The New York Times Company (NYT, Financial) filed Quarterly Report for the period ended 2009-06-28.
New York Times Company is a diversified media company including newspapers television and radio stations magazines electronic information and publishing Internet businesses and forest products investments. The Company currently classifies its businesses into the following segments: Newspapers Broadcasting Magazines and Forest Product Investments and Other Joing Ventures. The New York Times Company has a market cap of $1.17 billion; its shares were traded at around $8.1 with a P/E ratio of 90 and P/S ratio of 0.4.
On April 8, 2009, we settled the redemption of all $250.0 million outstanding aggregate principal amount of our 4.5% notes due March 15, 2010, that had been called for redemption on March 9, 2009. The redemption price of approximately $260 million included a $9.3 million premium and was computed under the terms of the notes as the present value of the scheduled payments of principal and unpaid interest, plus accrued interest to the redemption settlement date.
As of June 28, 2009, total costs recorded to close City & Suburban were approximately $59 million, of which approximately $26 million was recorded in the first six months of 2009 and approximately $33 million was recorded in 2008 (principally consisting of $29 million in severance costs). In the first six months of 2009, the costs included a $16.4 million estimated loss for the present value of remaining rental payments under leases, for property previously occupied by City & Suburban, in excess of estimated rental income under potential subleases, recorded in the first quarter of 2009, and a $6.6 million estimated charge for a pension withdrawal obligation under a multi-employer pension plan recorded in the second quarter of 2009. While the majority of costs to close City & Suburban have been recognized as of June 28, 2009, the loss on abandoned leases may be adjusted as we enter into subleases or other transactions to utilize or exit the vacant properties, and the pension charge may be adjusted when we receive a final assessment regarding the actual pension withdrawal obligation to be paid.
The effect of the closure on our second-quarter 2009 results was a decrease in other revenues (from the elimination of the delivery of third-party publications) of approximately $18 million, circulation revenues (from the sale of The Times to wholesale distributors rather than retailers) of approximately $3 million and operating costs of approximately $29 million.
As of June 28, 2009, total costs recorded to close the Billerica facility were approximately $29 million, of which approximately $25 million was recorded in the first half of 2009 (approximately $13 million in severance, approximately $6 million in accelerated depreciation and approximately $6 million in moving costs) and approximately $4 million was recorded in 2008 (for accelerated depreciation). Additional moving costs of approximately $1 million are expected to be incurred in the second half of 2009.
We recognized severance costs of $1.7 million in the second quarter of 2009 and $26.7 million in the first six months of 2009. In the second quarter and first six months of 2008, we recognized severance costs of $27.6 million and $38.8 million, respectively. In the first six months of 2009, most of the costs were recognized at the New England Media Group, which is part of the News Media Group, primarily as part of the consolidation of the Globes printing facility in Billerica, Mass., into our Boston, Mass., facility. These costs are primarily recorded in Selling, general and administrative costs in our Condensed Consolidated Statements of Operations.
Read the The complete ReportNYT is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Brian Rogers of T Rowe Price Equity Income Fund, Charles Brandes of Brandes Investment, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
New York Times Company is a diversified media company including newspapers television and radio stations magazines electronic information and publishing Internet businesses and forest products investments. The Company currently classifies its businesses into the following segments: Newspapers Broadcasting Magazines and Forest Product Investments and Other Joing Ventures. The New York Times Company has a market cap of $1.17 billion; its shares were traded at around $8.1 with a P/E ratio of 90 and P/S ratio of 0.4.
Highlight of Business Operations:
On July 14, 2009, we entered into an agreement with subsidiaries of Univision Radio Inc. and with WNYC Radio for the sale of WQXR-FM, our New York City radio station, for a total of $45 million. Univision Radio will pay us $33.5 million to exchange the FCC 105.9 FM broadcast license and transmitting equipment for our license, equipment and stronger signal at 96.3 FM. At the same time, WNYC Radio will purchase the FCC license for 105.9 FM, all related transmitting equipment and WQXRs call letters and Web site from us for $11.5 million. Univision Radio will retain the WCAA call letters. The transaction is expected to close in the second half of the year after FCC approval has been granted. We plan to use the proceeds from the sale to pay outstanding debt.On April 8, 2009, we settled the redemption of all $250.0 million outstanding aggregate principal amount of our 4.5% notes due March 15, 2010, that had been called for redemption on March 9, 2009. The redemption price of approximately $260 million included a $9.3 million premium and was computed under the terms of the notes as the present value of the scheduled payments of principal and unpaid interest, plus accrued interest to the redemption settlement date.
As of June 28, 2009, total costs recorded to close City & Suburban were approximately $59 million, of which approximately $26 million was recorded in the first six months of 2009 and approximately $33 million was recorded in 2008 (principally consisting of $29 million in severance costs). In the first six months of 2009, the costs included a $16.4 million estimated loss for the present value of remaining rental payments under leases, for property previously occupied by City & Suburban, in excess of estimated rental income under potential subleases, recorded in the first quarter of 2009, and a $6.6 million estimated charge for a pension withdrawal obligation under a multi-employer pension plan recorded in the second quarter of 2009. While the majority of costs to close City & Suburban have been recognized as of June 28, 2009, the loss on abandoned leases may be adjusted as we enter into subleases or other transactions to utilize or exit the vacant properties, and the pension charge may be adjusted when we receive a final assessment regarding the actual pension withdrawal obligation to be paid.
The effect of the closure on our second-quarter 2009 results was a decrease in other revenues (from the elimination of the delivery of third-party publications) of approximately $18 million, circulation revenues (from the sale of The Times to wholesale distributors rather than retailers) of approximately $3 million and operating costs of approximately $29 million.
As of June 28, 2009, total costs recorded to close the Billerica facility were approximately $29 million, of which approximately $25 million was recorded in the first half of 2009 (approximately $13 million in severance, approximately $6 million in accelerated depreciation and approximately $6 million in moving costs) and approximately $4 million was recorded in 2008 (for accelerated depreciation). Additional moving costs of approximately $1 million are expected to be incurred in the second half of 2009.
We recognized severance costs of $1.7 million in the second quarter of 2009 and $26.7 million in the first six months of 2009. In the second quarter and first six months of 2008, we recognized severance costs of $27.6 million and $38.8 million, respectively. In the first six months of 2009, most of the costs were recognized at the New England Media Group, which is part of the News Media Group, primarily as part of the consolidation of the Globes printing facility in Billerica, Mass., into our Boston, Mass., facility. These costs are primarily recorded in Selling, general and administrative costs in our Condensed Consolidated Statements of Operations.
Read the The complete ReportNYT is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Brian Rogers of T Rowe Price Equity Income Fund, Charles Brandes of Brandes Investment, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
