Printer Friendly

PARAMOUNT COMMUNICATIONS REPORTS SHARPLY HIGHER FIRST QUARTER NET INCOME; INCREASES QUARTERLY CASH DIVIDEND 14 PERCENT

 PARAMOUNT COMMUNICATIONS REPORTS SHARPLY HIGHER FIRST QUARTER
 NET INCOME; INCREASES QUARTERLY CASH DIVIDEND 14 PERCENT
 NEW YORK, March 10 /PRNewswire/ -- Paramount Communications Inc. (NYSE: PCI) today reported that earnings for the first quarter of fiscal 1992 increased sharply to $18.4 million, or 16 cents per share, from a loss of $7.3 million, or a loss of 6 cents per share, in the first three months of fiscal 1991. The company said the gain resulted from substantially higher contributions from entertainment operations and an improved performance from publishing activities.
 At the same time, the company announced that the board of directors has approved a 14 percent increase in the quarterly cash dividend on its common stock to 20 cents from 17-1/2 cents per share, which on an annual basis equates to an increase to 80 cents from 70 cents per share. The new quarterly cash dividend is payable April 1, 1992, to shareholders of record on March 20, 1992.
 Results in the first quarter of fiscal 1992 ended Jan. 31 included operating income of $73.2 million from entertainment operations, an increase of 160 percent compared with $28.2 million recorded in the first three months of fiscal 1991. Publishing operations, which traditionally record the majority of educational sales and operating income in the second half of the year, posted a significantly smaller seasonal operating loss of $29.7 million in the first quarter of fiscal 1992, versus a loss of $40.8 million in the same quarter last year.
 Results in the first quarter of 1992 also included net interest income of $2.0 million, compared with net interest income of $14.3 million recorded in the first three months of fiscal 1991. The decline in net interest income was caused by lower average interest rates and by lower average short-term investments stemming principally from acquisitions and increased working capital requirements.
 Revenues for the first quarter of fiscal 1992 rose 19 percent to $1.1 billion, versus revenues of $897 million for the same fiscal quarter last year.
 "These results," Martin S. Davis, chairman and chief executive officer of Paramount Communications, said, "are an encouraging and clear indication of the earnings momentum we are building, paced by the strength of our entertainment product and the continued solid performance in publishing. We have emerged from fiscal 1991, a year in which we strengthened management and improved efficiency, as a solid, fully integrated operating company with extraordinary creative power and a strong balance sheet. The board's dividend action," he added, "is a reflection of our confidence in the future."
 Operating income gains in entertainment were led by the outstanding domestic performance of "The Addams Family" and "Star Trek VI: The Undiscovered Country," which have amassed total box office receipts exceeding $180 million, and the box office success of "The Naked Gun 2-1/2: The Smell of Fear" in international markets. Also contributing were gains in home video, stemming largely from the international success of "Ghost" and the popularity of "The Naked Gun 2-1/2: The Smell of Fear" in the domestic market, as well as higher results in network, domestic and international features syndication. In addition, significantly higher contributions from pay cable, principally because of recognition of additional license fees for films made available for prior periods, added to entertainment results in the quarter.
 Entertainment operations also benefited from higher contributions from the company's broadcast television stations, the Paramount Stations Group, and from 50 percent-owned USA Network. Television programming operations posted lower results, stemming largely from reduced income from library products, which more than offset higher profits from network series, principally "Cheers."
 Results from theater operations were sharply higher, paced largely by record holiday attendance at the company's Canadian theater chain and increased contributions from its jointly owned domestic theater circuit.
 Madison Square Garden, in its first fully operational period following the completion of its renovation, reported significant operating income gains, largely as a result of higher contributions from the New York Knicks and the Rangers; gains at MSG Network; additional concert events in the Arena; and increased revenues from the newly opened 5,600-seat theater, The Paramount.
 The improved results in publishing reflected increased operating income in higher education and international operations, as well as the benefits realized in all publishing areas from cost reduction programs and increased efficiency as a result of investments in the distribution and technology infrastructure.
 Gains in higher education stemmed primarily from strong textbook sales in business and economics, humanities, math and science, as well as from increased sales of vocational texts. Other educational publishing units recorded traditional seasonal losses for the period, despite an improved performance in every area except educational technology (Computer Curriculum Corporation computer-based learning systems), which reported higher losses due to a significant increase in product development and support expenses for new programs.
 Gains in international operations were due primarily to improved results in Canada, Australia and Asia, including foreign sales of Prentice Hall Computer Publishing titles (Macmillan Computer Publishing acquired in November 1991).
 In consumer publishing, improved first quarter results were attributable to increased mass market and trade sales. Contributing to sales gains were such hardcover best sellers as "The Jordan Rules" and "Crimson," such mass market best sellers as "Twilight's Child" and "Eternity," and the popular J. K. Lasser reference title, "Your Income Tax 1992." Business and professional publishing reported slightly higher losses for the period, as earnings from Prentice Hall Computer Publishing were more than offset by increased expenses for subscription products and multi-media programs.
 PARAMOUNT COMMUNICATIONS INC.
 Summary of Earnings Information
 (In millions, except per share)
 Three months ended Jan. 31 1992 1991
 Revenues $1,070.6 $897.1
 Net earnings (loss) - after provision
 (benefit) for income taxes of $8.7
 for 1992 and $(3.5) for 1991 $ 18.4 $ (7.3)
 Average common and common equivalent
 shares outstanding 118.6 118.4
 Net earnings (loss) per share $.16 $(.06)
 -0- 3/10/92
 /CONTACT: Jerry Sherman, 212-373-8725, or Carl Folta, 212-373-8530, both of Paramount Communications/
 (PCI) CO: Paramount Communications Inc. ST: New York IN: ENT PUB SU: ERN DIV


GK-KO -- NY029 -- 6821 03/10/92 11:05 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 10, 1992
Words:1024
Previous Article:U.S. SALES OF VISA TRAVELERS CHEQUES INCREASE DESPITE GLOBAL MARKET DECREASES
Next Article:HOLIDAY INN WORLDWIDE -- A BASS COMPANY
Topics:


Related Articles
QUANEX ANNOUNCES FISCAL 1991 EARNINGS; COMMON DIVIDEND INCREASED
PARAMOUNT COMMUNICATIONS REPORTS RESULTS
RPM'S SECOND QUARTER AND SIX-MONTH SALES, EARNINGS AND EARNINGS PER SHARE AT EXPECTED LEVELS
COMDISCO ANNOUNCES FIRST QUARTER EARNINGS, DECLARES QUARTERLY CASH DIVIDEND AND 5 PERCENT STOCK DIVIDEND
PARAMOUNT COMMUNICATIONS REPORTS SHARPLY HIGHER SECOND QUARTER RESULTS
EAGLE BANCORP, INC. ANNOUNCES SECOND QUARTER EARNINGS AND INCREASE IN QUARTERLY DIVIDEND
CITIZENS REPORTS IMPROVED RESULTS AND SUSPENSION OF REGULAR QUARTERLY CASH DIVIDEND
PARAMOUNT COMMUNICATIONS REPORTS HIGHER FISCAL 1994 FIRST QUARTER RESULTS
PARAMOUNT COMMUNICATIONS REPORTS FISCAL 1994 SECOND QUARTER RESULTS
PARAMOUNT COMMUNICATIONS EXPECTS TO REPORT A NET LOSS FOR THE FISCAL 1994 THIRD QUARTER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters