FOUR....
no problem with volume today.
have a look....( the link is erratic
so i have posted the release...)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Four Media Company Announces Record Fiscal Year End Results
PR Newswire - October 29, 1998 09:25
* Fiscal Year Revenues and EBITDA up 52.8% and 60.0%, Respectively
* Operating Divisions Experience Substantial Revenue Growth
BURBANK, Calif., Oct. 29 /PRNewswire/ -- Four Media Company (Nasdaq: FOUR) today announced record revenues and earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months and year ending August 2, 1998, demonstrating the continued success of its growth strategy as businesses formed and acquired during fiscal 1998 made significant contributions to the record results. Net earnings before extraordinary items increased 130.8% over fiscal 1997 to a record $.29 per share.
Commenting on the announcement, Robert T. Walston, Chairman and Chief Executive Officer of Four Media Company stated, "Our record financial performance is the result of internal growth coupled with the successful integration of our fiscal 1998 acquisitions: Pacific Ocean Post, Video Symphony, and the formation of Company 3. The success of our growth strategy is highlighted by the 52.8% and 60.0% increase in revenues and EBITDA respectively, over the prior fiscal year. Other significant achievements of fiscal 1998 include the successful closing of our $200 million senior credit facility and the continued acceptance of digital technology in the markets we serve, resulting in more comprehensive relationships with our studio clients. Business prospects remain excellent as trends in our industry continue to favor our acquisition and global expansion strategy."
Revenues for the three months ended August 2, 1998 increased 50% to $34.2 million compared with $22.8 million for the three months ended August 3, 1997. EBITDA for the three months ended August 2, 1998 increased 81.7% to $8.5 million compared with $4.7 million for the three months ended August 3, 1997. The Company reported net income of $1,145,000 or $. 10 per share for the three months ended August 2, 1998 compared with $427,000 or $.04 per share for the three months ended August 3, 1997.
Revenues for the year ended August 2, 1998 increased 52.8% to $129.2 million compared with $84.5 million for the year ended August 3, 1997. EBITDA for the year ended August 2, 1998 increased 60.0% to $29.5 million compared with $18.4 million for the year ended August 3, 1997. The Company reported net income before extraordinary items of $3,190,000 or $.29 per share for the year ended August 2, 1998 compared with $1,382,000 or $.16 per share for the year ended August 3, 1997. A one-time charge against earnings of $2.4 million in the third quarter related to the early extinguishment of debt and resulted in net earnings after extraordinary items for fiscal 1998 of $741,000 or $.07 per share.
Commenting on the financial results, Alan S. Unger, Chief Financial Officer of Four Media Company stated, "We are particularly pleased with the fiscal year financial results, which highlight the significant contribution of three acquired companies during the period as well as continued strong performance in existing businesses. In addition, the 81.3% growth in EPS for the fiscal year is indicative of our ability to generate enhanced net earnings from our investment in digital infrastructure and from the successful integration of acquired businesses."
Four Media Company is a leading provider of technical and creative services to owners, producers and distributors of television programming, feature films and other entertainment content both domestically and internationally. The Company's services integrate and apply a variety of systems and processes to enhance the creation and distribution of entertainment content. Four Media's client base includes the world's largest entertainment companies. As a result of its investments and acquisitions, Four Media Company is one of the largest and most diversified providers of technical and creative services to the entertainment industry, which enables the Company to offer its customers a single source for such services.
This press release contains forward-looking statements which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "intends," "expects," "believes" and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors described in the Company's filings with the Securities and Exchange Commission, including it's 1997 Prospectus. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
FOUR MEDIA COMPANY
Consolidated Balance Sheets
(In thousands, except per share data)
August 3, August 2,
ASSETS 1997 1998
Current assets:
Cash $6,089 $3,301
Restricted cash 680 --
Trade accounts receivable, net
of allowance for doubtful
accounts of $1,873 (1997)
and $1,258 (1998) 18,755 31,657
Inventory 952 1,263
Prepaid expenses and
other current assets 3,219 5,624
Total current assets 29,695 41,845
Property, plant and equipment, net 93,672 124,230
Deferred taxes 2,000 6,572
Long-term receivable 4,067 3,276
Goodwill, less accumulated
amortization of $529 -- 37,507
Other assets 2,803 2,914
Total assets $132,237 $216,344
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term
debt and capital lease obligations $10,559 $6,184
Accounts payable 11,080 10,781
Accrued and other liabilities 6,227 5,980
Deferred taxes -- 1,615
Total current liabilities 27,866 24,560
Long-term debt and capital
lease obligations 54,633 124,671
Total liabilities 82,499 149,231
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value;
5,000,000 authorized, 150,000
shares issued and outstanding;
liquidation preference $15,000,000 -- 14,832
Common stock, $.01 Par value;
50,000,000 shares authorized,
9,552,502 (1997) and 9,876,770
(1998) shares issued and outstanding 96 99
Additional paid-in capital 41,650 44,747
Foreign currency translation
adjustment (269) (1,567)
Retained earnings 8,261 9,002
Total stockholders' equity 49,738 67,113
Total liabilities and
stockholders' equity $132,237 $216,344
FOUR MEDIA COMPANY
Consolidated Statements of Operations
(In thousands, except per share data)
Fiscal Year Ended Three Months Ended
August 3, August 2, August 3, August 2,
1997 1998 1997 1998
Revenues:
Manufacturing and
distribution $26,658 $35,633 $7,992 $9,919
Broadcast 23,694 22,701 6,390 5,800
Television 30,768 60,405 7,002 15,664
Film 3,407 10,429 1,390 2,768
Total revenues 84,527 129,168 22,774 34,151
Cost of services:
Personnel 31,804 50,431 9,039 12,975
Material 7,315 10,243 2,099 2,701
Facilities 5,128 6,512 1,203 1,799
Other 8,937 13,958 2,506 3,386
Total cost of
services 53,184 81,144 14,847 20,861
Gross profit 31,343 48,024 7,927 13,290
Operating expenses:
Sales, general and
administrative 12,899 18,504 3,252 4,785
Depreciation and
amortization 13,175 18,191 3,833 4,651
Total operating
expenses 26,074 36,695 7,085 9,436
Income from
operations 5,269 11,329 842 3,854
Interest expense, net 3,887 8,139 415 2,709
Income before income
tax benefits and
extraordinary item 1,382 3,190 427 1,145
Income tax benefits -- -- -- --
Income before
extraordinary item 1,382 3,190 427 1,145
Extraordinary loss
on early extinguishment
of debt -- (2,449) -- --
Net income $1,382 $741 $427 $1,145
Earnings per common
share - Basic
Income before
extraordinary item $0.17 $0.33 $0.04 $0.12
Extraordinary item -- (0.25) -- --
Net income per
common share $0.17 $0.08 $0.04 $0.12
Earnings per common
share - Diluted
Income before
extraordinary item $0.16 $0.29 $0.04 $0.10
Extraordinary item -- (0.22) -- --
Net income per
common share $0.16 $0.07 $0.04 $0.10
Weighted average number
of common shares
outstanding:
Basic 7,971 9,634 9,553 9,877
Diluted 8,563 10,898 10,138 12,014
SOURCE Four Media Company
/CONTACT: Robert T. Walston, Chairman and Chief Executive Officer, or
Alan S. Unger, Chief Financial Officer, or Sandra C. Mays, Vice President -
Investor Relations, all of Four Media Company, 818-840-7356 (phone),
818-846-5197 (fax)/
/Web site: 4mc.com
(FOUR)
|
