Lorimar Reports $7.1-Million Loss for First Quarter

Lorimar Telepictures, the entertainment firm that surprised Wall Street this summer with hefty losses and a plan to scale back its businesses, Friday reported a net loss of $7.1 million on revenue of $163.8 million for the three months ended June 30.

Slightly more than $1 million of the first fiscal quarter loss was attributed to discontinued operations. The Culver City-based company announced in June that it intends to sell such major assets as its six TV stations, its magazine publications and its advertising agencies to concentrate on the production and distribution of television shows, motion pictures and home video cassettes. No sales have yet been completed.

The results stemmed largely from increased borrowing and a decrease in hours of original television programming delivered to the networks, the company said, even though Lorimar said it will be the leading supplier of original prime time series programming in the 1987-88 season, which such shows as “Dallas.”

37.5 Program Hours

For the first quarter a year ago, the company reported net income of nearly $28 million on revenue of $174.4 million. During that period, Lorimar delivered 37.5 hours of network television programming, which it termed “an abnormally high level.” By contrast, the company said, it delivered 21 hours in the latest quarter.

For the year ended March 31, Lorimar reported a loss of $58.6 million. About half of that loss was attributed to the home video division, which suffered high returns by retailers of a number of its products. Three top executives of the division were replaced last March for alleged conflicts of interest.

The company said it has been negotiating with its lenders to obtain necessary waivers and consents to proceed with a previously announced plan to repurchase up to 15% of its own shares, and it expects final approval shortly.

On Friday, Lorimar closed at $15.875, up 87.5 cents on the American Stock Exchange, with a volume of 518,400 shares.