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Metromedia International Group Reports a Subscriber Count Increase of 132%, Significant Revenue and Cash Flow Growth, and a Strengthened Balance Sheet for the Third Quarter of 1997
November 14, 1997 03:30 PM
EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--November 14, 1997--Metromedia International Group Inc. today reported that its Communications Group's combined joint venture subscriber count increased 132% to nearly a quarter-million subscribers compared to the third quarter of 1996. For the first nine months of 1997, combined joint venture revenues increased 41% to $59 million, and combined joint venture cash flow increased 163% to nearly $13 million, compared with the same period in 1996.
The Company's combined joint venture's (The Company's Communications Group's consolidated plus unconsolidated joint venture operations) subscriber count for its wireless cable, TV, paging, and telephony businesses (collectively known as the Communications Group) as of September 30, 1997, was 246,773, compared with 106,308 at September 30, 1996, representing a 132% increase. Combined revenues for the first nine months of 1997 were $58,995,000, compared with $41,905,000, for the same period in 1996, representing a 41% increase. Combined cash flow (earnings before interest, taxes, depreciation, and amortization (EBITDA)) for the first nine months of 1997 were $12,875,000 compared with $4,899,000 for the same period in 1996, representing a 163% increase.
Stuart Subotnick, President and Chief Executive Officer, said: "Increases in subscribers, revenue, and cash flow are extremely strong. Coupled with a 33% growth this year in the number of ventures, we expect future growth to continue according to our plans." Mr. Subotnick also said: "Recent activities have caused the Company's balance sheet to strengthen dramatically. In July, the Company completed its previously announced sale of its Entertainment Group, and in conjunction with the sale, the Company redeemed all of its outstanding subordinated debentures. In September, the Company raised approximately $200 million from the successful completion of a preferred stock offering. As a result, the Company's debt-to-capitalization ratio has been significantly reduced, and when we combine the net proceeds from the preferred offering with the net cash generated from the sale of the Entertainment Group, the Company is now armed with a considerable cash position of approximately $310 million."
FINANCIAL RESULTS OF CONSOLIDATED BUSINESSES
Revenues from continuing operations for the three months ended September 30, 1997 were $36,545,000, compared with revenues of $4,380,000 for the same period in 1996. The Company reported an operating loss for the 1997 third quarter of $20,803,000, compared with an operating loss of $10,022,000 for the second quarter of 1996. Earnings from continuing operations, for the 1997 third quarter were a loss of $31,279,000, or a loss of $0.46 per common share, compared with a net loss of $13,263,000, or a loss of $0.19 per common share for the same period in 1996. Earnings after discontinued operations and extraordinary items for the 1997 third quarter were $207,608,000, or a profit of $2.98 per common share, compared with a net loss of $42,860,000, or a loss of $0.66 per common share for the same period in 1996.
Revenues from continuing operations for the nine-month period ended September 30, 1997 were $147,520,000, compared with revenues of $10,319,000 for the same period in 1996. The Company reported an operating loss for the first nine months of 1997 of $48,026,000, compared with an operating loss of $28,110,000 for the same period in 1996. Earnings from continuing operations for the nine months ended September 30, 1997 were a loss of $90,742,000, or a loss of $1.34 per common share, compared with a loss of $42,514,000, or a loss of $0.84 per common share. Earnings after discontinued operations and extraordinary items for the nine months ended September 30, 1997 were $112,384,000, or a profit of $1.64 per common share, compared with a net loss of $80,851,000, or a loss of $1.60 per common share for the same period in 1996.
The gain on the sale of the Company's Entertainment Group amounted to $246,346,000, and is included in the results described above.
The Company has set a record date of November 15, 1997 for the dividend payment on its 7.25% cumulative convertible preferred stock. The dividend will be paid on December 15, 1997.
As a number of the Company's Communications Group's joint ventures are in the early stages of development, the Company expects this group to generate significant operating and net losses as it continues to build out and market its services. Management believes that its goals will be achieved through a combination of the Company's successful implementation and execution of its growth strategy to become a global communications and media company and the Company's joint ventures achieving positive operating results and cash flows through revenue and subscriber growth and control of operating expenses.
Metromedia International Group is a global communications and media company which, through its Communications Group, is engaged in the development and operation of communications businesses, including wireless cable television systems, FM and AM radio broadcasting, radio paging services, and various forms of telephony services including wireless local loop telephone services, GSM cellular telephone services, an international toll calling service and trunked mobile radio services in Eastern Europe, the republics of the former Soviet Union, the People's Republic of China, and other selected emerging markets.
Statements in this news release relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Metromedia International to be materially different from those expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, foreign political and economic risk, changes in laws and regulations governing the Company's foreign operations, motion picture industry trends, and other factors which are described in the Company's Securities and Exchange Commission filings. |
