Tribune Pro Forma Revenues Down 1%
Year-to-Date
Reports February pro
forma revenues and advertising volume
Revises first quarter
earnings guidance
CHICAGO, March 21, 2001 -- Tribune
Company (NYSE: TRB) reported
today its pro forma summary of revnues and newspaper advertising
volume for period 2, ended March 4, 2001. Consolidated revenues
for the period were $399 million, down 5 percent from last
year's $422 million, on a pro forma basis. Year-to-date consolidated
revenues were down 1 percent to $879 million, from $892 million
during the same period in 2000.
Tribune's publishing and interactive revenue
and newspaper advertising volume for 2000 are reported on
a pro forma basis, which assumes that the Times Mirror acquisition
occurred at the beginning of 2000.
Publishing revenues decreased 5 percent in
February to $308 million, down from last year's $324 million.
Year-to-date publishing revenues were unchanged year-over-year.
Full run and part run advertising inches decreased 3 percent
in both February and year-to-date. Preprint pieces were up
3 percent in February and on a year-to-date basis increased
8 percent.
For the February 2001 period, retail advertising
revenue decreased 1 percent, as strong preprints partially
offset slowing in the electronics category. Full run retail
volume was down 5 percent in February. National ad revenue
was down 4 percent from weakness in financial and entertainment/movies,
as full run national volume declined 10 percent. Classified
advertising revenue was down 12 percent on lower help wanted
in Chicago and Los Angeles. Full run classified volume was
flat for the period.
Broadcasting and Entertainment group revenues
decreased 8 percent to $87 million, down from $95 million
in February 2000. Year-to-date broadcasting and entertainment
revenues were down 7 percent to $190 million, compared with
$204 million in 2000. Television revenues decreased 9 percent
in February. The period was impacted by difficult comparisons
against last February, when same station TV revenues increased
15 percent.
Tribune Interactive revenues grew 35 percent
to $4.2 million in February, up from $3.1 million last year
largely due to strong growth in classified. Year-to-date interactive
revenues increased 32 percent to $9 million, up from $6.9
million in 2000.
Based on the first two months of the year,
Tribune is revising its earnings guidance for the 2001 first
quarter to the range of $.18 - $.20 per share on a diluted
basis, excluding non-operating items. The company expects
the current soft advertising trends to continue in the second
quarter, but advertising revenues are expected to be stronger
in the second half of the year, especially as comparisons
ease. As a result, Tribune still expects to achieve double-digit
earnings and EBITDA growth for the full year.
The company remains focused on new revenue
opportunities, including those at Tribune Media Net. Through
period 2, Tribune Media Net has added $8 million in incremental
revenue, achieving nearly 20 percent of its $45 million revenue
goal for 2001. Preprints, a $400 million business for Tribune
Publishing, is strong and has significant potential, especially
at the Los Angeles Times, where preprints represent between
5 - 10 percent of advertising revenues, as compared to 15
- 20 percent at the Chicago Tribune.
Contingency plans are being implemented throughout
the company. In publishing, expenses other than newsprint
are expected to be below last year. The Los Angeles Times
has aggressively targeted excess newsprint waste in the production
process, and through period 2, the Times has reduced production
waste by about 20 percent from last year's levels. Newsprint
consumption also is being reduced through web width reductions:
the Chicago Tribune converted to the 50" web on March
19 and the South Florida Sun-Sentinel will convert to the
50" web at the end of April.
In broadcasting, cash expenses for 2001 will
be slightly below 2000. As in previous post-Olympic and election
years, Tribune Broadcasting TV stations still expect to outperform
the industry, and Tribune's stations in the top three markets
should continue to double the national ratings for The WB
Network. During the February sweeps, The WB's national ratings
for Adults 18-34 and for Adults 18-49 were up 18 percent and
13 percent, respectively.
Tribune Interactive is on plan to reduce last
year's cash flow losses by 50 percent to the $25 million range
for 2001.
As part of Tribune's contingency initiatives,
several projects are being deferred, which will reduce capital
spending and investments by about $150 million in 2001 and
interest expense by about $5 million. Debt, excluding PHONES,
is currently about $3.4 billion and is expected to be about
$3.7 billion by year-end, lower than previous guidance due
to cutbacks in spending.
:: :: ::
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. |
