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

To: OmertaSoldier who wrote (519)	5/7/2005 12:00:11 AM
From: OmertaSoldier	Read Replies (1) \| Respond to of 540

AP Marvel Posts Lower 1Q Earnings Thursday April 28, 7:06 am ET Marvel Posts Lower 1Q Profit on Stan Lee Settlement, Signs Deal With Paramount NEW YORK (AP) -- Marvel Enterprises Inc. said Thursday that first-quarter earnings decreased 11.5 percent from last year, and said it posted a $10 million charge during the period for the resolution of all past and future payments claimed by Spider-Man creator Stan Lee. ADVERTISEMENT Net income fell to $27.7 million, or 25 cents per share, from $31.3 million, or 27 cents per share, a year ago. The latest quarter includes a charge of 6 cents per share related to the Stan Lee settlement. Total sales declined to $104.1 million from $122.3 million last year. Analysts surveyed by Thomson Financial were looking for the company to post earnings of 27 cents per share on sales of $95 million in the latest period. Marvel's publishing segment sales rose 14 percent to $22.4 million due to strength in core comic and trade paperback sales. Marvel achieved increases of about 14 percent in both the number of comic book titles shipped and in the average circulation per title. Marvel said toy segment sales decreased 81 percent to $10.5 million from the prior-year period primarily due to a transition from Marvel-produced action figures and accessories based on the Lord of The Rings franchise and Spider-Man 2 movie in 2004, to lines produced by its master toy licensee in 2005. Spider-Man 2 movie toy sales were $1.9 million in the latest quarter, down sharply from $44.8 million last year. Looking ahead, Marvel is maintaining 2005 profit guidance of $1.07 to $1.12 per share on sales of $370 million to $390 million. Analysts are forecasting earnings of $1.10 per share on sales of $389.3 million. Separately, Marvel and Viacom Inc.'s Paramount Pictures have signed an agreement under which Paramount will distribute a slate of feature films to be produced by Marvel. Marvel also announced a new 7-year, $525 million financing facility to be provided by Merrill Lynch Commercial Finance Corp. that will allow the company to produce its own slate of feature films based on its comic book characters. Marvel said it expects that producing its own slate of films will permit greater participation in all revenue streams related to its films, and the opportunity to begin building its own film library. The finance structure will also allow Marvel to receive a producer fee for each film and retain all merchandising revenue. Paramount will receive a distribution fee for each film it distributes and will retain worldwide distribution rights in sequels to the films covered under the agreement. The distribution agreement between Paramount and Marvel specifies that Marvel may deliver up to 10 films to Paramount over an eight-year period, with the first titles including "Captain America" and "Nick Fury." Marvel's budgets for each film may range from $45 million to $180 million. The first picture is expected to be released in 2007 or 2008. Marvel said Paramount will not contribute to production costs, although it will provide advance funding of promotion and advertising for the films.