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N.Y. Times sees profit drop, vows cost controls (Schadenfreude!)
Reuters ^ | July 15, 2003 | Michele Gershberg

Posted on 07/15/2003 6:29:25 PM PDT by Timesink

UPDATE 1-N.Y. Times sees profit drop, vows cost controls

Tue July 15, 2003 08:43 PM ET
(Adds closing share price)

By Michele Gershberg

NEW YORK (Reuters) - The New York Times Co. said Tuesday second-quarter net profit fell 8 percent as advertising slumped at its newspapers during the Iraq war, but the company pledged more stringent cost controls.

The results followed the appointment on Monday of Bill Keller as executive editor at The New York Times newspaper, whose reputation was rocked by a plagiarism scandal. Company executives have said that the affair, though a blow to the Times's prestige, would not hurt its business.

The company, which also publishes the Boston Globe and International Herald Tribune, said earnings fell to $72.8 million, or 47 cents per share, in the second quarter, from $78.8 million, or 51 cents.

Earnings came in a penny above the average estimate of 46 cents per share, according to tracking firm Reuters Research, a unit of Reuters Group Plc.

New York Times Co. Chief Executive Russell Lewis said Tuesday the company expected "an improved ad environment" later this year, but would carry out capital expenditures more slowly than planned and cut other costs to bring back profit growth.

"Accordingly, we have revised our full-year guidance to incorporate a lower level of expenses and a significantly reduced level of capital expenditures," Lewis said.

The Times maintained its outlook that advertising revenues for its newspaper group, excluding the International Herald Tribune, would grow between 3 percent and 5 percent for all of 2003, but revised annual expenditure growth down to a 3.5 percent to 4.5 percent rise from a previous 4.5 percent to 5.5 percent increase.

The company will make a $50 million reduction in capital expenditures for projects now postponed until the economy improves, company officials said during a conference call. The Times said it expected annual expenses, including the International Herald Tribune, to rise 6.5 percent to 7.5 percent.

The Times said it expected to meet earlier estimates of low to middle single-digit EPS growth for the year.

James Marsh, an analyst at SG Cowen Securities, said the Times posted slightly softer revenues than he had expected, but noted the newspaper group's efforts to cut costs aggressively.

"I think part of that (softer revenue) is driven by their geographical diversity ... It has a lot of exposure to the Northeast, which we keep hearing is a weaker ad market than the rest of the U.S. I think that will eventually turn, but not in the near term," Marsh said. He rates the stock a "hold."

Total revenues for the media company rose to $801.9 million in the quarter from $772.2 million a year earlier. The revenue results were helped in part by the inclusion of the International Herald Tribune in newspaper group results this year. In January, the Times purchased the 50 percent of the paper it did not already own.

Advertising slumped in March and April during the U.S.-led war in Iraq, company officials said. They said help-wanted advertising declined 21 percent during the quarter and travel advertisements suffered as the SARS respiratory disease scare hit Asia.

Advertising revenues grew 3.4 percent and circulation revenues rose 4.4 percent in the quarter, the company said. Total costs rose 6.6 percent, felled by a 6.3 percent rise in newsprint prices.

New York Times Co. shares closed 54 cents higher at $44.45 on Tuesday on the New York Stock Exchange.

Reuters/VNU


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Extended News; News/Current Events
KEYWORDS: falsification; howellraines; jaysonblair; mediafraud; medialies; newyorktimes; nyt; plagiarism; schadenfreude; thenewyorktimes
"More stringent cost controls" = "Firing qualified white people," most likely.
1 posted on 07/15/2003 6:29:27 PM PDT by Timesink
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To: All
How about the new highway named for Clinton in his home stste of Arkansas? It's a little crooked, and has a long yellow streak down the center. Be careful if you drive on it, it's a little slick.

Manufacturers announced today that they will be stocking America's shelves this week with "Clinton Soup, to honor one of the nation's most distingushed men". It consists primariy of a weenie in hot water.

Free Republic
Your donations keep us laughing at liberals

2 posted on 07/15/2003 6:30:19 PM PDT by Support Free Republic (Your support keeps Free Republic going strong!)
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NYTCO Press Release:

The New York Times Company Reports Second-Quarter Results

NEW YORK, Jul 15, 2003 (BUSINESS WIRE) -- The New York Times Company announced today that second-quarter diluted earnings per share were $.47, compared with $.51 in the 2002 second quarter, and net income was $72.8 million compared with $78.8 million in the second quarter last year.

"Our second-quarter financial results were dampened by the war-related advertising weakness that we experienced early in the quarter," said Russell T. Lewis, president and CEO. "Our advertising results, however, improved considerably toward the end of the quarter with our Newspaper Group experiencing a 4.6 percent year-over-year gain in June ad revenues.

"And, while we expect an improved ad environment in the back-half of the year, we are not relying exclusively on it. To better assure that our financial performance for the second half of the year returns to solid year-over-year gains, we are also taking strong action on the cost side of our business.

"Accordingly, we have revised our full-year guidance to incorporate a lower level of expenses and a significantly reduced level of capital expenditures. In the past we've said that we would adjust the cost side of our enterprise to match the revenue picture. The war and SARS took a significant bite out of our second-quarter ad revenues and we're responding, as we said we would, by significantly reducing the cost side of the business.

"For the year, we continue to believe that we will be able to achieve a full-year EPS growth rate in the low- to mid-single digits."

Earnings per share and net income noted above include the following items:

	   --  pre-tax income of $1.3 million ($0.8 million after tax, or
        less than $.01 per share) in the second quarters of 2003 and
        2002 related to a non-compete agreement and


	   --  a pre-tax charge of $3.0 million ($1.8 million after tax, or
        $.01 per share) in the second quarter of 2002 related to work
        force reductions.

Revenues

In January, the Company purchased the remaining 50 percent interest in the International Herald Tribune (IHT) which it did not previously own. Beginning in 2003, results for the IHT are included in the Newspaper Group.

Total revenues for the Company rose 3.8 percent to $801.9 million in the second quarter from $772.2 million in the 2002 second quarter. Advertising revenues (66 percent of total revenues) grew 3.4 percent and circulation revenues (28 percent of total revenues) rose 4.4 percent in the second quarter compared with the same period in 2002. Excluding the IHT, total revenues increased 1.5 percent, advertising revenues rose 2.0 percent and circulation revenues were on a par compared with the second quarter of 2002.

Costs and Expenses

Total costs and expenses in the second quarter increased 6.6 percent to $671.8 million from $630.5 million in the 2002 second quarter. Excluding the IHT, total costs and expenses in the second quarter rose 3.1 percent compared with the second quarter of 2002, mainly because of higher benefits and compensation costs as well as an increase in newsprint expense.

Newsprint expense increased 6.3 percent in the second quarter compared with the 2002 second quarter. Excluding the IHT, newsprint expense rose 4.2 percent, resulting from an increase in the Company's average cost per ton of newsprint of 8.1 percent partially offset by a decrease in consumption of 3.9 percent.

Operating Profit

Operating profit in the second quarter decreased 8.2 percent to $130.1 million from $141.7 million in the second quarter of 2002, primarily because of higher costs and expenses, partially offset by an increase in advertising revenues.

EBITDA

EBITDA (earnings before interest, taxes, depreciation and amortization and other non-operating items) in the second quarter declined 6.3 percent to $166.4 million from $177.5 million in the 2002 second quarter. The decrease was primarily because of higher costs and expenses, partially offset by an increase in advertising revenues.

The Company believes that EBITDA, a non-GAAP financial measure, is a useful metric for evaluating its financial performance because of its focus on the Company's results from operations before depreciation and amortization. EBITDA is a common alternative measure of performance used by investors, financial analysts and rating agencies. These groups use EBITDA, along with other measures, to estimate the value of a company and evaluate a company's ability to meet its debt service requirements. A reconciliation of EBITDA to net income, as well as additional information concerning EBITDA, is included in the exhibits to this release.

Newspaper Group

Total Newspaper Group revenues grew 3.8 percent in the second quarter to $745.9 million from $718.9 million in the prior-year quarter. Advertising revenues increased 3.3 percent and circulation revenues increased 4.4 percent in the second quarter compared with the same period in 2002. Excluding the IHT, total revenues rose 1.3 percent, advertising revenues rose 1.7 percent and circulation revenues were on a par compared with the second quarter of 2002.

Operating profit for the Newspaper Group decreased 7.5 percent to $126.6 million in the second quarter from $136.8 million in the 2002 second quarter, mainly because of higher benefits and compensation costs as well as an increase in newsprint expense, partially offset by an increase in advertising revenues.

Broadcast Group

Broadcast Group revenues declined 2.7 percent in the second quarter to $37.9 million from $39.0 million in the same period in 2002. Operating profit decreased 21.1 percent in the second quarter to $10.3 million from $13.0 million in the 2002 second quarter, primarily due to lower advertising revenues related to decreased political advertising, coupled with higher benefit, compensation and promotion costs.

New York Times Digital

Revenues for New York Times Digital grew 21.7 percent in the second quarter to $21.6 million from $17.8 million in the 2002 second quarter, and operating profit increased to a record $4.3 million from $1.9 million, primarily due to higher advertising revenues resulting from increased volume.

Joint Ventures

Income from joint ventures totaled $0.6 million in the second quarter compared with a loss of $2.3 million in the 2002 second quarter. Beginning in 2003, the operating results of the IHT are no longer included in net income/(loss) from joint ventures.

Income Taxes

In 2003 the Company's effective income tax rate for the second quarter was 39.5 percent compared with 39.0 percent for the second quarter of 2002.

Interest Expense-net, Shares, Cash and Total Debt

Interest expense-net, in the second quarter of $11.5 million was nearly equal to $11.6 million in the second quarter of 2002. The Company had higher interest capitalized related to capital expenditures, partially offset by an increase in interest expense in the second quarter compared with the 2002 second quarter. While interest rates were lower, the Company had a higher level of debt outstanding.

In the second quarter, the Company repurchased 1.2 million shares at a cost of $54.5 million. Approximately $185.4 million remains from the Company's current share repurchase authorization at the end of the second quarter. Class A and Class B common shares outstanding at the end of the quarter totaled 150.3 million shares.

As of June 29, 2003, the Company's cash and cash equivalents were $33.4 million and total debt was $968.6 million.

2003 Guidance based on GAAP


Item (a)                               Previous 2003      New 2003
                                         Guidance         Guidance
----------------------------------------------------------------------
Newspaper Group Advertising Revenues    Up 3 to 5%      Up 3 to  5%
----------------------------------------------------------------------
Newspaper Group Circulation Revenues    Up 3 to 5%      Up 3 to  5%
----------------------------------------------------------------------
Total Company Expenses (b)            Up 4.5 to 5.5%   Up 3.5 to 4.5%
----------------------------------------------------------------------
Depreciation & Amortization            $152 to $157     $148 to $153
                                         million          million
----------------------------------------------------------------------
Capital Expenditures (c)               $210 to $240     $160 to $190
                                         million          million
----------------------------------------------------------------------
Income/(loss) from Joint Ventures       A loss of        A loss of
                                         $7 to $11        $7 to $11
                                         million          million
----------------------------------------------------------------------
Interest Expense                       $45 to $49       $45 to $49
                                         million          million
----------------------------------------------------------------------
Tax Rate                                  39.5%            39.5%
----------------------------------------------------------------------
Diluted Earnings Per Share Growth        Low- to          Low- to
                                        mid-single       mid-single
                                          digits           digits
----------------------------------------------------------------------


(a) 2003 guidance excludes the IHT.

(b) Total Company expenses including the IHT are expected to increase 6.5 to 7.5% in 2003.

(c) Includes costs of $75 to $80 million in 2003 related to the Company's interest in a new headquarters in New York City, which the Company expects to occupy in 2006.

Conference Call Information

The conference call will be held on Tuesday, July 15, at 11:30 a.m. (E.T.) The live webcast will be accessible through the Investors section of the Company's Web site, www.nytco.com, and other Web services including CCBN's Individual Investor Center and CCBN's StreetEvents for institutional investors.

To access the call, dial 800-314-7867 (in the United States) and 719-867-0640 (international callers) at least 10 minutes prior to the scheduled start of the call. In addition, a replay of the call will be available online at www.nytco.com. A digital replay of the call will also be available at 888-203-1112 (in the United States) and 719-457-0820 (international callers) beginning approximately two hours after the call until 5 p.m. (E.T.) on July 17. The access code is 488386.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by the Company's various markets and material increases in newsprint prices. 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 period ended December 29, 2002. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

The New York Times Company (NYSE: NYT), a leading media company with 2002 revenues of $3.1 billion, includes The New York Times, The International Herald Tribune, The Boston Globe, 16 other newspapers, eight network-affiliated television stations, two New York City radio stations and more than 40 Web sites, including NYTimes.com and Boston.com. For the third consecutive year, the Company was ranked No. 1 in the publishing industry in Fortune's 2002 list of America's Most Admired Companies. In 2003 the Company was named by Fortune as one of the 100 Best Companies to Work For. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.

Attachments: Condensed Consolidated Statements of Income

Segment and Statistical Information

Newspaper Group Revenues by Division

Footnotes



                      THE NEW YORK TIMES COMPANY
             CONDENSED CONSOLIDATED STATEMENTS OF INCOME

   Statements of Income are prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP).
       (Dollars and shares in thousands, except per share data)

                                                ----------------------
                                                    Second Quarter
                                                ----------------------
                                                      2003       2002
                                                ----------------------
Revenues
   Advertising                                    $530,564   $512,947
   Circulation                                     221,304    211,899
   Other (a)                                        50,023     47,365
                                                ----------------------
      Total                                        801,891    772,211

Costs and expenses                                 671,834    630,483
                                                ----------------------

Operating profit                                   130,057    141,728

Net income/(loss) from joint ventures                  555     (2,262)

Interest expense - net                              11,484     11,600

Other income (b)                                     1,250      1,250
                                                ----------------------

Income before income taxes                         120,378    129,116

Income taxes                                        47,549     50,355
                                                ----------------------
Net Income                                         $72,829    $78,761
                                                ======================

Average Number of Common Shares:
   Basic                                           150,730    151,789
   Diluted                                         153,403    155,555

Basic Earnings Per Share                            $ 0.48     $ 0.52
                                                ======================

Diluted Earnings Per Share                          $ 0.47     $ 0.51
                                                ======================

Dividends Per Share                                 $0.145     $0.135
                                                ======================

                                                ----------------------
                                                      Six Months
                                                ----------------------
                                                      2003       2002
                                                ----------------------
Revenues
   Advertising                                  $1,043,718 $1,001,594
   Circulation                                     442,305    413,154
   Other (a)                                        99,608     94,560
                                                ----------------------
      Total                                      1,585,631  1,509,308

Costs and expenses                               1,333,279  1,269,049
                                                ----------------------

Operating profit                                   252,352    240,259

Net income/(loss) from joint ventures               (5,670)    (2,193)

Interest expense - net                              23,286     22,155

Other income (b)                                    10,777      2,500
                                                ----------------------

Income before income taxes                         234,173    218,411

Income taxes                                        92,498     85,180
                                                ----------------------
Net Income                                        $141,675   $133,231
                                                ======================

Average Number of Common Shares:
   Basic                                           151,287    151,446
   Diluted                                         154,001    154,883

Basic Earnings Per Share                            $ 0.94     $ 0.88
                                                ======================

Diluted Earnings Per Share                          $ 0.92     $ 0.86
                                                ======================

Dividends Per Share                                 $0.280     $0.260
                                                ======================

 See footnotes page for additional information.





                      THE NEW YORK TIMES COMPANY
                  SEGMENT AND STATISTICAL INFORMATION

   Revenues, Operating Profit (Loss) and Depreciation & Amortization
                 are prepared in accordance with GAAP.
                   (Dollars and Copies in Thousands)

                          -------------------------------------
                                  Second Quarter 2003
                          -------------------------------------
                                        Operating    Depreciation
                            Revenues    Profit       & Amortization
                                         (Loss)
                          --------------------------------------------
Newspapers                  $745,915      $126,575     $29,352
Broadcast                     37,926        10,289       2,325
New York Times Digital        21,626         4,285       1,299
Intersegment
 eliminations (c)             (3,576)            -           -
Unallocated Corporate
 expenses                          -       (11,092)      2,802
                          -------------------------------------
Total                       $801,891      $130,057     $35,778
                          =====================================

                          -------------------------------------
                             Six Months Ended June 29, 2003
                          -------------------------------------
                                         Operating   Depreciation
                            Revenues     Profit      & Amortization
                                         (Loss)
                          --------------------------------------------
Newspapers                $1,480,966      $252,175     $60,315
Broadcast                     70,131        15,251       4,563
New York Times Digital        41,251         7,481       2,832
Intersegment
 eliminations (c)             (6,717)            -           -
Unallocated Corporate
 expenses                          -       (22,555)      5,597
                          -------------------------------------
Total                     $1,585,631      $252,352     $73,307
                          =====================================

                          -------------------------------------
                                   Second Quarter 2002
                          -------------------------------------
                                         Operating   Depreciation
                            Revenues     Profit      & Amortization
                                         (Loss)
                          --------------------------------------------
Newspapers                  $718,880      $136,806     $31,603
Broadcast                     38,977        13,034       1,943
New York Times Digital        17,772         1,918       2,045
Intersegment
 eliminations (c)             (3,418)            -           -
Unallocated Corporate
 expenses                          -       (10,030)      2,468
                          -------------------------------------
Total                       $772,211      $141,728     $38,059
                          =====================================

                          -------------------------------------
                             Six Months Ended June 30, 2002
                          -------------------------------------
                                         Operating   Depreciation
                            Revenues     Profit      & Amortization
                                          (Loss)
                          --------------------------------------------
Newspapers                $1,410,348      $239,631     $63,948
Broadcast                     70,936        19,442       3,889
New York Times Digital        33,934         2,099       4,009
Intersegment
 eliminations (c)             (5,910)            -           -
Unallocated Corporate
 expenses                          -       (20,913)      4,973
                          -------------------------------------
Total                     $1,509,308      $240,259     $76,819
                          =====================================

                          --------------------------------------------
                                       Second Quarter 2003
                          --------------------------------------------
                            Weekday/    % Change     Sunday   % Change
                              Daily          vs.                   vs.
                                            2002                  2002
                          --------------------------------------------
Average Net Paid
 Circulation (d)
The New York Times           1,087.9        -3.6%    1,628.5    -3.1%
The International Herald
 Tribune                       220.7         N/A         N/A     N/A
New England Newspaper
 Group                         553.4        -2.4%      818.2    -2.3%
Regional Newspapers            600.3        -0.3%      651.8    -1.2%


                          --------------------------------------------
                              Six Months Ended June 29, 2003
                          --------------------------------------------
                            Weekday/    % Change     Sunday   % Change
                              Daily          vs.                   vs.
                                            2002                  2002
                          --------------------------------------------
Average Net Paid
 Circulation (d)
The New York Times           1,106.2        -3.5%    1,650.3    -2.7%
The International Herald
 Tribune                       223.0         N/A         N/A     N/A
New England Newspaper
 Group                         546.2        -4.1%      809.4    -3.0%
Regional Newspapers            625.5        -0.4%      682.8    -1.0%


 See footnotes page for additional information.




                      THE NEW YORK TIMES COMPANY
                 NEWSPAPER GROUP REVENUES BY DIVISION

            Revenues are prepared in accordance with GAAP.
                        (Dollars in Thousands)


                                                   -------------------
                                                         2003
                                                   -------------------
                                                      Qtr 1       %
                                                                Change
                                                                 vs.
                                                                 2002
                                                   -------------------

 The New York Times
 Advertising                                         $276,737     4.0%
 Circulation                                          145,978     8.0%
 Other                                                 31,528     2.1%
                                                   -----------
     Subtotal                                        $454,243     5.1%
                                                   -----------

 International Herald Tribune
 Advertising                                          $ 8,213     N/A
 Circulation                                            9,500     N/A
 Other                                                    349     N/A
                                                   -----------
     Subtotal                                         $18,062     N/A
                                                   -----------

 Total New York Times
 Advertising                                         $284,950     7.1%
 Circulation                                          155,478    15.0%
 Other                                                 31,877     3.2%
                                                   -----------
     Total                                           $472,305     9.3%
                                                   -----------

 New England Newspaper Group
 Advertising                                         $104,282     0.7%
 Circulation                                           42,128    -2.1%
 Other                                                  8,206    18.8%
                                                   -----------
     Total                                           $154,616     0.7%
                                                   -----------

 Regional Newspapers
 Advertising                                         $ 80,989     2.4%
 Circulation                                           23,395     1.6%
 Other                                                  3,746     1.4%
                                                   -----------
     Total                                           $108,130     2.2%
                                                   -----------

 Total Newspaper Group Excluding
     International Herald Tribune
 Advertising                                         $462,008     3.0%
 Circulation                                          211,501     5.1%
 Other                                                 43,480     4.8%
                                                   -----------
     Total                                           $716,989     3.7%
                                                   ===========

 Total Newspaper Group
 Advertising                                         $470,221     4.8%
 Circulation                                          221,001     9.8%
 Other (a)                                             43,829     5.6%
                                                   -----------
     Total                                           $735,051     6.3%
                                                   ===========

                                                   -------------------
                                                         2003
                                                   -------------------
                                                      Qtr 2       %
                                                                Change
                                                                 vs.
                                                                 2002
                                                   -------------------

 The New York Times
 Advertising                                         $273,604     1.4%
 Circulation                                          146,895     0.2%
 Other                                                 32,594     0.6%
                                                   -----------
     Subtotal                                        $453,093     1.0%
                                                   -----------

 International Herald Tribune
 Advertising                                          $ 7,611     N/A
 Circulation                                            9,869     N/A
 Other                                                    387     N/A
                                                   -----------
     Subtotal                                         $17,867     N/A
                                                   -----------

 Total New York Times
 Advertising                                         $281,215     4.2%
 Circulation                                          156,764     6.9%
 Other                                                 32,981     1.8%
                                                   -----------
     Total                                           $470,960     4.9%
                                                   -----------

 New England Newspaper Group
 Advertising                                         $116,013     2.6%
 Circulation                                           42,949    -1.7%
 Other                                                  8,056    21.0%
                                                   -----------
     Total                                           $167,018     2.2%
                                                   -----------

 Regional Newspapers
 Advertising                                         $ 82,656     1.2%
 Circulation                                           21,591    -0.1%
 Other                                                  3,690     6.6%
                                                   -----------
     Total                                           $107,937     1.1%
                                                   -----------

 Total Newspaper Group Excluding
     International Herald Tribune
 Advertising                                         $472,273     1.7%
 Circulation                                          211,435    -0.2%
 Other                                                 44,340     4.3%
                                                   -----------
     Total                                           $728,048     1.3%
                                                   ===========

 Total Newspaper Group
 Advertising                                         $479,884     3.3%
 Circulation                                          221,304     4.4%
 Other (a)                                             44,727     5.2%
                                                   -----------
     Total                                           $745,915     3.8%
                                                   ===========

                                                   -------------------
                                                         2003
                                                   -------------------
                                                    Six Months     %
                                                                Change
                                                                 vs.
                                                                 2002
                                                   -------------------

 The New York Times
 Advertising                                         $550,341     2.7%
 Circulation                                          292,873     3.9%
 Other                                                 64,122     1.3%
                                                   -----------
     Subtotal                                        $907,336     3.0%
                                                   -----------

 International Herald Tribune
 Advertising                                          $15,824     N/A
 Circulation                                           19,369     N/A
 Other                                                    736     N/A
                                                   -----------
     Subtotal                                         $35,929     N/A
                                                   -----------

 Total New York Times
 Advertising                                         $566,165     5.7%
 Circulation                                          312,242    10.8%
 Other                                                 64,858     2.5%
                                                   -----------
     Total                                           $943,265     7.1%
                                                   -----------

 New England Newspaper Group
 Advertising                                         $220,295     1.7%
 Circulation                                           85,077    -1.9%
 Other                                                 16,262    19.9%
                                                   -----------
     Total                                           $321,634     1.5%
                                                   ===========

 Regional Newspapers
 Advertising                                         $163,645     1.8%
 Circulation                                           44,986     0.8%
 Other                                                  7,436     3.9%
                                                   -----------
     Total                                           $216,067     1.7%
                                                   ===========

 Total Newspaper Group Excluding
     International Herald Tribune
 Advertising                                         $934,281     2.3%
 Circulation                                          422,936     2.4%
 Other                                                 87,820     4.5%
                                                   -----------
     Total                                         $1,445,037     2.5%
                                                   ===========

 Total Newspaper Group
 Advertising                                         $950,105     4.0%
 Circulation                                          442,305     7.1%
 Other (a)                                             88,556     5.4%
                                                   -----------
     Total                                         $1,480,966     5.0%
                                                   ===========


 See footnotes page for additional information.





                      THE NEW YORK TIMES COMPANY

                               FOOTNOTES

(a) Other revenue consists primarily of revenue from wholesale
    delivery operations and news services.

(b) Other income in the second quarters of 2003 and 2002 consists of
    income ($1.3 million) related to a non-compete agreement. Other
    income in the first six months of 2003 consists of income ($8.3
    million) related to a credit for advertising issued by the
    Company, which was not used in the allotted time by the
    advertiser, and income ($2.5 million) related to a non-compete
    agreement. Other income in the first six months of 2002 consists
    of income ($2.5 million) related to a non-compete agreement.

(c) Intersegment eliminations primarily include license fees between
    NYTD and other segments.

(d) Average net paid circulation is provided following the guidelines
    of the Audit Bureau of Circulations, an independent agency that
    audits the circulation of most U.S. newspapers and magazines.

                Reconciliation of EBITDA to Net Income

EBITDA, which is reconciled to net income below, is defined as
earnings before interest, taxes, depreciation and amortization and
other non-operating items. For comparability, EBITDA in the prior
year has been restated to conform with the 2003 presentation. The
EBITDA presented may not be comparable to similarly titled
measures reported by other companies. The Company believes that
EBITDA, while providing useful information, should not be
considered in isolation or as an alternative to other financial
measures determined under GAAP.



                                    Second Quarter     Six Months
                                  ----------------- -----------------
                                    (In millions)     (In millions)
                                  ----------------- -----------------
                                    2003     2002     2003     2002
                                  ----------------- -----------------

 EBITDA                            $166.4   $177.5   $320.0   $314.9
 Depreciation and amortization      (35.8)   (38.1)   (73.3)   (76.8)
 Interest expense - net             (11.5)   (11.6)   (23.3)   (22.2)
 Other income                         1.3      1.3     10.8      2.5
 Income taxes                       (47.6)   (50.3)   (92.5)   (85.2)
                                  -------- -------- -------- --------
 Net income                        $ 72.8   $ 78.8   $141.7   $133.2
                                  ======== ======== ======== ========

SOURCE: The New York Times Company

The New York Times Company Catherine J. Mathis, 212-556-1981 E-mail: mathis@nytimes.com This press release can be downloaded from www.nytco.com

3 posted on 07/15/2003 6:32:06 PM PDT by Timesink
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To: Timesink
The song "What a Wonderful World" just popped into my head. :-)
4 posted on 07/15/2003 6:32:27 PM PDT by Paul Atreides
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Another NYTCO press release:

The New York Times Company Reports June Ad Revenue and Volume for Its Newspaper Group

NEW YORK, Jul 15, 2003 (BUSINESS WIRE) -- The New York Times Company announced today that advertising revenue for the Company's Newspaper Group in June 2003 increased 4.6% compared with the results for the same month last year.

Including the results of the International Herald Tribune (IHT), which was acquired by the Company on January 1, 2003, advertising revenue for the Newspaper Group rose 6.6% for the month.

    Advertising results for June were as follows:

    --  The New York Times

Advertising revenue for The New York Times, excluding the IHT, increased 3.5% for June 2003 compared with June 2002. National advertising revenue rose on strength in transportation and telecommunications advertising. Retail advertising was on a par with last year as growth in department store and home manufacturer store advertising offset softness in the fine arts and mass market/chain store categories. Classified advertising revenue decreased due to weakness in help wanted, which offset growth in automotive and real estate advertising.

-- New England Newspaper Group

Advertising revenue for the New England Newspaper Group increased 8.9% for June 2003 compared with June 2002. National advertising revenue was unusually strong with increases in most major categories including travel, telecommunications, technology, entertainment and national automotive advertising. Retail advertising revenue increased because of strength in sporting goods and home-related store advertising. Preprint revenue rose due to increased volume in retail preprints. Classified advertising revenue increased as gains in real estate offset continued softness in the help-wanted category.

-- Regional Newspaper Group

Advertising revenue for the Regional Newspaper Group increased 2.1% for June 2003 compared with June 2002. National advertising revenue increased as a result of additional telecommunications and national automotive advertising. Preprint revenue rose on growth in retail preprints in the drug store, home improvement, department store and discount store categories, and national preprints. Retail advertising revenue declined in large part due to softness in department store, telecommunications and food advertising at the Group's Alabama and California newspapers. Classified advertising revenue decreased as growth in real estate advertising was offset by weakness in automotive and higher rate help-wanted advertising.

The New York Times Company (NYSE: NYT), a leading media company with 2002 revenues of $3.1 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 16 other newspapers, eight network-affiliated television stations, two New York City radio stations and more than 40 Web sites, including NYTimes.com and Boston.com. For the third consecutive year, the Company was ranked No. 1 in the publishing industry in Fortune's 2002 list of America's Most Admired Companies. In 2003 the Company was named by Fortune as one of the 100 Best Companies to Work For. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.

Attachments: June 2003 Advertising Revenue
             June 2003 Advertising Volume


                      THE NEW YORK TIMES COMPANY
                     2003 ADVERTISING REVENUE (a)
                         JUNE AND YEAR TO DATE

---------------------------------------------------------------------
Newspaper Group
Total Advertising Revenue
($ 000's)

                                June                Year to Date
                  ----------------------------------------------------
                                        %                         %
                                      ------                    ------
                      2003      2002  Change    2003      2002  Change
                  --------- --------- ------ -------- --------- ------
The New York
 Times             $84,535   $81,668   +3.5 $550,341  $535,807   +2.7
New England
 Newspapers(b)      37,228    34,184   +8.9  220,295   216,629   +1.7
Regional
 Newspapers         24,464    23,972   +2.1  163,645   160,754   +1.8
                  --------- ---------       --------- ---------
Sub-Total         $146,228  $139,824   +4.6 $934,281  $913,190   +2.3
                  --------- ---------       --------- ---------
International
 Herald Tribune(c)   2,780       N/A    N/A   15,824       N/A    N/A
Total Newspaper
 Group            $149,007  $139,824   +6.6 $950,105  $913,190   +4.0
                  ========= =========       ========= =========

---------------------------------------------------------------------

    (a) Numbers may not add due to rounding.

    (b) The Boston Globe and the Worcester Telegram & Gazette.

    (c) On January 1, 2003, The Times Company, which had owned 50% of
        the IHT, became its sole owner. Accordingly, advertising
        revenue of the IHT is included in the results of the Newspaper
        Group. Based on full-year 2002 unaudited financial statements,
        IHT total revenues were approximately $80 million, about half
        of which were advertising revenue.
                      THE NEW YORK TIMES COMPANY
                     2003 ADVERTISING REVENUE (a)
                            SECOND QUARTER

---------------------------------------------------------------------
Newspaper Group
Total Advertising Revenue
 ($ 000's)
                                                  Second Quarter
                                            --------------------------
                                                                   %
                                                                ------
                                                2003      2002  Change
                                            --------- --------- ------
 The New York Times                         $273,604  $269,773   +1.4
 New England Newspapers(b)                   116,013   113,052   +2.6
 Regional Newspapers                          82,656    81,649   +1.2
                                            --------- ---------
 Sub-Total                                  $472,273  $464,474   +1.7
                                            --------- ---------
 International Herald Tribune(c)               7,611       N/A    N/A
 Total Newspaper Group                      $479,884  $464,474   +3.3
                                            ========= =========

---------------------------------------------------------------------

    (a) Numbers may not add due to rounding.

    (b) The Boston Globe and the Worcester Telegram & Gazette.

    (c) On January 1, 2003, The Times Company, which had owned 50% of
        the IHT, became its sole owner. Accordingly, advertising
        revenue of the IHT is included in the results of the Newspaper
        Group. Based on full-year 2002 unaudited financial statements,
        IHT total revenues were approximately $80 million, about half
        of which were advertising revenue.

                      THE NEW YORK TIMES COMPANY
                      2003 ADVERTISING VOLUME(1)
        (Inches in thousands, Preprints in thousands of copies)
                         JUNE AND YEAR TO DATE

---------------------------------------------------------------------
The New York Times(2)

                              June                   Year to Date
 ---------------------------------------------------------------------
                       2003    2002 % Change    2003    2002 % Change
                    --------------------------------------------------
 Retail                27.9    30.4    -8.3    187.0   200.5     -6.7
 National              97.3   101.7    -4.4    651.9   663.9     -1.8
 Classified            57.2    59.0    -3.0    333.1   359.9     -7.4
                    -------- -------         ------- --------
 Total ROP            182.4   191.1    -4.6  1,172.0 1,224.3     -4.3
                    -------- -------         ------- --------

 Part Run/Zoned        64.5    63.0    +2.4    421.7   447.7     -5.8
                    -------- -------         ------- --------
 Total                246.9   254.1    -2.8  1,593.8 1,672.0     -4.7
                    ======== =======         ======= ========

 Preprints           34,147  38,638   -11.6  241,007 241,450     -0.2
 ---------------------------------------------------------------------

 ---------------------------------------------------------------------
 New England Newspaper Group(3)

                              June                   Year to Date
 ---------------------------------------------------------------------
                       2003    2002 % Change    2003    2002 % Change
                    --------------------------------------------------
 Retail                59.6    64.7    -7.7    370.9   396.2     -6.4
 National              64.7    60.7    +6.6    374.4   402.8     -7.1
 Classified           126.4   129.6    -2.5    787.9   806.4     -2.3
                    -------- -------         ------- --------
 Total ROP            250.7   255.0    -1.7  1,533.2 1,605.4     -4.5
                    -------- -------         ------- --------

 Part Run/Zoned       106.3    85.3   +24.7    630.1   501.2    +25.7
                    -------- -------         ------- --------
 Total                357.0   340.3    +4.9  2,163.3 2,106.6     +2.7
                    ======== =======         ======= ========

 Preprints           76,448  75,486    +1.3  506,407 461,558     +9.7
 ---------------------------------------------------------------------

 ---------------------------------------------------------------------
 Regional Newspaper Group

                              June                   Year to Date
 ---------------------------------------------------------------------
                       2003    2002 % Change    2003    2002 % Change
                    --------------------------------------------------
 Retail               400.6   419.0    -4.4  2,653.6 2,770.1     -4.2
 National              25.1    20.2   +24.2    160.8   114.8    +40.0
 Classified           571.4   565.8    +1.0  3,638.1 3,544.2     +2.6
 Legal                 23.5    23.8    -1.3    223.3   244.2     -8.6
                    ------- --------         ------- --------
 Total              1,020.6 1,028.8    -0.8  6,675.8 6,673.3      0.0
                    ======= ========         ======= ========

 Preprints           82,000  78,841    +4.0  590,532 537,355     +9.9
 ---------------------------------------------------------------------

International Herald Tribune (IHT) (4): For June, linage was 9,181
inches and for the YTD, linage was 54,776 inches.
                      THE NEW YORK TIMES COMPANY
                      2003 ADVERTISING VOLUME(1)
        (Inches in thousands, Preprints in thousands of copies)
                            SECOND QUARTER

----------------------------------------------------------------------
The New York Times(2)
                                                  Second Quarter
----------------------------------------------------------------------
                                                2003    2002 % Change
                                             -------------------------
 Retail                                         99.4   107.6     -7.7
 National                                      316.4   330.7     -4.3
 Classified                                    173.1   185.8     -6.8
                                             -------- -------
 Total ROP                                     588.9   624.1     -5.6
                                             -------- -------

 Part Run/Zoned                                210.5   218.2     -3.5
                                             -------- -------
 Total                                         799.4   842.4     -5.1
                                             ======== =======

 Preprints                                   121,625 124,583     -2.4
 ---------------------------------------------------------------------

 ---------------------------------------------------------------------
 New England Newspaper Group(3)
                                                  Second Quarter
 ---------------------------------------------------------------------
                                                2003    2002 % Change
                                             -------------------------
 Retail                                        199.3   214.4     -7.0
 National                                      194.8   198.7     -2.0
 Classified                                    400.3   419.8     -4.7
                                             -------- -------
 Total ROP                                     794.4   832.9     -4.6
                                             -------- -------

 Part Run/Zoned                                350.0   282.8    +23.8
                                             ------- --------
 Total                                       1,144.4 1,115.7     +2.6
                                             ======= ========

 Preprints                                   264,125 254,813     +3.7
 ---------------------------------------------------------------------

 ---------------------------------------------------------------------
 Regional Newspaper Group
                                                  Second Quarter
 ---------------------------------------------------------------------
                                                2003    2002 % Change
                                             -------------------------
 Retail                                      1,328.5 1,393.2     -4.6
 National                                       84.0    60.3    +39.4
 Classified                                  1,853.8 1,847.0     +0.4
 Legal                                         150.7   167.2     -9.9
                                             ------- --------
 Total                                       3,417.0 3,467.7     -1.5
                                             ======= ========

 Preprints                                   292,377 270,797     +8.0
 ---------------------------------------------------------------------

International Herald Tribune (IHT) (4): For the second quarter, linage
was 26,523 inches.
    Footnotes:

    (1) Advertising volume is based on preliminary internal data,
        which may be updated in subsequent reports and may not be
        indicative of advertising revenue or operating profit. Numbers
        may not add due to rounding.

    (2) The New York Times sells advertising by category. It defines
        Retail, National and Classified as follows:

            Retail - Coupon Advertising, Department Stores,
            Fashion/Jewelry Stores, Fine Arts, Home Furnishings
            Stores, Mass Market Stores and Restaurants

            National - Advocacy, Alcoholic Beverages, American
            Fashion, Banking, Books, Corporate, Cosmetics, Direct
            Response, Education, Entertainment, Financial,
            Healthcare/Pharmaceuticals, Home Furnishing Manufacturers,
            Hotels/Resorts, International Country Advertorial,
            International Fashion, Live Entertainment, Media, Packaged
            Goods, Technology Products, Telecommunications and
            Transportation/Travel

            Classified - Automotive, Help Wanted, Real Estate and
            General

        Zoned - The New York Times also offers advertisers multiple
        zoned buying options primarily in its New York metropolitan
        market. This includes Retail, National or Classified
        advertising that is purchased by zip code or by a defined
        geographic area (Connecticut/Westchester, Long Island,
        Manhattan or New Jersey).

    (3) The Boston Globe and the Worcester Telegram & Gazette.

    (4) On January 1, 2003, The New York Times Company, which had
        owned 50% of the IHT, became its sole owner. Accordingly,
        advertising revenue of the IHT is included in the results of
        the Newspaper Group. Based on full-year 2002 unaudited
        financial statements, IHT total revenues were approximately
        $80 million, about half of which were advertising revenue.

This press release can be downloaded from www.nytco.com

SOURCE: The New York Times Company

The New York Times Company
Catherine J. Mathis, 212-556-1981
E-mail: mathis@nytimes.com

5 posted on 07/15/2003 6:35:39 PM PDT by Timesink
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To: martin_fierro; reformed_democrat; Loyalist; =Intervention=; PianoMan; GOPJ; Miss Marple; Tamsey; ...

Schadenfreude

This is the New York Times Schadenfreude Ping List. Freepmail me to be added or dropped.


6 posted on 07/15/2003 6:36:56 PM PDT by Timesink
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To: Timesink
Does anyone know why they have excluded the results from the International Herald Tribune from their figures? I thought they were now sole owners, having forced out the Washington Post.
7 posted on 07/15/2003 6:48:13 PM PDT by Cicero (Marcus Tullius)
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To: Timesink
They could have a pity party and invite Raines and Boyd back for the entertainment.
8 posted on 07/15/2003 6:48:59 PM PDT by OldFriend ((Warpaint at the Ready!))
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To: Timesink
You would think they would be happy over this. Doesn't it mean the United States is moving towards a paperless news source?
9 posted on 07/15/2003 6:50:49 PM PDT by AD from SpringBay
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To: Timesink
And they're already charging $1.00(!) for the daily on the streets of NY. The Sunday is something like $4; I honestly don't know anymore, since I officially boycott them.

God knows what these jerks charge outside the city.

10 posted on 07/15/2003 7:02:05 PM PDT by Jhensy
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To: Timesink
Their circulation numbers dropped but their ads increased? Somehow that doesn't make sense.
11 posted on 07/15/2003 7:05:56 PM PDT by McGavin999 (Don't be a Freeploader, contribute to FreeRepublic!)
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To: McGavin999
Their circulation numbers dropped but their ads increased? Somehow that doesn't make sense.

Yeah, it can actually. With the economy improving over last year, more companies will be placing ads. The Times is the only major broadsheet in NYC, so you have little choice but to advertise with them if you want to reach those demographics.

12 posted on 07/15/2003 7:09:32 PM PDT by Timesink
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To: Jhensy
God knows what these jerks charge outside the city.

The Sunday paper is now $6.75 in some parts of the country, and that's for the crappy National Edition, which is barely half as thick as the real Late Edition.

13 posted on 07/15/2003 7:10:31 PM PDT by Timesink
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To: Jhensy
Just highlighting the truly important numbers:

                          --------------------------------------------
                                       Second Quarter 2003
                          --------------------------------------------
                            Weekday/    % Change     Sunday   % Change
                              Daily          vs.                   vs.
                                            2002                  2002
                          --------------------------------------------
Average Net Paid
 Circulation (d)
The New York Times           1,087.9        -3.6%    1,628.5    -3.1%

                          --------------------------------------------
                              Six Months Ended June 29, 2003
                          --------------------------------------------
                            Weekday/    % Change     Sunday   % Change
                              Daily          vs.                   vs.
                                            2002                  2002
                          --------------------------------------------
Average Net Paid
 Circulation (d)
The New York Times           1,106.2        -3.5%    1,650.3    -2.7%

FAILURE!

And keep in mind these circulation figures include the Iraq War! The biggest story in over ten years (excepting 9/11) and still fewer people are reading their paper! This is on top of a full 5% drop in circulation six months ago!
14 posted on 07/15/2003 7:17:31 PM PDT by Timesink
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To: Timesink

15 posted on 07/15/2003 9:49:05 PM PDT by PianoMan (Ignore anything I post after midnight)
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To: Timesink
This is on top of a full 5% drop in circulation six months ago!

Not quite, since it's versus same quarter 2002.

16 posted on 07/15/2003 10:05:24 PM PDT by PianoMan (Ignore anything I post after midnight)
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To: Timesink
Lovely news...Gave me quite a boost. Was truly missing that schadenfreude feeling!
17 posted on 07/15/2003 11:48:24 PM PDT by lainde
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To: Timesink
One of the quick scans I made showed a decrease in the use of paper/news print

That means less circulation and ads!
18 posted on 07/15/2003 11:54:14 PM PDT by Grampa Dave (Please invest 17 cents a day/5$ per month in Free Republic as a monthly supporter.)
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To: Liz
So will the NY Slimes follow the trend of other rat controlled corporations since Bubba Clinton left the White House?
19 posted on 07/15/2003 11:55:17 PM PDT by Grampa Dave (Please invest 17 cents a day/5$ per month in Free Republic as a monthly supporter.)
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To: Grampa Dave
So will the NY Slimes follow the trend of other rat controlled corporations since Bubba Clinton left the White House?

Hey, if the NYT is anything, it is "trendy." Liberals (puke) are always "up-to-the minute."

It just wouldn't do for the NYT to appear out of step with its palsie-walsies at all those A-list Hamptons parties. LOL.

20 posted on 07/16/2003 2:10:03 AM PDT by Liz
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To: Liz
One hopes that the Slimes will burn a hugh hole in the vast wealth of Moose's family in the next 6 years.

Everyone should check their mutual funds to see if the funds holds NY Slimes stock. If it does, send emails to the fund managers and insist that they get out of this loser.

Amazing many funds have stock in the Washington Compost as one of their top ten. I have never bought a fund that has invested in one of the home grown enemies of America.
21 posted on 07/16/2003 7:43:01 AM PDT by Grampa Dave (Please invest 17 cents a day/5$ per month in Free Republic as a monthly supporter.)
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To: Liz; PhilDragoo; MJY1288; William McKinley; RedBloodedAmerican

New York Times photo: Boris shows Natasha the plan to discredit President Bush with Wilson's lies!

Thanks to Phil,we have this photo showing how the NY Slimes plotted with Boris to use lies against President Bush!

22 posted on 07/16/2003 7:52:59 AM PDT by Grampa Dave (Please invest 17 cents a day/5$ per month in Free Republic as a monthly supporter.)
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To: Timesink
They don't have qualified people of ANY color.
23 posted on 07/16/2003 8:01:12 AM PDT by RedBloodedAmerican
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To: Grampa Dave
Nice move, Gramps.
24 posted on 07/16/2003 9:15:07 AM PDT by Liz
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To: Timesink
earnings fell to $72.8 million…in the second quarter…the company pledged more stringent cost controls

They are making an obscene $24 million a month and it’s not enough, they insist on more!

We know it’s not going to be Punch and Pinch coming under “more stringent cost controls” it’s going to be the little people, the women, children and minorities will be the hardest hit by the NYT greed! Not to mention the NYT will “invest” less in taxes to the government to support the needy.

Truly outrageous behavior by the New York Times!

25 posted on 07/16/2003 9:33:23 AM PDT by RJL
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