The New York Times Company (NYT) Q4 2014 earnings summary

Executive summary

• FY14 revenue rose 0.7% to $1.589B, while operating profit fell 41.1% to $91.9M amid strategic investment and severance costs. Adjusted operating profit was $256.3M vs. $277.1M.

• Digital subscriptions and advertising supported growth, partly offsetting ongoing print advertising and circulation pressure; paid digital subscribers reached 910,000 at year-end.

Financial highlights

• Circulation revenue increased 1.5% to $836.8M; advertising revenue declined 0.7% to $662.3M; other revenue rose 3.6% to $89.4M.

• Net income attributable to common stockholders was $33.3M vs. $65.1M; diluted EPS was $0.20 vs. $0.41. Continuing-operations diluted EPS was $0.21 vs. $0.36.

• Adjusted diluted EPS, excluding severance, non-operating retirement costs and special items, was $0.43 vs. $0.52; adjusted operating costs rose 2.5% to $1.332B.

• Operating costs increased 5.2% to $1.485B, driven by strategic initiatives and severance, partly offset by print distribution efficiencies.

Outlook and guidance

• Q1 2015 circulation revenue expected to grow at a rate similar to Q4 2014; net new digital subscribers expected in the mid-30,000s.

• Q1 2015 advertising revenue expected to decline mid-single digits YoY, with digital advertising up low double digits; other revenue expected to grow mid-single digits.

• FY15 operating and adjusted operating costs expected to be maintained or slightly reduced vs. FY14; Q1 costs expected roughly flat YoY.

• FY15 guidance: joint venture results breakeven to $5M; depreciation and amortization $60M-$65M; net interest expense $40M-$45M; capex $35M-$45M.