-----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, B2gvqqkZdHQFqiaS6kHodxrO+wAwcamZXtnp/3JNHE8YZIuLtZQlWwyQ/rur0vdc id9BvHAC23uANj/NFmQvWA== 0001157523-07-010075.txt : 20071023 0001157523-07-010075.hdr.sgml : 20071023 20071023085832 ACCESSION NUMBER: 0001157523-07-010075 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20071023 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071023 DATE AS OF CHANGE: 20071023 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: 071184558 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 a5524608.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): October 23, 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 (IRS Employer of Incorporation) File Number) 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 October 23, 2007, The New York Times Company (the "Company") issued a press release announcing the Company's earnings for the quarter ended September 30, 2007. On October 23, 2007, the Company also issued a press release announcing the Company's revenues for September 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 October 23, 2007 Exhibit 99.2 The New York Times Company September Revenues Press Release dated October 23, 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: October 23, 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 October 23, 2007 Exhibit 99.2 The New York Times Company September Revenues Press Release dated October 23, 2007 - 4 - EX-99.1 2 a5524608ex991.txt EXHIBIT 99.1 Exhibit 99.1 The New York Times Company Reports 2007 Third-Quarter Results NEW YORK--(BUSINESS WIRE)--Oct. 23, 2007--The New York Times Company announced today third-quarter earnings per share (EPS) from continuing operations of $.10, compared with $.06 in the third quarter last year. Excluding the special items noted below, EPS from continuing operations was $.15 compared with $.09 in the third quarter last year. Operating profit increased 57.1 percent to $28.1 million from $17.9 million in the third quarter of 2006 while operating profit excluding depreciation and amortization increased 46.4 percent to $79.9 million from $54.6 million in the third quarter of 2006. Included in the results from continuing operations are the following special items: -- Accelerated depreciation expense of $11.7 million ($6.7 million after tax, or $.05 per share) in the third quarter of 2007 for assets at the Company's Edison, N.J., printing plant, which is in the process of being closed. -- A loss of $7.8 million ($4.3 million after tax, or $.03 per share) in the third quarter of 2006 from the sale of the Company's 50 percent investment in the Discovery Times Channel (DTC), a digital cable channel. "Our very strong earnings growth was driven by increased national advertising, higher circulation revenues and our continued focus on cost controls," said Janet L. Robinson, president and CEO. "Revenues benefited from new products both in print and online. National advertising grew significantly, up 10.9 percent, as a result of improvement in categories such as entertainment, international fashion and corporate. Circulation revenues rose 3.9 percent. Our digital properties again posted very healthy revenue growth, up 26.5 percent in the quarter. "We continued to concentrate on controlling costs. This past quarter our operating costs were on par with the same quarter last year, and, excluding depreciation and amortization, decreased 1.5 percent, as we maintained our expense discipline. We believe that reducing our cost structure in innovative ways, while making prudent investments across platforms, is an important part of our ongoing efforts to successfully manage our business during a challenging time in the media marketplace. "While September was a strong month, with ad revenues up 5.5 percent, visibility on the fourth quarter remains limited. To date in October, advertising is not as strong as it was in September, although it is performing better than in the first half of the year. We continue to stay focused on our strategy of introducing new products, building our innovation capability, rebalancing our portfolio of businesses and stringently managing costs." Third-Quarter Results from Continuing Operations All comparisons are for the third quarter of 2007 to the third quarter of 2006 and exclude the results of the Broadcast Media Group, which was sold in May 2007. 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 increased 2.0 percent to $754.4 million from $739.6 million. Advertising revenues decreased 0.1 percent; circulation revenues increased 3.9 percent; and other revenues rose 11.5 percent. Operating Costs Operating costs increased 0.6 percent to $726.3 million from $721.7 million. Depreciation and amortization increased 41.2 percent to $51.8 million from $36.7 million primarily due to the accelerated depreciation for assets at the Edison printing plant and depreciation on the Company's new headquarters. Excluding depreciation and amortization, operating costs decreased 1.5 percent to $674.5 million from $685.0 million, mainly as a result of lower newsprint expense partially offset by higher professional fees. Newsprint expense decreased 22.2 percent, with 13.4 percent of the decrease resulting from lower newsprint prices and 8.8 percent resulting from lower consumption. Professional fees increased primarily due to costs associated with the Company's new headquarters and expense reduction initiatives. Staff reduction costs were $4.9 million ($2.8 million after tax, or $.02 per share) compared with $7.4 million ($4.3 million after tax, or $.03 per share) in the third quarter last year. Operating Profit Operating profit increased 57.1 percent to $28.1 million from $17.9 million. Excluding depreciation and amortization, operating profit increased 46.4 percent to $79.9 million from $54.6 million. Third-Quarter Business Segment Results News Media Group Total News Media Group revenues increased 1.2 percent to $729.6 million from $721.3 million. Advertising revenues decreased 1.4 percent due to weakness in advertising at the New England and Regional Media Groups, partially offset by increased advertising at The New York Times Media Group. In particular, classified advertising revenues decreased across the News Media Group, principally due to softness in real estate advertising. Circulation revenues increased 3.9 percent, mainly because of higher prices for The New York Times partially offset by volume declines. 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. In the third quarter of 2007, The Times raised the newsstand price of the Sunday Times in the greater New York metropolitan area and the daily newsstand price nationwide, and increased home-delivery prices. Other revenues increased 10.8 percent to $64.5 million from $58.2 million primarily because of rental income from the Company's lease of five floors in its new headquarters, increased wholesale delivery operation revenues, and revenues from Baseline StudioSystems, which was acquired in August 2006. Total News Media Group operating costs decreased 0.2 percent to $696.5 million from $698.1 million. Excluding depreciation and amortization, operating costs decreased 2.3 percent to $650.4 million from $665.9 million, mainly as a result of lower newsprint expense. Operating profit for the News Media Group increased 42.9 percent to $33.1 million from $23.2 million. Excluding depreciation and amortization, operating profit for the News Media Group increased 43.0 percent to $79.2 million from $55.4 million. About Group Total About Group revenues increased 34.9 percent to $24.7 million from $18.3 million due to increased display and cost-per-click advertising as well as revenues associated with the acquisition of ConsumerSearch.com, a leading online publisher that analyzes product reviews, in May 2007. Total About Group operating costs increased 54.8 percent to $18.4 million from $11.9 million because of higher compensation costs; investments in new revenue initiatives; costs related to the acquisition of ConsumerSearch.com, including increased content costs; and higher amortization expense. Operating profit decreased 2.0 percent to $6.3 million from $6.4 million. The operating profit margin declined mainly because of investments in new business initiatives that are expected to contribute to future revenues, one-time restructuring costs for the About Group's sales organization, and higher compensation and content costs. Operating profit before depreciation and amortization rose 9.3 percent to $10.2 million from $9.4 million, due to higher revenues. In the fourth quarter, both the operating profit and margin are expected to increase above those of the third quarter, mainly because of higher seasonal revenues and the absence of the one-time restructuring costs. Corporate Corporate costs were $11.3 million compared with $11.7 million in the prior year third quarter. Other Financial Data Internet Revenues In the third quarter, the Company's Internet revenues increased 26.5 percent to $79.7 million from $63.0 million in the third 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 10.6 percent of the Company's revenues in the third quarter versus 8.5 percent in the 2006 third quarter. Joint Ventures Net income from joint ventures was $5.4 million compared with $7.3 million. Lower earnings resulted from weaker performance at all of the properties in which the Company has equity interests. Included in the third quarter last year is the loss of $7.8 million on the sale of the Company's interest in DTC in October 2006. Interest Expense-net Interest expense-net decreased to $10.5 million from $13.3 million primarily due to lower levels of short-term debt partially offset by lower capitalized interest. Income Taxes The effective income tax rate increased to 39.0 percent in the third quarter from 32.8 percent in the same period last year when a favorable tax adjustment lowered the tax rate. Cash and Total Debt At the end of the quarter, cash and cash equivalents were approximately $53 million and total debt was approximately $1 billion. Capital Expenditures In the third quarter, total capital expenditures were approximately $71 million, which included approximately $18 million for the Company's new headquarters. Expectations The following expectations are for the fourth quarter of 2007 with the exception of cost savings and productivity gains, which are for 2008 and 2009. -- Cost savings and productivity gains - 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. -- Staff reduction costs - $14 to $16 million. This range can vary significantly based on seniority and the timing of implementation. -- Depreciation and amortization - $48 to $50 million, which includes $6 to $7 million of accelerated depreciation expense associated with the plant consolidation project, mainly presses. -- Income from joint ventures - Loss of $3 to $5 million. -- Interest expense - $11 to $13 million. -- Capital expenditures - $50 to $80 million. -- Income tax rate - Approximately 41 percent. The fourth quarter of 2006 included an extra week that resulted in $50.8 million in revenues, $36.8 million in costs and $.06 of earnings per share. Conference Call Information The Company's third-quarter earnings conference call will be held on Tuesday, October 23, at 10:30 a.m. E.T. To access the call, dial 877-704-5386 (in the U.S.) and 913-312-1302 (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 Wednesday, October 24. The access code is 5871164. 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. 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 of Non-GAAP Information THE NEW YORK TIMES COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars and shares in thousands, except per share data) - ---------------------------------------------------------------------- Third Quarter ------------------------------ 2007 2006 % Change ---------- ---------- -------- Revenues Advertising $ 465,043 $ 465,476 -0.1% Circulation 223,420 215,007 3.9% Other (a) 65,896 59,103 11.5% ---------- ---------- Total 754,359 739,586 2.0% Operating costs Production costs 331,962 344,098 -3.5% Selling, general and administrative costs 342,503 340,927 0.5% Depreciation and amortization 51,789 36,676 41.2% ---------- ---------- Total 726,254 721,701 0.6% Net loss on sale of assets (b) - - N/A Gain on sale of WQEW-AM - - N/A ---------- ---------- Operating profit 28,105 17,885 57.1% Net income from joint ventures 5,412 7,348 -26.3% Interest expense - net 10,470 13,267 -21.1% ---------- ---------- Income from continuing operations before income taxes and minority interest 23,047 11,966 92.6% Income tax expense 8,991 3,926 * Minority interest in net loss of subsidiaries 54 267 -79.8% ---------- ---------- Income from continuing operations 14,110 8,307 69.9% Income from discontinued operations, net of income taxes- Broadcast Media Group (c) - 4,290 -100.0% Gain/(loss) on sale of Broadcast Media Group, net of income taxes (c) (671) - N/A ---------- ---------- Discontinued operations, net of income taxes (671) 4,290 * ---------- ---------- Net income $ 13,439 $ 12,597 6.7% ========== ========== Average Number of Common Shares Outstanding: Basic 143,902 144,454 -0.4% Diluted 144,112 144,568 -0.3% Basic Earnings Per Share: Income from continuing operations $ 0.10 $ 0.06 66.7% Discontinued operations, net of income taxes (0.01) 0.03 * ---------- ---------- Net Income $ 0.09 $ 0.09 - ========== ========== Diluted Earnings Per Share: Income from continuing operations $ 0.10 $ 0.06 66.7% Discontinued operations, net of income taxes (0.01) 0.03 * ---------- ---------- Net Income $ 0.09 $ 0.09 - ========== ========== Dividends Per Share 0.230 0.175 31.4% Nine Months ------------------------------ 2007 2006 % Change ----------- ---------- -------- Revenues Advertising $1,478,425 $1,527,604 -3.2% Circulation 664,538 654,993 1.5% Other (a) 186,359 175,822 6.0% ---------- ---------- Total 2,329,322 2,358,419 -1.2% Operating costs Production costs 1,002,909 1,055,173 -5.0% Selling, general and administrative costs 1,029,045 1,030,941 -0.2% Depreciation and amortization 142,871 107,712 32.6% ---------- ---------- Total 2,174,825 2,193,826 -0.9% Net loss on sale of assets (b) 68,156 - N/A Gain on sale of WQEW-AM 39,578 - N/A ---------- ---------- Operating profit 125,919 164,593 -23.5% Net income from joint ventures 8,004 18,085 -55.7% Interest expense - net 28,924 39,025 -25.9% ---------- ---------- Income from continuing operations before income taxes and minority interest 104,999 143,653 -26.9% Income tax expense 48,741 51,557 -5.5% Minority interest in net loss of subsidiaries 39 604 -93.5% ---------- ---------- Income from continuing operations 56,297 92,700 -39.3% Income from discontinued operations, net of income taxes- Broadcast Media Group (c) 5,753 11,890 -51.6% Gain/(loss) on sale of Broadcast Media Group, net of income taxes (c) 93,659 - N/A ---------- ---------- Discontinued operations, net of income taxes 99,412 11,890 * ---------- ---------- Net income $ 155,709 $ 104,590 48.9% ========== ========== Average Number of Common Shares Outstanding: Basic 143,901 144,803 -0.6% Diluted 144,057 144,982 -0.6% Basic Earnings Per Share: Income from continuing operations $ 0.39 $ 0.64 -39.1% Discontinued operations, net of income taxes 0.69 0.08 * ---------- ---------- Net Income $ 1.08 $ 0.72 50.0% ========== ========== Diluted Earnings Per Share: Income from continuing operations $ 0.39 $ 0.64 -39.1% Discontinued operations, net of income taxes 0.69 0.08 * ---------- ---------- Net Income $ 1.08 $ 0.72 50.0% ========== ========== Dividends Per Share 0.635 0.515 23.3% * 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) - ---------------------------------------------------------------------- Third Quarter Nine Months ---------------------------- ------------------------------ 2007 2006 % Change 2007 2006 % Change --------- --------- -------- ---------- ---------- -------- Revenues (c) - -------------------- News Media Group $ 729,635 $ 721,260 1.2% $2,257,350 $2,302,441 -2.0% About Group 24,724 18,326 34.9% 71,972 55,978 28.6% --------- --------- ---------- ---------- Total $ 754,359 $ 739,586 2.0% $2,329,322 $2,358,419 -1.2% ========= ========= ========== ========== Operating Profit (Loss) (c) - ------------------------------ News Media Group $ 33,136 $ 23,183 42.9% $ 139,418 $ 178,371 -21.8% About Group 6,291 6,418 -2.0% 23,132 20,670 11.9% Corporate (11,322) (11,716) -3.4% (36,631) (34,448) 6.3% --------- --------- ---------- ---------- Total $ 28,105 $ 17,885 57.1% $ 125,919 $ 164,593 -23.5% ========= ========= ========== ========== Operating Profit (Loss) Before Depreciation & Amortization and Special Items(d) - ---------------------------------------------------------------------- News Media Group $ 79,223 $ 55,396 43.0% $ 295,245 $ 272,631 8.3% About Group 10,247 9,377 9.3% 33,639 29,534 13.9% Corporate (9,576) (10,212) -6.2% (31,516) (29,860) 5.5% --------- --------- ---------- ---------- Total $ 79,894 $ 54,561 46.4% $ 297,368 $ 272,305 9.2% ========= ========= ========== ========== - ---------------------------------------------------------------------- See footnotes page for additional information. THE NEW YORK TIMES COMPANY NEWS MEDIA GROUP REVENUES BY OPERATING SEGMENT (Dollars in thousands) - ---------------------------------------------------------------------- 2007 ----------------------------------------------- % % Change vs. Change vs. Third Quarter 2006 Nine Months 2006 ------------- ---------- ----------- ---------- The New York Times Media Group Advertising $ 271,234 3.7% $ 867,774 -2.0% Circulation 162,896 6.0% 481,446 2.9% Other 47,388 14.1% 133,607 8.3% ------------- ----------- Total $ 481,518 5.4% $ 1,482,827 0.4% ------------- ----------- New England Media Group Advertising $ 91,838 -5.7% $ 289,414 -5.9% Circulation 39,755 -1.8% 117,537 -2.9% Other 11,498 3.2% 31,548 -1.9% ------------- ----------- Total $ 143,091 -4.0% $ 438,499 -4.8% ------------- ----------- Regional Media Group Advertising $ 78,609 -11.6% $ 253,020 -10.1% Circulation 20,769 -0.1% 65,555 -0.8% Other 5,648 1.3% 17,449 -0.5% ------------- ----------- Total $ 105,026 -8.9% $ 336,024 -7.9% ------------- ----------- Total News Media Group Advertising $ 441,681 -1.4% $ 1,410,208 -4.4% Circulation 223,420 3.9% 664,538 1.5% Other (a) 64,534 10.8% 182,604 5.5% ------------- ----------- Total $ 729,635 1.2% $ 2,257,350 -2.0% ============= =========== - ---------------------------------------------------------------------- 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, rental income 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 then-existing 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 third quarter and nine months of 2007 and 2006 are below. In the third quarter of 2007, the gain on the sale included post closing adjustments. ----------------- ------------------ Third Quarter Nine Months ----------------- ------------------ 2007 2006 2007 2006 -------- -------- -------- --------- Revenues $ - $36,476 $46,702 $107,542 Pre-tax income $ - $ 7,271 $ 9,848 $ 20,153 Income taxes - (2,981) (4,095) (8,263) -------- -------- -------- --------- Income from discontinued operations, net of income taxes- Broadcast Media Group - 4,290 5,753 11,890 Gain/(loss) on sale of Broadcast Media Group, net of income taxes of $0.7 million in the third quarter of 2007 and $96.2 million for the nine months ending 2007 (671) - 93,659 - -------- -------- -------- --------- Net (loss)/income $ (671) $ 4,290 $99,412 $ 11,890 ======== ======== ======== ========= (d) See "Reconciliation of Non-GAAP Information" for reconciliations of operating profit(loss) to operating profit(loss) before depreciation and amortization and excluding special items. There were no such special items in the third quarters of 2007 and 2006. 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 (however, there were no such special items in the third quarters of 2007 or 2006), 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, if any, 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 ----------------------------- Third Quarter ----------------------------- 2007 2006 % Change ---------- ------- --------- Diluted EPS from continuing operations $ 0.10 $ 0.06 66.7% Adjustments: Accelerated depreciation 0.05 - Sale of Discovery Times Channel interest - 0.03 ---------- ------- --------- Adjusted diluted EPS $ 0.15 $ 0.09 66.7% ========== ======= ========= Reconciliation of operating profit(loss) before depreciation and amortization --------------------------------------- Third Quarter 2007 --------------------------------------- News Media About Total Group Group Corporate Company ---------- ------- --------- --------- Operating profit(loss) $ 33,136 $ 6,291 $ (11,322) $ 28,105 Add: Depreciation and amortization 46,087 3,956 1,746 51,789 ---------- ------- --------- --------- Operating profit(loss) before depreciation & amortization $ 79,223 $10,247 $ (9,576) $ 79,894 ========== ======= ========== ========= --------------------------------------- Third Quarter 2006 --------------------------------------- News Media About Total Group Group Corporate Company ---------- ------- --------- --------- Operating profit(loss) $ 23,183 $ 6,418 $ (11,716) $ 17,885 Add: Depreciation and amortization 32,213 2,959 1,504 36,676 ---------- ------- ---------- --------- Operating profit(loss) before depreciation & amortization $ 55,396 $ 9,377 $ (10,212) $ 54,561 ========== ======= ==================== --------------------------------------- % Change --------------------------------------- News Media About Total Group Group Corporate Company ---------- ------- --------- --------- Operating profit(loss) 42.9% -2.0% -3.4% 57.1% Add: Depreciation and amortization 43.1% 33.7% 16.1% 41.2% ---------- ------- --------- --------- Operating profit(loss) before depreciation & amortization 43.0% 9.3% -6.2% 46.4% ========== ======= ========= ========= Reconciliation of operating profit(loss) before depreciation and amortization and special items --------------------------------------- Nine Months 2007 --------------------------------------- News Media About Total Group Group Corporate Company ---------- ------- --------- --------- Operating profit(loss) $ 139,418 $23,132 $ (36,631) $ 125,919 Add: Depreciation and amortization 127,249 10,507 5,115 142,871 Net loss on sale of assets 68,156 - - 68,156 Gain on sale of WQEW-AM (39,578) - - (39,578) ---------- ------- --------- --------- Operating profit(loss) before depreciation & amortization and special items $ 295,245 $33,639 $ (31,516) $ 297,368 ========== ======= ========== ========= THE NEW YORK TIMES COMPANY RECONCILIATION OF NON-GAAP INFORMATION (continued) (Dollars in thousands) -------------------------------------- Nine Months 2006 -------------------------------------- News Media About Total Group Group Corporate Company ---------- -------- --------- -------- Operating profit(loss) $ 178,371 $ 20,670 $(34,448) $164,593 Add: Depreciation and amortization 94,260 8,864 4,588 107,712 ---------- -------- --------- -------- Operating profit(loss) before depreciation & amortization and special items $ 272,631 $ 29,534 $(29,860) $272,305 ========== ======== ========= ======== -------------------------------------- % Change -------------------------------------- News Media About Total Group Group Corporate Company ---------- -------- --------- -------- Operating profit(loss) -21.8% 11.9% 6.3% -23.5% Add: Depreciation and amortization 35.0% 18.5% 11.5% 32.6% Net loss on sale of assets - - - - Gain on sale of WQEW-AM - - - - ---------- -------- --------- -------- Operating profit(loss) before depreciation & amortization and special items 8.3% 13.9% 5.5% 9.2% ========== ======== ========= ======== Reconciliation of total operating costs excluding depreciation and amortization and raw materials ----------------------------- Third Quarter ----------------------------- 2007 2006 % Change ---------- -------- --------- Total operating costs $ 726,254 $721,701 0.6% Less: Depreciation and amortization 51,789 36,676 ---------- -------- --------- Sub-total 674,465 685,025 -1.5% Less: Raw materials 58,643 75,178 ---------- -------- --------- Adjusted operating costs $ 615,822 $609,847 1.0% ========== ======== ========= Reconciliation of News Media Group operating costs excluding depreciation and amortization ----------------------------- Third Quarter ----------------------------- News Media Group 2007 2006 % Change - ------------------------------- ---------- -------- --------- Operating costs $ 696,499 $698,077 -0.2% Less: Depreciation and amortization 46,087 32,213 ---------- -------- --------- Adjusted operating costs $ 650,412 $665,864 -2.3% ========== ======== ========= CONTACT: The New York Times Company Catherine J. Mathis, 212-556-1981 mathis@nytimes.com or Paula Schwartz, 212-556-5224 paula.schwartz@nytimes.com EX-99.2 3 a5524608ex992.txt EXHIBIT 99.2 Exhibit 99.2 The New York Times Company Reports Growth in September Revenues NEW YORK--(BUSINESS WIRE)--Oct. 23, 2007--The New York Times Company announced today that in September total Company revenues from continuing operations increased 5.0% compared with the same month a year ago. Advertising revenues grew 5.5% and circulation revenues rose 4.1%. Advertising revenues for the News Media Group benefited from strong growth in national advertising, which rose 18.9%, and included gains in both print and online advertising. The About Group again posted strong advertising gains in the month, up 39.1%. All comparisons are for September 2007 to September 2006 unless otherwise noted: News Media Group: Advertising revenues for the News Media Group increased 4.3%. The New York Times Media Group - Advertising revenues for The New York Times Media Group increased 11.3%. National advertising revenues rose due to growth in studio entertainment, financial services, international fashion, education and hotel advertising. Retail advertising revenues decreased mainly due to softness in department store, national chain store and home furnishing store advertising. Classified advertising revenues decreased because of weakness in real estate and automotive advertising. New England Media Group - Advertising revenues for the New England Media Group decreased 3.8%. National advertising revenues increased as growth in banking and studio entertainment advertising offset softer financial services, education and telecommunications advertising. Retail advertising revenues decreased primarily due to weakness in the department store, food/drug, computer/office supply and apparel/footwear categories. Classified advertising revenues decreased because of softness in help-wanted, real estate and automotive advertising. Regional Media Group - Advertising revenues for the Regional Media Group decreased 12.2%. Retail advertising revenues were down mainly because of decreases in home furnishing, home improvement, department store and telecommunications advertising. Classified advertising revenues decreased due to continued weakness in real estate, help-wanted and automotive advertising. Overall classified advertising revenues were affected by lower real estate classified advertising. The News Media Group's real estate advertising declined 14.8% in the month, in part due to a nationwide slowdown in real estate. Excluding the real estate category, advertising revenues for the News Media Group would have increased 6.7%. Approximately two-thirds of the Regional Media Group's advertising revenues come from its Florida and California properties, which have been experiencing particular softness in real estate advertising. Internet advertising revenues included in the News Media Group rose 23.3% in September due to growth in both display and classified advertising. Circulation revenues for the News Media Group grew 4.1% in September. Revenues were up at The New York Times and Regional Media Groups, and declined at the New England Media Group. In July 2007 The New York Times raised its newsstand and home-delivery prices. Last month the Company announced that the content previously available through TimesSelect - including online access to 23 news and opinion columnists, personalization tools and access to the Times archives back to 1987 - would be available free of charge beginning Sept. 19. About Group - Advertising revenues at the About Group (which includes the Web sites of About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com) rose 39.1%. September's growth was principally due to increases in both display and cost-per-click advertising. Display advertising increased primarily because of strength in the Internet, financial services and retail categories. In addition, advertising revenues reflect the acquisitions of ConsumerSearch.com in May 2007 and UCompareHealthCare.com in March 2007. Excluding these acquisitions, advertising revenues increased 29% in the month. In addition, The New York Times Company had the 10th largest presence on the Web, with 44.2 million unique visitors in the United States according to Nielsen//NetRatings, up approximately 12% from 39.4 million unique visitors in September 2006. Also according to Nielsen//NetRatings, NYTimes.com had 14.7 million unique visitors and was the No. 1 newspaper Web site in the United States, a position it has long held. 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) - ---------------------------------------------------------------------- September Year to Date ----------------------------------------------------- % % 2007 2006 Change 2007 2006 Change -------- -------- ------ ---------- ---------- ------ Advertising Revenues News Media National $94,102 $79,116 +18.9 $662,056 $644,659 +2.7 Retail 34,748 38,893 -10.7 314,180 337,452 -6.9 Classified 39,960 43,962 -9.1 387,735 446,228 -13.1 Other Ad Revenue 5,176 4,830 +7.2 46,237 46,069 +0.4 -------- -------- ------ ---------- ---------- ------ Total News Media Group 173,986 166,802 +4.3 1,410,208 1,474,408 -4.4 About Group(b) 7,878 5,663 +39.1 68,216 53,196 +28.2 -------- -------- ------ ---------- ---------- ------ Total Ad Revenues from Continuing Operations 181,864 172,464 +5.5 1,478,425 1,527,604 -3.2 Circulation Revenues 70,554 67,779 +4.1 664,538 654,993 +1.5 Other Revenues(c) 21,115 20,189 +4.6 186,359 175,822 +6.0 -------- -------- ------ ---------- ---------- ------ Total Company Revenues from Continuing Operations $273,534 $260,432 +5.0 $2,329,322 $2,358,419 -1.2 ======== ======== ====== ========== ========== ====== Discontinued Operations: Broadcast Media Group (d) 0 13,023 N/A 46,702 107,542 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes the Web sites of 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 Studio Systems, rental income 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) - ---------------------------------------------------------------------- Third Quarter ------------------------ % 2007 2006 Change -------- -------- ------ Advertising Revenues News Media National $212,910 $192,002 +10.9 Retail 97,191 104,874 -7.3 Classified 117,157 136,890 -14.4 Other Ad Revenue 14,423 14,250 +1.2 -------- -------- ------ Total News Media Group 441,681 448,015 -1.4 About Group(b) 23,362 17,461 +33.8 -------- -------- ------ Total Ad Revenues from Continuing Operations 465,043 465,476 -0.1 Circulation Revenues 223,420 215,007 +3.9 Other Revenues(c) 65,896 59,103 +11.5 -------- -------- ------ Total Company Revenues from Continuing Operations $754,359 $739,586 +2.0 ======== ======== ====== Discontinued Operations: Broadcast Media Group (d) 0 36,476 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes the Web sites of 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 Studio Systems, rental income 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) - ---------------------------------------------------------------------- September Year to Date ----------------------------------------------------- % % 2007 2006 Change 2007 2006 Change -------- -------- ------ ---------- ---------- ------ News Media Group New York Times Media Group $116,753 $104,853 +11.3 $867,774 $885,509 -2.0 New England Media Group 32,577 33,854 -3.8 289,414 307,569 -5.9 Regional Media Group 24,657 28,095 -12.2 253,020 281,330 -10.1 -------- -------- ------ ---------- ---------- ------ Total News Media Group 173,986 166,802 +4.3 1,410,208 1,474,408 -4.4 About Group (b) 7,878 5,663 +39.1 68,216 53,196 +28.2 -------- -------- ------ ---------- ---------- ------ Total Ad Revenues from Continuing Operations $181,864 $172,464 +5.5 $1,478,425 $1,527,604 -3.2 ======== ======== ====== ========== ========== ====== Discontinued Operations: Broadcast Media Group (c) 0 12,724 N/A 45,745 105,669 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes the Web sites of 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) - ---------------------------------------------------------------------- Third Quarter ------------------------ % 2007 2006 Change -------- -------- ------ News Media Group New York Times Media Group $271,234 $261,653 +3.7 New England Media Group 91,838 97,424 -5.7 Regional Media Group 78,609 88,938 -11.6 -------- -------- ------ Total News Media Group 441,681 448,015 -1.4 About Group (b) 23,362 17,461 +33.8 -------- -------- ------ Total Ad Revenues from Continuing Operations $465,043 $465,476 -0.1 ======== ======== ====== Discontinued Operations: Broadcast Media Group (c) 0 35,807 N/A - ---------------------------------------------------------------------- (a) Numbers may not add due to rounding. (b) Includes the Web sites of 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 Sept. '07 Q3 '07 YTD '07 vs. Sept. '06 vs. Q3 '06 vs. YTD '06 ------------------------------------ Help Wanted -10.7 -15.2 -12.0 Real Estate -14.8 -20.8 -18.4 Automotive -15.4 -16.7 -16.9 Other +29.0 +14.7 +10.0 ------------------------------------ Total -9.1 -14.4 -13.1 - ---------------------------------------------------------------------- THE NEW YORK TIMES COMPANY 2007 PRINT ADVERTISING VOLUME (a) (Inches in thousands, Preprints in thousands of copies) - ---------------------------------------------------------------------- September Year to Date - ---------------------------------------------------------------------- % % 2007 2006 Change 2007 2006 Change ------- ------- ------ --------- --------- ------ National 209.6 190.6 +9.9 1,567.9 1,663.0 -5.7 Retail 422.8 486.3 -13.1 4,202.8 4,543.2 -7.5 Classified 558.7 724.3 -22.9 6,127.4 7,210.2 -15.0 ------- ------- ------ --------- --------- ------ Total ROP 1,191.0 1,401.3 -15.0 11,898.2 13,416.4 -11.3 ------- ------- ------ --------- --------- ------ Part Run/ Zoned 139.3 151.7 -8.2 1,250.9 1,458.5 -14.2 ------- ------- ------ --------- --------- ------ Total 1,330.3 1,553.0 -14.3 13,149.0 14,875.0 -11.6 ======= ======= ====== ========= ========= ====== Preprints 201,940 218,454 -7.6 1,994,956 2,060,764 -3.2 - ---------------------------------------------------------------------- (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) - ---------------------------------------------------------------------- Third Quarter - ---------------------------------------------------------------------- % 2007 2006 Change ------- ------- ------ National 495.3 497.0 -0.3 Retail 1,314.2 1,446.0 -9.1 Classified 1,795.6 2,350.4 -23.6 ------- ------- ------ Total ROP 3,605.1 4,293.4 -16.0 ------- ------- ------ Part Run/ Zoned 386.9 442.7 -12.6 ------- ------- ------ Total 3,992.0 4,736.2 -15.7 ======= ======= ====== Preprints 641,558 657,709 -2.5 - ---------------------------------------------------------------------- (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. CONTACT: The New York Times Company Catherine J. Mathis, 212-556-1981 mathis@nytimes.com or Paula Schwartz, 212-556-5224 paula.schwartz@nytimes.com -----END PRIVACY-ENHANCED MESSAGE-----