Time Warner Inc. Reports Third-Quarter 2012 Results - Reaffirms 2012 Full-Year Business Outlook
Time Warner Inc. Reports Third-Quarter 2012 Results
NEW YORK--(BUSINESS WIRE)--Time Warner Inc. (NYSE:TWX) today reported financial results for its third quarter ended September 30, 2012.
Chairman and Chief Executive Officer Jeff Bewkes said: "With one quarter left to go in 2012, we're on track for another very strong year. The highlight this quarter was the strength of our Networks businesses, which delivered double digit Adjusted Operating Income growth. This performance illustrates that our investments in content and technology are continuing to pay off. We're experiencing good momentum across most of Turner's networks. TBS, for instance, was up 35% in primetime for adults 18-49 this quarter and is now the #1 network on cable this year for adults 18-34. At HBO, the unmatched volume of its quality original programming was underscored by the 23 Primetime Emmy awards HBO received this year—more than any other network for the eleventh consecutive year. With compelling content, technological innovations like HBO GO and support from our affiliates, the subscriber trends at HBO today are the best they've been in years."
Mr. Bewkes continued: "Our studio faced difficult comparisons in the third quarter, but Warner Bros. Television is having a terrific broadcast season with a successful mix of new and returning shows. For Warner Bros.' theatrical business, the story this quarter was The Dark Knight Rises, which has brought in over $1 billion at the global box office, surpassing The Dark Knight. And the studio is off to a great start to the fourth quarter with the critical and audience acclaim for Argo, which we'll follow with the highly-anticipated release next month of the first installment of The Hobbit. Overall, I'm very confident about how we're positioned heading into next year and beyond. Reflecting that confidence and our continued commitment to improving shareholder returns, through November 2 we've purchased approximately $2.3 billion of our stock this year."
In the third quarter of 2012, Revenues decreased 3% to $6.8 billion as growth at the Networks segment was more than offset by declines at the Film and TV Entertainment and Publishing segments. Adjusted Operating Income declined 1% to $1.6 billion in the quarter as growth at the Networks and Publishing segments was more than offset by a decline at the Film and TV Entertainment segment. Operating Income also fell 1% to $1.6 billion. Adjusted Operating Income and Operating Income margins were both 23% in the third quarter of 2012, unchanged from the prior year quarter.
In the third quarter, the Company posted Adjusted Diluted Net Income per Common Share ("Adjusted EPS") of $0.86 versus $0.79 for the year-ago quarter. Diluted Income per Common Share was $0.86 for the three months ended September 30, 2012 compared to $0.78 in the prior year quarter.
For the first nine months of 2012, Cash Provided by Operations from Continuing Operations reached $2.3 billion, and Free Cash Flow totaled $2.0 billion. As of September 30, 2012, Net Debt was $16.7 billion, up from $16.0 billion at the end of 2011, due to share repurchases and dividends, partially offset by the generation of Free Cash Flow.
Refer to "Use of Non-GAAP Financial Measures" in this release for a discussion of the non-GAAP financial measures used in this release and the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Stock Repurchase Program Update
From January 1, 2012 through November 2, 2012, the Company repurchased approximately 59 million shares of common stock for approximately $2.3 billion. These amounts reflect the purchase of approximately 20 million shares of common stock for approximately $869 million since the amounts reported in the Company's second quarter earnings release issued on August 1, 2012. As of November 2, 2012, approximately $2.1 billion remained under the Company's stock repurchase authorization.
Presentation of Financial Information
The schedule below reflects Time Warner's financial performance for the three and nine months ended September 30 by line of business (millions).
Time Warner Inc. Reaffirms 2012 Full-Year Business Outlook
NEW YORK, Nov 07, 2012 (BUSINESS WIRE) --Time Warner Inc. (NYSE:TWX) today reaffirmed its 2012 full-year business outlook. The Company continues to expect its 2012 full-year percentage growth rate in Adjusted Diluted Net Income per Common Share (“Adjusted EPS”) to be in the low double digits off a 2011 Adjusted EPS base of $2.89.
The outlook above does not include the impact of any future merger or unplanned restructuring and severance charges, the impact from sales and acquisitions of operating assets or the impact of taxes on the above items that may occur from time to time due to management decisions and changing business circumstances. The Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events.