[May 03, 2018] |
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The New York Times Company Reports 2018 First-Quarter Results
The New York Times Company (NYSE: NYT) announced today first-quarter
2018 diluted earnings per share from continuing operations of $.13
compared with $.08 earnings per share in the same period of 2017.
Adjusted diluted earnings per share from continuing operations (defined
below) was $.17 in the first quarter of 2018 compared with $.10 in the
first quarter of 2017.
Operating profit rose to $34.1 million in the first quarter of 2018 from
$27.8 million in the same period of 2017, principally driven by strong
digital subscription revenues, which were partially offset by higher
operating costs and lower print advertising revenues. Adjusted operating
profit (defined below) increased to $55.5 million in the first quarter
of 2018 compared with $50.2 million in the first quarter of 2017.
Mark Thompson, president and chief executive officer, The New York Times
Company, said, "In the first quarter, we saw increases in revenue and
overall profitability and continued solid growth in our digital
subscription business. The strong demand for the high quality,
independent journalism that The Times produces resulted in a 139,000 net
increase in digital-only subscriptions for the quarter. We're seeing
good retention of new cohorts of subscribers and continue to believe
there is a big opportunity to further grow this increasingly important
part of our business. Subscription revenues accounted for nearly
two-thirds of the Company's revenues and, as we continue to adapt our
subscription model and introduce new products, we expect that trend to
continue.
"Turning to advertising, Q1 saw a good performance in print, the best
since the third quarter of 2015, with just a 2 percent decline
year-over-year. However, as predicted, we had a subdued start to year in
digital advertising, with a 6 percent decline in the quarter, driven in
part by the lumpiness of our growing strategic partnership business, and
the fact that audiences in the quarter, while strong, did not quite
reach the peaks of the immediate post-election and inauguration period a
year earlier. We expect another down quarter in digital advertising in
Q2, but are confident that we will return to solid year-over-year growth
in the third quarter."
Comparisons Unless otherwise noted, all comparisons are for
the first quarter of 2018 to the first quarter of 2017.
In the first quarter of 2018, the Company adopted Accounting Standards
Update 2017-07 Compensation- Retirement Benefits (Topic 715): Improving
the Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost ("ASU 2017-07"). The Company has recast its
first quarter 2017 results to reflect the impact of the adoption of ASU
2017-07 for comparability purposes; there was no impact to first quarter
2017 net income as a result of the adoption. Refer to the Condensed
Consolidated Statement of Operations for more details.
This release presents certain non-GAAP financial measures, including
diluted earnings per share from continuing operations excluding
severance, non-operating retirement costs and special items (or adjusted
diluted earnings per share from continuing operations); operating profit
before depreciation, amortization, severance, multiemployer pension plan
withdrawal costs and special items (or adjusted operating profit); and
operating costs before depreciation, amortization, severance and
multiemployer pension plan withdrawal costs (or adjusted operating
costs). Refer to Reconciliation of Non-GAAP Information in the exhibits
for a discussion of management's reasons for the presentation of these
non-GAAP financial measures and reconciliations to the most comparable
GAAP financial measures.
In connection with the adoption of ASU 2017-07 in the first quarter of
2018, the Company modified its definitions of adjusted operating profit,
adjusted operating costs and non-operating retirement costs in response
to changes in the GAAP presentation of single employer pension and
postretirement benefit costs. For comparability purposes, the Company
has also presented each of its non-GAAP financial measures for the first
quarter of 2017 and the full year 2017 reflecting the recast of its
financial statements for such periods to account for the adoption of ASU
2017-07 and the revised definitions of the non-GAAP financial measures.
In the revised full year 2017 presentation of non-GAAP financial
measures, the Company's adjusted diluted earnings per share from
continuing operations decreased by $.04 from $.80 to $.76, its adjusted
operating costs increased by $9.7 million, and its adjusted operating
profit decreased by the same amount, in each case compared to the
previously reported amounts. Refer to Reconciliation of Non-GAAP
Information in the exhibits for more details.
First-quarter 2018 results included the following special items:
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A $1.9 million charge ($1.4 million after tax or $.01 per share) in
connection with the redesign and consolidation of space in our
headquarters building.
First-quarter 2017 results included the following special items:
-
A $2.4 million pre-tax expense ($1.4 million after tax or $.01 per
share) related to the redesign and consolidation of space in our
headquarters building.
The Company had severance costs of $2.4 million ($1.8 million after tax
or $.01 per share) and $1.6 million ($1.0 million after tax or $.01 per
share) in the first quarters of 2018 and 2017, respectively.
Results from Continuing Operations
Revenues Total revenues for the first quarter of 2018
increased 3.8 percent to $413.9 million from $398.8 million in the first
quarter of 2017. Subscription revenues increased 7.5 percent, while
advertising revenues decreased 3.4 percent and other revenues increased
5.0 percent.
Subscription revenues in the first quarter of 2018 rose primarily due to
growth in recent quarters in the number of subscriptions to the
Company's digital-only products. Revenue from the Company's digital-only
subscription products (which include our news product, as well as our
Crossword and Cooking products) increased 25.8 percent compared with the
first quarter of 2017, to $95.4 million.
Paid digital-only subscriptions totaled approximately 2,783,000 at the
end of the first quarter of 2018, a net increase of 139,000
subscriptions compared with the end of the fourth quarter of 2017 and a
25.5 percent increase compared with the end of the first quarter of
2017. Of the 139,000 additions, 99,000 came from the Company's digital
news products, while the remainder came from the Company's Cooking and
Crossword products.
First-quarter digital advertising revenue decreased 6.0 percent, while
print advertising revenue decreased 1.8 percent. Digital advertising
revenue was $46.7 million, or 37.2 percent of total Company advertising
revenues, compared with $49.7 million, or 38.2 percent, in the first
quarter of 2017. The decrease in digital advertising revenue reflected a
continued decrease in traditional website display advertising, which
more than offset increases in revenue from smartphone advertising.
Other revenues rose 5.0 percent in the first quarter largely due to
affiliate referral revenue associated with the product review and
recommendation website, Wirecutter and commercial printing revenue,
which was partially offset by a decline in our live events business.
Operating Costs Operating costs increased in the first
quarter of 2018 to $378.0 million compared with $368.6 million in the
first quarter of 2017, largely due to higher compensation costs, which
was partially offset by lower print production and distribution costs.
Adjusted operating costs increased to $358.5 million from $348.6 million
in the first quarter of 2017.
Raw materials costs were $16.7 million in the first quarter of 2018,
flat to the same period in the prior year, as volume declines were
mostly offset by higher prices.
Other Data
Other Components of Net Periodic Benefit Costs/(Income) Other
components of net periodic benefit costs/(income) increased $3.2 million
primarily due to lower expected returns on pension assets partially
offset by lower interest costs.
Interest Expense and Other, net Interest expense and other,
net decreased in the first quarter of 2018 to $4.9 million compared with
$5.3 million in the first quarter of 2017 as a result of higher interest
income from cash and cash equivalents and marketable securities.
Income Taxes The Company had income tax expense of $5.3
million in the first quarter of 2018 compared with $10.7 million in the
first quarter of 2017. The decrease was primarily due to a reduction in
the U.S. federal corporate income tax rate which took effect in 2018,
and a tax benefit from stock-based compensation.
Liquidity As of April 1, 2018, the Company had cash and
marketable securities of approximately $749.3 million (excluding
restricted cash of approximately $18.1 million, substantially all of
which is set aside to collateralize certain workers' compensation
obligations). Included within marketable securities is approximately $63
million of securities used as collateral for letters of credit issued by
the Company in connection with the leasing of floors in our headquarters
building. Total debt and capital lease obligations were approximately
$251.1 million.
Capital Expenditures Capital expenditures totaled
approximately $19 million in the first quarter of 2018 compared with $6
million in the first quarter of 2017. The expenditures were primarily
related to improvements at our College Point printing and distribution
facility and the ongoing redesign and consolidation of space in our
headquarters building.
Outlook Total subscription revenues in the second quarter of
2018 are expected to increase in the mid-single digits compared to the
second quarter of 2017.
Total advertising revenues in the second quarter of 2018 are expected to
decrease in the low-teens compared with the second quarter of 2017.
Operating costs are expected to increase in the low-single digits, while
adjusted operating costs are expected to increase in the mid-single
digits in the second quarter of 2018 compared with the second quarter of
2017.
The Company expects the following on a pre-tax basis in 2018:
-
Depreciation and amortization: $60 million to $65 million,
-
Interest expense and other, net: $18 million to $21 million, and
-
Capital expenditures: $60 million to $70 million.
Conference Call Information The Company's first-quarter and
full year 2018 earnings conference call will be held on Thursday, May 3
at 11:00 a.m. E.T. Participants can pre-register for the telephone
conference at dpregister.com/10118344.
To access the call without pre-registration, dial 844-413-3940 (in the
U.S.) or 412-858-5208 (international callers). Online listeners can link
to the live webcast at investors.nytco.com.
An archive of the webcast will be available beginning about two hours
after the call at investors.nytco.com.
The archive will be available for approximately three months. An audio
replay will be available at 877-344-7529 (in the U.S.) and 412-317-0088
(international callers) beginning approximately two hours after the call
until 11:59 p.m. E.T. on Thursday, May 17. The passcode is 10118344.
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve risks and uncertainties, and actual results could differ
materially from those predicted by such forward-looking statements.
These risks and uncertainties include changes in the business and
competitive environment in which the Company operates, the impact of
national and local conditions and developments in technology, each of
which could influence the levels (rate and volume) of the Company's
subscriptions and advertising, the growth of its businesses and the
implementation of its strategic initiatives. 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
year ended December 31, 2017. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
The New York Times Company is a global media organization dedicated to
enhancing society by creating, collecting and distributing high-quality
news and information. The Company includes The New York Times, NYTimes.com
and related properties. It is known globally for excellence in its
journalism, and innovation in its print and digital storytelling and its
business model. Follow news about the company at @NYTimesPR.
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Exhibits:
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Condensed Consolidated Statements of Operations
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Footnotes
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Reconciliation of Non-GAAP Information
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This press release can be downloaded from www.nytco.com
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THE NEW YORK TIMES COMPANY
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Dollars and shares in thousands, except per share data)
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First Quarter
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2018
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2017
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% Change
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Revenues
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Subscription(a)
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$
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260,593
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$
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242,375
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7.5%
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Advertising(b)
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125,647
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130,028
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(3.4%)
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Other(c)
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27,708
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26,401
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5.0%
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Total revenues
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413,948
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398,804
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3.8%
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Operating costs
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Production costs(d)
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154,341
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153,297
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0.7%
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Selling, general and administrative costs(d)
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208,623
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199,137
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4.8%
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Depreciation and amortization
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15,041
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16,153
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(6.9%)
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Total operating costs(d)
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378,005
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368,587
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2.6%
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Headquarters redesign and consolidation(e)
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1,888
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2,402
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(21.4%)
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Operating profit(d)
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34,055
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27,815
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22.4%
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Other components of net periodic benefit costs/(income)(d)
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2,028
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(1,194
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)
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*
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Gain from joint ventures
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15
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173
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(91.3%)
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Interest expense and other, net
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4,877
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5,325
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(8.4%)
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Income from continuing operations before income taxes
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27,165
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23,857
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13.9%
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Income tax expense
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5,251
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10,742
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(51.1%)
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Net income
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21,914
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13,115
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67.1%
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Net (income)/loss attributable to the noncontrolling interest
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(2
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)
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66
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*
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Net income attributable to The New York Times Company common
stockholders
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$
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21,912
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$
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13,181
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66.2%
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Average number of common shares outstanding:
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Basic
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164,094
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161,402
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1.7%
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Diluted
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166,237
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162,592
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2.2%
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Basic earnings per share attributable to The New York Times
Company common stockholders
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$
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0.13
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$
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0.08
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62.5%
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Diluted earnings per share attributable to The New York Times
Company common stockholders
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$
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0.13
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$
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0.08
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62.5%
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Dividends declared per share
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$
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0.04
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$
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0.04
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0.0%
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* Represents a change equal to or in excess of 100% or not
meaningful.
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See footnotes pages for additional information.
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THE NEW YORK TIMES COMPANY
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FOOTNOTES
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(Amounts in thousands)
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(a)
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The following table summarizes digital-only subscription revenues
for the first quarter of 2018 and 2017:
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First Quarter
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2018
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2017
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% Change
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Digital-only subscription revenues:
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News product subscription revenues(1)
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$
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90,577
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$
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72,861
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24.3%
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Other product subscription revenues(2)
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4,835
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2,956
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63.6%
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Total digital-only subscription revenues
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$
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95,412
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$
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75,817
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25.8%
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(1)
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Includes revenues from subscriptions to the Company's news
product. News product subscription packages that include access to
the Company's Crossword and Cooking products are also included in
this category.
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(2)
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Includes revenues from standalone subscriptions to the
Company's Crossword and Cooking products.
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The following table summarizes digital-only subscriptions for the
first quarter of 2018 and 2017:
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First Quarter
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2018
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2017
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% Change
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Digital-only subscriptions(1):
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News product subscriptions(2)
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2,330
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1,934
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20.5%
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Other product subscriptions(3)
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453
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283
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60.1%
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Total digital-only subscriptions
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2,783
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2,217
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25.5%
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(1)
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Reflects certain immaterial prior-period corrections.
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(2)
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Includes subscriptions to the Company's news product. News
product subscription packages that include access to the Company's
Crossword and Cooking products are also included in this category.
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(3)
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Includes standalone subscriptions to the Company's Crossword
and Cooking products.
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(b)
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The following table summarizes advertising revenues by category for
the first quarters of 2018 and 2017:
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First Quarter 2018
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First Quarter 2017
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% Change
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Print
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Digital
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Total
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Print
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Digital
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Total
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Print
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Digital
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Total
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Display
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$
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70,805
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$
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38,700
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$
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109,505
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$
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71,627
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$
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42,976
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$
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114,603
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(1.1)%
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(9.9)%
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(4.4)%
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Classified and Other
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8,139
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8,003
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16,142
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8,730
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6,695
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15,425
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(6.8)%
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19.5%
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4.6%
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Total advertising
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$
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78,944
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$
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46,703
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$
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125,647
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$
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80,357
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$
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49,671
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$
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130,028
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(1.8)%
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(6.0)%
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(3.4)%
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(c)
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Other revenues primarily consist of revenues from news
services/syndication, digital archive licensing, building rental
income, affiliate referrals, NYT Live (our live events business),
retail commerce, and commercial printing.
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(d)
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As a result of the adoption of the ASU 2017-07 during the first
quarter of 2018, the service cost component of net periodic
benefit costs/(income) from our pension and other postretirement
benefits plans will continue to be presented within operating
costs, while the other components of net periodic benefits
costs/(income) such as interest cost, amortization of prior
service credit and gains or losses from our pension and other
postretirement benefits plans will be separately presented outside
of "Operating costs" in the new line item "Other components of net
periodic benefits costs/(income)". The Company has recast the
Condensed Consolidated Statement of Operations for the first
quarter of 2017 to conform with the current period presentation.
This resulted in $0.1 million and $1.1 million of credits being
reclassified from "Production costs" and "Selling, general and
administrative costs" to "Other components of net periodic benefit
costs/(income)" in the first quarter of 2017. This recast
increased first quarter 2017 "Operating costs" by $1.2 million
while "Operating profit" decreased by the same amount. There was
no impact to net income.
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(e)
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The Company recognized $1.9 million and $2.4 million pre-tax
expenses related to the redesign and consolidation of space in our
headquarters building in the first quarters of 2018 and 2017,
respectively.
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THE NEW YORK TIMES COMPANY
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RECONCILIATION OF NON-GAAP INFORMATION
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(Dollars in thousands, except per share data)
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In this release, the Company has referred to non-GAAP financial
information with respect to diluted earnings per share from continuing
operations excluding severance, non-operating retirement costs and
special items (or adjusted diluted earnings per share from continuing
operations); operating profit before depreciation, amortization,
severance, multiemployer pension plan withdrawal costs and special items
(or adjusted operating profit); and operating costs before depreciation,
amortization, severance and multiemployer pension withdrawal costs (or
adjusted operating costs). The Company has included 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/(loss) 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.
As a result of the adoption of ASU 2017-07 during the first quarter of
2018, all single employer pension and other postretirement benefit
expenses with the exception of service cost were reclassified from
operating costs to "Other components of net periodic benefit
costs/(income)". See note (d) to the Footnotes to the Condensed
Consolidated Statement of Operations above. In connection with the
adoption of ASU 2017-07, the Company made the following changes to its
non-GAAP financial measures in order to align them with the new GAAP
presentation:
-
Revised the components of non-operating retirement costs to include
amortization of prior service credit of single employer pension and
other postretirement benefit expenses.
-
Revised the definition of adjusted operating profit and adjusted
operating costs to exclude only multiemployer pension plan withdrawal
costs (which historically have been and continue to be a component of
non-operating retirement costs), rather than all non-operating
retirement costs. As a result of the adoption of ASU 2017-07
non-operating retirement costs other than multiemployer pension plan
withdrawal costs are now separately presented outside of operating
costs and accordingly have no impact on operating profit and cost
under GAAP, or adjusted operating profit or adjusted operating costs.
Multiemployer pension plan withdrawal costs remain in GAAP operating
costs and therefore continue to be an adjustment to these non-GAAP
measures.
Non-operating retirement costs include (i) interest cost, expected
return on plan assets, amortization of actuarial gains and loss
components and amortization of prior service credits of single employer
pension expense, (ii) interest cost, amortization of actuarial gains and
loss components and amortization of prior service credits of retirement
medical expense, and (iii) all multiemployer pension plan withdrawal
costs.
These non-operating retirement costs are primarily tied to financial
market performance and changes in market interest rates and investment
performance. Management considers non-operating retirement costs to be
outside the performance of the business and believes that presenting
adjusted diluted earnings per share from continuing operations excluding
non-operating retirement costs and presenting adjusted operating results
excluding multiemployer pension plan withdrawal costs, in addition to
the Company's GAAP diluted earnings per share from continuing operations
and GAAP operating results, provide increased transparency and a better
understanding of the underlying trends in the Company's operating
business performance.
Adjusted diluted earnings per share provides 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. Adjusted operating profit is
useful in evaluating the ongoing performance of the Company's business
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 multiemployer pension plan withdrawal costs. 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.
Management considers special items, which may include impairment
charges, pension settlement charges and other items that arise from time
to time, to be outside the ordinary course of our operations. Management
believes that excluding these items provides a better understanding of
the underlying trends in the Company's operating performance and allows
more accurate comparisons of the Company's operating results to
historical performance. In addition, management excludes severance
costs, which may fluctuate significantly from quarter to quarter,
because it believes these costs do not necessarily reflect expected
future operating costs and do not contribute to a meaningful comparison
of the Company's operating results to historical performance.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures are set out in the tables below.
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THE NEW YORK TIMES COMPANY
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RECONCILIATION OF NON-GAAP INFORMATION
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(Dollars in thousands, except per share data)
|
|
Reconciliation of diluted earnings per share
from continuing operations excluding severance, non-operating retirement
costs and special items (or adjusted diluted earnings per share from
continuing operations)
|
|
|
|
|
|
First Quarter
|
|
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2018
|
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2017 (1)
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|
% Change
|
Diluted earnings per share from continuing operations
|
|
$
|
0.13
|
|
$
|
0.08
|
|
62.5%
|
Add:
|
|
|
|
|
|
|
Severance
|
|
0.01
|
|
0.01
|
|
-%
|
Non-operating retirement costs
|
|
0.02
|
|
0.01
|
|
100.0%
|
Special items:
|
|
|
|
|
|
|
Headquarters redesign and consolidation
|
|
0.01
|
|
0.01
|
|
-%
|
Income tax expense of adjustments
|
|
(0.01)
|
|
(0.01)
|
|
-%
|
Adjusted diluted earnings per share from continuing operations (2)
|
|
$
|
0.17
|
|
$
|
0.10
|
|
70.0%
|
|
|
|
|
|
|
|
(1)
|
|
Revised to reflect recast of GAAP results to conform with
current period presentation and the revised definition of
non-operating retirement costs. See Impact of Modification of
Non-GAAP Measures for more information.
|
(2)
|
|
Amounts may not add due to rounding.
|
|
|
|
Reconciliation of operating profit before
depreciation & amortization, severance, multiemployer pension plan
withdrawal costs and special items (or adjusted operating profit)
|
|
|
|
|
First Quarter
|
|
|
2018
|
|
2017 (1)
|
|
% Change
|
Operating profit
|
|
$
|
34,055
|
|
$
|
27,815
|
|
22.4%
|
Add:
|
|
|
|
|
|
|
Depreciation & amortization
|
|
15,041
|
|
16,153
|
|
(6.9)%
|
Severance
|
|
2,389
|
|
1,600
|
|
49.3%
|
Multiemployer pension plan withdrawal costs
|
|
2,104
|
|
2,273
|
|
(7.4)%
|
Special items:
|
|
|
|
|
|
|
Headquarters redesign and consolidation
|
|
1,888
|
|
2,402
|
|
(21.4)%
|
Adjusted operating profit
|
|
$
|
55,477
|
|
$
|
50,243
|
|
10.4%
|
|
(1)
|
|
Revised to reflect recast of GAAP results to conform with
current period presentation and the revised definition of adjusted
operating profit. See Impact of Modification of Non-GAAP Measures
for more information.
|
|
|
|
Reconciliation of operating costs before
depreciation & amortization, severance and multiemployer pension plan
withdrawal costs (or adjusted operating costs)
|
|
|
|
|
First Quarter
|
|
|
2018
|
|
2017 (1)
|
|
% Change
|
Operating costs
|
|
$
|
378,005
|
|
$
|
368,587
|
|
2.6%
|
Less:
|
|
|
|
|
|
|
Depreciation & amortization
|
|
15,041
|
|
16,153
|
|
(6.9)%
|
Severance
|
|
2,389
|
|
1,600
|
|
49.3%
|
Multiemployer pension plan withdrawal costs
|
|
2,104
|
|
2,273
|
|
(7.4)%
|
Adjusted operating costs
|
|
$
|
358,471
|
|
$
|
348,561
|
|
2.8%
|
|
(1)
|
|
Revised to reflect recast of GAAP results to conform with
current period presentation and the revised definition of adjusted
operating costs. See Impact of Modification of Non-GAAP Measures
for more information.
|
|
|
|
|
THE NEW YORK TIMES COMPANY
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
(Dollars in thousands, except per share data)
|
|
Impact of Modification of Non-GAAP Measures In
connection with the adoption of ASU 2017-07 in the first quarter of
2018, the Company modified its definitions of adjusted operating profit,
adjusted operating costs and non-operating retirement costs in response
to changes in the GAAP presentation of single employer pension and
postretirement benefit costs. For comparability purposes, the Company
has presented each of its non-GAAP financial measures for the first
quarter of 2017 and the full year 2017 reflecting the recast of its
financial statements for such periods to account for the adoption of ASU
2017-07 and the revised definitions of the non-GAAP financial measures.
The following tables show the adjustments to the previously presented
metrics.
Adjustments made to the reconciliation of
diluted earnings per share from continuing operations to adjusted
diluted earnings per share from continuing operations
|
|
|
|
|
First Quarter
|
|
|
|
|
2017
Previously Reported
|
|
|
Adjustment
|
|
|
2017
Recast
|
Diluted earnings per share from continuing operations
|
|
|
|
$
|
0.08
|
|
|
$
|
-
|
|
|
$
|
0.08
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
|
|
0.01
|
|
|
-
|
|
|
0.01
|
Non-operating retirement costs
|
|
|
|
0.02
|
|
|
(0.01)
|
(2)
|
|
0.01
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
Headquarters redesign and consolidation
|
|
|
|
0.01
|
|
|
-
|
|
|
0.01
|
Income tax expense of adjustments
|
|
|
|
(0.01)
|
|
|
-
|
|
|
(0.01)
|
Adjusted diluted earnings per share from continuing operations (1)
|
|
|
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
(2) Reflects the inclusion of amortization of
prior service credits in the definition of non-operating retirement
costs.
|
|
Adjustments made to the reconciliation of
operating profit to adjusted operating profit
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
2017
Previously Reported
|
|
|
Adjustment
|
|
|
2017
Recast
|
Operating profit
|
|
|
|
$
|
29,009
|
|
|
$
|
(1,194)
|
(1)
|
|
$
|
27,815
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
16,153
|
|
|
-
|
|
|
16,153
|
Severance
|
|
|
|
1,600
|
|
|
-
|
|
|
1,600
|
Non-operating retirement costs
|
|
|
|
3,503
|
|
|
(3,503)
|
(2)
|
|
-
|
Multiemployer pension plan withdrawal costs
|
|
|
|
-
|
|
|
2,273
|
(2)
|
|
2,273
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
Headquarters redesign and consolidation
|
|
|
|
2,402
|
|
|
-
|
|
|
2,402
|
Adjusted operating profit
|
|
|
|
$
|
52,667
|
|
|
$
|
(2,424)
|
(3)
|
|
$
|
50,243
|
|
(1) Recast as a result of the adoption of ASU
2017-07. See footnote (d) to the Condensed Consolidated Statements
of Operations for more information.
|
(2) As a result of the change in the definition
of adjusted operating profit, only multiemployer pension plan
withdrawal costs, rather than all non-operating retirement costs,
are excluded from adjusted operating profit.
|
(3) Represents amortization of prior service
credits, which historically were a component of operating profit but
not an adjustment to adjusted operating profit. As a result of the
adoption of ASU 2017-07, amortization of prior service credits are
now a component of other components of net periodic benefit
costs/(income) rather than operating profit. For the first quarter
of 2017, $(2.4) million amortization of prior service credits have
been reclassified out of operating profit thereby reducing operating
profit and adjusted operating profit.
|
|
|
THE NEW YORK TIMES COMPANY
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments made to the reconciliation of
operating costs to adjusted operating costs
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
|
2017
Previously Reported
|
|
|
Adjustment
|
|
|
2017
Recast
|
Operating costs
|
|
|
|
|
$
|
367,393
|
|
|
$
|
1,194
|
(1)
|
|
$
|
368,587
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
|
|
|
16,153
|
|
|
-
|
|
|
16,153
|
Severance
|
|
|
|
|
1,600
|
|
|
-
|
|
|
1,600
|
Non-operating retirement costs
|
|
|
|
|
3,503
|
|
|
(3,503)
|
(2)
|
|
-
|
Multiemployer pension plan withdrawal costs
|
|
|
|
|
-
|
|
|
2,273
|
(2)
|
|
2,273
|
Adjusted operating costs
|
|
|
|
|
$
|
346,137
|
|
|
$
|
2,424
|
(3)
|
|
$
|
348,561
|
|
(1) Recast as a result of the adoption of ASU
2017-07. See footnote (d) to the Condensed Consolidated Statements
of Operations for more information.
|
(2) As a result of the change in the definition
of adjusted operating costs, only multiemployer pension plan
withdrawal costs, rather than all non-operating retirement costs,
are excluded from adjusted operating costs.
|
(3) Represents amortization of prior service
credits, which historically were a component of operating costs but
not an adjustment to adjusted operating costs. As a result of the
adoption of ASU 2017-07, amortization of prior service credits are
now a component of other components of net periodic benefit
costs/(income) rather than operating costs. For the first quarter of
2017, $(2.4) million amortization of prior service credits have been
reclassified out of operating costs thereby increasing operating
costs and adjusted operating costs.
|
|
The following table reconciles other components
of net periodic benefit costs/(income), excluding special items, to the
comparable non-GAAP metric, non-operating retirement costs.
|
|
|
|
|
First Quarter
of
2017
|
Pension:
|
|
|
|
|
Interest cost
|
|
|
|
$
|
17,550
|
Expected return on plan assets
|
|
|
|
(26,136)
|
Amortization and other costs
|
|
|
|
8,441
|
Amortization of prior service credit (1)
|
|
|
|
(486)
|
Non-operating pension income
|
|
|
|
(631)
|
Other postretirement benefits:
|
|
|
|
|
Interest cost
|
|
|
|
470
|
Amortization and other costs
|
|
|
|
905
|
Amortization of prior service credit (1)
|
|
|
|
(1,938)
|
Non-operating other postretirement benefits income
|
|
|
|
(563)
|
Other components of net periodic benefit income
|
|
|
|
(1,194)
|
Multiemployer pension plan withdrawal costs
|
|
|
|
2,273
|
Total non-operating retirement costs
|
|
|
|
$
|
1,079
|
|
|
|
|
|
(1) The total amortization of prior service credit was
$2.4 million for the first quarter of 2017.
|
|
|
THE NEW YORK TIMES COMPANY
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
Adjustments made to the reconciliation of
diluted earnings per share from continuing operations to adjusted
diluted earnings per share from continuing operations
|
|
|
|
|
|
Twelve Months
|
|
|
2017 Previously Reported
|
|
Adjustment
|
|
2017
Recast
|
Diluted earnings per share from continuing operations
|
|
$
|
0.03
|
|
|
$
|
-
|
|
$
|
0.03
|
|
Add:
|
|
|
|
|
|
|
Severance
|
|
0.15
|
|
|
-
|
|
0.15
|
|
Non-operating retirement costs
|
|
0.07
|
|
|
(0.06)
|
(2)
|
0.01
|
|
Special items:
|
|
|
|
|
|
|
|
Headquarters redesign and consolidation
|
|
0.06
|
|
|
-
|
|
0.06
|
|
Pension settlement expense
|
|
0.62
|
|
|
-
|
|
0.62
|
|
Postretirement benefit plan settlement gain
|
|
(0.23
|
)
|
|
-
|
|
(0.23
|
)
|
Gain in joint ventures, net of noncontrolling interest
|
|
(0.08
|
)
|
|
-
|
|
(0.08
|
)
|
Income tax expense/(benefit) of adjustments
|
|
(0.24
|
)
|
|
0.02
|
(2)
|
(0.22
|
)
|
Deferred tax asset remeasurement adjustment
|
|
0.42
|
|
|
-
|
|
0.42
|
|
Adjusted diluted earnings per share from continuing operations (1)
|
|
$
|
0.80
|
|
|
$
|
(0.04)
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts may not add due to rounding.
|
(2) Reflects the inclusion of amortization of
prior service credits in the definition of non-operating retirement
costs.
|
|
|
|
|
|
|
|
Adjustments made to the reconciliation of
operating profit to adjusted operating profit
|
|
|
|
|
|
Twelve Months
|
|
|
2017 Previously Reported
|
|
Adjustment
|
|
2017
Recast
|
Operating profit
|
|
$
|
112,366
|
|
|
$
|
64,225
|
(1)
|
$
|
176,591
|
|
Add:
|
|
|
|
|
|
|
Depreciation & amortization
|
|
61,871
|
|
|
-
|
|
61,871
|
|
Severance
|
|
23,949
|
|
|
-
|
|
23,949
|
|
Non-operating retirement costs
|
|
11,152
|
|
|
(11,152)
|
(2)
|
-
|
|
Multiemployer pension plan withdrawal costs
|
|
-
|
|
|
6,599
|
(2)
|
6,599
|
|
Special items:
|
|
|
|
|
|
|
Headquarters redesign and consolidation
|
|
10,090
|
|
|
-
|
|
10,090
|
|
Postretirement benefit plan settlement gain
|
|
(37,057
|
)
|
|
32,737
|
(1)
|
(4,320
|
)
|
Pension settlement expense
|
|
102,109
|
|
|
(102,109)
|
(1)
|
-
|
|
Adjusted operating profit
|
|
$
|
284,480
|
|
|
$
|
(9,700)
|
(3)
|
$
|
274,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Recast as a result of the adoption of ASU
2017-07. In the twelve months of 2017, ($5.1) million of pension
related income and $69.3 million of pension related special items
were reclassified out of operating profit into a new line item other
components of net periodic benefit costs/(income).
|
(2) As a result of the change in the definition
of adjusted operating profit, only multiemployer pension plan
withdrawal costs, rather than all non-operating retirement costs,
are excluded from adjusted operating profit.
|
(3) Represents amortization of prior service
credits, which historically were a component of operating profit but
not an adjustment to adjusted operating profit. As a result of the
adoption of ASU 2017-07, amortization of prior service credits are
now a component of other components of net periodic benefit
costs/(income) rather than operating profit. For the twelve months
of 2017, ($9.7) million amortization of prior service credits have
been reclassified out of operating profit thereby reducing operating
profit and adjusted operating profit.
|
|
|
THE NEW YORK TIMES COMPANY
|
RECONCILIATION OF NON-GAAP INFORMATION (continued)
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Adjustments made to the reconciliation of
operating costs to adjusted operating costs
|
|
|
|
|
|
Twelve Months
|
|
|
2017 Previously Reported
|
|
|
Adjustment
|
|
|
2017
Recast
|
Operating costs
|
|
$
|
1,488,131
|
|
|
|
$
|
5,147
|
(1)
|
|
$
|
1,493,278
|
Less:
|
|
|
|
|
|
|
|
|
Depreciation & amortization
|
|
61,871
|
|
|
|
-
|
|
|
61,871
|
Severance
|
|
23,949
|
|
|
|
-
|
|
|
23,949
|
Non-operating retirement costs
|
|
11,152
|
|
|
|
(11,152)
|
(2)
|
|
-
|
Multiemployer pension plan withdrawal costs
|
|
-
|
|
|
|
6,599
|
(2)
|
|
6,599
|
Adjusted operating costs
|
|
$
|
1,391,159
|
|
|
|
$
|
9,700
|
(3)
|
|
$
|
1,400,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Recast as a result of the adoption of ASU
2017-07. In the twelve months of 2017, ($5.1) million of pension
related income was reclassified out of operating costs into a new
line item other components of net period benefit costs/(income).
|
(2) As a result of the change in the definition
of adjusted operating costs, only multiemployer pension plan
withdrawal costs, rather than all non-operating retirement costs,
are excluded from adjusted operating costs.
|
(3) Represents amortization of prior service
credits, which historically were a component of operating costs but
not an adjustment to adjusted operating costs. As a result of the
adoption of ASU 2017-07, amortization of prior service credits are
now a component of other components of net periodic benefit
costs/(income) rather than operating costs. For the twelve months of
2017, $(9.7) million amortization of prior service credits have been
reclassified out of operating costs thereby increasing operating
costs and adjusted operating costs.
|
|
The following table reconciles other components
of net periodic benefit costs/(income), excluding special items, to the
comparable non-GAAP metric, non-operating retirement costs.
|
|
|
|
|
|
|
|
|
Twelve Months
of
2017
|
Pension:
|
|
|
|
|
Interest cost
|
|
|
|
$
|
68,582
|
|
Expected return on plan assets
|
|
|
|
(102,900
|
)
|
Amortization and other costs
|
|
|
|
33,369
|
|
Amortization of prior service credit (1)
|
|
|
|
(1,945
|
)
|
Non-operating pension costs/(income)
|
|
|
|
(2,894
|
)
|
Other postretirement benefits:
|
|
|
|
|
Interest cost
|
|
|
|
1,881
|
|
Amortization and other costs
|
|
|
|
3,621
|
|
Amortization of prior service credit (1)
|
|
|
|
(7,755
|
)
|
Non-operating other postretirement benefits income
|
|
|
|
(2,253
|
)
|
Other components of net periodic benefits income
|
|
|
|
(5,147
|
)
|
Multiemployer pension plan withdrawal costs
|
|
|
|
6,599
|
|
Total non-operating retirement costs
|
|
|
|
$
|
1,452
|
|
|
|
|
|
|
(1) The total amortization of prior service credit was
$9.7 million for the twelve months of 2017.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180503005757/en/
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