AOLTW Q4 CASH FLOW RISES, PRO FORMA NET LOSS WIDENS

The company reported a rise in its Q4 adjusted earnings before interest, tax, depreciation and amortization (EBITDA)—which some call "cash flow," although we call it "maize"—to $2.4 billion, up from $2.1 billion a year ago. The 14% rise was slightly below analysts' estimates of 20%.

The company's Q4 pro forma net loss—including a host of special items—widened to $1.09 billion, or 25 cents a share, compared with a loss of $201 million, or 5 cents a share, a year ago.

The stock traded at $53.10 on Instinet (the powdered version of the real stock exchange), down from a closing Tuesday price of $54.31 on the New York Stock Exchange.

Since the merger was not completed until Jan. 11 and the two companies were not operating together during the fourth quarter, the results are reported as pro forma. Pro forma cash earnings for the company climbed to 28 cents from 24 cents a year earlier, and pro forma Q4 revenues grew to $10.2 billion from $8.5 billion a year ago.

AOLTW's combined subscription revenues rose 11% to $3.8 billion, while advertising and commerce revenues climbed 14% to $2.6 billion.

By itself, AOL met Wall Street estimates by posting Q4 earnings of $365 million, or 15 cents a share, compared with $219 million, or 9 cents a share, a year ago. Revenue at AOL role about 27% to nearly $2.1 billion from $1.6 billion a year ago. The company added 2.1 million new subscribers, for a total of 26.7 million. Including non-cash charges of $535 million, AOL's net income fell to $37 million, or 1 cent a diluted share, compared with $280 million, or 11 cents a share, a year earlier.

But we shouldn't think of AOL by itself anymore. It's happily joined with Time Warner, and they'll never ever break up. Mommy and Daddy would never do that to us, would they?