4Kids Entertainment Reports Third 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 in the third quarter ended September September: see month. 30, 2004 of $24.7 million compared to $25.3 million in the same period last year. Net income in the third quarter was $2.5 million, or $0.18 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 $2.9 million or $0.20 per diluted share, in the year-earlier period. The diluted weighted average common shares outstanding for the three months ended September 30, 2004 were 14,124,098 shares compared to 14,169,729 shares in the prior year. For the nine months ended September 30, 2004, net revenues totaled $69.2 million compared to $69.7 million in the same period last year. Net income for the nine month period was $7.7 million, or $0.54 per diluted share, compared to net income of $9.5 million, or $0.68 per diluted share, in the same period last year. 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. , 4Kids Entertainment Chairman and Chief Executive Officer, said, "Our performance was driven by the continued popularity of Yu-Gi-Oh! and revenue increases for Teenage Mutant (programming) mutant - Microsoft's term for a mutex which is generally used in user mode but can also be used in kernel mode. According to this terminology a mutex is only used in kernel mode. ["Microsoft Windows NT Workstation Resource Kit"]. Ninja Turtles(TM), the 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. and The Dog properties, as well as the newly introduced Cabbage Patch Kids Cabbage Patch Kids are a brand of doll created by Xavier Roberts in 1978. The original dolls were all cloth and were available at local craft shows, and later at Babyland General Hospital in Cleveland, Georgia. doll line from Play Along, which began shipments in the third quarter. Although our revenues for the first nine months of 2004 are essentially flat, our profitability has been impacted in 2004 by increases in expenses and a shift in the revenue mix from high margin merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain licensing revenue to lower margin production revenue. FoxBox, 4Kids' four hours of children's television programming on Saturday Saturday: see week; Sabbath. mornings, remains a key component of our strategy for future growth. We introduced several new properties on FoxBox in the fall of 2004, including "One Piece" and "F-Zero This article is about the first game in the series. For information on this Nintendo franchise as a whole, see F-Zero (series). F-Zero (エフゼロ ". We are also expanding licensing opportunities for established FoxBox programs. The fall marks the introduction of new Teenage Mutant Ninja Turtles(TM) merchandise, the first 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) video game release from Konami Konami Corporation (コナミ株式会社 Konami Kabushiki-gaisha and a Winx Club  This article needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. (TM) toy line toy line n. Chiefly Southern U.S. The line used in a game of marbles. from Mattel Mattel Inc. (NYSE: MAT) is an American toy company and is the largest toy company based on revenue. Its products include Barbie dolls, Hot Wheels and Matchbox cars, American Girl dolls, board games, and, in the early 1980s, video game consoles. , all of which will be on store shelves for the holidays." Kahn continued, "We are active in every major category of children's entertainment and we continue to expand our reach through the development of new technologies such as the compression used in Mattel's JuiceBox(TM), which is currently available in stores. Our overall presence at retail is very strong for the holidays and the variety of 4Kids' licensed merchandise available for purchase is broader than at any other time in our history." The Company announced that in the third quarter of 2004, the Company completed the purchase of 750,000 shares of the Company's stock that had previously been authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the Board of Directors in November November: see month. 2003. The Company also announced that its Board of Directors had authorized the Company to purchase, from time to time through December December: see month. 31, 2005, up to 1,000,000 additional shares of the Company's common stock in the open market or through negotiated prices. 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 London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , 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 buying and planning; and Web site development. For further information, please visit the company's Web site at www.4KidsEntertainment.com. 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. This release and prior releases are available on the Company's Worldwide Web site at www.4KidsEntertainment.com Tables follow:
4KIDS ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2004 AND DECEMBER 31, 2003
(In thousands of dollars, except share data)
--------------------------------------------------------------------
ASSETS 2004 2003
------ ------
CURRENT ASSETS: (Unaudited)
Cash and cash equivalents $92,645 $95,136
Investments 24,127 24,443
------- -------
Total cash and investments 116,772 119,579
Accounts receivable - net 28,106 37,143
Prepaid Fox broadcast fee, net of
accumulated amortization of $53,851 and
$36,447 in 2004 and 2003, respectively 14,377 8,688
Prepaid income taxes 3,123 2,670
Prepaid expenses and other current assets 1,726 1,690
Deferred income taxes 493 --
------- -------
Total current assets 164,597 169,770
PROPERTY AND EQUIPMENT - NET 2,996 3,350
OTHER ASSETS:
Accounts receivable - noncurrent, net 1,402 2,662
Investment in equity securities 726 726
Film and television costs - net 9,430 8,183
Deferred income taxes - noncurrent 3,660 2,575
Other assets - net 8,529 6,014
------- -------
TOTAL ASSETS $191,340 $193,280
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Due to licensors $12,919 $11,835
Media payable 403 2,178
Accounts payable and accrued expenses 12,714 9,706
Deferred revenue 8,137 8,070
Deferred income taxes -- 52
------- -------
Total current liabilities 34,173 31,841
DEFERRED RENT 1,055 952
------- -------
Total liabilities 35,228 32,793
------- -------
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, 14,101,393 and 13,965,343
shares; outstanding 13,351,393 and
13,965,343 shares in 2004 and 2003,
respectively 141 140
Additional paid-in capital 55,539 52,798
Accumulated other comprehensive income 779 693
Retained earnings 114,597 106,856
------- -------
171,056 160,487
Less- cost of 750,000 treasury shares 14,944 --
------- -------
156,112 160,487
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $191,340 $193,280
------- -------
4KIDS ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2004
(In thousands of dollars, except share data)
---------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
--------- ---------- -------- --------
NET REVENUES $24,682 $25,334 $69,246 $69,681
--------- -------- -------- ---------
COSTS AND EXPENSES:
Selling, general
and administrative 10,473 8,579 27,411 23,996
Production service
costs 1,941 2,574 6,942 6,556
Amortization of
television and
film costs and
Fox broadcast fee 8,408 9,700 22,957 24,204
--------- -------- -------- ---------
Total costs
and expenses 20,822 20,583 57,310 54,756
--------- -------- -------- ---------
INCOME FROM
OPERATIONS 3,860 4,481 11,936 14,925
INTEREST INCOME 375 252 953 835
--------- -------- -------- ---------
INCOME BEFORE INCOME
TAXES 4,235 4,733 12,889 15,760
INCOME TAXES 1,704 1,866 5,148 6,278
--------- -------- -------- ---------
NET INCOME $2,531 $2,867 $7,741 $9,482
========= ========== ======= ========
PER SHARE AMOUNTS:
Basic earnings per
common share $0.19 $0.22 $0.56 $0.72
========== ========= ======== =========
Diluted earnings
per common share $0.18 $0.20 $0.54 $0.68
========= ========== ======= ========
Weighted average
common shares
outstanding -
basic 13,527,388 13,247,459 13,762,211 13,174,119
========== =========== ========== ==========
Weighted average
common shares
outstanding -
diluted 14,124,098 14,169,729 14,445,848 14,018,995
========== ========== ========== =========
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