4Kids Entertainment Reports 2008 Fourth Quarter and Year End Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 4Kids Entertainment, Inc. (NYSE NYSE See: New York Stock Exchange : KDE (K Desktop Environment) A GUI-based user interface primarily for Unix and Linux machines, but also available for Windows and Mac. The source code is freely distributed and is maintained by developers around the world. ), the global children's entertainment and merchandise licensing company, today announced financial results for the quarter and year ended December 31, 2008. Net revenues for the three months ended December 31, 2008 totaled $14.3 million, compared to $16.5 million for the same period in 2007. The Company's net loss for the three months ended December 31, 2008 was $(19.6) million, or $(1.48) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to a net loss of $(16.8) million, or $(1.26) per diluted share, for the same period in 2007. For the year ended December 31, 2008, net revenues totaled $63.7 million, compared to $55.6 million for the same period in 2007. Revenue for the year ended December 31, 2008 included approximately $15.3 million from the sale of Chaotic[R] trading cards. The Company's net loss for the year ended December 31, 2008 was $(36.8) million, or $(2.79) per diluted share, as compared to $(23.3) million, or $(1.77) per diluted share, for the same period in 2007. "The sharp economic downturn and associated severe deterioration of consumer confidence starting in September 2008 deeply impacted our licensing revenue and trading card game sales in the fourth quarter. Our results were also impacted by declining licensing revenue throughout the year from some of our more established properties. While we are extremely disappointed by our results for 2008, we implemented significant cost cutting initiatives in the fourth quarter of 2008 and the first quarter of 2009 that we expect to reduce our operating costs operating costs npl → gastos mpl operacionales by $25 million in 2009 as compared with 2008," stated Alfred R. Kahn
Alfred R. Kahn (born in New York City, New York U.S. in May 29 1947) is Chairman and CEO of 4Kids Entertainment, a New York Stock Exchange-listed company that is a global , Chairman and Chief Executive Officer, 4Kids Entertainment. "While Chaotic trading card sales for the first nine months of 2008 were in line with our expectations, sales for fourth quarter fell well below our expectations at $0.5 million. This decline in sales is primarily due to retailers and distributors reducing, canceling or returning orders in an effort to reduce their inventory as they respond to the rapid, steep economic decline. In addition to impacting sales, it also triggered an increase in our reserve for returns and allowances and a $3 million write-down of our trading card inventory. Despite the fourth quarter sales numbers, Chaotic finished the year as the number three selling trading card game in the U.S. behind Pokemon and Yu-Gi-Oh!," said Kahn. "Looking forward, we believe Chaotic still offers a tremendous opportunity for 4Kids in the future as we roll out the Chaotic trading cards in the UK, France and Germany during the first half of 2009. Chaotic will also be bolstered by the revised and improved Chaoticgame.com website that went live on March 3 and is now available in English, French, German, Spanish and Italian. We also expect additional Chaotic licensed products to be available from our master toy licensee, Spin Master, and our videogame partner, Activision Publishing, which is scheduled to release a Chaotic video game on the Wii[TM], Nintendo DS “NDS” redirects here. For other uses, see NDS (disambiguation). The Nintendo DS (sometimes abbreviated NDS or DS) is a handheld game console developed and manufactured by Nintendo, which was released in 2004 in Canada, U.S., and Japan. [TM], Xbox 360[R], and PLAYSTATION[R]3 platforms in fall 2009." Bruce Foster, Chief Financial Officer of 4Kids, stated, "During the fourth quarter, we experienced a measurable decrease in our cash and investments of $32.6 million. This decrease was attributable to multiple factors, including declining revenue, as described above and continued investment spending in our trading card game and website subsidiaries, TC Digital Games and TC Websites. The decrease in cash also resulted from fourth quarter payments to Fox and The CW network of approximately $15 million and costs associated with the build up of Chaotic trading card inventory. "During 2008, we recorded a temporary impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of approximately $13.5 million, in addition to the $4 million temporary impairment recorded in 2007, due to a decline in value of our auction rate securities. In the fourth quarter, we also recorded a $7.8 million charge to operations resulting from the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of certain auction rate securities as permanently impaired. This permanent impairment increased our fourth quarter loss to ($19.6) million," said Foster. About 4Kids Entertainment, Inc. With U.S. headquarters in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , regional offices for its trading card business in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. and international offices in London, 4Kids Entertainment, Inc. (NYSE: KDE) is a global organization devoted to the creation, development, production, broadcasting, distribution, licensing and manufacturing of children's entertainment products. Through its subsidiaries, 4Kids produces animated television series “Animated series” redirects here. For full information about animated series, see Animated cartoon. Animated Series are a television series produced by means of animation. and films, distributes 4Kids' produced or licensed animated television series for the domestic and international television and home video markets, licenses merchandising rights worldwide to 4Kids' owned or represented properties, operates Websites to support 4Kids' owned or represented properties, and produces and markets collectible trading card games. Additionally, the Company programs and sells the national advertising time in "TheCW4Kids" five-hour Saturday morning block on The CW television network. Additional information is available on the www.4KidsEntertainment.com corporate Website and at the www.4Kids.tv game station site. The information contained in this press release, other than historical information, consists of forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors beyond the Company's control, including general economic conditions, consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. levels, competition from toy companies, motion picture studios and other licensing companies, the uncertainty of public response to the Company's properties and other factors could cause actual results to differ materially from the Company's expectations. (Tables follow) [TABLE OMITTED] [TABLE OMITTED] |
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