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PATHE COMMUNICATIONS REPORTS 1991 RESULTS

 PATHE COMMUNICATIONS REPORTS 1991 RESULTS
 CULVER CITY, Calif., April 14 /PRNewswire/ -- Pathe Communications


Corp. (NYSE: PCC) today reported an increased operating loss for 1991, attributable in part to reserves and other costs related to prior management; higher interest expense due largely to the highly leveraged acquisition of MGM-Pathe Communications Co. (NYSE: MGM); and the disappointing performance of certain films.
 The company incurred a net loss of $352.9 million, or $3.02 per share, on total revenues of $921.7 million for the year ended Dec. 31, 1991. In the prior year, the company incurred a net loss of $55.0 million, or $0.81 per share, on total revenues of $525.9 million.
 The net loss for the fourth quarter of 1991 was $127.9 million, or $1.09 per share, compared with $84.4 million, or $0.92 per share, in the prior-year period. Total revenues decreased to $218.7 million from $311.1 million in the prior-year period, when significant revenues were realized from major licensing contracts entered into in connection with the acquisition of MGM.
 Results for 1991 include 12 months of operations from MGM, compared with two months in 1990. Per share results are based on 116.7 million average common shares outstanding in 1991 vs. 67.7 million in 1990.
 Pathe said that principal factors adversely affecting its financial results were writedowns, reserves and other costs associated with prior Pathe management and the disappointing box-office results of feature films released in 1991. The results also reflect litigation costs related to an involuntary bankruptcy petition and a lengthy Delaware court action, along with significant litigation reserves, higher interest expense and amortization of goodwill resulting from the MGM acquisition.
 The company was unable to release certain motion pictures at optimal times and, prior to the favorable court ruling on Dec. 30, 1991, the litigation made it difficult for the company to attract and retain talent for the development and production of feature films and television programming.
 Pathe recorded total reserves of $48.9 million in 1991 related to certain investments and affiliate loans, including $12.9 million reflected in the results of operations and $36.0 million as an offset to stockholders' equity. Also included in 1991 results were writedowns of approximately $76.0 million on certain feature film releases.
 Results for 1990 have been restated to reflect income recognition in 1990 instead of 1989 from a transfer of certain theater properties.
 In their report on Pathe's 1991 results, Pathe's independent auditors, KPMG Peat Marwick, have referred to the issue of whether Pathe will be able to continue as a "going concern." This reference results principally from the fact that Pathe is currently dependent on Credit Lyonnais Bank Nederland N.V. for additional capital to fund its ongoing operations, is currently in default on its existing indebtedness to the bank, which indebtedness is secured by, among other collateral, all of Pathe's shares of MGM stock. There is currently no commitment for the advance of additional funds to the company by the bank.
 The auditors also referred in their report to the risk of certain litigation resulting in ultimate liabilities to Pathe possibly in excess of current provisions for litigation losses.
 Pathe is the holding company for MGM, which is involved in the worldwide production and distribution of motion picture and television programs and operates theater chains in Europe.
 PATHE COMMUNICATIONS CORP. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per share amounts)
 Periods 13 Weeks Year
 Ended 12/31/91 12/29/90 12/31/91 12/29/90
 (Unaudited)
 Revenues:
 Feature films & television
 programming operations $ 176,289 $253,849 $ 727,723 $347,321
 Theater operations 42,448 57,230 193,979 178,565
 Total revenues 218,737 311,079 921,702 525,886
 Expenses:
 Feature films & television
 programming operations 218,002 236,719 846,761 341,688
 Theater operations 43,289 45,449 177,446 146,668
 General corporate
 administration 28,800 33,306 87,242 79,882
 Total expenses 290,091 315,474 1,111,449 568,238
 Operating loss (71,354) (4,395) (189,747) (42,352)
 Other income (expense):
 Gain (loss) on sales of
 assets & subsidiaries (460) 12,236 1,856 104,559
 Interest expense, net (57,868) (27,664) (166,223) (51,632)
 Interest & other income
 (expense), net (430) (1,537) 6,571 4,906
 Reserves on investments
 & loans to affiliates 2,519 (66,834) (12,914) (66,834)
 Total other inc. (exp.) (56,239) (83,799) (170,710) (9,001)
 Loss before income taxes,
 minority interest &
 extraordinary items (127,593) (88,194) (360,457) (51,353)
 (Provision) benefit for
 income taxes (2,702) 2,235 1,581 (16,781)
 Minority interest in net
 loss of consolidated
 subsidiary 2,408 -- 5,941 --
 Loss bef. extraord. items (127,887) (85,959) (352,935) (68,134)
 Extraordinary items -- 1,519 -- 13,158
 Net loss $(127,887) $(84,440) $ (352,935) $(54,976)
 Net loss per common share
 before extraord. items $(1.09) $(.92) $(3.02) $(1.00)
 Extraordinary items -- -- -- .19
 Net loss $(1.09) $(.92) $(3.02) $ (.81)
 Weighted average common
 shares outstanding 116,747 91,516 116,747 67,689
 -0- 4/14/92
 /CONTACT: Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for Pathe Communications/
 (PCC MGM) CO: Pathe Communications Corp.; MGM-Pathe Communications Co. ST: California IN: ENT SU: ERN


KJ-EH -- LA006 -- 8119 04/14/92 09:34 EDT
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