BKN International AG
BKN International AG:announces business update as of 30 June 2009- EBIT of EUR2.4 million and EUR1.3 million positive Free Cash Flow.
BKN International AG / Miscellaneous Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- BKN International AG, a media and entertainment company specializing in the children's market, provided today a business update through 30 June 2009 so as to provide as much transparency as possible to the market in these challenging times. a.Total sales achieved EUR8.07 million or 6.1% lower than the corresponding period in 2008 (EUR8.6 million) b.Total Gross Income achieved EUR8.68 million or 7.5% lower than 2008 (EUR9.4 million) c.Salaries and general operating expenses are 16% lower at EUR3.1 million (EUR3.7 million) d.Total expenses, including higher amortization costs due to new and more prudent policy, are flat compared to 2008 at EUR6.3 million (EUR6.3 million) e.Earnings before interest and tax (EBIT) achieved EUR2.4 million or 25% less than 2008 (EUR3.1 million) f.Net income achieved EUR0.8 million or 56% less than 2008 (EUR1.9 million) g.Shareholder's Equity achieved EUR46.5 million or approximately 1% more than March 31 2009 (EUR45.9 million). h.EBITDA of EUR5.5million was 3% down on corresponding period in 2008 (EUR5.6 million) i.Investment in film rights is EUR4.2 million versus EUR10.95 million in 2008 or approximately 60% less capital expenditure. j.The Company therefore achieved positive Free Cash Flow of EUR1.3 million versus negative free cash generation of EUR5.3 million in 2008. k.Working capital ratio (current assets to current liabilities) is 118 versus 74 in 2008 corresponding period. . The Company has been able to deliver these results in challenging market conditions and with significantly reduced capital expenditures in film rights or production. The Company continues to produce and deliver high quality new animated projects: *In May, the Company funded, produced and delivered in full the project entitled Stone Age (52 x 11') at a value of EUR5.25 million. The property can be seen at www.stoneageseries.com. *In June, the Company delivered all of the key development materials for the property entitled Joshua Blake: The Agency (40 x 24') which can be seen at www.joshuablake-theagency.com. The Company is now meeting with all major worldwide customers for this project to be delivered in 2011 and the management board continues to believe that this project will have a material impact on its financial results in the next two years. In the quarter and still ongoing, BKN New Media SL ('BKN SL') in Barcelona has closed loan agreements with Santander Bank, Caja Madrid and Banco Sabadell Atlantico on top of its existing facility with Deutsche Bank while BKN New Media Ltd ('BKN LTD') in London has closed overdraft agreements with RBS and has secured same with Coutts & Co. The Company has guaranteed some of the loan agreements on behalf of the subsidiaries. In the quarter, the Company also formally and legally transferred the Zorro property to BKN SL and a package of seven animated films to BKN LTD. In addition, the Joshua Blake: The Agency property is owned and controlled by BKN LTD. As of 30 June 2009, BKN SL held film assets of EUR12 million, BKN LTD of EUR3.2 million and the Company of EUR50.7 million for a grand total of EUR65.9 million versus EUR61.6 million in the corresponding period last year. Less than 40% of these film assets have been pledged to banks to secure our existing debt giving the Company a significant amount of room to negotiate good deals and better rates, where possible. Separately, the Company is in various discussions with investors regarding the issuance of a Convertible Bond but this is not yet closed. There is no guarantee however that these negotiations will be successful. The Company wants to increase its liquidity position to be better positioned for the challenging markets. The Company's overall debt is not expected to increase as the Company is obligated to repay certain amounts of existing loans to Commerzbank each quarter. It is the stated goal of the management board to maintain and not increase current debt levels. BKN has launched its own channel on You Tube (www.youtube.com/BKNKIDZ) where viewers can watch episodes of their favorite BKN shows in multi-languages including the pilot episode of Joshua Blake: The Agency. In terms of outlook, the management board continues to see challenging markets in general and specifically in the space due to broadcasters reducing programming acquisition budgets due to lower advertising revenues. However, a number of the Company's competitors have significantly reduced their productions or new offerings or have been merged or are no longer operating. This is giving the Company a big competitive advantage as the Company is launching major new product. Assuming that the Company can secure the proper financing to meet its short and medium term needs, the outlook looks sufficiently positive, especially in late 2010 and 2011 when Joshua Blake: The Agency is delivered to the market and the longer term objectives are reached. 21.July 2009 The Management Board BKN International AG --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: About BKN: BKN International AG is a global animation group 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 operates all over the world. BKN has successfully negotiated distribution deals in over 90 countries and territories in the children's programming market. The Group's Film Library includes: -Dork Hunters from Outer Space(c) -Pocket Penguin Adventures(c) -Extreme Dinosaurs(c) -Roswell Conspiracies(c) -Kong - The Animated Series(c) -Stone Age(c) -Legend of the Dragon(c) -UBOS(c) -Pocket Dragon Adventures(c) -Zorro: Generation Z(c) Anfragen: BKN International AG Allen Bohbot, Vorstandsvorsitzender Tel: +49 221 12608214 allen.bohbot@bknkids.com Wayne Mowat, Finanzvorstand Tel: +44 20 7269 8687 wayne.mowat@bknkids.com Sascha Ziemann, Finance & Investor Relations Manager Tel: +49 221 12608211, sascha.ziemann@bknkids.com Laura Tapias, Managing Director Tel: +34 93 368 18 00 laura.tapias@bknkids.com Nicola Andrews, Managing Director Tel: +44 20 7269 8677 nicola.andrews@bknkids.com Matthew Graham-Clare, Managing Director Tel: +44 20 7269 8678 matthew.graham-clare@bknkids.com www.bknkids.com Designated Sponsor in Germany: Close Brothers Seydler Steven Rockenhaeuser Tel: +49 69-92054-138 steven.rockenhaeuser@cbseydler.com 21.07.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: BKN International AG Gustav-Heinemann-Ufer 56 50968 Köln Deutschland Phone: +49 (0)221 126082 0 Fax: +49 (0)221 126082 20 E-mail: investor-relations@bknkids.com Internet: www.bknkids.com ISIN: DE0005290704 WKN: 529070 Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, München, Düsseldorf, Stuttgart, Hamburg End of News DGAP News-Service ---------------------------------------------------------------------------
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