All American Communications reports third quarter results.SANTA MONICA Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. , Calif.--(BUSINESS WIRE)--Nov. 6, 1996-- Balance Sheet Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Substantially Completed All American Communications, Inc. (Nasdaq: AACI/AACIB) today reported results for the third quarter and nine months ended September 30, 1996. Revenues in the third quarter of 1996 were $66,641,000, compared to $85,150,000 in the year-ago quarter. As anticipated, third quarter television revenues declined versus the comparable period last year as a result of a higher level of revenues in 1995 related to the Baywatch strip syndication. Excluding revenues from the Baywatch strip syndication, television revenues increased by $3,781,000 over the prior year primarily due to the availability in 1996 of The Adventures of Sinbad and increases in foreign and domestic game show production by the Company's subsidiaries, All American Fremantle International and Mark Goodson Mark Goodson (January 14, 1915 – December 18, 1992) was an accomplished American television producer who specialized in game shows. Life and television career Productions. Recorded music recorded music n → música grabada and merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. revenues declined by $4,702,000 in the current period as compared to 1995 due to the absence of a major artist release in the most recent quarter. Despite the decline in revenues, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose 9.4% to $12,582,000 compared to $11,504,000 in the year ago third quarter. The increase in operating income is primarily attributable to higher television operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: related to Mark Goodson Productions and other programming. Amortization of goodwill more than doubled to $1,173,000 in the third quarter of 1996 as a result of the Mark Goodson Productions acquisition, and net interest expense remained about equal with last year's results. For the third quarter of 1996, the Company reported net income of $6,096,000, or $0.42 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared to net income of $5,628,000, or $0.51 per share on a fully diluted basis, in the prior year's third quarter. On a fully diluted basis, the weighted average number of shares outstanding in the 1996 and 1995 third quarter periods was 15,370,000 and 11,811,000, respectively, primarily as a result of the Company's December 1995 offering of 3,200,000 Class B shares, and reflecting in both periods the retirement of 6 1/2% Convertible Subordinated Notes due 2003 acquired by the Company. The Company has given notice of redemption on November 28, 1996 of the balance outstanding (approximately $36,000,000) of the Convertible Subordinated Notes at 104.643% of par, plus accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid interest. Revenues in the first nine months of 1996 were $154,129,000, compared to $160,177,000 in the first nine months of 1995. Nine month television revenues also declined versus the comparable period last year as a result of a higher level of revenues in 1995 related to the Baywatch strip syndication, while recorded music and merchandising revenues rose approximately 25% due to increased record sales. Operating income rose approximately 61% to $21,575,000 versus $13,396,000 a year ago, reflecting margin improvements in the Company's television operations. Amortization of goodwill more than doubled to $3,359,000 in the first nine months of 1996, compared to $1,606,000 in 1995, as a result of the Mark Goodson acquisition. Net interest expense in the first nine months of 1996 increased to $7,145,000 from $6,642,000 in the year-ago period due to higher average borrowings in connection with the Mark Goodson Productions acquisition, partially offset by reductions in corporate debt service and average borrowings related to the Fremantle International acquisition. For the first nine months of 1996, the Company reported net income of $8,319,000, or $0.61 per share on a fully diluted basis, compared to $4,057,000, or $0.44 per share, in 1995. The weighted average number of common and common equivalent shares outstanding in the 1996 and 1995 periods was 15,314,000 and 11,811,000, respectively, reflecting retirement of common stock equivalents relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Convertible Subordinated Notes that have been retired and the issuance of Class B shares. Anthony J. Scotti, Chairman and Chief Executive Officer, stated, "All American's results demonstrate the substantial progress in the growth and broadening of the Company's operations and revenue base. We are pleased to have achieved the highest quarterly profit in the Company's history. "Our balance sheet restructuring is substantially completed. We raised $100 million through the sale of Senior Subordinated Notes through Goldman, Sachs, and Chase Securities, increased our credit facility with a syndicate led by Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. to $155 million, and have called for the redemption of the remaining Convertible Subordinated Notes. In addition, since October 1, 1996 the Company has purchased approximately 500,000 shares of our Class B Common Stock in connection with its previously announced stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program." All American Communications, Inc. is a diversified diversified (di·verˑ·s worldwide entertainment company with operations in television and recorded music production and distribution. All American produces and/or distributes more than 100 shows in 30 countries. Its domestic programs include The Adventures of Sinbad, the Baywatch franchise of programming and The Price is Right. Internationally, All American produces 90 local language game shows including, Family Feud This article is about the American game show. For other versions, see Family Feud around the world. For rivalries between families, see Feud. Family Feud , Match Game, Card Sharks This article is about a television game show. For the standard use of the term, see Card shark. Card Sharks is an American television game show in which contestants guessed whether a playing card was higher or lower than the card that preceded it. and Let's Make a Deal Let's Make a Deal is a television game show which originated in the United States and has since been produced in many countries throughout the world. The show was based around deals offered to members of the audience by the host. . Except for the historical information in this press release, this press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein. -0-
ALL AMERICAN COMMUNICATIONS, INC.
Consolidated Statements of Operations
(In thousands, except per share data - Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Television $63,011 $76,818 $134,684 $144,637
Recorded music
and merchandising 3,630 8,332 19,445 15,540
66,641 85,150 154,129 160,177
Expenses:
Television 44,219 60,672 95,684 114,980
Recorded music
and merchandising 2,597 6,438 14,148 12,101
Selling, general
and administrative 6,070 6,000 19,363 18,094
Goodwill amortization 1,173 536 3,359 1,606
54,059 73,646 132,554 146,781
Operating income 12,582 11,504 21,575 13,396
Other income (expense)
Interest expense, net (2,011) (1,914) (7,145) (6,642)
Other (60) 114 (86) 241
(2,071) (1,800) (7,231) (6,401)
Income before provision
for income taxes 10,511 9,704 14,344 6,995
Provision for income taxes 4,415 4,076 6,025 2,938
Net income $ 6,096 $ 5,628 $ 8,319 $ 4,057
Per share - primary:
Net income per share $ 0.51 $ 0.68 $ 0.70 $ 0.50
Weighted average number of
common shares and common
share equivalents
outstanding 12,203 8,296 11,959 8,083
Per share - fully diluted:
Net income per share $ 0.42 $ 0.51 $ 0.61 $ 0.44
Weighted average number of
common shares and common
share equivalents
outstanding 15,370 11,811 15,314 11,811
CONTACT: All American Communications Inc., Santa Monica Thomas Bradshaw
or Jaffoni & Collins Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Joseph N. Jaffoni, David C. Collins, 212/505-3015 jciir@aol.com |
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