Printer Friendly


 LOS ANGELES, Oct. 20 /PRNewswire/ -- Spelling Entertainment Group Inc. (NYSE: SP), a leading producer and distributor of filmed entertainment, today reported an increase in third quarter results from continuing operations.
 For the three months ended Sept. 30, 1993, income from continuing operations increased to $7,482,000, or $0.14 per share, from $1,817,000, or $0.03 per share, for the three months ended Sept. 30, 1992. Income from continuing operations for the first nine months of 1993 increased to $14,500,000 or $0.28 per share, compared to $4,879,000 or $0.09 per share for the same period in 1992.
 Income from continuing operations for the three months ended Sept. 30, 1993 reflects a $1,674,000 tax benefit as compared to a provision for income taxes of $2,491,000 in the prior year period. The current period's net benefit resulted after offsetting the company's statutory provision with the benefit from the utilization of certain tax loss carryforwards. In the prior year period, a similar tax benefit was reflected as extraordinary income under the company's prior method of accounting for income taxes.
 Revenue from continuing operations for the three months ended Sept. 30, 1993 was $55,772,000 as compared to $74,623,000 for the same period in 1992. Revenue from continuing operations for the first nine months of 1993 was $179,250,000 as compared to $193,359,000 for the same period in 1992. The revenue decreases in the current year periods are primarily due to changes in the timing of television programming deliveries to the networks, which in 1993 are more heavily concentrated in the fourth quarter.
 Spelling President and Chief Executive Officer Steven R. Berrard commented, "We are pleased with the continuing success of the company's television series, Beverly Hills, 90210 and Melrose Place, which contributed to the company's performance during the quarter. The company's domestic and international distribution of its film and programming library also contributed to the positive operating results in line with our expectations. We are excited about the company's prospects for the fourth quarter of 1993 with our anticipated December delivery of the television mini-series The Stand, based on the Stephen King novel, and the home video release of Happily Ever After, an animated feature film. In addition, the company has received mid-season orders for our two new network series, Winnetka Road and Burke's Law, which will be delivered in the fourth quarter of this year and the first quarter of 1994, respectively."
 As recently announced, the company has entered into an agreement in principle to acquire by a cash merger all of the outstanding shares of Republic Pictures Corporation, a producer and distributor of television programming and feature films. The merger, which is expected to be consummated in January 1994, is subject to the execution of a definitive agreement and other customary conditions.
 In order to finance the proposed merger, on Oct. 5, 1993, the company sold approximately 13,362,000 shares of the company's common stock to Blockbuster Entertainment Corporation for approximately $100.4 million. As a result of this acquisition, Blockbuster owns approximately 70.5 percent of the company's outstanding common stock.
 Spelling's operations encompass a broad range of business in the filmed entertainment industry, including the worldwide distribution of television programs and motion pictures and the development and production of television series, mini-series, movies for television and feature films. The company holds a library in excess of 12,000 hours of programming.
 Spelling's stock trades on the New York Stock Exchange and Pacific Stock Exchange.
 Following is a condensed statement of operations for the three- and nine-month periods ended Sept. 30, 1993.
 (In thousands, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenue $ 55,772 $ 74,623 $179,250 $193,359
 Operating Costs
 and Expenses 47,919 67,045 153,715 172,594
 Operating Income 7,853 7,578 25,535 20,765
 Other expense, Net (2,045) (3,270) (6,784) (8,776)
 Income from Continuing
 Operations Before
 Income Taxes 5,808 4,308 18,751 11,989
 Income Tax Benefit
 (Provision) 1,674 (2,491) (4,251) (7,110)
 Income from Continuing
 Operations 7,482 1,817 14,500 4,879
 Income (Loss) from
 Discontinued Operations,
 Net of Tax --- --- (3,710) (1,629)
 Income before
 Extraordinary Item 7,482 1,817 10,790 3,250
 Extraordinary Item --- 1,664 --- 3,242
 Net Income 7,482 3,481 10,790 6,492
 Preferred Dividend
 Requirement 202 202 607 607
 Net Income Applicable to
 Common Stock $7,280 $3,279 $10,183 $5,885
 Income per Common and
 Common Equivalent Share:
 Income from Continuing
 Operations $.14 $.03 $.27 $.09
 Income before
 Extraordinary Item $.14 $.03 $.20 $.06
 Net Income $.14 $.07 $.20 $.13
 -0- 10/29/93
 /CONTACT: Thomas P. Carson of Spelling Entertainment Group Inc., 213-965-5820/

CO: Spelling Entertainment Group Inc. ST: California IN: ENT SU: ERN

PC-JB -- FL014 -- 4823 10/20/93 17:41 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 20, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters