Tribune Pro Forma Revenues Down 6%
Year-to-Date
Revises second quarter
earnings guidance
Announces voluntary retirement
program
CHICAGO, June 14, 2001 -- Tribune
Company (NYSE: TRB) reported
today its pro forma summary of revenues and newspaper advertising
volume for period 5, ended May 27, 2001. Consolidated revenues
for the period were $432 million, down 10 percent from last
year's $481 million, on a pro forma basis. Year-to-date consolidated
revenues were down 6 percent to $2.1 billion, from $2.3 billion
during the same period in 2000.
As a result of these trends, Tribune is revising
its earnings guidance for the 2001 second quarter to about
$.22 per share on a diluted basis, excluding non-operating
items. This guidance also excludes one-time accounting charges
the company expects to take in the second and third quarters
related to several staff reduction programs. The majority
of these charges will be funded by pension assets.
Voluntary Retirement Program
One of the staff reduction initiatives is a
voluntary retirement program announced today. The program
is being offered to some employees who meet certain eligibility
requirements. It is expected to reduce the company's workforce
by 3 percent, with the bulk of reductions being made in the
publishing group.
In addition to the voluntary retirement program,
further initiatives within the publishing group are expected
to reduce its staff by another 3 percent. Including reductions
that have already taken place, by the end of this year, Tribune
Publishing will have reduced its staff by 10 percent or more
than 2,000 full and part-time staff on an annualized basis
since merging with Times Mirror in June 2000.
Period 5 Summary
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 11 percent in
May to $303 million, down from last year's $342 million. Year-to-date
publishing revenues were down 6 percent. Total advertising
inches decreased 5 percent in May and 4 percent year-to-date.
Preprint pieces were down 5 percent in May and on a year-to-date
basis decreased 2 percent.
For the May 2001 period, retail advertising
revenue decreased 4 percent due to lower electronics, department
stores and food and drug stores. Full run retail volume was
down 3 percent in May. National ad revenue was down 16 percent
because of weakness in entertainment/movies, financial, and
dot-com advertising, as full run national volume declined
22 percent. Classified advertising revenue was down 24 percent
due primarily to lower help wanted. Full run classified volume
was down 4 percent for the period.
Broadcasting and Entertainment group revenues
decreased 8 percent to $125 million, down from $136 million
in May 2000. Year-to-date broadcasting and entertainment revenues
were down 8 percent to $525 million, compared with $572 million
in 2000. Television revenues decreased 11 percent in May.
The period was impacted by difficult comparisons against last
May, when same station TV revenues increased 13 percent.
Tribune Interactive revenues grew 23
percent to $4.5 million in May, up from $3.7 million last
year due to strong growth in classified. Year-to-date interactive
revenues increased 29 percent to $23 million, up from $17
million in 2000.
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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. |
