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Monday November 15, 2:54 pm Eastern Time
Company Press Release
4Kids Entertainment Reports Record Third Quarter Results
NEW YORK--(BUSINESS WIRE)--November 15, 1999--4Kids Entertainment, Inc. (Nasdaq:KIDE - news), today reported record results of operations for the third quarter and nine months ended September 30, 1999.
Third quarter net revenues increased 511% to $16,833,357 compared to $2,756,488 reported for the same period last year. For the quarter, the Company reported net income of $6,830,139 or $. 54 cents per share on a fully diluted basis, compared to last year's third quarter income of $406,155 or $.04 cents per share.
For the nine-month period net revenues rose 248% to $25,592,252 compared to $7,357,997 for the same period in 1998. Net income for the nine month period was $9,502,906 or $.78 cents per share on a fully diluted basis, compared to net income of $799,874 or $.07 per share for the prior year period.
1998 per share amounts have been restated to reflect the three for two stock split in March 1999 and the two for one stock split in September 1999.
Al Kahn, Chairman and Chief Executive Officer, commented, ``Our record results for the third quarter of 1999 primarily reflect the ongoing exceptional growth in the Nintendo Pokemon licensing program. Royalties reported from Pokemon licensees have exceeded expectations. We also anticipate a strong fourth quarter based on holiday sales of Nintendo, Pokemon and WCW, licensed merchandise.'
The Warner Bros US theatrical release of ``Pokemon, The First Pokemon Movie' on November 10 opened at No. 1 with an estimated $32.4 million for the Friday-Sunday period, said Warner Bros. distribution president Dan Fellman.
Since its Wednesday opening, the film has grossed $52.1 million, setting a new record for a five- day opening in November, he added.
The Pokemon television program has begun its international release in Europe and Latin America. Early indications from those markets show very promising ratings.
Following the international television introduction has been the international debut of the Nintendo Pokemon Video Games, Hasbro Toys and the Wizards of the Coast cards. Many international markets are reporting enthusiastic consumer response to licensed merchandise.
Also contributing to record third quarter results is the continued success of World Championship Wrestling ``WCW'. Electronic Arts released its much anticipated WCW video game ``WCW Mayhem' and the Toy Biz ``Tuff Talkers' is on top ten lists across the country for ``must have' holiday toys.
The Company further announced the resignation of Mr. Gerald Rissman from the Board of Directors.
``I would like to thank Gerry whose guidance and advice during his term on the Board has helped us to achieve our success today', stated Al Kahn Chairman and Chief Executive Officer. ``We wish him the best in his future endeavors.'
The Company also announced the appointment of Mr. Joel Cohen to the Board of Director seat vacated by Mr. Rissman. Mr. Cohen is a Managing Director of JP Morgan & Company with direct responsibility for its Private Client Group. Mr. Cohen started with the firm in 1973 and ran such divisions as Technology and Operations, European Institutional Sales, Human Resources Training, Futures and Options, Treasurer's Division, Operational Services Department and the National Banking Division.
``We look forward to working with Joel Cohen, who will bring new insights, experience and talent to our Company, commented Mr. Kahn, Chairman and Chief Executive Officer.
The Company has exclusive representation for Nintendo's Pokemon for merchandise licensing, movie and television distribution outside of Asia. The Company also has exclusive licensing rights outside Japan for the Nintendo 64 and Game Boy video game systems and their game characters, including Super Mario, Donkey Kong and Zelda. In addition the Company has exclusive worldwide rights for the Turner Time Warner property World Championship Wrestling.
Headquartered in New York, 4Kids Entertainment, Inc. is a vertically integrated entertainment company whose wholly-owned subsidiaries include: Leisure Concepts, Inc., a leader in domestic and international merchandise licensing and product development; 4Kids Productions, a television, film and home video production company; and Summit Media, a domestic and international television distribution, media buying and planning company.
This press release contains forward-looking statements. Due to the fact that the Company faces competition from toy companies, motion picture studios and other licensing companies, and the uncertainty of public response to the Company's properties, actual results or outcomes may differ materially from any such forward looking statements.
4Kids Entertainment, Inc.
Consolidated Statement of Income
For the third quarter and nine months ended September 30,1999 and 1998
THREE MONTHS ENDED SEPTEMBER 30
1999 1998
REVENUES $16,833,357 $ 2,756,488
EXPENSES $ 5,146,772 $ 2,125,601
NET INCOME $ 6,830,139 $ 406,155
NET INCOME PER SHARE (1)
BASIC EARNINGS PER SHARE $ 0.61 $ 0.04
DILUTED EARNINGS PER SHARE $ 0.54 $ 0.04
WEIGHTED AVG. SHARES OUTSTANDING
BASIC $11,148,828 $ 9,092,805
DILUTED $12,684,357 $11,546,070
NINE MONTHS ENDED SEPTEMBER 30
1999 1998
REVENUES $25,592,252 $ 7,357,997
EXPENSES $ 9,536,277 $ 6,179,683
NET INCOME $ 9,502,906 $ 799,874
NET INCOME PER SHARE(1)
BASIC EARNINGS PER SHARE $ 0.91 $ 0.09
DILUTED EARNINGS $ 0.78 $ 0.07
WEIGHTED AVG. SHARES
OUTSTANDING
BASIC 10,421,094 8,926,953
DILUTED 12,119,254 10,963,716
(1) 1998 per share amounts have been restated to reflect the three for two stock split in March 1999 and the two for one stock split in September 1999
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Contact:
4Kids Entertainment, Inc., New York
Joseph P. Garrity, Executive Vice President COO & CFO
212/758-7666
or
Carlin C. West, Senior Vice President,
Corporate Communication
212/758-7666 |
