American Media, Inc. Reports Fourth Quarter and Fiscal Year End Results.Business Editors BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--June 14, 2002 American Media, Inc. today announced results for the fourth quarter and fiscal year ended March 25, 2002. Revenues for the March 2002 fiscal quarter were $93,581,000 compared to $95,829,000 for the prior year fiscal quarter. Excluding Auto World Magazine and Mira! Magazine (which had three and four more issues in fiscal 2001 than fiscal 2002, respectively, due to changes in publication frequency) circulation revenues were flat to the prior fiscal year. On the same basis, advertising revenues increased 5.0%, from $10.0 million to $10.5 million. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (net income (loss) before extraordinary charges, interest expense, income taxes, depreciation and amortization and other income) for the period was $37,076,000 compared to the prior year quarter of $37,348,000. Net loss was $8,324,000 for the March 2002 fiscal quarter compared to net loss of $2,072,000 in the prior year fiscal quarter. This increase in net loss was primarily due to additional depreciation expense of $8.5 million recorded during the March 2002 fiscal quarter as a result of the acceleration of the depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. lives for the building improvements and equipment in our Boca Raton headquarters as a result of the anthrax anthrax (ăn`thrăks), acute infectious disease of animals that can be secondarily transmitted to humans. It is caused by a bacterium (Bacillus anthracis incident discussed below. Revenues for the fiscal year ended March 25, 2002 were $368,131,000 compared to $372,201,000 for the prior fiscal year. Results for the fiscal year ended March 25, 2002 reflect a loss of revenues from discontinued/sold operations of $4.5 million. Circulation revenue for continuing publications decreased $4.1 million primarily due to the cancellation of several expanded issues and decreased newsstand copies sold, we believe due to the anthrax incident in October. This decline in circulation revenue was partially offset by increased cover prices as compared to the prior fiscal year. Advertising revenues increased 7.5% from $37.1 million to $39.9 million, despite the industry being down 18% as measured by the Publishers Information Bureau. EBITDA for the fiscal year was $135,003,000 compared to $139,303,000 for the prior fiscal year. The decrease in EBITDA is primarily attributable to the circulation declines as noted above, as a result of the anthrax incident. Net loss was $21,482,000 for the fiscal year ended March 25, 2002 compared to net loss of $15,296,000 in the prior fiscal year. This increase in net loss was primarily due to $8.5 million of additional depreciation expense discussed above. Our Boca Raton headquarters, which housed substantially all editorial operations (including its photo, clipping and research libraries), executive offices and certain administrative functions, was closed on October 7, 2001 by the Palm Beach County Department of Health when traces of anthrax were found on a computer keyboard following the death of a photo editor of the Sun from inhalation anthrax inhalation anthrax Pulmonary anthrax, woolsorter's disease Pulmonology Occupational anthrax caused by inhalation of Brucella anthracis spores, affecting those exposed to aerosols during early processing of goat or other infected animal hair Clinical . In response to the closure of the Boca BOCA Building Officials and Code Administrators International, Inc. BOCA Bird Observers Club of Australia BOCA Business Object Component Architecture BOCA Borland Object Component Architecture (Borland) facility, we immediately implemented our hurricane disaster plan to produce all the weekly publications as originally scheduled. We temporarily moved our editorial operations into a facility leased on a short-term basis, which expired in February 2002. As a result of the uncertainty on the timing of being able to return to the Boca Raton headquarters, we entered into a two year lease for a 53,000 square foot facility two blocks from our current Boca Raton headquarters. We will remain in this leased facility until the Palm Beach County Health Department, OSHA OSHA n. Occupational Safety and Health Administration, a branch of the US Department of Labor responsible for establishing and enforcing safety and health standards in the workplace. (Occupational Safety and Health Administration Occupational Safety and Health Administration (OSHA), U.S. agency established (1970) in the Dept. of Labor (see Labor, United States Department of) to develop and enforce regulations for the safety and health of workers in businesses that are engaged in interstate ) and NIOSH NIOSH National Institute for Occupational Safety & Health, see there NIOSH Recommendations for Safety & Health Standards Agent NIOSH REL*/OSHA PEL† Health effects (National Institute for Occupational Safety and Health National Institute for Occupational Safety and Health, n.pr an institute of the Centers for Disease Control and Prevention that is responsible for assuring safe and healthful working conditions and for developing standards of safety and health. ) deems the Boca Raton facility is safe to return to, or if we are unable to return, we will extend the lease term on this new facility or seek an alternative location. In February of 2002, the Palm Beach Health Department quarantined the building for an additional 18 months or until the building has been remediated. Management is currently evaluating its options regarding its headquarters' building and its contents and has not yet committed to a remediation plan. In May of 2002, we reached a final settlement agreement with our insurance company, and received payment. We believe as a result of the anthrax incident, we have experienced a decline in circulation. When the incident first occurred, there were specific concerns and consumer discomfort and lack of knowledge with respect to the safety of our magazines. We quickly responded to safety concerns with an extensive public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most effort to educate consumers that there was no health risk in buying our magazines. Since the first issues following the anthrax incident, we have witnessed a steady improvement in unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. , although they remain below normalized levels. Mr. Pecker said, "We are very gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. with our results for the three and twelve months ended March 25, 2002 despite being the first company to experience a bio-terrorist attack that resulted in a fatality and the loss of our corporate headquarters with all its contents, compounded by the worst newsstand and advertising market since World War II. We have successfully moved our entire corporate headquarters, including all editorial departments, to our new 53,000 square foot leased facility in Boca Raton, Florida Boca Raton ("bōkə rə-tōn") is a city in Palm Beach County, Florida incorporated in May 1925. As of the 2000 census, the city had a total population of 74,764; the 2006 population recorded by the U.S. Census Bureau was 86,396. . Despite all of the obstacles we have faced this year, I am very happy to report that we have successfully launched with the April 2, 2002 issue, the new 60-page National Enquirer En`quir´er n. 1. See Inquirer. Noun 1. enquirer - someone who asks a question asker, inquirer, querier, questioner and Star tabloids at $2.09 per issue. The average sale for the first six 60-page issues of the National Enquirer and Star are flat compared to the previous six 48-page issues at $1.89. This is a major accomplishment considering that we have broken the $2.00 barrier with a 60-page folio for the first time in the history of the tabloids and in the face of the current newsstand market conditions." American Media Operations, Inc. owns and publishes the National Enquirer, Star, Weekly World News, Globe, National Examiner The National Examiner is a supermarket tabloid owned by the American Media Corporation. Like other tabloids, its contents have often come under question, and it has been derided for its sensationalistic writing. , Sun, Country Weekly, Country Music Magazine, MIRA! and Auto World Magazine. AMI also owns Distribution Services, Inc. (DSI (Dynamic Systems Initiative) An umbrella term for a suite of Microsoft products that help manage the Windows environment in large enterprises. DSI was introduced in 2003. ), the leading in-store supermarket and drugstore newspaper and magazine distribution company. Evercore Partners Evercore Partners NYSE: EVR is a boutique investment bank and private equity investment firm located in New York. It was founded by Blackstone Group alumni Austin Beutner and Roger Altman in 1996. , based in 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 and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , makes private equity investments through its Evercore Capital Partners affiliate and venture investments through its Evercore Ventures affiliate. Evercore also provides strategic, financial and restructuring advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal . Evercore Capital Partners' investments include: American Media, Vertis, Resources Connection, Energy Partners, Continental Energy Services and Telenet/Callahan Associates International. Ventures investments include Xdrive, Go2Systems, Business.com and Atheros. Recent advisory work includes advising ACNielsen on its merger with VNU VNU Volontaires des Nations Unies (French) VNU Verenigde Nederlandse Uitgeversbedrijven (Dutch) VNU Virtual Network User N.V. and General Mills  This article or section may contain a proseline.Please help [ convert this timeline] into prose or, if necessary, a . on its acquisition of Pillsbury from Diageo plc.
AMERICAN MEDIA OPERATIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands)
UNAUDITED
Three Months Ended Twelve Months Ended
-------------------- --------------------
March 26, March 25, March 26, March 25,
2001 2002 2001 2002
-------- -------- -------- --------
Revenues (1) $ 95,829 $ 93,581 $372,201 $368,131
-------- -------- -------- --------
Operating expenses 58,481 56,505 232,898 233,128
Depreciation and
amortization 18,965 29,529 76,733 88,170
-------- -------- -------- --------
Total operating expenses 77,446 86,034 309,631 321,298
-------- -------- -------- --------
Operating income 18,383 7,547 62,570 46,833
Interest (17,658) (16,586) (71,742) (65,167)
Other (expense) income, net (55) (266) 751 (139)
-------- -------- -------- --------
Income (loss) before income
taxes and extraordinary
charge 670 (9,305) (8,421) (18,473)
Provision (benefit) for
income taxes 2,742 (981) 6,875 3,009
-------- -------- -------- --------
Net loss ($2,072) ($8,324) ($15,296) ($21,482)
======== ======== ======== ========
EBITDA:
Net loss ($2,072) ($8,324) ($15,296) ($21,482)
Add (deduct) -
Interest expense 17,658 16,586 71,742 65,167
Income taxes 2,742 (981) 6,875 3,009
Depreciation and
amortization 18,965 29,529 76,733 88,170
Other income (expense) 55 266 (751) 139
-------- -------- -------- --------
EBITDA $ 37,348 $ 37,076 $139,303 $135,003
======== ======== ======== ========
(1) The prior year's retail display allowance fee amounts and retail
pocket fee amounts have been reclassified from operating expense
to circulation revenues as a result of our adoption of the EITF
01-9 "Accounting for Consideration Given by a Vendor to a Customer
(Including a Reseller of the Vendor's Products)." The
reclassification resulted in a net decrease in operating revenues
and a corresponding decrease in operating expenses of $25,194,
$25,582, $5,164, and $6,714 for the twelve months ended March 25,
2002, the twelve months ended March 26, 2001, the three months
ended March 25, 2002 and the three months ended March 26, 2001,
respectively.
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