4Kids Entertainment Reports Second Quarter 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. ) today announced net revenues for the second quarter ended June June: see month. 30, 2005 of $19.0 million compared to $22.1 million in the same period last year. Net income for the quarter was $631,000, or $0.05 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, compared to net income of $2.0 million, or $0.14 per diluted share, in the year-earlier period. The diluted weighted average common shares outstanding for the three months ended June 30, 2005 was 13,700,291 shares compared with 14,493,824 shares for the prior year. For the six months ended June 30, 2005, net revenues totaled $39.3 million compared to $44.6 million in the same period last year. Net income for the six-month period was $2.6 million, or $0.19 per diluted share, compared to net income of $5.2 million, or $0.36 per diluted share, in the same period a year ago. Al Kahn Kahn , Louis Isadore 1901-1974. Estonian-born American architect whose bold monumental designs include the Yale University Art Gallery (1954) and the Kimbell Art Museum in Fort Worth, Texas (1972). Noun 1. , Chairman and Chief Executive Officer, said "The decline in second quarter 2005 net revenues and net income resulted mainly from reduced home video revenue and international television sales. In addition, softer sales of Yu-Gi-Oh!(TM) licensed merchandise and reduced licensing revenues from Kirby Kirby is a common place name, surname, and given name. Other common uses include:
(TM) were only partially offset by increased licensing revenue for Winx Club  This article needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. (TM) and American Kennel Club American Kennel Club (AKC), national organization in the United States devoted to the advancement and welfare of pure-bred dogs. It is comprised of approximately 500 autonomous clubs. (TM) in the domestic market and Shaman King Shaman King (シャーマンキング Shāman Kingu) is both an anime series and a manga series by Hiroyuki Takei. The manga has ended in Japan with 32 volumes in total. (TM) internationally." Second quarter 2005 results were also impacted by somewhat higher overall expenses including increased advertising and promotional costs associated with building the "4Kids TV" brand and achieving and maintaining compliance with Sarbanes-Oxley. "We continue to execute our strategic plan," said Kahn. "Our investment in the re-branding of the four hours of children's programming produced by 4Kids and broadcast on Saturday Saturday: see week; Sabbath. mornings on FOX as "4Kids TV" has helped to improve ratings, and has enhanced our ability to attract new programming that can translate into future licensing revenues and stronger ad sales. "We are particularly excited about our strong fall 2005 line-up on 4Kids TV." We will be building on the initial broadcast success of Winx Club (TM), our first girls' television property. In September, 4Kids TV will be premiering the new BRATZ (R) television series, based upon the top-selling line of fashion dolls Fashion dolls are dolls designed to be dressed and redressed to reflect fashion trends or occasionally fantasy play. The dolls are typically plastic or vinyl, and are manufactured both as toys and as collectibles. They are enjoyed by many age groups. from MGA Entertainment MGA Entertainment is a manufacturer of children's toys and entertainment products founded in 1997. Its products include the Bratz fashion doll line. External links
any American soldier. [Am. Military Slang: Misc.] See : Soldiering Sigma SIGMA - A scientific visual programming environment from NASA. http://fi-www.arc.nasa.gov/fia/projects/sigma/. 6 (TM) series on 4Kids TV," stated Kahn. "In addition to Yu-Gi-Oh! Season 5 which is scheduled to be broadcast on Kids' WB Kids' WB is the Saturday morning cartoon block of The CW Television Network's weekend programming. The CW is the result of The WB merge with UPN in 2006. History Early years ! in the fall of 2005, a new Yu-Gi-Oh! spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. series called Yu-Gi-Oh! GX This article is about the Yu-Gi-Oh! GX anime. For the manga series of the same name, see Yu-Gi-Oh! GX (manga). Yu-Gi-Oh! GX ( , is scheduled for broadcast this fall on the Cartoon Network For Cartoon Network outside of the United States, see . Cartoon Network is a cable television network created by Turner Broadcasting which primarily shows animated programming. . The GX series, set a generation in the future, is expected to benefit from an expanded licensing program slated to begin in the second half of the year," said Kahn. In the second quarter of 2005, 4Kids repurchased an additional 250,000 shares of the Company's common stock, bringing the total number of shares repurchased under the current 1 million share authorization The right or permission to use a system resource; the process of granting access. See access control. to 600,000. "Our goal is to build the world's leading vertically integrated children's entertainment company specializing in licensing," Kahn said. "With no debt and cash and investments of $108.1 million at June 30, 2005, we have significant resources with which to execute our growth strategy and build our portfolio of kids content. Going forward, we will remain sharply focused on building the 4Kids TV brand and expanding our content to promising new distribution platforms that can drive long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth and enhanced profitability," concluded Kahn. About 4Kids Entertainment Headquartered 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. with international offices in London, 4Kids Entertainment, Inc. (NYSE: KDE) is a global provider of children's entertainment and merchandise licensing. 4Kids, through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , provides domestic and international merchandise licensing; product development; television, film, music and home video production and distribution; media planning and buying; and Web site development. For further information, please visit the Company's Web sites at www.4KidsEntertainment.com and www.4Kids.TV 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 Section 27A of the Securities Act and Section 21E of the Exchange Act. 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:
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2005 and DECEMBER 31, 2004
(In thousands of dollars, except share data)
ASSETS 2005 2004
CURRENT ASSETS: (Unaudited)
Cash and cash equivalents $100,646 $111,759
Investments 7,484 16,067
-------------- --------------
Total cash and investments 108,130 27,826
Accounts receivable - net 24,644 39,917
Prepaid 4Kids TV broadcast fee,
net of accumulated amortization
of $74,864 and $64,306 in 2005
and 2004, respectively 15,841 6,991
Prepaid income taxes 2,630 3,074
Prepaid expenses and other current
assets 2,021 1,759
Deferred income taxes -- 158
-------------- --------------
Total current assets 153,266 179,725
PROPERTY AND EQUIPMENT - NET 2,627 2,821
OTHER ASSETS:
Accounts receivable - noncurrent,
net 1,402 901
Investment in equity securities 726 726
Film and television costs - net 11,968 10,518
Deferred income taxes - noncurrent 1,700 2,241
Other assets - net 8,063 8,083
-------------- --------------
TOTAL ASSETS $179,752 $205,015
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Due to licensors $ 7,137 $ 16,859
Media payable 276 3,723
Accounts payable and accrued
expenses 10,112 12,589
Deferred revenue 5,675 6,855
Deferred income taxes 443 --
-------------- --------------
Total current liabilities 23,643 40,026
DEFERRED RENT 1,127 1,011
-------------- --------------
Total liabilities 24,770 41,037
-------------- --------------
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value -
authorized, 3,000,000 shares;
none issued -- --
Common stock, $.01 par value -
authorized, 40,000,000 shares;
issued, 14,431,143 and 14,411,768
shares; outstanding 13,081,143 and
13,661,768 shares in 2005 and
2004, respectively 144 144
Additional paid-in capital 58,378 58,068
Accumulated other comprehensive
income 702 1,124
Retained earnings 122,181 119,586
-------------- --------------
181,405 178,922
Less- cost of 1,350,000 and 750,000
treasury shares in 2005 and 2004,
respectively 26,423 14,944
-------------- --------------
154,982 163,978
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $179,752 $205,015
============== ==============
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004
(In thousands of dollars, except share data)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
NET REVENUES $18,997 $22,097 $39,263 $44,564
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Selling, general
and administrative 8,948 8,424 17,804 16,938
Production service
costs 1,986 3,038 4,122 5,001
Amortization of
television and
film costs and Fox
broadcast fee 7,733 7,555 14,403 14,549
----------- ----------- ----------- -----------
Total costs and
expenses 18,667 19,017 36,329 36,488
----------- ----------- ----------- -----------
INCOME FROM
OPERATIONS 330 3,080 2,934 8,076
INTEREST INCOME 753 293 1,400 578
----------- ----------- ----------- -----------
INCOME BEFORE INCOME
TAXES 1,083 3,373 4,334 8,654
INCOME TAXES 452 1,330 1,739 3,444
----------- ----------- ----------- -----------
NET INCOME $631 $2,043 $2,595 $5,210
=========== =========== =========== ===========
PER SHARE AMOUNTS:
Basic earnings per
common share $0.05 $0.15 $0.19 $0.38
=========== =========== =========== ===========
Diluted earnings
per common share $0.05 $0.14 $0.19 $0.36
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
basic 13,248,711 13,794,353 13,315,162 13,880,984
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
diluted 13,700,291 14,493,824 13,766,632 14,608,084
=========== =========== =========== ===========
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