The New York Times Company announced 2011 first-quarter diluted earnings per share of $.04 per share compared with $.08 in the same period of 2010. Excluding severance and the special items discussed below, diluted earnings per share were $.02 per share in the first quarter of 2011 compared with $.11 in the first quarter of 2010.
Operating profit was $31.1 million in the first quarter of 2011 compared with $52.7 million in the same period of 2010. Excluding depreciation, amortization and severance, operating profit was $60.5 million in the first quarter of 2011 compared with $83.3 million in the first quarter of 2010.
"Our operating performance reflects the continuing transformation of our Company, which intersected with an important milestone in the first quarter," said Janet L. Robinson, president and chief executive officer, The New York Times Company. "While the challenges for our Company and for the larger economy are not yet behind us, the recent launch of Times digital subscription packages on NYTimes.com and across other digital platforms brings our plan for a new revenue stream to life, offering us another reason for optimism about the future of our Company."
"In mid-March, we introduced Times digital subscription packages in Canada and globally at the beginning of the second quarter, and we are pleased with the number of subscribers we have acquired to date, as initial volume has meaningfully exceeded our expectations.
"The advertising marketplace faced increased pressure in the first quarter reflecting the uneven economic environment, recent global events and secular forces. Although digital advertising grew 4.5 percent, it could not fully offset the 7.5 percent decline in print advertising revenues in the quarter.
"Our digital initiatives have increasingly contributed to our revenue mix providing meaningful diversification of our businesses across proliferating platforms. Accordingly, advertising revenues from our digital products made up 28 percent of the Company's total advertising revenues in the first quarter.
"We continued to manage our liquidity position and finished the first quarter with $352 million in cash and short-term investments even after making pension contributions of about $54 million."
Unless otherwise noted all comparisons are for the first quarter of 2011 to the first quarter of 2010. This release includes non-GAAP financial measures, a discussion of management's reasons for the presentation of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures.
The first-quarter 2011 results included the following special item:
The first-quarter 2010 results included the following special items:
In addition to these special items, the Company had $0.8 million in severance costs in the first quarter of 2011 compared with $0.2 million in the first quarter of 2010.