Pojo's Yu-Gi-Oh News
4Kids Entertainment Reports First Quarter Results
NEW YORK--(BUSINESS
WIRE)--May 10, 2005--4Kids Entertainment, Inc. (NYSE: KDE)
today announced that net revenues for the first quarter
ended March 31, 2005 were $20.3 million, compared to $22.5
million in the same period last year. Net income for the
quarter was $2.0 million, or $0.14 per diluted share,
compared to net income of $3.2 million, or $0.22 per diluted
share, in the year-earlier period. The diluted weighted
average common shares outstanding for the three months ended
March 31, 2005 were 13,833,711 shares compared with
14,722,344 shares for the prior year.
Al Kahn, Chairman and Chief Executive Officer, said, "The
Company's results in Q1 reflect an overall decrease in
licensing revenue for 4Kids' properties and a decline in
advertising revenue for 4Kids TV as compared to the first
quarter of 2004. The decline in Yu-Gi-Oh!(TM) revenue after
a strong fourth quarter in 2004 was only partially offset by
increased licensing revenue for Winx Club(TM), Teenage
Mutant Ninja Turtles(TM) and Cabbage Patch Kids(TM) and by
Shaman King(TM) international sales."
The first quarter results also were impacted by increased
advertising and promotional costs associated with the
re-branding of the four hours of children's programming
produced by 4Kids and broadcast on Saturday mornings on FOX
as "4Kids TV" and with the upgrade and re-launch of the
www.4Kids.TV website.
"We are very pleased with the initial results of our 4Kids
TV re-branding campaign," Kahn said. "In the last few weeks
of the first quarter and continuing into the second quarter,
4Kids TV ratings have shown significant improvement. Our
decision to enter the girls' market has been validated by
the initial broadcast and licensing success of Winx Club
(TM). We plan to strengthen our position in the girls'
market with the introduction of additional girls' properties
to the 4Kids TV line up later this year. These properties
will join the new G.I. Joe Sigma 6 (TM) series scheduled to
debut on 4Kids TV this fall," stated Kahn.
"In addition to Yu-Gi-Oh! Season 5 scheduled to be broadcast
on Kids' WB! in the fall of 2005, we will also be producing
a new Yu-Gi-Oh! series called Yu-Gi-Oh! GX that will be
broadcast this fall. The new GX series, set many generations
in the future, will benefit from an expanded licensing
program slated to begin in the second half of the year,"
said Kahn.
In the first quarter of 2005, 4Kids repurchased 350,000
shares out of the current authorization of 1 million shares
authorized for repurchase by the Board of Directors in
November 2004.
"We continue to be optimistic about 2005 and believe that
investing in our shares is an excellent use of our cash at
this time," Kahn said. "With no debt and cash and
investments of $130.8 million at March 31, 2005, we have
significant resources with which to develop our business. We
remain keenly focused on identifying and capitalizing on new
opportunities in content and distribution, the two areas of
growth that we believe will drive shareholder value over the
long term."
