4Kids Entertainment has posted its financial results for the fourth quarter and year ended December 31st 2009.
Net revenues for the three months ending December 31st 2009 totalled $17.0 million, compared to $12.8 million for the same period in 2008. Q4 revenues included $9.8 million as part of 4Kids' agreement to terminate its right to serve as the licensing agent for the Teenage Mutant Ninja Turtles property.
However, net loss grew to $21.3 million (2008: $19.6m). This included $20.2 million in impairment charges attributable to the Chaotic property.
4Kids' Q4 results also included losses and impairment charges of $6.0 million relating to its portfolio of auction rate securities; $2.9 million in severance costs relating to the reduction in force; and an additional $3.8 million in amortisation of capitalised film costs related to the sale of TMNT.
Meanwhile, for the full year, net revenues stood at $36.8 million (2008: $57.2 million). Net loss for the year was $42.1 million (2008: $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 Kahn, chairman and CEO of 4Kids. "We have substantially reduced our cost structure and have revised the valuation or amortisation 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 added: "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 licences and opportunities for 4Kids in 2010.
"As of March 5th, 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 strategic transactions that could potentially have a positive effect on shareholder value."