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Tribune Reports Solid 4Q and 2000 Full
Year Earnings
Cash earnings up 35%
for Q4 and 28% for 2000
TV revenues reach record
$1.3 billion for full year
CHICAGO, January 26, 2001 --
Tribune Company (NYSE:
TRB) reported today diluted earnings per share (EPS) from
continuing operations, excluding non-operating items, of $.36
for the 2000 fourth quarter, compared with $.44 for the 1999
fourth quarter. For the full year 2000, on the same basis,
Tribune reported diluted EPS of $1.30, compared with $1.41
for 1999.
Tribune's acquisition of The Times Mirror Company
resulted in dilution of $.08 per share in the 2000 fourth
quarter. For the full year 2000, the Times Mirror acquisition
resulted in dilution of $.27 per share. Tribune's full year
1999 diluted EPS from continuing operations of $1.41, excluding
non-operating items, reflects restatements that excludes Tribune's
former Education segment and includes additional equity losses
for Classified Ventures and CareerPath as a result of the
Times Mirror acquisition.
In 2000, Tribune's fiscal year comprised of
53 weeks, compared with 52 weeks in 1999. The effect of the
additional week in 2000 on the comparisons of the financial
statements taken as a whole is generally not significant.
Cash earnings (defined as income from continuing
operations, excluding non-operating items, plus amortization
expense) rose 35 percent to $185 million in the 2000 fourth
quarter, up from $137 million in the 1999 fourth quarter.
For the full year 2000, cash earnings increased 28 percent
to $583 million, compared with $454 million in 1999.
EBITDA (earnings before interest, taxes, depreciation,
amortization, equity results, non-operating items and minority
interest) was $437 million in the 2000 fourth quarter, compared
with $260 million in the 1999 fourth quarter. For the full
year 2000, EBITDA was $1.4 billion, compared with $927 million
in 1999.
"Tribune's cash earnings have again shown
solid growth, and demonstrate that our acquisition of Times
Mirror was the right move to make at the right time,"
said John W. Madigan, chairman, president and chief executive
officer. "Today, our major market media assets, operating
efficiencies and financial flexibility give Tribune a clear
advantage in a fragmenting marketplace. We are well-positioned
for further growth, and continue to make substantial progress
in creating the multimedia company of the future."
Reported Consolidated Results
Tribune's reported 2000 fourth quarter operating
revenues increased 96 percent to $1.5 billion, up from $766
million in the 1999 fourth quarter. For the 2000 fourth quarter,
Tribune's reported operating profit grew 53 percent to $323
million, compared with $211 million in the 1999 fourth quarter.
In the 2000 fourth quarter, diluted cash EPS increased 6 percent
to $.54, up from $.51 per share in the 1999 fourth quarter.
For the full year 2000, Tribune's operating
revenues on a reported basis rose 70 percent to $4.9 billion,
up from $2.9 billion in 1999. Reported operating profit grew
41 percent for 2000 to $1 billion, compared with $733 million
in 1999. For the full year 2000, diluted cash EPS rose 12
percent to $1.90, up from $1.69 per share in 1999.
Consolidated Pro Forma Results
Tribune's results of operations are also reported
on a pro forma basis to provide comparable financial information.
Pro forma results assume that the Times Mirror acquisition
occurred at the beginning of 1999.
In the 2000 fourth quarter, Tribune's pro forma
operating revenues increased to $1.5 billion, up 2 percent
from $1.47 billion in the 1999 fourth quarter. For the 2000
fourth quarter, Tribune's pro forma EBITDA grew 8 percent
to $437 million, compared with $406 million in the 1999 fourth
quarter. Tribune's pro forma operating profit in the 2000
fourth quarter rose 9 percent to $323 million, from $297 million
for the 1999 fourth quarter.
For the full year 2000, Tribune's pro forma
operating revenues increased to $5.7 billion, up 5 percent
from $5.4 billion in 1999. For the full year, Tribune's pro
forma EBITDA grew 9 percent to $1.6 billion, compared with
$1.5 billion last year. Tribune's pro forma operating profit
in 2000 rose 12 percent to $1.1 billion, from $1 billion for
1999.
Broadcasting and Entertainment
In the 2000 fourth quarter, operating revenues
for broadcasting and entertainment rose 6 percent to a fourth
quarter record $371 million, up from $348 million in the 1999
period. EBITDA grew 9 percent in the 2000 fourth quarter to
another fourth quarter record of $152 million, up from $139
million in 1999. Operating profit in the 2000 fourth quarter
increased 9 percent to $123 million, a record for the fourth
quarter.
Broadcasting and entertainment's operating
profit and EBITDA gains in the 2000 fourth quarter were mainly
due to increases at the television group and improvement in
Tribune Entertainment results. The growth in television's
EBITDA is mainly due to the acquisitions of WB affiliate stations
in Atlanta (WATL), in Washington, D.C. (WBDC) and in New Orleans
(WNOL) and improvements at other WB stations.
Television revenues grew 6 percent to $332
million in the 2000 fourth quarter, up from $314 million in
the 1999 fourth quarter. This revenue increase came primarily
from acquisitions, improved performances at several WB affiliated
stations and at WGN Superstation.
Excluding station acquisitions, television
revenue was flat and EBITDA decreased 1 percent in the 2000
fourth quarter. These results occurred in a challenging environment,
which included tough comparisons from 1999's fourth quarter,
when television revenues and EBITDA increased 14 percent and
18 percent, respectively, on a same station basis.
Operating profit for Entertainment/Other was
$5 million higher than last year's fourth quarter due primarily
to profits from the strong performance of Andromeda and the
absence of 1999 losses from a canceled talk show.
For the full year 2000, broadcasting and entertainment
operating profit grew 19 percent to a record $449 million,
up from $378 million in 1999. Operating revenues increased
13 percent to a record $1.5 billion, up from $1.3 billion
in 1999. Television led the way with a 17 percent increase
in operating profit on a 13 percent increase in revenues.
Television EBITDA margins improved a full percentage point
to 42 percent in 2000.
Excluding acquisitions and divestitures, broadcasting
and entertainment full year EBITDA rose 12 percent, and operating
revenues increased 6 percent.
The Times Mirror merger did not impact broadcasting
and entertainment.
Publishing -- Reported
Total operating revenues for publishing were
$1.1 billion in the 2000 fourth quarter, up from $412 million
in 1999. Publishing EBITDA was $314 million in the 2000 fourth
quarter, compared with $141 million in the same 1999 period.
Publishing operating profit increased to $234 million, from
$120 million in the 1999 fourth quarter.
For the full year 2000, publishing operating
revenues were $3.4 billion, up from $1.6 billion in 1999.
Publishing EBITDA was $943 million in 2000, compared with
$513 million in 1999. Publishing operating profit increased
to $701 million for the full year, from $427 million last
year.
Publishing -- Pro Forma
On a pro forma basis, publishing revenues for
the 2000 fourth quarter increased 1 percent to $1.12 billion,
up from $1.11 billion in the 1999 fourth quarter. Pro forma
EBITDA was $314 million in the 2000 fourth quarter, compared
with $313 million in the same 1999 period. Pro forma 2000
fourth quarter publishing operating profit was $234 million,
down 1 percent from $235 million in last year's fourth quarter.
In the 2000 fourth quarter, pro forma advertising
revenue grew to $890 million from $887 million in 1999. In
the 2000 fourth quarter, national declined 5 percent from
1999 due to lower dot.com advertising. Retail was up 3 percent
in the fourth quarter mainly due to the extra operating days
and classified was flat in the 2000 fourth quarter.
In the 2000 fourth quarter, newsprint costs
rose 5 percent as newsprint prices increased 8 percent to
an average price of $563 per ton. Other expenses were even
with last year despite the additional operating days in the
quarter primarily due to significant progress in realizing
merger-related cost savings.
For the full year 2000, publishing pro forma
revenues increased 3 percent to $4.2 billion, up from $4.1
billion in 1999. Pro forma publishing EBITDA rose 2 percent
to $1.15 billion in 2000, up from $1.12 billion last year.
Pro forma 2000 publishing operating profit grew 3 percent
to $822 million, compared with $795 million in 1999.
Interactive -- Reported
Interactive revenues were $13 million in the
2000 fourth quarter, up from $5 million in the 1999 fourth
quarter. Interactive operating losses were $17 million in
the 2000 fourth quarter, compared with $12 million in the
same 1999 period.
For the full year 2000, interactive revenues
were $42 million, up from $21 million in 1999. Operating losses
for 2000 were $53 million, compared with last year's $32 million.
Interactive -- Pro Forma
In the 2000 fourth quarter, interactive pro
forma revenues rose 51 percent to $13 million, up from $9
million in the same period last year primarily on higher classified
revenues. For the 2000 fourth quarter, interactive pro forma
operating losses decreased 16 percent to $17 million, from
$20 million in the 1999 fourth quarter. The lower losses were
primarily due to higher revenues and cost control initiatives,
partially offset by additional costs related to the extra
week in the fourth quarter.
For the full year, interactive pro forma revenues
increased 41 percent to $48 million, up from $34 million in
1999. Excluding 1999 revenues from AOL/Digital City and Pavement.com,
pro forma revenues increased 58% in 2000. Pro forma operating
losses in 2000 were up 8 percent to $59 million, compared
with last year's $54 million.
Equity Results
Equity losses for the 2000 fourth quarter were
$17 million, up from $5 million in 1999. For the full year
2000, equity losses were $79 million, compared with $40 million
in 1999. The increased losses were primarily due to a one-time,
$9 million loss related to the shutdown of CareerPath in the
third quarter, the CareerBuilder acquisition and Tribune's
increased ownership stakes in Classified Ventures and CareerPath,
as Times Mirror also had interests in these companies. Other
equity losses were related to Tribune's ownership interests
in BrassRing, The WB Network and iBlast.
Interest and Taxes
Interest expense for the 2000 fourth quarter
rose to $71 million, up from $30 million in 1999. For the
full year, interest expense rose to $241 million, from $113
million in 1999. These increases resulted from interest on
debt used to fund the Times Mirror merger and the assumption
of Times Mirror's existing debt.
Interest income for the 2000 fourth quarter
was $10 million, down from $16 million in the same 1999 period.
During 2000, interest income for the full year was $33 million,
compared with $47 million in 1999. The declines in both the
quarter and the full year were the result of excess cash being
used to pay down debt and repurchase stock. Tribune repurchased
6.5 million shares in the 2000 fourth quarter and a total
of 24.5 million shares for all of 2000.
The effective tax rate in the 2000 fourth quarter,
excluding non-operating items, increased to 49.3 percent,
from 38.9 percent in 1999. For 2000, the effective tax rate
rose to 44 percent, up from 1999's 39 percent effective tax
rate. The higher effective tax rate in 2000 was mainly due
to the Times Mirror acquisition.
Non-operating Items
In the 2000 fourth quarter, Tribune recorded
an $.08 per diluted share loss from marking the company's
derivatives and related America Online and Mattel investments
to market. Also in the fourth quarter, Tribune recorded investment
write-downs of $.17 per diluted share to adjust several of
Tribune's public and private investments to fair market value.
Nearly half of these investment write-downs were attributed
to investments acquired as part of the Times Mirror acquisition.
For the full year, Tribune reported a total
loss of $.31 per diluted share for non-operating items, compared
with a gain of $4.08 per diluted share in 1999.
Discontinued Operations
On Sept. 5, 2000, Tribune sold its education
group. As a result of the sale, education has been accounted
for as a discontinued operation and financial statements for
2000 and 1999 have been restated to reflect this change.
Outlook
Consistent with previous guidance, diluted
earnings per share for 2001 should grow about 20 percent to
around $1.55 per share. On a cash basis, EPS should be about
$2.30, also an increase of about 20 percent. Consolidated
revenues this year should grow 6 - 8 percent on a pro forma
basis, and operating cash flow in 2001 will increase about
15 percent on a pro forma basis, to the range of $1.8 - $1.9
billion.
Web Cast of Conference Call
Today at 8:00 a.m. (CDT), a live web cast of
the 2000 fourth quarter and full year earnings conference
call will be accessible through www.tribune.com and www.streetfusion.com.
An archive of the web cast will be available on these sites
from Fri., Jan. 26, through Fri., Feb. 9. More information
on Tribune is available on the Internet at www.tribune.com
or by calling 1-800-757-1694.
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
annual report, 10-K and 10-Q, which 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.
:: :: ::
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
span 23 major-market television stations, including national
superstation WGN-TV; 12 market-leading daily newspapers, including
the Los Angeles Times, Chicago Tribune and Newsday; and news
and information Web sites in 18 of the nation's top 30 markets.
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
annual report, 10-K and 10-Q, which 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, or for changes made to this document by
wire services or Internet service providers. |
