Tribune Media Company Reports Second Quarter 2014 Results

Tribune Media Company Reports Second Quarter 2014 Results

CHICAGO, Aug. 12, 2014 /PRNewswire/ -- Tribune Media Company (the "Company"; OTC:TRBAA) today reported its results for the three and six months ended June 29, 2014. The consolidated financial statements along with management's discussion and analysis of financial condition and results of operations are available on the Company's corporate website, www.tribunemedia.com, and on the Company's investor relations mobile app.

Q2 Highlights


-- Consolidated revenues grew 23% to $894.5 million compared to the second
quarter of 2013
-- Consolidated Adjusted EBITDA grew 20% to $211.9 compared to the second
quarter of 2013
-- Cash flow was positively impacted by a cash distribution from Classified
Ventures, LLC of approximately $160 million related to the sale of its
Apartments.com business
-- WGN America successfully launched and renewed its first original series,
Salem
Company Results

Consolidated revenues for the three months ended June 29, 2014 were $894.5 million compared to $730.2 million in the three months ended June 30, 2013, representing an increase of $164.3 million, or 23%. Consolidated revenues for the six months ended June 29, 2014 were $1,746.7 million compared to $1,435.2 million in the six months ended June 30, 2013, representing an increase of $311.5 million, or 22%.

Consolidated operating profit for the three months ended June 29, 2014 was $61.3 million compared to $89.6 million in the three months ended June 30, 2013, representing a decrease of $28.3 million, or 32%. For the six months ended June 29, 2014, consolidated operating profit was $135.7 million, a decrease of $37.4 million, or 22%, as compared to $173.1 million in the six months ended June 30, 2013.

Consolidated Adjusted EBITDA increased to $211.9 million in the three months ended June 29, 2014 from $177.0 million in the three months ended June 30, 2013. Consolidated Adjusted EBITDA increased to $509.8 million in the six months ended June 29, 2014 from $393.9 million in the six months ended June 30, 2013.

Cash distributions from equity investments in the three months ended June 29, 2014 were $35.4 million compared to $34.2 million in the three months ended June 30, 2013. Cash distributions from equity investments in the six months ended June 29, 2014 were $155.7 million compared to $124.1 million in the six months ended June 30, 2013. In addition, the Company also received a cash distribution in the second quarter of $159.6 million from Classified Ventures, LLC in connection with the sale of its Apartments.com business.

Commenting on the second quarter results, Peter Liguori, Tribune Media president and chief executive officer stated, "I am very pleased with our accomplishments in the second quarter. The premiere of WGN America's original series, Salem, exceeded our expectations and we have renewed it for a second season. While the core advertising market experienced headwinds in the first half of the year, we continue to be encouraged by the strength of our new broadcast scale, as evidenced in our year-over-year retransmission fee increases, and feel positive about the opportunities presented by the political advertising landscape in the second half of 2014."

Broadcasting

Broadcasting segment revenues were $425.8 million in the three months ended June 29, 2014, an increase of $165.3 million, or 63%, as compared to $260.5 million in the three months ended June 30, 2013. For the six months ended June 29, 2014, Broadcasting segment revenues were $824.2 million, an increase of $324.5 million, or 65%, compared with $499.7 million in the six months ended June 30, 2013.

Broadcasting segment Adjusted EBITDA was $140.5 million in three months ended June 29, 2014, compared to $85.1 million in the three months ended June 30, 2013, an increase of $55.4 million, or 65%. For the six months ended June 29, 2014, Broadcasting segment Adjusted EBITDA was $279.6 million compared with $164.7 million in the six months ended June 30, 2013, an increase of $114.9 million, or 70%.

Pro forma for acquisition of Local TV (see attached quarterly pro forma financial disclosures)

The following discussion includes 2013 amounts that are pro forma for the acquisition of Local TV, which was completed on December 27, 2013, as if the acquisition had occurred as of the beginning of 2013, and are based on Local TV's historical basis of presentation and do not reflect the impact of purchase accounting.

Broadcasting segment revenues were $425.8 million in the three months ended June 29, 2014, compared to $406.0 million in the three months ended June 30, 2013. This represents an increase of $19.8 million, or 4.9%. Retransmission consent revenues in the three months ended June 29, 2014 were $57.1 million, compared to $32.0 million in the three months ended June 30, 2013, an increase of $25.1 million, or 78%. Advertising revenues decreased to $329.1 million in the second quarter of 2014 as compared with $336.6 million in the second quarter of 2013, representing a decrease of $7.5 million, or 2.2%. Increases in political advertising revenues of approximately $6.5 million in the quarter were offset by declines in core advertising of $15.6 million, or 4.9%. For the six months ended June 29, 2014, Broadcasting segment revenues increased $48.9 million, or 6.3%, to $824.2 million compared to $775.3 million in the six month period ended June 30, 2013. Retransmission consent revenues in the six months ended June 29, 2014 increased $51.1 million, or 83%, to $112.7 million, compared to $61.6 million in the six months ended June 30, 2013. Advertising revenues decreased to $633.4 million in the six months ended June 29, 2014 as compared with $637.2 million in the six months ended June 30, 2013, representing a decrease of $3.8 million, or 0.6%. Increases in political advertising revenues of approximately $7.9 million in the first half of 2014 were offset by declines in core advertising of $14.8 million, or 2.4%.

Broadcasting Adjusted EBITDA was $140.5 million in the three months ended June 29, 2014, compared to $149.2 million in the three months ended June 30, 2013. Adjusted EBITDA in the quarter ended June 29, 2014 included $24.5 million of additional costs associated with new original programming at WGN America. For the six months ended June 29, 2014, Broadcasting Adjusted EBITDA was $279.6 million, compared to $279.3 million in the six months ended June 30, 2013. Adjusted EBITDA in the six months ended June 29, 2014 included $31.0 million of additional costs associated with new original programming at WGN America.

Publishing

Publishing segment revenues in the three months ended June 29, 2014 were $468.7 million, compared to $469.6 million in the three months ended June 30, 2013, a decline of $0.9 million, or 0.2%. This decline was primarily attributable to declines in advertising revenue of $19.0 million, offset by increases in other revenues largely resulting from the acquisition of Gracenote in the first quarter of 2014. For the six months ended June 29, 2014, Publishing segment revenues were $922.5 million, compared to $935.5 million in the six months ended June 30, 2013. The decline of $13.0 million, or 1.4%, was primarily attributable to a decline in advertising and commercial printing revenues, partially offset by an increase in other revenues due to the acquisition of Gracenote in the first quarter of 2014.

Publishing segment Adjusted EBITDA was $56.1 million in the three months ended June 29, 2014, compared to $69.7 million in the three months ended June 30, 2013, a decline of $13.6 million, or 20%. The change was primarily due to revenue declines in the newspaper business as well as added expenses from the acquisition of Gracenote. For the six months ended June 29, 2014, Publishing segment Adjusted EBITDA was $111.9 million, compared to $127.7 million in the six months ended June 30, 2013, a decline of $15.8 million, or 12%. The change was primarily due to revenue declines in the newspaper business as well as added expenses from the acquisition of Gracenote.

Corporate

Corporate expenses reduced Adjusted EBITDA in the three months ended June 29, 2014 by $18.2 million, compared to $11.7 million in the three months ended June 30, 2013. The $6.5 million increase in expenses was primarily attributable to increased compensation expense and costs associated with the implementation of a technology application.

For the six months ended June 29, 2014, Corporate expenses reduced Adjusted EBITDA by $33.8 million compared to $21.9 million in the six months ended June 30, 2013. The $11.9 million increase in expense was primarily attributable to increased compensation expense and costs associated with the implementation of a technology application.

Tribune Media Company (OTC:TRBAA) 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 50 million households, national entertainment network WGN America, available in 72 million households, Tribune Studios, and Tribune Digital Ventures, including the websites Zap2it and TVByTheNumbers, and Gracenote, one of the world's leading sources of TV and music metadata powering electronic program guides in televisions, automobiles and mobile devices. Tribune Media also includes Chicago's WGN-AM, the national multicast networks Antenna TV and THIS TV. Additionally, the company owns and manages a significant number of real estate properties across the U.S. and holds other strategic investments in media. For more information please visit www.tribunemedia.com.

Non-GAAP Financial Measures

This press release includes a discussion of Adjusted EBITDA for the Company and our operating segments (Publishing, Broadcasting and Corporate). Adjusted EBITDA is a financial measure that is not recognized under accounting principles generally accepted in the U.S. ("GAAP"). Adjusted EBITDA is defined as earnings before income taxes, interest income, interest expense, pension expense, equity income and losses, depreciation and amortization, stock-based compensation, certain special items (including severance), non-operating items and reorganization items plus cash distributions from equity investments less cash pension contributions. Adjusted EBITDA for the Company's operating segments is calculated as segment operating profit plus depreciation, amortization, pension expense, stock-based compensation and certain special items (including severance). We believe that Adjusted EBITDA is a measure commonly used by investors to evaluate our performance and 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 EBITDA is useful to investors, as this non-GAAP measure is used, among other measures, by our management to evaluate our performance. By disclosing Adjusted EBITDA, 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 EBITDA is not a measure presented in accordance with GAAP, and our use of the term Adjusted EBITDA may vary from that of others in our industry. Adjusted EBITDA should not be considered as an alternative to net income (loss), operating profit, revenues or any other performance measures derived in accordance with GAAP as measures of operating performance or liquidity.

Cautionary Statement Regarding Forward-Looking Statements

Certain disclosures in this press release include certain forward-looking statements that are based largely on our current expectations and reflect various estimates and assumptions by the Company. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements, and are in some instances beyond our control. Such risks, trends and uncertainties include: the Company's adoption of fresh-start reporting which caused its consolidated financial statements for periods subsequent to the date we and our subsidiaries (the "Debtors") emerged from chapter 11 bankruptcy to not be comparable to prior periods; the Company's 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; our ability to retire outstanding debt and satisfy other contractual commitments; increased interest rate risk due to variable rate indebtedness; changes in advertising demand; changes in the overall market for television advertising, regulatory and judicial rulings; availability and cost of broadcast rights; competition and other economic conditions including fragmentation of the media landscape and competition from other media alternatives; our ability to develop and grow its on-line businesses; changes in accounting standards; adverse results from litigation, governmental investigations or tax-related proceedings or audits; our ability to settle unresolved claims filed in connection with the Debtors' chapter 11 cases and resolve the appeals seeking to overturn the confirmation order issued by the U.S. Bankruptcy Court for the District of Delaware on July 23, 2012; our ability to satisfy its pension and other postretirement employee benefit obligations; our ability to attract and retain employees; the effect of labor strikes, lock-outs and labor negotiations; our ability to realize benefits or synergies from acquisitions or divestitures or to operate our businesses effectively following acquisitions or divestitures; our ability to successfully integrate the acquisition of Local TV Holdings, LLC ("Local TV"), including our ability to program the acquired stations to successfully generate improved ratings and increased advertising revenue and to maintain relationships with cable operators, satellite providers and other key commercial partners of Local TV, retain key Local TV employees, and realize the expected benefits and synergies including the expected accretion in earnings; our reliance on third-party vendors and Tribune Publishing Company for various services and transitional services, respectively; our ability to adapt to technological changes; and other events beyond our control that may result in unexpected adverse operating results.

The words "believe," "expect," "anticipate," "estimate," "could," "should," "intend," "may," "plan," "seek," "will," "designed," "assume," "implied" and similar expressions generally identify forward-looking statements. Whether or not any such forward-looking statements are in fact achieved will depend on future events, some of which are beyond the control of the Company. Readers are cautioned not to place undue reliance on such forward-looking statements, which are being made as of the date of this press release. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.





Tribune Media Company and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands of dollars, except per share data)

(Unaudited)




Three months ended Three months ended Six months ended Six months ended
June 29, 2014 June 30, 2013 June 29, 2014 June 30, 2013
------------- ------------- ------------- -------------


Operating Revenues $894,480 $730,164 $1,746,692 $1,435,195


Operating Expenses

Cost of sales (exclusive of
items shown below) 440,660 379,430 863,417 755,065

Selling, general and
administrative 304,253 212,123 572,869 411,616

Depreciation 25,631 19,148 49,864 35,576

Amortization 62,616 29,895 124,874 59,856

Total operating expenses 833,160 640,596 1,611,024 1,262,113
------- ------- --------- ---------


Operating Profit 61,320 89,568 135,668 173,082


Income on equity investments,
net 118,659 37,398 156,587 53,488

Interest income 147 106 318 219

Interest expense (41,972) (12,354) (85,275) (24,476)

Gain on investment transactions 2,184 17 2,184 46

Other non-operating gain
(loss), net (1,295) 386 (1,138) 246

Reorganization items, net (2,163) (4,759) (4,389) (12,051)

Income Before Income Taxes 136,880 110,362 203,955 190,554

Income tax expense 53,958 44,051 79,965 65,884
------ ------ ------ ------

Net Income $82,922 $66,311 $123,990 $124,670
======= ======= ======== ========


Earnings Per Common Share:

Basic and Diluted $0.83 $0.66 $1.24 $1.25
===== ===== ===== =====




Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of dollars, except for share and per share data)

(Unaudited)


June 29, 2014 December 29, 2013
------------- -----------------

Assets


Current Assets

Cash and cash equivalents $851,224 $640,697

Restricted cash and cash
equivalents 19,273 221,879

Accounts receivable (net of
allowances of $18,423 and
$16,254) 608,587 644,024

Inventories 16,074 14,222

Broadcast rights 73,919 105,325

Income taxes receivable 1,998 11,240

Deferred income taxes 61,407 54,221

Prepaid expenses and other 69,451 43,672

Total current assets 1,701,933 1,735,280
--------- ---------


Properties

Property, plant and equipment 1,148,725 1,115,253

Accumulated depreciation (120,488) (74,446)

Net properties 1,028,237 1,040,807
--------- ---------


Other Assets

Broadcast rights 72,671 61,175

Goodwill 3,903,287 3,815,196

Other intangible assets, net 2,520,832 2,516,543

Assets held for sale 7,780 -

Investments 2,004,055 2,163,162

Other 157,879 143,846
------- -------

Total other assets 8,666,504 8,699,922
--------- ---------

Total Assets $11,396,674 $11,476,009
=========== ===========







Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of dollars, except for share and per share data)

(Unaudited)


June 29, 2014 December 29, 2013
------------- -----------------

Liabilities and Shareholders' Equity


Current Liabilities

Accounts payable $97,705 $93,396

Senior Toggle Notes - 172,237

Other debt due within one year 41,566 32,472

Accrued reorganization costs 16,537 15,521

Employee compensation and benefits 149,433 200,033

Contracts payable for broadcast
rights 110,304 139,146

Deferred revenue 101,267 77,029

Accrued expenses and other current
liabilities 125,845 69,003

Total current liabilities 642,657 798,837
------- -------


Non-Current Liabilities

Long-term debt 3,740,150 3,760,475

Deferred income taxes 1,375,134 1,393,413

Contracts payable for broadcast
rights 86,585 80,942

Contract intangible liability, net 174,149 193,730

Pension obligations, net 187,057 199,176

Post-retirement, medical, life and
other benefits 63,585 63,123

Other obligations 64,654 60,752

Total non-current liabilities 5,691,314 5,751,611
--------- ---------


Shareholders' Equity

Preferred stock ($0.001 par value
per share)

Authorized: 40,000,000 shares; No
shares issued and outstanding at
June 29, 2014 and at Dec. 29, 2013 - -

Class A Common Stock ($0.001 par
value per share)

Authorized: 200,000,000 shares;
Issued and outstanding: 93,692,489
shares at June 29, 2014 and
89,933,876 shares at Dec. 29, 2013 94 90

Class B Common Stock ($0.001 par
value per share)

Authorized: 200,000,000 shares;
Issued and outstanding: 2,945,897
shares at June 29, 2014 and
3,185,181 shares at Dec. 29, 2013 3 3

Additional paid-in-capital 4,557,951 4,543,228

Retained earnings 365,545 241,555

Accumulated other comprehensive
income 139,110 140,685
------- -------

Total shareholders' equity 5,062,703 4,925,561
--------- ---------

Total Liabilities and Shareholders'
Equity $11,396,674 $11,476,009
=========== ===========




Tribune Media Company and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands of dollars)

(Unaudited)



Six months ended Six months ended
June 29, 2014 June 30, 2013
------------- -------------


Operating Activities

Net income $123,990 $124,670

Adjustments to reconcile net income to
net cash provided by (used for)
operating activities:


Stock-based compensation 16,026 1,866

Pension credits, net of contributions (18,932) (18,120)

Depreciation 49,864 35,576

Amortization of contract intangible
assets and liabilities (17,946) (14,408)

Amortization of other intangible assets 124,874 59,856

Income on equity investments, net (156,587) (53,488)

Distributions from equity investments 155,730 124,073

Amortization of debt issuance costs and
original issue discount 6,675 1,887

Gain on investment transactions (2,184) (46)

Other non-operating (gain) loss, net 1,138 (246)

Non-cash reorganization items, net - (1,083)

Excess tax benefits from stock-based
awards (896) -

Transfers from restricted cash related
to bankruptcy disbursements 684 141,297

Changes in working capital items,
excluding effects from acquisitions:

Accounts receivable, net 55,291 43,975

Inventories, prepaid expenses and other
current assets (10,903) 25,788

Accounts payable 3,143 (87,659)

Employee compensation and benefits,
accrued expenses and other current
liabilities

(37,307) (39,576)

Deferred revenue 16,757 8,947

Accrued reorganization costs 1,016 (99,188)

Income taxes 29,724 (30,563)

Deferred compensation, postretirement
medical, life and other benefits (1,701) (11,807)

Change in broadcast rights, net of
liabilities (3,881) (1,818)

Deferred income taxes (57,589) 32,915

Change in non-current obligations for
uncertain tax positions - (10,792)

Other, net (6,088) (6,721)

Net cash provided by operating
activities 270,898 225,335
------- -------


Investing Activities

Capital expenditures (39,597) (28,869)

Acquisitions, net of cash acquired (191,596) -

Transfers from restricted cash, net 200,813 -

Investments (2,330) (399)

Distributions from equity investments 159,602 -

Proceeds from sales of investments and
real estate 705 10,994
--- ------

Net cash (used for) provided by
investing activities 127,597 (18,274)
------- -------


Financing Activities

Repayment of Senior Toggle Notes (172,237) -

Repayments of long-term debt (11,848) (6,726)

Long-term debt issuance costs (2,584) -

Excess tax benefits from stock-based
awards 896 -

Tax withholdings related to net share
settlements of share-based awards (3,201) -

Proceeds from stock option exercises 1,006 -

Net cash used for financing activities (187,968) (6,726)
-------- ------


Net Increase (Decrease) in Cash and Cash
Equivalents 210,527 200,335

Cash and cash equivalents, beginning of
period 640,697 430,574

Cash and cash equivalents, end of period $851,224 $630,909
======== ========


Supplemental Schedule of Cash Flow
Information

Cash paid during the period for:

Interest $67,086 $21,837

Income taxes, net of refunds $107,539 $74,302







Tribune Media Company - Consolidated

Reconciliation of Operating Profit to Adjusted EBITDA

(in thousands of dollars)


Three months ended Three months ended Six months ended Six months ended
June 29, 2014 June 30, 2013 June 29, 2014 June 30, 2013
------------- ------------- ------------- -------------


Revenue $894,480 $730,164 $1,746,692 $1,435,195
------- -------- -------- ---------- ----------




Operating Profit $61,320 $89,568 $135,668 $173,082

Depreciation 25,631 19,148 49,864 35,576

Amortization 62,616 29,895 124,874 59,856

EBITDA 149,567 138,611 310,406 268,514


Special Items/Stock-Based
Compensation:

Stock-based compensation 6,778 1,866 16,026 1,866

Severance and related charges 3,336 1,496 6,299 3,168

Transaction-related costs 7,462 10,774 19,703 12,147

Contract termination cost 15,646 - 15,646 -

Other 3,136 (462) 4,986 2,225

EBITDA excluding Special Items/
Stock-Based Compensation 185,925 152,285 373,066 287,920

Pension (credit) expense (7,518) (9,125) (15,322) (17,391)
------ ------ ------- -------

Total Segment Adjusted EBITDA 178,407 143,160 357,744 270,529

Cash distributions from equity
investments (1) 35,460 34,208 155,730 124,073

Cash pension contributions (1,911) (380) (3,641) (730)

Adjusted EBITDA $211,956 $176,988 $509,833 $393,872
======== ======== ======== ========


(1) Cash distributions from equity
investments in 2014 excludes a
distribution from Classified Ventures,
LLC of approximately $160 million
related to the sale of its
Apartments.com business.







Tribune Media Company - Broadcasting

Summary of Broadcasting Revenues

(in thousands of dollars)


Second Quarter
--------------

Three months ended Three months ended
June 29, 2014 June 30, 2013
------------- -------------

As Reported As Reported Pro forma (1)
----------- ----------- ------------

Advertising $329,132 $212,243 $336,589

Retransmission consent fees 57,122 11,367 32,029

Carriage fees 14,591 13,719 13,719

Barter/trade 10,472 7,641 10,634

Copyright royalties 7,454 6,296 6,296

Other 7,025 9,233 6,710


Total Broadcasting Segment
Revenues $425,796 $260,499 $405,977
======== ======== ========


Year-to-Date
------------

Six months ended Six months ended
June 29, 2014 June 30, 2013
------------- -------------

As Reported As Reported Pro forma (1)
----------- ----------- ------------

Advertising $633,475 $403,620 $637,238

Retransmission consent fees 112,687 21,315 61,596

Carriage fees 28,719 27,452 27,452

Barter/trade 20,783 15,055 20,975

Copyright royalties 13,986 16,004 16,004

Other 14,560 16,212 12,016


Total Broadcasting Segment
Revenues $824,210 $499,658 $775,281
======== ======== ========


(1) Amounts are pro forma
for the acquisition of
Local TV, which was
completed on December 27,
2013, as if the
acquisition had occurred
as of the beginning of
fiscal 2013.







Tribune Media Company - Broadcasting

Reconciliation of Operating Profit to Adjusted EBITDA

(In thousands of dollars)


Second Quarter
--------------

Three months ended Three months ended
June 29, 2014 June 30, 2013
------------- -------------

As Reported As Reported Pro forma (1)
----------- ----------- ------------


Operating Profit $52,248 $50,596 $106,387

Depreciation 13,136 7,465 13,408

Amortization 56,172 26,010 28,172

EBITDA 121,556 84,071 147,967


Special Items/Stock-Based
Compensation:

Stock-based compensation 2,113 464 663

Severance and related charges 108 504 504

Transaction-related costs 974 - -

Contract termination cost 15,646 - -

Other 12 1 1

EBITDA excluding Special Items/
Stock-Based Compensation 140,409 85,040 149,135

Pension (credit) expense 61 26 26
--- --- ---

Total Segment Adjusted EBITDA $140,470 $85,066 $149,161
======== ======= ========


Year-to-Date
------------

Six months ended Six months ended
June 29, 2014 June 30, 2013
------------- -------------

As Reported As Reported Pro forma (1)
----------- ----------- ------------


Operating Profit $116,401 $97,575 $195,660

Depreciation 25,512 13,928 25,672

Amortization 112,827 52,018 56,341

EBITDA 254,740 163,521 277,673


Special Items/Stock-Based
Compensation:

Stock-based compensation 4,636 464 863

Severance and related charges 1,522 613 613

Transaction-related costs 1,391 - -

Contract termination cost 15,646 - -

Other 1,568 156 156

EBITDA excluding Special Items/
Stock-Based Compensation 279,503 164,754 279,305

Pension (credit) expense 104 (43) (43)
--- --- ---

Total Segment Adjusted EBITDA $279,607 $164,711 $279,262
======== ======== ========


(1) Amounts are pro forma for
the acquisition of Local TV,
which was completed on
December 27, 2013, as if the
acquisition had occurred as of
the beginning of fiscal 2013.
Pro forma operating expenses,
depreciation and amortization
for Local TV are based on
Local TV's historical basis of
presentation and do not
reflect the impact of purchase
accounting.




Tribune Media Company - Publishing

Summary of Publishing Revenues

(In thousands of dollars)



Three months ended Three months ended Six months ended Six months ended
June 29, 2014 June 30, 2013 June 29, 2014 June 30, 2013
------------- ------------- ------------- -------------


Advertising

Retail $125,896 $136,470 $239,237 $265,963

National 45,684 53,992 98,117 109,593

Classified 71,362 71,455 140,053 140,165
------ ------ ------- -------

Total advertising 242,942 261,917 477,407 515,721


Circulation 109,010 106,518 216,317 213,632

Other 116,732 101,230 228,758 206,184


Total Publishing
Segment Revenues $468,684 $469,665 $922,482 $935,537
======== ======== ======== ========




Tribune Media Company - Publishing

Reconciliation of Operating Profit to Adjusted EBITDA

(In thousands of dollars)


Three months ended Three months ended Six months ended Six months ended
June 29, 2014 June 30, 2013 June 29, 2014 June 30, 2013
------------- ------------- ------------- -------------


Operating Profit $32,896 $59,610 $71,560 $106,000

Depreciation 12,341 11,588 24,049 21,467

Amortization 6,444 3,885 12,047 7,838

EBITDA 51,681 75,083 107,656 135,305


Special Items/Stock-Based
Compensation:

Stock-based compensation 1,345 504 2,793 504

Severance and related charges 3,130 992 4,287 2,555

Transaction-related costs 2,808 686 5,949 1,069

Other 3,124 (463) 3,416 2,069

EBITDA excluding Special Items/
Stock-Based Compensation 62,088 76,802 124,101 141,502

Pension credit (5,952) (7,054) (12,168) (13,785)
------ ------ ------- -------

Total Segment Adjusted EBITDA $56,136 $69,748 $111,933 $127,717
======= ======= ======== ========




Tribune Media Company - Corporate

Reconciliation of Operating Profit to Adjusted EBITDA

(in thousands of dollars)



Three months ended Three months ended Six months ended Six months ended
June 29, 2014 June 30, 2013 June 29, 2014 June 30, 2013
------------- ------------- ------------- -------------


Operating Profit $(23,824) $(20,638) $(52,293) $(30,493)

Depreciation 154 95 303 181

Amortization - - - -
--- ---

EBITDA (23,670) (20,543) (51,990) (30,312)


Special Items/Stock-Based
Compensation:

Stock-based compensation 3,320 898 8,597 898

Severance and related charges 98 - 490 -

Transaction-related costs 3,680 10,088 12,363 11,078

Other - - 2 -

EBITDA excluding Special Items/
Stock-Based Compensation (16,572) (9,557) (30,538) (18,336)

Pension credit (1,627) (2,097) (3,258) (3,563)
------ ------ ------ ------

Total Segment Adjusted EBITDA $(18,199) $(11,654) $(33,796) $(21,899)
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Tribune Company - Broadcasting

Reconciliation of Operating Profit to Adjusted Segment EBITDA - Pro forma (1)

(In thousands of dollars)


Q1 2013 Q2 2013 Q3 2013 Q4 2013 Full Year 2013
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Pro forma (1) Pro forma (1) Pro forma (1) Pro forma (1) Pro forma (1)
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Advertising $300,649 $336,589 $319,249 $336,912 $1,293,399

Retransmission consent fees 29,567 32,029 34,167 34,774 130,537

Carriage fees 13,733 13,719 13,408 12,936 53,796

Barter/trade 10,341 10,634 10,540 11,253 42,768

Copyright royalties 9,708 6,296 6,261 10,689 32,954

Other 5,306 6,710 6,407 9,328 27,751
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Total operating revenues 369,304 405,977 390,032 415,892 1,581,205
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Operating expenses 280,031 299,590 295,600 307,047 1,182,268


Operating Profit 89,273 106,387 94,432 108,845 398,937

Depreciation 12,264 13,408 13,599 14,444 53,715

Amortization 28,169 28,172 28,264 29,451 114,056

EBITDA 129,706 147,967 136,295 152,740 566,708


Special items/Stock-Based
Compensation:

Stock-based compensation 200 663 923 792 2,578

Severance and related charges 109 504 726 302 1,641

Transaction-related costs - - 48 181 229

Other 155 1 77 1,275 1,508

EBITDA excluding Special Items/
Stock-Based Compensation 130,170 149,135 138,069 155,290 572,664

Pension (credit) expense (69) 26 (21) (22) (86)
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Total Segment Adjusted EBITDA $130,101 $149,161 $138,048 $155,268 $572,578
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(1) Amounts are pro forma for
the acquisition of Local TV,
which was completed on
December 27, 2013, as if the
acquisition had occurred as of
the beginning of 2013. Pro
forma operating expenses,
depreciation and amortization
for Local TV are based on
Local TV's historical basis of
presentation and do not
reflect the impact of purchase
accounting.


SOURCE Tribune Media Company

Tribune Media Company

CONTACT: Investor Contact: Donna Granato, VP/Corporate Finance & Investor Relations, 212/210-2703, dgranato@tribunemedia.com; Media Contact: Christa Robinson, Chief Communications Officer, 212/210-2794, christa@tribunemedia.com

Web Site: http://www.tribunemedia.com


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