total $ 89,962 $ 121,803 -26.1% $ 188,896 $ 217,744 -13.2% ========= ========= ========== ========== - ---------------------------------------------------------------------- See footnotes page for additional information. THE NEW YORK TIMES COMPANY NEWS MEDIA GROUP REVENUES BY OPERATING SEGMENT (Dollars in thousands) - ---------------------------------------------------------------------- 2007 --------------------------------------- % Change % Change Second vs. Year-to- vs. Quarter 2006 Date 2006 --------- -------- ---------- --------- The New York Times Media Group Advertising $ 299,394 -5.3% $ 596,540 -4.4% Circulation 157,888 0.2% 318,550 1.4% Other 44,143 5.6% 86,219 5.4% --------- ---------- Total $ 501,425 -2.7% $1,001,309 -1.8% --------- ---------- New England Media Group Advertising $ 100,334 -7.6% $ 197,576 -6.0% Circulation 39,297 -2.4% 77,782 -3.5% Other 10,657 -8.3% 20,050 -4.6% --------- ---------- Total $ 150,288 -6.4% $ 295,408 -5.2% --------- ---------- Regional Media Group Advertising $ 85,205 -11.6% $ 174,411 -9.3% Circulation 21,479 -1.4% 44,786 -1.1% Other 5,841 -3.9% 11,801 -1.3% --------- ---------- Total $ 112,525 -9.4% $ 230,998 -7.5% --------- ---------- Total News Media Group Advertising $ 484,933 -6.9% $ 968,527 -5.6% Circulation 218,664 -0.5% 441,118 0.3% Other (a) 60,641 1.9% 118,070 2.8% --------- ---------- Total $ 764,238 -4.5% $1,527,715 -3.4% ========= ========== - ---------------------------------------------------------------------- See footnotes page for additional information. THE NEW YORK TIMES COMPANY FOOTNOTES (Dollars in thousands) (a) Other revenues consist primarily of revenue from wholesale delivery operations, news services/syndication, digital archives, TimesSelect, Baseline StudioSystems and commercial printing. (b) In 2006 the Company announced plans to consolidate the printing operations of a facility it leases in Edison, N.J., into its newest facility in College Point, Queens. As part of the consolidation, the Company originally planned to sublease the Edison facility through 2018, the end of the current lease term. After evaluating the options with respect to the lease, the Company decided it was financially prudent to purchase the Edison facility and sell it, with two adjacent properties it already owned, to a third party. The purchase and sale of the Edison facility closed in the second quarter of 2007, relieving the Company of rental terms that were above market as well as restoration obligations under the original lease. As a result of the sale, the Company recognized a pre-tax loss of $68.2 million in the second quarter. (c) On May 7, 2007, the Company sold the Broadcast Media Group, consisting of nine network-affiliated television stations, their related Web sites and the digital operating center, for $575 million. Under Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the Broadcast Media Group is treated as a discontinued operation. The Company has made reclassifications in all periods presented to reflect this change. Results for the Broadcast Media Group, included within discontinued operations, for the second quarter and year-to-date 2007 and 2006 are as follows: ----------------- ----------------- Second Quarter Year-to-Date ----------------- ----------------- 2007 2006 2007 2006 -------- -------- -------- -------- Revenues $ 13,798 $ 39,112 $ 46,702 $ 71,066 Pre-tax income $ 3,347 $ 9,685 $ 9,848 $ 12,882 Income taxes (1,370) (3,971) (4,095) (5,282) -------- -------- -------- -------- Income from discontinued operations, net of income taxes- Broadcast Media Group 1,977 5,714 5,753 7,600 Gain on sale of Broadcast Media Group, net of income taxes of $96.9 million 94,330 - 94,330 - -------- -------- -------- -------- Net income $ 96,307 $ 5,714 $100,083 $ 7,600 ======== ======== ======== ======== (d) See "Reconciliation of Non-GAAP Information" for reconciliations of operating profit(loss) to operating profit(loss) before depreciation and amortization and to operating profit(loss) before depreciation and amortization and excluding special items. THE NEW YORK TIMES COMPANY RECONCILIATION OF NON-GAAP INFORMATION (Dollars in thousands) In this release, the Company has included non-GAAP financial information with respect to diluted earnings per share (EPS) from continuing operations excluding special items, operating profit(loss) before depreciation and amortization and excluding special items, and operating costs before depreciation and amortization and excluding raw materials. The Company has included these non-GAAP financial measures because management reviews them on a regular basis and uses them to evaluate and manage the performance of the operations. Management believes that, for the reasons outlined below, these non- GAAP financial measures provide useful information to investors as a supplement to reported EPS from continuing operations, operating profit(loss) and operating costs. However, these measures should be evaluated only in conjunction with the comparable GAAP financial measures and should not be viewed as alternative measures of results. Diluted EPS from continuing operations excluding special items provides useful information in evaluating the Company's period-to- period performance because it eliminates items that the Company does not consider to be indicative of earnings from ongoing operating activities. Operating profit(loss) before depreciation and amortization and excluding special items is useful in evaluating the Company's ongoing cash-generating ability as it excludes the significant non-cash impact of depreciation and amortization as well as items not indicative of ongoing operating activities. Total operating costs include depreciation and amortization and raw materials. Total operating costs excluding depreciation and amortization provide a useful measure of manageable costs. Total operating costs excluding depreciation and amortization and raw materials provide investors with helpful supplemental information on the Company's underlying operating costs. Reconciliations of these non-GAAP financial measures from, respectively, diluted EPS from continuing operations, operating profit(loss) and total operating costs, the most directly comparable GAAP items, are set out in the tables below. Reconciliation of diluted earnings per share from continuing operations excluding special items --------------------- Second Quarter --------------------- 2007 2006 % Change ------ ----- -------- Diluted EPS from continuing operations $0.15 $0.37 -59.5% Adjustments: Net loss on sale of assets 0.29 - Gain on sale of WQEW-AM (0.15) - Accelerated depreciation 0.05 - ------ ----- -------- Adjusted diluted EPS $0.34 $0.37 -8.1% ====== ===== ======== Reconciliation of operating profit(loss) before depreciation and amortization and special items -------------------------------------- Second Quarter 2007 -------------------------------------- News Media About Total Group Group Corporate Company --------- ------- --------- --------- Operating profit(loss) $ 46,653 $ 8,511 $ (11,847) $ 43,317 Add: Depreciation and amortization 41,439 3,418 1,788 46,645 --------- ------- ---------- --------- Operating profit(loss) before depreciation and amortization $ 88,092 $11,929 $ (10,059) $ 89,962 Adjustments: Net loss on sale of assets 68,156 - - 68,156 Gain on sale of WQEW-AM (39,578) - - (39,578) --------- ------- ---------- --------- Adjusted operating profit(loss) $ 116,670 $11,929 $ (10,059) $ 118,540 ========= ======= ========== ========= -------------------------------------- Second Quarter 2006 -------------------------------------- News Media About Total Group Group Corporate Company --------- ------- --------- --------- Operating profit(loss) $ 90,933 $ 7,309 $ (11,999) $ 86,243 Add: Depreciation and amortization 31,098 2,946 1,516 35,560 --------- ------- -------------------- Operating profit(loss) before depreciation and amortization $ 122,031 $10,255 $ (10,483) $ 121,803 Adjustments: Net loss on sale of assets - - - - Gain on sale of WQEW-AM - - - - --------- ------- -------------------- Adjusted operating profit(loss) $ 122,031 $10,255 $ (10,483) $ 121,803 ========= ======= ==================== -------------------------------------- % Change ====================================== News Media About Total Group Group Corporate Company --------- ------- --------- --------- Operating profit(loss) -48.7% 16.4% -1.3% -49.8% Add: Depreciation and amortization 33.3% 16.0% 17.9% 31.2% --------- ------- --------- --------- Operating profit(loss) before depreciation and amortization -27.8% 16.3% -4.0% -26.1% Adjustments: Net loss on sale of assets - - - - Gain on sale of WQEW-AM - - - - --------- ------- --------- --------- Adjusted operating profit(loss) -4.4% 16.3% -4.0% -2.7% ========= ======= ========= ========= THE NEW YORK TIMES COMPANY RECONCILIATION OF NON-GAAP INFORMATION (continued) (Dollars in thousands) Reconciliation of total operating costs excluding depreciation and amortization and raw materials -------------------------- Second Quarter -------------------------- 2007 2006 % Change -------- -------- -------- Total operating costs $717,048 $733,393 -2.2% Less: Depreciation and amortization 46,645 35,560 -------- -------- -------- Sub-total 670,403 697,833 -3.9% Less: Raw materials 63,139 84,478 -------- -------- -------- Total $607,264 $613,355 -1.0% ======== ======== ======== Reconciliation of News Media Group operating costs excluding depreciation and amortization -------------------------- Second Quarter -------------------------- News Media Group 2007 2006 % Change - ---------------- -------- -------- -------- Operating costs $689,007 $709,257 -2.9% Less: Depreciation and amortization 41,439 31,098 -------- -------- -------- Adjusted operating costs $647,568 $678,159 -4.5% ======== ======== ======== 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 a5455191ex992.txt EXHIBIT 99.2 Exhibit 99.2 The New York Times Company Reports June Revenues NEW YORK--(BUSINESS WIRE)--July 25, 2007--The New York Times Company announced today that in June 2007 advertising revenues from continuing operations decreased 5.5% and total Company revenues from continuing operations decreased 3.6% compared with June 2006. All comparisons are for June 2007 to June 2006 unless otherwise noted: News Media Group: Advertising revenue for the News Media Group decreased 6.5%. The New York Times Media Group - Advertising revenues for The New York Times Media Group decreased 3.0%. National advertising revenues increased as growth in studio entertainment, books, packaged goods, alcoholic beverage, advocacy, international fashion and transportation advertising offset weakness in the telecommunications, banking and financial services categories. Retail advertising revenues decreased due to softness in mass market, department store, home furnishing store, fine arts and fashion/jewelry advertising. Classified advertising revenues decreased because of weakness in real estate, automotive and help-wanted advertising. New England Media Group - Advertising revenues for the New England Media Group decreased 11.8%. National advertising revenues increased as strength in entertainment advertising, particularly for motion pictures, and pharmaceutical/packaged goods advertising offset weakness in the financial services, banking and travel categories. Retail advertising revenues decreased largely due to softness in apparel/footwear, electronics/appliances and computer/office supply advertising. Classified advertising revenues decreased because of weakness in real estate, help-wanted and automotive advertising. Regional Media Group - Advertising revenues for the Regional Media Group decreased 12.2%. Retail advertising revenues decreased mainly because of softness in home furnishing, banking and home improvement advertising. Classified advertising revenues decreased due to weakness in help-wanted, real estate and automotive advertising. The Internet ad revenues included in the News Media Group rose 22.0% in June due to growth in both display and classified advertising. Circulation revenues for the News Media Group decreased 0.7%, declining slightly at each of the three media groups. TimesSelect, the fee-based product on NYTimes.com that includes The Times's distinctive columnists and extensive access to its archives, currently has approximately 763,000 subscribers with about 60% receiving TimesSelect as a benefit of their home-delivery subscriptions, 29% receiving it from online-only subscriptions and 11% receiving it free as college students and educators. About Group - Advertising revenues at the About Group (which includes About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com) rose 23.9%. June's growth was due to increases in both display and cost-per-click advertising. In addition, advertising revenues reflect the acquisitions of ConsumerSearch.com in May 2007 and UCompareHealthCare.com in March 2007. Display advertising increased primarily because of strength in the Internet, pharmaceutical and financial services categories. In addition, for June 2007, The New York Times Company had the 11th largest presence on the Web, with 42.9 million unique visitors in the United States according to Nielsen//NetRatings, up approximately 14% from 37.7 million unique visitors in June 2006. The New York Times Company (NYSE: NYT), a leading media company with 2006 revenues of $3.3 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, WQXR-FM and more than 30 Web sites, including NYTimes.com, Boston.com and About.com. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment. This press release can be downloaded from www.nytco.com THE NEW YORK TIMES COMPANY 2007 TOTAL COMPANY REVENUES (a) ($ 000's) - ---------------------------------------------------------------------- June Year to Date ----------------------------------------------------- % % 2007 2006 Change 2007 2006 Change -------- -------- ------ ---------- ---------- ------ Advertising Revenues News Media National $70,548 $68,356 +3.2 $449,146 $452,657 -0.8 Retail 32,034 35,876 -10.7 216,989 232,578 -6.7 Classified 40,748 49,137 -17.1 270,578 309,338 -12.5 Other Ad Revenue 4,644 4,956 -6.3 31,814 31,819 +0.0 -------- -------- ------ ---------- ---------- ------ Total News Media Group 147,973 158,324 -6.5 968,527 1,026,393 -5.6 About Group (b) 7,199 5,809 +23.9 44,855 35,735 +25.5 -------- -------- ------ ---------- ---------- ------ Total Ad Revenues from Continuing Operations 155,173 164,134 -5.5 1,013,382 1,062,128 -4.6 Circulation Revenues 66,785 67,285 -0.7 441,118 439,986 +0.3 Other Revenues(c) 20,289 19,815 +2.4 120,463 116,719 +3.2 -------- -------- ------ ---------- ---------- ------ Total Company Revenues from Continuing Operations $242,247 $251,233 -3.6 $1,574,963 $1,618,833 -2.7 ======== ======== ====== ========== ========== ====== Discontinued Operations: Broadcast Media Group (d) 0 11,798 N/A 46,702 71,066 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com. (c) Primarily includes revenues from wholesale delivery operations, news services/syndication, digital archives, TimesSelect, Baseline StudioSystems and commercial printing. (d) On May 7, 2007, the Company sold the Broadcast Media Group, consisting of nine network-affiliated television stations, their related Web sites and the digital operating center, for approximately $575 million. THE NEW YORK TIMES COMPANY 2007 TOTAL COMPANY REVENUES (a) ($ 000's) - ---------------------------------------------------------------------- Second Quarter ----------------------------- % 2007 2006 Change ---------- -------- --------- Advertising Revenues News Media National $224,244 $227,200 -1.3 Retail 109,640 121,658 -9.9 Classified 134,471 155,331 -13.4 Other Ad Revenue 16,578 16,807 -1.4 ---------- -------- --------- Total News Media Group 484,933 520,996 -6.9 About Group (b) 23,534 18,447 +27.6 ---------- -------- --------- Total Ad Revenues from Continuing Operations 508,467 539,443 -5.7 Circulation Revenues 218,664 219,705 -0.5 Other Revenues (c) 61,812 60,488 +2.2 ---------- -------- --------- Total Company Revenues from Continuing Operations $788,943 $819,636 -3.7 ========== ======== ========= Discontinued Operations: Broadcast Media Group (d) 13,798 39,112 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com. (c) Primarily includes revenues from wholesale delivery operations, news services/syndication, digital archives, TimesSelect, Baseline StudioSystems and commercial printing. (d) On May 7, 2007, the Company sold the Broadcast Media Group, consisting of nine network-affiliated television stations, their related Web sites and the digital operating center, for approximately $575 million. THE NEW YORK TIMES COMPANY 2007 ADVERTISING REVENUES (a) ($ 000's) - ---------------------------------------------------------------------- June Year to Date ----------------------------------------------------- % % 2007 2006 Change 2007 2006 Change -------- -------- ------ ---------- ---------- ------ News Media Group New York Times Media Group $93,016 $95,895 -3.0 $596,540 $623,856 -4.4 New England Media Group 29,918 33,906 -11.8 197,576 210,145 -6.0 Regional Media Group 25,040 28,524 -12.2 174,411 192,392 -9.3 -------- -------- ------ ---------- ---------- ------ Total News Media Group 147,973 158,324 -6.5 968,527 1,026,393 -5.6 About Group (b) 7,199 5,809 +23.9 44,855 35,735 +25.5 -------- -------- ------ ---------- ---------- ------ Total Ad Revenues from Continuing Operations $155,173 $164,134 -5.5 $1,013,382 $1,062,128 -4.6 ======== ======== ====== ========== ========== ====== Discontinued Operations: Broadcast Media Group (c) 0 11,617 N/A 45,745 69,862 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com. (c) On May 7, 2007, the Company sold the Broadcast Media Group, consisting of nine network-affiliated television stations, their related Web sites and the digital operating center, for approximately $575 million. THE NEW YORK TIMES COMPANY 2007 ADVERTISING REVENUES (a) ($ 000's) - ---------------------------------------------------------------------- Second Quarter ------------------------ % 2007 2006 Change -------- -------- ------ News Media Group New York Times Media Group $299,394 $316,045 -5.3 New England Media Group 100,334 108,608 -7.6 Regional Media Group 85,205 96,343 -11.6 -------- -------- ------ Total News Media Group 484,933 520,996 -6.9 About Group (b) 23,534 18,447 +27.6 -------- -------- ====== Total Ad Revenues from Continuing Operations $508,467 $539,443 -5.7 ======== ======== ====== Discontinued Operations: Broadcast Media Group (c) 13,516 38,542 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com. (c) On May 7, 2007, the Company sold the Broadcast Media Group, consisting of nine network-affiliated television stations, their related Web sites and the digital operating center, for approximately $575 million. THE NEW YORK TIMES COMPANY 2007 NEWS MEDIA AD REVENUE GROWTH BY CLASSIFIED CATEGORY - ---------------------------------------------------------------------- % Change % Change % Change June '07 Q2 '07 YTD '07 vs. June '06 vs. Q2 '06 vs. YTD '06 ------------------------------------------------------ Help Wanted -13.7 -10.6 -10.6 Real Estate -24.4 -20.9 -17.3 Automotive -18.1 -14.8 -17.0 Other +6.1 +11.6 +7.8 ------------------------------------------------------ Total -17.1 -13.4 -12.5 - ---------------------------------------------------------------------- THE NEW YORK TIMES COMPANY 2007 PRINT ADVERTISING VOLUME (a) (Inches in thousands, Preprints in thousands of copies) - ---------------------------------------------------------------------- June Year to Date - ---------------------------------------------------------------------- % % 2007 2006 Change 2007 2006 Change ------- ------- ------ --------- --------- ------ National 167.6 173.7 -3.5 1,072.6 1,166.0 -8.0 Retail 430.2 474.8 -9.4 2,888.6 3,097.2 -6.7 Classified 631.4 746.2 -15.4 4,331.8 4,859.9 -10.9 ------- ------- ------ --------- --------- ------ Total ROP 1,229.2 1,394.8 -11.9 8,293.0 9,123.0 -9.1 ------- ------- ------ --------- --------- ------ Part Run/ Zoned 146.0 184.1 -20.7 864.0 1,015.8 -14.9 ------- ------- ------ --------- --------- ------ Total 1,375.2 1,578.9 -12.9 9,157.0 10,138.8 -9.7 ======= ======= ====== ========= ========= ====== Preprints 205,205 216,185 -5.1 1,353,398 1,403,055 -3.5 - ---------------------------------------------------------------------- (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. THE NEW YORK TIMES COMPANY 2007 PRINT ADVERTISING VOLUME (a) (Inches in thousands, Preprints in thousands of copies) - ---------------------------------------------------------------------- Second Quarter - ---------------------------------------------------------------------- % 2007 2006 Change ------------- -------------- --------------- National 525.4 584.3 -10.1 Retail 1,441.4 1,590.1 -9.4 Classified 2,185.1 2,483.4 -12.0 ------------- -------------- --------------- Total ROP 4,151.9 4,657.8 -10.9 ------------- -------------- --------------- Part Run/ Zoned 457.8 555.4 -17.6 ------------- -------------- --------------- Total 4,609.7 5,213.2 -11.6 ============= ============== =============== Preprints 663,855 716,905 -7.4 - ---------------------------------------------------------------------- (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. CONTACT: The New York Times Company Catherine J. Mathis, 212-556-1981 mathis@nytimes.com or Paula Schwartz, 212-556-5224 schwap@nytimes.com -----END PRIVACY-ENHANCED MESSAGE-----