Tribune Reports 2008 First Quarter Results
CHICAGO, May 8, 2008 -- Tribune Company today reported first quarter 2008 earnings from continuing operations of $1.82 billion compared with $11 million in the first quarter of 2007. The first quarter 2008 operating results included a favorable non-cash income tax adjustment of $1.86 billion related to the elimination of essentially all of the Company’s net deferred tax liabilities due to the Company’s change in tax status at the beginning of the year to a subchapter S corporation. The Company reported a loss from continuing operations before income taxes of $30 million in the first quarter of 2008 compared with income from continuing operations before income taxes of $31 million in the first quarter of 2007.
First quarter 2008 and 2007 results from continuing operations included the following:
A pretax charge of $63 million for severance and special termination benefits in the 2008 quarter, compared with a pretax charge of $1 million in the 2007 quarter.
A pretax charge of $8 million for stock-based compensation related to the Company’s new management equity incentive plan in the 2008 quarter, compared to $18 million of stock-based compensation expense in the 2007 quarter.
A pretax gain of $83 million in the 2008 quarter related to the sale of the real estate and related assets of the Company’s studio production lot located in Hollywood, California.
An after-tax non-operating gain of $1.93 billion in the 2008 quarter, which includes the income tax adjustment related to the Company’s change in tax status to a subchapter S corporation, compared with an after-tax non-operating loss of $57 million in the 2007 quarter.
“As we stated on our call in April, print ad revenues continue to be challenged by the weak economy’s impact on real estate and classified advertising,” commented Sam Zell, Tribune’s chairman and chief executive officer. “Broadcasting operating results are notably more stable. This business segment is tracking ahead of 2007 and it is outperforming the industry average. We continue to make significant progress on our strategy to transform operations, and to realize the full value of the Company’s unparalleled brands.”
The full report can be accessed here.