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TIME WARNER REPORTS FIRST-QUARTER RESULTS

 TIME WARNER REPORTS FIRST-QUARTER RESULTS
 NEW YORK, April 21 /PRNewswire/ -- Time Warner Inc. (NYSE: TWX)


today reported first-quarter net income of $3 million versus a net loss of $50 million for the year-earlier period. The company also reported first quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $561 million on revenues of $3.0 billion, with all of the company's five divisions showing increases in revenues and EBITDA for the quarter. In the first quarter of 1991, EBITDA was $530 million on revenues of $2.8 billion.
 The results for both 1991 and 1992 include non-cash amortization charges in excess of $125 million associated with the 1989 acquisition of Warner Communications.
 The loss per common share for the quarter was $1.62 after preferred dividends, compared with a loss of $3.39 per share last year. The average shares outstanding for the 1992 first quarter were 92.6 million versus 57.6 million for the same quarter a year ago.
 Commenting on the company's first quarter performance, Steven J. Ross, chairman and co-CEO, and Gerald Levin, president and co-CEO, said: "We are pleased that all five of our businesses achieved increases in their results compared to last year's first quarter despite some weakness in the worldwide economy. As a result, we've continued the momentum from last quarter and have again posted a net profit despite a substantial non-cash amortization charge."
 First quarter EBITDA for Time Inc., the company's publishing division, was up 5 percent to $44 million compared to $42 million a year ago. In spite of the recessionary climate, the improved results were due to gains in advertising and circulation for the company's magazines, especially Time, Time International and Southern Living. The gains in magazines more than offset lower results at the company's book publishing operation. In April, Time magazine unveiled its most fundamental redesign in its history to overwhelmingly positive reviews.
 The Warner Music Group posted first-quarter EBITDA of $141 million compared with $137 million in 1991. Increases in domestic music sales and music publishing contributed to the quarter. Bestselling U.S. artists in the quarter included Metallica, Color Me Badd, Genesis, Natalie Cole, Mr. Big and the soundtracks from "Wayne's World" and "Rush." Internationally, top-selling artists included Simply Red, Enya, Prince, Luis Miguel, Alejandro Sanz, Seal, and Umberto Tozzi. The Warner Music Group topped the industry winning 24 Grammy awards including Album of the Year and Song of the Year for Natalie Cole's "Unforgettable" and Best New Artist, Marc Cohn.
 First-quarter EBITDA from the company's Filmed Entertainment division was a record $96 million versus $95 million a year ago. Worldwide theatrical revenues were led by "JFK." The strong domestic box office success of "JFK" has been topped by an even greater success internationally. To date, it has grossed at the box office a total of $160 million worldwide. Also contributing to the quarter's results were increased worldwide videocassette revenues and sales to network and basic cable.
 Time Warner's Programming HBO division had record first-quarter EBITDA of $52 million compared with $50 million a year ago. Contributing to these results were increased earnings from the company's pay-TV services, HBO and Cinemax.
 The Time Warner Cable Group's EBITDA rose to a record $228 million in the quarter, up 11 percent from $206 million a year ago. The record results were due mainly to an increase in revenues from basic subscribers and advertising. Included in these results are startup costs for both Time Warner Cable programming and international cable ventures.
 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
 (Unaudited)
 (In millions, except per share amounts)
 Three months ended March 31 1992 1991
 Revenues:
 Publishing $ 672 $ 671
 Music 764 722
 Entertainment
 Filmed Entertainment 777 739
 Programming - HBO 351 329
 Cable 511 471
 Intersegment elimination (68) (91)
 Total revenues $ 3,007 $ 2,841
 Operating income before
 depreciation and amortization:
 Publishing $ 44 $ 42
 Music 141 137
 Entertainment
 Filmed Entertainment 96 95
 Programming - HBO 52 50
 Cable 228 206
 Total 561 530
 Depreciation and amortization,
 including amortization related
 to the acquisition of WCI (271) (274)
 Operating income 290 256
 Interest and other, net (205) (255)
 Corporate expenses (35) (31)
 Income (loss) before income taxes 50 (30)
 Provision for income taxes (47) (20)
 Net income (loss) $ 3 $ (50)
 Loss per common share, based on
 net loss applicable to common
 shares of $150 and $195 million,
 respectively, after preferred
 dividend requirements $ (1.62) $ (3.39)
 Average shares outstanding 92.6 57.6
 Notes to Consolidated Statements of Operations
 Note 1: Income Taxes. The relationship between income (loss) 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 2: Loss Per Common Share. Loss per share is based upon the net loss applicable to common shareholders, after deducting preferred dividend requirements, and average common shares outstanding during the period.
 -0- 4/21/92
 /CONTACT: Edward Adler of Time Warner, 212-484-6630/
 (TWX) CO: Time Warner Inc. ST: New York IN: ENT SU: ERN


GK -- NY012 -- 0369 04/21/92 08:23 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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