Genius to Restate Fiscal Results16 Oct, 2008 By: Erik Gruenwedel
Genius Products Inc., the financially-challenged company 70% owned by The Weinstein Co., Oct. 16 said it will restate consolidated financial statements for six quarters and two fiscal year periods.
Santa Monica, Calif.-based Genius said the restatements for the quarters ended Sept. 30, 2006; March 31, June 30 and Sept. 30, 2007; and March 31 and June 30, 2008, and fiscal years ended Dec. 31, 2006 and 2007, relate to financial accounting of costs associated with subsidiary DVD distributor Genius Products LLC.
Heretofore, Genius limited recognition of costs to its 30% stake, excluding possible cost overruns with The Weinstein’s stake said Anne Rakunas with financial consulting firm ICR, which handles Genius.
“Just because Genius has 30% ownership of the LLC doesn’t mean its costs are limited to 30%,” Rakunas said. “It’s safe to say it is going to be something different than what they [stated] before.”
Genius, which is slated to release third-quarter (ended Sept. 30) results in November, has seen its stock nosedive this year to 7 cents per share from a 52-week high of $2.85 per share.
The company said a 49% drop in box-office revenue for The Weinstein Co. releases The Great Debaters, Diary of the Dead and Cassandra's Dream resulted in a 33% decline in DVD revenue to $74.6 million and a loss of $11.7 million.