SEC Filings

S-4
TIME WARNER INC. filed this Form S-4 on 02/11/2000
Entire Document
 
<PAGE>
 
Statement of Operations Data:
 

<TABLE>
<CAPTION>
                               Nine Months Ended
                                 September 30,                             Years Ended December 31,
                         ------------------------------ ---------------------------------------------------------------
                                     1998                1998
                            1999      Pro       1998      Pro       1998       1997       1996       1995       1994
                         Historical  Forma   Historical  Forma   Historical Historical Historical Historical Historical
                         ---------- -------  ---------- -------  ---------- ---------- ---------- ---------- ----------
                                                   (in millions, except per share amounts)
<S>                      <C>        <C>      <C>        <C>      <C>        <C>        <C>        <C>        <C>
Revenues...............   $19,345   $18,977   $10,387   $26,244   $14,582    $13,294    $10,064     $8,067    $ 7,396
Business segment
 operating income......     3,931     2,093       869     3,132     1,496      1,271        966        697        713
Equity in pretax income
 of entertainment
 group.................       --        --        437       --        356        686        290        256        176
Interest and other,
 net...................    (1,387)   (1,410)     (877)   (2,122)   (1,180)    (1,044)    (1,174)      (877)      (724)
Income (loss) before
 extraordinary item....     1,112        78        78       168       168        301       (156)      (124)       (91)
Net income (loss)......     1,100        78        78       168       168        246       (191)      (166)       (91)
Net income (loss)
 applicable to common
 shares (after
 preferred dividends)..     1,055      (158)     (158)     (372)     (372)       (73)      (448)      (218)      (104)
Net income (loss) per
 share of common stock:
 Basic.................   $  0.84   $ (0.13)  $ (0.13)  $ (0.31)  $ (0.31)   $ (0.06)   $ (0.52)    $(0.28)   $ (0.14)
 Diluted...............   $  0.81   $ (0.13)  $ (0.13)  $ (0.31)  $ (0.31)   $ (0.06)   $ (0.52)    $(0.28)   $ (0.14)
Dividends..............   $ 0.135   $ 0.135   $ 0.135   $  0.18   $  0.18    $  0.18    $  0.18     $ 0.18    $ 0.175
Average common shares:
 Basic.................   1,260.5   1,184.0   1,184.0   1,194.7   1,194.7    1,135.4      862.4      767.6      757.8
 Diluted...............   1,400.4   1,184.0   1,184.0   1,194.7   1,194.7    1,135.4      862.4      767.6      757.8
EBITDA(1)..............   $ 5,784   $ 4,077   $ 1,753   $ 5,767   $ 2,674    $ 2,565    $ 1,954     $1,256    $ 1,150
</TABLE>

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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 the nine
months ended September 30, 1999, these items included (a) net pretax gains of
approximately $1.248 billion relating to the sale or exchange of cable
television systems and investments, (b) a net pretax gain of approximately $215
million from the early termination of a long-term video distribution agreement,
(c) a pretax gain of approximately $115 million relating to the initial public
offering of a 20% interest in Time Warner Telecom, Inc. and (d) an
extraordinary loss of approximately $12 million on the retirement of debt. For
the full year 1998, significant and nonrecurring items included (a) net pretax
gains of approximately $108 million relating to the sale or exchange of cable
television systems and investments, (b) a pretax charge of approximately $210
million principally to reduce the carrying value of an interest in Primestar,
Inc. and (c) a one-time increase in preferred dividend requirements of
approximately $234 million relating to the premium paid in connection with Time
Warner's redemption of its series M preferred stock. For 1997, significant and
nonrecurring items included (a) net pretax gains of approximately $212 million
relating to the sale or exchange of cable television systems and investments,
(b) a pretax gain of approximately $200 million relating to the disposal of an
interest in Hasbro, Inc. and the related redemption of certain mandatorily
redeemable preferred securities of a subsidiary, (c) a pretax gain of
approximately $250 million relating to the sale of an interest in E!
Entertainment Television, Inc. and (d) an extraordinary loss of approximately
$55 million on the retirement of debt. For 1996, significant and nonrecurring
items included an extraordinary loss of approximately $35 million on the
retirement of debt. For 1995, significant and nonrecurring items included (a)
pretax losses of
 
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