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Press Releases

Tribune Media Company Reports Third Quarter 2014 Results

Nov 11, 2014

NEW YORK, Nov. 11, 2014 /PRNewswire/ -- Tribune Media Company (the "Company"; OTC:TRBAA) today reported its results for the three and nine months ended September 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.

Q3 Highlights

  • Consolidated operating revenues grew 69% to $474.9 million compared to the third quarter of 2013.
  • Consolidated operating profit grew 21% to $55.3 million compared to the third quarter of 2013.
  • Consolidated Adjusted EBITDA grew 52% to $146.1 million compared to the third quarter of 2013.
  • On August 4, 2014, completed the spin-off of the Company's publishing operations into an independent publicly-traded company, Tribune Publishing Company.
  • Repaid $275 million of our outstanding term loan debt.
  • Announced the sale of our equity interest in Classified Ventures, LLC. The transaction closed on October 1, 2014.
  • Strong progress on content ownership strategy; Manhattan premiered to widespread critical acclaim.
  • Recently completed three strategic acquisitions within our Digital and Data segment – What's ON, Baseline and HWW.

"We are pleased to see many of the long-term initiatives we have put in place since early 2013 begin to take shape," said Peter Liguori, Tribune Media's President and Chief Executive Officer. "Our recently achieved scale has put us in a competitive position to drive affiliate fees, expand our capabilities to maximize political advertising revenues and fortify our relationships with our network partners.  The strong cash flows generated by our business have enabled us to develop a general entertainment cable network, pursue a content ownership strategy and invest in building our data business. I am confident that the combination of our media assets and strong operational focus will keep us on the path for continued success."

Discontinued Operations and Changes in Presentation

As a result of the spin-off of the Company's publishing operations (the "Publishing Spin-off") and the changes to our reportable segments, as further described below, certain previously reported amounts have been reclassified to conform to the current presentation as well as to reflect the reclassification of the historical results of operations for the businesses included in the Publishing Spin-Off to discontinued operations for all periods presented.

Following the Publishing Spin-Off, we conduct our operations through two reportable segments: Television and Entertainment and Digital and Data. In addition, we report and include under Corporate and Other, certain administrative activities associated with operating the corporate office functions and managing our frozen company-sponsored defined benefit pension plans, as well as the management of certain real estate assets, including revenues from leasing our owned office and production facilities.

Consolidated Results

Consolidated operating revenues for the third quarter of 2014 were $474.9 million compared to $280.6 million in the third quarter of 2013, representing an increase of $194.3 million, or 69%.  Consolidated revenues for the nine months ended September 2014 were $1,395.9 million compared to $847.7 million in the nine months ended September 2013, representing an increase of $548.2 million, or 65%. 

Consolidated operating profit for the third quarter of 2014 was $55.3 million compared to $45.8 million in the third quarter of 2013, representing an increase of $9.5 million, or 21%. For the nine months ended September 2014, consolidated operating profit was $137.7 million, a decrease of $17.9 million, or 11%, as compared to $155.6 million in the nine months ended September 2013.

Basic and diluted earnings per common share from continuing operations for the third quarter of 2014 were $0.53 compared to $0.39 for the third quarter of 2013. Basic and diluted earnings per common share from continuing operations for the nine months ended September 2014 was $1.48 and $1.47, respectively, compared to $1.30 for the nine months ended September 2013.

Consolidated Adjusted EBITDA increased to $146.1 million in the third quarter of 2014 from $96.4 million in the third quarter of 2013. Consolidated Adjusted EBITDA increased to $570.2 million in the nine months ended September 2014 from $393.9 million in the nine months ended September 2013. 

Cash distributions from equity investments, which are included in Consolidated Adjusted EBITDA, in the third quarter of 2014 were $17.7 million compared to $16.2 million in the third quarter of 2013. Cash distributions from equity investments in the nine months ended September 2014 were $173.4 million compared to $140.3 million in the nine months ended September 2013. In addition to these quarterly cash distributions, the Company also received a cash distribution in the second quarter of 2014 of $159.6 million from Classified Ventures, LLC in connection with the sale of its Apartments.com business, which was not included in Consolidated Adjusted EBITDA as it is not part of the recurring dividends that we have historically received. 

Free Cash Flow increased to $30.0 million in the third quarter of 2014 from $18.3 million in the third quarter of 2013.  Free Cash Flow increased to $239.2 million in the nine months ended September 2014 from $197.9 million in the nine months ended September 2013. 

Television and Entertainment

Television and Entertainment segment revenues were $417.2 million in the third quarter of 2014, an increase of $169.0 million, or 68%, as compared to $248.2 million in the third quarter of 2013.  For the nine months ended September 2014, Television and Entertainment segment revenues were $1,241.4 million, an increase of $493.5 million, or 66%, compared with $747.9 million in the nine months ended September 2013.

Television and Entertainment segment Adjusted EBITDA was $132.6 million in third quarter of 2014, compared to $77.8 million in the third quarter of 2013, an increase of $54.8 million, or 70%.  For the nine months ended September 2014, Television and Entertainment segment Adjusted EBITDA was $412.2 million compared with $242.5 million in the nine months ended September 2013, an increase of $169.7 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 does not reflect the impact of purchase accounting.

Television and Entertainment segment revenues were $417.2 million in the third quarter of 2014, compared to $390.0 million in the third quarter of 2013.  This represents an increase of $27.2 million, or 7.0%. Retransmission consent fees in third quarter of 2014 were $58.1 million, compared to $34.2 million in the third quarter of 2013, an increase of $23.9 million, or 70%.  Advertising revenues increased to $321.1 million in the third quarter of 2014 as compared with $319.2 million in the third quarter of 2013, representing an increase of $1.9 million, or 0.6%. Increases in political advertising revenues of approximately $17.1 million in the quarter were offset by declines in core advertising of $17.7 million, or 5.9%.  For the nine months ended September 2014, Television and Entertainment segment revenues increased $76.1 million, or 6.5%, to $1,241.4 million compared to $1,165.3 million in the nine months ended September 2013.  Retransmission consent fees in the nine months ended September 2014 increased $75.0 million, or 78%, to $170.8 million, compared to $95.8 million in the nine months ended September 2013.  Advertising revenues decreased to $954.5 million in the nine months ended September 2014 as compared with $956.4 million in the nine months ended September 2013, representing a decrease of $1.9 million. Declines in core advertising of $32.5 million, or 3.6%, were partially offset by increases in political advertising revenues of approximately $25.0 million in the first nine months of 2014.

Television and Entertainment Adjusted EBITDA was $132.6 million in the third quarter of 2014, compared to $138.0 million in the third quarter of 2013.  Adjusted EBITDA in the third quarter of 2014 included $24 million of costs associated with new original programming at WGN America.  For the nine months ended September 2014, Television and Entertainment Adjusted EBITDA was $412.2 million, compared to $417.3 million in the nine months ended September 2013. Adjusted EBITDA in the nine months ended September 2014 included $55 million of costs associated with new original programming at WGN America.

Digital and Data

Digital and Data segment revenues in the third quarter of 2014 were $44.6 million, compared to $18.9 million in the third quarter of 2013, an increase of $25.7 million.  This increase was primarily attributable to the acquisition of Gracenote in January 2014. For the nine months ended September 2014, Digital and Data segment revenues were $112.8 million, compared to $59.9 million in the nine months ended September 2013. The increase of $52.9 million, or 88%, was primarily attributable to the acquisition of Gracenote in January 2014.

Digital and Data segment Adjusted EBITDA was $10.0 million in the third quarter of 2014, compared to $7.3 million in the third quarter of 2013, an increase of $2.7 million, or 37%.  The change was primarily due to the impact of the acquisition of Gracenote.  For the nine months ended September 2014, Digital and Data segment Adjusted EBITDA was $14.8 million, compared to $21.4 million in the nine months ended September 2013, a decrease of $6.6 million, or 31%. The reduction in Adjusted EBITDA for the nine month period was attributable to costs associated with the establishment of the Digital and Data infrastructure, operating costs incurred in connection with Newsbeat, which was shut down during the third quarter of 2014, and costs associated with the integration of acquired businesses.  

Corporate and Other

Corporate and Other operating revenues represent real estate rental revenues earned from third parties, including Tribune Publishing. Real estate revenues for the third quarter of 2014 were $13.1 million compared to $13.5 million in the third quarter of 2013, representing a decrease of $0.4 million, or 3.0%.  Real estate revenues for the nine months ended September 2014 were $41.8 million compared to $39.9 million in the nine months ended September 2013, representing an increase of $1.9 million, or 4.8%.    

Corporate and Other expenses reduced Adjusted EBITDA in the third quarter of 2014 by $14.1 million, compared to $4.9 million in the third quarter of 2013. The $9.2 million increase in expenses was primarily attributable to increased corporate costs due to higher compensation expense, costs associated with the implementation of a new technology application and infrastructure costs associated with the Publishing Spin-off.

For the nine months ended September 2014, Corporate and Other expenses reduced Adjusted EBITDA by $30.1 million compared to $10.3 million in the nine months ended September 2013. The $19.8 million increase in expenses was primarily attributable to higher real estate operating expenses primarily due to higher property management fees and real estate development projects, and higher corporate costs due to increased compensation expense, costs associated with the implementation of a new technology application and costs associated with the Publishing Spin-off.

Conference Call Information

The Company will host a conference call today at 8:00 a.m. ET to discuss its third quarter results and a presentation deck will be posted to the website in advance of the call. The conference call can be accessed on the Investor Relations homepage of Tribune Media's website at www.tribunemedia.com, or by dialing 866-952-1906 (domestic) or 785-424-1825 (international). An audio webcast replay will be available for 90 days, beginning approximately two hours after the completion of the call, in the Events and Presentation section of the Tribune Media website. A replay of the call will also be available until November 18, 2014 at 800-374-0934 (domestic) or 402-220-0680 (international).

 

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 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 (Television and Entertainment, Digital and Data, and Corporate and Other), Free Cash Flow for the Company and Broadcast Cash Flow for our Television and Entertainment segment. Adjusted EBITDA, Free Cash Flow and Broadcast Cash Flow are financial measures that are not recognized under accounting principles generally accepted in the U.S. ("GAAP"). Adjusted EBITDA for the Company is defined as net income before income (loss) from discontinued operations, net of taxes, income taxes, interest income, interest expense, pension expense (credit), 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. Adjusted EBITDA for the Company's operating segments is calculated as segment operating profit plus depreciation, amortization, pension expense (credit), stock-based compensation and certain special items (including severance). Free Cash Flow for the Company is calculated as Adjusted EBITDA, less cash paid for income taxes and interest, capital expenditures from continuing operations and cash pension contributions. Broadcast Cash Flow for the Television and Entertainment segment is calculated as total segment Adjusted EBITDA plus broadcast rights- amortization expense less broadcast rights- cash payments.  We believe that Adjusted EBITDA, Free Cash Flow and Broadcast Cash Flow are measures commonly used by investors to evaluate our performance with 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, Free Cash Flow and Broadcast Cash Flow is useful to investors, as these non-GAAP measures are used, among other measures, by our management to evaluate our performance. By disclosing Adjusted EBITDA, Free Cash Flow and Broadcast Cash Flow 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, Free Cash Flow and Broadcast Cash Flow are not measures presented in accordance with GAAP, and our use of these terms may vary from that of others in our industry. Adjusted EBITDA, Free Cash Flow and Broadcast Cash Flow should not be considered as an alternative to net income, operating profit, revenues, net cash provided by operating activities or any other measures derived in accordance with GAAP as measures of operating performance or liquidity.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws.  Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control.  Forward-looking statements may include, but are not limited to, statements concerning the conditions in our industry, our operations, our economic performance and financial condition, including, in particular, statements relating to our business and growth strategy and product development efforts. Important factors could cause actual results, developments and business decisions to differ materially from forward-looking statements are uncertainties discussed in the "Risk Factors" section in the Company's Registration Statement on Form 10 filed with the U.S. Securities and Exchange Commission on September 19, 2014.  "Forward-looking statements" include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "may," "might," "will," "could" "should," "estimate," "project," "plan," "anticipate," "expect," "intend," "outlook," "seek," "designed," "assume," "implied," "believe" and other similar expressions. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. 

The following list represents some, but not necessarily all, of the factors that could cause actual results to differ from historical results or those anticipated or predicted by these forward-looking statements: competition and other economic conditions including fragmentation of the media landscape and competition from other media alternatives; changes in advertising demand and audience shares; changes in the overall market for television advertising, including through regulatory and judicial rulings;  our ability to protect our intellectual property and other proprietary rights; availability and cost of broadcast rights; our ability to adapt to technological changes; our ability to develop and grow our online businesses; availability and cost of quality network, syndicated and sports programming affecting our television ratings; the loss or modification of our network affiliation agreements; our ability to renegotiate retransmission consent agreements; our ability to expand our operations internationally; the incurrence of costs to address contamination issues at sites owned, operated or used by our business; adverse results from litigation, governmental investigations or tax-related proceedings or audits; our ability to settle unresolved claims filed in connection with our and certain of our direct and indirect wholly-owned subsidiaries' Chapter 11 cases and resolve the appeals seeking to overturn the bankruptcy court order confirming the Fourth Amended Joint Plan of Reorganization for Tribune Company and its Subsidiaries; our ability to satisfy 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; the financial performance of our equity method investments; the impairment of our existing goodwill and other intangible assets; changes in accounting standards; increased interest rate risk due to our variable rate indebtedness; our indebtedness and ability to comply with covenants applicable to our debt financing and other contractual commitments; our 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 and other events beyond our control that may result in unexpected adverse operating results.  In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Any forward-looking information presented herein is made only as of the date of this press release and we undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

 

 

Tribune Media Company and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands of dollars, except per share data)

(Unaudited)





























Three months ended Sept. 28, 2014


Three months ended Sept. 29, 2013



Nine months ended Sept. 28, 2014


Nine months ended Sept. 29, 2013










Operating Revenues

$                         474,858


$                         280,608



$                     1,395,939


$                         847,679










Operating Expenses









Programming

93,928


67,390



269,551


194,303

Direct operating expenses

107,553


55,667



311,257


169,694

Selling, general and administrative

152,148


72,799



455,506


213,370

Depreciation

17,991


10,558



52,242


29,707

Amortization

47,953


28,395



169,645


84,996

Total operating expenses

419,573


234,809



1,258,201


692,070










Operating Profit

55,285


45,799



137,738


155,609










Income on equity investments, net

40,559


31,899



197,775


86,035

Interest income

363


100



681


295

Interest expense

(39,150)


(9,558)



(118,815)


(28,529)

Gain on investment transactions

2


104



702


150

Other non-operating gain (loss), net

68


(67)



(1,070)


179

Reorganization items, net

(1,594)


(1,708)



(5,975)


(13,541)

Income from Continuing Operations Before Income Taxes

55,533


66,569



211,036


200,198

Income tax expense

2,647


27,325



62,601


70,516

Income from Continuing Operations

52,886


39,244



148,435


129,682

Income (loss) from Discontinued Operations, net of taxes

(14,889)


10,527



13,552


44,759

Net Income

$                           37,997


$                           49,771



$                         161,987


$                         174,441










Earnings Per Common Share from Continuing Operations:









Basic

$                                0.53


$                                0.39



$                                1.48


$                                1.30

Diluted

$                                0.53


$                                0.39



$                                1.47


$                                1.30










Earnings (Loss) Per Common Share from Discontinued









 Operations:









Basic and Diluted

$                             (0.15)


$                                0.11



$                                0.14


$                                0.44










Net Earnings Per Common Share:









Basic

$                                0.38


$                                0.50



$                                1.62


$                                1.74

Diluted

$                                0.38


$                                0.50



$                                1.61


$                                1.74










 

 

   

Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

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

(Unaudited)






September 28, 2014


December 29, 2013

Assets








Current Assets




Cash and cash equivalents

$                      756,647


$                    640,697

Restricted cash and cash equivalents

19,248


221,879

Accounts receivable (net of allowances of $6,975 and $16,254)

405,333


644,024

Inventories

-


14,222

Broadcast rights

173,026


105,325

Income taxes receivable

20,352


11,240

Deferred income taxes

24,944


54,221

Prepaid expenses and other

50,432


43,672

Total current assets

1,449,982


1,735,280





Properties




Property, plant and equipment

954,048


1,115,253

Accumulated depreciation

(87,021)


(74,446)

Net properties

867,027


1,040,807





Other Assets




Broadcast rights

176,840


61,175

Goodwill

3,906,247


3,815,196

Other intangible assets, net

2,438,077


2,516,543

Assets held for sale

4,704


-

Investments

2,030,438


2,163,162

Other

170,956


143,846

Total other assets

8,727,262


8,699,922

Total Assets

$                11,044,271


$              11,476,009

 

Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

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

(Unaudited)








September 28, 2014


December 29, 2013

Liabilities and Shareholders' Equity










Current Liabilities





Accounts payable


$                        49,724


$                      93,396

Senior Toggle Notes


-


172,237

Debt due within one year


4,589


32,472

Accrued reorganization costs


16,707


15,521

Employee compensation and benefits


77,481


200,033

Contracts payable for broadcast rights


206,260


139,146

Deferred revenue


33,670


77,029

Accrued expenses and other current liabilities


59,777


69,003

Total current liabilities


448,208


798,837






Non-Current Liabilities





Long-term debt


3,491,609


3,760,475

Deferred income taxes


1,377,283


1,393,413

Contracts payable for broadcast rights


302,322


80,942

Contract intangible liability, net


38,842


193,730

Pension obligations, net


172,526


199,176

Post-retirement, medical, life and other benefits


20,498


63,123

Other obligations


63,609


60,752

Total non-current liabilities


5,466,689


5,751,611






Shareholders' Equity





Preferred stock ($0.001 par value per share)





Authorized: 40,000,000 shares; No shares issued and outstanding at Sept. 28, 2014 and at Dec. 29, 2013

-


-

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





Authorized: 1,000,000,000 shares; Issued and outstanding: 94,650,019 shares at Sept. 28, 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: 2,922,759 shares at Sept. 28, 2014 and 3,185,181 shares at Dec. 29, 2013




3


3

Additional paid-in-capital


4,585,621


4,543,228

Retained earnings


403,542


241,555

Accumulated other comprehensive income


140,114


140,685

Total shareholders' equity


5,129,374


4,925,561

Total Liabilities and Shareholders' Equity


$                11,044,271


$              11,476,009

 

 

 

Tribune Media Company and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands of dollars)

(Unaudited)










Nine months ended Sept. 28, 2014


Nine months ended Sept. 29, 2013



Operating Activities




Net income

$                         161,987


$                         174,441

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







Stock-based compensation

22,094


4,488

Pension credits, net of contributions

(33,503)


(31,195)

Depreciation

70,945


54,931

Amortization of contract intangible assets and liabilities

(31,728)


(26,116)

Amortization of other intangible assets

173,782


89,925

Income on equity investments, net

(197,149)


(85,186)

Distributions from equity investments

173,420


140,276

Amortization of debt issuance costs and original issue discount

10,108


2,842

Gain on investment transactions

(2,186)


(150)

Other non-operating loss (gain), net

1,091


(179)

Non-cash reorganization items, net

-


(2,249)

Excess tax benefits from stock-based awards

(896)


-

Transfers from restricted cash related to bankruptcy disbursements

709


165,783

Changes in working capital items, excluding effects from acquisitions:




Accounts receivable, net

73,692


38,913

Inventories, prepaid expenses and other current assets

(9,459)


27,101

Accounts payable

(5,217)


(91,324)

Employee compensation and benefits, accrued expenses and other current liabilities

(18,197)


(9,105)

Deferred revenue

22,764


9,686

Accrued reorganization costs

1,186


(109,912)

Income taxes

(7,025)


(36,347)

Deferred compensation, postretirement medical, life and other benefits

(2,642)


(12,771)

Change in broadcast rights, net of liabilities

(16,214)


5,103

Deferred income taxes

(69,973)


23,354

Change in non-current obligations for uncertain tax positions

(3,776)


(10,789)

Other, net

(16,452)


(14,214)

Net cash provided by operating activities

297,361


307,306





Investing Activities




Capital expenditures

(59,886)


(45,130)

Acquisitions, net of cash acquired

(261,584)


-

Transfers from restricted cash, net

200,813


-

Investments

(2,330)


(464)

Distributions from equity investments

159,602


-

Proceeds from sales of investments and real estate

3,337


12,913

Net cash provided by (used for) investing activities

39,952


(32,681)





Financing Activities




Long-term borrowings related to Publishing Spin-off 

346,500


-

Repayment of Senior Toggle Notes

(172,237)


-

Repayments of long-term debt

(297,783)


(7,246)

Long-term debt issuance costs related to Publishing Spin-off

(10,179)


-

Long-term debt issuance costs

-


(840)

Cash and restricted cash distributed to Tribune Publishing

(86,530)


-

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

1,171


-

Net cash used for financing activities

(221,363)


(8,086)





Net Increase in Cash and Cash Equivalents

115,950


266,539

Cash and cash equivalents, beginning of period

640,697


430,574

Cash and cash equivalents, end of period

$                         756,647


$                         697,113





Supplemental Schedule of Cash Flow Information




Cash paid during the period for:




Interest

$                         104,751


$                           29,650

Income taxes, net of refunds

$                         162,107


$                         126,673

 

 

Tribune Media Company - Consolidated

Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow

(in thousands of dollars)











Three months ended Sept. 28, 2014


Three months ended Sept. 29, 2013



Nine months ended Sept. 28, 2014


Nine months ended Sept. 29, 2013

Revenue

$                        474,858


$                        280,608



$                  1,395,939


$                      847,679




























Net Income

$                           37,997


$                           49,771



$                     161,987


$                      174,441

Income (loss) from discontinued operations, net of taxes

(14,889)


10,527



13,552


44,759

Income from Continuing Operations

52,886


39,244



148,435


129,682

Income tax expense

2,647


27,325



62,601


70,516

Reorganization items, net

1,594


1,708



5,975


13,541

Other non-operating gain (loss), net

(68)


67



1,070


(179)

Gain on investment transactions

(2)


(104)



(702)


(150)

Interest expense

39,150


9,558



118,815


28,529

Interest income

(363)


(100)



(681)


(295)

Income on equity investments, net

(40,559)


(31,899)



(197,775)


(86,035)

Operating Profit

55,285


45,799



137,738


155,609

Depreciation

17,991


10,558



52,242


29,707

Amortization

47,953


28,395



169,645


84,996

Stock-based compensation

5,833


1,870



20,403


3,236

Severance and related charges

1,974


727



5,125


1,402

Contract termination cost




15,646


Other

7,072


1,581



18,961


4,768

Pension credit

(7,660)


(8,694)



(22,982)


(26,085)

Total Segment Adjusted EBITDA

128,448


80,236



396,778


253,633

Cash distributions from equity investments

17,690


16,203



173,420


140,276

Adjusted EBITDA

$                        146,138


$                           96,439



$                     570,198


$                      393,909

Less:









Cash taxes

54,568


52,371



162,107


126,673

Interest payments

37,665


7,813



104,751


29,650

Capital expenditures from continuing operations

16,985


13,617



53,591


34,585

Cash pension contributions

6,910


4,380



10,551


5,110

Free Cash Flow

$                           30,010


$                           18,258



$                     239,198


$                      197,891

 

 

 


Tribune Media Company - Television and Entertainment

Summary of Television and Entertainment Segment Revenues

(in thousands of dollars)







Third Quarter







Three months ended
Sept. 28, 2014


Three months ended
Sept. 29, 2013


As Reported


Pro forma (1)


As Reported

Advertising

$                        321,118


$        319,249


$      198,291

Retransmission consent fees

58,109


34,167


13,530

Carriage fees

14,023


13,408


13,408

Barter/trade

11,227


10,540


7,586

Copyright royalties

6,071


6,261


6,261

Other

6,621


6,407


9,120

Total Segment Revenues

$                        417,169


$        390,032


$      248,196







Year-to-Date







Nine months ended
Sept. 28, 2014


Nine months ended
Sept. 29, 2013


As Reported


Pro forma (1)


As Reported

Advertising

$                        954,593


$        956,487


$      601,911

Retransmission consent fees

170,796


95,763


34,845

Carriage fees

42,742


40,860


40,860

Barter/trade

32,010


31,515


22,641

Copyright royalties

20,057


22,265


22,265

Other

21,181


18,423


25,332

Total Segment Revenues

$                     1,241,379


$    1,165,313


$      747,854







(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 - Television and Entertainment

Reconciliation of Operating Profit to Segment Adjusted EBITDA and Broadcast Cash Flow

(In thousands of dollars)







Third Quarter







Three months ended
Sept. 28, 2014


Three months ended
Sept. 29, 2013


As Reported


Pro forma (1)


As Reported







Operating Profit

$                          74,129


$          94,432


$    42,387

Depreciation

12,693


13,599


7,797

Amortization

42,010


28,264


26,103

Stock-based compensation

2,101


923


719

Severance and related charges

347


726


726

Other

1,248


125


125

Pension expense (credit)

20


(21)


(21)

Total Segment Adjusted EBITDA

$                        132,548


$        138,048


$    77,836







Broadcast rights - Amortization

73,093


64,896


52,749

Broadcast rights - Cash Payments

(97,978)


(71,665)


(58,200)

Broadcast Cash Flow

$                        107,663


$        131,279


$    72,385







Year-to-Date







Nine months ended
Sept. 28, 2014


Nine months ended
Sept. 29, 2013


As Reported


Pro forma (1)


As Reported







Operating Profit

$                        190,530


$        290,092


$  139,962

Depreciation

38,205


39,271


21,725

Amortization

154,837


84,605


78,121

Stock-based compensation

6,737


1,786


1,183

Severance and related charges

1,869


1,339


1,339

Contract termination cost

15,646



Other

4,207


281


281

Pension expense (credit)

124


(64)


(64)

Total Segment Adjusted EBITDA

$                        412,155


$        417,310


$  242,547







Broadcast rights - Amortization

203,173


186,569


150,783

Broadcast rights - Cash Payments

(245,205)


(210,803)


(168,508)

Broadcast Cash Flow

$                        370,123


$        393,076


$  224,822


(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 - Digital and Data

Summary of Digital and Data Segment Revenues

(In thousands of dollars)




















Three months ended Sept. 28, 2014


Three months ended Sept. 29, 2013



Nine months ended Sept. 28, 2014


Nine months ended Sept. 29, 2013










Video

$                           23,192


$                           17,211



$                         65,450


$                         50,950

Music

20,408


-



43,343


-

Entertainment websites and other

959


1,692



4,010


8,962










Total Segment Revenues

$                           44,559


$                           18,903



$                      112,803


$                         59,912

 

 

 

Tribune Media Company - Digital and Data

Reconciliation of Operating Profit to Segment Adjusted EBITDA

(In thousands of dollars)











Three months
ended
Sept. 28, 2014


Three months
ended
Sept. 29, 2013



Nine months
ended
Sept. 28, 2014


Nine months
ended
Sept. 29, 2013










Operating Profit (Loss)

$                              (231)


$                  4,339



$             (10,517)


$               12,312

Depreciation

2,035


665



5,757


1,861

Amortization

5,943


2,292



14,808


6,875

Stock-based compensation

42


7



1,379


11

Severance and related charges

1,627


1



2,763


63

Other

580




580


234

Total Segment Adjusted EBITDA

$                             9,996


$                  7,304



$               14,770


$               21,356

 

   

Tribune Media Company - Corporate and Other

Reconciliation of Operating Profit to Segment Adjusted EBITDA

(in thousands of dollars)




















Three months ended Sept. 28, 2014


Three months ended Sept. 29, 2013



Nine months ended Sept. 28, 2014


Nine months ended Sept. 29, 2013










Revenue

$                           13,130


$                           13,509



$                         41,757


$                         39,913



















Operating Profit (Loss)

$                        (18,613)


$                              (927)



$                      (42,275)


$                           3,335

Depreciation

3,263


2,096



8,280


6,121

Stock-based compensation

3,690


1,144



12,287


2,042

Severance and related charges




493


Other

5,244


1,456



14,174


4,253

Pension credit

(7,680)


(8,673)



(23,106)


(26,021)

Total Segment Adjusted EBITDA

$                        (14,096)


$                           (4,904)



$                      (30,147)


$                      (10,270)

 

 


Tribune Company - Television and Entertainment

Reconciliation of Operating Profit to Segment Adjusted EBITDA and Broadcast Cash Flow - 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

Stock-based compensation

200


663


923


792


2,578

Severance and related charges

109


504


726


302


1,641

Other

155


1


125


1,456


1,737

Pension (credit) expense

(69)


26


(21)


(22)


(86)

Total Segment Adjusted EBITDA

$        130,101


$        149,161


$        138,048


$        155,268


$         572,578











Broadcast rights - Amortization

56,066


65,607


64,896


53,266


239,835

Broadcast rights - Cash Payments

(63,755)


(75,383)


(71,665)


(68,470)


(279,273)

Broadcast Cash Flow

$        122,412


$        139,385


$        131,279


$        140,064


$         533,140











(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

For further information: Investor Contact: Donna Granato, VP/Corporate Finance & Investor Relations, 212/210-2703, dgranato@tribunemedia.com; Media Contact: Christa Robinson, Chief Communications Officer, 212/210-2794, christa@tribunemedia.com