KIDO - Kideo Productions, Inc. Reports Fourth Quarter and Record Ye
Kideo Productions, Inc. Reports Fourth Quarter and Record Year-End Revenue
Results
Business Editors
NEW YORK--(BUSINESS WIRE)--Oct. 29, 1999--
- Revenues surge 138% over prior fiscal year
- Gross profit increases to 55% from 14% in prior fiscal year
Kideo Productions, Inc. (OTCBB: KIDO; KIDEO) today announced
results for the 1999 fourth quarter and fiscal year ended July 31,
1999.
Sales for the fiscal year ended July 31, 1999 increased by
$2,808,000 or 138% to $4,842,000 from $2,033,000 in the 1998 fiscal
year. This increase is attributed to the launch of licensed
photo-personalized products, which were first introduced in the fourth
quarter of fiscal 1998. Sales increased by over 100% in each of
Kideo's personalized product categories.
The Company's continued improvements in inventory control and
manufacturing processes, combined with an increase in production
volume, lead to gross profits for fiscal 1999 of 55% of sales or
$2,641,000 as compared to 14% of sales or $283,000 for the prior
fiscal year.
Net loss for the fiscal year ended July 31, 1999 decreased by 42%
to $1,576,000 or $0.42 per basic and diluted share as compared to
$2,730,000 or $0.76 per basic and diluted share for the prior fiscal
year.
Fourth quarter revenues for the period ended July 31, 1999
decreased to $835,000 from $1,211,000 in the quarter ended July 31,
1998. Net loss for the same period was $784,000 or $0.21 per basic and
diluted share and $625,000 or $0.17 per basic and diluted share,
respectively. These results are attributable to the highly successful
launch of licensed products, in the fourth quarter of 1998, which lead
to higher than expected revenues in that quarter.
Kideo's President and Chairman, Mr. Richard Bulman commented,
"Very strong demand for our licensed products has lead us to record
revenue levels in fiscal 1999. We also improved operating efficiencies
to significantly increase gross margins."
"In the coming year, we anticipate licensing and marketing
additional popular characters to fuel further growth."
"At this time, Kideo is ideally positioned to capitalize on
e-commerce opportunities as a result of advancements in digital
photography. Within the past few quarters, we have forged an alliance
with Kodak's PhotoNet Online and launched an enhanced version of
Kideo.com."
Investors interested in receiving the latest news from Kideo may
register for our email list by mailing us at kideo@visioncc.net.
About Kideo
Kideo.com is the Internet's leading source of photo-personalized
children's products. Kideo's full product line is available online at
www.kideo.com, as well as through numerous children's, toy and retail
Internet sites. In addition to Kideo.com and selected retail Internet
sites, Kideo's products are available through major toy, gift and
general merchandise catalogs and through direct response television,
radio, print advertising, direct mail, and The Kideo Catalog. Kideo
products can also be ordered by calling the toll-free Kideo order line
at 1-888-88KIDEO.
This release is covered under the "Safe Harbor" Statement under
the Private Securities Litigation Reform Act of 1995: Certain
information includes forward looking statements that involve a number
of known and unknown risks and uncertainties. The Company's actual
results, performance or achievements may differ materially from any
future results, performance, or achievement expressed or implied in
any forward looking statement.
*T
KIDEO PRODUCTIONS, INC,
SUMMARY FINANCIAL INFORMATION
($000's except share and per share amounts)
Three Three
Year Year Months Months
Ended Ended Ended Ended
July 31, July 31, July 31, July 31,
1999 1998 1999 1998
---------- ---------- ---------- ----------
Sales $ 4,842 $ 2,033 $ 835 $ 1,211
Cost of sales 2,201 1,750 370 918
---------- ---------- ---------- ----------
Gross profit 2,641 283 465 293
Selling expenses 1,725 1,318 261 433
General & administrative
expenses 1,478 1,332 426 330
---------- ---------- ---------- ----------
Loss from operations (562) (2,367) (222) (470)
Other (expense), net (1,014) (363) (562) (155)
---------- ---------- ---------- ----------
Net (loss):
Basic and Diluted $ (1,576) $ (2,730) $ (784) $ (625)
========== ========== ========== ==========
Net (loss) per share:
Basic and Diluted $ (0.42) $ (0.76) $ (0.21) $ (0.17)
========== ========== ========== ==========
Weighted average
shares 3,775,866 3,605,647 3,775,886 3,708,760
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, 1999 July 31, 1998
------------- -------------
ASSETS
Current Assets
Cash & equivalents $ 86 $ 82
Accounts receivable 112 92
Inventories 49 53
Prepaid expenses and other current assets 132 169
-------- --------
Total current assets 379 396
Noncurrent assets 498 675
-------- --------
Total assets $ 877 $ 1,071
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 3,230 $ 2,409
Capitalized leases long term 4 10
-------- --------
Total liabilities 3,234 2,419
Shareholders' equity (deficiency) -2,357 -1,348
-------- --------
Total liabilities and shareholders' equity $ 877 $ 1,071
======== ========
*T
--30--lp/ny*
CONTACT: Kideo Productions, Inc.
Richard L. Bulman, President & CEO
Tel: 212/505-6605
Fax: 212/505-2142
rbulman@kideo.com
or
Vision Corporate Consulting
Billy Hayes, Account Executive
Tel: 212/509-4565
Fax: 212/509-9728
billy@visioncc.net |
