GNUS: Genius Brands International Reports Second Quarter Fiscal 2012 Results

GNUS: Genius Brands International Reports Second Quarter Fiscal 2012 Results

Revenues for Quarter Ended June 30, 2012 Increase 96% to $1,641,798 From Quarter Ended June 30, 2011

SAN DIEGO, Aug. 15, 2012 (GLOBE NEWSWIRE) — Genius Brands International, Inc. (GNUS), developer and marketer of entertainment products including the award-winning Baby Genius(R) line of music and education-based products and characters, today announced financial results for its second quarter of fiscal 2012 ended June 30, 2012.

Highlights for the three and six months ended June 30, 2012 included:

  • Q2 2012 revenues increased by 96% to $1,641,798 from Q2 of 2011
  • For the six months ended June 30, 2012 revenues increased by 25% to $2,672,745 from $2,142,912 in the same period of 2011
  • Q2 2012 net loss narrowed by 24% to $(583,247) or $(0.01) per common share, compared to $(765,351) or $(0.01) in Q2 of 2011
  • For the six months ended June 30, 2012 net loss increased by 27% to $(1,189,914) or $(0.02) as compared to a net loss of $(938,155) or $(0.02) per common share in the same period of 2011
  • Stockholders’ equity increased to $487,075 for the period ended June 30, 2012 from a stockholders’ deficit of $(1,120,633) on December 31, 2011

Revenues for the three months ended June 30, 2012 grew by 96% or $806,062 to $1,641,798, as compared to revenues of $835,736 in the same period of the prior year. Revenue growth resulted from an increase in Genius Brands product sales and the Company’s sales of third party licensed products through Genius Brands’ distribution network.

For the six month period ended June 30, 2012 revenues increased by 25% or $529,833 to $2,672,745 from $2,142,912 in the same period of 2011, driven by an increase in sales of third party licensed products through the Company’s distribution network, which was offset by a decrease in royalty revenues as a result of a gap in toy licensing revenues. Genius Brands’ prior toy licensing agreement with Battat Incorporated was terminated and the Company has not received royalty payments from Battat since the three months ended March 31, 2011. The Company has signed a new toy licensing agreement with JAKKS Pacific’s Tollytots(R) division which is currently launching a Baby Genius(R) branded toy line that is now available in select stores.

“We are pleased with the revenue growth we’ve experienced in the second quarter despite the fact that our royalty revenues were low, compared to historic levels. As our Baby Genius(R) branded line of music and early learning toys from our new worldwide master toy licensee JAKKS Pacific are now starting to be available on retail shelves, we expect to begin realizing royalty revenues from this toy line in the third and fourth quarters of this year,” stated Genius Brands Chairman and CEO Klaus Moeller.

“As a result of our agreement with Nokia, the first two mobile apps in an extensive series of Genius branded early learning and kindergarten readiness apps are also slated to launch this quarter with more to follow in the fourth quarter. We believe the mobile app market opens the potential for a significant new high margin revenue stream for Genius Brands by leveraging and extending our brand assets as well as our strengths in developing content that both entertains and educates young children,” added Moeller.

Operating expenses for the second quarter of 2012 were $1,000,701, as compared to operating expenses of $1,007,158 in the second quarter of 2011, a decline of .6% or $6,457. For the six months ended June 30, 2012 operating expenses were $1,865,688, a decline of 2% or 46,398 as compared to operating expenses of $1,912,086 for the same period of the prior year.

The Company’s total assets increased and total liabilities decreased on June 30, 2012 as compared to December 31, 2011. Total assets grew to $3,465,795 on June 30, 2012 from $2,652,257 on December 31, 2011. Total liabilities decreased to $2,978,720 on June 30, 2012 from $3,772,890 on December 31, 2011.

For further information please see Genius Brands’ full 10Q filing at www.sec.gov.

About Genius Brands

Genius Brands International, Inc. is the developer and marketer of entertainment products including the award winning Baby Genius(R) line of music and education-based products and characters. The Company is developing and marketing a growing line of Genius branded products that entertain and educate the whole family. Baby Genius(R) awards include: Mom’s Choice Award, The National Parenting Center Seal of Approval, The Toy Insider Best Toddler Toys, Dr. Toy 100 Best Children’s Products, NAPPA Honors Award, iParenting Excellent Product Award, Creative Child Preferred Choice Award, Latino DVD Awards, iParenting Media Award, Film Advisory Board Award of Excellence, Kids First! Quality Children’s Media Endorsement, Parents Magazine 2002 “Video of the Year,” and Best “Under 3” QSR Program 2004/2005 from Restaurant Magazine. Baby Genius(R) products are available at most major retailers and have international exposure in over 40 countries. For brand information please visit www.babygenius.com. For Company information please visit http://ir.stockpr.com/babygenius/overview.

The Genius Brands International, Inc. logo is available athttp://www.globenewswire.com/newsroom/prs/?pkgid=11441

Forward-looking statements

This release contains forward-looking statements made by or on behalf of Genius Brands International Inc. All statements that address operating performance that the Company expects will occur in the future, including statements relating to operating results for fiscal 2011 and beyond, revenue growth, future profitability or statements expressing general optimism about future operating results, are forward-looking statements. These forward-looking statements are based on management’s current views and we cannot assure that anticipated results will be achieved. These statements are subject to numerous risks and uncertainties, including, among other things, uncertainties relating to the Company’s success in judging consumer preferences, financing the Company’s operations, entering into strategic partnerships, engaging management, seasonal and period-to-period fluctuations in sales, failure to increase market share or sales, inability to service outstanding debt obligations, dependence on a limited number of customers, increased production costs or delays in production of new products, intense competition within the industry, inability to protect intellectual property in the international market for our products, changes in market condition and other risks and uncertainties indicated from time to time in our filings with the U.S. Securities and Exchange Commission (SEC) available via the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements and are encouraged to consider the risk factors that could affect actual results. The Company disclaims any intent to update forward-looking statements.

Genius Brands International, Inc.
Consolidated Balance Sheets
June 30, 2012 (unaudited) and December 31, 2011 (audited)
ASSETS 6/30/2012 12/31/2011
Current Assets:
Cash $ 1,191,509 $ 405,341
Accounts Receivable, net 762,163 1,021,039
Inventory 221,510 340,782
Prepaid and Other Assets 317,258 168,486
Total Current Assets 2,492,440 1,935,648
Property and Equipment, net 29,206 32,894
Capitalized Product Development in Process 353,194 278,696
Intangible Assets, net 334,915 405,019
Debenture Issuance Costs 256,040
Total Assets $ 3,465,795 $ 2,652,257
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable $ 547,675 $ 1,008,460
Accrued Expenses 377,082 408,684
Accrued Salaries and Wages 493,277 193,519
Accrued Interest – Debentures 19,049 19,049
Unearned Revenue 482,746
Total Current Liabilities 1,919,829 1,629,712
Long Term Liabilities:
Debenture (Net of discount) and Accrued Interest 623,226
Notes Payable — Related Parties and Accrued Interest 435,665 2,143,178
Total Liabilities 2,978,720 3,772,890
Stockholders’ Equity (Deficit)
Common Stock, $0.001 par value, 250,000,000 shares authorized; 71,862,617 and 60,698,815 shares issued and outstanding, respectively 71,863 60,699
Additional Paid in Capital 9,740,175 6,959,083
Accumulated Deficit (9,324,963) (8,135,049)
Total Genius Brands International, Inc. Stockholders’ Equity (Deficit) 487,075 (1,115,267)
Noncontrolling Interest (5,366)
Total Equity 487,075 (1,120,633)
Total Liabilities & Stockholders’ Equity (Deficit) $ 3,465,795 $ 2,652,257
Genius Brands International, Inc.
Consolidated Statements of Operations
Periods Ending June 30, 2012 and 2011 (unaudited)
Three Months Ending Six Months Ending
6/30/2012 6/30/2011 6/30/2012 6/30/2011
Revenues:
Product Sales $ 1,601,212 $ 791,568 $ 2,602,463 $ 1,684,859
Licensing & Royalties 40,586 44,168 70,282 458,053
Total Revenues 1,641,798 835,736 2,672,745 2,142,912
Cost of Sales (Excluding Depreciation) 1,290,745 575,814 2,024,876 1,129,722
Gross Profit 351,053 259,922 647,869 1,013,190
Operating Expenses:
Product Development 2,622 2,156 8,302 7,419
Professional Services 30,693 77,907 104,568 144,767
Rent Expense 9,431 26,321 18,863 58,643
Marketing & Sales 239,563 142,120 429,120 506,672
Depreciation & Amortization 36,974 54,265 75,689 109,094
Salaries and Related Expenses 437,973 327,949 847,337 634,236
Stock Compensation Expense 61,419 304,596 123,379 306,367
Other General & Administrative 182,026 71,844 258,430 144,888
Total Operating Expenses 1,000,701 1,007,158 1,865,688 1,912,086
Loss from Operations (649,648) (747,236) (1,217,819) (898,896)
Other Income (Expense):
Other Income 86 10,641 171 21,059
Interest Expense (3,987) (5,147) (1,145)
Interest Expense — Related Parties (5,978) (29,733) (38,033) (63,594)
Gain (loss) on extinguishment of debt 76,280 76,280
Net Other Income (Expense) 66,401 (19,092) 33,271 (43,680)
Loss before Income Tax Expense and Noncontrolling Interest (583,247) (766,328) (1,184,548) (942,576)
Income Tax Expense
Net Loss (583,247) (766,328) (1,184,548) (942,576)
Acquisition of Noncontrolling Interest (5,366)
Net Loss attributable to Noncontrolling Interest 977 4,421
Net Loss attributable to Genius Brands International, Inc. $ (583,247) $ (765,351) $ (1,189,914) $ (938,155)
Net Loss per common share $ (0.01) $ (0.01) $ (0.02) $ (0.02)
Weighted average shares outstanding 62,312,162 59,490,691 63,277,002 56,215,116

 

Contact:
Investor Relations Contact:
Mr. Andrew Haag
Managing Partner
IRTH Communications, LLC
Tel: +1-866-976-IRTH (4784)
E-Mail: Andrew@irthcommunications.com
Website: www.irthcommunications.com
Media Contact:
John Russel
RUSSEL Public Relations
Tel: +1-818-561-5072
Cell: 818-516-8572
E-Mail: JRussel@russelprla.com

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