INTERNATIONAL FAMILY ENTERTAINMENT REPORTS FIRST QUARTER EARNINGS OF $0.10 PER SHARE; THE FAMILY CHANNEL'S OPERATING CASH FLOW INCREASES 25.4%.VIRGINIA BEACH Virginia Beach, resort city (1990 pop. 393,069), independent and in no county, SE Va., on the Atlantic coast; inc. 1906. In 1963, Princess Anne co. and the former small town of Virginia Beach were merged, giving the present city an area of 302 sq mi (782 sq km). , Va.--(BUSINESS WIRE)--May 13, 1997--Tim Robertson Rob·ert·son , Oscar Palmer Born 1938.American basketball player. As a guard for the Cincinnati Royals, he became in 1962 the only player in National Basketball Association history to average in double figures in scoring, rebounding, and assists. , chief executive officer of International Family Entertainment, Inc. ("IFE Ife (ē`fā), city (1991 est. pop. 262,000), SW Nigeria. Located in a farm region, the city is an important center for marketing and shipping cacao. According to tradition, Ife is the oldest Yoruba town (founded c.1300). ") (NYSE NYSE See: New York Stock Exchange : FAM FAM 5-FU, adriamycin/doxorubicin, mitomycin C Oncology A chemotherapeutic regimen used with varying degrees of failure for advanced gastric CA. See Stomach cancer. ), today announced financial results for the first quarter of 1997. Total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter, which ended March 31, 1997, were $97,183,000, up 30.5% from $74,492,000 for the first quarter of 1996. Consolidated operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. rose 13.7% to $17,363,000 from $15,272,000. Net income for the latest quarter was $4,738,000, or $0.10 per share, compared with $4,688,000, or $0.10 per share, for the first quarter last year. "We are generally pleased with the growth in consolidated operating cash flow for the first quarter, especially considering the unusually high growth reported for the first quarter last year," commented Mr. Robertson. "IFE's growth for the quarter was primarily the result of the continued strong performance of The Family Channel. The network's total revenues increased 22.0% to $69,716,000 for the period, and its operating cash flow grew 25.4% to $29,717,000. "Advertising revenue, which increased 23.2% for the quarter, was accountable for the majority of The Family Channel's revenue growth. The expansion of advertising revenue was driven by increased advertising rates, as well as by the growth in the average number of U.S. households reached. The Family Channel reached an average of 68.6 million U.S. households during the first quarter of 1997, an increase of 6.2% from 64.6 million average households reached for the first quarter of 1996. This increase also contributed to the 14.9% rise in subscriber fees for the quarter. The rise in subscriber fees was also attributable to rate increases scheduled in existing affiliation agreements and upon the renewal of affiliation agreements. "MTM's results for the first quarter again reflected the impact of increased activity within its production and distribution businesses. As previously discussed, in mid- mid- pref. Middle: midbrain. 1996, MTM MTM Medication Therapy Management MTM Minutes to Midnight (Linkin Park album) MTM Mary Tyler Moore (actress) MTM Made to Measure MTM Motoren-Technik-Mayer MTM Methods Time Measurement began production of several new original programming series for license to the broadcast networks, syndication See syndication format. to domestic television stations and distribution in the international marketplace. In addition to the direct costs of producing these series, MTM also has incurred substantially increased development and overhead costs overhead costs see fixed costs. . These costs have exceeded revenue in the first year of production and are accountable for MTM's negative operating cash flow. The ultimate return on MTM's investment on these series depends on receiving orders for additional episodes and on the ratings success of the series, among other things." Mr. Robertson concluded, "The remaining factor that had a significant impact on IFE's consolidated operating cash flow for the first quarter was the reduction of the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the Company's international networks segment. This improvement was primarily attributable to IFE's consolidation of The Family Channel (UK) into the operations of its former minority partner, Flextech plc. This transaction in April 1996 not only helped reduce the segment's negative operating cash flow by $3,138,000, but also provided IFE with approximately 5.8 million shares of Flextech's stock, which has appreciated substantially since the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the transaction." The statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause IFE's actual results in future periods to be materially different from any future performance suggested in this release. Such factors include actual and potential competition, risks associated with acquisitions and international expansion, and certain technology and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. risks. Please refer to IFE's filings with the Securities and Exchange Commission for more information. International Family Entertainment, Inc. owns and operates an array of entertainment assets. IFE's cable television networks provide high-quality entertainment and information programming that emphasizes traditional values Traditional values refer to those beliefs, moral codes, and mores that are passed down from generation to generation within a culture, subculture or community. Since the late 1970s in the U.S. and can be enjoyed by the entire family. The Family Channel is one of the nation's largest advertiser-supported basic cable television networks, currently reaching over 68 million television households. FiT TV is the only 24-hour cable network dedicated to health and fitness. MTM Entertainment, Inc. is engaged in the development, production and distribution of television series and other programs throughout the world. -0-
INTERNATIONAL FAMILY ENTERTAINMENT, INC.
Financial Highlights
Three Months Ended
March 31,
Operating revenues: 1997 1996
The Family Channel $69,716,000 $57,164,000
FiT TV 1,001,000 1,230,000
International Networks -0- 3,764,000
Production and Distribution 35,136,000 14,271,000
Live Entertainment 1,294,000 1,043,000
Intercompany eliminations (9,964,000) (2,980,000)
Total $97,183,000 $74,492,000
Operating income (loss):
The Family Channel $27,691,000 $21,989,000
FiT TV (1,629,000) (1,255,000)
International Networks (465,000) (3,621,000)
Production and Distribution (10,531,000) (3,580,000)
Live Entertainment (825,000) (1,531,000)
Intercompany eliminations 86,000 408,000
Total $14,327,000 $12,410,000
Operating cash flow (1) :
The Family Channel $29,717,000 $23,701,000
FiT TV (1,618,000) (1,250,000)
International Networks (465,000) (3,603,000)
Production and Distribution (9,904,000) (2,834,000)
Live Entertainment (453,000) (1,150,000)
Intercompany eliminations 86,000 408,000
Total $17,363,000 $15,272,000
Net income $4,738,000 $4,688,000
Earnings per common share $ 0.10 $ 0.10
Average common and
common equivalent shares 48,193,720 47,559,442
(1) Represents operating income (loss) before depreciation and
amortization of property and equipment, goodwill and other assets.
CONTACT: International Family Entertainment, Inc. David R. Humphrey Hum·phrey , Doris 1895-1958. American dancer and choreographer known for developing techniques of fall and recovery. , 757/459-6000 |
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