NEW YORK--(BUSINESS WIRE)--April 22, 2010--The New York Times Company announced today 2010 first-quarter results.

Total revenues were down 3.2 percent in the quarter, a significant improvement from the fourth quarter 2009 decline of 11.5 percent.

“We were very pleased to report continued strong improvement in our operating performance,” said Janet L. Robinson, president and chief executive officer. “In the first quarter, we experienced significant positive trending in both print and digital advertising revenues relative to the fourth quarter. As the quarter progressed we saw acceleration in the rate of advertiser spending across our newspapers, Web sites and other platforms, reflecting a firming of economic conditions. The Company’s continued progress in our long-term strategy to restructure our cost base and reposition our businesses also contributed to the growth in our operating profit. Our liquidity position improved during the first quarter as a result of strong cash flow from operations, which provided us with increased financial flexibility.

“Strong growth in digital advertising revenues, which rose 18 percent, significantly offset a 12 percent decrease in print advertising and held our total advertising revenue decline to approximately 6 percent compared with the first quarter of 2009.

“Circulation revenues continued to grow and were up approximately 4 percent as we were able to command higher subscription and newsstand prices at The New York Times and The Boston Globe. This positive result emphasizes that our journalism is highly valued by our readers.

“Advertising revenues at the About Group rose an impressive 30 percent bolstered by strong growth in both cost-per-click and display advertising.

“Our results clearly demonstrate the positive impact of transitioning into an increasingly multiplatform company, as we continue to extend our content to new devices and our reach to new audiences. Online advertising revenues have become a much more significant part of our mix and made up 26 percent of our advertising revenues in the first quarter, up from 20 percent in the prior year.

“Once again strong cost control was a leading contributor to our improved operating performance in the quarter. The aggressive actions we have taken to permanently re-engineer our cost base in recent years are evidenced in the 18 percent decline in operating expenses. While we will remain vigilant in managing our costs, we expect these savings trends to moderate during the remainder of the year.

“In the early part of the second quarter, revenue trends for print advertising are expected to improve from the levels of the first quarter, while digital advertising is expected to trend similarly to the first quarter, with increases in the high teens.

“We believe with the significant progress we are making in reinventing our enterprise, providing even more compelling journalism, creating new products, becoming more productive and expanding our reach, we are well-positioned to thrive in the evolving media marketplace.”

All quarterly comparisons exclude the results of WQXR-FM, a New York City classical radio station, which was sold in the fourth quarter of 2009, and are reported as discontinued operations.

The first-quarter 2010 results from continuing operations included the following special items:

The first-quarter 2009 results from continuing operations included the following special item:

In addition to these special items, the Company had $0.2 million in severance costs in the first quarter of 2010 compared with $25.0 million ($15.3 million after tax or $.11 per share) in the first quarter of 2009, which were primarily at the New England Media Group.

Unless otherwise noted all comparisons are for the first quarter of 2010 to the first quarter of 2009. 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.

Total revenues decreased 3.2 percent to $587.9 million from $607.1 million. Advertising revenues declined 6.1 percent, circulation revenues rose 3.5 percent, and other revenues decreased 15.5 percent.

The increase in digital advertising revenues, which rose 18.3 percent, was more than offset by a 12.3 percent decrease in print advertising revenues.

Circulation revenues rose because of higher subscription and newsstand prices at The New York Times and The Boston Globe, offset in part by volume declines across the News Media Group.

Other revenues decreased 15.5 percent, mainly because of lower commercial printing and digital archive revenues and the closure of C & S.

Operating costs decreased 18.0 percent to $535.2 million from $652.5 million. Depreciation and amortization decreased to $30.4 million from $36.7 million in the first quarter of 2009 primarily due to the accelerated depreciation expense recognized in the first quarter of 2009 for assets at the Billerica, Mass., printing facility.

Excluding depreciation, amortization and severance, operating costs were down 14.6 percent to $504.6 million from $590.7 million as reductions occurred in nearly all major expense categories as a result of cost-saving initiatives. About half of the savings are from reductions in compensation and newsprint expense. Newsprint expense declined 36.9 percent, with 25.4 percent from lower pricing and 11.5 percent from lower consumption.

Total News Media Group revenues decreased 4.7 percent to $553.2 million from $580.3 million. Advertising revenues declined 9.1 percent, circulation revenues rose 3.5 percent, and other revenues decreased 16.5 percent.

Print advertising revenues were weak across the News Media Group resulting in a 12.3 percent decline. Digital advertising revenues grew 11.2 percent, partially offsetting the print decline.

Circulation revenues rose because of higher subscription and newsstand prices at The New York Times and The Boston Globe, offset in part by volume declines across the News Media Group.

Other revenues decreased primarily due to lower commercial printing and digital archive revenues and the closure of C & S.

News Media Group operating costs decreased 18.4 percent to $504.7 million from $618.3 million. Excluding depreciation, amortization and severance, operating costs decreased 14.9 percent to $477.0 million from $560.4 million as reductions occurred in nearly all major expense categories as a result of cost-restructuring initiatives. About half of the savings are from reductions in compensation and newsprint expense.

Operating profit for the News Media Group was $48.5 million in the first quarter of 2010 compared with an operating loss of $54.3 million in the first quarter of 2009. Excluding depreciation, amortization, severance and a special item in the first quarter of 2009, operating profit in the first quarter of 2010 was $76.2 million compared with $19.8 million, primarily due to lower operating costs. The first quarter of 2009 included significant losses at the New England Media Group, which includes The Boston Globe, the Worcester Telegram & Gazette and their Web sites.

About Group revenues increased 29.3 percent to $34.7 million from $26.8 million due to higher cost-per-click and display advertising.

About Group operating costs increased 1.4 percent to $18.1 million from $17.9 million. Excluding depreciation, amortization and severance, operating costs increased 2.9 percent to $15.2 million from $14.8 million primarily because of higher content costs.

Operating profit rose 85.0 percent to $16.6 million from $9.0 million. Excluding depreciation, amortization and severance, operating profit increased 61.7 percent to $19.5 million from $12.0 million, mainly due to higher advertising revenues.

Corporate operating costs decreased 24.1 percent in the first quarter of 2010 compared with the first quarter of 2009 primarily due to lower benefits expense and lower professional fees.

Internet businesses include NYTimes.com, About.com, Boston.com and other Company Web sites. In the first quarter, total Internet revenues increased 15.5 percent to $90.4 million from $78.2 million, and Internet advertising revenues increased 18.3 percent to $80.0 million from $67.6 million. Internet advertising revenues at the News Media Group increased 11.2 percent to $46.9 million from $42.2 million mainly due to strong growth in national display advertising offset in part by lower classified advertising. In total, Internet businesses accounted for 15.4 percent of the Company’s revenues for the first quarter of 2010 versus 12.9 percent for the first quarter of 2009.

Income from joint ventures was $9.1 million compared with $4.4 million in the first quarter of 2009. The first quarter of 2010 includes a $12.7 million pre-tax gain from the sale of an asset at one of the paper mills in which the Company has an investment. Excluding the gain, income from joint ventures was lower in the first quarter compared with the first quarter of 2009 due to lower paper selling prices at both paper mills in which the Company has investments.

Early in the second quarter of 2010, the Company sold 50 of its 750 units in the New England Sports Ventures, LLC (“NESV”). The Company expects to record an approximate $9 million pre-tax gain in the second quarter of 2010 from the sale. Following the sale, the Company owns a 16.57 percent interest in NESV. The Company intends to continue to explore the sale of its remaining interest in NESV, in whole or in parts.

Interest expense, net increased as a result of higher interest rates on the Company’s debt offset in part by lower average debt outstanding.

The Company's effective income tax rate was 65.6 percent in the first quarter. The high tax rate for the quarter was driven by a $10.9 million one-time tax charge for the reduction in future tax benefits for retiree health benefits resulting from the recently issued federal health care legislation. Excluding the charge, the Company's effective income tax rate was 39.3 percent in the first quarter.

In the first quarter of 2009, the Company recognized a pre-tax loss of $75.4 million but only an income tax benefit of $1.2 million. The tax provision was unfavorably affected by significant losses at the New England Media Group, for which only a minimum state tax benefit was recognized due to a Massachusetts law change, and various nondeductible losses. These items were partially offset by a $12 million adjustment to reduce the Company’s reserve for uncertain tax positions.

The following table details the maturities and carrying values of the Company's debt, net of cash and cash equivalents as of March 28, 2010.

As of the end of the first quarter of 2010, excluding letters of credit, there were no outstanding borrowings under the Company’s $400.0 million revolving credit facility.

Capital expenditures totaled approximately $4 million in the first quarter of 2010.

Early in the second quarter of 2010, the Company made a discretionary contribution of $78 million to one of its sponsored qualified pension plans, reducing the underfunded status. The Company may make additional discretionary contributions to its sponsored qualified pension plans in 2010 depending on cash flows, pension asset performance, interest rates and other factors.

While we will remain diligent in managing our operating expenses, we expect that through the remainder of 2010 year-over-year cost savings will moderate, in part because we will be cycling past several major expense-reduction initiatives implemented in mid-2009, we reinstated many of the salary rollbacks implemented in the second quarter of 2009, and newsprint prices are currently rising. We do expect to manage our operating cost base such that we will adjust expense levels to offset any revenue declines through the remainder of the year.

Given recent announcements of additional price increases by suppliers, we expect newsprint price comparisons to be slightly favorable in the second quarter and unfavorable in the third and fourth quarters of 2010.

The Company’s first-quarter 2010 earnings conference call will be held on Thursday, April 22, at 11:00 a.m. E.T. To access the call, dial 800-967-7141 (in the U.S.) and 719-457-2665 (international callers). Participants should dial into the conference call approximately 10 minutes before the start time. Online listeners can link to the live webcast at www.nytco.com/investors.

An archive of the webcast will be available beginning two hours after the call at www.nytco.com/investors, and a transcript of the call will also be posted. The archive and transcript will be available for approximately three months.

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, April 23. The access code is 4695852.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by our various markets, material increases in newsprint prices and the development of our digital businesses. 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 27, 2009. The Company undertakes no obligation to publicly update or revise 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 2009 revenues of $2.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers and more than 50 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.

THE NEW YORK TIMES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars and shares in thousands, except per share data)

		First Quarter
		2010			2009		% Change
Revenues
Advertising	$	312,658		$	332,838		-6.1	%
Circulation		236,863			228,914		3.5	%
Other ^(a)		38,346			45,381		-15.5	%
Total		587,867			607,133		-3.2	%

Operating costs
Production costs		240,849			289,730		-16.9	%
Selling, general and administrative costs		263,971			325,987		-19.0	%
Depreciation and amortization		30,389			36,741		-17.3	%
Total		535,209			652,458		-18.0	%

Loss on leases ^(b)		-			16,363		N/A

Operating profit/(loss)		52,658			(61,688	)	*

Income from joint ventures ^(c)		9,111			4,403		*

Interest expense, net		20,584			18,146		13.4	%

Income/(loss) from continuing operations before
income taxes		41,185			(75,431	)	*

Income tax expense/(benefit) ^(d)		27,027			(1,171	)	*

Income/(loss) from continuing operations		14,158			(74,260	)	*

Income from discontinued operations,
net of income taxes ^(e)		-			31		N/A

Net income/(loss)		14,158			(74,229	)	*

Net income attributable to the noncontrolling interest		(1,365	)		(239	)	*

Net income/(loss) attributable to The New York Times
Company common stockholders	$	12,793		$	(74,468	)	*

Amounts attributable to The New York Times
Company common stockholders:
Income/(loss) from continuing operations	$	12,793		$	(74,499	)	*
Income from discontinued operations		-			31		N/A
Net income/(loss)	$	12,793		$	(74,468	)	*

Average Number of Common Shares Outstanding:
Basic		145,195			143,907		0.9	%
Diluted		153,924			143,907		7.0	%

Basic Earnings/(Loss) Per Share attributable to The New York
Times Company common stockholders:
Income/(loss) from continuing operations	$	0.09		$	(0.52	)	*
Income from discontinued operations		0.00			0.00		N/A
Net income/(loss)	$	0.09		$	(0.52	)	*

Diluted Earnings/(Loss) Per Share attributable to The New York
Times Company common stockholders:
Income/(loss) from continuing operations	$	0.08		$	(0.52	)	*
Income from discontinued operations		0.00			0.00		N/A
Net income/(loss)	$	0.08		$	(0.52	)	*

Dividends Per Share	$	0.00		$	0.00		N/A

* 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)

		First Quarter
		2010			2009		% Change

Revenues
News Media Group	$	553,169		$	580,293		-4.7	%
About Group		34,698			26,840		29.3	%
Total	$	587,867		$	607,133		-3.2	%

Operating Profit/(Loss)
News Media Group	$	48,471		$	(54,346	)	*
About Group		16,560			8,951		85.0	%
Corporate		(12,373	)		(16,293	)	-24.1	%
Total	$	52,658		$	(61,688	)	*

Operating Profit/(Loss) Before Depreciation & Amortization, Severance & A Special Item ^(f)
News Media Group	$	76,177		$	19,844		*
About Group		19,477			12,048		61.7	%
Corporate		(12,370	)		(15,491	)	-20.1	%
Total	$	83,284		$	16,401		*


* Represents an increase in excess of 100%.


See footnotes page for additional information.

THE NEW YORK TIMES COMPANY
NEWS MEDIA GROUP REVENUES BY OPERATING SEGMENT
(Dollars in thousands)

		2010
		First Quarter	% Change vs. 2009

The New York Times Media Group
Advertising	$	185,059	-7.2	%
Circulation		173,419	3.9	%
Other		22,100	-21.3	%
Total	$	380,578	-3.5	%

New England Media Group
Advertising	$	50,259	-9.8	%
Circulation		41,290	8.3	%
Other		9,964	-6.5	%
Total	$	101,513	-2.8	%

Regional Media Group
Advertising	$	44,260	-15.5	%
Circulation		22,154	-7.3	%
Other		4,664	-11.0	%
Total	$	71,078	-12.8	%

Total News Media Group
Advertising	$	279,578	-9.1	%
Circulation		236,863	3.5	%
Other^(a)		36,728	-16.5	%
Total	$	553,169	-4.7	%


See footnotes page for additional information.

THE NEW YORK TIMES COMPANY
FOOTNOTES
(Dollars in thousands)

^(a)	Other revenues consist primarily of revenues from news services/syndication, commercial printing, rental income, digital archives and direct mail advertising services.

^(b)	In the first quarter of 2009, the Company recorded an estimated loss on leases of $16.4 million at City & Suburban. In the fourth quarter of 2009, the Company recorded an adjustment of $6.5 million to this estimate.

^(c)	Includes a $12.7 million pre-tax gain from the sale of an asset at one of the paper mills in which the Company has an investment. The Company's share of the pre-tax gain, after eliminating the noncontrolling interest portion, is $10.2 million.

^(d)	Includes a $10.9 million ($.07 per share) one-time tax charge for the reduction in future tax benefits for retiree health benefits resulting from the recently issued federal health care legislation.

^(e)	In the fourth quarter of 2009, the Company sold WQXR-FM, its New York City classical radio station. The results for WQXR-FM, which had previously been included in The New York Times Media Group, are now classified as discontinued operations for all periods presented.

	Results for WQXR-FM were as follows:

		First Quarter
			2010		2009
	Revenues	$	-	$	1,889
	Pre-tax income	$	-	$	54
	Income tax expense		-		23
	Income from discontinued operations, net of income taxes	$	-	$	31

^(f)	See "Reconciliation of Non-GAAP Information" for reconciliations of operating profit/(loss) to operating profit/(loss) before depreciation, amortization, severance and a special item.

THE NEW YORK TIMES COMPANY
RECONCILIATION OF NON-GAAP INFORMATION
(Dollars in thousands, except per share data)

In this release, the Company has included non-GAAP financial information with respect to diluted earnings/(loss) per share from continuing operations excluding severance and special items (if any), operating profit/(loss) before depreciation, amortization, severance and special items (if any) and operating costs before depreciation, amortization, severance, and 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 diluted earnings/(loss) per share 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 or superior measures of GAAP results.

Diluted earnings/(loss) per share from continuing operations excluding severance and special items provide 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, amortization, severance and special items is useful in evaluating the Company’s ongoing performance of its businesses 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, amortization, severance and raw materials. Total operating costs excluding these items provide investors with helpful supplemental information on the Company's underlying operating costs that is used by management in its financial and operational decision-making.

Reconciliations of these non-GAAP financial measures from, respectively, diluted earnings/(loss) per share from continuing operations, operating profit/(loss) and operating costs, the most directly comparable GAAP items, are set out in the tables below.

Reconciliation of diluted earnings/(loss) per share from continuing operations excluding severance and special items

		First Quarter
		2010			2009			% Change

Diluted earnings/(loss) per share
from continuing operations	$	0.08		$	(0.52	)		*

Add:

Severance		0.00			0.11

Special items:
Tax expense - federal health care legislation		0.07			0.00
Gain on sale of joint venture asset		(0.04	)		0.00
Loss on leases		0.00			0.07
Diluted earnings/(loss) per share from continuing
operations excluding severance and special items	$	0.11		$	(0.34	)		*

Reconciliation of operating profit/(loss) before depreciation & amortization, severance and a special item

		First Quarter 2010
		News Media Group			About Group			Corporate			Total Company

Operating profit/(loss)	$	48,471		$	16,560		$	(12,373	)	$	52,658

Add:
Depreciation & amortization		27,472			2,917			-			30,389

Severance		234			-			3			237

Operating profit/(loss) before depreciation &
amortization and severance	$	76,177		$	19,477		$	(12,370	)	$	83,284


		First Quarter 2009
		News Media Group			About Group			Corporate			Total Company

Operating profit/(loss)	$	(54,346	)	$	8,951		$	(16,293	)	$	(61,688	)

Add:

Depreciation & amortization		33,959			2,782			-			36,741

Severance		23,868			315			802			24,985

Special item:
Loss on leases		16,363			-			-			16,363

Operating profit/(loss) before depreciation &
amortization, severance and a special item	$	19,844		$	12,048		$	(15,491	)	$	16,401


		% Change
		News Media Group			About Group			Corporate			Total Company

Operating profit/(loss)		*			85.0	%		-24.1	%		*

Add:

Depreciation & amortization		-19.1	%		4.9	%		N/A			-17.3	%

Severance		-99.0	%		-100.0	%		-99.6	%		-99.1	%

Special item:
Loss on leases		N/A			N/A			N/A			N/A

Operating profit/(loss) before depreciation &
amortization, severance and a special item		*			61.7	%		-20.1	%		*

* Represents an increase in excess of 100%.

THE NEW YORK TIMES COMPANY
RECONCILIATION OF NON-GAAP INFORMATION (continued)
(Dollars in thousands)


Reconciliation of total Company operating costs before depreciation & amortization, severance and raw materials

		First Quarter
		2010		2009	% Change

Total Company

Operating costs	$	535,209	$	652,458	-18.0	%

Less:

Depreciation & amortization		30,389		36,741

Severance		237		24,985

Operating costs before depreciation &
amortization and severance		504,583		590,732	-14.6	%

Less:

Raw materials		37,018		55,930

Operating costs before depreciation & amortization,
severance and raw materials	$	467,565	$	534,802	-12.6	%

Reconciliation of News Media Group operating costs before depreciation & amortization and severance

		First Quarter
		2010		2009	% Change

News Media Group

Operating costs	$	504,698	$	618,276	-18.4	%

Less:
Depreciation & amortization		27,472		33,959

Severance		234		23,868

Operating costs before depreciation &
amortization and severance	$	476,992	$	560,449	-14.9	%

Reconciliation of About Group operating costs before depreciation & amortization and severance

		First Quarter
		2010		2009	% Change

About Group

Operating costs	$	18,138	$	17,889	1.4	%

Less:

Depreciation & amortization		2,917		2,782

Severance		-		315

Operating costs before depreciation &
amortization and severance	$	15,221	$	14,792	2.9	%

CONTACT:
The New York Times Company
Paula Schwartz, 212-556-4317
paula.schwartz@nytimes.com

(in thousands)
2012 4.61% medium-term notes	$	75,000
2015 5.0% notes and 14.053% notes		500,000
2019 Option to repurchase ownership interest in headquarters building		250,000
Total	$	825,000
Unamortized amounts		(60,777	)
Carrying value of debt	$	764,223
Capital lease obligations		6,744
Total debt	$	770,967
Less: Cash and cash equivalents		100,143
Debt, net of cash and cash equivalents	$	670,824

Exhibits:		Condensed Consolidated Statements of Operations
		Segment Information
		News Media Group Revenues by Operating Segment
		Advertising Revenues by Category
		Footnotes
		Reconciliation of Non-GAAP Information

THE NEW YORK TIMES COMPANY
ADVERTISING REVENUES BY CATEGORY
(Dollars in thousands)
	2010
	First Quarter		% Change vs. 2009

News Media Group
National	$	158,868	-6.0	%
Retail		63,701	-11.0	%
Classified:
Help-Wanted		9,474	-17.1	%
Real Estate		16,494	-23.9	%
Automotive		9,731	-13.4	%
Other		12,905	-4.1	%
Total Classified		48,604	-15.9	%
Other		8,405	-5.9	%
Total News Media Group		279,578	-9.1	%

About Group		33,080	30.0	%

Total Company	$	312,658	-6.1	%