New York Times Company Reports 3rd-Quarter Results
The New York Times Company announced today 2009 third-quarter results.
Company Supplied -- Graphic Arts Online, October 22, 2009
NEW YORK--The New York Times Company announced today 2009 third-quarter results.
- Operating profit excluding depreciation, amortization, severance and the special items discussed below grew 30.2 percent to $80.6 million in the third quarter of 2009 compared with $61.9 million in the third quarter last year. On a GAAP basis, the Company had an operating loss of $25.4 million compared with $150.4 million in the third quarter of 2008.
- Operating costs excluding depreciation, amortization and severance declined 21.6 percent in the third quarter of 2009 versus the third quarter last year. On a GAAP basis, the Company's operating costs declined 22.4 percent in the third quarter of 2009 versus the third quarter of last year. The Company expects to save approximately $475 million in operating costs in 2009 as a result of reductions in nearly all major expense categories.
- Earnings per share from continuing operations excluding severance and special items were $.16 per share in the third quarter of 2009 compared with $.05 per share in the same period last year. On a GAAP basis, the Company had a loss per share from continuing operations of $.25 per share in the third quarter of 2009 compared with $.80 per share in the third quarter of 2008.
- The Company has reduced its debt by over $140 million from its balance at the end of 2008. As of the end of the quarter, the amount outstanding under the Company's $400 million revolving credit facility was approximately $105 million.
"Our third-quarter results reflect the positive benefits of the sustained actions we have been aggressively pursuing to reposition our businesses for the evolving future of the media industry," said Janet Robinson, president and CEO.
"Principal among those actions is:
- Continuing to secure strong performance on costs;
- Growing our circulation revenues by 6.7 percent, which demonstrates continuing steady demand for our products, as well as the high value those products command even as the content marketplace becomes increasingly digital;
- Restructuring debt with a focus on long-term stability; and
- Managing and rebalancing our asset portfolio to strengthen our core operations.
"Strong cost control remained a leading contributor to improved operating performance in the quarter. We continued to aggressively reduce our expenses, and the actions we have taken over the past quarters are evidenced in an approximately 22 percent decline in operating costs. With our many initiatives to operate more efficiently and effectively across the Company, we expect our cost performance to remain strong and we are on course to achieve approximately $475 million in savings this year.
"Looking ahead, visibility remains limited for advertising in the fourth quarter. But as is the case across the media sector, we have seen encouraging signs of improvement in the overall economy and in discussions with our advertisers. Early in the fourth quarter, print advertising trends, in comparison to the third quarter, have improved modestly, while digital advertising trends are improving more significantly.
"Earlier this month, we completed the sale of WQXR-FM, our New York City classical radio station, for gross proceeds of $45 million. The proceeds from this transaction were used to further reduce our outstanding debt balance. We are also moving ahead with the potential sale of our interest in New England Sports Ventures, which includes the Boston Red Sox and New England Sports Network, a highly rated regional cable channel.
"As we continue to review and rebalance our portfolio, we are also encouraged by the continued strong performance of the About Group, whose third-quarter operating profit rose 27.3 percent to $13.7 million."
Comparisons
The operations of City & Suburban (C & S), the Company's retail and newsstand distribution subsidiary, which closed in early January 2009, are included for the entire third quarter of 2008. The effect on the Company's 2009 third-quarter results was a decrease in other revenues of approximately $19 million, circulation revenues of approximately $2 million and operating costs of approximately $31 million.
