Kushner-Locke Posts $0.49 Full Year Loss (from Yahoo, Finance, News):
biz.yahoo.com
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The Kushner-Locke Co. Reports Fiscal 1997 Results
biz.yahoo.com
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Tuesday December 30, 7:01 am Eastern Time
Company Press Release
The Kushner-Locke Co. Reports Fiscal 1997 Results
LOS ANGELES--(BUSINESS WIRE)--Dec. 30, 1997--The Kushner-Locke Co. (Nasdaq/NNM: KLOC - news) Tuesday
reported revenues of $56,935,000 for its fiscal year ended Sept. 30, 1997, as compared with $80,157,000 for fiscal 1996.
The decrease was due primarily to a shift in product mix in 1997 to joint venture productions whose gross revenues are not
consolidated in the company's financial statements and to the absence of a higher-budget film release in fiscal 1997.
The company's joint ventures (in which the company has a 50-percent interest) generated $24,681,000 of 1997 revenues, of
which the company included $2,189,000 in its reported 1997 revenues. (In comparison, in 1996, the company's joint ventures,
in which the company had a 50-percent interest, generated $3,393,000 of revenues, of which the company included $226,000
in its reported revenues.)
Moreover, the company released ''The Adventures of Pinocchio'' in 1996 and no comparable higher-budget film in 1997. If
revenues generated by this single picture were excluded from both 1997 and 1996 results, the company's 1997 revenues
would have increased 2 percent from the preceding year.
As previously announced, the company reported a net loss in the fiscal 1997 year. This amounted to $4,369,000 or 49 cents
per share, compared wiht year-earlier net earnings of $730,000, or 11 cents per share. The 1997 net loss resulted primarily
from the company's fourth-quarter reduction of prior estimates of future revenues from certain film and television product and
an increased allowance for doubtful receivables which aggregated $2.6 million, plus start-up costs in connection with changes in
the company's distribution and sales personnel and reduced profit margins primarily on new television series released late in the
year.
Weighted average shares outstanding increased to 8,959,000 for the 1997 fiscal year, compared with 6,668,000 for the prior
period, giving retroactive effect to the company's one-for-six reverse stock spilt which became effective in September 1997.
The company's projects currently in production and slated for 1998 delivery include the films ''Beowulf'' starring Christopher
Lambert, ''Denial'' starring Jason Alexander and directed by Adam Rifkin, ''Minio'' starring Dolph Lundgren, ''Possums''
starring Mac Davis, ''Noose'' directed by Ted Demme, ''Bone Daddy'' starring Rutger Hauer, ''Girl'' starring Dominique
Swain, ''One Man's Hero'' starring Tom Berenger, ''Taxman'' starring Joe Pantoliano, ''Legion'' starring Parker Stevenson,
and three family films.
The projects ''Susan's Plan'' written and directed by John Landis, and ''Swing'' starring Lisa Stansfield, are expected to
commence principal photography in February 1998. In addition, the company has three television series currently airing or
scheduled to air: ''Mowgli: The New Adventures of The Jungle Book'' on Fox Kids Network, ''Hammer'' in first run
syndication, and ''Cracker'' on ABC.
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The Kushner-Locke Co.
Fiscal 1997 Results
Fiscal Fiscal
Year Ended Year Ended
Sept. 30, Sept. 30,
1997 1996
Revenue $ 56,935,000 $ 80,157,000
Cost of Revenue (52,084,000) (70,648,000)
Selling, General & Administrative
Expenses (5,333,000) (3,595,000)
Operating Profit (Loss) (482,000) 5,914,000
Interest Income 163,000 198,000
Interest Expense (4,027,000) (4,970,000)
Earnings Before Taxes (4,346,000) 1,142,000
Income Taxes (23,000) (47,000)
Earnings (Loss) Before
Extraordinary Item (4,369,000) 1,095,000
Extraordinary Item -- (365,000)
Net Earnings (Loss) $ (4,369,000) $ 730,000
Earnings (Loss) Per Share:
Before Extraordinary Item $ (0.49) $ 0.16
Extraordinary Item -- (0.05)
Net $ (0.49) $ 0.11
Weighted Average Shares Outstanding 8,959,000 6,669,000
NOTE: Except for the historical information in this news release, this news release includes forward-looking statements that
involve risks and uncertainties, including but not limited to future fluctuations in results, the management of growth, dependence
upon a limited number of continuing and new projects, fluctuations in ratings and advertising rates, competition and other risks
detailed from time to time in the company's Securities and Exchange Commission filings. Actual results may differ materially
from such information set forth.
The Kushner-Locke Co. (www.kushner-locke.com) is a leading independent producer and distributor of feature films,
direct-to-video films, television series, made-for-TV movies, miniseries, infomercials and animated programming for theaters,
network and cable television. |
