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TIME WARNER REPORTS SECOND QUARTER RESULTS

 TIME WARNER REPORTS SECOND QUARTER RESULTS
 NEW YORK, July 16 /PRNewswire/ -- Time Warner Inc. (NYSE: TWX)


reported second-quarter net income of $9 million versus a net loss of $32 million for the year-earlier period with all the company's five divisions showing increased results. For the first half of 1992 net income was $12 million versus a net loss of $82 million for the first half of 1991.
 The company also reported second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $612 million on revenues of $3.1 billion as compared to $551 million of EBITDA and $2.9 billion of revenues in the same period a year ago. For the first half of 1992, EBITDA was $1.2 billion on revenues of $6.1 billion with all five divisions showing increases in revenues and EBITDA over the first half of 1991, when EBITDA was $1.1 billion and revenues were $5.7 billion.
 The net results for the first six months of both 1991 and 1992 include non-cash amortization charges of approximately $250 million associated with the 1989 acquisition of Warner Communications.
 The loss per common share for the quarter was $1.59 after preferred dividends, compared with a loss of $3.10 per share last year. The loss per common share for the first half of 1992 was $3.20 compared with $6.48 during the first half of 1991.
 The average shares outstanding for the 1992 second quarter was 92.7 million versus 57.8 million for the same period a year ago. For the first half of 1992, there were 92.7 million average shares outstanding versus 57.7 million last year.
 Commenting on the company's second quarter and first half performance, Time Warner chairman and co-CEO Steven J. Ross and president and co-CEO Gerald M. Levin said, "We've just had two straight solid quarters in which all five of our divisions showed increases in their results. In the past six months, we completed the acquisition of the 18 percent of American Television and Communications we did not already own; we've restructured our balance sheet with a $1.1 billion long-term debt financing coupled with a $6.2 billion refinancing of our bank debt for Time Warner Entertainment; and with the closing of our Time Warner Entertainment strategic partnership with Toshiba and C. Itoh, we're better positioned for growth than ever before. We're pleased that the health of our businesses and the restructuring of our balance sheet has resulted in an investment grade rating by Standard & Poor's Corp. and Fitch Investors Service, Inc."
 Publishing
 Second-quarter EBITDA for Time Inc., the publishing division grew to $88 million from $79 million a year ago. For the first six months, EBITDA was $132 million compared to $121 million for the first half of 1991. The increased results for the quarter were due to gains in both the magazine and book operations. Advertising revenue and circulation gains at Time and People contributed to the overall improved quarter.
 Music
 The Warner Music Group posted record second-quarter EBITDA of $126 million compared with $116 million in 1991. For the first half of 1992, EBITDA was $267 million compared to $253 million for the same period in 1991. Increases in both domestic and international music sales contributed to the quarter. Best selling U.S. artists in the quarter included Black Crowes, Genesis, The Cure, Red Hot Chili Peppers and En Vogue. Internationally, top-selling artists included Simply Red, Tracy Chapman, Enya, Luis Miguel, Sisters of Mercy, Alejandro Sanz, Mr. Big, and Westernhagen.
 ENTERTAINMENT
 Filmed Entertainment
 Second-quarter EBITDA from the company's Filmed Entertainment division was a record $101 million vs. $85 million a year ago. For the first half of 1992, EBITDA was a record $197 million versus $180 million for the year-earlier period. Contributing to the strong quarter were record domestic theatrical revenues led by the huge successes of Lethal Weapon III (Domestic box office to date: $134 million) and Batman Returns (Domestic box office to date: $140 million) as well as record international theatrical revenues.
 HBO
 Time Warner's Programming HBO division had record second-quarter EBITDA of $53 million compared with $51 million a year ago. For the first six months of 1992, EBITDA was a record $105 million versus $101 million for the year-earlier period. The quarter's improved results were due to increased subscriber revenues and improved results from new business activities.
 Cable
 Time Warner Cable's EBITDA rose to a record $244 million in the quarter, up from $220 million a year ago. EBITDA for the first half of 1992 was a record $472 million versus $426 million for the first half of 1991. The quarter's record results were due mainly to increased revenues from basic subscribers.
 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 Six months
 June 30 1992 1991 1992 1991
 Revenues:
 Publishing $ 777 $ 747 $ 1,449 $ 1,418
 Music 729 653 1,493 1,375
 Entertainment
 Filmed Entertainment 769 667 1,546 1,406
 Programming - HBO 363 345 714 674
 Cable 526 491 1,037 962
 Intersegment elimination (68) (53) (136) (144)
 Total revenues $3,096 $2,850 $ 6,103 $ 5,691
 Operating income before
 depreciation and
 amortization:
 Publishing $ 88 $ 79 $ 132 $ 121
 Music 126 116 267 253
 Entertainment
 Filmed Entertainment 101 85 197 180
 Programming - HBO 53 51 105 101
 Cable 244 220 472 426
 Total 612 551 1,173 1,081
 Depreciation & amortization,
 including amortization
 related to the acquisition
 of WCI (279) (273) (550) (547)
 Operating income 333 278 623 534
 Interest and other, net (237) (239) (442) (494)
 Corporate expenses (35) (33) (70) (64)
 Income (loss) before
 income taxes 61 6 111 (24)
 Prov. for income taxes (52) (38) (99) (58)
 Net income (loss) $ 9 $ (32) $ 12 $ (82)
 Loss per common share,
 based on net loss
 applicable to common
 shares of $147, $179,
 $297 and $374 million,
 respectively, after
 preferred dividend
 requirements $(1.59) $(3.10) $ (3.20) $ (6.48)
 Average shares outstdg. 92.7 57.8 92.7 57.7
 Notes To Consolidated Statements of Operations
 1. 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.
 2. 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.
 -0- 7/16/92
 /CONTACT: Edward Adler of Time Warner, 310-247-1263 (today) or 212-484-6630/
 (TWX) CO: Time Warner Inc. ST: New York IN: ENT SU: ERN


TS -- NY011 -- 9870 07/16/92 08:48 EDT
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