The Harvey Entertainment Co. Monday reported falling revenues and increasing losses, as its new management team attempts to turn the struggling company around.
Harvey, home to such toon characters as Casper the Friendly Ghost and Baby Huey, reported a second quarter net loss of $2.02 million, nearly double its $1.2 million loss in the second quarter of 1998.
Revenues for the three-month period ending June 30 were $316,000, down 14% from the previous year.
A major financial rescue effort took place in April when a group of investors, including Roger Burlage, Michael Burns, Ken Slutsky and the Kushner-Locke Co. purchased an equity stake in Harvey for $17.7 million.
And as part of the pact, Burlage jumped on board Harvey’s permanent management team. The group is developing homevid, TV and film products to boost the company’s future revenues.
“We are actively marketing these characters and entertainment concepts to a range of potential partners,” Burlage said. “Based on initial response, we are optimistic regarding our prospects, but remind shareholders that the development of entertainment projects is a time-consuming process.”