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 SANTA MONICA, Calif., Nov. 15 /PRNewswire/ -- Metro-Goldwyn-Mayer Inc. today reported results for the third quarter ended Sept. 30, 1993.
 The company reported that, while revenues increased to $179 million during the third quarter from $171 million in the prior year quarter, the company incurred a loss from continuing operations of $108 million compared with $82 million in the prior year quarter. The current period results were materially adversely affected by write-downs related to three motion pictures put into production in 1992 and released during the quarter.
 In addition, the company recognized a net gain of $85 million from the sale of its European cinema operations to an affiliate during the quarter and also a book net loss of $46 million on the repurchase of the company's 13 percent subordinated debentures. The gain has been accounted for as an addition to the company's paid-in capital, while the loss has been accounted for as an extraordinary item.
 The sale of the company's European cinema operations and the repurchase of debentures were effected in connection with the company's previously announced financial restructuring program. Pursuant to the restructuring, a new operational MGM entity will be created that will acquire substantially all of the company's assets and business but approximately $1 billion less of its debts. The company reported that, had the program been completed on Sept. 30, 1993, on a pro forma basis, shareholders' equity of the new entity would have exceeded indebtedness by a margin of more than 2-to-1.
 In addition to the financial restructuring program the company has implemented plans to substantially increase its film production and distribution activity. During the third quarter, Frank G. Mancuso was appointed chairman and chief executive officer. In addition, the company named Michael Marcus to head Metro-Goldwyn-Mayer Pictures and reactivated United Artists Pictures under the leadership of John Calley, each with a mandate for increased production. The company also concluded distribution agreements for Carolco and PolyGram films. As a result of these actions and agreements, the company anticipates it will substantially augment its market share.
 Mancuso said, "We are pleased to have substantially completed the financial restructuring of the company while at the same time embarking on an aggressive program of increased production and distribution activities. The worldwide demand for filmed entertainment continues to grow every year. As a result of all these factors, we are confident that MGM will achieve its goals of an enhanced and profitable production and distribution schedule. We will enter 1994 with the financial strength and the creative resources to be a truly competitive force in this market place."
 Metro-Goldwyn-Mayer Inc. is involved in the worldwide production and distribution of motion pictures and television programs through MGM Pictures, United Artists Pictures, MGM Worldwide Television, and MGM/UA Distribution, among others.
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 /CONTACT: Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300/ CO: Metro-Goldwyn-Mayer Inc. ST: California IN: ENT SU: ERN

JB-LS -- LA050 -- 4752 11/15/93 18:17 EST
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Publication:PR Newswire
Date:Nov 15, 1993

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