KUSHNER-LOCKE REPORTS FISCAL 1996 RESULTS; REVENUES UP
292% TO RECORD $80,157,000; OPERATING PROFIT $5,914,000
LOS ANGELES--(BUSINESS WIRE)--Dec. 31, 1996--The Kushner-Locke Company
(Nasdaq/NNM:KLOC), a leading independent entertainment company, today reported record revenues and an operating profit of $5.9 million for the fiscal year ended Sept. 30, 1996.
Driven by substantial gains in both feature film and television production, operating revenues in fiscal 1996 rose 292% to 80,157,000, an increase of $59,750,000 from $20,407,000 in fiscal 1995. The increase reflected substantial gains in both feature films and television, as well as continued exploitation of the company's growing film and television library both domestically and internationally. The company recognized approximately $17,800,000 from 16 feature films in fiscal 1996 including Freeway executive produced by Oliver Stone, The
Last Time I Committed Suicide starring Keanu Reeves, The Whole Wide World currently in theatrical release by Sony Classics and the HBO premiere movie Serpent's Lair. An additional approximate $26,300,000 was recognized from the initial release of the feature film. The Adventures of Pinocchio. The company also recognized approximately $22,800,000 from the delivery and/or availability of four network movies, a network mini-series and the pilot for the company's new mid-season series, The Gun, for the ABC Television Network, which is executive produced by Robert Altman (The Player, M*A*S*H), who also directed the first episode.
For the 1996 fiscal year, the company reported net earnings of $730,000, or $.02 per share, compared to a net loss of $3,975,000 or (.13) per share in the 1995 fiscal year. Weighted number of common shares outstanding for comparable periods were 40,013,000 in fiscal
1996 and 31,713,000 in fiscal 1995. The earnings in fiscal 1996 eflected the substantial increase in feature film and television deliveries, partially offset by one-time charges totalling $1,526,000 (.04/share). Included in this amount are charges in the amount of 943,000 related to the issuance of bonus shares and warrants in connection with a bridge financing and the extension of the company's prior credit facility. In addition, the company took a charge of
$500,000 in the fourth quarter as a net adjustment of the carrying value of the company's library. In fiscal 1996, the company replaced a $15,000,000 revolving line of credit from Imperial Bank with a $40,000,000 revolving line of credit from Chemical Bank/Chase
Securities. Peter Locke and Donald Kushner, the company's co-chairmen, stated, "We are proud to report record revenues of over $80,000,000, which are $60,000,000 ahead of the previous fiscal year and $30,000,000 more than the company's previous record. Our diversification and expansion are now paying dividends."
Peter Locke added, "We are looking forward to our strong slate for fiscal 1997, including our prime time ABC drama The Gun, which is executive produced by Robert Altman, one of the world's finest feature film directors." The Kushner-Locke Company is a leading independent
entertainment company primarily engaged in the development, production and distribution of television programming and feature films.
Visit our website at www.kushner-locke.com .
The Kushner-Locke Company
Fiscal Year Fiscal Year
ended ended
Sept. 30, Sept. 30,
1996 1995 Change
Revenue $80,157,000 $20,407,000 $59,750,000
Cost of revenue (70,648,000) (17,404,000) (53,244,000)
Selling, general
& administrative expenses (3,595,000) (3,838,000) 243,000
Operating profit (loss) 5,914,000 (835,000) 6,749,000
Interest income 198,000 300,000 (102,000)
Interest expense (4,027,000) (3,409,000) (618,000)
Bridge loan interest expense (943,000) --- (943,000)
Earnings before taxes &
extraordinary item 1,142,000 (3,944,000) 5,086,000
Income taxes (47,000) (31,000) (16,000)
Earnings before extraordinary
item 1,095,000 (3,975,000) 5,070,000
Extraordinary item (365,000) --- (365,000)
Net earnings/loss $ 730,000 $(3,975,000) $4,705,000
Earnings (loss) per share:
Before extraordinary item $ 0.03 $ (0.13) $ 0.16
Extraordinary item (0.01) -- (0.01)
Net $ 0.02 $ (0.13) $ 0.14
Weighted average
shares outstanding 40,013,000 31,713,000 8,300,000
Copyright 1996, Business Wire |
