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K-III REPORTS 11 PERCENT INCREASE IN CASH FLOW IN THIRD QUARTER

 NEW YORK, Nov. 3 /PRNewswire/ -- K-III Communications today announced consolidated cash flow before interest and taxes (EBITDA) of $37.5 million for the quarter ended September 30, 1993, an 11.1 percent increase over the $33.7 million earned in the third quarter of 1992. For the first nine months of 1993 consolidated EBITDA was $82.7 million, a 12.7 percent increase over the $73.4 million earned in the 1992 period.
 During the third quarter sales grew 4.5 percent, from $203.5 million in 1992 to $212.6 million in 1993. Year-to-date sales grew 7.8 percent, from $578.2 million in 1992 to $623.4 million in 1993.
 Operating profits after charges for depreciation and amortization of goodwill and intangible assets were $2.9 million in the third quarter of 1993 compared to an operating loss of $13.1 million in the 1992 period. The net loss declined 53.3 percent from $33.6 million in the third quarter 1992 to $15.7 million in 1993.
 The year-to-date operating loss declined 55.7 percent from $56.2 million in 1992 to $24.9 million in 1993, and the net loss declined 39.5 percent from $136.6 million in 1992 to $82.7 million in 1993.
 Interest expense declined by 9 percent in the third quarter and by 5.9 percent year-to-date from 1992 levels.
 William F. Reilly, Chairman and CEO, said the gains were the result of technology-driven operating efficiencies, product upgrades and moderate improvements in key markets. "We continue to focus on free cash flow as the barometer of the company's strength. K-III's high cash generation allows us to invest in new products, acquisitions and product improvements. While we are not counting on robust economic conditions over the near term, we expect that K-III will perform well."
 K-III Communications is a diversified publishing, information and direct response company with such well known titles as Seventeen and New York magazines, Weekly Reader, Daily Racing Form, Funk & Wagnalls Encyclopedia and World Almanac. K-III's preferred stock is traded on the New York Stock Exchange.
 K-III COMMUNICATIONS CORPORATION
 Financial Highlights (Unaudited)
 (Dollars In Millions)
 Three Months Ended Nine Months Ended
 Sept. 30 Sept. 30
 1992 1993 1992 1993
 Total Sales-Net $203.5 $212.6 $578.2 $623.4
 Operating Costs &
 Expenses 169.8 175.1 504.8 540.7
 Earnings Before
 Depreciation and
 Amortization (EBITDA) 33.7 37.5 73.4 82.7
 Depreciation and
 amortization 46.8 34.6 129.6 107.6
 Operating Profit
 (Loss) (13.1) 2.9 (56.2) (24.9)
 Write-off of
 Unamortized Deferred
 Financing Costs -- -- 19.8 --
 Interest Expenses 19.3 17.5 57.7 54.3
 Amortization of
 Deferred Financing
 Costs & Other 0.9 1.1 2.4 3.5
 Income Taxes 0.3 -- 0.5 --
 Net Loss ($33.6) ($15.7) ($136.6) ($82.7)
 -0- 11/3/93
 /CONTACT: Gregory William Miller, Robinson Lake, Sawyer Miller, 212-484-7404/


CO: K-III Communications ST: New York IN: PUB SU: ERN

LG-TA -- NY029 -- 0046 11/03/93 10:27 EST
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 3, 1993
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