4Kids Entertainment Inc. Reports First Quarter Results
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Monday May 17, 4:28 pm Eastern Time
Company Press Release
4Kids Entertainment Inc. Reports First Quarter Results
NEW YORK--(BUSINESS WIRE)--May 17, 1999--4Kids Entertainment, Inc. (NASDAQ: KIDE - news), reported today its results of operations for the first quarter which ended on March 31, 1999.
First quarter net revenues increased 35 percent to $3,251,941 compared to $2,403,378 reported for the same period last year. For the quarter, the Company reported net income of $744,630 or $.13 cents per share on a fully diluted basis, compared to last year's first quarter income of $278,303 or $0.5 cents per share adjusted for the 3 for 2 stock split announced by the Company on March 29, 1999.
Alfred R. Kahn, Chairman and Chief Executive Officer, commented, ''We are pleased with the results for the first quarter of 1999, particularly in comparison to the strong first quarter of 1998, which included significant revenue related to The Electronic Arts Video Game License for World Championship Wrestling. The results for the first quarter of 1999 primarily reflect the success from the licensing of World Championship Wrestling and Pokemon properties. During the first quarter, royalties reported by Toy Biz, the master toy licensee for WCW, accelerated as more product shipped and sold through. Additionally, royalties reported from the Pokemon strategy card game licensed to Wizards of the Coast substantially exceeded initial expectations and continue to grow.''
The WCW licensing program is comprised of almost 200 domestic licensees including; Electronic Arts for video games; Toy Biz as Master Toy Licensee; and the Nitro Grill, a WCW-themed restaurant opening May 22, 1999 in the Excalibur Hotel, Las Vegas.
The Company has exclusive representation rights for Pokemon for merchandise licensing, movie and television distribution outside of Asia. The Company's Summit Media subsidiary licensed 64 episodes of the Pokemon television series to the Kids! WB network in January 1999. The animated television series was introduced in September 1998. The show, which is produced by the Company's 4Kids Productions subsidiary, currently airs in syndication five days per week and on Saturdays as one of the anchors of the Kids' WB Saturday morning lineup. In September 1999, Kids' WB will begin airing Pokemon eleven times a week. Since Pokemon joined the network in February 1999, Kids' WB has experienced its highest ratings. Pokemon has become the No. 1 rated kids show in the country in both syndication and network.
The Company continues to expand its merchandise licensing program for the Nintendo N64 and Game Boy video game systems and their game characters, including Super Mario, Donkey Kong and the blockbuster hit Legend of Zelda, Ocarina of Time. The Company is the exclusive merchandise licensing agent representing Nintendo characters worldwide, except in Japan. The Company also represents the merchandise licensing rights for Comedy Central, The Sierra Club, Bela Karolyi and CBS' Martial Law.
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.
Headquartered in New York, 4Kids Entertainment, Inc. (NASDAQ: KIDE - news) 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's response to the Company's properties, actual results or outcomes may differ materially from any such forward looking statements.
4Kids Entertainment, Inc.
Summary Financial Information
For the Three Months Ended March 31, 1999 and 1998
THREE MONTHS ENDED MARCH 31:
1999: 1998:
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REVENUES $3,251,941 $2,403,378
EXPENSES $2,090,886 $1,991,533
NET INCOME $ 744,630 $ 278,303
PER SHARE AMOUNTS
BASIC EARNINGS PER SHARE $ .16 $ .06
DILUTED EARNINGS PER SHARE $ .13 $ .05
WEIGHTED AVG. SHARES OUTSTANDING
BASIC 4,770,213 4,417,247
DILUTED 5,679,156 5,105,912
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Contact:
4Kids Entertainment, Inc., New York
Joseph P. Garrity
Executive Vice President & CFO
212/758-7666
or
Public Relations:
Janna Silverglade
Director of Corporate Communication
212/758-7666
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