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View Full Version : MGM Posts Narrower Third-Quarter Loss!


TheEveningStar
27-10-04, 02:22
LOS ANGELES - Film studio Metro-Goldwyn-Mayer Inc. Tuesday reported a net loss in the third quarter on lower revenue as the company prepares to be purchased by a consortium led by Sony Corp.

MGM reported a net loss of $26.7 million, or 11 cents per share, in the quarter ended Sept. 30 compared to a loss of $32.6 million, or 13 cents per share in the same period last year.

The company said the loss included expenses of $3.8 million, or .02 cent per share, related to the pending acquisition of MGM. The company also took an $8 million, or .03 cent per share, non-cash charge from its decision to expense employee stock options.

Last year's loss included a charge of $5.1 million, or .02 cent per share, related to MGM's failed bid for the entertainment assets of Vivendi Universal.

The results matched the expectations of analysts surveyed by Thomson First Call.

Revenue fell to $401.3 million in the quarter, compared to $457 million in the same period last year.

The company reported $26.9 million in net cash from continuing operations in the quarter.

Last month, MGM agreed to sell the company for $12 per share in cash, or about $3 billion, plus the assumption of about $2 billion in debt.

The buyers include Sony Corp., Comcast Studios Investments Inc., and several private equity groups. Sony has said it intends to operate MGM as a separate business once the deal closes.

For the first nine months of the year, MGM reported a net loss of $67.7 million, or 29 cents per share, compared to a loss of $222 million, or 90 cents per share in the same period last year.

Revenue for the first nine months fell to $1.271 billion from $1.339 billion.

Before the earnings report was released, MGM shares rose 3 cents to close at $11.79 on the New York Stock Exchange.
yahoo.com

tlr online
27-10-04, 02:27
:(

TheEveningStar
27-10-04, 02:34
yeps, its quiet a shame... i guess we will see some changes on movies when they sell the company...