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4Kids Profit Falls Again
posted on by Jonathan Mays
9% decline brings net income to $34,000
4Kids's second quarter revenue fell from $18 million in 2005 to $16.7 million this year, Chairman and CEO Al Kahn reported in a conference call. The company also reported a net income of $34,000.
Kahn cited $1.7 million in severance costs as part of the $2.1 million increase in "general and administrative expenses" since Q2 2005.
"While we experienced gains in revenues attributable to our Yu-Gi-Oh!, Cabbage Patch Kids and The Winx Club brands, these gains were offset by declines in revenues from the Teenage Mutant Ninja Turtles and the American Kennel Club properties," Kahn said.
Yu-Gi-Oh!'s additional revenue of $2.8 million is owed to "changes in the manner in which sales are calculated by a licensee," he said.
Kahn also cited 4Kids's new strategy of owning a property rather than licensing it, which he said hurt short-term profits this quarter.
He further emphasized that 4Kids has no long term debt and retains $113.5 million "in the bank."
Kahn cited $1.7 million in severance costs as part of the $2.1 million increase in "general and administrative expenses" since Q2 2005.
"While we experienced gains in revenues attributable to our Yu-Gi-Oh!, Cabbage Patch Kids and The Winx Club brands, these gains were offset by declines in revenues from the Teenage Mutant Ninja Turtles and the American Kennel Club properties," Kahn said.
Yu-Gi-Oh!'s additional revenue of $2.8 million is owed to "changes in the manner in which sales are calculated by a licensee," he said.
Kahn also cited 4Kids's new strategy of owning a property rather than licensing it, which he said hurt short-term profits this quarter.
He further emphasized that 4Kids has no long term debt and retains $113.5 million "in the bank."
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