ATLANTA, Jan. 13, 2015 (GLOBE NEWSWIRE) -- Premier Exhibitions, Inc. (Nasdaq:PRXI), a leading presenter of museum-quality touring exhibitions around the world, today announced financial results for the third quarter of fiscal 2015 ended November 30, 2014.
Comparing the third fiscal quarter 2015 with the prior year's third fiscal quarter:
- Total revenue increased 5.2% to $6.7 million compared to $6.4 million in the third quarter of fiscal 2014.
- Gross profit decreased to $1.9 million from $2.4 million in last year's third fiscal quarter, mainly due to non-cash rent expense of approximately $900 thousand related to the New York City location. Offsetting this partially was a decrease in exhibition marketing expense of $373 thousand for the period.
- Adjusted EBITDA, a non-GAAP measure (1), was $(0.9) million, a decrease of $0.3 million from the prior year's results.
- Net loss after non-controlling interest was $2.1 million, or $0.04 per diluted share, compared to net loss after non-controlling interest of $233 thousand, or $0.00 per diluted share, in last year's third fiscal quarter. After elimination of one-time items in the prior year period related to the revaluation of the AEG note and the write-off of assets, and the non-cash rent expense related to the New York City location in the current fiscal quarter the net loss decreased approximately $600 thousand from the third fiscal quarter of last year.
- Total exhibition days increased 8.3% to 1,267 compared to 1,170 in the third fiscal quarter of 2014.
- Average attendance per exhibition day increased 21.8% to 363 compared to 298 in last year's third fiscal quarter.
- Average ticket prices at semi-permanent museum and other locations increased 5.5% to $16.97 compared to $16.08 in the third quarter of fiscal 2014.
- General and administrative expenses decreased 9.7% to $2.9 million, compared to $3.2 million in last year's third fiscal quarter as a result of lower compensation and stock compensation expense in the third quarter of fiscal 2015.
- On November 30, 2014, the Company had total cash and marketable securities of $5.8 million.
Michael Little, Premier's Interim President and Chief Executive Officer, stated, "While our overall results were disappointing, our total revenue increased for the second consecutive quarter primarily due to contributions from our Pompeii and King Tut exhibitions which offset lower revenue from our Titanic brand which was featured in smaller markets relative to the previous year. We are also pleased that a number of key metrics for semi-permanent, partner and rented exhibitions showed improvement. Total attendance overall grew 10.9%, average attendance increased 21.8% and average ticket price rose 5.5% compared to the 3rd fiscal quarter of 2014. Regarding our semi-permanent exhibitions, average attendance per day stabilized after several declining quarters, while average ticket price and average retail sale per attendee grew 2.0% and 13.3%, respectively from the 3rd fiscal quarter of 2014.
Little added, "Our primary focus remains the opening of our New York venue which will be anchored by our new exhibition, 'Saturday Night Live: The Experience.' We expect the exhibition center to open in May and project that our New York exhibitions will generate revenue, including ticket sales and related merchandise, of approximately $17 to $20 million in its first full year of operation. Based upon an estimated 35.0% to 42.5% gross profit margin, New York should contribute approximately $6.0 to $8.5 million in adjusted EBITDA to our operating results. While we cannot guarantee the future performance of our New York exhibitions, and caution shareholders not to place undue reliance upon these estimates, we believe the New York location will have a positive impact on the profitability of our exhibition business."
Third Fiscal Quarter 2015 Conference Call Information
Premier Exhibitions, Inc. will host a conference call to discuss its financial results on January 13, 2015, at 5:00 PM. (EST). Investors in the U.S. and Canada can access the call by dialing 1-888-359-3627 and international callers may dial 1-719-325-2448. Callers should reference Conference ID number 5185627. 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.
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, Inc. 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, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any such assumptions could prove to be inaccurate. Therefore, Premier Exhibitions, Inc. 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, Inc. 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, Inc. most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Premier Exhibitions, Inc. 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. | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except share data) | ||
| November 30, | February 28, | |
| 2014 | 2014 | |
| (Unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 5,784 | $ 3,434 |
| Certificates of deposit and other investments | -- | 407 |
| Accounts receivable, net of allowance for doubtful accounts of $352 and $392, respectively | 1,371 | 1,331 |
| Merchandise inventory, net of reserve of $17 | 1,194 | 1,206 |
| Income taxes receivable | 56 | 263 |
| Prepaid expenses | 2,711 | 2,012 |
| Other current assets | 436 | 381 |
| Total current assets | 11,552 | 9,034 |
| Artifacts owned, at cost | 2,886 | 2,901 |
| Salvor's lien | 1 | 1 |
| Property and equipment, net of accumulated depreciation of $21,933 and $19,799, respectively | 7,277 | 9,287 |
| Exhibition licenses, net of accumulated amortization of $6,001 and $5,857, respectively | 1,697 | 1,841 |
| Film, gaming and other application assets, net of accumulated amortization of $1,571 and $1,101, respectively | 1,763 | 2,233 |
| Deferred financing costs, net of accumulated amortization $130 and $0, respectively | 253 | -- |
| Goodwill | 250 | 250 |
| Construction deposit | 3,392 | -- |
| Lease incentive | 7,400 | -- |
| Future rights fees, net of accumulated amortization of $767 and $438, respectively | 3,613 | 3,942 |
| Restricted cash | 450 | -- |
| Restricted certificate of deposit | 800 | -- |
| Deferred income taxes | 302 | 302 |
| Long-term exhibition costs | 264 | 215 |
| Subrogation rights | 250 | 250 |
| Total Assets | $ 42,150 | $ 30,256 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 3,261 | $ 2,550 |
| Deferred rent | 2,022 | 751 |
| Deferred revenue | 3,380 | 3,076 |
| Deferred income taxes | 302 | 302 |
| Current portion of capital lease obligations | 37 | 39 |
| Current portion of royalty payable, net of discount of $50 and $0, respectively | 180 | -- |
| Current portion of notes payable, net of discount of $0 and $66, respectively | 8,000 | 170 |
| Total current liabilities | 17,182 | 6,888 |
| Long-Term liabilities: | ||
| Lease abandonment | 1,096 | 1,440 |
| Deferred rent | 7,400 | -- |
| Long-term portion of capital lease obligations | 37 | 61 |
| Long-term portion of royalty payable, net of discount of $76 and $0, respectively | 856 | -- |
| Long-term portion of notes payable, net of discount of $14 and $134, respectively | 186 | 1,126 |
| Total long-term liabilities | 9,575 | 2,627 |
| Commitment and Contingencies | ||
| Shareholders' equity: | ||
| Common stock; $.0001 par value; authorized 65,000,000 shares; issued 49,097,011 and 49,044,378 shares, respectively; outstanding 49,095,002 and 49,042,369 shares, respectively | 5 | 5 |
| Additional paid-in capital | 54,072 | 53,822 |
| Accumulated deficit | (40,628) | (35,630) |
| Accumulated other comprehensive loss | (326) | (326) |
| Less treasury stock, at cost; 2,009 shares | (1) | (1) |
| Equity Attributable to Shareholders of Premier Exhibitions, Inc. | 13,122 | 17,870 |
| Equity Attributable to Non-controlling interest | 2,271 | 2,871 |
| Total liabilities and shareholders' equity | $ 42,150 | $ 30,256 |
| Table 2 | ||||
| Premier Exhibitions, Inc. | ||||
| Condensed Consolidated Statements of Comprehensive Income/(Loss) | ||||
| (in thousands, except share and per share data) | ||||
| (unaudited) | ||||
| Three Months Ended November 30, | Nine Months Ended November 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenue: | ||||
| Exhibition revenue | $ 5,491 | $ 5,003 | $ 18,254 | $ 17,822 |
| Merchandise revenue | 1,105 | 1,201 | 3,859 | 4,766 |
| Management fee | 131 | 188 | 402 | 563 |
| Licensing fee | -- | -- | -- | -- |
| Total revenue | 6,727 | 6,392 | 22,515 | 23,151 |
| Cost of revenue: | ||||
| Exhibition costs | 4,310 | 3,565 | 12,818 | 9,737 |
| Cost of merchandise sold | 474 | 477 | 1,643 | 1,767 |
| Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 4,784 | 4,042 | 14,461 | 11,504 |
| Gross profit | 1,943 | 2,350 | 8,054 | 11,647 |
| Operating expenses: | ||||
| General and administrative | 2,920 | 3,234 | 9,950 | 9,870 |
| Depreciation and amortization | 1,093 | 1,085 | 3,393 | 3,068 |
| Gain on note payable fair market value adjustment | -- | (2,414) | -- | (2,414) |
| Write-off assets | -- | 798 | -- | 798 |
| Gain on disposal of assets | -- | 3 | (4) | (71) |
| Contract and legal settlements | -- | -- | -- | (297) |
| Total operating expenses | 4,013 | 2,706 | 13,339 | 10,954 |
| Income/(loss) from operations | (2,070) | (356) | (5,285) | 693 |
| Interest expense | (311) | (66) | (355) | (303) |
| Other income | 4 | 71 | 42 | 218 |
| Income/(loss) before income taxes | (2,377) | (351) | (5,598) | 608 |
| Income tax expense/(benefit) | -- | (163) | -- | (163) |
| Net income/(loss) | (2,377) | (188) | (5,598) | 771 |
| Less: Net (income)/loss attributable to non-controlling interest | 244 | (45) | 600 | (95) |
| Net income/(loss) attributable to the shareholders of Premier Exhibitions, Inc. | $ (2,133) | $ (233) | $ (4,998) | $ 676 |
| Net income/(loss) per share: | ||||
| Basic income/(loss) per common share | $ (0.04) | $ 0.00 | $ (0.10) | $ 0.01 |
| Diluted income/(loss)per common share | $ (0.04) | $ 0.00 | $ (0.10) | $ 0.01 |
| Shares used in basic per share calculations | 49,095,002 | 49,234,187 | 49,065,692 | 49,284,177 |
| Shares used in diluted per share calculations | 49,095,002 | 49,234,187 | 49,065,692 | 49,433,927 |
| Comprehensive income/(loss) | $ (2,133) | $ (224) | $ (4,998) | $ 684 |
| Table 3 | ||||
| Premier Exhibitions, Inc. | ||||
| Condensed Consolidated Statements of Cash Flow | ||||
| (in thousands) | ||||
| (unaudited) | ||||
| Three Months Ended November 30, | Nine Months Ended November 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Cash flows from operating activities: | ||||
| Net income/(loss) | $ (2,377) | $ (188) | $ (5,598) | $ 771 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 1,093 | 1,085 | 3,393 | 3,068 |
| Lease abandonment | (112) | (77) | (343) | (344) |
| Gain on note payable fair market value adjustment | -- | (2,414) | -- | (2,414) |
| Write-off of assets | -- | 798 | -- | 798 |
| Stock-based compensation | 32 | 134 | 250 | 285 |
| Allowance for doubtful accounts | -- | 84 | 16 | 245 |
| Amortization of deferred financing costs | 130 | -- | 130 | -- |
| Write-off of deferred financing costs | -- | -- | 100 | -- |
| Amortization of debt discount | 19 | 64 | 60 | 296 |
| (Gain)/loss on disposal of assets | -- | 3 | (4) | (71) |
| Changes in operating assets and liabilities: | ||||
| (Increase)/decrease in accounts receivable | (106) | (229) | 157 | (203) |
| (Increase)/decrease in merchandise inventory, net of reserve | (42) | 73 | 12 | (114) |
| Increase in prepaid expenses | (427) | (384) | (629) | (1,514) |
| (Increase)/decrease in other assets | 9 | 160 | (55) | 214 |
| (Increase)/decrease in income taxes receivable | -- | 10 | 207 | (76) |
| Increase in other receivables | -- | (84) | (16) | (211) |
| Increase in restricted cash | (86) | -- | (235) | -- |
| Increase/(decrease) in long-term development costs | (72) | 119 | (49) | 71 |
| Increase/(decrease) in accounts payable and accrued liabilities | (979) | (382) | 638 | 29 |
| Increase/(decrease) in deferred rent | 732 | (42) | 1,271 | (126) |
| Increase/(decrease) in deferred revenue | (304) | 1,001 | (19) | 435 |
| Decrease in income taxes payable | -- | (175) | -- | (175) |
| Total adjustments | (113) | (256) | 4,884 | 193 |
| Net cash provided by/(used in) operating activities | (2,490) | (444) | (714) | 964 |
| Cash flows from investing activities: | ||||
| Purchases of property and equipment | (48) | (358) | (441) | (2,970) |
| Construction deposit | (3,392) | -- | (3,392) | -- |
| Purchase of restricted certificate of deposit | -- | -- | (800) | -- |
| Redemption of certificates of deposit | 206 | -- | 407 | -- |
| Proceeds from disposal of assets | -- | -- | 4 | 74 |
| Decrease in artifacts | 4 | 7 | 15 | 27 |
| Net cash used in investing activities | (3,230) | (351) | (4,207) | (2,869) |
| Cash flows from financing activities: | ||||
| Proceeds from option and warrant exercises | -- | -- | -- | 185 |
| Purchase of treasury stock | -- | (534) | -- | (534) |
| Proceeds from issuance of notes payable | 8,000 | -- | 8,000 | -- |
| Deferred financing costs | (383) | -- | (483) | -- |
| Payments on capital lease obligations | (9) | (7) | (26) | (22) |
| Payments on notes payable | -- | -- | (220) | (130) |
| Net cash provided by/(used in) financing activities | 7,608 | (541) | 7,271 | (501) |
| Effects of exchange rate changes on cash and cash equivalents | -- | 8 | -- | 9 |
| Net increase/(decrease) in cash and cash equivalents | 1,888 | (1,328) | 2,350 | (2,397) |
| Cash and cash equivalents at beginning of period | 3,896 | 5,324 | 3,434 | 6,393 |
| Cash and cash equivalents at end of period | $ 5,784 | $ 3,996 | $ 5,784 | $ 3,996 |
| Supplemental disclosure of cash flow information: | ||||
| Cash paid during the period for interest | $ 161 | $ 2 | $ 172 | $ 330 |
| Cash paid/(received) during the period for taxes | $ -- | $ (68) | $ (207) | $ 88 |
| Supplemental disclosure of non-cash investing and financing activities: | ||||
| Unrealized loss on marketable securities | $ -- | $ 1 | $ -- | $ (1) |
| Purchases of property and equipment under capital leases | $ -- | $ -- | $ -- | $ 26 |
| Net assets recognized from execution of royalty agreement | $ -- | $ -- | $ 31 | $ -- |
| Net assets recognized from lease incentive | $ 7,400 | $ -- | $ 7,400 | $ -- |
| Net liabilities recognized from deferred rent | $ 7,400 | $ -- | $ 7,400 | $ -- |
| Table 4 | ||||
| Adjusted EBITDA | ||||
| (In thousands) | ||||
| Three Months Ended | Nine Months Ended | |||
| November 30, 2014 | November 30, 2013 | November 30, 2014 | November 30, 2013 | |
| 3Q15 | 3Q14 | 3Q15 | 3Q14 | |
| Net income/(loss) | $ (2,377) | $ (188) | $ (5,598) | $771 |
| Income tax benefit | -- | (163) | -- | (163) |
| Interest expense | 311 | 66 | 355 | 303 |
| Other income | (4) | (71) | (42) | (218) |
| Gain on note payable fair market value adjustment | -- | (2,414) | -- | (2,414) |
| Write-off of assets | -- | 798 | -- | 798 |
| Gain on disposal of assets | -- | 3 | (4) | (71) |
| Impact of Hurricane Sandy on New York-Seaport | -- | 121 | -- | 908 |
| Depreciation and amortization | 1,093 | 1,085 | 3,393 | 3,068 |
| Litigation settlement | -- | -- | -- | (297) |
| Stock-based compensation | 30 | 108 | 243 | 164 |
| Adjusted EBITDA(1) | $ (947) | $ (655) | $ (1,653) | $2,849 |
(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 | Nine Months Ended | |||
| November 30, 2014 | November 30, 2013 | November 30, 2014 | November 30, 2013 | |
| 3Q15 | 3Q14 | 3Q15 | 3Q14 | |
| Compensation, excluding stock-based compensation | $1,369 | $1,550 | $4,693 | $4,875 |
| Stock-based compensation | 30 | 108 | 243 | 164 |
| Legal and other professional fees | 583 | 513 | 1,866 | 1,825 |
| Rent and other office expenses | 426 | 471 | 1,293 | 1,196 |
| Other | 512 | 592 | 1,855 | 1,810 |
| General & Administrative expense | $2,920 | $3,234 | $9,950 | $9,870 |
| Table 6 | ||||
| Exhibition Revenue & Operating Statistics | ||||
| (In thousands) | ||||
| Three Months Ended | Nine Months Ended | |||
| November 30, 2014 | November 30, 2013 | November 30, 2014 | November 30, 2013 | |
| 3Q15 | 3Q14 | 3Q15 | 3Q14 | |
| Admissions revenue | $ 4,250 | $ 4,274 | $ 14,072 | $ 15,103 |
| Non-refundable license fees for current exhibitions | 1,241 | 729 | 4,182 | 2,719 |
| Total exhibition revenue | $ 5,491 | $ 5,003 | $ 18,254 | $ 17,822 |
| Key Non-financial Measurements | ||||
| Total number of exhibitions presented | 20 | 23 | 26 | 31 |
| Semi-permanent exhibitions presented | 6 | 7 | 6 | 7 |
| Partnered exhibitions presented | 9 | 10 | 11 | 17 |
| Exhibitions rented to promoters or museums | 5 | 6 | 9 | 7 |
| Total operating days for semi-permanent, partner and rented exhibitions | 1,267 | 1,170 | 4,196 | 3,590 |
| Total attendance for semi-permanent and partner presented exhibitions (in 000's) | 337 | 304 | 1,375 | 1,237 |
| Average attendance per day for semi-permanent and partnered exhibitions presented | 363 | 298 | 445 | 386 |
| Average ticket price for semi-permanent and partnered exhibitions presented | $ 16.97 | $ 16.08 | $ 16.27 | $ 14.72 |
| Average retail per attendee for semi-permanent and partnered exhibitions presented | $ 2.93 | $ 3.25 | $ 2.75 | $ 3.38 |
| Semi permanent exhibitions: | ||||
| Total operating days | 544 | 635 | 1,646 | 1,617 |
| Total attendance (in 000's) | 171 | 200 | 565 | 566 |
| Average attendance per day | 315 | 315 | 343 | 350 |
| Average ticket price | $ 19.65 | $ 19.26 | $ 20.19 | $ 20.80 |
| Average retail per attendee | $ 3.66 | $ 3.23 | $ 3.59 | $ 3.61 |
| The key non-financial measurements for November 30, 2013 do not include exhibitions under management. | ||||