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NEW YORK, Jul 16, 2002 (BUSINESS WIRE) -- The New York Times Company announced
today that second-quarter diluted earnings per share were $.52, up 4.0 percent
from an adjusted $.50 in the 2001 second quarter, excluding special items.
The previously reported second-quarter 2001 earnings per share of $.44,
excluding special items, included a charge of $.06 for amortization of goodwill
and certain other intangible assets that are no longer amortized under mandated
accounting rules adopted at the beginning of the Company's 2002 fiscal year (FAS
142). For purposes of making an accurate comparison, all "adjusted" amounts in
this release include the elimination of amortization of goodwill and certain
other intangible assets as if FAS 142 had been adopted in the beginning of 2001.
Including special items, diluted earnings per share, as reported in the attached
income statements, were $.51, down 70.0 percent from an adjusted $1.70 in the
second quarter of 2001. Special items in the second quarter of 2002 were work
force reduction expenses, primarily at The Boston Globe, which amounted to $3.0
million ($1.8 million after tax or $.01 per share) and income of $1.3 million
($0.8 million after tax, and less than $.01 per share) related to a non-compete
agreement. The special items in the second quarter of 2001 were a gain of $412.0
million ($241.3 million after tax or $1.49 per share) related to the sale of the
Company's Magazine Group; work force reduction expenses of $79.1 million ($47.1
million after tax or $.29 per share); and income of $1.3 million ($0.8 million
after tax and less than $.01 per share) related to a non-compete agreement.
Net income of $79.8 million for the second quarter of 2002 equaled the adjusted
2001 second-quarter amount of $79.8 million, excluding special items. Including
special items, net income, as reported in the attached income statements, was
$78.8 million, down 71.3 percent from an adjusted $274.7 million in the second
quarter of 2001.
Operating profit in the second quarter increased 4.9 percent to $144.7 million
from an adjusted $137.9 million in the second quarter of 2001, excluding special
items. Including special items, second-quarter operating profit grew 141.0
percent to $141.7 million from an adjusted $58.8 million in the same period last
year.
"As a result of slow, but steady improvement in the advertising market and our
robust circulation revenue growth, total revenues rose by 1.6 percent compared
with last year, with each of our operating groups contributing to the gain,"
said Russell T. Lewis, president and CEO. "NYTD, our digital division,
experienced strong advertising revenue growth, which helped it achieve its most
profitable quarter ever. In addition, the stringent cost measures we have taken
over the past year, as well as lower newsprint expense, contributed to the
Company's positive operating performance.
"Looking ahead, our performance for the balance of the year will depend on the
health of the advertising market. While we continue to see steady sequential
improvement in the rate of year-over-year advertising declines, there is no
certainty that this will continue. Accordingly, we are refining the range of our
full-year earnings to $1.90 to $2.00 per share, with the result dependent upon
the strength of the advertising recovery. For the third quarter, we expect
earnings per share to be in the range of $.34 to $.38."
Revenues
Total revenues for the Company increased 1.6 percent to $772.2 million in the
second quarter from $760.3 million in the second quarter of 2001. Circulation
revenues increased 12.7 percent and advertising revenues declined 1.4 percent in
the second quarter compared with the same period in 2001.
Costs
Total costs in the second quarter, excluding special items, increased 0.8
percent compared with the adjusted 2001 second-quarter amount. The Company's
newsprint expense declined 25.1 percent in the second quarter compared with the
second quarter of 2001. The Company's average cost per ton of newsprint
decreased 27.5 percent, which was partially offset by an increase in consumption
of 2.4 percent. Excluding special items and newsprint expense, total costs
increased 4.6 percent in the second quarter compared with the adjusted
second-quarter 2001 amount, primarily due to increased bonus accruals linked to
improved performance, higher benefits costs and an increase in third-party
printing costs related to The New York Times national expansion. For 2002, the
Company continues to expect an increase in total costs of 1 to 2 percent,
excluding work force reduction expenses and the effect of FAS 142.
Operating Profit and EBITDA
Operating profit in the second quarter increased 4.9 percent to $144.7 million
from an adjusted $137.9 million in the second quarter of 2001, excluding special
items. The increase in operating results was due to an increase in circulation
revenue, partially offset by a decrease in advertising revenue and an increase
in total costs. Including special items, second-quarter operating profit grew
141.0 percent to $141.7 million from an adjusted $58.8 million in the same
period last year.
EBITDA (earnings before interest, taxes, depreciation and amortization) in the
second quarter increased 2.9 percent to $180.3 million from $175.2 million in
the 2001 second quarter, excluding special items. Including special items,
EBITDA in the second quarter decreased 65.1 percent to $177.3 million from
$508.2 million in the same period of 2001.
Newspaper Group
Total Newspaper Group revenues increased 1.4 percent in the second quarter to
$718.9 million from $709.1 million in the second quarter of 2001. Total
Newspaper Group advertising revenues declined 2.1 percent to $464.5 million in
the second quarter from $474.3 million in the second quarter of 2001, mainly as
a result of lower advertising volume.
Circulation revenues grew 12.7 percent in the second quarter to $211.9 million
compared with $187.9 million in the second quarter of 2001, primarily a result
of higher subscription prices at The New York Times and The Boston Globe. For
2002, the Company now expects circulation revenue growth in the range of 6 to 8
percent, up from its earlier guidance of 5 to 7 percent.
Operating profit for the Newspaper Group increased 6.9 percent to $139.7 million
in the second quarter from an adjusted $130.7 million in the second quarter of
2001, excluding special items. This increase was primarily due to an increase in
circulation revenue and a decrease in newsprint expense, partially offset by a
decrease in advertising revenue.
Broadcast Group
In the second quarter, Broadcast Group revenues of $39.0 million slightly
exceeded revenues of $38.7 million in the same period last year. Operating
profit declined 7.6 percent to $13.0 million in the second quarter from an
adjusted $14.1 million in the second quarter of 2001, excluding special items,
primarily due to higher compensation and benefits costs as well as increased
expenses related to the recent implementation of digital transmission.
New York Times Digital
Revenues for NYTD increased 15.9 percent in the second quarter to $17.8 million
from $15.3 million in the 2001 second quarter. Revenues improved as a result of
stronger advertising, especially in the travel, retail, finance and
telecommunications categories. Overall classified advertising rose with
particular strength in real estate and autos.
For the fourth consecutive quarter, NYTD had an operating profit, which amounted
to $1.9 million in the second quarter compared with an operating loss of $1.1
million in the second quarter of 2001, excluding special items.
Joint Ventures
Operating results from joint ventures resulted in a loss of $2.3 million in the
second quarter compared with income of $0.8 million in the second quarter of
2001. This was primarily due to the impact of the Company's recent investments
in the Discovery Civilization Channel (DC), a digital cable television channel,
and New England Sports Ventures, LLC (NESV), which includes the Boston Red Sox,
Fenway Park and 80 percent of New England Sports Network. For 2002, the Company
expects results from joint ventures to be a loss of approximately $5.0 million
due to the impact of these recent investments, lower operating results at the
International Herald Tribune and lower paper prices at the mills in which the
Company has an equity investment. Joint venture results could be affected by the
final allocation of the purchase prices of DC and NESV among the fair value of
the assets acquired, net of the liabilities assumed.
Income Taxes
In the second quarter of 2002, the Company's effective income tax rate was 39.0
percent compared with an adjusted 33.8 percent in the second quarter of 2001.
The Company believes its effective tax rate in 2002 will be 39.0 percent
compared with an adjusted 37.5 percent in 2001.
Other Items: Interest Expense, Share Repurchase, Cash and Total Debt
Interest expense in the second quarter increased to $11.6 million from $10.4
million in the second quarter of 2001, mainly due to higher levels of debt
outstanding. For 2002, the Company expects interest expense to be in the range
of $48.0 to $53.0 million as a result of additional debt incurred to finance
recent investments.
The average number of shares outstanding for diluted earnings-per-share
computations was reduced by 6.1 million shares, or 3.8 percent, in the second
quarter compared with the second quarter of 2001, primarily from the Company's
share repurchase program.
During the second quarter, the Company spent $1.2 million on repurchases of its
Class A common stock, down from previous quarters. As a result of the Company's
recent investments in the DC and the NESV, the Company reduced its level of
share repurchases. Approximately $388.8 million remain from the Company's
current share repurchase authorizations as of June 30, 2002. Class A and Class B
common shares outstanding at the end of the quarter totaled 152.5 million
shares.
At the end of the second quarter, the Company's cash and cash equivalents were
$55.7 million and total debt was $914.6 million.
Conference Call Information
The Company's second-quarter conference call will be held on Tuesday, July 16,
at 10:00 a.m. Eastern Time. The live webcast will be accessible through the
Investors section of the Company's Web site, www.nytco.com, and a variety of
other services including CCBN's Individual Investor Center and CCBN's
StreetEvents for institutional investors.
To access the conference call, dial 706/679-5250 at least 10 minutes prior to
the scheduled start of the call. A replay of the conference call will be
archived and available online at www.nytco.com. There will also be a post-view
recording of the call available from 1:00 p.m. on July 16 to 5:00 p.m. on July
18. To access this replay, please call 800/642-1687 (in the U.S.) or
706/645-9291 (outside the U.S.). The access code is 4653327.
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 period ended December 30, 2001. 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 2001
revenues of $3.0 billion, publishes The New York Times, The Boston Globe and 16
other newspapers; owns eight network-affiliated television stations and two New
York radio stations; and has more than 40 Web sites, including NYTimes.com and
Boston.com. In 2002 the Company was ranked No. 1 in the publishing industry in
Fortune's list of America's Most Admired Companies. Among all 530 companies on
the list, the Company ranked No. 1 in quality of products/services and No. 1 in
social responsibility. 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 INCOME
Statements of Income as reported are prepared in accordance
with accounting principles generally accepted in the
United States of America (GAAP).
(Dollars and shares in thousands, except per share data)
----------------------------------
Second Quarter
----------------------------------
2002 2001
----- -----
Revenues
Advertising $ 512,947 $ 520,218
Circulation 211,899 187,946
Other 47,365 52,118
------------ ------------
Total 772,211 760,282
Costs and expenses (a) (b) 630,483 712,071
------------ ------------
Operating profit 141,728 48,211
Net (loss)/income
from joint ventures (b) (2,262) 765
Interest expense - net 11,600 10,399
Income from non-compete agreement 1,250 1,250
------------ ------------
Income from continuing operations
before income taxes 129,116 39,827
Income taxes 50,355 15,611
------------ ------------
Income from continuing operations 78,761 24,216
------------ ------------
Income from operations of discontinued
Magazine Group, net of
income taxes (c) - -
Gain on Disposal of Magazine Group,
net of income taxes (c) - 241,258
------------ ------------
Discontinued operations, net
of income taxes - 241,258
------------ ------------
Net Income (b) $ 78,761 $ 265,474
============ ============
Average Number of Common Shares:
Basic 151,789 158,758
Diluted 155,555 161,687
Basic Earnings Per Share: (d)
Income from continuing operations $ 0.52 $ 0.15
Discontinued operations,
net of income taxes - 1.52
------------ ------------
Net Income $ 0.52 $ 1.67
============ ============
Diluted Earnings Per Share: (d)
Income from continuing operations $ 0.51 $ 0.15
Discontinued operations,
net of income taxes - 1.49
------------ ------------
Net Income $ 0.51 $ 1.64
============ ============
Dividends per share $ 0.135 $ 0.125
============ ============
Adjusted Results: (b)
As reported net income $ 78,761 $ 265,474
Goodwill and certain other intangibles
amortization - 9,231
------------ ------------
Adjusted net income $ 78,761 $ 274,705
============ ============
Adjusted basic earnings per share (d) $ 0.52 $ 1.73
============ ============
Adjusted diluted earnings per share (d) $ 0.51 $ 1.70
============ ============
----------------------------------
Six Months
----------------------------------
2002 2001
----- -----
Revenues
Advertising $ 1,001,594 $ 1,064,509
Circulation 413,154 372,959
Other 94,560 100,967
------------ ------------
Total 1,509,308 1,538,435
Costs and expenses (a)(b) 1,269,049 1,375,740
------------ ------------
Operating profit 240,259 162,695
Net (loss)/income from
joint ventures (b) (2,193) 1,657
Interest expense - net 22,155 25,190
Income from non-compete agreement 2,500 2,500
------------ ------------
Income from continuing operations
before income taxes 218,411 141,662
Income taxes 85,180 57,364
------------ ------------
Income from continuing operations 133,231 84,298
------------ ------------
Income from operations
of discontinued
Magazine Group, net
of income taxes (c) - 1,192
Gain on Disposal of Magazine Group,
net of income taxes (c) - 241,258
------------ ------------
Discontinued operations,
net of income taxes - 242,450
------------ ------------
Net Income (b) $ 133,231 $ 326,748
============ ============
Average Number of Common Shares:
Basic 151,446 160,323
Diluted 154,883 163,408
Basic Earnings Per Share: (d)
Income from continuing operations $ 0.88 $ 0.53
Discontinued operations, net
of income taxes - 1.51
------------ ------------
Net Income $ 0.88 $ 2.04
============ ============
Diluted Earnings Per Share: (d)
Income from continuing operations $ 0.86 $ 0.52
Discontinued operations,
net of income taxes - 1.48
------------ ------------
Net Income $ 0.86 $ 2.00
============ ============
Dividends per share $ 0.260 $ 0.240
============ ============
Adjusted Results: (b)
As reported net income $ 133,231 $ 326,748
Goodwill and certain other intangibles
amortization - 18,465
------------ ------------
Adjusted net income $ 133,231 $ 345,213
============ ============
Adjusted basic earnings
per share (d) $ 0.88 $ 2.15
============ ============
Adjusted diluted earnings
per share (d) $ 0.86 $ 2.11
============ ============
See Footnotes Page for additional information.
THE NEW YORK TIMES COMPANY
SEGMENT AND STATISTICAL INFORMATION
Revenues and Operating Profit (Loss) are prepared
in accordance with GAAP.
(Dollars and Copies in Thousands)
----------------------------------
Second Quarter 2002
----------------------------------
Operating
Revenues Profit EBITDA (f)
(Loss)(a)
--------- -------- ------
Newspapers $ 718,880 $ 136,806 $ 168,409
Broadcast 38,977 13,034 14,977
New York Times Digital 17,772 1,918 3,963
Intersegment
eliminations (e) (3,418) - -
Unallocated Corporate
expenses - (10,030) (7,752)
Net (loss)/income from
joint ventures - - (2,262)
----------- ---------- -----------
Total $ 772,211 $ 141,728 $ 177,335
=========== ========== ===========
----------------------------------
Six Months Ended June 30, 2002
----------------------------------
Operating
Revenues Profit EBITDA (f)
(Loss)(a)
--------- -------- ------
Newspapers $ 1,410,348 $ 239,631 $ 303,579
Broadcast 70,936 19,442 23,331
New York Times Digital 33,934 2,099 6,108
Intersegment
eliminations (e) (5,910) - -
Unallocated Corporate
expenses - (20,913) (16,320)
Net (loss)/income from
joint ventures - - (2,193)
----------- ---------- -----------
Total $ 1,509,308 $ 240,259 $ 314,505
=========== ========== ===========
----------------------------------
Second Quarter 2001
----------------------------------
Operating
Revenues Profit EBITDA (f)
(Loss)(a)(b)
--------- -------- ---------
Newspapers $ 709,074 $ 46,901 $ 86,845
Broadcast 38,692 11,953 16,023
New York Times Digital 15,336 (1,793) 68
Intersegment
eliminations (e) (2,820) - -
Unallocated Corporate expenses - (8,850) (7,666)
Net (loss)/income from
joint ventures - - 853
Discontinued Operations - - 412,029
----------- ---------- -----------
Total $ 760,282 $ 48,211 $ 508,152
=========== ========== ===========
----------------------------------
Six Months Ended July 1, 2001
----------------------------------
Operating
Revenues Profit EBITDA (f)
(Loss)(a)(b)
--------- -------- ------
Newspapers $ 1,443,391 $ 173,640 $ 254,448
Broadcast 71,138 18,211 26,361
New York Times Digital 29,392 (9,479) (5,935)
Intersegment
eliminations (e) (5,486) - -
Unallocated Corporate expenses - (19,677) (15,504)
Net (loss)/income from
joint ventures - - 1,833
Discontinued Operations - - 414,351
----------- ---------- -----------
Total $ 1,538,435 $ 162,695 $ 675,554
=========== ========== ===========
----------------------------------
Second Quarter 2002
----------------------------------
Weekday/ % Change Sunday % Change
Daily vs. 2001 vs. 2001
----------------------------------------
Average Net Paid Circulation
The New York Times 1,129.1 0.8% 1,680.2 -0.3%
New England Newspaper Group 566.5 -1.5% 833.8 0.8%
Regional Newspapers 602.2 -1.6% 659.6 -1.2%
----------------------------------
Six Months Ended June 30, 2002
----------------------------------
Weekday/ % Change Sunday % Change
Daily vs. 2001 vs. 2001
----------------------------------------
Average Net Paid Circulation
The New York Times 1,146.6 1.8% 1,695.4 0.2%
New England Newspaper Group 569.4 -0.1% 832.7 0.5%
Regional Newspapers 628.1 -2.3% 689.8 -2.0%
See Footnotes Page for additional information.
THE NEW YORK TIMES COMPANY
NEWSPAPER GROUP REVENUES BY DIVISION
Revenues are prepared in accordance with GAAP.
(Dollars in Thousands)
----------------
2002
---------------------
Qtr 1 % Change
-------- --------
The New York Times
Advertising $ 266,034 -12.4%
Circulation 135,201 11.2%
Other (g) 30,894 -8.5%
---------
Total $ 432,129 -5.9%
---------
New England Newspaper Group
Advertising $ 103,577 -14.0%
Circulation 43,018 8.4%
Other (g) 6,908 6.1%
---------
Total $ 153,503 -7.9%
---------
Regional Newspapers
Advertising $ 79,105 -2.4%
Circulation 23,036 -3.2%
Other (g) 3,695 -0.1%
---------
Total $ 105,836 -2.5%
---------
Total Newspaper Group
Advertising $ 448,716 -11.2%
Circulation 201,255 8.8%
Other (g) 41,497 -5.6%
---------
Total $ 691,468 -5.8%
=========
----------------
2002
---------------------
Qtr 2 % Change
-------- --------
The New York Times
Advertising $ 269,773 -3.0%
Circulation 146,600 16.3%
Other (g) 32,386 -11.3%
---------
Total $ 448,759 1.8%
---------
New England Newspaper Group
Advertising $ 113,052 -1.5%
Circulation 43,697 9.3%
Other (g) 6,660 -4.0%
---------
Total $ 163,409 1.1%
---------
Regional Newspapers
Advertising $ 81,649 0.3%
Circulation 21,602 -1.2%
Other (g) 3,461 2.9%
---------
Total $ 106,712 0.1%
---------
Total Newspaper Group
Advertising $ 464,474 -2.1%
Circulation 211,899 12.7%
Other (g) 42,507 -9.2%
---------
Total $ 718,880 1.4%
=========
----------------
2002
---------------------
Six Months % Change
---------- --------
The New York Times
Advertising $ 535,807 -7.9%
Circulation 281,801 13.8%
Other (g) 63,280 -9.9%
---------
Total $ 880,888 -2.1%
---------
New England Newspaper Group
Advertising $ 216,629 -7.9%
Circulation 86,715 8.8%
Other (g) 13,568 0.9%
---------
Total $ 316,912 -3.5%
---------
Regional Newspapers
Advertising $ 160,754 -1.0%
Circulation 44,638 -2.2%
Other (g) 7,156 1.3%
---------
Total $ 212,548 -1.2%
---------
Total Newspaper Group
Advertising $ 913,190 -6.8%
Circulation 413,154 10.8%
Other (g) 84,004 -7.5%
---------
Total $ 1,410,348 -2.3%
=========
See Footnotes Page for additional information.
THE NEW YORK TIMES COMPANY
PRO FORMA SEGMENT INFORMATION
Pro forma segment information excludes the effect of special items
and adjusts for FAS 142. FAS 142 eliminated the amortization of
goodwill and certain other intangibles at the beginning of 2002. For
comparability purposes, 2001 is presented below as if FAS 142 had been
adopted at the beginning of 2001.
(Dollars in Thousands)
-----------------------------------------
Second Quarter 2002
-----------------------------------------
Operating
Revenues Profit (Loss) EBITDA (f)
--------- ------------- ---------
Newspapers $ 718,880 $ 139,672 $ 171,275
Broadcast 38,977 13,034 14,977
New York Times Digital 17,772 1,918 3,963
Intersegment eliminations (e) (3,418) - -
Unallocated Corporate
expenses - (9,946) (7,668)
Net (loss)/income from
joint ventures - - (2,262)
---------- ----------- -----------
Total $ 772,211 $ 144,678 $ 180,285
========== =========== ===========
-----------------------------------------
Six Months Ended June 30, 2002
-----------------------------------------
Operating
Revenues Profit (Loss) EBITDA (f)
--------- ------------- ---------
Newspapers $ 1,410,348 $ 252,096 $ 316,044
Broadcast 70,936 19,481 23,370
New York Times Digital 33,934 2,099 6,108
Intersegment
eliminations (e) (5,910) - -
Unallocated Corporate
expenses - (20,829) (16,236)
Net (loss)/income from
joint ventures - - (2,193)
---------- ----------- -----------
Total $ 1,509,308 $ 252,847 $ 327,093
========== =========== ===========
-----------------------------------------
Second Quarter 2001
-----------------------------------------
Operating
Revenues Profit (Loss) EBITDA (f)
--------- ------------- ---------
Newspapers $ 709,074 $ 130,699 $ 162,061
Broadcast 38,692 14,113 16,176
New York Times Digital 15,336 (1,063) 798
Intersegment
eliminations (e) (2,820) - -
Unallocated Corporate
expenses - (5,849) (4,665)
Net (loss)/income from
joint ventures - - 853
Discontinued Operations - - -
---------- ----------- -----------
Total $ 760,282 $ 137,900 $ 175,223
========== =========== ===========
-----------------------------------------
Six Months Ended July 1, 2001
-----------------------------------------
Operating
Revenues Profit (Loss) EBITDA (f)
--------- ------------- ---------
Newspapers $ 1,443,391 $ 266,020 $ 329,664
Broadcast 71,138 22,378 26,514
New York Times Digital 29,392 (8,749) (5,205)
Intersegment
eliminations (e) (5,486) - -
Unallocated Corporate
expenses - (16,676) (12,503)
Net (loss)/income from
joint ventures - - 1,833
Discontinued Operations - - 2,322
---------- ----------- -----------
Total $ 1,538,435 $ 262,973 $ 342,625
========== =========== ===========
See Footnotes Page for additional information.
THE NEW YORK TIMES COMPANY
PRO FORMA RESULTS
Pro forma results exclude the effect of special items and adjust
for FAS 142. FAS 142 eliminated the amortization of goodwill and
certain other intangibles at the beginning of 2002. For comparability
purposes, 2001 is presented below as if FAS 142 had been adopted
at the beginning of 2001.
(Dollars in thousands, except per share data)
-------------------------------------
Second Quarter
-------------------------------------
2002 2001
---- ----
As reported Operating Profit $ 141,728 $ 48,211
Special Items:
Work force reduction expenses 2,950 79,100
Other Special Factors:
FAS 142 amortization adjustment - 10,589
---------- ----------
Adjusted Operating Profit $ 144,678 $ 137,900
========== ==========
-------------------------------------
Six Months
-------------------------------------
2002 2001
---- ----
As reported Operating Profit $ 240,259 $ 162,695
Special Items:
Work force reduction expenses 12,588 79,100
Other Special Factors:
FAS 142 amortization adjustment - 21,178
---------- ----------
Adjusted Operating Profit $ 252,847 $ 262,973
========== ==========
-------------------------------------
Second Quarter
-------------------------------------
2002 2001
---- ----
As reported Net Income $ 78,761 $ 265,474
Special Items (net of income taxes):
Gain on Disposal of Magazine Group - (241,258)
Work force reduction expenses 1,799 47,065
Amortization of non-compete
deferred revenue (762) (750)
Other Special Factors (net
of income taxes):
FAS 142 amortization adjustment - 9,231
---------- ----------
Adjusted Net Income $ 79,798 $ 79,762
========== ==========
-------------------------------------
Six Months
-------------------------------------
2002 2001
---- ----
As reported Net Income $ 133,231 $ 326,748
Special Items (net of income taxes):
Gain on Disposal of Magazine Group - (241,258)
Work force reduction expenses 7,678 47,065
Amortization of non-compete
deferred revenue (1,524) (1,487)
Other Special Factors
(net of income taxes):
FAS 142 amortization adjustment - 18,465
---------- ----------
Adjusted Net Income $ 139,385 $ 149,533
========== ==========
-------------------------------------
Second Quarter
-------------------------------------
2002 2001
---- ----
As reported Basic Earnings per Share $ 0.52 $ 1.67
Special Items:
Gain on Disposal of Magazine Group - (1.52)
Work force reduction expenses 0.01 0.29
Amortization of non-compete
deferred revenue - -
Other Special Factors:
FAS 142 amortization adjustment - 0.06
---------- ----------
Adjusted Basic Earnings per Share $ 0.53 $ 0.50
========== ==========
-------------------------------------
Six Months
-------------------------------------
2002 2001
---- ----
As reported Basic Earnings per Share $ 0.88 $ 2.04
Special Items:
Gain on Disposal of Magazine Group - (1.50)
Work force reduction expenses 0.05 0.29
Amortization of non-compete
deferred revenue (0.01) (0.01)
Other Special Factors:
FAS 142 amortization adjustment - 0.11
---------- ----------
Adjusted Basic Earnings per Share $ 0.92 $ 0.93
========== ==========
-------------------------------------
Second Quarter
-------------------------------------
2002 2001
---- ----
As reported Diluted Earnings per Share $ 0.51 $ 1.64
Special Items:
Gain on Disposal of Magazine Group - (1.49)
Work force reduction expenses 0.01 0.29
Amortization of non-compete
deferred revenue - -
Other Special Factors:
FAS 142 amortization adjustment - 0.06
---------- ----------
Adjusted Diluted Earnings per Share $ 0.52 $ 0.50
========== ==========
-------------------------------------
Six Months
-------------------------------------
2002 2001
---- ----
As reported Diluted Earnings per Share $ 0.86 $ 2.00
Special Items:
Gain on Disposal of Magazine Group - (1.47)
Work force reduction expenses 0.05 0.29
Amortization of non-compete
deferred revenue (0.01) (0.01)
Other Special Factors:
FAS 142 amortization adjustment - 0.11
---------- ----------
Adjusted Diluted Earnings per Share $ 0.90 $ 0.92
========== ==========
See Footnotes Page for additional information.
THE NEW YORK TIMES COMPANY
FOOTNOTES
(a) Work force reduction expenses by business segment were:
Second Quarter Six Months
-----------------------------------------------------
(In millions) (In millions)
-----------------------------------------------------
2002 2001 2002 2001
-------- -------- -------- --------
Newspaper Group $ 2.9 $ 75.2 $ 12.5 $ 75.2
Broadcast Group - 0.2 - 0.2
NYTD - 0.7 - 0.7
Corporate 0.1 3.0 0.1 3.0
---------- ---------- ---------- ----------
$ 3.0 $ 79.1 $ 12.6 $ 79.1
========== ========== ========== ==========
(b) At the beginning of the Company's 2002 fiscal year, the
Company adopted Financial Accounting Standards No. 142
"Goodwill and Other Intangible Assets." FAS 142 eliminated the
amortization of goodwill and certain other intangibles and
requires an annual impairment test of their carrying value.
The provisions of FAS 142 are effective for periods after
adoption and retroactive application is not permitted. The
historical results of periods prior to 2002 do not reflect the
effect of FAS 142 and, accordingly, the second quarter of 2001
includes amortization expense of $10.6 million in costs and
expenses and $0.1 million in income from joint ventures ($9.2
million after tax or $.06 per share, collectively). The first
six months of 2001 includes amortization expense of $21.2
million in costs and expenses and $0.2 million in income from
joint ventures ($18.5 million after tax or $.11 per share,
collectively).
(c) The Magazine Group was sold on April 2, 2001. The results of
operations of the Magazine Group are reported as discontinued
operations in 2001. Revenues, operating profit and EBITDA for
the Magazine Group were $26.5 million, $2.0 million and $2.3
million in 2001, respectively.
(d) Per share amounts for the second-quarter and six-month periods
have been computed using the weighted average number of common
shares outstanding in the respective periods. Therefore, the
sum of the per share amounts for the first and second quarter
periods do not necessarily equal the year-to-date amounts.
(e) Intersegment eliminations primarily include license fees
between NYTD and other segments.
(f) Total depreciation and amortization expense was $37.9 million
in the second quarter of 2002 and $76.4 million for the
first six months of 2002. In the second quarter of 2001, total
depreciation and amortization expense was $47.1 million
(including $10.7 million of amortization expense that would no
longer be amortized under FAS 142) and $97.2 million
(including $21.4 million of amortization expense that would no
longer be amortized under FAS 142) for the first six months of
2001.
(g) Other revenue consists primarily of revenue from wholesale
delivery operations and license fees.
This press release can be downloaded from www.nytco.com
CONTACT: The New York Times Company
Catherine Mathis, 212/556-1981
mathis@nytimes.com
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