CKX, Inc. (Nasdaq: CKXE), today filed its quarterly report for the three months ended March 31, 2008, reporting revenue of $65.2 million, and OIBDAN (operating income before depreciation, amortization and non-cash compensation), excluding costs related to the distribution of common stock of FX Real Estate and Entertainment, Inc. (Nasdaq: FXRE) and the proposed merger with 19X, Inc., of $26.6 million.
For the quarter ended March 31, 2007, CKX reported revenue and OIBDAN of $49.6 million and $14.0 million, respectively. The increases in revenue and OIBDAN in the quarter ended March 31, 2008, reflects strong growth at the Company's American Idol, Elvis Presley and Beckham businesses. The results do not include any amounts from the licensing arrangement between the Company's Elvis Presley and Muhammad Ali businesses and FX Real Estate and Entertainment. The Company received the initial minimum annual license fee payment attributable to 2007 of $10 million from FXRE in April 2008.
The Company considers OIBDAN to be an important indicator of the operational strengths and performance of its businesses and the critical measure the chief operating decision maker (CEO) uses to manage and evaluate its businesses, including the ability to provide cash flows to service debt.
However, a limitation of the use of OIBDAN as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in our businesses or stock-based compensation expense. Accordingly, OIBDAN should be considered in addition to, not as a substitute for, operating income (loss), net income (loss) and other measures of financial performance reported in accordance with US GAAP as OIBDAN is not a GAAP equivalent measurement. -- CKX, Inc.
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