CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. (Exact Name of Registrant As Specified in Its Charter)
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report February 28, 2014 CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. (Exact name of registrant as specified in its charter) BERMUDA 0-24796 98-0438382 (State or other jurisdiction of incorporation and (Commission File Number) (IRS Employer Identification No.) organisation) O'Hara House, 3 Bermudiana Road, Hamilton, Bermuda HM 08 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (441) 296-1431 Not applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition We issued a press release announcing the results for the year ended December 31, 2013. The press release is furnished as Exhibit 99.1 and incorporated herein by reference. Such information, including the Exhibits attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. The press release includes financial measures which are not presented in accordance with US GAAP. Management believes that the presentation of the non-GAAP financial measures provides useful information to investors regarding the Company's results of operations because management itself uses the non-GAAP measures for the assessment of operational efficiencies and these measures also form the basis of bonus incentives for executive management and throughout the Company. Item 9.01. Financial Statements and Exhibits (c) Exhibits 99.1 Press Release, dated February 28, 2014 (furnished only). Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, we have duly caused this report to be signed on our behalf by the undersigned thereunto duly authorized. Date: February 28, 2014 /s/ David Sturgeon David Sturgeon Acting Chief Financial Officer Exhibit 99.1 CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. REPORTS RESULTS FOR THE FULL YEAR AND FOURTH QUARTER ENDED DECEMBER 31, 2013 FULL YEAR - Net revenues of US$ 691.0 million - - OIBDA of US$ (46.5) million - FOURTH QUARTER - Net revenues of US$ 237.9 million - - OIBDA of US$ (0.4) million - HAMILTON, BERMUDA, February 28, 2014 - Central European Media Enterprises Ltd. (“CME” or the “Company”) (NASDAQ/ Prague Stock Exchange - CETV) today announced financial results for the full year and three months ended December 31, 2013. Net revenues for the year ended December 31, 2013 were US$ 691.0 million compared to US$ 772.1 million in 2012. OIBDA1 for the year ended December 31, 2013 was US$ (46.5) million compared to US$ 125.4 million in 2012. Costs charged in arriving at OIBDA during 2013 included US$ 60.4 million of non-cash programming impairment, US$ 18.6 million of restructuring charges and US$ 7.1 million of severance charges. For the year ended December 31, 2013, a non-cash impairment charge in respect of goodwill and intangible assets amounting to US$ 79.7 million was incurred compared to a charge of US$ 522.5 million in 2012. Operating loss for the year ended December 31, 2013 was US$ 183.1 million compared to US$ 488.2 million in 2012. Net loss for the year ended December 31, 2013 was US$ 281.5 million compared to US$ 546.4 million in 2012. Fully diluted loss per share for the year ended December 31, 2013 was US$ 2.21 compared to US$ 6.96 in 2012. Net revenues for the fourth quarter of 2013 were US$ 237.9 million compared to US$ 253.3 million for the fourth quarter of 2012. OIBDA for the quarter was US$ (0.4) million compared to US$ 60.7 million in 2012. Operating loss for the quarter was US$ 97.5 million compared to US$ 483.1 million in 2012. Net loss for the quarter was US$ 108.2 million compared to US$ 503.1 million in 2012. Fully diluted loss per share for the quarter ended December 31, 2013 was US$ 0.72 compared to US$ 5.59 for the fourth quarter in 2012. Michael Del Nin, co-Chief Executive Officer, commented: "While this has been a difficult year for the company financially, we are encouraged by the progress we are making on our operating priorities. In addition, today we announced a series of related financing transactions that, following closing, will comprehensively address the company’s liquidity needs, improve our debt maturity profile, and set us on a path to being free cash flow positive starting in 2015." Christoph Mainusch, co-Chief Executive Officer, added: "Our results from 2013 demonstrate that we continue to be clear market leaders in terms of audience share in all of our territories and we expect to maintain this position in 2014. We remain committed to our focus on the efficiency of our operations by identifying opportunities to reduce content and operating costs. However, we will not jeopardize our leading audience share positions." 1 OIBDA, which includes amortization and impairment of program rights, is determined as operating income / (loss) before depreciation, amortization of intangible assets and impairments of assets as defined in "Segment Data and Non-GAAP Financial Measures" below. Consolidated Results for the Year Ended December 31, 2013 Net revenues for the year ended December 31, 2013 were US$ 691.0 million compared to US$ 772.1 million for the year ended December 31, 2012. For the year ended December 31, 2013, a non-cash impairment charge in respect of goodwill and intangible assets amounting to US$ 79.7 million was incurred compared to a charge of US$ 522.5 million for the year ended December 31, 2012. Operating loss for the year ended December 31, 2013 was US$ 183.1 million compared to US$ 488.2 million for the year ended December 31, 2012. Net loss for the year ended December 31, 2013 was US$ 281.5 million compared to US$ 546.4 million for the year ended December 31, 2012. Fully diluted loss per share for the year ended December 31, 2013 was US$ 2.21 compared to US$ 6.96 for the year ended December 31, 2012. OIBDA for the year ended December 31, 2013 was US$ (46.5) million compared to US$ $125.4 million in 2012. OIBDA margin2 for the year ended December 31, 2013 was (6.7)% compared to 16.2% for the year ended December 31, 2012. Headline consolidated results for the years ended December 31, 2013 and 2012 were: RESULTS (US$000's) For the Year Ended December 31, 2013 2012 % Actual % Lfl3 Net revenues $ 691,034 $ 772,085 (10.5)% (11.9)% OIBDA (46,455) 125,422 Nm4 Nm4 Operating loss (183,121) (488,193) 62.5 % 62.6 % Net loss (281,533) (546,393) 48.5 % 48.6% Fully diluted loss per share $ (2.21) $ (6.96) Nm4 Nm4 Consolidated Results for the Three Months Ended December 31, 2013 Net revenues for the three months ended December 31, 2013 were US$ 237.9 million compared to US$ 253.3 million for the three months ended December 31, 2012. Operating loss for the quarter was US$ 97.5 million compared to US$ 483.1 million for the three months ended December 31, 2012. Net loss for the quarter was US$ 108.2 million compared to US$ 503.1 million for the three months ended December 31, 2012. Fully diluted loss per share for the three months ended December 31, 2013 was US$ 0.72 compared to US$ 5.59 for the three months ended December 31, 2012. OIBDA for the three months ended December 31, 2013 was US$ (0.4) million compared to US$ 60.7 million for the three months ended December 31, 2012. OIBDA margin2 for the three months ended December 31, 2013 was (0.2)% compared to 24.0% for the three months ended December 31, 2012. Headline consolidated results for the three months ended December 31, 2013 and 2012 were: RESULTS (US$000's) For the Three Months Ended December 31, 2013 2012 % Actual % Lfl3 Net revenues $ 237,909 $ 253,338 (6.1)% (8.8)% OIBDA (395) 60,742 Nm4 Nm4 Operating loss (97,486) (483,139) 79.8 % 79.8 % Net loss (108,209) (503,084) 78.5 % 78.4% Fully diluted loss per share $ (0.72) $ (5.59) Nm4 Nm4 2OIBDA margin is defined as the ratio of OIBDA to Net revenues. 3 % Lfl represents period-on-period percentage change on a constant currency basis. 4Number is not meaningful. Page 2 of 11 Liquidity, Going Concern and Financing Transactions We continue to take actions to conserve cash, including targeted reductions to our operating cost base through cost optimization programs and restructuring efforts, the deferral of programming commitments and capital expenditures and the deferral or cancellation of development projects. We also delayed the settlement of payment obligations with a number of key suppliers, including payments due under contracts for acquired programming, which has resulted in our accounts payable and accrued liabilities increasing to US$ 296.4 million at December 31, 2013 compared to US$ 255.7 million at December 31, 2012 and US $ 240.0 million at December 31, 2011.