NEW YORK, March 1, 2019
/PRNewswire/ -- Tribune Media Company (the "Company") (NYSE:
TRCO) today reported its results for the three months and year
ended December 31, 2018.
FOURTH QUARTER AND FULL-YEAR 2018 FINANCIAL HIGHLIGHTS
(compared to the prior year period, unless otherwise noted)
- Consolidated operating revenues increased 18% to $578.7 million for the fourth quarter and
increased 9% to $2,009.7 million for
the full year (increased 20% excluding fourth quarter 2017 barter
revenues and 10% excluding full year 2017 barter revenues, which
are no longer recognized in 2018)
- Consolidated operating profit was $166.0
million for the fourth quarter of 2018, compared to
$123.4 million for the fourth quarter
of 2017, and $488.4 million for the
full year 2018 compared to $85.7
million for the full year 2017
- Consolidated Adjusted EBITDA increased 38% to $233.3 million for the fourth quarter and
increased 47% to $650.8 million for
the full year
- Television and Entertainment advertising revenues increased 25%
to $406.7 million for the fourth
quarter and increased 7% to $1,315.8
million for the full year
- Core advertising revenues (which exclude political and digital
revenues) decreased 4% to $286.9
million for the fourth quarter and decreased 5% to
$1,073.3 million for the full
year
- Net political advertising revenues were $99.8 million for the fourth quarter, an increase
of 82% compared to fourth quarter 2014 and an increase of 30% over
fourth quarter 2016. Net political revenues were $172.3 million for full year 2018, an increase of
91% compared to full year 2014 and an increase of 26% over full
year 2016
- Retransmission and carriage fee revenues increased 13% to
$158.3 million for the fourth quarter
and increased 17% to $632.8 million
for the full year
- Closed on the sales of the Melville,
NY and Hartford, CT
properties in the fourth quarter for net pretax proceeds of
$53 million and $6 million, respectively
"2018 was an outstanding year for Tribune Media," said
Peter Kern, Tribune Media's chief
executive officer. "We reported record consolidated revenue
and Adjusted EBITDA for both the fourth quarter and full year 2018,
powered by exceptionally strong political advertising revenues,
significant growth in retransmission and carriage fee revenues, and
a meaningful contribution to our operating results from our cable
network, WGN America. Despite substantial political
displacement, core advertising remained solid, delivering positive
year-over-year growth from Election Day to the end of the year - a
trend we expect to continue in the first quarter of 2019. In
addition, our focus on containing costs across the company drove
2018 consolidated expenses down despite higher network affiliation
fees."
"Tribune Media also made progress on several strategic fronts in
2018," Kern said. "We continued maximizing the monetization
of our real estate portfolio, reached long-term agreements with
several cable and satellite providers, and, most importantly,
announced our agreement to be acquired by Nexstar Media Group at a
price that creates significant value for our shareholders. We
continue working closely with Nexstar to gain regulatory approval
of the transaction and look forward to its anticipated closing
later this year."
FOURTH QUARTER AND FULL-YEAR 2018 RESULTS
Consolidated
Consolidated operating revenues for the fourth quarter of 2018
were $578.7 million compared to
$489.0 million in the fourth quarter
of 2017, representing an increase of $89.7
million, or 18%. The increase was primarily driven by higher
political advertising revenues, retransmission revenues and
carriage fee revenues, partially offset by a decrease in core
advertising revenues and the absence of barter revenues, which are
no longer recognized under the new revenue guidance adopted in the
first quarter of 2018. Excluding fourth quarter 2017 barter
revenues, consolidated operating revenues increased by 20%.
For the full year 2018, consolidated operating revenues were
$2,009.7 million compared to
$1,849.0 million for the full year
2017, representing an increase of $160.8
million, or 9%. Excluding barter revenues for the full year
2017, consolidated operating revenues increased by 10%.
Consolidated operating profit was $166.0
million for the fourth quarter of 2018 compared to
$123.4 million for the fourth quarter
of 2017, representing an increase of $42.5
million, or 34%. The increase was primarily attributable to
higher Television and Entertainment revenues, partially offset by
higher operating expenses.
For the full year 2018, consolidated operating profit was
$488.4 million compared to
$85.7 million in the full year 2017,
representing an increase of $402.8
million, primarily due to a $133
million net pretax gain related to licenses sold in the
Federal Communications Commission (the "FCC") spectrum auction and
surrendered in January 2018, as well
as higher Television and Entertainment revenues, lower programming
expenses and a lower operating loss at Corporate and Other driven
primarily by a decline in compensation and other expenses.
Consolidated income from continuing operations was $132.8 million in the fourth quarter of 2018
compared to $332.8 million in the
fourth quarter of 2017. In the fourth quarter of 2017, the Company
recorded a tax benefit of $256
million, or $2.90 per common
share, related to the remeasurement of deferred tax assets and
liabilities resulting from the new tax legislation ("Tax Reform")
that lowered the corporate U.S. Federal income tax rate from 35% to
21%. Diluted earnings per common share from continuing operations
for the fourth quarter of 2018 was $1.50 compared to $3.73 for the fourth quarter of 2017. Adjusted
diluted earnings per share ("Adjusted EPS") from continuing
operations for the fourth quarter of 2018 was $1.55 compared to $0.81 for the fourth quarter of 2017. Both
diluted earnings per common share from continuing operations and
Adjusted EPS from continuing operations include an income tax
benefit of $1 million, or
$0.02 per common share, in the fourth
quarter of 2018 and an income tax benefit of $6 million, or $0.07 per common share, in the fourth quarter of
2017 related to certain tax adjustments.
Consolidated income from continuing operations was $412.5 million for the full year 2018 compared to
$183.1 million for the full year
2017, which included non-cash pretax impairment charges of
$193.5 million ($117.6 million after tax), or $1.34 per common share, to write down the
Company's equity method investments. For the full year 2018, the
Company recorded an additional income tax benefit of $24 million, or $0.27 per common share, to its net deferred tax
liabilities, primarily resulting from return to provision
adjustments which have the effect of adjusting the provisional
discrete net tax benefit recorded in the fourth quarter of 2017 due
to Tax Reform. Diluted earnings per common share from continuing
operations was $4.67 for the full
year 2018 compared to $2.04 for the
full year 2017. Adjusted EPS from continuing operations for the
full year 2018 was $3.68 compared to
$1.41 for the full year 2017. Both
diluted earnings per common share from continuing operations and
Adjusted EPS from continuing operations include an income tax
benefit of $2 million, or
$0.02 per common share, for the full
year 2018 and an income tax benefit of $6
million, or $0.07 per common
share, for the full year 2017 related to certain tax
adjustments.
Net income attributable to Tribune Media Company was
$132.8 million in the fourth quarter
of 2018 compared to $328.8 million in
the fourth quarter of 2017. Net income attributable to Tribune
Media Company was $412.6 million for
the full year 2018 compared to $194.1
million in 2017.
Consolidated Adjusted EBITDA increased 38% to $233.3 million in the fourth quarter of 2018 from
$169.1 million in the fourth quarter
of 2017. The increase was primarily attributable to higher
political advertising revenues, retransmission revenues and
carriage fee revenues, partially offset by lower core advertising
revenues, as well as higher programming, compensation and other
expenses. For the full year 2018, consolidated Adjusted EBITDA
increased $209.0 million, or 47%, to
$650.8 million as compared to
$441.9 million for the full year
2017.
Income on equity investments, net increased $6.7 million, or 18%, in the fourth quarter of
2018 primarily due to higher equity income from TV Food Network.
The Company recognized equity income from TV Food Network of
$45.4 million and $37.9 million in the fourth quarters of 2018 and
2017, respectively. Income on equity investments, net increased
$32.0 million, or 23%, in the full
year 2018 largely due to higher equity income from TV Food Network
and CareerBuilder (the Company's remaining investment in
CareerBuilder was sold on September 13,
2018), along with recognizing the Company's share of the
gain on the sale of one of CareerBuilder's business operations on
May 14, 2018.
Cash distributions from the Company's equity investments in the
fourth quarter of 2018 were $12.7
million compared to $19.3
million in the fourth quarter of 2017. Cash distributions
for the full year 2018 were $171.6
million compared to $201.9
million for the full year 2017, primarily as a result of
lower TV Food Network cash distributions, as TV Food Network
adjusted its required 2018 cash distributions to cover the
Company's taxes on its share of partnership income based on the
reduction in tax rates from Tax Reform. This adjustment only
impacts the timing of distributions in 2018 and does not impact
total expected excess cash distributions from TV Food Network
related to 2018 financial results.
Television and Entertainment
Revenues were $576.9 million in
the fourth quarter of 2018 compared to $486.0 million in the fourth quarter of 2017, an
increase of $90.9 million, or 19%.
Excluding barter revenues in the fourth quarter of 2017, revenues
increased $97.8 million, or 20%. The
increase was driven by an $89.2
million increase in political advertising revenue, an
increase in retransmission revenues of $11.2
million, or 10%, and an increase in carriage fee revenues of
$7.1 million, or 23%, partially
offset by a decrease in core advertising revenue of $10.5 million, or 4%.
Television and Entertainment segment revenues for the full year
2018 were $1,998.7 million compared
to $1,835.4 million for the full year
2017, an increase of $163.3 million,
or 9%. Excluding barter revenues in 2017, revenues increased
$191.2 million, or 11%. The increase
was driven by a $150.5 million
increase in political advertising revenue, a $59.3 million, or 14%, increase in retransmission
revenues and $33.3 million, or 26%,
increase in carriage fee revenues, partially offset by a
$61.9 million, or 5%, decrease in
core advertising revenue.
Television and Entertainment operating profit for the fourth
quarter of 2018 was $184.4 million
compared to $127.2 million in the
fourth quarter of 2017, an increase of $57.1
million, or 45%. The increase was primarily due to a
$90.9 million increase in revenues,
as described above, partially offset by increases in programming
expense, compensation expense and other expenses. The increase in
programming expense was primarily due to an increase in network
affiliate fees mainly due to the renewal of network affiliation
agreements in eight markets with FOX Broadcasting Company during
the third quarter of 2018, partially offset by the absence of
barter expense due to the new revenue guidance adopted in 2018.
Television and Entertainment Adjusted EBITDA for the fourth
quarter of 2018 was $250.4 million
compared to $183.2 million in the
fourth quarter of 2017, an increase of $67.2
million, or 37%, primarily due to higher political
advertising revenues, retransmission revenues and carriage fee
revenues, partially offset by lower core advertising revenues and
higher expenses, as described above.
For the full year 2018, Television and Entertainment operating
profit was $583.3 million as compared
to $196.1 million for the full year
2017, an increase of $387.2 million.
The increase was primarily due to higher operating revenues, as
described above, the net pretax gain of $133
million in 2018 related to licenses sold in the FCC spectrum
auction and a $115.0 million decrease
in programming expenses, partially offset by higher compensation
and other expenses. The decline in programming expense was
primarily due to lower program impairment charges, a decrease in
amortization of license fees of $73
million, the absence of barter expense due to the new
revenue guidance adopted in 2018 and $19
million of additional expense in 2017 related to the shift
in programming strategy at WGN America, partially offset by a
$59 million increase in network
affiliate fees mainly due to the renewal of FOX network affiliation
agreements during the third quarter of 2018. Programming expenses
included a program impairment charge of $28
million for the syndicated program Elementary at WGN
America in 2018 compared to a program impairment charge of
$80 million in 2017 for the
syndicated programs Elementary and Person of Interest
at WGN America. Television and Entertainment Adjusted EBITDA for
the full year 2018 was $712.3 million
as compared to $505.2 million for the
full year 2017, an increase of $207.1
million, or 41%.
Television and Entertainment Broadcast Cash Flow for the fourth
quarter of 2018 was $218.6 million as
compared to $162.9 million for the
fourth quarter of 2017, an increase of $55.7
million, or 34%. Television and Entertainment Broadcast Cash
Flow for the full year 2018 was $665.8
million as compared to $484.6
million for the full year 2017, an increase of $181.3 million, or 37%.
Corporate and Other
Real estate revenues for the fourth quarter of 2018 were
$1.8 million compared to $3.0 million for the fourth quarter of 2017,
representing a decrease of $1.2
million, or 40%, primarily due to the loss of revenue from
real estate properties sold during 2017 and 2018. Real estate
revenues for the full year 2018 were $11.1
million compared to $13.5
million for the full year 2017, representing a decrease of
$2.5 million, or 18%.
Corporate and Other operating loss for the fourth quarter of
2018 was $18.4 million compared to
$3.8 million for the fourth quarter
of 2017. The increase in the loss was primarily attributable to
higher transaction-related costs. Corporate and Other Adjusted
EBITDA for the fourth quarter of 2018 represented a loss of
$17.0 million compared to a loss of
$14.1 million for the fourth quarter
of 2017.
For the full year 2018, Corporate and Other operating loss was
$94.8 million compared to
$110.4 million for the full year
2017. The reduction of the loss was primarily attributable to a
decline in compensation and other expenses. Gains on the sale of
real estate totaled $24.7 million in
2018 compared to $28.2 million in
2017. Corporate and Other Adjusted EBITDA represented a loss of
$61.5 million for the full year 2018
compared to a loss of $63.3 million
for the full year 2017.
Discontinued Operations
On January 31, 2017, the Company
completed the sale of substantially all of the Digital and Data
business operations (the "Gracenote Sale") and received gross
proceeds of $584 million, including a
purchase price adjustment of $3
million. The historical results of operations for the
businesses included in the Gracenote Sale are reported as
discontinued operations for the year ended December 31, 2017. Accordingly, all references
made to financial data in this release are to Tribune Media
Company's continuing operations.
RETURN OF CAPITAL TO SHAREHOLDERS
Quarterly Dividend
On February 21, 2019, the Board of Directors (the "Board")
declared a quarterly cash dividend on the Company's common stock of
$0.25 per share to be paid on
March 25, 2019 to holders of record of the Company's common
stock and warrants as of March 11, 2019. Future dividends will
be subject to the discretion of the Board and the terms of the
agreement and plan of merger between the Company and Nexstar Media
Group, Inc. ("Nexstar") dated November 30,
2018 (the "Nexstar Merger Agreement"), which limits the
Company's ability to pay dividends, except for the payment of
quarterly cash dividends not to exceed $0.25 per share and consistent with record and
payment dates in 2018.
RECENT DEVELOPMENTS
Nexstar Acquisition
On November 30, 2018, the Company entered into the Nexstar
Merger Agreement with Nexstar and Titan Merger Sub, Inc. (the
"Nexstar Merger Sub") providing for the acquisition by Nexstar of
all of the outstanding shares of the Company's Class A common stock
and Class B common stock, by means of a merger of Nexstar Merger
Sub with and into Tribune Media Company, with the Company surviving
the merger as a wholly-owned subsidiary of Nexstar (the "Nexstar
Merger").
Real Estate Transactions
On October 9, 2018, the Company
sold its Melville, NY property for
net proceeds of $53 million and
recognized a net pretax gain of $24
million in the fourth quarter of 2018 relating to the sale.
On October 23, 2018, the Company sold
its Hartford, CT property for net
proceeds of $6 million and recognized
a net pretax gain of less than $1
million in the fourth quarter of 2018 related to the sale.
The Company defines net proceeds as pretax cash proceeds on the
sale of properties, less associated selling costs.
Chicago Cubs Sale
On January 22, 2019, the Company sold its 5% ownership
interest in Chicago Entertainment Ventures LLC ("CEV LLC"), the
parent company of the Chicago Cubs Major League Baseball franchise,
for pretax proceeds of $107.5
million. The Company expects to recognize a pretax gain of
$86 million in the first quarter of
2019. As a result of the sale, the total remaining deferred tax
liability of $69 million will become
currently payable in 2019. Concurrently with the sale, the Company
ceased being a guarantor of all debt facilities held by CEV LLC and
its subsidiaries. The sale of the ownership interest has no impact
on the Company's dispute with the IRS pertaining to the 2009
consummation of certain transactions involving the Company and CEV
LLC.
In light of the Company's previously announced transaction
with Nexstar, Tribune Media is not providing financial guidance for
the full year 2019 in this release, nor is the Company conducting a
conference call regarding its fourth quarter and full year 2018
financial results.
Tribune Media Company (NYSE: TRCO) is home to a diverse
portfolio of television and digital properties driven by quality
news, entertainment and sports programming. Tribune Media is comprised of Tribune Broadcasting's
42 owned or operated local television stations reaching
approximately 49 million households, national entertainment cable
network WGN America, whose reach is more than 75 million
households, Tribune Studios, and a variety of digital applications
and websites commanding 49 million monthly unique visitors online.
Tribune Media also includes
Chicago's WGN-AM, the national
multicast networks Antenna TV and THIS TV and Covers Media Group,
an unrivaled source of online sports betting information.
Additionally, the Company owns and manages a significant number of
real estate properties across the U.S. and holds a variety of
investments, including a 31% interest in Television Food Network,
G.P., which operates Food Network and Cooking Channel. For more
information please visit www.tribunemedia.com.
Additional Information and Where to Find It
In connection with the proposed Nexstar Merger, Tribune has
filed with the SEC a definitive proxy statement on Schedule 14A,
which has been delivered, as required by applicable law, to its
shareholders as of the record date for the special meeting of
Tribune shareholders to adopt the Nexstar Merger Agreement. This
communication does not constitute a solicitation of any vote or
approval and is not a substitute for any proxy statement or any
other document that has been or may be filed with the SEC in
connection with the proposed business combination. INVESTORS AND
SECURITY HOLDERS OF TRIBUNE ARE URGED TO READ THE DEFINITIVE PROXY
STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN
THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION.
Investors and security holders are able to obtain these
materials and other documents filed with the SEC free of charge at
the SEC's website, www.sec.gov. Copies of documents filed with the
SEC by Tribune may also be obtained free of charge from Tribune's
website at www.tribunemedia.com.
Participants in the Merger Solicitation
Tribune and Nexstar and their respective directors and executive
officers may be deemed to be participants in the solicitation of
proxies from shareholders of Tribune in favor of the proposed
transaction under the rules of the SEC. Information about Tribune's
directors and executive officers is available in Tribune's Annual
Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC
on March 1, 2019, and Tribune's definitive proxy statement,
dated April 19, 2018, for its 2018
annual meeting of shareholders. Information about Nexstar's
directors and executive officers is available in Nexstar's Annual
Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC
on March 1, 2019, and Nexstar's
definitive proxy statement, dated April 27,
2018, for its 2018 annual meeting of shareholders.
Additional information regarding participants in the proxy
solicitations and a description of their direct and indirect
interests is also included in Tribune's definitive proxy statement
relating to the Nexstar Merger filed with the SEC on February 5, 2019.
INVESTOR/MEDIA
CONTACT:
|
Gary
Weitman
|
SVP/Corporate
Relations
|
(312)
222-3394
|
gweitman@tribunemedia.com
|
Non-GAAP Financial Measures
This press release includes a discussion of Adjusted EBITDA and
Adjusted EPS for the Company and Adjusted EBITDA for our operating
segments (Television and Entertainment and Corporate and Other) and
presents Broadcast Cash Flow for our Television and Entertainment
segment. Adjusted EPS, Adjusted EBITDA and Broadcast Cash Flow are
financial measures that are not recognized under GAAP. Adjusted EPS
is calculated based on income (loss) from continuing operations
before investment transactions, loss on extinguishments and
modification of debt, certain special items (including severance),
certain income tax charges, non-operating items, gain (loss) on
sales of real estate, gain on sales of spectrum, impairments and
other non-cash charges and reorganization items per common share.
Adjusted EBITDA for the Company is defined as income (loss) from
continuing operations before income taxes, investment transactions,
loss on extinguishments and modification of debt, interest and
dividend income, interest expense, pension expense (credit), equity
income and losses, depreciation and amortization, stock-based
compensation, certain special items (including severance),
non-operating items, gain (loss) on sales of real estate, gain on
sales of spectrum, impairments and other non-cash charges and
reorganization items. Adjusted EBITDA for the Company's operating
segments is calculated as segment operating profit plus
depreciation, amortization, pension expense (credit), stock-based
compensation, impairments and other non-cash charges, gain (loss)
on sales of real estate, gain on sales of spectrum and certain
special items (including severance). Broadcast Cash Flow for the
Television and Entertainment segment is calculated as Television
and Entertainment Adjusted EBITDA plus broadcast rights
amortization expense less broadcast rights cash payments. We
believe that Adjusted EBITDA and Broadcast Cash Flow are measures
commonly used by investors to evaluate our performance with that of
our competitors. We also present Adjusted EBITDA because we believe
investors, analysts and rating agencies consider it useful in
measuring our ability to meet our debt service obligations. We
further believe that the disclosure of Adjusted EPS, Adjusted
EBITDA and Broadcast Cash Flow is useful to investors as these
non-GAAP measures are used, among other measures, by our management
to evaluate our performance. By disclosing Adjusted EPS, Adjusted
EBITDA and Broadcast Cash Flow, we believe that we create for
investors a greater understanding of, and an enhanced level of
transparency into, the means by which our management operates our
company. Adjusted EPS, Adjusted EBITDA and Broadcast Cash Flow are
not measures presented in accordance with GAAP, and our use of
these terms may vary from that of others in our industry. Adjusted
EPS, Adjusted EBITDA and Broadcast Cash Flow should not be
considered as an alternative to net income, operating profit,
revenues, cash provided by operating activities or any other
measures derived in accordance with GAAP as measures of operating
performance or liquidity. The tables at the end of this press
release include reconciliations of consolidated Adjusted EPS and
Adjusted EBITDA and segment Adjusted EBITDA and Broadcast Cash Flow
to the most directly comparable financial measures calculated and
presented in accordance with GAAP.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within the
meaning of the federal securities laws. Forward-looking statements
are subject to known and unknown risks and uncertainties, many of
which may be beyond our control. Forward-looking statements may
include, but are not limited to, the anticipated merger with
Nexstar and the related regulatory process, our real estate
monetization strategy, our costs savings initiatives, the changes
to our WGN America original programming, expectations regarding
advertising revenues, the impact of the sale of the Company's
interest in CEV LLC, the conditions in our industry, our
operations, our economic performance and financial condition.
Important factors that could cause actual results, developments and
business decisions to differ materially from these forward-looking
statements are uncertainties discussed below and in the "Risk
Factors" section of the Company's Annual Report on Form 10-K filed
with the U.S. Securities and Exchange Commission (the "SEC") on
March 1, 2019. "Forward-looking
statements" include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as "may," "might," "will," "could," "should,"
"estimate," "project," "plan," "anticipate," "expect," "intend,"
"outlook," "seek," "designed," "assume," "implied," "believe" and
other similar expressions. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of their dates. These forward-looking statements are based on
estimates and assumptions by our management that, although we
believe to be reasonable, are inherently uncertain and subject to a
number of risks and uncertainties.
The following list represents some, but not necessarily all, of
the factors that could cause actual results to differ from
historical results or those anticipated or predicted by these
forward-looking statements; risks associated with the ability to
consummate the Nexstar Merger and the timing of the closing of the
Nexstar Merger, the occurrence of any event, change or other
circumstances that could give rise to the termination of the
Nexstar Merger Agreement; the risk that the regulatory approvals
for the proposed Nexstar Merger may be delayed, not be obtained or
may be obtained subject to conditions that are not anticipated; the
inability to consummate the Nexstar Merger due to the failure to
obtain the requisite shareholder approval; risks related to the
disruption of management time from ongoing business operations due
to the pending Nexstar Merger and the restrictions imposed on the
Company's operations under the terms of the Nexstar Merger
Agreement; uncertainty associated with the effect of the
announcement of the Nexstar Merger on our ability to retain and
hire key personnel, on our ability to maintain relationships with
advertisers and customers and on our operating results and
businesses generally; changes in advertising demand and audience
shares; competition and other economic conditions including
incremental fragmentation of the media landscape and competition
from other media alternatives; changes in the overall market for
broadcast and cable television advertising, including through
regulatory and judicial rulings; our ability to protect our
intellectual property and other proprietary rights; our ability to
adapt to technological changes; availability, volatility and cost
of quality network, syndicated and sports programming affecting our
television ratings; conduct and changing circumstances related to
third-party relationships on which we rely for our business; the
loss, cost and /or modification of our network affiliation
agreements; our ability to renegotiate retransmission consent
agreements, or resolve disputes, with multichannel video
programming distributors; our ability to realize the full value, or
successfully complete the planned divestitures of our real estate
assets; the incurrence of additional tax-related liabilities
related to historical income tax returns; the potential impact of
the modifications to the spectrum on the operation of our
television stations and the costs, terms and restrictions
associated with such actions; the incurrence of costs to address
contamination issues at physical sites owned, operated or used by
our businesses; adverse results from litigation, governmental
investigations or tax-related proceedings or audits, including
proceedings that may relate to our entry into the Nexstar Merger
Agreement; our ability to settle unresolved claims filed in
connection with our and certain of our direct and indirect
wholly-owned subsidiaries' Chapter 11 cases and resolve the appeals
seeking to overturn the bankruptcy court order confirming the First
Amended Joint Plan of Reorganization for Tribune Company and its
Subsidiaries; our ability to satisfy future pension and other
postretirement employee benefit obligations; the effect of labor
strikes, lock-outs and labor negotiations; the financial
performance and valuation of our equity method investments; the
impairment of our existing goodwill and other intangible assets;
compliance with, and the effect of changes or developments in,
government regulations applicable to the television and radio
broadcasting industry; consolidation in the broadcasting industry;
changes in accounting standards; the payment of cash dividends on
our common stock; impact of increases in interest rates on our
variable rate indebtedness or refinancings thereof; our
indebtedness and ability to comply with covenants applicable to our
debt financing and other contractual commitments; our ability to
satisfy future capital and liquidity requirements; our ability to
access the credit and capital markets at the times and in the
amounts needed and on acceptable terms; the factors discussed under
the heading "Risk Factors" of the Company's filings with the SEC;
and other events beyond our control that may result in unexpected
adverse operating results. In addition, in light of these risks and
uncertainties, the matters referred to in the forward-looking
statements contained in this press release may not in fact occur.
Any forward-looking information presented herein is made only as of
the date of this press release and we undertake no obligation to
update or revise any forward-looking statement as a result of new
information, future events or otherwise, except as otherwise
required by law.
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands of
dollars, except per share data)
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Television and
Entertainment
|
$
|
576,940
|
|
|
$
|
486,022
|
|
|
|
$
|
1,998,678
|
|
|
$
|
1,835,423
|
|
Other
|
1,793
|
|
|
2,977
|
|
|
|
11,056
|
|
|
13,536
|
|
Total operating
revenues
|
578,733
|
|
|
488,999
|
|
|
|
2,009,734
|
|
|
1,848,959
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Programming
|
115,573
|
|
|
106,620
|
|
|
|
489,063
|
|
|
604,068
|
|
Direct operating
expenses
|
99,314
|
|
|
97,604
|
|
|
|
401,366
|
|
|
391,770
|
|
Selling, general and
administrative
|
167,217
|
|
|
133,293
|
|
|
|
567,798
|
|
|
573,008
|
|
Depreciation
|
13,649
|
|
|
14,553
|
|
|
|
54,206
|
|
|
56,314
|
|
Amortization
|
41,672
|
|
|
41,678
|
|
|
|
166,715
|
|
|
166,679
|
|
Gain on sales of
spectrum
|
—
|
|
|
—
|
|
|
|
(133,197)
|
|
|
—
|
|
Gain on sales of real
estate, net
|
(24,657)
|
|
|
(28,168)
|
|
|
|
(24,657)
|
|
|
(28,533)
|
|
Total operating
expenses
|
412,768
|
|
|
365,580
|
|
|
|
1,521,294
|
|
|
1,763,306
|
|
Operating
Profit
|
165,965
|
|
|
123,419
|
|
|
|
488,440
|
|
|
85,653
|
|
Income on equity
investments, net
|
45,249
|
|
|
38,506
|
|
|
|
169,335
|
|
|
137,362
|
|
Interest and dividend
income
|
4,751
|
|
|
1,269
|
|
|
|
12,224
|
|
|
3,149
|
|
Interest
expense
|
(43,570)
|
|
|
(40,055)
|
|
|
|
(169,033)
|
|
|
(159,387)
|
|
Pension and other
post retirement periodic benefit credit, net
|
7,035
|
|
|
5,704
|
|
|
|
28,139
|
|
|
22,815
|
|
Loss on
extinguishments and modification of debt
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(20,487)
|
|
(Loss) gain on
investment transactions, net
|
—
|
|
|
(2,486)
|
|
|
|
(1,113)
|
|
|
8,131
|
|
Write-downs of
investments
|
—
|
|
|
(12,694)
|
|
|
|
—
|
|
|
(193,494)
|
|
Other non-operating
gain, net
|
15
|
|
|
26
|
|
|
|
68
|
|
|
71
|
|
Reorganization items,
net
|
(578)
|
|
|
(657)
|
|
|
|
(2,400)
|
|
|
(2,109)
|
|
Income (Loss) from
Continuing Operations Before Income Taxes
|
178,867
|
|
|
113,032
|
|
|
|
525,660
|
|
|
(118,296)
|
|
Income tax expense
(benefit)
|
46,034
|
|
|
(219,767)
|
|
|
|
113,130
|
|
|
(301,373)
|
|
Income from
Continuing Operations
|
132,833
|
|
|
332,799
|
|
|
|
412,530
|
|
|
183,077
|
|
(Loss) Income from
Discontinued Operations, net of taxes
|
—
|
|
|
(619)
|
|
|
|
—
|
|
|
14,420
|
|
Net
Income
|
$
|
132,833
|
|
|
$
|
332,180
|
|
|
|
$
|
412,530
|
|
|
$
|
197,497
|
|
Net loss (income)
from continuing operations attributable to noncontrolling
interests
|
8
|
|
|
(3,378)
|
|
|
|
41
|
|
|
(3,378)
|
|
Net Income
attributable to Tribune Media Company
|
$
|
132,841
|
|
|
$
|
328,802
|
|
|
|
$
|
412,571
|
|
|
$
|
194,119
|
|
Basis Earnings
(Loss) Per Common Share Attributable to Tribune Media Company
from:
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
|
1.51
|
|
|
$
|
3.77
|
|
|
|
$
|
4.71
|
|
|
$
|
2.06
|
|
Discontinued
Operations
|
—
|
|
|
(0.01)
|
|
|
|
—
|
|
|
0.17
|
|
Net Earnings Per
Common Share
|
$
|
1.51
|
|
|
$
|
3.76
|
|
|
|
$
|
4.71
|
|
|
$
|
2.23
|
|
Diluted Earnings
(Loss) Per Common Share Attributable to Tribune Media Company
from:
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
|
1.50
|
|
|
$
|
3.73
|
|
|
|
$
|
4.67
|
|
|
$
|
2.04
|
|
Discontinued
Operations
|
—
|
|
|
(0.01)
|
|
|
|
—
|
|
|
0.16
|
|
Net Earnings Per
Common Share
|
$
|
1.50
|
|
|
$
|
3.72
|
|
|
|
$
|
4.67
|
|
|
$
|
2.20
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In thousands of dollars, except for
share and per share data)
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,063,041
|
|
|
$
|
673,685
|
|
Restricted cash and
cash equivalents
|
16,607
|
|
|
17,566
|
|
Accounts receivable
(net of allowances of $4,461 and $4,814)
|
416,938
|
|
|
420,095
|
|
Broadcast
rights
|
98,269
|
|
|
129,174
|
|
Income taxes
receivable
|
23,922
|
|
|
18,274
|
|
Prepaid
expenses
|
19,444
|
|
|
20,158
|
|
Other
|
7,509
|
|
|
14,039
|
|
Total current
assets
|
1,645,730
|
|
|
1,292,991
|
|
Properties
|
|
|
|
Machinery, equipment
and furniture
|
334,495
|
|
|
318,891
|
|
Buildings and
leasehold improvements
|
156,868
|
|
|
171,113
|
|
|
491,363
|
|
|
490,004
|
|
Accumulated
depreciation
|
(266,078)
|
|
|
(233,387)
|
|
|
225,285
|
|
|
256,617
|
|
Land
|
147,614
|
|
|
157,298
|
|
Construction in
progress
|
48,400
|
|
|
26,380
|
|
Net
properties
|
421,299
|
|
|
440,295
|
|
Other
Assets
|
|
|
|
Broadcast
rights
|
95,876
|
|
|
133,683
|
|
Goodwill
|
3,228,601
|
|
|
3,228,988
|
|
Other intangible
assets, net
|
1,442,456
|
|
|
1,613,665
|
|
Assets held for
sale
|
—
|
|
|
38,900
|
|
Investments
|
1,264,437
|
|
|
1,281,791
|
|
Other
|
152,992
|
|
|
139,015
|
|
Total other
assets
|
6,184,362
|
|
|
6,436,042
|
|
Total
Assets
|
$
|
8,251,391
|
|
|
$
|
8,169,328
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In thousands of dollars, except for
share and per share data)
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$
|
44,897
|
|
|
$
|
48,319
|
|
Income taxes
payable
|
9,973
|
|
|
36,252
|
|
Employee compensation
and benefits
|
79,482
|
|
|
71,759
|
|
Contracts payable for
broadcast rights
|
232,687
|
|
|
253,244
|
|
Deferred
revenue
|
12,508
|
|
|
11,942
|
|
Interest
payable
|
30,086
|
|
|
30,525
|
|
Deferred spectrum
auction proceeds
|
—
|
|
|
172,102
|
|
Other
|
42,160
|
|
|
30,124
|
|
Total current
liabilities
|
451,793
|
|
|
654,267
|
|
Non-Current
Liabilities
|
|
|
|
Long-term debt (net of
unamortized discounts and debt issuance costs of $29,434 and
$36,332)
|
2,926,083
|
|
|
2,919,185
|
|
Deferred income
taxes
|
573,924
|
|
|
508,174
|
|
Contracts payable for
broadcast rights
|
233,275
|
|
|
300,420
|
|
Pension obligations,
net
|
380,322
|
|
|
396,875
|
|
Postretirement
medical, life and other benefits
|
8,298
|
|
|
9,328
|
|
Other
obligations
|
154,599
|
|
|
163,899
|
|
Total non-current
liabilities
|
4,276,501
|
|
|
4,297,881
|
|
Total
Liabilities
|
4,728,294
|
|
|
4,952,148
|
|
|
|
|
|
Commitments and
Contingent Liabilities
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Preferred stock
($0.001 par value per share)
|
|
|
|
Authorized: 40,000,000
shares; No shares issued and outstanding at December 31, 2018 and
at December 31, 2017
|
—
|
|
|
—
|
|
Class A Common Stock
($0.001 par value per share)
|
|
|
|
Authorized: 1,000,000,000 shares; 101,790,837
shares issued and 87,688,652 shares outstanding at December 31,
2018; 101,429,999 shares issued and 87,327,814 shares outstanding
at December 31, 2017
|
102
|
|
|
101
|
|
Class B Common Stock
($0.001 par value per share)
|
|
|
|
Authorized: 1,000,000,000 shares; Issued and
outstanding: 5,557 shares at December 31, 2018 and December 31,
2017
|
—
|
|
|
—
|
|
Treasury stock, at
cost: 14,102,185 shares at December 31, 2018 and December 31,
2017
|
(632,194)
|
|
|
(632,194)
|
|
Additional
paid-in-capital
|
4,031,233
|
|
|
4,011,530
|
|
Retained earnings
(deficit)
|
223,734
|
|
|
(114,240)
|
|
Accumulated other
comprehensive loss
|
(104,967)
|
|
|
(48,061)
|
|
Total Tribune Media
Company shareholders' equity
|
3,517,908
|
|
|
3,217,136
|
|
Noncontrolling
interests
|
5,189
|
|
|
44
|
|
Total shareholders'
equity
|
3,523,097
|
|
|
3,217,180
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
8,251,391
|
|
|
$
|
8,169,328
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands of
dollars)
|
|
|
Year
Ended
|
|
December 31,
2018
|
|
December 31,
2017
|
Operating
Activities
|
|
|
|
Net income
|
$
|
412,530
|
|
|
$
|
197,497
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Stock-based
compensation
|
23,033
|
|
|
32,933
|
|
Pension credit and
contributions
|
(82,554)
|
|
|
(22,047)
|
|
Depreciation
|
54,206
|
|
|
56,314
|
|
Amortization of
contract intangible assets and liabilities
|
881
|
|
|
869
|
|
Amortization of other
intangible assets
|
166,715
|
|
|
166,679
|
|
Impairment of other
intangible asset
|
3,100
|
|
|
—
|
|
Income on equity
investments, net
|
(169,335)
|
|
|
(137,362)
|
|
Distributions from
equity investments
|
171,591
|
|
|
198,124
|
|
Non-cash loss on
extinguishments and modification of debt
|
—
|
|
|
8,258
|
|
Original issue
discount payments
|
—
|
|
|
(7,360)
|
|
Write-downs of
investments
|
—
|
|
|
193,494
|
|
Amortization of debt
issuance costs and original issue discount
|
7,509
|
|
|
7,875
|
|
Gain on sales of
spectrum
|
(133,197)
|
|
|
—
|
|
Gain on sale of
business
|
—
|
|
|
(33,492)
|
|
Loss (gain) on
investment transactions, net
|
1,113
|
|
|
(8,131)
|
|
Impairments of real
estate
|
—
|
|
|
2,399
|
|
Gain on sales of real
estate, net
|
(24,657)
|
|
|
(28,533)
|
|
Other non-operating
gain, net
|
(68)
|
|
|
(71)
|
|
Changes in working
capital items:
|
|
|
|
Accounts receivable,
net
|
1,442
|
|
|
10,638
|
|
Prepaid expenses and
other current assets
|
7,244
|
|
|
10,310
|
|
Accounts
payable
|
(4,401)
|
|
|
(8,736)
|
|
Employee compensation
and benefits, accrued expenses and other current
liabilities
|
19,682
|
|
|
(23,927)
|
|
Deferred
revenue
|
570
|
|
|
(2,423)
|
|
Income
taxes
|
(31,781)
|
|
|
6,175
|
|
Change in broadcast
rights, net of liabilities
|
(18,764)
|
|
|
45,898
|
|
Deferred income
taxes
|
79,779
|
|
|
(478,637)
|
|
Change in non-current
obligations for uncertain tax positions
|
(1,912)
|
|
|
791
|
|
Other, net
|
(13,521)
|
|
|
35,050
|
|
Net cash provided by
operating activities
|
469,205
|
|
|
222,585
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In thousands of
dollars)
|
|
|
|
|
|
Year
Ended
|
|
December 31,
2018
|
|
December 31,
2017
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(76,188)
|
|
|
(66,832)
|
|
Spectrum repack
reimbursements
|
11,276
|
|
|
984
|
|
Net proceeds from the
sale of business
|
—
|
|
|
554,487
|
|
Proceeds from FCC
spectrum auction
|
—
|
|
|
172,102
|
|
Proceeds from sales
of real estate and other assets
|
59,153
|
|
|
144,464
|
|
Proceeds from sales
of investments
|
15,232
|
|
|
148,321
|
|
Distributions from
equity investment
|
—
|
|
|
3,768
|
|
Other, net
|
1,501
|
|
|
(4,260)
|
|
Net cash provided by
investing activities
|
10,974
|
|
|
953,034
|
|
|
|
|
|
Financing
Activities
|
|
|
|
Long-term
borrowings
|
—
|
|
|
202,694
|
|
Repayments of
long-term debt
|
—
|
|
|
(703,527)
|
|
Long-term debt
issuance costs
|
—
|
|
|
(1,689)
|
|
Payments of
dividends
|
(87,709)
|
|
|
(586,336)
|
|
Tax withholdings
related to net share settlements of share-based awards
|
(6,386)
|
|
|
(8,774)
|
|
Proceeds from stock
option exercises
|
1,838
|
|
|
11,317
|
|
Contributions from
(distributions to) noncontrolling interests, net
|
475
|
|
|
(9,251)
|
|
Net cash used in
financing activities
|
(91,782)
|
|
|
(1,095,566)
|
|
|
|
|
|
Net Increase in
Cash, Cash Equivalents and Restricted Cash
|
388,397
|
|
|
80,053
|
|
Cash, cash
equivalents and restricted cash, beginning of year
|
691,251
|
|
|
611,198
|
|
Cash, cash
equivalents and restricted cash, end of year
|
$
|
1,079,648
|
|
|
$
|
691,251
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash are Comprised of:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,063,041
|
|
|
$
|
673,685
|
|
Restricted cash and
cash equivalents
|
16,607
|
|
|
17,566
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
1,079,648
|
|
|
$
|
691,251
|
|
|
|
|
|
Supplemental
Schedule of Cash Flow Information
|
|
|
|
Cash paid during the
period for:
|
|
|
|
Interest
|
$
|
161,838
|
|
|
$
|
152,401
|
|
Income
taxes, net of refunds
|
$
|
66,020
|
|
|
$
|
182,509
|
|
TRIBUNE MEDIA
COMPANY - CONSOLIDATED
|
RECONCILIATION OF
CONSOLIDATED ADJUSTED EBITDA
|
(in thousands of
dollars)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Revenue
|
$
|
578,733
|
|
|
$
|
488,999
|
|
|
|
$
|
2,009,734
|
|
|
$
|
1,848,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
attributable to Tribune Media Company
|
$
|
132,841
|
|
|
$
|
328,802
|
|
|
|
$
|
412,571
|
|
|
$
|
194,119
|
|
Net loss (income)
attributable to noncontrolling interests
|
8
|
|
|
(3,378)
|
|
|
|
41
|
|
|
(3,378)
|
|
Net Income
|
132,833
|
|
|
332,180
|
|
|
|
412,530
|
|
|
197,497
|
|
(Loss) income from
discontinued operations, net of taxes
|
—
|
|
|
(619)
|
|
|
|
—
|
|
|
14,420
|
|
Income from
Continuing Operations
|
$
|
132,833
|
|
|
$
|
332,799
|
|
|
|
$
|
412,530
|
|
|
$
|
183,077
|
|
Income tax expense
(benefit)
|
46,034
|
|
|
(219,767)
|
|
|
|
113,130
|
|
|
(301,373)
|
|
Reorganization items,
net
|
578
|
|
|
657
|
|
|
|
2,400
|
|
|
2,109
|
|
Other non-operating
gain, net
|
(15)
|
|
|
(26)
|
|
|
|
(68)
|
|
|
(71)
|
|
Write-downs of
investments
|
—
|
|
|
12,694
|
|
|
|
—
|
|
|
193,494
|
|
Loss (gain) on
investment transactions, net
|
—
|
|
|
2,486
|
|
|
|
1,113
|
|
|
(8,131)
|
|
Loss on
extinguishments and modification of debt
|
—
|
|
|
—
|
|
|
|
—
|
|
|
20,487
|
|
Pension and other
postretirement periodic benefit credit, net
|
(7,035)
|
|
|
(5,704)
|
|
|
|
(28,139)
|
|
|
(22,815)
|
|
Interest
expense
|
43,570
|
|
|
40,055
|
|
|
|
169,033
|
|
|
159,387
|
|
Interest and dividend
income
|
(4,751)
|
|
|
(1,269)
|
|
|
|
(12,224)
|
|
|
(3,149)
|
|
Income on equity
investments, net
|
(45,249)
|
|
|
(38,506)
|
|
|
|
(169,335)
|
|
|
(137,362)
|
|
Operating
Profit
|
$
|
165,965
|
|
|
$
|
123,419
|
|
|
|
$
|
488,440
|
|
|
$
|
85,653
|
|
Depreciation
|
13,649
|
|
|
14,553
|
|
|
|
54,206
|
|
|
56,314
|
|
Amortization
|
41,672
|
|
|
41,678
|
|
|
|
166,715
|
|
|
166,679
|
|
Stock-based
compensation
|
6,929
|
|
|
5,500
|
|
|
|
23,033
|
|
|
30,940
|
|
Impairment of other
intangible asset
|
3,100
|
|
|
—
|
|
|
|
3,100
|
|
|
—
|
|
Impairments of
broadcast rights
|
—
|
|
|
—
|
|
|
|
28,380
|
|
|
79,823
|
|
Severance and related
charges
|
5,515
|
|
|
219
|
|
|
|
6,757
|
|
|
11,124
|
|
Transaction-related
costs
|
22,038
|
|
|
10,800
|
|
|
|
45,990
|
|
|
37,936
|
|
Gain on sales of
spectrum
|
—
|
|
|
—
|
|
|
|
(133,197)
|
|
|
—
|
|
Spectrum repack
reimbursements
|
(4,309)
|
|
|
(984)
|
|
|
|
(11,276)
|
|
|
(984)
|
|
Gain on sales of real
estate, net
|
(24,657)
|
|
|
(28,168)
|
|
|
|
(24,657)
|
|
|
(28,533)
|
|
Pension
expense
|
233
|
|
|
192
|
|
|
|
934
|
|
|
768
|
|
Other
|
3,200
|
|
|
1,877
|
|
|
|
2,415
|
|
|
2,170
|
|
Adjusted
EBITDA
|
$
|
233,335
|
|
|
$
|
169,086
|
|
|
|
$
|
650,840
|
|
|
$
|
441,890
|
|
TRIBUNE MEDIA
COMPANY - TELEVISION AND ENTERTAINMENT
|
RECONCILIATION OF
OPERATING PROFIT TO ADJUSTED EBITDA AND BROADCAST CASH
FLOW
|
(in thousands of
dollars)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Advertising
|
$
|
406,651
|
|
|
$
|
326,199
|
|
|
|
$
|
1,315,769
|
|
|
$
|
1,225,900
|
|
Retransmission
revenues
|
119,680
|
|
|
108,509
|
|
|
|
471,632
|
|
|
412,309
|
|
Carriage
fees
|
38,668
|
|
|
31,528
|
|
|
|
161,214
|
|
|
127,935
|
|
Barter/trade
(1)
|
1,950
|
|
|
9,329
|
|
|
|
9,092
|
|
|
37,381
|
|
Other
|
9,991
|
|
|
10,457
|
|
|
|
40,971
|
|
|
31,898
|
|
Total
Revenues
|
$
|
576,940
|
|
|
$
|
486,022
|
|
|
|
$
|
1,998,678
|
|
|
$
|
1,835,423
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
$
|
184,357
|
|
|
$
|
127,225
|
|
|
|
$
|
583,271
|
|
|
$
|
196,100
|
|
Depreciation
|
11,642
|
|
|
11,300
|
|
|
|
44,766
|
|
|
42,713
|
|
Amortization
|
41,672
|
|
|
41,678
|
|
|
|
166,715
|
|
|
166,679
|
|
Stock-based
compensation
|
4,079
|
|
|
3,807
|
|
|
|
15,687
|
|
|
16,703
|
|
Impairment of other
intangible asset
|
3,100
|
|
|
—
|
|
|
|
3,100
|
|
|
—
|
|
Impairments of
broadcast rights
|
—
|
|
|
—
|
|
|
|
28,380
|
|
|
79,823
|
|
Severance and related
charges
|
5,292
|
|
|
(46)
|
|
|
|
7,155
|
|
|
4,367
|
|
Transaction-related
costs
|
1,293
|
|
|
725
|
|
|
|
5,525
|
|
|
2,060
|
|
Gain on sales of
spectrum
|
—
|
|
|
—
|
|
|
|
(133,197)
|
|
|
—
|
|
Spectrum repack
reimbursements
|
(4,309)
|
|
|
(984)
|
|
|
|
(11,276)
|
|
|
(984)
|
|
Gain on sales of real
estate
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(317)
|
|
Other
|
3,247
|
|
|
(519)
|
|
|
|
2,204
|
|
|
(1,955)
|
|
Adjusted
EBITDA
|
$
|
250,373
|
|
|
$
|
183,186
|
|
|
|
$
|
712,330
|
|
|
$
|
505,189
|
|
Broadcast rights -
Amortization
|
108,826
|
|
|
91,794
|
|
|
|
430,591
|
|
|
460,289
|
|
Broadcast rights -
Cash Payments
|
(140,569)
|
|
|
(112,052)
|
|
|
|
(477,078)
|
|
|
(480,915)
|
|
Broadcast Cash
Flow
|
$
|
218,630
|
|
|
$
|
162,928
|
|
|
|
$
|
665,843
|
|
|
$
|
484,563
|
|
|
|
|
|
|
(1)
|
Barter revenues and
related expenses are no longer recognized under the new revenue
guidance. For the three months and year ended December 31,
2017, barter revenue totaled $7 million and $28 million,
respectively.
|
TRIBUNE MEDIA
COMPANY - CORPORATE AND OTHER
|
RECONCILIATION OF
OPERATING LOSS TO ADJUSTED EBITDA
|
(in thousands of
dollars)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Total
Revenues
|
$
|
1,793
|
|
|
$
|
2,977
|
|
|
|
$
|
11,056
|
|
|
$
|
13,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Loss
|
$
|
(18,392)
|
|
|
$
|
(3,806)
|
|
|
|
$
|
(94,831)
|
|
|
$
|
(110,447)
|
|
Depreciation
|
2,007
|
|
|
3,253
|
|
|
|
9,440
|
|
|
13,601
|
|
Stock-based
compensation
|
2,850
|
|
|
1,693
|
|
|
|
7,346
|
|
|
14,237
|
|
Severance and related
charges
|
223
|
|
|
265
|
|
|
|
(398)
|
|
|
6,757
|
|
Transaction-related
costs
|
20,745
|
|
|
10,075
|
|
|
|
40,465
|
|
|
35,876
|
|
Gain on sales of real
estate, net
|
(24,657)
|
|
|
(28,168)
|
|
|
|
(24,657)
|
|
|
(28,216)
|
|
Pension
expense
|
233
|
|
|
192
|
|
|
|
934
|
|
|
768
|
|
Other
|
(47)
|
|
|
2,396
|
|
|
|
211
|
|
|
4,125
|
|
Adjusted
EBITDA
|
$
|
(17,038)
|
|
|
$
|
(14,100)
|
|
|
|
$
|
(61,490)
|
|
|
$
|
(63,299)
|
|
TRIBUNE MEDIA
COMPANY - CONSOLIDATED
|
RECONCILIATION OF
DILUTED EPS TO ADJUSTED EPS
|
(in thousands of
dollars, except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
Attributable to Tribune Media Company
|
|
|
|
|
$
|
1.50
|
|
|
|
|
|
|
|
$
|
3.72
|
|
Loss from
discontinued operations
|
|
|
|
|
—
|
|
|
|
|
|
|
|
0.01
|
|
Tax reform
|
$
|
—
|
|
|
$
|
(206)
|
|
|
(0.00)
|
|
|
|
$
|
—
|
|
|
$
|
(255,748)
|
|
|
(2.90)
|
|
Reorganization items,
net
|
578
|
|
|
578
|
|
|
0.01
|
|
|
|
657
|
|
|
657
|
|
|
0.01
|
|
Other non-operating
gain, net
|
(15)
|
|
|
(11)
|
|
|
(0.00)
|
|
|
|
(26)
|
|
|
(50)
|
|
|
(0.00)
|
|
Write-downs of
investments
|
—
|
|
|
—
|
|
|
—
|
|
|
|
12,694
|
|
|
614
|
|
|
0.01
|
|
Loss on investment
transactions, net
|
—
|
|
|
3
|
|
|
0.00
|
|
|
|
2,486
|
|
|
1,511
|
|
|
0.02
|
|
Impairment of other
intangible asset
|
3,100
|
|
|
2,302
|
|
|
0.03
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Severance and related
charges
|
5,515
|
|
|
4,095
|
|
|
0.05
|
|
|
|
219
|
|
|
133
|
|
|
0.00
|
|
Transaction-related
costs
|
22,038
|
|
|
17,029
|
|
|
0.19
|
|
|
|
10,800
|
|
|
9,224
|
|
|
0.10
|
|
Spectrum repack
reimbursements
|
(4,309)
|
|
|
(3,199)
|
|
|
(0.04)
|
|
|
|
(984)
|
|
|
(598)
|
|
|
(0.01)
|
|
Gain on sales of real
estate, net (1)
|
(24,657)
|
|
|
(18,308)
|
|
|
(0.21)
|
|
|
|
(24,868)
|
|
|
(15,120)
|
|
|
(0.17)
|
|
Other
|
3,200
|
|
|
2,376
|
|
|
0.03
|
|
|
|
1,877
|
|
|
1,216
|
|
|
0.01
|
|
Adjusted EPS
(2)
|
|
|
|
|
$
|
1.55
|
|
|
|
|
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
Attributable to Tribune Media Company
|
|
|
|
|
$
|
4.67
|
|
|
|
|
|
|
|
$
|
2.20
|
|
Income from
discontinued operations
|
|
|
|
|
—
|
|
|
|
|
|
|
|
(0.16)
|
|
Tax reform
|
$
|
—
|
|
|
$
|
(24,318)
|
|
|
(0.27)
|
|
|
|
$
|
—
|
|
|
$
|
(255,748)
|
|
|
(2.90)
|
|
Reorganization items,
net
|
2,400
|
|
|
2,400
|
|
|
0.03
|
|
|
|
2,109
|
|
|
2,109
|
|
|
0.02
|
|
Other non-operating
gain, net
|
(68)
|
|
|
(50)
|
|
|
(0.00)
|
|
|
|
(71)
|
|
|
(79)
|
|
|
(0.00)
|
|
Write-downs of
investments
|
—
|
|
|
—
|
|
|
—
|
|
|
|
193,494
|
|
|
117,644
|
|
|
1.34
|
|
Loss (gain) on
investment transactions, net
|
1,113
|
|
|
849
|
|
|
0.01
|
|
|
|
(8,131)
|
|
|
(4,944)
|
|
|
(0.06)
|
|
Loss on
extinguishments and modification of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
|
20,487
|
|
|
12,456
|
|
|
0.14
|
|
Impairment of other
intangible asset
|
3,100
|
|
|
2,302
|
|
|
0.03
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Impairments of
broadcast rights
|
28,380
|
|
|
21,072
|
|
|
0.24
|
|
|
|
79,823
|
|
|
48,532
|
|
|
0.55
|
|
Severance and related
charges
|
6,757
|
|
|
5,017
|
|
|
0.06
|
|
|
|
11,124
|
|
|
6,763
|
|
|
0.08
|
|
Transaction-related
costs
|
45,990
|
|
|
29,648
|
|
|
0.34
|
|
|
|
37,936
|
|
|
31,930
|
|
|
0.36
|
|
Gain on sales of
spectrum
|
(133,197)
|
|
|
(98,899)
|
|
|
(1.12)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Spectrum repack
reimbursements
|
(11,276)
|
|
|
(8,372)
|
|
|
(0.09)
|
|
|
|
(984)
|
|
|
(598)
|
|
|
(0.01)
|
|
Gain on sales of real
estate, net (1)
|
(24,657)
|
|
|
(18,308)
|
|
|
(0.21)
|
|
|
|
(25,233)
|
|
|
(15,342)
|
|
|
(0.17)
|
|
Other
|
2,415
|
|
|
1,790
|
|
|
0.02
|
|
|
|
2,170
|
|
|
1,431
|
|
|
0.02
|
|
Adjusted EPS
(2)
|
|
|
|
|
$
|
3.68
|
|
|
|
|
|
|
|
$
|
1.41
|
|
|
|
|
(1)
|
Gain on sales of real
estate, net in 2017 excludes amounts attributable to noncontrolling
interests.
|
(2)
|
Adjusted EPS totals
may not foot due to rounding.
|
View original
content:http://www.prnewswire.com/news-releases/tribune-media-company-reports-fourth-quarter-and-full-year-2018-results-300804626.html
SOURCE Tribune Media Company