Kushner-Locke Anticipates Fiscal 1997 Net Loss (approx. $4 million).
Company Press release cut & pasted from Yahoo Finance Quotes News.
Here is the URL:
biz.yahoo.com
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Thursday December 18, 7:03 am Eastern Time
Company Press Release
Kushner-Locke Anticipates Fiscal 1997 Net Loss
LOS ANGELES--(BUSINESS WIRE)--Dec. 18, 1997--The Kushner-Locke Co. (Nasdaq/NNM:KLOC - news) Thursday
announced that it expects to report a net loss of approximately $4 million for its 1997 fiscal year ended Sept. 30, 1997, on
revenues of approximately $56 million.
This compares with fiscal 1996 results of approximately $730,000 net income, on revenues of approximately $80 million.
Actual results for fiscal 1997 will be released within the next two weeks.
''The expected 1997 loss is largely a result of certain non-recurring adjustments, including a reduction in the carrying value of
library product and an increase in the allowance for doubtful accounts. These total approximately $2 million,'' stated president
and COO Bruce Lilliston.
''There is also an additional write-down of approximately $1 million on a recently discontinued network series, 'Gun,''' added
Lilliston. ''The balance of the expected fiscal 1997 loss can be attributed to the fact that our product mix during the fourth
quarter consisted largely of recently introduced episodic television product with lower-than-historical operating margins.
''We expect our fiscal 1998 product mix to return to normal profitable operating margins.''
''We are optimistic about our fiscal 1998 slate,'' stated co-chairman Donald Kushner. ''On the television side, our new ABC
primetime series 'Cracker' was recently expanded to a 22-episode order. We are also producing the series 'Mike Hammer' for
the syndication market and 'Mowgli: The New Adventures of The Jungle Book' for the FOX network.
''The total production commitments payable to Kushner-Locke or its joint venture partners for these three series, including
both completed and scheduled episodes deliverable in fiscal years 1997-98, exceed $50 million. We are also associated with
Franklin/Waterman Worldwide in producing the series 'Born Free' for Columbia.
''In addition,'' added co-chairman Peter Locke, ''we have released or expect to release or deliver over 10 feature films, with
budgets ranging from $2 to $18 million per picture, during fiscal 1998. These include 'Beowulf,' where we are partnered with
Capitol Films of London and producer Larry Kasanoff in producing a picture starring Christopher Lambert, and 'One Man's
Hero,' starring Tom Berenger which will be released domestically by MGM.
''Our scheduled product mix for the current fiscal year is larger and more diversified than we have had in the past and, we
believe, consistent with the types of product demanded in today's competitive worldwide marketplace.''
The Kushner-Locke Co. is a leading independent producer and distributor of feature films, direct-to-video films, television
series, made for television movies, miniseries and animated programming for theaters, network and cable television. Visit the
company's Web site at www.kushner-locke.com .
Except for the historical information in this news release, this news release includes forward-looking statements that involve
risks and uncertainties, including but not limited to the fact that actual results for the fourth quarter are subject to completion of
the company's annual audit, future fluctuations in results, the management of growth, dependence on a limited number of
continuing and new projects, fluctuations in ratings and advertising rates, competition and other risks detailed from time to time
in the company's Securities and Exchange Commission filings. Actual results may differ materially from such information set
forth.
Contact:
The Kushner-Locke Co., Los Angeles
Caroline A. Chartier, 310/445-1111
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Also from Yahoo, here is a shorter version of the news:
biz.yahoo.com
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Thursday December 18, 11:48 am Eastern Time
Kushner-Locke Sees Net Loss for Fiscal 1997
KUSHNER-LOCKE CO. Sees Net Loss for Fiscal 1997
Dec. 18, 1997, Kushner-Locke Co. (Nasdaq:KLOC - news) said it expects to report a net loss of about $4,000,000 for
fiscal 1997 on revenues of about $56,000,000.
For fiscal 1996, the company reported net income of $730,000, or $0.02 per share, on revenues of $80,157,000.
KLOC said the expected 1997 loss is ''largely'' a result of certain non-recurring adjustments, including a reduction in the
carrying value of library product and an increase in the allowance for doubtful accounts, which total about $2,000,000.
The company said there is also an additional write-down of approximately $1,000,000 on a recently discontinued network
series called ''Gun. '' The balance of the expected loss for fiscal 1997, the company said, can be attributed to the fact that its
product mix during the fourth quarter consisted largely of recently introduced episodic television product with
''lower-than-historical operating margins.'' |
