RNS Number:9097B
BKN International AG
25 April 2006
Press Release 25 April 2006
BKN International AG
("BKN" or "the Company")
Interim Results for the six months to 31 March 2006 (Record Earnings)
BKN International AG, a global animation company engaged in the distribution and
marketing of animated children's television programmes and related consumer
products that has been listed on the Deutsche Boerse of the Frankfurt Stock
Exchange since March 2000 and the AIM segment of the London Stock Exchange since
December 2003, today reports its Interim Results for the six months ended 31
March 2006 with record net earnings for the Group.
Financial Highlights
In million Euro 1st Half 2005* 1st Half 2006*
-------------- ---------------- ----------------
Turnover 5,90 7,18 +22 %
EBT 1,02 1,45 +42 %
Net income 1,02 1,42 +39 %
EPS 0,07 0,09 +29 %
* Fiscal year begins at the 1st October of the previous year and ends at 30th
September
Financial Detail
*Turnover increased to Euro7.18 million, an increase of 22% from the Euro5.90 million
in the first half of fiscal 2005.
*Total expenses amounted to Euro5.48 million, a 15% increase over the Euro4.76 million
in the corresponding period in the prior year.
*Profit before tax increased 42% to Euro1.45 million from Euro1.02 million in the
first half of fiscal 2005.
*Net income increased 39% to Euro1.42 million from Euro1.02 million in the first half
of fiscal 2005.
*Earnings per share increased 29% to Euro0.09 per share from Euro0.07 per share in the
corresponding period in the prior year.
*Cash generated from operations increased to Euro4.26 million or 63% from Euro2.61
million in the first half of fiscal 2005.
*Cash and cash equivalents increased to Euro2.04 million from Euro474,000 at 30
September 2005.
*Working capital increased to Euro3.31 million from Euro2.54 million or 31% from the
corresponding period in the prior year.
*Company invested Euro8.0 million in Film Rights in the period versus Euro4.3 million
in the corresponding period in the prior year. After a Euro2.0 million
amortisation charge in the period, Film Assets on the balance sheet rise by
Euro6.0 million to Euro29.6 million from Euro23.6 million in the corresponding prior
period.
Activities
The Company is focused on 5 major areas and projects on a global scale:
a. Legend of the Dragon - this property was initially delivered in 2004 with 26
episodes and has been expanded by 50% to 39 episodes for global distribution
with the key USA marketing launch in fall 2006 and China in spring 2007.
b. Zorro: Generation Z - this property has received very strong early market
response to the 26 episodes and the Company is considering expanding initial
production to 39 episodes. This property will be marketed in 2007 in
selected markets and 2008 in the balance of the world.
c. Dork Hunters from Outer Space - this property consists of 26 episodes with a
marketing launch planned for 2007. This is a new style for the Company
stressing comedy versus action adventure which will broaden our customer
base.
d. Classic Titles - this list of great titles including Jungle Book,
A Christmas Carol, Robin Hood and The Prince and the Pauper produced
initially for direct-to-DVD distribution will create a new revenue stream,
and steady monthly cash flow, for the Company.
e. Film Catalogue - the Company now owns the 6th largest library of animation
for global consumption providing the Company with a reliable and valuable
perpetual asset.
New Venture
The recently formed BKN Home Entertainment is establishing itself in the market
as a quality and dependable supplier of animated films and TV series for home
entertainment worldwide. Beginning in September 2006 (fiscal 2006) with the
first release of Ali Baba and the Forty Thieves and continuing monthly with A
Christmas Carol, Jungle Book, Zorro: Generation Z, The Prince and The Pauper and
Alice in Wonderland, to name a few, until December 2007 (fiscal 2008) with the
release of The Nutcracker, this division will provide quality animation in
state-of-the art 3D or Computer Graphic Imagery to a global market.
The division, which will distribute under its own label in the United Kingdom,
has already signed a number of distribution contracts throughout the world with
quality distributors that will maximise global sales of this collection.
Customers
The Company continues to expand its customer base, in all formats and venues,
including such prestigious names as the BBC in the UK, Disney/Jetix in the USA,
CBC in Canada, Super RTL in Germany, TV Espanola in Spain, Nickelodeon in Latin
America, UTV in India, Promus in China, RAI in Italy, as well as Grand Toys,
Planeta DeAgostini, The Game Factory and Warner Home Entertainment worldwide to
name a few.
Outlook
Allen Bohbot, Group CEO states "These record earnings for the first half of
fiscal 2006, on top of record earnings recently published for full year 2005,
have given the Company a sound foundation and confidence in the business.
Europe, North America, Asia, Latin America and Africa/Middle East are all
contributing to turnover and we expect each of our operating subsidiaries to be
profitable in fiscal 2006. We believe that our 5 key product offerings will lead
to strong revenues for the balance of 2006 and into 2007 and 2008."
Wayne Mowat, Group CFO, adds "Our costs are under control, our people are
professional and our vendors are proven and established. Our film rights are
conservatively valued on the balance sheet and we feel confident to meet the
full year forecast of 30% turnover and EBT profit growth (Euro3.0 million in 2005
before one-time tax benefit). While we do expect to have tax liability this
year, we believe that the rate can be managed at 10-15% assuring good EPS growth
(excluding the one time tax benefit in 2005). We have cancelled the share
buyback program so as to invest more heavily in the business and intend to sell
the shares purchased on hand which currently amount to less than 1% of total
share capital in a very slow and orderly manner before the end of our current
fiscal year."
Copies of the interim financial statement have been posted at the Company's
website (www.bknkids.com) and at the website of the Deutsche Boerse. Further
copies are available from the Company's Registered Office in Germany at Im
Mediapark 8, 50670 Koln Germany and in the United Kingdom at BKN New Media Ltd,
77 Kingsway, London WC2B 6SR.
- Ends -
Enquiries:
BKN International AG
Allen Bohbot, Chief Executive Officer Tel: +44 (0)20 7269 8683
allen.bohbot@bknkids.com
Wayne Mowat, Chief Financial Officer Tel: +44 (0)20 7269 8687
wayne.mowat@bknkids.com
Sascha Ziemann, Finance Manager Tel: +49 221 5540 5190
sascha.ziemann@bknkids.com
Laura Tapias, Managing Director Tel: +34 93 368 18 00
Latin and Italian markets
laura.tapias@bknkids.com
Ben Heng, Managing Director Tel: +65 6820 2118
Asia
ben.heng@bknkids.com
Matthew Graham-Clare, Managing Director Tel: +44 (0)20 7269 8678
Home Entertainment
matthew.graham-clare@bknkids.com
www.bknkids.com
Broker/Designated Sponsor:
Panmure Gordon Nominated Adviser & UK Broker
Aubrey Powell / Stuart Gledhill Tel: +44 (0)20 7459 3600
aubrey.powell@panmure.com
stuart.gledhill@panmure.com
Seydler AG in Germany Designated Sponsor
Rene Parmantier Tel: +49 69 92054 130
rene.parmantier@seydler.de
Deutsche Bank German Broker
Jens Hagemann Tel: +49 69 910 34495
jens.hagemann@db.com
Media Enquiries:
SSA Public Relations for trade & industry press
Karine Fouchet Tel: +44 (0)20 7863 8806
kfouchet@ssapr.com
Notes to editors:
About BKN:
BKN International AG is a global animation company engaged in the distribution
and marketing of animated children's television programmes and the marketing of
related consumer products (licensing and merchandising) in all forms. BKN has
worked on numerous successful animation projects.
The Company is currently listed on the Deutsche Bourse and AIM and it operates
all over the world. BKN has successfully negotiated distribution deals in over
80 countries and territories in the children's programming market.
The Company's Film Library includes:
- Legend of the Dragon
- Kong - The Animated Series
- Kong - King of Atlantis
- Kong II - Return to the Jungle
- A Christmas Carol
- Robin Hood
- Zorro: Generation Z
- Roswell Conspiracies
- Dork Hunters from Outer Space
- Jungle Book
Consolidated Balance Sheet
(in thousands of Euro)
As at As at
31st March 30th Sept
2006 2005
-------------------------------------------------------------------------------
Assets
A. Fixed and Intangible assets
--------------------
1. Intangible Assets 29,466 23,602
2. Fixed Assets 85 69
----------- ------------
29,551 23,671
B. Other Long term assets
--------------------
1. Other Assets 249 220
2. Deferred taxes 1,502 1,502
3. Deferred financing costs 623 188
----------- ------------
2,374 1,910
C. Current assets
--------------------
1. Accounts receivable, trade 885 2,048
2. Other current assets 922 1,272
3. Own shares 425
4. Cash and Cash equivalents 2,043 384
----------- ------------
4,275 3,704
-------- -------
36,200 29,285
======== =======
Liabilities
A. Shareholders Equity
--------------------
1. Common Stock 15,718 15,718
2. Additional paid in capital 8,161 8,161
3. Other comprehensive income 224 197
4. Retained earnings 1,416 0
----------- ------------
25,519 24,076
B. Long term liabilities
1. Bonds 9,532 3,851
2. Deferred tax liability 172 172
3. Deferred long term liabilities 18 22
----------- ------------
9,722 4,045
C. Short term liabilities
--------------------
1. Accrued expenses 654 903
2. Accounts payable. trade 305 261
----------- ------------
959 1,164
-------- -------
36,200 29,285
======== =======
Consolidated Statements of Operations
(in thousands of Euro except share data and number of employees)
Year to date
31 Mar 2006 31 Mar 2005
------------------------------------------------------------------------------
Revenues
Television 4,202 3,778
Consumer Brands 2,422 1,765
--------------------------
Sales Revenues 6,624 5,543
Other Revenues 554 361
--------------------------
Total Revenues 7,178 5,904
Expenses
Depreciation amortisation and Goodwill 2,004 1,714
Producer fees and other direct 612 65
operating costs
Salaries and employee benefits 1,253 812
General and administrative 1,610 2,169
------------------------------------------------------------------------------
Total expenses 5,479 4,760
------------------------------------------------------------------------------
Other Income/ (Expenses)
Interest cost 246 120
------------------------------------------------------------------------------
Income/(loss) before provision 1,453 1,024
for income tax
Provision for tax 37 -
------------------------------------------------------------------------------
Net income/(loss) 1,416 1,024
EBITDA 3,703 2,980
Earnings per share 0.09 0.07
Basic number of shares 15,717,566 15,012,487
Number of employees including
Directors at the end of the period 33 24
The Company employs, at its London studio and at suppliers in India and China,
more than 100 artists to produce its films and series.
Consolidated Statements of Cash Flows
(in thousands of Euro)
31st March 2006 31st March 2005
FY 2006 FY 2005
--------- ---------
Cash flow from Operations
Net Income 1,416 1,024
Depreciation and amortization 2,004 1,714
Deferred Taxes 0 0
------- --------
3,420 2,738
Changes in Operating assets and liabilities
Accounts receivable 1,163 (395)
Tax receivable (28)
Others current assets 350 (22)
Other long term assets (29) 1
Deferred financing costs (435) 154
Accounts payable , trade 44 607
Accruals (249) (466)
Other liabilities (4) 26
------- --------
Net cash generated by operating activities 4,260 2,615
Cash flow from investing activities
Intangible Assets/Programming rights (7,911) (4,306)
Property, equipment, and leasehold
improvement (40) (16)
------- --------
Net cash used in investing activities (7,951) (4,322)
Cash flow from financing activities
Bank overdraft and other loans 0 (3)
Convertible bond 5,681 0
Proceeds from issuance of share capital 0 (46)
Purchase of own shares (425) 0
Comprehensive income/(loss) 94 10
------- --------
Net cash provided by financing activities 5,350 (39)
Net increase/(decrease) in cash and cash
equivalents 1,659 (1,746)
Cash and cash equivalents at beginning of
period 384 2,220
------- --------
Cash and cash equivalents at end of period 2,043 474
------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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