International Entertainment News: Tribune Reports 2005 Second Quarter Results

Tribune Reports 2005 Second Quarter Results

CHICAGO, July 14 /PRNewswire-FirstCall/ -- Tribune Company (NYSE:TRB) today reported second quarter 2005 diluted earnings per share of $.73 compared with $.29 in the second quarter of 2004. The 2005 second quarter results included a net non-operating gain of $.13 per diluted share, while the 2004 second quarter results included a net non-operating loss of $.24 per diluted share.

Publishing operating profit in the 2004 second quarter included two pretax charges totaling $52 million, or $.09 per diluted share: $17 million for the elimination of 375 positions and $35 million as the initial estimate of the cost to settle with advertisers regarding misstated circulation at Newsday and Hoy, New York.

Tribune presents earnings per share amounts on a generally accepted accounting principles ("GAAP") basis only. This differs from the pro forma earnings per share amounts supplied by broker analysts to databases such as First Call.

"Second quarter results reflect our continued focus on cost controls in the face of a weak advertising environment in the nation's largest markets," said Dennis J. FitzSimons, Tribune chairman, president and chief executive officer. "Our businesses generated about $400 million in operating cash flow during the quarter, and we repurchased more than 5 million shares of stock."

SECOND QUARTER 2005 RESULTS(1) (Compared to Second Quarter 2004)

CONSOLIDATED

Tribune's 2005 second quarter operating revenues decreased 2 percent to $1.46 billion from $1.5 billion in the 2004 second quarter. Consolidated cash operating expenses were down 5 percent, or $52 million. Operating cash flow was up 5 percent to $396 million, while operating profit increased 6 percent to $338 million.

(1) "Operating profit" for each segment excludes interest income and expense, equity income and losses, non-operating items and income taxes. "Operating cash flow" is defined as operating profit before depreciation and amortization. "Cash operating expenses" are defined as operating expenses before depreciation and amortization. Tables accompanying this release include a reconciliation of operating profit to operating cash flow and operating expenses to cash operating expenses. References to individual daily newspapers include their related businesses.

PUBLISHING

Publishing's second quarter operating revenues were $1 billion, down 1 percent compared with last year's second quarter. Publishing cash operating expenses were down 6 percent, or $53 million; $52 million of the decrease is attributable to the two charges discussed above. Publishing operating cash flow was $263 million, a 21 percent increase from $217 million in 2004. Publishing operating profit increased 27 percent to $218 million, up from $171 million in 2004.

Management Discussion

-- Advertising revenues increased 1 percent for the quarter. Excluding Newsday, advertising revenues increased 2 percent. In September 2004, Newsday implemented lower ad rates as a result of the significant reduction in reported circulation. -- Retail advertising revenues were down 1 percent for the quarter. Decreases in department stores, food and drug and electronics categories were partially offset by increases in general merchandise. Preprint revenues increased 4 percent, led by an 11 percent increase in Los Angeles, a 5 percent increase in Chicago and a 13 percent increase in South Florida; Newsday was down 5 percent. -- National advertising was down 4 percent for the quarter, with decreases in transportation, wireless and resorts, partially offset by increases in financial, auto and package goods. Los Angeles was down 4 percent; Chicago was up 3 percent; and Newsday decreased 12 percent. -- Classified advertising was up 6 percent for the quarter. Help wanted revenues for the group were up 13 percent; Los Angeles was up 9 percent; Chicago rose 10 percent; and Newsday was flat. Real estate revenues rose 18 percent and auto revenues were down 7 percent for the quarter. -- Circulation revenues were down 9 percent primarily due to volume declines at each of the Company's newspapers, as well as selectively higher discounting. -- Interactive revenues, which are included in the above categories, were up 45 percent to $45 million due to strength in classified revenues. -- Cash operating expenses decreased 6 percent, or $53 million, due primarily to the absence of the two previously discussed 2004 charges, which totaled $52 million. All other cash operating expenses were down $1 million, primarily due to a 1 percent decrease in compensation expense, which was driven by a 5 percent staffing reduction. Newsprint and ink expense was flat compared with last year's second quarter, as newsprint cost per ton was up 9 percent while consumption decreased 8 percent.

BROADCASTING AND ENTERTAINMENT

Broadcasting and entertainment's second quarter operating revenues decreased 6 percent to $423 million, down from $450 million in 2004. Group cash operating expenses were flat compared with the 2004 second quarter. Operating cash flow was $147 million, down 16 percent from $174 million, and operating profit decreased 16 percent to $134 million from $160 million.

Television's second quarter revenues decreased 9 percent to $335 million, down from $368 million in 2004. Television cash operating expenses were up 1 percent from last year. Television operating cash flow was $132 million, a 21 percent decrease from $167 million. Television operating profit declined 22 percent to $121 million, down from $155 million.

Management Discussion

-- Television revenues were affected by a continuing uneven advertising environment, particularly in major markets, as well as softness in the automobile, movie and telecom categories. Station revenues in New York, Los Angeles, Chicago and Boston continue to be impacted by Local People Meters. -- Radio/entertainment results reflect increased revenues for the Chicago Cubs primarily due to higher game receipts and growth in broadcasting and marketing revenues.

EQUITY RESULTS

Net equity income was $12 million in the second quarter of 2005, compared with $4 million in the second quarter of 2004. The increase reflects improvements at TV Food Network, CareerBuilder and Comcast SportsNet Chicago.

NON-OPERATING ITEMS

In the 2005 second quarter, Tribune recorded a pretax non-operating gain of $67 million ($41 million after-tax, or $.13 per diluted share), primarily from marking-to-market the Company's PHONES derivatives and related Time Warner investment.

In the 2004 second quarter, the Company recorded a pretax non-operating loss of $127 million ($80 million after-tax, or $.24 per diluted share). Non- operating items in the second quarter of 2004 included an after-tax loss of $88 million from the early retirement of debt and an after-tax gain of $12 million from marking-to-market the Company's PHONES derivatives and related Time Warner investment.

ADDITIONAL FINANCIAL DETAILS

Corporate expenses for the 2005 second quarter increased to $13.5 million from $12.7 million in the second quarter of 2004, primarily due to higher retirement plan expense.

Net interest expense for the 2005 second quarter decreased to $34 million, down 3 percent from $35 million in the second quarter of 2004. Debt, excluding the PHONES, was $1.9 billion at the end of the 2005 second quarter, compared with $2.2 billion at the end of the second quarter of 2004.

The effective tax rate in the 2005 second quarter was 39.0 percent, compared with 40.0 percent in the 2004 second quarter.

Diluted weighted average shares outstanding declined by 4 percent primarily due to significant stock repurchases. The Company repurchased 15.5 million shares in the full year 2004 and 5.4 million shares in the first half of 2005.

Capital expenditures were about $35 million in the second quarter of 2005.

2005 FINANCIAL ASSUMPTIONS

Consolidated revenues will continue to be impacted by many factors, including changes in national and local economic conditions, job creation, circulation levels and audience shares. Investors are encouraged to review the Company's monthly revenue releases for current trends.

For the full year 2005, consolidated operating expenses are expected to decline due to the absence of the $90 million advertising settlement charge and the $41 million of position elimination costs recorded in 2004. All other consolidated operating expenses are expected to be flat to up slightly for 2005 due to higher expenses for retirement and medical plans and newsprint, along with a slight increase in broadcast rights expense. Net equity income is projected to be higher than 2004. Interest expense is expected to be somewhat below 2004 due to the full year impact of the debt refinancing in the second quarter of 2004. The effective income tax rate for 2005 is expected to be approximately 38 percent. Capital expenditures are projected to increase slightly over 2004.

The Company is required to adopt Financial Accounting Standard No. 123R, which requires the expensing of stock options, in the first quarter of 2006.

WEBCAST OF CONFERENCE CALL

Today at 8 a.m. (CDT), a live webcast of the 2005 second quarter conference call will be accessible through http://www.tribune.com/ and http://www.ccbn.com/. An archive of the webcast will be available on these sites from July 14 through July 21. More information about Tribune is available at http://www.tribune.com/ or by calling 800/757-1694.

TRIBUNE (NYSE:TRB) is one of the country's top media companies, operating businesses in publishing and broadcasting. It reaches more than 80 percent of U.S. households and is the only media organization with newspapers, television stations and web sites in the nation's top three markets. In publishing, Tribune operates 11 leading daily newspapers including the Los Angeles Times, Chicago Tribune and Newsday, plus a wide range of targeted publications including Spanish-language Hoy. The Company's broadcasting group operates 26 television stations; Superstation WGN on national cable; Chicago's WGN-AM; and the Chicago Cubs baseball team. Popular news and information web sites complement Tribune's print and broadcast properties and extend the Company's nationwide audience.

This press release contains certain comments or forward-looking statements that are based largely on the Company's current expectations and are subject to certain risks, trends and uncertainties. Such comments and statements should be understood in the context of Tribune's publicly available reports filed with the Securities and Exchange Commission ("SEC"), including the most current annual 10-K report and quarterly 10-Q report, which contain a discussion of various factors that may affect the Company's business or financial results. Any of these factors could cause actual future performance to differ materially from current expectations. Tribune Company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet service providers. This press release is being furnished to the SEC through a Form 8-K. The Company's next 10-Q report to be filed with the SEC may contain updates to the information included in this release.

TRIBUNE COMPANY SECOND QUARTER RESULTS OF OPERATIONS (Unaudited) (In thousands, except per share data)

SECOND QUARTER (A) --------------------------------- % 2005 2004 Change --------- --------- ------ OPERATING REVENUES $ 1,462,068 $ 1,495,931 (2.3) OPERATING EXPENSES(B) 1,123,768 1,177,174 (4.5) --------- ---------

OPERATING PROFIT(C) 338,300 318,757 6.1

Net Income on Equity Investments 11,897 4,385 171.3 Interest Income 1,165 1,023 13.9 Interest Expense (35,367) (36,247) (2.4) Non-Operating Items(D) 66,896 (127,401) NM --------- ---------

Income Before Income Taxes 382,891 160,517 138.5

Income Taxes (149,499) (64,131) 133.1 --------- ---------

NET INCOME 233,392 96,386 142.1

Preferred Dividends (2,090) (2,077) 0.6 --------- --------- Net Income Attributable to Common Shares $ 231,302 $ 94,309 145.3 ========= ========= EARNINGS PER SHARE Basic $ .73 $ .29 151.7 --------- ---------

Diluted(E) $ .73 $ .29 151.7 --------- ---------

DIVIDENDS PER COMMON SHARE $ .18 $ .12 50.0 --------- --------- Diluted Weighted Average Common Shares Outstanding(F) 318,018 329,923 (3.6) --------- ---------

(A) 2005 second quarter: March 28, 2005 to June 26, 2005 (13 weeks) 2004 second quarter: March 29, 2004 to June 27, 2004 (13 weeks)

(B) Operating expenses for the second quarter of 2004 included a charge of $17 million, or $.03 per diluted share, for the elimination of 375 positions in the publishing group and a charge of $35 million, or $.06 per diluted share, as the initial estimate of the cost to settle with advertisers regarding misstated circulation at Newsday and Hoy, New York.

(C) Operating profit excludes interest income and expense, equity income and losses, non-operating items and income taxes.

(D) The second quarter of 2005 included the following non-operating items:

Pretax After-tax Diluted Gain Gain EPS --------- --------- --------- Gain on derivatives and related investments(1) $ 61,803 $ 37,700 $ .12 Other, net 5,093 3,107 .01 --------- --------- --------- Total non-operating items $ 66,896 $ 40,807 $ .13 ========= ========= =========

The second quarter of 2004 included the following non-operating items:

Pretax After-tax Diluted Gain(Loss) Gain(Loss) EPS --------- --------- --------- Gain on derivatives and related investments(1) $ 20,229 $ 12,340 $ .04 Loss on early debt retirement(2) (140,506) (87,549) (.26) Other, net (7,124) (4,346) (.02) --------- --------- --------- Total non-operating items $ (127,401)$ (79,555)$ (.24) ========= ========= =========

(1) Gain on derivatives and related investments represents the net change in fair values of the Company's PHONES derivatives and related Time Warner shares.

(2) Loss on early debt retirement resulted from the retirement of $620 million of debt in the second quarter of 2004 at a cash premium of $137 million.

(E) For the second quarters of 2005 and 2004, weighted average common shares outstanding used in the calculation of diluted earnings per share ("EPS") were adjusted for the dilutive effect of stock options. The Company's Series C, D-1, and D-2 convertible preferred shares were not included in the calculation of diluted EPS for the second quarter of either year because their effects were antidilutive. Following are the calculations for the second quarter:

Second Quarter --------------------- 2005 2004 --------- --------- Net income $ 233,392 $ 96,386 Dividends for Series C, D-1 and D-2 preferred stock (2,090) (2,077) --------- --------- Net income attributable to common shares $ 231,302 $ 94,309 --------- --------- Weighted average common shares outstanding 315,466 324,296 Assumed exercise of stock options, net of common shares assumed repurchased 2,552 5,627 --------- --------- Adjusted weighted average common shares outstanding 318,018 329,923 --------- ---------

Diluted earnings per share $ .73 $ .29 ========= =========

(F) The number of common shares outstanding, in thousands, at June 26, 2005 was 312,619.

TRIBUNE COMPANY FIRST HALF RESULTS OF OPERATIONS (Unaudited) (In thousands, except per share data)

FIRST HALF (A) --------------------------------- % 2005 2004 Change --------- --------- ------ OPERATING REVENUES $ 2,777,812 $ 2,828,248 (1.8) OPERATING EXPENSES(B) 2,187,455 2,236,216 (2.2) --------- ---------

OPERATING PROFIT(C) 590,357 592,032 (0.3)

Net Income on Equity Investments 12,368 12 NM Interest Income 2,247 2,299 (2.3) Interest Expense (70,458) (82,925) (15.0) Non-Operating Items(D) 63,052 (153,980) NM --------- ---------

Income Before Income Taxes 597,566 357,438 67.2

Income Taxes(D) (221,329) (140,372) 57.7 --------- ---------

NET INCOME 376,237 217,066 73.3

Preferred Dividends (4,180) (4,154) 0.6 --------- ---------

Net Income Attributable to Common Shares $ 372,057 $ 212,912 74.7 ========= ========= EARNINGS PER SHARE

Basic $ 1.18 $ .65 81.5 --------- --------- Diluted(E) $ 1.17 $ .64 82.8 --------- --------- DIVIDENDS PER COMMON SHARE $ .36 $ .24 50.0 --------- --------- Diluted Weighted Average Common Shares Outstanding(F) 319,169 333,005 (4.2) --------- ---------

(A) 2005 first half: Dec. 27, 2004 to June 26, 2005 (26 weeks) 2004 first half: Dec. 29, 2003 to June 27, 2004 (26 weeks)

(B) Operating expenses for the first half of 2004 included a charge of $17 million, or $.03 per diluted share, for the elimination of 375 positions in the publishing group and a charge of $35 million, or $.06 per diluted share, as the initial estimate of the cost to settle with advertisers regarding misstated circulation at Newsday and Hoy, New York.

(C) Operating profit excludes interest income and expense, equity income and losses, non-operating items and income taxes.

(D) The first half of 2005 included the following non-operating items:

Pretax After-tax Diluted Gain Gain EPS --------- --------- ---------

Gain on derivatives and related investments(1) $ 59,551 $ 36,326 $ .12 Other, net 3,501 2,136 .01 Income tax settlement adjustments(2) - 11,829 .03 --------- --------- --------- Total non-operating items $ 63,052 $ 50,291 $ .16 ========= ========= =========

The first half of 2004 included the following non-operating items:

Pretax After-tax Diluted Gain(Loss) Gain(Loss) EPS --------- --------- ---------

Loss on derivatives and related investments(1) $ (25,272)$ (15,416)$ (.04) Loss on early debt retirement(3) (140,506) (87,549) (.26) Gain on sales of subsidiaries and investments, net(4) 18,874 11,513 .03 Other, net (7,076) (4,316) (.02) --------- --------- --------- Total non-operating items $ (153,980)$ (95,768)$ (.29) ========= ========= =========

(1) Gain(loss) on derivatives and related investments represents the net change in fair values of the Company's PHONES derivatives and related Time Warner shares.

(2) In the first quarter of 2005, the Company reduced its income tax expense and liabilities by a total of $12 million as a result of favorably resolving certain federal income tax issues.

(3) Loss on early debt retirement resulted from the retirement of $620 million of debt in the second quarter of 2004 at a cash premium of $137 million.

(4) In the first half of 2004, gain on sales of subsidiaries and investments related primarily to the sale of the Company's 50% interest in La Opinion.

(E) For the first halves of 2005 and 2004, weighted average common shares outstanding used in the calculation of diluted earnings per share ("EPS") were adjusted for the dilutive effect of stock options. The Company's Series C, D-1 and D-2 convertible preferred shares were not included in the calculation of diluted EPS for the first half of either year because their effects were antidilutive. Following are the calculations for the first half:

First Half --------------------- 2005 2004 --------- ---------

Net income $ 376,237 $ 217,066 Dividends for Series C, D-1 and D-2 preferred stock (4,180) (4,154) --------- --------- Net income attributable to common shares $ 372,057 $ 212,912 --------- --------- Weighted average common shares outstanding 316,387 326,799 Assumed exercise of stock options, net of common shares assumed repurchased 2,782 6,206 --------- --------- Adjusted weighted average common shares outstanding 319,169 333,005 --------- ---------

Diluted earnings per share $ 1.17 $ .64 ========= =========

(F) The number of common shares outstanding, in thousands, at June 26, 2005 was 312,619.

TRIBUNE COMPANY BUSINESS SEGMENT DATA (Unaudited) (In thousands)

SECOND QUARTER ---------------------------------- % 2005 2004 Change PUBLISHING --------- --------- ------ Operating Revenues $ 1,038,624 $ 1,045,864 (0.7) Cash Operating Expenses(A)(B) (775,763) (828,665) (6.4) --------- --------- Operating Cash Flow(C)(D) 262,861 217,199 21.0 Depreciation and Amortization Expense (45,210) (46,148) (2.0) --------- --------- Total Operating Profit(D) $ 217,651 $ 171,051 27.2 ========= =========

BROADCASTING AND ENTERTAINMENT Operating Revenues Television $ 334,505 $ 367,928 (9.1) Radio/Entertainment 88,939 82,139 8.3 --------- --------- Total Operating Revenues 423,444 450,067 (5.9)

Cash Operating Expenses(A) Television (202,179) (200,773) 0.7 Radio/Entertainment (74,659) (75,626) (1.3) --------- --------- Total Cash Operating Expenses (276,838) (276,399) 0.2

Operating Cash Flow(C)(D) Television 132,326 167,155 (20.8) Radio/Entertainment 14,280 6,513 119.3 --------- --------- Total Operating Cash Flow 146,606 173,668 (15.6)

Depreciation and Amortization Expense Television (11,282) (11,974) (5.8) Radio/Entertainment (1,203) (1,283) (6.2) --------- --------- Total Depreciation and Amortization Expense (12,485) (13,257) (5.8)

Operating Profit(D) Television 121,044 155,181 (22.0) Radio/Entertainment 13,077 5,230 150.0 --------- --------- Total Operating Profit $ 134,121 $ 160,411 (16.4) ========= =========

CORPORATE EXPENSES Operating Cash Flow(C)(D) $ (13,066)$ (12,297) 6.3 Depreciation and Amortization Expense (406) (408) (0.5) --------- --------- Total Operating Loss(D) $ (13,472)$ (12,705) 6.0 ======== =========

CONSOLIDATED Operating Revenues $ 1,462,068 $ 1,495,931 (2.3) Cash Operating Expenses(A)(B) (1,065,667) (1,117,361) (4.6) --------- --------- Operating Cash Flow(C)(D) 396,401 378,570 4.7 Depreciation and Amortization Expense (58,101) (59,813) (2.9) --------- --------- Total Operating Profit(D) $ 338,300 $ 318,757 6.1 ========= =========

(A) The Company uses cash operating expenses to evaluate internal performance. The Company has presented cash operating expenses because it is a common measure used by rating agencies, financial analysts and investors. Cash operating expense is not a measure of financial performance under generally accepted accounting principles ("GAAP") and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Following is a reconciliation of operating expenses to cash operating expenses for the second quarter of 2005:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating expenses $ 820,973 $ 289,323 $ 13,472 $ 1,123,768 Less: depreciation and amortization expense 45,210 12,485 406 58,101 --------- --------- --------- --------- Cash operating expenses $ 775,763 $ 276,838 $ 13,066 $ 1,065,667 ========= ========= ========= =========

Following is a reconciliation of operating expenses to cash operating expenses for the second quarter of 2004:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating expenses $ 874,813 $ 289,656 $ 12,705 $ 1,177,174 Less: depreciation and amortization expense 46,148 13,257 408 59,813 --------- --------- --------- --------- Cash operating expenses $ 828,665 $ 276,399 $ 12,297 $ 1,117,361 ========= ========= ========= =========

(B) Publishing cash operating expenses for both the second quarter and first half of 2004 included a charge of $17 million for the elimination of 375 positions and a charge of $35 million as the initial estimate of the cost to settle with advertisers regarding misstated circulation at Newsday and Hoy, New York.

(C) Operating cash flow is defined as operating profit before depreciation and amortization. The Company uses operating cash flow along with operating profit and other measures to evaluate the financial performance of the Company's business segments. The Company has presented operating cash flow because it is a common alternative measure of financial performance used by rating agencies, financial analysts and investors. These groups use operating cash flow along with other measures as a way to estimate the value of a company. The Company's definition of operating cash flow may not be consistent with that of other companies. Operating cash flow does not represent cash provided by operating activities as reflected in the Company's consolidated statements of cash flows, is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

(D) Operating profit for each segment excludes interest income and expense, equity income and losses, non-operating items and income taxes.

Following is a reconciliation of operating profit(loss) to operating cash flow for the second quarter of 2005:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating profit (loss) $ 217,651 $ 134,121 $ (13,472)$ 338,300 Add back: depreciation and amortization expense 45,210 12,485 406 58,101 --------- --------- --------- --------- Operating cash flow $ 262,861 $ 146,606 $ (13,066)$ 396,401 ========= ========= ========= =========

Following is a reconciliation of operating profit(loss) to operating cash flow for the second quarter of 2004:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating profit (loss) $ 171,051 $ 160,411 $ (12,705)$ 318,757 Add back: depreciation and amortization expense 46,148 13,257 408 59,813 --------- --------- --------- --------- Operating cash flow $ 217,199 $ 173,668 $ (12,297)$ 378,570 ========= ========= ========= =========

TRIBUNE COMPANY BUSINESS SEGMENT DATA (Unaudited) (In thousands)

FIRST HALF ---------------------------------- % PUBLISHING 2005 2004 Change --------- --------- ------ Operating Revenues $ 2,044,136 $ 2,049,447 (0.3) Cash Operating Expenses(A)(B) (1,538,090) (1,597,607) (3.7) --------- --------- Operating Cash Flow(C)(D) 506,046 451,840 12.0 Depreciation and Amortization Expense (89,856) (91,241) (1.5) --------- --------- Total Operating Profit(D) $ 416,190 $ 360,599 15.4 ========= =========

BROADCASTING AND ENTERTAINMENT

Operating Revenues Television $ 624,594 $ 674,367 (7.4) Radio/Entertainment 109,082 104,434 4.5 --------- --------- Total Operating Revenues 733,676 778,801 (5.8)

Cash Operating Expenses(A) Television (393,149) (393,050) - Radio/Entertainment (114,109) (102,368) 11.5 --------- --------- Total Cash Operating Expenses (507,258) (495,418) 2.4

Operating Cash Flow(C)(D) Television 231,445 281,317 (17.7) Radio/Entertainment (5,027) 2,066 NM --------- --------- Total Operating Cash Flow 226,418 283,383 (20.1)

Depreciation and Amortization Expense Television (22,960) (23,733) (3.3) Radio/Entertainment (2,371) (2,620) (9.5) --------- --------- Total Depreciation and Amortization Expense (25,331) (26,353) (3.9)

Operating Profit(Loss)(D) Television 208,485 257,584 (19.1) Radio/Entertainment (7,398) (554) NM --------- --------- Total Operating Profit $ 201,087 $ 257,030 (21.8) ========= =========

CORPORATE EXPENSES

Operating Cash Flow(C)(D) $ (26,113)$ (24,768) 5.4 Depreciation and Amortization Expense (807) (829) (2.7) --------- --------- Total Operating Loss(D) $ (26,920)$ (25,597) 5.2 ========= =========

CONSOLIDATED

Operating Revenues $ 2,777,812 $ 2,828,248 (1.8) Cash Operating Expenses(A)(B) (2,071,461) (2,117,793) (2.2) --------- --------- Operating Cash Flow(C)(D) 706,351 710,455 (0.6) Depreciation and Amortization Expense (115,994) (118,423) (2.1) --------- --------- Total Operating Profit(D) $ 590,357 $ 592,032 (0.3) ========= =========

Following is a reconciliation of operating expenses to cash operating expenses for the first half of 2005:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating expenses $1,627,946 $ 532,589 $ 26,920 $ 2,187,455 Less: depreciation and amortization expense 89,856 25,331 807 115,994 --------- --------- --------- --------- Cash operating expenses $1,538,090 $ 507,258 $ 26,113 $ 2,071,461 ========= ========= ========= =========

Following is a reconciliation of operating expenses to cash operating expenses for the first half of 2004:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating expenses $1,688,848 $ 521,771 $ 25,597 $ 2,236,216 Less: depreciation and amortization expense 91,241 26,353 829 118,423 --------- --------- --------- --------- Cash operating expenses $1,597,607 $ 495,418 $ 24,768 $ 2,117,793 ========= ========= ========= =========

(D) Operating profit for each segment excludes interest income and expense, equity income and losses, non-operating items and income taxes.

Following is a reconciliation of operating profit(loss) to operating cash flow for the first half of 2005:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating profit (loss) $ 416,190 $ 201,087 $ (26,920)$ 590,357 Add back: depreciation and amortization expense 89,856 25,331 807 115,994 --------- --------- --------- --------- Operating cash flow $ 506,046 $ 226,418 $ (26,113)$ 706,351 ========= ========= ========= =========

Following is a reconciliation of operating profit(loss) to operating cash flow for the first half of 2004:

Publishing B&E Corporate Consol. --------- --------- --------- --------- Operating profit (loss) $ 360,599 $ 257,030 $ (25,597)$ 592,032 Add back: depreciation and amortization expense 91,241 26,353 829 118,423 --------- --------- --------- --------- Operating cash flow $ 451,840 $ 283,383 $ (24,768)$ 710,455 ========= ========= ========= =========

TRIBUNE COMPANY SUMMARY OF REVENUES (Unaudited) For Second Quarter Ended June 26, 2005 (In thousands)

Second Quarter (13 weeks) Year-to-Date (26 weeks) 2005 2004 % 2005 2004 % ---------- ---------- --- ---------- ---------- --- Publishing ---------- Advertising Retail $ 331,637 $ 335,572 (1.2) $ 635,821 $ 630,901 0.8 National 190,256 197,765 (3.8) 390,770 401,600 (2.7) Classified 301,037 284,508 5.8 583,808 559,704 4.3 ---------- ---------- ---------- ---------- Sub-Total 822,930 817,845 0.6 1,610,399 1,592,205 1.1 Circulation 149,918 165,006 (9.1) 301,634 330,909 (8.8) Other 65,776 63,013 4.4 132,103 126,333 4.6 ---------- ---------- ---------- ---------- Segment Total(A) 1,038,624 1,045,864 (0.7) 2,044,136 2,049,447 (0.3) ---------- ---------- ---------- ---------- Broadcasting & Entertainment -------------- Television 334,505 367,928 (9.1) 624,594 674,367 (7.4) Radio/Enter. 88,939 82,139 8.3 109,082 104,434 4.5 ---------- ---------- ---------- ---------- Segment Total 423,444 450,067 (5.9) 733,676 778,801 (5.8) ---------- ---------- ---------- ---------- Consol. Rev. $1,462,068 $1,495,931 (2.3) $2,777,812 $2,828,248 (1.8) ========== ========== ========== ==========

(A) Publishing advertising and other revenues for 2004 have been reclassified to conform with the 2005 presentation. There was no effect on total revenues.

TRIBUNE COMPANY SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited)(A) For Second Quarter Ended June 26, 2005 (In thousands)

Second Quarter (13 weeks) Year-to-Date (26 weeks) 2005 2004 % 2005 2004 % ---------- ---------- --- ---------- ---------- --- Full Run -------- L.A. Times 540 603 (10.4) 1,120 1,221 (8.3) Chicago Tribune 519 578 (10.2) 1,021 1,123 (9.1) Newsday 414 418 (1.0) 764 774 (1.3) Other Dailies (B) 3,548 3,681 (3.6) 6,848 7,205 (5.0) ---------- ---------- ---------- ---------- Total 5,021 5,280 (4.9) 9,753 10,323 (5.5) ========== ========== ========== ==========

Part Run -------- L.A. Times 1,357 1,462 (7.2) 2,669 2,907 (8.2) Chicago Tribune 1,807 1,678 7.7 3,479 3,231 7.7 Newsday 568 524 8.4 1,029 950 8.3 Other Dailies (B) 1,660 1,594 4.1 3,237 3,134 3.3 ---------- ---------- ---------- ---------- Total 5,392 5,258 2.5 10,414 10,222 1.9 ========== ========== ========== ==========

Total Advertising Inches ------------------------ Full Run Retail 1,494 1,559 (4.2) 2,879 2,937 (2.0) National 922 996 (7.4) 1,888 1,990 (5.1) Classified 2,605 2,725 (4.4) 4,986 5,396 (7.6) ---------- ---------- ---------- ---------- Sub-Total 5,021 5,280 (4.9) 9,753 10,323 (5.5) Part Run 5,392 5,258 2.5 10,414 10,222 1.9 ---------- ---------- ---------- ---------- Total 10,413 10,538 (1.2) 20,167 20,545 (1.8) ========== ========== ========== ==========

Preprint Pieces --------------- L.A. Times 947,042 884,310 7.1 1,837,938 1,640,073 12.1 Chicago Tribune 1,050,468 994,477 5.6 1,957,675 1,871,227 4.6 Newsday 715,628 720,813 (0.7) 1,395,516 1,370,263 1.8 Other Dailies (B) 1,013,152 1,010,244 0.3 2,006,911 2,002,447 0.2 ---------- ---------- ---------- ---------- Total 3,726,290 3,609,844 3.2 7,198,040 6,884,010 4.6 ========== ========== ========== ==========

(A) Volume for 2004 has been modified to conform with the 2005 presentation. Volume is based on preliminary internal data, which may be updated in subsequent reports. Advertising volume is presented only for daily newspapers.

(B) Other daily newspapers include The Baltimore Sun, South Florida Sun- Sentinel, Orlando Sentinel, The Hartford Courant, The Morning Call, Daily Press, The Advocate, Greenwich Time, Hoy, New York, Hoy, Chicago, and Hoy, Los Angeles.

TRIBUNE COMPANY SUMMARY OF REVENUES (Unaudited) For Period 6 Ended June 26, 2005 (In thousands)

Period 6 (5 weeks) Year-to-Date (26 weeks) 2005 2004 % 2005 2004 % ---------- ---------- --- ---------- ---------- --- Publishing ---------- Advertising Retail $ 129,511 $ 132,124 (2.0) $ 635,821 $ 630,901 0.8 National 75,242 75,386 (0.2) 390,770 401,600 (2.7) Classified 113,046 108,570 4.1 583,808 559,704 4.3 ---------- ---------- ---------- ---------- Sub-Total 317,799 316,080 0.5 1,610,399 1,592,205 1.1 Circulation 56,777 62,571 (9.3) 301,634 330,909 (8.8) Other 23,914 23,355 2.4 132,103 126,333 4.6 ---------- ---------- ---------- ---------- Segment Total(A) 398,490 402,006 (0.9) 2,044,136 2,049,447 (0.3) ---------- ---------- ---------- ---------- Broadcasting & Entertainment -------------- Television 128,406 145,548 (11.8) 624,594 674,367 (7.4)

Radio/Enter. 39,840 34,391 15.8 109,082 104,434 4.5 ---------- ---------- ---------- ---------- Segment Total 168,246 179,939 (6.5) 733,676 778,801 (5.8) ---------- ---------- ---------- ---------- Consol. Rev. $ 566,736 $ 581,945 (2.6) $2,777,812 $2,828,248 (1.8) ========== ========== ========== ==========

(A) Publishing advertising and other revenues for 2004 have been reclassified to conform with the 2005 presentation. There was no effect on total revenues.

TRIBUNE COMPANY SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited)(A) For Period 6 Ended June 26, 2005 (In thousands)

Period 6 (5 weeks) Year-to-Date (26 weeks) 2005 2004 % 2005 2004 % ---------- ---------- --- ---------- ---------- --- Full Run -------- L.A. Times 215 243 (11.5) 1,120 1,221 (8.3) Chicago Tribune 204 224 (8.9) 1,021 1,123 (9.1) Newsday 165 171 (3.5) 764 774 (1.3) Other Dailies (B) 1,375 1,431 (3.9) 6,848 7,205 (5.0) ---------- ---------- ---------- ---------- Total 1,959 2,069 (5.3) 9,753 10,323 (5.5) ========== ========== ========== ==========

Part Run -------- L.A. Times 552 600 (8.0) 2,669 2,907 (8.2) Chicago Tribune 715 656 9.0 3,479 3,231 7.7 Newsday 216 205 5.4 1,029 950 8.3 Other Dailies (B) 605 603 0.3 3,237 3,134 3.3 ---------- ---------- ---------- ---------- Total 2,088 2,064 1.2 10,414 10,222 1.9 ========== ========== ========== ==========

Total Advertising Inches ------------------------ Full Run Retail 581 610 (4.8) 2,879 2,937 (2.0) National 362 386 (6.2) 1,888 1,990 (5.1) Classified 1,016 1,073 (5.3) 4,986 5,396 (7.6) ---------- ---------- ---------- ---------- Sub-Total 1,959 2,069 (5.3) 9,753 10,323 (5.5) Part Run 2,088 2,064 1.2 10,414 10,222 1.9 ---------- ---------- ---------- ---------- Total 4,047 4,133 (2.1) 20,167 20,545 (1.8) ========== ========== ========== ==========

Preprint Pieces --------------- L.A. Times 377,224 356,511 5.8 1,837,938 1,640,073 12.1 Chicago Tribune 402,578 393,370 2.3 1,957,675 1,871,227 4.6 Newsday 265,029 281,287 (5.8) 1,395,516 1,370,263 1.8 Other Dailies(B)393,583 391,820 0.4 2,006,911 2,002,447 0.2 ---------- ---------- ---------- ---------- Total 1,438,414 1,422,988 1.1 7,198,040 6,884,010 4.6 ========== ========== ========== ==========

Source: Tribune Company

CONTACT: Media, Gary Weitman, +1-312-222-3394, fax, +1-312-222-1573, gweitman@tribune.com , Investors, Ruthellyn Musil, +1-312-222-3787, fax, +1-312-222-1573, rmusil@tribune.com , both of Tribune Company

Web site: http://www.tribune.com/

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International Entertainment News

Thursday, July 14, 2005

Tribune Reports 2005 Second Quarter Results

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