Press Releases
March 31, 2011 – 4Kids Entertainment Reports 2010 Fourth Quarter and Year End Results
NEW YORK -
4Kids Entertainment, Inc. (Pink Sheets: KIDE), the global children’s entertainment and merchandise licensing company, today announced financial results for the fourth quarter and year ended December 31, 2010.
Net revenues for the three months ended December 31, 2010 totaled $4.8 million, compared to $16.2 million for the same period in 2009. The Company’s net loss for the three months ended December 31, 2010 attributable to 4Kids Entertainment was $(7.4) million, or $(0.54) per diluted share (consisting of a net loss from continuing operations attributable to 4Kids Entertainment of $(7.8) million, or $(0.57) per diluted share, and net income from discontinued operations attributable to 4Kids Entertainment of $0.4 million, or $0.03 per diluted share), as compared to a net loss for the three months ended December 31, 2009 of $(21.3) million, or $(1.59) per diluted share (consisting of a net loss from continuing operations attributable to 4Kids Entertainment of $(17.2) million, or $(1.28) per diluted share, and a net loss from discontinued operations attributable to 4Kids Entertainment of $(4.1) million, or $(0.31) per diluted share).
For the year ended December 31, 2010, net revenues totaled $14.5 million, compared to $34.2 million for the same period in 2009. The Company’s net loss attributable to 4Kids Entertainment for the year ended December 31, 2010 was $(27.2) million, or $(2.02) per diluted share (consisting of a net loss from continuing operations attributable to 4Kids Entertainment of $(25.2) million, or $(1.87) per diluted share, and a net loss from discontinued operations attributable to 4Kids Entertainment of $(2.0) million, or $(0.15) per diluted share), as compared to a net loss of $(42.1) million, or $(3.16) per diluted share for the year ended December 31, 2009 (consisting of a net loss from continuing operations attributable to 4Kids Entertainment of $(31.9) million, or $(2.40) per diluted share, and a net loss from discontinued operations attributable to 4Kids Entertainment of $(10.2) million, or $(0.76) per diluted share).
As of December 31, 2010, the Company had approximately $4.2 million in cash and $7.1 million in investment securities at their fair market value.
As previously reported by 4Kids on March 24, 2011, 4Kids received a letter from the licensors of the Yu-Gi-Oh! property, Asatsu-DK Inc (“ADK”) and TV Tokyo Corporation, (collectively, the “Licensors”) purporting to terminate the agreement dated July 1, 2008 (the “Yu-Gi-Oh! Agreement”) between 4Kids and Licensors due to alleged breaches of the Yu-Gi-Oh! Agreement by 4Kids. The purported termination letter did not comply with the 10 business day notice and cure provision in the Yu-Gi-Oh! Agreement. On March 24, 2011, the Licensors filed a lawsuit against the Company in the United States District Court for the Southern District of New York also claiming that 4Kids has breached the Yu-Gi-Oh! Agreement for failing to pay Licensors approximately $4.7 million with regard to certain audit claims asserted by Licensors.