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Technology Stocks : Metromedia International Group (MMG) Looking for Opinions -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (111)	2/26/1998 9:35:00 AM
From: leigh aulper	Read Replies (1) \| Respond to of 353

Metro-Goldwyn-Mayer Announces 1997 Year, Fourth-Quarter Results SANTA MONICA, Calif.--(BUSINESS WIRE)--Feb. 26, 1998-- Metro-Goldwyn-Mayer Inc. (NYSE:MGM) Thursday reported results for the fourth quarter and year ended Dec. 31, 1997, posting net losses as anticipated for the periods. This is the company's second financial report following the company's initial public offering on Nov. 13, 1997. As a consequence, per-share results for 1997 are reported on the basis of 28.6 million pro forma weighted average shares outstanding vs. 65.8 million shares outstanding at year end. Prior-year results are not comparable due to the change in the company's ownership in October 1996, and the acquisition of Orion Pictures Corp. and certain of its subsidiaries in July 1997. The results for the year reflect a slowdown in film production following the change in ownership, investments in the subsequent ramp up of new film production and other operations, and writedowns associated with certain film and television productions in 1997. "The past year was a transitional period for MGM. As planned, in 1997 we invested considerable effort and financial resources to continue the rebuilding of the company, including the acquisition of Orion and Goldwyn assets and the ramp up of film production, to take strategic advantage of the multiple opportunities on the horizon. Consequently, we do not view 1997 results as a meaningful indicator of MGM, present or future. However, we are beginning to realize the benefits of these efforts in 1998, not the least of which is the increased financial capacity we have put in place to support the first full film production slate at MGM in two years, and the most aggressive television production slate in more than 10 years," stated Frank G. Mancuso, MGM chairman and chief executive officer. Revenues for the year ended Dec. 31, 1997, were $831.3 million. The company released 15 new feature films domestically and two internationally in 1997 -- eight of which were generated from the Orion acquisition, four were distribution transactions, and three of which were produced by MGM or United Artists. Included in 1997 was "Tomorrow Never Dies," the 18th James Bond film that was released worldwide in late December and will generate a significant portion of its revenues in 1998. Reported EBITDA for the full year 1997 was a loss of $49.1 million, while the net loss for full year 1997 was $128.1 million, or $4.47 per share based on 28.6 million weighted average shares outstanding, which does not give effect to shares issued in connection with the company's initial public offering and the related conversion of preferred stock until Nov. 13, 1997. Based on 65.8 million shares outstanding at year end, the pro forma net loss per share was equal to $1.95. Operating expenses in 1997 included increased film and television activity; investment by MGM in its emerging consumer products and branded programming businesses; and the company's acquisition of the entertainment assets of Metromedia International during the year. Revenues for the fourth quarter of 1997 were $259.2 million vs. $228.7 million for the period from Oct. 10 to Dec. 31, 1996 (the "1996 period"). The company released six new feature films domestically in the fourth quarter of 1997 compared with two films in release in the 1996 period. Quarterly revenues also included television revenues generated from both domestic and international pay television markets, network television license fees and worldwide syndication revenues. Television programming revenues in the 1997 period also reflected the successful new Stargate SG-1 series. Fourth-quarter EBITDA was a loss of $56.9 million vs. net income of $16.7 million in the 1996 period. The 1997 quarter was negatively impacted by writedowns on certain film and television properties, among other factors. The net loss for the 1997 quarter was $82.5 million, or $1.64 per share based on 50.3 million weighted average shares outstanding during the period and a pro forma net loss of $1.26 per share based on 65.8 million shares outstanding at Dec. 31, 1997. This compares with net income of $166,000, or $.01 per share, based on 16.7 million weighted average shares outstanding in the 1996 period. "The integration of the Orion and Goldwyn assets formerly part of Metromedia is now substantially complete. The financial impact from the exploitation of these assets will be reflected in MGM's performance in 1998 and beyond," stated Michael G. Corrigan, senior executive vice president and chief financial offic