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Harvey loses $1.5 mil in qtr as plans unfold

Restructuring, development in new areas takes toll

NEW YORK — Harvey Entertainment reported a hefty $1.5 million operating loss in the latest quarter Monday as expenses well outpaced revenues in a company struggling to rebuild itself.

That compares with a net loss of $3.7 million in the 1998 period for the owner of cartoon characters including Caspar the Friendly Ghost, Richie Rich and Baby Huey.

Net revenue of $117,000 came solely from minimal merchandising initiatives and was offset by operating expenses of $1.65 million. The puny figures are due to the limited scope of Harvey’s recent operations, which led to a restructuring, a $19 million recapitalization and the installation of new management last spring.

The team, led by chairman-CEO Roger Burlage, is developing and marketing new homevideo, TV, film, Internet and entertainment projects that Harvey said require significant time to develop. Execs are also working to reduce overhead costs.

“There are no surprises here,” Burlage said, given that a number of projects are still in the early stages. “We are on target with the initiatives we established in our business plan and remain confident we will achieve our objectives. We are optimistic about the progress we are making.”

Harvey will continue with its planned acquisition of PM Entertainment, a producer and distributor of pics in homevideo and TV markets and owner of a film and TV library.

As of Sept. 30, Harvey said it had about $10.2 million in cash and marketable securities and no outstanding balance under its line of credit.