EX-99.1 2 dex991.htm REGULATION FD DISCLOSURE Regulation FD Disclosure

Exhibit 99.1

Summary Historical Consolidated Financial Information

The following table sets forth our summary historical consolidated financial information for the periods presented. The following information is only a summary and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the consolidated financial statements and the related notes, which appear in our Annual Report on Form 10-K for the year ended December 27, 2009, and our Quarterly Reports on Form 10-Q for the quarters ended March 28, 2010, June 27, 2010 and September 26, 2010, which have been incorporated herein by reference. We have derived the statement of operations data for the 2007, 2008 and 2009 fiscal years and the balance sheet data as of December 27, 2009, and December 28, 2008, from our audited financial statements, which are incorporated by reference in this offering memorandum. We have derived the balance sheet data as of December 30, 2007, from our audited financial statements, which are not incorporated by reference herein. We have derived the statement of operations data for the nine months ended September 26, 2010, and September 27, 2009, and the balance sheet data as of September 26, 2010, from our unaudited financial statements, which are incorporated by reference in this offering memorandum. We have derived the statement of operations data for the twelve months ended September 26, 2010 by adding our results for the nine months ended September 26, 2010 to results for the twelve months ended December 27, 2009 and deducting our results for the nine months ended September 27, 2009. Our historical results for any prior period are not necessarily indicative of results to be expected for any future period. All fiscal years presented in the table below comprise 52 weeks.

 

    Nine Months Ended     Twelve Months
Ended
    Years Ended  

(In thousands)

  September 26,
2010
    September 27,
2009
    September 26,
2010
    December 27,
2009
    December 28,
2008
    December 30,
2007
 

Statement of Operations Data

           

Revenues:

           

Advertising

  $ 914,518      $ 938,273      $ 1,312,536      $ 1,336,291      $ 1,771,033      $ 2,037,816   

Circulation

    700,819        697,156        940,149        936,486        910,154        889,882   

Other

    116,450        123,859        160,253        167,662        258,577        257,059   
                                               

Total revenues

    1,731,787        1,759,288        2,412,938        2,440,439        2,939,764        3,184,757   

Operating costs

    1,586,895        1,727,067        2,167,628        2,307,800        2,783,076        2,919,031   

Pension withdrawal expense

    6,268        80,249        4,950        78,931                 

Net pension curtailment expense/(gain)

           2,706        (56,671     (53,965              

Loss on leases and other

           16,363        18,270        34,633                 

Impairment of assets

    16,148               20,327        4,179        197,879        11,000   

Net (gain)/loss on sale of assets

           (5,198            (5,198            68,156   
                                               

Operating profit/(loss)

    122,476        (61,899     258,434        74,059        (41,191     186,570   

Income/(loss) from joint ventures

    22,271        20,335        22,603        20,667        17,062        (2,618

Gain on sale of investment

    9,128               9,128                        

Interest expense, net

    61,825        60,830        82,696        81,701        47,790        39,842   

Premium on debt redemption

           9,250               9,250                 
                                               

Income/(loss) from continuing operations before income taxes

    92,050        (111,644     207,469        3,775        (71,919     144,110   

Income tax expense/(benefit)

    50,444        (41,853     94,503        2,206        (5,979     57,150   
                                               

Income/(loss) from continuing operations

    41,606        (69,791     112,966        1,569        (65,940     86,960   

Income/(loss) from discontinued operations, net of income taxes

    13        (1,049     19,394        18,332        8,602        121,637   

Net (income)/loss attributable to the noncontrolling interest

    (1,054     (188     (876     (10     (501     107   
                                               

Net income/(loss) attributable to The New York Times Company common stockholders

  $ 40,565      $ (71,028   $ 131,484      $ 19,891      $ (57,839   $ 208,704   
                                               

 

1


    Nine Months Ended     Twelve Months
Ended
    Years Ended  

(In thousands)

  September 26,
2010
    September 27,
2009
    September 26,
2010
    December 27,
2009
    December 28,
2008
    December 30,
2007
 

Balance Sheet Data(at period end)

           

Cash and cash equivalents

  $ 128,641          $ 36,520      $ 56,784      $ 51,532   

Property, plant and equipment, net

    1,169,737            1,250,021        1,353,619        1,468,013   

Total assets

    3,016,507            3,088,557        3,401,680        3,473,092   

Total debt

    774,482            769,217        1,059,375        1,034,979   

Total New York Times Company stockholders’ equity

    657,940            604,042        503,963        978,200   

 

    Nine Months Ended     Twelve Months
Ended
    Years Ended  

(In thousands)

  September 26,
2010
    September 27,
2009
    September 26,
2010
    December 27,
2009
    December 28,
2008
    December 30,
2007
 

Other Data

           

Adjusted operating profit (1)

  $ 237,863      $ 163,962      $ 394,130      $ 320,229      $ 381,964      $ 490,454   

Adjusted operating costs (2)

    1,493,924        1,595,326        2,018,808        2,120,210        2,557,800        2,694,303   

Segment Data (3)

           

Adjusted operating profit:

           

News Media Group

  $ 215,623      $ 156,152      $ 371,247      $ 311,776      $ 370,737      $ 489,635   

About Group

    54,457        41,608        75,175        62,326        52,038        49,078   

Corporate

    (32,217     (33,798     (52,292     (53,873     (40,811     (48,259
                                               

Total Company

  $ 237,863      $ 163,962      $ 394,130      $ 320,229      $ 381,964      $ 490,454   
                                               

Adjusted operating profit to revenues:

           

News Media Group

    13     9     16     13     13     16

About Group

    54     49     55     51     45     48

Key Ratios

           

Operating profit/(loss) to revenues

        11     3     -1     6

Return on average total assets

        4     1     -2     6

Total debt to total capitalization

        54     56     68     51

Current assets to current liabilities (4)

        1.17        1.00        0.60        0.68   

Net debt to Adjusted operating profit (5)

        1.64        2.29        2.62        2.01   

Total debt to Adjusted operating profit

        1.97        2.40        2.77        2.11   

Adjusted operating profit to interest expense, net

        4.77        3.92        7.99        12.31   

Digital revenues as a percentage of advertising revenues

    26.3     21.7     25.2     22.0     17.4     13.9

Full-Time Equivalent Employees

    7,303        7,662        7,303        7,665        9,346        10,231   

(footnotes on succeeding pages)

 

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(1) Adjusted operating profit represents operating profit (loss) excluding depreciation and amortization expense, severance and the special items described below. Adjusted operating profit is not a measurement of operating performance computed in accordance with GAAP and should not be considered as a substitute for operating profit (loss) computed in accordance with GAAP. A reconciliation of operating profit (loss) to Adjusted operating profit is provided below.

 

     Nine Months Ended     Twelve Months
Ended
    Years Ended  

(In thousands)

  September 26,
2010
    September 27,
2009
    September 26,
2010
    December 27,
2009
    December 28,
2008
    December 30,
2007
 

Operating profit (loss)

  $ 122,476      $ (61,899   $ 258,434      $ 74,059      $ (41,191   $ 186,570   

Depreciation and amortization

    90,816        102,438        122,074        133,696        144,301        189,293   

Severance

    2,155        29,303        26,746        53,894        80,975        35,435   

Special items

    22,416        94,120        (13,124     58,580        197,879        79,156   
                                               

Adjusted operating profit

  $ 237,863      $ 163,962      $ 394,130      $ 320,229      $ 381,964      $ 490,454   
                                               

Special Items

           

Pension withdrawal expense

  $ 6,268      $ 80,249      $ 4,950      $ 78,931      $      $   

Net pension curtailment expense (gain)

           2,706        (56,671     (53,965              

Loss on leases and other

           16,363        18,270        34,633                 

Impairment of assets

    16,148               20,327        4,179        197,879        11,000   

Net (gain)/loss on sale of assets

           (5,198            (5,198            68,156   
                                               

Total special items

  $ 22,416      $ 94,120      $ (13,124   $ 58,580      $ 197,879      $ 79,156   
                                               

In the third quarter of 2010, we had an operating profit of $9.0 million and adjusted operating profit of $62.0 million. Adjusted operating profit excludes depreciation and amortization ($30.1 million), severance ($0.5 million) and special items, which include a write down of assets at the Globe’s [The Boston Globe (the “Globe”)] printing facility in Billerica, Mass. ($16.1 million) and a pension withdrawal expense ($6.3 million).

In the third quarter of 2009 we had an operating loss of $23.7 million and adjusted operating profit of $81.1 million. Adjusted operating profit excludes depreciation and amortization ($31.3 million), severance ($2.6 million) and special items, which includes a pension withdrawal expense ($76.1 million) and a gain on the sale of surplus real estate assets ($5.2 million).

For the nine months ended September 26, 2010, special items consisted of:

 

   

A $6.3 million pre-tax charge for an adjustment to estimated pension withdrawal obligations under several multiemployer pension plans at the Globe.

 

   

A $16.1 million pre-tax charge for a write-down of assets at the Globe’s printing facility in Billerica, Mass., which was consolidated into the Boston, Mass., printing facility in the second quarter of 2009. After exploring different opportunities for the assets at Billerica, the Company entered into an agreement in the third quarter of 2010 to sell the majority of these assets to a third party.

For the nine months ended September 27, 2009, special items consisted of:

 

   

A $83.0 million pre-tax charge primarily for estimated pension withdrawal obligations under several multiemployer pension plans ($80.3 million) as well as a curtailment charge for a Company-sponsored pension plan ($2.7 million). The charge was a result of amendments to various collective bargaining agreements at the Globe that allowed the withdrawal from these multiemployer plans and the freezing of benefits under the Company-sponsored plan.

 

3


 

   

A $16.4 million pre-tax charge for an estimated loss on leases at City & Suburban Delivery Systems, Inc. (“City & Suburban”), which was closed in the first quarter of 2009.

 

   

A $5.2 million pre-tax gain on the sale of surplus real estate assets at the Regional Media Group.

For the twelve months ended September 26, 2010, special items consisted of:

 

   

A $5.0 million pre-tax net charge for adjustments to estimated pension withdrawal obligations under several multiemployer pension plans at the Globe and related to the closure of City & Suburban.

 

   

A $56.7 million pre-tax net pension curtailment gain resulting from freezing of benefits under various Company-sponsored qualified and non-qualified pension plans.

 

   

An $18.3 million pre-tax charge for a loss on leases ($14.8 million) and a fee ($3.5 million) for the early termination of a third-party printing contract. The lease charge includes an $8.3 million loss on a lease for office space at The New York Times Media Group as well as an adjustment of $6.5 million to the estimated loss on leases recorded in the first quarter of 2009 associated with the City & Suburban closing.

 

   

A $16.1 million pre-tax charge for a write-down of assets at the Globe’s printing facility in Billerica, Mass., which was consolidated into the Boston, Mass., printing facility in the second quarter of 2009. After exploring different opportunities for the assets at Billerica, the Company entered into an agreement in the third quarter of 2010 to sell the majority of these assets to a third party.

 

   

A $4.2 million pre-tax charge for the impairment of assets due to the reduced scope of a systems project.

For 2009 fiscal year, special items consisted of:

 

   

A $78.9 million pre-tax charge for a pension withdrawal obligation under several multiemployer pension plans at the Globe.

 

   

A $54.0 million pre-tax net pension curtailment gain resulting from freezing of benefits under various Company-sponsored qualified and non-qualified pension plans.

 

   

A $34.6 million pre-tax charge for a loss on leases ($31.1 million) and a fee ($3.5 million) for the early termination of a third-party printing contract. The lease charge includes a $22.8 million charge for a loss on leases associated with the City & Suburban closing and an $8.3 million loss on a lease for office space at The New York Times Media Group.

 

   

A $4.2 million pre-tax charge for the impairment of assets due to the reduced scope of a systems project.

 

   

A $5.2 million pre-tax gain on the sale of surplus real estate assets at the Regional Media Group.

For 2008 fiscal year, special items consisted of:

 

   

A $160.4 million pre-tax, non-cash charge for the impairment of property, plant and equipment, intangible assets and goodwill at the New England Media Group.

 

   

A $19.2 million pre-tax, non-cash charge for the impairment of an intangible asset at the IHT, [the International Herald Tribune (the “IHT”)] whose results are included in The New York Times Media Group.

 

   

An $18.3 million pre-tax, non-cash charge for the impairment of assets for a systems project.

For 2007 fiscal year, special items consisted of:

 

   

An $11.0 million pre-tax, non-cash charge for the impairment of an intangible asset at [the Worcester Telegram & Gazette (the “T&G”)], whose results are included in the New England Media Group.

 

   

A $68.2 million net pre-tax loss from the sale of assets, mainly our Edison, N.J., facility.

 

4


 

(2) Adjusted operating costs represent operating costs excluding depreciation and amortization, and severance. Adjusted operating costs is not a measurement of operating performance computed in accordance with GAAP and should not be considered a substitute for operating costs computed in accordance with GAAP. A reconciliation of operating costs to adjusted operating costs is presented below.

 

    Nine Months Ended     Twelve Months
Ended
    Years Ended  

(In thousands)

  September 26,
2010
    September 27,
2009
    September 26,
2010
    December 27,
2009
    December 28,
2008
    December 30,
2007
 

Operating costs

  $ 1,586,895      $ 1,727,067      $ 2,167,628      $ 2,307,800      $ 2,783,076      $ 2,919,031   

Depreciation and amortization

    90,816        102,438        122,074        133,696        144,301        189,293   

Severance

    2,155        29,303        26,746        53,894        80,975        35,435   
                                               

Adjusted operating costs

  $ 1,493,924      $ 1,595,326      $ 2,018,808      $ 2,120,210      $ 2,557,800      $ 2,694,303   
                                               

In the third quarter of 2010, we had operating costs of $522.9 million and Adjusted operating costs of $492.3 million. Adjusted operating costs excludes depreciation and amortization ($30.1 million) and severance ($0.5 million).

In the third quarter of 2009, we had operating costs of $522.2 million and Adjusted operating costs of $488.3 million. Adjusted operating costs excludes depreciation and amortization ($31.3 million) and severance ($2.6 million).

 

(3) See note (1) for an explanation of Adjusted operating profit. A reconciliation of operating profit to adjusted operating profit for the News Media Group, the About Group and Corporate is presented below.

 

    Nine Months Ended     Twelve Months
Ended
    Years Ended  

(In thousands)

  September 26,
2010
    September 27,
2009
    September 26,
2010
    December 27,
2009
    December 28,
2008
    December 30,
2007
 

News Media Group operating profit (loss)

  $ 108,914      $ (60,228   $ 190,305      $ 21,163      $ (30,947   $ 207,708   

Depreciation and amortization

    82,141        94,098        110,652        122,609        124,254        167,838   

Severance

    2,152        28,162        26,743        52,753        79,551        34,933   

Special items

    22,416        94,120        43,547        115,251        197,879        79,156   
                                               

Adjusted operating profit

  $ 215,623      $ 156,152      $ 371,247      $ 311,776      $ 370,737      $ 489,635   
                                               

About Group operating profit

  $ 45,782      $ 32,910      $ 63,753      $ 50,881      $ 39,390      $ 34,703   

Depreciation and amortization

    8,675        8,340        11,422        11,087        12,251        14,375   

Severance

           358               358        397          
                                               

Adjusted operating profit

  $ 54,457      $ 41,608      $ 75,175      $ 62,326      $ 52,038      $ 49,078   
                                               

Corporate operating profit

  $ (32,220   $ (34,581   $ 4,376      $ 2,015      $ (49,634   $ (55,841

Depreciation and amortization

    —          —          —          —          7,796        7,080   

Severance

    3        783        3        783        1,027        502   

Special items

    —          —          (56,671     (56,671     —          —     
                                               

Adjusted operating profit

  $ (32,217   $ (33,798   $ (52,292   $ (53,873   $ (40,811   $ (48,259
                                               

See note (1) for a description of the special items.

 

(4) The current assets to current liabilities ratio is higher in 2009 because of repayments of current debt.

 

(5) Net debt represents total debt less cash and cash equivalents. See note (1) for an explanation of Adjusted operating profit.

 

5