TWX: Time Warner Inc. Reports Third Quarter 2006 Results

Time Warner Inc. (NYSE:TWX) today reported financial results for its third quarter ended September 30, 2006.
In making the announcement, Chairman and Chief Executive Officer Dick Parsons said: “Time Warner continues to build momentum and deliver value for our shareholders. This quarter’s results position the Company to meet all of our full-year financial objectives. We're particularly encouraged by AOL’s early progress in making the transition to an advertising-supported business. Just as importantly, Time Warner Cable is generating outstanding results, even while successfully integrating its newly acquired cable systems. In addition, our capital allocation efforts continue to drive incremental value – including our $20 billion share repurchase program as well as this year's more than $20 billion of acquisitions and almost $4 billion of announced or completed non-core asset divestitures.”

Company Results
In the quarter, Revenues rose 7% over the same period in 2005 to $10.9 billion, led by growth at the Cable and Networks segments.
Adjusted Operating Income before Depreciation and Amortization climbed 16% to $2.9 billion, reflecting double-digit increases at the Cable and AOL segments as well as gains at the Networks and Publishing segments. This growth was offset partly by a decline at the Filmed Entertainment segment. Operating Income was up 1% to $1.7 billion.
For the first nine months, Cash Provided by Operations was $6.6 billion, and Free Cash Flow totaled $4.0 billion (reflecting a 50% conversion rate of Adjusted Operating Income before Depreciation and Amortization). As of September 30, 2006, Net Debt totaled $32.2 billion, up $16.1 billion from $16.1 billion at the end of 2005, reflecting, among other items, the closing of the Adelphia and Comcast transactions as well as the Company’s share repurchase program.
Diluted Income per Common Share before Discontinued Operations and Cumulative Effect of Accounting Change was $0.33 for the three months ended September 30, 2006, compared to $0.18 in last year’s third quarter. The current and prior year amounts included certain items affecting comparability that are described in detail in the Consolidated Reported Net Income and Per Share Results section below. After adjusting for such items, diluted common share results were $0.19, up 12% from $0.17 in the prior year period.

Stock Repurchase Program Update
From the inception of its stock repurchase program through October 31, 2006, the Company has repurchased approximately 770 million shares of common stock for approximately $13.4 billion.
At existing price levels, the Company expects that it will purchase at least $15 billion of its common stock by the end of 2006 and the remainder of its $20 billion program in 2007

Read the complete statement(PDF) here