New York Times Example

 New York Times Case Study Article

Circumstance

14    New York Times

| Troubled Moments for the " Good Gray Lady”

The early a few months of 2009 were a hard period for the New York Times Organization (NYT), publisher of the New York Times and Boston Globe and the owner of a number of local titles and several non-print media businesses. In common with other U. T. newspaper writers, the NYT was affected by the cyclical problem of cutbacks in advertising finances and the long-term problem of declining audience as papers increasingly misplaced ground to online sources of information.

During January and February, the company was controlled by repeated supposition concerning it is ability to satisfy its monetary obligations—in particular, the re-financing of a $400 million personal credit line due to expire in May. In January the organization bought on its own breathing space with a $250 million loan at 14% interest in the Mexican billionaire, Carlos Thin. In February it taken away its dividend for the season.

The gross annual results pertaining to 2008 revealed revenues contracting at a faster pace compared to the company can cut costs. Once impairment expenses were taken into account (mainly in relation to write-downs of goodwill plus the masthead values), NYT built a net loss of almost $58 , 000, 000 (see Table 14. 1 ).

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TABLE 14. 1    | New york city Times Company, Inc.: chosen financial info ($000s, other than where indicated)|  | 2008| 2007| 2006| 2005| 2004

Revenues| 2948856| 3195077| 3289903| 3231128| 3159412| Working costs| 2791613| 2928070| 2996081| 2911578| 2696799| Impairment of assets| 197879| 11000| 814433| –| –| Gain on sale of assets| –| (28578)| –| 122946| –| Functioning (loss)/profit| (40636)| 227429| (520611)| 442496| 462613| Interest expenditure, net| 47790| 39842| 50651| 49168| 41760| Income coming from continuing operations| (66139)| 108939| (568171)| 243313| 264985| Ceased operations –Broadcast Media Group| 8300| 99765| 24728| 15687| 22646| Net income| (57839)| 208704| (543443)| 253473| 287631| Property, plant and equipment| 1353619| 1468013| 1375365| 1401368| 1308903| Total assets| 3401680| 3473092| 3855928| 4564078| 3994555| Total debt| 1059375| 1034979| 1445928| 1396380| 1058847| Stockholders' equity| 503963| 978200| 819842| 1450826| 1354361| Return normally stockholders' fairness (%)| -8| 23| -48| 18| 21| Total financial debt to total increased (%)| 68| 51| 64| 49| 44| Operating profit/revenues (%)| -1| 7| -16| 14| 15

Current possessions to current liabilities| zero. 60| zero. 68| 0. 91| 0. 95| 0. 84| Staff (full-time equivalent)| 9346| 10231| 11585| 11965| 12300

Resource:  New You are able to Times Firm, Inc., 10-K Report, 2008. |

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The NYT's share selling price reflected the typical pessimism regarding the company's leads. In September 2008, it is shares had been trading at above $14. On February 20, 2009, they shut down at $3. 44. On the shareholder's total annual meeting in April up to 29, 2009, Plank Chairman Arthur Sulzberger Jr. addressed you�re able to send problems plus the board's strategy for dealing with these people:

| In our remarks today, both Jesse Robinson, leader and CEO of The New york city Times Firm, and I can talk about the actions all of us and the colleagues take to control our organization throughout the current monetary downturn, advertising and marketing decline and technological fragmentation—which, collectively, are having a challenging effect on bushed the mass media business. Because you will hear and see today, The New You are able to Times Organization is no different. As the changing times Company's table of owners and mature management carry on and lead the enterprise through this unclear era, we could guided simply by four root premises: |   | 1st, quality will stay the distinguishing feature coming from all that we have to supply; |

| Second, business will still be difficult, although we are absolutely committed to creating greater shareholder value;...