"Oh don't mind me, I'm just peeking in at the N.Y. Times."
Posted on 10/19/2006 8:16:01 AM PDT by Milhous
CHICAGO The New York Times Co. reported Thursday that its third-quarter 2006 profit from continuing operations plunged 39.2% on costs related to its job cuts and a loss on its sale of its 50% stake in the Discovery Times Channel.
Meanwhile, Belo, publisher of The Dallas Morning News, said net income for the quarter fell to $19.2 million, or 19 cents per share, compared to $22.1 million, or 20 cents per share, during the same period last year.
At the New York Times Co., 3Q operating profit was down 48% from the same period in 2005 to $20.5 million on total revenues that slipped 2.4% to $739.6 million.
Reflecting a continuing tough advertising environment, total ad revenue was off 4.2% to 465,476.
The Times Co. said it earned $14 million, or 10 cents per share, compared with $23.1 milion, or 16 cents per share, in the third quarter of 2005.
Charges related to the staff reduction and the cable TV investment loss each reduced per-share price by 3 cents.
"Our third-quarter results reflect the continued weakness in the print advertising marketplace," Times Co. President and CEO Janet L. Robinson said in a statement. "We are, however, strongly encouraged by the discipline our teams have shown in holding the line on operating costs, which were virtually flat with the third quarter of last year. The leadership we are showing in transitioning from our print-centric distribution model to become a multi-platform content provider continues to pay dividends through the robust growth in our Internet-related revenues, which contributed more than 8% of the company's revenues in the quarter and are on track to exceed $250 million by year end."
Times Co. noted that for this reporting period its broadcast media group are now classified as discontinued operations. In September, the company announced plans to sell the group.
Newsprint expense decreased 2.2% in the third quarter, with 11.1% of the decrease attributable to lower consumption, partially offset by an 8.9% price increase.
News Media Group revenues decreased 3.0% to $721.3 million, the company said.
Advertising revenues decreased 5.1%, due to weakness in print advertising at The New York Times Media Group and the New England Media Group, partially offset by higher online advertising revenues across the News Media Group, the company said.
Circulation revenues were down 1.3%, which the company attributed mainly to weakness at the New England Media Group.
About.com's third-quarter revenues increased 29.3% to $18.3 million on higher display and cost-per-click advertising and e-commerce revenue. Operating profit for the online business increased to $6.4 million from $3.8 million.
All told, Internet-related businesses generated $62.8 million in revenue, up from $50.5 million in the year-ago period.
In the third quarter, the Times Co. repurchased 0.7 million Class A shares at a cost of $15.6 million. Approximately $108.2 million remained at the end of the third quarter from the Company's current share repurchase authorization.
At the end of the quarter, it said, the company's cash and cash equivalents were approximately $39 million, and total debt was approximately $1.5 billion.
The Times said its previously announced plans to consolidate New York area printing at its College Point, N.Y., plan and to sublease its Edison, N.J. plan, is expected to be completed in the second quarter of 2008.
The Times said it expects a return of "at least 15%" on its $135 million investment in the consolidation, with a payback period of five and a half years. It said it currently estimates it will record total costs to close the Edison plan to be in the range of $104 to $128 million.
TimesSelect, the fee-based product on NYTimes.com, currently has 551,000 subscribers, the Times Co. said, with about 65% receiving TimesSelect as part their home-delivery subscriptions, and 35% receiving it from online-only subscriptions.
Since its launch in September 2005, TimesSelect has generated more than $8.5 million in revenues, the company said.
Newspaper and television station owner Belo Corp. said Thursday third-quarter profit dropped 13 percent weighed down by charges, as revenue edged up slightly amid weak results from the company's newspaper group.
Belo, publisher of The Dallas Morning News, said net income for the quarter fell to $19.2 million, or 19 cents per share, compared to $22.1 million, or 20 cents per share, during the same period last year.
Results for the latest quarter were hurt by $5.4 million, or 3 cents per share, in severance charges for a voluntary severance program at the Dallas Morning News. They were also impacted by $10 million, or 6 cents per share, in transition costs associated with its technology initiatives and $2.9 million, or 2 cents per share, in stock-based compensation costs.
Last year's results included a $3.5 million, or 2 cents per share, credit to network compensation and an impact of 4 cents per share from lost revenues and incremental expenses associated with Hurricanes Katrina and Rita.
Analysts polled by Thomson Financial were looking for third-quarter earnings of 18 cents per share.
Revenue gained 0.8 percent to $376.4 million from $373.4 million, missing analysts' estimates of $386.3 million. Television group revenue rose 6.9 percent, while newspaper group revenue fell 4.2 percent
ping
http://www.bobbydarin.net/mackie.mp3
Mack the Knife is Back!:
Oh, the shark, babe, has such teeth, dear
And it shows them pearly white
Just a jackknife has old MacHeath, babe
And he keeps it … ah … out of sight.
Ya know when that shark bites, with his teeth, babe
Scarlet billows start to spread
Fancy gloves, though, wears old MacHeath, babe
So there’s nevah, nevah a trace of red.
Now on the sidewalk … uuh, huh … whoo … sunny mornin’ … uuh, huh
Lies a body just oozin' life … eeek!
And someone’s sneakin' ‘round the corner
Could that someone be Mack the Knife?
A-there's a tugboat … huh, huh, huh … down by the river don’tcha know
Where a cement bag’s just a'droopin' on down
Oh, that cement is just, it's there for the weight, dear
Five'll get ya ten old Macky’s back in town.
Now, d'ja hear ‘bout Louie Miller? He disappeared, babe
After drawin' out all his hard-earned cash
And now MacHeath spends just like a sailor
Could it be our boy's done somethin' rash?
Now … Jenny Diver … ho, ho … yeah … Sukey Tawdry
Ooh … Miss Lotte Lenya and old Lucy Brown
Oh, the line forms on the right, babe
Now that Macky’s back in town.
Aah … I said Jenny Diver … whoa … Sukey Tawdry
Look out to Miss Lotte Lenya and old Lucy Brown
Yes, that line forms on the right, babe
Now that Macky’s back in town …
Look out … old Macky is back!!
"Oh don't mind me, I'm just peeking in at the N.Y. Times."
Man, who says there is no happy, upbeat, postive news anymore!!!!!
Every time the Dow climbs the NY Times stock plunges. Hmmmmm.
NooooooOOOOO!!! :)
That gives new meaning to "Mack the Knife"
Hope ya don't mind. I just lifted it. Thanks
Thank you so much. It's been a long time since I've heard Bobby Darin. He was one of the few "stars" I've seen in person. I think I was 16 or so. And he was touring with Count Basie. What a show! What a talent!
LOL - don't mind at all.
More good news. Thanks for the post!
YIKES what a losing enterprise you got there, Pinch.
Add in the Air America Banco.....and I am giddy
Stick a fork in 'em, they're done.
Good grief. Some of the details are even worst than the headlined plunge in profits. The Times says that some of its losses were associated with job cuts and sale of several subsidiary operations, but get this: "At the New York Times Co., 3Q operating profit was down 48%." So operating profits did even worse than total profits, contrary to the earlier spin.
Also note the figures on expenses for newsprint. They are using 11.1% less newsprint, which I suspect correlates with a similar decrease in circulation.
Also, this: "In the third quarter, the Times Co. repurchased 0.7 million Class A shares at a cost of $15.6 million. Approximately $108.2 million remained at the end of the third quarter from the Company's current share repurchase authorization."
In other words, that dreadful declining chart of the price of NYTimes stock would have been MUCH WORSE if they hadn't been buying back many of the shares that stockholders were unloading.
Of course the stock is worthless, anyway, since it has no voting rights. Only Pinch and his family own any of the voting stock.
It just goes to show you that Communism isn't a very good business model, eh?
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