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MGM-PATHE REPORTS SECOND QUARTER, SIX MONTH RESULTS

 MGM-PATHE REPORTS SECOND QUARTER, SIX MONTH RESULTS
 CULVER CITY, Calif., Dec. 5 /PRNewswire/ -- MGM-Pathe


Communications Co. today reported results for the second quarter and 26 weeks ended June 29, 1991. Reporting has been delayed due to significant changes in the composition of the company's management and the company's pending litigation against its parent, Pathe Communications Corp. (NYSE: PCC), and certain members of the company's former management.
 Comparisons with the predecessor organization's results for the prior year three- and six-month periods ended May 31, 1990, may not be meaningful due to adjustments in the current period results related to purchase accounting.
 MGM-Pathe's total revenues for the second quarter increased 40 percent to $208.3 million from $148.4 million in the year-earlier period. The operating loss for the period was $33.9 million, compared with an operating loss of $10.4 million in the 1990 second quarter.
 For the 26 weeks ended June 29, 1991, total revenues were $500.8 million, a 54 percent increase from $325.2 million in the corresponding 1990 period. The operating loss for the 26-week period was $58.5 million, vs. an operating loss of $8.2 million in the prior-year period.
 Feature film operating expenses increased at a higher rate than operating revenues in the 1991 second quarter and six-month periods, due to approximately $14 million and $34 million of write-downs in these respective periods on certain of the company's recent motion picture releases and the Cannon Entertainment film library. The company has approximately 12 motion pictures released or scheduled for release in the latter half of 1991 and early 1992. Certain of the already-released films are expected to incur losses since they have not performed as anticipated in domestic theatrical release.
 Operating revenues and expenses in the fiscal 1991 periods include cinema operations that were acquired in November 1990. Also included in the 1991 second quarter and 26-week period are additional net reserves with respect to investments and affiliate advances totaling $4.0 million and $48.8 million, respectively, due to uncertainties as to recoverability and collectibility of advances and/or related obligations.
 Net interest expense increased in the current year periods due to substantially increased borrowings under the company's lines of credit and the accretion of the discount on the company's subordinated notes and debentures.
 In addition, general corporate expenses increased substantially over the prior year, due in part to certain expenses and reserves related to litigation involving the involuntary bankruptcy proceedings and certain other lawsuits.
 Higher expenses and reserves resulted in a net loss of $59.3 million, or $.99 per share, for the second quarter of 1991. This compares with a net loss of $22.9 million, or $.45 per share, in the second quarter of 1990. The net loss for the 26-week period in 1991 was $159.9 million, equal to $2.67 per share, vs. a net loss of $33.7 million, or $.66 per share, in the corresponding 1990 period.
 MGM-Pathe is involved in the worldwide production and distribution of motion picture and television programs and operates theatre chains in Europe.
 MGM-PATHE COMMUNICATIONS CO. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Dollars in thousands except per share amounts)
 (Unaudited)
 (Successor) (Predecessor) (Successor) (Predecessor)
 13 Three 26 Six
 weeks months weeks months
 ended ended ended ended
 June 29, May 31, June 29, May 31,
 1991 1990 1991 1990
 Revenues:
 Feature films,
 television
 programming
 and laboratory
 operations $162,199 $148,381 $400,078 $325,191
 Cinema operations 46,129 --- 100,730 ---
 Total revenues 208,328 148,381 500,808 325,191
 Expenses:
 Feature films,
 television
 programming
 and laboratory
 operations 176,125 151,351 434,469 317,857
 Cinema operations 42,134 --- 89,417 ---
 General corporate
 administration 23,966 7,454 35,395 15,532
 Total expenses $242,225 158,805 559,281 333,389
 Operating loss (33,897) (10,424) (58,473) (8,198)
 Other income
 (expense):
 Interest expense,
 net (25,049) (11,427) (54,227) (24,691)
 Interest and
 and other
 income
 (expense), net 919 2,893 5,292 6,190
 Reserves on invest-
 ments and
 affiliated loans (3,992) --- (48,796) ---
 Total other income
 (expense) (28,122) (8,534) (97,731) (18,501)
 Loss before income
 taxes (62,019) (18,958) (156,204) (26,699)
 (Provision) benefit
 for income taxes 2,737 (2,153) (3,699) (4,252)
 Net loss (59,282) (21,111) (159,903) (30,951)
 Less dividends on
 preferred shares --- (1,803) --- (2,704)
 Net loss
 attributable
 to common
 shares ($59,282) ($22,914) ($159,903) ($33,655)
 Net loss per
 common share ($.99) ($.45) ($2.67) ($.66)
 Weighted average
 common shares
 outstanding 60,000 50,984 60,000 50,962
 -0- 12/5/91
 /CONTACT: Craig A. Parsons of Rifkind Pondel & Parsons, 310-207-9300, for MGM-Pathe/
 (PCC) CO: MGM-Pathe Communications Co.; Pathe Communications Corp. ST: California IN: ENT SU: ERN


SE-EH -- LA012 -- 9629 12/05/91 11:31 EST
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