4Kids Entertainment Announces Fourth Quarter and Year-End Financial Results
4Kids Entertainment, Inc. on Wednesday announced financial results for the fourth quarter and year ended December 31, 2004.
For fiscal year 2004, net revenues were $103.3 million versus $102.1 million in 2003. Net income for the year was $12.7 million or $0.89 per diluted share versus $14.8 million or $1.05 per diluted share in 2003. The diluted weighted average common shares outstanding for the year ended December 31, 2004 were 14,335,343 shares compared to 14,156,291 shares in the prior year.
Net revenues in the fourth quarter ended December 31, 2004 were $34.1 million versus $32.4 million for the same period in 2003. Fourth quarter net income was $5.0 million or $0.36 per diluted share versus $5.3 million or $0.36 per diluted share for the same period in 2003.
Alfred R. Kahn, Chairman and Chief Executive Officer of 4Kids Entertainment, attributed the growth in net revenues for the year to the strong holiday sales of Yu-Gi-Oh! and Teenage Mutant Ninja Turtles licensed merchandise and to their Cabbage Patch Kids dolls. The company did, however, incur approximately $1.2 million ($0.05 per diluted share) in external costs to comply with Section 404 of the Sarbanes-Oxley Act of 2002.
4Kids is in the process of re-branding their four hour block of programming on FOX as 4Kids TV and their consumer website as 4Kids.TV. The website now provides streaming video of full length cartoon episodes of many of the company’s shows.
Kahn was optimistic about the prospects for 2005, anticipating continued strength in the company’s core brands and in their new girls’ programming. Kahn also went on to announce a deal with Hasbro to broadcast a new GI Joe animated series beginning in September 2005.
[Source: 4Kids Entertainment]