NYT 10.22.2013 8-K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
Date of Report (Date of earliest event reported): October 25, 2013
 
 
The New York Times Company
(Exact name of registrant as specified in its charter)
 
New York
 
1-5837
 
13-1102020
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
 
620 Eighth Avenue, New York, New York
 
10018
(Address of principal executive offices)
 
(Zip Code)
 
 
Registrant’s telephone number, including area code:  (212) 556-1234
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 8.01. Other Events

As previously announced, on October 24, 2013, The New York Times Company (the “Company”) completed the sale of the New England Media Group (“NEMG”), consisting of The Boston Globe, BostonGlobe.com, Boston.com, Worcester Telegram & Gazette, Telegram.com and related properties.
Under generally accepted accounting principles, this transaction meets the criteria for discontinued operations. Accordingly, the Company is required to reclassify prior period financial information to reflect NEMG as a discontinued operation and include such reclassified prior period financial information in the financial statements to be filed by the Company subsequently on Forms 10-Q and 10-K. The Company is furnishing with this Report the following supplemental unaudited consolidated financial information for each of the 2013 and 2012 quarterly periods noted below and for the full fiscal years 2012 and 2011 reflecting such reclassification of NEMG as a discontinued operation.

(In thousands, except per share data)
 
2013 by quarter
 
 
 
2012 by quarter
 
 
 
June 30, 2013

March 31, 2013

Full Year 2012
 
December 30, 2012

September 23, 2012

June 24, 2012

March 25, 2012
 
Full Year 2011
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Circulation
 
$
206,965

 
$
205,482

 
$
795,037

 
$
216,123

 
$
194,739

 
$
194,208

 
$
189,967

 
$
705,163

Advertising
 
163,039

 
153,538

 
711,829

 
226,461

 
140,880

 
171,129

 
173,359

 
756,148

Other
 
20,953

 
21,655

 
88,475

 
25,530

 
19,718

 
22,504

 
20,723

 
93,263

Total revenues
 
390,957

 
380,675

 
1,595,341

 
468,114

 
355,337

 
387,841

 
384,049

 
1,554,574

Operating costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Raw materials
 
22,098

 
23,751

 
106,381

 
30,418

 
24,343

 
25,798

 
25,822

 
108,267

Wages and benefits
 
81,536

 
83,276

 
331,321

 
88,579

 
80,696

 
80,879

 
81,167

 
315,900

Other
 
49,435

 
49,707

 
213,616

 
58,443

 
52,331

 
51,497

 
51,345

 
216,094

Total production costs
 
153,069

 
156,734

 
651,318

 
177,440

 
157,370

 
158,174

 
158,334

 
640,261

Selling, general and administrative costs
 
172,914

 
176,872

 
711,112

 
186,501

 
169,459

 
172,820

 
182,332

 
687,558

Depreciation and amortization
 
18,750

 
18,938

 
78,980

 
18,492

 
19,594

 
20,212

 
20,682

 
83,833

Total operating costs
 
344,733

 
352,544

 
1,441,410

 
382,433

 
346,423

 
351,206

 
361,348

 
1,411,652

Pension settlement expense
 
—


—


47,657


47,657


—


—


—


—

Pension withdrawal expense
 
—


—


—


—


—


—


—


4,228

Other expense
 
—


—


2,620


2,620


—


—


—


4,500

Impairment of assets
 
—


—


—


—


—


—


—


7,458

Operating profit
 
46,224

 
28,131

 
103,654

 
35,404

 
8,914

 
36,635

 
22,701

 
126,736

Gain on sale of investments
 
—


—


220,275


164,630


—


37,797


17,848


71,171

Impairment of investments
 
—


—


5,500


—


600


—


4,900


—

(Loss)/income from joint ventures
 
(405
)
 
(2,870
)
 
2,936

 
847

 
1,010

 
1,064

 
15

 
(270
)
Premium on debt redemption
 
—


—


—


—


—


—


—


46,381

Interest expense, net
 
14,644

 
14,071

 
62,808

 
16,402

 
15,490

 
15,464

 
15,452

 
85,243

Income/(loss) from continuing operations before income taxes
 
31,175

 
11,190

 
258,557

 
184,479

 
(6,166
)
 
60,032

 
20,212

 
66,013

Income tax expense/(benefit)
 
13,813

 
5,082

 
94,617

 
66,171

 
(3,187
)
 
25,781

 
5,852

 
21,417

Income/(loss) from continuing operations
 
17,362

 
6,108

 
163,940

 
118,308

 
(2,979
)
 
34,251

 
14,360

 
44,596

Income/(loss) from discontinued operations, net of income taxes
 
2,775

 
(2,785
)
 
(27,927
)
 
60,080

 
5,703

 
(121,900
)
 
28,190

 
(82,799
)
Net income/(loss)
 
20,137

 
3,323

 
136,013

 
178,388

 
2,724

 
(87,649
)
 
42,550

 
(38,203
)
Net (income)/loss attributable to the noncontrolling interest
 
(6
)
 
249

 
(166
)
 
(267
)
 
21

 
27

 
53

 
555

Net income/(loss) attributable to The New York Times Company common stockholders
 
$
20,131

 
$
3,572

 
$
135,847

 
$
178,121

 
$
2,745

 
$
(87,622
)
 
$
42,603

 
$
(37,648
)
Amounts attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income/(loss) from continuing operations
 
$
17,356

 
$
6,357

 
$
163,774

 
$
118,041

 
$
(2,958
)
 
$
34,278

 
$
14,413

 
$
45,151

Income/(loss) from discontinued operations, net of income taxes
 
2,775

 
(2,785
)
 
(27,927
)
 
60,080

 
5,703

 
(121,900
)
 
28,190

 
(82,799
)
Net income/(loss)
 
$
20,131

 
$
3,572

 
$
135,847

 
$
178,121

 
$
2,745

 
$
(87,622
)
 
$
42,603

 
$
(37,648
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
148,797

 
148,710

 
148,147

 
148,461

 
148,254

 
148,005

 
147,867

 
147,190

Diluted
 
156,511

 
155,270

 
152,693

 
154,685

 
148,254

 
149,799

 
151,468

 
152,007

Basic earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income/(loss) from continuing operations
 
$
0.12

 
$
0.04

 
$
1.11

 
$
0.80

 
$
(0.02
)
 
$
0.23

 
$
0.10

 
$
0.31

Income/(loss) from discontinued operations, net of income taxes
 
0.02

 
(0.02
)
 
(0.19
)
 
0.40

 
0.04

 
(0.82
)
 
0.19

 
(0.57
)
Net income/(loss)
 
$
0.14

 
$
0.02

 
$
0.92

 
$
1.20

 
$
0.02

 
$
(0.59
)
 
$
0.29

 
$
(0.26
)
Diluted earnings/(loss) per share attributable to The New York Times Company common stockholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income/(loss) from continuing operations
 
$
0.11


$
0.04


$
1.07


$
0.76


$
(0.02
)

$
0.23


$
0.10


$
0.30

Income/(loss) from discontinued operations, net of income taxes
 
0.02

 
(0.02
)
 
(0.18
)
 
0.39

 
0.04

 
(0.81
)
 
0.18

 
(0.55
)
Net income/(loss)
 
$
0.13

 
$
0.02

 
$
0.89

 
$
1.15

 
$
0.02

 
$
(0.58
)
 
$
0.28

 
$
(0.25
)

The following supplemental information on print and digital advertising revenue and revenue from digital-only subscription packages, e-readers and replica editions reflects the reclassification of NEMG as a discontinued operation.
 
 
2013 by quarter
 
 
 
2012 by quarter
 
 
(In thousands)
 
June 30, 2013
 
March 31, 2013
 
Full Year 2012
 
December 30, 2012
 
September 23, 2012
 
June 24, 2012
 
March 25, 2012
 
Full Year 2011
Advertising
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Print
 
$
122,917

 
$
116,555

 
$
541,550

 
$
169,771

 
$
106,934

 
$
130,365

 
$
134,480

 
$
584,624

Digital
 
40,122

 
36,983

 
170,279

 
56,690

 
33,946

 
40,764

 
38,879

 
171,524

Total advertising revenue
 
$
163,039

 
$
153,538

 
$
711,829

 
$
226,461

 
$
140,880

 
$
171,129

 
$
173,359

 
$
756,148

Digital-only subscription revenue
 
$
36,758

 
$
35,507

 
$
111,674

 
$
34,421

 
$
29,246

 
$
25,651

 
$
22,356

 
$
44,300







CERTAIN NON-GAAP INFORMATION
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
Set out in the tables below for the periods indicated are the following non-GAAP financial measures, with reconciliations to the most comparable GAAP measures, in each case reflecting the reclassification of NEMG as a discontinued operation: diluted earnings/(loss) per share from continuing operations excluding severance and special items; operating profit before depreciation, amortization, severance and special items (if any); and operating costs before depreciation, amortization, severance and raw materials. The Company has presented these non-GAAP financial measures because management reviews them on a regular basis and uses them to evaluate and manage the performance of the Company’s 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 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 before depreciation, amortization, severance and special items (if any) 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.
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings/(loss) per share from continuing operations excluding severance and special items
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013 by quarter
 
 
 
2012 by quarter
 
 
 
 
June 30, 2013
 
March 31, 2013
 
Full Year 2012
 
December 30, 2012
 
September 23, 2012
 
June 24, 2012
 
March 25, 2012
 
Full Year 2011
Diluted earnings/(loss) per share from continuing operations
 
$
0.11

 
$
0.04

 
$
1.07

 
$
0.76

 
$
(0.02
)
 
$
0.23

 
$
0.10

 
$
0.30

Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Severance
 
0.01

 
0.02

 
0.04

 
0.02

 
—

 
—

 
0.02

 
0.04

Special items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of investments
 
—

 
—

 
(0.87
)
 
(0.66
)
 
—

 
(0.15
)
 
(0.07
)
 
(0.27
)
Pension settlement expense
 
—

 
—

 
0.18

 
0.18

 
—

 
—

 
—

 
—

Other expense
 
—

 
—

 
0.01

 
0.01

 
—

 
—

 
—

 
0.02

Impairment of assets
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
0.03

Pension withdrawal expense
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
0.02

Impairment of investments
 
—

 
—

 
0.02

 
—

 
—

 
—

 
0.02

 
—

Premium on debt redemption
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
0.18

Diluted earnings/(loss) per share from continuing operations excluding severance and special items
 
$
0.12

 
$
0.06

 
$
0.45

 
$
0.31

 
$
(0.02
)
 
$
0.08

 
$
0.07

 
$
0.32






CERTAIN NON-GAAP INFORMATION (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit before depreciation & amortization, severance and special items
 
 
 
 
 
 
2013 by quarter
 
 
 
2012 by quarter
 
 
 
 
June 30, 2013
 
March 31, 2013
 
Full Year 2012
 
December 30, 2012
 
September 23, 2012
 
June 24, 2012
 
March 25, 2012
 
Full Year 2011
Operating profit
 
$
46,224

 
$
28,131

 
$
103,654

 
$
35,404

 
$
8,914

 
$
36,635

 
$
22,701

 
$
126,736

Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation & amortization
 
18,750

 
18,938

 
78,980

 
18,492

 
19,594

 
20,212

 
20,682

 
83,833

Severance
 
2,856

 
4,868

 
12,267

 
5,872

 
1,050

 
57

 
5,288

 
10,017

Special items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension settlement expense
 
—

 
—

 
47,657

 
47,657

 
—

 
—

 
—

 
—

Other expense
 
—

 
—

 
2,620

 
2,620

 
—

 
—

 
—

 
4,500

Impairment of assets
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
7,458

Pension withdrawal expense
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,228

Operating profit before depreciation & amortization, severance and special items
 
$
67,830

 
$
51,937

 
$
245,178

 
$
110,045

 
$
29,558

 
$
56,904

 
$
48,671

 
$
236,772

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating costs before depreciation & amortization, severance and raw materials
 
 
 
 
 
 
2013 by quarter
 
 
 
2012 by quarter
 
 
 
 
June 30, 2013
 
March 31, 2013
 
Full Year 2012
 
December 30, 2012
 
September 23, 2012
 
June 24, 2012
 
March 25, 2012
 
Full Year 2011
Operating costs
 
$
344,733

 
$
352,544

 
$
1,441,410

 
$
382,433

 
$
346,423

 
$
351,206

 
$
361,348

 
$
1,411,652

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation & amortization
 
18,750

 
18,938

 
78,980

 
18,492

 
19,594

 
20,212

 
20,682

 
83,833

Severance
 
2,856

 
4,868

 
12,267

 
5,872

 
1,050

 
57

 
5,288

 
10,017

Operating costs before depreciation & amortization and severance
 
323,127

 
328,738

 
1,350,163

 
358,069

 
325,779

 
330,937

 
335,378

 
1,317,802

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Raw materials
 
22,098

 
23,751

 
106,381

 
30,418

 
24,343

 
25,798

 
25,822

 
108,267

Operating costs before depreciation & amortization, severance and raw materials
 
$
301,029

 
$
304,987

 
$
1,243,782

 
$
327,651

 
$
301,436

 
$
305,139

 
$
309,556

 
$
1,209,535






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 

 
 
 
 
THE NEW YORK TIMES COMPANY
 
Date: October 25, 2013
 
 
 
 
 
 
 
 
By:
/s/ KENNETH A. RICHIERI
 
 
 
 
 
Kenneth A. Richieri
Executive Vice President and General Counsel