By: Press Release | The Tribune Company
On August 29, 2013, Tribune Company (the “Company”) released its consolidated financial statements for the second quarter ended June 30, 2013. The full set of information is posted on the Company’s website, www.tribune.com, along with management’s discussion and analysis of its financial condition and results of operations.
Summarizing the Company’s second quarter 2013 results compared to second quarter 2012:
Consolidated operating revenues of $730 million declined 10%, or $86 million.
Broadcasting revenues of $260 million declined $66 million, primarily as a result of a decrease of $41 million in copyright royalty revenues due to one – time royalties in 2012. Excluding these additional copyright royalties, Broadcasting revenues declined $25 million, or 9%, in the second quarter of 2013. Broadcasting revenues in the second quarter of 2013 were also negatively impacted by a change in the estimated value of barter programming and lower advertising revenue of $17 million, primarily at WPIX – TV in New York and WGN – TV in Chicago. WPIX – TV performance continues to be impacted by lower ratings since not being broadcast in certain cable homes for a three month period last year. Lastly, WGN – TV performance has been impacted by lower sports revenue.
Publishing revenues of $470 million decreased 4%, or $19 million, primarily as a result of a $19 million reduction in Run – of – Press (“ROP”) print newspaper advertising (advertisements that appear in printed sections of the newspaper). Total non – ROP revenue of $343 million was flat versus last year.
Consolidated operating expenses of $641 million declined $50 million, or 7%, primarily as a result of the non – cash impact of the adoption of fresh – start reporting as well as overall cost reductions. Fresh – start reporting had included the following impacts to operating expenses: o Non – cash pension expense declined $34 million to a benefit of $9 million in the second quarter of 2013 from a charge of $25 million in 2012.
Amortization expense increased $25 million to $30 million in the second quarter of 2013 from $5 million in 2012.
Depreciation expense declined by $18 million to $19 million in the second quarter of 2013 from $37 million in 2012.
Consolidated operating profit was $90 million in the second quarter of 2013 compared to $125 million in the second quarter of 2012 primarily as a result of the decline in revenues, partially offset by lower expenses as discussed above.
Consolidated EBITDA 1 was $139 million in the second quarter of 2013 compared to $167 million in the second quarter of 2012. EBITDA is defined as operating profit before depreciation and amortization expense and does not include income from equity investments, net.
Broadcasting EBITDA was $84 million in the second quarter of 2013, compared to $136 million in the second quarter of 2012. However, excluding the $41 million of additional copyright royalties in the second quarter of 2012, Broadcasting EBITDA declined by $11 million. o Publishing EBITDA was $75 million in the second quarter of 2013, compared to $45 2 million in the second quarter of 2012. Publishing EBITDA benefitted from a $27 million reduction in non – cash pension expense.
Cash distributions from equity investments were $124 million in the first half of 2013 compared to $84 million in the first half of 2012. These distributions are excluded in the calculation of operating profit and EBITDA.
Cash and cash equivalents increased by $200 million from the December 31, 2012 ending balance to $631 million at June 30, 2013. “While our second quarter financial results reflect many of the same challenges faced by the other companies in our sector, we have made substantial progress strategically repositioning Tribune for long – term growth.” said Peter Liguori, Tribune Company President and Chief Executive Officer.
“We have stabilized our publishing business and remain focused on the advantages of scale which will be generated by our pending acquisition of Local TV Holdings. Importantly, we continue to work on developing compelling original programming content, improving the capabilities of our digital assets, and increasing the profitability and cash flows of our equity investments and real estate portfolio.”