Exhibit 99.1
Genius Products Inc. Announces Operating
Results for the Third Quarter of 2003
SAN DIEGO--(BUSINESS WIRE)--Nov. 21, 2003--Genius Products Inc.
(OTCBB:GNPI), a producer, publisher and distributor of family
entertainment products, including music products under the Baby
Genius(TM) and Kid Genius(TM) brand names, licensed music products for
well-known children's books, BOZO the Clown(TM) television shows, and
AMC(TM) classic movies, today announced the results of its operations
for the quarter and nine months ending Sept. 30, 2003. Net revenues
for the quarter ending Sept. 30, 2003 were $616,646, a decrease of 23%
versus the 2002 results. Net revenues for the nine months ended Sept.
30, 2003 were $1,634,027, a 10% decrease compared to the year earlier
period. The net loss for the three and nine month periods ending Sept.
30, 2003 were $769,258, or $.04 per share, and $2,020,473, or $.12 per
share, respectively, as compared to net losses of $387,482, or $.03
per share and $1,939,305, or $0.15 per share in the year ending in the
third quarter of 2002. Per share results reflect the higher basic and
diluted weighted average shares in the current year.
Klaus Moeller, chairman and CEO of Genius Products Inc.,
commented, "Among other reasons, our revenues were lower than we
anticipated in the third quarter of 2003 because we experienced delays
in the development of our new licensed products, that caused further
delays in obtaining customer orders and in shipping the new products.
However, during the quarter ended September 30, 2003, we did begin
shipping several new products, including Guess How Much I Love You(TM)
and Rainbow Fish(TM) licensed music products, BOZO the Clown live
television shows on video and DVD, and AMC classic movies on DVD. We
reached agreements and completed development of several other
children's brands that began shipping in October. We are seeking to
license other similar audio rights. October's licensed music product
shipments included Curious George(TM), Paddington Bear(TM) and Raggedy
Ann & Andy(TM). The fourth quarter will include initial shipments of
additional new licensed music products such as Spot(TM) and
Snowman(TM), as well as additional AMC classic movies. By expanding
our product offerings, we have been able to expand our distribution
network as additional retailers are willing to sell our new products.
We are continuing to strive to become a leading provider of quality
family entertainment products and believe that although the third
quarter financial results were not positive, we made significant
strides in the quarter towards improving future revenues."
Genius Products Inc. is a multi-brand company, that designs and
markets family entertainment products including videos, DVDs, CDs and
cassettes. The products are sold under the Baby Genius, Kid Genius,
BOZO the Clown, Guess How Much I Love You and other licensed music,
and AMC brand names. The company's award-winning products are widely
distributed at major retail stores nationwide including Target,
Wal-Mart, Toys R Us, Babies R Us, ShopKo, Borders and Best Buy.
Promotional partners include, The World Famous San Diego Zoo,
Parenting Magazine, Playtex, Fazoli's and Child Magazine.
Safe Harbor Statement
Except for historical matters contained herein, the matters
discussed in this press release are forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. The
forward-looking statements reflect assumptions and involve risks and
uncertainties, which may affect Genius Products' business and
prospects and cause results to differ from these forward-looking
statements. Such risks and uncertainties include the company's ability
to obtain additional capital, grow its business, to obtain additional
licenses, to meet anticipated release schedules and other matters,
which are described in the company's filings with the Securities and
Exchange Commission.
GENIUS PRODUCTS INC.
Operating Results
For the Quarter Ended
-----------------------
9/30/03 9/30/02
----------- -----------
Net Revenues $616,646 $799,894
Costs and Expenses 1,378,567 1,210,632
Other (6,537) 23,256
----------- -----------
Net Loss $(768,458) $( 387,482)
=========== ===========
Net loss per share $(0.04) $(0.03)
=========== ===========
Basic and diluted
weighted average shares 18,625,061 15,340,752
=========== ===========
For the Nine
Months Ended
-------------------------
9/30/03 9/30/02
------------ ------------
Net Revenues $1,634,027 $1,810,421
Costs and Expenses 3,643,947 3,815,557
Other (10,553) 65,831
------------ ------------
Net Loss $(2,020,473) $(1,939,305)
============ ============
Net loss per share $(0.12) $(0.15)
============ ============
Basic and diluted
weighted average shares 17,004,758 13,140,589
============ ============
CONTACT: Genius Products Inc., San Diego
Klaus Moeller, 858-793-8840
klaus.moeller@geniusproducts.com