Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | ||||||
Operating profit | $ | 93.0 | $ | 51.0 | $ | 51.7 | $ | 6.3 | $ | 94.1 |
Operating profit margin % | 13.9 | % | 9.3 | % | 9.3 | % | 1.2 | % | 15.8 | % |
Adjusted operating profit ("AOP")(1)
| $ | 141.8 | $ | 69.0 | $ | 76.2 | $ | 60.9 | $ | 109.3 |
AOP margin %(1)
| 21.2 | % | 12.6 | % | 13.7 | % | 11.3 | % | 18.4 | % |
AOP - NYTG | $ | 148.7 | $ | 78.6 | $ | 88.8 | $ | 67.7 | $ | 109.3 |
AOP margin % - NYTG | 23.3 | % | 15.0 | % | 16.6 | % | 12.9 | % | 18.4 | % |
AOP - The Athletic | $ | (6.9) | $ | (9.6) | $ | (12.6) | $ | (6.8) | $ | - |
Total revenue | $ | 667.5 | $ | 547.7 | $ | 555.7 | $ | 537.4 | $ | 594.2 |
% change year over year | 12.3 | % | 7.6 | % | 11.5 | % | 13.6 | % | 16.7 | % |
Digital-only subscription revenue | $ | 269.2 | $ | 243.9 | $ | 238.7 | $ | 226.8 | $ | 205.5 |
% change year over year | 31.0 | % | 22.8 | % | 25.5 | % | 26.3 | % | 23.1 | % |
Digital advertising revenue | $ | 111.9 | $ | 70.3 | $ | 69.3 | $ | 67.0 | $ | 111.1 |
% change year over year | 0.6 | % | 4.9 | % | (2.4) | % | 12.6 | % | 23.3 | % |
Operating costs | $ | 548.3 | $ | 503.8 | $ | 504.0 | $ | 496.4 | $ | 500.1 |
% change year over year | 9.6 | % | 9.5 | % | 19.6 | % | 17.8 | % | 16.6 | % |
Adjusted operating costs(1)
| $ | 525.7 | $ | 478.7 | $ | 479.5 | $ | 476.5 | $ | 484.9 |
% change year over year | 8.4 | % | 7.8 | % | 18.2 | % | 17.7 | % | 17.8 | % |
Total subscribers | 9,550 | 9,330 | 9,170 | 9,010 | 7,578 | |||||
Digital-only subscribers | 8,830 | 8,590 | 8,410 | 8,230 | 6,783 | |||||
Digital-only subscribers net additions(2)
| 240 | 180 | 180 | 418 | 237 | |||||
Digital-only subscriber ARPU | $ | 8.93 | $ | 8.87 | $ | 8.83 | $ | 9.13 | $ | 9.60 |
% change year over year | (7.0) | % | (8.0) | % | (7.5) | % | (0.5) | % | 5.0 | % |
Diluted earnings per share ("EPS") | $ | 0.43 | $ | 0.22 | $ | 0.37 | $ | 0.03 | $ | 0.41 |
Adjusted diluted EPS(1)(3)
| $ | 0.59 | $ | 0.24 | $ | 0.28 | $ | 0.21 | $ | 0.43 |
Diluted shares | 165.9 | 166.5 | 167.6 | 168.3 | 168.6 | |||||
(1) Non-GAAP metric. See "Reconciliation of Non-GAAP Information" for more details.
(2) Q1 2022 net additions do not include 1,029,000 digital-only subscribers added when the Company acquired The Athletic.
(3) Recast to conform to the updated definition of adjusted diluted EPS. See "Comparisons" for more details.
|
The New York Times Company | |
Digital-only subscription revenues | increase 13 - 16% |
Total subscription revenues | increase 6 - 9% |
Digital advertising revenues | decrease low-single digits |
Total advertising revenues | decrease low-single digits |
Other revenue | increase mid-single digits |
Operating costs | increase 6 - 8% |
Adjusted operating costs | increase 6 - 8% |
THE NEW YORK TIMES COMPANY | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars and shares in thousands, except per share data) | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
Revenues | ||||||||||||
Subscription(a)
| $ | 414,092 | $ | 351,205 | 17.9 | % | $ | 1,552,362 | $ | 1,362,115 | 14.0 | % |
Advertising(b)
| 179,172 | 176,759 | 1.4 | % | 523,288 | 497,536 | 5.2 | % | ||||
Other(c)
| 74,272 | 66,268 | 12.1 | % | 232,671 | 215,226 | 8.1 | % | ||||
Total revenues | 667,536 | 594,232 | 12.3 | % | 2,308,321 | 2,074,877 | 11.3 | % | ||||
Operating costs | ||||||||||||
Cost of revenue (excluding depreciation and amortization) | 332,129 | 280,235 | 18.5 | % | 1,208,933 | 1,039,568 | 16.3 | % | ||||
Sales and marketing | 62,464 | 97,472 | (35.9) | % | 267,553 | 294,947 | (9.3) | % | ||||
Product development | 55,456 | 41,591 | 33.3 | % | 204,185 | 160,871 | 26.9 | % | ||||
General and administrative | 76,791 | 66,846 | 14.9 | % | 289,259 | 250,124 | 15.6 | % | ||||
Depreciation and amortization(d)
| 21,504 | 13,973 | 53.9 | % | 82,654 | 57,502 | 43.7 | % | ||||
Total operating costs | 548,344 | 500,117 | 9.6 | % | 2,052,584 | 1,803,012 | 13.8 | % | ||||
Acquisition-related costs(e)
| - | - | - | 34,712 | - | * | ||||||
Multiemployer pension plan liability adjustment(f)(g)
| 22,116 | - | * | 14,989 | - | * | ||||||
Impairment charge(h)
| 4,069 | - | * | 4,069 | - | * | ||||||
Lease termination charge(i)
| - | - | - | - | 3,831 | * | ||||||
Operating profit | 93,007 | 94,115 | (1.2) | % | 201,967 | 268,034 | (24.6) | % | ||||
Other components of net periodic benefit costs | 1,756 | 2,682 | (34.5) | % | 6,659 | 10,478 | (36.4) | % | ||||
Interest income and other, net(j)
| 2,433 | 992 | * | 40,691 | 32,945 | 23.5 | % | |||||
Income from continuing operations before income taxes | 93,684 | 92,425 | 1.4 | % | 235,999 | 290,501 | (18.8) | % | ||||
Income tax expense | 22,898 | 22,536 | 1.6 | % | 62,094 | 70,530 | (12.0) | % | ||||
Net income attributable to The New York Times Company common stockholders | $ | 70,786 | $ | 69,889 | 1.3 | % | $ | 173,905 | $ | 219,971 | (20.9) | % |
Average number of common shares outstanding: | ||||||||||||
Basic | 165,612 | 168,032 | (1.4) | % | 166,871 | 167,929 | (0.6) | % | ||||
Diluted | 165,909 | 168,649 | (1.6) | % | 167,141 | 168,533 | (0.8) | % | ||||
Basic earnings per share attributable to The New York Times Company common stockholders | $ | 0.43 | $ | 0.42 | 2.4 | % | $ | 1.04 | $ | 1.31 | (20.6) | % |
Diluted earnings per share attributable to The New York Times Company common stockholders | $ | 0.43 | $ | 0.41 | 4.9 | % | $ | 1.04 | $ | 1.31 | (20.6) | % |
Dividends declared per share | $ | 0.18 | $ | 0.14 | 28.6 | % | $ | 0.36 | $ | 0.28 | 28.6 | % |
* Represents a change equal to or in excess of 100% or not meaningful. | ||||||||||||
See footnotes pages for additional information. |
THE NEW YORK TIMES COMPANY | ||||||||||||
FOOTNOTES | ||||||||||||
(Amounts in thousands) | ||||||||||||
(a) The following table summarizes digital and print subscription revenues for the fourth quarters and twelve months of 2022 and 2021: | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
Digital-only subscription revenues(1)
| $ | 269,196 | $ | 205,504 | 31.0 | % | $ | 978,574 | $ | 773,882 | 26.5 | % |
Print subscription revenues: | ||||||||||||
Domestic home delivery subscription revenues(2)
| 130,270 | 130,994 | (0.6) | % | 517,395 | 529,039 | (2.2) | % | ||||
Single-copy, NYT International and Other subscription revenues(3)
| 14,626 | 14,707 | (0.6) | % | 56,393 | 59,194 | (4.7) | % | ||||
Subtotal print subscription revenues | 144,896 | 145,701 | (0.6) | % | 573,788 | 588,233 | (2.5) | % | ||||
Total subscription revenues | $ | 414,092 | $ | 351,205 | 17.9 | % | $ | 1,552,362 | $ | 1,362,115 | 14.0 | % |
(1) Includes revenue from digital-only bundled and standalone subscriptions to our news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products.
| ||||||||||||
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Games, Cooking and Wirecutter products.
| ||||||||||||
(3) NYT International is the international edition of our print newspaper.
|
The following table summarizes digital and print subscribers as of the end of the five most recent fiscal quarters: | |||||
Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | |
Digital-only subscribers(1)
| 8,830 | 8,590 | 8,410 | 8,230 | 6,783 |
Print subscribers(2)
| 730 | 740 | 760 | 780 | 795 |
Total subscribers(3)
| 9,550 | 9,330 | 9,170 | 9,010 | 7,578 |
(1) Subscribers with paid digital-only subscriptions to one or more of our news product, The Athletic, or our Games, Cooking and Wirecutter products. Subscribers with a paid domestic home-delivery print subscription to The New York Times are excluded. The number of digital-only subscribers includes group corporate and group education subscriptions (which collectively represented approximately 5% of paid digital-only subscribers as of the fourth quarter of 2022). The number of group subscribers is derived using the value of the relevant contract and a discounted subscription rate.
| |||||
(2) Subscribers with a paid domestic home delivery or mail print subscription to The New York Times, which also includes access to our digital news product, as well as The Athletic and our Games, Cooking and Wirecutter products, or a paid print subscription to our Book Review or Large Type Weekly products. Book Review, Mail and Large Type Weekly subscribers are included in the count of subscribers but not subscriptions.
| |||||
(3) The sum of individual metrics may not always equal total amounts indicated due to rounding.
|
THE NEW YORK TIMES COMPANY | ||||||||||
FOOTNOTES | ||||||||||
(Amounts in thousands, except for ARPU) | ||||||||||
The following table summarizes supplementary subscriber metrics as of the end of the five most recent fiscal quarters:
| ||||||||||
Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | ||||||
Digital-only subscriber ARPU(1)
| $ | 8.93 | $ | 8.87 | $ | 8.83 | $ | 9.13 | $ | 9.60 |
Digital-only bundle and multiproduct subscribers(2)
| 2,500 | 2,130 | 1,980 | 1,835 | 1,607 | |||||
Digital-only subscribers with News(3)
| 6,370 | 6,210 | 6,140 | 6,101 | 5,826 | |||||
Digital-only subscribers with The Athletic(4)
| 2,680 | 2,290 | 1,690 | 1,216 | - | |||||
(1) "Digital-only subscriber Average Revenue per User" or "Digital-only subscriber ARPU" is calculated by dividing the average monthly digital subscription revenue (calculated by dividing digital subscription revenue in the quarter by 3.25 to reflect a 28-day billing cycle) in the measurement period by the average number of digital subscribers during the period.
| ||||||||||
(2) Subscribers with a digital bundle or paid digital-only subscriptions that include access to two or more of the Company's products, including through separate standalone subscriptions. This metric was previously called "Total Multiproduct subscribers" and included subscribers with a print home-delivery subscription. The three quarters prior to the third quarter of 2022 have been recast to reflect this change.
| ||||||||||
(3) Subscribers with a paid digital-only subscription that includes the ability to access the Company's digital news product.
| ||||||||||
(4) Subscribers with a paid digital-only subscription that includes the ability to access The Athletic. This metric was previously called "Subscribers with The Athletic".
|
While the Company is moving toward an emphasis on individual subscriber growth rather than growth of total subscriptions, we are reporting on the number of subscriptions at least through this quarter. The following table summarizes digital and print subscriptions as of the end of the five most recent fiscal quarters: | |||||
Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | |
Digital-only subscriptions(1)
| 10,260 | 10,020 | 9,810 | 9,579 | 8,005 |
Print subscriptions(2)
| 720 | 730 | 750 | 770 | 784 |
Total subscriptions(3)
| 10,980 | 10,750 | 10,560 | 10,349 | 8,789 |
(1) Paid digital-only subscriptions to our news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products. Standalone subscriptions to these products are counted separately and bundle subscriptions are counted as one subscription. The number of paid digital-only subscriptions includes group corporate and group education subscriptions (which collectively represented approximately 4% of paid digital-only subscriptions as of the fourth quarter of 2022). The number of group subscriptions is derived using the value of the relevant contract and a discounted subscription rate.
| |||||
(2) Paid domestic home-delivery print subscriptions to The New York Times, which also include access to our digital news product, as well as The Athletic and our Games, Cooking and Wirecutter products. Excludes subscriptions to our Book Review or Large Type Weekly products and subscriptions to The New York Times that are delivered by mail.
| |||||
(3) The sum of individual metrics may not always equal total amounts indicated due to rounding.
|
THE NEW YORK TIMES COMPANY | ||||||||||||
FOOTNOTES | ||||||||||||
(Amounts in thousands) | ||||||||||||
(b) The following table summarizes digital and print advertising revenues for the fourth quarters and twelve months of 2022 and 2021: | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
Advertising revenues: | ||||||||||||
Digital | $ | 111,852 | $ | 111,144 | 0.6 | % | $ | 318,440 | $ | 308,616 | 3.2 | % |
67,320 | 65,615 | 2.6 | % | 204,848 | 188,920 | 8.4 | % | |||||
Total advertising | $ | 179,172 | $ | 176,759 | 1.4 | % | $ | 523,288 | $ | 497,536 | 5.2 | % |
(c) Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the Company headquarters, retail commerce, our live events business, our student subscription sponsorship program, and television and film. Digital other revenues, which consist primarily of Wirecutter affiliate referral revenue, digital licensing revenue, and our student subscription sponsorship program, totaled $33.1 million and $114.6 million for the fourth quarter and twelve months of 2022, respectively. | ||||||||||||
(d) Includes amortization of intangible assets related to our acquisitions of approximately $7 million and $27 million for the fourth quarter and twelve months of 2022, respectively. | ||||||||||||
(e) In the first quarter of 2022, the Company recorded acquisition-related costs, which primarily include expenses paid in connection with the acceleration of The Athletic stock options, and legal, accounting, financial advisory and integration planning expenses. | ||||||||||||
(f) In the fourth quarter of 2022, the Company recorded a $22.1 million charge in connection with the Company's withdrawal from a multiemployer pension plan. | ||||||||||||
(g) In the third quarter of 2022, the Company recorded a $7.1 million gain resulting from a multiemployer pension liability adjustment. | ||||||||||||
(h) In the fourth quarter of 2022, the Company recorded a $4.1 million charge related to an impairment of an indefinite-lived intangible asset. | ||||||||||||
(i) In the second quarter of 2021, the Company recorded a $3.8 million charge resulting from the termination of a tenant's lease in our headquarters building. | ||||||||||||
(j) In the second quarter of 2022, the Company recorded a $34.2 million gain ($24.9 million or $0.15 per share after tax) related to an agreement to lease and subsequently sell approximately four acres of land at our printing and distribution facility in College Point, N.Y. In the third quarter of 2021, the Company recorded a $27.2 million gain ($19.8 million or $0.12 per share after tax) related to a non-marketable equity investment transaction. |
THE NEW YORK TIMES COMPANY | ||||||||||||
SEGMENT INFORMATION | ||||||||||||
(Amounts in thousands) | ||||||||||||
The results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022, the date of the acquisition. The Athletic is a separate reportable segment of the Company. As a result, beginning in the first quarter of 2022, we have two reportable segments: NYTG and The Athletic. Management uses adjusted operating profit (loss) by segment in assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs to arrive at adjusted operating profit (loss) by segment. Adjusted operating costs are defined as operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs. Adjusted operating profit is defined as operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operating profit expressed as a percentage of revenues is referred to as adjusted operating profit margin.
Subscription revenue from our digital subscription package (or "bundle") is allocated to NYTG and The Athletic. We allocate revenue first to our digital news product based on its list price and then the remaining bundle revenue is allocated to the other products in the bundle, including The Athletic, based on their relative list price. The direct variable expenses associated with the bundle, which include credit card fees, third party fees and sales taxes, are allocated to NYTG and The Athletic based on a historical actual percentage of these costs to bundle revenue.
| ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
Revenues | ||||||||||||
NYTG | $ | 637,619 | $ | 594,232 | 7.3 | % | $ | 2,222,589 | $ | 2,074,877 | 7.1 | % |
The Athletic | 29,917 | - | * | 85,732 | - | * | ||||||
Total revenues | $ | 667,536 | $ | 594,232 | 12.3 | % | $ | 2,308,321 | $ | 2,074,877 | 11.3 | % |
Adjusted operating costs | ||||||||||||
NYTG | $ | 488,904 | $ | 484,896 | 0.8 | % | $ | 1,838,784 | $ | 1,739,478 | 5.7 | % |
The Athletic | 36,800 | - | * | 121,606 | - | * | ||||||
Total adjusted operating costs | $ | 525,704 | $ | 484,896 | 8.4 | % | $ | 1,960,390 | $ | 1,739,478 | 12.7 | % |
Adjusted operating profit | ||||||||||||
NYTG | $ | 148,715 | $ | 109,336 | 36.0 | % | $ | 383,805 | $ | 335,399 | 14.4 | % |
The Athletic | (6,883) | - | * | (35,874) | - | * | ||||||
Total adjusted operating profit | $ | 141,832 | $ | 109,336 | 29.7 | % | $ | 347,931 | $ | 335,399 | 3.7 | % |
AOP margin % - NYTG | 23.3 | % | 18.4 | % | 490 bps | 17.3 | % | 16.2 | % | 110 bps | ||
* Represents a change equal to or in excess of 100% or not meaningful. |
Revenues detail by segment | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
NYTG | ||||||||||||
Subscription | $ | 389,991 | $ | 351,205 | 11.0 | % | $ | 1,479,209 | $ | 1,362,115 | 8.6 | % |
Advertising | 173,865 | 176,759 | (1.6) | % | 511,320 | 497,536 | 2.8 | % | ||||
Other | 73,763 | 66,268 | 11.3 | % | 232,060 | 215,226 | 7.8 | % | ||||
Total | $ | 637,619 | $ | 594,232 | 7.3 | % | $ | 2,222,589 | $ | 2,074,877 | 7.1 | % |
The Athletic | ||||||||||||
Subscription | $ | 24,101 | $ | - | * | $ | 73,153 | $ | - | * | ||
Advertising | 5,307 | - | * | 11,968 | - | * | ||||||
Other | 509 | - | * | 611 | - | * | ||||||
Total | $ | 29,917 | $ | - | * | $ | 85,732 | $ | - | * | ||
The New York Times Company | ||||||||||||
Subscription | $ | 414,092 | $ | 351,205 | 17.9 | % | $ | 1,552,362 | $ | 1,362,115 | 14.0 | % |
Advertising | 179,172 | 176,759 | 1.4 | % | 523,288 | 497,536 | 5.2 | % | ||||
Other | 74,272 | 66,268 | 12.1 | % | 232,671 | 215,226 | 8.1 | % | ||||
Total | $ | 667,536 | $ | 594,232 | 12.3 | % | $ | 2,308,321 | $ | 2,074,877 | 11.3 | % |
* Represents a change equal to or in excess of 100% or not meaningful. |
THE NEW YORK TIMES COMPANY | ||||||||||||
SEGMENT INFORMATION | ||||||||||||
(Amounts in thousands) | ||||||||||||
Adjusted operating costs (operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs) detail by segment | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
NYTG | ||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 311,113 | $ | 280,235 | 11.0 | % | $ | 1,135,518 | $ | 1,039,568 | 9.2 | % |
Sales and marketing | 53,966 | 97,472 | (44.6) | % | 243,936 | 294,947 | (17.3) | % | ||||
Product development | 50,802 | 41,591 | 22.1 | % | 189,027 | 160,871 | 17.5 | % | ||||
Adjusted general and administrative (1)
| 73,023 | 65,598 | 11.3 | % | 270,303 | 244,092 | 10.7 | % | ||||
Total | $ | 488,904 | $ | 484,896 | 0.8 | % | $ | 1,838,784 | $ | 1,739,478 | 5.7 | % |
The Athletic | ||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 21,016 | $ | - | * | $ | 73,415 | $ | - | * | ||
Sales and marketing | 8,498 | - | * | 23,617 | - | * | ||||||
Product development | 4,654 | - | * | 15,158 | - | * | ||||||
Adjusted general and administrative (2)
| 2,632 | - | * | 9,416 | - | * | ||||||
Total | $ | 36,800 | $ | - | * | $ | 121,606 | $ | - | * | ||
The New York Times Company | ||||||||||||
Cost of revenue (excluding depreciation and amortization) | $ | 332,129 | $ | 280,235 | 18.5 | % | $ | 1,208,933 | $ | 1,039,568 | 16.3 | % |
Sales and marketing | 62,464 | 97,472 | (35.9) | % | 267,553 | 294,947 | (9.3) | % | ||||
Product development | 55,456 | 41,591 | 33.3 | % | 204,185 | 160,871 | 26.9 | % | ||||
Adjusted general and administrative | 75,655 | 65,598 | 15.3 | % | 279,719 | 244,092 | 14.6 | % | ||||
Total | $ | 525,704 | $ | 484,896 | 8.4 | % | $ | 1,960,390 | $ | 1,739,478 | 12.7 | % |
(1) Excludes severance of $4.7 million for the twelve months of 2022 and multiemployer pension withdrawal costs of $1.1 million and $4.9 million for the fourth quarter and twelve months of 2022, respectively. Excludes severance of $0.9 million for the twelve months of 2021 and multiemployer pension withdrawal costs of $1.2 million and $5.2 million for the fourth quarter and twelve months of 2021, respectively.
| ||||||||||||
(2) Excludes $0.2 million of severance for the twelve months of 2022.
| ||||||||||||
* Represents a change equal to or in excess of 100% or not meaningful. |
THE NEW YORK TIMES COMPANY |
RECONCILIATION OF NON-GAAP INFORMATION |
In this release, the Company has referred to non-GAAP financial information with respect to diluted EPS from continuing operations excluding amortization of acquired intangible assets, severance, non-operating retirement costs and special items (or adjusted diluted EPS from continuing operations); operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit, and as divided by revenues, adjusted operating profit margin); operating costs before depreciation, amortization, severance and multiemployer pension withdrawal costs (or adjusted operating costs); and net cash provided by operating activities less capital expenditures (or free cash flow). Beginning with the fourth quarter of 2022, the Company has updated its definition of adjusted diluted EPS from continuing operations to exclude amortization of acquired intangible assets in addition to previously excluded severance, non-operating retirement costs and special items, which allows for comparability between periods of the Company's operating performance. 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. |
Adjusted diluted EPS 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 and adjusted operating profit margin are useful in evaluating the ongoing performance of the Company's business as they exclude 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, acquisition-related costs 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. |
Free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities, less capital expenditures. The Company considers free cash flow to provide useful information to management and investors about the amount of cash that is available to be used to strengthen the Company's balance sheet and for strategic opportunities including, among others, investing in the Company's business, strategic acquisitions, dividend payouts and repurchasing stock. In addition, management uses free cash flow to set targets for return of capital to stockholders in the form of dividends or share repurchases. |
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 including 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 EPS 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 EPS 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. |
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are set out in the tables below. |
THE NEW YORK TIMES COMPANY | ||||||||||||
RECONCILIATION OF NON-GAAP INFORMATION | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||
Reconciliation of diluted EPS from continuing operations excluding amortization of acquired intangible assets, severance, non-operating retirement costs and special items (or adjusted diluted EPS from continuing operations) | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
Diluted EPS from continuing operations | $ | 0.43 | $ | 0.41 | 4.9 | % | $ | 1.04 | $ | 1.31 | (20.6 | %) |
Add: | ||||||||||||
Amortization of acquired intangible assets | 0.04 | - | * | 0.16 | 0.01 | * | ||||||
Severance | - | - | - | 0.03 | 0.01 | * | ||||||
Non-operating retirement costs: | ||||||||||||
Multiemployer pension plan withdrawal costs | 0.01 | 0.01 | - | 0.03 | 0.03 | - | ||||||
Other components of net periodic benefit costs | 0.01 | 0.02 | (50.0) | % | 0.04 | 0.06 | (33.3) | % | ||||
Special items: | ||||||||||||
Acquisition-related costs | - | - | - | 0.21 | - | * | ||||||
Gain from non-marketable equity investment | - | - | - | - | (0.16) | * | ||||||
Impairment charge | 0.02 | - | * | 0.02 | - | * | ||||||
Lease termination charge | - | - | - | - | 0.02 | * | ||||||
Gain on the sale of land | - | - | - | (0.20) | - | * | ||||||
Multiemployer pension plan liability adjustment(1)
| 0.13 | - | * | 0.09 | - | * | ||||||
Income tax expense of adjustments | (0.06) | (0.01) | * | (0.10) | 0.01 | * | ||||||
Adjusted diluted EPS from continuing operations(2)(3)
| $ | 0.59 | $ | 0.43 | 37.2 | % | $ | 1.32 | $ | 1.28 | 3.1 | % |
(1) Twelve months ended December 31, 2022, includes a loss of $0.13 related to an estimated charge for a withdrawal from a multiemployer pension plan, partially offset by a gain of $0.04 resulting from a multiemployer pension liability adjustment.
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(2) Amounts may not add due to rounding.
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(3) Recast to conform 2021 periods to the updated definition of adjusted diluted EPS.
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* Represents a change equal to or in excess of 100% or not meaningful. |
THE NEW YORK TIMES COMPANY | ||||||||||||
RECONCILIATION OF NON-GAAP INFORMATION | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||
Reconciliation of operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit) | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
Operating profit | $ | 93,007 | $ | 94,115 | (1.2) | % | $ | 201,967 | $ | 268,034 | (24.6) | % |
Add: | ||||||||||||
Depreciation and amortization | 21,504 | 13,973 | 53.9 | % | 82,654 | 57,502 | 43.7 | % | ||||
Severance | - | - | - | 4,669 | 882 | * | ||||||
Multiemployer pension plan withdrawal costs | 1,136 | 1,248 | (9.0) | % | 4,871 | 5,150 | (5.4) | % | ||||
Special items: | ||||||||||||
Acquisition-related costs | - | - | - | 34,712 | - | * | ||||||
Impairment charge | 4,069 | - | * | 4,069 | - | * | ||||||
Lease termination charge | - | - | - | - | 3,831 | * | ||||||
Multiemployer pension plan liability adjustment | 22,116 | - | * | 14,989 | - | * | ||||||
Adjusted operating profit | $ | 141,832 | $ | 109,336 | 29.7 | % | $ | 347,931 | $ | 335,399 | 3.7 | % |
Divided by: | ||||||||||||
Revenue | $ | 667,536 | $ | 594,232 | 12.3 | % | $ | 2,308,321 | $ | 2,074,877 | 11.3 | % |
Operating profit margin | 13.9 | % | 15.8% | (190) bps | 8.7% | 12.9% | (420) bps | |||||
Adjusted operating profit margin | 21.2 | % | 18.4% | 280 bps | 15.1% | 16.2% | (110) bps | |||||
* Represents a change equal to or in excess of 100% or not meaningful. |
Reconciliation of operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs) | ||||||||||||
Fourth Quarter | Twelve Months | |||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
Operating costs | $ | 548,344 | $ | 500,117 | 9.6 | % | $ | 2,052,584 | $ | 1,803,012 | 13.8 | % |
Less: | ||||||||||||
Depreciation and amortization | 21,504 | 13,973 | 53.9 | % | 82,654 | 57,502 | 43.7 | % | ||||
Severance | - | - | - | 4,669 | 882 | * | ||||||
Multiemployer pension plan withdrawal costs | 1,136 | 1,248 | (9.0) | % | 4,871 | 5,150 | (5.4) | % | ||||
Adjusted operating costs | $ | 525,704 | $ | 484,896 | 8.4 | % | $ | 1,960,390 | $ | 1,739,478 | 12.7 | % |
* Represents a change equal to or in excess of 100% or not meaningful. |
THE NEW YORK TIMES COMPANY | ||||||
RECONCILIATION OF NON-GAAP INFORMATION | ||||||
(Dollars in thousands, except per share data) | ||||||
Impact of Modification of Non-GAAP Measures
Beginning with the fourth quarter of 2022, the Company has updated its definition of adjusted diluted EPS from continuing operations to exclude amortization of acquired intangible assets in addition to previously excluded severance, non-operating retirement costs and special items. Excluding amortization of acquired intangible assets to arrive at adjusted diluted EPS allows for comparability between periods of the Company's operating performance.
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Reconciliation of diluted EPS from continuing operations to adjusted diluted EPS from continuing operations | ||||||
Third Quarter 2022 Recast | Second Quarter 2022 Recast | First Quarter 2022 Recast | ||||
Diluted EPS from continuing operations | $ | 0.22 | $ | 0.37 | $ | 0.03 |
Add: | ||||||
Amortization of acquired intangible assets | 0.04 | 0.04 | 0.03 | |||
Severance | 0.01 | 0.02 | - | |||
Non-operating retirement costs: | ||||||
Multiemployer pension plan withdrawal costs | 0.01 | 0.01 | 0.01 | |||
Other components of net periodic benefit costs | 0.01 | 0.01 | 0.01 | |||
Special items: | ||||||
Acquisition-related costs | - | - | 0.21 | |||
Gain on the sale of land | - | (0.20) | - | |||
Multiemployer pension plan liability adjustment | (0.04) | - | - | |||
Income tax expense of adjustments | (0.01) | 0.03 | (0.07) | |||
Adjusted diluted EPS from continuing operations(1)
| $ | 0.24 | $ | 0.28 | $ | 0.21 |
(1) Amounts may not add due to rounding.
|
THE NEW YORK TIMES COMPANY | ||||||||||
RECONCILIATION OF NON-GAAP INFORMATION | ||||||||||
(Dollars in thousands) | ||||||||||
Reconciliation of revenues excluding the estimated impact of the additional six days | ||||||||||
Fourth Quarter | ||||||||||
2022 As Reported | Additional Six Days | 2022 Adjusted | 2021 | % Change | ||||||
Digital subscription revenue | $ | 269,196 | $ | (16,981) | $ | 252,215 | $ | 205,504 | 22.7 | % |
Print subscription revenue | 144,896 | (5,120) | 139,776 | 145,701 | (4.1) | % | ||||
Total subscription revenue | 414,092 | (22,101) | 391,991 | 351,205 | 11.6 | % | ||||
Digital advertising revenue | 111,852 | (5,398) | 106,454 | 111,144 | (4.2) | % | ||||
Print advertising revenue | 67,320 | (1,267) | 66,053 | 65,615 | 0.7 | % | ||||
Total advertising revenues | 179,172 | (6,665) | 172,507 | 176,759 | (2.4) | % | ||||
Other revenue | 74,272 | (1,743) | 72,529 | 66,268 | 9.4 | % | ||||
Total revenues | $ | 667,536 | $ | (30,509) | $ | 637,027 | $ | 594,232 | 7.2 | % |
Twelve Months | ||||||||||
2022 As Reported | Additional Six Days | 2022 Adjusted | 2021 | % Change | ||||||
Digital subscription revenue | $ | 978,574 | $ | (16,981) | $ | 961,593 | $ | 773,882 | 24.3 | % |
Print subscription revenue | 573,788 | (5,120) | 568,668 | 588,233 | (3.3) | % | ||||
Total subscription revenue | 1,552,362 | (22,101) | 1,530,261 | 1,362,115 | 12.3 | % | ||||
Digital advertising revenue | 318,440 | (5,398) | 313,042 | 308,616 | 1.4 | % | ||||
Print advertising revenue | 204,848 | (1,267) | 203,581 | 188,920 | 7.8 | % | ||||
Total advertising revenues | 523,288 | (6,665) | 516,623 | 497,536 | 3.8 | % | ||||
Other revenue | 232,671 | (1,743) | 230,928 | 215,226 | 7.3 | % | ||||
Total revenues | $ | 2,308,321 | $ | (30,509) | $ | 2,277,812 | $ | 2,074,877 | 9.8 | % |
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The New York Times Company published this content on 08 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 February 2023 12:17:41 UTC.