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Document Preview For Immediate Release |
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Title: |
For Immediate Release |
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Entities: |
DLJ Merchant Banking Partners IV LP; Metro-Goldwyn-Mayer Inc.; Vivendi Universal Entertainment LLLP |
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Date: |
2004 |
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11KB total |
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$40 |
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#361292 |
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| For immediate release | Contact: Joseph Fitzgerald | |
| October 26, 2004 | (310) 449-3660 |
MGM ANNOUNCES CONTINUED STRONG
CASH FLOW FROM OPERATIONS
Los Angeles, CA Metro-Goldwyn-Mayer Inc. (NYSE:MGM) announced today that net cash provided by operating activities totaled $26.9 million in the quarter ended September 30, 2004.
Third quarter revenues were $401.3 million, compared to $457.1 million in the prior year period. The Companys net loss in the third quarter was $26.7 million, or $0.11 per share. The net loss included expenses of $3.8 million, or $.02 per share, related to the pending acquisition of MGM. Additionally, the net loss included a non-cash charge of $8.0 million, or $.03 per share, from the Companys early election to expense employee stock options. The third quarter of 2003 net loss of $32.6 million, or $0.13 per share, included a charge of $5.1 million, or $0.02 per share, for costs incurred in connection with MGMs bid for Vivendi Universal Entertainment.
On September 23, 2004, LOC Acquisition Company entered into a definitive agreement to acquire MGM for $12 in cash per MGM share, plus the assumption of MGMs approximately $2.0 billion in debt. LOC Acquisition Company is a Delaware corporation which, at the time of the merger, will be owned by Sony Corporation of America, Comcast Studio Investments, Inc. and affiliates of Providence Equity Partners, Texas Pacific Group and DLJ Merchant Banking Partners. The transaction is subject to MGM shareholder approval, various regulatory approvals and customary closing conditions.
-more-
Page 2 of 6 - MGM 3Q04 Earnings Release
Alex Yemenidjian, Chairman and Chief Executive Officer, commented: We are especially pleased to combine MGM with Sony and its partners. The transaction will complete a dramatic transformation of our Company over the past five years, which has delivered superior returns to MGM shareholders.
Chris McGurk, Vice Chairman and Chief Operating Officer, added: Our film, television, MGM Networks and home entertainment operations are all on track to finish the year strongly. The Stargate franchise has been a particularly strong performer and our film slate for next year, anchored by Pink Panther, Be Cool, The Amityville Horror and Beauty Shop looks especially promising.
THIRD QUARTER 2004 OPERATING HIGHLIGHTS
| Worldwide home entertainment unit shipments increased 30 percent. |
| Walking Tall, Agent Cody Banks 2, and Barbershop 2 were among MGMs top-selling newly released home entertainment titles. The Manchurian Candidate and The Good the Bad and the Ugly were among the top-selling library titles. |
| De-Lovely will contribute solid first cycle profits. |
| Hotel Rwanda, which will premiere in December, won the top prize at the Toronto Film Festival. |
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