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TIME WARNER INC. REPORTS FIRST QUARTER EBITDA UP 12 PERCENT

 NEW YORK, April 19 /PRNewswire/ -- Time Warner Inc. (NYSE: TWX) today reported that earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 12 percent to $630 million on revenues of $3.3 billion in the first quarter compared to $561 million on revenues of $3.0 billion in the year earlier period with all five businesses showing increases in EBITDA and revenues for the quarter.
 After preferred dividends, there was a loss of $124 million compared to a loss of $150 million for the year earlier period. The loss per common share for the quarter was reduced to $0.33 from $0.40 per share last year. The 1993 figures reflect the redemption of the Series D preferred stock during the quarter. If the redemption of the Series D preferred stock and the exchange of the Series C preferred stock had occurred on Jan. 1, 1993, the loss per common share for the quarter would have been $0.21.
 The results for both the first quarter of 1993 and 1992 include non- cash amortization charges of approximately $125 million associated with the 1989 acquisition of Warner Communications.
 Commenting on the company's first quarter performance, Chairman and CEO Gerald M. Levin, said: "We are pleased with our strong first- quarter results and that for the fifth straight quarter all five of our businesses showed comparative increases in EBITDA, four of our businesses posted record first quarters, and three of our businesses -- publishing, music and cable -- posted double digit EBITDA growth. I continue to be optimistic about the outlook for our businesses. In the quarter, we continued our progress in restructuring our balance sheet by redeeming our Series D Preferred stock with lower-cost, long-term debt and announcing the exchange of our Series C Preferred stock into subordinated debentures, both of which will substantially improve our per common share results.
 Overall, these events continue the significant improvements we started in 1992 to restructure our debt through significant lengthening of maturities, reducing our financing costs and increasing our cash flow."
 Publishing
 First quarter EBITDA for Time Inc., the company's publishing division, was up 27 percent to $56 million compared to $44 million a year ago. Increases in both magazine circulation and book sales, along with improved operating margins, contributed to the strong quarter.
 The strong operating results were led by People, Sports Illustrated and Time Inc.'s regional and lifestyle magazines. During the quarter, Entertainment Weekly and Parenting were both named to Adweek's list of 1992's Ten Hottest Magazines, and six of our trade publishing titles appeared on The New York Times bestsellers lists.
 Music
 The Warner Music Group posted record first quarter EBITDA of $160 million, up 13 percent compared with $141 million in first quarter 1992. Contributing to the quarter's results were strong increases in domestic music sales from a broad array of established music superstars and such new artists as Dr. Dre, Silk, Snow, Digable Planets and Tracy Lawrence. Worldwide bestselling artists included Eric Clapton, k.d. lang, Mick Jagger, Van Halen, Depeche Mode, Luis Miguel, Simply Red and Italy's Litifiba. In the quarter, Warner Music Group artists received a total of 22 Grammy Awards, including six for Eric Clapton's Unplugged.
 Filmed Entertainment
 First quarter EBITDA from the company's Filmed Entertainment division was a record $104 million versus $96 million a year ago. Worldwide theatrical revenues were led by The Bodyguard ($266 million at the international box office through last week and the largest grossing international film in the history of Warner Bros.) and Somersby ($44 million at the domestic box office through Friday). Unforgiven won four Academy Awards including Best Picture, Best Director for Clint Eastwood and Best Supporting Actor for Gene Hackman. Also contributing to the quarter were increases in worldwide syndication.
 HBO
 Time Warner's Programming HBO division had record first quarter EBITDA of $55 million compared with $52 million a year ago. Revenues improved at the company's core pay television operation, HBO and Cinemax, and at its new television production companies while increased EBITDA came principally from reduced losses at Comedy Central. In the quarter, HBO continued to dominate the Cable ACE Awards garnering 105 nominations and 32 awards for 1992, more than four times as many as its next closest competitor.
 Cable
 The Time Warner Cable Group's EBITDA rose to a record $255 million in the quarter, up 12 percent from $228 million a year ago. The record results were due primarily to an increase in the number of subscribers as well as continued strong growth in advertising and pay-per-view revenues. In the quarter, Time Warner Cable announced it will build a Full Service Network, an interactive, multimedia electronic superhighway into the home, in Orlando, Fla., by early 1994.
 Time Warner Inc. is the world's leading media and entertainment company, with interests in magazine and book publishing, recorded music and music publishing, filmed entertainment, cable television and cable television programming.
 TIME WARNER INC.
 Consolidated Statement of Operations By Business Segment
 (Unaudited, in millions, except per share amounts)
 Three months ended March 31 1993 1992
 Revenues:
 Publishing $ 731 $ 672
 Music 795 764
 Entertainment
 Filmed Entertainment 898 777
 Programming - HBO 359 351
 Cable 546 511
 Intersegment elimination (71) (68)
 Total $3,258 $3,007
 Operating income before
 depreciation and amortization:
 Publishing $ 56 $ 44
 Music 160 141
 Entertainment
 Filmed Entertainment 104 96
 Programming - HBO 55 52
 Cable 255 228
 Total 630 561
 Depreciation and amortization,
 including amortization related
 to the acquisition of WCI (307) (271)
 Operating income 323 290
 Interest and other, net (245) (205)
 Corporate expenses (34) (35)
 Income before income taxes 44 50
 Provision for income taxes (59) (47)
 Net income (loss) (15) 3
 Preferred dividend requirements (109) (153)
 Net loss applicable to common shares $ (124) $ (150)
 Loss per common share $(0.33) $(0.40)
 Average shares outstanding 372.5 370.4
 NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
 Note 1: Time Warner Entertainment Company
 Time Warner Entertainment Company, L.P. (TWE), a majority-owned partnership that owns and operates the Filmed Entertainment, Programming-HBO and Cable businesses, was capitalized on June 30, 1992 by wholly owned subsidiaries of Time Warner (the general partners) and by Toshiba Corporation and ITOCHU Corporation (the limited partners). No portion of the operating results of TWE for the three months ended March 31, 1993 was allocable to the Limited Partners.
 Note 2: Acquisition of ATC Minority Interest
 Time Warner acquired the minority interest in its subsidiary, American Television and Communications Corporation, on June 26, 1992 by issuing Redeemable Reset Notes due Aug. 15, 2002 valued at $1.3 billion. The acquisition was accounted for by the purchase method of accounting for business combinations.
 Note 3: Redemption and Exchange of Preferred Stock
 $3.245 billion aggregate liquidation value of Series D convertible preferred stock was redeemed in February 1993 for an aggregate redemption price of $3.531 billion, including accrued dividends from Dec. 31, 1992. The redemption was principally financed by the issuance of long-term debt. $3.143 billion aggregate liquidation value of Series C convertible preferred stock was exchanged on April 1, 1993 for $3.143 billion aggregate principal amount of 8-3/4 percent convertible subordinated debentures due 2015. The convertible debentures have the same conversion and redemption terms as the Series C convertible preferred stock.
 Note 4: Income Taxes
 The relationship between income before income taxes and the provision for income taxes is affected by the amortization of excess cost over net assets acquired and certain other financial statement expenses that are not deductible for income tax purposes.
 -0- 4/19/93
 /CONTACT: Edward Adler of Time Warner Inc., 212-484-6630/
 (TWX)


CO: Time Warner Inc. ST: New York IN: PUB SU: ERN

TS -- NY028 -- 7155 04/19/93 08:17 EDT
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