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TRIBUNE REPORTS FOURTH QUARTER NET INCOME UP 29 PERCENT; FULL YEAR DOWN 16 PERCENT INCLUDING NEW ACCOUNTING RULE EFFECTS

 CHICAGO, Feb. 2 /PRNewswire/ -- Tribune Company (NYSE: TRB) today reported net income for the 1992 fourth quarter of $42.0 million, up 29 percent from $32.7 million for the fourth quarter of 1991. The increase was primarily due to improved operating results in the company's media businesses and lower net interest expense. Fourth quarter primary net income per share was up 30 percent to $.57 vs. $.44 in 1991.
 Included in the 1992 fourth quarter results are two offsetting items. In December 1992, the company received Major League Baseball expansion fees totaling $7.7 million after taxes, or $.12 per share. Fourth quarter results also included a charge against earnings of $7.6 million after taxes, or $.12 per share, for the disposition of The Peninsula Times Tribune, an afternoon daily newspaper in Palo Alto, Calif., that is being offered for sale.
 On a full-year basis, net income for 1992 totaled $119.8 million, down 16 percent from $142.0 million reported in 1991. Primary net income per share was down 20 percent to $1.56 from $1.94 in 1991. The 1992 results reflect the cumulative effects of adopting new accounting principles for retiree benefits, income taxes and postemployment benefits, retroactive to the first quarter. The cumulative effects of these new rules reduced full-year net income by $16.8 million and primary net income per share by $.26. Net income before these cumulative effects totaled $136.6 million in 1992, down 4 percent from 1991. Primary net income per share, on the same basis, was $1.82 in 1992, down 6 percent from the $1.94 reported in 1991.
 Consolidated revenues increased in the fourth quarter by 5 percent over 1991 to $553 million. Excluding the baseball expansion fees, consolidated revenues for the fourth quarter increased 2 percent as gains in the media businesses were partially offset by a decline in newsprint operations. For the full year, consolidated revenues increased by 3 percent to $2.1 billion. Operating profit for the fourth quarter was up 17 percent to $78.0 million, but down 7 percent for the year to $268.4 million.
 Newspaper Publishing
 Fourth quarter newspaper publishing operating profit was $57.8 million in 1992 vs. $64.1 million in 1991. The 1992 results included a $15.3 million pretax charge for the disposition of The Peninsula Times Tribune. Excluding this charge, newspaper publishing operating profit increased 14 percent to $73.1 million, due principally to higher revenues.
 Fourth quarter revenues were up 3 percent to $314 million. Advertising revenues grew 1 percent, as a 7 percent increase in classified more than offset an 8 percent decline in the smaller category of general. Retail advertising was up less than 1 percent. Circulation revenues grew 4 percent, primarily reflecting price increases in Chicago and Orlando.
 Broadcasting and Entertainment
 Operating profit for the broadcasting and entertainment group rose 90 percent for the fourth quarter to $37.2 million from $19.5 million. The 1992 operating profit includes nonrecurring baseball expansion fee revenues of $12.3 million. Excluding these fees, operating profit for the group rose 27 percent to $24.9 million, as television, radio and entertainment all showed improved results.
 Revenues grew 15 percent to $177 million in the fourth quarter, due to a 10 percent increase in the television group and the inclusion of the baseball fees. Entertainment revenues excluding the expansion fees were essentially unchanged, while radio was down 2 percent. Excluding results of WPHL-TV in Philadelphia, which was acquired in June 1992, television revenues increased 2 percent.
 Newsprint Operations
 For the fourth quarter, the newsprint group reported an operating loss of $10.7 million, equal to the 1991 fourth-quarter loss. A 6 percent decline in revenues, resulting primarily from lower average selling prices, was offset by lower operating expenses. Average selling prices were up 2 percent from third quarter 1992 levels but were 8 percent below fourth quarter a year ago. Lower operating expenses resulted from previously implemented cost-control programs and a weaker Canadian dollar. Revenues for the group declined 6 percent to $95 million. Newsprint shipments were up 2 percent.
 In December, Tribune's wholly owned newsprint subsidiary, QUNO Corp., filed a preliminary prospectus in Canada for the proposed offering of common shares. Actions resulting from this offering did not impact 1992 results.
 Other Expenses
 Net interest expense for the fourth quarter declined 25 percent to $7.6 million due to lower average debt levels and lower interest rates. The effective tax rate on income before the cumulative effects of accounting changes was 40 percent in the fourth quarter of 1992, compared with 42 percent in 1991.
 Accounting Changes
 Effective as of the beginning of 1992, Tribune adopted three new Financial Accounting Standards Board (FAS) rules, and recorded in earnings a one-time, non-cash cumulative effect for each rule. FAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," resulted in an after-tax charge against earnings of $37.6 million, or $.58 per share. The before-tax charge was $60.4 million. FAS 109, "Accounting for Income Taxes," resulted in a credit to earnings of $26.3 million, or $.40 per share. FAS 112, "Employers' Accounting for Postemployment Benefits," resulted in an after-tax charge against earnings of $5.5 million, or $.08 per share. The before-tax charge was $9.2 million. These cumulative effects resulted in a net $16.8 million after-tax charge, or $.26 per share, against 1992 earnings. Prior years have not been restated for the effect of these new accounting standards. The incremental impact of adopting the new rules in 1992, excluding the cumulative effects, was not material.
 Financial schedules for the fourth quarter and the full year follow.
 Tribune is a leading information and entertainment company. It publishes seven daily newspapers, owns and operates seven television and six radio stations, produces and syndicates information and entertainment and manufactures newsprint.
 TRIBUNE COMPANY
 Fourth Quarter Results of Operations
 (In thousands, except per share data)
 Fourth Quarter(A) Percent
 1992 1991 Change
 OPERATING REVENUES
 Newspaper Publishing $313,682 $305,279 3
 Broadcasting and Entertainment (B) 177,039 153,479 15
 Newsprint Operations (Canada) 94,921 100,605 (6)
 Intercompany (primarily newsprint) (32,aper Publishing (C) $
 57,836 $ 64,092 (10)
 Broadcasting and Entertainment (B) 37,212 19,547 90
 Newsprint Operations (Canada) (10,720) (10,734) --
 Corporate expenses (6,342) (6,220) 2
 Total Operating Profit 77,986 66,685 17
 Net Interest Expense (7,555) (10,115) (25)
 Income Before Income Taxes 70,431 56,570 25
 Income Taxes (28,425) (23,919) 19
 NET INCOME 42,006 32,651 29
 Preferred Dividends, net of tax (4,542) (4,225) 8
 Net Income Attributable to
 Common Shares $ 37,464 $ 28,426 32
 NET INCOME PER SHARE
 Primary $ .57 $ .44 30
 Fully Diluted $ .53 $ .42 26
 DIVIDENDS PER COMMON SHARE $ .24 $ .24 --
 Average Common Shares Outstanding 65,249 64,498 1
 (A) -- 1992 quarter: Sept. 28, 1992, to Dec. 27, 1992.
 1991 quarter: Sept. 30, 1991, to Dec. 29, 1991.
 (B) -- Fourth quarter 1992 includes $12.3 million of Major League Baseball expansion fees, which increased primary net income per share by $.12.
 (C) -- Fourth quarter 1992 includes a $15.3 million pretax charge for the disposition of The Peninsula Times Tribune, which decreased primary net income per share by $.12.
 TRIBUNE COMPANY
 Full Year Results of Operations
 (In thousands, except per share data)
 Full Year(A) Percent
 1992 1991 Change
 OPERATING REVENUES
 Newspaper Publishing $1,179,847 $1,150,882 3
 Broadcasting and Entertainment (B) 684,051 617,514 11
 Newsprint Operations (Canada) 366,269 422,128 (13)
 Intercompany (primarily newsprint) (121,556) (146,551) (17)
 Total Operating Revenues $2,108,611 $2,043,973 3
 OPERATING PROFIT (LOSS)
 Newspaper Publishing (C) $ 224,509 $ 217,031 3
 Broadcasting and Entertainment (B) 121,267 100,175 21
 Newsprint Operations (Canada) (53,770) (6,975) NM
 Corporate expenses (23,643) (22,256) 6
 Total Operating Profit 268,363 287,975 (7)
 Net Interest Expense (35,472) (46,100) (23)
 Income Before Income Taxes 232,891 241,875 (4)
 Income Taxes (96,266) (99,894) (4)
 INCOME BEFORE CUMULATIVE EFFECT OF
 CHANGES IN ACCOUNTING PRINCIPLES 136,625 141,981 (4)
 CUMULATIVE EFFECT OF CHANGES IN
 ACCOUNTING PRINCIPLES (D):
 Retiree Benefits, net of tax (37,600) -- NM
 Income Taxes 26,300 -- NM
 Postemployment Benefits, net of tax (5,500) -- NM
 Cum. Effect of Accounting Changes (16,800) -- NM
 NET INCOME 119,825 141,981 (16)
 Preferred Dividends, net of tax (18,168) (16,900) 8
 Net Income Attributable to
 Common Shares $ 101,657 $ 125,081 (19)
 PRIMARY NET INCOME PER SHARE:
 Before Cumulative Effect of
 Changes in Accounting Principles $1.82 $1.94 (6)
 Cumulative Effect of Accounting Changes (.26) -- NM
 Total $1.56 $1.94 (20)
 FULLY DILUTED NET INCOME PER SHARE:
 Before Cumulative Effect of
 Changes in Accounting Principles $1.70 $1.83 (7)
 Cumulative Effect of Accounting Changes (.24) -- NM
 Total $1.46 $1.83 (20)
 DIVIDENDS PER COMMON SHARE $0.96 $0.96 --
 Average Common Shares Outstanding 65,018 64,364 1
 (A) -- 1992 fiscal year: Dec. 30, 1991, to Dec. 27, 1992.
 1991 fiscal year: Dec. 31, 1990, to Dec. 29, 1991.
 (B) -- Full year 1992 includes $12.3 million of Major League Baseball expansion fees, which increased primary net income per share by $.12.
 (C) -- Full year 1992 includes a $15.3 million pretax charge for the disposition of The Peninsula Times Tribune, which decreased primary net income per share by $.12.
 (D) -- The changes in accounting principles relate to the adoption in 1992, retroactive to the first quarter, of new accounting rules for retiree benefits (FAS 106), income taxes (FAS 109), and postemployment benefits (FAS 112). Prior years have not been restated to apply the provisions of these new accounting standards. The impact of these new standards on income before the cumulative effects was not material either individually or in the aggregate.
 NM -- Not Meaningful.
 -0- 2/2/93
 /CONTACT: Robert D. Carr (media), 312-222-3763; or Joseph A. Hays (investors), 312-222-3238, both of Tribune/
 (TRB)


CO: Tribune Company ST: Illinois IN: PUB ENT SU: ERN

GK -- NY032 -- 1760 02/02/93 10:38 EST
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