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MARVEL REPORTS 3Q97 RESULTS
NEW YORK, NOVEMBER 19, 1997 — Marvel Entertainment Group, Inc. (NYSE:MRV - news) today reported results for the third quarter ended September 30, 1997. As a result of the failure of Toy Biz, Inc. (NYSE: TBZ - news), to report its financial information to Marvel, the Company did not include Toy Biz results for the quarter ended September 30, 1997. For comparative purposes for this news release, Toy Biz financial information has been eliminated for the third quarter of 1996.
For the third quarter ended September 30, 1997 net revenues were $91.9 million compared to $126.0 million for the same period in 1996. The net loss for the third quarter of 1997 was $30.6 million or $.30 per share vs. $15.2 million or $.15 per share for the same period in 1996.
Losses for the third quarter can be primarily attributed to the continued decline in demand for trading cards sold by Fleer/SkyBox, general market softness in sticker products sold by the Company's Italian subsidiary Panini S.p.A, and a decrease in licensing revenues. Operations continued to be hampered by the Chapter 11 proceedings.
Although the Company continues to incur losses, a significant portion of these losses are non-cash charges, provisions and certain reorganization expenses, payments of which have been suspended by the Bankruptcy Court. Through June 30, 1997 Marvel had borrowed approximately $94.2 million under its now expired DIP loan. Since then, Marvel has repaid $3 million in principal, the proceeds from the sale of a portion of its confectionery business, and has paid interest through December 31, 1997 as required by the DIP lenders. The Company believes it has sufficient cash to meet its near term operational requirements, and continues to pursue additional DIP (debtor- in-possession) financing. During the third quarter the Company arranged for a separate credit facility for Panini S.p.A. in the amount of 27 billion lire (approximately $15.0 million) for Panini's working capital purposes.
"Reducing overhead and streamlining operations continues to be the Company's focus," said Mr. Joseph Calamari, President of Marvel Entertainment Group. "The Company is evaluating various restructuring activities to further improve its operating efficiency throughout all of its businesses. We are also reviewing and, where necessary, renegotiating television and movie contracts to assure that these agreements provide sound economic benefits to Marvel. In addition, we have initiated new marketing programs in publishing, promotions
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