ATLANTA, July 9, 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 first quarter of fiscal 2016 ended May 31, 2015.
Comparing the first fiscal quarter 2016 with the prior year's first fiscal quarter:
- Total revenue decreased 3.2% to $7.2 million compared to $7.5 million in the first quarter of fiscal 2015. Exhibition revenue was negatively impacted by a reduction in the number of exhibitions rented to promoters or museums. Merchandise revenue was negatively impacted by fewer exhibitions presented in the first quarter of fiscal 2016 offset partially by an increase in average retail per attendee for semi-permanent exhibitions.
- Gross profit decreased to $1.7 million from $3.1 million in last year's first fiscal quarter while gross margins fell to 24.0% from 41.2% in the prior year period. The decrease in gross profit was inclusive of $1.0 million of additional expense related to the New York City location with limited corresponding revenue to offset the expenses.
- Net loss after non-controlling interest was $2.3 million, or $0.46 per diluted share, compared to net loss after non-controlling interest of $1.2 million, or $0.25 per diluted share in last year's first fiscal quarter. Adjusted EBITDA, a non-GAAP measure (1), was $0.6 million, a decrease of $0.4 million from in the prior year.
- Total exhibition days decreased 24.4% to 1,078 as compared to 1,426 in the first fiscal quarter of 2015.
- Average attendance per exhibition day increased 4.8% to 484 compared to 462 in last year's first fiscal quarter. Average ticket prices for semi-permanent and partner presented exhibitions increased 18.8% to $18.04 from $15.18 in the first quarter of fiscal 2015.
- Average attendance per exhibition day for semi-permanent exhibitions was 344 compared to 373 in the prior year period. Average ticket prices for semi-permanent exhibitions increased 10.2% to $21.42 from $19.44 in the first quarter of fiscal 2015.
- General and administrative expenses decreased 13.0% to $2.9 million, compared with $3.3 million in last year's first fiscal quarter as the Company incurred lower compensation expense during the first quarter of fiscal 2016 which was partially offset by an increase in professional fees related to the merger transaction.
- On May 31, 2015, the Company had total cash and cash equivalents of $1.6 million.
Michael Little, Premier's Interim President and Chief Executive Officer, stated, "Our disappointing performance during the quarter is due to underutilization of our Bodies and Titanic exhibitions coupled with rent expenses for 'Saturday Night Live: The Exhibition' that were only modestly offset by revenues since the exhibition opened in late May. On the top-line, fewer overall exhibitions presented resulted in a decrease in total exhibition days as well as lower merchandise sales. This in turn resulted in lower gross profit and a higher net loss compared to the year-ago period."
Little continued, "In the face of these challenges, our focus remains reducing all non-essential expenses, including G&A, and managing liquidity. Although we incurred professional fees related to the pending merger, we reduced our overall compensation expenses to better align our base business cost structure with revenues. We are also doing everything possible to minimize our cash-burn given our liquidity constraints."
Little added, "We fully appreciate the importance of SNL's success to the future of our exhibition business and are cautiously optimistic by the public's reception to the property thus far. Our celebration of the iconic sketch comedy and variety show is situated in midtown Manhattan and has garnered positive reviews in leading news and entertainment publications. Our objective is to position the venue and exhibit as a 'must see' for metropolitan area residents and tourists alike. In promoting the venue and exhibit, we are partnering with the local media and tourism industry to promote SNL as a quintessential New York landmark, thus building future ticket sales."
Little concluded, "At this time, we have no further update on our merger agreement with Dinoking Tech Inc. We will be submitting our proxy for review by the SEC shortly and expect to hold the shareholder meeting to vote on the merger early in the third quarter of fiscal 2016."
(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. | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands, except share data) | ||
| May 31, | February 28, | |
| 2015 | 2015 | |
| (Unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,589 | $ 4,798 |
| Accounts receivable, net of allowance for doubtful accounts of $220 | 1,669 | 1,417 |
| Merchandise inventory, net of reserve of $25 | 1,101 | 1,127 |
| Income taxes receivable | 49 | 49 |
| Prepaid expenses | 3,209 | 2,684 |
| Other current assets | 505 | 459 |
| Total current assets | 8,122 | 10,534 |
| Artifacts owned, at cost | 2,877 | 2,881 |
| Salvor's lien | 1 | 1 |
| Property and equipment, net of accumulated depreciation of $23,539 and $22,766, respectively | 20,930 | 11,503 |
| Exhibition licenses, net of accumulated amortization of $5,225 and $6,069, respectively | 1,561 | 1,629 |
| Film, gaming and other application assets, net of accumulated amortization of $1,882 and $1,726, respectively | 1,451 | 1,608 |
| Deferred financing costs, net of accumulated amortization of $383 and $318, respectively | -- | 65 |
| Future rights fees, net of accumulated amortization of $3,592 and $3,551, respectively | 788 | 829 |
| Construction deposit | -- | 134 |
| Lease incentive | 1,290 | 5,899 |
| Restricted cash | 93 | 426 |
| Restricted securities | 801 | 801 |
| Deferred income taxes | 60 | 60 |
| Long-term exhibition costs | 195 | 261 |
| Subrogation rights | 250 | 250 |
| Total Assets | $ 38,419 | $ 36,881 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 6,151 | $ 4,782 |
| Deferred rent | 159 | 668 |
| Deferred revenue | 2,380 | 2,901 |
| Deferred income taxes | 60 | 60 |
| Current portion of capital lease obligations | 72 | 31 |
| Current portion of royalty payable, net of discount of $29 and $48, respectively | 268 | 413 |
| Current portion of notes payable, net of discount of $7 and $10, respectively | 11,693 | 8,190 |
| Total current liabilities | 20,783 | 17,045 |
| Long-Term liabilities: | ||
| Lease abandonment | 891 | 997 |
| Deferred rent | 9,137 | 8,867 |
| Long-term portion of capital lease obligations | 267 | 32 |
| Long-term portion of royalty payable, net of discount of $48 | 207 | 301 |
| Total long-term liabilities | 10,502 | 10,197 |
| Commitment and Contingencies | ||
| Shareholders' equity: | ||
| Common stock; $.0001 par value; authorized 65,000,000 shares; issued 4,917,423 and 4,916,644 shares, respectively; outstanding 4,917,222 and 4,916,443 shares, respectively | 1 | 1 |
| Additional paid-in capital | 54,144 | 54,104 |
| Accumulated deficit | (48,382) | (46,105) |
| Accumulated other comprehensive loss | (13) | (13) |
| Less treasury stock, at cost; 201 shares | (1) | (1) |
| Equity Attributable to Shareholders of Premier Exhibitions, Inc. | 5,749 | 7,986 |
| Equity Attributable to Non-controlling interest | 1,385 | 1,653 |
| Total liabilities and shareholders' equity | $ 38,419 | $ 36,881 |
| Table 2 | ||
| Premier Exhibitions, Inc. | ||
| Condensed Consolidated Statements of Operations | ||
| (in thousands, except share and per share data) | ||
| (unaudited) | ||
| Three Months Ended May 31, | ||
| 2015 | 2014 | |
| Revenue: | ||
| Exhibition revenue | $ 5,913 | $ 6,008 |
| Merchandise revenue | 1,272 | 1,345 |
| Management fee | 34 | 138 |
| Licensing fee | 30 | -- |
| Total revenue | 7,249 | 7,491 |
| Cost of revenue: | ||
| Exhibition costs | 4,971 | 3,821 |
| Cost of merchandise sold | 538 | 586 |
| Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 5,509 | 4,407 |
| Gross profit | 1,740 | 3,084 |
| Operating expenses: | ||
| General and administrative | 2,866 | 3,295 |
| Depreciation and amortization | 1,038 | 1,151 |
| Gain on sale of assets | -- | (4) |
| Total operating expenses | 3,904 | 4,442 |
| Loss from operations | (2,164) | (1,358) |
| Other income and (expense) | ||
| Interest expense | (375) | (23) |
| Other income/(expense) | (6) | 18 |
| Total other expense | (381) | (5) |
| Loss before income taxes | (2,545) | (1,363) |
| Income tax expense | -- | -- |
| Net loss | (2,545) | (1,363) |
| Less: Net loss attributable to non-controlling interest | 268 | 151 |
| Net loss attributable to the shareholders of Premier Exhibitions, Inc. | $ (2,277) | $ (1,212) |
| Net loss per share: | ||
| Basic loss per common share | $ (0.46) | $ (0.25) |
| Diluted loss per common share | $ (0.46) | $ (0.25) |
| Shares used in basic per share calculations | 4,917,087 | 4,906,440 |
| Shares used in diluted per share calculations | 4,917,087 | 4,906,440 |
| Comprehensive loss | $ (2,277) | $ (1,212) |
| Table 3 | ||
| Premier Exhibitions, Inc. | ||
| Condensed Consolidated Statements of Cash Flow | ||
| (in thousands) | ||
| (unaudited) | ||
| Three Months Ended May 31, | ||
| 2015 | 2014 | |
| Cash flows from operating activities: | ||
| Net loss | $ (2,545) | $ (1,363) |
| Adjustments to reconcile net loss to net cash provided by/(used in) operating activities: | ||
| Depreciation and amortization | 1,038 | 1,151 |
| Lease abandonment | (106) | (117) |
| Stock-based compensation | 40 | 73 |
| Allowance for doubtful accounts | -- | 10 |
| Amortization of deferred financing costs | 65 | -- |
| Write-off of assets | 16 | -- |
| Amortization of debt discount | 22 | 21 |
| Gain on sale of assets | -- | (4) |
| Changes in operating assets and liabilities: | ||
| Increase in accounts receivable | (346) | (59) |
| Decrease in merchandise inventory | 26 | 61 |
| Increase in prepaid expenses | (627) | (391) |
| Increase in other assets | (46) | (20) |
| Decrease in income taxes receivable | -- | 73 |
| Increase in other receivables | -- | (10) |
| (Increase)/decrease in restricted cash | 333 | (8) |
| Decrease in long-term development costs | 152 | 83 |
| Increase in accounts payable and accrued liabilities | 1,369 | 1,052 |
| Increase/(decrease) in deferred rent | (239) | 5 |
| Increase/(decrease) in deferred revenue | (521) | 562 |
| Total adjustments | 1,176 | 2,482 |
| Net cash provided by/(used in) operating activities | (1,369) | 1,119 |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (5,166) | (370) |
| Redemption of certificates of deposit | -- | 201 |
| Purchase of restricted certificate of deposit | -- | (800) |
| Proceeds from disposal of assets | -- | 4 |
| Decrease in artifacts | 4 | 6 |
| Net cash used in investing activities | (5,162) | (959) |
| Cash flows from financing activities: | ||
| Deferred financing costs | -- | (50) |
| Payments on capital lease obligations | (14) | (9) |
| Proceeds from notes payable | 3,500 | -- |
| Payments on royalty payable | (164) | (220) |
| Net cash provided by/(used in) financing activities | 3,322 | (279) |
| Net decrease in cash and cash equivalents | (3,209) | (119) |
| Cash and cash equivalents at beginning of period | 4,798 | 3,434 |
| Cash and cash equivalents at end of period | $ 1,589 | $ 3,315 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid during the period for interest | $ 193 | $ 9 |
| Cash received during the period for taxes | $ -- | $ (73) |
| Supplemental disclosure of non-cash investing and financing activities: | ||
| Net assets recognized from execution of royalty agreement | $ -- | $ 31 |
| Non-cash refinancing of notes payable | $ 8,000 | $ -- |
| Purchase of property and equipment under capital leases | $ 290 | $ -- |
| Non-cash payment on royalty payable | $ 94 | $ -- |
| Non-cash purchase of property and equipment using lease incentive and construction deposit | $ 4,743 | $ -- |
| Table 4 | ||
| Adjusted EBITDA | ||
| (In thousands) | ||
| Three Months Ended | ||
| May 31, 2015 | May 31, 2014 | |
| 1Q16 | 1Q15 | |
| Net loss | $ (2,545) | $ (1,363) |
| Other expense | 6 | (18) |
| Interest expense | 375 | 23 |
| Depreciation and amortization | 1,038 | 1,151 |
| Transaction related expenses | 517 | -- |
| Stock-based compensation | 41 | 73 |
| Adjusted EBITDA(1) | $ (568) | $ (134) |
(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 | |||
| May 31, 2015 | May 31, 2014 | ||
| 1Q16 | 1Q15 | ||
| Compensation, excluding stock-based compensation | $ 990 | $ 1,575 | |
| Stock-based compensation | 41 | 73 | |
| Legal and other professional fees | 853 | 502 | |
| Rent and other office expenses | 443 | 427 | |
| Other | 539 | 718 | |
| General & Administrative expense | $ 2,866 | $ 3,295 | |
| Table 6 | ||
| Exhibition Revenues & Operating Statistics | ||
| (In thousands) | ||
| Three Months Ended | ||
| May 31, 2015 | May 31, 2014 | |
| 1Q16 | 1Q15 | |
| Admissions revenue | $ 4,840 | $ 4,665 |
| Non-refundable license fees for current exhibitions | 1,073 | 1,343 |
| Total exhibition revenues | $ 5,913 | $ 6,008 |
| Key Non-financial Measurements | ||
| Total number of exhibitions presented | 17 | 20 |
| Semi-permanent exhibitions presented | 7 | 6 |
| Partnered exhibitions presented | 8 | 8 |
| Exhibitions rented to promoters or museums | 2 | 6 |
| Total operating days for semi-permanent, partner and rented exhibitions | 1,078 | 1,426 |
| Total attendance for semi-permanent and partner presented exhibitions (in 000's) | 445 | 496 |
| Average attendance per day for semi-permanent and partnered exhibitions presented | 484 | 462 |
| Average ticket price for semi-permanent and partnered exhibitions presented | $ 18.04 | $ 15.18 |
| Average retail per attendee for semi-permanent and partnered exhibitions presented | $ 2.63 | $ 2.67 |
| Semi permanent exhibitions: | ||
| Total operating days | 554 | 552 |
| Total attendance (in 000's) | 190 | 206 |
| Average attendance per day | 344 | 373 |
| Average ticket price | $ 21.42 | $ 19.44 |
| Average retail per attendee | $ 3.58 | $ 3.28 |