SEC Filings

S-4/A
TIME WARNER INC. filed this Form S-4/A on 03/24/2000
Entire Document
 
<PAGE>
 
                  UNAUDITED COMPARATIVE PER SHARE INFORMATION
 
   We present below per common share data regarding the income, cash dividends
declared and book value of America Online and Time Warner on both historical
and unaudited pro forma consolidated bases and on a per share equivalent
unaudited pro forma basis for Time Warner. We have derived the unaudited pro
forma consolidated per share information from the unaudited pro forma
consolidated condensed financial statements presented elsewhere in this joint
proxy statement-prospectus. Because America Online and Time Warner have
different fiscal years, and the combined company will adopt the calendar year-
end of Time Warner, pro forma per share data are presented on two different
bases: (1) a June 30 fiscal-year basis, which is consistent with America
Online's historical fiscal year-end and (2) a December 31 calendar-year basis,
which is consistent with both Time Warner's historical fiscal year-end and that
of AOL Time Warner going forward. Management believes that it is meaningful to
present pro forma financial information based on the calendar year-end of the
combined company to facilitate an analysis of the pro forma effects of the
merger. You should read the information below in conjunction with the financial
statements and accompanying notes of America Online and Time Warner that are
incorporated by reference in this joint proxy statement-prospectus and with the
unaudited pro forma consolidated information included under "Pro Forma
Consolidated Condensed Financial Statements."
 

<TABLE>   
<CAPTION>
                          As of and for the As of and for the As of and for the
                          Six Months Ended   Year Ended June     Year Ended
                          December 31, 1999     30, 1999      December 31, 1999
                          ----------------- ----------------- -----------------
<S>                       <C>               <C>               <C>
America Online
 Historical:
 Net income per common
  share:
  Basic..................      $ 0.20            $ 0.37            $ 0.47
  Diluted................        0.18              0.30            $ 0.40
 Cash dividends declared
  per common share.......         --                --                --
 Book value per common
  share..................        2.74              1.38              2.74
Time Warner Historical:
 Income per common share
  before extraordinary
  item:
  Basic..................      $ 0.94            $ 0.36            $ 1.51
  Diluted................        0.90              0.36              1.43
 Cash dividends declared
  per common share.......        0.09              0.18              0.18
 Book value per common
  share..................        6.90              5.73              6.90
AOL Time Warner--Pro
 Forma Combined:
 Loss per common share
  before extraordinary
  item...................      $(0.26)           $(1.10)           $(0.63)
 Cash dividends declared
  per common share(/1/)..         --                --                --
 Book value per common
  share..................       36.67               --              36.67
Time Warner Per Share
 Equivalent Pro Forma:
 Loss per common share
  before extraordinary
  item...................      $(0.39)           $(1.65)           $(0.95)
 Cash dividends declared
  per common share(/1/)..         --                --                --
 Book value per common
  share..................       55.01               --              55.01
</TABLE>
    
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(/1/)AOL Time Warner does not currently intend to pay dividends on its common
     stock.     
 
   The Time Warner per share equivalent pro forma data are calculated by
multiplying the AOL Time Warner per share amounts by 1.5, the exchange ratio to
AOL Time Warner common stock. The America Online per share equivalents remain
unchanged, as the exchange ratio to AOL Time Warner common stock is one to one.
 
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