Marvel Enterprises Inc. has released its financial results for its fourth quarter and year ended December 31, 2003, in addition to a three-for-two stock split in the form of a stock dividend of one additional share of the company's common stock for every two shares held. The additional shares will be distributed on March 26, 2004 to stockholders of record on March 12, 2004.
Despite a slight drop in fourth quarter sales, Marvel sales for the year were up 16% to $347.6 million and operating margins rose from 27% to 48%. However, the firm lowered its expectations for 2004 because the company will move up in tax brackets from 36% to 41%, but still projects earnings of $420 to $435 million, due to the anticipated licensing and toy revenues from SPIDER-MAN 2. In addition, the company hopes to see revenue from its three other properties jumping to the big screen in 2004 THE PUNISHER with Lions Gate, BLADE: TRINITY with New Line and MAN-THING with Artisan.
Marvel's president/ceo, Allen Lipson, commented, "The dramatic increase in full year operating margins, rising from 27% in 2002 to 48% in 2003, highlights the powerful leverage in our business model. Our full year 2003 results are a direct reflection of our continued success in building the brand awareness of, and consumer demand for, entertainment projects and consumer products based on our vast library of characters. These strong results are proof that high quality and relevant content can translate directly into success in the entertainment and consumer products industries. The decision to split the stock reflects our interest in creating a more affordable share price, which will enable a broader base of investors and Marvel fans to purchase Marvel stock, while also enhancing long-term liquidity in our shares. As each Marvel brand is introduced into mainstream popular culture via a variety of media including film, TV, comics, videogames and DVD, we are creating a growing portfolio of attractive licensing franchises. This has a long-term layering effect, which builds the value of the Marvel brand and provides the 'content clout' necessary to continue increasing shareholder value."
Marvel Enterprises is a leading global character-based entertainment licensing company, with the world's largest character library of more than 4,700 properties. Principally focused on licensing, Marvel has talented creative teams in its Consumer Products (licensing), Marvel Studios, Marvel Comics and Toy Biz divisions. These divisions support the development of a broad range of entertainment (film/television/DVD), consumer products, toys, comics/trade paperbacks and promotions based on the Marvel characters. Visit http://www.marvel.com for more information.
Rick DeMott
Animation World Network
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