Marvel Entertainment Inc. (MVL) filed Quarterly Report for the period ended 2009-09-30.
With a library of over 5000 characters Marvel Entertainment Inc. is one of the world's most prominent character-based entertainment companies. Marvel's operations are focused on utilizing its character franchises in licensing entertainment publishing and toys. Areas of emphasis include feature films DVD/home video consumer products video games action figures and role-playing toys television and promotions. Marvel's strategy is to leverage its character franchises in a growing array of opportunities around the world. Marvel Entertainment Inc. has a market cap of $3.93 billion; its shares were traded at around $50.01 with a P/E ratio of 21 and P/S ratio of 5.8. Marvel Entertainment Inc. had an annual average earning growth of 15.4% over the past 5 years.
Highlight of Business Operations:
Our consolidated net sales of $105.7 million for the third quarter of 2009 were $76.8 million lower than net sales in the third quarter of 2008, primarily reflecting decreases in the Film Production segment and Licensing segment net sales.
Licensing segment net sales decreased $9.2 million during the third quarter of 2009, reflecting a $6.7 million decrease in foreign licensing revenue and a $5.8 million decrease in Joint Venture revenue (to $2.4 million) related to the 2007 release of Spider-Man 3. These decreases were primarily due to the recognition in the third quarter of 2008 of merchandise licensing revenue related to the Iron Man and The Incredible Hulk feature films, as well as a decrease in revenue from the Spider-Man merchandising joint venture. The third quarter of 2009 Licensing segment net sales included $6.3 million of royalty and service fee revenues from Hasbro compared with $12.0 million included in the third quarter of 2008, a period that benefited from the Summer 2008 releases of Iron Man and The Incredible Hulk movies. These decreases were partially offset by a $1.9 million increase in Studio licensing revenue, primarily associated with the X-men movie properties.
Net sales from the Publishing segment decreased $2.0 million to $32.0 million for the three months ended September 30, 2009, primarily relating to a $2.7 million decrease in custom publishing sales and a $0.5 million decrease in advertising sales as compared to the same period in 2008. These decreases were offset by a $1.6 million increase in our sales of trade paperbacks to the book market, as a result of an increase in new titles released during the current quarter.
Net sales from the Film Production segment, related to Iron Man and The Incredible Hulk, decreased $65.4 million to $24.8 million for the three months ended September 30, 2009. Net sales from the Film Production segment in the third quarter of 2009 primarily reflect the recognition of revenues associated with the international pay TV window for Iron Man and the domestic pay TV window for The Incredible Hulk as well as contributions from DVD sales for both Iron Man and The Incredible Hulk, and, in the third quarter of 2008, reflected theatrical box office revenues from the theatrical release of these films, which were both released in the second quarter of 2008, and the opening of the home video window in certain international pre-sold territories for Iron Man.
Consolidated cost of revenues decreased $24.5 million to $35.9 million for the third quarter of 2009 compared with the third quarter of 2008, primarily reflecting the decrease in amortization of film inventory recorded in our Film Production segment. Our consolidated cost of revenues as a percentage of sales increased slightly to 34% during the third quarter of 2009 from 33% in the comparable 2008 period as a result of the higher cost of sales associated with our Film Production segment net sales.
MVL is in the portfolios of Richard Aster Jr of Meridian Fund, Ron Baron of Baron Funds.
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