Metromedia International Group Reports Second Quarter 2001 Results.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 15, 2001 Metromedia Metromedia (also often MetroMedia) was a media company that owned radio and television stations in the United States from 1956 to 1986. Overview The company arose from the ashes of the DuMont Television Network, the world's first licensed commercial television International Group, Inc. (the Company) (AMEX AMEX See: American Stock Exchange :MMG MMG Macquarie Media Group MMG Ministry Medical Group MMG Medium Machine Gun MMG Mobile Messaging Gateway MMG Master of Management MMG Meridian Management Group, Inc. ), which through Metromedia International Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , Inc. (MITI MITI - SQRIBE ), is the owner of various interests in communications joint ventures in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , the former Soviet Union and other emerging markets, today reported results for the three and six months ended June June: see month. 30, 2001. For the three months ended June 30, 2001, the Company reported a net loss attributable to common stockholders of $27.0 million, or $0.29 per share, on consolidated revenues of $77.6 million. This compared to a net loss attributable to common stockholders of $20.4 million, or $0.22 per share, on consolidated revenues of $85.1 million for the quarter ended June 30, 2000. For the six months ended June 30, 2001, the Company reported a net loss attributable to common stockholders of $54.7 million, or $0.58 per share, on consolidated revenues of $164.4 million. This compared to a net loss attributable to common stockholders of $40.6 million, or $0.43 per share, on consolidated revenues of $166.5 million for the six months ended June 30, 2000. The results for the three and six months ended June 30, 2000 included a net gain of $4.0 million from the change in estimate on the asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of the Communication Group's operations in China and for the six month period of 2000 a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $2.5 million representing the gain realized on the buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of options to acquire an indirect interest in Telecominvest, a holding company with diverse telecommunications interests in northwest Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). . For the three months ended June 30, 2001, MITI contributed $31.4 million of the Company's total consolidated revenues as compared to $32.5 million for the same period in 2000. For the six months ended June 30, 2001, MITI contributed $64.3 million of the Company's total consolidated revenues as compared to $63.7 million for the same period in 2000. Other highlights for MITI were as follows: - Subscribers at June 30, 2001 (1): 825,777 - June 30, 2000: 788,667 - Combined 2001 second quarter revenues: $70.8 million - 2000: $67.6 million - Combined 2001 second quarter EBITDA (2): $16.1 million - 2000: $17.0 million - Combined 2001 year-to-date revenues: $145.4 million - 2000: $133.1 million - Combined 2001 year-to-date EBITDA (2): $29.7 million - 2000: $31.2 million (1) Six months 2001 includes the subscribers of Comstar, in which the Company acquired a 50% interest in December December: see month. , 2000. Six months 2000 excludes the subscribers of Baltcom GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. , in which the Company sold its interest in October October: see month. 2000, and the subscribers of the majority of the paging group, on which the Company no longer reports. (2) Defined as combined 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. (loss) plus combined depreciation and amortization. Stuart Subotnick, MMG's President and Chief Executive Officer, commented, "As was the case last quarter, the slower than usual growth in our subscriber base was the result of an expected decline in subscribers at PeterStar PeterStar Telecommunications (in Russian: ПетерСтар) is a CLEC in St. Petersburg, Russia. It was founded in 1992 as the first non-state owned cell phone operator in St. Petersburg. as wireless operators in St. Petersburg Petersburg, city (1990 pop. 38,386), politically independent and in no county, SE Va., on the Appomattox River; inc. 1850. A port of entry and an important tobacco market, it has industries producing chemicals, pharmaceuticals, furniture, structural steel, lumber, began processing traffic through an alternative service provider when the local incumbent operator completed the build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. of its competing transit network transit network - A network which passes traffic between other networks in addition to carrying traffic for its own hosts. It must have paths to at least two other networks. See also backbone, stub. . Our plan remains to increase the number of subscribers at PeterStar through increased penetration of the business and mobile customer markets." "Despite the drop in subscribers at PeterStar, our total subscriber base and our combined revenues increased year-over-year," continued Mr. Subotnick. "A large part of this is reflected in the December 2000 acquisition of Comstar. In addition, Magticom, our wireless venture in Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , continues to perform well." The following tables reflect the operating results of the Company's core communications business segments on a combined basis:
Combined Financial Results of Joint Ventures
(subscribers in thousands, dollars in millions)
(Eastern Europe, the republics of the former
Soviet Union and other selected emerging markets)
Six Months Ended
June 30, Percent Change
------------------------ --------------
2001 2000 2000 to 2001
------------ ---------- --------------
Subscribers (1) 825.8 788.7 5%
Revenue $ 145.4 $ 133.1 9%
EBITDA $ 29.7 $ 31.2 (5)%
Depreciation and amortization $ 51.0 $ 46.3 10%
Operating loss $ (21.3) $ (15.1) 41%
(1) Six months 2001 include the subscribers of Comstar, in which the
Company acquired a 50% interest in December, 2000. Six months 2000
excludes the subscribers of Baltcom GSM, in which the Company sold
its interest in October 2000, and the subscribers of the majority
of the paging group, on which the Company no longer reports.
The Company had 825,777 subscribers at June 30, 2001, which represented an increase of 5% from the total subscribers at June 30, 2000. Total combined revenues increased 9% to $145.4 million for the first six months of 2001 compared to the same period last year. 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 decreased slightly to $29.7 million for the six months ended June 30, 2001 compared to $31.2 million for the same period of 2000. The Company reported an 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. of $21.3 million for the 2001 six month period compared to an operating loss of $15.1 million for the same period last year.
Wireless Telephony (subscribers in thousands, dollars in millions)
Six Months Ended
June 30, Percent Change
------------------------ --------------
2001 2000 2000 to 2001
------------ ---------- --------------
Subscribers (1) 171.4 101.4 69%
Revenue $ 28.3 $ 41.4 (32)%
EBITDA $ 11.4 $ 19.3 (41)%
Depreciation and amortization $ 8.4 $ 11.5 (27)%
Operating income $ 3.0 $ 7.8 (62)%
(1) Six months 2000 excludes the subscribers of Baltcom GSM, in which
the Company sold its interest in October 2000
Wireless subscribers grew 69% to 171.4 million at June 30, 2001 compared to 101.4 million at June 30, 2000. The Company experienced subscriber growth at each of its wireless ventures, with the majority of the increase coming from Magticom, which operates and markets mobile voice communication services to private and commercial users nationwide in Georgia. The strong subscriber growth at Magticom resulted in a 25% increase in year-over-year revenues at Magticom. For the remainder of 2001, Magticom's operating results are likely to be adversely affected by the emergence of two alternative GSM operators in Georgia in late 2000. The decline in combined revenues and operating income for the Company's wireless ventures was the result of the sale of Baltcom GSM in the third quarter of 2000. Baltcom GSM accounted for $17.4 million and $2.7 million in revenues and operating income, respectively, for the first six months of 2000. Operating income was also affected by increased competition, pressure on operating profit margins Operating profit margin The ratio of operating profit to net sales. and higher operating costs operating costs npl → gastos mpl operacionales . Excluding Baltcom from 2000 results, combined revenues for the Company's wireless ventures increased by approximately 18% year-over-year.
Fixed Telephony (subscribers in thousands, dollars in millions)
Six Months Ended
June 30, Percent Change
------------------------ --------------
2001 2000 2000 to 2001
------------ ---------- --------------
Subscribers (1) 144.7 223.8 (35)%
Revenue $ 89.9 $ 56.6 59%
EBITDA $ 26.4 $ 16.4 61%
Depreciation and amortization $ 16.4 $ 11.0 49%
Operating income $ 10.0 $ 5.4 85%
(1) Six months 2001 includes the subscribers of Comstar, in which the
Company acquired a 50% interest in December, 2000.
The decline in fixed telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. subscribers is primarily the result of wireless operators processing traffic through an alternative service provider to PeterStar. As previously disclosed, the Company had recognized the possibility that PeterStar would lose this mobile traffic when the local incumbent operator completed the build-out of its competing transit network. This competing network became operational in early 2001. The decline in subscribers was offset somewhat by new subscribers acquired through the acquisition of Comstar in December 2000. Despite the reduction of PeterStar subscribers, the Company experienced strong growth in combined revenues, EBITDA and operating income for the 2001 six month period. The growth was driven primarily by Comstar. Technocom also contributed to the positive results stemming from higher international and long distance traffic volumes.
Cable Television and Broadband Networks
(subscribers in thousands, dollars in millions)
Six Months Ended
June 30, Percent Change
------------------------ --------------
2001 2000 2000 to 2001
------------ ---------- --------------
Subscribers 509.7 463.5 10%
Revenue $ 17.4 $ 19.0 (8)%
EBITDA $ 1.9 $ 6.6 (71)%
Depreciation and amortization $ 6.3 $ 6.2 2%
Operating income (loss) $ (4.4) $ 0.4 NM
Cable television subscribers increased 10% year-over-year. Operating results among the various cable ventures were mixed. The decline in combined revenue, EBITDA and operating income resulted primarily from tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic pressure, lower than expected subscriber growth, higher operating costs and price competition.
Radio Broadcasting (dollars in millions)
Six Months Ended
June 30, Percent Change
------------------------ --------------
2001 2000 2000 to 2001
------------ ---------- --------------
Revenue $ 8.1 $ 8.7 (7)%
EBITDA $ 0.8 $ 0.1 800%
Depreciation and amortization $ 0.9 $ 0.7 29%
Operating loss $ (0.1) $ (0.6) (83)%
The decrease in radio broadcasting The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. revenues was primarily the result of lower revenues at Radio Juventus in Budapest Budapest (b  `dəpĕst'), city (1990 pop. 2,016,100), capital of Hungary, N central Hungary, on both banks of the Danube. , Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. . Radio
Juventus' results were affected by competition from national
Hungarian radio networks. The Company plans to increase its market share
with the acquisition of an additional radio station. The decline in
revenues at Radio Juventus was somewhat offset by a continued strong
Russian Russianassociated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. advertising market that resulted in a positive impact to the results at both SAC Sac: see Sac and Fox. SAC - 1. An early system on the Datatron 200 series. [Listed in CACM 2(5):16 (May 1959)]. and Radio Katusha. Metromedia China Corporation The Company continues to hold a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Huaxia Huaxia (Traditional Chinese: ; Simplified Chinese: ; Pinyin: Huáxià) is a name often used to represent China or Chinese civilization. , a software services joint venture in China, and has a controlling interest in Twin Poplars, an information content provider joint venture. These operations target business opportunities in China's rapidly developing Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. markets. Presently, the Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
Internet user Internet n → internaute m/f in the country, but the annual growth rate is expected to be more than 100% for the next several years. The Company is targeting business developments in China that primarily addresses business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. e-commerce. The Company is also targeting investment in developing basic e-commerce systems infrastructure such as payment processing, sales fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. and database management application systems. Snapper snapper, name for members of the Lutianidae, a family of spiny-finned food and game fishes found chiefly in tropical coastal waters. Snappers are carnivorous, active, and voracious, with large mouths and sharp teeth. Most species travel in dense schools. Snapper, the Company's manufacturer of lawn and garden equipment, reported revenues of $46.2 million for the three months ended June 30, 2001 as compared to $52.6 million for the same period in 2000. For the six months ended June 30, 2001, Snapper reported revenues of $99.9 million as compared to $102.8 million for the six months ended June 30, 2000. Sales of lawn and garden equipment contributed to the majority of the revenues for both the three and six month periods of 2001 and 2000. Sales in 2001 were lower in all lawn and garden categories due to weak economic conditions and a strategic emphasis to reduce dealer inventory levels. These lower sales were offset by sales to Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. ,
new utility vehicle sales and an increase in parts and accessories
sales. In the first quarter of 2000, Snapper notified a number of its
commissioned distributors and commissioned agents of its decision not to
extend their existing contracts, which expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. August 31, 2000. Snapper chose not to renew these contracts in order to give it direct control over sales in these territories. This announcement negatively impacted sales during the second quarter of 2000, and it negatively impacted sales for the remainder of 2000. On March 15, 2001, Snapper received written notice from the financial institution that provides Snapper's dealers with floor plan financing, advising that it considered Snapper and the Company to be in default under the terms of the floor plan financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. as a result of claimed material adverse changes in their respective financial conditions. The financial institution also claimed that Snapper had defaulted under its agreement by failing to provide collateral to the financial institution, notwithstanding the fact that the agreement does not require the provision of collateral. The notice further advised that the financing relationship would be terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: as of June 13, 2001. Snapper and the Company disagreed with the basis for this action taken by the financial institution. On June 13, 2001, Snapper and the Company received written notice from the financial institution noting the financial institution would honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. the remaining term of the agreement. The agreement expires December 31, 2001. About Metromedia International Group Metromedia International Group, Inc. is a global communications and media company. Through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. and its joint ventures, the Company owns and operates communications and media businesses in Eastern Europe, the republics of the former Soviet Union, China and other emerging markets. These include a variety of telephony businesses including cellular operators, providers of local, long distance and international services over fiber-optic See fiber optics. and satellite-based networks, international toll calling, fixed wireless local loop, wireless and wired cable television networks and broadband networks This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. , FM radio stations, and e-commerce. This news release contains certain 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. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control. This also includes such factors as are described from time to time in the SEC reports filed by Metromedia International Group, Inc., including its most recently filed Forms S-3 and 10-K and the Company's quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2001. Please visit our website at www.metromedia-group.com.
Metromedia International Group, Inc.
Consolidated Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Revenues:
Communications
Group $31,411 $32,456 $64,566 $63,701
Snapper 46,225 52,618 99,852 102,800
----------- ----------- ----------- -----------
77,636 85,074 164,418 166,501
Cost and expenses:
Cost of sales and
operating
expenses -
Communications
Group 9,840 8,095 21,009 16,376
Cost of sales -
Snapper 28,755 34,296 62,891 66,915
Selling, general
and
administrative 33,328 38,229 67,913 72,642
Depreciation and
amortization 18,610 16,075 37,070 32,266
Reduction in
estimate of asset
impairment charge - (3,984) - (3,984)
----------- ----------- ----------- -----------
Operating loss (12,897) (7,637) (24,465) (17,714)
Other income
(expense):
Interest expense (7,667) (8,092) (15,178) (16,020)
Interest income 185 632 1,833 1,523
Equity in income
(losses) of
unconsolidated
investees (1,394) 1,894 (5,200) 2,144
Foreign currency
gain 448 519 114 41
Other income 64 - 94 2,500
----------- ----------- ----------- -----------
Loss before income
tax expense and
minority interest (21,261) (12,684) (42,802) (27,526)
Income tax expense (1,997) (2,103) (4,335) (4,611)
Minority interest 21 (1,815) (70) (996)
----------- ----------- ----------- -----------
Net loss (23,237) (16,602) (47,207) (33,133)
Cumulative
convertible
preferred stock
dividend requirement (3,752) (3,752) (7,504) (7,504)
----------- ----------- ----------- -----------
Net loss attributable
to common
stockholders $(26,989) $(20,354) $(54,711) $(40,637)
=========== =========== =========== ===========
Weighted average
number of common
shares - Basic 94,035 94,034 94,035 93,921
=========== =========== =========== ===========
Loss per common
share - Basic
and Diluted:
Net loss attributable
to common
stockholders $ (0.29) $ (0.22) $ (0.58) $ (0.43)
=========== =========== =========== ===========
Metromedia International Group, Inc.
Consolidated Condensed Balance Sheets
(in thousands, except share amounts)
June 30, December 31,
2001 2000
------------ ------------
(unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $ 51,298 $ 80,236
Accounts receivable:
Snapper, net 20,901 23,297
Communications Group, net 17,069 17,883
Other, net 264 764
Inventories 67,141 65,029
Other assets 19,332 20,078
------------ ------------
Total current assets 176,005 207,287
Investments in and advances to
joint ventures:
Eastern Europe and the republics
of the former Soviet Union 111,063 117,908
Property, plant and equipment, net of
accumulated depreciation 176,301 180,800
Intangible assets, less
accumulated amortization 208,545 224,819
Other assets 5,187 5,305
------------ ------------
Total assets $ 677,101 $ 736,119
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 24,679 $ 37,361
Accrued expenses 75,935 81,514
Current portion of long-term debt 48,098 4,834
------------ ------------
Total current liabilities 148,712 123,709
Long-term debt 196,304 230,036
Other long-term liabilities 5,985 5,667
------------ ------------
Total liabilities 351,001 359,412
------------ ------------
Minority interest 33,178 33,031
Commitments and contingencies
Stockholders' equity:
7 1/4% Cumulative Convertible
Preferred Stock 207,000 207,000
Common Stock, $1.00 par value, authorized
400,000,000 shares, issued and
outstanding 94,034,947 shares at
June 30, 2001 and December 31, 2000. 94,035 94,035
Paid-in surplus 1,102,769 1,102,769
Accumulated deficit (1,104,555) (1,053,596)
Accumulated other comprehensive loss (6,327) (6,532)
------------ ------------
Total stockholders' equity 292,922 343,676
------------ ------------
Total liabilities and
stockholders' equity $ 677,101 $ 736,119
============ ============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion