tronc, Inc. Raises Full Year Revenue and Adjusted EBITDA Guidance

Company Raised 2016 Revenue Guidance to $1.610 - $1.630 billion and 2016 Adjusted EBITDA Guidance to $170 - $175 million

Strongest Balance Sheet Position since Going Public in August 2014

CHICAGO--()--tronc, Inc. (NASDAQ:TRNC) today reported financial results for its second quarter ended June 26, 2016, and raised full year 2016 guidance.

“We have a strategic plan in place to transform tronc by combining our platform of premium brands with proprietary technology to accelerate digital growth and create value for our shareholders,” said CEO Justin Dearborn. “Our overall strategy is providing results earlier than forecasted, which gives us the confidence to raise our revenue and Adjusted EBITDA guidance for the 2016 full year.”

"The second quarter was another strong performance in growing our bottom-line and expanding our margins," said CFO Terry Jimenez. "We believe tronc's balance sheet and overall business prospects are the strongest they have been since the Company went public in 2014 and we are focused on continually improving from here."

2016 SECOND QUARTER RESULTS

Total Revenues in the second quarter of 2016 were $405 million, down 1.8% compared to $412 million in the second quarter of 2015 due to a decrease in advertising and other revenue partially offset by a full quarter of revenue from The San Diego Union-Tribune, acquired mid-second quarter of 2015. Total revenues, excluding revenues from The San Diego Union-Tribune, were $373.8 million, down 5.9% compared to second quarter of the prior year. Advertising revenue was down 4.4% from prior-year period and down 9.2%, excluding The San Diego Union-Tribune. This is an improvement over first quarter 2016 where advertising revenue, excluding The San Diego Union-Tribune was down 12.0%.

Total Operating Expenses, including depreciation and amortization, for the second quarter of 2016 were $390 million compared to $400 million in the second quarter of 2015. Second quarter total operating expenses for 2016 included $4 million related to the Employee Voluntary Separation Program ("EVSP") along with $9 million in restructuring and transaction costs. Total operating expenses, adjusted to exclude expenses relating to The San Diego Union-Tribune and other restructuring and related costs, resulted in a decline of $26.5 million from the prior-year quarter (as set forth in the Non-GAAP reconciliations below). The majority of the reduction in Adjusted total operating expenses can be attributed to lower headcount along with a $6 million decline in newsprint and ink and $5 million of savings in other expenses and outside services.

Net income for the second quarter of 2016 was $4 million, which included an after-tax $2 million EVSP charge and $5 million of restructuring and transaction costs, and was $1 million higher than the second quarter of 2015. Excluding the impact of these charges, Adjusted net income increased to $12 million for the quarter.

Earnings per share for the 2016 second quarter, on a fully diluted basis, was $0.12, which included the previously mentioned EVSP charge and restructuring and transaction costs. Before the impact of these charges, Adjusted Diluted earnings per share (or EPS) increased to $0.35 for the quarter.

Adjusted EBITDA for the second quarter of 2016 was $43.5 million, or an increase of $5 million from the second quarter of 2015 primarily due to the cost reductions discussed above.

Segment reporting

In the three months ended June 26, 2016, the Company realigned under its new management team into two distinct segments: troncM, which is comprised of the Company’s media groups excluding their digital revenues and related expenses, and troncX, which includes all the digital revenues and related expenses of the Company including Tribune Content Agency (“TCA”) and Forsalebyowner.com ("FSBO").

Included in tables below is segment reporting for troncM and troncX for the three and six months ended June 26, 2016, and June 28, 2015. Corresponding information for earlier periods has been restated to reflect the change in reportable segments.

Total Revenues for troncM for the quarter were $344 million or a decrease of 2.9% compared to the second quarter of 2015. A 7.3% year-over-year decline in advertising revenues and a 6.4% decline in other revenues for troncM were partially offset by an increase in circulation revenue. Income from operations for troncM was $28 million or $8 million more than second quarter of 2015. Adjusted EBITDA for troncM for the second quarter of 2016 was $35 million or $3 million more than the second quarter of 2015.

Total Revenues for troncX for the second quarter of 2016 were $62 million or an increase of 4.0% from the prior-year quarter. Advertising revenues for troncX increased by 6.9% which was partially offset by a decline in content revenues. Income from operations for troncX was $6 million or a decline of $4 million from prior-year period while Adjusted EBITDA for the second quarter of 2016 remained relatively flat at $11 million compared to second quarter of 2015.

Total second quarter 2016 average monthly unique visitors were 60 million, up 34% from prior-year quarter and up 7% sequentially from first quarter of 2016. Digital only subscribers grew to 116,000, up 66% from prior year and up 15% sequentially.

Net Cash Provided by Operating Activities for the second quarter of 2016 was $16 million and capital expenditures for the second quarter were $5 million. Debt was reduced by $5 million during the second quarter of 2016 and pension /OPEB liabilities were reduced by $4 million. Cash balance as of June 26, 2016, totaled $170 million.

2016 Full Year Guidance for Total Revenues increased to a range of $1.610 to $1.630 billion and Adjusted EBITDA increased to a range of $170 to $175 million.

Conference Call Webcast

The Company’s earnings conference call will be held at 4 p.m. CT today, August 3, and will be accessible live to the public via webcast and on dial-in conference lines. To access the live webcast and view materials related to the earnings announcement, please visit investor.tronc.com. Participants can dial 1-844-494-0195 in the U.S. or 1-508-637-5599 internationally at least 10 minutes prior to the scheduled start and enter Confirmation ID (passcode) of 56349291. The conference call will be “listen only” for participants other than tronc management and financial analysts. The conference call will be available on-demand via the Investor Relations section of the Company’s website, approximately one hour after conclusion of the call. The audio also will be available for one year on the Company’s website, and the replay via telephone will be available until August 10, 2016. To access the replay via telephone, dial 1-855-859-2056 in the U.S. or 1-404-537-3406 internationally, code 56349291.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding tronc’s financial results, this press release includes references to Adjusted EBITDA, Adjusted total operating expenses, Adjusted Net Income and Adjusted Diluted EPS. These are not measures presented in accordance with generally accepted accounting principles in the United States (US GAAP) and tronc’s use of the terms Adjusted EBITDA, Adjusted total operating expenses, Adjusted Net Income and Adjusted Diluted EPS may vary from that of others in the Company’s industry. Adjusted EBITDA, Adjusted total operating expenses, Adjusted Net Income and Adjusted Diluted EPS should not be considered as an alternative to net income (loss), income from operations, operating expenses, net income (loss) per diluted share, revenues or any other performance measures derived in accordance with US GAAP as measures of operating performance or liquidity. Further information regarding tronc’s presentation of these measures, including a reconciliation of Adjusted EBITDA, Adjusted total operating expenses, Adjusted Net Income and Adjusted Diluted EPS to the most directly comparable US GAAP financial measure, is included below in this press release.

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 involve risks and uncertainties, including, without limitation, statements regarding tronc’s expectations regarding future financial performance and business prospects and the timing, direction and impact of current and future strategic initiatives and tronc's 2016 guidance. Statements containing words such as "may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “will,” “projections,” “continue,” “business outlook,” “estimate,” “outlook,” or similar expressions constitute forward-looking statements. Differences in tronc's actual results from those described in these forward-looking statements may result from actions taken by tronc as well as from risks and uncertainties beyond tronc’s control. These risks and uncertainties include competition and other economic conditions including fragmentation of the media landscape and competition from other media alternatives; changes in advertising demand, circulation levels and audience shares; the Company’s ability to develop and grow its online businesses; the Company's success in implementing expense mitigation efforts; the Company's success in implementing its strategic and branding initiatives; the Company’s reliance on revenue from printing and distributing third-party publications; changes in newsprint prices; macroeconomic trends and conditions; the Company’s ability to adapt to technological changes; the Company’s ability to realize benefits or synergies from acquisitions or divestitures or to operate its businesses effectively following acquisitions or divestitures; the Company’s reliance on third-party vendors for various services; adverse results from litigation, such as the stockholder derivative lawsuits, governmental investigations or tax-related proceedings or audits; the Company's ability to attract, integrate and retain its senior management team and employees; the Company’s ability to satisfy pension and other postretirement employee benefit obligations; changes in accounting standards; the effect of labor strikes, lockouts and labor negotiations; regulatory and judicial rulings; the Company’s indebtedness and ability to comply with debt covenants applicable to its debt facilities; the Company’s ability to satisfy future capital and liquidity requirements; the Company’s ability to access the credit and capital markets at the times and in the amounts needed and on acceptable terms; and other events beyond the Company’s control that may result in unexpected adverse operating results. The Company’s actual results could also be impacted by the other risks detailed from time to time in its publicly filed documents, including in Item 1A (Risk Factors) of its most recent Annual Report on Form 10-K, in its Quarterly Report on Form 10-Q and in other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

About tronc, Inc.

tronc, Inc. (NASDAQ:TRNC) is a media company rooted in award-winning journalism, which harnesses proprietary technology to present personalized, premium content to a global audience in real time. tronc draws content from its vast media portfolio, where commitment to informing and inspiring communities has earned 92 Pulitzer Prizes and a monthly audience of 65 million. From pixels to Pulitzers, tronc brands optimize content and create engaging experiences for audiences across all channels. For more information, please visit www.tronc.com.

Exhibits:

Condensed Consolidated Statements of Income (Loss)
Notes to Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Balance Sheets
Non-GAAP Reconciliations - Net Income (Loss) to Adjusted EBITDA
Non-GAAP Reconciliations - Total Operating Expenses to Adjusted Total Operating Expenses
Non-GAAP Reconciliations - Net Income (Loss) to Adjusted Net Income and Adjusted Diluted EPS

(TRNC-F)

       
TRONC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In thousands, except per share data)
(Unaudited)
 

Preliminary

Three months ended Six months ended
June 26, June 28, June 26, June 28,
2016 2015 2016 2015
 
Operating revenues $ 404,501 $ 412,021 $ 802,720 $ 810,295
 
Operating expenses   390,169     400,404     792,293     787,782  
 
Income from operations 14,332 11,617 10,427 22,513
 
Loss on equity investments, net (168 ) 50 (297 ) (7 )
Interest expense, net (6,699 ) (6,331 ) (13,443 ) (12,198 )
Reorganization items, net   (49 )   (252 )   (143 )   (853 )
Income (loss) before income taxes 7,416 5,084 (3,456 ) 9,455
Income tax expense (benefit)   3,360     1,686     (1,049 )   3,542  
 
Net income (loss) $ 4,056   $ 3,398   $ (2,407 ) $ 5,913  
 
Net income (loss) per common share:
Basic $ 0.12   $ 0.13   $ (0.08 ) $ 0.23  
Diluted $ 0.12   $ 0.13   $ (0.08 ) $ 0.23  
 
Weighted average shares outstanding:
Basic   32,975     25,910     31,155     25,702  
Diluted   33,028     26,034     31,155     25,912  
 
Dividends declared per common share: $   $ 0.175   $   $ 0.350  
 

The tables below show the segmentation of income and expenses for the three and six months ended June 26, 2016, as compared to the three and six months ended June 28, 2015. Each three-month period consists of 13 weeks and each six-month period consists of 26 weeks.

  troncM   troncX   Corporate and Eliminations   Consolidated
Three months ended Three months ended Three months ended Three months ended
June 26,   June 28, June 26,   June 28, June 26,   June 28, June 26,   June 28,
2016 2015 2016 2015 2016 2015 2016 2015
Total revenues $ 344,370 $ 354,796 $ 61,531 $ 59,164 $ (1,400 ) $ (1,939 ) $ 404,501 $ 412,021
Operating expenses   316,367   334,451   55,306   49,041   18,496     16,912     390,169   400,404
Income from operations 28,003 20,345 6,225 10,123 (19,896 ) (18,851 ) 14,332 11,617
Depreciation and amortization 5,562 5,132 2,803 437 5,935 7,580 14,300 13,149
Adjustments   1,664   6,499   1,695   299   11,519     6,677     14,878   13,475
Adjusted EBITDA $ 35,229 $ 31,976 $ 10,723 $ 10,859 $ (2,442 ) $ (4,594 ) $ 43,510 $ 38,241
 
       
troncM troncX Corporate and Eliminations Consolidated
Six months ended Six months ended Six months ended Six months ended
June 26,   June 28, June 26,   June 28, June 26,   June 28, June 26,   June 28,
2016 2015 2016 2015 2016 2015 2016 2015
Total revenues $ 687,432 $ 699,090 $ 118,791 $ 115,368 $ (3,503 ) $ (4,163 ) $ 802,720 $ 810,295
Operating expenses   639,251   660,834   106,919   97,117   46,123     29,831     792,293   787,782
Income from operations 48,181 38,256 11,872 18,251 (49,626 ) (33,994 ) 10,427 22,513
Depreciation and amortization 11,311 9,922 5,633 739 11,480 15,197 28,424 25,858
Adjustments   4,973   6,701   2,045   258   31,269     5,029     38,287   11,988
Adjusted EBITDA $ 64,465 $ 54,879 $ 19,550 $ 19,248 $ (6,877 ) $ (13,768 ) $ 77,138 $ 60,359
 

           

troncM

 
Three Months Ended Six Months Ended
June 26, June 28, % June 26, June 28, %
2016 2015 Change 2016 2015 Change
Operating revenues:
Advertising $ 169,751 $ 183,160 (7.3 %) $ 338,720 $ 362,454 (6.5 %)
Circulation 120,231 113,509 5.9 % 239,736 221,346 8.3 %
Other   54,388   58,127 (6.4 %)   108,976   115,290 (5.5 %)
Total revenues 344,370 354,796 (2.9 %) 687,432 699,090 (1.7 %)
Operating expenses   316,367   334,451 (5.4 %)   639,251   660,834 (3.3 %)
Income from operations 28,003 20,345 37.6 % 48,181 38,256 25.9 %
Depreciation and amortization 5,562 5,132 8.4 % 11,311 9,922 14.0 %
Adjustments   1,664   6,499 (74.4 %)   4,973   6,701 (25.8 %)
Adjusted EBITDA $ 35,229 $ 31,976 10.2 % $ 64,465 $ 54,879 17.5 %
 
           

troncX

 
Three Months Ended Six Months Ended
June 26, June 28, % June 26, June 28, %
2016 2015 Change 2016 2015 Change
Operating revenues:
Advertising $ 52,117 $ 48,772 6.9 % $ 99,096 $ 94,238 5.2 %
Content   9,414   10,392 (9.4 %)   19,695   21,130 (6.8 %)
Total revenues 61,531 59,164 4.0 % 118,791 115,368 3.0 %
Operating expenses   55,306   49,041 12.8 %   106,919   97,117 10.1 %
Income from operations 6,225 10,123 (38.5 %) 11,872 18,251 (35.0 %)
Depreciation and amortization 2,803 437 * 5,633 739 *
Adjustments   1,695   299 *   2,045   258 *
Adjusted EBITDA $ 10,723 $ 10,859 (1.3 %) $ 19,550 $ 19,248 1.6 %
 

   
TRONC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 

Preliminary

June 26, December 27,
2016 2015
Assets
Current Assets:
Cash $ 169,695 $ 40,832
Accounts receivable 191,978 240,813
Inventories 15,582 13,688
Prepaid expenses and other   15,627   16,824  
Total current assets 392,882 312,157
Net Properties, Plant and Equipment 134,077 144,539
Other Assets
Goodwill

116,331

123,992
Intangible assets, net

138,176

133,862
Investments and other assets   108,606   118,416  
Total other assets  

363,113

  376,270  
Total assets $ 890,072 $ 832,966  
 
Liabilities and Equity
Current Liabilities
Current portion of long-term debt $ 22,245 $ 21,826
Accounts payable 69,742 80,881
Other   183,203   210,723  
Total current liabilities   275,190   313,430  
Non-Current Liabilities
Long-term debt 358,547 367,847
Other non-current liabilities   156,963   166,087  
Total non-current liabilities 515,510 533,934
 
Equity
Total stockholders' equity   99,372   (14,398 )
Total liabilities and equity $ 890,072 $ 832,966  
 

           
TRONC, INC.
NON-GAAP RECONCILIATIONS
(In thousands)
(Unaudited)
 

Preliminary

 
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
 
Three months ended Six months ended
June 26, June 28, % June 26, June 28, %
2016 2015 Change 2016 2015 Change
Net income (loss) $ 4,056 $ 3,398 19.4 % $ (2,407 ) $ 5,913 *
 
Income tax expense (benefit) 3,360 1,686 99.3 % (1,049 ) 3,542 *
Loss on equity investments, net 168 (50 ) * 297 7 *
Interest expense, net 6,699 6,331 5.8 % 13,443 12,198 10.2 %
Reorganization items, net   49   252   (80.6 %)   143     853   (83.2 %)
 
Income (loss) from operations 14,332 11,617 23.4 % 10,427 22,513 (53.7 %)
 
Depreciation and amortization 14,300 13,149 8.8 % 28,424 25,858 9.9 %
Restructuring and transaction costs(1) 9,114 12,654 (28.0 %) 23,100 17,436 32.5 %
Stock-based compensation 2,200 1,471 49.6 % 3,819 3,001 27.3 %
Employee voluntary separation program 3,564 * 11,368 *
Gain from termination of post-retirement benefits (2)     (650 ) *       (8,449 ) *
 
Adjusted EBITDA(2) $ 43,510 $ 38,241   13.8 % $ 77,138   $ 60,359   27.8 %
 
* Represents positive or negative change in excess of 100%
 
(1) - Restructuring and transaction costs include costs related to tronc's internal restructuring, such as severance and IT outsourcing costs, and transaction costs related to completed and potential acquisitions.
 

(2) - In the first quarter of 2015, the Company did not deduct a gain of $7.8 million related to the termination of certain postretirement benefits in the determination of Adjusted EBITDA. Management reassessed this gain and determined it is expected to be a non-recurring item and should be deducted in the determination of Adjusted EBITDA. Accordingly, the 2015 Adjusted EBITDA as presented, includes such adjustment for the non-recurring gain from termination of certain post-retirement benefits.

 

Adjusted EBITDA

Adjusted EBITDA is defined as net income before equity in earnings of unconsolidated affiliates, income taxes, loss on early debt extinguishment, interest expense, other (expense) income, realized gain (loss) on investments, stock-based compensation expense, reorganization items, restructuring charges, transaction expenses, depreciation and amortization, net income attributable to non-controlling interests, and certain unusual and non-recurring items (including spin-related costs). 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, 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, is used as the basis for certain financial maintenance covenants that the Company is 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 GAAP. Instead, management believes Adjusted EBITDA should be used to supplement the Company’s financial measures derived in accordance with 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 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.

           
TRONC, INC.
NON-GAAP RECONCILIATIONS
(In thousands)
(Unaudited)
 

Preliminary

 

Reconciliation of Total Operating Expenses to Adjusted Total Operating Expenses(1):

 
Three Months Ended June 26, 2016 Three Months Ended June 28, 2015
GAAP Adjustments Adjusted GAAP Adjustments Adjusted
 
Compensation $ 150,493 $ (19,459 ) $ 131,034 $ 156,384 $ (10,281 ) $ 146,103
Newsprint and ink 26,095 (2,710 ) 23,385 31,444 (1,617 ) 29,827
Outside services 122,964 (12,339 ) 110,625 123,549 (9,403 ) 114,146
Other 76,317 (5,226 ) 71,091 75,878 (3,343 ) 72,535
Depreciation and amortization   14,300   (14,300 )     13,149   (13,149 )  
 
Total operating expenses $ 390,169 $ (54,034 ) $ 336,135 $ 400,404 $ (37,793 ) $ 362,611
 
           
Six Months Ended June 26, 2016 Six Months Ended June 28, 2015
GAAP Adjustments Adjusted GAAP Adjustments Adjusted
 
Compensation $ 312,593 $ (43,669 ) $ 268,924 $ 305,615 $ (3,600 ) $ 302,015
Newsprint and ink 52,073 (5,353 ) 46,720 62,739 (1,617 ) 61,122
Outside services 250,673 (28,798 ) 221,875 245,795 (14,711 ) 231,084
Other 148,530 (10,607 ) 137,923 147,775 (3,587 ) 144,188
Depreciation and amortization   28,424   (28,424 )     25,858   (25,858 )  
 
Total operating expenses $ 792,293 $ (116,851 ) $ 675,442 $ 787,782 $ (49,373 ) $ 738,409
 

(1)Adjusted total operating expenses is defined and calculated differently from the Adjusted cash operating expenses measure the Company has reported prior to the first quarter of 2016. The following items include expenses in the reconciliation of Adjusted EBITDA: Compensation, Outside services, Other general and administrative and Depreciation and amortization. All of the items include expenses relating to The San Diego Union-Tribune.

Adjusted Total Operating Expenses

Adjusted total operating expenses consist of total operating expenses per the income statement, adjusted to exclude the impact of items listed in the Adjusted EBITDA non-GAAP reconciliation and expenses relating to The San Diego Union-Tribune. Management believes that Adjusted total operating expenses is informative to investors as it enhances the investors' overall understanding of the financial performance of the Company's business as they analyze current results compared to prior periods.

       
TRONC, INC.
NON-GAAP RECONCILIATIONS
(In thousands)
(Unaudited)
 

Preliminary

 
Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted Diluted EPS:
 
Three months ended
June 26, 2016 June 28, 2015
Earnings Diluted EPS Earnings Diluted EPS
 
Net income (loss) - GAAP $ 4,056 $ 0.12 $ 3,398 $ 0.13
 
Adjustments to net income, net of 40% tax:
Restructuring and transaction costs 5,468 0.17 7,592 0.29
Employee voluntary separation program   2,138 0.07  
 
Adjusted net income - Non-GAAP $ 11,662 $ 0.35 $ 10,990 $ 0.42
 
       
Six months ended
June 26, 2016 June 28, 2015
Earnings Diluted EPS Earnings Diluted EPS
 
Net income (loss) - GAAP $ (2,407 ) $ (0.08 ) $ 5,913 $ 0.23
 
Adjustments to net income, net of 40% tax:
Restructuring and transaction costs 13,860 0.44 10,462 0.40
Employee voluntary separation program   6,821   0.22  
 
Adjusted net income - Non-GAAP $ 18,274   $ 0.59 $ 16,375 $ 0.63
 

Adjusted Net income and Adjusted Diluted EPS

Adjusted net income is defined as Net income - GAAP excluding the following adjustments: Restructuring, acquisition and remediation costs and Employee voluntary separation program, net of the impact of income taxes.

Adjusted Diluted EPS computes Adjusted net income divided by diluted weighted average shares outstanding.

Management believes Adjusted Net income and Adjusted Diluted EPS are informative to investors as they enhance investors' overall understanding of the financial performance of the Company's business as they analyze current results compared to future recurring projections.

Contacts

tronc, Inc.
Investor Relations:
Kimbre Neidhart, 469-528-9366
kneidhart@tronc.com
or
Media Relations:
Dana Meyer, 312-222-3308
dmeyer@tronc.com

Contacts

tronc, Inc.
Investor Relations:
Kimbre Neidhart, 469-528-9366
kneidhart@tronc.com
or
Media Relations:
Dana Meyer, 312-222-3308
dmeyer@tronc.com