Quarterly Profit Drops 63% at Dick Clark

Dick Clark Productions reported a 63% drop in third quarter profit to $499,000, or 6 cents a share, compared to $1.4 million, or 19 cents a share, a year earlier. However, revenue for the third quarter ended March 31 increased 31% to $9.9 million from $7.5 million because of additional revenue from a television special and a series.

For the nine months, the Burbank-based production company, which is controlled by television personality Dick Clark, saw its earnings fall 34% to $2.3 million, or 32 cents a share, from $3.6 million, or 51 cents a share, a year earlier. Revenue fell 10% to $24.1 million from $26.7 million in the year-earlier period.

The company said earnings were affected by higher costs to expand its television production business and by a rise in its tax rate. The rate, which increases this year to 48% from 36%, is primarily because the company lost its investment credits under the new federal tax laws, President Francis La Maina said.

La Maina said the company anticipated the downturn in business. He said the lower profits primarily stem from fewer programs being bought for network and syndicated airings because of a slowdown in advertising, and because networks are trimming their costs.

Clark’s company went public in January at $6.50 a share, down from the $8 to $10 originally projected. The lower price, which brought the company $3 million less than originally expected, came as investors cooled to new public offerings by entertainment companies.