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Non-Tech : Marvel Enterprises (NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: stockid who wrote (32)	9/24/2002 10:49:47 AM
From: VegasMan	Read Replies (1) \| Respond to of 540

Good news out of MVL camp. Marvel Raises Q3 and FY 2002 Guidance Full-Year EBITDA Raised to $68-$73 Million Tuesday September 24, 10:11 am ET NEW YORK--(BUSINESS WIRE)--Sept. 24, 2002--Marvel Enterprises, Inc. (NYSE: MVL - News) today raised its revenue and EBITDA guidance for the fiscal 2002 third quarter and full year, as detailed in the table below. F. Peter Cuneo, Marvel's President & CEO, commented, "Marvel's increased financial guidance for 2002 stems from the fact that all of our business segments are meeting or exceeding previous expectations. In addition, the recently announced agreement with Universal Interactive to develop an online massive multi-player persistent universe game was unplanned and had not been reflected in our earlier guidance for the third quarter or for the year. The agreement is a long-term partnership and includes a substantial up-front cash payment as well as minimum guarantees. The deal is primarily responsible for the increase in EBITDA guidance for the quarter and the year. The present value of the minimum guarantees will be recorded as revenue in the third quarter in accordance with the Company's normal accounting practices." As summarized in the table below, Marvel has raised its third quarter sales guidance by $18 million to a range of $63 million to $68 million, and it has raised its full-year sales guidance by $20 million to a range of $235 million to $245 million. Marvel's EBITDA guidance for the third quarter and full-year periods have been raised by $8 million to a range of $20 million to $22 million for the third quarter and to a range of $68 million to $73 million for 2002. Management continues to believe that ongoing business progress strongly suggests that results will be in the high end of the EBITDA ranges. Marvel's updated guidance excludes one-time items including the impact of FAS 142. Reflecting the improved operating results as well as the impact of Marvel's pre-payment of $10 million of its HSBC loan, Marvel's net income guidance for Q3 and FY 2002 was modesty improved. Marvel's pre-payment of $10 million of the HSBC loan will result in accelerated amortization of loan costs of approximately $4 million in Q3. This is a non-cash charge that will be reflected within interest expense. Guidance Actual (in millions New Previous New Previous - except per Q3 Q3 FY FY Q3 FY share 2002 2002 2002 2002 2001 2001 amounts) Total revenues $63-$68 $45-$50 $235-$245 $215-$225 $43.0 $181.2 EBITDA $20-$22 $12-$14 $68-$73 $60-$65 $7.2 $30.9 Net income (loss) (1)(3) $3-$5 $3-$4 $18-$21 $18-$20 ($1.1) $5.3 Net income (loss) attributable to common stock (1)(2)(3) ($1)-$1 ($1)-$0 $2-$5 $2-$4 ($5.1)($10.8) Net income (loss) attributable to common stock per share (1)(2)(3) ($0.02)- ($0.02)- $0.05- $0.05- $0.02 $0.00 $0.12 $0.10 ($0.15)($0.31) (see accompanying footnotes) 1. FY 2002 net income and net income attributable to common stock do not reflect an after-tax, non-cash FAS 142 impairment charge of $4.6 million recorded in the first quarter of 2002. Including the impairment charge, full year 2002 guidance range for net income would be $13.4 million to $16.4 million and the guidance range for net income (loss) attributable to common stock would be ($3.6 million) to $0.4 million, or ($0.08) to $0.01 per share. 2. Net income attributable to common stock assumes preferred dividends of approximately $4.0 million per quarter. 3. Q3 and full year 2001 net income (loss) and net income (loss) attributable to common stock include one-time gains of approximately $13.6 million and $32.7 million, respectively, for the retirement of senior notes at a discount to face value. In addition, Marvel continues to expect an increase in total EBITDA, net income and net income per share in 2003, as compared to 2002. Key catalysts include expected revenues related to Marvel's royalties/participations from the Daredevil, X-Men 2 and The Hulk feature films, continued revenues related to Spider-Man: The Movie; an unprecedented line-up of video games, including Blade, Marvel vs. Streetfighter, The Hulk, Daredevil, Wolverine, and The Punisher; continued strong growth in non-movie character licensing; additional revenues resulting from current licensees exceeding their minimum guarantees; continued growth in the publishing division; an expected additional advance payment for the Spider-Man movie sequel; and the benefit of licensed toy offerings including Spider-Man, The Hulk & X-Men as well as Marvel's in-house toy line for the Lord of the Rings action figures.