Posted on 03/20/2008 12:41:34 PM PDT by abb
In its last quarter as a publicly traded company, Tribune Co. lost $78 million from continuing operations, the now-private Chicago media giant reported Thursday.
For the full year 2007, Tribune was profitable, but its $55 million income from continuing operations was a big decrease from the $661 million it cleared in 2006.
Tribune said it took a pretax non-cash goodwill and masthead impairment charge of $130 million in the last quarter of 2007. The charge was $79 million after taxes, it said.
Tribune also reported increased charges for severance and related charged in the quarter, and a $6 million pre-tax write-down of Tribune Entertainment program assets.
Q4 2007 had one less week than the last quarter of 2006, Tribune noted. Adjusting for that week, operating revenues decreased 7% in the quarter -- and operating cash flow plummeted 41%.
Tribune publishing operating revenues for the adjusted quarter fell 7 percent, while cash flow from newspapers and other print products sunk by 30%.
Publishing results included the impairment charge, and $33 million in expenses related to the going-private transaction.
Publishing ad revenue fell 9% in the adjusted final quarter, with classified revenue down 25%.
Classified was hurt by double-digit decreases in all major categories, including real estate (down 34%); help wanted (down 28%) and automotive (down 13%).
Retail adv revenues was off 10 percent for the quarter primarily due to decreases in the department stores, electronics, hardware/home improvement, amusement, and furniture/home improvement categories, Tribune said.
Preprint revenue were also down for the quarter, by 8%.
National fell by 11%.
Internet advertising revenue, which is included in the print categories, was up just 6% for the quarter.
"Despite the continued difficult operating environment and weakness in print revenue, we see significant opportunity within Tribune Company," Chairman and CEO Sam Zell said in a statement. "In our first 75 days, we've made a series of key leadership changes, have launched a number of programs and projects to drive new revenue, and have initiated a fundamental shift in culture. In addition, we have begun a strategic review of certain Tribune assets to determine whether capital can be more effectively redeployed into our core operations or toward reducing our outstanding leverage."
Tribune disclosed expenses related to the strategic review that led to the going-private transaction completed in December 2007 amounted to $47 million.
The report for the full year noted that it recorded a pre-tax gain of $2.5 million, or $100,000 after taxes, on the sale of its New York edition of the Spanish-language daily Hoy last May.
FreeRepublic’s fault. (-:
ping
Whoa, a 95% decrease! Amazing!
If I were one of the bondholders for all the debt the GraveDancer had to float to make this deal happen, I would be quite nervous about now.
The Chi Trib’s support of Hussein ObamaSamma’s racist and anti America pos minister will not help the TRB’s re belief in 2008.
“For the full year 2007, Tribune was profitable, but its $55 million income from continuing operations was a big decrease from the $661 million it cleared in 2006.”
I have been joking about 2006 and 2007 being the last good years for the dinosaur fishwraps. I might be right on target.
http://www.latimes.com/business/la-fi-tribune21mar21,1,1353277.story
From the Los Angeles Times
Tribune Co. posts quarterly loss
The company, whose holding include The Times and KTLA Channel 5, announces $78.8-million loss in the fourth quarter.
By THOMAS S. MULLIGAN
Los Angeles Times Staff Writer
1:10 PM PDT, March 20, 2008
Tribune Co., parent of the Los Angeles Times and KTLA Channel 5, announced a $78.8-million fourth-quarter loss due to falling advertising revenue, higher interest expenses and a number of one-time charges arising from the $8.2-billion buyout completed in December.
Chicago billionaire Sam Zell, who became Tribune chief executive after leading the buyout along with an employee stock ownership plan, said the company had “begun a strategic review of certain Tribune assets” to help decide whether to sell properties and put the money into core operations or use it to pare down debt. He did not identify any of the assets being reviewed.
snip
The ratings of Tribune’s bonds have been cut and the bonds have declined precipitously in value, reflecting investors’ view that there is a rising risk of default.
“I have been trying to instill a sense of urgency among you all,” Zell said in a “dear partners” e-mail memo to Tribune employees today. He exhorted them to “get together with your colleagues, and fight to improve our performance.”
““I have been trying to instill a sense of urgency among you all,” Zell said in a “dear partners” e-mail memo to Tribune employees today. He exhorted them to “get together with your colleagues, and fight to improve our performance.”
Wow. That will probably really put the fear into the drugged out mediots.
Good luck Zell!
Sam “GraveDancer” Zell is about to be taught an expensive lesson. He has about $500 million worth of skin in this deal, IIRC. He could have saved himself that amount of money and all the heartburn he’s about to go through if he had been on our Dinosaur Media DeathWatch™ ping list for the past two years.
And we wouldn’t have charged him a dime. Oh, well. Easy come, easy go.
How much can Zell get for the Post from Murdoch?
You mean Newsday? If Zell is offered $300 million for it, he best run to the bank and cash the check before Rupert changes his mind.
Recall, a year or so ago, GE's old boss, Jack Welch floated a number to Pinch of about $500 million for the Boston Glob. Pinch was highly insulted, as the Glob is shown on the books for about $1.1 billion. Someone wrote the other day, that Pinch messed up by not taking the offer, since it's worth nowhere near what Welch offered last year.
Now the Glob has a Sunday circulation of 565,000 as of 3/31/07. Newsday is about 100K less. Of course, my number is a SWAG (semi-wild-ass-guess), but I suspect I'm somewhere in the ballpark.
Crank into this the fact that the GraveDancer is now operating in the red, and probably close to cash-flow negative. What that means is what is that Zell will have to conduct what is sometimes called a "fire sale." He has to sell something to pay the note, no matter the price.
I went and bought a giant popcorn popper for to use during all this. It's way yonder better than any movie I've ever seen.
Pravda lost similar amounts in the Soviet Union too.
Pray for W and The Truth
http://www.boston.com/business/articles/2006/11/22/times_co_rejects_local_bid_for_globe/
Times Co. rejects local bid for Globe
Prospective buyers called undeterred
By Steve Bailey, Globe Staff | November 22, 2006
Thanks for the ping.
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