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MGM-PATHE REPORTS THIRD QUARTER RESULTS

 MGM-PATHE REPORTS THIRD QUARTER RESULTS
 CULVER CITY, Calif., Jan. 13 /PRNewswire/ -- MGM-Pathe


Communications Co. today reported results for the 13- and 39- week periods ended Sept. 28, 1991. Comparisons with the predecessor organization's results for the three- and nine-month periods ended Aug. 31, 1990 may not be meaningful, primarily due to adjustments in the current year results related to purchase accounting and the acquisition of additional assets by the company in November 1990.
 MGM-Pathe's total revenues for the third quarter increased 32 percent to $202.2 million from $153.4 million in the year-earlier period. The operating loss for the period was $52.5 million, compared with an operating loss of $24.1 million in the 1990 quarterly period. For the 39 weeks ended Sept. 30, 1991, total revenues were $703.0 million, a 47 percent increase from $478.6 million in the corresponding 1990 period. The operating loss for the 39-week period was $110.9 million, vs. an operating loss of $32.3 million in the prior year period.
 Operating results in the fiscal 1991 periods include revenues and expenses from cinema operations acquired by the company in November 1990. A large part of the increase in operating revenues described above was attributable to the acquisition of the cinema operations.
 Operating expenses related to feature film, television programming and laboratory operations increased $42.3 million and $158.9 million in the 1991 third quarter and nine-month periods, respectively. These increases were partially due to approximately $28 million and $55 million of write-downs in these respective periods on certain of the company's recent motion picture releases and the Cannon Entertainment film library, as had been expected.
 General corporate expenses decreased in the third quarter but increased in the 39-week period over the prior year. The company has generally experienced higher expenses and reserves related to litigation, including the involuntary bankruptcy proceedings and certain other lawsuits in 1991.
 Also included in the results of the 39-week period in 1991 are reserves with respect to investments and affiliate advances totaling $48.8 million. No further reserves were recorded in the 1991 third quarter.
 Net interest expense increased significantly in the current year periods due to substantially increased borrowings under the company's lines of credit and the accretion of the discount on the company's subordinated notes and debentures.
 As a result of the foregoing, the company had a net loss of $73.3 million, or $1.22 per share, for the third quarter of 1991. This compares with a net loss of $36.0 million, or $.71 per share, in the year-earlier period. The net loss for the 39-week period in 1991 was $233.2 million, equal to $3.89 per share, vs. a net loss of $69.7 million, or $1.37 per share, in the corresponding 1990 period.
 On Dec. 30, 1991, the Delaware Court of Chancery upheld the action of the company's principal lender, Credit Lyonnais Bank Nederland, in removing Giancarlo Parretti and his associates from the company's board of directors and confirmed the right of the bank to vote 98.5 percent of the company's outstanding common stock.
 MGM-Pathe is involved in the worldwide production and distribution of motion picture and television programs and operates theatre chains in Europe.
 MGM-PATHE COMMUNICATIONS CO. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (dollars in thousands except per share amounts)
 (unaudited)
 (Successor) (Predecessor) (Successor) (Predecessor)
 Thirteen Three Thirty-nine Nine
 weeks months weeks months
 ended ended ended ended
 Sept. 28, Aug. 31, Sept. 28, Aug. 31,
 1991 1990 1991 1990
 Revenues:
 Feature films,
 television programming
 and laboratory
 operations $151,356 $153,381 $551,434 $478,572
 Cinema operations 50,801 --- 151,531 ---
 Total revenues 202,157 153,381 702,965 478,572
 Expenses:
 Feature films,
 television programming
 and laboratory
 operations 194,288 151,995 628,757 469,852
 Cinema operations 44,740 --- 134,157 ---
 General corporate
 administration 15,604 25,534 50,999 41,066
 Total expenses 254,632 177,529 813,913 510,918
 Operating loss (52,475) (24,148) (110,948) (32,346)
 Other income
 (expense):
 Interest expense,
 net (29,661) (10,765) (83,888) (35,456)
 Interest and other
 income (expense),
 net 1,347 1,488 6,639 7,678
 Reserves on invest-
 ments and affiliate
 loans --- --- (48,796) ---
 Total other income
 (expense) (28,314) (9,277) (126,045) (27,778)
 Loss before income
 taxes (80,789) (33,425) (236,993) (60,124)
 (Provision) benefit
 for income taxes 7,468 (787) 3,769 (5,039)
 Net loss (73,321) (34,212) (233,224) (65,163)
 Less dividends on
 preferred shares --- (1,803) --- (4,507)
 Net loss attributable
 to common shares ($73,321) ($36,015) ($233,224) ($69,670)
 Net loss per common
 share ($1.22) ($.71) ($3.89) ($1.37)
 Weighted average
 common shares
 outstanding 60,000 50,040 60,000 50,988
 -0- 1/13/92
 /CONTACT: Craig A. Parsons of Rifkind Pondel & Parsons, 310-207-9300, for MGM-Pathe Communications/ CO: MGM-Pathe Communications ST: California IN: ENT SU: ERN


EH-KJ -- LA002 -- 9062 01/13/92 11:47 EST
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Date:Jan 13, 1992
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