Time Warner Inc. Provides 2013 Full-Year Business Outlook

  Time Warner Inc. Provides 2013 Full-Year Business Outlook

Business Wire

NEW YORK -- February 6, 2013

Time Warner Inc. (NYSE:TWX) today provided its 2013 full-year business
outlook. The Company expects its 2013 full-year percentage growth rate in
Adjusted Diluted Net Income per Common Share (“Adjusted EPS”) to be in the low
double digits off a 2012 Adjusted EPS base of $3.28. This outlook reflects the
impact of approximately $60 million in restructuring charges that the Company
anticipates incurring in 2013 at Time Inc.

The outlook above does not include the impact of any future merger or
unplanned restructuring and severance charges, the impact from sales and
acquisitions of operating assets or the impact of taxes on the above items
that may occur from time to time due to management decisions and changing
business circumstances. The Company is currently unable to forecast precisely
the timing and/or magnitude of any such amounts or events.

Use of Adjusted EPS Measure

Adjusted EPS is Diluted Net Income per Common Share attributable to Time
Warner Inc. common shareholders excluding noncash impairments of goodwill,
intangible and fixed assets and investments; gains and losses on operating
assets, liabilities and investments; gains and losses recognized in connection
with pension plan curtailments, settlements or termination benefits; external
costs related to mergers, acquisitions, investments or dispositions, as well
as contingent consideration related to such transactions, to the extent such
costs are expensed; amounts related to securities litigation and government
investigations; and amounts attributable to businesses classified as
discontinued operations, as well as the impact of taxes and noncontrolling
interests on the above items. Adjusted EPS is considered an important
indicator of the operational strength of the Company’s businesses as this
measure eliminates amounts that do not reflect the fundamental performance of
the Company’s businesses. The Company utilizes Adjusted EPS, among other
measures, to evaluate the performance of its businesses both on an absolute
basis and relative to its peers and the broader market. Many investors also
use an adjusted EPS measure as a common basis for comparing the performance of
different companies. Some limitations of Adjusted EPS, however, are that it
does not reflect certain cash charges that affect the operating results of the
Company’s businesses and that it involves judgment as to whether items affect
fundamental operating performance. Also, a general limitation of Adjusted EPS
is that it is not prepared in accordance with U.S. generally accepted
accounting principles and may not be comparable to similarly titled measures
of other companies due to differences in methods of calculation and excluded
items.

Adjusted EPS should be considered in addition to, not as a substitute for, the
Company’s Diluted Net Income per Common Share and other measures of financial
performance reported in accordance with U.S. generally accepted accounting
principles.

About Time Warner Inc.

Time Warner Inc., aglobal leader in media and entertainment with businesses
in television networks, film and TV entertainment and publishing, usesits
industry-leading operating scale and brands to create, package and deliver
high-quality content worldwide through multiple distribution outlets.

Caution Concerning Forward-Looking Statements

This document contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based
on management’s current expectations or beliefs, and are subject to
uncertainty and changes in circumstances. Actual results may vary materially
from those expressed or implied by the statements herein due to changes in
economic, business, competitive, technological, strategic and/or regulatory
factors and other factors affecting the operation of Time Warner’s businesses,
and any future merger or unplanned restructuring charges, sales and
acquisitions of operating assets and investments, or the impact of taxes on
the above items, that may occur from time to time due to management decisions
and changing business circumstances. More detailed information about these
factors may be found in filings by Time Warner with the Securities and
Exchange Commission, including its most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q. Time Warner is under no obligation
to, and expressly disclaims any such obligation to, update or alter its
forward-looking statements, whether as a result of new information, future
events, or otherwise.

Information on Earnings Release & Conference Call

In a separate release issued today, Time Warner Inc. reported the financial
results for its fourth quarter and full year ended December 31, 2012.

The Company’s conference call can be heard live at 10:30 am ET on Wednesday,
February 6, 2013. To listen to the call, visit www.timewarner.com/investors.

                                
TIME WARNER INC.
RECONCILIATION OF GUIDANCE
(Unaudited)
                                                   
                                                      
                                                      
                                  Year Ended
                                  December 31, 2012   Reconciliation of 2013
                                                      Guidance
                                                      
Reconciliation of Adjusted
Diluted Net Income per Common
Share ("Adjusted EPS") to
Diluted Net Income per Common
Share attributable to Time
Warner Inc. common shareholders
                                                      
                                                      
                                                      Expected percentage
Adjusted EPS ^(1)                 $     3.28          growth in the low double
                                                      digits.
                                                      
Asset impairments                       (0.19   )     Unable to estimate.
                                                      
Gains (losses) on operating             0.01          Unable to estimate.
assets, net
                                                      
Other operating income items            (0.03   )     Unable to estimate.
                                                      
                                                      Unable to estimate
                                                      beyond the $0.07 - $0.08
                                                      expected to be
Gains and losses on investments         (0.08   )     recognized for the
                                                      period
                                                      January 1, 2013 through
                                                      March 31, 2013.^(2)
                                                      
Other items                             -             Unable to estimate.
                                                      
                                                      Unable to estimate
                                                      beyond the ($0.04) -
                                                      ($0.05) expected to be
Tax impact on above items              0.10         recognized for the
                                                      period January 1, 2013
                                                      through March 31,
                                                      2013.^(2)
                                                      
Diluted Net Income per Common
Share attributable to Time        $     3.09         Unable to estimate.
Warner Inc. common shareholders
                                                      

(1) Adjusted EPS is Diluted Net Income per Common Share attributable to Time
Warner Inc. common shareholders excluding noncash impairments of goodwill,
intangible and fixed assets and investments; gains and losses on operating
assets, liabilities and investments; gains and losses recognized in connection
with pension plan curtailments, settlements or termination benefits; external
costs related to mergers, acquisitions, investments or dispositions, as well
as contingent consideration related to such transactions, to the extent such
costs are expensed; amounts related to securities litigation and government
investigations; and amounts attributable to businesses classified as
discontinued operations, as well as the impact of taxes and noncontrolling
interests on the above items.

(2) The Film and TV Entertainment segment expects to close on a sale of its
investment in a joint venture in Japan during the first quarter of 2013. In
connection with this sale, the Company expects to incur a pretax gain of
approximately $60 million to $70 million in the first quarter of 2013.

Contact:

Time Warner Inc.
Corporate Communications
Keith Cocozza (212) 484-7482
or
Investor Relations
Doug Shapiro (212) 484-8926
Michael Kopelman (212) 484-8920
 
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