Tribune Reports 2001 First Quarter
Earnings
Company meets revised
expectations, reports $.19 EPS for Q1
Cash earnings increase
21%
CHICAGO, April 18, 2001 -- Tribune
Company (NYSE: TRB) reported
today diluted earnings per share (EPS) from continuing operations,
excluding non-operating items, of $.19 for the 2001 first
quarter, compared with $.31 for the 2000 first quarter. Tribune's
acquisition of The Times Mirror Company resulted in dilution
of $.06 per share in the 2001 first quarter.
"Tribune's first quarter results reflect
the impact of the continued slow-down in the U.S. economy,"
said John W. Madigan, chairman, president and chief executive
officer. "We are taking aggressive actions and implementing
cost control initiatives throughout the company in response
to these events."
"We have accelerated the Times Mirror
integration, and when the economic climate improves and the
advertising slump is over, Tribune's strong mass media assets
will be more valuable than ever. Our combination of 11 newspapers,
22 television stations and more than 50 Web sites are unparalleled
in our industry."
Cash earnings (defined as income from continuing
operations, excluding non-operating items, plus amortization
expense) rose 21 percent to $124 million in the 2001 first
quarter, up from $103 million in the 2000 first quarter.
EBITDA (earnings before interest, taxes, depreciation,
amortization, equity results, and non-operating items) was
$315 million in the 2001 first quarter, compared with $224
million in the 2000 first quarter.
Reported Consolidated Results
Tribune's reported 2001 first quarter operating
revenues increased 79 percent to $1.3 billion, up from $724
million in the 2000 first quarter. For the 2001 first quarter,
Tribune's reported operating profit grew 18 percent to $203
million, compared with $172 million in the 2000 first quarter.
In the 2001 first quarter, cash EPS decreased to $.36, down
from $.38 per share in the 2000 first quarter, but the Times
Mirror acquisition was $.03 accretive in the 2001 first quarter.
Consolidated Pro Forma Results
Tribune's results of operations are 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 2000.
In the 2001 first quarter, Tribune's pro forma
operating revenues decreased 3 percent to $1.29 billion, down
from $1.33 billion in the 2000 first quarter. For the 2001
first quarter, EBITDA was off 14 percent to $315 million,
compared with $366 million in the 2000 first quarter. Tribune's
operating profit in the 2001 first quarter dropped 19 percent
to $203 million, down from $251 million for the 2000 first
quarter.
Broadcasting and Entertainment
In the 2001 first quarter, operating revenues
for broadcasting and entertainment decreased 7 percent to
$290 million, down from $312 million in the 2000 period. EBITDA
fell 11 percent in the 2001 first quarter to $100 million,
from $113 million in 2000. Operating profit in the 2001 first
quarter declined 16 percent to $71 million, from $84 million.
Television revenues declined 8 percent to $264
million in the 2001 first quarter, down from $286 million
in last year's first quarter. The revenue decrease was mainly
due to lower dot.com and automotive ad spending and reflects
challenging comparisons from 2000's first quarter, when television
revenues increased 13 percent. Television cash operating expenses
were down 6 percent from 2000.
Revenues for Entertainment/Other increased
9 percent to $14 million, up from $13 million in last year's
first quarter, primarily due to the strong performance of
Tribune Entertainment's Andromeda, which is this season's
No. 1 action drama in first-run syndication.
The Times Mirror merger did not impact broadcasting
and entertainment.
Publishing - Reported
Total operating revenues for publishing were
$989 million in the 2001 first quarter, compared with $407
million in 2000. Publishing EBITDA was $234 million in the
2001 first quarter, compared with $130 million in the same
2000 period. Publishing operating profit increased to $156
million, from $108 million in the 2000 first quarter.
Publishing - Pro Forma
On a pro forma basis, operating revenues for
the 2001 first quarter were $989 million, 2 percent below
the $1.01 billion in the 2000 first quarter. EBITDA was $234
million in the first quarter 2001, 18 percent lower than last
year's $286 million. Operating profit was down 24 percent
to $156 million, compared with last year's first quarter operating
profit of $205 million. In the 2001 first quarter, the newly
acquired newspapers had five additional days compared to the
2000 first quarter, which slightly impacted revenues and expenses.
Excluding the five days, operating revenues would be 4 percent
below the 2000 first quarter, and cash expenses, other than
newsprint, would be 1 percent below last year.
In the 2001 first quarter, pro forma advertising
revenue totaled $772 million, which was 4 percent below last
year's first quarter of $801 million. Retail advertising revenue
increased 3 percent in the first quarter 2001, mainly due
to strong preprints. National revenue was 4 percent below
last year's first quarter, primarily due to weakness in dot.com
and entertainment/movies. Classified revenue declined 9 percent
from last year's first quarter because of soft help wanted.
Newsprint expense rose 13 percent in the first
quarter as newsprint prices increased 18 percent and consumption
declined 5 percent.
Interactive - Reported
Interactive revenues were $13.7 million in
the 2001 first quarter, up from $5.3 million in the 2000 first
quarter. Interactive operating losses were $10.2 million in
the 2001 first quarter, compared with $11.3 million in the
same 2000 period.
Interactive - Pro Forma
In the 2001 first quarter, interactive pro
forma revenues rose 34 percent to $13.7 million, up from $10.3
million in the same period last year primarily on higher classified
revenues. For the 2001 first quarter, interactive operating
losses decreased 34 percent to $10.2 million, from $15.6 million
in the 2000 first quarter.
Equity Results
Reported equity losses for the 2001 first quarter
were $19.9 million, up from $17.7 million in 2000. The losses
were primarily due to Tribune's ownership interests in BrassRing,
CareerBuilder, Classified Ventures, and The WB Network.
Interest and Taxes
Interest expense for the 2001 first quarter
rose to $64.6 million, up from $30.5 million in 2000. This
increase resulted from interest on debt used to fund the Times
Mirror merger and the assumption of Times Mirror's existing
debt.
Tribune repurchased 2.7 million shares in the
2001 first quarter.
The effective tax rate in the 2001 first quarter,
excluding non-operating items, increased to 46 percent, from
40 percent in 2000. The higher effective tax rate in the first
quarter was mainly due to the Times Mirror acquisition.
Non-operating Items
In the 2001 first quarter, Tribune recorded
a $.01 per diluted share gain from marking the company's derivatives
and related AOL Time Warner and Mattel investments to market.
Outlook
For the second quarter of 2001, diluted EPS
is expected to be about 30 cents.
Web Cast of Conference Call
Today at 4:00 p.m. (CDT), a live Web cast of
the 2001 first quarter 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 Wed., Apr. 18 through Wed., May 2. More information on
Tribune is available on the Internet at www.tribune.com
or by calling 1-800-757-1694.
:: :: ::
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. |
