Tribune Publishing Company (NASDAQ:TPCO) today announced that it
has closed the sale of its majority stake in BestReviews to Nexstar
Media Group, Inc. (NASDAQ: NXST). BestReviews LLC was owned 60% by
Tribune and 40% by its founders, BR Holding Company, Inc.
“We are pleased to have closed the BestReviews
transaction which strengthens the Company’s balance sheet and
provides flexibility for our business going forward,” said Terry
Jimenez, CEO of Tribune Publishing.
Tribune Publishing also updated its guidance for Q4 and full
year 2020, excluding the impact of BestReviews, and released
revenue and AEBITDA guidance for 2021.
- For the fourth quarter of 2020 the Company expects to generate
a range of $191M-$192M in revenue and $28M-$29M in AEBITDA
- For the full year of 2020 the Company expects to generate a
range of $745M-$746M in revenue and $72M-$73M in AEBITDA
- For fiscal year 2021 the Company expects to generate a range of
$675M-$690M in revenue and $105M-$113M in AEBITDA
Commenting on the updated guidance for Q4 and full
year 2020 and newly announced guidance for 2021, Terry Jimenez
said, “We have taken measures throughout 2020 that will benefit
2021 and beyond, and our guidance reflects those measures. As we
continue to execute our digital subscription, advertising and
content strategies, we expect to generate substantial
year-over-year increases in AEBITDA next year and create a clear
path for long-term strong performance.”
Cautionary Statements Regarding Forward-looking
Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that are based
largely on our current expectations and reflect various estimates
and assumptions by us. Forward-looking statements are subject to
certain risks, trends and uncertainties that could cause actual
results and achievements to differ materially from those expressed
in such forward-looking statements. Such risks, trends and
uncertainties, which in some instances are beyond our control,
include, without limitation, the effect of the novel coronavirus
(“COVID-19”) and related governmental and economic responses;
changes in advertising demand, circulation levels and audience
shares; competition and other economic conditions; our ability to
develop and grow our online businesses; changes in newsprint price
and availability; our ability to maintain data security and comply
with privacy-related laws; economic and market conditions that
could impact the level of our required contributions to the defined
benefit pension plans to which we contribute; decisions by trustees
under rehabilitation plans (if applicable) or other contributing
employers with respect to multiemployer plans to which we
contribute which could impact the level of our contributions; our
ability to maintain effective internal control over financial
reporting; concentration of stock ownership among our principal
stockholders whose interest may differ from those of other
stockholders; and other events beyond our control that may result
in unexpected adverse operating results. For specific risks related
to the COVID-19 pandemic, refer to Item 1A. Risk Factors in the
most recently filed Quarterly Report on Form 10-Q. For more
information about these and other risks, see Item 1A (Risk Factors)
of the Company’s most recent Annual Report on Form 10-K and in the
Company’s other reports filed with the Securities and Exchange
Commission.
The words “believe,” “expect,” “anticipate,” “estimate,”
“could,” “should,” “intend,” “may,” “will,” “plan,” “seek” and
similar expressions generally identify forward-looking statements.
However, such words are not the exclusive means for identifying
forward-looking statements, and their absence does not mean that
the statement is not forward looking. Whether or not any such
forward-looking statements, in fact occur will depend on future
events, some of which are beyond our control. Readers are cautioned
not to place undue reliance on such forward-looking statements,
which are being made as of the date of this press release. Except
as required by law, we undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Non-GAAP Financial Information
Adjusted EBITDA is a financial measure that is not calculated in
accordance with U.S. GAAP. Management believes that because
Adjusted EBITDA excludes (i) certain non-cash expenses (such as
depreciation, amortization, stock-based compensation, and gain/loss
on equity investments) and (ii) expenses that are not reflective of
the Company’s core operating results over time (such as
restructuring costs, including the employee voluntary separation
program and gain/losses on employee benefit plan terminations,
litigation or dispute settlement charges or gains, premiums on
stock buyback, impairment, and transaction-related costs), this
measure provides investors with additional useful information to
measure the Company’s financial performance, particularly with
respect to changes in performance from period to period. The
Company’s management uses Adjusted EBITDA (a) as a measure of
operating performance; (b) for planning and forecasting in future
periods; and (c) in communications with the Company’s Board of
Directors concerning the Company’s financial performance. In
addition, Adjusted EBITDA, or a similarly calculated measure, has
been used as the basis for certain financial maintenance covenants
that the Company was subject to in connection with certain credit
facilities. Since not all companies use identical calculations, the
Company’s presentation of Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies and should not
be used by investors as a substitute or alternative to net income
or any measure of financial performance calculated and presented in
accordance with U.S. GAAP. Instead, management believes Adjusted
EBITDA should be used to supplement the Company’s financial
measures derived in accordance with U.S. GAAP to provide a more
complete understanding of the trends affecting the business.
Although Adjusted EBITDA is frequently used by investors and
securities analysts in their evaluations of companies, Adjusted
EBITDA has limitations as an analytical tool, and investors should
not consider it in isolation or as a substitute for, or more
meaningful than, amounts determined in accordance with U.S. GAAP.
Some of the limitations to using non-GAAP measures as an analytical
tool are: they do not reflect the Company’s interest income and
expense, or the requirements necessary to service interest or
principal payments on the Company’s debt; they do not reflect
future requirements for capital expenditures or contractual
commitments; and although depreciation and amortization charges are
non-cash charges, the assets being depreciated and amortized will
often have to be replaced in the future, and non-GAAP measures do
not reflect any cash requirements for such replacements.
The Company does not provide a reconciliation of Adjusted EBITDA
guidance due to the inherent difficulty in forecasting and
quantifying certain amounts that are necessary for such
reconciliation, including adjustments that could be made for
restructuring and transaction costs, stock-based compensation
amounts and other charges reflected in our reconciliation of
historic numbers, the amount of which, based on historical
experience, could be significant.
About Tribune Publishing
CompanyTribune Publishing Company (NASDAQ: TPCO) is a
media company rooted in award-winning journalism.
Headquartered in Chicago, Tribune Publishing operates local
media businesses in eight markets with titles
including the Chicago Tribune, New York Daily
News, The Baltimore Sun, Hartford Courant, South
Florida's Sun Sentinel and Orlando Sentinel,
Virginia’s Daily Press and The Virginian-Pilot,
and The Morning Call of Lehigh Valley, Pennsylvania. In
addition to award-winning local media businesses, Tribune
Publishing operates Tribune Content Agency and
TheDailyMeal.com.
Our brands are committed to informing, inspiring
and engaging local communities. We create and distribute content
across our media portfolio and offer integrated marketing, media,
and business services to consumers and advertisers, including
digital solutions and advertising opportunities.
Investor Relations Contact:Amy
Bullis312.222.2102abullis@tribpub.com
Media Contact:Max
Reinsdorf847.867.6294mreinsdorf@tribpub.com
Source: Tribune Publishing
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