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MGM REPORTS IMPROVED 1992 OPERATING RESULTS

 CULVER CITY, Calif., March 31 /PRNewswire/ -- Metro-Goldwyn-Mayer Inc. (NYSE: MGM) today reported significant improvement in its 1992 operating results, with an 87 percent and 50 percent reduction, respectively, in its operating losses for the fourth quarter and full year ended Dec. 31, 1992. In addition, MGM announced that it has received a formal commitment from Credit Lyonnais Bank Nederland N.V. to support the company's business plan, which calls for substantial new film production.
 MGM had an operating loss of $86.5 million for 1992, compared with $176.2 million a year earlier. After interest, other expenses and provision for income taxes, the loss before extraordinary items and an accounting method change was $236.1 million vs. a loss of $347.4 million in the corresponding 1991 period. After an extraordinary loss of $2.0 million and a one-time $33.0 million charge representing the cumulative effect of an accounting method change, the company's net loss for the year was $271.1 million.
 Revenues for the year were $936.7 million, compared with $921.7 million in 1991.
 For the fourth quarter ended Dec. 31, 1992, the company incurred an operating loss of $8.5 million, compared with $65.3 million in the prior-year period. After including interest, other expenses, the provision for income taxes and the extraordinary item, the net loss was $45.6 million, vs. $114.2 million in the same quarter of 1991. Revenues were $214.4 million in the 1992 fourth quarter vs. $218.7 million a year earlier.
 Results for the full year reflected slightly lower levels of feature film theatrical revenues and television programming revenues, offset by increases in feature film revenues from home video and television licensing. Overall, feature film and television revenues were up slightly from the year-earlier periods.
 Total operating expenses were down compared with the prior year, while net interest expense increased slightly due to the effect of a change in tax accounting, partially offset by lower interest rates. Gains in other income from settlement of certain contractual agreements and litigation claims were nearly offset by charges related to another contract settlement during the year.
 The net loss for the year would have been reduced further except for a special one-time charge in the first quarter of 1992 related to the company's adoption of a new accounting method for income taxes.
 In 1992, the company adopted the Statement of Financial Accounting Standards No. 109 (SFAS 109), "Accounting for Income Taxes." Accordingly, the company has restated its 1992 quarterly results to reflect (i) a one-time special charge of $33 million in the first quarter, representing the cumulative effect of this accounting method change for years prior to 1992; and (ii) a favorable adjustment aggregating $1.3 million to reflect the effect of this new tax provision for 1992; and (iii) adjustments to amortization, interest expense and other income which were offset by corresponding adjustments to the tax provision for the year. None of these adjustments had any effect on the company's cash flow for 1992, and no effect is expected for the foreseeable future. All operating comparisons are before consideration of the one-time charge in the first quarter of 1992.
 "The continuing and now formalized support of Credit Lyonnais Bank Nederland N.V. is vitally important to our objective of building this organization, maintaining its improving performance and renewing MGM's stature in our industry," stated Co-Chairmen and Chief Executive Officers Alan Ladd Jr. and Dennis Stanfill.
 Considering the commitment from Credit Lyonnais Bank Nederland N.V., as well as other factors that contribute to a significant improvement in the company's prospects, KPMG Peat Marwick, MGM's independent auditors, issued an unqualified opinion on the company's 1992 financial statements.
 During the year, there was favorable resolution of all of the company's litigation in Delaware with prior management, which began in mid-1991. Additionally, as a result of the successful May 1992 foreclosure by a wholly owned subsidiary of Credit Lyonnais S.A., the company is now 98.5 percent owned by the bank. MGM's development and production activities have increased as additional projects have been made available to the company. However, due to the long lead time required for the development and production of feature films, the effects of these increased activities will not be fully reflected in the company's results of operations until 1993 and beyond.
 MGM is involved in the worldwide production and distribution of motion picture and television programs and operates theater chains in Europe.
 METRO-GOLDWYN-MAYER INC.
 Consolidated Statement of Operations
 (In thousands, except per share data)
 12 Months Ended Three Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues:
 Feature films and
 television
 programming
 operations $729,450 $727,723 $166,081 $176,289
 Theater operations 207,241 193,979 48,293 42,448
 Total revenue 936,691 921,702 214,374 218,737
 Expenses:
 Feature films and
 television
 programming
 operations 784,617 846,761 172,294 218,004
 Theater operations 196,104 177,446 45,548 43,289
 General corporate
 administration 42,453 73,706 5,002 22,707
 Total expenses 1,023,174 1,097,913 222,844 284,000
 Operating loss (86,483) (176,211) (8,470) (65,263)
 Other income (expense):
 Interest expense,
 net (139,276) (135,418) (29,936) (51,530)
 Interest and other
 income (expense),
 net advances 2,582 (42,419) (2,718) 6,377
 Total other
 income (expense) (133,835) (172,862) (30,645) (46,817)
 Loss before income
 taxes, cumulative
 effect of accounting
 change and
 extraordinary items (220,318) (349,073) (39,115) (112,080)
 (Provision) benefit
 for income taxes (15,776) 1,647 (4,504) (2,122)
 Loss before extra-
 ordinary items and
 cumulative effect of
 accounting change (236,094) (347,426) (43,619) (114,202)
 Extraordinary items (2,000) 0 (2,000) 0
 Cumulative effect at
 Jan. 1, 1992, of
 income tax
 accounting change (33,036) 0 0 0
 Net loss ($271,130) ($347,426) ($45,619) ($114,202)
 Net loss per common share:
 Loss before
 extraordinary items and
 cumulative effect of
 accounting change ($3.93) ($5.79) ($0.72) ($1.90)
 Extraordinary items (0.04) 0.00 (0.04) 0.00
 Cumulative effect at
 Jan. 1, 1992 of income
 tax accounting change (0.55) 0.00 0.00 0.00
 Net loss ($4.52) ($5.79) ($0.76) ($1.90)
 -0- 3/31/93
 /CONTACT: Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for MGM/
 (MGM)


CO: Metro-Goldwyn-Mayer Inc. ST: California IN: ENT SU: ERN

JL-LS -- LA011 -- 1367 03/31/93 09:06 EST
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Date:Mar 31, 1993
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