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TIME WARNER REPORTS EBITDA UP 11 PERCENT FOR THE YEAR

 NEW YORK, Feb. 8 /PRNewswire/ -- Time Warner Inc. (NYSE: TWX) reported fourth quarter and full year earnings before interest, taxes, depreciation and amortization (EBITDA) of $731 million and $2.515 billion respectively, up 11 percent for the year. All five divisions posted gains and four of the five businesses music, filmed entertainment, HBO and cable achieved record results for the quarter and the full year. In 1991 the operating divisions reported EBITDA of $677 million for the quarter and $2.263 billion for the year. The 1991 full-year results include a $60 million one-time charge taken against EBITDA in the third quarter for the restructuring of the company's publishing division.
 For the fourth quarter, Time Warner posted revenues of $3.721 billion and for the year, revenues were $13.070 billion, up 9 percent. Revenues were $3.390 billion in the 1991 fourth quarter and $12.021 billion for the full year.
 Time Warner reported a fourth quarter net income of $68 million versus $45 million for the year earlier period. For 1992 Time Warner reported net income of $86 million versus a net loss of $99 million for 1991. The results for each of 1992 and 1991 include non cash amortization charges in excess of $500 million associated with the 1989 acquisition of Warner Communications.
 The loss per common share for the fourth quarter was $0.25 after preferred dividends, compared with a loss of $0.29 per share for the same period last year. The loss per common share for 1992 was $1.46 after preferred dividends, compared with a loss of $2.40 per share for 1991.
 In announcing the company's quarterly and year end results, Gerald M. Levin, chairman and CEO, said: "1992 was a year of significant achievement for Time Warner which resulted in an improved balance sheet and strong business performance. For the first time since the merger, I am pleased to report Time Warner had net profits for the year. Also, all five of our businesses had increased earnings over the prior year. In fact, four of the five music, filmed entertainment, HBO and cable achieved record results. 1992 also marked other important achievements our debt maturities were lengthened and our senior debt achieved investment grade ratings. We established Time Warner Entertainment, launched our strategic alliance with Toshiba and ITOCHU and repurchased the 18.7 percent of American Television and Communications Corporation we did not already own. In addition, we increased the common stock dividend and spilt our stock four for one. Since year end, we've made further progress announcing the redemption of all the Series D preferred stock, which will substantially improve our common share results. In 1993, we are continuing to work on strengthening our balance sheet and further growing our businesses."
 PUBLISHING
 Fourth quarter EBITDA for Time Warner's Publishing division was $132 million versus $124 million a year ago. For the year, EBITDA was $328 million versus $246 million a year ago, after a onetime $60 million restructuring charge in the 1991 third quarter. For the full year, the division was helped by magazine circulation and advertising revenue increases, led by strong performances by People, Southern Living and Entertainment Weekly, and by a record year at Time Life Inc., a direct- marketer of books, music and videos.
 MUSIC
 The Warner Music Group posted record fourth quarter EBITDA of $196 million versus $191 million for the same period a year ago. EBITDA for the year was a record $585 million versus $560 million for the year earlier period. For the year, domestic and international record sales and music publishing revenues all posted increases. During the year, worldwide sales were led by Eric Clapton, Madonna, Metallica, Simply Red, REM, Enya, Luis Miguel and En Vogue.
 FILMED ENTERTAINMENT
 Fourth quarter EBITDA for the company's Filmed Entertainment division was a record $92 million compared with $90 million a year ago. For the year, EBITDA was a record $410 million up from $390 million in 1991. Strong domestic box office results for The Bodyguard ($111 million domestically and over $200 million internationally as of Feb. 7) and Forever Young ($52 million domestically as of Feb. 7) contributed to the quarter's record revenues. Warner Bros. was number one in domestic box office share for the second year in a row in 1992 and for the third time in the last four years. Also contributing to the division's record year were worldwide theatrical revenues, worldwide home video sales and international syndication sales, all of which set records.
 HBO
 Time Warner's Programming HBO division had record fourth quarter EBITDA of $56 million, up 19 percent compared with $47 million for the same period a year ago. At year end, the subscriber count for Home Box Office and Cinemax stood at 23.7 million compared to 23.6 million a year ago despite the loss of several hundred thousand cable home connections due to severe storms nationally throughout the year. EBITDA for 1992 was a record $215 million versus $195 million in 1991. Contributing to both the quarter's and the year's record results were increased results from the domestic payTV services offset in part by investment spending on new international HBO pay television ventures throughout the world.
 CABLE
 Time Warner Cable's EBITDA rose to a fourth quarter record of $255 million, increasing 13 percent from $225 million a year ago. For the year, cable EBITDA rose 12 percent to $977 million, from $872 million in 1991. Record results were due mainly to an increase in revenues from subscribers to standard service and advertising. At year end, Time Warner Cable had grown to 7.1 million subscribers from 6.7 million for 1991.
 Time Warner Inc. is the world's leading media and entertainment company, with interests in magazine and book publishing, recorded music and music publishing, filmed entertainment, cable television and cable television programming.
 TIME WARNER INC.
 CONSOLIDATED STATEMENT OF OPERATIONS
 BY BUSINESS SEGMENT
 (In millions, except per share amounts)
 (Unaudited)
 Three Months Ended Year Ended
 December 31, December 31,
 1992 1991 1992 1991
 Revenues:
 Publishing $ 916 $ 877 $ 3,123 $ 3,021
 Music 963 877 3,214 2,960
 Entertainment
 Filmed Entertainment 1,035 895 3,455 3,065
 Programming - HBO 345 359 1,444 1,366
 Cable 532 492 2,091 1,935
 Intersegment elimination (70) (110) (257) (326)
 Total $3,721 $3,390 $13,070 $12,021
 Operating income before
 depreciation and amortization:
 Publishing $ 132 $ 124 $ 328 $ 246
 Music 196 191 585 560
 Entertainment
 Filmed Entertainment 92 90 410 390
 Programming - HBO 56 47 215 195
 Cable 255 225 977 872
 Total 731 677 2,515 2,263
 Depreciation and amortization,
 including amortization related
 to the acquisition of WCI (314) (275) (1,172) (1,109)
 Operating income 417 402 1,343 1,154
 Interest and other, net (225) (235) (882) (966)
 Corporate expenses (36) (38) (141) (136)
 Income before income taxes 156 129 320 52
 Provision for income taxes (88) (84) (234) (151)
 Net income (loss) $ 68 $ 45 $ 86 $ (99)
 Loss per common share, based on
 net loss applicable to common
 shares of $93, $107, $542 and
 $692 million, respectively, after
 preferred dividend
 requirements $(0.25) $(0.29) $(1.46) $(2.40)
 Average shares outstanding 371.6 369.9 371.0 288.2
 NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
 Note 1: Time Warner Entertainment Company
 Time Warner Entertainment Company, L.P. ("TWE"), which includes substantially all of the Filmed Entertainment, Programming-HBO and Cable divisions of Time Warner, was capitalized on June 30, 1992 by certain wholly-owned subsidiaries of Time Warner (the "General Partners"), Toshiba Corporation ("Toshiba") and ITOCHU Corporation ("ITOCHU," formerly C. Itoh & Co., Ltd., and together with Toshiba, the "Limited Partners"). The TWE Partnership Agreement provides for special allocations of income and distributions. No portion of the operating results of TWE for the six months ended December 31, 1992 was allocable to the Limited Partners.
 Note 2: Acquisition of ATC Minority Interest
 Pursuant to an agreement and plan of merger, Time Warner acquired the minority interest in its subsidiary, American Television and Communications Corporation, on June 26, 1992 by issuing Redeemable Reset Notes due August 15, 2002 valued at $1.3 billion. The acquisition was accounted for by the purchase method of accounting for business combinations.
 Note 3: Income Taxes
 The relationship between income before income taxes and the provision for income taxes is affected by the amortization of excess cost over net assets acquired and certain other financial statement expenses that are not deductible for income tax purposes.
 Note 4: Loss Per Common Share
 Loss per common share is based upon the net loss applicable to common shareholders, after deducting preferred dividend requirements, and average common shares outstanding during the period. Average common shares outstanding for prior periods have been restated to give effect to the four-for-one common stock split that occurred on September 10, 1992. Average common shares outstanding in the current year exceeds that outstanding in the prior year primarily as a result of the issuance of 137.9 million common shares pursuant to the rights offering completed in August 1991.
 Note 5: Redemption of Series D Preferred Stock in 1993
 All shares of Series D preferred stock will be redeemed in February 1993 for an aggregate redemption price of approximately $3.536 billion. The redemption will be financed by $3 billion of long-term debt securities issued in January 1993, $482 million of proceeds from the issuance of Liquid Yield OptionTM Notes in December 1992 and other available funds.
 -0- 2/8/93
 /CONTACT: Edward Adler of Time Warner, 212-484-6630/
 (TWX)


CO: Time Warner Inc. ST: New York IN: PUB SU: ERN

LR -- NY019 -- 3920 02/08/93 08:41 EST
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