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BET HOLDINGS, INC. REPORTS THIRD QUARTER RESULTS

 BET HOLDINGS, INC. REPORTS THIRD QUARTER RESULTS
 WASHINGTON, June 11 /PRNewswire/ -- BET Holdings, Inc. (NYSE: BTV)


today announced the following results, in millions of dollars, for its third fiscal quarter ended April 30, 1992:
 Three Months
 Ended April 30,
 1992 1991 Percent Change
 Revenues
 Advertising $8.7 $7.6 15 pct
 Subscriber $7.3 $5.4 35 pct
 Other $0.0 $0.1 ---
 $16.0 $13.1 22 pct
 Net income $3.5 $2.5 40 pct
 Earnings per share $.17 $.13 31 pct
 Weighted average no.
 of shares outstanding 20.9 18.7 ---
 Nine Months
 Ended April 30,
 1992 1991 Percent Change
 Revenues
 Advertising $24.7 $22.2 11 pct
 Subscriber $19.4 $14.9 30 pct
 Other $.1 $.2 -50 pct
 $44.2 $37.3 18 pct
 Net income $8.7 $7.2 21 pct
 Earnings per share $.43 $.38 13 pct
 Weighted average no.
 of shares outstanding 20.1 18.7 ---
 Commenting on the results, Robert L. Johnson, president and chief executive officer, said, "We are pleased with the growth demonstrated in this quarter. Both advertising and subscriber revenues contributed to our overall growth and our publications continued to show long-term promise. National spot advertising grew 22 percent from the third quarter of fiscal 1991. BET Cable Network Subscriber revenues increased 28 percent reflecting a 14 percent increase in the per month per subscriber fee from cable operators and an increase in the average number of subscribers(a) from a year ago. The threat of onerous re- regulation of the cable industry, competition for limited channel space and BET's negotiations with cable operators for a new 10-year rate card combined to create a difficult negotiating environment for increasing our distribution in those markets with less than 10 percent black populations. While subscriber(a) levels for the third quarter of fiscal 1992 compared to the second quarter of fiscal 1992 were virtually unchanged, due to BET's unique position in the cable industry, we see this situation as temporary and not an impediment to our long-term growth."
 The 22 percent increase in operating revenues resulted from higher advertising and subscription revenue at the BET Cable Network along with advertising and circulation contributions from the company's publications. Of the $1.1 million increase in total advertising revenues, $.6 million related to Young Sisters & Brothers (YSB) and Emerge magazines. The 7 percent increase in advertising revenue on the BET Cable Network was the result of a 22 percent increase in national spot advertising and an 8 percent decline in infomercials, direct response and per inquiry advertising. As the demand for national spots on the BET Cable Network have increased, the company has reduced the number of spots available for direct response and per inquiry advertising resulting in a decline of revenue from those sources. In addition, the amount of time allotted for infomercials was reduced in the third quarter of fiscal 1992 from the same period in fiscal 1991.
 The subscriber fee revenue increase of $1.9 million was comprised of a $1.5 million (28 percent) increase in subscription revenue on the BET Cable Network and a $.4 million contribution from the company's magazine publishing operations. The increase in subscription revenue on the BET Cable Network resulted from a 14 percent rate increase and an increase in the average number of subscribers(a) from a year ago.
 Production and programming expenses increased $1.6 million or 34 percent to $6.3 million in the third quarter of fiscal 1992 compared to the third quarter of fiscal 1991. The increase was due primarily to the $1.0 million increase in the company's magazine publishing operations due to the consolidation of 100 percent of Emerge's production expenses and the commencement of publishing YSB. Production and programming expenses for the BET Cable Network alone increased 13 percent from $4.5 million in the third quarter of fiscal 1991 to $5.1 million in the third quarter of fiscal 1992.
 Marketing expenses increased 43 percent to $2.0 million in the third quarter of fiscal 1992 from $1.4 million in the third quarter of fiscal 1991. Of this increase, $.5 million resulted from increased personnel, travel and promotional costs associated with the BET Cable Network's expansion of its affiliate and advertising sales forces. General and administrative expenses increased 9 percent in the third quarter of fiscal 1992 to $2.4 million from $2.2 million in the third quarter of fiscal 1991.
 Commenting on the growth in expenses, Johnson added, "We have kept a tight rein on the production and programming expenses of the BET Cable Network and continue to incur expenses at our publications as anticipated. The consolidation of 100 percent of Emerge's expenses makes the increase in production and programming expenses derived from our income statement appear larger than the actual impact on the company's net income. Adjusting for just our share of Emerge's expenses, the production and programming expenses for the company increased 28 percent.
 "The increased marketing expenses reflect the same increase in personnel and promotional efforts in our advertising sales and affiliate marketing areas that we saw in the second quarter of fiscal 1992. In fact, the growth in marketing expense from the second quarter to the third quarter of fiscal 1992 was flat."
 Total income from operations increased $.5 million or 10 percent to $5.3 million for the third quarter of fiscal 1992 from $4.8 million in the third quarter of fiscal 1991. Total income from operations was adversely affected by losses from the company's magazine operations which amounted to $.5 million in the third quarter of fiscal 1992 compared to $.2 million in the third quarter of fiscal 1991. Income from operations was further adversely affected by the consolidation of the entire loss from Emerge magazine into the company's operating results. The portion of Emerge's operating losses attributable to minority shareholders of $.1 million is presented in the consolidated statements of income as Minority interest in net loss of Emerge. The increase in the company's income from operations including only the company's share of Emerge's loss from operations would be $.6 million or 13 percent. Income from operations for the BET Cable Network increased $.9 million or 18 percent to $5.9 million from $5.0 million in the third quarter of fiscal 1992. The company anticipates additional losses related to YSB and Emerge until the magazines are fully established.
 The company has obtained a favorable income tax ruling which resulted in a reduction of the company's effective tax rate. The third quarter of fiscal 1992 results reflect the impact of this ruling for the year to date.
 As a result of the foregoing, the company's net income increased to $3.5 million in the third quarter of fiscal 1992 from $2.5 million in the third quarter of fiscal 1991, an increase of 40 percent.
 Revenues for the nine month period ending April 30, 1992 increased 18 percent from the nine month period ending April 30, 1991 with advertising revenue up 11 percent and subscriber revenue up 30 percent.
 Production and programming expenses increased 34 percent and marketing expenses increased 35 percent. Net income increased to $8.7 million for the nine months ended April 30, 1992 from $7.2 million for the nine months ended April 30, 1991, an increase of $1.5 million or 21 percent.
 In response to recent analyst and investor requests, attached to this press release is a table detailing segment information of our operations.
 BET Holdings, Inc. operates the BET Cable Network, the nation's first and only advertiser supported basic cable network that specifically targets the viewing interests and concerns of black Americans. Cablecasting 24 hours per day, the BET Cable Network reaches 29.5 million(a) subscribers. The BET Cable Network provides a broad mix of black-oriented programming both acquired and produced at the company's production facilities in Washington, D.C., and Burbank, Calif. Through BET Holdings, Inc.'s subsidiary, Paige Publications, Inc., the company publishes YSB, a general lifestyle magazine aimed at black teenagers. BET Holdings, Inc. also owns a controlling interest in Emerge Communications, Inc., the publisher of Emerge, a general interest magazine primarily targeted towards an upscale black audience. In addition, BET Holdings, Inc. owns an interest in United Image Entertainment, a production company which produces black-oriented programming, and Haricom, Inc., a black-owned advertising agency. BET Holdings, Inc. is the first black majority-controlled company listed on the New York Stock Exchange.
 (a) The subscriber numbers are based on reports to the company from cable television systems carrying the BET Cable Network.
 (SEE ATTACHED TABLES)
 BET HOLDINGS, INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended Nine Months Ended
 April 30, April 30,
 1992 1991 1992 1991
 Operating revenues
 Advertising $8,652,494 $7,601,444 $24,692,645 $22,203,606
 Subscriber 7,306,272 5,413,390 19,391,230 14,954,314
 Other 34,473 70,405 128,543 190,220
 15,993,239 13,085,239 44,212,418 37,348,140
 Operating expenses
 Production and
 programming 6,285,813 4,666,162 17,218,043 12,794,658
 Marketing 2,030,743 1,398,121 5,794,302 4,269,318
 General and
 administrative 2,390,177 2,214,087 6,790,322 6,347,478
 10,706,733 8,278,370 29,802,667 23,411,454
 Income from
 operations 5,286,506 4,806,869 14,409,751 13,936,686
 Nonoperating
 income (expense)
 Interest income 329,864 177,083 918,065 527,513
 Interest expense (191,200) (447,584) (710,578) (1,306,432)
 Equity in losses of
 unconsolidated
 affiliates (145,866) (198,151) (478,563) (561,076)
 Income before
 income taxes 5,279,304 4,338,217 14,138,675 12,596,691
 Income taxes (1,985,000) (1,864,975) (5,683,782) (5,416,609)
 Minority interest
 in net loss of
 Emerge 158,866 -0- 216,322 -0-
 Net income $3,453,170 $2,473,242 $8,671,215 $7,180,082
 Net income per
 common share $.17 $.13 $.43 $.38
 Weighted average
 shares
 outstanding 20,852,300 18,749,800 20,107,984 18,749,800
 Segment Information
 Information as to the company's operations in different business segments is set forth below.
 Three Months Ended Nine Months Ended
 April 30, April 30,
 1992 1991 1992 1991
 Revenues:
 Cable network:
 Advertising $8,073,310 $7,601,444 $23,563,204 $22,203,606
 Subscriber 6,876,959 5,413,390 18,644,998 14,954,314
 Other 24,427 70,405 107,870 190,220
 Subtotal 14,974,696 13,085,239 42,316,072 37,348,140
 Magazine publishing:
 Advertising 579,184 --- 1,129,441 ---
 Subscriber 429,313 --- 746,232 ---
 Other 10,046 --- 20,673 ---
 Subtotal 1,018,543 --- 1,896,346 ---
 Total $15,993,239 $13,085,239 $44,212,418 $37,348,140
 Expenses:
 Cable network:
 Production and
 programming $5,043,561 $4,452,683 $14,461,990 $12,581,179
 Marketing 1,887,120 1,398,121 6,439,937 4,269,318
 General and
 administrative 2,187,702 2,214,087 5,420,241 6,347,478
 Subtotal 9,118,383 8,064,891 26,322,168 23,197,975
 Magazine publishing:
 Production and
 programming 1,242,252 213,479 2,756,053 213,479
 Marketing 143,623 --- 350,385 ---
 General and
 administrative 202,475 --- 374,061 ---
 Subtotal 1,588,350 213,479 3,480,499 213,479
 Total $10,706,733 $8,278,370 $29,802,667 $23,411,454
 Income (loss) from
 operations:
 Cable network $5,856,313 $5,015,175 $15,993,904 $14,144,992
 Magazine
 publishing (497,473) (208,306) (1,478,443) (208,306)
 Attributable to
 minority interest
 in Emerge (72,334) --- (105,710) ---
 Total 5,286,506 4,806,869 14,409,751 13,936,686
 Other non-
 operating, net (7,202) (468,652) (271,076) (1,339,995)
 Income before
 taxes $5,279,304 $4,338,217 $14,138,675 $12,596,691
 Depreciation and
 amortization:
 Cable network:
 Depreciation $439,776 $403,047 $1,278,772 $1,139,412
 Amortization of
 film rights 416,334 324,332 1,322,489 875,544
 Magazine
 publishing 14,208 --- 25,302 ---
 Total $870,318 $727,379 $2,626,563 $2,014,956
 Capital expenditures:
 Cable network $2,794,544 $624,577 $5,476,198 $4,651,542
 Magazine
 publishing 200 --- 13,322 ---
 Total $2,794,744 $624,577 $5,489,520 $4,651,542
 -0- 6/11/92
 /CONTACT: Lisa R. Anderson or Dannette A. Wills of BET Holdings, Inc., 703-516-6421; or Diana Brainerd or Christian Plunkett of The Abernathy/MacGregor Group, 212-371-5999, for BET Holdings, Inc./
 (BTV) CO: BET Holdings, Inc. ST: District of Columbia IN: ENT SU: ERN


ML -- NYON1 -- 9101 06/11/92 09:10 EDT
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