Exhibit 99.1
| Marvel will host a webcast today for all investors at
9:00 a.m. EST available at: www.Marvel.com/webcasts or
www.earnings.com |
MARVEL REPORTS 2006 EPS OF $0.67
- Maintains Upper End of 2007 EPS Guidance Range at $1.55 and
Adjusts Low End to $1.30, to Reflect Higher Effective Tax Rate -
- Marvel’s First Self-Produced Feature Film, Iron Man,
Scheduled to Begin Principal Photography on March 12 -
New York, New York – February 26, 2007 -- Marvel Entertainment, Inc. (NYSE: MVL), a global character-based entertainment and licensing company, today reported operating results for the fourth quarter and full year ended December 31, 2006.
For Q4 2006, Marvel reported net income of $11.7 million, or $0.14 per diluted share, net of a $0.6 million, or $0.01 per diluted share, charge for FAS 123R stock option-based payments. For the twelve months ended December 31, 2006 Marvel reported net income of $58.7 million, or $0.67 per diluted share, net of a $3.5 million, or $0.04 per diluted share, charge for FAS 123R stock option-based payments. These results compare to net income of $25.9 million, or $0.26 per diluted share, and net income of $102.8 million, or $0.97 per diluted share, in the year-ago fourth quarter and full year 2005, respectively, which did not include any share-based payment expense.
Marvel Entertainment, Inc. Segment Net Sales/Operating Income (in Millions) |
| 12/31/06 12/31/05 | 12/31/06 12/31/05 |
Licensing: Net Sales | $25.5 | $ 81.7 | $127.2 | $ 230.1 |
Operating Income (1) | 14.5 | 55.4 | 76.1 | 143.4 |
Publishing: Net Sales | 28.6 | 23.4 | 108.5 | 92.4 |
Operating Income | 11.6 | 8.6 | 44.1 | 36.4 |
Toys: Net Sales | 31.1 | 12.0 | 116.1 | 68.0 |
Operating Income (2) | 6.5 | (12.5) | 21.1 | 15.5 |
Film Production: Operating Costs (3) | (1.5) | 0.0 | (6.0) | 0.0 |
Corporate Overhead: | (4.7) | (6.7) | (22.7) | (24.1) |
TOTAL NET SALES | $85.2 | $ 117.1 | $351.8 | $390.5 |
TOTAL OPERATING INCOME | $26.4 | $ 44.8 | $112.6 | $ 171.2 |
| (1) | The 2005 twelve-month period includes the impact of a $10 million, one-time charge related to the settlement of litigation with Stan Lee. |
| (2) | The 2005 three and twelve-month periods include the impact of a $12.5 million, one-time charge related to the early termination of a license agreement with Toy Biz Worldwide. |
| (3) | These costs principally consist of compensation related to personnel devoted to the Company’s film production efforts, which efforts commenced late in the fourth quarter of 2005. |
Marvel’s Chairman, Morton Handel, commented, “We are pleased with the strong cash flows generated by our operations during 2006, a transitional year for the Company. Reflecting the unique strengths of our intellectual property assets and business model, in 2006 Marvel generated approximately $158 million in operating cash flow, inclusive of $15 million spent on pre-production for future feature film slate productions.
“We remain optimistic about the outlook for 2007 and beyond. 2007 has three feature films produced in conjunction with studio partners including Ghost Rider, which easily captured the #1 spot in its opening and second weekends and set an all-time domestic box office record for President’s Day weekend.
Marvel Entertainment Q4 2006 Results, 2/26/07 | page 2 of 8 |
Ghost Rider has achieved total domestic box office receipts of over $76 million since its February 16th release and worldwide box office of approximately $95 million. We believe Ghost Rider’s performance highlights the power of the Marvel brand and consumer demand for films based on our comic book characters. Later this year, we should benefit from high-profile sequels to our Spider-Man and Fantastic 4 movie franchises. Operating results in 2007 should also benefit from strong contributions from Marvel-branded toys distributed by Hasbro.
“We are pleased to announce that we intend to launch the next stage of our evolution as a global entertainment company by commencing principal photography on our Iron Man film on March 12th. The profile of the Iron Man character and the Marvel brand have been instrumental in attracting top-tier talent to this project. Later this year, we also plan to commence principal photography on our second self-produced feature film, The Incredible Hulk. With both of these movies scheduled for summer 2008 release and work on other Marvel-produced films also underway, future growth prospects for Marvel are strong.”
Fourth Quarter Segment Review:
• | As anticipated, Licensing Segment net sales declined 69% from the year-ago period to $25.5 million, primarily due to lower contributions from domestic licensing and Marvel’s Spider-Man merchandising joint venture (JV) with Sony. The $56.1 million reduction in domestic merchandise licensing sales primarily reflects the inclusion of a $50 million license fee for the extension of the Activision license in Q4 2005. The Spider-Man JV had sales of only $0.6 million in Q4 2006, which were primarily related to licensing overages associated with sales of the Spider-Man 2 video game. International licensing sales increased approximately $3.2 million from Q4 2005 levels, principally due to more robust overages. |
Marvel Entertainment, Inc. Licensing Sales by Division (Unaudited) (in millions) |
| Three Months Ended | | Twelve Months Ended |
| 12/31/06 | 12/31/05 | | 12/31/06 | 12/31/05 |
Domestic Consumer Products | $ 12.0 | $ 68.1 | | $ 65.1 | $145.3 |
International Consumer Products | 10.3 | 7.1 | | 42.5 | 36.5 |
Spider-Man L.P. (Domestic and International) | 0.6 | 4.3 | | 4.1 | 24.7 |
Marvel Studios | 2.7 | 2.2 | | 15.6 | 23.6 |
Total Licensing Segment | $ 25.5 | $ 81.7 | | $127.2 | $230.1 |
The lower operating margin in the licensing division of 57% in Q4 2006, as compared to a margin of 68% in the prior-year period, reflects higher expenses, coupled with lower revenues in the Q4 2006 period.
• | Marvel’s Publishing Segment net sales increased 22% or $5.2 million from the year-ago period to $28.6 million principally due to higher sales of trade paperbacks and hard cover books sold into the direct and book market channels. Comic book sales were bolstered by strong sales associated with Civil War, a high-profile special series that has tie-ins across many established comic book series. Publishing results in the period also benefited from strong year-over-year growth in custom publishing. Publishing segment operating income in Q4 2006 was $11.6 million with an operating margin of 41%, compared to $8.6 million in operating income and an operating margin of 37% in the prior-year period. The improvement in operating margin principally reflects the benefit of higher sales on a relatively stable cost structure. |
• | The transition in Marvel’s Toy Segment net sales from toys produced by a master toy licensee in 2005 to toy production by Marvel in 2006 contributed to an expected year-over-year increase in segment revenues. Sales in the quarter increased 159% versus the prior year, consisting primarily of core classic Marvel character lines. In addition, there was $5.2 million in royalties and service fees related to initial shipments made by Hasbro, Marvel’s new toy licensee. Sales recorded in 2006 as wholesale sales subject to the corresponding Cost of Revenues expense were the principal factor in operating margins of 21% for the fourth quarter of 2006. Operating margins in Q4 2005 were negative due to the inclusion of a non-recurring expense of $12.5M in Q4 2005 for the early termination of a license agreement with Toy Biz Worldwide. |
Marvel Entertainment Q4 2006 Results, 2/26/07 | page 3 of 8 |
Marvel Entertainment, Inc. Toy Sales Summary (Unaudited) (in millions) |
| Three Months Ended | | Twelve Months Ended |
| 12/31/06 | 12/31/05 | | 12/31/06 | 12/31/05 |
Marvel Toy Net Sales | 25.9 | $ 3.4 | | 110.9 | $ 16.2 |
Toy License: | | | | | |
- Toy Royalties | 2.9 | 4.3 | | 2.9 | 25.3 |
- Fees for Services Rendered | 2.3 | 4.3 | | 2.3 | 26.5 |
Total Toy Segment | $31.1 | $ 12.0 | | $116.1 | $ 68.0 |
Balance Sheet Update:
As of December 31, 2006, Marvel had cash and equivalents of $40.5 million (including $8.5 million in restricted cash) and $17 million in borrowings under its $125 million credit facility with HSBC Bank. During the fourth quarter of 2006 Marvel did not repurchase any additional shares under its repurchase program. As of December 31, 2006, the Company had $50.0 million remaining under its $100 million share repurchase authorization announced June 5, 2006.
Marvel Studios Entertainment Pipeline
(Development and release dates for licensed properties are controlled by studio partners) |
Licensed Marvel Character Feature Film Line-Up For 2007 |
Film/Character | Studio/Distributor | Status |
Ghost Rider | Sony | Released February 16, 2007 |
Spider-Man 3 | Sony | Post-production, May 4, 2007 release |
Fantastic Four: Rise of the Silver Surfer | Fox | Post-production, June 15, 2007 release |
Film Projects Being Developed by Marvel (Partial List) |
Film/Character | Studio | Status |
Iron Man | Marvel | Principal photography to begin March 12th; May 2, 2008 release |
The Incredible Hulk | Marvel | Pre-production, June 13, 2008 release |
Ant-Man | Marvel | Writer and director engaged |
Captain America | Marvel | Writer engaged |
Nick Fury | Marvel | Writer engaged |
Thor | Marvel | Writer engaged |
The Avengers | Marvel | Writer engaged |
Marvel Character Animated TV Projects in Development |
Character | Studio | Status |
Fantastic Four | Moonscoop SAS (France) | 26, 30 minute episodes airing in 2006/2007; U.S. distribution started on Cartoon Network on September 2, 2006 and should continue in 2007. (1) |
Wolverine and
the X-Men | First Serve Toonz (India) | 26, 30 minute episodes in development |
Iron Man | Method Films (France) | 26, 30 minute episodes in development |
Marvel Entertainment Q4 2006 Results, 2/26/07 | page 4 of 8 |
Marvel Character Animated Direct-to-Video Projects in Development |
Partnership with Lions Gate to develop, produce and distribute original animated DVD features. Recent and future titles include:
The Invincible Iron Man (released January 2007)
Doctor Strange (scheduled for release in 2007). (1) |
2007 Video Game Releases
(Release dates controlled by Publishing partner) |
Take-Two | Ghost Rider | Released Q1 2007 |
Konami | Marvel Vs. Card Game | Q1 2007 |
Activision | Spider-Man 3 | Q2 2007 |
Take-Two | Fantastic Four II | Q2 2007 |
(1) | Represents a change from the previously supplied schedule |
Updated Financial Guidance:
As noted in the table below, Marvel maintained its 2007 upper guidance ranges and revised the low end of its net income and diluted EPS guidance ranges based on an expectation for a higher full-year effective tax rate. The effective tax rate currently anticipated for 2007 is 40%, compared to the effective rate of 37% on which the Company’s 2007 guidance was previously based. This change reflects an expected effective tax rate that is in line with our 2006 actual rate and reflects a continuing trend in higher state and local taxes. It also includes the anticipated effects of the January 1, 2007 adoption of the FASB’s Interpretation No. 48 "Accounting for Uncertainty in Income Taxes.” At the time Marvel gave initial 2007 guidance, the Company noted that it was evaluating the effect of the adoption of the FASB’s Interpretation No. 48 and had not yet given effect to any change in its tax provision resulting from that new rule. Marvel expects to continue to refine its tax provision as it implements this new rule during its first year in effect. A few key drivers behind Marvel’s 2007 guidance are highlighted below.
Marvel Entertainment, Inc. – Financial Guidance |
(in millions, except per-share amounts) | Updated 2007
Guidance | Previous 2007
Guidance (1) | | 2006
Actual | |
Net sales | $375 - $435 | $375 - $435 | | $352 | |
Net income | $111 - $132 | $115 - $132 | | $59 | |
Diluted EPS | $1.30 - $1.55 | $1.35 - $1.55 | | $0.67 | |
(1) Previous 2007 guidance ranges were provided on November 6, 2006.
Primary 2007 Financial Guidance Drivers:
• | Expected strong Spider-Man movie merchandise licensing triggered by the theatrical release of the Spider-Man 3 movie. |
• | Toy license contributions related to Marvel’s toy license agreement with Hasbro. |
• | Initial film license revenue contributions from feature films slated for release in 2007. |
• | Strong contributions from domestic and international licensing revenues. |
• | Strong growth in interactive revenues from anticipated license fees in excess of minimum guarantees. |
• | Continued, modest top-line and bottom-line growth from the publishing division. |
• | An estimated effective tax rate of 40% in 2007 as noted above. |
• | Marvel’s guidance is based on 85.2 million diluted shares outstanding for 2007 and does not reflect any prospective share repurchase activity in 2007. |
Marvel cautions investors that variations in the timing of licenses and entertainment events, the timing of their revenue recognition, and their level of success may result in variations and uncertainty in forecasting the Company’s financial results. These factors could have a material impact on year-over-year and sequential quarterly results comparisons as well as Marvel’s ability to achieve the financial performance included in its financial guidance.
Marvel Entertainment Q4 2006 Results, 2/26/07 | page 5 of 8 |
About Marvel Entertainment, Inc.
With a library of over 5,000 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. Rooted in the creative success of over sixty years of comic book publishing, Marvel's strategy is to leverage its character franchises in a growing array of opportunities around the world. For more information visit www.marvel.com.
Except for any historical information that they contain, the statements in this news release regarding Marvel's plans are forward-looking statements that are subject to certain risks and uncertainties, including a decrease in the level of media exposure or popularity of Marvel's characters, financial difficulties of Marvel's licensees, changing consumer preferences, delays and cancellations of movies and television productions based on Marvel characters, transition difficulties between licensees, toy-production delays or shortfalls, continued concentration of toy retailers, toy inventory risk, significant appreciation of Chinese currency against other currencies and the imposition of quotas or tariffs on products manufactured in China.
In addition, in connection with Marvel Studios’ film production operations, including those related to the slate of feature films Marvel plans to produce on its own with proceeds from its $525 million film slate facility (the “Film Facility”), the following factors, among others, could cause Marvel’s or Marvel Studios’ financial performance to differ materially from that expressed in any forward-looking statements: (i) Marvel Studios’ potential inability to attract and retain creative talent, (ii) the potential lack of popularity of Marvel’s films, (iii) the expense associated with producing films, (iv) union activity which could interrupt film production, (v) that Marvel Studios has not, in the past, produced film projects on its own, (vi) changes or disruptions in the way films are distributed, including a decline in the profitability of the DVD market, (vii) piracy of films and related products, (viii) Marvel Studios’ dependence on a single distributor, (ix) that Marvel will depend on its distributor for the implementation of internal controls related to the accounting of film-production activities, (x) Marvel’s potential inability to meet the conditions necessary for an initial funding of a film under the Film Facility, (xi) Marvel’s potential inability to obtain financing to make more than four films if certain tests related to the economic performance of the film slate are not satisfied (specifically, an interim asset test and a foreign pre-sales test) and (xii) fluctuations in reported income or loss related to the accounting of film-production activities.
These and other risks and uncertainties are described in Marvel's filings with the Securities and Exchange Commission, including Marvel's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Marvel assumes no obligation to publicly update or revise any forward-looking statements.
For further information contact:
Matt Finick – SVP Corporate Development | David Collins, Richard Land |
Marvel Entertainment, Inc. | Jaffoni & Collins |
mfinick@marvel.com | mvl@jcir.com |
Marvel Entertainment Q4 2006 Results, 2/26/07 | page 6 of 8 |
MARVEL ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(unaudited)
| | Three Months
Ended | | | | Twelve Months
Ended | |
| | December 31, | | | | December 31, | |
| | 2006 | | | | 2005 | | | | 2006 | | | | 2005 | |
| | | | | | | | | | | | | | | |
Net sales | | $ | 85,216 | | | | $ | 117,095 | | | | $ | 351,798 | | | | $ | 390,507 | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Costs of revenue (excluding depreciation expense) | | | 27,147 | | | | | 12,972 | | | | | 103,584 | | | | | 50,517 | |
Selling, general and administrative | | | 26,888 | | | | | 58,859 | | | | | 123,130 | | | | | 166,456 | |
Depreciation and amortization | | | 5,089 | | | | | 1,159 | | | | | 14,322 | | | | | 4,534 | |
Total costs and expenses | | | 59,124 | | | | | 72,990 | | | | | 241,036 | | | | | 221,507 | |
Other income, net | | | 274 | | | | | 674 | | | | | 1,798 | | | | | 2,167 | |
Operating income | | | 26,366 | | | | | 44,779 | | | | | 112,560 | | | | | 171,167 | |
Interest expense | | | 3,631 | | | | | 3,037 | | | | | 15,225 | | | | | 3,982 | |
Interest income and other expense, net | | | 232 | | | | | 745 | | | | | 1,465 | | | | | 3,863 | |
Income before income taxes and minority interest | | | 22,967 | | | | | 42,487 | | | | | 98,800 | | | | | 171,048 | |
Income tax expense | | | (11,116 | ) | | | | (15,699 | ) | | | | (39,071 | ) | | | | (62,820 | ) |
Minority interest in consolidated Joint Venture. | | | (153 | ) | | | | (869 | ) | | | | (1,025 | ) | | | | (5,409 | ) |
Net income | | $ | 11,698 | | | | $ | 25,919 | | | | $ | 58,704 | | | | $ | 102,819 | |
| | | | | | | | | | | | | | | | | | | |
Basic earnings per share attributable to common stock | | $ | 0.14 | | | | $ | 0.27 | | | | $ | 0.71 | | | | $ | 1.03 | |
Weighted average number of basic shares outstanding | | | 81,496 | | | | | 94,612 | | | | | 82,161 | | | | | 99,594 | |
| | | | | | | | | | | | | | | | | | | |
Diluted earnings per share attributable to common stock | | $ | 0.14 | | | | $ | 0.26 | | | | $ | 0.67 | | | | $ | 0.97 | |
Weighted average number of diluted shares outstanding | | | 85,120 | | | | | 100,534 | | | | | 87,230 | | | | | 106,058 | |
| | | | | | | | | | | | | | | | | | | |
Marvel Entertainment Q4 2006 Results, 2/26/07 | page 7 of 8 |
MARVEL ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(unaudited)
| | December 31, | |
| | 2006 | | 2005 | |
| | (in thousands, except share data) | |
ASSETS | | | | | | | |
Current assets: | | | | | | | |
Cash and cash equivalents | | $ | 31,945 | | $ | 24,227 | |
Restricted cash | | | 8,527 | | | 8,383 | |
Short–term investments | | | – | | | 15,139 | |
Accounts receivable, net | | | 59,392 | | | 59,108 | |
Inventories, net | | | 10,224 | | | 9,177 | |
Income tax receivable | | | 45,569 | | | – | |
Deferred income taxes, net | | | 22,564 | | | 19,553 | |
Prepaid expenses and other current assets | | | 7,231 | | | 4,785 | |
Total current assets | | | 185,452 | | | 140,372 | |
| | | | | | | |
Molds, tools and equipment, net | | | 4,444 | | | 5,659 | |
Product and package design costs, net | | | 1,497 | | | 1,023 | |
Film production costs | | | 15,055 | | | – | |
Goodwill | | | 341,708 | | | 341,708 | |
Accounts receivable, non–current portion | | | 12,879 | | | 20,290 | |
Deferred income taxes, net | | | 36,406 | | | 36,460 | |
Deferred financing costs | | | 15,771 | | | 20,751 | |
Advances to joint venture partner | | | 8,535 | | | 3,489 | |
Other assets | | | 2,118 | | | 3,794 | |
| | | | | | | |
Total assets | | $ | 623,865 | | $ | 573,546 | |
| | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable | | $ | 5,112 | | $ | 3,724 | |
Accrued royalties | | | 68,467 | | | 65,891 | |
Accrued expenses and other current liabilities | | | 38,895 | | | 57,360 | |
Income taxes payable | | | – | | | 12,295 | |
Deferred revenue | | | 140,072 | | | 10,865 | |
Total current liabilities | | | 252,546 | | | 150,135 | |
Accrued royalties, non-current portion | | | 12,860 | | | 5,908 | |
Deferred revenue, non-current portion | | | 35,667 | | | 24,787 | |
Credit facility | | | 17,000 | | | – | |
Film slate facility obligation | | | 33,200 | | | 25,800 | |
Income tax payable, non-current portion | | | 10,999 | | | – | |
Other liabilities | | | 6,702 | | | 6,316 | |
Total liabilities | | | 368,974 | | | 212,946 | |
| | | | | | | |
Commitments and Contingencies (Note 12) | | | | | | | |
| | | | | | | |
Stockholders’ equity: | | | | | | | |
Preferred stock, $.01 par value, 100,000,000 shares authorized, none issued | | | – | | | – | |
Common stock, $.01 par value, 250,000,000 shares authorized, 128,420,848 issued and 81,326,627 outstanding in 2006 and 121,742,534 issued and 90,205,853 outstanding in 2005 | | | 1,284 | | | 1,217 | |
Deferred stock compensation | | | – | | | (6,242 | ) |
Additional paid-in capital | | | 710,460 | | | 594,873 | |
Retained earnings | | | 228,466 | | | 169,762 | |
Accumulated other comprehensive loss | | | (2,433 | ) | | (3,474 | ) |
Total stockholders’ equity before treasury stock | | | 937,777 | | | 756,136 | |
Treasury stock, at cost, 47,094,221 shares in 2006 and 31,536,681 shares in 2005 | | | (682,886 | ) | | (395,536 | ) |
Total stockholders’ equity | | | 254,891 | | | 360,600 | |
| | | | | | | |
Total liabilities and stockholders’ equity | | $ | 623,865 | | $ | 573,546 | |
| | | | | | | | |
Marvel Entertainment Q4 2006 Results, 2/26/07 | page 8 of 8 |
MARVEL ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(unaudited)
| | Years Ended December 31, | |
| | 2006 | | 2005 | |
| | | | | | | |
Net income | | $ | 58,704 | | $ | 102,819 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | |
Depreciation and amortization | | | 14,322 | | | 4,534 | |
Amortization of deferred financing charges | | | 4,980 | | | 1,660 | |
Unrealized (gain) loss on interest rate cap | | | 1,504 | | | (347) | |
Non-cash charge for stock based compensation | | | 11,040 | | | 4,832 | |
Excess tax benefit from stock-based compensation | | | (64,802 | ) | | 7,382 | |
Gain from sales of equipment | | | (133 | ) | | – | |
Impairment of fixed assets | | | 962 | | | – | |
Deferred income taxes | | | (2,957 | ) | | (13,573 | ) |
Minority interest of joint venture (net of distributions of $6,071 in 2006
and $17,326 in 2005) | | | (5,046 | ) | | (11,917 | ) |
Changes in operating assets and liabilities: | | | | | | | |
Accounts receivable | | | 7,127 | | | 31,896 | |
Inventories | | | (1,047 | ) | | (2,590 | ) |
Prepaid expenses and other current assets | | | (2,446 | ) | | (2,051 | ) |
Film production costs | | | (15,055 | ) | | – | |
Other assets | | | 172 | | | (56 | ) |
Deferred revenue | | | 140,087 | | | (6,093 | ) |
Income taxes payable | | | 17,937 | | | 2,166 | |
Accounts payable, accrued expenses and other current liabilities | | | (7,174 | ) | | 19,075 | |
Net cash provided by operating activities | | | 158,175 | | | 137,737 | |
| | | | | | | |
Cash flow provided by investing activities: | | | | | | | |
Payment of administrative claims and unsecured claims, net | | | – | | | (50 | ) |
Purchases of molds, tools and equipment | | | (10,034 | ) | | (3,193 | ) |
Expenditures for product and package design costs | | | (6,252 | ) | | (1,096 | ) |
Proceeds from sales of fixed assets | | | 1,876 | | | – | |
Sales of short–term investments | | | 80,671 | | | 442,394 | |
Purchases of short–term investments | | | (65,532 | ) | | (302,814 | ) |
Change in restricted cash | | | (144 | ) | | 22,514 | |
Net cash provided by investing activities | | | 585 | | | 157,755 | |
| | | | | | | |
Cash flow used in financing activities: | | | | | | | |
Proceeds from film slate facility | | | 7,400 | | | 25,800 | |
Borrowings from credit facility | | | 169,200 | | | – | |
Repayments of credit facility | | | (152,200 | ) | | – | |
Deferred financing costs | | | – | | | (24,526 | ) |
Purchase of treasury stock | | | (287,350 | ) | | (297,128 | ) |
Exercise of stock options | | | 46,882 | | | 5,532 | |
Excess tax benefit from stock-based compensation | | | 64,802 | | | – | |
Net cash used in financing activities | | | (151,266 | ) | | (290,322 | ) |
| | | | | | | |
Effect of exchange rate changes on cash | | | 224 | | | (117 | ) |
Net increase (decrease) in cash and cash equivalents | | | 7,718 | | | 5,053 | |
Cash and cash equivalents, at beginning of year | | | 24,227 | | | 19,174 | |
Cash and cash equivalents, at end of year | | $ | 31,945 | | $ | 24,227 | |
| | | | | | | | |
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