NEW YORK, March 1, 2017
/PRNewswire/-- Tribune Media Company (the "Company") (NYSE: TRCO)
today reported its results for the three months and year ended
December 31, 2016.
FOURTH QUARTER AND FULL-YEAR 2016 FINANCIAL HIGHLIGHTS
(compared to the prior year period)
- In January 2017, the Company
completed the sale of substantially all of its Digital and Data
business to Nielsen. The historical results of operations for the
businesses included in the sale are reported as discontinued
operations for all periods presented. All references made to
financial data in this release are to Tribune Media Company's
continuing operations.
- Consolidated operating revenues increased 11% to $529.6 million for the fourth quarter and
increased 8% to $1,947.9 million for
the full year
- Consolidated operating profit increased 129% to $113.2 million for the fourth quarter and
increased 261% to $433.6 million for
the full year
- Consolidated Adjusted EBITDA increased 38% to $181.5 million for the fourth quarter and
increased 21% to $531.1 million for
the full year
- Total Television and Entertainment net advertising revenues
(which includes political and digital revenues) increased 10% to
$384.6 million for the fourth quarter
and increased 5% to $1,374.6 million
for the full year
- Retransmission revenue increased 20% to $89.2 million for the fourth quarter and
increased 18% to $334.7 million for
the full year
- Carriage fee revenue increased 35% to $30.7 million for the fourth quarter and
increased 42% to $121.0 million for
the full year
- Digital ad revenue increased 7% to $18.9
million for the fourth quarter and increased 12% to
$66.6 million for the full year
"Bolstered by record fourth quarter revenues, Tribune Media's
financial results for 2016 were very strong," said Peter Liguori, Tribune Media's President and
Chief Executive Officer. "Consolidated revenues grew 8% and
consolidated Adjusted EBITDA was up 21% over last year, driven by
strong political advertising revenue and solid growth in
retransmission and carriage fee revenues. These results are a
clear demonstration that our operational strategies continue
delivering value for our shareholders. In addition, last
year's monetization of real estate assets for more than
$500 million and the recent sale of
Gracenote enables Tribune Media to be a more focused television
company, uniquely positioned to take advantage of the opportunities
presented by a rapidly changing media environment."
FOURTH QUARTER AND FULL-YEAR 2016 RESULTS
Discontinued Operations
On December 19, 2016, the Company
entered into an agreement with Nielsen to sell equity interests in
substantially all of the Digital and Data business for $560 million in cash, subject to certain purchase
price adjustments. The Company completed the sale on January 31, 2017 and received gross proceeds of
$581 million. The historical results
of operations for the businesses included in the sale are reported
as discontinued operations for all periods presented. Accordingly,
all references made to financial data in this release are to
Tribune Media Company's continuing operations.
Consolidated
Consolidated operating revenues for the fourth quarter of 2016
were $529.6 million compared to
$478.0 million in the fourth quarter
of 2015, representing an increase of $51.6
million, or 11%. The increase was primarily driven by
higher political advertising, retransmission, carriage fee and
digital advertising revenues, partially offset by a decrease in
core advertising revenues and real estate revenues as a result of
the sales of certain properties in 2016.
For the full year 2016, consolidated operating revenues were
$1,947.9 million compared to
$1,802.0 million for the full year
2015, representing an increase of $146.0
million, or 8%.
Consolidated operating profit was $113.2
million for the fourth quarter of 2016 compared to a
consolidated operating loss of $396.9
million for the fourth quarter of 2015. The Company recorded
non-cash impairment charges of $3
million related to other intangible assets in the fourth
quarter of 2016 and $385 million
related to goodwill and other intangible assets in the fourth
quarter of 2015. Consolidated operating profit before impairments
of goodwill and other intangible assets in the fourth quarter of
2016 was $116.6 million compared to
an operating loss of $11.9 million in
the fourth quarter of 2015, representing an increase of
$128.5 million. The increase was
primarily due to higher political revenues and the absence of a
$73.8 million program impairment
charge related to the write down of the acquired syndicated
programming Person of Interest and Elementary at WGN
America recorded in the fourth quarter of 2015.
For the full year 2016, consolidated operating profit was
$433.6 million compared to a
consolidated operating loss of $269.3
million in the full year 2015. Consolidated operating profit
before impairments of goodwill and other intangible assets was
$437.0 million in 2016 compared to
$115.7 million in 2015, representing
an increase of $321.3 million
primarily due to $213.1 million of
gains recorded on the sales of real estate and higher Television
and Entertainment operating profit primarily as a result of an
increase in advertising revenues driven by higher political
spending and a $37.0 million decrease
in program impairment charges. In the third quarter of 2016, the
Company recorded a $36.8 million
impairment charge for the syndicated program Elementary at
WGN America compared to a $73.8
million impairment charge in the fourth quarter of 2015, as
noted above.
For the full year 2016, the Company recognized net pretax gains
on the sales of real estate, including Tribune Tower, the north
block of the Los Angeles Times Square property and the Olympic
printing plant located in Los
Angeles, of $213.1 million
($129.6 million after tax), or
$1.43 per common share. Also in 2016,
the Company reached an agreement with the IRS administrative
appeals division to resolve the income tax dispute regarding the
2008 formation of the Newsday partnership. For the full year 2016,
the Company recorded net income tax charges of $191.0 million related to this matter, or
$2.10 per common share.
Net income was $19.0 million in
the fourth quarter of 2016 compared to a net loss of $380.9 million in the fourth quarter of
2015. Net income was $14.2
million for the full year 2016 compared to a net loss of
$319.9 million in 2015.
Consolidated income from continuing operations was $70.7 million in the fourth quarter of 2016
compared to a loss from continuing operations of $388.6 million in the fourth quarter of 2015.
Diluted earnings per common share from continuing operations for
the fourth quarter of 2016 was $0.81
compared to diluted loss per common share from continuing
operations of $4.15 for the fourth
quarter of 2015. Adjusted diluted earnings per
share ("Adjusted EPS") from continuing operations for the
fourth quarter of 2016 was $0.85
compared to $0.56 for the fourth
quarter of 2015. Both diluted earnings per common share from
continuing operations and Adjusted EPS from continuing operations
include an income tax benefit of $2
million, or $0.02 per common
share, in the fourth quarter of 2016 and an income tax benefit of
$4 million, or $0.04 per common share, in the fourth quarter of
2015 related to certain tax adjustments.
Consolidated income from continuing operations was $87.0 million for the full year 2016 compared to
a loss from continuing operations of $315.3
million for the full year 2015. For the full year 2016,
diluted income per common share from continuing operations was
$0.96 compared to diluted loss per
common share from continuing operations of $3.33 for the full year 2015. Adjusted EPS from
continuing operations for the full year 2016 was $2.13 compared to $1.54 for the full year 2015. Both diluted
earnings per common share from continuing operations and Adjusted
EPS from continuing operations include an income tax benefit of
$11 million, or $0.13 per common share, for the full year 2016
and an income tax benefit of $8
million, or $0.08 per common
share, for the full year 2015 related to certain tax
adjustments.
Consolidated Adjusted EBITDA increased to $181.5 million in the fourth quarter of 2016 from
$131.9 million in the fourth quarter
of 2015, representing an increase of $49.6
million, or 38%. The increase in consolidated Adjusted
EBITDA was primarily attributable to higher political advertising
revenues and increased retransmission and carriage fee revenues,
partially offset by a decrease in core advertising revenues and
real estate revenues. For the full year 2016, consolidated Adjusted
EBITDA increased $91.4 million, or
21%, to $531.1 million as compared to
$439.7 million in the full year
2015.
Cash distributions from equity investments in the fourth quarter
of 2016 were $27.0 million compared
to $19.1 million in the fourth
quarter of 2015. Cash distributions for the full year 2016 were
$170.5 million compared to
$180.2 million for the full year
2015.
Television and Entertainment
Revenues were $525.7 million
in the fourth quarter of 2016 compared to $465.5 million in the fourth quarter of 2015, an
increase of $60.2 million, or 13%.
This was driven by a $68.3 million
increase in net political advertising revenue, an increase in
retransmission revenue of $14.9
million, or 20%, and an increase in carriage fee revenue of
$8.0 million, or 35%, partially
offset by a decrease in core advertising revenue (comprised of
local and national advertising, excluding political and digital) of
$33.0 million, or 10%. Core
advertising was negatively impacted by displacement from
significant political advertising during the first five weeks of
the fourth quarter.
Television and Entertainment segment revenues for the full year
2016 were $1,909.9 million compared
to $1,752.5 million for the full year
2015, an increase of $157.4 million,
or 9%. The increase was driven by a $116.7
million increase in net political advertising revenue, an
increase in retransmission revenues of $51.6
million, or 18%, and an increase in carriage fee revenues of
$35.7 million, or 42%, partially
offset by lower core advertising revenue.
Television and Entertainment operating profit for the fourth
quarter of 2016 was $136.9 million
compared to an operating loss of $365.2
million in the fourth quarter of 2015. Television and
Entertainment operating profit before impairments of goodwill and
other intangible assets was $140.3
million and $19.8 million for
the fourth quarters of 2016 and 2015, respectively. The increase
was primarily due to higher operating revenues in the fourth
quarter of 2016 and the absence of the program impairment charge in
the fourth quarter of 2015. Television and Entertainment Adjusted
EBITDA for the fourth quarter of 2016 was $199.5 million compared to $151.6 million in the fourth quarter of 2015, an
increase of $48.0 million, or 32%,
primarily due to higher net political advertising, retransmission
and carriage fee revenues, partially offset by lower core
advertising revenue as well as higher programming expenses,
excluding the program impairment charge in the fourth quarter of
2015.
For the full year 2016, Television and Entertainment operating
profit was $324.8 million as compared
to an operating loss of $175.1
million for the full year 2015. Television and Entertainment
operating profit before impairments of goodwill and other
intangible assets was $328.2 million
and $209.9 million in 2016 and 2015,
respectively. Television and Entertainment Adjusted EBITDA was
$604.0 million as compared to
$513.2 million for the full year
2015, an increase of $90.8 million,
or 18%.
Corporate and Other
Real estate revenues for the fourth quarter of 2016 were
$3.9 million compared to $12.5 million for the fourth quarter of 2015,
representing a decrease of $8.6
million, or 69%, primarily due to loss of revenue from real
estate properties sold during 2016. Real estate revenues for the
full year 2016 were $38.0 million,
compared to $49.4 million for the
full year 2015, representing a decrease of $11.4 million, or 23%.
Corporate and Other operating loss for the fourth quarter of
2016 was $23.7 million compared to
$31.7 million in the fourth quarter
of 2015. The reduction of the loss was primarily attributable
to lower corporate and real estate operating expenses,
partially offset by a decline in real estate revenues.
Corporate and Other Adjusted EBITDA for the fourth quarter of 2016
represented a loss of $18.0 million
compared to a loss of $19.6 million
in the fourth quarter of 2015. For the full year 2016, Corporate
and Other operating profit was $108.7
million compared to a loss of $94.2
million for the full year 2015, primarily attributable to
net pretax gains on real estate sales of $213.1 million, as discussed above. Corporate and
Other Adjusted EBITDA represented a loss of $72.9 million for the full year 2016 compared to
a loss of $73.5 million for the full
year 2015.
RETURN OF CAPITAL TO SHAREHOLDERS
Stock Repurchase Program
On February 24, 2016, the Board of
Directors (the "Board") authorized the current stock repurchase
program under which the Company may repurchase up to $400 million of its outstanding Class A common
stock. During the fourth quarter of 2016, the Company repurchased
2,253,370 shares of the Company's Class A common stock in open
market transactions for an aggregate purchase price of
approximately $75 million. Since the
announcement of the new stock repurchase program on February 24, 2016 through March 1, 2017, the
Company has repurchased an aggregate of 6,432,455 shares of the
Company's Class A common stock in open market transactions at an
aggregate purchase price of approximately $232 million. As of March 1, 2017, the
remaining authorized amount under the current program totaled
approximately $168 million.
Special Cash Dividend
On January 2, 2017, the Board authorized and declared a
special cash dividend of $5.77 per
share of common stock, which was paid on February 3, 2017 to
holders of record of common stock and warrants at the close of
business on January 13, 2017. The total aggregate payment on
February 3, 2017 totaled $499
million.
Quarterly Dividend
On February 14, 2017, the Board
declared a quarterly cash dividend on the Company's common stock of
$0.25 per share to be paid on
March 27, 2017 to holders of record
of the Company's common stock and warrants as of March 13, 2017. This is the eighth consecutive
quarterly dividend declared under the Company's dividend program
announced on March 6, 2015. Future
dividends will be subject to the discretion of the Board.
RECENT DEVELOPMENTS
Sale of Digital and Data Business
On December 19, 2016, the Company
entered into an agreement with Nielsen to sell equity interests in
substantially all of the Digital and Data business ("Gracenote
Sale") for $560 million in cash,
subject to certain purchase price adjustments. The Company
completed the sale on January 31,
2017 and received gross proceeds of $581 million.
On February 1, 2017, the Company
used $400 million of proceeds from
the Gracenote Sale to pay down a portion of the Company's term loan
facility.
Real Estate Transactions
In the year ended December 31,
2016, the Company sold several properties for net pretax
proceeds totaling $506 million and
recognized a net pretax gain of $213
million. Real estate sales in the fourth quarter of 2016
totaled $1 million. The Company
defines net proceeds as pretax cash proceeds on the sale of
properties, less associated selling costs.
Strategic Review
In February 2016, the Company
announced that it had retained financial advisors for a strategic
review of the Company's assets. Since then, the Company has closed
$506 million of real estate
transactions and the $560 million
Gracenote Sale (each as described above), and paid a $499 million special cash dividend and utilized
$232 million of the current
$400 million share repurchase
authorization. The Company also continues to take a balanced
approach to its liquidity in the context of its capital structure,
and used $400 million from the
proceeds of the Gracenote Sale to pay down outstanding borrowings
under the Company's term loan facility. In addition, the Company
continues to consider a variety of other actions, including but not
limited to returns of capital to shareholders and debt
repayment.
On September 7, 2016, TEGNA
announced that it was evaluating strategic alternatives for
CareerBuilder, in which it holds a 53% ownership interest,
including a possible sale. There can be no assurance of the terms,
timing or structure of any transaction involving such business or
whether any transaction will take place at all. Any such
transaction is subject to risks and uncertainty.
Spectrum Auction
On February 8, 2017, the
Company announced that it expects to receive
approximately $190 million in pretax
proceeds resulting from the FCC's recently completed reverse
auction for broadcast spectrum. The anticipated proceeds reflect
the FCC's acceptance of one or more bids placed by the
Company or channel share partners of television stations owned
or operated by the Company during the auction to modify and/or
surrender spectrum used by certain of such bidder's television
stations. The results of the auction are not expected to produce
any material change in the Company's operations or
results. The Company expects to receive the proceeds in
the second half of 2017.
FINANCIAL GUIDANCE
The following represents the Company's financial guidance for
the full year 2017. The actual results for the full year may
differ materially from the below guidance, which is based
on the Company's assets and operations as they exist
today. The following statements, by their nature, are
forward-looking and are subject to substantial risks and
uncertainties, which are discussed below under "Cautionary
Statement Regarding Forward-Looking Statements."
For full year 2017, the Company expects:
Consolidated revenues to be between $1.865 billion and $1.916 billion
Consolidated Adjusted EBITDA to be between $440 million and $480 million
Television and Entertainment segment revenues to be between
$1.855 billion and $1.905 billion
Television and Entertainment segment Adjusted EBITDA to be between
$523 million and $559 million
Real estate revenues to be between $10
million and $11 million
Real estate expenses to be between $5
million and $6 million
Corporate expenses to be between $84 million
and $88 million
Corporate and Other Adjusted EBITDA to be between $(79) million and $(83) million
Capital expenditures to be between $75
million and $95 million
Cash taxes to be between $85 million and
$100 million (excludes cash tax payments for
transactions such as real estate sales, the Gracenote Sale and
anticipated spectrum proceeds)
Cash interest to be approximately $152
million
See "Non-GAAP Financial Measures" below for more information
regarding certain financial measures the Company presents
that are not recognized under accounting principles generally
accepted in the U.S. ("GAAP").
CONFERENCE CALL INFORMATION
The Company will host a conference call today at 8:30 a.m. ET to discuss its fourth quarter and
full year results and a presentation deck will be posted
to the Company's 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
(888) 317-6003 (domestic) or (412) 317-6061 (international). The
confirmation code is 0671867.
An audio webcast replay will be available in the Events and
Presentations section of the Tribune Media website approximately
one hour after completion of the call. A replay of the call will
also be available until March 8, 2017
at (877) 344-7529 (domestic) or (412) 317-0088 (international). The
confirmation code for the replay is 10101170.
Tribune Media Company (NYSE: TRCO) is home to a diverse
portfolio of television and digital properties driven by quality
news, entertainment and sports programming. Tribune Media is comprised of Tribune Broadcasting's
42 owned or operated local television stations reaching
approximately 50 million households, national entertainment cable
network WGN America, whose reach is approaching 80 million
households, Tribune Studios, and a variety of digital applications
and websites commanding 60 million monthly unique visitors online.
Tribune Media also includes
Chicago's WGN-AM and 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 a variety of investments,
including a 32% interest in CareerBuilder, LLC and a 31% interest
in Television Food Network, G.P., which operates Food Network and
Cooking Channel. For more information please visit
www.tribunemedia.com.
Non-GAAP Financial Measures
This press release includes a discussion of Adjusted EBITDA,
Adjusted EBITDA Margin and Adjusted EPS for the Company and
Adjusted EBITDA and Adjusted EBITDA Margin for our operating
segments (Television and Entertainment and Corporate and Other) and
presents Broadcast Cash Flow for our Television and Entertainment
segment. Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin and
Broadcast Cash Flow are financial measures that are not recognized
under accounting principles generally accepted in the U.S.
("GAAP"). With respect to our expectations under "Financial
Guidance" above, no reconciliation of the forecasted range for
Adjusted EBITDA on a consolidated or segment basis for fiscal 2017
is included in this release because we are unable to quantify
certain amounts that would be required to be included in the GAAP
measure without unreasonable efforts and we believe such
reconciliations would imply a degree of precision that would be
confusing or misleading to investors. In particular, reconciliation
of guidance for Consolidated Adjusted EBITDA or Adjusted EBITDA on
a segment basis to the closest corresponding GAAP measure is not
available without unreasonable efforts on a forward-looking basis
due to the high variability, complexity and low visibility with
respect to the charges excluded from these non-GAAP measures such
as the measures and effects of stock-based compensation expense
specific to equity compensation awards that are directly impacted
by unpredictable fluctuations in our stock price and other
non-recurring or unusual items such as impairment charges,
transaction-related costs and gains or losses on sales of
assets. We expect the variability of the above items to have
a significant, and potentially unpredictable, impact on our future
GAAP financial results. Adjusted EPS is calculated based on net
income (loss) before investment transactions, loss on
extinguishment of debt, certain special items (including
severance), certain income tax charges, non-operating items, gain
(loss) on sales of real estate, impairments and other non-cash
charges and reorganization items per common share. Adjusted EBITDA
for the Company is defined as net income (loss) before income
taxes, investment transactions, loss on extinguishment of debt,
interest and dividend income, interest expense, pension expense
(credit), equity income and losses, depreciation and amortization,
stock-based compensation, certain special items (including
severance), non-operating items, gain (loss) on sales of real
estate, goodwill and other intangible asset and program impairments
and other non-cash charges and reorganization items. Adjusted
EBITDA for the Company's operating segments is calculated as
segment operating profit plus depreciation, amortization, pension
expense (credit), stock-based compensation, goodwill and other
intangible asset and program impairments and other non-cash
charges, gain (loss) on sales of real estate and certain special
items (including severance). Broadcast Cash Flow for the Television
and Entertainment segment is calculated as Television and
Entertainment Adjusted EBITDA plus broadcast rights amortization
expense less broadcast rights cash payments. We believe that
Adjusted EBITDA, Adjusted EBITDA Margin and Broadcast Cash Flow are
measures commonly used by investors to evaluate our performance
with that of our competitors. We also present Adjusted EBITDA
because we believe investors, analysts and rating agencies consider
it useful in measuring our ability to meet our debt service
obligations. We further believe that the disclosure of Adjusted
EPS, Adjusted EBITDA, Adjusted EBITDA Margin 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 Adjusting EPS, Adjusted EBITDA and
Broadcast Cash Flow, we believe that we create for investors a
greater understanding of, and an enhanced level of transparency
into, the means by which our management operates our company.
Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin and Broadcast
Cash Flow are not measures presented in accordance with GAAP, and
our use of these terms may vary from that of others in our
industry. Adjusted EPS, Adjusted EBITDA and Broadcast Cash Flow
should not be considered as an alternative to net income, operating
profit, revenues, cash provided by operating activities or any
other measures derived in accordance with GAAP as measures of
operating performance or liquidity. The tables at the end of
this press release include reconciliations of consolidated Adjusted
EPS and Adjusted EBITDA and segment Adjusted EBITDA and Broadcast
Cash Flow to the most directly comparable financial measures
calculated and presented in accordance with GAAP.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws. Forward-looking
statements are subject to known and unknown risks and
uncertainties, many of which may be beyond our control.
Forward-looking statements may include, but are not limited to,
statements concerning our financial outlook and guidance, including
our 2017 forecasted revenues, Adjusted EBITDA and other
consolidated and segment financial performance guidance, our real
estate monetization strategy, exploration of strategic and
financial alternatives and other corporate initiatives, 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 that could cause actual
results, developments and business decisions to differ materially
from these forward-looking statements are uncertainties discussed
below and in the "Risk Factors" section of the Company's Annual
Report on Form 10-K filed with the U.S. Securities and Exchange
Commission (the "SEC") on March 1,
2017. "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
projected or historical results or those anticipated or predicted
by these forward-looking statements: changes in advertising demand
and audience shares; competition and other economic conditions
including incremental fragmentation of the media landscape and
competition from other media alternatives; changes in the overall
market for broadcast and cable television advertising, including
through regulatory and judicial rulings; our ability to
protect our intellectual property and other proprietary rights;
availability and cost of quality network, syndicated and sports
programming affecting our television ratings; the loss, cost and /
or modification of our network affiliation agreements; our ability
to renegotiate retransmission consent agreements with multichannel
video programming distributors; our ability to realize the full
value, or successfully complete the planned divestitures
of our real estate assets; the incurrence of additional
tax-related liabilities related to historical income tax returns;
our ability to expand our operations internationally; the timing of
the completion of the auction and related payment of proceeds, the
potential impact of the modifications to and/or surrender of
spectrum on operation of the Company's television stations and the
costs, terms and restrictions associated with the actions necessary
to modify and/or surrender the spectrum; the incurrence of
costs to address contamination issues at sites owned, operated or
used by our businesses; 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 First 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 execute our business strategy, including our continued
exploration of strategic and financial alternatives to enhance
shareholder value; the financial performance of our equity method
investments; the impairment of our existing goodwill and other
intangible assets; compliance with government regulations
applicable to the television and radio broadcasting industry;
changes in accounting standards; the payment of cash
dividends on our common stock; impact of increases in interest
rates on our variable rate indebtedness or refinancings thereof;
impact of foreign currency exchange rate changes; 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
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands of
dollars, except per share data)
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
December 31,
2016
|
|
December 31,
2015
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Television and
Entertainment
|
$
|
525,723
|
|
|
$
|
465,525
|
|
|
|
$
|
1,909,896
|
|
|
$
|
1,752,542
|
|
Other
|
3,901
|
|
|
12,484
|
|
|
|
38,034
|
|
|
49,425
|
|
Total operating
revenues
|
529,624
|
|
|
478,009
|
|
|
|
1,947,930
|
|
|
1,801,967
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Programming
|
119,288
|
|
|
188,306
|
|
|
|
515,738
|
|
|
535,799
|
|
Direct operating
expenses
|
97,350
|
|
|
94,757
|
|
|
|
390,595
|
|
|
376,383
|
|
Selling, general and
administrative
|
139,934
|
|
|
147,820
|
|
|
|
592,220
|
|
|
543,065
|
|
Depreciation
|
15,152
|
|
|
17,387
|
|
|
|
58,825
|
|
|
64,554
|
|
Amortization
|
41,661
|
|
|
41,665
|
|
|
|
166,664
|
|
|
166,404
|
|
Impairments of
goodwill and other intangible assets
|
3,400
|
|
|
385,000
|
|
|
|
3,400
|
|
|
385,000
|
|
(Gain) loss on sales
of real estate, net
|
(367)
|
|
|
—
|
|
|
|
(213,086)
|
|
|
97
|
|
Total
operating expenses
|
416,418
|
|
|
874,935
|
|
|
|
1,514,356
|
|
|
2,071,302
|
|
Operating Profit
(Loss)
|
113,206
|
|
|
(396,926)
|
|
|
|
433,574
|
|
|
(269,335)
|
|
Income on equity
investments, net
|
33,861
|
|
|
27,125
|
|
|
|
148,156
|
|
|
146,959
|
|
Interest and dividend
income
|
390
|
|
|
246
|
|
|
|
1,226
|
|
|
720
|
|
Interest
expense
|
(38,211)
|
|
|
(38,473)
|
|
|
|
(152,719)
|
|
|
(148,587)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(37,040)
|
|
Gain on investment
transactions, net
|
—
|
|
|
103
|
|
|
|
—
|
|
|
12,173
|
|
Other non-operating
gain, net
|
4,949
|
|
|
5,623
|
|
|
|
5,427
|
|
|
7,228
|
|
Reorganization items,
net
|
(188)
|
|
|
(105)
|
|
|
|
(1,422)
|
|
|
(1,537)
|
|
Income (Loss) from
Continuing Operations Before Income Taxes
|
114,007
|
|
|
(402,407)
|
|
|
|
434,242
|
|
|
(289,419)
|
|
Income tax expense
(benefit)
|
43,280
|
|
|
(13,829)
|
|
|
|
347,202
|
|
|
25,918
|
|
Income (Loss) from
Continuing Operations
|
70,727
|
|
|
(388,578)
|
|
|
|
87,040
|
|
|
(315,337)
|
|
(Loss) Income from
Discontinued Operations, net of taxes
|
(51,776)
|
|
|
7,650
|
|
|
|
(72,794)
|
|
|
(4,581)
|
|
Net Income
(Loss)
|
$
|
18,951
|
|
|
$
|
(380,928)
|
|
|
|
$
|
14,246
|
|
|
$
|
(319,918)
|
|
Basis Earnings
(Loss) Per Common Share from:
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
|
0.81
|
|
|
$
|
(4.15)
|
|
|
|
$
|
0.96
|
|
|
$
|
(3.33)
|
|
Discontinued
Operations
|
(0.59)
|
|
|
0.08
|
|
|
|
(0.80)
|
|
|
(0.05)
|
|
Net Earnings (Loss)
Per Common Share
|
$
|
0.22
|
|
|
$
|
(4.07)
|
|
|
|
$
|
0.16
|
|
|
$
|
(3.38)
|
|
Diluted Earnings
(Loss) Per Common Share from:
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
|
0.81
|
|
|
$
|
(4.15)
|
|
|
|
$
|
0.96
|
|
|
$
|
(3.33)
|
|
Discontinued
Operations
|
(0.59)
|
|
|
0.08
|
|
|
|
(0.80)
|
|
|
(0.05)
|
|
Net Earnings (Loss)
Per Common Share
|
$
|
0.22
|
|
|
$
|
(4.07)
|
|
|
|
$
|
0.16
|
|
|
$
|
(3.38)
|
|
Regular dividends
declared per common share
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
|
$
|
1.00
|
|
|
$
|
0.75
|
|
Special dividends
declared per common share
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
6.73
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of
dollars, except for share and per share data)
|
|
December 31,
2016
|
|
December 31,
2015
|
Assets
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
577,658
|
|
|
$
|
247,820
|
|
Restricted cash and
cash equivalents
|
17,566
|
|
|
17,595
|
|
Accounts receivable
(net of allowances of $12,504 and $5,543)
|
429,112
|
|
|
416,877
|
|
Broadcast
rights
|
157,817
|
|
|
160,240
|
|
Income taxes
receivable
|
9,056
|
|
|
42,683
|
|
Current assets held
for sale
|
62,605
|
|
|
72,698
|
|
Prepaid
expenses
|
35,862
|
|
|
57,235
|
|
Other
|
6,624
|
|
|
6,797
|
|
Total current
assets
|
1,296,300
|
|
|
1,021,945
|
|
Properties
|
|
|
|
Machinery, equipment
and furniture
|
280,589
|
|
|
250,179
|
|
Buildings and
leasehold improvements
|
154,557
|
|
|
209,608
|
|
|
435,146
|
|
|
459,787
|
|
Accumulated
depreciation
|
(187,148)
|
|
|
(142,677)
|
|
|
247,998
|
|
|
317,110
|
|
Land
|
214,730
|
|
|
268,257
|
|
Construction in
progress
|
61,192
|
|
|
30,203
|
|
Net
properties
|
523,920
|
|
|
615,570
|
|
Other
Assets
|
|
|
|
Broadcast
rights
|
153,457
|
|
|
203,422
|
|
Goodwill
|
3,227,930
|
|
|
3,228,224
|
|
Other intangible
assets, net
|
1,819,134
|
|
|
1,990,002
|
|
Non-current assets
held for sale
|
625,329
|
|
|
838,864
|
|
Investments
|
1,674,883
|
|
|
1,692,700
|
|
Other
|
80,098
|
|
|
118,136
|
|
Total other
assets
|
7,580,831
|
|
|
8,071,348
|
|
Total
Assets
|
$
|
9,401,051
|
|
|
$
|
9,708,863
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In thousands of dollars,
except for share and per share data)
|
|
December 31,
2016
|
|
December 31,
2015
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$
|
60,553
|
|
|
$
|
53,872
|
|
Debt due within one
year (net of unamortized discounts and debt issuance costs of
$7,917 and $7,979)
|
19,924
|
|
|
19,862
|
|
Income taxes
payable
|
21,166
|
|
|
2,373
|
|
Employee compensation
and benefits
|
77,123
|
|
|
73,003
|
|
Contracts payable for
broadcast rights
|
241,255
|
|
|
236,676
|
|
Deferred
revenue
|
13,690
|
|
|
14,749
|
|
Interest
payable
|
30,305
|
|
|
33,828
|
|
Current
liabilities held for sale
|
54,284
|
|
|
59,962
|
|
Other
|
32,553
|
|
|
46,475
|
|
Total current
liabilities
|
550,853
|
|
|
540,800
|
|
Non-Current
Liabilities
|
|
|
|
Long-term debt (net of
unamortized discounts and debt issuance costs of $38,830 and
$48,809)
|
3,391,627
|
|
|
3,409,489
|
|
Deferred income
taxes
|
984,248
|
|
|
890,706
|
|
Contracts payable for
broadcast rights
|
314,840
|
|
|
385,107
|
|
Contract intangible
liability, net
|
12
|
|
|
13,772
|
|
Pension obligations,
net
|
444,401
|
|
|
456,073
|
|
Postretirement
medical, life and other benefits
|
11,385
|
|
|
13,250
|
|
Other
obligations
|
62,688
|
|
|
68,321
|
|
Non-current
liabilities held for sale
|
95,314
|
|
|
99,623
|
|
Total non-current
liabilities
|
5,304,515
|
|
|
5,336,341
|
|
Total
Liabilities
|
5,855,368
|
|
|
5,877,141
|
|
|
|
|
|
Commitments and
Contingent Liabilities
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Preferred stock
($0.001 par value per share)
|
|
|
|
Authorized: 40,000,000 shares; No shares issued
and outstanding at December 31, 2016
|
|
|
|
|
|
and at December 31,
2015
|
—
|
|
|
—
|
|
Class A Common Stock
($0.001 par value per share)
|
|
|
|
Authorized: 1,000,000,000 shares; 100,416,516
shares issued and 86,314,063 shares
|
|
|
|
|
|
outstanding at
December 31, 2016; 100,015,546 shares issued and 92,345,330
shares
|
|
|
|
|
|
outstanding at
December 31, 2015
|
100
|
|
|
100
|
|
Class B Common Stock
($0.001 par value per share)
|
|
|
|
Authorized: 1,000,000,000 shares; Issued and
outstanding: 5,605 shares at December 31, 2016 and at December 31,
2015
|
—
|
|
|
—
|
|
Treasury stock, at
cost: 14,102,453 shares at December 31, 2016 and 7,670,216 shares
at December 31, 2015
|
(632,207)
|
|
|
(400,153)
|
|
Additional
paid-in-capital
|
4,561,760
|
|
|
4,619,618
|
|
Retained
deficit
|
(308,105)
|
|
|
(322,351)
|
|
Accumulated other
comprehensive loss
|
(81,782)
|
|
|
(71,016)
|
|
Total Tribune Media
Company shareholders' equity
|
3,539,766
|
|
|
3,826,198
|
|
Noncontrolling
interests
|
5,917
|
|
|
5,524
|
|
Total shareholders'
equity
|
3,545,683
|
|
|
3,831,722
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
9,401,051
|
|
|
$
|
9,708,863
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands of dollars)
|
|
Year Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$
|
14,246
|
|
|
$
|
(319,918)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Stock-based
compensation
|
37,189
|
|
|
32,493
|
|
Pension credit, net of
contributions
|
(24,110)
|
|
|
(29,417)
|
|
Depreciation
|
72,409
|
|
|
74,289
|
|
Amortization of
contract intangible assets and liabilities
|
(10,566)
|
|
|
(14,980)
|
|
Amortization of other
intangible assets
|
196,663
|
|
|
195,230
|
|
Impairments of
goodwill and other intangible assets
|
3,400
|
|
|
385,000
|
|
Income on equity
investments, net
|
(148,156)
|
|
|
(146,959)
|
|
Distributions from
equity investments
|
170,527
|
|
|
169,879
|
|
Non-cash loss on
extinguishment of debt
|
—
|
|
|
33,480
|
|
Original issue
discount payments
|
—
|
|
|
(6,158)
|
|
Amortization of debt
issuance costs and original issue discount
|
11,172
|
|
|
12,258
|
|
Gain on investment
transactions, net
|
—
|
|
|
(12,173)
|
|
Impairments of real
estate
|
15,102
|
|
|
6,650
|
|
(Gain) loss on sales
of real estate
|
(213,086)
|
|
|
97
|
|
Other non-operating
gain
|
(5,427)
|
|
|
(6,183)
|
|
Change in excess tax
benefits from stock-based awards
|
—
|
|
|
868
|
|
Changes in working
capital items, excluding effects from acquisitions:
|
|
|
|
Accounts receivable,
net
|
(998)
|
|
|
(23,444)
|
|
Prepaid expenses and
other current assets
|
18,171
|
|
|
(36,997)
|
|
Accounts
payable
|
6,589
|
|
|
(15,302)
|
|
Employee compensation
and benefits, accrued expenses and other current
liabilities
|
(7,515)
|
|
|
38,062
|
|
Deferred
revenue
|
(2,843)
|
|
|
9,541
|
|
Income
taxes
|
51,296
|
|
|
(272,102)
|
|
Change in broadcast
rights, net of liabilities
|
(15,427)
|
|
|
100,116
|
|
Deferred income
taxes
|
95,035
|
|
|
(140,075)
|
|
Change in non-current
obligations for uncertain tax positions
|
(11,276)
|
|
|
(931)
|
|
Other, net
|
31,768
|
|
|
(7,380)
|
|
Net cash provided by
operating activities
|
284,163
|
|
|
25,944
|
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(99,659)
|
|
|
(89,084)
|
|
Investments
|
(5,993)
|
|
|
(23,042)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(74,959)
|
|
Proceeds from sales
of real estate and other assets
|
507,692
|
|
|
4,930
|
|
Transfers from
restricted cash
|
297
|
|
|
1,112
|
|
Distributions from
equity investments
|
—
|
|
|
10,328
|
|
Proceeds from sales
of investments
|
—
|
|
|
44,982
|
|
Net cash provided by
(used in) investing activities
|
402,337
|
|
|
(125,733)
|
|
|
|
|
|
TRIBUNE MEDIA
COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands of dollars)
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Financing
Activities
|
|
|
|
Long-term
borrowings
|
—
|
|
|
1,100,000
|
|
Repayments of
long-term debt
|
(27,842)
|
|
|
(1,114,262)
|
|
Long-term debt
issuance costs
|
(736)
|
|
|
(20,202)
|
|
Payments of
dividends
|
(90,296)
|
|
|
(719,919)
|
|
Settlements of
contingent consideration, net
|
(3,636)
|
|
|
1,174
|
|
Common stock
repurchases
|
(232,065)
|
|
|
(339,942)
|
|
Change in excess tax
benefits from stock-based awards
|
—
|
|
|
(868)
|
|
Tax withholdings
related to net share settlements of share-based awards
|
(4,553)
|
|
|
(4,421)
|
|
Proceeds from stock
option exercises
|
—
|
|
|
166
|
|
Contributions from
noncontrolling interest
|
393
|
|
|
5,524
|
|
Net cash used in
financing activities
|
(358,735)
|
|
|
(1,092,750)
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
327,765
|
|
|
(1,192,539)
|
|
Cash and cash
equivalents, beginning of year
|
262,644
|
|
|
1,455,183
|
|
Cash and cash
equivalents, end of year
|
$
|
590,409
|
|
|
$
|
262,644
|
|
|
|
|
|
Cash and Cash
Equivalents are Comprised of:
|
|
|
|
Cash and cash
equivalents
|
$
|
577,658
|
|
|
$
|
247,820
|
|
Cash and cash
equivalents classified as assets held for sale
|
12,751
|
|
|
14,824
|
|
Cash and cash
equivalents, end of year
|
$
|
590,409
|
|
|
$
|
262,644
|
|
|
|
|
|
Supplemental
Schedule of Cash Flow Information
|
|
|
|
Cash paid during the
period for:
|
|
|
|
Interest
|
$
|
160,200
|
|
|
$
|
130,311
|
|
Income
taxes, net of refunds
|
$
|
265,886
|
|
|
$
|
434,720
|
|
TRIBUNE MEDIA
COMPANY - CONSOLIDATED
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED EBITDA
|
(in thousands of
dollars)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
December 31,
2016
|
|
December 31,
2015
|
Revenue
|
$
|
529,624
|
|
|
$
|
478,009
|
|
|
|
$
|
1,947,930
|
|
|
$
|
1,801,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
18,951
|
|
|
$
|
(380,928)
|
|
|
|
$
|
14,246
|
|
|
$
|
(319,918)
|
|
(Loss) income from
discontinued operations, net of taxes
|
(51,776)
|
|
|
7,650
|
|
|
|
(72,794)
|
|
|
(4,581)
|
|
Income (Loss) from
Continuing Operations
|
$
|
70,727
|
|
|
$
|
(388,578)
|
|
|
|
$
|
87,040
|
|
|
$
|
(315,337)
|
|
Income tax expense
(benefit)
|
43,280
|
|
|
(13,829)
|
|
|
|
347,202
|
|
|
25,918
|
|
Reorganization items,
net
|
188
|
|
|
105
|
|
|
|
1,422
|
|
|
1,537
|
|
Other non-operating
gain, net
|
(4,949)
|
|
|
(5,623)
|
|
|
|
(5,427)
|
|
|
(7,228)
|
|
Gain on investment
transactions, net
|
—
|
|
|
(103)
|
|
|
|
—
|
|
|
(12,173)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
|
—
|
|
|
37,040
|
|
Interest
expense
|
38,211
|
|
|
38,473
|
|
|
|
152,719
|
|
|
148,587
|
|
Interest and dividend
income
|
(390)
|
|
|
(246)
|
|
|
|
(1,226)
|
|
|
(720)
|
|
Income on equity
investments, net
|
(33,861)
|
|
|
(27,125)
|
|
|
|
(148,156)
|
|
|
(146,959)
|
|
Operating Profit
(Loss)
|
$
|
113,206
|
|
|
$
|
(396,926)
|
|
|
|
$
|
433,574
|
|
|
$
|
(269,335)
|
|
Depreciation
|
15,152
|
|
|
17,387
|
|
|
|
58,825
|
|
|
64,554
|
|
Amortization
|
41,661
|
|
|
41,665
|
|
|
|
166,664
|
|
|
166,404
|
|
Stock-based
compensation
|
8,451
|
|
|
7,776
|
|
|
|
32,993
|
|
|
30,254
|
|
Impairments of
goodwill and other intangibles assets
|
3,400
|
|
|
385,000
|
|
|
|
3,400
|
|
|
385,000
|
|
Impairments of
broadcast rights
|
—
|
|
|
73,830
|
|
|
|
36,782
|
|
|
73,830
|
|
Severance and related
charges
|
2,384
|
|
|
2,008
|
|
|
|
10,406
|
|
|
5,276
|
|
Transaction-related
costs
|
3,852
|
|
|
1,846
|
|
|
|
10,889
|
|
|
6,111
|
|
(Gain) loss on sales
of real estate, net
|
(367)
|
|
|
—
|
|
|
|
(213,086)
|
|
|
97
|
|
Real estate
impairments and other
|
(173)
|
|
|
6,644
|
|
|
|
14,746
|
|
|
6,677
|
|
Pension
credit
|
(6,027)
|
|
|
(7,291)
|
|
|
|
(24,110)
|
|
|
(29,166)
|
|
Adjusted
EBITDA
|
$
|
181,539
|
|
|
$
|
131,939
|
|
|
|
$
|
531,083
|
|
|
$
|
439,702
|
|
TRIBUNE MEDIA
COMPANY - TELEVISION AND ENTERTAINMENT
|
RECONCILIATION OF
OPERATING PROFIT (LOSS) TO ADJUSTED EBITDA AND BROADCAST CASH
FLOW
|
(in thousands of
dollars)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
December 31,
2016
|
|
December 31,
2015
|
Advertising
|
$
|
384,580
|
|
|
$
|
348,056
|
|
|
|
$
|
1,374,571
|
|
|
$
|
1,303,220
|
|
Retransmission
revenue
|
89,188
|
|
|
74,324
|
|
|
|
334,724
|
|
|
283,140
|
|
Carriage
fees
|
30,650
|
|
|
22,676
|
|
|
|
121,044
|
|
|
85,344
|
|
Barter/trade
|
9,918
|
|
|
9,443
|
|
|
|
39,025
|
|
|
38,243
|
|
Copyright
royalties
|
2,835
|
|
|
4,049
|
|
|
|
7,959
|
|
|
15,367
|
|
Other
|
8,552
|
|
|
6,977
|
|
|
|
32,573
|
|
|
27,228
|
|
Total Revenues
(1)
|
$
|
525,723
|
|
|
$
|
465,525
|
|
|
|
$
|
1,909,896
|
|
|
$
|
1,752,542
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss) (1)
|
$
|
136,862
|
|
|
$
|
(365,244)
|
|
|
|
$
|
324,837
|
|
|
$
|
(175,140)
|
|
Depreciation
|
11,691
|
|
|
12,795
|
|
|
|
45,083
|
|
|
48,437
|
|
Amortization
|
41,661
|
|
|
41,665
|
|
|
|
166,664
|
|
|
166,404
|
|
Stock-based
compensation
|
3,756
|
|
|
3,225
|
|
|
|
14,956
|
|
|
12,377
|
|
Impairments of
goodwill and other intangibles assets
|
3,400
|
|
|
385,000
|
|
|
|
3,400
|
|
|
385,000
|
|
Impairments of
broadcast rights
|
—
|
|
|
73,830
|
|
|
|
36,782
|
|
|
73,830
|
|
Severance and related
charges
|
2,363
|
|
|
311
|
|
|
|
9,228
|
|
|
2,317
|
|
Gain on sale of real
estate
|
(3)
|
|
|
—
|
|
|
|
(3)
|
|
|
—
|
|
Real estate
impairments and other
|
(196)
|
|
|
—
|
|
|
|
3,061
|
|
|
13
|
|
Adjusted EBITDA
(1)
|
$
|
199,534
|
|
|
$
|
151,582
|
|
|
|
$
|
604,008
|
|
|
$
|
513,238
|
|
Broadcast rights -
Amortization
|
102,127
|
|
|
100,339
|
|
|
|
412,494
|
|
|
377,185
|
|
Broadcast rights -
Cash Payments
|
(94,529)
|
|
|
(79,956)
|
|
|
|
(458,978)
|
|
|
(390,199)
|
|
Broadcast Cash
Flow
|
$
|
207,132
|
|
|
$
|
171,965
|
|
|
|
$
|
557,524
|
|
|
$
|
500,224
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Beginning in the
fourth quarter of 2016, the Company moved its Covers Media Group
from the Digital and Data reportable segment to the Television and
Entertainment reportable segment. Certain previously reported
amounts have been reclassified to conform to the current
presentation; the impact of this reclassification was
immaterial.
|
TRIBUNE MEDIA
COMPANY - CORPORATE AND OTHER
|
RECONCILIATION OF
OPERATING (LOSS) PROFIT TO ADJUSTED EBITDA
|
(in thousands of
dollars)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
December 31,
2016
|
|
December 31,
2015
|
Total
Revenues
|
$
|
3,901
|
|
|
$
|
12,484
|
|
|
|
$
|
38,034
|
|
|
$
|
49,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Profit (1)
|
$
|
(23,656)
|
|
|
$
|
(31,682)
|
|
|
|
$
|
108,737
|
|
|
$
|
(94,195)
|
|
Depreciation
|
3,461
|
|
|
4,592
|
|
|
|
13,742
|
|
|
16,117
|
|
Stock-based
compensation
|
4,695
|
|
|
4,551
|
|
|
|
18,037
|
|
|
17,877
|
|
Severance and related
charges
|
21
|
|
|
1,697
|
|
|
|
1,178
|
|
|
2,959
|
|
Transaction-related
costs
|
3,852
|
|
|
1,846
|
|
|
|
10,889
|
|
|
6,111
|
|
(Gain) loss on sales
of real estate, net
|
(364)
|
|
|
—
|
|
|
|
(213,083)
|
|
|
97
|
|
Real estate
impairments and other
|
23
|
|
|
6,644
|
|
|
|
11,685
|
|
|
6,664
|
|
Pension
credit
|
(6,027)
|
|
|
(7,291)
|
|
|
|
(24,110)
|
|
|
(29,166)
|
|
Adjusted EBITDA
(1)
|
$
|
(17,995)
|
|
|
$
|
(19,643)
|
|
|
|
$
|
(72,925)
|
|
|
$
|
(73,536)
|
|
|
|
(1)
|
Interest expense and
transaction-related costs that historically have been recorded in
Corporate and Other but are directly attributable to the businesses
included in the Gracenote Sale have been reclassified to
discontinued operations. As a result, the historical results of
Corporate and Other have been adjusted.
|
TRIBUNE MEDIA
COMPANY - CONSOLIDATED
|
RECONCILIATION OF
DILUTED EPS TO ADJUSTED EPS
|
(in thousands of
dollars, except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
|
December 31,
2015
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
$
|
(4.07)
|
|
Loss (Income) from
discontinued operations
|
|
|
|
|
0.59
|
|
|
|
|
|
|
|
(0.08)
|
|
Newsday income tax
charges
|
$
|
—
|
|
|
$
|
648
|
|
|
0.01
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
Reorganization items,
net
|
188
|
|
|
188
|
|
|
0.00
|
|
|
|
105
|
|
|
109
|
|
|
0.00
|
|
Other non-operating
gain, net
|
(4,949)
|
|
|
(3,009)
|
|
|
(0.03)
|
|
|
|
(5,623)
|
|
|
(3,419)
|
|
|
(0.04)
|
|
Gain on investment
transaction
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(103)
|
|
|
(312)
|
|
|
(0.00)
|
|
Equity income -
share of CareerBuilder goodwill impairment charge
|
—
|
|
|
—
|
|
|
—
|
|
|
|
16,054
|
|
|
9,761
|
|
|
0.10
|
|
Impairments of
goodwill and other intangible assets
|
3,400
|
|
|
2,067
|
|
|
0.02
|
|
|
|
385,000
|
|
|
383,432
|
|
|
4.10
|
|
Impairment of
broadcast rights
|
—
|
|
|
—
|
|
|
—
|
|
|
|
73,830
|
|
|
44,889
|
|
|
0.48
|
|
Severance and related
charges
|
2,384
|
|
|
1,450
|
|
|
0.02
|
|
|
|
2,008
|
|
|
1,221
|
|
|
0.01
|
|
Transaction-related
costs
|
3,852
|
|
|
2,394
|
|
|
0.03
|
|
|
|
1,846
|
|
|
1,071
|
|
|
0.01
|
|
Gain on sales of real
estate, net
|
(367)
|
|
|
(223)
|
|
|
(0.00)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Real estate
impairments and other
|
(173)
|
|
|
(106)
|
|
|
(0.00)
|
|
|
|
6,644
|
|
|
4,041
|
|
|
0.04
|
|
Adjusted EPS
(1)
|
|
|
|
|
$
|
0.85
|
|
|
|
|
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
December 31,
2016
|
|
|
December 31,
2015
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
Pre-Tax
|
|
After-Tax
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
$
|
(3.38)
|
|
Loss from
discontinued operations
|
|
|
|
|
0.80
|
|
|
|
|
|
|
|
0.05
|
|
Newsday income tax
charges
|
$
|
—
|
|
|
$
|
191,008
|
|
|
2.10
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
Reorganization items,
net
|
1,422
|
|
|
1,422
|
|
|
0.02
|
|
|
|
1,537
|
|
|
1,455
|
|
|
0.02
|
|
Other non-operating
gain, net
|
(5,427)
|
|
|
(3,299)
|
|
|
(0.04)
|
|
|
|
(7,228)
|
|
|
(4,394)
|
|
|
(0.05)
|
|
Gain on investment
transactions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(12,173)
|
|
|
(7,655)
|
|
|
(0.08)
|
|
Equity income
- share of CareerBuilder goodwill impairment
charge
|
—
|
|
|
—
|
|
|
—
|
|
|
|
16,054
|
|
|
9,761
|
|
|
0.10
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
|
37,040
|
|
|
22,520
|
|
|
0.24
|
|
Impairments of
goodwill and other intangible assets
|
3,400
|
|
|
2,067
|
|
|
0.02
|
|
|
|
385,000
|
|
|
383,432
|
|
|
4.05
|
|
Impairments of
broadcast rights
|
36,782
|
|
|
22,363
|
|
|
0.25
|
|
|
|
73,830
|
|
|
44,889
|
|
|
0.47
|
|
Severance and related
charges
|
10,406
|
|
|
6,327
|
|
|
0.07
|
|
|
|
5,276
|
|
|
3,208
|
|
|
0.03
|
|
Transaction-related
costs
|
10,889
|
|
|
6,723
|
|
|
0.07
|
|
|
|
6,111
|
|
|
3,877
|
|
|
0.04
|
|
(Gain) loss on sales
of real estate, net
|
(213,086)
|
|
|
(129,556)
|
|
|
(1.43)
|
|
|
|
97
|
|
|
58
|
|
|
0.00
|
|
Real estate
impairments and other
|
14,746
|
|
|
8,962
|
|
|
0.10
|
|
|
|
6,677
|
|
|
4,061
|
|
|
0.04
|
|
Adjusted EPS
(1)
|
|
|
|
|
$
|
2.13
|
|
|
|
|
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted
EPS totals may not foot due to rounding.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tribune-media-company-reports-fourth-quarter-and-full-year-2016-results-300415645.html
SOURCE Tribune Media Company