Monday, January 04, 2021
Tribune Publishing Company (TPCO)
Are You Serious?
Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is 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. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Large influx of cash. The company closed on the sale of BestReviews for a total price of $160 million. Tribune owns 60% of the company and we estimate that net proceeds from the transaction will be roughly $88 million. In total, the company is expected to have roughly $230 million in cash, including $30 million of restricted cash, or over $6 per share. We are raising our financial assessment from 3.5 to 4.0, which is above average.
Surprising upside guidance. Management guided 2021 adjusted EBITDA between $105 million and $113 million, well above our back of the envelop estimate of $79 million upon the sale of BestReviews. In fact, the guidance exceeds our original estimate of $99.2 million, which included BestReviews …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.