Tribune Media Company Reports Third Quarter 2014 Results

Tribune Media Company Reports Third Quarter 2014 Results

NEW YORK, Nov. 11, 2014 /PRNewswire/ -- Tribune Media Company (the "Company"; OTC:TRBAA) today reported its results for the three and nine months ended September 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.

Q3 Highlights


-- Consolidated operating revenues grew 69% to $474.9 million compared to
the third quarter of 2013.
-- Consolidated operating profit grew 21% to $55.3 million compared to the
third quarter of 2013.
-- Consolidated Adjusted EBITDA grew 52% to $146.1 million compared to the
third quarter of 2013.
-- On August 4, 2014, completed the spin-off of the Company's publishing
operations into an independent publicly-traded company, Tribune
Publishing Company.
-- Repaid $275 million of our outstanding term loan debt.
-- Announced the sale of our equity interest in Classified Ventures, LLC.
The transaction closed on October 1, 2014.
-- Strong progress on content ownership strategy; Manhattan premiered to
widespread critical acclaim.
-- Recently completed three strategic acquisitions within our Digital and
Data segment - What's ON, Baseline and HWW.
"We are pleased to see many of the long-term initiatives we have put in place since early 2013 begin to take shape," said Peter Liguori, Tribune Media's President and Chief Executive Officer. "Our recently achieved scale has put us in a competitive position to drive affiliate fees, expand our capabilities to maximize political advertising revenues and fortify our relationships with our network partners. The strong cash flows generated by our business have enabled us to develop a general entertainment cable network, pursue a content ownership strategy and invest in building our data business. I am confident that the combination of our media assets and strong operational focus will keep us on the path for continued success."

Discontinued Operations and Changes in Presentation

As a result of the spin-off of the Company's publishing operations (the "Publishing Spin-off") and the changes to our reportable segments, as further described below, certain previously reported amounts have been reclassified to conform to the current presentation as well as to reflect the reclassification of the historical results of operations for the businesses included in the Publishing Spin-Off to discontinued operations for all periods presented.

Following the Publishing Spin-Off, we conduct our operations through two reportable segments: Television and Entertainment and Digital and Data. In addition, we report and include under Corporate and Other, certain administrative activities associated with operating the corporate office functions and managing our frozen company-sponsored defined benefit pension plans, as well as the management of certain real estate assets, including revenues from leasing our owned office and production facilities.

Consolidated Results

Consolidated operating revenues for the third quarter of 2014 were $474.9 million compared to $280.6 million in the third quarter of 2013, representing an increase of $194.3 million, or 69%. Consolidated revenues for the nine months ended September 2014 were $1,395.9 million compared to $847.7 million in the nine months ended September 2013, representing an increase of $548.2 million, or 65%.

Consolidated operating profit for the third quarter of 2014 was $55.3 million compared to $45.8 million in the third quarter of 2013, representing an increase of $9.5 million, or 21%. For the nine months ended September 2014, consolidated operating profit was $137.7 million, a decrease of $17.9 million, or 11%, as compared to $155.6 million in the nine months ended September 2013.

Basic and diluted earnings per common share from continuing operations for the third quarter of 2014 were $0.53 compared to $0.39 for the third quarter of 2013. Basic and diluted earnings per common share from continuing operations for the nine months ended September 2014 was $1.48 and $1.47, respectively, compared to $1.30 for the nine months ended September 2013.

Consolidated Adjusted EBITDA increased to $146.1 million in the third quarter of 2014 from $96.4 million in the third quarter of 2013. Consolidated Adjusted EBITDA increased to $570.2 million in the nine months ended September 2014 from $393.9 million in the nine months ended September 2013.

Cash distributions from equity investments, which are included in Consolidated Adjusted EBITDA, in the third quarter of 2014 were $17.7 million compared to $16.2 million in the third quarter of 2013. Cash distributions from equity investments in the nine months ended September 2014 were $173.4 million compared to $140.3 million in the nine months ended September 2013. In addition to these quarterly cash distributions, the Company also received a cash distribution in the second quarter of 2014 of $159.6 million from Classified Ventures, LLC in connection with the sale of its Apartments.com business, which was not included in Consolidated Adjusted EBITDA as it is not part of the recurring dividends that we have historically received.

Free Cash Flow increased to $30.0 million in the third quarter of 2014 from $18.3 million in the third quarter of 2013. Free Cash Flow increased to $239.2 million in the nine months ended September 2014 from $197.9 million in the nine months ended September 2013.

Television and Entertainment

Television and Entertainment segment revenues were $417.2 million in the third quarter of 2014, an increase of $169.0 million, or 68%, as compared to $248.2 million in the third quarter of 2013. For the nine months ended September 2014, Television and Entertainment segment revenues were $1,241.4 million, an increase of $493.5 million, or 66%, compared with $747.9 million in the nine months ended September 2013.

Television and Entertainment segment Adjusted EBITDA was $132.6 million in third quarter of 2014, compared to $77.8 million in the third quarter of 2013, an increase of $54.8 million, or 70%. For the nine months ended September 2014, Television and Entertainment segment Adjusted EBITDA was $412.2 million compared with $242.5 million in the nine months ended September 2013, an increase of $169.7 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 does not reflect the impact of purchase accounting.

Television and Entertainment segment revenues were $417.2 million in the third quarter of 2014, compared to $390.0 million in the third quarter of 2013. This represents an increase of $27.2 million, or 7.0%. Retransmission consent fees in third quarter of 2014 were $58.1 million, compared to $34.2 million in the third quarter of 2013, an increase of $23.9 million, or 70%. Advertising revenues increased to $321.1 million in the third quarter of 2014 as compared with $319.2 million in the third quarter of 2013, representing an increase of $1.9 million, or 0.6%. Increases in political advertising revenues of approximately $17.1 million in the quarter were offset by declines in core advertising of $17.7 million, or 5.9%. For the nine months ended September 2014, Television and Entertainment segment revenues increased $76.1 million, or 6.5%, to $1,241.4 million compared to $1,165.3 million in the nine months ended September 2013. Retransmission consent fees in the nine months ended September 2014 increased $75.0 million, or 78%, to $170.8 million, compared to $95.8 million in the nine months ended September 2013. Advertising revenues decreased to $954.5 million in the nine months ended September 2014 as compared with $956.4 million in the nine months ended September 2013, representing a decrease of $1.9 million. Declines in core advertising of $32.5 million, or 3.6%, were partially offset by increases in political advertising revenues of approximately $25.0 million in the first nine months of 2014.

Television and Entertainment Adjusted EBITDA was $132.6 million in the third quarter of 2014, compared to $138.0 million in the third quarter of 2013. Adjusted EBITDA in the third quarter of 2014 included $24 million of costs associated with new original programming at WGN America. For the nine months ended September 2014, Television and Entertainment Adjusted EBITDA was $412.2 million, compared to $417.3 million in the nine months ended September 2013. Adjusted EBITDA in the nine months ended September 2014 included $55 million of costs associated with new original programming at WGN America.

Digital and Data

Digital and Data segment revenues in the third quarter of 2014 were $44.6 million, compared to $18.9 million in the third quarter of 2013, an increase of $25.7 million. This increase was primarily attributable to the acquisition of Gracenote in January 2014. For the nine months ended September 2014, Digital and Data segment revenues were $112.8 million, compared to $59.9 million in the nine months ended September 2013. The increase of $52.9 million, or 88%, was primarily attributable to the acquisition of Gracenote in January 2014.

Digital and Data segment Adjusted EBITDA was $10.0 million in the third quarter of 2014, compared to $7.3 million in the third quarter of 2013, an increase of $2.7 million, or 37%. The change was primarily due to the impact of the acquisition of Gracenote. For the nine months ended September 2014, Digital and Data segment Adjusted EBITDA was $14.8 million, compared to $21.4 million in the nine months ended September 2013, a decrease of $6.6 million, or 31%. The reduction in Adjusted EBITDA for the nine month period was attributable to costs associated with the establishment of the Digital and Data infrastructure, operating costs incurred in connection with Newsbeat, which was shut down during the third quarter of 2014, and costs associated with the integration of acquired businesses.

Corporate and Other

Corporate and Other operating revenues represent real estate rental revenues earned from third parties, including Tribune Publishing. Real estate revenues for the third quarter of 2014 were $13.1 million compared to $13.5 million in the third quarter of 2013, representing a decrease of $0.4 million, or 3.0%. Real estate revenues for the nine months ended September 2014 were $41.8 million compared to $39.9 million in the nine months ended September 2013, representing an increase of $1.9 million, or 4.8%.

Corporate and Other expenses reduced Adjusted EBITDA in the third quarter of 2014 by $14.1 million, compared to $4.9 million in the third quarter of 2013. The $9.2 million increase in expenses was primarily attributable to increased corporate costs due to higher compensation expense, costs associated with the implementation of a new technology application and infrastructure costs associated with the Publishing Spin-off.

For the nine months ended September 2014, Corporate and Other expenses reduced Adjusted EBITDA by $30.1 million compared to $10.3 million in the nine months ended September 2013. The $19.8 million increase in expenses was primarily attributable to higher real estate operating expenses primarily due to higher property management fees and real estate development projects, and higher corporate costs due to increased compensation expense, costs associated with the implementation of a new technology application and costs associated with the Publishing Spin-off.

Conference Call Information

The Company will host a conference call today at 8:00 a.m. ET to discuss its third quarter results and a presentation deck will be posted to the website in advance of the call. The conference call can be accessed on the Investor Relations homepage of Tribune Media's website at www.tribunemedia.com, or by dialing 866-952-1906 (domestic) or 785-424-1825 (international). An audio webcast replay will be available for 90 days, beginning approximately two hours after the completion of the call, in the Events and Presentation section of the Tribune Media website. A replay of the call will also be available until November 18, 2014 at 800-374-0934 (domestic) or 402-220-0680 (international).



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 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 (Television and Entertainment, Digital and Data, and Corporate and Other), Free Cash Flow for the Company and Broadcast Cash Flow for our Television and Entertainment segment. Adjusted EBITDA, Free Cash Flow and Broadcast Cash Flow are financial measures that are not recognized under accounting principles generally accepted in the U.S. ("GAAP"). Adjusted EBITDA for the Company is defined as net income before income (loss) from discontinued operations, net of taxes, income taxes, interest income, interest expense, pension expense (credit), 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. Adjusted EBITDA for the Company's operating segments is calculated as segment operating profit plus depreciation, amortization, pension expense (credit), stock-based compensation and certain special items (including severance). Free Cash Flow for the Company is calculated as Adjusted EBITDA, less cash paid for income taxes and interest, capital expenditures from continuing operations and cash pension contributions. Broadcast Cash Flow for the Television and Entertainment segment is calculated as total segment Adjusted EBITDA plus broadcast rights- amortization expense less broadcast rights- cash payments. We believe that Adjusted EBITDA, Free Cash Flow 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 EBITDA, Free Cash Flow 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 EBITDA, Free Cash Flow 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 EBITDA, Free Cash Flow 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 EBITDA, Free Cash Flow and Broadcast Cash Flow should not be considered as an alternative to net income, operating profit, revenues, net cash provided by operating activities or any other measures derived in accordance with GAAP as measures of operating performance or liquidity.

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, statements concerning the conditions in our industry, our operations, our economic performance and financial condition, including, in particular, statements relating to our business and growth strategy and product development efforts. Important factors could cause actual results, developments and business decisions to differ materially from forward-looking statements are uncertainties discussed in the "Risk Factors" section in the Company's Registration Statement on Form 10 filed with the U.S. Securities and Exchange Commission on September 19, 2014. "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: competition and other economic conditions including fragmentation of the media landscape and competition from other media alternatives; changes in advertising demand and audience shares; changes in the overall market for television advertising, including through regulatory and judicial rulings; our ability to protect our intellectual property and other proprietary rights; availability and cost of broadcast rights; our ability to adapt to technological changes; our ability to develop and grow our online businesses; availability and cost of quality network, syndicated and sports programming affecting our television ratings; the loss or modification of our network affiliation agreements; our ability to renegotiate retransmission consent agreements; our ability to expand our operations internationally; the incurrence of costs to address contamination issues at sites owned, operated or used by our business; adverse results from litigation, governmental investigations or tax-related proceedings or audits; 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 Fourth Amended Joint Plan of Reorganization for Tribune Company and its Subsidiaries; our ability to satisfy 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; the financial performance of our equity method investments; the impairment of our existing goodwill and other intangible assets; changes in accounting standards; increased interest rate risk due to our variable rate indebtedness; 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 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

Condensed Consolidated Statements of Operations

(In thousands of dollars, except per share data)

(Unaudited)




Three months ended Sept. 28, 2014 Three months ended Sept. 29, 2013 Nine months ended Sept. 28, 2014 Nine months ended Sept. 29, 2013
--------------------------------- --------------------------------- -------------------------------- --------------------------------


Operating Revenues $474,858 $280,608 $1,395,939 $847,679


Operating Expenses

Programming 93,928 67,390 269,551 194,303

Direct operating
expenses 107,553 55,667 311,257 169,694

Selling, general and
administrative 152,148 72,799 455,506 213,370

Depreciation 17,991 10,558 52,242 29,707

Amortization 47,953 28,395 169,645 84,996

Total operating
expenses 419,573 234,809 1,258,201 692,070
------- ------- --------- -------


Operating Profit 55,285 45,799 137,738 155,609


Income on equity
investments, net 40,559 31,899 197,775 86,035

Interest income 363 100 681 295

Interest expense (39,150) (9,558) (118,815) (28,529)

Gain on investment
transactions 2 104 702 150

Other non-operating
gain (loss), net 68 (67) (1,070) 179

Reorganization items,
net (1,594) (1,708) (5,975) (13,541)

Income from Continuing
Operations Before
Income Taxes 55,533 66,569 211,036 200,198

Income tax expense 2,647 27,325 62,601 70,516
----- ------ ------ ------

Income from Continuing
Operations 52,886 39,244 148,435 129,682

Income (loss) from
Discontinued
Operations, net of
taxes (14,889) 10,527 13,552 44,759
------- ------ ------ ------

Net Income $37,997 $49,771 $161,987 $174,441
======= ======= ======== ========


Earnings Per Common Share from Continuing Operations:

Basic $0.53 $0.39 $1.48 $1.30
===== ===== ===== =====

Diluted $0.53 $0.39 $1.47 $1.30
===== ===== ===== =====


Earnings (Loss) Per Common Share from Discontinued

Operations:

Basic and Diluted $(0.15) $0.11 $0.14 $0.44
====== ===== ===== =====


Net Earnings Per Common Share:

Basic $0.38 $0.50 $1.62 $1.74
===== ===== ===== =====

Diluted $0.38 $0.50 $1.61 $1.74
===== ===== ===== =====








Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

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

(Unaudited)


September 28, 2014 December 29, 2013
------------------ -----------------

Assets


Current Assets

Cash and cash
equivalents $756,647 $640,697

Restricted cash and
cash equivalents 19,248 221,879

Accounts receivable
(net of allowances of
$6,975 and $16,254) 405,333 644,024

Inventories - 14,222

Broadcast rights 173,026 105,325

Income taxes
receivable 20,352 11,240

Deferred income taxes 24,944 54,221

Prepaid expenses and
other 50,432 43,672

Total current assets 1,449,982 1,735,280
--------- ---------


Properties

Property, plant and
equipment 954,048 1,115,253

Accumulated
depreciation (87,021) (74,446)

Net properties 867,027 1,040,807
------- ---------


Other Assets

Broadcast rights 176,840 61,175

Goodwill 3,906,247 3,815,196

Other intangible
assets, net 2,438,077 2,516,543

Assets held for sale 4,704 -

Investments 2,030,438 2,163,162

Other 170,956 143,846
------- -------

Total other assets 8,727,262 8,699,922
--------- ---------

Total Assets $11,044,271 $11,476,009
=========== ===========




Tribune Media Company and Subsidiaries

Condensed Consolidated Balance Sheets

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

(Unaudited)


September 28, 2014 December 29, 2013
------------------ -----------------

Liabilities and Shareholders'
Equity


Current Liabilities

Accounts payable $49,724 $93,396

Senior Toggle Notes - 172,237

Debt due within one year 4,589 32,472

Accrued reorganization costs 16,707 15,521

Employee compensation and benefits 77,481 200,033

Contracts payable for broadcast
rights 206,260 139,146

Deferred revenue 33,670 77,029

Accrued expenses and other current
liabilities 59,777 69,003

Total current liabilities 448,208 798,837
------- -------


Non-Current Liabilities

Long-term debt 3,491,609 3,760,475

Deferred income taxes 1,377,283 1,393,413

Contracts payable for broadcast
rights 302,322 80,942

Contract intangible liability, net 38,842 193,730

Pension obligations, net 172,526 199,176

Post-retirement, medical, life and
other benefits 20,498 63,123

Other obligations 63,609 60,752

Total non-current liabilities 5,466,689 5,751,611
--------- ---------


Shareholders' Equity

Preferred stock ($0.001 par value
per share)

Authorized: 40,000,000 shares; No
shares issued and outstanding at
Sept. 28, 2014 and at Dec. 29,
2013 - -

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

Authorized: 1,000,000,000 shares; Issued and outstanding: 94,650,019 shares at Sept. 28,
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: 2,922,759 shares at Sept. 28,
2014 and 3,185,181 shares at Dec. 29, 2013

3 3

Additional paid-in-capital 4,585,621 4,543,228

Retained earnings 403,542 241,555

Accumulated other comprehensive
income 140,114 140,685
------- -------

Total shareholders' equity 5,129,374 4,925,561
--------- ---------

Total Liabilities and Shareholders'
Equity $11,044,271 $11,476,009
=========== ===========








Tribune Media Company and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands of dollars)

(Unaudited)



Nine months ended Sept. 28, 2014 Nine months ended Sept. 29, 2013
-------------------------------- --------------------------------


Operating Activities

Net income $161,987 $174,441

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


Stock-based compensation 22,094 4,488

Pension credits, net of
contributions (33,503) (31,195)

Depreciation 70,945 54,931

Amortization of contract
intangible assets and
liabilities (31,728) (26,116)

Amortization of other intangible
assets 173,782 89,925

Income on equity investments,
net (197,149) (85,186)

Distributions from equity
investments 173,420 140,276

Amortization of debt issuance
costs and original issue
discount 10,108 2,842

Gain on investment transactions (2,186) (150)

Other non-operating loss
(gain), net 1,091 (179)

Non-cash reorganization items,
net - (2,249)

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

Transfers from restricted cash
related to bankruptcy
disbursements 709 165,783

Changes in working capital items, excluding effects from acquisitions:

Accounts receivable, net 73,692 38,913

Inventories, prepaid expenses
and other current assets (9,459) 27,101

Accounts payable (5,217) (91,324)

Employee compensation and
benefits, accrued expenses and
other current liabilities (18,197) (9,105)

Deferred revenue 22,764 9,686

Accrued reorganization costs 1,186 (109,912)

Income taxes (7,025) (36,347)

Deferred compensation,
postretirement medical, life
and other benefits (2,642) (12,771)

Change in broadcast rights, net
of liabilities (16,214) 5,103

Deferred income taxes (69,973) 23,354

Change in non-current
obligations for uncertain tax
positions (3,776) (10,789)

Other, net (16,452) (14,214)

Net cash provided by operating
activities 297,361 307,306
------- -------


Investing Activities

Capital expenditures (59,886) (45,130)

Acquisitions, net of cash
acquired (261,584) -

Transfers from restricted cash,
net 200,813 -

Investments (2,330) (464)

Distributions from equity
investments 159,602 -

Proceeds from sales of
investments and real estate 3,337 12,913
----- ------

Net cash provided by (used for)
investing activities 39,952 (32,681)
------ -------


Financing Activities

Long-term borrowings related to
Publishing Spin-off 346,500 -

Repayment of Senior Toggle Notes (172,237) -

Repayments of long-term debt (297,783) (7,246)

Long-term debt issuance costs
related to Publishing Spin-off (10,179) -

Long-term debt issuance costs - (840)

Cash and restricted cash
distributed to Tribune
Publishing (86,530) -

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 1,171 -

Net cash used for financing
activities (221,363) (8,086)
-------- ------


Net Increase in Cash and Cash
Equivalents 115,950 266,539

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

Cash and cash equivalents, end
of period $756,647 $697,113
======== ========


Supplemental Schedule of Cash Flow Information

Cash paid during the period for:

Interest $104,751 $29,650

Income taxes, net of refunds $162,107 $126,673






Tribune Media Company - Consolidated

Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow

(in thousands of dollars)


Three months ended Sept. 28, 2014 Three months ended Sept. 29, 2013 Nine months ended Sept. 28, 2014 Nine months ended Sept. 29, 2013
--------------------------------- --------------------------------- -------------------------------- --------------------------------

Revenue $474,858 $280,608 $1,395,939 $847,679




Net Income $37,997 $49,771 $161,987 $174,441

Income (loss) from
discontinued
operations, net of
taxes (14,889) 10,527 13,552 44,759
------- ------ ------ ------

Income from
Continuing
Operations 52,886 39,244 148,435 129,682

Income tax expense 2,647 27,325 62,601 70,516

Reorganization items,
net 1,594 1,708 5,975 13,541

Other non-operating
gain (loss), net (68) 67 1,070 (179)

Gain on investment
transactions (2) (104) (702) (150)

Interest expense 39,150 9,558 118,815 28,529

Interest income (363) (100) (681) (295)

Income on equity
investments, net (40,559) (31,899) (197,775) (86,035)
------- ------- -------- -------

Operating Profit 55,285 45,799 137,738 155,609

Depreciation 17,991 10,558 52,242 29,707

Amortization 47,953 28,395 169,645 84,996

Stock-based
compensation 5,833 1,870 20,403 3,236

Severance and related
charges 1,974 727 5,125 1,402

Contract termination
cost - - 15,646 -

Other 7,072 1,581 18,961 4,768

Pension credit (7,660) (8,694) (22,982) (26,085)
------ ------ ------- -------

Total Segment
Adjusted EBITDA 128,448 80,236 396,778 253,633

Cash distributions
from equity
investments 17,690 16,203 173,420 140,276

Adjusted EBITDA $146,138 $96,439 $570,198 $393,909
======== ======= ======== ========

Less:

Cash taxes 54,568 52,371 162,107 126,673

Interest payments 37,665 7,813 104,751 29,650

Capital expenditures
from continuing
operations 16,985 13,617 53,591 34,585

Cash pension
contributions 6,910 4,380 10,551 5,110

Free Cash Flow $30,010 $18,258 $239,198 $197,891
======= ======= ======== ========











Tribune Media Company - Television and Entertainment

Summary of Television and Entertainment Segment Revenues

(in thousands of dollars)


Third Quarter
-------------

Three months ended Three months ended
Sept. 28, 2014 Sept. 29, 2013
-------------- --------------

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

Advertising $321,118 $319,249 $198,291

Retransmission consent
fees 58,109 34,167 13,530

Carriage fees 14,023 13,408 13,408

Barter/trade 11,227 10,540 7,586

Copyright royalties 6,071 6,261 6,261

Other 6,621 6,407 9,120
----- ----- -----

Total Segment Revenues $417,169 $390,032 $248,196
======== ======== ========


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

Nine months ended Nine months ended
Sept. 28, 2014 Sept. 29, 2013
-------------- --------------

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

Advertising $954,593 $956,487 $601,911

Retransmission consent
fees 170,796 95,763 34,845

Carriage fees 42,742 40,860 40,860

Barter/trade 32,010 31,515 22,641

Copyright royalties 20,057 22,265 22,265

Other 21,181 18,423 25,332
------ ------ ------

Total Segment Revenues $1,241,379 $1,165,313 $747,854
========== ========== ========


(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 - Television and Entertainment

Reconciliation of Operating Profit to Segment Adjusted EBITDA and Broadcast Cash Flow

(In thousands of dollars)


Third Quarter
-------------

Three months ended Three months ended
Sept. 28, 2014 Sept. 29, 2013
-------------- --------------

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


Operating Profit $74,129 $94,432 $42,387

Depreciation 12,693 13,599 7,797

Amortization 42,010 28,264 26,103

Stock-based
compensation 2,101 923 719

Severance and
related charges 347 726 726

Other 1,248 125 125

Pension expense
(credit) 20 (21) (21)
--- --- ---

Total Segment
Adjusted EBITDA $132,548 $138,048 $77,836
======== ======== =======


Broadcast rights -
Amortization 73,093 64,896 52,749

Broadcast rights -
Cash Payments (97,978) (71,665) (58,200)
------- ------- -------

Broadcast Cash Flow $107,663 $131,279 $72,385


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

Nine months ended Nine months ended
Sept. 28, 2014 Sept. 29, 2013
-------------- --------------

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


Operating Profit $190,530 $290,092 $139,962

Depreciation 38,205 39,271 21,725

Amortization 154,837 84,605 78,121

Stock-based
compensation 6,737 1,786 1,183

Severance and
related charges 1,869 1,339 1,339

Contract
termination cost 15,646 - -

Other 4,207 281 281

Pension expense
(credit) 124 (64) (64)
--- --- ---

Total Segment
Adjusted EBITDA $412,155 $417,310 $242,547
======== ======== ========


Broadcast rights -
Amortization 203,173 186,569 150,783

Broadcast rights -
Cash Payments (245,205) (210,803) (168,508)
-------- -------- --------

Broadcast Cash Flow $370,123 $393,076 $224,822



(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 - Digital and Data

Summary of Digital and Data Segment Revenues

(In thousands of dollars)



Three months ended Sept. 28, 2014 Three months ended Sept. 29, 2013 Nine months ended Sept. 28, 2014 Nine months ended Sept. 29, 2013
--------------------------------- --------------------------------- -------------------------------- --------------------------------


Video $23,192 $17,211 $65,450 $50,950

Music 20,408 - 43,343 -

Entertainment
websites and
other 959 1,692 4,010 8,962
--- ----- ----- -----


Total Segment
Revenues $44,559 $18,903 $112,803 $59,912
======= ======= ======== =======








Tribune Media Company - Digital and Data

Reconciliation of Operating Profit to Segment Adjusted EBITDA

(In thousands of dollars)


Three months Three months Nine months Nine months
ended ended ended ended
Sept. 28, 2014 Sept. 29, 2013 Sept. 28, 2014 Sept. 29, 2013
-------------- -------------- -------------- --------------


Operating Profit
(Loss) $(231) $4,339 $(10,517) $12,312

Depreciation 2,035 665 5,757 1,861

Amortization 5,943 2,292 14,808 6,875

Stock-based
compensation 42 7 1,379 11

Severance and
related charges 1,627 1 2,763 63

Other 580 - 580 234

Total Segment
Adjusted EBITDA $9,996 $7,304 $14,770 $21,356
====== ====== ======= =======






Tribune Media Company - Corporate and Other

Reconciliation of Operating Profit to Segment Adjusted EBITDA

(in thousands of dollars)



Three months ended Sept. 28, 2014 Three months ended Sept. 29, 2013 Nine months ended Sept. 28, 2014 Nine months ended Sept. 29, 2013
--------------------------------- --------------------------------- -------------------------------- --------------------------------


Revenue $13,130 $13,509 $41,757 $39,913



Operating Profit
(Loss) $(18,613) $(927) $(42,275) $3,335

Depreciation 3,263 2,096 8,280 6,121

Stock-based
compensation 3,690 1,144 12,287 2,042

Severance and
related charges - - 493 -

Other 5,244 1,456 14,174 4,253

Pension credit (7,680) (8,673) (23,106) (26,021)
------ ------ ------- -------

Total Segment
Adjusted EBITDA $(14,096) $(4,904) $(30,147) $(10,270)
======== ======= ======== ========











Tribune Company - Television and Entertainment

Reconciliation of Operating Profit to Segment Adjusted EBITDA and Broadcast Cash Flow - Pro forma (1)

(In thousands of dollars)


Q1 2013 Q2 2013 Q3 2013 Q4 2013 Full Year 2013
------- ------- ------- ------- --------------

Pro forma (1) Pro forma (1) Pro forma (1) Pro forma (1) Pro forma (1)
------------ ------------ ------------ ------------ ------------

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
----- ----- ----- ----- ------

Total operating
revenues 369,304 405,977 390,032 415,892 1,581,205
======= ======= ======= ======= =========


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

Stock-based
compensation 200 663 923 792 2,578

Severance and related
charges 109 504 726 302 1,641

Other 155 1 125 1,456 1,737

Pension (credit)
expense (69) 26 (21) (22) (86)
--- --- --- --- ---

Total Segment Adjusted
EBITDA $130,101 $149,161 $138,048 $155,268 $572,578
======== ======== ======== ======== ========


Broadcast rights -
Amortization 56,066 65,607 64,896 53,266 239,835

Broadcast rights -
Cash Payments (63,755) (75,383) (71,665) (68,470) (279,273)
------- ------- ------- ------- --------

Broadcast Cash Flow $122,412 $139,385 $131,279 $140,064 $533,140


(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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