Tribune Reports 2004 Fourth Quarter and Full Year Results

Tribune Reports 2004 Fourth Quarter and Full Year Results

CHICAGO, Jan. 28 /PRNewswire-FirstCall/ -- Tribune Company (NYSE:TRB) today reported fourth quarter 2004 diluted earnings per share of $.67 compared with $1.00 in the fourth quarter of 2003. For the full year 2004, Tribune reported diluted earnings per share of $1.67 compared with $2.61 in 2003.

Fourth quarter results included the following:
-- A charge of $.05 per diluted share in the 2004 quarter for the
elimination of approximately 230 positions in publishing.
-- A net non-operating gain of $.06 per diluted share in the 2004
quarter, compared with a net non-operating gain of $.34 per diluted
share in the 2003 quarter.
-- A charge of $.05 per diluted share in the 2004 quarter for the
cumulative effect of a change in accounting principle related to
intangible assets.


Full year results included the following:
-- A charge of $.07 per diluted share in 2004 for the elimination of
approximately 600 positions during 2004 in publishing.
-- A charge of $.17 per diluted share in 2004 related to the anticipated
settlement with advertisers regarding misstated circulation at Newsday
and Hoy, New York, for the periods September 2001 through March 2004.
-- A net non-operating loss of $.28 per diluted share in 2004, compared
with a net non-operating gain of $.52 per diluted share in 2003.
-- A charge of $.05 per diluted share in 2004 for the cumulative effect
of a change in accounting principle related to intangible assets.




Tribune presents earnings per share amounts on a generally accepted accounting principles ("GAAP") basis only. This differs from the pro forma earnings per share amounts supplied by broker analysts to databases such as First Call.

"The year just ended was a challenging one for our company, and our financial results reflect the uneven advertising environment as well as the impact of circulation misstatements at Newsday and Hoy in New York," said Dennis FitzSimons, Tribune chairman, president and chief executive officer. "We moved swiftly to address these issues, and we also repurchased over 15 million shares of common stock. Our actions have positioned Tribune for better results in 2005."

FOURTH QUARTER 2004 RESULTS (1)

CONSOLIDATED


Tribune's 2004 fourth quarter operating revenues increased 1 percent to $1.48 billion from $1.47 billion in the 2003 fourth quarter. Consolidated cash operating expenses increased $45 million, or 4 percent, in the fourth quarter of 2004; 2 percentage points, or $24 million, of the increase is attributable to the position eliminations charge in publishing discussed below. Operating cash flow was down 7 percent to $427 million compared with the fourth quarter of 2003. Tribune's operating profit decreased 8 percent to $369 million, compared with $400 million in 2003.

PUBLISHING

Publishing's fourth quarter operating revenues were $1.1 billion, up 1 percent from last year's fourth quarter. Publishing cash operating expenses rose by 5 percent; 3 percentage points, or $24 million, of the increase is attributable to the charge discussed below. Publishing operating cash flow was $279 million, an 8 percent decrease from $304 million in the fourth quarter of 2003. Publishing operating profit decreased 10 percent to $234 million, from $260 million in 2003.

Publishing operating profit in the 2004 fourth quarter included a charge of $24 million for the elimination of approximately 230 positions. These position eliminations will result in compensation expense savings of approximately $16 million for the full year 2005.

Management Discussion
-- Retail advertising revenues rose 5 percent for the quarter. Increases
in food and drug, furniture/home furnishing, auto supply, general
merchandise and health care were partially offset by a decline in
department stores. Preprint revenues increased 8 percent, led by a 17
percent increase in Los Angeles and a 9 percent increase in Chicago.
-- National advertising was down 1 percent for the quarter with increases
in the telecom, financial and package goods categories, offset by
decreases in movies/entertainment and transportation.
-- Classified advertising was up 5 percent for the quarter. Help wanted
revenues were up 12 percent: Chicago rose 16 percent, Los Angeles was
up 7 percent and New York declined 4 percent. Real estate revenues
increased 14 percent for the quarter while auto revenues were down 5
percent.
-- Circulation revenues were down 6 percent in the fourth quarter of 2004
primarily due to declines in Los Angeles and New York.
-- Interactive revenues, which are included in the above categories, were
$33 million, up 27 percent, due to strength in classified and
banner/sponsorship advertising.
-- In addition to the impact of the previously discussed $24 million
charge, higher newsprint prices and new publications also contributed
to the increase in cash operating expenses. Newsprint and ink expense
was 5 percent higher than 2003 as average newsprint cost per ton was
up 15 percent while consumption decreased by 8 percent.


BROADCASTING AND ENTERTAINMENT


Broadcasting and entertainment's fourth quarter operating revenues remained essentially flat at $385 million versus $386 million in 2003. Cash operating expenses were up 3 percent in the fourth quarter of 2004. Operating cash flow was $162 million, down 5 percent from $170 million in 2003. Operating profit declined 4 percent to $149 million from $156 million last year.

Television's fourth quarter revenues were $352 million compared with $353 million in the fourth quarter of 2003. Television cash operating expenses were up 1 percent from last year. Television operating cash flow was $158 million, a 2 percent decrease from $161 million in the fourth quarter of 2003. Television operating profit in the fourth quarter of 2004 was down 1 percent to $147 million compared with $148 million last year.

Management Discussion
-- Television advertising was driven by gains in the telecom, education
and fast food/restaurant categories, offset by softness in movies,
retail and automobiles.
-- Television cash operating expenses were up 1 percent compared with
last year primarily due to higher benefits expense, partially offset
by lower broadcast rights amortization.
-- Radio/Entertainment results reflect the impact of fewer programs at
Tribune Entertainment.


EQUITY RESULTS


Net equity income was $20 million in the fourth quarter of 2004, compared with net equity income of $12 million in the fourth quarter of 2003. The increase was primarily due to additional equity income from TV Food Network and the recognition of equity income from Comcast Sports Network.

NON-OPERATING ITEMS

In the 2004 fourth quarter, Tribune recorded a net after-tax non-operating gain of $18 million, or $.06 per diluted share, primarily from marking-to- market the Company's PHONES derivatives and related Time Warner investment. In the 2003 fourth quarter, Tribune recorded a net after-tax non-operating gain of $114 million, or $.34 per diluted share. Non-operating items in the fourth quarter of 2003 included gains from the sale of the Company's ownership interest in The Golf Channel, marking-to-market the Company's PHONES derivatives and related Time Warner investment, and insurance recoveries related to the Sept. 11, 2001 damage sustained by WPIX-TV in New York.

IMPACT OF ACCOUNTING CHANGE

In the fourth quarter of 2004, Tribune elected to early adopt the provisions of the Financial Accounting Standards Board's Emerging Issues Task Force Topic No. D-108, which requires the use of a direct valuation method for valuing intangible assets such as Federal Communication Commission ("FCC") licenses and reviewing them for impairment. Historically, Tribune had been using a residual valuation method to review its FCC licenses each year for impairment. The effect of this change was a one-time pretax charge of $29 million ($18 million after-tax, or $.05 per diluted share). The charge was recorded in the fourth quarter of 2004 as a cumulative effect of a change in accounting principle in the consolidated income statement.

FULL YEAR RESULTS

CONSOLIDATED


For the full year 2004, operating revenues increased 2 percent to $5.7 billion, up from $5.6 billion in 2003. Consolidated cash operating expenses were up 7 percent; 3 percentage points, or $131 million, of the increase is attributable to the position eliminations and estimated advertiser settlement charges in publishing discussed below. Operating cash flow was $1.45 billion, a 9 percent decrease compared with the $1.59 billion reported in 2003. Operating profit was down 11 percent to $1.2 billion, from $1.4 billion last year.

PUBLISHING

For the full year 2004, operating revenues for publishing increased 2 percent to $4.1 billion, up from $4.0 billion in 2003. Cash operating expenses increased 8 percent in 2004; 4 percentage points, or $131 million, of the increase is attributable to the charges discussed below. Operating cash flow declined 15 percent to $905 million, from $1.1 billion in 2003. Operating profit decreased 18 percent to $726 million from $885 million in 2003.

For the full year 2004, publishing operating profit included a pretax charge of $90 million related to the anticipated settlement with advertisers regarding misstated circulation at Newsday and Hoy, New York, for the periods September 2001 through March 2004. The Company will continue to evaluate the adequacy of this charge. The full year 2004 also included a pretax charge of $41 million for the elimination of about 600 positions. These position eliminations will result in annual compensation expense savings of approximately $41 million for the full year 2005.

BROADCASTING AND ENTERTAINMENT

For the full year 2004, operating revenues for broadcasting and entertainment increased 3 percent to $1.60 billion, up from $1.56 billion in 2003. Cash operating expenses increased 2 percent in 2004. Operating cash flow rose 3 percent to $597 million from $579 million. Operating profit increased 3 percent to $544 million, from $529 million.

For the full year 2004, operating revenues for television increased 2 percent to $1.35 billion, up from $1.32 billion in 2003. Cash operating expenses increased 1 percent in 2004. Operating cash flow grew 4 percent to $573 million from $552 million. Operating profit increased 4 percent to $526 million, from $507 million in 2003.

EQUITY RESULTS

Equity income was $18 million for the full year 2004, compared with $6 million in 2003. The increase was primarily due to additional equity income from TV Food Network.

ADDITIONAL FINANCIAL DETAILS

Corporate expenses for the 2004 fourth quarter decreased 10 percent to $14 million from $16 million in the fourth quarter of 2003, primarily due to lower compensation expense. Corporate expenses for the full year 2004 decreased 2 percent to $52 million from $53 million.

Net interest expense for the 2004 fourth quarter decreased to $35 million, down 26 percent from $47 million in the fourth quarter of 2003. For the full year 2004, net interest expense decreased 22 percent to $150 million, down from $192 million in 2003. The decreases were primarily due to the retirement of higher interest rate debt, which was replaced with commercial paper in the second quarter of 2004. Debt, excluding the PHONES, remained flat at $2.0 billion at the end of 2004 and 2003.

The effective tax rate in the 2004 fourth quarter was 38.7 percent, compared with 33.8 percent in the 2003 fourth quarter. The effective tax rate for the full year 2004 was 39.1 percent, compared with a rate of 37.0 percent for the full year 2003. In both the fourth quarter and full year of 2003, the Company reduced its income tax expense and liabilities by $25 million as a result of favorably resolving certain state and federal income tax issues.

Capital expenditures were about $95 million in the fourth quarter and $217 million for the full year 2004.

2005 FINANCIAL ASSUMPTIONS

Consolidated revenues will continue to be impacted by many factors, including changes in national and local economic conditions, job creation, circulation levels and audience share. As a result of this limited visibility, the Company said in December that it would not be providing revenue guidance for 2005; investors are encouraged to review the Company's monthly revenue releases for current trends.

Consolidated cash operating expenses are expected to decline in 2005 due to the absence of the $90 million advertising settlement charge and the $41 million of position elimination costs. Other consolidated cash operating expenses are expected to be up about 2 percent for 2005 due to higher expenses for retirement and medical plans and newsprint along with a slight increase in broadcast rights expense. Net equity income is projected to be somewhat higher than 2004. Interest expense is expected to be somewhat below 2004 due to the full year impact of the debt refinancing in the second quarter of 2004. The effective income tax rate for 2005 is expected to be approximately 39%. Capital expenditures are projected to increase slightly over 2004.

WEBCAST OF CONFERENCE CALL

Today at 8:00 a.m. (CST), a live Webcast of the 2004 fourth quarter conference call will be accessible through http://www.tribune.com/ and http://www.ccbn.com/ . An archive of the Webcast will be available on these sites from January 28 through February 4. More information about Tribune is available at http://www.tribune.com/ or by calling 800/757-1694.

TRIBUNE (NYSE:TRB) is one of the country's premier media companies, operating businesses in publishing and broadcasting. It reaches more than 80 percent of U.S. households and is the only media organization with newspapers, television stations and Web sites in the nation's top three markets. In publishing, Tribune operates 11 leading daily newspapers including the Los Angeles Times, Chicago Tribune and Newsday, plus a wide range of targeted publications including Spanish-language Hoy. The Company's broadcasting group operates 26 television stations; Superstation WGN on national cable; WGN-AM in Chicago; and the Chicago Cubs baseball team. Popular news and information Web sites complement Tribune's print and broadcast properties and extend the Company's nationwide audience.

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 Securities and Exchange Commission ("SEC"), including the most current annual 10-K report and quarterly 10-Q report, which contain a discussion of various factors that may affect the Company's business or financial results. Information relating to the estimated cost of settlement with Newsday and Hoy, New York, advertisers is based on facts currently available. Any of 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. This press release is being furnished to the SEC through a Form 8-K.

(1) "Operating profit" for each segment excludes interest income and
expense, equity earnings and losses, non-operating items and income
taxes. "Operating cash flow" is defined as operating profit before
depreciation and amortization. "Cash operating expenses" are defined
as operating expenses before depreciation and amortization. Tables
accompanying this release include a reconciliation of operating profit
to operating cash flow and operating expenses to cash operating
expenses.



TRIBUNE COMPANY
FOURTH QUARTER RESULTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)

FOURTH QUARTER (A)
------------------------------------
%
2004 2003 Change
---------- ---------- ------
OPERATING REVENUES $ 1,484,148 $ 1,469,633 1.0
OPERATING EXPENSES(B) 1,115,545 1,069,250 4.3
---------- ----------

OPERATING PROFIT(C) 368,603 400,383 (7.9)

Net Income on Equity Investments 19,505 12,285 58.8
Interest Income 483 974 (50.4)
Interest Expense (35,062) (47,850) (26.7)
Non-Operating Items(D) 29,403 145,750 (79.8)
---------- ----------

Income Before Income Taxes and
Cumulative Effect of Change in
Accounting Principle 382,932 511,542 (25.1)

Income Taxes (148,330) (173,129) (14.3)
---------- ----------

Income Before Cumulative Effect of
Change in Accounting Principle 234,602 338,413 (30.7)

Cumulative Effect of Change in
Accounting Principle,
net of tax (E) (17,788) - NM
---------- ----------

NET INCOME 216,814 338,413 (35.9)

Preferred Dividends, net of tax (2,077) (5,991) (65.3)
---------- ----------
Net Income Attributable
to Common Shares $ 214,737 $ 332,422 (35.4)
========== ==========
EARNINGS PER SHARE
Basic:
Before cumulative effect of change
in accounting principle, net $ .73 $ 1.06 (31.1)
Cumulative effect of change in
accounting principle, net (.05) - NM
---------- ----------
Total $ .68 $ 1.06 (35.8)
========== ==========
Diluted:
Before cumulative effect of change
in accounting principle, net $ .72 $ 1.00 (28.0)
Cumulative effect of change in
accounting principle, net (.05) - NM
---------- ----------
Total(F) $ .67 $ 1.00 (33.0)
========== ==========

DIVIDENDS PER COMMON SHARE $ .12 $ .11 9.1
---------- ----------
Diluted Weighted Average Common
Shares Outstanding(G) 321,411 336,085 (4.4)
---------- ----------


(A) 2004 fourth quarter: Sept. 27, 2004 to Dec. 26, 2004. (13 weeks)
2003 fourth quarter: Sept. 29, 2003 to Dec. 28, 2003. (13 weeks)

(B) Operating expenses for 2004 include a charge of $24 million, or
$.05 per diluted share, related to the elimination of approximately
230 positions in the publishing group.

(C) Operating profit excludes interest income and expense, equity
earnings and losses, non-operating items and income taxes.

(D) The fourth quarter of 2004 included the following non-operating items:

Pretax After-tax Diluted
Gain Gain EPS
---------- ---------- ---------
Gain on derivatives and
related investments(1) $ 27,614 $ 16,844 $ .06
Gain on sales of subsidiaries
and investments, net 1,711 1,044 -
Other, net 78 48 -
---------- ---------- ---------
Total non-operating items $ 29,403 $ 17,936 $ .06
========= ========= =========

The fourth quarter of 2003 included the following non-operating items:

Pretax After-tax Diluted
Gain(Loss) Gain(Loss) EPS
---------- ---------- ---------
Gain on derivatives and
related investments(1) $ 42,609 $ 26,077 $ .08
Gain on sales of
investments, net(2) 85,725 52,463 .16
Loss on investment write-downs (1,515) (927) -
Gain on insurance recoveries(3) 22,291 13,642 .04
Other, net (3,360) (2,056) (.01)
Income tax settlement
adjustments(4) - 25,034 .07
---------- ---------- ---------
Total non-operating items $ 145,750 $ 114,233 $ .34
========== ========== =========

(1) Gain on derivatives and related investments represents the net
change in fair values of the Company's PHONES derivatives and
related Time Warner shares.

(2) For the fourth quarter of 2003, gain on sales of investments
relates primarily to the divestiture of the Company's investment
in The Golf Channel.

(3) In the fourth quarter of 2003, the Company recorded a pretax gain
of $22 million as a result of settling the business interruption
and property damage insurance claims filed by WPIX-TV, New York,
as a result of the events of Sept. 11, 2001.

(4) In the fourth quarter of 2003, the Company reduced its income tax
expense and liabilities by a total of $25 million as a result of
favorably resolving certain state and federal income tax issues.

(E) As a result of adopting the provisions of the Financial Accounting
Standards Board's Emerging Issues Task Force Topic No. D-108, which
requires the use of a direct valuation method for intangible assets
such as FCC licenses, the Company recorded a one-time pretax charge of
$29 million ($18 million after tax, or $.05 per diluted share) in the
fourth quarter of 2004 as a cumulative effect of a change in
accounting principle in the consolidated income statement.

(F) For the fourth quarter of 2003, diluted EPS was computed assuming that
the Series B, C, D-1 and D-2 convertible preferred shares were
converted into common shares. The Series B convertible preferred
shares were converted into 15.4 million shares of common stock on
Dec. 16, 2003. Also, for both years, weighted average common shares
outstanding was adjusted for the dilutive effect of stock options. In
2004, the Series C, D-1 and D-2 convertible preferred shares were not
included in the calculation of diluted EPS because their effects were
antidilutive. Following are the calculations for the fourth quarter:

Fourth Quarter
-----------------------
2004 2003
--------- ---------
Net income $ 216,814 $ 338,413
Additional ESOP contribution
required assuming Series B
preferred shares were
converted, net of tax - (1,865)
Dividends for Series C, D-1
and D-2 preferred stock (2,077) -
--------- ---------
Adjusted net income $ 214,737 $ 336,548
--------- ---------
Weighted average common
shares outstanding 317,715 314,606
Assumed conversion of Series
B preferred shares into
common - 12,768
Assumed conversion of Series
C, D-1 and D-2 preferred
shares into common - 2,209
Assumed exercise of stock
options, net of common shares
assumed repurchased 3,696 6,502
--------- ---------
Adjusted weighted average
common shares outstanding 321,411 336,085
--------- ---------

Diluted earnings per share $ .67 $ 1.00
========= =========

(G) The number of common shares outstanding, in thousands,
at Dec. 26, 2004 was 317,073.


TRIBUNE COMPANY
FULL YEAR RESULTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)

FULL YEAR (A)
------------------------------------
%
2004 2003 Change
---------- ---------- ------
OPERATING REVENUES $ 5,726,247 $ 5,594,829 2.3
OPERATING EXPENSES(B) 4,507,958 4,234,355 6.5
---------- ----------

OPERATING PROFIT(C) 1,218,289 1,360,474 (10.5)

Net Income on Equity Investments 17,931 5,590 NM
Interest Income 3,053 6,048 (49.5)
Interest Expense (153,118) (198,123) (22.7)
Non-Operating Items(D) (145,044) 241,247 NM
---------- ----------

Income Before Income Taxes and
Cumulative Effect of Change in
Accounting Principle 941,111 1,415,236 (33.5)

Income Taxes (367,787) (523,857) (29.8)
---------- ----------

Income Before Cumulative Effect of
Change in Accounting Principle 573,324 891,379 (35.7)

Cumulative Effect of Change in
Accounting Principle,
net of tax (E) (17,788) - NM
---------- ----------

NET INCOME 555,536 891,379 (37.7)

Preferred Dividends, net of tax (8,308) (24,441) (66.0)
---------- ----------

Net Income Attributable
to Common Shares $ 547,228 $ 866,938 (36.9)
========== ==========
EARNINGS PER SHARE
Basic:
Before cumulative effect of change
in accounting principle, net $ 1.75 $ 2.78 (37.1)
Cumulative effect of change in
accounting principle, net (.05) - NM
---------- ----------
Total $ 1.70 $ 2.78 (38.8)
========== ==========
Diluted:
Before cumulative effect of change
in accounting principle, net $ 1.72 $ 2.61 (34.1)
Cumulative effect of change in
accounting principle, net (.05) - NM
---------- ----------
Total(F) $ 1.67 $ 2.61 (36.0)
========== ==========

DIVIDENDS PER COMMON SHARE $ .48 $ .44 9.1
---------- ----------
Diluted Weighted Average Common
Shares Outstanding(G) 327,237 336,243 (2.7)
---------- ----------


(A) 2004 full year: Dec. 29, 2003 to Dec. 26, 2004. (52 weeks)
2003 full year: Dec. 30, 2002 to Dec. 28, 2003. (52 weeks)

(B) Operating expenses for 2004 include a charge of $41 million, or
$.07 per diluted share, for the elimination of approximately 600
positions in the publishing group and a charge of $90 million,
or $.17 per diluted share, related to the anticipated settlement
with advertisers regarding misstated circulation at Newsday and
Hoy, New York.

(C) Operating profit excludes interest income and expense, equity
earnings and losses, non-operating items and income taxes.

(D) The full year 2004 included the following non-operating items:

Pretax After-tax Diluted
Gain(Loss) Gain(Loss) EPS
---------- ---------- ---------

Loss on derivatives and
related investments(1) $ (18,497)$ (11,283)$ (.03)
Loss on early debt retirement(2) (140,506) (87,549) (.26)
Gain on sales of subsidiaries
and investments, net(3) 20,347 12,412 .03
Loss on investment write-downs
and other, net (6,388) (3,897) (.02)
---------- ---------- ---------
Total non-operating items $ (145,044)$ (90,317)$ (.28)
========== ========== =========

The full year 2003 included the following non-operating items:

Pretax After-tax Diluted
Gain(Loss) Gain(Loss) EPS
---------- ---------- ---------

Gain on derivatives and
related investments(1) $ 84,066 $ 51,448 $ .16
Gain on sales of subsidiaries
and investments, net(3) 147,507 90,261 .27
Loss on investment write-downs (9,764) (5,976) (.01)
Gain on insurance recoveries(4) 22,291 13,642 .04
Other, net (2,853) (1,746) (.01)
Income tax settlement
adjustments(5) - 25,034 .07
---------- ---------- ---------
Total non-operating items $ 241,247 $ 172,663 $ .52
========== ========== =========

(1) Gain(loss) on derivatives and related investments represents the
net change in fair values of the Company's PHONES derivatives
and related Time Warner shares.

(2) Loss on early debt retirement relates to the retirement of $620
million of debt in the second quarter of 2004 at a cash premium
of $137 million.

(3) In 2004, gain on sales of subsidiaries and investments relates
primarily to the sale of the Company's 50% interest in La
Opinion. In 2003, gain on sales of subsidiaries and investments
relates primarily to the sale of the Company's investment in The
Golf Channel and the divestiture of the assets of Denver radio
station KKHK-FM, now known as KQMT-FM, which were exchanged for
the assets of KWBP-TV, Portland, Ore.

(4) In 2003, the Company recorded a pretax gain of $22 million as a
result of settling the business interruption and property damage
insurance claims filed by WPIX-TV, New York, as a result of the
events of Sept. 11, 2001.

(5) In 2003, the Company reduced its income tax expense and
liabilities by a total of $25 million as a result of favorably
resolving certain state and federal income tax issues.

(E) As a result of adopting the provisions of the Financial Accounting
Standards Board's Emerging Issues Task Force Topic No. D-108, which
requires the use of a direct valuation method for intangible assets
such as FCC licenses, the Company recorded a one-time pretax charge of
$29 million ($18 million after tax, or $.05 per diluted share) in the
fourth quarter of 2004 as a cumulative effect of a change in
accounting principle in the consolidated income statement.

(F) For the full year 2003, diluted EPS was computed assuming that the
Series B convertible preferred shares and the LYONs debt securities
were converted into common shares. The Series B convertible
preferred shares were converted into 15.4 million shares of
common stock on Dec. 16, 2003 and the LYONS were converted into
approximately seven million shares of common stock during
June 2003. Also, for both years, weighted average common shares
outstanding was adjusted for the dilutive effect of stock options.
The Series C, D-1 and D-2 convertible preferred shares were not
included in the calculation of diluted EPS because their effects
were antidilutive. Following are the calculations for the full year:

Full Year
-----------------------
2004 2003
--------- ---------

Net Income $ 555,536 $ 891,379
Additional ESOP contribution
required assuming Series B
preferred shares were
converted, net of tax - (9,100)
Dividends for Series C, D-1
and D-2 preferred stock (8,308) (8,252)
LYONs interest expense,
net of tax - 2,884
--------- ---------
Adjusted net income $ 547,228 $ 876,911
--------- ---------
Weighted average common
shares outstanding 322,420 311,295
Assumed conversion of Series
B preferred shares into
common - 15,171
Assumed exercise of stock
options, net of common shares
assumed repurchased 4,817 6,565
Assumed conversion of
LYONs debt securities - 3,212
--------- ---------
Adjusted weighted average
common shares outstanding 327,237 336,243
--------- ---------

Diluted earnings per share $ 1.67 $ 2.61
========= =========

(G) The number of common shares outstanding, in thousands,
at Dec. 26, 2004 was 317,073.



TRIBUNE COMPANY
BUSINESS SEGMENT DATA (Unaudited)
(In thousands)


FOURTH QUARTER
--------------------------------
%
2004 2003 Change
PUBLISHING ---------- ---------- ------
Operating Revenues $ 1,098,946 $ 1,083,324 1.4
Cash Operating Expenses(A)(B) (819,799) (779,595) 5.2
---------- ----------
Operating Cash Flow(C)(D) 279,147 303,729 (8.1)
Depreciation and Amortization Expense (45,319) (43,261) 4.8
---------- ----------
Total Operating Profit(D) $ 233,828 $ 260,468 (10.2)

BROADCASTING AND ENTERTAINMENT
Operating Revenues
Television $ 352,437 $ 353,294 (0.2)
Radio/Entertainment 32,765 33,015 (0.8)
---------- ----------
Total Operating Revenues 385,202 386,309 (0.3)

Cash Operating Expenses(A)
Television (194,096) (192,539) 0.8
Radio/Entertainment (29,241) (24,129) 21.2
---------- ----------
Total Cash Operating
Expenses (223,337) (216,668) 3.1

Operating Cash Flow(C)(D)
Television 158,341 160,755 (1.5)
Radio/Entertainment 3,524 8,886 (60.3)
---------- ----------
Total Operating Cash Flow 161,865 169,641 (4.6)

Depreciation and
Amortization Expense
Television (11,595) (12,611) (8.1)
Radio/Entertainment (1,355) (1,391) (2.6)
---------- ----------
Total Depreciation and
Amortization Expense (12,950) (14,002) (7.5)

Operating Profit(D)
Television 146,746 148,144 (0.9)
Radio/Entertainment 2,169 7,495 (71.1)
---------- ----------
Total Operating Profit $ 148,915 $ 155,639 (4.3)

CORPORATE EXPENSES
Operating Cash Flow(C)(D) $ (13,738)$ (15,251) (9.9)
Depreciation and Amortization Expense (402) (473) (15.0)
---------- ----------
Total Operating Loss(D) $ (14,140)$ (15,724) (10.1)

CONSOLIDATED
Operating Revenues $ 1,484,148 $ 1,469,633 1.0
Cash Operating Expenses(A)(B) (1,056,874) (1,011,514) 4.5
---------- ----------
Operating Cash Flow(C)(D) 427,274 458,119 (6.7)
Depreciation and Amortization Expense (58,671) (57,736) 1.6
---------- ----------
Total Operating Profit(D) $ 368,603 $ 400,383 (7.9)

(A)The Company uses cash operating expenses to evaluate internal
performance. The Company has presented cash operating expenses because
it is a common measure used by rating agencies, financial analysts and
investors. Cash operating expenses are not a measure of financial
performance under generally accepted accounting principles ("GAAP")
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.

Following is a reconciliation of operating expenses to cash operating
expenses for the fourth quarter of 2004:

Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating expenses $ 865,118 $ 236,287 $ 14,140 $1,115,545
Less: depreciation
and amortization expense 45,319 12,950 402 58,671
---------- --------- --------- ---------
Cash operating expenses $ 819,799 $ 223,337 $ 13,738 $1,056,874
========== ========= ========= =========

Following is a reconciliation of operating expenses to cash operating
expenses for the fourth quarter of 2003:

Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating expenses $ 822,856 $ 230,670 $ 15,724 $1,069,250
Less: depreciation
and amortization expense 43,261 14,002 473 57,736
---------- --------- --------- ---------
Cash operating expenses $ 779,595 $ 216,668 $ 15,251 $1,011,514
========== ========= ========= =========

(B)Publishing cash operating expenses for the fourth quarter of 2004
include a charge of $24 million for the elimination of approximately
230 positions in the publishing group.

(C)Operating cash flow is defined as operating profit before depreciation
and amortization. The Company uses operating cash flow along with
operating profit and other measures to evaluate the financial
performance of the Company's business segments. The Company has
presented operating cash flow because it is a common alternative
measure of financial performance used by rating agencies, financial
analysts and investors. These groups use operating cash flow along
with other measures as a way to estimate the value of a company. The
Company's definition of operating cash flow may not be consistent with
that of other companies. Operating cash flow does not represent cash
provided by operating activities as reflected in the Company's
consolidated statements of cash flows, is not a measure of financial
performance under GAAP and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with
GAAP.

(D)Operating profit for each segment excludes interest income and
expense, equity earnings and losses, non-operating items and income
taxes.

Following is a reconciliation of operating profit(loss) to operating
cash flow for the fourth quarter of 2004:

Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating profit(loss) $ 233,828 $ 148,915 $ (14,140)$ 368,603
Add back: depreciation
and amortization expense 45,319 12,950 402 58,671
---------- --------- --------- ---------
Operating cash flow $ 279,147 $ 161,865 $ (13,738)$ 427,274
========== ========= ========= =========

Following is a reconciliation of operating profit(loss) to operating
cash flow for the fourth quarter of 2003:


Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating profit(loss) $ 260,468 $ 155,639 $ (15,724)$ 400,383
Add back: depreciation
and amortization expense 43,261 14,002 473 57,736
---------- --------- --------- ---------
Operating cash flow $ 303,729 $ 169,641 $ (15,251)$ 458,119
========== ========= ========= =========


TRIBUNE COMPANY
BUSINESS SEGMENT DATA (Unaudited)
(In thousands)


FULL YEAR
-------------------------------
%
PUBLISHING 2004 2003 Change
--------- --------- ------
Operating Revenues $ 4,129,850 $ 4,036,920 2.3
Cash Operating Expenses(A)(B) (3,224,614) (2,975,331) 8.4
--------- ---------
Operating Cash Flow(C)(D) 905,236 1,061,589 (14.7)
Depreciation and Amortization Expense (179,029) (176,283) 1.6
--------- ---------
Total Operating Profit(D) $ 726,207 $ 885,306 (18.0)

BROADCASTING AND ENTERTAINMENT

Operating Revenues
Television $ 1,353,618 $ 1,323,038 2.3
Radio/Entertainment 242,779 234,871 3.4
--------- ---------
Total Operating Revenues 1,596,397 1,557,909 2.5

Cash Operating Expenses(A)
Television (780,540) (771,272) 1.2
Radio/Entertainment (219,132) (208,074) 5.3
--------- ---------
Total Cash Operating
Expenses (999,672) (979,346) 2.1

Operating Cash Flow(C)(D)
Television 573,078 551,766 3.9
Radio/Entertainment 23,647 26,797 (11.8)
--------- ---------
Total Operating Cash Flow 596,725 578,563 3.1

Depreciation and
Amortization Expense
Television (47,340) (44,506) 6.4
Radio/Entertainment (5,085) (5,538) (8.2)
--------- ---------
Total Depreciation and
Amortization Expense (52,425) (50,044) 4.8

Operating Profit(D)
Television 525,738 507,260 3.6
Radio/Entertainment 18,562 21,259 (12.7)
--------- ---------
Total Operating Profit $ 544,300 $ 528,519 3.0

CORPORATE EXPENSES

Operating Cash Flow(C)(D) $ (50,583)$ (51,292) (1.4)
Depreciation and Amortization Expense (1,635) (2,059) (20.6)
--------- ---------
Total Operating Loss(D) $ (52,218)$ (53,351) (2.1)

CONSOLIDATED

Operating Revenues $ 5,726,247 $ 5,594,829 2.3
Cash Operating Expenses(A)(B) (4,274,869) (4,005,969) 6.7
--------- ---------
Operating Cash Flow(C)(D) 1,451,378 1,588,860 (8.7)
Depreciation and Amortization Expense (233,089) (228,386) 2.1
--------- ---------
Total Operating Profit(D) $ 1,218,289 $ 1,360,474 (10.5)

(A)The Company uses cash operating expenses to evaluate internal
performance. The Company has presented cash operating expenses because
it is a common measure used by rating agencies, financial analysts and
investors. Cash operating expenses are not a measure of financial
performance under generally accepted accounting principles ("GAAP") and
should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with GAAP.

Following is a reconciliation of operating expenses to cash operating
expenses for the full year 2004:

Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating expenses $ 3,403,643 $1,052,097 $ 52,218 $4,507,958
Less: depreciation
and amortization expense 179,029 52,425 1,635 233,089
---------- --------- --------- ---------
Cash operating expenses $ 3,224,614 $ 999,672 $ 50,583 $4,274,869
========== ========= ========= =========

Following is a reconciliation of operating expenses to cash operating
expenses for the full year 2003:

Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating expenses $ 3,151,614 $1,029,390 $ 53,351 $4,234,355
Less: depreciation
and amortization expense 176,283 50,044 2,059 228,386
---------- --------- --------- ---------
Cash operating expenses $ 2,975,331 $ 979,346 $ 51,292 $4,005,969
========== ========= ========= =========

(B)Publishing cash operating expenses for the full year 2004 include a
charge of $41 million for the elimination of approximately 600
positions in the publishing group. Publishing cash operating expenses
for the full year 2004 also include a charge of $90 million related to
the anticipated settlement with advertisers regarding misstated
circulation at Newsday and Hoy, New York.

(C)Operating cash flow is defined as operating profit before depreciation
and amortization. The Company uses operating cash flow along with
operating profit and other measures to evaluate the financial
performance of the Company's business segments. The Company has
presented operating cash flow because it is a common alternative
measure of financial performance used by rating agencies, financial
analysts and investors. These groups use operating cash flow along with
other measures as a way to estimate the value of a company. The
Company's definition of operating cash flow may not be consistent with
that of other companies. Operating cash flow does not represent cash
provided by operating activities as reflected in the Company's
consolidated statements of cash flows, is not a measure of financial
performance under GAAP and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with
GAAP.

(D)Operating profit for each segment excludes interest income and expense,
equity earnings and losses, non-operating items and income taxes.

Following is a reconciliation of operating profit(loss) to operating
cash flow for the full year 2004:

Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating profit(loss) $ 726,207 $ 544,300 $ (52,218)$1,218,289
Add back: depreciation
and amortization expense 179,029 52,425 1,635 233,089
---------- --------- --------- ---------
Operating cash flow $ 905,236 $ 596,725 $ (50,583)$1,451,378
========== ========= ========= =========

Following is a reconciliation of operating profit(loss) to operating
cash flow for the full year 2003:


Publishing B&E Corporate Consol.
---------- --------- --------- ---------
Operating profit(loss) $ 885,306 $ 528,519 $ (53,351)$1,360,474
Add back: depreciation
and amortization expense 176,283 50,044 2,059 228,386
---------- --------- --------- ---------
Operating cash flow $ 1,061,589 $ 578,563 $ (51,292)$1,588,860
========== ========= ========= =========



TRIBUNE COMPANY
SUMMARY OF REVENUES (Unaudited)
For Fourth Quarter Ended December 26, 2004
(In thousands)

Fourth Quarter (13 weeks) Year-to-Date (52 weeks)
2004 2003 % 2004 2003 %
---------- ---------- --- ----------- ----------- ---
Publishing
----------
Advertising
Retail $ 407,141 $ 388,501 4.8 $ 1,371,088 $ 1,310,063 4.7
National 218,658 221,736 (1.4) 790,760 780,524 1.3
Classified 253,623 241,238 5.1 1,068,203 1,019,382 4.8
---------- ---------- ----------- -----------
Sub-Total 879,422 851,475 3.3 3,230,051 3,109,969 3.9
Circulation 154,766 164,116 (5.7) 643,947 663,870 (3.0)
Other 64,758 67,733 (4.4) 255,852 263,081 (2.7)
---------- ---------- ----------- -----------
Segment
Total
(A)(B) 1,098,946 1,083,324 1.4 4,129,850 4,036,920 2.3
---------- ---------- ----------- -----------
Broadcasting &
Entertainment
--------------
Television(C) 352,437 353,294 (0.2) 1,353,618 1,323,038 2.3
Radio/Enter. 32,765 33,015 (0.8) 242,779 234,871 3.4
---------- ---------- ----------- -----------
Segment
Total(D) 385,202 386,309 (0.3) 1,596,397 1,557,909 2.5
---------- ---------- ----------- -----------
Consol.
Rev.(E) $1,484,148 $1,469,633 1.0 $ 5,726,247 $ 5,594,829 2.3
========== ========== =========== ===========

(A)Interactive advertising revenues for 2004 and 2003 are included in the
appropriate publishing categories.

(B)Publishing revenues for 2003 have been reclassified to conform with the
2004 presentation. There was no effect on total revenues.

(C)Includes KPLR-TV, St. Louis and KWBP-TV, Portland, both acquired in
March of 2003. Excluding acquisitions, television revenues increased
1.3% for the year-to-date.

(D)Excluding acquisitions, broadcasting and entertainment revenues
increased 1.6% for the year-to-date.

(E)Excluding acquisitions, consolidated revenues increased 2.1% for the
year-to-date.


TRIBUNE COMPANY
SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited)(A)
For Fourth Quarter Ended December 26, 2004
(In thousands)

Fourth Quarter (13 weeks) Year-to-Date (52 weeks)
2004 2003 % 2004 2003 %
---------- ---------- --- ----------- ----------- ---
Full Run
--------
L.A. Times 697 737 (5) 2,493 2,640 (6)
Chicago Tribune 572 645 (11) 2,173 2,265 (4)
Newsday 401 399 1 1,577 1,542 2
Other
Dailies (B) 3,651 3,531 3 14,245 13,662 4
---------- ---------- ----------- -----------
Total 5,321 5,312 - 20,488 20,109 2
========== ========== =========== ===========

Part Run
--------
L.A. Times 1,481 1,463 1 5,901 5,849 1
Chicago Tribune 1,697 1,518 12 6,641 5,756 15
Newsday 516 512 1 1,935 1,886 3
Other
Dailies (B) 1,664 1,562 7 6,338 6,131 3
---------- ---------- ----------- -----------
Total 5,358 5,055 6 20,815 19,622 6
========== ========== =========== ===========

Total Advertising Inches
------------------------
Full Run
Retail 1,893 1,793 6 6,394 6,067 5
National 1,094 1,067 3 3,990 3,839 4
Classified 2,334 2,452 (5) 10,104 10,203 (1)
---------- ---------- ----------- -----------
Sub-Total 5,321 5,312 - 20,488 20,109 2
Part Run 5,358 5,055 6 20,815 19,622 6
---------- ---------- ----------- -----------
Total 10,679 10,367 3 41,303 39,731 4
========== ========== =========== ===========

Preprint Pieces
---------------
L.A. Times 1,091,771 909,717 20 3,622,143 3,060,926 18
Chicago
Tribune 1,285,858 982,945 31 4,362,882 3,367,934 30
Newsday 813,329 783,408 4 2,824,900 2,788,186 1
Other
Dailies (B) 1,209,438 1,160,799 4 4,110,507 3,929,944 5
---------- ---------- ----------- -----------
Total 4,400,396 3,836,869 15 14,920,432 13,146,990 13
========== ========== =========== ===========

(A)Volume for 2003 has been modified to conform with the 2004
presentation. Volume is based on preliminary internal data, which may
be updated in subsequent reports. Advertising volume is presented only
for daily newspapers.

(B)Other daily newspapers include The Baltimore Sun, South Florida Sun-
Sentinel, Orlando Sentinel, The Hartford Courant, The Morning Call,
Daily Press, The Advocate, Greenwich Time, Hoy, New York, Hoy, Chicago
and Hoy, Los Angeles.

TRIBUNE COMPANY
SUMMARY OF REVENUES (Unaudited)
For Period 12 Ended December 26, 2004
(In thousands)

Period 12 (5 weeks) Year-to-Date (52 weeks)
2004 2003 % 2004 2003 %
---------- ---------- --- ----------- ----------- ---
Publishing
----------
Advertising
Retail $ 180,545 $ 172,668 4.6 $ 1,371,088 $ 1,310,063 4.7
National 86,967 90,344 (3.7) 790,760 780,524 1.3
Classified 81,565 77,640 5.1 1,068,203 1,019,382 4.8
---------- ---------- ----------- -----------
Sub-Total 349,077 340,652 2.5 3,230,051 3,109,969 3.9
Circulation 58,479 62,223 (6.0) 643,947 663,870 (3.0)
Other 23,625 25,650 (7.9) 255,852 263,081 (2.7)
---------- ---------- ----------- -----------
Segment
Total(A)(B) 431,181 428,525 0.6 4,129,850 4,036,920 2.3
---------- ---------- ----------- -----------
Broadcasting &
Entertainment
--------------
Television(C) 133,383 132,588 0.6 1,353,618 1,323,038 2.3
Radio/Enter. 9,661 12,782 (24.4) 242,779 234,871 3.4
---------- ---------- ----------- -----------
Segment
Total(D) 143,044 145,370 (1.6) 1,596,397 1,557,909 2.5
---------- ---------- ----------- -----------
Consol.
Rev.(E) $ 574,225 $ 573,895 0.1 $ 5,726,247 $ 5,594,829 2.3
========== ========== =========== ===========

(A)Interactive advertising revenues for 2004 and 2003 are included in the
appropriate publishing categories.

(B)Publishing revenues for 2003 have been reclassified to conform with the
2004 presentation. There was no effect on total revenues.

(C)Includes KPLR-TV, St. Louis and KWBP-TV, Portland, both acquired in
March of 2003. Excluding acquisitions, television revenues increased
1.3% for the year-to-date.

(D)Excluding acquisitions, broadcasting and entertainment revenues
increased 1.6% for the year-to-date.

(E)Excluding acquisitions, consolidated revenues increased 2.1% for the
year-to-date.



TRIBUNE COMPANY
SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited)(A)
For Period 12 Ended December 26, 2004
(In thousands)

Period 12 (5 weeks) Year-to-Date (52 weeks)
2004 2003 % 2004 2003 %
---------- ---------- --- ----------- ----------- ---
Full Run
--------
L.A. Times 311 327 (5) 2,493 2,640 (6)
Chicago Tribune 218 260 (16) 2,173 2,265 (4)
Newsday 147 144 2 1,577 1,542 2
Other
Dailies (B) 1,386 1,368 1 14,245 13,662 4
---------- ---------- ----------- -----------
Total 2,062 2,099 (2) 20,488 20,109 2
========== ========== =========== ===========

Part Run
--------
L.A. Times 530 572 (7) 5,901 5,849 1
Chicago Tribune 557 527 6 6,641 5,756 15
Newsday 180 184 (2) 1,935 1,886 3
Other Dailies (B) 610 575 6 6,338 6,131 3
---------- ---------- ----------- -----------
Total 1,877 1,858 1 20,815 19,622 6
========== ========== =========== ===========

Total Advertising Inches
------------------------
Full Run
Retail 830 807 3 6,394 6,067 5
National 434 428 1 3,990 3,839 4
Classified 798 864 (8) 10,104 10,203 (1)
---------- ---------- ----------- -----------
Sub-Total 2,062 2,099 (2) 20,488 20,109 2
Part Run 1,877 1,858 1 20,815 19,622 6
---------- ---------- ----------- -----------
Total 3,939 3,957 - 41,303 39,731 4
========== ========== =========== ===========

Preprint Pieces
---------------
L.A. Times 484,542 410,373 18 3,622,143 3,060,926 18
Chicago
Tribune 535,051 425,652 26 4,362,882 3,367,934 30
Newsday 357,192 335,318 7 2,824,900 2,788,186 1
Other
Dailies (B) 546,884 504,173 8 4,110,507 3,929,944 5
---------- ---------- ----------- -----------
Total 1,923,669 1,675,516 15 14,920,432 13,146,990 13
========== ========== =========== ===========

(A)Volume for 2003 has been modified to conform with the 2004
presentation. Volume is based on preliminary internal data, which may
be updated in subsequent reports. Advertising volume is presented only
for daily newspapers.

(B)Other daily newspapers include The Baltimore Sun, South Florida Sun-
Sentinel, Orlando Sentinel, The Hartford Courant, The Morning Call,
Daily Press, The Advocate, Greenwich Time, Hoy, New York, Hoy, Chicago
and Hoy, Los Angeles.



Source: Tribune Company

CONTACT: Media, Gary Weitman, +1-312-222-3394 (Office), +1-312-222-1573
(Fax), or gweitman@tribune.com , or Investors, Ruthellyn Musil,
+1-312-222-3787 (Office), +1-312-222-1573 (Fax), or rmusil@tribune.com , all
of Tribune Company

Web site: http://www.tribune.com/


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