Tribune Company (ticker: TRB, exchange: New York Stock Exchange (.N))
News Release -
10-Dec-2002
Tribune Sees Strong Finish To 2002
Revenues Increased 7 Percent in November
Company Expects Record Fourth Quarter and Full Year Earnings
Growth Strategies to be Outlined at Media Conferences This Week
CHICAGO, Dec. 10 /PRNewswire-FirstCall/ -- Tribune Company (NYSE: TRB)
today reported its summary of revenues and newspaper advertising volume for
period 11, ended Nov. 24, 2002. Consolidated revenues for the period were
$446 million, up 7 percent from last year's $419 million. Year-to-date,
consolidated revenues are up 2 percent compared with last year.
"Business continues to be strong in December, so we are ending 2002 on a
positive note," said John W. Madigan, Tribune's chairman and chief executive
officer. "After a challenging start to the year, we expect to achieve record
earnings per share in the fourth quarter and for the full year as well."
Dennis FitzSimons, Tribune's president and chief operating officer said,
"These results reflect the continued dedication of all our employees and the
leadership of our management team. Despite flat revenues for the year,
publishing group cash flow margins have improved four percentage points, to
about 26 percent. Television cash flow margins will be about 40 percent,
improving more than 2 percentage points over last year." He continued, "Next
year our priorities will be top line revenue growth and continued margin
improvement."
Presentations Will Outline Strategies for Growth and Financial Outlook
FitzSimons will be the luncheon speaker at the UBS Warburg Media
Conference on Wednesday, Dec. 11, at the Grand Hyatt New York. On Thursday,
Madigan, FitzSimons and Don Grenesko, senior vice president and chief
financial officer, will make presentations during lunch at the CSFB Media Week
conference at the Plaza Hotel. The presentations will outline Tribune's
strategies for growth, as well as the company's financial outlook. Webcasts
of both presentations can be accessed at the company's Web site, tribune.com.
For 2002, Grenesko says the company is comfortable with analysts'
consensus earnings estimate of 54 cents for the fourth quarter and $1.84 for
the full year.
Grenesko says that in 2003, Tribune expects to grow earnings per share in
the low-double digit range, consistent with the current range of analysts'
estimates. He says the company also plans to generate about $1.6 billion of
EBITDA in 2003 and free cash flow of nearly $800 million. Margins in both the
publishing and television groups are expected to continue to improve in 2003.
Tribune Interactive, profitable for the first time this year, is again
expected to post good operating cash flow margins, due to revenue growth and
continued cost controls.
Impact of Thanksgiving Holiday
Period 11 retail and classified revenues are not comparable to November
2001 because of the timing of the Thanksgiving holiday. Last year's holiday
fell in Period 11, this year it falls in period 12. Thanksgiving is a
particularly strong week for retail advertisers but a soft week for classified
advertisers. Trends in retail and classified advertising should be analyzed
with periods 11 and 12 together to account for the change in the timing of the
Thanksgiving holiday.
Newspaper advertising revenues for period 11 plus estimates of the first
two weeks of period 12 (a six-week period) show an increase of 5 percent.
Retail rose 2 percent, national grew 14 percent and classified increased
3 percent. Help wanted decreased 7 percent, a sequential improvement from the
decrease of 8 percent in period 10. Auto increased 7 percent and real estate
grew 10 percent.
November Revenue Detail
Publishing revenues in November (a four week period) were $320 million, 2
percent higher than last year's $313 million. Advertising revenues increased
2 percent to $247 million, compared with $241 million in November 2001. Total
advertising inches were flat, while preprint pieces declined 3 percent.
The following results are for period 11 alone:
-
Retail advertising decreased 6 percent due to declines in the
department store, electronics and other retail categories, partially
offset by gains in the food category. Preprint revenues, which are
principally included in retail, were down 1 percent. Full run retail
linage was down 14 percent. As noted above, these declines are
principally attributable to the timing of the Thanksgiving holiday.
-
National advertising rose 13 percent due to strength in the hi-tech,
travel and resorts, financial and auto manufacturers categories. Full
run national volume was up 8 percent.
-
Classified advertising, which was positively impacted by the timing of
the Thanksgiving holiday, rose 7 percent as all categories increased.
Help wanted was up 5 percent, auto increased 3 percent and real estate
grew 20 percent. Full run classified volume was up 2 percent for the
period.
Broadcasting and Entertainment revenues increased 19 percent to
$119 million, compared with $100 million in November 2001. Television
revenues increased 21 percent. Radio/entertainment revenues increased
3 percent.
Tribune Interactive revenues grew 28 percent to $6.6 million in November,
up from $5.2 million last year due to strong growth in classifieds.
This press release contains certain comments or forward-looking statements
that are based largely on the company's current expectations and are subject
to certain risks, trends and uncertainties. Such comments and statements
should be understood in the context of Tribune's publicly available reports
filed with the SEC, including the most current 10-Q and 10-K that contain a
discussion of various factors that may affect the company's business. These
factors could cause actual future performance to differ materially from
current expectations.
Tribune Company is not responsible for updating the information contained
in this press release beyond the published date, nor for changes made to this
document by wire services or Internet service providers. More information on
Tribune is available on the Internet at www.tribune.com.
TRIBUNE (NYSE: TRB) is one of the country's premier media companies,
operating businesses in broadcasting, publishing and on the Internet. It
reaches more than 80 percent of U.S. households, and is the only media company
with television stations, newspapers and Web sites in the nation's top three
markets. Tribune media outlets span 24 television stations including national
"superstation" WGN-TV; 12 market-leading daily newspapers such as the Los
Angeles Times, Chicago Tribune and Newsday; and news and information Web sites
in 18 of the nation's top 30 markets.
TRIBUNE COMPANY
SUMMARY OF REVENUES (Unaudited)
For Period 11 Ended November 24, 2002
(In thousands)
Period 11 (4 weeks) Year-to-Date (47 weeks)
2002 2001 % 2002 2001 %
---------- ---------- --- ---------- ---------- ---
Publishing
----------
Advertising
Retail $ 111,879 $ 118,517 (6) $ 1,101,239 $1,084,474 2
National 60,759 53,576 13 624,548 607,220 3
Classified 73,989 68,971 7 902,762 970,762 (7)
---------- ---------- ----------- ----------
Sub-Total 246,627 241,064 2 2,628,549 2,662,456 (1)
Circulation 52,201 51,588 1 605,713 598,976 1
Other 21,262 20,539 4 222,029 211,395 5
---------- ---------- ----------- ----------
Segment
Total(A)(B) 320,090 313,191 2 3,456,291 3,472,827 -
---------- ---------- ----------- ----------
Broadcasting &
Entertainment
--------------
Television(C) 110,246 91,326 21 1,099,437 1,032,266 7
Radio/Enter. 9,197 8,916 3 209,872 204,676 3
---------- ---------- ----------- ----------
Segment Total(D) 119,443 100,242 19 1,309,309 1,236,942 6
---------- ---------- ----------- ----------
Interactive 6,639 5,186 28 70,568 53,909 31
---------- ---------- ----------- ----------
Consol. Rev.(E) $ 446,172 $ 418,619 7 $ 4,836,168 $4,763,678 2
========== ========== =========== ==========
(A) Publishing revenues for 2001 have been reclassified to conform with
the 2002 presentation. There was no effect on total revenues.
(B) Includes Virginia Gazette, acquired in February 2001, TV Data,
acquired in May 2001 and Chicago magazine, acquired in July 2002.
Excluding these acquisitions, publishing revenues increased 2% for the
period and decreased 1% for the year-to-date. Excluding these
acquisitions, retail revenues decreased 6% for the period and
increased 1% for the year-to-date. Excluding these acquisitions,
national revenues increased 13% for the period and 3% for the year-to-
date. Excluding these acquisitions, total advertising revenues
increased 2% for the period and decreased 1% for the year-to-date.
(C) Includes Tower Distribution (formerly United Video), WGN Cable's
distribution entity, which was acquired in April 2001, WTXX-Hartford,
acquired in August 2001, and WTTV-Indianapolis, acquired in July 2002.
Excluding these acquisitions, television revenues increased 19% for
the period and 5% for the year-to-date. Year-to-date includes
copyright royalties of $3.8 million in 2002 and $29.6 million in 2001.
Excluding acquisitions and copyright royalties, television revenues
increased 19% for the period and 8% for the year-to-date.
(D) Excluding acquisitions and copyright royalties, broadcasting and
entertainment revenues increased 18% for the period and 7% for the
year-to-date.
(E) Excluding acquisitions and copyright royalties, consolidated
revenues increased 6% for the period and 1% for the year-to-date.
TRIBUNE COMPANY
SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited)(A)
For Period 11 Ended November 24, 2002
(In thousands)
Period 11 (4 weeks) Year-to-Date (47 weeks)
2002 2001 % 2002 2001 %
---------- ---------- --- ---------- -------- ---
Full Run
L.A. Times 210 221 (5) 2,258 2,382 (5)
Chicago Tribune 190 176 8 1,947 1,963 (1)
Newsday 125 136 (8) 1,444 1,531 (6)
Other Dailies (B) 1,090 1,138 (4) 12,133 12,582 (4)
---------- ---------- ---------- --------
Total 1,615 1,671 (3) 17,782 18,458 (4)
========== ========== ========== ========
Part Run
L.A. Times 454 437 4 5,125 4,674 10
Chicago Tribune 447 438 2 4,978 5,112 (3)
Newsday 147 137 7 1,551 1,495 4
Other Dailies (B) 491 476 3 5,503 5,480 -
---------- ---------- ---------- --------
Total 1,539 1,488 3 17,157 16,761 2
========== ========== ========== ========
Total Advertising Inches
------------------------
Full Run
Retail 537 626 (14) 5,419 5,792 (6)
National 289 268 8 3,015 3,012 -
Classified 789 777 2 9,348 9,654 (3)
---------- ---------- ---------- --------
Sub-Total 1,615 1,671 (3) 17,782 18,458 (4)
Part Run 1,539 1,488 3 17,157 16,761 2
---------- ---------- ---------- --------
Total 3,154 3,159 - 34,939 35,219 (1)
========== ========== ========== ========
Preprint Pieces
---------------
L.A. Times 174,654 199,181 (12) 1,702,415 1,630,587 4
Chicago Tribune 276,339 264,758 4 2,742,297 2,413,548 14
Newsday 247,109 248,210 - 2,471,252 2,414,805 2
Other Dailies (B) 325,388 341,366 (5) 3,229,633 3,025,809 7
---------- ---------- ---------- ---------
Total 1,023,490 1,053,515 (3) 10,145,597 9,484,749 7
========== ========== ========== =========
(A) Volume for 2001 has been modified to conform with the 2002
presentation. Volume is based on preliminary internal data,
which may be updated in subsequent reports. Advertising volume
is presented only for daily newspapers.
(B) Other daily newspapers include The Baltimore Sun, South Florida Sun-
Sentinel, Orlando Sentinel, The Hartford Courant, The Morning Call,
Daily Press, The Advocate and Greenwich Time.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X83821266
SOURCE Tribune Company
-0- 12/10/2002
/CONTACT: Media, Gary Weitman, +1-312-222-3394 (Office), or
+1-312-222-1573 (Fax), gweitman@tribune.com , or Investor, Ruthellyn Musil,
+1-312-222-3787 (Office), or +1-312-222-1573 (Fax), rmusil@tribune.com , both
of Tribune Company/
|
Tribune Company
