Tribune Company (ticker: TRB, exchange: New York Stock Exchange (.N))
News Release -
14-Jul-2005
Tribune Reports 2005 Second Quarter Results CHICAGO, July 14 /PRNewswire-FirstCall/ -- Tribune Company (NYSE: TRB)
today reported second quarter 2005 diluted earnings per share of $.73 compared
with $.29 in the second quarter of 2004. The 2005 second quarter results
included a net non-operating gain of $.13 per diluted share, while the 2004
second quarter results included a net non-operating loss of $.24 per diluted
share.
Publishing operating profit in the 2004 second quarter included two pretax
charges totaling $52 million, or $.09 per diluted share: $17 million for the
elimination of 375 positions and $35 million as the initial estimate of the
cost to settle with advertisers regarding misstated circulation at Newsday and
Hoy, New York.
Tribune presents earnings per share amounts on a generally accepted
accounting principles ("GAAP") basis only. This differs from the pro forma
earnings per share amounts supplied by broker analysts to databases such as
First Call.
"Second quarter results reflect our continued focus on cost controls in
the face of a weak advertising environment in the nation's largest markets,"
said Dennis J. FitzSimons, Tribune chairman, president and chief executive
officer. "Our businesses generated about $400 million in operating cash flow
during the quarter, and we repurchased more than 5 million shares of stock."
SECOND QUARTER 2005 RESULTS(1)
(Compared to Second Quarter 2004)
CONSOLIDATED
Tribune's 2005 second quarter operating revenues decreased 2 percent to
$1.46 billion from $1.5 billion in the 2004 second quarter. Consolidated cash
operating expenses were down 5 percent, or $52 million. Operating cash flow
was up 5 percent to $396 million, while operating profit increased 6 percent
to $338 million.
(1) "Operating profit" for each segment excludes interest income and
expense, equity income and losses, non-operating items and income
taxes. "Operating cash flow" is defined as operating profit before
depreciation and amortization. "Cash operating expenses" are defined
as operating expenses before depreciation and amortization. Tables
accompanying this release include a reconciliation of operating profit
to operating cash flow and operating expenses to cash operating
expenses. References to individual daily newspapers include their
related businesses.
PUBLISHING
Publishing's second quarter operating revenues were $1 billion, down 1
percent compared with last year's second quarter. Publishing cash operating
expenses were down 6 percent, or $53 million; $52 million of the decrease is
attributable to the two charges discussed above. Publishing operating cash
flow was $263 million, a 21 percent increase from $217 million in 2004.
Publishing operating profit increased 27 percent to $218 million, up from $171
million in 2004.
Management Discussion
-- Advertising revenues increased 1 percent for the quarter. Excluding
Newsday, advertising revenues increased 2 percent. In September 2004,
Newsday implemented lower ad rates as a result of the significant
reduction in reported circulation.
-- Retail advertising revenues were down 1 percent for the quarter.
Decreases in department stores, food and drug and electronics
categories were partially offset by increases in general merchandise.
Preprint revenues increased 4 percent, led by an 11 percent increase in
Los Angeles, a 5 percent increase in Chicago and a 13 percent increase
in South Florida; Newsday was down 5 percent.
-- National advertising was down 4 percent for the quarter, with decreases
in transportation, wireless and resorts, partially offset by increases
in financial, auto and package goods. Los Angeles was down 4 percent;
Chicago was up 3 percent; and Newsday decreased 12 percent.
-- Classified advertising was up 6 percent for the quarter. Help wanted
revenues for the group were up 13 percent; Los Angeles was up 9
percent; Chicago rose 10 percent; and Newsday was flat. Real estate
revenues rose 18 percent and auto revenues were down 7 percent for the
quarter.
-- Circulation revenues were down 9 percent primarily due to volume
declines at each of the Company's newspapers, as well as selectively
higher discounting.
-- Interactive revenues, which are included in the above categories, were
up 45 percent to $45 million due to strength in classified revenues.
-- Cash operating expenses decreased 6 percent, or $53 million, due
primarily to the absence of the two previously discussed 2004 charges,
which totaled $52 million. All other cash operating expenses were down
$1 million, primarily due to a 1 percent decrease in compensation
expense, which was driven by a 5 percent staffing reduction. Newsprint
and ink expense was flat compared with last year's second quarter, as
newsprint cost per ton was up 9 percent while consumption decreased 8
percent.
BROADCASTING AND ENTERTAINMENT
Broadcasting and entertainment's second quarter operating revenues
decreased 6 percent to $423 million, down from $450 million in 2004. Group
cash operating expenses were flat compared with the 2004 second quarter.
Operating cash flow was $147 million, down 16 percent from $174 million, and
operating profit decreased 16 percent to $134 million from $160 million.
Television's second quarter revenues decreased 9 percent to $335 million,
down from $368 million in 2004. Television cash operating expenses were up
1 percent from last year. Television operating cash flow was $132 million, a
21 percent decrease from $167 million. Television operating profit declined
22 percent to $121 million, down from $155 million.
Management Discussion
-- Television revenues were affected by a continuing uneven advertising
environment, particularly in major markets, as well as softness in the
automobile, movie and telecom categories. Station revenues in New
York, Los Angeles, Chicago and Boston continue to be impacted by Local
People Meters.
-- Radio/entertainment results reflect increased revenues for the Chicago
Cubs primarily due to higher game receipts and growth in broadcasting
and marketing revenues.
EQUITY RESULTS
Net equity income was $12 million in the second quarter of 2005, compared
with $4 million in the second quarter of 2004. The increase reflects
improvements at TV Food Network, CareerBuilder and Comcast SportsNet Chicago.
NON-OPERATING ITEMS
In the 2005 second quarter, Tribune recorded a pretax non-operating gain
of $67 million ($41 million after-tax, or $.13 per diluted share), primarily
from marking-to-market the Company's PHONES derivatives and related Time
Warner investment.
In the 2004 second quarter, the Company recorded a pretax non-operating
loss of $127 million ($80 million after-tax, or $.24 per diluted share). Non-
operating items in the second quarter of 2004 included an after-tax loss of
$88 million from the early retirement of debt and an after-tax gain of $12
million from marking-to-market the Company's PHONES derivatives and related
Time Warner investment.
ADDITIONAL FINANCIAL DETAILS
Corporate expenses for the 2005 second quarter increased to $13.5 million
from $12.7 million in the second quarter of 2004, primarily due to higher
retirement plan expense.
Net interest expense for the 2005 second quarter decreased to $34 million,
down 3 percent from $35 million in the second quarter of 2004. Debt,
excluding the PHONES, was $1.9 billion at the end of the 2005 second quarter,
compared with $2.2 billion at the end of the second quarter of 2004.
The effective tax rate in the 2005 second quarter was 39.0 percent,
compared with 40.0 percent in the 2004 second quarter.
Diluted weighted average shares outstanding declined by 4 percent
primarily due to significant stock repurchases. The Company repurchased 15.5
million shares in the full year 2004 and 5.4 million shares in the first half
of 2005.
Capital expenditures were about $35 million in the second quarter of 2005.
2005 FINANCIAL ASSUMPTIONS
Consolidated revenues will continue to be impacted by many factors,
including changes in national and local economic conditions, job creation,
circulation levels and audience shares. Investors are encouraged to review
the Company's monthly revenue releases for current trends.
For the full year 2005, consolidated operating expenses are expected to
decline due to the absence of the $90 million advertising settlement charge
and the $41 million of position elimination costs recorded in 2004. All other
consolidated operating expenses are expected to be flat to up slightly for
2005 due to higher expenses for retirement and medical plans and newsprint,
along with a slight increase in broadcast rights expense. Net equity income
is projected to be higher than 2004. Interest expense is expected to be
somewhat below 2004 due to the full year impact of the debt refinancing in the
second quarter of 2004. The effective income tax rate for 2005 is expected to
be approximately 38 percent. Capital expenditures are projected to increase
slightly over 2004.
The Company is required to adopt Financial Accounting Standard No. 123R,
which requires the expensing of stock options, in the first quarter of 2006.
WEBCAST OF CONFERENCE CALL
Today at 8 a.m. (CDT), a live webcast of the 2005 second quarter
conference call will be accessible through http://www.tribune.com and
http://www.ccbn.com. An archive of the webcast will be available on these
sites from July 14 through July 21. More information about Tribune is
available at http://www.tribune.com or by calling 800/757-1694.
TRIBUNE (NYSE: TRB) is one of the country's top media companies, operating
businesses in publishing and broadcasting. It reaches more than 80 percent of
U.S. households and is the only media organization with newspapers, television
stations and web sites in the nation's top three markets. In publishing,
Tribune operates 11 leading daily newspapers including the Los Angeles Times,
Chicago Tribune and Newsday, plus a wide range of targeted publications
including Spanish-language Hoy. The Company's broadcasting group operates 26
television stations; Superstation WGN on national cable; Chicago's WGN-AM; and
the Chicago Cubs baseball team. Popular news and information web sites
complement Tribune's print and broadcast properties and extend the Company's
nationwide audience.
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 Securities and Exchange Commission ("SEC"), including the most
current annual 10-K report and quarterly 10-Q report, which contain a
discussion of various factors that may affect the Company's business or
financial results. Any of 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, or for changes made to this document by wire
services or Internet service providers. This press release is being furnished
to the SEC through a Form 8-K. The Company's next 10-Q report to be filed
with the SEC may contain updates to the information included in this release.
TRIBUNE COMPANY
SECOND QUARTER RESULTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
SECOND QUARTER (A)
---------------------------------
%
2005 2004 Change
--------- --------- ------
OPERATING REVENUES $ 1,462,068 $ 1,495,931 (2.3)
OPERATING EXPENSES(B) 1,123,768 1,177,174 (4.5)
--------- ---------
OPERATING PROFIT(C) 338,300 318,757 6.1
Net Income on Equity Investments 11,897 4,385 171.3
Interest Income 1,165 1,023 13.9
Interest Expense (35,367) (36,247) (2.4)
Non-Operating Items(D) 66,896 (127,401) NM
--------- ---------
Income Before Income Taxes 382,891 160,517 138.5
Income Taxes (149,499) (64,131) 133.1
--------- ---------
NET INCOME 233,392 96,386 142.1
Preferred Dividends (2,090) (2,077) 0.6
--------- ---------
Net Income Attributable
to Common Shares $ 231,302 $ 94,309 145.3
========= =========
EARNINGS PER SHARE
Basic $ .73 $ .29 151.7
--------- ---------
Diluted(E) $ .73 $ .29 151.7
--------- ---------
DIVIDENDS PER COMMON SHARE $ .18 $ .12 50.0
--------- ---------
Diluted Weighted Average Common
Shares Outstanding(F) 318,018 329,923 (3.6)
--------- ---------
(A) 2005 second quarter: March 28, 2005 to June 26, 2005 (13 weeks)
2004 second quarter: March 29, 2004 to June 27, 2004 (13 weeks)
(B) Operating expenses for the second quarter of 2004 included a charge
of $17 million, or $.03 per diluted share, for the elimination of
375 positions in the publishing group and a charge of $35 million,
or $.06 per diluted share, as the initial estimate of the cost
to settle with advertisers regarding misstated circulation at
Newsday and Hoy, New York.
(C) Operating profit excludes interest income and expense, equity
income and losses, non-operating items and income taxes.
(D) The second quarter of 2005 included the following non-operating items:
Pretax After-tax Diluted
Gain Gain EPS
--------- --------- ---------
Gain on derivatives and
related investments(1) $ 61,803 $ 37,700 $ .12
Other, net 5,093 3,107 .01
--------- --------- ---------
Total non-operating items $ 66,896 $ 40,807 $ .13
========= ========= =========
The second quarter of 2004 included the following non-operating items:
Pretax After-tax Diluted
Gain(Loss) Gain(Loss) EPS
--------- --------- ---------
Gain on derivatives and
related investments(1) $ 20,229 $ 12,340 $ .04
Loss on early debt retirement(2) (140,506) (87,549) (.26)
Other, net (7,124) (4,346) (.02)
--------- --------- ---------
Total non-operating items $ (127,401)$ (79,555)$ (.24)
========= ========= =========
(1) Gain on derivatives and related investments represents the
net change in fair values of the Company's PHONES derivatives
and related Time Warner shares.
(2) Loss on early debt retirement resulted from the retirement of
$620 million of debt in the second quarter of 2004 at a cash
premium of $137 million.
(E) For the second quarters of 2005 and 2004, weighted average common
shares outstanding used in the calculation of diluted earnings per
share ("EPS") were adjusted for the dilutive effect of stock options.
The Company's Series C, D-1, and D-2 convertible preferred shares were
not included in the calculation of diluted EPS for the second quarter
of either year because their effects were antidilutive. Following are
the calculations for the second quarter:
Second Quarter
---------------------
2005 2004
--------- ---------
Net income $ 233,392 $ 96,386
Dividends for Series C, D-1
and D-2 preferred stock (2,090) (2,077)
--------- ---------
Net income attributable
to common shares $ 231,302 $ 94,309
--------- ---------
Weighted average common
shares outstanding 315,466 324,296
Assumed exercise of stock
options, net of common shares
assumed repurchased 2,552 5,627
--------- ---------
Adjusted weighted average
common shares outstanding 318,018 329,923
--------- ---------
Diluted earnings per share $ .73 $ .29
========= =========
(F) The number of common shares outstanding, in thousands,
at June 26, 2005 was 312,619.
TRIBUNE COMPANY
FIRST HALF RESULTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
FIRST HALF (A)
---------------------------------
%
2005 2004 Change
--------- --------- ------
OPERATING REVENUES $ 2,777,812 $ 2,828,248 (1.8)
OPERATING EXPENSES(B) 2,187,455 2,236,216 (2.2)
--------- ---------
OPERATING PROFIT(C) 590,357 592,032 (0.3)
Net Income on Equity Investments 12,368 12 NM
Interest Income 2,247 2,299 (2.3)
Interest Expense (70,458) (82,925) (15.0)
Non-Operating Items(D) 63,052 (153,980) NM
--------- ---------
Income Before Income Taxes 597,566 357,438 67.2
Income Taxes(D) (221,329) (140,372) 57.7
--------- ---------
NET INCOME 376,237 217,066 73.3
Preferred Dividends (4,180) (4,154) 0.6
--------- ---------
Net Income Attributable
to Common Shares $ 372,057 $ 212,912 74.7
========= =========
EARNINGS PER SHARE
Basic $ 1.18 $ .65 81.5
--------- ---------
Diluted(E) $ 1.17 $ .64 82.8
--------- ---------
DIVIDENDS PER COMMON SHARE $ .36 $ .24 50.0
--------- ---------
Diluted Weighted Average Common
Shares Outstanding(F) 319,169 333,005 (4.2)
--------- ---------
(A) 2005 first half: Dec. 27, 2004 to June 26, 2005 (26 weeks)
2004 first half: Dec. 29, 2003 to June 27, 2004 (26 weeks)
(B) Operating expenses for the first half of 2004 included a charge
of $17 million, or $.03 per diluted share, for the elimination
of 375 positions in the publishing group and a charge of $35
million, or $.06 per diluted share, as the initial estimate of
the cost to settle with advertisers regarding misstated circulation
at Newsday and Hoy, New York.
(C) Operating profit excludes interest income and expense, equity
income and losses, non-operating items and income taxes.
(D) The first half of 2005 included the following non-operating items:
Pretax After-tax Diluted
Gain Gain EPS
--------- --------- ---------
Gain on derivatives and
related investments(1) $ 59,551 $ 36,326 $ .12
Other, net 3,501 2,136 .01
Income tax settlement
adjustments(2) - 11,829 .03
--------- --------- ---------
Total non-operating items $ 63,052 $ 50,291 $ .16
========= ========= =========
The first half of 2004 included the following non-operating items:
Pretax After-tax Diluted
Gain(Loss) Gain(Loss) EPS
--------- --------- ---------
Loss on derivatives and
related investments(1) $ (25,272)$ (15,416)$ (.04)
Loss on early debt retirement(3) (140,506) (87,549) (.26)
Gain on sales of subsidiaries
and investments, net(4) 18,874 11,513 .03
Other, net (7,076) (4,316) (.02)
--------- --------- ---------
Total non-operating items $ (153,980)$ (95,768)$ (.29)
========= ========= =========
(1) Gain(loss) on derivatives and related investments represents the
net change in fair values of the Company's PHONES derivatives
and related Time Warner shares.
(2) In the first quarter of 2005, the Company reduced its income tax
expense and liabilities by a total of $12 million as a result of
favorably resolving certain federal income tax issues.
(3) Loss on early debt retirement resulted from the retirement of
$620 million of debt in the second quarter of 2004 at a cash
premium of $137 million.
(4) In the first half of 2004, gain on sales of subsidiaries and
investments related primarily to the sale of the Company's 50%
interest in La Opinion.
(E) For the first halves of 2005 and 2004, weighted average common shares
outstanding used in the calculation of diluted earnings per share
("EPS") were adjusted for the dilutive effect of stock options. The
Company's Series C, D-1 and D-2 convertible preferred shares were not
included in the calculation of diluted EPS for the first half of
either year because their effects were antidilutive. Following are
the calculations for the first half:
First Half
---------------------
2005 2004
--------- ---------
Net income $ 376,237 $ 217,066
Dividends for Series C, D-1
and D-2 preferred stock (4,180) (4,154)
--------- ---------
Net income attributable
to common shares $ 372,057 $ 212,912
--------- ---------
Weighted average common
shares outstanding 316,387 326,799
Assumed exercise of stock
options, net of common shares
assumed repurchased 2,782 6,206
--------- ---------
Adjusted weighted average
common shares outstanding 319,169 333,005
--------- ---------
Diluted earnings per share $ 1.17 $ .64
========= =========
(F) The number of common shares outstanding, in thousands,
at June 26, 2005 was 312,619.
TRIBUNE COMPANY
BUSINESS SEGMENT DATA (Unaudited)
(In thousands)
SECOND QUARTER
----------------------------------
%
2005 2004 Change
PUBLISHING --------- --------- ------
Operating Revenues $ 1,038,624 $ 1,045,864 (0.7)
Cash Operating Expenses(A)(B) (775,763) (828,665) (6.4)
--------- ---------
Operating Cash Flow(C)(D) 262,861 217,199 21.0
Depreciation and Amortization
Expense (45,210) (46,148) (2.0)
--------- ---------
Total Operating Profit(D) $ 217,651 $ 171,051 27.2
========= =========
BROADCASTING AND ENTERTAINMENT
Operating Revenues
Television $ 334,505 $ 367,928 (9.1)
Radio/Entertainment 88,939 82,139 8.3
--------- ---------
Total Operating Revenues 423,444 450,067 (5.9)
Cash Operating Expenses(A)
Television (202,179) (200,773) 0.7
Radio/Entertainment (74,659) (75,626) (1.3)
--------- ---------
Total Cash Operating
Expenses (276,838) (276,399) 0.2
Operating Cash Flow(C)(D)
Television 132,326 167,155 (20.8)
Radio/Entertainment 14,280 6,513 119.3
--------- ---------
Total Operating Cash Flow 146,606 173,668 (15.6)
Depreciation and Amortization Expense
Television (11,282) (11,974) (5.8)
Radio/Entertainment (1,203) (1,283) (6.2)
--------- ---------
Total Depreciation and
Amortization Expense (12,485) (13,257) (5.8)
Operating Profit(D)
Television 121,044 155,181 (22.0)
Radio/Entertainment 13,077 5,230 150.0
--------- ---------
Total Operating Profit $ 134,121 $ 160,411 (16.4)
========= =========
CORPORATE EXPENSES
Operating Cash Flow(C)(D) $ (13,066)$ (12,297) 6.3
Depreciation and Amortization
Expense (406) (408) (0.5)
--------- ---------
Total Operating Loss(D) $ (13,472)$ (12,705) 6.0
======== =========
CONSOLIDATED
Operating Revenues $ 1,462,068 $ 1,495,931 (2.3)
Cash Operating Expenses(A)(B) (1,065,667) (1,117,361) (4.6)
--------- ---------
Operating Cash Flow(C)(D) 396,401 378,570 4.7
Depreciation and Amortization
Expense (58,101) (59,813) (2.9)
--------- ---------
Total Operating Profit(D) $ 338,300 $ 318,757 6.1
========= =========
(A) The Company uses cash operating expenses to evaluate internal
performance. The Company has presented cash operating expenses
because it is a common measure used by rating agencies, financial
analysts and investors. Cash operating expense is not a measure of
financial performance under generally accepted accounting principles
("GAAP") and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with GAAP.
Following is a reconciliation of operating expenses to cash operating
expenses for the second quarter of 2005:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating expenses $ 820,973 $ 289,323 $ 13,472 $ 1,123,768
Less: depreciation and
amortization expense 45,210 12,485 406 58,101
--------- --------- --------- ---------
Cash operating
expenses $ 775,763 $ 276,838 $ 13,066 $ 1,065,667
========= ========= ========= =========
Following is a reconciliation of operating expenses to cash operating
expenses for the second quarter of 2004:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating expenses $ 874,813 $ 289,656 $ 12,705 $ 1,177,174
Less: depreciation and
amortization expense 46,148 13,257 408 59,813
--------- --------- --------- ---------
Cash operating
expenses $ 828,665 $ 276,399 $ 12,297 $ 1,117,361
========= ========= ========= =========
(B) Publishing cash operating expenses for both the second quarter and
first half of 2004 included a charge of $17 million for the
elimination of 375 positions and a charge of $35 million as the
initial estimate of the cost to settle with advertisers regarding
misstated circulation at Newsday and Hoy, New York.
(C) Operating cash flow is defined as operating profit before depreciation
and amortization. The Company uses operating cash flow along with
operating profit and other measures to evaluate the financial
performance of the Company's business segments. The Company has
presented operating cash flow because it is a common alternative
measure of financial performance used by rating agencies, financial
analysts and investors. These groups use operating cash flow along
with other measures as a way to estimate the value of a company. The
Company's definition of operating cash flow may not be consistent with
that of other companies. Operating cash flow does not represent cash
provided by operating activities as reflected in the Company's
consolidated statements of cash flows, is not a measure of financial
performance under GAAP and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with
GAAP.
(D) Operating profit for each segment excludes interest income and
expense, equity income and losses, non-operating items and income
taxes.
Following is a reconciliation of operating profit(loss) to operating
cash flow for the second quarter of 2005:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating profit
(loss) $ 217,651 $ 134,121 $ (13,472)$ 338,300
Add back: depreciation
and amortization
expense 45,210 12,485 406 58,101
--------- --------- --------- ---------
Operating cash flow $ 262,861 $ 146,606 $ (13,066)$ 396,401
========= ========= ========= =========
Following is a reconciliation of operating profit(loss) to operating
cash flow for the second quarter of 2004:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating profit
(loss) $ 171,051 $ 160,411 $ (12,705)$ 318,757
Add back: depreciation
and amortization
expense 46,148 13,257 408 59,813
--------- --------- --------- ---------
Operating cash flow $ 217,199 $ 173,668 $ (12,297)$ 378,570
========= ========= ========= =========
TRIBUNE COMPANY
BUSINESS SEGMENT DATA (Unaudited)
(In thousands)
FIRST HALF
----------------------------------
%
PUBLISHING 2005 2004 Change
--------- --------- ------
Operating Revenues $ 2,044,136 $ 2,049,447 (0.3)
Cash Operating Expenses(A)(B) (1,538,090) (1,597,607) (3.7)
--------- ---------
Operating Cash Flow(C)(D) 506,046 451,840 12.0
Depreciation and Amortization
Expense (89,856) (91,241) (1.5)
--------- ---------
Total Operating Profit(D) $ 416,190 $ 360,599 15.4
========= =========
BROADCASTING AND ENTERTAINMENT
Operating Revenues
Television $ 624,594 $ 674,367 (7.4)
Radio/Entertainment 109,082 104,434 4.5
--------- ---------
Total Operating Revenues 733,676 778,801 (5.8)
Cash Operating Expenses(A)
Television (393,149) (393,050) -
Radio/Entertainment (114,109) (102,368) 11.5
--------- ---------
Total Cash Operating
Expenses (507,258) (495,418) 2.4
Operating Cash Flow(C)(D)
Television 231,445 281,317 (17.7)
Radio/Entertainment (5,027) 2,066 NM
--------- ---------
Total Operating Cash Flow 226,418 283,383 (20.1)
Depreciation and Amortization Expense
Television (22,960) (23,733) (3.3)
Radio/Entertainment (2,371) (2,620) (9.5)
--------- ---------
Total Depreciation and
Amortization Expense (25,331) (26,353) (3.9)
Operating Profit(Loss)(D)
Television 208,485 257,584 (19.1)
Radio/Entertainment (7,398) (554) NM
--------- ---------
Total Operating Profit $ 201,087 $ 257,030 (21.8)
========= =========
CORPORATE EXPENSES
Operating Cash Flow(C)(D) $ (26,113)$ (24,768) 5.4
Depreciation and Amortization
Expense (807) (829) (2.7)
--------- ---------
Total Operating Loss(D) $ (26,920)$ (25,597) 5.2
========= =========
CONSOLIDATED
Operating Revenues $ 2,777,812 $ 2,828,248 (1.8)
Cash Operating Expenses(A)(B) (2,071,461) (2,117,793) (2.2)
--------- ---------
Operating Cash Flow(C)(D) 706,351 710,455 (0.6)
Depreciation and Amortization
Expense (115,994) (118,423) (2.1)
--------- ---------
Total Operating Profit(D) $ 590,357 $ 592,032 (0.3)
========= =========
(A) The Company uses cash operating expenses to evaluate internal
performance. The Company has presented cash operating expenses
because it is a common measure used by rating agencies, financial
analysts and investors. Cash operating expense is not a measure of
financial performance under generally accepted accounting principles
("GAAP") and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with GAAP.
Following is a reconciliation of operating expenses to cash operating
expenses for the first half of 2005:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating expenses $1,627,946 $ 532,589 $ 26,920 $ 2,187,455
Less: depreciation and
amortization expense 89,856 25,331 807 115,994
--------- --------- --------- ---------
Cash operating
expenses $1,538,090 $ 507,258 $ 26,113 $ 2,071,461
========= ========= ========= =========
Following is a reconciliation of operating expenses to cash operating
expenses for the first half of 2004:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating expenses $1,688,848 $ 521,771 $ 25,597 $ 2,236,216
Less: depreciation and
amortization expense 91,241 26,353 829 118,423
--------- --------- --------- ---------
Cash operating
expenses $1,597,607 $ 495,418 $ 24,768 $ 2,117,793
========= ========= ========= =========
(B) Publishing cash operating expenses for both the second quarter and
first half of 2004 included a charge of $17 million for the
elimination of 375 positions and a charge of $35 million as the
initial estimate of the cost to settle with advertisers regarding
misstated circulation at Newsday and Hoy, New York.
(C) Operating cash flow is defined as operating profit before depreciation
and amortization. The Company uses operating cash flow along with
operating profit and other measures to evaluate the financial
performance of the Company's business segments. The Company has
presented operating cash flow because it is a common alternative
measure of financial performance used by rating agencies, financial
analysts and investors. These groups use operating cash flow along
with other measures as a way to estimate the value of a company. The
Company's definition of operating cash flow may not be consistent with
that of other companies. Operating cash flow does not represent cash
provided by operating activities as reflected in the Company's
consolidated statements of cash flows, is not a measure of financial
performance under GAAP and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with
GAAP.
(D) Operating profit for each segment excludes interest income and
expense, equity income and losses, non-operating items and income
taxes.
Following is a reconciliation of operating profit(loss) to operating
cash flow for the first half of 2005:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating profit
(loss) $ 416,190 $ 201,087 $ (26,920)$ 590,357
Add back: depreciation
and amortization
expense 89,856 25,331 807 115,994
--------- --------- --------- ---------
Operating cash flow $ 506,046 $ 226,418 $ (26,113)$ 706,351
========= ========= ========= =========
Following is a reconciliation of operating profit(loss) to operating
cash flow for the first half of 2004:
Publishing B&E Corporate Consol.
--------- --------- --------- ---------
Operating profit
(loss) $ 360,599 $ 257,030 $ (25,597)$ 592,032
Add back: depreciation
and amortization
expense 91,241 26,353 829 118,423
--------- --------- --------- ---------
Operating cash flow $ 451,840 $ 283,383 $ (24,768)$ 710,455
========= ========= ========= =========
TRIBUNE COMPANY
SUMMARY OF REVENUES (Unaudited)
For Second Quarter Ended June 26, 2005
(In thousands)
Second Quarter (13 weeks) Year-to-Date (26 weeks)
2005 2004 % 2005 2004 %
---------- ---------- --- ---------- ---------- ---
Publishing
----------
Advertising
Retail $ 331,637 $ 335,572 (1.2) $ 635,821 $ 630,901 0.8
National 190,256 197,765 (3.8) 390,770 401,600 (2.7)
Classified 301,037 284,508 5.8 583,808 559,704 4.3
---------- ---------- ---------- ----------
Sub-Total 822,930 817,845 0.6 1,610,399 1,592,205 1.1
Circulation 149,918 165,006 (9.1) 301,634 330,909 (8.8)
Other 65,776 63,013 4.4 132,103 126,333 4.6
---------- ---------- ---------- ----------
Segment
Total(A) 1,038,624 1,045,864 (0.7) 2,044,136 2,049,447 (0.3)
---------- ---------- ---------- ----------
Broadcasting &
Entertainment
--------------
Television 334,505 367,928 (9.1) 624,594 674,367 (7.4)
Radio/Enter. 88,939 82,139 8.3 109,082 104,434 4.5
---------- ---------- ---------- ----------
Segment Total 423,444 450,067 (5.9) 733,676 778,801 (5.8)
---------- ---------- ---------- ----------
Consol. Rev. $1,462,068 $1,495,931 (2.3) $2,777,812 $2,828,248 (1.8)
========== ========== ========== ==========
(A) Publishing advertising and other revenues for 2004 have been
reclassified to conform with the 2005 presentation. There was no
effect on total revenues.
TRIBUNE COMPANY
SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited)(A)
For Second Quarter Ended June 26, 2005
(In thousands)
Second Quarter (13 weeks) Year-to-Date (26 weeks)
2005 2004 % 2005 2004 %
---------- ---------- --- ---------- ---------- ---
Full Run
--------
L.A. Times 540 603 (10.4) 1,120 1,221 (8.3)
Chicago Tribune 519 578 (10.2) 1,021 1,123 (9.1)
Newsday 414 418 (1.0) 764 774 (1.3)
Other Dailies (B) 3,548 3,681 (3.6) 6,848 7,205 (5.0)
---------- ---------- ---------- ----------
Total 5,021 5,280 (4.9) 9,753 10,323 (5.5)
========== ========== ========== ==========
Part Run
--------
L.A. Times 1,357 1,462 (7.2) 2,669 2,907 (8.2)
Chicago Tribune 1,807 1,678 7.7 3,479 3,231 7.7
Newsday 568 524 8.4 1,029 950 8.3
Other Dailies (B) 1,660 1,594 4.1 3,237 3,134 3.3
---------- ---------- ---------- ----------
Total 5,392 5,258 2.5 10,414 10,222 1.9
========== ========== ========== ==========
Total Advertising Inches
------------------------
Full Run
Retail 1,494 1,559 (4.2) 2,879 2,937 (2.0)
National 922 996 (7.4) 1,888 1,990 (5.1)
Classified 2,605 2,725 (4.4) 4,986 5,396 (7.6)
---------- ---------- ---------- ----------
Sub-Total 5,021 5,280 (4.9) 9,753 10,323 (5.5)
Part Run 5,392 5,258 2.5 10,414 10,222 1.9
---------- ---------- ---------- ----------
Total 10,413 10,538 (1.2) 20,167 20,545 (1.8)
========== ========== ========== ==========
Preprint Pieces
---------------
L.A. Times 947,042 884,310 7.1 1,837,938 1,640,073 12.1
Chicago
Tribune 1,050,468 994,477 5.6 1,957,675 1,871,227 4.6
Newsday 715,628 720,813 (0.7) 1,395,516 1,370,263 1.8
Other
Dailies (B) 1,013,152 1,010,244 0.3 2,006,911 2,002,447 0.2
---------- ---------- ---------- ----------
Total 3,726,290 3,609,844 3.2 7,198,040 6,884,010 4.6
========== ========== ========== ==========
(A) Volume for 2004 has been modified to conform with the 2005
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, Greenwich Time, Hoy, New York, Hoy,
Chicago, and Hoy, Los Angeles.
TRIBUNE COMPANY
SUMMARY OF REVENUES (Unaudited)
For Period 6 Ended June 26, 2005
(In thousands)
Period 6 (5 weeks) Year-to-Date (26 weeks)
2005 2004 % 2005 2004 %
---------- ---------- --- ---------- ---------- ---
Publishing
----------
Advertising
Retail $ 129,511 $ 132,124 (2.0) $ 635,821 $ 630,901 0.8
National 75,242 75,386 (0.2) 390,770 401,600 (2.7)
Classified 113,046 108,570 4.1 583,808 559,704 4.3
---------- ---------- ---------- ----------
Sub-Total 317,799 316,080 0.5 1,610,399 1,592,205 1.1
Circulation 56,777 62,571 (9.3) 301,634 330,909 (8.8)
Other 23,914 23,355 2.4 132,103 126,333 4.6
---------- ---------- ---------- ----------
Segment
Total(A) 398,490 402,006 (0.9) 2,044,136 2,049,447 (0.3)
---------- ---------- ---------- ----------
Broadcasting &
Entertainment
--------------
Television 128,406 145,548 (11.8) 624,594 674,367 (7.4)
Radio/Enter. 39,840 34,391 15.8 109,082 104,434 4.5
---------- ---------- ---------- ----------
Segment Total 168,246 179,939 (6.5) 733,676 778,801 (5.8)
---------- ---------- ---------- ----------
Consol. Rev. $ 566,736 $ 581,945 (2.6) $2,777,812 $2,828,248 (1.8)
========== ========== ========== ==========
(A) Publishing advertising and other revenues for 2004 have been
reclassified to conform with the 2005 presentation. There was no
effect on total revenues.
TRIBUNE COMPANY
SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited)(A)
For Period 6 Ended June 26, 2005
(In thousands)
Period 6 (5 weeks) Year-to-Date (26 weeks)
2005 2004 % 2005 2004 %
---------- ---------- --- ---------- ---------- ---
Full Run
--------
L.A. Times 215 243 (11.5) 1,120 1,221 (8.3)
Chicago Tribune 204 224 (8.9) 1,021 1,123 (9.1)
Newsday 165 171 (3.5) 764 774 (1.3)
Other Dailies (B) 1,375 1,431 (3.9) 6,848 7,205 (5.0)
---------- ---------- ---------- ----------
Total 1,959 2,069 (5.3) 9,753 10,323 (5.5)
========== ========== ========== ==========
Part Run
--------
L.A. Times 552 600 (8.0) 2,669 2,907 (8.2)
Chicago Tribune 715 656 9.0 3,479 3,231 7.7
Newsday 216 205 5.4 1,029 950 8.3
Other Dailies (B) 605 603 0.3 3,237 3,134 3.3
---------- ---------- ---------- ----------
Total 2,088 2,064 1.2 10,414 10,222 1.9
========== ========== ========== ==========
Total Advertising Inches
------------------------
Full Run
Retail 581 610 (4.8) 2,879 2,937 (2.0)
National 362 386 (6.2) 1,888 1,990 (5.1)
Classified 1,016 1,073 (5.3) 4,986 5,396 (7.6)
---------- ---------- ---------- ----------
Sub-Total 1,959 2,069 (5.3) 9,753 10,323 (5.5)
Part Run 2,088 2,064 1.2 10,414 10,222 1.9
---------- ---------- ---------- ----------
Total 4,047 4,133 (2.1) 20,167 20,545 (1.8)
========== ========== ========== ==========
Preprint Pieces
---------------
L.A. Times 377,224 356,511 5.8 1,837,938 1,640,073 12.1
Chicago Tribune 402,578 393,370 2.3 1,957,675 1,871,227 4.6
Newsday 265,029 281,287 (5.8) 1,395,516 1,370,263 1.8
Other Dailies(B)393,583 391,820 0.4 2,006,911 2,002,447 0.2
---------- ---------- ---------- ----------
Total 1,438,414 1,422,988 1.1 7,198,040 6,884,010 4.6
========== ========== ========== ==========
(A) Volume for 2004 has been modified to conform with the 2005
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, Greenwich Time, Hoy, New York, Hoy,
Chicago, and Hoy, Los Angeles.
SOURCE Tribune Company
-0- 07/14/2005
/CONTACT: Media, Gary Weitman, +1-312-222-3394, fax, +1-312-222-1573,
gweitman@tribune.com , Investors, Ruthellyn Musil, +1-312-222-3787, fax,
+1-312-222-1573, rmusil@tribune.com , both of Tribune Company/
/Web site: http://www.tribune.com /
(TRB)
CO: Tribune Company
ST: Illinois
IN: ENT PUB TVN
SU: ERN CCA
CS-AM
-- CGTH004 --
5324 07/14/2005 05:45 EDT http://www.prnewswire.com
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Tribune Company
