Second-Quarter Loss at Lorimar Hits $215 Million

Lorimar Telepictures, which recently agreed to lower its sale price to Warner Communications, reported Friday a $215-million net loss in the second fiscal quarter ended Sept. 30. In the same period a year earlier, it recorded a loss of $55.6 million.

The Culver City-based entertainment firm said the results included an $85-million provision for loss related to commitments to complete and develop certain theatrical motion pictures. Lorimar said that provision was based on estimates supplied by Warner Bros., distributor for the pictures.

Other factors cited include effects of the long Hollywood writer’s strike earlier this year, losses involved in the “restructuring and winding down” of the firm’s home video and feature film divisions, increased interest expense and “revised estimates for the carrying value of certain assets and liabilities.”

Warner and Lorimar recently signed revised definitive agreement under which Lorimar shareholders are to get 0.3675 of one Warner share for each Lorimar share, instead of the originally agreed 0.415. When the revision was announced, Warner had cited Lorimar’s substantial losses as a factor.

Lorimar said $199.6 million of its loss was from continuing operations and $15.4 million was from discontinued operations. The company reported revenue of $70.5 million, less than half of the $148.6 million in the same quarter of fiscal 1987.