ATLANTA, May 23, 2012 (GLOBE NEWSWIRE) -- Premier Exhibitions, Inc. (Nasdaq:PRXI), a leading presenter of museum-quality touring exhibitions around the world, today announced financial results for the fiscal 2012 fourth quarter and full year ended February 29, 2012.
Highlights from the fourth fiscal quarter ending February 29, 2012:
- Total revenue decreased to $7.5 million from $9.8 million in last year's fourth fiscal quarter, due primarily to the Company's decision last year to reduce the number of Bodies exhibitions available to tour.
- Gross profit increased 50.9% to $3.1 million from $2.1 million in the fourth quarter of fiscal 2011, driven primarily by lower exhibition costs.
- Total exhibition days decreased 13% to 1,185 compared to 1,368 in the last year's fourth fiscal quarter.
- Average attendance per exhibition day was 483 compared to average attendance of 521 in the fourth quarter of fiscal 2011.
- Average ticket prices increased 3% to $15.69 as compared to an average ticket price of $15.22 in last year's fourth fiscal quarter.
- General and administrative expenses decreased 37.2% to $3.6 million compared to the fourth quarter of fiscal 2011 driven mostly by a decrease in personnel related expenses, while total G&A expense for fiscal 2012 declined 27.4% to $14.0 million from $19.2 million in fiscal 2011.
- GAAP net loss narrowed to ($2.9) million, or ($0.06) per diluted share, from ($5.1) million, or ($0.11) per diluted share, in last year's fourth fiscal quarter. The fourth quarter of fiscal 2012 included $1.0 million in impairment charges related to the "Dialog in the Dark" exhibitions in Atlanta and New York City, and for which there was no comparable charge in the prior-year period.
- Adjusted EBITDA, a non-GAAP measure (1), improved by $3.2 million to ($0.3) million, which compares to ($3.5) million in the prior year period.
- On February 29, 2012, the Company had total cash and marketable securities of $2.7 million.
Michael Little, Premier's Chief Financial Officer and Chief Operating Officer stated, "Our fourth quarter and full year operating performance underscore the positive steps we have taken to improve our underlying financial condition and drive profitability. Despite the reduction in total revenues, some of which was intentional due to fewer exhibition operating days, we reduced general and administrative expenses and substantially improved gross profit. These efforts resulted in positive adjusted EBITDA in fiscal 2012, the first time we have generated positive adjusted EBITDA since fiscal 2008. We also narrowed our net loss versus the prior year."
Samuel Weiser, Premier's Interim President and Chief Executive Officer continued, "With cost rationalization efforts largely behind us, we are now able to concentrate on maximizing revenue in our exhibition business, including merchandising. We are in the midst of our year-long celebration of the 100th anniversary of Titanic and we continue to showcase Titanic exhibitions in several major cities while broadening ancillary revenue opportunity through new distribution channels and partners, including our website, www.thetitanicstore.com.
"The recent acquisition of AEI enhances our market profile as the recognized leader in developing and displaying unique exhibitions for education and entertainment. This acquisition, which is expected to be immediately accretive, includes rights to four touring exhibitions, further positions us as an industry leader and diversifies our Company as we prepare for the monetization of the Titanic assets."
Monetization of Titanic Assets Update
The Company and its subsidiary, RMS Titanic, Inc., remain in discussions with multiple parties for the purchase of the Company's Titanic artifacts collection along with related intellectual property and intangibles. In order for the Company to maximize the ultimate value of the assets for shareholders, these negotiations and due diligence are being conducted in confidence. Additional information will be forthcoming at the appropriate time.
Arts and Exhibitions International, LLC Acquisition
On April 20, 2012, Premier Exhibition Management LLC and its wholly owned subsidiary, PEM Newco, LLC, both subsidiaries of the Company, entered into a purchase agreement with AEG Live LLC, AEG Exhibitions LLC, and Arts and Exhibitions International, LLC pursuant to which Newco purchased substantially all of the assets of Arts and Exhibitions International, LLC ("AEI"). The assets purchased include the rights and tangible assets relating to four currently touring exhibitions known as "King Tut II," "Cleopatra," "America I Am" and "Real Pirates." The acquired assets include rights agreements with the artifact and intellectual property owners for the exhibitions, museum/venue agreements for existing exhibition venues, sponsorship agreements, a warehouse lease and an office lease. In addition, the acquired assets include intellectual property related to proposed future exhibitions to be further developed and produced. The Company will operate these additional properties under its exhibition management subsidiary. The transaction required no upfront cash outlay by Premier other than the transaction costs incurred for investment bankers, attorneys and accountants, and is expected to be immediately accretive to earnings. The transaction is also non-dilutive with respect to current shareholders' interest in the Titanic assets.
Fourth Fiscal Quarter 2012 Conference Call Information
Premier Exhibitions will host a conference call to discuss its financial results on Wednesday, May 23, 2012 at 5:30 p.m. (EDT). Investors in the U.S. can access the call by dialing 1-888-240-9373 and international callers may dial 1-913-312-0825. Callers should reference Conference ID 1724584. A transcript of the conference call will be made available on the Company's website: www.prxi.com.
(1) Adjusted EBITDA
See Table 4 below for reconciliations of Adjusted EBITDA to GAAP Net income (loss).
This press release contains certain financial measures that are not prepared in accordance with GAAP (generally accepted accounting principles in the U.S.). Such financial measures are referred to herein as "non-GAAP" and are presented in this press release in accordance with Regulation G as promulgated by the Securities and Exchange Commission. A reconciliation of each such non-GAAP measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes each such non-GAAP financial measure provides useful information to investors, is provided below.
Adjusted EBITDA is a non-GAAP financial measure that the Company defines as earnings before certain unusual and/or non-cash charges, depreciation and amortization, loss (gain) on sale of operating assets, impairment of intangible assets and fixed assets, and non-cash compensation expenses. The Company uses Adjusted EBITDA to evaluate the performance of its operating segments. The Company believes that information about Adjusted EBITDA assists investors by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation on the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in the Company's business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies. Therefore, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.
About Premier Exhibitions
Premier Exhibitions, Inc. (Nasdaq:PRXI), located in Atlanta, GA, is a major provider of museum quality exhibitions throughout the world and a recognized leader in developing and displaying unique exhibitions for education and entertainment. The Company's exhibitions present unique opportunities to experience compelling stories using authentic objects and artifacts in diverse environments. Exhibitions are presented in museums, exhibition centers and other entertainment venues.
Additional information about Premier Exhibitions is available at www.prxi.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve certain risks and uncertainties. The actual results or outcomes of Premier Exhibitions, Inc. may differ materially from those anticipated. Although Premier Exhibitions believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any such assumptions could prove to be inaccurate. Therefore, Premier Exhibitions can provide no assurance that any of the forward-looking statements contained in this press release will prove to be accurate.
In light of the significant uncertainties and risks inherent in the forward-looking statements included in this press release, such information should not be regarded as a representation by Premier Exhibitions that its objectives or plans will be achieved. Included in these uncertainties and risks are, among other things, fluctuations in operating results, general economic conditions, uncertainty regarding the results of certain legal proceedings and competition. Forward-looking statements consist of statements other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may," "intend," "expect," "will," "anticipate," "estimate" or "continue" or the negatives thereof or other variations thereon or comparable terminology. Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Premier Exhibitions' most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Premier Exhibitions does not undertake an obligation to update publicly any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| Table 1 | ||
| Premier Exhibitions, Inc. | ||
| Consolidated Balance Sheets | ||
| (in thousands, except share data) | ||
| February 29, 2012 | February 28, 2011 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,344 | $ 3,764 |
| Certificates of deposit and other investments | 405 | 807 |
| Accounts receivable, net of allowance for doubtful accounts of $311 and $1,044, respectively | 1,390 | 2,419 |
| Merchandise inventory, net of reserve of $22 and $15, respectively | 1,082 | 752 |
| Notes receivable, net of allowance for doubtful accounts of $0 and $425, respectively | -- | 200 |
| Deferred income taxes | 44 | 175 |
| Income taxes receivable | 246 | 358 |
| Prepaid expenses | 1,078 | 1,107 |
| Other current assets | 88 | 136 |
| Total current assets | 6,677 | 9,718 |
| Artifacts owned, at cost | 2,990 | 3,011 |
| Salvor's lien | 1 | 1 |
| Property and equipment, net of accumulated depreciation of $14,183 and $15,376, respectively | 10,298 | 12,620 |
| Exhibition licenses, net of accumulated amortization of $5,470 and $5,861, respectively | 2,228 | 2,987 |
| Film and gaming assets, net of accumulated amortization of $175 | 3,158 | 2,994 |
| Other receivable, net of allowance for doubtful accounts of $206 and $0, respectively | 15 | -- |
| Subrogation rights | 250 | 250 |
| Total Assets | $ 25,617 | $ 31,581 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 4,710 | $ 5,951 |
| Deferred revenue | 2,254 | 2,596 |
| Current portion of notes payable | 505 | -- |
| Total current liabilities | 7,469 | 8,547 |
| Long-Term liabilities: | ||
| Lease abandonment | 2,397 | 3,014 |
| Deferred income taxes | 44 | 175 |
| Long-term portion of notes payable | 575 | -- |
| Total long-term liabilities | 3,016 | 3,189 |
| Commitment and Contingencies | ||
| Shareholders' equity: | ||
| Common stock; $.0001 par value; authorized 65,000,000 shares; issued 47,883,927 and 48,205,661 shares, respectively; outstanding 47,881,918 and 47,203,652 shares, respectively | 5 | 5 |
| Additional paid-in capital | 52,479 | 58,356 |
| Accumulated deficit | (36,866) | (31,085) |
| Accumulated other comprehensive loss | (485) | (455) |
| Less treasury stock, at cost; 2,009 and 1,002,009 shares, respectively | (1) | (7,190) |
| Equity Attributable to Shareholders of Premier Exhibitions, Inc. | 15,132 | 19,631 |
| Equity Attributable to Non-controlling interest | -- | 214 |
| Total liabilities and shareholders' equity | $ 25,617 | $ 31,581 |
| Table 2 | ||||
| Premier Exhibitions, Inc. | ||||
| Condensed Consolidated Statements of Operations | ||||
| (in thousands, except share and per share data) | ||||
| (unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| February 29, 2012 | February 28, 2011 | February 29, 2012 | February 28, 2011 | |
| 4Q12 | 4Q11 | |||
| Revenue: | ||||
| Exhibition revenue | $ 6,682 | $ 8,427 | $ 28,274 | $ 40,171 |
| Merchandise and other | 862 | 1,081 | 3,436 | 4,330 |
| Film revenue | -- | 250 | -- | 250 |
| Total revenue | 7,544 | 9,758 | 31,710 | 44,751 |
| Cost of revenue: | ||||
| Exhibition costs | 3,950 | 7,220 | 15,881 | 32,115 |
| Cost of merchandise sold | 480 | 449 | 1,383 | 1,319 |
| Film costs | -- | 25 | -- | 25 |
| Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 4,430 | 7,694 | 17,264 | 33,459 |
| Gross profit | 3,114 | 2,064 | 14,446 | 11,292 |
| Operating expenses: | ||||
| General and administrative | 3,598 | 5,725 | 13,958 | 19,214 |
| Depreciation and amortization | 984 | 1,337 | 3,922 | 5,053 |
| Net loss (gain) on disposal of assets | 283 | (6) | 256 | 26 |
| Impairment of intangible assets and property and equipment | 990 | -- | 1,348 | -- |
| Litigation settlement | -- | -- | 783 | -- |
| Total operating expenses | 5,855 | 7,056 | 20,267 | 24,293 |
| Loss from operations | (2,741) | (4,992) | (5,821) | (13,001) |
| Other (expenses) and income | (25) | (4) | (23) | 26 |
| Loss before income taxes | (2,766) | (4,996) | (5,844) | (12,975) |
| Income tax (expense)/benefit | (137) | (191) | (176) | 297 |
| Net loss | (2,903) | (5,187) | (6,020) | (12,678) |
| Less: Net loss attributable to noncontrolling interests | -- | (60) | (239) | (206) |
| Net loss attributable to shareholders of Premier | $ (2,903) | $ (5,127) | $ (5,781) | $ (12,472) |
| Net loss per share: | ||||
| Basic and diluted loss per common share | $ (0.06) | $ (0.11) | $ (0.12) | $ (0.27) |
| Shares used in basic and diluted per share calculations | 47,593,974 | 47,237,305 | 47,418,894 | 46,943,269 |
| Table 3 | ||||
| Premier Exhibitions, Inc. | ||||
| Condensed Consolidated Statements of Cash Flows | ||||
| (in thousands) | ||||
|
Three Months Ended February 29, 28, |
Twelve Months Ended February 29, 28, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Cash flows from operating activities: | ||||
| Net loss | $ (2,903) | $ (5,187) | $ (6,020) | $ (12,678) |
| Adjustments to reconcile net income to net cash (used) provided by operating activities: | ||||
| Depreciation and amortization | 984 | 1,337 | 3,922 | 5,053 |
| Impairment of intangibles and fixed assets | 990 | -- | 1,348 | -- |
| Lease abandonment | (159) | (149) | (617) | (652) |
| Stock based compensation | 176 | 198 | 705 | 616 |
| Allowance for doubtful accounts | 102 | 759 | 143 | 726 |
| Net (gain) loss on disposal of assets | 283 | (5) | 256 | 26 |
| Changes in operating assets and liabilities: | ||||
| Decrease (increase) in accounts receivable | (720) | (1,211) | 1,040 | (153) |
| Decrease (increase) in merchandise inventory, net of reserve | (157) | 375 | (330) | 93 |
| Decrease in note receivable | -- | -- | 200 | -- |
| Decrease in deferred income taxes | -- | -- | -- | 927 |
| Decrease in prepaid expenses | 500 | 2,923 | 29 | 559 |
| Decrease in other assets | (6) | 31 | 58 | 64 |
| Decrease in income tax receivable | 53 | 1,377 | 112 | 2,803 |
| Increase in other receivable | (99) | -- | (221) | -- |
| Decrease (increase) in deferred revenue | (311) | 1,635 | (342) | 891 |
| (Decrease) increase in accounts payable and accrued liabilities | (140) | (2,477) | (1,091) | 433 |
| Decrease in income taxes payable | -- | (1,214) | -- | (1,214) |
| Total adjustments | 1,496 | 3,579 | 5,212 | 10,172 |
| Net cash provided (used) by operating activities | (1,407) | (1,608) | (808) | (2,506) |
| Cash flows used by investing activities: | ||||
| Purchases of property and equipment | (201) | (405) | (1,167) | (2,045) |
| Proceeds from disposal of assets | 10 | 16 | 37 | 25 |
| Purchase of exhibition licenses | -- | (300) | -- | (600) |
| Purchase of certificates of deposit | (1) | (1) | (5) | (88) |
| Redemption of certificates of deposit | 402 | (1) | 402 | 2,581 |
| Decrease in artifacts | 7 | 5 | 21 | 37 |
| Titanic expedition costs incurred | -- | (359) | (262) | (4,246) |
| Investment in joint venture | -- | 41 | 77 | 420 |
| Net cash provided (used) by investing activities | 217 | (1,004) | (897) | (3,916) |
| Cash flows from financing activities: | ||||
| Proceeds from stock issuance | 635 | -- | 635 | -- |
| Purchase of treasury stock | (36) | -- | (36) | (136) |
| Payments on notes payable | (136) | -- | (297) | -- |
| Proceeds from option and warrant exercises | -- | -- | 8 | 117 |
| Net cash provided (used) by financing activities | 463 | -- | 310 | (19) |
| Effects of exchange rate changes on cash and cash equivalents | (5) | 47 | (25) | (134) |
| Net decrease in cash and cash equivalents | (732) | (2,565) | (1,420) | (6,575) |
| Cash and cash equivalents at beginning of period | 3,076 | 6,329 | 3,764 | 10,339 |
| Cash and cash equivalents at end of period | $ 2,344 | $ 3,764 | $ 2,344 | $ 3,764 |
| Supplemental disclosure of cash flow information: | ||||
| Cash paid during the period for interest | $ 20 | $ -- | $ 20 | $ 3 |
| Cash paid during the period for taxes | $ 23 | $ -- | $ 60 | $ 103 |
| Supplemental disclosure of non-cash investing and financing activities: | ||||
| Unrealized loss on marketable securities | $ -- | $ (2) | $ (5) | $ (8) |
| Assets purchased with notes payable | $ -- | $ -- | $ 1,377 | $ -- |
| Table 4 | ||||
| Adjusted EBITDA | ||||
| (In thousands) | ||||
| Three Months Ended | Year Ended | |||
| February 29, 2012 | February 28, 2011 | February 29, 2012 | February 28, 2011 | |
| 4Q12 | 4Q11 | |||
| Net loss | $ (2,903) | $ (5,187) | $ (6,020) | $ (12,678) |
| Income tax expense (benefit) | 137 | 191 | 176 | (297) |
| Other expense (income) | 25 | 4 | 23 | (26) |
| (Gain) loss on disposal | 283 | (6) | 256 | 26 |
| Depreciation and amortization | 984 | 1,337 | 3,922 | 5,053 |
| Litigation settlement | -- | -- | 783 | -- |
| Impairment of intangibles and fixed assets | 990 | -- | 1,348 | -- |
| Stock-based compensation | 176 | 198 | 705 | 616 |
| Adjusted EBITDA(1) | $ (308) | $ (3,463) | $ 1,193 | $ (7,306) |
| (1) Adjusted EBITDA | ||||
| Adjusted EBITDA is defined as earnings before certain unusual and/or non-cash charges, depreciation and amortization, loss (gain) on sale of operating assets, impairment of intangible assets and goodwill, and non-cash compensation expenses. The Company uses Adjusted EBITDA to evaluate the performance of its operating segments. Adjusted EBITDA should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. | ||||
| Table 5 | ||||
| Summary of General & Administrative expense | ||||
| (In thousands) | ||||
| Three Months Ended | Twelve Months Ended | |||
| February 29, 2012 | February 28, 2011 | February 29, 2012 | February 28, 2011 | |
| 4Q12 | 4Q11 | |||
| Compensation, excluding stock-based compensation | $ 1,446 | $ 1,968 | $ 5,819 | $ 7,125 |
| Stock-based compensation | 176 | 198 | 705 | 616 |
| Bad debt expense | (64) | 668 | (64) | 819 |
| Legal and other professional fees | 1,298 | 1,010 | 2,650 | 4,112 |
| Rent and other office expenses | 363 | 470 | 1,579 | 1,970 |
| Other | 379 | 1,411 | 3,269 | 4,572 |
| General & Administrative expense | $ 3,598 | $ 5,725 | $ 13,958 | $ 19,214 |
| Table 6 | ||||
| Exhibition Revenue & Operating Statistics | ||||
| (In thousands) | ||||
| Three Months Ended | Year Ended | |||
| February 29, 2012 | February 28, 2011 | February 29, 2012 | February 28, 2011 | |
| 4Q12 | 4Q11 | |||
| Admissions revenue | $ 5,561 | $ 8,088 | $ 24,601 | $ 36,483 |
| Non-refundable license fees for current exhibitions | 1,121 | 339 | 3,673 | 3,688 |
| Total exhibition revenue | $ 6,682 | $ 8,427 | $ 28,274 | $ 40,171 |
| Number of venues presented | 20 | 23 | 31 | 41 |
| Total operating days | 1,185 | 1,368 | 4,754 | 5,969 |
| Total attendance (in 000's) | 572 | 713 | 2,135 | 3,628 |
| Average attendance per day | 483 | 521 | 449 | 608 |
CONTACT: Investor Contact:
Michael J. Little
Chief Operating Officer and
Chief Financial Officer
(404) 842-2600
michael.little@prxi.com