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Tribune Media Co (OTCPK:TRBAA)
EBITDA
\$-2,842 Mil (TTM As of Sep. 2008)

Tribune Media Co's EBITDA for the three months ended in Sep. 2008 was \$187 Mil. Its EBITDA for the trailing twelve months (TTM) ended in Sep. 2008 was \$-2,842 Mil.

Tribune Media Co's EBITDA per Share for the three months ended in Sep. 2008 was \$1.79. Its EBITDA per share for the trailing twelve months (TTM) ended in Sep. 2008 was \$-27.23.

Definition

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.

Tribune Media Co's EBITDA for the fiscal year that ended in Dec. 2007 is calculated as

 EBITDA (A: Dec. 2007 ) = EBIT + Depreciation, Depletion and Amortization = 618.744 + 256.209 = 875

Tribune Media Co's EBITDA for the quarter that ended in Sep. 2008 is calculated as

 EBITDA (Q: Sep. 2008 ) = Revenue - Cost of Goods Sold - Selling, General, & Admin. Expense - Research & Development - Others = 1036.946 - 594.161 - 353.22 - 0 - -97.411 = 187

 EBITDA (Q: Sep. 2008 ) = EBIT + Depreciation, Depletion and Amortization = 133.561 + 53.415 = 187

Tribune Media Co Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2008 was 252.027 (Dec. 2007 ) + 308.139 (Mar. 2008 ) + -3588.695 (Jun. 2008 ) + 186.976 (Sep. 2008 ) = \$-2,842 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sometimes companies may have already deducted Depreciation and Amortization from Gross Profit. In this case Depreciation and Amortization needs to be added back when calculating EBITDA.

Explanation

EBITDA is a cash flow measure that ignores changes in working capital. EBITDA minus Depreciation, and Amortization (DA) equals Operating Income. Operating Income is profit before interest and taxes. Of course, Interest and taxes need to be paid.

While depreciation and amortization expenses do not need to be paid in cash, assets - especially tangible assets - do need to be replaced over time. EBITDA is not a measure of profit in any sense. EBITDA is a measure of cash generation by a business where the uses of that cash may be more or less discretionary depending on the nature of the business.

The EBITDA of a TV station is largely discretionary. Owners may use much of the EBITDA generated by a TV station as they see fit. The EBITDA of a railroad is largely non-discretionary. Owners must use much of the EBITDA generated by a railroad to replace the physical assets of the railroad or the business will literally fall apart over time.

EBITDA can be thought of as the cash a business generates that is available to:

 Replace property, plant, and equipment
 Add more property, plant, and equipment
 Pay interest
 Pay taxes
 And finally: pay owners

EBITDA is widely used in financial analysis because Depreciation and Amortization are not present day cash expenses.. Depreciation and amortization are the spreading out of the costs of assets over the time in which those assets provide benefits. Todays depreciation and amortization expenses relate to assets bought in the past. The assets being expensed may or may not need to be replaced in the future. And the cost to replace the assets may be more or less than it was in the past. For this reason, the depreciation and amortization expenses a company records in the present year may have no relationship to the actual cash costs needed to maintain its assets in future years.

A companys depreciation expense depends on both its expectations about the assets it owns and its choice of accounting methods. Two companies owning identical assets may have different depreciation expenses because they have different expectations about the useful lives of those assets and because they make different accounting choices.

Analysts use EBITDA to remove this element of personal choice from a companys accounting statements. The use of EBITDA is an attempt to make the results of different companies more comparable and uniform.

Be Aware

Although depreciation is not a cash cost it is a real business cost because the company has to pay for the fixed assets when they purchase them. Both Warren Buffett and Charlie Munger hate the idea of EDITDA because in this calculation, depreciation is not counted as an expense.

EBITDA over Revenue is a good metric for comparing the operating efficiencies between companies because EBITDA is less vulnerable to companies accounting choices. For this reason, EBITDA is used in ranking the Predictability of Companies. Also price/EBITDA is sometimes used in valuations.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Tribune Media Co Annual Data

 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 EBIT 659 2,497 821 523 1,249 1,613 1,094 1,246 1,283 619 DDA 0 0 0 0 0 228 233 244 239 256 EBITDA 659 2,497 821 523 1,249 1,842 1,327 1,490 1,522 875

Tribune Media Co Quarterly Data

 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 EBIT 326 325 419 114 177 170 169 233 -3,627 134 DDA 56 58 69 62 54 57 84 75 38 53 EBITDA 382 383 488 176 232 227 252 308 -3,589 187
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