Tribune Reports 2008 Second Quarter Results

CHICAGO, August 13, 2008 -- Tribune Company today reported a second quarter 2008 loss from continuing operations of $3.8 billion compared with income from continuing operations of $35 million in the second quarter of 2007. The 2008 loss from continuing operations was due to after-tax non-cash charges of $3.8 billion to write down the Company’s publishing goodwill and newspaper masthead intangible assets, nearly all of which resulted from the Company’s Times Mirror acquisition in 2000.

Tribune also reported a loss from discontinued operations of $705 million in the second quarter of 2008 compared with income from discontinued operations of $1 million in the second quarter of 2007. The 2008 loss from discontinued operations was primarily related to the disposition of a controlling interest in the Company’s Newsday operations.

Operating cash flow from continuing operations decreased 2 percent to $221 million in the second quarter of 2008 from $226 million in the second quarter of 2007 and included the following items:

• A charge of $15 million for severance and special termination benefits in the 2008 quarter, compared with a charge for severance of $27 million in the 2007 quarter.
• A charge of $5 million for stock-based compensation related to the Company’s new management equity incentive plan in the 2008 quarter, compared to a charge of $8 million for stock-based compensation expense in the 2007 quarter.
• A gain of $23 million in the 2008 quarter related to the sale of real estate.
• A charge of $24 million in the 2007 quarter for the write-off of Los Angeles Times plant equipment related to the previously closed San Fernando Valley facility.

"Our publishing results are, for the most part, in line with industry trends, which remain consistent with what we reported in the first quarter," commented Sam Zell, chairman and CEO of Tribune Company. "Most importantly we have repaid an additional $807 million of borrowings under the Tranche X Facility from the net proceeds of our asset-backed commercial paper program and from the Newsday transaction. These payments satisfy the December 2008 portion of the Tranche X Facility, and leave us with a remaining principal balance of $593 million due in June 2009."

"Since the beginning of the year, we have launched dozens of programs and products that have the potential to make a meaningful impact on our future, and we have made significant progress in aligning our expenses with the realities of an industry in recession. We remain optimistic and are confident in the strength of our brands and the talent within our company."

Continue reading Tribune 2nd quarter results here.