Panavision Inc. Reports Results for 2002 Second Quarter, Six Months.Business & Technology Editors WOODLAND HILLS, Calif.--(BUSINESS WIRE)--August 14, 2002 Panavision  Panavision is a motion picture equipment company specializing in cameras and lenses, based in Woodland Hills, California. Inc. today reported financial results for the quarter ended June June: see month. 30, 2002. John Farrand Far´rand n. 1. Manner; custom; fashion; humor. , President and Chief Executive Officer of Panavision commented on the results, "Last year the industry saw an unprecedented surge See power surge. SURGE - Sorter, Updater, Report Generator, Etc. IBM 704, 1959. Sammet 1969, p.8. in first half feature film starts because of labor disruptions anticipated at that time. Therefore, comparisons to the period are unfavorable as expected. Continued softness in the television commercials market worldwide also affected results." On August 12, the company's securities began trading over the counter under the symbol PVIS PVIS Palos Verdes Intermediate School (Palos Verdes Estates, CA) PVIS Portable Vehicle Immobilization System (US Army) PVIS ProzessVISualisierung (Germany) .PK. Panavision's ongoing business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets are unaffected by this change in the manner by which investors will be able to trade Panavision stock. Second Quarter Results Revenue for the second quarter of 2002 was $43.3 million. Revenue decreased $11.9 million or 22% as compared to the second quarter of 2001. 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 for the quarter was $12.1 million, a decrease of $10.4 million from the second quarter of 2001. 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. for the quarter was $0.6 million, as compared to $10.6 million in the prior year. Net interest expense was $8.7 million in the quarter, down $2.7 million from 2001. The second quarter also included $4.5 million of non-operating expenses incurred in connection with the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: offering of secured notes and bank refinancing Refinancing An extension and/or increase in amount of existing debt. . The net loss in the quarter was $6.4 million, as compared to net income of $1.0 million in the second quarter of 2001. Six Months Results Revenue for the first six months of 2002 was $88.9 million. Revenue decreased $20.1 million or 18% as compared to 2001. EBITDA for the first six months of 2002 was $27.6 million, a decrease of $16.6 million from a year ago. Operating income for the six months was $5.6 million, as compared to $21.9 million in the prior year. Net interest expense was $17.1 million, down $6.2 million from 2001. The net loss in the six months was $9.7 million, as compared to a net loss of $0.4 million in 2001. The following financial highlights are in millions, except per share data.
Three Months Ended Six Months Ended
June 30 June 30
2002 2001 2002 2001
---- ---- ---- ----
Revenue $ 43.3 $ 55.2 $ 88.9 $ 109.0
EBITDA (a) 12.1 22.5 27.6 44.2
Operating income 0.6 10.6 5.6 21.9
Loss before income taxes (11.3) (1.1) (15.0) (1.8)
Net income (loss) (6.4) 1.0 (9.7) (0.4)
Diluted income (loss)
per share (0.76) 0.11 (1.14) (0.04)
Shares used in
computation - basic and
diluted 8.770 8.770 8.770 8.770
(a) EBITDA is calculated by adding back all depreciation and
amortization and net interest expense to loss before income taxes and
excluding refinancing expenses and unrealized foreign exchange gains
and losses.
The company's Chief Executive Officer and Chief Financial Officer have provided the certifications required by the terms of the Sarbanes-Oxley Act See SOX. of 2002. Panavision Inc. is a leading designer and manufacturer of high-precision camera systems, comprising cameras, lenses and accessories for the motion picture and television industries. Panavision systems are rented through its domestic and international owned and operated facilities and agent network. This press release contains 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. which involve risks and uncertainties. The Company's actual results may differ materially from those discussed in such forward-looking statements. In addition to factors described in the Company's Securities and Exchange Commission filings and others, the following factors could cause the Company's actual results to differ materially from those expressed in any forward-looking statements made by the Company: (a) a significant reduction in the number of feature film, commercial and series television productions; (b) competitive pressures arising from changes in technology, customer requirements and industry standards; (c) an increase in expenses related to new product initiatives and product development efforts; (d) unfavorable foreign currency fluctuations; (e) significant increases in interest rates; (f) lower-than-expected cash flows from operations; and (g) the inability to secure capital contributions or loans from affiliates, refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. its indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. or sell its equity securities. The Company assumes no responsibility to update the forward-looking statements contained in this release.
Panavision Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
Second Quarter Ended
------------------------
June 30,
------------------------
2002 2001(a)
-----------------------
Revenue:
Camera rental $ 25,652 $ 37,969
Lighting rental 8,643 9,108
Sales and other 9,023 8,140
-----------------------
Total revenue 43,318 55,217
Operating Costs:
Cost of camera rental 15,461 15,435
Cost of lighting rental 6,806 6,682
Cost of sales and other 5,688 4,482
-----------------------
Total operating costs 27,955 26,599
Gross Margin 15,363 28,618
Selling, general &
administrative expenses 13,498 16,568
Research & development
expenses 1,242 1,469
-----------------------
Operating Income 623 10,581
Interest income 97 47
Interest expense (8,795) (11,451)
Foreign exchange
gain (loss) 573 (70)
Refinancing expense (4,493) -
Other, net 729 (247)
-----------------------
Income (loss) before
income taxes (11,266) (1,140)
Income tax benefit
(provision) 4,877 2,122
-----------------------
Net Income (Loss) $ (6,389) $ 982
=======================
EBITDA $ 12,137 $ 22,521
Net income (loss)
per share -
basic and diluted $ (0.76) $ 0.11
Shares used in
computation -
basic and diluted 8,770 8,770
Panavision Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended June 30, 2001
-----------------------------------------
-----------------------------------------
Post-M&F Purchase Pre-M&F Purchase
-----------------------------------------
Period from Period from
April 20 to April 1 to
June 30, 2001 April 19, 2001
---------------- --------------------
Revenue:
Camera rental $ 29,356 $ 8,613
Lighting rental 7,375 1,733
Sales and other 6,489 1,651
---------------- --------------------
Total revenue 43,220 11,997
Operating Costs:
Cost of camera rental 12,338 3,097
Cost of lighting rental 5,347 1,335
Cost of sales and other 3,573 909
---------------- --------------------
Total operating costs 21,258 5,341
Gross Margin 21,962 6,656
Selling, general &
administrative expenses 13,768 2,800
Research & development
expenses 1,197 272
---------------- --------------------
Operating Income 6,997 3,584
Interest income 38 9
Interest expense (8,878) (2,573)
Foreign exchange
gain (loss) (247) 177
Refinancing expense - -
Other, net (272) 25
---------------- --------------------
Income (loss) before
income taxes (2,362) 1,222
Income tax benefit
(provision) 2,480 (358)
---------------- --------------------
Net Income (Loss) $ 118 $ 864
================ ====================
EBITDA $ 16,919 $ 5,602
Net income (loss)
per share -
basic and diluted $ 0.01 $ 0.10
Shares used in
computation -
basic and diluted 8,770 8,770
(a) This column is not intended to be a pro forma presentation of the
results of the Company for the period
Panavision Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
Six Months Ended
------------------------
June 30,
------------------------
2002 2001(a)
-----------------------
Revenue:
Camera rental $ 55,388 $ 75,016
Lighting rental 16,206 17,004
Sales and other 17,305 17,009
-----------------------
Total revenue 88,899 109,029
Operating Costs:
Cost of camera rental 30,449 30,427
Cost of lighting rental 13,018 13,581
Cost of sales and other 10,944 9,254
-----------------------
Total operating costs 54,411 53,262
Gross Margin 34,488 55,767
Selling, general &
administrative expenses 26,541 30,872
Research & development
expenses 2,384 3,038
-----------------------
Operating Income 5,563 21,857
Interest income 159 307
Interest expense (17,260) (23,649)
Foreign exchange
gain (loss) 208 (995)
Refinancing expense (4,493) -
Other, net 775 (641)
-----------------------
Income (loss) before
income taxes (15,048) (1,839)
Income tax benefit
(provision) 5,355 1,469
-----------------------
Net Income (Loss) $ (9,693) $ (370)
=======================
EBITDA $ 27,611 $ 44,210
Net income (loss)
per share -
basic and diluted $ (1.14) $ (0.04)
Shares used in
computation -
basic and diluted 8,770 8,770
Panavision Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
Six Months Ended June 30, 2001
-----------------------------------------
-----------------------------------------
Post-M&F Purchase Pre-M&F Purchase
-----------------------------------------
Period from Period from
April 20 to January 1 to
June 30, 2001 April 19, 2001
---------------- --------------------
Revenue:
Camera rental $ 29,356 $ 45,660
Lighting rental 7,375 9,629
Sales and other 6,489 10,520
---------------- --------------------
Total revenue 43,220 65,809
Operating Costs:
Cost of camera rental 12,338 18,089
Cost of lighting rental 5,347 8,234
Cost of sales and other 3,573 5,681
---------------- --------------------
Total operating costs 21,258 32,004
Gross Margin 21,962 33,805
Selling, general &
administrative expenses 13,768 17,104
Research & development
expenses 1,197 1,841
---------------- --------------------
Operating Income 6,997 14,860
Interest income 38 269
Interest expense (8,878) (14,771)
Foreign exchange
gain (loss) (247) (748)
Refinancing expense - -
Other, net (272) 913
---------------- --------------------
Income (loss) before
income taxes (2,362) 523
Income tax benefit
(provision) 2,480 (1,011)
---------------- --------------------
Net Income (Loss) $ 118 $ (488)
================ ====================
EBITDA $ 16,919 $ 27,291
Net income (loss)
per share -
basic and diluted $ 0.01 $ 0.06
Shares used in
computation -
basic and diluted 8,770 8,770
(a) This column is not intended to be a pro forma presentation of
the results of the Company for the period
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