4 Kids Entertainment Inc (FOUR) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2007

 

 

 

 

4Kids Entertainment Reports 2007 Fourth Quarter and Year End Results

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NEW YORK, March 17, 2008 – 4Kids Entertainment, Inc. (NYSE: KDE)

, a global provider of children’s entertainment and merchandise licensing, today announced financial results for the fourth quarter and year ended December 31, 2007.

 

Net revenues in the fourth quarter of 2007 totaled $16.5 million from continuing operations as compared to $18.3 million for the same period in 2006. The Company’s net loss for the quarter ended December 31, 2007 was $(16.8) million, or $(1.26) per diluted share. The Company had a net loss of approximately $(2.3) million, or $(0.18) per diluted share, in the same period in 2006 (consisting of a loss from continuing operations for the fourth quarter of 2006 of $(2.5) million, or $(0.19) per diluted share, and income from discontinued operations of $0.2 million, or $0.01 per diluted share). The Company has reported the results of Summit Media, its media buying subsidiary, as a discontinued operation since its operation ceased in June 2006.

 

For the year ended December 31, 2007, net revenues totaled $55.6 million from continuing operations compared to $71.8 million for the same period in 2006. The Company’s net loss for the year ended December 31, 2007 was $(23.3) million, or $(1.77) per diluted share, as compared to a net loss for the year ended December 31, 2006 of $(1.0) million, or $(0.08) per diluted share (consisting of a loss from continuing operations of $(1.7) million, or $(0.13) per diluted share, and income from discontinued operations of $0.7 million, or $0.05 per diluted share). The diluted weighted average common shares outstanding for the year ended December 31, 2007 were 13,209,495 shares compared with 13,104,051 shares in 2006.

 

Alfred R. Kahn, Chairman and CEO of 4Kids Entertainment, stated: “Our 2007 results were negatively impacted when the Company recorded an $11.9 million reserve against its deferred tax assets in accordance with SFAS No. 109, Accounting for Income Taxes. The reserve increased the Company’s loss by $.90 per diluted share. In addition, in 2007, we incurred approximately $7.8 million in net losses attributable to start up costs for our Chaotic trading card and website subsidiaries, TC Digital Games LLC and TC Websites LLC, which added about another $.60 per diluted share to the Company’s loss.”

 

“The Company, however, did achieve a number of significant milestones in 2007 which I