KIDE may be a big mover once the news gets out...
Very small float and volume, but excellent financials, growth, and REAL INCOME, not to mention a very hot product...
DISTRIBUTION: Business Editors
LENGTH: 2137 words
HEADLINE: 4Kids Entertainment, Inc. Reports Third Quarter Results; 1998 Earnings Forecast Increased to $ 0.70 Per Share
DATELINE: NEW YORK
BODY:
Nov. 13, 1998--New York 4Kids Entertainment, Inc. (NASDAQ: KIDE) reported today its results of operations for the third quarter
and nine months which ended on September 30, 1998.
Third quarter net revenues increased 97% to $ 2,756,488 compared to $ 1,400,123 reported for the same period last year. For the quarter,
the Company reported net income of $ 406,155 or $ 0.11 cents per share on a fully diluted basis, compared to last years third quarter loss
of $ (98,733) or $ (0.03) cents per share.
For the nine-month period net revenues rose 142% to $ 7,357,997 compared to $ 3,034,602 for the same period in 1997. Net income for the
nine month period was $ 799,874 or $ 0.22 cents per share on a fully diluted basis, compared to a loss of $ (1,309,688) or $ (0.42) cents per
share for the year ago period.
"We expect record sales for 1998 with earnings to exceed $ 0.70 cents per share," said Al Kahn, Chairman and CEO. He further noted
this was an increase in the Company's previously announced projection of $ 0.50 cents per share.
The results for the quarter and nine months were positively impacted by continued strength in licensing. The Pokemon property continues
to draw enormous attention with the top-rated syndicated cartoon show, produced by the Company's 4Kids Productions subsidiary, and
distributed by the Company's Summit Media subsidiary. The Pokemon series is the number one children's strip in the country, beating all
Fox Kids and Kids WB strips for the first week of November sweeps. In addition to the top-rated cartoon series, the popularity of
Pokemon is growing in anticipation of the November 17th launch of toys and merchandise by Hasbro; a massive fourth quarter promotional
campaign with KFC; a national sweepstakes with a grand prizes including Volkswagen Beetles; a strategy card game from Wizards of the
Coast; home video and more.
Additionally, the Company continues to expand its broad-based licensing program with World Championship Wrestling (WCW), a division
of Turner Sports and Time Warner. The brand has over 125 licensees including Starter, sports apparel leader; Capital One, one of the
largest providers of MasterCard and Visa worldwide; Hallmark Cards; Electronic Arts for video games; and Toy Biz as Master Toy
Licensee. The enormous popularity of the WCW is made up of 32 million fans tuning in every week to watch the 13 hours of programming;
a web site generating 10 million page impressions a month; and 12 pay-per-view specials a year reaching over 300,000 households per
show. Retail powerhouses such as Wal-Mart, Kmart, Toys R Us, and Target, as well as sports specialty retailers all across the country will
carry the quality WCW consumer products this holiday season.
In addition to Pokemon and WCW, the Company continues to expand its merchandise licensing program for the revolutionary Nintendo
N64 video game system and its game characters, including Super Mario, Donkey Kong and the much anticipated holiday release of The
Legend of Zelda, Ocarina of Time. The Company is the exclusive merchandise licensing agent representing Nintendo characters
worldwide, except in Japan.
In addition to licensing, the Company's Summit Media distributes six hours of nationally syndicated television programming weekly,
including the top-rated cartoon show, Pokemon, War Planets, Voltron, The Third Dimension and RoboCop. Additionally, the Company's
Summit Media unit continues to rank among the largest US children's market media buyers, placing over $ 100 million of advertising on
behalf of its clients in 1998.
Headquartered in New York, 4Kids Entertainment, Inc. (NASDAQ: KIDE) 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, involved in the production of programming for television; and Summit Media, involved in domestic and
international television distribution, media buying and planning.
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's response to the Company's properties, actual results or
outcomes may differ materially from any such forward looking statements. -0-
4Kids Entertainment, Inc.
Consolidated Statement of Operations
For the Third Quarter and Nine Months Ended September 30, 1998 and 1997
THREE MONTHS ENDED SEPTEMBER 30:
1998 1997
REVENUES $ 2,756,488 $ 1,400,123
EXPENSES $ 2,125,601 $ 1,584,968
NET INCOME (LOSS) $ 406,155 $ (98,733)
PER SHARE AMOUNTS
BASIC EARNINGS (LOSS)
PER SHARE $ 0.13 $ (0.03)
DILUTED EARNINGS (LOSS)
PER SHARE $ 0.11 $ (0.03)
NINE MONTHS ENDED SEPTEMBER 30:
1998 1997
REVENUES $ 7,357,997 $ 3,034,602
EXPENSES $ 6,179,683 $ 5,390,094
NET LOSS $ 799,874 $ (1,309,688)
LOSS PER SHARE $ 0.27 $ (0.44)
DILUTED EARNINGS (LOSS)
PER SHARE $ 0.22 $ (0.44)
-0-
OTHER NEWS
HEADLINE: Katie Couric and Matt Lauer Beware! Pokemon Monsters are Close to Conquering the Number One Morning Time Slot in
the New York Area!
DATELINE: NEW YORK
BODY:
Oct. 29, 1998--
Syndicated Children's Series Sweeps Competition with a 6.9 Household Rating
New York kids are waking up a little earlier in the morning these days to make sure they don't miss a second of the hottest syndicated
animated series on the air -- Pokemon, a cartoon which achieved a 6.9 rating Tuesday in the New York market, beating out The Today
Show, Good Morning America and CBS, This Morning.
Based on the enormously successful Japanese cartoon series and Nintendo Game Boy game, Pokemon airs at 7:00 AM on WPIX (WB),
Channel 11 in New York City every weekday.
Based on the most recent NSS, week ending 10/18/98, Pokemon rose to become the No. 1 strip with kids 6-11 and teens 12-17. Pokemon
ranked No. 2 with children age 2-11 among all syndicated children's programs. Pokemon airs five days a week on a total of 115 stations,
representing 83 percent of American households(a).
"This Pokemon phenomenon is spreading like wildfire with all the kids, from young kids to teens, both boys and girls," said Tom Kenney,
President of The Summit Media Group, a 4Kids Entertainment company, syndicators of Pokemon. "Pokemon offers something for all its
viewers. It has an emotional storyline, every episode ending with a moral, as well as a competitive edge filled with action. Teenagers love it
too because they are usually the first age group to find out about the newest and hottest video games. They tune in because the Pokemon
storyline gives the viewer clues on how to play the Pokemon Game Boy game."
Early signs show that this could mirror the Pokemon phenomenon that stormed Japan to the tune of over $ 4 billion in sales in 18 months.
The 150 Pokemon creatures are now bopping to the tune of Sinatra's famous New York, New York lyric, "If I can make it there, I'll make
it anywhere!" So Katie and Matt, you better be watching over your shoulders, anticipating the sneak of attack of Pokemon conquering the
entire country.
Headquartered in New York, 4Kids Entertainment, Inc. (NASDAQ: KIDE) is a vertically integrated entertainment company whose
wholly-owned subsidiaries include: 4Kids Productions, involved in the production of programming for television; Summit Media, involved in
domestic and international television distribution and media buying and planning; and Leisure Concepts, Inc., a leader in domestic and
international merchandise licensing and product development.
(a) Source: Neilsen New York NSI overnight 10/27/98.
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