MGM announcedfourth quarter 2002 net income of $58.7m or $0.24 a share today (Feb 5),compared to net income of $39.1m or $0.16 a share for the same period in 2001.Revenues in the quarter rose approximately 65% to $620.9m from $375.5m in thefourth quarter of 2001. Alex Yemenidjian, chairman and CEO said in a statement:'MGM begins 2003 in excellent financial condition. As a result of severalrecent initiatives, 2003 will be the start of significant cash flow generationfor the company, at a time when our balance sheet is stronger and moredeleveraged [sic] than ever.'
With EBITDA(earnings before interest, tax, depreciation and amortisation) at $46.8mcompared to $64m in the prior year period, the fourth quarter results includeda net gain of $32.5m or $0.13 a share, from the sale of the MGM's 20%equity interest in the Bravo cable television network to NBC. The fourthquarter results also included other income of $13.2m or $.05 a share, from asettlement with one of the company's vendors. MGM has also provided earlyguidance for the fiscal year 2003, with net cash provided by operatingactivities expected to range from $100m-$150m. Financial officers also expectrevenues to increase by 3 %-5% to more than $1.7bn. Earnings per share areexpected to be a loss in the range of $.28-$.38.
'Our goalis to continue to grow the cash flow and value of all of our core businessesand to build upon our very successful film performance in the second half of2002,' MGM vice chairman and COO Chris McGurk added.
Key players inthe upbeat results were MGM Home Entertainment Group's combined worldwideDVD and VHS shipments, which passed 100million units for the first time for2002, and the launch of an MGM branded international channel in theNetherlands, increasing MGM Networks' penetration to almost 100countries.