Time Warner Inc. (NYSE:TWX) today provided its 2016 full-year business
outlook. The Company expects its 2016 full-year Adjusted Diluted Income
per Common Share from Continuing Operations (“Adjusted EPS”) to be in
the range of $5.30 to $5.40.
The outlook above does not include the impact of any future merger or
unplanned restructuring and severance charges, the impact from future
sales and acquisitions of operating assets or the impact of taxes on the
above items that may occur from time to time due to management decisions
and changing business circumstances. The Company is currently unable to
forecast precisely the timing and/or magnitude of any such events and
resulting impacts.
Use of Adjusted EPS Measure
Adjusted EPS is Diluted Income per Common Share from Continuing
Operations attributable to Time Warner Inc. common shareholders with the
following items excluded from Income from Continuing Operations
attributable to Time Warner Inc. common shareholders: noncash
impairments of goodwill, intangible and fixed assets and investments;
gains and losses on operating assets (other than deferred gains on
sale-leasebacks), liabilities and investments; gains and losses
recognized in connection with pension and other postretirement benefit
plan curtailments or settlements; external costs related to mergers,
acquisitions, investments or dispositions, as well as contingent
consideration related to such transactions, to the extent such costs are
expensed; amounts related to securities litigation and government
investigations; the foreign currency losses during the three months
ended December 31, 2014 and March 31, 2015 related to the translation of
net monetary assets denominated in Venezuelan currency resulting from
the Company’s change to the SICAD 2 exchange rate beginning December 31,
2014 and the Simadi exchange rate during the quarter ended March 31,
2015, respectively; and amounts attributable to businesses classified as
discontinued operations; as well as the impact of taxes and
noncontrolling interests on the above items and the Company’s share of
the above items with respect to equity method investments. The Company
utilizes Adjusted EPS, among other measures, to evaluate the performance
of its businesses both on an absolute basis and relative to its peers
and the broader market. Many investors also use an adjusted EPS measure
as a common basis for comparing the performance of different companies.
Some limitations of Adjusted EPS, however, are that it does not reflect
certain charges that affect the operating results of the Company’s
businesses and that it involves judgment as to whether items affect
fundamental operating performance. Also, a general limitation of
Adjusted EPS is that it is not prepared in accordance with U.S.
generally accepted accounting principles and may not be comparable to
similarly titled measures of other companies due to differences in
methods of calculation and excluded items.
Adjusted EPS should be considered in addition to, not as a substitute
for, the Company’s Diluted Income per Common Share from Continuing
Operations and other measures of financial performance reported in
accordance with U.S. generally accepted accounting principles.
About Time Warner Inc.
Time Warner Inc., a global leader in media and entertainment with
businesses in television networks and film and TV entertainment, uses
its industry-leading operating scale and brands to create, package and
deliver high-quality content worldwide on a multi-platform basis.
Caution Concerning Forward-Looking Statements
This document contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
are based on management’s current expectations or beliefs, and are
subject to uncertainty and changes in circumstances. Actual results may
vary materially from those expressed or implied by the statements herein
due to changes in economic, business, competitive, technological,
strategic and/or regulatory factors and other factors affecting the
operation of Time Warner’s businesses and any future merger or unplanned
restructuring charges, future sales and acquisitions of operating assets
and investments, or the impact of taxes on the above items, that may
occur from time to time due to management decisions and changing
business circumstances. More detailed information about these factors
may be found in filings by Time Warner with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q. Time Warner is under no
obligation to, and expressly disclaims any such obligation to, update or
alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.
Information on Earnings Release & Conference Call
In a separate release issued today, Time Warner Inc. reported the
financial results for its fourth quarter and full year ended December
31, 2015.
The Company’s conference call can be heard live at 10:30 am ET on
Wednesday, February 10, 2016. To listen to the call, visit www.timewarner.com/investors.
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TIME WARNER INC.
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RECONCILIATION OF GUIDANCE
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(Unaudited)
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Year Ended
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December 31, 2015
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Reconciliation of 2016 Guidance
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Reconciliation of Adjusted Diluted Income per Common Share from
Continuing Operations to Diluted Income per Common Share from
Continuing Operations
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Adjusted EPS(1)
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$
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4.75
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Expect to be in the range of $5.30 to $5.40 per share.
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Asset impairments
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(0.03
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)
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Unable to estimate.
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Gains (losses) on operating assets, net
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-
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Unable to estimate.
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Venezuelan foreign currency loss
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(0.03
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)
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Unable to estimate.
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Other operating income items
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(0.01
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)
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Unable to estimate.
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Gains and losses on investments
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(0.04
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)
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Unable to estimate.
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Other items
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(0.13
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)
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Unable to estimate.
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Tax impact on above items
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0.07
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Unable to estimate.
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Diluted Income per Common Share from Continuing Operations
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$
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4.58
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Unable to estimate.
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(1) Adjusted EPS is Diluted Income per Common Share from
Continuing Operations attributable to Time Warner Inc. common
shareholders with the following items excluded from Income from
Continuing Operations attributable to Time Warner Inc. common
shareholders: noncash impairments of goodwill, intangible and fixed
assets and investments; gains and losses on operating assets (other than
deferred gains on sale-leasebacks), liabilities and investments; gains
and losses recognized in connection with pension and other
postretirement benefit plan curtailments or settlements; external costs
related to mergers, acquisitions, investments or dispositions, as well
as contingent consideration related to such transactions, to the extent
such costs are expensed; amounts related to securities litigation and
government investigations; the foreign currency losses during the three
months ended March 31, 2015 related to the translation of net monetary
assets denominated in Venezuelan currency resulting from the Company's
change to the Simadi exchange rate during the quarter ended March 31,
2015; and amounts attributable to businesses classified as discontinued
operations; as well as the impact of taxes and noncontrolling interests
on the above items and the Company's share of the above items with
respect to equity method investments.
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