REPUBLIC PICTURES CORP. REPORTS THIRD QUARTER RESULTS
REPUBLIC PICTURES CORP. REPORTS THIRD QUARTER RESULTS LOS ANGELES, Nov. 12 /PRNewswire/ -- Republic Pictures Corp.
(NASDAQ: RPICA) recorded third quarter earnings comparable to 1991 and a 95 percent increase in net income for the first nine months of 1992, it was announced today by Russell Goldsmith, chairman and chief executive officer.
For the quarter ended Sept. 30, 1992, consolidated revenues increased 5 percent, to $19,651,000 from $18,637,000 in 1991. In the current year's third quarter, the company recorded operating income of $571,000 and net income of $162,000 (4 cents per share), as compared with operating income of $239,000 and net income of $158,000 (4 cents) in the quarter ended Sept. 30, 1991. For the nine-month periods ended Sept. 30, consolidated revenues amounted to $55,702,000 in 1992, as compared with $58,939,000 in 1991. Operating income amounted to $1,795,000 and $1,421,000 for the nine months ended Sept. 30, 1992 and 1991, respectively. Net income increased 95 percent to $490,000 (11 cents) in 1992 from $251,000 (6 cents) in 1991. (Operating income is not directly comparable between 1991 and 1992, as a result of the amendment earlier this year to the company's television joint venture agreement. The comparability of net income is not affected by this change.) Video and theatrical revenues, which principally represent U.S. home video sales, decreased to $11,718,000 in the third quarter from a record $14,914,000 in last year's third quarter, but for the year to date, these revenues increased 42 percent to a new high of $34,682,000 from $24,507,000 in 1991. This year-to-date growth primarily reflects a greater number of new home video releases arising from the company's recent distribution agreement with The Hallmark Hall of Fame ("O Pioneers!" and "Secret Garden" in the third quarter) and feature film acquisitions (including "Amityville 1992" and "Red Shoe Diaries"). The prior year's third quarter included the initial video release of the motion picture "Cadence" (Charlie Sheen), which accounted for nearly half of that quarter's total video revenue. Television revenues increased 113 percent in the third quarter to $7,933,000 in 1992 from $3,723,000 in 1991. The current year's third quarter included the network license fees for two television movies delivered by Republic Pictures Television during the quarter ("Born Too Soon" for NBC and "Overkill," which airs Tuesday, Nov. 17 on CBS), as well as other revenues for some of the company's other recent television productions and library titles. On the other hand, the prior year's third quarter did not include any new network productions. Television revenues decreased for the nine-month period to $21,020,000 in 1992 from $34,432,000 in 1991, primarily because the first quarter of 1991 included network license fees for two miniseries and one movie; whereas, the four new productions in 1992 did not include any miniseries. In light of both weakening worldwide economic conditions and recent mergers and bankruptcies among its customer base, the company reduced its third quarter 1992 operating income by approximately $1,000,000 in order to establish additional reserves for future doubtful accounts receivable and video returns above and beyond normal historical levels. Operating income in each of the first two quarters of 1992 was affected by certain non-recurring or otherwise distinct events. The first quarter included a gain upon sale of the company's videocassette duplication facility in the amount of $2,089,000 as part of a new third-party duplication arrangement under which the company is beginning to achieve cost savings and service efficiencies. Conversely, the second quarter included items which reduced operating income by approximately $1,000,000, including the write-off of remaining costs associated with comedy series development, the recognition of certain previously deferred fees based upon a recent agreement to amend the company's television joint venture agreement with United Artists Entertainment Inc., and expenses related to the company's unsuccessful proposal to acquire assets of Orion Pictures Corp. Weighted average shares outstanding increased to 4,599,000 in this year's third quarter from 4,364,000 in the third quarter of 1991, principally as a result of the private placement of 200,000 shares of class A common stock at $15 per share earlier this year. Republic Pictures Home Entertainment is scheduled to maintain or increase the frequency of new releases, with the next major title being the motion picture "Knight Moves" (Christopher Lambert, Diane Lane, Tom Skerritt), which Republic will release theatrically in early 1993, then, in mid-1993, to U.S. home video. Republic Pictures Productions will start principal photography next week on "The John List Story" (Robert Blake, Beverly D'Angelo), a television movie for CBS which will be completed in the first quarter of 1993. Inasmuch as there are no television movie deliveries or major new home video releases scheduled for this year's fourth quarter, operating results for that quarter will be negatively affected. Republic pictures Corp. is a producer and worldwide distributor of television programs, including the winners of both the Emmy and Golden Globe awards for Best Movie/Miniseries of 1991 ("Separate but Equal" and "One Against the Wind"). The company also acquires and produces theatrical, video and television productions for its worldwide television, theatrical and home video distribution operations. Republic is well-known for its extensive library of classic films, its Emmy-winning series "Beauty and the Beast" and such other popular off-network series as "Bonanza." REPUBLIC PICTURES CORP. AND SUBSIDIARIES Condensed Consolidated Statement of Income (Unaudited) Three months ended Nine months ended Sept. 30, Sept. 30, 1992 1991 1992 1991 Operating revenues: Television $7,933,000 $3,723,000 $21,020,000 $34,432,000 Video and theatrical 11,718,000 14,914,000 34,682,000 24,507,000 Total 19,651,000 18,637,000 55,702,000 58,939,000 Operating expenses: Television 7,308,000 4,189,000 21,581,000 31,438,000 Video and theatrical 10,863,000 13,360,000 31,512,000 23,735,000 General and administrative 909,000 849,000 2,903,000 2,345,000 Total 19,080,000 18,398,000 55,996,000 57,518,000 Sale of video duplication facility --- --- 2,089,000 --- Operating income 571,000 239,000 1,795,000 1,421,000 Other income and expenses: Interest expense, net of interest income (305,000) (516,000) (958,000) (1,195,000) Minority interest in television venture --- 525,000 --- 188,000 Income before taxes 266,000 248,000 837,000 414,000 Provision for income taxes 104,000 90,000 347,000 163,000 Net income $162,000 $158,000 $490,000 $251,000 Earnings per common share $.04 $.04 $.11 $.06 Weighted average shares outstanding 4,599,000 4,364,000 4,532,000 4,355,000 -0- 11/12/92 /CONTACT: David M. Kirchheimer, senior VP & CFO of Republic Pictures, 310-302-1637; or Rachel McCallister of Rachel McCallister & Associates, 213-939-5991, for Republic Pictures/ (RPICA) CO: Republic Pictures Corp. ST: California IN: ENT SU: ERN
BP-LS -- LA033 -- 0466 11/12/92 19:35 EST
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|Date:||Nov 12, 1992|
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