Liberty Livewire Corporation Announces Financial Results

Apr 03, 2001, 01:00 ET from Liberty Livewire Corporation

    SANTA MONICA, Calif., April 3 /PRNewswire/ -- Liberty Livewire Corporation
 (Nasdaq:   LWIRA) today announced financial results for the seven-month
 reporting period ended December 31, 2000.  Liberty Livewire Corporation (or
 the "Company") was formerly known as The Todd A-O Corporation.  In June 2000,
 Liberty Media Corporation (LMG.A, LMG.B) acquired a majority interest in the
 Company and contributed to the Company 100% of the outstanding shares of Four
 Media Company.  During the reporting period, the Company changed its fiscal
 year end from August 31 to December 31, and acquired 100% of the equity
 interest in Triumph Communications Group and Soho Group Limited and the sound
 editorial and related operations of SounDelux Entertainment Group. In
 addition, on December 22, 2000, Liberty Media Corporation acquired 100% of the
 outstanding shares of Video Services Corporation, which Liberty Media then
 contributed to the Company in exchange for a promissory note.
     For the twelve months ended December 31, 2000, revenues increased
 $187.8 million or 158.5% to $306.0 million from $118.5 million for the twelve
 months ended August 31, 1999, primarily as a result of the acquisition of Four
 Media Company, SounDelux, Triumph Communications, Soho Group and Visiontext.
 Operating costs and other expenses increased $136.7 million or 139% from
 $98.4 million to $235.1 million for the same period.  As a result, earnings
 before interest, taxes, depreciation and amortization (EBITDA), excluding
 gains and losses on asset sales and nonrecurring charges, increased
 $51.1 million or 253.7% from $20.1 million for the twelve months ended August
 31, 1999 to $71.2 million for the twelve months ended December 31, 2000.
 Depreciation and amortization increased $45.6 million or 355.8% primarily due
 to the equipment, goodwill and other intangibles acquired with respect to the
 acquisitions and to the increase in goodwill and other intangibles
 (approximately $89.5 million) as a result of the purchase accounting
 adjustments made in connection with the Todd Merger.  Interest expense
 increased $17.2 million or 474.3% primarily due to financing for the
 acquisitions and indebtedness assumed and/or refinanced in the acquisitions.
 Provision for income tax increased $2.4 million from $880,000 to $3.2 million.
     As a result of the above, net income before net change in accounting
 principles decreased $13.1 million from $1.6 million income for the twelve
 months ended August 31, 1999 to a $11.5 million net loss for the twelve months
 ended December 31, 2000.
     For the purpose of the above discussion, the operating results of Livewire
 for the seven months ended December 31, 2000 have been combined with the
 operating results of Todd-AO for the five months ended May 31, 2000, and the
 resulting twelve-month operating results are compared to the operating results
 of Todd-AO for the year ended August 31, 1999.  The operating results are not
 comparable between the annual periods as the five months ended May 31, 2000
 and the year ended August 31, 1999 do not include the effects of purchase
 accounting adjustments related to the Todd Merger, and the subsequent period
 representing the seven months ended December 31, 2000 does include the effects
 of the purchase accounting adjustments related to the Todd Merger and
 subsequent acquisitions.
 
     About Liberty Livewire Corporation
     Liberty Livewire Corporation provides a wide range of traditional audio
 and video post-production, transmission, library services, Internet hosting,
 and audio/video distribution services via satellite and fiber to worldwide
 clients in the feature film, television and advertising industries.  The
 company also provides interactive television service under the brand name
 HyperTV(R) with Livewire.  The company has locations in Los Angeles, New York,
 Atlanta, London, San Francisco, Singapore, and Barcelona.  Liberty Livewire is
 a majority owned subsidiary of Liberty Media Group, which holds interests in a
 broad range of video programming, communications, technology and Internet
 businesses in the United States, Europe, South America and Asia.
 
     This press release contains forward-looking statements which are made
 pursuant to the Safe-Harbor provisions of the Private Securities Litigation
 Reform Act of 1995.  Words such as "intends," "believes" and similar
 expressions reflecting something other than historical fact are intended to
 identify forward-looking statements, but are not the exclusive means of
 identifying such statements.  These forward-looking statements involve a
 number of risks and uncertainties, including the timely development and market
 acceptance of products and technologies, successful integration of
 acquisitions, the ability to secure additional sources of financing, the
 ability to reduce operating expenses, and other factors described in the
 Company's filings with the Securities and Exchange Commission.  The actual
 results that the Company achieves may differ materially from any forward-
 looking statement due to such risks and uncertainties.  The Company undertakes
 no obligations to revise or update any forward-looking statements in order to
 reflect events or circumstances that may arise after the date of this release.
 
                          LIBERTY LIVEWIRE CORPORATION
 
                          Consolidated Balance Sheets
                             (Dollars in thousands)
 
                                     Assets
 
                                                    Livewire       Todd-AO
                                                  December 31,  December 31,
                                                       2000           1999
 
     Current assets:
     Cash and cash equivalents                        $19,466     $10,300
     Marketable securities                              5,414         416
     Trade receivables (net of allowance for
      doubtful accounts of $ 5,567 at
      December 31, 2000 and $1,388 at
      December 31, 1999)                              106,158      23,896
     Income tax receivable                                 --         675
     Inventories (first-in first-out basis)             4,932         786
     Deferred income taxes, net                         4,742         573
     Prepaid deposits and other                        16,430       2,925
 
     Total current assets                             157,142      39,571
 
     Non current assets:
     Land                                              46,145       4,270
     Buildings and improvements                        71,903      38,785
     Equipment                                        283,752      89,250
     Construction in progress                             220       2,631
     Property, plant and equipment -- at cost:        402,020     134,936
     Accumulated depreciation and amortization        (35,076)    (52,575)
 
     Property, plant and equipment -- net             366,944      82,361
 
     Investments and other non current receivables      2,445       3,718
 
     Due from parent -- net                             7,245          --
     Goodwill (net of accumulated amortization of
      $16,411 at December 31, 2000 and $3,354 at
      December 31, 1999)                              582,171      33,396
     Identifiable intangible assets
      (net of accumulated amortization
      of $4,945 at December 31, 2000)                  49,025          --
 
     Other assets (net of accumulated
      amortization of $555 at December 31, 2000)       10,873       2,958
 
     Total assets                                  $1,175,845    $162,004
 
 
                          LIBERTY LIVEWIRE CORPORATION
 
                    Consolidated Balance Sheets (Continued)
                             (Dollars in thousands)
 
                      Liabilities and Stockholders' Equity
 
                                                     Livewire       Todd-AO,
                                                   December 31,  December 31,
                                                       2000             1999
 
     Current liabilities:
     Accounts payable                                 $65,679         $5,039
     Accrued liabilities:
      Payroll and related taxes                        10,948          2,649
      Interest                                          1,120          1,177
      SARs compensation payable                           979             --
      Other                                            31,155          8,152
     Current maturities of long-term debt and
      capital lease obligations                         8,545          4,030
     Income taxes payable                                 998          1,097
     Total current liabilities                        119,424         22,144
 
     Long-term debt and capital lease obligations     492,573         65,866
     Other liabilities                                  3,764          1,797
     Deferred income taxes, net                         6,957          3,337
 
     Total liabilities                                622,718         93,144
 
     Commitments and contingencies
 
     Stockholders' equity:
     Common stock:
      Class A; authorized 300,000,000 shares of
       $0.01 par value; issued 5,384,506 at
       December 31, 2000 and 8,951,404 at
       December 31, 1999                                   54             91
      Class B; authorized 100,000,000 shares of
       $0.01 par value; issued and outstanding
       31,612,716 at December 31, 2000 and
       1,747,178 at December 31, 1999                     316             17
     Additional paid-in capital                       570,185         47,089
     Unearned stock compensation                         (273)            --
     Treasury stock (shares at cost: 2,400 at
      December 31, 2000 and 6,000 at
      December 31, 1999)                                  (19)           (47)
     Retained earnings                                 (9,793)        21,881
     Deferred tax asset to be utilized by parent         (409)            --
     Accumulated other comprehensive income (loss)     (6,934)          (171)
 
     Total stockholders' equity                       553,127         68,860
 
     Total                                         $1,175,845       $162,004
 
 
                          LIBERTY LIVEWIRE CORPORATION
                       Consolidated Statements of Income
                (Dollars in thousands, except per share amounts)
 
                   Livewire                           Todd-AO
                   Seven Months Five Months   Four Months    Year       Year
                       Ended        Ended        Ended      Ended      Ended
                   December 31,    May 31,  December 31,August 31, August 31,
                         2000        2000          1999      1999        1998
 
     Revenues          $253,099    $53,243     $43,261    $118,517   $102,614
     Costs and
      expenses:
     Operating costs
      and other
      expenses          218,985     45,723      36,347      98,384     83,279
     SARs compensation
      expense (income) (29,577)         --          --          --         --
     Depreciation and
      amortization       51,545      6,925       4,816      12,829     10,685
     Interest            19,132      1,641       1,384       3,617      1,807
     Restructuring and
      other charges:
     Equipment               --         --          --          --      2,414
     Lease costs             --         --          --          --        353
     Loss on equipment
      lease commitments      --         --          --         788         --
     Other (income)
      expense -- net      (872)      1,070         130         413       (573)
 
     Total costs and
      expenses          259,213     55,359      42,677     116,031     97,965
 
     Income (loss)
      before provision
      for income taxes
      and change in
      accounting
      principle          (6,114)    (2,116)        584       2,486      4,649
     Provision for income
      taxes               3,679       (441)        135         880      1,230
 
     Income (loss)
      before change in
      accounting
      principle          (9,793)    (1,675)        449       1,606      3,419
 
     Change in
      accounting
      principle,
      net of income
      taxes of $150          --         --          --        (293)        --
 
     Net income (loss)  $(9,793)   $(1,675)       $449      $1,313     $3,419
 
     Net income (loss)
      available to
      common
      stockholders      $(9,793)   $(1,675)       $449     $ 1,313    $ 3,419
 
     Effect of
      dilutive securities:
      5% convertible
       debentures            --         --          --          --        302
 
     Net income (loss)
      available to
      common stockholders
      plus assumed
      conversions       $(9,793)   $(1,675)       $449      $1,313     $3,721
     Weighted average
      shares outstanding
       -- basic      34,463,373 10,768,773   9,927,077   9,570,187  9,987,429
 
     Effect of
      dilutive securities:
      Stock options          --         --     729,263     262,427    519,565
      5% convertible
      debentures             --         --          --          --    711,057
     Weighted average
       shares outstanding
       -- diluted    34,463,373 10,768,773  10,656,340   9,832,614 11,218,051
 
     Net income (loss)
      per common share:
     Income(loss) before
      change in accounting
      principle-basic   $(0.28)     $(0.16)      $0.05       $0.17      $0.34
     Change in
      accounting principle   --         --          --      (0.03)         --
 
     Net income
      (loss) -- basic   $(0.28)     $(0.16)      $0.05       $0.14      $0.34
 
     Income (loss) before
      change in
      accounting principle
      -- diluted        $(0.28)     $(0.16)      $0.04       $0.16      $0.33
     Change in
      accounting principle   --         --          --      (0.03)         --
 
     Net income
      (loss) -- diluted $(0.28)     $(0.16)      $0.04       $0.13      $0.33
 
 
 

SOURCE Liberty Livewire Corporation
    SANTA MONICA, Calif., April 3 /PRNewswire/ -- Liberty Livewire Corporation
 (Nasdaq:   LWIRA) today announced financial results for the seven-month
 reporting period ended December 31, 2000.  Liberty Livewire Corporation (or
 the "Company") was formerly known as The Todd A-O Corporation.  In June 2000,
 Liberty Media Corporation (LMG.A, LMG.B) acquired a majority interest in the
 Company and contributed to the Company 100% of the outstanding shares of Four
 Media Company.  During the reporting period, the Company changed its fiscal
 year end from August 31 to December 31, and acquired 100% of the equity
 interest in Triumph Communications Group and Soho Group Limited and the sound
 editorial and related operations of SounDelux Entertainment Group. In
 addition, on December 22, 2000, Liberty Media Corporation acquired 100% of the
 outstanding shares of Video Services Corporation, which Liberty Media then
 contributed to the Company in exchange for a promissory note.
     For the twelve months ended December 31, 2000, revenues increased
 $187.8 million or 158.5% to $306.0 million from $118.5 million for the twelve
 months ended August 31, 1999, primarily as a result of the acquisition of Four
 Media Company, SounDelux, Triumph Communications, Soho Group and Visiontext.
 Operating costs and other expenses increased $136.7 million or 139% from
 $98.4 million to $235.1 million for the same period.  As a result, earnings
 before interest, taxes, depreciation and amortization (EBITDA), excluding
 gains and losses on asset sales and nonrecurring charges, increased
 $51.1 million or 253.7% from $20.1 million for the twelve months ended August
 31, 1999 to $71.2 million for the twelve months ended December 31, 2000.
 Depreciation and amortization increased $45.6 million or 355.8% primarily due
 to the equipment, goodwill and other intangibles acquired with respect to the
 acquisitions and to the increase in goodwill and other intangibles
 (approximately $89.5 million) as a result of the purchase accounting
 adjustments made in connection with the Todd Merger.  Interest expense
 increased $17.2 million or 474.3% primarily due to financing for the
 acquisitions and indebtedness assumed and/or refinanced in the acquisitions.
 Provision for income tax increased $2.4 million from $880,000 to $3.2 million.
     As a result of the above, net income before net change in accounting
 principles decreased $13.1 million from $1.6 million income for the twelve
 months ended August 31, 1999 to a $11.5 million net loss for the twelve months
 ended December 31, 2000.
     For the purpose of the above discussion, the operating results of Livewire
 for the seven months ended December 31, 2000 have been combined with the
 operating results of Todd-AO for the five months ended May 31, 2000, and the
 resulting twelve-month operating results are compared to the operating results
 of Todd-AO for the year ended August 31, 1999.  The operating results are not
 comparable between the annual periods as the five months ended May 31, 2000
 and the year ended August 31, 1999 do not include the effects of purchase
 accounting adjustments related to the Todd Merger, and the subsequent period
 representing the seven months ended December 31, 2000 does include the effects
 of the purchase accounting adjustments related to the Todd Merger and
 subsequent acquisitions.
 
     About Liberty Livewire Corporation
     Liberty Livewire Corporation provides a wide range of traditional audio
 and video post-production, transmission, library services, Internet hosting,
 and audio/video distribution services via satellite and fiber to worldwide
 clients in the feature film, television and advertising industries.  The
 company also provides interactive television service under the brand name
 HyperTV(R) with Livewire.  The company has locations in Los Angeles, New York,
 Atlanta, London, San Francisco, Singapore, and Barcelona.  Liberty Livewire is
 a majority owned subsidiary of Liberty Media Group, which holds interests in a
 broad range of video programming, communications, technology and Internet
 businesses in the United States, Europe, South America and Asia.
 
     This press release contains forward-looking statements which are made
 pursuant to the Safe-Harbor provisions of the Private Securities Litigation
 Reform Act of 1995.  Words such as "intends," "believes" and similar
 expressions reflecting something other than historical fact are intended to
 identify forward-looking statements, but are not the exclusive means of
 identifying such statements.  These forward-looking statements involve a
 number of risks and uncertainties, including the timely development and market
 acceptance of products and technologies, successful integration of
 acquisitions, the ability to secure additional sources of financing, the
 ability to reduce operating expenses, and other factors described in the
 Company's filings with the Securities and Exchange Commission.  The actual
 results that the Company achieves may differ materially from any forward-
 looking statement due to such risks and uncertainties.  The Company undertakes
 no obligations to revise or update any forward-looking statements in order to
 reflect events or circumstances that may arise after the date of this release.
 
                          LIBERTY LIVEWIRE CORPORATION
 
                          Consolidated Balance Sheets
                             (Dollars in thousands)
 
                                     Assets
 
                                                    Livewire       Todd-AO
                                                  December 31,  December 31,
                                                       2000           1999
 
     Current assets:
     Cash and cash equivalents                        $19,466     $10,300
     Marketable securities                              5,414         416
     Trade receivables (net of allowance for
      doubtful accounts of $ 5,567 at
      December 31, 2000 and $1,388 at
      December 31, 1999)                              106,158      23,896
     Income tax receivable                                 --         675
     Inventories (first-in first-out basis)             4,932         786
     Deferred income taxes, net                         4,742         573
     Prepaid deposits and other                        16,430       2,925
 
     Total current assets                             157,142      39,571
 
     Non current assets:
     Land                                              46,145       4,270
     Buildings and improvements                        71,903      38,785
     Equipment                                        283,752      89,250
     Construction in progress                             220       2,631
     Property, plant and equipment -- at cost:        402,020     134,936
     Accumulated depreciation and amortization        (35,076)    (52,575)
 
     Property, plant and equipment -- net             366,944      82,361
 
     Investments and other non current receivables      2,445       3,718
 
     Due from parent -- net                             7,245          --
     Goodwill (net of accumulated amortization of
      $16,411 at December 31, 2000 and $3,354 at
      December 31, 1999)                              582,171      33,396
     Identifiable intangible assets
      (net of accumulated amortization
      of $4,945 at December 31, 2000)                  49,025          --
 
     Other assets (net of accumulated
      amortization of $555 at December 31, 2000)       10,873       2,958
 
     Total assets                                  $1,175,845    $162,004
 
 
                          LIBERTY LIVEWIRE CORPORATION
 
                    Consolidated Balance Sheets (Continued)
                             (Dollars in thousands)
 
                      Liabilities and Stockholders' Equity
 
                                                     Livewire       Todd-AO,
                                                   December 31,  December 31,
                                                       2000             1999
 
     Current liabilities:
     Accounts payable                                 $65,679         $5,039
     Accrued liabilities:
      Payroll and related taxes                        10,948          2,649
      Interest                                          1,120          1,177
      SARs compensation payable                           979             --
      Other                                            31,155          8,152
     Current maturities of long-term debt and
      capital lease obligations                         8,545          4,030
     Income taxes payable                                 998          1,097
     Total current liabilities                        119,424         22,144
 
     Long-term debt and capital lease obligations     492,573         65,866
     Other liabilities                                  3,764          1,797
     Deferred income taxes, net                         6,957          3,337
 
     Total liabilities                                622,718         93,144
 
     Commitments and contingencies
 
     Stockholders' equity:
     Common stock:
      Class A; authorized 300,000,000 shares of
       $0.01 par value; issued 5,384,506 at
       December 31, 2000 and 8,951,404 at
       December 31, 1999                                   54             91
      Class B; authorized 100,000,000 shares of
       $0.01 par value; issued and outstanding
       31,612,716 at December 31, 2000 and
       1,747,178 at December 31, 1999                     316             17
     Additional paid-in capital                       570,185         47,089
     Unearned stock compensation                         (273)            --
     Treasury stock (shares at cost: 2,400 at
      December 31, 2000 and 6,000 at
      December 31, 1999)                                  (19)           (47)
     Retained earnings                                 (9,793)        21,881
     Deferred tax asset to be utilized by parent         (409)            --
     Accumulated other comprehensive income (loss)     (6,934)          (171)
 
     Total stockholders' equity                       553,127         68,860
 
     Total                                         $1,175,845       $162,004
 
 
                          LIBERTY LIVEWIRE CORPORATION
                       Consolidated Statements of Income
                (Dollars in thousands, except per share amounts)
 
                   Livewire                           Todd-AO
                   Seven Months Five Months   Four Months    Year       Year
                       Ended        Ended        Ended      Ended      Ended
                   December 31,    May 31,  December 31,August 31, August 31,
                         2000        2000          1999      1999        1998
 
     Revenues          $253,099    $53,243     $43,261    $118,517   $102,614
     Costs and
      expenses:
     Operating costs
      and other
      expenses          218,985     45,723      36,347      98,384     83,279
     SARs compensation
      expense (income) (29,577)         --          --          --         --
     Depreciation and
      amortization       51,545      6,925       4,816      12,829     10,685
     Interest            19,132      1,641       1,384       3,617      1,807
     Restructuring and
      other charges:
     Equipment               --         --          --          --      2,414
     Lease costs             --         --          --          --        353
     Loss on equipment
      lease commitments      --         --          --         788         --
     Other (income)
      expense -- net      (872)      1,070         130         413       (573)
 
     Total costs and
      expenses          259,213     55,359      42,677     116,031     97,965
 
     Income (loss)
      before provision
      for income taxes
      and change in
      accounting
      principle          (6,114)    (2,116)        584       2,486      4,649
     Provision for income
      taxes               3,679       (441)        135         880      1,230
 
     Income (loss)
      before change in
      accounting
      principle          (9,793)    (1,675)        449       1,606      3,419
 
     Change in
      accounting
      principle,
      net of income
      taxes of $150          --         --          --        (293)        --
 
     Net income (loss)  $(9,793)   $(1,675)       $449      $1,313     $3,419
 
     Net income (loss)
      available to
      common
      stockholders      $(9,793)   $(1,675)       $449     $ 1,313    $ 3,419
 
     Effect of
      dilutive securities:
      5% convertible
       debentures            --         --          --          --        302
 
     Net income (loss)
      available to
      common stockholders
      plus assumed
      conversions       $(9,793)   $(1,675)       $449      $1,313     $3,721
     Weighted average
      shares outstanding
       -- basic      34,463,373 10,768,773   9,927,077   9,570,187  9,987,429
 
     Effect of
      dilutive securities:
      Stock options          --         --     729,263     262,427    519,565
      5% convertible
      debentures             --         --          --          --    711,057
     Weighted average
       shares outstanding
       -- diluted    34,463,373 10,768,773  10,656,340   9,832,614 11,218,051
 
     Net income (loss)
      per common share:
     Income(loss) before
      change in accounting
      principle-basic   $(0.28)     $(0.16)      $0.05       $0.17      $0.34
     Change in
      accounting principle   --         --          --      (0.03)         --
 
     Net income
      (loss) -- basic   $(0.28)     $(0.16)      $0.05       $0.14      $0.34
 
     Income (loss) before
      change in
      accounting principle
      -- diluted        $(0.28)     $(0.16)      $0.04       $0.16      $0.33
     Change in
      accounting principle   --         --          --      (0.03)         --
 
     Net income
      (loss) -- diluted $(0.28)     $(0.16)      $0.04       $0.13      $0.33
 
 
 SOURCE  Liberty Livewire Corporation