Tronc Q1 2018 Earnings Presentation

The statements contained in this presentation include certain 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, are described under the heading “Risk Factors” in tronc’s filings with the Securities and
Exchange Commission (SEC), which are available on the SEC’s website or at investor.tronc.com, and include, without limitation: changes in
advertising demand, circulation levels and audience shares; competition and other economic conditions; factors impacting the ability to close
our agreement to sell our California properties; 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 develop
and grow our online businesses; changes in newsprint price; 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.
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 presentation. 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.
2 / ©2018 TRONC, INC. ALL RIGHTS RESERVED
Disclaimer

Transforming Legacy Brands to become
a Modern Media Company

Company Overview
tronc (tribune online content) is a media company rooted in award-winning journalism with brands that create and distribute content
across the company’s media portfolio, offering integrated marketing, media, and business services to consumers and advertisers,
including digital solutions and advertising opportunities.
CORPORATE INFORMATION
 NASDAQ: TRNC
 Headquartered in Chicago, IL
 Newsrooms in ten markets including the top three
Designated Market Areas1 (DMA). Titles include:
o Chicago Tribune
o Los Angeles Times*
o New York Daily News
o The Baltimore Sun
o Orlando Sentinel
o South Florida's Sun-Sentinel
o Virginia’s Daily Press
o Allentown - The Morning Call
o Hartford Courant
o The San Diego Union-Tribune*
AWARD WINNING JOURNALISM
 105 Pulitzer Prizes
REPORTING SEGMENTS
troncM
 Comprised of the Company’s media groups
excluding their digital revenues and related
digital expenses, except digital subscription
revenues when bundled with a print
subscription.
troncX
 Includes the Company’s digital revenues and
related digital expenses from local tronc
websites, third party websites, mobile
applications, digital only subscriptions,
BestReviews and TCA.
1 Based on Nielsen’s DMA rankings
* Announced the sale of the Los Angeles Times, the San Diego Union
Tribune, and other various California media titles on February 7, 2018.
2018 OUTLOOK
(Excludes the Los Angeles Times, The San Diego Union-Tribune and other various California
media titles)
 2018 total revenues are expected to be in a range of $1.00 to $1.03 billion
 2018 adjusted EBITDA is expected in a range of $100 to $110

#2 DMA
Average Circulation – 689k
Unique Visitors – 28.5M
DAILY NEWS
Strong Market Position in Large and Diverse Regions
(10 markets, including the top 3 DMAs*6)
Notes
*1 Average Circulation: Q1, 2018 AAM Sunday
*2 Unique Visitors: comScore Q1, 2018 Quarterly Average Unique Visitors (unduplicated)
*3 Chicago Tribune paid print circulation also includes Chicago Suburban
*4 The Baltimore Sun paid print circulation also includes Capital Gazette and Carroll County Times
*5 The Morning Call focuses on the Lehigh Valley region within the 4th largest DMA (Philadelphia)
*6 Based on Nielsen’s DMA rankings
*7 Announced the sale of the Los Angeles Times and the San Diego Union Tribune on February 7, 2018
#1 DMA
tronc
Q1’18 Average Circulation – 2.7M*1
Q1’18 Unique Visitors – 75.3M*2
#3 DMA
*3
#18 DMA
#42 DMA
Average Circulation –224k
#26 DMA
*4
*5
#4 (#55) DMA
#30 DMA
#28 DMA
#16 DMA
*7
*7

Vision
A set of trusted brands engaging and entertaining consumers through insights and connecting relationships with advertisers
Key Strategies
TRONC STRATEGY OVERVIEW
Build Digital Greatness
 People
 Products
 Processes
Organic Execution
 Cash generation
 Extend life of print
 Drive digital value
Transformation
 Employee Evolution
 Tool set evolution
 M&A
 Perception – External / Internal
Position for Consolidated Revenue
Growth
Margin Expansion 250-500 BPs1 Million Digital Only Subscribers
Key Long-term (3-5 Year) Goals (Organic + Inorganic)

1Digital Only Subscribers: Balance as of Quarter End
2Unique Visitors: comScore Quarterly Average (unduplicated)
UNIQUE VISITORS (in millions)2
DIGITAL ONLY SUBSCRIBERS (000’s)1
Focus Areas
 Market to our Audience
 Leverage our legacy distribution
 Build, buy and syndicate content
Other Highlights
 Video creation
 Launch of data intelligence tool
 Solidify the sales infrastructure
 Technology infrastructure enhancements
 Back office enhancements
Key Highlights
56 60 60 57 60
55
81 79 75
Q1, 2016 Q2, 2016 Q3, 2016 Q4, 2016 Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018
101 116
136
160
180
220
265
320
342
Q1, 2016 Q2, 2016 Q3, 2016 Q4, 2016 Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018
Digital strategy and trends
**
** Includes the New York Daily News
**
**
**
**
**

 Total Consolidated Revenue was down
2.9% in the 1st Quarter 2018 vs. 1st Quarter
2017
 Adjusted EBITDA (AEBITDA)1 was down
27.6% in the 1st Quarter 2018 vs. 1st
Quarter 2017
 AEBITDA1 margin declined 234 basis
points (BP) in the 1st Quarter 2018 vs. 1st
Quarter 2017
REVENUE
Highlights
1Adjusted EBITDA (AEBITDA) and AEBITDA margin are non-GAAP measures. Please refer to the definition of Adjusted
EBITDA and the reconciliation of GAAP to Non-GAAP in the appendix
NON-GAAP
AdjEBITDA1
GAAP
NETLOSS
Q1
$355.6 $366.1
Q1, 2018 Q1, 2017
$24.4
$33.7
Q1, 2018 Q1, 2017
$(14.8)
$(3.0)
Q1, 2018 Q1, 2017
Consolidated financials ($’s in millions)

Highlights
 Q1’18 cash balance reflects $33.7 million used for the
BestReviews transaction completed in February 2018 –
primary driver of an increase in net debt of $22.0 million
in first quarter 2018 compared to fourth quarter 2017.
 Pension and post-retirement benefits payable decreased
$9.1 million.
 Announced sale of LA Times, San Diego Union Tribune
and various other California properties on 2/7/18 – after-
tax proceeds are expected to be used to repay all current
outstanding corporate debt. The buyer will assume
pension liabilities.
Working
Capital
Net Debt1
(Total Debt – Cash)
1Net Debt is a non-GAAP measure and is defined as Debt ($349M in Q1, 2018, $354M in Q4, 2017 and $371M in Q4, 2016) less Cash ($163M in Q1,
2018, $190M in Q4, 2017, and $198M in Q4, 2016). Please refer to the discussion of Net Debt and its reconciliation to Total Debt in the appendix.
S-Tportion
L-TDebtL-TDebt
Cash Debt
Pension and post-retirement
benefits payable
$349 $354
$163
$190 $198
Q1 2018 Q4 2017 Q4 2016
$327 $332
$349
$22 $22
$22
Q1 2018 Q4 2017 Q4 2016
$371
$104
$114
$102
Q1 2018 Q4 2017 Q4 2016
$99
$146 $159
Q1 2018 Q4 2017 Q4 2016
$186
$164
$172
Q1 2018 Q4 2017 Q4 2016
Balance sheet ($’s in millions at the end of the applicable quarter)

REVENUE
NON-GAAP
AdjEBITDA1
Q1 Q1
1Adjusted EBITDA (AEBITDA) is a non-GAAP measure. Please refer to the definition of Adjusted EBITDA and the reconciliation of GAAP to Non-GAAP in the appendix
Q1 Q1
REVENUE
NON-GAAP
AdjEBITDA1
$126 $143
$134 $120
$49 $49
Q1, 2018 Q1, 2017
Other
Circulation
Advertising
$23
$29
Q1, 2018 Q1, 2017
$31
$45
$17
$11
Q1, 2018 Q1, 2017
Content
Advertising
$8 $9
Q1, 2018 Q1, 2017
Segment financials ($’s in millions)

APPENDIX

This presentation includes references to Adjusted EBITDA (also referred to as “Adj EBITDA” or “AEBITDA”), Adjusted EBITDA margin and Net Debt. These measures are not presented in accordance with
generally accepted accounting principles in the United States (US GAAP), and tronc’s use of these terms may vary from that of others in the Company’s industry. These measures should not be considered as an
alternative to net income (loss), income from operations, 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.
Adjusted EBITDA (AEBITDA) and AEBITDA margin
The Company defines Adjusted EBITDA 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, reorganization items, depreciation and amortization, net income attributable to non-controlling interests, and other items that the Company does not consider in the evaluation of ongoing
operating performance. These items include stock-based compensation expense, restructuring charges, transaction expenses, premium on stock buyback and certain other charges and gains that the Company
does not believe reflects the underlying business performance (including spin-related costs). AEBITDA Margin is defined as Adjusted EBITDA divided by Revenue. 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, 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 and AEBITDA Margin 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 and AEBITDA Margin 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.
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.
Net Debt
Net Debt is defined as Total Debt less Cash. The Company’s management believes that the presentation of Net Debt provides useful information to investors as management reviews Net Debt as part of its
management of our overall liquidity, financial flexibility, capital structure and leverage.
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. 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.
Appendix non-GAAP

(1) – Restructuring and transaction costs include costs related to tronc’s internal restructuring, such as severance and IT outsourcing efforts, charges associated with the vacated space and costs related
to completed and potential acquisitions.
Three months ended
April 1,
2018
March 26,
2017 % Change
Net income (loss) $ (14.5) $ (3.0) *
Income tax expense (7.2) 2.3 *
Interest expense, net 6.6 6.5 1.8%
Premium on stock buyback - 6.0 *
Loss (gain) on equity investments 0.7 0.7 6.0
Other income and expense, net (4.4) (0.4) *
Income (loss) from operations (18.8) 12.1 *
Depreciation and amortization 14.6 13.2 11.2%
Restructuring and transaction costs (1) 26.1 6.3 *
Stock-based compensation 2.4 1.9 31.6%
Employee voluntary separation program - 0.2 *
Adjusted EBITDA $ 24.4 $ 33.7 -27.6%
Revenue $ 355.6 $ 366.1
Net Income (Loss) Margin (4.1%) (0.8%)
AEBITDA Margin 6.8% 9.2%
* Represents positive or negative change in excess of 100%
Reconciliation of net Income (loss) to adjusted EBITDA (AEBITDA) and AEBITDA margin ($’s in millions)

Reconciliation of Total Operating Expenses to Adjusted Total Operating Expenses:
Three Months Ended April 1, 2018 Three Months Ended March 26, 2017
GAAP Adjustments Adjusted GAAP Adjustments Adjusted
Compensation $ 144.5 $ (8.8) $ 135.7 $ 133.1 $ (4.3) $ 128.8
Newsprint and ink $ 22.0 $ - $ 22.0 $ 23.5 $ - $ 23.5
Outside services $ 130.6 $ (20.1) $ 110.4 $ 114.3 $ (1.9) $ 112.4
Other $ 62.6 $ 0.4 $ 63.0 $ 69.9 $ (2.2) $ 67.7
Depreciation and amortization $ 14.6 $ (14.6) $ - $ 13.2 $ (13.2) $ -
Total operating expenses $ 374.4 $ (43.2) $ 331.2 $ 354.0 $ (21.6) $ 332.4
Reconciliation of total operating expenses to adjusted total operating expenses
($’s in millions)
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.

Net Debt
Net Debt is defined as Total Debt less Cash. The Company's management believes that the presentation of Net Debt provides useful
information to investors as management reviews Net Debt as part of its management of our overall liquidity, financial flexibility,
capital structure and leverage.
Reconciliation of Total Debt to Net Debt:
As of
April 1, December 31, December 25,
2018 2017 2016
Current portion of long-term debt $ 21,829 $ 21,857 $ 21,617
Long-term debt 326,979 331,881 349,128
Total debt 348,808 353,738 370,745
Less: Cash 162,731 189,653 198,349
Net debt $ 186,077 $ 164,085 $ 172,396
Reconciliation of total debt to net debt
($’s in thousands)

troncM troncX Corporate / Elims Consolidated
Three months ended Three months ended Three months ended Three months ended
April 1,
2018
March 26,
2017
April 1,
2018
March 26,
2017
April 1,
2018
March 26,
2017
April 1,
2018
March 26,
2017
Total Revenue $ 308.4 $ 311.5 $ 48.0 $ 55.4 $ (0.8) $ (0.8) $ 355.6 $ 366.1
Operating Expenses $ 297.6 $ 292.2 $ 46.6 $ 51.3 $ 30.1 $ 10.6 $ 374.4 $ 354.0
Income from Operations $ 10.8 $ 19.3 $ 1.4 $ 4.1 $ (31.0) $ (11.4) $ (18.8) $ 12.1
D&A $ 5.5 $ 5.7 $ 4.6 $ 3.2 $ 4.5 $ 4.2 $ 14.6 $ 13.2
Adjustments $ 6.2 $ 3.4 $ 2.0 $ 1.2 $ 20.3 $ 3.8 $ 28.5 $ 8.4
Adjusted EBITDA $ 22.5 $ 28.4 $ 8.0 $ 8.6 $ (6.1) $ (3.3) $ 24.4 $ 33.7
Segment results – Q1’18
($’s in millions)

(1) See reconciliation of Net Loss to Adjusted EBITDA for additional information on adjustments.
troncM Three months ended troncX Three months ended
$'s in millions Apr. 1 Mar. 26 % $'s in millions Apr. 1 Mar. 26 %
2018 2017 Change 2018 2017 Change
Operating revenues: Operating revenues:
Advertising $125.5 $142.6 -12.0% Advertising $30.9 $44.8 -31.2%
Circulation $134.2 $119.6 12.2% Content $17.1 $10.6 61.7%
Other $48.7 $49.3 -1.3%
Total Revenue $308.4 $311.5 -1.0% Total Revenue $48.0 $55.4 -13.4%
Operating Expenses $297.6 $292.2 1.9% Operating Expenses $46.6 $51.3 -9.1%
Income from operations $10.8 $19.3 -44.1% Income from operations $1.4 $4.1 -66.3%
D&A $5.5 $5.7 -2.9% D&A $4.6 $3.2 42.5%
Adjustments (1) $6.2 $3.4 80.8% Adjustments (1) $2.0 $1.2 65.5%
Adjusted EBITDA $22.5 $28.4 -20.9% Adjusted EBITDA $8.0 $8.6 -6.9%
* Represents positive or negative change in excess of 100%
Segment results – Q1’18
($’s in millions)

Tronc Q1 2018 Earnings Presentation

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Tronc Q1 2018 Earnings Presentation

Similar to Tronc Q1 2018 Earnings Presentation (20)

More from tribuneIR

More from tribuneIR (9)

Recently uploaded

Recently uploaded (20)

Tronc Q1 2018 Earnings Presentation