Marvel Reports 4Q96 and Full Year 1996
Results
NEW YORK, NY - March 28, 1997 - Marvel
Entertainment Group, Inc. (NYSE: MRV) announced results for
the fourth quarter and full year ended December 31, 1996 in line
with the Company's January 27, 1997 announcement. For the
quarter, Marvel reported net revenues of $164.3 million compared
to $232.8 million and a net loss of $436.5 million or ($4.29) per
share compared to a net loss of $58.5 million or ($0.58) per
share. For the year, Marvel reported net revenues of $745.5
million compared to $828.9 million and a net loss of $464.4
million or ($4.56) per share compared to a net loss of $48.4
million or ($0.48) per share. All comparisons are to the 1995
periods.
Results for the quarter and year ended December 31, 1996
reflect weaknesses in the Company's businesses and also include
significant, principally non-cash charges of approximately $380
million primarily consisting of a write-down of approximately
$278.5 million in impaired goodwill and other intangibles related
to trading card and publishing operations. The balance of the
charges relates largely to the Company's restructuring actions,
the write-off of deferred tax assets, and the bankruptcy.
Marvel's 1995 results included $95 million in special and
restructuring charges in the fourth quarter and $135 million of
such charges for the full year.
The Company has filed for an extension on filing its annual
report on Form 10-K for the 1996 fiscal year, which will be filed
no later than April 15, 1997. Copies of the Form 10-K, when
filed, may be obtained from Marvel Investor Relations . For more
information regarding Marvel, call 212-696-0808 or visit web
sites at http://www.marvelonline.comor href="http://www.shareholdernews.com/mrv." target=_new>http://www.shareholdernews.com/mrv">http://www.shareholdernews.com/mrv.
Forward Looking Statements: When used in this news release,
the words "intend", "estimated",
"believe", "expect" and similar expressions
which are not historical are intended to identify forward-looking
statements that involve risks and uncertainties. Such statements
include, without limitation, Marvel's expectations as to
financial performance. In addition to factors that may be
described in the Company's Securities and Exchange Commission
filings, the following factors, among others, could cause the
Company's financial performance to differ materially from that
expressed in any forward- looking statements made by, or on
behalf of, the Company: (i) the ability of Marvel to successfully
reorganize in bankruptcy and the outcome of such bankruptcy
proceedings; (ii) the ability of Marvel to obtain
debtor-in-possession ("DIP") financing subsequent to
the maturity of its current DIP financing on June 30, 1997 or in
the event of an earlier termination of Marvel's current DIP
financing; (iii) continued weakness in the comic book market
which cannot be overcome by the Company's new editorial,
production and distribution initiatives in comic publishing; (iv)
continued general weakness in the trading card market; (v) the
failure of fan interest in baseball to return to traditional
levels that existed prior to the 1994 baseball strike, thereby
negatively affecting the Company's baseball card business; (vi)
the effectiveness of the Company's changes to its trading card
distribution; (vii) a decrease in the level of media exposure or
popularity of the Company's characters resulting in declining
revenues based on such characters; (viii) the lack of continued
commercial success of properties owned by major licensors which
have granted the Company licenses for its sports and
entertainment trading card and sticker businesses; (ix)
unanticipated costs or delays in completing projects associated
with the Company's new ventures including media, interactive
software and on-line services, theme restaurants and trading card
mass merchandise distribution; (x) consumer acceptance of new
product introductions, including those for toys; and (xi)
imposition of tariffs or import quotas on toy manufacturers in
China as a result of a deterioration of trade relations between
the U.S. and China.
MARVEL ENTERTAINMENT GROUP, INC.
(DEBTOR-IN-POSSESSION)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share data) (Audited)
Three Months Year
Ended Dec 31, Ended Dec 31,
1996 1995 1996 1995
Net revenues $164.3 $232.8 $745.5 $828.9
Cost of sales 164.0 180.7 536.4 533.3
Selling, gen. & admin. exp. 76.4 70.7 244.5 226.7
Restructuring charges 15.8 25.0 15.8 25.0
Depreciation & amortization 16.2 8.8 31.8 21.2
Amortization of goodwill,
intangibles & deferred charges(a) 286.5 5.3 303.3 17.9
Interest expense, net 16.2 13.0 58.9 43.2
Foreign exchange loss/(gain), net (1.0) 0.4 1.1 (0.4)
Gain on sale of
Toy Biz common stock -- -- 22.0 14.3
Equity in net (loss) income of
unconsolidated subsidiaries (0.6) 0.1 (1.2) 1.7
Loss before reorg. items, provision
(benefit) for income taxes, minority
interest & extraordinary item (410.4) (71.0) (425.5) (22.0)
Reorganization items 5.5 -- 5.5 --
Loss before provision (benefit)
for income taxes, minority
interest & extraordinary item (415.9) (71.0) (431.0) (22.0)
Provision (benefit) for
income taxes 22.4 (19.9) 21.7 5.7
Loss bef. minority interest &
extraordinary item (438.3) (51.1) (452.7) (27.7)
Minority interest in (loss)
earnings of Toy Biz (1.8) 7.4 11.7 17.4
Loss before extraordinary item (436.5) (58.5) (464.4) (45.1)
Extraordinary item, net of taxes -- -- -- (3.3)
Net loss ($436.5) ($58.5) ($464.4) ($48.4)
Loss per share:
Loss before extraordinary item ($4.29) ($0.58) ($4.56) ($0.45)
Extraordinary item -- -- -- (0.03)
Net loss ($4.29) ($0.58) ($4.56) ($0.48)
Number of common shares
outstanding (in millions) 101.8 101.7 101.8 101.7
(a) Includes non-cash charges of $278.5 million in the quarter
ended December 31, 1996 representing a write-down of
goodwill and other intangibles, primarily related to
trading card operations.
SOURCE Marvel Entertainment Group, Inc./CONTACT: Gary Fishman,
Investor Relations for Marvel, 212-685-6890/