Time Warner Businesses Report Record Third Quarter.NEW YORK--(BUSINESS WIRE)--Oct. 15, 1997-- -- Combined 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 Growth 32% -- -- Time Inc., Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) ., HBO Hyperbaric oxygen therapy (HBO) A form of oxygen therapy in which the patient breathes oxygen in a pressurized chamber. Mentioned in: Ozone Therapy and Time Warner Cable This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Post Record Third Quarters -- Time Warner Time Warner Inc. (NYSE: TWX), formerly known as AOL Time Warner, is the world's largest media and entertainment conglomerate headquartered in New York City, with major operations in film, television, publishing, Internet service and telecommunications. Inc. (Time Warner) and Time Warner Entertainment Company, L.P. (TWE TWE Test of Written English TWE ThinkWave Educator (teacher productivity application) TWE That Was Easy TWE tap water enema TWE Threat Warning Equipment TWE Transitional Work Experience TWE Triangle Wind Ensemble ), reported record combined earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
TBS Tokyo Broadcasting System, Inc. TBS Treasury Board Secretariat (Canada) TBS Tris-Buffered Saline TBS Tris Buffered Saline TBS Turn Based Strategy (games) ), which merged with Time Warner in October 1996. Warner Bros., HBO and Time Warner Cable posted all-time record quarters with Time Inc. posting a record third quarter. For the first nine months of 1997, Time Warner and Time Warner Entertainment reported record combined EBITDA of $3.725 billion, up 29%, on revenues of $17.648 billion, up 24%, versus $2.894 billion of EBITDA, on revenues of $14.181 billion for the same period a year ago. Time Inc., Warner Bros., HBO and Time Warner Cable posted records for the nine-month period as well. Below are EBITDA results for the third quarter and nine months (in millions): -0-
Third Quarter Nine Months
1997 1996 1997 1996
TIME WARNER
Publishing $ 114 $ 99 $ 380 $ 335
Music 111 143 376 454
Cable Networks - TBS 151 - 472 -
Filmed Entertainment
- TBS 70 - 108 -
Cable 141 122 412 352
Intersegment
Elimination (4) - (11) -
Time Warner EBITDA $ 583 $ 364 $1,737 $1,141
ENTERTAINMENT GROUP
Filmed Entertainment
- Warner Bros. 161 146 466 423
Broadcasting
- The WB Network (21) (27) (59) (63)
Cable Networks - HBO 107 91 306 259
Cable 454 390 1,304 1,134
Entertainment Group
EBITDA $ 701 $ 600 $2,017 $1,753
Intercompany
Elimination (11) - (29) -
Combined EBITDA $ 1,273 $964 $3,725 $2,894
Commenting on the company's third-quarter and nine-month performance, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Gerald M. Levin Gerald M. "Jerry" Levin (b. 6 May, 1939, Pennsylvania, USA) is an American businessman. He attended Haverford College, where he is a member of the Board of Directors. Levin spent most of his career with Time Inc. said: "I am very pleased with the continued strength of Time Warner's operating results, as indicated by EBITDA increases of 32% in the third quarter and 29% for the first nine months of 1997. These strong results were achieved despite declines in music, thus demonstrating the benefits of the breadth of our company, as well as the solid position of our businesses. A year ago, we closed our merger with TBS and now the strong results from the Cable Networks and Filmed Entertainment businesses of TBS, combined with all-time records posted by HBO, Warner Bros. and Time Warner Cable, forcefully demonstrate the impact the merger has had on Time Warner's results." Levin added, "We continue to have the strongest year of growth since the creation of Time Warner. In addition, we are on course this year to begin to generate free cash flow, which will be used initially to reduce debt and strengthen our balance sheet and, in the longer term, to provide us with the option to buy back stock when appropriate." Separately, Time Warner reported third-quarter EBITDA for its wholly-owned divisions of $583 million, on revenues of $3.231 billion, compared to $364 million of EBITDA, on revenues of $2.157 billion in the third quarter of 1996. For the first nine months of 1997, Time Warner reported EBITDA of $1.737 billion, on revenues of $9.458 billion, versus $1.141 billion of EBITDA on revenues of $6.364 billion in the first nine months of 1996. The 1997 results include contributions from TBS, which merged with Time Warner in October 1996. Time Warner also reported $96 million of pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. from its equity in the Entertainment Group in the third quarter, compared to $61 million for the same period in 1996. For the first nine months of 1997, Time Warner reported $522 million of pretax income from its equity in the Entertainment Group, compared to $270 million in the year-earlier period. Time Warner Entertainment's performance benefitted from improved operating results and by a one-time gain on the sale of the company's interest in E! Entertainment in the first quarter. For the third quarter, Time Warner reported a net loss of $35 million, after an extraordinary loss of $7 million on the retirement of debt, compared to a net loss of $91 million in the third quarter of 1996. The third-quarter 1997 net loss per common share (after preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) ) was $.19, before the extraordinary item, and $.20 after. This compares to a net loss of $.43 per common share (after preferred dividends) in the third quarter of 1996. For the first nine months of 1997, Time Warner reported net income of $30 million after an extraordinary loss of $24 million on the retirement of debt, compared to a net loss of $ months of 1997, the net loss per common sharefter. TIME WARNER PUBLISHING tertainment Weekly. The strong third-quarter pmagazine, which will debut in February 1998. People en Espanol, a quarterly, has also announced plans to lower results from direct marketing. Warner Moriyuki Mikihara, Pantera, Leandro & Leonardo, A3 million a year earlier. Nine-month EBITDA fevenues at the division's major branded networks, TNT TNT: see trinitrotoluene. TNT in full trinitrotoluene Pale yellow, solid organic compound made by adding nitrate (−NO2) groups to toluene. , TBS Superstation su·per·sta·tion n. A television or radio station that broadcasts to a nationwide audience by satellite, cable, or both. and Cartoon Network For Cartoon Network outside of the United States, see . Cartoon Network is a cable television network created by Turner Broadcasting which primarily shows animated programming. , and increased sory. Additionally, Dumb & Dumber, combined withthe same period in 1996. Contributing to the iciencies from the Time Warner-TBS merger; and tll-time record of $161 million versus $146 million for the comparable 1996 period. Nine-month EBITDA was ncreases in revenue from international televis domestic theatrical revenue were Contact, whi 1996. The improvement in the quarter is due to increased primetime revenue, as well as the addition of w91 million a year earlier. For the first nine me businesses, HBO and Cinemax. In the quarterclusive big-event concert, Garth garth n. 1. A grassy quadrangle surrounded by cloisters. 2. Archaic A yard, garden, or paddock. [Middle English, enclosed yard, from Old Norse gardhr; see Live from Central Park, became the highest-rated original program on HBO this year, as well as the most-watched special on cable TV in 1997. CABLE In the third quarter, Time Warner Cable posted an all-time record combined EBITDA of $595 million, up 16%, from $512 million a year ago. For the first nine months of 1997, EBITDA was $1.716 billion, up 15%, from $1.486 billion in the same period a year ago. These results include strong internal EBITDA growth of 16% for the third quarter and 15% for the first nine months. Time Warner Inc.'s cable operations generated third-quarter EBITDer Entertainment's cable operations posted third-quarter EBITDA of $454 million and nine-month EBITDA of $1.inment company, consists of four fundamental businesses: entertainment, cable networks, publishing and cab Attachments: (1) Consolidated Statement of Operations See Income statement. (2) Notes to Statement of Operations
ENT
(In millions, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
- 2,092 -
Filmed En) (110) (23)
Total revenues $3,2c 111 143 376 454
Cable Networks
- TBS 151 (225) (935) (677)
Business segmen 270
Interest and
other, net (309) come tax
(provision)
benefit (61) 1 (306) (43)
Income (loss) before
extraordinary item (28) (91) 54 (215)
Extraordinary loss
on retirement of
debt, net of income
tax benefits of
$5 million, $ - million,
$16 million
and $22 million,
respectively (7) s (81) (76) (238) (1 $(1.02)
Net loss $(0.20) COMBINED STATEMENT OF OPERATIONS
September 30,
1997 1996 1997 1996
Revenues:
Filmed Entertainment
- Warner Bros. $1,399 $1,445 $3,830otal revenues $2,857 $2,720 $8,1a
sting
- The WB Network (21) (27) (59) (63)
Cable Networks - HBO 107 91 306 259
Cable 454 (146) (147) (157) (369)
61 551 270
Income tax provisiNS
Note 1: Basis of Presentation Time Warner classifies its business interests into four fundamental areas: Entertainment, consisting principally of interests in recorded music recorded music n → música grabada and music publishing The contractual relationship between a songwriter or music composer and a music publisher, whereby the writer assigns part or all of his or her music copyrights to the publisher in exchange for the publisher's commercial exploitation of the music. , filmed entertainment, television production, television broadcasting and theme parks; Cable Networks, consisting principally of interests in cable television programming and sports franchises; Publishing, consisting principally of interests in magazine publishing, book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. and direct marketing; an cable television systems, and a portion of its interests in cable television programming are held through Time Warner Entertainment Company, L.P. ("TWE"). Time Warn of 74.49% of the pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. priority capital ("Series A Capital") and residual equity capital ("Residual Caing 25.51% limited partnership interests in the Series A Capital and Residual Capital of TWE are held by a s financial reporting purposes. No portion of TWE's net income for the nine months ended September 30, 1997 and 1996 was allocated to the limited partnership interest Warner acquired the remaining 80% interest inolders of TBS capital stock and approximately 14 million stock options to replace all outstanding TBS stock options. Time Warner also assumed approximately $2.8 billion of indebtedness. The acquisition cost of approximately $6 the first quarter of 1997, TWE sold its 58% inther financial statement expenses th at are not deductible for income tax purposes. Income tax expense of Time Warner includes all income taxes related to its allocable al·lo·ca·ble adj. Capable of being allocated. Adj. 1. allocable - capable of being distributed allocatable, apportionable distributive - serving to distribute or allot or disperse e of corporate subsidiaries of the EntertainmeA/INTERNET EARNINGS |
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