How long can The New York Times Co. (NYT) afford to buy shareholders' goodwill? Bloomberg reports today that the company "faces increased financial pressure to cut its dividend as credit quality deteriorates amid record advertising declines." Moody's is threatening to downgrade the Times to a junk rating unless it does something about its anemic cash flow. The current quarterly payout of 23 cents gobbles up $132 million a year that could otherwise be reinvested or used to pay down debt.
The situation reminds me of something former Wall Street Journal managing editor Paul Steiger said when he spoke to the Medill Club a few weeks ago. Noting that the Times Co. had just announced earnings from continuing operations of 15 cents a share, he observed, "When you're borrowing money to pay your dividends, that's my definition of losing sustainability."
Irony alert: Here's what Times publisher Arthur Sulzberger said back in March of last year when the company upped its dividend from 17.5 cents a share: "The strong cash flow of the company and our current financial position, with the upcoming sale of our broadcast unit and radio station, give us the ability to return more capital to shareholders."
This company is a world-class criminal toxic polluter. Having used toxic ink for over a century the newspaper chokes the local landfills.
It is so toxic, bacteria will not eat it.
Up to 30% of the bulk space in local landfills is taken up by newspapers. Sooner of later the environmentalists will wake up and demand a clean up.
Say goodbye to the grey haired lady when that day comes. Your cancer is not news fit to print.
How many people died from wrapping their fish before freezing in the mercury/heavy-metal ink bleeding newspaper? No one knows.
There is a direct relationship of where the newspaper landfills are and "Cancer Alley."
You know in a State where you cannot smoke in a bar, sooner or later the environmentalists will wake up and force a cleanup. When this happens we will talking about bankruptcy. This paper has no intention of ever cleaning their poison up. As far as they are concerned, mercury is good for you, and the local landfills are safe.