<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended November 30, 1994
/ / 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 1-9244
KING WORLD PRODUCTIONS, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-2565808
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1700 Broadway
New York, New York 10019
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 212 315-4000
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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. Common Stock, $.01 par value,
36,647,874 shares outstanding as of January 12, 1995.
<PAGE> 2
KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Dollars in thousands)
<TABLE>
<CAPTION>
November 30, August 31,
1994 1994
----------- ----------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . $372,447 $341,857
Accounts receivable (net of
allowance for doubtful accounts
of $4,412 at November 30, 1994
and August 31, 1994, respectively) . . . . . . . . . . . . . 54,018 41,231
Producer loans, advances and
deferred costs . . . . . . . . . . . . . . . . . . . . . . 22,930 21,314
Other current assets . . . . . . . . . . . . . . . . . . . . 602 419
-------- --------
Total current assets . . . . . . . . . . . . . . . . . . 449,997 404,821
-------- --------
LONG-TERM INVESTMENTS, at cost,
which approximates market . . . . . . . . . . . . . . . . . 84,704 88,191
-------- --------
FIXED ASSETS, at cost . . . . . . . . . . . . . . . . . . . . . . 11,277 10,631
Less - accumulated depreciation
and amortization . . . . . . . . . . . . . . . . . . . . . . (9,239) (9,099)
-------- --------
2,038 1,532
-------- --------
OTHER ASSETS:
Producer loans and advances . . . . . . . . . . . . . . . . . 65,500 65,500
Other non-current assets . . . . . . . . . . . . . . . . . . 9,735 9,518
-------- --------
75,235 75,018
-------- --------
$611,974 $569,562
======== ========
</TABLE>
The accompanying Notes to Consolidated Financial Statements
are an integral part of these balance sheets.
2
<PAGE> 3
KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
(Dollars in thousands)
<TABLE>
<CAPTION>
November 30, August 31,
1994 1994
------------ ----------
(Unaudited)
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable and
accrued liabilities . . . . . . . . . . . . . . . . . . . . $ 13,347 $ 14,780
Payable to producers and others . . . . . . . . . . . . . . . 74,227 69,647
Income taxes payable:
Current . . . . . . . . . . . . . . . . . . . . . . . . 35,310 23,506
Deferred . . . . . . . . . . . . . . . . . . . . . . . . 2,219 2,552
-------- --------
Total current liabilities . . . . . . . . . . . . . . 125,103 110,485
-------- --------
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
5,000,000 shares authorized,
none issued . . . . . . . . . . . . . . . . . . . . . . . . -- --
Common stock, $.01 par value;
75,000,000 shares autho-
rized, 49,771,268 shares
and 49,722,218 shares issued
at November 30, 1994 and
August 31, 1994, respectively . . . . . . . . . . . . . . . 498 497
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . 83,533 82,171
Retained earnings . . . . . . . . . . . . . . . . . . . . . . 693,207 665,339
Treasury stock, at cost; 13,000,894
shares and 12,960,894 shares at
November 30, 1994 and
August 31, 1994, respectively . . . . . . . . . . . . . . . (290,367) (288,930)
-------- --------
486,871 459,077
-------- --------
$611,974 $569,562
======== ========
</TABLE>
The accompanying Notes to Consolidated Financial Statements
are an integral part of these balance sheets.
3
<PAGE> 4
KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
November 30,
---------------------------------
1994(1) 1993
-------- --------
(Dollars in thousands
except per share data)
<S> <C> <C>
REVENUES . . . . . . . . . . . . . . . . . . . . . . . $147,084 $193,045
-------- --------
EXPENSES:
Producers fees, programming
and other direct
operating costs . . . . . . . . . . . . . . . . . 88,438 111,843
Selling, general and
administrative expenses . . . . . . . . . . . . . 18,069 22,939
-------- --------
106,507 134,782
-------- --------
Income from operations . . . . . . . . . . . . . 40,577 58,263
INTEREST AND DIVIDEND INCOME . . . . . . . . . . . . . . 3,978 3,200
-------- --------
Income before provision
for income taxes . . . . . . . . . . . . . . . 44,555 61,463
PROVISION FOR INCOME TAXES . . . . . . . . . . . . . . . 16,687 22,741
-------- --------
Net income . . . . . . . . . . . . . . . . . . . . $ 27,868 $ 38,722
======== ========
PRIMARY EARNINGS PER SHARE . . . . . . . . . . . . . . . $ .75 $ 1.02
======== ========
</TABLE>
- --------------
(1) The results of operations for the three months ended November 30, 1994
reflect a change in accounting for revenue recognition adopted
prospectively in the fourth quarter of fiscal 1994. On a basis of
accounting comparable to that employed in the first quarter of fiscal 1994,
revenues, net income and earnings per share in the first quarter of fiscal
1995 would have been approximately $55.3 million, $13.5 million and $.36
higher, respectively, than that actually reported. See Notes to
Consolidated Financial Statements.
The accompanying Notes to Consolidated Financial Statements
are an integral part of these statements.
4
<PAGE> 5
KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
November 30,
---------------------------
1994 1993
-------- --------
(Dollars in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . . . . . . . . $ 27,868 $ 38,722
Items not affecting cash:
Depreciation and amortization . . . . . . . . . . . 140 169
Change in assets and liabilities:
Accounts receivable . . . . . . . . . . . . . . . . (12,780) (64,117)
Producer loans, advances and
deferred costs . . . . . . . . . . . . . . . . . (1,616) 7,592
Accounts payable and accrued
liabilities . . . . . . . . . . . . . . . . . . . (1,433) 6,998
Payable to producers and others . . . . . . . . . . 4,580 32,917
Income taxes payable . . . . . . . . . . . . . . . 11,471 21,298
Other, net . . . . . . . . . . . . . . . . . . . . (395) 337
-------- --------
Net cash provided by operating
activities . . . . . . . . . . . . . . . . . . . . 27,835 43,916
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in investments . . . . . . . . . . 3,487 (15,959)
Additions to fixed assets . . . . . . . . . . . . . . . (646) (46)
------- --------
Net cash provided by (used in)
investing activities . . . . . . . . . . . . . . . . . 2,841 (16,005)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of
common stock . . . . . . . . . . . . . . . . . . . . 1,351 1,391
Purchase of treasury stock . . . . . . . . . . . . . . (1,437) --
-------- --------
Net cash provided by (used in)
financing activities . . . . . . . . . . . . . . . . (86) 1,391
-------- --------
NET INCREASE IN CASH AND
CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . 30,590 29,302
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . . . . . . . 341,857 300,219
-------- --------
CASH AND CASH EQUIVALENTS AT END
OF PERIOD . . . . . . . . . . . . . . . . . . . . . $372,447 $329,521
======== ========
</TABLE>
The accompanying Notes to Consolidated Financial Statements
are an integral part of these statements.
5
<PAGE> 6
KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Summary of significant accounting policies
Principles of consolidation
The accompanying consolidated financial statements include the
accounts of King World Productions, Inc. ("King World") and its wholly-owned
subsidiaries. All significant intercompany transactions have been eliminated.
Unless the context suggests otherwise, the "Company", as used herein, means
King World and its subsidiaries.
The unaudited consolidated financial statements for the three
months ended November 30, 1994 have been prepared in accordance with the
instructions to Form 10-Q and include, in the opinion of management, all
adjustments (consisting only of normal recurring accruals) necessary for a fair
presentation of the results of operations for such period. They do not,
however, include all of the information and disclosures required by generally
accepted accounting principles for complete financial statements. For further
information, reference is made to the consolidated financial statements for the
year ended August 31, 1994 and the footnotes related thereto included in the
Company's Annual Report on Form 10-K from which the August 31, 1994 balances
presented herein have been derived. The results of operations for the three
months ended November 30, 1994 are not necessarily indicative of the results of
operations for the full year.
Revenue recognition
Historically, King World has followed a practice of
recognizing license fees from the distribution of first-run syndicated
television properties at the commencement of the license period and as each
show was produced (even though the particular show may not have been broadcast
by a television station for several months). In the fourth quarter of the 1994
fiscal year, the Company adopted a change in accounting for revenue recognition
which has been applied prospectively as a change in estimate as opposed to a
change in principle. Under the modified practice, license fees from first-run
syndicated television properties are recognized at the commencement of the
license period pursuant to noncancelable agreements and as each show is made
available to the licensee via satellite transmis-
6
<PAGE> 7
KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
sion, rather than at the time the show is produced. Because transmission to
the satellite takes place, on the average, no more than two to three days prior
to the broadcast of the programming and in some cases up to several months after
the programming is produced, the effect of adopting the modified practice is to
cause revenues to be recognized closer to the air date than under the prior
practice. In addition, the accounting change will eliminate the quarterly
revenue and earnings fluctuations that were attributable to variations in
production schedules.
The impact of adopting the change was to cause first quarter
fiscal 1995 revenues, net income and earnings per share to be approximately
$55.3 million, $13.5 million and $.36 lower, respectively, than they would have
been under the prior practice, with no impact on cash flow. Such revenues will
be recognized in subsequent periods under the modified practice.
The following pro forma financial information assumes the
Company's prior revenue recognition practice was in effect for the first
quarter of fiscal 1995:
<TABLE>
<CAPTION>
Three Months Ended
November 30,
----------------------------------
1994 Pro forma 1993
-------------- ----
(Dollars in thousands
except per share data)
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . $202,429 $193,045
Income from operations . . . . . . . . 62,238 58,263
Income before provision for . . . . .
income taxes . . . . . . . . . . . . 66,216 61,463
Net income . . . . . . . . . . . . . . 41,385 38,722
======== ========
Primary earnings per
share . . . . . . . . . . . . . . . . $ 1.11 $ 1.02
======== ========
</TABLE>
The Company typically receives a portion of the fees derived
from the licensing of syndicated television programming in the form of retained
advertising time, which is sold to advertisers by Camelot Entertainment Sales,
Inc. ("Camelot"), a wholly-owned subsidiary of the Company. Such revenues are
7
<PAGE> 8
KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
recognized at the same time as the cash portion of the license fees derived
from such programming is recognized, in amounts adjusted for expected ratings.
That portion of recognized revenue that is to be paid to the producers and
owners of the licensed program material is accrued as the license fees are
earned.
License fees for non-first-run syndicated properties are
recognized at the gross contract amount (net of discount to present value for
license periods greater than one year) at the commencement of the license
period.
Principal properties
The Company's principal properties are licenses to distribute
The Oprah Winfrey Show, Wheel of Fortune and Jeopardy!; and Inside Edition, a
first-run syndicated series produced and distributed by the Company. The Oprah
Winfrey Show accounted for approximately 36% and 46% of revenues for the three
months ended November 30, 1994 and 1993, respectively; Wheel of Fortune
accounted for approximately 21% and 20% of revenues for the three months ended
November 30, 1994 and 1993, respectively; Jeopardy! accounted for approximately
18% and 15% of revenues for the three months ended November 30, 1994 and 1993,
respectively; and Inside Edition accounted for approximately 7% of revenues
for the three months ended November 30, 1994 and 1993, respectively.
On a basis of accounting comparable to that employed for the
three months ended November 30, 1993, The Oprah Winfrey Show, Wheel of Fortune,
Jeopardy!, and Inside Edition would have accounted for approximately 48%, 20%,
14% and 7%, respectively, of the Company's revenues for the three months ended
November 30, 1994.
Stockholders' equity
Primary earnings per share has been computed using the
weighted average number of common shares outstanding of 37,372,000 and
38,111,000, respectively, for the three months ended November 30, 1994 and
1993, which includes the dilutive effect from the assumed exercise of vested
and unvested stock options outstanding as of the end of the period. The
difference between primary and fully diluted earnings per share for both
periods presented was not significant.
8
<PAGE> 9
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial Condition
RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED NOVEMBER 30, 1994 AND 1993
Revenues
Revenues for the first quarter of fiscal 1995 decreased by
approximately 24% compared to the first quarter of the prior year due to the
adoption of a change in accounting for revenue recognition on a prospective
basis in the fourth quarter of fiscal 1994. Had revenues in the first quarter
of fiscal 1995 been recognized on a basis comparable to the prior period,
revenues for the first quarter of fiscal 1995 would have been approximately 5%
higher than the first quarter of fiscal 1994, due primarily to increased cash
license fees from The Oprah Winfrey Show and to a lesser extent, an increase in
revenues derived from the sale of retained advertising time on Wheel of Fortune
and Jeopardy! as a result of the retention of one additional 30-second
advertising spot per episode commencing with the 1994-1995 television season.
The Oprah Winfrey Show, Wheel of Fortune, Jeopardy! and Inside
Edition accounted for approximately 36%, 21%, 18% and 7%, respectively, of the
Company's revenues for the first quarter of fiscal 1995 compared to 46%, 20%,
15% and 7%, respectively, for the first quarter of fiscal 1994. American
Journal accounted for approximately 4% of the Company's revenues for the first
quarter of fiscal 1995 compared to 3% for the first quarter of fiscal 1994, and
Rolonda, which debuted in January 1994, accounted for approximately 3% of the
Company's revenues for the first quarter of fiscal 1995. The Les Brown Show
accounted for approximately 3% of the Company's revenues for the first quarter
of fiscal 1994, but was cancelled in January 1994. On a basis of accounting
comparable to that employed in the first quarter of fiscal 1994, The Oprah
Winfrey Show, Wheel of Fortune, Jeopardy! and Inside Edition would have
accounted for approximately 48%, 20%, 14% and 7%, respectively, and American
Journal and Rolonda would have accounted for approximately 3% and 2%,
respectively, of the Company's revenues for the first quarter of fiscal 1995.
Producers' fees, programming and other direct operating costs
Producers' fees, programming and other direct operating costs
primarily include the producers' share of both cash license fees from the sale
of programming to television stations and revenues derived from the sale of
retained advertising time to advertisers with respect to programming
distributed by the
9
<PAGE> 10
Company; participation fees payable by the Company to producers and talent; and
production and distribution costs for first-run syndicated programming. The
share of license fees payable by the Company to producers, talent and others is
generally paid as cash license fees and revenues derived from the sale of
retained advertising time are received from television stations and
advertisers.
Producers' fees, programming and other direct operating costs
decreased by approximately 21% in the first quarter of fiscal 1995 compared to
the first quarter of fiscal 1994. Because the recognition of these costs
generally coincides with the recognition of the revenues with which they are
associated, the adoption of the modified accounting practice in the fourth
quarter of fiscal 1994 caused such costs to be substantially lower in the first
quarter of fiscal 1995 than they would have been under the prior revenue
recognition practice. On a basis of accounting comparable to that employed in
the first quarter of fiscal 1994, producers' fees, programming and other direct
operating costs would have increased by approximately 6% in the first quarter
of fiscal 1995 over the corresponding period of the prior year, primarily as a
result of the higher level of revenues generated by The Oprah Winfrey Show (a
portion of which is payable to the producer) and increased production costs
associated with Inside Edition, American Journal and Rolonda.
Selling, general and administrative expenses
Selling, general and administrative expenses for the first
quarter of fiscal 1995 decreased by approximately 21% compared to the
corresponding quarter of the prior fiscal year primarily due to the accounting
change. But for such change, such expenses would have decreased by
approximately 6%, due primarily to lower advertising and promotion costs in the
first quarter of fiscal 1995 compared to the first quarter of fiscal 1994.
In December 1993, the Company entered into new employment
agreements with four executive officers. The agreements provide, among other
things, for new bonuses that are intended to qualify as "performance based
compensation" (within the meaning of Section 162(m) of the Internal Revenue
Code of 1986, as amended), including bonuses payable upon the introduction of
new shows and bonuses contingent upon the Company's Common Stock achieving
specified target prices during preestablished measurement periods. As a
result, the Company's compensation expense will increase if the Common Stock
price exceeds the specified target prices during the applicable measurement
periods.
10
<PAGE> 11
As of November 30, 1994, the applicable target prices of the
Company's Common Stock for certain of such bonuses had not been met. In the
third and fourth quarters of fiscal 1994, the Company provided for the
probability that such target prices would be met in future measurement periods
and such bonuses would be paid pursuant to the terms of such employment
agreements. No additional provision was made in the first quarter of fiscal
1995.
Net income and primary earnings per share
The Company's operating income for the first quarter of fiscal
1995 decreased by approximately 30% compared to the corresponding period of the
prior year, primarily due to the change in accounting for revenue recognition.
Absent such change, the Company's operating income for the first quarter of
fiscal 1995 would have been approximately 7% higher than the first quarter of
fiscal 1994. The accounting change also resulted in a 28% decrease in net
income for the first quarter of fiscal 1995 compared to the corresponding
period of the prior year. But for the accounting change, net income would have
been approximately $2.7 million (or 7%) higher than the first quarter of fiscal
1994, reflecting higher operating income as well as higher interest income
earned on the Company's cash and investments (due primarily to an increase in
interest rates over the prior year), partially offset by a slightly higher
effective tax rate for the first quarter of fiscal 1995 compared to the first
quarter of fiscal 1994. Primary earnings per share, which were $.36 lower due
to the accounting change, would have been $.09 (or 9%) higher in the first
quarter of fiscal 1995 compared with the first quarter of fiscal 1994 had the
prior method of revenue recognition been employed, due to the increase in net
income and a smaller number of shares outstanding as a result of the Company's
ongoing stock repurchase program.
The Company's results of operations are highly dependent upon
the viewing preferences of television audiences and the Company's ability to
acquire distribution rights to, or itself produce, television programming that
achieves broad and enduring audience acceptance. The success of the Company's
programming could be significantly affected by changes in viewer preferences or
the unavailability of new programming or talent. Moreover, the amount of
revenue derived from the sale of retained advertising time is dependent upon a
large number of factors, such as household ratings, the demographic composition
of the viewing audience and economic conditions in general and in the
advertising business in particular. Due to the success of the shows
distributed by the Company and in order to mitigate the influence of some of
the
11
<PAGE> 12
factors referred to above, the Company has been obtaining multi-year licenses
and license renewals from television stations for its principal distribution
properties, extending as far into the future as the 1999-2000 broadcast season.
In general, these licenses and renewals have been at rates as favorable or
more favorable to the Company than the rates applicable to the 1993-1994 and
1994-1995 broadcast seasons. All such licenses and renewals are contingent
upon the series by their respective producers through the broadcast seasons for
which the licenses run.
The Company believes that the impact of inflation on its
operations has not been significant.
LIQUIDITY AND CAPITAL RESOURCES
The Company requires capital resources to fund development,
production and promotion costs of independently produced programming,
including, in some instances, advances to producers and talent, to produce its
own programs and to acquire distribution rights to new programming. In
acquiring distribution rights from independent producers, King World has tried
to avoid making significant capital commitments to such producers until it has
obtained broadcast commitments from a substantial number of television
stations. As a result of this strategy and the success of its existing
syndication properties, to date, King World has funded substantially all
programming acquisition, development and production costs and advances from its
operations.
As King World has developed and produced its own programming
for syndication, it has assumed a greater portion of the risk associated with
the introduction of new series. The introductions of American Journal and The
Les Brown Show in the 1993-1994 broadcast season, and Rolonda, which premiered
in January 1994, have necessitated the expenditure by King World of substantial
amounts to fund development, production and promotion costs. The Company has
funded and intends to continue to fund such costs out of its internal cash
resources.
The distribution of television programming is highly
competitive and the Company may be obliged to offer, among other things,
guarantees and cash advances to acquire, renew or extend distribution rights.
In connection with the extension for the 1993-1994 and 1994-1995 broadcast
seasons of the commitment by Harpo, Inc. ("Harpo"), the producer of The Oprah
Winfrey Show, to produce The Oprah Winfrey Show for those seasons, the Company
made an interest-free loan to Harpo and became obligated to pay Harpo certain
minimum amounts against its participation fees for such periods, irrespective
of the amount of license fees generat-
12
<PAGE> 13
ed by the series in such periods. Harpo's participation fees for the
1993-1994 broadcast season exceeded such minimum amounts for the 1993-1994
and 1994-1995 broadcast seasons. The loan is due in two installments of
$8,625,000 each, one of which was paid in July 1994 and the other of which is
due in July 1995.
Under the terms of the Company's agreement with Harpo, the
Company has the exclusive right, and has agreed, to distribute episodes of The
Oprah Winfrey Show produced through the 1999-2000 television season, subject to
Harpo's and Ms. Winfrey's right to decline to produce and host the show in any
season after the 1995-1996 season. Under the agreement, the Company has, among
other things, agreed to pay Harpo production fees and to guaranty payments to
Harpo at levels which, commencing with the 1995-1996 season, will be
substantially higher than those currently in effect. In addition, in the
1997-1998 season and thereafter, profit sharing arrangements between Harpo and
the Company currently in effect will terminate and the Company will instead
receive distribution fees based on a percentage of gross revenues derived from
the series. The Company has paid Harpo a $60,000,000 advance against its
minimum participation fees for the 1995-1996 broadcast season. Based on the
license agreements in place for the 1995-1996 broadcast season, the revenues
from the series will be sufficient to cover such amount.
From time to time, the Company has used cash reserves and/or
borrowed funds to make acquisitions of and investments in broadcast and related
properties in the entertainment field, to repurchase shares of its Common Stock
and to fund development and production of new programming. The Company
continues to evaluate opportunities in these areas, and may seek to raise
capital in public or private securities markets to finance such activities if
it considers it advantageous to do so.
In December 1992, the Company announced that the Board of
Directors had approved a program to repurchase up to 2,000,000 shares of its
Common Stock from time to time in the open market and in privately negotiated
transactions. In the fiscal years ended August 31, 1994 and 1993, 753,100 and
765,200 shares, respectively, of Common Stock were repurchased in open market
transactions, for aggregate consideration of approximately $28.9 million (or
approximately $38.40 per share) and $24.8 million (or approximately $32.40 per
share), respectively. In the first quarter of fiscal 1995, the Company
repurchased an aggregate 40,000 shares for aggregate consideration of
approximately $1.44 million (or approximately $36.00 per share), and subsequent
to November 30, 1994, the Company repurchased an additional 138,500 shares for
aggregate consideration of approximately $4.6 million (or approximately $33.25
per share). As of January 12, 1995, there remained 303,200 shares available
for repurchase under such
13
<PAGE> 14
program. The Company intends to continue to repurchase shares of Common Stock
in the open market and in privately negotiated transactions if and when it
deems it advantageous to do so.
PART II - OTHER INFORMATION
None.
SIGNATURES
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.
KING WORLD PRODUCTIONS, INC.
By: /s/ Anthony E. Hull
-------------------------------
Anthony E. Hull
As Chief Financial Officer
and on behalf of the Registrant
January 17, 1995
14
<PAGE> 15
EXHIBIT INDEX
----------------
EXHIBIT 27 - Financial Data Schedule.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> NOV-30-1994
<CASH> 372,447
<SECURITIES> 0
<RECEIVABLES> 58,430
<ALLOWANCES> 4,412
<INVENTORY> 0
<CURRENT-ASSETS> 449,997
<PP&E> 11,277
<DEPRECIATION> 9,239
<TOTAL-ASSETS> 611,974
<CURRENT-LIABILITIES> 125,103
<BONDS> 0
<COMMON> 498
0
0
<OTHER-SE> 486,373
<TOTAL-LIABILITY-AND-EQUITY> 611,974
<SALES> 0
<TOTAL-REVENUES> 147,084
<CGS> 0
<TOTAL-COSTS> 88,438
<OTHER-EXPENSES> 18,069
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 44,555
<INCOME-TAX> 16,687
<INCOME-CONTINUING> 27,868
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 27,868
<EPS-PRIMARY> .75
<EPS-DILUTED> .75
</TABLE>
