Revenue Increased 8% in the First Quarter Compared to the Fourth Quarter of Fiscal 2009
ATLANTA, July 6, 2009 (GLOBE NEWSWIRE) -- Premier Exhibitions, Inc. (Nasdaq:PRXI), a major developer of touring museum quality exhibits today announced financial results for the fiscal year first quarter ended May 31, 2009:
* Total revenue increased 8 percent from the fourth quarter of fiscal
2009 to $10.9 million in the first quarter of fiscal 2010. By
comparison to the prior year period, total revenue decreased
28 percent from $15.2 million in the first quarter of fiscal 2009.
* Gross profit increased $3.0 million from the fourth quarter of
fiscal 2009 to $5.8 million in the first quarter of fiscal 2010.
By comparison to the prior year period, gross profit decreased
27 percent from $7.9 million in the first quarter of fiscal 2009.
* GAAP losses were ($5.8) million or ($0.20) per share for the first
quarter of fiscal 2010, a $2.4 million improvement over GAAP losses
of ($8.2) million or ($0.28) per share for the fourth quarter of
fiscal 2009. The first quarter of fiscal 2010 GAAP loss compares
with a GAAP loss of ($0.9) million or ($0.03) per share for the
first quarter of fiscal 2009.
* These GAAP figures include a $2.1 million loss on sale of a
business in the fiscal fourth quarter of 2009, impairment charges
of $1.7 million and $4.5 million in the fiscal fourth quarter of
2009 and first quarter of 2010, in addition to stock based
compensation expense of $1.6 million, $1.8 million and $0.3 million
in the first and fourth quarters of fiscal 2009 and the first
quarter of fiscal 2010, respectively.
* Adjusted EBITDA (a non-GAAP measure) for the first quarter of
fiscal 2010 was ($1.3) million compared to ($5.1) million in the
fourth quarter of fiscal 2009 and $1.5 million in the first quarter
of fiscal 2009. (1) Reconciled GAAP and non-GAAP financial measures
are provided in the tables below.
* During the quarter the Company raised $6.0 million in capital from
the issuance of convertible notes and on June 15, 2009 raised an
additional $6.0 million in capital under the same terms.
* On May 31, 2009 total cash and marketable securities were
$9.1 million and currently the Company has approximately
$12.9 million in the bank.
* Total attendance for the first quarter of fiscal 2010 decreased two
percent to 1,188,219 from 1,207,780 in the fourth quarter of fiscal
2009. Total attendance for the first quarter of fiscal 2010
decreased twenty two percent compared to 1,520,046 in the first
quarter of fiscal 2009.
* Total days of operation for the first quarter of fiscal 2010
increased three percent to 1,624 from 1,583 in the fourth quarter
of fiscal 2009, increased two percent compared to 1,598 in the
first quarter of fiscal 2009.
Chris Davino, Premier Exhibition's Interim Chief Executive Officer stated, "The first quarter was the first full quarter under new management. I'm happy to report that the turnaround effort we've been engaged in for the past five months is beginning to bear fruit. During the first quarter, we more than doubled gross profit and decreased general and administrative costs 21 percent sequentially. We've developed a comprehensive process for sourcing, evaluating, and booking profitable venues and are in the process of booking new shows using this methodology. We're renegotiating some of our fixed-payment contracts to reduce our fixed costs. We've hired a new marketing agency with extensive experience in the exhibition industry at a reduced cost structure that focuses more on incentive rewards than guaranteed fees which we expect will achieve significant savings. We've reduced our corporate workforce by approximately 18 percent and are in the process of evaluating numerous other cost-saving initiatives."
Mark Sellers, Chairman of Premier Exhibitions said, "Assuming conversion of the $12 million in recently-issued notes into equity, we would have $12.9 million in cash and marketable securities, representing approximately 40 percent of our market cap after conversion, and no debt. Although the Company is not completely out of the woods, we have a strong balance sheet and are approaching Adjusted EBITDA break even. We believe that at some point, the market will give the Company credit for the intrinsic value of the assets we control. We're confident that the market will begin to recognize this value once we stop the cash bleed and return to profitability."
1Q10 Conference Call Information
Company management will host its first quarter fiscal 2010 conference call on July, 07, 2009 at 9:00 a.m. (EDT). Interested parties can access the call by dialing 1 (877) 874-1570 in the U.S. and 1 (719) 325-4838 internationally. Callers should reference confirmation code 3143737. A transcript of the conference call will be made available on the Company's website: www.prxi.com.
Annual Meeting
The Company's board of directors has set Thursday, August 6, 2009 at 10:00 a.m. (EDT) as the date for the Company's 2009 annual meeting of shareholders, and Wednesday, June 17, 2009 as the record date for the annual meeting.
(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 goodwill, and non-cash compensation expense. 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) develops and tours museum quality exhibitions.
