As part of its efforts to remake Intervisual Books, the new executive team at the children's book publisher has sold its video distribution company, Fast Forward Marketing, to Kanakaris Wireless Corp. Kanakaris acquired all of FFM's assets, except cash, and assumed all liabilities. The company also hired nine FFM employees to operate the business.
Intervisual received $255,000 in cash as part of the transaction and could receive as much as $216,000 more, depending on the amount of outstanding receivables Kanakaris can collect. Kanakaris said FFM, which Intervisual acquired in May 1999, had sales of more than $4 million last year. Larry Nusbaum, Intervisual's CEO, said the sale of the video unit "puts the past behind us" and will allow the company to focus on increasing its novelty children's book business.
As a result of the sale, Intervisual classified FFM as a discontinued operation and restated its financial results for 2001 and 2000 to show sales of $13.8 million last year, compared to $10.2 million in 2000. The company had a net loss of $5.2 million in 2001, including a loss of $2.5 million from discontinued operations, compared to a loss of $2.7 million in 2000.
Sales increased for both Intervisual's self-publishing program, Piggy Toes Press, as well as its packaging operations. Piggy Toes had revenues of $6.2 million, approximately 45% of the company's total revenues. Gains in the year were led by sales of Ten Little Ladybugs, What Makes a Rainbow and Icky Sticky Frog.
To help reduce costs in 2002, Intervisual has moved its offices from Santa Monica, Calif., to 9,200 sq. ft. of space in Marina del Rey. With the departure of the nine FFM employees, Intervisual now has a staff of about 35.