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MULTIMEDIA REPORTS NET EARNINGS FOR THIRD QUARTER

 GREENVILLE, S.C., Oct. 18 /PRNewswire/ -- J. William Grimes, president and chief executive officer of Multimedia, Inc. (NASDAQ-NMS: MMEDC), announced today operating results for the third quarter ended Sept. 30, 1993. The company had net earnings of $30,241,000 for the third quarter of 1993, compared with net earnings of $15,080,000 for the third quarter of 1992. Earnings per share for the quarter were $.79. Income tax expense for the third quarter of 1993 reflects the resolution of the IRS examination of the company's 1982 through 1986 consolidated federal income tax returns and the changes in tax rates and amortization of intangible assets resulting from the 1993 Budget Reconciliation Act. The cumulative effect of these items was a decrease in the third quarter tax expense of approximately $12 million. Excluding the results of these items, earnings per share for the quarter would be $.48 versus $.40 in 1992, an increase of 20.0 percent.
 Revenues for the third quarter totaled $153,296,000, compared with $140,538,000 for the third quarter of last year, an increase of 9.1 percent. Operating profit for the third qurater was $45,737,000, an increase of 5.9 percent from the 1992 third quarter operating profit of $43,171,000.
 For the quarter, newspaper revenues increased 0.8 percent from $33,186,000 to $33,463,000. Broadcasting revenues were $37,604,000 compared with $40,794,000, a 7.8 percent decrease. Cablevision revenues increased 14.5 percent from $35,836,000 to $41,023,000. Entertainment revenues gained 30.5 percent from $28,061,000 to $36,618,000. Security revenues increased 72.4 percent from $2,661,000 to $4,588,000. Operating cash flow(A) for the quarter totaled $59,348,000, an 8.9 percent increase over the 1992 third quarter amount of $54,481,000. Newspaper cash flow(A) increased 0.6 percent to $10,549,000; broadcasting cash flow(A) decreased 13.5 percent to $9,985,000; cablevision cash flow(A) increased 17.7 percent to $21,227,000; entertainment cash flow(A) increased 18.9 percent to $18,399,000 and security cash flow(A) increased 37.9 percent to $1,604,000.
 The company had year-to-date net earnings of $78,038,000 compared with $41,263,000 for the same period in 1992. The 1993 net earnings reflect a net benefit of $14,332,000 resulting from the adoption of SFAS No. 109 (Accounting for Income Taxes) and SFAS No. 106 (Accounting for Postretirement Benefits). The earnings also included an after tax gain of approximately $1.4 million resulting from the sale of the company's mobile video production unit in January 1993. Earnings per share for the first nine months increased from $1.10 in 1992 to $2.04 in 1993. The earnings per share excluding the SFAS adjustments, the gain on the sale of the company's mobile video production unit and the third quarter tax adjustments were $1.32 per share, a 20.0 percent increase over 1992 earnings per share. Revenues for the year were up 12.6 percent from $409,389,000 to $460,892,000. Operating profit for the nine months was $130,472,000, a 5.8 percent increase. Year-to-date operating cash flow(A) increased from $157,630,000 to $171,356,000, or 8.7 percent.
 Multimedia Cablevision includes the results of the Indiana Cable Systems (approximately 28,500 subscribers) purchased in December 1992. The entertainment year-to-date revenue increase includes the company's new talk television shows "Jerry Springer" and "Rush Limbaugh, The Television Show" and four two-hour television movies. The 1992 third quarter Broadcasting revenues included approximately $4.0 million in Olympic revenues and $2.3 million in political revenues.
 Multimedia, Inc. is a diversified media communications company headquartered in Greenville, S.C., which publishes 11 daily and 49 non-daily newspapers, owns and operates five television and eight radio stations and a video production company, operates more than 125 cable television franchises in five states, monitors approximately 48,000 home security alarm subscribers, and produces and syndicates quality television programming including "Donahue," "Sally Jessy Raphael," "Jerry Springer" and "Rush Limbaugh, The Television Show."
 (A) Operating cash flow, as defined by the company, is operating profit plus depreciation and amortization, and amortization of stock awards and stock options.
 MULTIMEDIA, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF EARNINGS
 THREE MONTHS AND NINE MONTHS ENDED SEPT. 30, 1993, AND 1992
 (UNAUDITED)
 (IN THOUSANDS EXCEPT PER SHARE DATA)
 Three Months Nine Months
 1993 1992 1993 1992
 Operating Revenues:
 Newspapers $33,463 33,186 98,441 96,677
 Broadcasting 37,604 40,794 113,491 115,617
 Cablevision 41,023 35,836 123,509 106,511
 Entertainment 36,618 28,061 113,733 83,152
 Security 4,588 2,661 11,718 7,432
 Total Operating
 Revenues 153,296 140,538 460,892 409,389
 Operating Costs and Expenses:
 Production 53,208 47,178 165,714 138,408
 Selling, General and
 Administrative 41,847 39,691 127,145 115,920
 Depreciation 9,075 7,631 26,522 23,233
 Amortization 3,429 2,867 11,039 8,456
 Total Operating Costs
 and Expenses 107,559 97,367 330,420 286,017
 Operating Profit 45,737 43,171 130,472 123,372
 Interest Expense 15,485 18,201 46,667 55,281
 Other Income (Expense),
 Net (644) (167) 1,886 (317)
 Earnings Before Income
 Taxes, Minority
 Interest and Cumulative
 Effect of Changes in
 Accounting Principles 29,608 24,803 85,691 67,774
 Income Taxes(B) 68 10,170 23,062 27,788
 Minority Interest 701 447 1,077 1,277
 Earnings Before
 Cumulative Effect of
 Changes in Accounting
 Principles 30,241 15,080 63,706 41,263
 Cumulative Effect of
 Changes in Accounting
 Principles(C) --- --- 14,332 ---
 Net Earnings $30,241 15,080 78,038 41,263
 Per Share of Common
 Stock:
 Earnings Before
 Cumulative Effect of
 Changes in Accounting
 Principles $ 0.79 0.40 1.67 1.10
 Cumulative Effect of
 of Changes in Accounting
 Principles --- --- 0.37 ---
 Net Earnings $ 0.79 0.40 2.04 1.10
 Cash Dividends --- --- --- ---
 Weighted Average
 Shares 38,369 37,567 38,330 37,563
 (B) Income tax expense for 1993 reflects the resolution of the IRS examination of the company's 1982 through 1986 consolidated federal income tax returns and the changes in tax rates and amortization of intangible assets resulting from the 1993 Budget Reconciliation Act. The cumulative effect of these items was a decrease in the third quarter tax expense of approximately $12 million.
 (C) Effective Jan. 1, 1993, the company adopted Statements of Financial Accounting Standards No. 109, "Accounting for Income Taxes," and No. 106, "Employer's Accounting for Postretirement Benefits Other Than Pensions." The cumulative effect of the adoption of SFAS No. 109 was to increase first quarter earnings by $15.4 million ($.40 per share). The cumulative effect of the adoption of SFAS No. 106 was a decrease in first quarter earnings, net of tax benefit, of $1.1 million ($.03 per share). Prior year financial statements were not restated.
 -0- 10/18/93
 /CONTACT: Elizabeth S. Mills, vice president-Corporate Communications, of Multimedia, 803-298-4393 or 803-298-4389/
 (MMEDC)


CO: Multimedia, Inc. ST: South Carolina IN: TLS PUB SU: ERN

CM-SB -- CH007 -- 3387 10/18/93 12:18 EDT
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Date:Oct 18, 1993
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