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Premier Exhibitions Inc. (PRXI)
F4Q2013 Results Earnings Call
May 28, 2013 5:30 PM ET
Sam Weiser - President and CEO
Michael Little - Chief Financial Officer and COO
David Gober - Private Investor
Arup Das - Loeb Capital
Good afternoon. And welcome to the Premier Exhibitions’ Fourth Quarter Fiscal Year 2013 Earnings Call. Today’s conference is being recorded.
Previous Statements by PRXI
» Premier Exhibitions' CEO Discusses F3Q13 Results - Earnings Call Transcript
» Premier Exhibitions' CEO Discusses F2Q13 Results - Earnings Call Transcript
» Premier Exhibitions' CEO Discusses F1Q13 Results - Earnings Call Transcript
And now, I’d like to turn the conference over to Mr. Sam Weiser, Chief Executive Officer and President of Premier Exhibitions Incorporated. Please go ahead, sir.
Thank you, Operator and good afternoon everyone. Before we begin, I’d like to remind you that in today’s call we will discuss adjusted EBITDA, a non-GAAP financial measure which our company uses as a key metric for evaluating performance internally and which also provides investors additional information to facilitate the comparison of past and present performance. A detailed explanation of this non-GAAP measure can be found in our earnings release.
I’m going to start things off with an overall discussion of our business and current initiatives and then Michael Little our Chief Financial Officer and Chief Operating Officer will review our financial performance in greater detail.
Turning to business itself, you are probably already aware that we take a great deal of pride and be regarded as the Exhibition leader in educational and entertaining content. To further solidify that role, we are always looking for interesting ideas and stories that would inform, engage and enlighten our audiences, and provide them with experiences that would be memorable to them long after their visit.
Over the past months we’ve looked at many new content opportunities based upon intellectual property that would be licensed by Premier. Specifically we recently purchased the development rights or options to several promising Exhibition ideas which we think will have a great market appeal, it could be extremely successful.
Philosophically, the company has moved away from licensing and developing content with a field of dreams or if we build it they will come approach. Instead we have adopted an optioning strategy that allows us to test Exhibition concepts and assess market demand. So if these ideas are options, we would now move beyond the content development stage without having to put in place the pipeline for showcasing the exhibitions in a variety of museums, exhibition centers and other entertainment venues. In other words, we would limit our capital risk and commitment of resources until we can entertain sufficient market demand exist for each project.
We currently have five new content opportunities in development. The subjects that we’ve auctioned range from the scientific to the historical and would appeal to a broad base of audiences. More importantly, a number of these opportunities are not artifact based which will represent an important expansion of the types of exhibitions we offer to our museum and promote our partners.
Should we be in a position to act upon any or all of them that would enable us to expand our portfolio, reach potential new audiences and of course establish demands to expand our compound revenue to exhibition revenue and merchandize sales. The later is particularly important since realizing ancillary revenue streams from exhibitions is critical to generating stronger returns on any invested capital that we would deploy.
Additionally, as described in our earnings release, we will be opening an exhibit detailing the life and death of the City of Pompeii at the Franklin Institute in Philadelphia in November. We expect to add at least two additional cities and possibly a port city under our port city license we have with the artifact licensor.
With regards to our Exhibition and Bodies and Titanic properties, we recently signed a lease to add an additional stationary exhibition center to our portfolio in Buena Park, California and expect to open body of the exhibition and Titanic’s experience there this summer. We believe semi-permanent installations are significant component for our ongoing growth plan for the company given the significant contribution of our existing semi-permanent exhibition centers have made to our growth margin. We think building a presence in high traffic tourist areas will provide profit opportunities that’s on our way they’re initial and ongoing capital requirements.
Now in terms of the fourth quarter itself, we think we had a reasonably good finish to fiscal 2013 while our revenue growth during the three months period was repeated by the loss of the seaport. We did benefit from the accretive acquisitions of AEI an exhibition merchandizing that we made earlier in the year and which prove to be important contributors to our top line.
Growth profit in absolute dollars fell slightly due to less lower revenue but we experienced better margins year over year as we were able to effectively control cost. I will also note how well we managed G&A which also contributed to our improvement in adjusted EBITDA compare d to the fourth quarter last year as well as our narrowing of our net loss.