SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 15, 1995
TIME WARNER INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-8637 13-1388520
- - ---------------------------- ----------- --------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
75 Rockefeller Plaza, New York, NY 10019
-------------------------------------------------
(Address of principal executive offices) (zip code)
(212) 484-8000
---------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
Reference is made to the Current Reports on Form 8-K dated
April 1, 1995 and May 30, 1995 of Time Warner Inc., regarding the
formation of the Time Warner Entertainment-Advance/Newhouse
Partnership by Time Warner Entertainment Company, L.P. and the
Advance/Newhouse Partnership, Additional financial statements are filed
herewith.
Item 7. Financial Statements and Exhibits.
(a) Unaudited Condensed Financial Statements as of March 31,
1995 and for the eight months ended March 31, 1994 and 1995 of
Newhouse Broadcasting Cable Division of Newhouse Broadcasting
Corporation and Subsidiaries (the "Financial Statements of Newhouse
Broadcasting Cable Division of Newhouse Broadcasting Corporation").
(b) Exhibits:
(i) Exhibit 99(a): Financial Statements of Newhouse
Broadcasting Cable Division of Newhouse Broadcasting Corporation.
<PAGE>
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, in the City
of New York, State of New York, on June 15, 1995.
TIME WARNER INC.,
By:
/s/ Richard J. Bressler
---------------------------
Name: Richard J. Bressler
Title: Senior Vice President
and Chief Financial
Officer
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit Sequential
Page Number
99(a) Financial Statements of Newhouse Broadcasting
Cable Division of Newhouse
Broadcasting Corporation.
Newhouse Broadcasting Cable Division of
Newhouse Broadcasting Corporation and Subsidiaries
Condensed Balance Sheet
(UNAUDITED)
March 31, 1995
Assets
------
Current assets
- - --------------
Cash $5,236,882
Receivables:
Trade, less allowance for doubtful
accounts of $835,017 4,378,276
Other 4,408,930
Refundable income taxes 4,150,062
Prepaid expenses and other 1,917,415
Deferred income taxes 323,410
----------
Total current assets 20,414,975
--------------------
Property, plant and equipment - less
accumulated depreciation 202,896,115
Notes receivable 2,727,644
Investments 12,524,698
Intangible assets - less accumulated
amortization 68,144,257
Deferred income taxes 1,432,824
Other assets 1,175,391
-------------
Total assets $ 309,315,904
------------ =============
Liabilities and divisional equity
---------------------------------
Current liabilities
- - -------------------
Accounts payable and accrued liabilities $ 35,356,811
Income taxes payable 9,213,900
-------------
Total current liabilities 44,570,711
-------------------------
Long-term liabilities 2,423,731
- - --------------------- ------------
Total liabilities 46,994,442
-----------------
Divisional equity 262,321,462
- - ----------------- ------------
Total liabilities and division equity $ 309,315,904
------------------------------------- ============
See notes to condensed financial statements.
<PAGE>
Newhouse Broadcasting Cable Division of
Newhouse Broadcasting Corporation and Subsidiaries
Condensed Statements of Operations and Divisional Equity
(UNAUDITED)
Eight Months Ended
------------------
March 31,
---------
1995 1994
---- ----
Total operating revenues $ 219,067,139 $ 209,355,196
- - ------------------------- ------------ ------------
Operating expenses
- - ------------------
Programming costs 51,574,809 45,016,412
Selling, general and administrative 87,328,527 79,338,316
Depreciation and amortization 36,547,937 27,276,678
----------- ------------
Total operating expenses 175,451,273 151,631,406
------------------------ ----------- ------------
Operating income 43,615,866 57,723,790
----------------
Other (expense) income (672,326) 153,626
----------- ------------
Income before taxes on income and
---------------------------------
cumulative effect of accounting
-------------------------------
change 42,943,540 57,877,416
------
Taxes on income 17,042,788 22,983,205
----------- -----------
Income before cumulative effect of
----------------------------------
accounting change 25,900,752 34,894,211
-----------------
Cumulative effect of a change in
accounting for income taxes - 692,680
------------- -----------
Net income 25,900,752 35,586,891
----------
Divisional equity - beginning of period 226,095,948 158,519,280
Distributions from (to) parent 10,324,762 (8,891,544)
------------ -------------
Divisional equity - end of period $262,321,462 $185,214,627
--------------------------------- =========== ===========
See notes to condensed financial statements.
<PAGE>
Newhouse Broadcasting Cable Division of
Newhouse Broadcasting Corporation and Subsidiaries
Condensed Statements of Cash Flows
(UNAUDITED)
Eight Months Ended
------------------
March 31,
---------
1995 1994
---- ----
Cash flows from operating activities:
- - ------------------------------------
Net Income $ 25,900,752 $ 35,586,891
Adjustments to reconcile net income to net
- - ------------------------------------------
cash provided by operating activities:
-------------------------------------
Depreciation and amortization 36,547,937 27,276,678
Cumulative effect of change in accounting
for income taxes - (692,680)
Change in working capital items:
Decrease in receivables - trade 2,705,739 273,231
(Increase) decrease in receivables - other (879,866) 893,097
(Increase) in refundable income taxes (1,776,191) (272,809)
(Increase) in prepaid expenses and other (280,732) (264,742)
(Increase) in other assets (166,293) (140,583)
Increase (decrease) in accounts payable
and accrued expenses 3,773,420 (5,175,653)
Increase in income taxes payable 8,089,966 3,472,002
------------ ------------
Net cash provided by operating activities 73,914,732 60,955,432
----------------------------------------- ------------ -----------
Cash flows used in investing activities:
- - ---------------------------------------
Capital expenditures (80,284,248) (48,773,775)
(Increase) in investments - net (525,433) (507,081)
(Increase) in notes receivables - (291,778)
(Increase) in intangible assets (2,228,039) (238,240)
------------- -----------
Net cash used in investing activities (83,037,720) (49,810,874)
------------------------------------- ------------- -----------
Cash flows provided by (used in)
- - --------------------------------
financing activities:
- - --------------------
Distributions from (to) parent 10,324,762 (8,891,544)
------------ -----------
Net cash provided by (used in)
------------------------------
financing activities 10,324,762 (8,891,544)
-------------------- ------------ -----------
Net increase in cash 1,201,774 2,253,014
Cash - beginning of period 4,035,108 4,618,969
------------ -----------
Cash - end of period $ 5,236,882 $ 6,871,983
-------------------- ============ ===========
- Continued-
See notes to condensed financial statements.
<PAGE>
Newhouse Broadcasting Cable Division of
Newhouse Broadcasting Corporation and Subsidiaries
Condensed Statements of Cash Flows
(UNAUDITED)
- Continued -
Eight Months Ended
------------------
March 31,
---------
1995 1994
---- ----
Supplemental disclosures of cash flow information
- - -------------------------------------------------
Cash paid during the year for:
Interest $ - $ -
=========== ==========
Income taxes $10,729,013 $19,784,012
========== ==========
Supplemental disclosure of non-cash transactions
- - ------------------------------------------------
On December 31, 1994, the division exchanged notes
receivable and accrued interest for additional
shares of E! Entertainment Television, Inc.
preferred stock. $ 3,437,196 $ -
========== ==========
See notes to condensed financial statements.
<PAGE>
Newhouse Broadcasting Cable Division of
Newhouse Broadcasting Corporation and Subsidiaries
Notes to Condensed Financial Statements
(UNAUDITED)
March 31, 1995
1. Basis of presentation
---------------------
The accompanying unaudited condensed financial statements have
been prepared in accordance with generally accepted principles
for interim financial information. They do not include all
information and footnotes required by generally accepted
accounting principles for complete financial statements. However,
there has been no material change in the information disclosed in
the notes to financial statements included in the division's
financial statements for the year ended July 31, 1994. In the
opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation
have been included.
2. Subsequent event
----------------
On September 9, 1994, Newhouse Broadcasting Corporation and
subsidiaries and an affiliate (Vision Cable Communications, Inc.
and subsidiaries) entered into an agreement with Time Warner
Entertainment Company, L.P. The agreement stipulates that
Newhouse Broadcasting Corporation and subsidiaries and its
affiliate will transfer their cable system divisions, along with
certain cable systems owned by Time Warner Entertainment Company,
L.P. to a newly formed partnership. The transaction was completed
on April 1, 1995.
