By: Jennifer Saba The board of directors of The New York Times Co. announced today it is suspending its quarterly dividend for both classes of stock.
"Today's decision provides the company with additional financial flexibility given the current economic environment and the uncertain business outlook," Arthur Sulzberger Jr., chairman of the New York Times, said in a statement. "We have taken decisive steps to reduce capital spending, lower operating costs and re-evaluate our assets."
The company is scheduled to make a $400 million payment on an $800 million revolving credit facility this May. To drum up cash, the company is exploring the sale of its ownership interest in New England Sports Ventures, is conducing a sales-leaseback of its headquarter building, and received financing from Mexican billionaire Carlos Slim Hel?.
In November, the company slashed its dividend by 74% to 6 cents per share.
"We expect the suspension of the dividend, coupled with our other actions, will help us decrease debt and improve the liquidity of the company, a difficult but prudent measure in this operating environment," Sulzberger added.
Several other newspaper companies have suspended quarterly dividends including McClatchy and Lee Enterprises. Executives with Gannett indicated during an earnings call that its board is considering this month cutting its dividend.
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