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Press release from Business Wire

Time Warner Inc. Provides 2013 Full-Year Business Outlook

Wednesday, February 06, 2013

Time Warner Inc. Provides 2013 Full-Year Business Outlook07:01 EST Wednesday, February 06, 2013 NEW YORK (Business Wire) -- Time Warner Inc. (NYSE:TWX) today provided its 2013 full-year business outlook. The Company expects its 2013 full-year percentage growth rate in Adjusted Diluted Net Income per Common Share (“Adjusted EPS”) to be in the low double digits off a 2012 Adjusted EPS base of $3.28. This outlook reflects the impact of approximately $60 million in restructuring charges that the Company anticipates incurring in 2013 at Time Inc. 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. Use of Adjusted EPS Measure Adjusted EPS is Diluted Net Income per Common Share attributable to Time Warner Inc. common shareholders excluding noncash impairments of goodwill, intangible and fixed assets and investments; gains and losses on operating assets, liabilities and investments; gains and losses recognized in connection with pension plan curtailments, settlements or termination benefits; external costs related to mergers, acquisitions, investments or dispositions, as well as contingent consideration related to such transactions, to the extent such costs are expensed; amounts related to securities litigation and government investigations; and amounts attributable to businesses classified as discontinued operations, as well as the impact of taxes and noncontrolling interests on the above items. Adjusted EPS is considered an important indicator of the operational strength of the Company's businesses as this measure eliminates amounts that do not reflect the fundamental performance of the Company's businesses. The Company utilizes Adjusted EPS, among other measures, to evaluate the performance of its businesses both on an absolute basis and relative to its peers and the broader market. Many investors also use an adjusted EPS measure as a common basis for comparing the performance of different companies. Some limitations of Adjusted EPS, however, are that it does not reflect certain cash charges that affect the operating results of the Company's businesses and that it involves judgment as to whether items affect fundamental operating performance. Also, a general limitation of Adjusted EPS is that it is not prepared in accordance with U.S. generally accepted accounting principles and may not be comparable to similarly titled measures of other companies due to differences in methods of calculation and excluded items. Adjusted EPS should be considered in addition to, not as a substitute for, the Company's Diluted Net Income per Common Share and other measures of financial performance reported in accordance with U.S. generally accepted accounting principles. About Time Warner Inc. Time Warner Inc., a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets. Caution Concerning Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors and other factors affecting the operation of Time Warner's businesses, and any future merger or unplanned restructuring charges, sales and acquisitions of operating assets and investments, or the impact of taxes on the above items, that may occur from time to time due to management decisions and changing business circumstances. More detailed information about these factors may be found in filings by Time Warner with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Time Warner is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. Information on Earnings Release & Conference CallIn a separate release issued today, Time Warner Inc. reported the financial results for its fourth quarter and full year ended December 31, 2012.The Company's conference call can be heard live at 10:30 am ET on Wednesday, February 6, 2013.To listen to the call, visit www.timewarner.com/investors.   TIME WARNER INC.RECONCILIATION OF GUIDANCE(Unaudited)         Year Ended December 31, 2012 Reconciliation of 2013 Guidance   Reconciliation of Adjusted Diluted Net Income per Common Share ("Adjusted EPS") to Diluted Net Income per Common Share attributable to Time Warner Inc. common shareholders     Adjusted EPS (1) $ 3.28 Expected percentage growth in the low double digits.   Asset impairments (0.19 ) Unable to estimate.   Gains (losses) on operating assets, net 0.01 Unable to estimate.   Other operating income items (0.03 ) Unable to estimate.   Gains and losses on investments (0.08 ) Unable to estimate beyond the $0.07 - $0.08 expected to be recognized for the periodJanuary 1, 2013 through March 31, 2013.(2)   Other items - Unable to estimate.   Tax impact on above items   0.10   Unable to estimate beyond the ($0.04) - ($0.05) expected to be recognized for theperiod January 1, 2013 through March 31, 2013.(2)   Diluted Net Income per Common Share attributable to Time Warner Inc. common shareholders $ 3.09   Unable to estimate.   (1) Adjusted EPS is Diluted Net Income per Common Share attributable to Time Warner Inc. common shareholders excluding noncash impairments of goodwill, intangible and fixed assets and investments; gains and losses on operating assets, liabilities and investments; gains and losses recognized in connection with pension plan curtailments, settlements or termination benefits; external costs related to mergers, acquisitions, investments or dispositions, as well as contingent consideration related to such transactions, to the extent such costs are expensed; amounts related to securities litigation and government investigations; and amounts attributable to businesses classified as discontinued operations, as well as the impact of taxes and noncontrolling interests on the above items. (2) The Film and TV Entertainment segment expects to close on a sale of its investment in a joint venture in Japan during the first quarter of 2013. In connection with this sale, the Company expects to incur a pretax gain of approximately $60 million to $70 million in the first quarter of 2013. Time Warner Inc.Corporate CommunicationsKeith Cocozza (212) 484-7482orInvestor RelationsDoug Shapiro (212) 484-8926Michael Kopelman (212) 484-8920