Tribune Media Company (NYSE: TRCO) today reported its results for the three months and nine months ended September 30, 2018.

THIRD QUARTER 2018 FINANCIAL HIGHLIGHTS (compared to third quarter 2017)

• Consolidated operating revenues increased 11% to $498.0 million (increased 12% excluding third quarter 2017 barter revenues, which are no longer recognized in 2018)
• Consolidated operating profit was $37.1 million compared to an operating loss of $29.5 millionfor the third quarter of 2017
• Consolidated Adjusted EBITDA increased 14% to $136.8 million
• Television and Entertainment advertising revenues increased 11% to $327.2 million
• Core advertising revenues (which exclude political and digital revenues) decreased 2% to $267.8 million
• Net political advertising revenues were $42.5 million, an increase of 90% compared to third quarter 2014 and an increase of 36% over third quarter 2016
• Retransmission revenues increased 12% to $116.6 million
• Carriage fee revenues increased 30% to $40.1 million

"We are very pleased with our record third quarter revenue and Adjusted EBITDA which reflect the strong operational year we are having," said Peter Kern, Tribune Media's Chief Executive Officer. "We drove share gains in political and core advertising along with reaping the benefits of unprecedented political spending and stronger core advertising in our markets. Net of displacement, we estimate core advertising growth would have been in positive territory for the quarter, which is a significant improvement compared to the first half of the year. This robust advertising performance along with continued growth in retransmission and carriage fees and diligent focus on costs produced a terrific third quarter. We are proud of the work our teams have done during this time, and we look forward to a strong finish to the year."

THIRD QUARTER AND YEAR-TO-DATE RESULTS

Consolidated

Consolidated operating revenues for the third quarter of 2018 were $498.0 million compared to $450.5 million in the third quarter of 2017, representing an increase of $47.5 million, or 11%. The increase was primarily driven by higher political advertising revenues, retransmission revenues and carriage fee revenues, partially offset by lower core advertising revenues and the absence of barter revenues, which are no longer recognized under the new revenue guidance adopted in the first quarter of 2018. Excluding third quarter 2017 barter revenues, consolidated operating revenues increased by 12%.

For the nine months ended September 30, 2018, consolidated operating revenues were $1,431.0 million compared to $1,360.0 million in the nine months ended September 30, 2017, representing an increase of $71.0 million, or 5%. Excluding barter revenues in the nine months ended September 30, 2017, consolidated operating revenues increased by 7%.

Consolidated operating profit was $37.1 million for the third quarter of 2018 compared to an operating loss of $29.5 million for the third quarter of 2017, representing an increase of $66.6 million. The increase was primarily attributable to higher operating profit at Television and Entertainment, driven by an increase in revenues and a decrease in programming expenses primarily due to a lower impairment charge on syndicated programming at WGN America, partially offset by higher compensation expense. For the nine months ended September 30, 2018, consolidated operating profit increased $360.2 million to $322.5 million from an operating loss of $37.8 million in the nine months ended September 30, 2017, largely as a result of a $133 million net pretax gain related to licenses sold in the FCC spectrum auction and surrendered in January 2018, as well as higher Television and Entertainment revenues, lower programming expenses and a lower operating loss at Corporate and Other driven primarily by a decline in compensation and outside services expense.

Consolidated income from continuing operations was $54.1 million in the third quarter of 2018 compared to a consolidated loss from continuing operations of $18.7 million in the third quarter of 2017. In the third quarter of 2018, the Company recorded an additional income tax benefit of $24 million, or $0.27 per common share, to revise the provisional discrete net tax benefit recorded in the fourth quarter of 2017 due to Tax Reform. Diluted earnings per common share from continuing operations for the third quarter of 2018 was $0.61 compared to a diluted loss per common share from continuing operations of $0.21 for the third quarter of 2017. Adjusted diluted earnings per share ("Adjusted EPS") from continuing operations for the third quarter of 2018 was $0.63 compared to $0.31for the third quarter of 2017. Both diluted earnings per common share from continuing operations and Adjusted EPS from continuing operations include an income tax benefit of $3 million, or $0.04 per common share, in the third quarter of 2018 and a $1 million income tax charge, or $0.02 per common share, in the third quarter of 2017, related to certain tax adjustments.

Consolidated income from continuing operations was $279.7 million for the nine months ended September 30, 2018 compared to a consolidated loss from continuing operations of $149.7 million for the nine months ended September 30, 2017, which included total non-cash pretax impairment charges of $180.8 million ($117.0 million after tax), or $1.35 per common share, to write down the Company's investment in CareerBuilder, LLC ("CareerBuilder"). For the nine months ended September 30, 2018, diluted earnings per common share from continuing operations was $3.17 compared to diluted loss per common share from continuing operations of $1.72 for the nine months ended September 30, 2017. Adjusted EPS from continuing operations for the nine months ended September 30, 2018 was $2.13 compared to $0.60 for the nine months ended September 30, 2017. Both diluted earnings per common share from continuing operations and Adjusted EPS from continuing operations for the nine months ended September 30, 2018 include an income tax benefit of less than $1 million and an income tax benefit of $1 million, or $0.01 per common share, for the nine months ended September 30, 2017.

Net income attributable to Tribune Media Company was $54.1 million in the third quarter of 2018 compared to a net loss attributable to Tribune Media Company of $18.7 million in the third quarter of 2017. Net income attributable to Tribune Media Company was $279.7 million for the nine months ended September 30, 2018 compared to a net loss attributable to Tribune Media Company of $134.7 million for the nine months ended September 30, 2017.

Consolidated Adjusted EBITDA increased to $136.8 million in the third quarter of 2018 from $119.9 million in the third quarter of 2017, representing an increase of $16.9 million, or 14%. The increase in consolidated Adjusted EBITDA was primarily attributable to higher advertising revenues, retransmission revenues and carriage fee revenues, partially offset by higher programming expense, which excludes program impairment charges, at Television and Entertainment. For the nine months ended September 30, 2018, consolidated Adjusted EBITDA increased $144.7 million, or 53%, to $417.5 million compared to $272.8 million for the nine months ended September 30, 2017.

Income on equity investments, net increased $11.3 million, or 54%, in the three months ended September 30, 2018 primarily due to higher equity income from TV Food Network and CareerBuilder. The Company recognized equity income from TV Food Network of $32.2 million and $26.0 million for the three months ended September 30, 2018 and September 30, 2017, respectively, as well as equity income from CareerBuilder of $0.4 million for the three months ended September 30, 2018 and an equity loss of $5.1 million for the three months ended September 30, 2017. The increase in the equity income of TV Food Network was due to higher reported net income. The increase in the equity income of CareerBuilder was largely due to the absence of non-recurring transaction expenses incurred by CareerBuilder in 2017 related to the CareerBuilder sale on July 31, 2017. Income on equity investments, net increased $25.2 million, or 26%, in the nine months ended September 30, 2018 largely due to higher equity income from TV Food Network and CareerBuilder, as discussed above, along with recognizing our share of the gain on the sale of one of CareerBuilder's business operations on May 14, 2018.

There were no cash distributions from equity investments in the third quarter of 2018 as TV Food Network adjusted its required year-to-date cash distributions to cover the Company's taxes on its share of partnership income based on the reduction in tax rates from Tax Reform, which resulted in no distribution required for the third quarter of 2018. This only impacts the timing of distributions in 2018 and does not impact total expected excess cash distributions from TV Food Network related to 2018. Cash distributions from equity investments in the third quarter of 2017 were $32.9 million, which included an excess cash distribution of $15.8 million from CareerBuilder related to the partial sale of CareerBuilder. On September 13, 2018, the Company sold its remaining ownership interest in CareerBuilder for pretax proceeds of $11 million and recognized a pretax loss of $5 million. Cash distributions from equity investments for the nine months ended September 30, 2018 were $158.9 million compared to $182.6 million for the nine months ended September 30, 2017.

Television and Entertainment

Revenues were $494.6 million in the third quarter of 2018 compared to $447.3 million in the third quarter of 2017, an increase of $47.3 million, or 11%. Excluding barter revenues in the third quarter of 2017, revenues increased $54.4 million, or 12%. The increase was driven by a $37.3 million increase in political advertising revenue, a $12.0 million, or 12%, increase in retransmission revenues and a $9.1 million, or 30%, increase in carriage fee revenues, partially offset by a $5.3 million, or 2%, decrease in core advertising revenues.

Television and Entertainment segment revenues for the nine months ended September 30, 2018 were $1,421.7 million compared to $1,349.4 million for the nine months ended September 30, 2017, an increase of $72.3 million, or 5%. Excluding barter revenues in 2017, revenues increased $93.4 million, or 7%. The increase was driven by a $61.3 million increase in political advertising revenue, a $48.2 million, or 16%, increase in retransmission revenues and a $26.1 million, or 27%, increase in carriage fee revenues, partially offset by a decrease in core advertising revenues of $51.4 million, or 6%.

Television and Entertainment operating profit was $67.3 million for the third quarter of 2018 compared to an operating loss of $1.4 million for the third quarter of 2017, an increase of $68.7 million. The increase was primarily due to a $47.3 million increase in revenues, as described above, and a $38.0 million decline in programming expense, primarily due to lower program impairment charges and the absence of barter expense due to the new revenue guidance adopted in 2018, partially offset by a $24 million increase in network affiliate fees mainly due to the renewal of network affiliation agreements in eight markets with FOX Broadcasting Company during the third quarter of 2018. Programming expense for the third quarter of 2018 included a $28 million program impairment charge for the syndicated program Elementary at WGN America, compared to an $80 million program impairment charge for the syndicated programs Elementary and Person of Interest at WGN America in the third quarter of 2017.

Television and Entertainment Adjusted EBITDA was $153.0 million for the third quarter of 2018 compared to $135.1 million in the third quarter of 2017, an increase of $17.9 million, or 13%, primarily due to higher political advertising revenues, retransmission revenues and carriage fee revenues, partially offset by lower core advertising revenues and barter revenues, as described above, and higher programming expense, which excludes program impairment charges.

For the nine months ended September 30, 2018, Television and Entertainment operating profit was $398.9 million compared to $68.9 million for the nine months ended September 30, 2017, an increase of $330.0 million, which included the $133 million net pretax gain related to licenses sold in the FCC spectrum auction. Television and Entertainment Adjusted EBITDA was $462.0 million compared to $322.0 million for the nine months ended September 30, 2017, an increase of $140.0 million, or 43%.

Television and Entertainment Broadcast Cash Flow was $170.6 million for the third quarter of 2018 compared to $129.7 million in the third quarter of 2017, an increase of $40.9 million, or 32%. For the nine months ended September 30, 2018, Television and Entertainment Broadcast Cash Flow was $447.2 million compared to $321.6 million for the nine months ended September 30, 2017, an increase of $125.6 million, or 39%.

Corporate and Other

Real estate revenues for the third quarter of 2018 were $3.4 million compared to $3.2 million for the third quarter of 2017, representing an increase of $0.2 million, or 5%. Real estate revenues for the nine months ended September 30, 2018 were $9.3 million compared to $10.6 million for the nine months ended September 30, 2017, representing a decrease of $1.3 million, or 12%.

Corporate and Other operating loss for the third quarter of 2018 was $30.2 million compared to $28.1 million for the third quarter of 2017. Corporate and Other Adjusted EBITDA for the third quarter of 2018 represented a loss of $16.3 million compared to a loss of $15.3 million for the third quarter of 2017. For the nine months ended September 30, 2018, Corporate and Other operating loss was $76.4 millioncompared to $106.6 million for the nine months ended September 30, 2017. Corporate and Other Adjusted EBITDA for the nine months ended September 30, 2018 represented a loss of $44.5 millioncompared to a loss of $49.2 million for the nine months ended September 30, 2017.

Discontinued Operations

On January 31, 2017, the Company completed the sale of substantially all of the Digital and Data business operations (the "Gracenote Sale") and received gross proceeds of $584 million, including a purchase price adjustment of $3 million. The historical results of operations for the businesses included in the Gracenote Sale are reported as discontinued operations for all periods presented herein. Accordingly, all references made to financial data in this release are to Tribune Media Company's continuing operations.

RETURN OF CAPITAL TO SHAREHOLDERS

Quarterly Dividend

On November 8, 2018, the Board of Directors (the "Board") declared a quarterly cash dividend on the Company's common stock of $0.25 per share to be paid on December 4, 2018 to holders of record of the Company's common stock and warrants as of November 19, 2018. Future dividends will be subject to the discretion of the Company's Board.

RECENT DEVELOPMENTS

Termination of Sinclair Merger Agreement

As previously disclosed, on August 9, 2018, the Company provided notification to Sinclair Broadcast Group, Inc. ("Sinclair") that it had terminated the Merger Agreement, effective immediately, on the basis of Sinclair's willful and material breaches of its covenants and the expiration of the end date thereunder. Additionally, on August 9, 2018, the Company filed a complaint in the Delaware Court of Chancery against Sinclair (the "Complaint"), alleging that Sinclair willfully and materially breached its obligations under the Merger Agreement and seeking damages for all losses incurred as a result of Sinclair's breach of contract under the Merger Agreement. On August 29, 2018, Sinclair filed an answer to the Company's Complaint and a counterclaim (the "Counterclaim"). On September 18, 2018, the Company filed an answer to the Counterclaim. The Company believes the Counterclaim is without merit and intends to defend it vigorously. In connection with the termination of the Merger Agreement on August 9, 2018, the Company provided notification to Fox that it has terminated the Fox Purchase Agreement, effective immediately. Under the terms of each of the Merger Agreement and the Fox Purchase Agreement, no termination fees were payable by any party.

Real Estate Transactions

On October 9, 2018, the Company sold its Melville, NY property for net proceeds of $53 million. The Company expects to recognize a net pretax gain of approximately $24 million in the fourth quarter of 2018 relating to the sale. On October 23, 2018, the Company sold its Hartford, CT property for net proceeds of $6 million. The Company expects to recognize a net pretax gain of less than $1 million in the fourth quarter of 2018 relating to the sale. The Company defines net proceeds as pretax cash proceeds on the sale of properties, net of associated selling costs.

FCC Spectrum Auction

On April 13, 2017, the FCC announced the conclusion of the incentive auction, the results of the reverse and forward auction and the repacking of broadcast television spectrum. The Company participated in the auction and received approximately $191 million in pretax proceeds (including $26 million of proceeds received by Dreamcatcher Broadcasting LLC ("Dreamcatcher")) as of December 31, 2017. FCC licenses that were part of the FCC spectrum auction with a carrying value of $39 million have been included in assets held for sale as of December 31, 2017. In 2017, the Company received $172 million in gross pretax proceeds for these licenses as part of the spectrum auction and in the first quarter of 2018 recognized a net pretax gain of $133 million related to the surrender of the spectrum of these television stations in January 2018.

Tribune Media Company (NYSE: TRCO) is home to a diverse portfolio of television and digital properties driven by quality news, entertainment and sports programming. Tribune Media is comprised of Tribune Broadcasting's 42 owned or operated local television stations reaching approximately 50 million households, national entertainment cable network WGN America, whose reach is more than 77 million households, and a variety of digital applications and websites commanding 54 million monthly unique visitors online. Tribune Media also includes Chicago's WGN-AM and the national multicast networks Antenna TV and THIS TV, and Covers Media Group, an unrivaled source of online sports betting information. Additionally, the Company owns and manages a significant number of real estate properties across the U.S. and holds a variety of investments, including a 31% interest in Television Food Network, G.P., which operates Food Network and Cooking Channel. For more information please visit www.tribunemedia.com.