Golden Books cut its net loss for the second period ended June 30, 1999, to $8.6 million, compared to a loss of $30.9 million in the same period last year. Revenues fell 26% to $31.9 million. Sales in the consumer products division fell 37% to $21.8 million, due in part to the absence of revenues from the divested adult publishing group.
According to Golden's quarterly filing with the SEC, the decline in the consumer operation was also attributable to a change in product mix in the children's publishing group to more profitable products. Other factors that contributed to the drop were a decrease in sales of certain licensed products, reduced buying by some mass market retailers and a decrease in book-club business. These declines were offset somewhat by price increases and the introduction of a novelty line. Sales in the entertainment division rose 83% in the quarter to $8.4 million, primarily due to a multiyear broadcast contract for Frosty the Snowman and Rudolph the Red-Nosed Reindeer.
For the first six months of the year, total revenues fell 26% to $66.6 million and the net loss was slashed to $19.9 million from $51.5 million.
Meanwhile, the date for a confirmation hearing to approve Golden's plan of reorganization has been delayed for a second time. Originally set for July 13, the date was pushed back to August 9 and is now set for September 1. Although four parties have filed objections to the confirmation plan, approval is still expected.