Page 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(MARK ONE)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
--------------------------------
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 1-2999
------------------------------
CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-1461226
- ---------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
767 Fifth Avenue, New York, New York 10153
- ------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-0200
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------- -------
As of October 31, 1996 there were 22,515,289 shares of the
issuer's Common Stock outstanding and 7,885,738 shares of the
issuer's Class B Common Stock outstanding.
<PAGE>
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<TABLE>
PART I -- FINANCIAL INFORMATION
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
(UNAUDITED)
-------------------------------------
<CAPTION>
September 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
- ------
CURRENT ASSETS:
Cash and cash equivalents $ 154,138 $ 73,840
Marketable securities (substantially
all U.S. Government securities) 1,270,400 1,449,598
Accounts receivable, net 80,972 93,093
Film contract and prepaid broadcast rights 145,059 95,541
Prepaid expenses and other current assets 50,844 45,871
----------- -----------
Total current assets 1,701,413 1,757,943
----------- -----------
FILM CONTRACT AND, IN 1995, PREPAID BROADCAST
RIGHTS, less current portion 41,023 50,361
----------- -----------
PROPERTY, PLANT AND EQUIPMENT, net 50,967 49,927
----------- -----------
INTANGIBLE ASSETS 323,708 321,945
----------- -----------
OTHER ASSETS 63,629 23,677
----------- -----------
$ 2,180,740 $ 2,203,853
=========== ===========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
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<TABLE>
PART I -- FINANCIAL INFORMATION
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
(UNAUDITED)
-------------------------------------
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' INVESTMENT
- ----------------------------------------
CURRENT LIABILITIES:
Film contracts payable within one year $ 101,710 $ 87,634
Accounts payable and accrued expenses 115,571 105,682
Income taxes payable 30,244 33,211
----------- -----------
Total current liabilities 247,525 226,527
----------- -----------
FILM CONTRACTS PAYABLE AFTER ONE YEAR 104,154 86,392
----------- -----------
OTHER LIABILITIES 15,199 11,588
----------- -----------
MINORITY INTEREST 516,058 560,326
----------- -----------
SHAREHOLDERS' INVESTMENT:
Prior preferred stock - $1.00 dividend;
currently authorized 73,399 shares;
outstanding 73,399 shares 1,578 1,578
Convertible preferred stock - $1.40 dividend;
currently authorized 253,856 shares;
outstanding 253,856 and 275,758 shares 4,443 4,826
Class B common stock - par value $.50 per share;
authorized 50,000,000 shares; outstanding
7,918,330 and 7,652,273 shares 3,959 3,826
Common stock - par value $.50 per share;
authorized 100,000,000 shares; outstanding
22,832,818 and 21,478,079 shares 12,207 11,530
Capital surplus 330,938 301,351
Retained earnings 954,784 989,181
Treasury stock, at cost (10,006) -
Adjustment to reflect marketable
securities at market value (99) 6,728
----------- -----------
1,297,804 1,319,020
----------- -----------
$ 2,180,740 $ 2,203,853
=========== ===========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
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<TABLE>
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of dollars except per share data)
(UNAUDITED)
-----------------------------------------------
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
---------------------- ----------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 111,777 $ 115,584 $ 342,927 $ 349,527
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Expenses directly associated
with revenues 54,244 58,538 165,244 167,924
Selling, general and
administrative 31,222 39,611 98,878 103,184
---------- ---------- ---------- ----------
85,466 98,149 264,122 271,108
---------- ---------- ---------- ----------
Operating income 26,311 17,435 78,805 78,419
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest and other income, net 18,555 21,224 61,463 60,977
Equity in United Paramount
Network loss (38,909) (28,722) (106,653) (95,834)
---------- ---------- ---------- ----------
(20,354) (7,498) (45,190) (34,857)
---------- ---------- ---------- ----------
Income before income taxes
and minority interest 5,957 9,937 33,615 43,562
INCOME TAX PROVISION (CREDIT) 3,600 (8,200) 18,000 7,400
---------- ---------- ---------- ----------
Income before minority
interest 2,357 18,137 15,615 36,162
MINORITY INTEREST (3,896) (7,473) (14,086) (18,828)
---------- ---------- ---------- ----------
Net income (loss) $ (1,539) $ 10,664 $ 1,529 $ 17,334
========== ========== ========== ==========
Net income (loss) per share:
Primary $ (.05) $ .35 $ .04 $ .56
========== ========== ========== ==========
Fully diluted $ (.05) $ .27 $ .04 $ .44
========== ========== ========== ==========
3% Stock 3% Stock
DIVIDENDS PER COMMON SHARE NONE NONE Dividend Dividend
========== ========== ========== ==========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
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<TABLE>
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)
(UNAUDITED)
-----------------------------------------------
<CAPTION>
Nine Months
Ended September 30,
--------------------
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,529 $ 17,334
Adjustments to reconcile net income to net
cash provided from operating activities:
Film contract payments (68,064) (66,621)
Film contract amortization 63,487 65,030
Prepaid broadcast rights 6,090 3,639
Depreciation and other amortization 14,822 15,148
Equity in United Paramount Network loss 106,653 95,834
Minority interest 14,086 18,828
Other (1,108) 4,059
Changes in assets and liabilities:
Accounts receivable 12,121 14,644
Other assets 1,752 (4,438)
Accounts payable and other liabilities 1,227 5,745
Income taxes (3,530) (26,705)
--------- ---------
Net cash provided from operating activities 149,065 142,497
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Dispositions (purchases) of marketable securities, net 166,760 (45,027)
Investment in United Paramount Network (100,854) (105,856)
Increase in other investments (43,826) (8,000)
Capital expenditures, net (8,871) (5,102)
Other (1,338) (649)
--------- ---------
Net cash provided from (used in)
investing activities 11,871 (164,634)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital transactions of subsidiaries (71,666) (45,657)
Purchases of treasury stock (9,758) (17,795)
Proceeds from option exercises 1,211 2,175
Other (425) (448)
--------- ---------
Net cash used in financing activities (80,638) (61,725)
--------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 80,298 (83,862)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 73,840 226,183
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 154,138 $ 142,321
========= =========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
<PAGE>
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CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
1. PRINCIPLES OF CONSOLIDATION:
The accompanying condensed consolidated financial statements include
the accounts of Chris-Craft Industries, Inc. and its subsidiaries,
including Chris-Craft's majority owned (76% at September 30, 1996)
television broadcasting subsidiary, BHC Communications, Inc., and BHC's
majority owned (58% at September 30, 1996) subsidiary, United Television,
Inc. (UTV). The pro rata interests of BHC and UTV minority shareholders in
the net operations of the respective companies are reflected in minority
interest in the accompanying condensed consolidated statements of
operations. The minority shareholders' interests in the net assets of BHC
and UTV are reflected as minority interest in the accompanying condensed
consolidated balance sheets. Intercompany accounts and transactions have
been eliminated.
The financial information included herein has been prepared by
Chris-Craft, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. However,
Chris-Craft believes that the disclosures herein are adequate to make the
information presented not misleading. It is suggested that these condensed
consolidated financial statements be read in conjunction with the financial
statements and the notes thereto included in Chris-Craft's latest annual
report on Form 10-K. The information furnished reflects all adjustments
(consisting only of normal recurring adjustments) which are, in the opinion
of management, necessary for a fair statement of the results for the
interim periods. The results for these interim periods are not necessarily
indicative of results to be expected for the full year, due to seasonal
factors, among others.
2. MARKETABLE SECURITIES:
In accordance with Statement of Financial Accounting Standards (SFAS)
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities", Chris-Craft classifies its marketable securities as available-
for-sale.
At September 30, 1996, Chris-Craft's marketable securities, which
consisted substantially of U.S. Government securities, had a carrying value
of $1,271,703,000 and a fair value of $1,270,400,000. The difference of
$1,303,000 ($99,000 net of income taxes and minority interests) is
reflected as a reduction of shareholders' investment in the accompanying
condensed consolidated balance sheet. Of the investments in U.S.
Government securities, 90% mature within one year and all within two years.
<PAGE>
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At December 31, 1995, Chris-Craft's marketable securities, which
consisted substantially of U.S. Government securities, had a carrying value
of $1,435,282,000 and a fair value of $1,449,598,000. The difference of
$14,316,000 ($6,728,000 net of income taxes and minority interests) is
reflected as an increase to shareholders' investment in the accompanying
condensed consolidated balance sheet.
3. UNITED PARAMOUNT NETWORK:
In July 1994, BHC, along with Viacom Inc.'s Paramount Television
Group, formed the United Paramount Network, a fifth broadcast television
network which premiered in January 1995. BHC currently owns 100% of UPN,
and Paramount has an option exercisable through January 15, 1997 to acquire
an interest in UPN equal to that of BHC. The option price is equivalent to
approximately one-half of BHC's aggregate cash contributions to UPN through
the exercise date, plus interest.
UPN has been organized as a partnership, and BHC's partnership
interest is accounted for under the equity method. The carrying value of
such interest totalled a negative $3,672,000 at September 30, 1996 and
$2,121,000 at December 31, 1995 and is included in other liabilities and
other assets, respectively, in the accompanying condensed consolidated
balance sheets. UPN is still in its infancy, and the cost of developing
UPN is expected to remain significant for several years.
UPN's condensed consolidated statements of operations for the three
and nine months ended September 30, 1996 are as follows (in thousands):
Three Months Ended Nine Months Ended
September 30, 1996 September 30, 1996
------------- -------------
Operating revenues* $ 13,359 $ 38,423
Operating expenses* 50,466 142,220
---------- ----------
Operating loss (37,107) (103,797)
Other expense (1,802) (2,856)
---------- ----------
Loss before interest
on BHC advances (38,909) (106,653)
Interest on BHC advances
(eliminated in consolidation) (3,917) (9,688)
---------- ----------
Net loss $ (42,826) $ (116,341)
========== ==========
* With respect to certain of its programming, UPN derives no
revenue and incurs no programming expense.
<PAGE>
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4. SHAREHOLDERS' INVESTMENT:
Chris-Craft paid 3% stock dividends on its common and Class B common
stock in the respective shares of such classes on April 2, 1996. During
the nine months ended September 30, 1996, 372,883 shares of Class B common
stock were converted into 372,883 shares of common stock, and 21,902 shares
of $1.40 convertible preferred stock were converted into 286,875 shares of
common stock and 411,735 shares of Class B common stock. In addition,
67,105 shares of common stock, including 18,039 shares held in treasury,
were issued upon exercise of stock options, and 18,039 shares of common
stock were received in partial payment of option exercises. During the
nine month period, 242,900 shares of common stock were purchased by
Chris-Craft, all of which were held in treasury at September 30, 1996. As
of September 30, 1996, 905,002 shares of common stock and 12,899 shares of
$1.00 prior preferred stock remained authorized for purchase.
As of September 30, 1996, shares of Chris-Craft's authorized but
unissued common stock were reserved for issuance as follows:
Shares
----------
Conversion of Class B common stock 7,918,330
Conversion of $1.40 convertible preferred stock 8,103,771*
Stock options (including options
outstanding for 1,798,023 shares) 3,538,286
----------
19,560,387
==========
*Including Class B common shares.
5. CAPITAL TRANSACTIONS OF SUBSIDIARIES:
Since April 1990, BHC's Board of Directors has authorized the purchase
of up to 6,800,000 Class A common shares. Through September 30, 1996,
5,441,987 shares were purchased for a total cost of $345.5 million,
including $49.0 million for the first nine months of 1996, and $16.9
million in the first nine months of 1995. From 1993 through September 30,
1996, UTV purchased 1,248,276 of its common shares at an aggregate cost of
$74.7 million, including $23.2 million for the first nine months of 1996,
and $21.3 million in the first nine months of 1995.
Such purchases, together with proceeds from the exercise of UTV stock
options, BHC's special $1.00 per share dividend in the first nine months of
1995, and UTV's dividend of $.50 per share in both periods, are reflected
in capital transactions of subsidiaries in the accompanying condensed
consolidated statements of cash flows, net of intercompany eliminations.
<PAGE>
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6. COMMITMENTS AND CONTINGENCIES:
Commitments of BHC's television stations for film contracts entered
into but not available for broadcasting at September 30, 1996 aggregated
approximately $172.4 million, including $60.2 million applicable to UTV.
BHC also has a remaining commitment to invest over time up to $30.6
million, including $19.8 million applicable to UTV, in management buyout
limited partnerships.
BHC is expected to make significant expenditures developing UPN. See
Note 3.
As set forth in Note 10 of Notes to Consolidated Financial Statements
in Chris-Craft's 1995 Annual Report, Chris-Craft has been named as a
defendant (or a "potentially responsible party") in certain actions seeking
recovery for environmental damage allegedly related to (i) the activities
(discontinued since 1983) of 50% owned Montrose Chemical Corporation of
California and (ii) the activities of Montrose Chemical Co., a predecessor
company to Chris-Craft. Chris-Craft does not presently consider liability
to be "probable" in any of the Montrose related matters and no amount has
been reserved in Chris-Craft's financial statements.
7. INCOME (LOSS) PER SHARE:
Computations of income (loss) per share, all of which give retroactive
effect to the April 1996 3% stock dividend, are as follows (in thousands of
dollars except per share amounts):
</TABLE>
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------- ------------------------
1996 1995 1996 1995
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
PRIMARY:
- --------
Average outstanding common
and Class B common shares 30,225,420 29,885,622 30,068,127 29,969,388
Assumed exercise of stock options - * 449,043 460,212 261,164
----------- ----------- ----------- -----------
Total shares used in computation 30,225,420 30,334,665 30,528,339 30,230,552
=========== =========== =========== ===========
Net income (loss) $ (1,539) $ 10,664 1,529 17,334
Preferred stock dividend requirements (100) (115) (329) (349)
----------- ----------- ----------- -----------
$ (1,639) $ 10,549 $ 1,200 $ 16,985
=========== =========== =========== ===========
Primary income (loss) per share $ (.05) $ .35 $ .04 $ .56
=========== =========== =========== ===========
</TABLE>
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<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------- ------------------------
1996 1995 1996 1995
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
FULLY DILUTED:
- --------------
Average outstanding common
and Class B common shares 30,225,420 29,885,622 30,068,127 29,969,388
Assumed conversion of
$1.40 preferred stock - * 8,963,353 8,658,588 8,992,052
Assumed exercise of stock options - * 506,157 465,732 510,507
----------- ----------- ----------- -----------
Total shares used in computation 30,225,420 39,355,132 39,192,447 39,471,947
=========== =========== =========== ===========
Net income (loss) $ (1,539) $ 10,664 $ 1,529 $ 17,334
Preferred stock dividend requirements (100) (18) (55) (55)
----------- ----------- ----------- -----------
$ (1,639) $ 10,646 $ 1,474 $ 17,279
=========== =========== =========== ===========
Fully diluted income (loss) per share $ (.05) $ .27 $ .04 $ .44
=========== =========== =========== ===========
* Not included because antidilutive.
</TABLE>
<PAGE>
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CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
------------------------------------
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
------------------------------------------------
Liquidity and Capital Resources
- -------------------------------
Chris-Craft's financial position is strong and highly liquid. Cash and
marketable securities totalled $1.42 billion at September 30, 1996, and
Chris-Craft has no debt outstanding. Chris-Craft's 76% owned television
broadcasting subsidiary, BHC Communications, Inc., is currently expending
significant funds to develop the United Paramount Network, but cash flow
provided from BHC's operating activities has substantially exceeded BHC's
UPN funding since the network's January 1995 launch.
Chris-Craft's operating cash flow is generated primarily by the Television
Division's core television station group. Broadcast cash flow reflects
station operating income plus depreciation and film contract amortization
less film contract payments. The relationship between film contract
payments and related amortization may vary greatly between periods
(payments exceeded amortization by $4.6 million and $1.6 million,
respectively, in the first nine months of 1996 and 1995), and is dependent
upon the mix of programs aired and payment terms of the stations'
contracts. Reflecting such $3.0 million variance between the nine month
periods of 1996 and 1995, broadcast cash flow declined 15% to $100.0
million from $117.8 million in 1995, while station earnings declined 13%,
as explained below. Although broadcast cash flow is often used in the
broadcast television industry as an ancillary measure, it is not synonymous
with operating cash flow computed in accordance with generally accepted
accounting principles, and should not be considered alone or as a
substitute for measures of performance computed in accordance with
generally accepted accounting principles.
Chris-Craft's cash flow additionally reflects earnings associated with its
cash and marketable securities, most of which are held by BHC. Cash and
marketable securities totalled $1.42 billion at September 30, 1996,
compared to $1.52 billion at December 31, 1995, which decrease includes a
$15.6 million marketable securities net valuation adjustment. Nine month
operating cash flow of $149.1 million was more than offset by BHC's UPN
funding of $100.9 million, treasury stock purchases by BHC and UTV
totalling $73.2 million and Chris-Craft treasury stock purchases of $9.8
million.
BHC generates most of Chris-Craft's consolidated cash flow. Parent company
obligations consist solely of corporate office expenditures, current and
accrued. Parent company cash balances were augmented in January 1993 upon
the receipt of $36 million in dividends from BHC, which paid a special cash
dividend of $2.00 per share, and were again augmented in April 1995 upon
the receipt of $18 million in dividends from BHC, which paid a special
<PAGE>
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cash dividend of $1.00 per share. BHC has no plan to pay regular
dividends. Chris-Craft parent company cash balances are substantially in
excess of normal operating requirements.
Since April 1990, BHC's Board of Directors has authorized the purchase of
up to 6,800,000 Class A common shares. Through September 30, 1996,
5,441,987 shares were purchased for a total cost of $345.5 million,
including $49.0 million in the first nine months of 1996. From 1993
through September 30, 1996, UTV purchased 1,248,276 of its common shares at
an aggregate cost of $74.7 million, and at September 30, 1996, 935,749 UTV
shares remained authorized for purchase.
Chris-Craft intends to expand its operations in the media, entertainment
and communications industries and to explore business opportunities in
other industries. Chris-Craft believes it is capable of raising
significant additional capital to augment its already substantial financial
resources, if desired, to fund such additional expansion.
In July 1994, BHC, along with Viacom Inc.'s Paramount Television Group,
formed UPN, a fifth broadcast television network which premiered in January
1995. BHC currently owns 100% of UPN, and accounts for UPN under the
equity method, since Paramount has an option through January 15, 1997 to
acquire an interest in UPN equal to that of BHC. The option price is
equivalent to approximately one-half of BHC's aggregate cash contributions
to UPN through the exercise date, plus interest. BHC expenditures related
to UPN totalled $128.6 million in 1995 and $100.9 million in the first nine
months of 1996. UPN is still in its infancy, and the cost of developing
UPN is expected to remain significant for several years.
Chris-Craft's television stations make commitments for programming that
will not be available for telecasting until future dates. At September 30,
1996, commitments for such programming totalled approximately $172.4
million, including $60.2 million applicable to UTV. BHC also has a
remaining commitment to invest over time up to $30.6 million, including
$19.8 million applicable to UTV, in management buyout limited partnerships.
Chris-Craft capital expenditures generally have not been material in
relation to its financial position, and the related capital expenditure
commitments at September 30, 1996 (including any related to UPN) were not
material. Chris-Craft expects that its expenditures for UPN, future film
contract commitments and capital requirements for its present business will
be satisfied primarily from operations, marketable securities or cash
balances.
As set forth in Note 6, Chris-Craft has been named as a defendant (or
"potentially responsible party") in certain actions seeking recovery for
environmental damage allegedly related to (i) the activities (discontinued
since 1983) of 50% owned Montrose Chemical Corporation of California and
(ii) the activities of Montrose Chemical Co., a predecessor company to
Chris-Craft. As further set forth in Note 6, Chris-Craft does not
presently consider liability to be "probable" in any of the Montrose
<PAGE>
Page 13
related matters, and no amount has been reserved in Chris-Craft's financial
statements.
Results of Operations
- ---------------------
Chris-Craft recorded a third quarter net loss of $1,539,000, or $.05 per
share, compared to income of $10,664,000, or $.27 per share, in last year's
third quarter. Chris-Craft nine month net income declined to $1,529,000,
or $.04 per share, from last year's $17,334,000, or $.56 per share. The
declines primarily reflect a larger start-up loss at United Paramount
Network and the reversal last year by BHC of $20,000,000 of state income
taxes accrued in prior years.
Operating revenues and operating income for the third quarter and nine
month periods ended September 30, 1996 and 1995 are as follows (in
thousands):
Operating Revenues Operating Income
------------------ ------------------
1996 1995 1996 1995
-------- -------- -------- --------
Third Quarter
Television Division $107,125 $111,551 $ 28,837 $ 24,411
Industrial Division 4,652 4,033 264 321
Corporate and other - - (2,790) (7,297)
-------- -------- -------- --------
$111,777 $115,584 $ 26,311 $ 17,435
======== ======== ======== ========
Nine Months
Television Division $329,090 $336,979 $ 88,916 $ 91,989
Industrial Division 13,837 12,548 1,060 1,191
Corporate and other - - (11,171) (14,761)
-------- -------- -------- --------
$342,927 $349,527 $ 78,805 $ 78,419
======== ======== ======== ========
Demand for television advertising continued to be lackluster and market
share was lower in several of the Television Division's important markets
and, accordingly, station group revenues declined 4% in the third quarter,
to $104,987,000 from $109,627,000, and station earnings declined 8%, to
$30,928,000 from $33,697,000. Reflecting earnings growth at the Division's
television production subsidiaries, as well as the inclusion in last year's
results of one time costs totalling approximately $3,700,000 associated
with establishing a national sales representative subsidiary, Television
Division operating income increased 18% to $28,837,000 from last year's
$24,411,000. For the first nine months of 1996, station group earnings
declined 13%, to $97,946,000 from $112,083,000, reflecting a 4% decline in
station operating revenues. Television Division operating income for the
<PAGE>
Page 14
period declined only 3%, to $88,916,000 from $91,989,000, due to improved
results at the Division's production subsidiaries and the $3,700,000 of one
time costs reflected in last year's operating income.
Industrial Division operating revenues rose 15% in the third quarter and
10% in the nine month period, reflecting growth primarily at the Division's
film manufacturing business. Mainly due to competitive pressures at the
Division's health care products distribution business and increased
operating expenses, Industrial Division operating income declined to
$264,000 from $321,000 in the third quarter and to $1,060,000 from
$1,191,000 in the nine month period.
After Chris-Craft corporate office expenses, which decreased in the first
nine months of 1996, primarily due to a third quarter decrease in
retirement plan expense, consolidated operating income increased to
$26,311,000 from $17,435,000 in the third quarter and increased to
$78,805,000 from $78,419,000 in the nine month period.
Reflecting costs associated with the expansion of UPN's prime time schedule
from two to three weekday evenings, the network's third quarter loss
increased to $38,909,000 from last year's $28,722,000, and its nine month
loss increased to $106,653,000 from last year's $95,834,000.
Interest and other income declined to $18,555,000 from $21,224,000 in the
third quarter, due mostly to lower interest rates, but increased to
$61,463,000 from $60,977,000 in the nine month period, primarily reflecting
marketable securities gains.
Income taxes in the 1995 periods reflect the reversal by BHC of $20,000,000
of state income taxes accrued in 1989 and 1990, following the favorable
resolution of a routine audit.
Minority interest reflects the interest of shareholders other than Chris-
Craft in the net income of BHC, 76% owned by Chris-Craft at September 30,
1996 and 73% owned at September 30, 1995, and the interest of shareholders
other than BHC in the net income of UTV, 58% owned buy BHC at September 30,
1996 and 57% owned at September 30, 1995.
<PAGE>
Page 15
CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
PART II. OTHER INFORMATION
--------------------------
Item 6. Exhibits and Reports on Form 8-K.
---------------------------------
(a) The following exhibits are filed herewith:
Exhibit No. Description
----------- -----------
27 Financial Data Schedule
(b) No report on Form 8-K was filed during the quarter for which
this report is filed.
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
(Registrant)
By: /s/ JOELEN K. MERKEL
----------------------------
Joelen K. Merkel
Vice President and Treasurer
(Principal Accounting Officer)
Date: November 12, 1996
<PAGE>
Page 16
EXHIBIT INDEX
Incorporated by
Reference to: Exhibit No. Exhibit
- ------------- ----------- -------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM 10Q DATED
SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 154138
<SECURITIES> 1270400
<RECEIVABLES> 87144
<ALLOWANCES> 6172
<INVENTORY> 0
<CURRENT-ASSETS> 1701413
<PP&E> 144292
<DEPRECIATION> 93325
<TOTAL-ASSETS> 2180740
<CURRENT-LIABILITIES> 247525
<BONDS> 0
0
6021
<COMMON> 16166
<OTHER-SE> 1275617
<TOTAL-LIABILITY-AND-EQUITY> 2180740
<SALES> 13837
<TOTAL-REVENUES> 342927
<CGS> 9663
<TOTAL-COSTS> 264122
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 33615
<INCOME-TAX> 18000
<INCOME-CONTINUING> 1529
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1529
<EPS-PRIMARY> .04
<EPS-DILUTED> .04
</TABLE>
