Metromedia International Group, Inc.
Consolidated Condensed Statement of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
June 30, June 30,
------------------ ----------------
2004 2003 2004 2003
---- ---- ---- ----
Revenues $19,312 $17,802 $37,875 $34,456
Cost and expenses:
Cost of services 5,741 5,787 11,745 10,766
Selling, general and
administrative 8,326 11,132 15,614 25,225
Depreciation and amortization 6,004 5,172 11,689 10,215
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Operating loss (759) (4,289) (1,173)(11,750)
Other income (expense):
Equity in income of
unconsolidated investees 5,804 3,867 9,974 6,859
Interest expense, net (3,860) (4,209) (7,876) (9,697)
Gain on retirement of debt -- 24,117 -- 24,117
Foreign currency and other
(expense) income 595 473 (107) (465)
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Income before income tax expense,
minority interest, discontinued
components and the cumulative
effect of a change in accounting
principle 1,780 19,959 818 9,064
Income tax expense (3,116) (2,113) (3,822) (3,483)
Minority interest (2,226) (1,755) (4,142) (3,988)
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(Loss) income from continuing
operations (3,562) 16,091 (7,146) 1,593
Income from discontinued
components 518 11,120 6,828 9,839
Cumulative effect of a change in
accounting principle -- -- -- 2,012
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Net (loss) income (3,044) 27,211 (318) 13,444
Cumulative convertible preferred
stock dividend requirement (4,654) (4,332) (9,226) (8,587)
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Net (loss) income attributable to
common stockholders $(7,698) $22,879 $(9,544) $4,857
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Weighted average number of common
shares - Basic and diluted 94,035 94,035 94,035 94,035
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(Loss) income per common share -
Basic and Diluted:
Continuing operations $ (0.09) $ 0.13 $ (0.17) $(0.07)
Discontinued components 0.01 0.11 0.07 0.10
Cumulative effect of a change in
accounting principle -- -- -- 0.02
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Net (loss) income per share
attributable to common
stockholders $ (0.08) $ 0.24 $ (0.10) $ 0.05
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Metromedia International Group, Inc.
Reconciliation of Consolidated Net (Loss) Income to Consolidated
Adjusted EBITDA
(In thousands)
(unaudited)
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
2004 2003 2004 2003
------- -------- ------- ---------
Net (loss) income $(3,044) $ 27,211 $ (318) $ 13,444
Interest expense, net 3,860 4,209 7,876 9,697
Income tax expense 3,116 2,113 3,822 3,483
Depreciation and amortization 6,004 5,172 11,689 10,215
Gain on retirement of debt -- (24,117) -- (24,117)
Income from discontinued
components (518) (11,120) (6,828) (9,839)
Change in accounting -- -- -- (2,012)
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Adjusted EBITDA(1) $ 9,418 $ 3,468 $16,241 $ 871
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Notes to data for Metromedia International Group, Inc.:
1. EBITDA is a non-GAAP financial measure generally defined as
earnings before interest, taxes, depreciation and amortization.
This measure is not defined by US generally accepted accounting
principles (US GAAP) and is a measure of operating performance
commonly used in the telecommunications and media industries, but
should not be construed as an alternative to operating income
determined in accordance with US GAAP as an indicator of operating
performance or as an alternative to cash from operating activities
determined in accordance with US GAAP as a measure of liquidity.
We use the non-GAAP financial measure "Adjusted EBITDA" which
further excludes the following items: (i) gain/(loss) on the sale
of business ventures; (ii) asset impairment charges; (iii) gain on
retirement of debt; (iv) discontinued components; and (v)
cumulative effects of changes in accounting principles. Each of
these items is presented in our Consolidated Condensed Statement
of Operations. The Company believes that Adjusted EBITDA provides
investors a better insight into the consolidated financial
performance of the Company's core business ventures and corporate
operations since the accounting effects of the following are not
considered in the derived amount: 1) corporate financing costs, 2)
deferred tax charges, 3) non-cash depreciation and amortization
expense, 4) the Company's restructuring initiatives, including any
gain/loss on the sale of business ventures and the removal of the
gain on the retirement of debt which was a part of the
consideration the Company received for the sale of certain
non-core business ventures; charges to earnings for asset
impairments; the current period financial performance of non-core
business ventures that are subject to sale; and charges due to
changes in accounting methodology.
Metromedia International Group, Inc.
Consolidated Condensed Balance Sheets
(In thousands, except share amounts)
June 30, December 31,
2004 2003
-------- ------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 32,260 $ 26,925
Accounts receivable, net 5,347 5,915
Prepaid expenses and other assets 5,922 5,981
Note receivable 6,860 --
Current assets of discontinued components 3,859 5,559
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Total current assets 54,248 44,380
Property, plant and equipment, net 91,503 86,305
Investments in and advances to business
ventures 35,220 34,707
Goodwill and intangible assets, net 32,229 35,385
Other assets 5,211 6,104
Noncurrent assets of discontinued components 8,430 20,085
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Total assets $ 226,841 $226,966
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LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Accounts payable $ 2,558 $ 4,085
Accrued expenses 20,473 23,941
Current portion of long-term debt 1,714 1,376
Current liabilities of discontinued
components 5,404 7,187
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Total current liabilities 30,149 36,589
Long-term debt 154,252 153,383
Deferred income taxes and other long-term
liabilities 17,317 17,058
Noncurrent liabilities of discontinued
components 233 376
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Total liabilities 201,951 207,406
Minority interest 36,359 32,715
Total stockholders' deficiency (11,469) (13,155)
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Total liabilities and stockholders'
deficiency $ 226,841 $226,966
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