Time Warner Inc. Reaffirms 2014 Full-Year Business Outlook

  Time Warner Inc. Reaffirms 2014 Full-Year Business Outlook

Business Wire

NEW YORK -- August 6, 2014

Time Warner Inc. (NYSE:TWX) today reaffirmed its 2014 full-year business
outlook. The Company continues to expect its 2014 full-year percentage growth
rate in Adjusted Diluted Income per Common Share from Continuing Operations
(“Adjusted EPS”) to be in the low teens off a 2013 Adjusted EPS base of
$3.51^1.

The outlook above does not include the impact of any future merger or
unplanned restructuring and severance charges, the impact from future 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 events and resulting impacts.

Use of Adjusted EPS Measure

Adjusted EPS is Diluted Income per Common Share from Continuing Operations
attributable to Time Warner Inc. common shareholders excluding noncash
impairments of goodwill, intangible and fixed assets and investments; gains
and losses on operating assets (other than deferred gains on sale-leasebacks),
liabilities and investments; gains and losses recognized in connection with
pension and other postretirement benefit plan curtailments or settlements;
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 and the Company’s share of the above items with
respect to equity method investments. 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 Income per Common Share from Continuing Operations and other
measures of financial performance reported in accordance with U.S. generally
accepted accounting principles.

About Time Warner Inc.

Time Warner Inc., a global leader in media and entertainment with businesses
in television networks and film and TV entertainment, uses its
industry-leading operating scale and brands to create, package and deliver
high-quality content worldwide on a multi-platform basis.

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, future 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 second quarter ended June 30, 2014.

The Company’s conference call can be heard live at 10:30 am ET on Wednesday,
August 6, 2014. To listen to the call, visit www.timewarner.com/investors.

                     
TIME WARNER INC.
RECONCILIATION OF GUIDANCE
(Unaudited)
                                              
                                                    
                                 Year Ended
                                 December 31,       Reconciliation of 2014
                                 2013 ^1            Guidance
                                                    
Reconciliation of Adjusted
Diluted Income per Common
Share from Continuing
Operations to Diluted Income
per Common Share from
Continuing Operations
                                                    
                                                    
Adjusted EPS ^2                  $  3.51            Expected percentage growth
                                                    in the low teens.
                                                    
                                                    Unable to estimate beyond
Asset impairments                   (0.06  )        the ($0.03) recognized for
                                                    the period January 1, 2014
                                                    through June 30, 2014.
                                                    
Gains (losses) on                                   Unable to estimate beyond
operating assets,                   0.14            the $0.51 recognized for
net                                                 the period January 1, 2014
                                                    through June 30, 2014.
                                                    
                                                    Unable to estimate beyond
Other operating                     0.01            the ($0.07) recognized for
income items                                        the period January 1, 2014
                                                    through June 30, 2014.
                                                    
                                                    Unable to estimate beyond
Gains and losses on                 0.06            the $0.02 recognized for
investments                                         the period January 1, 2014
                                                    through June 30, 2014.
                                                    
                                                    Unable to estimate beyond
Other items                         (0.03  )        the ($0.02) recognized for
                                                    the period January 1, 2014
                                                    through June 30, 2014.
                                                    
                                                    Unable to estimate beyond
Tax impact on above                (0.07  )        the $0.09 recognized for
items                                               the period January 1, 2014
                                                    through June 30, 2014.
                                                    
Diluted Income per
Common Share from                $  3.56           Unable to estimate.
Continuing
Operations
                                                    

^1 On June 6, 2014, the Company completed the legal and structural separation
of Time Inc. from the Company. Accordingly, the Company has recast its
financial information to present the financial condition and results of
operations of its former Time Inc. segment as discontinued operations for all
periods presented.

^2 Adjusted EPS is Diluted Income per Common Share from Continuing Operations
attributable to Time Warner Inc. common shareholders excluding noncash
impairments of goodwill, intangible and fixed assets and investments; gains
and losses on operating assets (other than deferred gains on sale-leasebacks),
liabilities and investments; gains and losses recognized in connection with
pension and other postretirement benefit plan curtailments or settlements;
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 and the Company's share of the above items with
respect to equity method investments.


Contact:

Time Warner Inc.
Corporate Communications
Keith Cocozza (212) 484-7482
or
Investor Relations
Michael Kopelman (212) 484-8920
Michael Senno (212) 484-8950
 
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