Tribune Publishing sent a letter to Gannett to inform it that Tribune board has unanimously determined that Gannett’s proposal understates the company’s value.
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“Tribune Publishing is in the early stages of a compelling transformation, with a well-defined strategic plan to drive increasing monetization of our important brands, capitalize on the global potential of the LA Times and significantly accelerate our conversion of content to revenue through an enhanced digital strategy,†said CEO, Justin Dearborn.
“While the Board is always open to evaluating any credible proposal that it believes to be in the best interests of the Company and its shareholders, Gannett’s opportunistic proposal understates the Company’s true value and is not a basis for further discussion. The Board is confident that the execution of our standalone strategic plan will generate shareholder value in excess of Gannett’s proposal.â€
Gannett proposed to acquire all outstanding shares of Tribune Publishing common stock for $12.25 per share in cash.
Tribune Publishing Company reported financial results for its first quarter ended March 27, 2016.
Total revenues in the first quarter of 2016 were flat at $398.2 million compared to $398.3 million in the first quarter of 2015. Total Revenues, excluding revenues from The San Diego Union-Tribune, were $368.7 million.
Advertising revenues were $215 million in the first quarter of 2016, down 4.4% from the prior-year quarter. First quarter advertising revenues, excluding advertising revenues from The San Diego Union-Tribune, declined by 12.4% as some softening was experienced in print advertising.
Circulation revenues of $122 million were up 11.4% in the quarter compared to the prior-year quarter and increased 1.7% from last year excluding revenues from The San Diego Union-Tribune.
Other revenue declined by $3 million as gains in Content Syndication and Other were offset by declines in Direct Mail and Marketing and Commercial Print and Delivery. Total Digital Revenues for first quarter of 2016 was $55 million or an increase of 15% from the prior-year quarter.
Net income (loss) for the first quarter of 2016 was a $6 million loss, which included a pre-tax $8 million EVSP charge and $14 million of restructuring and transaction costs.
Excluding the impact of these charges, adjusted net income increased to $6.6 million, up 23% for the first quarter of 2016 compared to the prior-year quarter.
Earnings per share for the 2016 first quarter, on a fully diluted basis, was a loss of ($0.22), which included the previously mentioned EVSP charge and restructuring and transaction costs.
Before the impact of these charges, adjusted diluted earnings per share increased 10% to $0.23 for the quarter. ■