4 Kids Entertainment Inc (FOUR) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2009

4Kids Entertainment Reports 2009 Fourth Quarter and Year End Results

NEW YORK, March 16, 2010 – 4Kids Entertainment, Inc. (NYSE: KDE)

Net revenues for the three months ended December 31, 2009 totaled $17.0 million, compared to $12.8 million for the same period in 2008. Fourth quarter revenues included $9.8 million that the Company received as part of its agreement to terminate its right to serve as the merchandise licensing agent for the Teenage Mutant Ninja Turtles property (“TMNT”). The Company’s net loss attributable to 4Kids Entertainment for the three months ended December 31, 2009 was $(21.3) million, or $(1.59) per diluted share, as compared to a net loss of $(19.6) million, or $(1.48) per diluted share, for the same period in 2008.  Net loss for the fourth quarter included $20.2 million in impairment charges attributable to the Chaotic property. The Company's fourth quarter 2009 results also included losses and impairment charges of $6.0 million relating to the Company's portfolio of auction rate securities, $2.9 million in severance costs relating to the reduction in force and an additional $3.8 million in amortization of capitalized film costs related to the fourth quarter 2009 sale of the TMNT property.

For the year ended December 31, 2009, net revenues totaled $36.8 million, compared to $57.2 million for the same period in 2008. The Company’s net loss attributable to 4Kids Entertainment for the year ended December 31, 2009 was $(42.1) million, or $(3.16) per diluted share, as compared to a net loss of $(36.8) million, or $(2.79) per diluted share, for the same period in 2008. The Company’s results reflect the adoption of authoritative guidance from the FASB requiring losses attributable to non-controlling interests of the Company to be excluded in their entirety from the computation of the Company’s net losses beginning in 2009.

“In 2009 we looked to realign our business with current trends in the market and made significant adjustments throughout our operations,” said Alfred R. Kahn, Chairman and Chief Executive Officer of 4Kids Entertainment. "We have substantially reduced our cost structure and have revised the valuation or amortization of certain assets on our balance sheet. With these financial hurdles now behind us, we have entered 2010 with a much lower annual expense base which is projected to be under $25 million for 2010,” said Mr. Kahn.

"We believe that we have a stronger pipeline of new properties than in recent years, which we hope will benefit the Company in the years ahead. We are also working on a number of other deals which we expect will result in additional licenses and opportunities for 4Kids in 2010. As of March 15, 2010, the Company had over $10.7 million in cash and an additional $14.1 million in investment securities at their fair market value which we believe should provide the Company with sufficient liquidity to run its business, promote its current properties, invest in new properties and generally rebuild the business of 4Kids. While working to strengthen our business, the Company is also continuing to pursue potential