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THE NEW YORK TIMES COMPANY REPORTS FIRST QUARTER RESULTS

    NEW YORK, April 13 /PRNewswire/ -- The New York Times Company (AMEX: NYT.A) today reported 1993 first-quarter net income of $10.9 million, or $.14 per share, compared with a net loss of $20.0 million, or $.26 per share, in 1992. After adjustments are made for accounting changes and special items, the earnings per share are $.16 in each year's first quarter.
    The 1993 first quarter was negatively impacted by $3.7 million pre-tax ($.02 per share) by the snowstorm of March 12 that affected delivery of The New York Times, which in turn required certain advertising and circulation rate adjustments.
    First quarter 1992 earnings were reduced by $33.4 million ($.43 per share) as a result of the adoption of mandated non-cash accounting changes related to income taxes, postretirement benefits and Postemployment benefits. That same quarter also included gains totaling $3.1 million pre-tax ($.02 per share) from the sale of assets and an operating loss of $1.7 million pre-tax ($.01 per share) at The Gwinnett (Georgia) Daily News, which was closed in September of 1992.
    Consolidated revenues for the 1993 quarter were $454.5 million compared with $435.9 million for the first quarter of 1992.
    A summary of the Company's business segments follows:
    Newspaper Group: Operating profit for the Group that consists of The New York Times, 31 regional newspapers, a wholesale newspaper distribution business in the New York City metropolitan area and a 50 percent interest in the International Herald Tribune declined to $28.6 million from $32.7 million in the first quarter of 1992 on revenues of $339.4 million and $319.7 million respectively. Excluding the effect of the March 1993 snowstorm and a 1992 gain of $1.5 million on the sale of real estate, operating profit for the group would have been $32.3 million in 1993 compared with $31.2 million in 1992. The favorable operating performance is due to increased circulation revenues, higher advertising rates and cost controls throughout the Group. Cost savings related to the successful start-up of The Times's new production and distribution facility in Edison, N.J., also helped to offset increased depreciation and softness in advertising linage at The Times. The increase in Group revenues was principally due to the June 1992 acquisition of a wholesale distribution business.
    At The Times, advertising linage for the first quarter of 1993 was 17.7 million lines, a decline of 4.8 percent from the 1992 first quarter. In day-for-day comparisons, March was down 2.8 percent from March 1992 and the quarter's linage was down 4.9 percent from the first quarter of 1992, reflecting continuing weakness in the New York region's economy.
    Average circulation for The Times for the six months ended March 31, 1993, as reported to the Audit Bureau of Circulations (ABC), reached record highs with weekdays at 1,229,100 copies, up 32,900 copies over 1992, and Sundays at 1,812,500 copies, up 39,500 copies.
    At the 31 regional newspapers that were in the Group for the entire 1993 and 1992 periods, advertising inches for the first quarter increased 6.2 percent, due primarily to an increase in advertising inserts. For the six months ended March 31, 1993, circulation for the same 31 newspapers as reported to ABC reached record highs: 904,200 copies on weekdays, up 16,600 copies and 907,600 copies on Sunday, up 18,300 copies. Circulation was 76,400 copies for the nondailies, up 500 copies.
    Magazine Group: First-quarter operating profit for 1993 was $3.2 million, compared with $1.7 million in 1992 on revenues of $95.0 million and $97.8 million respectively. Exclusive of the amortization costs associated with the acquisitions of McCall's and Golf World (U.S.), in which the transactions were structured to maximize cash flow, the Group's operating profit was $6.5 million in 1993 compared with $5.6 million in the 1992 quarter. Despite one fewer issue of Family Circle in the 1993 quarter, the Group's operating profit was up due to higher advertising rates and the timing of promotion expenses.
    Broadcasting/Information Services Group: Operating profit rose to $3.6 million in the 1993 first quarter from $2.8 million in 1992 on revenues of $20.1 million and $18.5 million respectively. Higher local advertising revenues at the Company's television stations accounted for the improved results.
    Unallocated Corporate Expenses: Unallocated corporate expenses rose to $4.4 million from $2.3 million in the first quarter of 1992 due principally to a 1992 pre-tax gain of $1.6 million on the sale of a corporate asset.
    Forest Products Group: Equity in earnings (an after-tax amount) for the first quarter of 1993 was a loss of $2.1 million, compared with a loss of $1.6 million in the 1992 first quarter. Softness in the newsprint and magazine paper industry due to oversupply is continuing to depress prices.
    Interest Expense Net: Interest expense, net of interest income, declined to $5.2 million in the first quarter of 1993 from $7.0 million last year due principally to lower levels of borrowing.
    Income Taxes: The effective income tax rate for the first quarter of 1993 was 49.6 percent compared with 42.6 percent in the 1992 quarter. The higher rate is due principally to a larger portion of pre-tax income coming from states with higher tax rates.
                            THE NEW YORK TIMES COMPANY
                Condensed Consolidated Statements of Operations
            (Dollars and shares in thousands except per share data)
                                              First Quarter
                                             1993          1992
    Revenues                              $454,482(A)    $435,897
    Costs and expenses                     423,409        401,044
    Operating profit                        31,073(A)      34,853(B)(C)
    Interest expense, net of interest income 5,220          6,980
     Loss on disposition and operations of
      Gwinnett Daily News                       --          1,680
     Income before income taxes and equity in
      operations of forest products group   25,853         26,193
     Income taxes                           12,823         11,158
     Income before equity in operations of
      forest products group                 13,030         15,035
     Equity in operations of
      forest products group                 (2,142)        (1,619)
     Income before net cumulative effect
      of accounting changes                 10,888         13,416
    Net cumulative effect of
      accounting changes                        --        (33,437)(D)
    Net income (loss)                      $10,888       $(20,021)
    Average number of common
     shares outstanding                     79,734         78,442
    Per share of common stock
      Before net cumulative effect of
        accounting changes                    $.14           $.17
      Net income (loss)                        .14           (.26)
      Cash dividends                           .14            .14
    (A) -- Includes $3.7 million pre-tax ($.02 per share) in advertising and circulation rate adjustments at The New York Times newspaper due to the March snowstorm.
    (B) -- Includes a $1.5 million pre-tax ($.01 per share) gain on the sale of real estate.
    (C) -- Includes a $1.6 million pre-tax ($.01 per share) gain on the sale of a corporate asset.
    (D) -- Reflects adoption ($.43 per share) of accounting changes for income taxes, postretirement and postemployment benefits.
                   THE NEW YORK TIMES COMPANY
                     Segment Information
                    (Dollars in thousands)
                                                  First Quarter
                                                1993        1992
    Revenues
    Newspapers                               $339,421(A) $319,686(B)
    Magazines                                  94,955      97,756
    Broadcasting/Information Services          20,106      18,455
        Total                                $454,482    $435,897
    Operating Profit (Loss)
    Newspapers                                $28,617(A)  $32,696(B)
    Magazines                                   3,226       1,685
    Broadcasting/Information Services           3,632       2,758
    Unallocated Corporate Expenses             (4,402)     (2,286)(C)
       Total                                   31,073      34,853
    Interest expense, net of interest income    5,220       6,980
    Loss on disposition and operations of
     Gwinnett Daily News                           --       1,680
    Income before income taxes and equity in
     operations of forest products group       25,853      26,193
    Income taxes                               12,823      11,158
    Income before equity in operations of
     forest products group                     13,030      15,035
    Equity in operations of
     forest products group                     (2,142)     (1,619)
    Net income before net cumulative effect
     of accounting changes                    $10,888     $13,416
    (A) -- Includes $3.7 million pre-tax in advertising and circulation rate adjustments at The New York Times newspaper due to the March snowstorm.
    (B) -- Includes a $1.5 million pre-tax gain on the sale of real estate.
    (C) -- Includes a $1.6 million pre-tax gain on the sale of a corporate asset.
      1992 Quarterly Earnings As Restated And Excluding Special Items
                (Dollars in millions, except per share data)
                 First quarter        Second quarter      Third quarter
                          Excluding         Excluding          Excluding
                    As      special    As     special   As       special
                  restated   items   restated  items   restated    items
      REVENUES
     Newspapers     $319.7   $318.2   $323.9   $326.9   $310.4   $310.4
     Magazines        97.7     97.7     99.0     99.0     95.8     95.8
     Broadcasting/
      Information
      Services        18.5     18.5     20.3     20.3     20.0     20.0
       Total        $435.9   $434.4   $443.2   $446.2   $426.2   $426.2
      Operating profit
        (loss)
     Newspapers      $32.7    $31.2    $30.8    $41.8    $11.5    $14.3
     Magazines         1.7      1.7      5.2      5.2      0.6      0.6
     Broadcasting/
      Information
      Services         2.7      2.7      4.5      4.5      3.5      3.5
     Unallocated
      Corporate
      Expenses        (2.3)    (3.9)    (3.8)    (3.8)    (4.2)    (4.2)
       Total          34.8     31.7     36.7     47.7     11.4     14.2
     Interest expense,
       net             7.0      7.0      6.7      6.7      6.4      6.4
     Total            27.8     24.7     30.0     41.0      5.0      7.8
     Loss on disposition
      and operations
      of Gwinnett
      Daily News       1.6       --      1.1       --     51.1       --
     Income (loss)
      before taxes
      and equity      26.2     24.7     28.9     41.0    (46.1)     7.8
     Income taxes     11.2     10.5     12.4     17.6    (13.2)     3.7
     Income (loss)
      before equity   15.0     14.2     16.5     23.4    (32.9)     4.1
     Equity in forest
      products group  (1.6)    (1.6)    (2.5)    (2.5)    (2.1)    (2.1)
     Income (loss)
      before net
      cumulative
      effect of
      accounting
      changes         13.4     12.6     14.0     20.9    (35.0)     2.0
     Net cumulative
     effect of
     accounting
     changes         (33.4)      --       --       --       --      --
    Net income
     (loss)          $(20.0)  $12.6    $14.0    $20.9   ($35.0)    $2.0
     Per share of
     common stock
     Before net
      cumulative
      effect of
      accounting
      changes         $0.17   $0.16     $0.18   $0.27   ($0.44)   $0.03
     Net cumulative
     effect of
     accounting
      changes         (0.43)     --       --       --      --        --
     Net income
    (loss)           ($0.26)  $0.16    $0.18    $0.27  ($0.44)    $0.03
                                   Fourth quarter        Year
                                       Excluding           Excluding
                                 As      special     As      special
                              restated     items   restated    items
     Newspapers                 $352.9    $352.9   $1,306.9 $1,308.0
     Magazines                    93.6      93.6      386.1    386.1
     Broadcasting/Information
     Services                     21.7      21.7       80.5     80.5
       Total                     468.2     468.2    1,773.5  1,775.0
      Operating profit (loss)
     Newspapers                   $6.2     $41.8      $81.2   $129.1
     Magazines                     2.4       2.4        9.9      9.9
     Broadcasting/Information
      Services                     4.1       4.1       14.8     14.8
     Unallocated Corporate
      Expenses                    (7.2)     (7.2)     (17.5)   (19.1)
       Total                       5.5      41.1       88.4    134.7
     Interest expense, net         6.0       6.0       26.1     26.1
     Total                        (0.5)     35.1       62.3    108.6
     Loss on disposition and
      operations of
      Gwinnett Daily News           --        --       53.8      --
     Income (loss) before
      taxes and equity            (0.5)     35.1        8.5    108.6
     Income taxes                  0.7      16.6       11.1     48.4
     Income (loss) before equity  (1.2)     18.5       (2.6)    60.2
     Equity in forest
      products group              (2.5)     (2.5)      (8.7)    (8.7)
     Income (loss) before net
       cumulative effect
       of accounting changes      (3.7)     16.0      (11.3)    51.5
     Net cumulative effect of
       accounting changes           --        --      (33.4)       --
    Net income (loss)            ($3.7)    $16.0     ($44.7)    $51.5
     Per share of common stock
     Before net cumulative effect
     of accounting changes       ($0.05)   $0.20     ($0.14)   ($0.66)
     Net cumulative effect
      of accounting changes          --       --      (0.43)       --
     Net income (loss)           ($0.05)   $0.20     ($0.57)     $0.66
    Special items impacted 1992 earnings as follows:
    -- $33.4 million after-tax ($.43 per share) resulting from the net cumulative effect of adopting accounting changes for income taxes, postretirement and postemployment benefits
    -- $3.1 million pre-tax ($.02 per share) in the first quarter resulting from gains on the sale of assets
    -- $53.8 million pre-tax loss ($.47 per share) due to the closing of The Gwinnett (Ga.) Daily News, the sale of its residual assets and its 1992 operations
    -- $11.0 million pre-tax ($.08 per share) in the second quarter due to labor disruptions at The New York Times newspaper
    -- $2.8 million pre-tax ($.02 per share) in the third quarter and $7.6 million pre-tax ($.05 per share) in the fourth quarter for training and start-up costs related to The New York Times's new production and distribution facility in Edison.
    -- $28.0 million pre-tax ($.20 per share) in the fourth quarter for voluntary termination benefits programs at The New York Times newspaper
                           THE NEW YORK TIMES COMPANY
                             1993 Advertising Volume
                           March & First Quarter (YTD)
    Sundays:  March: 1993-4 1992-5   3 Months: 1993-13 1992-13
                        The New York Times
                       (lines in thousands)
                         March            3 Months (YTD)
                      1993    %Change      1993    %Change
    Retail          3,135.8   -10.9      8,858.0    -2.1
    National(A)     1,925.5    -8.3      5,229.5    -5.9
    Classified      1,178.2   -19.9      3,567.7    -9.6
    Total           6,239.5   -12.0     17,655.2    -4.8
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

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