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MGM REPORTS SECOND QUARTER, SIX MONTH RESULTS

 MGM REPORTS SECOND QUARTER, SIX MONTH RESULTS
 CULVER CITY, Calif., Aug. 14 /PRNewswire/ -- Metro-Goldwyn-Mayer


Inc. (NYSE: MGM) today reported results for the second quarter and six months ended June 30, 1992. The results reflect the settlement of various litigation and other matters that should have a beneficial impact on the future operations of the company.
 The company had a pretax loss of $50.3 million for the second quarter on revenues of $195.0 million. After a higher tax provision in the second quarter due to the amortization of tax effects relating to the restatement of its assets and liabilities under purchase accounting as of Nov. 1, 1990, which is a non-cash charge, the company's total net loss was $59.0 million. In the prior year period, the company had a pretax loss of $62.0 million on revenues of $208.3 million, and a total net loss of $59.3 million.
 For the six months ended June 30, 1992, total revenues were $493.9 million, with a pretax loss of $98.0 million. After a higher income tax provision, the net loss was $113.7 million. This compares with total revenues of $500.8 million, a pretax loss of $156.2 million, and a total loss of $159.9 million in the prior-year period.
 Co-chairmen and co-chief executive officers Alan Ladd, Jr. and Dennis Stanfill stated, "The progress achieved in resolving certain major litigation matters is a positive step for MGM and will have a major beneficial impact on this company as we go forward. The increased level of film production currently underway underscores our confidence, as well as that of the entertainment community, in MGM's future."
 Revenues for the second quarter reflected lower levels of television programming, offset by additional revenues recognized as a result of the settlement of a dispute regarding a foreign television license agreement. Feature film revenues were below the prior year period, while theater revenues were little changed from a year earlier.
 Settlements reached by MGM resulted in gains in the second quarter, including $15.5 million relating to settlement of the license agreement dispute and a $5.4 million gain from an insurance claim settlement.
 Quarterly results also reflected lower general corporate expenses, mainly because of the fact that no litigation reserves were made during the current year period as had been done in the prior year periods. In the first six months of 1991, a reserve of $48.8 million was recorded, related to uncertainties as to the recoverability and collectibility of certain investments and loans effected by prior management.
 The company incurred $32.0 million and $68.5 million in interest expense in the second quarter and six months of 1992 vs. $25.0 million and $54.2 million, respectively, a year earlier. The increase in net interest expense was because of increased borrowing under the company's lines of credit.
 There was a favorable resolution during early 1992 of the company's litigation in Delaware with prior management. Additionally, as a result of the successful May 1992 foreclosure by a wholly-owned subsidiary of Credit Lyonnais, the company is now 98.5 percent owned by the bank. These actions have resulted in a complete separation of the company from Pathe Communications Corporation and its former chairman, Giancarlo Parretti, and leave the company free from his disruptive influence.
 As a result of the foregoing, 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.
 (Formerly MGM-Pathe Communications Co.)
 Condensed Consolidated Statements of Operations
 (in thousands, except per share data)
 (unaudited)
 Quarter 13 Weeks Six Months 26 Weeks
 Ended Ended Ended Ended
 June 30, June 29, June 30, June 29,
 1992 1991 1992 1991
 Revenues:
 Feature films and
 television
 programming $149,240 $162,199 $392,760 $400,078
 Theater operations 45,723 46,129 101,097 100,730
 Total revenues 194,963 208,328 493,857 500,808
 Expenses:
 Feature films and
 television
 programming
 operations 171,507 176,125 425,147 434,469
 Theater operations 47,798 42,134 97,890 89,417
 General corporate 13,415 23,966 22,951 35,395
 Total expenses 232,720 242,225 545,988 559,281
 Operating loss (37,757) (33,897) (52,131) (58,473)
 Other income (expense):
 Interest expense,
 net (31,970) (25,049) (68,494) (54,227)
 Interest and other
 income (expense),
 net 19,427 919 19,103 5,292
 (Reserves) recoveries
 on investments
 and loans to
 affiliates --- (3,992) 3,500 (48,796)
 Total other income
 (expense) (12,543) (28,122) (45,891) (97,731)
 Loss before income
 taxes (50,300) (62,019) (98,022) (156,204)
 (Provision) benefit
 for income taxes (8,705) 2,737 (15,674) (3,699)
 Net loss ($59,005) ($59,282) ($113,696) ($159,903)
 Net loss per
 common share ($.98) ($.99) ($1.89) ($2.67)
 -0- 8/14/92
 /CONTACT: Craig A. Parsons, Pondel Parsons & Wilkinson, 310-207-9300, for Metro-Goldwyn-Mayer/
 (MGM) CO: Metro-Goldwyn-Mayer Inc. ST: California SU: ENT IN: ERN


KJ-LS -- LA010 -- 9945 08/14/92 10:46 EDT
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Date:Aug 14, 1992
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