-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Hst/7aMjbk9QQ+ASXcQCVxpTqqj2rjENulLzfBB5UkJ0moKHU2hwm8Lq3wnzF6AG asnfa0rtOe4QkHfJGosKjQ== 0000950123-95-000059.txt : 19950509 0000950123-95-000059.hdr.sgml : 19950508 ACCESSION NUMBER: 0000950123-95-000059 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941130 FILED AS OF DATE: 19950117 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KING WORLD PRODUCTIONS INC CENTRAL INDEX KEY: 0000756764 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MOTION PICTURE & VIDEO TAPE DISTRIBUTION [7822] IRS NUMBER: 132565808 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09244 FILM NUMBER: 95501601 BUSINESS ADDRESS: STREET 1: 1700 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2123154000 10-Q 1 KING WORLD PRODUCTIONS, INC. -- FORM 10-Q 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. 2 KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS (Dollars in thousands)
November 30, August 31, 1994 1994 ----------- ---------- (Unaudited) 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 ======== ========
The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets. 2 3 KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) LIABILITIES AND STOCKHOLDERS' EQUITY (Dollars in thousands)
November 30, August 31, 1994 1994 ------------ ---------- (Unaudited) 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 ======== ========
The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets. 3 4 KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended November 30, --------------------------------- 1994(1) 1993 -------- -------- (Dollars in thousands except per share data) 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 ======== ========
- -------------- (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 5 KING WORLD PRODUCTIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended November 30, --------------------------- 1994 1993 -------- -------- (Dollars in thousands) 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 ======== ========
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 5 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 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:
Three Months Ended November 30, ---------------------------------- 1994 Pro forma 1993 -------------- ---- (Dollars in thousands except per share data) 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 ======== ========
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 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 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 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 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 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 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 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 15 EXHIBIT INDEX ---------------- EXHIBIT 27 - Financial Data Schedule. EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS AUG-31-1995 SEP-01-1994 NOV-30-1994 372,447 0 58,430 4,412 0 449,997 11,277 9,239 611,974 125,103 0 498 0 0 486,373 611,974 0 147,084 0 88,438 18,069 0 0 44,555 16,687 27,868 0 0 0 27,868 .75 .75
-----END PRIVACY-ENHANCED MESSAGE-----