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 March 31, 2000
--------------------------------
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 April 30, 2000 there were 26,693,227 shares of the issuer's Common
Stock outstanding and 8,185,746 shares of the issuer's Class B Common
Stock outstanding.
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
(UNAUDITED)
-------------------------------------
March 31, December 31,
2000 1999
----------- -----------
ASSETS
- ------
CURRENT ASSETS:
Cash and cash equivalents $ 284,977 $ 119,427
Marketable securities (substantially
all U.S. Government securities) 1,105,496 1,240,241
Accounts receivable, net 88,776 102,292
Film contract rights 90,117 111,819
Prepaid expenses and other current
assets 69,600 71,316
----------- -----------
Total current assets 1,638,966 1,645,095
----------- -----------
INVESTMENTS 95,526 104,176
----------- -----------
FILM CONTRACT RIGHTS, less current
portion 29,581 39,550
----------- -----------
PROPERTY AND EQUIPMENT, net 66,178 65,039
----------- -----------
INTANGIBLE ASSETS 471,302 474,846
----------- -----------
OTHER ASSETS 21,296 17,279
----------- -----------
$ 2,322,849 $ 2,345,985
=========== ===========
<PAGE>
LIABILITIES AND SHAREHOLDERS' INVESTMENT
- ----------------------------------------
CURRENT LIABILITIES:
Film contracts payable within one year $ 88,673 $ 102,737
Accounts payable and accrued expenses 147,849 153,509
Income taxes payable 53,178 34,907
----------- -----------
Total current liabilities 289,700 291,153
----------- -----------
FILM CONTRACTS PAYABLE AFTER ONE YEAR 72,837 84,372
----------- -----------
OTHER LONG-TERM LIABILITIES 12,923 25,210
----------- -----------
MINORITY INTEREST 498,998 503,447
----------- -----------
COMMITMENTS AND CONTINGENCIES (NOTE 7)
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 234,288
shares; outstanding 234,288 and 234,374
shares 4,100 4,102
Class B common stock - par value $.50
per share; currently authorized
50,000,000 shares; outstanding 8,193,044
and 7,997,292 shares 4,097 3,999
Common stock - par value $.50 per share;
currently authorized 100,000,000 shares;
outstanding 26,646,894 and 25,781,763
shares 14,114 13,682
Capital surplus 484,051 420,390
Retained earnings 932,271 991,398
Accumulated other comprehensive income 8,180 6,654
----------- -----------
1,448,391 1,441,803
----------- -----------
$ 2,322,849 $ 2,345,985
=========== ===========
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
<PAGE>
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of dollars except per share data)
(UNAUDITED)
-----------------------------------------------
Three Months
Ended March 31,
----------------------
2000 1999
---------- ----------
OPERATING REVENUES $ 127,834 $ 111,460
---------- ----------
OPERATING EXPENSES:
Expenses directly associated with
revenues 59,776 54,772
Selling, general and administrative 39,233 37,122
---------- ----------
99,009 91,894
---------- ----------
Operating income 28,825 19,566
---------- ----------
OTHER INCOME (EXPENSE):
Interest and other income, net 20,533 18,676
Equity loss and other related to
United Paramount Network (35,696) (30,150)
---------- ----------
(15,163) (11,474)
---------- ----------
Income before income taxes and
minority interest 13,662 8,092
INCOME TAX PROVISION 6,000 3,600
---------- ----------
Income before minority interest 7,662 4,492
MINORITY INTEREST (4,727) (3,744)
---------- ----------
Net income $ 2,935 $ 748
========== ==========
Earnings per share:
Basic $ .08 $ .02
========== ==========
Diluted $ .07 $ .02
========== ==========
3% Stock 3% Stock
DIVIDENDS PER COMMON SHARE Dividend Dividend
========== ==========
The accompanying notes to condensed consolidated financial
statements are an integral part of these statements.
<PAGE>
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)
(UNAUDITED)
-----------------------------------------------
Three Months
Ended March 31,
--------------------
2000 1999
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,935 $ 748
Adjustments to reconcile net income to net
cash provided from operating activities:
Film contract payments (27,092) (24,808)
Film contract amortization 25,378 22,646
Depreciation and other amortization 6,336 5,776
Equity loss and other related to
United Paramount Network 35,696 30,150
Minority interest 4,727 3,744
Other (1,799) (563)
Changes in assets and liabilities:
Accounts receivable 13,516 10,123
Other assets (6,226) (6,143)
Accounts payable and other liabilities (1,928) (2,110)
Income taxes 2,570 3,509
--------- ---------
Net cash provided from operating
activities 54,113 43,072
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Disposition of marketable securities, net 152,258 12,665
Investment in United Paramount Network (29,293) (33,125)
Other investments (1,608) (10,708)
Capital expenditures, net (3,933) (2,323)
Other (384) (244)
--------- ---------
Net cash provided from (used in)
investing activities 117,040 (33,735)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital transactions of subsidiaries (7,289) (4,117)
Purchase of treasury stock - (8,392)
Proceeds from option exercises 1,868 172
Other (182) (183)
--------- ---------
Net cash used in financing activities (5,603) (12,520)
--------- ---------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 165,550 (3,183)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 119,427 204,297
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 284,977 $ 201,114
========= =========
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
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 (80.0% at March 31, 2000)
television broadcasting subsidiary, BHC Communications, Inc., and BHC's
majority owned (57.9% at March 31, 2000) subsidiary, United Television,
Inc. (UTV). The pro rata interests of BHC and UTV minority shareholders
in the net income of the respective companies are reflected in minority
interest in the accompanying condensed consolidated statements of income.
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:
All of Chris-Craft's marketable securities have been categorized as
available-for-sale and are carried at fair market value. Since
marketable securities are available for current operations, all are
included in current assets.
At March 31, 2000, Chris-Craft's marketable securities consisted of
U.S. Government securities, which had a cost of $985,077,000 and a fair
value of $982,609,000, and equity securities, which had a cost of
$101,480,000 and a fair value of $122,887,000. The difference between
aggregate cost and fair value of $18,939,000 ($8,180,000, net of income
taxes and minority interests) is reflected as an increase to
shareholders' investment in the accompanying condensed consolidated
balance sheet. Of the investments in U.S. Government securities, all
mature within seventeen months.
At December 31, 1999, Chris-Craft's marketable securities consisted
of U.S. Government securities, which had a cost of $1,149,089,000 and a
fair value of $1,146,604,000, and equity securities, which had a cost of
$75,342,000 and a fair value of $93,637,000. The difference between
aggregate cost and fair value of $15,810,000 ($6,654,000, 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 broadcast television
network which premiered in January 1995. BHC owned 100% of UPN from its
inception through January 15, 1997, when Viacom completed the exercise of
its option to acquire a 50% interest in UPN. On March 31, 2000, BHC sold
its remaining 50% interest in UPN to Viacom for $5 million, after Viacom
triggered the "buy-sell" provision of the Companies' partnership
agreement. As a result of the sale, BHC has no further ownership
interest in the network or obligation to fund UPN's operations.
UPN had been organized as a partnership, and BHC accounted for its
partnership interest under the equity method. The carrying value of such
interest totalled $9,821,000 at December 31, 1999, and is included in
Investments in the accompanying condensed consolidated balance sheet.
Equity loss and other related to United Paramount Network in the
accompanying income statements totalled $35,696,000 for the three months
ended March 31, 2000 and includes equity loss in UPN of $22,574,000, loss
on sale of BHC's interest in UPN of $11,347,000, and related expenses of
$1,775,000.
UPN's condensed statements of operations are as follows (in
thousands):
Three Months
Ended March 31,
-------------------
2000 1999
-------- --------
Operating revenues $ 36,535 $ 30,454
Operating expenses 81,964 91,064
-------- --------
Operating loss (45,429) (60,610)
Other income, net 281 310
-------- --------
Net loss $(45,148) $(60,300)
======== ========
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 14, 2000. During
the three months ended March 31, 2000, 42,880 shares of Class B common
stock were converted into 42,880 shares of common stock, and 86 shares of
$1.40 convertible preferred stock were converted into 2,996 shares of
common stock. In addition, 43,132 shares of common stock were issued
upon exercise of stock options. As of March 31, 2000, 586,602 shares of
common stock and 12,899 shares of $1.00 prior preferred stock remained
authorized for purchase.
As of March 31, 2000, shares of Chris-Craft's authorized but
unissued common stock were reserved for issuance as follows:
Shares
----------
Conversion of Class B common stock 8,193,044
Conversion of $1.40 convertible preferred stock 8,417,801*
Stock options (including options
outstanding for 3,759,387 shares) 5,128,962
----------
21,739,807
==========
*Including Class B common shares.
5. COMPREHENSIVE INCOME:
Other comprehensive income includes only unrealized gains and losses
on marketable securities classified as available-for-sale (see Note 2),
net of a reclassification adjustment for gains (losses) included in net
income. Comprehensive income is as follows (in thousands):
Three Months
Ended
March 31,
----------------
2000 1999
------- -------
Net income $ 2,935 $ 748
Other comprehensive income, net of
taxes and minority interests 1,526 2,425
------- -------
Comprehensive income $ 4,461 $ 3,173
======= =======
6. CAPITAL TRANSACTIONS OF SUBSIDIARIES:
Since April 1990, BHC's Board of Directors has authorized the
purchase of up to 7,081,087 Class A common shares. Through December 31,
1998, 6,895,590 shares were purchased, including 226,503 shares from UTV
in June 1998, for a total cost of $516.5 million. No additional shares
have been purchased by BHC since December 31, 1998 and at March 31, 2000,
185,497 Class A common shares remained authorized for purchase. From
January 1, 1998 through March 31, 2000, UTV purchased 76,900 of its
common shares at an aggregate cost of $7.8 million. No shares were
purchased during the first three months of 2000 or 1999.
Such purchases, together with proceeds from the exercise of UTV
stock options, BHC's special dividend ($2.00 per share in 2000 and $1.00
per share in 1999), and UTV's $.50 per share dividend in both periods,
are reflected in capital transactions of subsidiaries in the accompanying
condensed consolidated statements of cash flows, net of intercompany
eliminations and minority interests.
7. COMMITMENTS AND CONTINGENCIES:
Commitments of Chris-Craft's television stations for film contracts
entered into but not available for broadcasting at March 31, 2000
aggregated approximately $282.5 million, including $79.0 million
applicable to UTV.
As set forth in Note 9 of Notes to Consolidated Financial Statements
in Chris-Craft's 1999 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 ("Montrose 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 California related matters and is unable to determine at
this stage if it could have any liability regarding Montrose Chemical Co.
Accordingly, no amount has been reserved in Chris-Craft's financial
statements relating to these matters.
In April 1999, a jury awarded damages totalling $7.3 million
(approximately $8.4 million including interest and legal fees through
March 31, 2000) to a former WWOR employee who filed suit alleging
discrimination by the station. The station and its counsel believe the
award to be unjustified and have filed an appeal which is expected to be
heard in late 2000. It is not possible to reasonably estimate the
amount, if any, which ultimately will be paid. Accordingly, no amount
has been reserved in Chris-Craft's financial statements relating to this
matter.
UTV remains obligated for possible future consideration relating to
the 1999 purchase of WRBW in Orlando, Florida, of up to $25 million.
8. EARNINGS PER SHARE:
Computations of earnings per share, all of which give retroactive
effect to the April 2000 3% stock dividend, are as follows (in thousands
of dollars except per share amounts):
Three Months
Ended March 31,
----------------------
2000 1999
---------- ----------
BASIC:
- ------
Weighted average common and Class B
common shares outstanding 34,820,757 34,610,857
========== ==========
Net income $ 2,935 $ 748
Less: Preferred stock dividends (100) (101)
---------- ----------
Income available to common shareholders $ 2,835 $ 647
========== ==========
Basic earnings per share $ .08 $ .02
========== ==========
<PAGE>
DILUTED:
- --------
Weighted average common and Class B common
shares outstanding 34,820,757 34,610,857
Assumed conversion of $1.40
preferred stock 8,419,957 8,472,197
Assumed exercise of stock options 844,611 208,381
---------- ----------
Total shares used in computation 44,085,325 43,291,435
========== ==========
Income available to common shareholders $ 2,835 $ 647
Convertible preferred stock dividend 82 83
Dilution of UTV net income from UTV
stock options (14) (8)
---------- ----------
Income available assuming dilution $ 2,903 $ 722
========== ==========
Diluted earnings per share $ .07 $ .02
========== ==========
9. SEGMENT REPORTING:
Chris-Craft has two reportable segments, the Television Division and
the Industrial Division.
Operating revenues and operating income for the first quarter of
2000 and 1999 are as follows (in thousands):
Operating Revenues Operating Income
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
Television Division $121,966 $106,495 $ 32,943 $ 23,373
Industrial Division 5,868 4,965 1,305 785
Corporate and other - - (5,423) (4,592)
-------- -------- -------- --------
$127,834 $111,460 $ 28,825 $ 19,566
======== ======== ======== ========
<PAGE>
CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
Liquidity and Capital Resources
- -------------------------------
Chris-Craft's financial position continues to be strong and highly
liquid. Cash and marketable securities totalled $1.39 billion at March
31, 2000, and Chris-Craft has no debt outstanding. Chris-Craft's 80.0%
owned television broadcasting subsidiary, BHC Communications, Inc.,
invested significant funds in United Paramount Network from UPN's
inception in 1994 until March 31, 2000, when BHC sold its remaining 50%
interest in the network.
Chris-Craft's operating cash flow is generated primarily by its
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 $1.7 million in the three
month period ended March 31, 2000 and by $2.2 million in the
corresponding 1999 period), and is dependent upon the mix of programs
aired and payment terms of the stations' contracts. Reflecting such
amounts, broadcast cash flow in the first three months of 2000 increased
40%, while station earnings increased 38%, 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.
Such balances rose slightly, to $1.39 billion at March 31, 2000, from
$1.36 billion at December 31, 1999. Such $31 million increase reflects
first quarter operating cash flow of $54.1 million, which was partially
offset by final UPN funding totalling $29.3 million.
BHC generates most of Chris-Craft's consolidated cash flow. Parent
company obligations consist solely of corporate office expenditures,
current and accrued. Most parent company cash flow in recent years has
been provided from the receipt by Chris-Craft of its share of special
dividends paid by BHC. BHC paid a $2.00 per share special cash dividend
in February 2000, aggregating $45.0 million (of which Chris-Craft
received $36.0 million), and a $1.00 per share special cash dividend
(through which Chris-Craft received $18 million) in each of the previous
three years. BHC plans to consider annually the payment of a special
dividend.
Since April 1990, BHC's Board of Directors has authorized the
purchase of up to 7,081,087 Class A common shares. Through December 31,
1998, 6,895,590 shares were purchased for a total cost of $516.5 million.
No additional shares have been purchased by BHC since December 31, 1998
and at March 31, 2000, 185,497 Class A common shares remained authorized
for purchase. From January 1, 1998 through March 31, 2000, UTV purchased
76,900 of its common shares for a total cost of $7.8 million. No
additional shares have been purchased by UTV during the first three
months of 2000, and 721,249 shares remain authorized for purchase.
Chris-Craft intends to further 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 broadcast television network that premiered in
January 1995. BHC owned 100% of UPN from its inception through January
15, 1997, when Viacom completed the exercise of its option to acquire a
50% interest in UPN. Since then, BHC and Viacom shared equally in UPN
losses and funding requirements through March 31, 2000.
On March 31, 2000, BHC sold its remaining 50% interest in UPN to
Viacom for $5 million, after Viacom triggered the "buy-sell" provision of
the companies' partnership agreement. The $11.3 million pretax loss on
the sale, together with BHC's final share of UPN's losses, are reflected
in Chris-Craft's 2000 first quarter operating results. BHC has no
remaining financial obligation to UPN.
Chris-Craft's television stations make commitments for programming
that will not be available for telecasting until future dates. At March
31, 2000, commitments for such programming totalled approximately $282.5
million, including $79.0 million applicable to UTV. Chris-Craft's
capital expenditures generally have not been material in relation to its
financial position, and the related capital expenditure commitments at
March 31, 2000 were not material. Chris-Craft stations are continuing
the process of converting to digital television (DTV). The conversion
requires the purchase of digital transmitting equipment to telecast over
newly assigned frequencies. This conversion is expected to take a number
of years and will be subject to competitive market conditions. Chris-
Craft expects that its expenditures for future film contract commitments
and capital requirements for its present business, including the cost to
convert to DTV, will be satisfied primarily from operations, marketable
securities or cash balances.
As set forth in Note 7, 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 ("Montrose California") and (ii) the activities of Montrose
Chemical Co., a predecessor company to Chris-Craft. As further set forth
in Note 7, Chris-Craft does not presently consider liability to be
"probable" in any of the Montrose California related matters and believes
it has been erroneously identified as a potentially responsible party and
is unable to determine at this stage if it could have any liability
regarding Montrose Chemical Co. Accordingly, no amount has been reserved
in Chris-Craft's financial statements relating to these matters.
Quantitative and Qualitative Disclosures about Market Risk
- ----------------------------------------------------------
Chris-Craft is subject to certain market risk relating to its
marketable securities holdings, which are all held for other than trading
purposes. The table below provides information as of March 31, 2000
about the U.S. Government securities which are subject to interest rate
sensitivity and the equity securities which are subject to equity market
sensitivity.
(in thousands)
Cost Fair Value
---- ----------
U.S. Government securities $ 985,077 $ 982,609
Equity securities $ 101,480 $ 122,887
Results of Operations
- ---------------------
Chris-Craft net income in the first quarter of 2000 totalled
$2,935,000, or $.08 per share ($.07 per share diluted), compared to net
income of $748,000, or $.02 per share ($.02 per share diluted), in the
first quarter of 1999. The increase in net income reflects record first
quarter operating income, which more than offset the increase in losses
attributable to BHC's former interest in United Paramount Network.
Operating revenues and operating income for the first quarters ended
March 31, 2000 and 1999 are as follows (in thousands):
Operating Revenues Operating Income
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
Television Division $121,966 $106,495 $ 32,943 $ 23,373
Industrial Division 5,868 4,965 1,305 785
Corporate and other - - (5,423) (4,592)
-------- -------- -------- --------
$127,834 $111,460 $ 28,825 $ 19,566
======== ======== ======== ========
Operating revenues at the Television Division's station group rose
15%, to a first quarter record $119,654,000 from the prior year's
$104,423,000, and same station revenues rose 12%. Stations operating in
the group's largest markets, New York, Los Angeles and San Francisco, led
the strong revenue growth. Station earnings in the quarter accordingly
increased 38%, to a first quarter record of $36,815,000, from last year's
$26,699,000. Television Division operating income, which additionally
reflects non-broadcasting operations and corporate office expenses of BHC
and UTV, also established a first quarter record, increasing 41%, to
$32,943,000 from $23,373,000.
Industrial Division operating income rose 66%, to a first quarter
record $1,305,000 from last year's $785,000, reflecting an 18% increase
in operating revenues, most of which increase was generated by the
Division's plastic flexible film business. Consolidated operating income
also set a first quarter record, increasing 47%, to $28,825,000 from
$19,566,000 last year.
Interest and other income, which consists mostly of amounts earned
on Chris-Craft's $1.4 billion consolidated cash and marketable securities
holdings, totalled $20,533,000, compared to $18,676,000 in last year's
first quarter.
BHC's first quarter loss associated with its former interest in UPN
totalled $35,696,000, compared to $30,150,000 in the corresponding 1999
period. This year's amount includes an $11,347,000 pretax loss realized
on the March 31, 2000 sale to Viacom of BHC's 50% interest in UPN, as
well as BHC's final share of UPN's losses. BHC has no remaining
financial obligation to UPN.
Minority interest reflects the interest of shareholders other than
Chris-Craft in the net income of BHC, 80% owned by Chris-Craft at March
31, 2000 and 79.96% owned by Chris-Craft at March 31, 1999, and the
interest of shareholders other than BHC in the net income of UTV, 57.9%
owned by BHC at March 31, 2000 and 58.5% owned by BHC at March 31, 1999.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
----------------------------------------------------------
The information appearing in Management's Discussion and Analysis
under the caption "Quantitative and Qualitative Disclosures about Market
Risk" is incorporated herein by this reference.
<PAGE>
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
Senior Vice President and Treasurer
(Principal Accounting Officer)
Date: May 11, 2000
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
MARCH 31, 2000 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS
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<PERIOD-END> MAR-31-2000
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<PP&E> 184984
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<BONDS> 0
0
5678
<COMMON> 18211
<OTHER-SE> 1424502
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<SALES> 5868
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<CGS> 3483
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<INCOME-TAX> 6000
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</TABLE>
