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TIME WARNER INC. REPORTS THIRD QUARTER RESULTS

 TIME WARNER INC. REPORTS THIRD QUARTER RESULTS
 NEW YORK, Oct. 19 /PRNewswire/ -- Time Warner Inc. (NYSE: TWX)


today reported third quarter net income of $6 million versus a net loss of $62 million for the year earlier period with all of the company's five divisions showing increased results. For the first nine months of 1992 net income was $18 million versus a net loss of $144 million for the same period a year ago.
 The company also reported third quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $611 million on revenues of $3.2 billion as compared to $505 million of EBITDA and $2.9 billion of revenues in the same period a year ago. For the first nine months of 1992, EBITDA was $1.8 billion on revenues of $9.3 billion with all five divisions showing increases in revenues and EBITDA over the first nine months in 1991, when EBITDA was $1.6 billion and revenues were $8.6 billion. The 1991 results included a $60 million onetime charge taken last year in the third quarter for the restructuring of the company's publishing division.
 The net results for the first nine months of both 1991 and 1992 include noncash amortization charges of approximately $400 million associated with the 1989 acquisition of Warner Communications.
 The loss per common share for the quarter was $0.41 after preferred dividends, compared with a loss of $0.66 per share last year. The loss per common share for the first nine months of 1992 was $1.21 compared with $2.25 during the first nine months of 1991.
 The average shares outstanding for the 1992 third quarter was 371 million versus 318 million for the same period a year ago restated for the four-for-one common stock split that occurred in early September. For the first nine months of 1992, there were 371 million average shares outstanding versus 260 million last year.
 Commenting on the company's third quarter and first nine month performance, Time Warner President and Co-CEO Gerald M. Levin said, "We are pleased that despite continued sluggishness in the worldwide economy Time Warner has now posted three straight quarters in which all five of our divisions showed increases in their results. This also represents the fourth consecutive quarter in which the company has posted net income."
 Publishing
 Third quarter EBITDA for Time Inc., the publishing division, grew to $64 million from $1 million a year ago. For the first nine months, EBITDA was $196 million compared to $122 million for the same period a year ago. The 1991 results included a $60 million onetime charge taken last year for the restructuring of the division. The increased results for the quarter were due to gains in both advertising and circulation magazine revenues, and the performance of Time Life, a direct marketer of books, music and videos.
 Music
 The Warner Music Group posted record third quarter EBITDA of $122 million compared with $116 million in 1991. For the first nine months of 1992, EBITDA was a record $389 million compared to $369 million for the same period in 1991. Increases in international music sales and in music publishing contributed to the quarter. Domestically, bestselling artists in the quarter included Eric Clapton, Red Hot Chili Peppers, En Vogue, and Sir MixALot. Internationally, top selling records and artists included Barcelona Gold, Dee Lite, Noriyuki Makihara, Mike Oldfield and Litfiba.
 Entertainment
 Filmed Entertainment
 Third quarter EBITDA from the company's Filmed Entertainment division was $121 million versus $120 million a year ago. For the first nine months of 1992, EBITDA was a record $318 million versus $300 million for the year earlier period. Contributing to the quarter were worldwide theatrical revenues led by Lethal Weapon III, Batman Returns, and Unforgiven with worldwide box office to date for these three films totalling over $625 million.
 HBO
 Time Warner's Programming HBO division had record third quarter EBITDA of $54 million, up 15 percent from $47 million a year ago. For the first nine months of 1992, EBITDA was a record $159 million, up 7 percent from $148 million for the year earlier period. The quarter's record results were due to increased pay TV profits offset in part by startup losses incurred for new businesses.
 Cable
 Time Warner Cable's EBITDA rose to a record $250 million in the quarter, up 13 percent from $221 million a year ago. EBITDA for the first nine months of 1992 was a record $722 million versus $647 million for the same period in 1991. The quarter's record results were due mainly to increased revenues from basic subscribers. Included in these results are startup costs for Time Warner Cable programming and international cable ventures.
 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)
 Periods ended Three Months Nine Months
 Sept. 30: 1992 1991 1992 1991
 Revenues:
 Publishing $ 758 $ 726 $2,207 $2,144
 Music 758 708 2,251 2,083
 Entertainment
 Filmed Entertainment 874 764 2,420 2,170
 Programming - HBO 385 333 1,099 1,007
 Cable 522 481 1,559 1,443
 Intersegment elimination (51) (72) (187) (216)
 Total revenues $3,246 $2,940 $9,349 $8,631
 Operating income before
 depreciation and
 amortization:
 Publishing $ 64 $ 1 $ 196 $ 122
 Music 122 116 389 369
 Entertainment
 Filmed Entertainment 121 120 318 300
 Programming - HBO 54 47 159 148
 Cable 250 221 722 647
 Total 611 505 1,784 1,586
 Depreciation and
 amortization, including
 amortization related to
 the acquisition of WCI (308) (287) (858) (834)
 Operating income 303 218 926 752
 Interest and other, net (215) (237) (657) (731)
 Corporate expenses (35) (34) (105) (98)
 Income (loss) before
 income taxes 53 (53) 164 (77)
 Provision for income taxes (47) (9) (146) (67)
 Net income (loss) $ 6 $ (62) $ 18 $ (144)
 Loss per common share,
 based on net loss applicable
 to common shares of $152,
 $211, $449 and $585 million,
 respectively, after preferred
 dividend requirements $(0.41) $(0.66) $(1.21) $(2.25)
 Average shares
 outstanding 371.1 317.7 370.8 260.4
 NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
 Note 1: Time Warner Entertainment Company
 Time Warner Entertainment Company, L.P. ("TWE") was capitalized (the "TWE Capitalization") on June 30, 1992, by and among Time Warner Inc., certain wholly-owned subsidiaries of Time Warner Inc. (the "General Partners"), Toshiba Corporation ("Toshiba") and ITOCHU Corporation ("ITOCHU," formerly C. Itoh & Co., Ltd.) To effect the TWE Capitalization, the General Partners contributed to TWE substantially all of the assets, or assigned the net cash flow generated by such assets (or agreed to pay an amount equal to the net cash flow generated by such assets), of the Filmed Entertainment, Programming-HBO and Cable businesses of Time Warner, and certain other assets, subject to certain liabilities and received in aggregate an 87.5 percent residual general partnership interest; and subsidiaries of Toshiba and ITOCHU (collectively, the "Limited Partners") each contributed $500 million of cash and each received a 6.25 percent residual limited partnership interest. The TWE Partnership Agreement provides for special allocations of income and distributions on other than a pro rata basis. No portion of the operating results of TWE for the quarter ended Sept. 30, 1992 was allocable to the Limited Partners.
 Note 2: Acquisition of ATC Minority Interest
 Pursuant to an agreement and plan of merger, Time Warner acquired the minority interest in its subsidiary, American Television and Communications Corporation ("ATC"), 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: Income Taxes
 The relationship between income (loss) 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.
 Note 4: Common Stock Split
 Average common shares outstanding for prior periods have been restated to give effect to the four-for-one common stock split that occurred on Sept. 10, 1992.
 Note 5: Loss Per Common Share
 Loss per common share is based upon the net loss applicable to common shareholders, after deducting preferred dividend requirements, and average common shares outstanding during the period. Average common shares outstanding in the current year periods exceed that outstanding in the prior year periods primarily as a result of the issuance of 137.9 million common shares pursuant to the rights offering completed in August 1991.
 -0- 10/19/92
 /CONTACT: Edward Adler of Time Warner, 212-484-6630/
 (TWX) CO: Time Warner Inc. ST: New York IN: PUB SU: ERN


TS -- NY010 -- 1350 10/19/92 08:25 EDT
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