Loss Widens at 4Kids

NEW YORK: 4Kids Entertainment’s fourth-quarter loss rose from $19.6 million to $21.3 million, largely due to a $20.2 million impairment charge on the Chaotic property.

The company reported revenues of $17 million for its fourth quarter, compared to $12.8 million recorded for the year-ago period, with the company receiving $9.8 million as part of the deal to give up the merchandise licensing rights for Teenage Mutant Ninja Turtles (TMNT).

For the full year, 4Kids reported revenues of $36.8 million, down from 2008’s $57.2 million. The company’s net loss for the full year was $42.1 million, up from the year ago $36.8 million.

“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, the chairman and CEO 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.”

Kahn continued: "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 strategic transactions that could potentially have a positive effect on shareholder value.”