Newspaper & Mailroom
The New York Times Company Announces Updated Expectations for 2009
Wednesday 09. December 2009 - The New York Times Company today will discuss its business, strategies and management's outlook during the UBS 37th Annual Global Media & Communications Conference.
“While the print advertising market remains very challenging, trends have improved modestly as the quarter progressed and we currently project print advertising revenues to decrease approximately 25 percent in the fourth quarter,” said Janet L. Robinson, president and CEO. “We have also seen strengthening in digital advertising and we expect the Company’s total online advertising revenues to increase approximately 10 percent in the quarter. NYTimes.com has demonstrated strength as a premier environment for online brand advertising, and About.com has experienced growth in both cost-per-click and display advertising.
“We continued to grow our circulation revenues and expect them to increase approximately 2 percent in the fourth quarter. This demonstrates the demand and loyalty of our readers for our award-winning, quality journalism.
“The Times Company continues to restructure for the future. With our many initiatives to operate more efficiently and effectively across our businesses, our cost performance has remained strong and we are on track to achieve approximately $475 million in savings this year. And we have made significant progress in reducing our debt level, with total debt expected to be approximately $800 million at year-end, including well below $50 million under our revolving credit facility, down from $1.1 billion at the end of 2008.
“Despite a difficult operating environment, we are pleased with the significant progress that has been made this year at our New England assets and look forward to continued improvement. After careful consideration, we have completed the process of exploring strategic alternatives for the Worcester Telegram & Gazette and telegram.com, and concluded that these assets should remain a part of our New England Media Group. With a major restructuring of The Boston Globe behind us, we expect it to be a positive contributor to our performance in 2010.”
Expectations
The following are updated expectations for 2009 unless otherwise noted:
Depreciation and amortization: $133 million (including $6 million of accelerated depreciation for the consolidation of The Boston Globe’s printing plants). For 2010, the Company expects depreciation and amortization to be $125 to $130 million.
Capital expenditures: $50 to $55 million. For 2010, the Company expects capital expenditures to be $40 to $50 million.
Interest expense: $85 million.
Severance costs: $50 million.
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 our 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 year ended December 28, 2008. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.