Q2 2015 Performance Summary AUGUST 2015 Exhibit 99.2 |
2 Cautionary Statement Regarding Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements may include, but are not limited to, statements concerning our financial outlook and guidance, including our 2015 forecasted revenues, Adjusted EBITDA and other consolidated and segment financial performance guidance, our expectations for Adjusted EBITDA growth in 2016, our long-term outlook for WGN America and Tribune Studios revenue and programming expenses as well as Digital and Data segment revenue growth and Adjusted EBITDA margins, the conditions in our industry, our operations, our economic performance and financial condition, including, in particular, statements relating to our business and growth strategy and product development efforts. Important factors that could cause actual results, developments and business decisions to differ materially from these forward-looking statements are uncertainties discussed below and in the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 6, 2015 and other filings with the SEC. “Forward-looking statements” include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as “may,” “might,” “will,” “could” “should,” “estimate,” “project,” “plan,” “anticipate,” “expect,” “intend,” “outlook,” “seek,” “designed,” “assume,” “implied,” “believe” and other similar expressions. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. The following list represents some, but not necessarily all, of the factors that could cause actual results to differ from projected or historical results or those anticipated or predicted by these forward-looking statements: competition and other economic conditions including fragmentation of the media landscape and competition from other media alternatives; changes in advertising demand and audience shares; changes in the overall market for television advertising, including through regulatory and judicial rulings; our ability to protect our intellectual property and other proprietary rights; availability and cost of broadcast rights; our ability to adapt to technological changes; availability and cost of quality network, syndicated and sports programming affecting our television ratings; the loss or modification of our network affiliation agreements; our ability to renegotiate retransmission consent agreements; the incurrence of additional tax-related liabilities related to historical income tax returns; our ability to expand our operations internationally; the incurrence of costs to address contamination issues at sites owned, operated or used by our business; adverse results from litigation, governmental investigations or tax- related proceedings or audits; our ability to settle unresolved claims filed in connection with our and certain of our direct and indirect wholly-owned subsidiaries’ Chapter 11 cases and resolve the appeals seeking to overturn the bankruptcy court order confirming the First Amended Joint Plan of Reorganization for Tribune Company and its Subsidiaries; our ability to satisfy pension and other postretirement employee benefit obligations; our ability to attract and retain employees; the effect of labor strikes, lock-outs and labor negotiations; our ability to realize benefits or synergies from acquisitions or divestitures or to operate our businesses effectively following acquisitions or divestitures; the financial performance of our equity method investments; the impairment of our existing goodwill and other intangible assets; compliance with both US and foreign government regulations applicable to our industry; changes in accounting standards; our ability to pay cash dividends on our common stock; increased interest rate risk due to our variable rate indebtedness; our indebtedness and ability to comply with covenants applicable to our debt financing and other contractual commitments; our ability to satisfy future capital and liquidity requirements; our ability to access the credit and capital markets at the times and in the amounts needed and on acceptable terms and other events beyond our control that may result in unexpected adverse operating results. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this presentation may not in fact occur. Any forward-looking information presented herein is made only as of the date of this presentation and we undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. |
3 Non-GAAP Financial Measures This presentation includes a discussion of Adjusted EBITDA for the Company and our operating segments (Television and Entertainment, Digital and Data, and Corporate and Other) and presents Broadcast Cash Flow for our Television and Entertainment segment. Adjusted EBITDA and Broadcast Cash Flow are financial measures that are not recognized under accounting principles generally accepted in the U.S. (“GAAP”). Adjusted EBITDA for the Company is defined as net income before income (loss) from discontinued operations, net of taxes, income taxes, investment transactions, interest and dividend income, interest expense, pension expense (credit), equity income and losses, depreciation and amortization, stock-based compensation, certain special items (including severance), non-operating items, gain (loss) on sales of real estate and reorganization items. Adjusted EBITDA for the Company’s operating segments is calculated as segment operating profit plus depreciation, amortization, pension expense (credit), stock-based compensation and certain special items (including severance). Broadcast Cash Flow for the Television and Entertainment segment is calculated as Television and Entertainment Adjusted EBITDA plus broadcast rights- amortization expense less broadcast rights- cash payments. We believe that Adjusted EBITDA and Broadcast Cash Flow are measures commonly used by investors to evaluate our performance with that of our competitors. We also present Adjusted EBITDA because we believe investors, analysts and rating agencies consider it useful in measuring our ability to meet our debt service obligations. We further believe that the disclosure of Adjusted EBITDA and Broadcast Cash Flow is useful to investors, as these non-GAAP measures are used, among other measures, by our management to evaluate our performance. By disclosing Adjusted EBITDA and Broadcast Cash Flow, we believe that we create for investors a greater understanding of, and an enhanced level of transparency into, the means by which our management operates our company. Adjusted EBITDA and Broadcast Cash Flow are not measures presented in accordance with GAAP, and our use of these terms may vary from that of others in our industry. Adjusted EBITDA and Broadcast Cash Flow should not be considered as an alternative to net income, operating profit, revenues, cash provided by operating activities or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. The tables within this presentation include reconciliations of consolidated and segment Adjusted EBITDA and Broadcast Cash Flow to the most directly comparable financial measure calculated and presented in accordance with GAAP. No reconciliation of the forecasted range for Adjusted EBITDA on a consolidated or segment basis for fiscal 2015 is included in this release because we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts and we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. |
4 Tribune Media A diverse combination of media assets that meaningfully touch millions of people every day, including compelling content in news and entertainment, significant broadcast distribution, an emerging cable network, and a cutting-edge digital and data business. • Broadcast: 42 owned or operated broadcast television stations in major markets across the country. • WGN America: A national, general entertainment cable network airing high quality original content and reaching approximately 73 million households. • Digital and Data: Growing global metadata business, powering some of the biggest media brands in the world. • Real Estate and Investments: 76 real estate properties and equity investments in a variety of media, online and other properties. |
5 Q2 2015 Financial Highlights As compared to the three months ended June 29, 2014 Consolidated operating revenue grew 6% to $501.5 million. Television and Entertainment segment revenue grew 4%, driven by higher advertising revenues and increased carriage and retransmission fees. Consolidated operating profit decreased 39% to $19.8 million. Consolidated Adjusted EBITDA decreased 29% due primarily to the previously announced change in the timing of the amortization of programming expense for original programming at WGN America, planned production funding for co-owned original programming for WGN America, implementation costs for improved technology applications and the establishment of new shared services operations. Basic and diluted loss per share from continuing operations of $(0.04), which includes a pre-tax charge of $37 million for loss on extinguishment of debt related to the Company’s refinancing of its Term Loan Facility and issuance of $1.1 billion of 5.875% Senior Notes due 2022. |
6 Strategic Highlights Conversion of WGN America from a superstation to a basic cable network is ahead of schedule, with an expectation of at least 75% of subscribers converted by the end of 2015. 48% increase in WGN America carriage fees resulting, in part, from improved off-network and original programming. Achieved higher rates for local TV retransmission, driving 23% increase in fees. Acquisitions of Infostrada Statistics B.V. (“Infostrada Sports”), SportsDirect Inc. (“SportsDirect”) and Covers Media Group (“Covers”) combined to create Gracenote Sports, a leading provider of sports metadata. |
7 Consolidated Financial Results Continued execution against the Company’s strategic objectives drove positive top-line growth. (USD thousands) June 30, 2015 June 29, 2014 $ % June 30, 2015 June 29, 2014 $ % Operating Revenues 501,524 $ 474,979 $ 26,545 6% 974,261 $ 921,081 $ 53,180 6% Operating Expenses 481,740 442,786 38,954 9% 893,542 838,628 54,914 7% Operating Profit 19,784 32,193 (12,409) -39% 80,719 82,453 (1,734) -2% Adjusted EBITDA 92,309 $ 130,344 $ (38,035) -29% 221,289 $ 268,330 $ (47,041) -18% Adjusted EBITDA Margin 18.4% 27.4% 22.7% 29.1% Six months ended: Variance Variance Three months ended: |
8 Television and Entertainment Segment Operating Results Revenues Increase driven by higher retransmission consent fees, higher carriage fees and higher core advertising partially offset by lower political advertising revenues. Adjusted EBITDA Higher amortization of programming expenses and production costs associated with planned production funding for our co-owned original programming more than offset revenue increases. (USD thousands) June 30, 2015 June 29, 2014 $ % June 30, 2015 June 29, 2014 $ % Operating Revenues 445,622 $ 426,961 $ 18,661 4% 855,922 $ 827,162 $ 28,760 3% Operating Expenses 398,534 374,547 23,987 6% 729,486 710,051 19,435 3% Operating Profit 47,088 52,414 (5,326) -10% 126,436 117,111 9,325 8% Adjusted EBITDA 104,266 $ 140,636 $ (36,370) -26% 239,249 $ 280,317 $ (41,068) -15% Adjusted EBITDA Margin 23.4% 32.9% 28.0% 33.9% Three months ended: Six months ended: Variance Variance |
9 Television and Entertainment Segment Revenues (USD thousands) June 30, 2015 June 29, 2014 $ % June 30, 2015 June 29, 2014 $ % Advertising Core (Local / National) 310,865 $ 303,777 $ 7,089 2% 593,296 $ 592,200 $ 1,096 0% Political 3,931 9,748 (5,817) -60% 5,936 13,028 (7,092) -54% Digital 14,391 11,616 2,775 24% 26,632 22,061 4,571 21% Other 5,370 4,788 582 12% 8,395 8,402 (7) 0% Total Advertising 334,557 $ 329,928 $ 4,629 1% 634,259 $ 635,691 $ (1,432) 0% Retransmission consent fees 70,078 57,122 12,956 23% 138,891 112,687 26,204 23% Carriage fees 21,618 14,591 7,027 48% 43,120 28,719 14,401 50% Barter/trade 9,561 10,472 (911) -9% 18,787 20,783 (1,996) -10% Copyright royalties 3,832 7,454 (3,622) -49% 8,097 13,986 (5,889) -42% Other 5,976 7,394 (1,418) -19% 12,768 15,296 (2,528) -17% Total operating revenues 445,622 $ 426,961 $ 18,661 4% 855,922 $ 827,162 $ 28,760 3% Three months ended: Six months ended: % Variance % Variance Second Quarter Revenues Retransmission consent fees up 23% to $70.1 million. Carriage fees up 48% to $21.6 million. Core advertising up 2.3% or $7.1 million. Political advertising down $5.8 million due to 2015 being an off-election cycle year. |
10 Television and Entertainment Segment Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA primarily impacted by higher programming amortization and production costs associated with planned production funding for co-owned original programming. Manhattan (Season 2), Outsiders and Underground were all in production during the second quarter of 2015. (USD thousands) June 30, 2015 June 29, 2014 $ % June 30, 2015 June 29, 2014 $ % Operating Profit 47,088 $ 52,414 $ (5,326) -10% 126,436 $ 117,111 $ 9,325 8% Depreciation 12,023 13,136 (1,113) -8% 23,446 25,512 (2,066) -8% Amortization 41,475 56,172 (14,697) -26% 82,985 112,827 (29,842) -26% Stock-based compensation 3,340 2,113 1,227 58% 5,833 4,636 1,197 26% Severance and related charges 340 108 232 215% 536 1,522 (986) -65% Transaction-related costs — 974 (974) -100% — 1,391 (1,391) -100% Contract termination cost — 15,646 (15,646) -100% — 15,646 (15,646) -100% Other — 12 (12) -100% 13 1,568 (1,555) -99% Pension expense — 61 (61) -100% — 104 (104) -100% Adjusted EBITDA 104,266 $ 140,636 $ (36,370) -26% 239,249 $ 280,317 $ (41,068) -15% Broadcast rights - Amortization 110,913 74,386 36,527 49% 182,921 130,080 52,841 41% Broadcast rights - Cash Payments (117,062) (86,409) (30,653) 35% (201,777) (147,227) (54,550) 37% Broadcast Cash Flow 98,117 $ 128,613 $ (30,496) -24% 220,393 $ 263,170 $ (42,777) -16% Three months ended: Six months ended: Variance Variance |
11 Digital and Data Segment Operating Results Revenues and Expenses Impacted by the acquisitions of HWW, What’s On and Baseline (all acquired in the second half of 2014) as well as Infostrada Sports, SportsDirect, Covers and Enswers (all acquired in the second quarter of 2015). (USD thousands) June 30, 2015 June 29, 2014 $ % June 30, 2015 June 29, 2014 $ % Operating Revenues 43,625 $ 33,807 $ 9,818 29% 93,827 $ 65,292 $ 28,535 44% Operating Expenses 47,775 42,717 5,058 12% 94,243 76,288 17,955 24% Operating Profit (Loss) (4,150) (8,910) 4,760 -53% (416) (10,996) 10,580 -96% Adjusted EBITDA 6,643 $ (963) $ 7,606 * 19,121 $ 4,064 $ 15,057 * Adjusted EBITDA Margin 15.2% -2.8% 20.4% 6.2% * Represents positive change in excess of 100% Six months ended: Variance Variance Three months ended: |
12 Digital and Data Segment Revenues & Adjusted EBITDA Revenue and Adjusted EBITDA increased primarily due to the impact of acquisitions made throughout 2014 and 2015. (USD thousands) June 30, 2015 June 29, 2014 $ % June 30, 2015 June 29, 2014 $ % Video and other 29,329 $ 21,585 $ 7,744 36% 55,551 $ 42,357 $ 13,194 31% Music 14,296 12,222 2,074 17% 38,276 22,935 15,341 67% Total operating revenues 43,625 $ 33,807 $ 9,818 29% 93,827 $ 65,292 $ 28,535 44% Operating Profit (Loss) (4,150) $ (8,910) $ 4,760 -53% (416) $ (10,996) $ 10,580 -96% Depreciation 2,321 1,909 412 22% 4,426 3,722 704 19% Amortization 6,962 4,846 2,116 44% 13,223 8,865 4,358 49% Stock-based compensation 679 688 (9) -1% 1,230 1,337 (107) -8% Severance and related charges (16) 504 (520) * (189) 1,136 (1,325) * Transaction-related costs 547 — 547 - 547 — 547 - Other 300 — 300 - 300 — 300 - Adjusted EBITDA 6,643 $ (963) $ 7,606 * 19,121 $ 4,064 $ 15,057 * * Represents positive or negative change in excess of 100% Three months ended: Variance Six months ended: Variance |
13 Corporate and Other Revenues and Expenses Revenues represent real estate rental revenues earned from third parties, including Tribune Publishing Company. Revenues declined due to a reduction in space leased by Tribune Publishing Company at several properties and the sale of the production facility and land in Baltimore, MD in December 2014. Corporate expenses increased as a result of: • The implementation of improved technology applications, and • The establishment of new shared services operations following the separation of Tribune Publishing in August 2014. (USD thousands) June 30, 2015 June 29, 2014 $ % June 30, 2015 June 29, 2014 $ % Operating Revenues 12,277 $ 14,211 $ (1,934) -14% 24,512 $ 28,627 $ (4,115) -14% Operating Expenses 35,431 25,522 9,909 39% 69,813 52,289 17,524 34% Operating Loss (23,154) (11,311) (11,843) * (45,301) (23,662) (21,639) 91% Depreciation 3,622 2,495 1,127 45% 7,148 5,017 2,131 42% Stock-based compensation 4,932 3,320 1,612 49% 9,733 8,597 1,136 13% Severance and related charges 11 100 (89) -89% 889 493 �� 396 80% Transaction-related costs 3,278 1,260 2,018 * 4,916 6,542 (1,626) -25% Loss on sales of real estate (9) — (9) - 97 — 97 - Other — 2,386 (2,386) -100% 20 2,388 (2,368) -99% Pension credit (7,280) (7,579) 299 -4% (14,583) (15,426) 843 -5% Adjusted EBITDA (18,600) $ (9,329) $ (9,271) 99% (37,081) $ (16,051) $ (21,030) * * Represents positive or negative change in excess of 100% Variance Three months ended: Six months ended: Variance |
14 Real Estate Property Overview – as of December 28, 2014 Segment Owned Leased Square Feet Acres Square Feet Television & Entertainment Office and studio buildings 1,252,143 91 522,991 Antenna land -- 781 -- Digital & Data 105,074 -- 240,274 Other Real Estate Corporate -- -- 33,027 4,309,053 186 -- Vacant: Properties to be sold (1) 275,582 14 -- Vacant: Available for lease or redevelopment 1,505,102 63 -- (1) Two properties which occupied 248,582 square feet and 12 acres were sold in the first quarter of 2015. Office buildings and other Leased to outside parties |
15 Real Estate Premier Redevelopment Properties Premier Redevelopment Properties represent ~70% of portfolio’s value Property Location Sq.Ft Acres Redevelopment Status Current Occupancy Tribune Tower Chicago, IL 737K 3.2 Operating as an office tower TPUB; TRCO; other 3 rd parties Freedom Center North Chicago, IL 117K 7.0 Seeking JV Partner Vacant Freedom Center South Chicago, IL 854K 30.4 Operating as an industrial site TPUB Times Mirror Square Los Angeles, CA 834K 6.3 Operating as an office building - Seeking JV Partner TPUB; other 3 rd parties Olympic Plant Los Angeles, CA 626K 24.6 Active printing plant for LA Times TPUB Costa Mesa Costa Mesa, CA 334K 21.1 Seeking JV Partner Vacant Ft. Lauderdale – Las Olas Way Ft. Lauderdale, FL -- 1.4 JV partner identified 3 rd party parking operator Orlando Sentinel Site Orlando, FL 365K 18.8 Operating as an office building - Seeking JV Partner TPUB; other 3 rd parties |
16 Debt and Cash (USD thousands) (1) In the first quarter of 2015, approximately $252 million of taxes was paid for the sale of the Company’s interest in Classified Ventures. On April 9, 2015, the Company paid out approximately $649 million related to the special dividend. June 30, 2015 December 28, 2014 Cash and cash equivalents (1) 403,511 $ 1,455,183 $ Debt: Term Loan Facility, due 2020 2,371,386 3,471,017 5.875% Senior Notes due 2022 1,100,000 - Dreamcatcher Credit Facility, due 2018 20,885 23,914 Other - 54 Total Debt 3,492,271 $ 3,494,985 $ |
17 Focus on Shareholder Return $400 million share repurchase program. • Approximately $333 million purchased through August 12, 2015. Paid one-time special dividend of approximately $649 million on April 9, 2015. Adopted quarterly dividend policy. (1) • The Company paid its first quarterly dividend of $0.25 per share on June 15, 2015. • The Company announced its intention to pay its second quarterly dividend of $0.25 per share on August 24, 2015 to stockholders and warrant holders of record at the close of business on August 10, 2015. Strong Balance Sheet and Cash Generation Driving Capital Allocation Policy (1) The declaration of any future dividends are subject to the discretion of the Board taking into account, among other things, future earnings, cash flows, financial requirements and other factors, as well as restrictions contained in the Company’s debt agreements. |
2015 Guidance |
19 2015 Guidance Consolidated 2015 Guidance Range Implied Y-o-Y Change Revenues $2.00 billion to $2.03 billion ~ +2.5% to +4% Adjusted EBITDA $480 million to $495 million ~ (18.5)% to (21)% |
20 2015 Guidance Television and Entertainment Segment Guidance Range Implied Y-o-Y Change Revenues $1.75 billion to $1.77 billion ~ +2% to +3% Core Advertising (Local and national advertising, excluding political advertising) Low to mid-single digit increases over 2014 Retransmission Consent Fees $275 million to $277 million ~ +20% Cable Network Carriage Fees $85 million to $87 million ~ +50% WGN America / Tribune Studios Programming Expenses $(150) million to $(160) million ~ +65% to +75% Adjusted EBITDA $500 million to $515 million ~ (16)% to (18.5)% |
21 2015 Guidance Digital and Data Segment 2015 Guidance Range Implied Y-o-Y Change Revenues $200 million to $205 million ~ +15% to +18% Adjusted EBITDA $46 million to $48 million ~ +19% to +24.5% |
22 2015 Guidance Corporate and Other Guidance Range Implied Y-o-Y Change Real Estate Revenues Approximately $50 million ~ (9)% Real Estate Expenses Approximately $(30) million ~ 22% Corporate Expenses (excluding stock-based compensation) $(86) million to $(88) million ~ 13.5% to 16% Adjusted EBITDA $(66) million to $(68) million ~ 45% to 49% |
23 2015 Guidance Cash Flow Guidance Range Total Capital Expenditures Approximately $100 million (1) Cash Taxes $95 million - $100 million (2) Cash Interest Approximately $130 million Depreciation & Amortization Approximately $260 million Stock-based Compensation Approximately $35 million (1) The $100 million of expected capital expenditures includes approximately $50 million of non-recurring capital expenditures. (2) Cash taxes guidance excludes a tax payment of approximately $252 million related to the gain on the sale of Classified Ventures in the fourth quarter of 2014, paid in the first quarter of 2015. Also excluded from guidance is a tax payment of approximately $103 million related to the Company’s agreement on August 1, 2015 to sell all of its interest in NHLLC to CSC Holdings LLC. The taxes associated with this transaction were on the balance sheet as of June 30, 2015 as a deferred tax liability and are expected to be paid in the fourth quarter of 2015. |
24 Long-Term Outlook The Company currently expects: 2016 Consolidated Adjusted EBITDA year-over-year growth of greater than 30%. For the period 2016-2019: WGN America and Tribune Studios revenue growth to be greater than 20% annually. WGN America and Tribune Studios programming expenses approximating 50% of net revenues. Digital and Data net revenue growth of 10% to 12% annually. Digital and Data Adjusted EBITDA margins growing to low 30% range. |
Non-GAAP Reconciliations |
26 Consolidated Reconciliation of Net Income to Adjusted EBITDA June 30, 2015 June 29, 2014 June 30, 2015 June 29, 2014 Revenues 501,524 $ 474,979 $ 974,261 $ 921,081 $ Net (Loss) Income (3,265) $ 82,922 $ 33,152 $ 123,990 $ Income from discontinued operations, net of taxes — 15,840 — 28,441 (Loss) Income from Continuing Operations (3,265) 67,082 33,152 95,549 Income tax (benefit) expense (693) 42,305 21,609 59,954 Reorganization items, net 628 2,165 1,620 4,381 Other non-operating (gain) loss (211) 1,295 (211) 1,138 Gain on investment transaction (8,133) (700) (8,820) (700) Loss on extinguishment of debt 37,040 — 37,040 — Interest expense 40,374 39,146 79,586 79,665 Interest and dividend income (43) (147) (410) (318) Income on equity investments, net (45,913) (118,953) (82,847) (157,216) Operating Profit 19,784 32,193 80,719 82,453 Depreciation 17,966 17,540 35,020 34,251 Amortization 48,437 61,018 96,208 121,692 Stock-based compensation 8,951 6,121 16,796 14,570 Severance and related charges 335 712 1,236 3,151 Transaction-related costs 3,825 2,234 5,463 7,933 Loss on sales of real estate (9) — 97 — Contract termination cost — 15,646 — 15,646 Other 300 2,398 333 3,956 Pension credit (7,280) (7,518) (14,583) (15,322) Adjusted EBITDA 92,309 $ 130,344 $ 221,289 $ 268,330 $ Six Months Ended Three Months Ended |
27 Television and Entertainment Reconciliation of Operating Profit to Adjusted EBITDA and Broadcast Cash Flow June 30, 2015 June 29, 2014 June 30, 2015 June 29, 2014 Advertising 334,557 $ 329,928 $ 634,259 $ 635,691 $ Retransmission consent fees 70,078 57,122 138,891 112,687 Carriage fees 21,618 14,591 43,120 28,719 Barter/trade 9,561 10,472 18,787 20,783 Copyright royalties 3,832 7,454 8,097 13,986 Other 5,976 7,394 12,768 15,296 Total Revenues (1) 445,622 $ 426,961 $ 855,922 $ 827,162 $ Operating Profit (1) 47,088 $ 52,414 $ 126,436 $ 117,111 $ Depreciation 12,023 13,136 23,446 25,512 Amortization 41,475 56,172 82,985 112,827 Stock-based compensation 3,340 2,113 5,833 4,636 Severance and related charges 340 108 536 1,522 Transaction-related costs — 974 — 1,391 Contract termination cost — 15,646 — 15,646 Other — 12 13 1,568 Pension expense — 61 — 104 Adjusted EBITDA (1) 104,266 $ 140,636 $ 239,249 $ 280,317 $ Broadcast rights - Amortization 110,913 74,386 182,921 130,080 Broadcast rights - Cash Payments (117,062) (86,409) (201,777) (147,227) Broadcast Cash Flow 98,117 $ 128,613 $ 220,393 $ 263,170 $ Six Months Ended Three Months Ended (1) At the beginning of fiscal 2015, the Company moved its Zap2it.com entertainment website business from the Digital and Data reportable segment to the Television and Entertainment reportable segment. Certain previously reported amounts have been reclassified to conform to the current presentation; the impact of this reclassification was immaterial. |
28 Digital and Data Reconciliation of Operating Profit to Adjusted EBITDA June 30, 2015 June 29, 2014 June 30, 2015 June 29, 2014 Video and other 29,329 $ 21,585 $ 55,551 $ 42,357 $ Music 14,296 12,222 38,276 22,935 Total Revenues (1) 43,625 $ 33,807 $ 93,827 $ 65,292 $ Operating Profit (Loss) (1) (4,150) $ (8,910) $ (416) $ (10,996) $ Depreciation 2,321 1,909 4,426 3,722 Amortization 6,962 4,846 13,223 8,865 Stock-based compensation 679 688 1,230 1,337 Severance and related charges (16) 504 (189) 1,136 Transaction-related costs 547 — 547 — Other 300 — 300 — Adjusted EBITDA (1) 6,643 $ (963) $ 19,121 $ 4,064 $ Six Months Ended Three Months Ended (1) At the beginning of fiscal 2015, the Company moved its Zap2it.com entertainment website business from the Digital and Data reportable segment to the Television and Entertainment reportable segment. Certain previously reported amounts have been reclassified to conform to the current presentation; the impact of this reclassification was immaterial. |
29 Corporate and Other Reconciliation of Operating Profit to Adjusted EBITDA June 30, 2015 June 29, 2014 June 30, 2015 June 29, 2014 Total Revenues 12,277 $ 14,211 $ 24,512 $ 28,627 $ Operating Loss (23,154) $ (11,311) $ (45,301) $ (23,662) $ Depreciation 3,622 2,495 7,148 5,017 Stock-based compensation 4,932 3,320 9,733 8,597 Severance and related charges 11 100 889 493 Transaction-related costs 3,278 1,260 4,916 6,542 Loss on sales of real estate (9) — 97 — Other — 2,386 20 2,388 Pension credit (7,280) (7,579) (14,583) (15,426) Adjusted EBITDA (18,600) $ (9,329) $ (37,081) $ (16,051) $ Six Months Ended Three Months Ended |
Q2 2015 Performance Summary AUGUST 2015 |