MGM Posts 4th-Quarter Profit, Beats Estimates

Metro-Goldwyn-Mayer Inc. turned a profit for its fourth quarter with help from the latest James Bond hit, “The World Is Not Enough.” The company controlled by billionaire Kirk Kerkorian earned $15.2 million, or 8 cents a share, a penny higher than estimates. For the period a year earlier, it had a loss of $43.7 million, or 41 cents. Revenue for the latest quarter fell 3% to $372.2 million, in part, MGM said, because it had fewer TV programs in the period. Cash flow--or earnings before interest, taxes, depreciation and amortization--was $47.7 million, whereas the previous year’s quarter had a cash flow loss of $15.6 million. MGM has been trying to stage a turnaround under Chairman Alex Yemenidjian, whom Kerkorian tapped in April to reverse the losses and expand distribution of MGM films on TV and other outlets. After a string of flop films, Yemenidjian has been working to cut studio costs and develop alliances for TV distribution of MGM’s films, both new releases and classics from its extensive library. MGM shares rose 31 cents to close at $23.50 on the NYSE. Through Monday, the stock had gained about 47% since Yemenidjian took over. Yemenidjian said MGM is implementing a compensation plan that would tie a significant portion of management’s pay to performance-based bonuses.