Tribune Updates Business at Mid-Year
Media Review
Company to generate
$175 million incremental cash flow in 2001
Presentation highlights
growth opportunities
CHICAGO, June 19, 2001 -- Tribune
(NYSE: TRB)
executives provided an update on the company's outlook at
the Mid-Year Media Review in New York City earlier this afternoon.
Executive Vice President Dennis FitzSimons addressed the company's
overall strategy and its broadcasting and interactive businesses.
Tribune Publishing President Jack Fuller discussed Tribune's
newspaper operations and Chief Financial Officer Don Grenesko
reviewed key financial metrics.
FitzSimons highlighted the achievements of
the past 12 months following the Times Mirror integration,
including the divestitures of non-strategic businesses yielding
more than $2 billion after-tax, the repurchase of more than
27 million shares of Tribune stock, keeping debt at a conservative
two-times cash flow and maintaining a strong 'A' bond rating.
With 22 television stations, 11 newspapers
and more than 50 Web sites, Tribune now reaches more than
80 percent of the country, and is the only media company with
television/newspaper combinations in the top three markets.
This expanded national footprint puts Tribune in a position
to generate about $175 million in incremental cash flow in
2001 by realizing $40 million from new revenues and reducing
costs by $145 million.
Tribune has a 25 percent investment in The
WB Television Network, which saw outstanding growth in the
recently completed May sweeps. Ratings for adults 18-34 were
up 18 percent and for adults 18-49 ratings increased 13 percent.
Tribune Interactive pro forma revenues are
up about 30 percent year-to-date. The interactive division
is growing classified revenues and managing costs in order
to become profitable by the end of 2002.
Fuller noted that Tribune Publishing is responding
to the economic downturn by accelerating cost containment.
Steps taken include managing staffing levels through selective
reductions, not filling open positions and outsourcing certain
functions. In the first quarter of 2001, publishing cash expenses,
other than newsprint, were down one percent.
Growth opportunities for Tribune Publishing
include Tribune Media Net, which year-to-date has booked $14
million and is progressing towards its $40 million year-end
goal. Another opportunity is the retail preprint advertising
market. Tribune expects to improve preprint share in each
of its 11 markets, with the greatest opportunity being Los
Angeles. By increasing zoning capabilities, improving reliability
and accuracy of delivery, Tribune Publishing expects about
$75 million in new preprint revenue in Los Angeles and Chicago
over the next several years.
Grenesko affirmed Tribune's second quarter
2001 earnings per share guidance of about $.22 and cash EPS
of $.40. Tribune is in the process of cutting expenses across
the company and, in the first quarter, consolidated cash expenses
were down three percent. The company is also reducing its
workforce by three percent through a voluntary retirement
program. The majority of the funding for this program will
come from excess pension assets, and a restructuring charge
will be taken mainly in the third quarter, with a small part
in the second quarter.
:: :: ::
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. |
