SEC Filings

S-4/A
TIME WARNER INC. filed this Form S-4/A on 03/24/2000
Entire Document
 
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Statements of Operations and Cash Flows Data:     
 

<TABLE>   
<CAPTION>
                                             Years Ended December 31,
                          ---------------------------------------------------------------
                                      1998
                             1999      Pro       1998       1997       1996       1995
                          Historical  Forma   Historical Historical Historical Historical
                          ---------- -------  ---------- ---------- ---------- ----------
                                     (in millions, except per share amounts)
<S>                       <C>        <C>      <C>        <C>        <C>        <C>
Revenues................   $27,333   $26,244   $14,582    $13,294    $10,064     $8,067
Business segment
 operating income.......     6,035     3,132     1,496      1,271        966        697
Equity in pretax income
 of entertainment
 group..................       --        --        356        686        290        256
Interest and other,
 net....................    (1,897)   (2,050)   (1,128)      (973)    (1,102)      (866)
Income (loss) before
 extraordinary item.....     1,960       168       168        301       (156)      (124)
Net income (loss).......     1,948       168       168        246       (191)      (166)
Net income (loss)
 applicable to common
 shares (after preferred
 dividends).............     1,896      (372)     (372)       (73)      (448)      (218)
Per share of common
 stock:
 Basic net income
  (loss)................   $  1.50   $ (0.31)  $ (0.31)   $ (0.06)   $ (0.52)    $(0.28)
 Diluted net income
  (loss)................   $  1.42   $ (0.31)  $ (0.31)   $ (0.06)   $ (0.52)    $(0.28)
 Dividends..............   $  0.18   $  0.18   $  0.18    $  0.18    $  0.18     $ 0.18
Average common shares:
 Basic..................   1,267.0   1,194.7   1,194.7    1,135.4      862.4      767.6
 Diluted................   1,398.3   1,194.7   1,194.7    1,135.4      862.4      767.6
Cash provided by
 operations.............     3,953     3,408     1,845      1,408        253      1,051
Cash provided (used) by
 investing activities...    (1,930)     (908)      353        (45)      (424)      (271)
Cash provided (used) by
 financing activities...    (1,181)   (2,938)   (2,401)    (1,232)      (500)       123
EBITDA(/1/).............   $ 8,564   $ 5,767   $ 2,674    $ 2,565    $ 1,954     $1,256
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(/1/) EBITDA consists of business segment operating income (loss) before
      depreciation and amortization. Time Warner considers EBITDA to be an
      important indicator of the operational strength and performance of its
      businesses, including the ability to provide cash flows to service debt
      and fund capital expenditures. EBITDA, however, should not be considered
      an alternative to operating or net income as an indicator of the
      performance of Time Warner, or as an alternative to cash flows from
      operating activities as a measure of liquidity, in each case determined
      in accordance with generally accepted accounting principles. In addition,
      this definition of EBITDA may not be comparable to similarly titled
      measures reported by other companies.     
   
   Significant Events Affecting Time Warner's Operating Trends. The
comparability of Time Warner's operating results is affected by a number of
significant and nonrecurring items recognized in some periods. For 1999, these
items included:     
     
  .  net pretax gains of approximately $2.247 billion relating to the sale or
     exchange of cable television systems and investments;     
     
  .  a pretax gain of approximately $115 million relating to the initial
     public offering of a 20% interest in Time Warner Telecom Inc., an
     integrated communications provider that provides a wide range of
     telephony and data services to businesses;     
     
  .  an approximate $215 million net pretax gain recognized in connection
     with the early termination of a long-term home video distribution
     agreement;     
     
  .  an approximate $97 million pretax gain recognized in connection with the
     sale of an interest in CanalSatellite, a satellite television platform
     serving France and Monaco;     
     
  .  a noncash pretax charge of approximately $106 million relating to Warner
     Bros.'s retail stores; and     
     
  .  an extraordinary loss of approximately $12 million on the retirement of
     debt.     
      
   For 1998, significant and nonrecurring items included:     
     
  .  net pretax gains of approximately $108 million relating to the sale or
     exchange of cable television systems and investments;     
 
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