Tribune Media Company Reports Second Quarter 2014 Results

CHICAGO, Aug. 12, 2014 /PRNewswire/ -- Tribune Media Company (the "Company"; OTC:TRBAA) today reported its results for the three and six months ended June 29, 2014.  The consolidated financial statements along with management's discussion and analysis of financial condition and results of operations are available on the Company's corporate website, www.tribunemedia.com, and on the Company's investor relations mobile app.

Q2 Highlights

  • Consolidated revenues grew 23% to $894.5 million compared to the second quarter of 2013
  • Consolidated Adjusted EBITDA grew 20% to $211.9 compared to the second quarter of 2013
  • Cash flow was positively impacted by a cash distribution from Classified Ventures, LLC of  approximately $160 million related to the sale of its Apartments.com business
  • WGN America successfully launched and renewed its first original series, Salem

Company Results

Consolidated revenues for the three months ended June 29, 2014 were $894.5 million compared to $730.2 million in the three months ended June 30, 2013, representing an increase of $164.3 million, or 23%.  Consolidated revenues for the six months ended June 29, 2014 were $1,746.7 million compared to $1,435.2 million in the six months ended June 30, 2013, representing an increase of $311.5 million, or 22%. 

Consolidated operating profit for the three months ended June 29, 2014 was $61.3 million compared to $89.6 million in the three months ended June 30, 2013, representing a decrease of $28.3 million, or 32%. For the six months ended June 29, 2014, consolidated operating profit was $135.7 million, a decrease of $37.4 million, or 22%, as compared to $173.1 million in the six months ended June 30, 2013.

Consolidated Adjusted EBITDA increased to $211.9 million in the three months ended June 29, 2014 from $177.0 million in the three months ended June 30, 2013.  Consolidated Adjusted EBITDA increased to $509.8 million in the six months ended June 29, 2014 from $393.9 million in the six months ended June 30, 2013. 

Cash distributions from equity investments in the three months ended June 29, 2014 were $35.4 million compared to $34.2 million in the three months ended June 30, 2013. Cash distributions from equity investments in the six months ended June 29, 2014 were $155.7 million compared to $124.1 million in the six months ended June 30, 2013. In addition, the Company also received a cash distribution in the second quarter of $159.6 million from Classified Ventures, LLC in connection with the sale of its Apartments.com business. 

Commenting on the second quarter results, Peter Liguori, Tribune Media president and chief executive officer stated, "I am very pleased with our accomplishments in the second quarter.  The premiere of WGN America's original series, Salem, exceeded our expectations and we have renewed it for a second season. While the core advertising market experienced headwinds in the first half of the year, we continue to be encouraged by the strength of our new broadcast scale, as evidenced in our year-over-year retransmission fee increases, and feel positive about the opportunities presented by the political advertising landscape in the second half of 2014."

Broadcasting

Broadcasting segment revenues were $425.8 million in the three months ended June 29, 2014, an increase of $165.3 million, or 63%, as compared to $260.5 million in the three months ended June 30, 2013.  For the six months ended June 29, 2014, Broadcasting segment revenues were $824.2 million, an increase of $324.5 million, or 65%, compared with $499.7 million in the six months ended June 30, 2013.

Broadcasting segment Adjusted EBITDA was $140.5 million in three months ended June 29, 2014, compared to $85.1 million in the three months ended June 30, 2013, an increase of $55.4 million, or 65%.  For the six months ended June 29, 2014, Broadcasting segment Adjusted EBITDA was $279.6 million compared with $164.7 million in the six months ended June 30, 2013, an increase of $114.9 million, or 70%.

Pro forma for acquisition of Local TV (see attached quarterly pro forma financial disclosures)

The following discussion includes 2013 amounts that are pro forma for the acquisition of Local TV, which was completed on December 27, 2013, as if the acquisition had occurred as of the beginning of 2013, and are based on Local TV's historical basis of presentation and do not reflect the impact of purchase accounting.

Broadcasting segment revenues were $425.8 million in the three months ended June 29, 2014, compared to $406.0 million in the three months ended June 30, 2013.  This represents an increase of $19.8 million, or 4.9%. Retransmission consent revenues in the three months ended June 29, 2014 were $57.1 million, compared to $32.0 million in the three months ended June 30, 2013, an increase of $25.1 million, or 78%.  Advertising revenues decreased to $329.1 million in the second quarter of 2014 as compared with $336.6 million in the second quarter of 2013, representing a decrease of $7.5 million, or 2.2%.  Increases in political advertising revenues of approximately $6.5 million in the quarter were offset by declines in core advertising of $15.6 million, or 4.9%.  For the six months ended June 29, 2014, Broadcasting segment revenues increased $48.9 million, or 6.3%, to $824.2 million compared to $775.3 million in the six month period ended June 30, 2013.  Retransmission consent revenues in the six months ended June 29, 2014 increased $51.1 million, or 83%, to $112.7 million, compared to $61.6 million in the six months ended June 30, 2013.  Advertising revenues decreased to $633.4 million in the six months ended June 29, 2014 as compared with $637.2 million in the six months ended June 30, 2013, representing a decrease of $3.8 million, or 0.6%.  Increases in political advertising revenues of approximately $7.9 million in the first half of 2014 were offset by declines in core advertising of $14.8 million, or 2.4%. 

Broadcasting Adjusted EBITDA was $140.5 million in the three months ended June 29, 2014, compared to $149.2 million in the three months ended June 30, 2013.  Adjusted EBITDA in the quarter ended June 29, 2014 included $24.5 million of additional costs associated with new original programming at WGN America.  For the six months ended June 29, 2014, Broadcasting Adjusted EBITDA was $279.6 million, compared to $279.3 million in the six months ended June 30, 2013.  Adjusted EBITDA in the six months ended June 29, 2014 included $31.0 million of additional costs associated with new original programming at WGN America.

Publishing

Publishing segment revenues in the three months ended June 29, 2014 were $468.7 million, compared to $469.6 million in the three months ended June 30, 2013, a decline of $0.9 million, or 0.2%.  This decline was primarily attributable to declines in advertising revenue of $19.0 million, offset by increases in other revenues largely resulting from the acquisition of Gracenote in the first quarter of 2014. For the six months ended June 29, 2014, Publishing segment revenues were $922.5 million, compared to $935.5 million in the six months ended June 30, 2013. The decline of $13.0 million, or 1.4%, was primarily attributable to a decline in advertising and commercial printing revenues, partially offset by an increase in other revenues due to the acquisition of Gracenote in the first quarter of 2014.

Publishing segment Adjusted EBITDA was $56.1 million in the three months ended June 29, 2014, compared to $69.7 million in the three months ended June 30, 2013, a decline of $13.6 million, or 20%.  The change was primarily due to revenue declines in the newspaper business as well as added expenses from the acquisition of Gracenote.  For the six months ended June 29, 2014, Publishing segment Adjusted EBITDA was $111.9 million, compared to $127.7 million in the six months ended June 30, 2013, a decline of $15.8 million, or 12%. The change was primarily due to revenue declines in the newspaper business as well as added expenses from the acquisition of Gracenote.

Corporate

Corporate expenses reduced Adjusted EBITDA in the three months ended June 29, 2014 by $18.2 million, compared to $11.7 million in the three months ended June 30, 2013. The $6.5 million increase in expenses was primarily attributable to increased compensation expense and costs associated with the implementation of a technology application.

For the six months ended June 29, 2014, Corporate expenses reduced Adjusted EBITDA by $33.8 million compared to $21.9 million in the six months ended June 30, 2013. The $11.9 million increase in expense was primarily attributable to increased compensation expense and costs associated with the implementation of a technology application.

Tribune Media Company (OTC:TRBAA) is home to a diverse portfolio of television and digital properties driven by quality news, entertainment and sports programming. Tribune Media is comprised of Tribune Broadcasting's 42 owned or operated local television stations reaching 50 million households, national entertainment network WGN America, available in 72 million households, Tribune Studios, and Tribune Digital Ventures, including the websites Zap2it and TVByTheNumbers, and Gracenote, one of the world's leading sources of TV and music metadata powering electronic program guides in televisions, automobiles and mobile devices.  Tribune Media also includes Chicago's WGN-AM, the national multicast networks Antenna TV and THIS TV. Additionally, the company owns and manages a significant number of real estate properties across the U.S. and holds other strategic investments in media. For more information please visit www.tribunemedia.com.

Non-GAAP Financial Measures

This press release includes a discussion of Adjusted EBITDA for the Company and our operating segments (Publishing, Broadcasting and Corporate). Adjusted EBITDA is a financial measure that is not recognized under accounting principles generally accepted in the U.S. ("GAAP"). Adjusted EBITDA is defined as earnings before income taxes, interest income, interest expense, pension expense, equity income and losses, depreciation and amortization, stock-based compensation, certain special items (including severance), non-operating items and reorganization items plus cash distributions from equity investments less cash pension contributions. Adjusted EBITDA for the Company's operating segments is calculated as segment operating profit plus depreciation, amortization, pension expense, stock-based compensation and certain special items (including severance). We believe that Adjusted EBITDA is a measure commonly used by investors to evaluate our performance and that of our competitors. We also present Adjusted EBITDA because we believe investors, analysts and rating agencies consider it useful in measuring our ability to meet our debt service obligations. We further believe that the disclosure of Adjusted EBITDA is useful to investors, as this non-GAAP measure is used, among other measures, by our management to evaluate our performance. By disclosing Adjusted EBITDA, we believe that we create for investors a greater understanding of, and an enhanced level of transparency into, the means by which our management operates our company. Adjusted EBITDA is not a measure presented in accordance with GAAP, and our use of the term Adjusted EBITDA may vary from that of others in our industry. Adjusted EBITDA should not be considered as an alternative to net income (loss), operating profit, revenues or any other performance measures derived in accordance with GAAP as measures of operating performance or liquidity.

Cautionary Statement Regarding Forward-Looking Statements

Certain disclosures in this press release include certain forward-looking statements that are based largely on our current expectations and reflect various estimates and assumptions by the Company. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements, and are in some instances beyond our control. Such risks, trends and uncertainties include: the Company's adoption of fresh-start reporting which caused its consolidated financial statements for periods subsequent to the date we and our subsidiaries (the "Debtors") emerged from chapter 11 bankruptcy to not be comparable to prior periods; the Company's ability to satisfy future capital and liquidity requirements; our ability to access the credit and capital markets at the times and in the amounts needed and on acceptable terms; our ability to retire outstanding debt and satisfy other contractual commitments; increased interest rate risk due to variable rate indebtedness; changes in advertising demand; changes in the overall market for television advertising, regulatory and judicial rulings; availability and cost of broadcast rights; competition and other economic conditions including fragmentation of the media landscape and competition from other media alternatives; our ability to develop and grow its on-line businesses; changes in accounting standards; adverse results from litigation, governmental investigations or tax-related proceedings or audits; our ability to settle unresolved claims filed in connection with the Debtors' chapter 11 cases and resolve the appeals seeking to overturn the confirmation order issued by the U.S. Bankruptcy Court for the District of Delaware on July 23, 2012; our ability to satisfy its pension and other postretirement employee benefit obligations; our ability to attract and retain employees; the effect of labor strikes, lock-outs and labor negotiations; our ability to realize benefits or synergies from acquisitions or divestitures or to operate our businesses effectively following acquisitions or divestitures; our ability to successfully integrate the acquisition of Local TV Holdings, LLC ("Local TV"), including our ability to program the acquired stations to successfully generate improved ratings and increased advertising revenue and to maintain relationships with cable operators, satellite providers and other key commercial partners of Local TV, retain key Local TV employees, and realize the expected benefits and synergies including the expected accretion in earnings; our reliance on third-party vendors and Tribune Publishing Company for various services and transitional services, respectively; our ability to adapt to technological changes; and other events beyond our control that may result in unexpected adverse operating results.

The words "believe," "expect," "anticipate," "estimate," "could," "should," "intend," "may," "plan," "seek," "will," "designed," "assume," "implied" and similar expressions generally identify forward-looking statements. Whether or not any such forward-looking statements are in fact achieved will depend on future events, some of which are beyond the control of the Company. Readers are cautioned not to place undue reliance on such forward-looking statements, which are being made as of the date of this press release. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Tribune Media Company and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands of dollars, except per share data)

(Unaudited)




































Three months ended
June 29, 2014


Three months ended
June 30, 2013



Six months ended
June 29, 2014


Six months ended
June 30, 2013













Operating Revenues


$                        894,480


$                        730,164



$              1,746,692


$              1,435,195













Operating Expenses











  Cost of sales (exclusive of items shown below)


440,660


379,430



863,417


755,065


  Selling, general and administrative


304,253


212,123



572,869


411,616


  Depreciation


25,631


19,148



49,864


35,576


  Amortization


62,616


29,895



124,874


59,856


  Total operating expenses


833,160


640,596



1,611,024


1,262,113













Operating Profit


61,320


89,568



135,668


173,082













Income on equity investments, net


118,659


37,398



156,587


53,488


Interest income


147


106



318


219


Interest expense


(41,972)


(12,354)



(85,275)


(24,476)


Gain on investment transactions


2,184


17



2,184


46


Other non-operating gain (loss), net


(1,295)


386



(1,138)


246


Reorganization items, net


(2,163)


(4,759)



(4,389)


(12,051)


Income Before Income Taxes


136,880


110,362



203,955


190,554


Income tax expense


53,958


44,051



79,965


65,884


Net Income


$                           82,922


$                           66,311



$                  123,990


$                  124,670













Earnings Per Common Share:











Basic and Diluted


$                               0.83


$                               0.66



$                         1.24


$                         1.25


 

Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of dollars, except for share and per share data)

(Unaudited)









June 29, 2014


December 29, 2013


Assets












Current Assets






  Cash and cash equivalents


$        851,224


$                    640,697


  Restricted cash and cash equivalents


19,273


221,879


  Accounts receivable (net of allowances of $18,423 and $16,254)


608,587


644,024


  Inventories


16,074


14,222


  Broadcast rights


73,919


105,325


  Income taxes receivable


1,998


11,240


  Deferred income taxes


61,407


54,221


  Prepaid expenses and other


69,451


43,672


  Total current assets


1,701,933


1,735,280








Properties






  Property, plant and equipment


1,148,725


1,115,253


  Accumulated depreciation


(120,488)


(74,446)


  Net properties


1,028,237


1,040,807








Other Assets






  Broadcast rights


72,671


61,175


  Goodwill


3,903,287


3,815,196


  Other intangible assets, net


2,520,832


2,516,543


  Assets held for sale


7,780


-


  Investments


2,004,055


2,163,162


  Other


157,879


143,846


  Total other assets


8,666,504


8,699,922


  Total Assets


$  11,396,674


$              11,476,009


 


Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of dollars, except for share and per share data)

(Unaudited)









June 29, 2014


December 29, 2013


Liabilities and Shareholders' Equity












Current Liabilities






  Accounts payable


$          97,705


$                      93,396


  Senior Toggle Notes


-


172,237


  Other debt due within one year


41,566


32,472


  Accrued reorganization costs


16,537


15,521


  Employee compensation and benefits


149,433


200,033


  Contracts payable for broadcast rights


110,304


139,146


  Deferred revenue


101,267


77,029


  Accrued expenses and other current liabilities


125,845


69,003


  Total current liabilities


642,657


798,837








Non-Current Liabilities






  Long-term debt


3,740,150


3,760,475


  Deferred income taxes


1,375,134


1,393,413


  Contracts payable for broadcast rights


86,585


80,942


  Contract intangible liability, net


174,149


193,730


  Pension obligations, net


187,057


199,176


  Post-retirement, medical, life and other benefits


63,585


63,123


  Other obligations


64,654


60,752


  Total non-current liabilities


5,691,314


5,751,611








Shareholders' Equity






  Preferred stock ($0.001 par value per share)






  Authorized: 40,000,000 shares; No shares issued and outstanding at June 29, 2014 and at Dec. 29, 2013

-


-


  Class A Common Stock ($0.001 par value per share)






        Authorized: 200,000,000 shares; Issued and outstanding: 93,692,489 shares at June 29, 2014 and 89,933,876 shares at Dec. 29, 2013


94


90


  Class B Common Stock ($0.001 par value per share)






        Authorized: 200,000,000 shares; Issued and outstanding: 2,945,897 shares at June 29, 2014 and 3,185,181 shares at Dec. 29, 2013


3


3


  Additional paid-in-capital


4,557,951


4,543,228


  Retained earnings


365,545


241,555


  Accumulated other comprehensive income


139,110


140,685


  Total shareholders' equity


5,062,703


4,925,561


  Total Liabilities and Shareholders' Equity


$  11,396,674


$              11,476,009


 

Tribune Media Company and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands of dollars)

(Unaudited)















Six months ended
June 29, 2014


Six months ended
June 30, 2013






Operating Activities






Net income


$                                               123,990


$                                               124,670


Adjustments to reconcile net income to net cash provided by (used for) operating activities:











  Stock-based compensation


16,026


1,866


  Pension credits, net of contributions


(18,932)


(18,120)


  Depreciation


49,864


35,576


  Amortization of contract intangible assets and liabilities


(17,946)


(14,408)


  Amortization of other intangible assets


124,874


59,856


  Income on equity investments, net


(156,587)


(53,488)


  Distributions from equity investments


155,730


124,073


  Amortization of debt issuance costs and original issue discount


6,675


1,887


  Gain on investment transactions


(2,184)


(46)


  Other non-operating (gain) loss, net


1,138


(246)


  Non-cash reorganization items, net


-


(1,083)


  Excess tax benefits from stock-based awards


(896)


-


  Transfers from restricted cash related to bankruptcy disbursements


684


141,297


  Changes in working capital items, excluding effects from acquisitions:






  Accounts receivable, net


55,291


43,975


  Inventories, prepaid expenses and other current assets


(10,903)


25,788


  Accounts payable


3,143


(87,659)


  Employee compensation and benefits, accrued expenses and other current liabilities







(37,307)


(39,576)


  Deferred revenue


16,757


8,947


  Accrued reorganization costs


1,016


(99,188)


  Income taxes


29,724


(30,563)


Deferred compensation, postretirement medical, life and other benefits


(1,701)


(11,807)


Change in broadcast rights, net of liabilities


(3,881)


(1,818)


Deferred income taxes


(57,589)


32,915


Change in non-current obligations for uncertain tax positions


-


(10,792)


Other, net


(6,088)


(6,721)


Net cash provided by operating activities


270,898


225,335








Investing Activities






Capital expenditures


(39,597)


(28,869)


Acquisitions, net of cash acquired


(191,596)


-


Transfers from restricted cash, net


200,813


-


Investments


(2,330)


(399)


Distributions from equity investments


159,602


-


Proceeds from sales of investments and real estate


705


10,994


Net cash (used for) provided by investing activities


127,597


(18,274)








Financing Activities






Repayment of Senior Toggle Notes


(172,237)


-


Repayments of long-term debt


(11,848)


(6,726)


Long-term debt issuance costs


(2,584)


-


Excess tax benefits from stock-based awards


896


-


Tax withholdings related to net share settlements of share-based awards


(3,201)


-


Proceeds from stock option exercises


1,006


-


Net cash used for financing activities


(187,968)


(6,726)








Net Increase (Decrease) in Cash and Cash Equivalents


210,527


200,335


Cash and cash equivalents, beginning of period


640,697


430,574


Cash and cash equivalents, end of period


$                                               851,224


$                                               630,909








Supplemental Schedule of Cash Flow Information






Cash paid during the period for:






  Interest


$                                                 67,086


$                                                 21,837


  Income taxes, net of refunds


$                                               107,539


$                                                 74,302


 


Tribune Media Company - Consolidated

Reconciliation of Operating Profit to Adjusted EBITDA

(in thousands of dollars)













Three months ended
June 29, 2014


Three months ended
June 30, 2013



Six months ended
June 29, 2014


Six months ended
June 30, 2013











Revenue


$                        894,480


$                        730,164



$              1,746,692


$              1,435,195































Operating Profit


$                           61,320


$                           89,568



$                  135,668


$                  173,082

Depreciation


25,631


19,148



49,864


35,576

Amortization


62,616


29,895



124,874


59,856

EBITDA


149,567


138,611



310,406


268,514











Special Items/Stock-Based Compensation:










  Stock-based compensation


6,778


1,866



16,026


1,866

  Severance and related charges


3,336


1,496



6,299


3,168

  Transaction-related costs


7,462


10,774



19,703


12,147

  Contract termination cost


15,646




15,646


  Other


3,136


(462)



4,986


2,225

EBITDA excluding Special Items/Stock-Based Compensation


185,925


152,285



373,066


287,920

Pension (credit) expense


(7,518)


(9,125)



(15,322)


(17,391)

Total Segment Adjusted EBITDA


178,407


143,160



357,744


270,529

Cash distributions from equity investments (1)


35,460


34,208



155,730


124,073

Cash pension contributions


(1,911)


(380)



(3,641)


(730)

Adjusted EBITDA


$                        211,956


$                        176,988



$                  509,833


$                  393,872











(1) Cash distributions from equity investments in 2014 excludes a distribution from Classified Ventures, LLC of approximately $160 million related to the sale of its Apartments.com business.

 


Tribune Media Company - Broadcasting

Summary of Broadcasting Revenues

(in thousands of dollars)









Second Quarter










Three months ended
June 29, 2014


Three months ended
June 30, 2013




As Reported


As Reported


Pro forma (1)


Advertising


$                        329,132


$      212,243


$        336,589


Retransmission consent fees


57,122


11,367


32,029


Carriage fees


14,591


13,719


13,719


Barter/trade


10,472


7,641


10,634


Copyright royalties


7,454


6,296


6,296


Other


7,025


9,233


6,710










Total Broadcasting Segment Revenues


$                        425,796


$      260,499


$        405,977










Year-to-Date










Six months ended
June 29, 2014


Six months ended
June 30, 2013




As Reported


As Reported


Pro forma (1)


Advertising


$                        633,475


$      403,620


$        637,238


Retransmission consent fees


112,687


21,315


61,596


Carriage fees


28,719


27,452


27,452


Barter/trade


20,783


15,055


20,975


Copyright royalties


13,986


16,004


16,004


Other


14,560


16,212


12,016










Total Broadcasting Segment Revenues


$                        824,210


$      499,658


$        775,281










(1) Amounts are pro forma for the acquisition of Local TV, which was completed on December 27, 2013, as if the acquisition had occurred as of the beginning of fiscal 2013. 

 


Tribune Media Company - Broadcasting

Reconciliation of Operating Profit to Adjusted EBITDA

(In thousands of dollars)









Second Quarter










Three months ended
June 29, 2014


Three months ended
June 30, 2013




As Reported


As Reported


Pro forma (1)










Operating Profit


$                         52,248


$        50,596


$        106,387


Depreciation


13,136


7,465


13,408


Amortization


56,172


26,010


28,172


EBITDA


121,556


84,071


147,967










Special Items/Stock-Based Compensation:








Stock-based compensation


2,113


464


663


Severance and related charges


108


504


504


Transaction-related costs


974




Contract termination cost


15,646




Other


12


1


1


EBITDA excluding Special Items/Stock-Based Compensation


140,409


85,040


149,135


Pension (credit) expense


61


26


26


Total Segment Adjusted EBITDA


$                       140,470


$        85,066


$        149,161










Year-to-Date










Six months ended
June 29, 2014


Six months ended
June 30, 2013




As Reported


As Reported


Pro forma (1)










Operating Profit


$                       116,401


$        97,575


$        195,660


Depreciation


25,512


13,928


25,672


Amortization


112,827


52,018


56,341


EBITDA


254,740


163,521


277,673










Special Items/Stock-Based Compensation:








Stock-based compensation


4,636


464


863


Severance and related charges


1,522


613


613


Transaction-related costs


1,391




Contract termination cost


15,646




Other


1,568


156


156


EBITDA excluding Special Items/Stock-Based Compensation


279,503


164,754


279,305


Pension (credit) expense


104


(43)


(43)


Total Segment Adjusted EBITDA


$                       279,607


$      164,711


$        279,262










(1) Amounts are pro forma for the acquisition of Local TV, which was completed on December 27, 2013, as if the acquisition had occurred as of the beginning of fiscal 2013. Pro forma operating expenses, depreciation and amortization for Local TV are based on Local TV's historical basis of presentation and do not reflect the impact of purchase accounting.

 

Tribune Media Company - Publishing

Summary of Publishing Revenues

(In thousands of dollars)























Three months ended
June 29, 2014


Three months ended
June 30, 2013



Six months ended
June 29, 2014


Six months ended
June 30, 2013











Advertising










  Retail


$                        125,896


$                        136,470



$                  239,237


$                          265,963

  National


45,684


53,992



98,117


109,593

  Classified


71,362


71,455



140,053


140,165

  Total advertising


242,942


261,917



477,407


515,721











Circulation


109,010


106,518



216,317


213,632

Other


116,732


101,230



228,758


206,184











Total Publishing Segment Revenues


$                        468,684


$                        469,665



$                  922,482


$                          935,537

 

Tribune Media Company - Publishing

Reconciliation of Operating Profit to Adjusted EBITDA

(In thousands of dollars)













Three months ended
June 29, 2014


Three months ended
June 30, 2013



Six months ended
June 29, 2014


Six months ended
June 30, 2013











Operating Profit


$                           32,896


$                         59,610



$                    71,560


$                  106,000

Depreciation


12,341


11,588



24,049


21,467

Amortization


6,444


3,885



12,047


7,838

EBITDA


51,681


75,083



107,656


135,305











Special Items/Stock-Based Compensation:










Stock-based compensation


1,345


504



2,793


504

Severance and related charges


3,130


992



4,287


2,555

Transaction-related costs


2,808


686



5,949


1,069

Other


3,124


(463)



3,416


2,069

EBITDA excluding Special Items/Stock-Based Compensation


62,088


76,802



124,101


141,502

Pension credit


(5,952)


(7,054)



(12,168)


(13,785)

Total Segment Adjusted EBITDA


$                           56,136


$                         69,748



$                  111,933


$                  127,717

 

Tribune Media Company - Corporate

Reconciliation of Operating Profit to Adjusted EBITDA

(in thousands of dollars)























Three months ended
June 29, 2014


Three months ended
June 30, 2013



Six months ended
June 29, 2014


Six months ended
June 30, 2013











Operating Profit


$                        (23,824)


$                        (20,638)



$                  (52,293)


$                  (30,493)

Depreciation


154


95



303


181

Amortization






EBITDA


(23,670)


(20,543)



(51,990)


(30,312)











Special Items/Stock-Based Compensation:










Stock-based compensation


3,320


898



8,597


898

Severance and related charges


98




490


Transaction-related costs


3,680


10,088



12,363


11,078

Other





2


EBITDA excluding Special Items/Stock-Based Compensation


(16,572)


(9,557)



(30,538)


(18,336)

Pension credit


(1,627)


(2,097)



(3,258)


(3,563)

Total Segment Adjusted EBITDA


$                        (18,199)


$                        (11,654)



$                  (33,796)


$                  (21,899)

 


Tribune Company - Broadcasting

Reconciliation of Operating Profit to Adjusted Segment EBITDA - Pro forma (1)

(In thousands of dollars)















Q1 2013


Q2 2013


Q3 2013


Q4 2013


Full Year 2013




Pro forma (1)


Pro forma (1)


Pro forma (1)


Pro forma (1)


Pro forma (1)


Advertising


$        300,649


$        336,589


$        319,249


$        336,912


$      1,293,399


Retransmission consent fees


29,567


32,029


34,167


34,774


130,537


Carriage fees


13,733


13,719


13,408


12,936


53,796


Barter/trade


10,341


10,634


10,540


11,253


42,768


Copyright royalties


9,708


6,296


6,261


10,689


32,954


Other


5,306


6,710


6,407


9,328


27,751


Total operating revenues


369,304


405,977


390,032


415,892


1,581,205














Operating expenses


280,031


299,590


295,600


307,047


1,182,268














Operating Profit


89,273


106,387


94,432


108,845


398,937


Depreciation


12,264


13,408


13,599


14,444


53,715


Amortization


28,169


28,172


28,264


29,451


114,056


EBITDA


129,706


147,967


136,295


152,740


566,708














Special items/Stock-Based Compensation:












Stock-based compensation


200


663


923


792


2,578


Severance and related charges


109


504


726


302


1,641


Transaction-related costs


-


-


48


181


229


Other


155


1


77


1,275


1,508


EBITDA excluding Special Items/Stock-Based Compensation


130,170


149,135


138,069


155,290


572,664


Pension (credit) expense


(69)


26


(21)


(22)


(86)


Total Segment Adjusted EBITDA


$        130,101


$        149,161


$        138,048


$        155,268


$         572,578














(1)  Amounts are pro forma for the acquisition of Local TV, which was completed on December 27, 2013, as if the acquisition had occurred as of the beginning of 2013. Pro forma operating expenses, depreciation and amortization for Local TV are based on Local TV's historical basis of presentation and do not reflect the impact of purchase accounting.

 

SOURCE Tribune Media Company



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