Kushner-Locke Anticipates Fiscal 1997 Net Loss.
This compares with fiscal 1996 results of approximately $730,000 net income, on revenues of approximately $80 million. Actual results for fiscal 1997 will be released within the next two weeks.
"The expected 1997 loss is largely a result of certain non-recurring adjustments, including a reduction in the carrying value of library product and an increase in the allowance for doubtful accounts. These total approximately $2 million," stated president and COO Bruce Lilliston.
"There is also an additional write-down of approximately $1 million on a recently discontinued network series, `Gun,'" added Lilliston. "The balance of the expected fiscal 1997 loss can be attributed to the fact that our product mix during the fourth quarter consisted largely of recently introduced episodic television product with lower-than-historical operating margins.
"We expect our fiscal 1998 product mix to return to normal profitable operating margins."
"We are optimistic about our fiscal 1998 slate," stated co-chairman Donald Kushner. "On the television side, our new ABC primetime series `Cracker' was recently expanded to a 22-episode order. We are also producing the series 'Mike Hammer' for the syndication market and 'Mowgli: The New Adventures of The Jungle Book' for the FOX network.
"The total production commitments payable to Kushner-Locke or its joint venture partners for these three series, including both completed and scheduled episodes deliverable in fiscal years 1997-98, exceed $50 million. We are also associated with Franklin/Waterman Worldwide in producing the series 'Born Free' for Columbia.
"In addition," added co-chairman Peter Locke, "we have released or expect to release or deliver over 10 feature films, with budgets ranging from $2 to $18 million per picture, during fiscal 1998. These include 'Beowulf,' where we are partnered with Capitol Films of London and producer Larry Kasanoff in producing a picture starring Christopher Lambert, and 'One Man's Hero,' starring Tom Berenger which will be released domestically by MGM.
"Our scheduled product mix for the current fiscal year is larger and more diversified than we have had in the past and, we believe, consistent with the types of product demanded in today's competitive worldwide marketplace."
The Kushner-Locke Co. is a leading independent producer and distributor of feature films, direct-to-video films, television series, made for television movies, miniseries and animated programming for theaters, network and cable television. Visit the company's Web site at www.kushner-locke.com . -0-
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 the fact that actual results for the fourth quarter are subject to completion of the company's annual audit, future fluctuations in results, the management of growth, dependence on 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.
CONTACT: The Kushner-Locke Co., Los Angeles
Caroline A. Chartier, 310/445-1111