4Kids Entertainment - 4Kids Entertainment Reports Fourth Quarter and Year-End Results
4Kids Entertainment Reports Fourth Quarter and Year-End Results
Company Announces Two-Year Extension with FOX
NEW YORK--(BUSINESS WIRE)--March 15, 2006--4Kids Entertainment, Inc. (NYSE:KDE - News), a global provider of children's entertainment and merchandise licensing, announced today results for fourth quarter and fiscal year ended December 31, 2005.
For fiscal 2005, net revenues were $86.7 million as compared to $103.3 million in 2004. Net income for the year was $5.1 million or $0.37 per diluted share, as compared to $12.7 million, or $0.89 per diluted share in 2004. The diluted weighted average common shares outstanding for the year ended December 31, 2005 was 13,536,830 shares compared to 14,335,343 shares in the prior year.
Net revenues in the fourth quarter ended December 31, 2005 were $26.9 million, as compared to $34.1 million for the same period in 2004. Fourth quarter net income was $0.5 million, or $0.04 per diluted share, as compared to $5.0 million, or $0.36 per diluted share, for the same period in 2004.
Alfred R. Kahn, 4Kids Entertainment Chairman and Chief Executive Officer, said: "We had very disappointing results in 2005 with licensing revenues off 25% compared to 2004. Revenues from our top two properties, Yu-Gi-Oh!® and Teenage Mutant Ninja Turtles®, declined and were only partially offset by increased revenues from our Cabbage Patch Kids® and Winx Club(TM) properties.
In addition, results were negatively impacted by a lack of a major theatrical release in 2005. Our fourth quarter 2005 licensing revenues were significantly lower than our expectations as many of our newer properties failed to perform as hoped at retail.
"We are determined to improve the Company's performance going forward and we will be focused on adding new sources of revenue and controlling expenses," Kahn said.
On March 14, 2006, 4Kids extended its multi-year agreement with FOX to broadcast 4Kids TV(TM) on the FOX network for the 2006-2007 and 2007-2008 broadcast seasons. The terms of the two-year extension are discussed more fully in a Form 8-K filed this morning.
The Company also announced that there will be a press event at 12 p.m. (ET) today at which 4Kids and Microsoft will announce the identity of the exciting new mass appeal entertainment property, which is in development. It is expected that this new property will begin contributing to 4Kids' revenues by the fourth quarter.
In commenting on these announcements, Kahn said, "We believe that our new FOX deal, our Microsoft alliance and our balance sheet with cash and investments of $113.5 million and no debt at December 31, 2005, positions 4Kids well for the future. As a leading provider of children's programming to broadcast television, we feel that we are in a unique position to attract content owners and strengthen our existing property portfolio. We will maintain our focus on acquiring new content that drives licensing revenues and television ratings."
Company Announces Two-Year Extension with FOX
NEW YORK--(BUSINESS WIRE)--March 15, 2006--4Kids Entertainment, Inc. (NYSE:KDE - News), a global provider of children's entertainment and merchandise licensing, announced today results for fourth quarter and fiscal year ended December 31, 2005.
For fiscal 2005, net revenues were $86.7 million as compared to $103.3 million in 2004. Net income for the year was $5.1 million or $0.37 per diluted share, as compared to $12.7 million, or $0.89 per diluted share in 2004. The diluted weighted average common shares outstanding for the year ended December 31, 2005 was 13,536,830 shares compared to 14,335,343 shares in the prior year.
Net revenues in the fourth quarter ended December 31, 2005 were $26.9 million, as compared to $34.1 million for the same period in 2004. Fourth quarter net income was $0.5 million, or $0.04 per diluted share, as compared to $5.0 million, or $0.36 per diluted share, for the same period in 2004.
Alfred R. Kahn, 4Kids Entertainment Chairman and Chief Executive Officer, said: "We had very disappointing results in 2005 with licensing revenues off 25% compared to 2004. Revenues from our top two properties, Yu-Gi-Oh!® and Teenage Mutant Ninja Turtles®, declined and were only partially offset by increased revenues from our Cabbage Patch Kids® and Winx Club(TM) properties.
In addition, results were negatively impacted by a lack of a major theatrical release in 2005. Our fourth quarter 2005 licensing revenues were significantly lower than our expectations as many of our newer properties failed to perform as hoped at retail.
"We are determined to improve the Company's performance going forward and we will be focused on adding new sources of revenue and controlling expenses," Kahn said.
On March 14, 2006, 4Kids extended its multi-year agreement with FOX to broadcast 4Kids TV(TM) on the FOX network for the 2006-2007 and 2007-2008 broadcast seasons. The terms of the two-year extension are discussed more fully in a Form 8-K filed this morning.
The Company also announced that there will be a press event at 12 p.m. (ET) today at which 4Kids and Microsoft will announce the identity of the exciting new mass appeal entertainment property, which is in development. It is expected that this new property will begin contributing to 4Kids' revenues by the fourth quarter.
In commenting on these announcements, Kahn said, "We believe that our new FOX deal, our Microsoft alliance and our balance sheet with cash and investments of $113.5 million and no debt at December 31, 2005, positions 4Kids well for the future. As a leading provider of children's programming to broadcast television, we feel that we are in a unique position to attract content owners and strengthen our existing property portfolio. We will maintain our focus on acquiring new content that drives licensing revenues and television ratings."
posted at 1:05 p.m.
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