Ticketmaster reports strong third quarter results

Business Wire, Dec 12, 1996

LOS ANGELES--(BUSINESS WIRE)--Dec. 12, 1996--Ticketmaster Group, Inc. (NASDAQ: TKTM) today reported revenues of $62.6 million for the third quarter ended October 31, 1996, up 64% from revenues of $38.2 million in the 1995 third quarter. EBITDA (earnings before interest, taxes, depreciation and amortization) was $7.2 million in the 1996 third quarter, more than four times EBITDA of $1.7 million in the 1995 third quarter. Attributable EBITDA (including Ticketmaster's pro rata share of EBITDA of its unconsolidated joint ventures) was $8.1 million in the 1996 third quarter vs. attributable EBITDA of $2.8 million in the 1995 third quarter. Operating income was $4.7 million in the 1996 third quarter vs. $0.3 million in the 1995 third quarter.

Pre-tax income in the 1996 third quarter was $1.4 million excluding a one-time gain of $3.2 million pre-tax from the sale of Ticketmaster's interest in Video Jukebox Network International, Ltd. (the "Box") (an unconsolidated non-strategic asset) vs. a pre-tax loss of $2.8 million in the 1995 third quarter. Net income in the 1996 third quarter was $2.8 million (including the gain on the Box) vs. a net loss of $2.7 million in the 1995 third quarter. Earnings per share (pro forma for shares issued in Ticketmaster's initial public offering) were $0.11 in the 1996 third quarter vs. a loss of $0.11 in the 1995 third quarter. Earnings per share on a reported basis were $0.19 in the 1996 third quarter vs. a loss of $0.17 in the 1995 third quarter. Ticketmaster sold a total of 14.9 million tickets, including sales by its unconsolidated joint ventures, in the 1996 third quarter. In the comparable 1995 quarter, Ticketmaster sold a total of 12.8 million tickets, including sales by its unconsolidated joint ventures.

"This was a strong quarter for Ticketmaster, marked by higher revenues in our core ticketing business as well as increased revenues from our emerging businesses in promotions and sponsorships, publications and merchandising," said Fredric D. Rosen, President and CEO. "We also began on-line ticketing through the Internet, completed a successful $105 million IPO and reported positive net income despite continuing substantial investments to grow our business."

Revenues were $162.5 million in the nine months ended October 31, 1996, up 33% from revenues of $121.9 million in the 1995 period. EBITDA was $13.4 million in the 1996 nine months, up 49% from EBITDA of $9.0 million in the 1995 period. Attributable EBITDA was $18.1 million in the 1996 period, up 37% from attributable EBITDA of $13.2 million in the 1995 period. Operating income was $8.2 million in the 1996 period, nearly double operating income of $4.1 million in the 1995 period.

Pre-tax loss in the 1996 nine months was $1.1 million (excluding the $3.2 million pre-tax gain from the Box) vs. a pre-tax loss of $5.7 million in the 1995 period. Net income in the 1996 nine months was $0.4 million (including the gain on the Box) vs. a net loss of $5.0 million in the 1995 period. Earnings per share (pro forma for shares issued in the IPO) were $0.02 in the 1996 nine months vs. a loss of $0.20 in the 1995 period. Earnings per share on a reported basis were $0.03 in the 1996 period vs. a loss of $0.33 in the 1995 period. Ticketmaster sold a total of 45.3 million tickets, including sales by its unconsolidated joint ventures, in the 1996 period. In the comparable 1995 period, Ticketmaster sold a total of 39.9 million tickets, including sales by its unconsolidated joint ventures.

On November 22, 1996, Ticketmaster completed an initial public offering of 7.25 million shares of common stock at a price of $14.50 per share. All of the shares in the IPO were sold by Ticketmaster; no shares were sold by existing shareholders. Net proceeds of $97.8 million from the IPO have been used to repay $79.4 million of the outstanding debt under Ticketmaster's bank credit agreement; to repay debt incurred to acquire (by purchase, redemption or otherwise) various licensees, joint venture partners and minority interests; and for general corporate purposes. Future periods will benefit from interest savings from this debt reduction.

Ticketmaster is the leading provider of automated ticketing services in the U.S. with over 3,500 clients, including many of the country's foremost entertainment facilities and promoters and 73 professional sports franchises. Ticketmaster has established its industry position by providing these clients with comprehensive ticket inventory control and management, a broad distribution network, and dedicated marketing and support services. The Company also operates in the U.K., Australia, Canada, and Mexico and is exploring further opportunities in Europe, the Pacific Rim and Central and South America.

Note To Editors -- See Financial Table Attached -0-

                           TICKETMASTER GROUP, INC.
                      (unaudited financial statements)
                    (in thousands, except per share amounts)

                               3 months ended 10/31,     9 months ended 10/31,
                                 1995        1996           1995      1996
Revenue:
  Ticketing operations       $   36,595 $   52,157      $  116,365 $  144,827
  Concession control systems          0      6,205               0      6,205
  Publications                      837      2,967           2,602      7,479
  Merchandising                     374        463           1,629      1,858
  Sales of Ticketing Equipment      390        786           1,330      2,168
                                 38,196     62,578         121,926    162,537
Operating costs:
  Ticketing operations           22,691     30,455          74,074    89,110
  Ticketing selling, general
   and administrative             8,579      9,272          22,310    25,550
 Concession control
  systems operations                         3,577                     3,577
  Concession control
   systems selling, general
   and administrative                        3,368                     3,368
  Publications                    1,595      4,596           4,962    13,711
  Merchandising                     285        447           1,350     1,673
  Corporate general
   and administrative             3,362      3,707          10,234    12,103
  Depreciation and amortization   2,277      3,215           7,040     8,144
  Equity in net income of
   unconsolidated affiliates       (845)      (804)         (2,189)   (2,940)

           Operating income         252      4,745           4,145     8,241

Other (income) expenses:
  Interest expense, net           3,169      3,177           9,696    9,094
  Minority interests                (97)       135             185      261
  Gain on sale of unconsolidated
   affiliate                     ________   (3,195)         ________ (3,195)
  Income (loss)
   before income
   taxes                          (2,820)    4,628          (5,736)    2,081
Income tax provision (benefit)      (160)    1,779            (750)    1,650
       Net income (loss)    $     (2,660)  $ 2,849       $   (4,986)  $   43
Net income (loss) per share $      (0.17)  $  0.19       $    (0.33)  $ 0.03
Pro Forma(a) net income
 (loss) per share           $      (0.11)  $  0.11       $    (0.20)  $ 0.02

Weighted average common
 shares outstanding            15,310,405 15,350,041   15,310,405 15,350,041
Pro Forma(a) weighted
 average common shares
 outstanding                   24,739,715 24,779,351   24,739,715 24,779,351

Supplemental Information:
  EBITDA                        $   1,684   $  7,156   $    8,996  $  13,445

  Attributable EBITDA(b)         $   2,823  $  8,052   $  13,248   $  18,120
  Pro Forma(a) EBITDA                       $  8,571               $  20,076
  Pro Forma(a) Attributable
   EBITDA(b)                      $  9,830             $  23,875
  Number of Tickets Sold
       Consolidated Business         8,913   11,454     28,543   33,034
       Unconsolidated Joint Ventures 3,846    3,482     11,392   12,305
       Total                        12,759   14,936     39,935   45,339