NEW YORK — Kushner-Locke Co. Tuesday said it swung to a hefty net profit of nearly $20 million in the latest quarter from a loss of $2 million the year before, due mainly to the spinoff of its 55%-owned subsidiary, U.S. Search.com. Revenue fell 35% to $10 million.
The June IPO raised $54 million. Kushner-Locke realized a gain of $13 million from the sale of Search shares and an additional $21 million paper gain from the increased value of its remaining stake in Search.
However, the company still posted an operating loss, excluding one-time items from the Search IPO, of $11 million, with both Search and Kushner-Locke’s filmed entertainment business in the red.
Kushner-Locke co-chairman Peter Locke said in a statement the company is pleased with its mix of businesses, which has changed over the past several years. “We have aggressively built Gran Canal Latino and U.S. Search.com. We have continued our core production and distribution business and increased the value of our library,” he said.
Kushner-Locke shares jumped $1.44 Tuesday in a weak market to close at $5.44.