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Premier Exhibitions Inc. (PRXI)
F3Q 2014 Results Earnings Call
January 13, 2014 5:30 PM ET
Sam Weiser - President and CEO
Michael Little - Chief Financial Officer
Brian Murphy - Merriman Capital
Andrew Shapiro - Lawndale Capital Management
Don Whitaker, Jr. - Don C. Whitaker, Incorporated
Spencer Green - Lawndale Capital Management
Jason Stankowski - Clayton
Good afternoon. And welcome to the Premier Exhibitions’ Third Quarter Fiscal Year 2014 Earnings Call. Today’s conference is being recorded.
Previous Statements by PRXI
» Premier Exhibitions' CEO Discusses F2Q 2014 Results - Earnings Call Transcript
» Premier Exhibitions' CEO Discusses F1Q 2014 Results - Earnings Call Transcript
» Premier Exhibitions' CEO Discusses F4Q2013 Results - Earnings Call Transcript
Undue reliance should not be placed upon them as actual results may differ materially. Please refer to the risk factors identified in the company’s filings with the Securities and Exchange Commission for a more detailed discussion of the risks that may have a direct bearing on the company’s operating results, performance and financial condition.
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 would like to remind you that in today’s call, we will discuss adjusted EBITDA, which is a non-GAAP financial measure that our company uses as a key metric for evaluating performance internally.
Adjusted EBITDA also provides investors with additional information to facilitate the comparison of past and present performance, and in explanation and reconciliation table to the nearest GAAP measure can be found in our earnings release.
Before I begin, let me say that I appreciate all of the feedback we have received from shareholders since our last earnings call. I’m well aware of the expectations of our shareholders with regard to the Titanic monetization in our business operations.
Speaking for myself and the entire senior management team of Premier, we recognize that our obligation to shareholders is use to deliver results at the operating level. Frankly, the results for the quarter are both disappointing and unacceptable.
In order to reverse the trends in our operating business, we need three things to happen. First, we need to reverse the year-over-year declines in attendance at our permanent locations. Second, we need to reenter in the New York market. Third, we need to deliver new content to the market. I will briefly discuss each of these as we’ve covered most of these in previous earnings calls.
The first point is reversing the attendance declines at our permanent locations. We have taken some steps to address this decline and we will continue to take whatever remedial actions are necessary to reverse these trends.
Specifically, over the past three months we accomplished the following. One, we terminated the relationship with our previous marketing firm.
Two, we reassigned responsibility for marketing to Marcy Davis. Marcy has been responsible for venue operations and merchandise operations, and had made sets to add marketing toward duties as most of the responsibilities center around our permanent locations.
Three, we hired a new Vice President of Marketing to oversee our marketing operations, revamped the marketing for our permanent locations and build stronger business to business and business to consumer relationships in each of the markets where our permanent locations operate.
Four, we engaged Crossmedia as our new marketing agency. We selected Cross because of their strong brand building capabilities, their significant digital engagement skills and their history of success in building marketing programs design to sell tickets.
In the past, we have discussed at length our digital initiatives, these digital efforts are designed to both leverage our extensive intellectual property libraries and significantly improve our engagement with consumers through the lab, on their mobile devices and through social networking.
Over the last quarter we have made strides to enhance our digital platform, but we are far from where we both want and need to be within the digital world. Our digital initiatives address two big elements necessary to reverse attendance declines.
Initially our digital framework which will include mobile applications, dynamic web content and better access to our extensive IP libraries will support the marketing efforts of Cross and our team to engage our consumers.
Additionally, our digital initiatives will provide the content to add more interactive and engaging elements to our Titanic & Bodies exhibitions, where we -- which will reflect -- refresh the product and give our exhibition a new feel that can be marketed in each of the permanent markets.
Our plan for this digital initiative has been developed by management and we will continue to update our shareholders as these programs begin being rolled out this quarter and in fiscal ‘15.
The second issue revolves around reentering the New York market. It has clearly taken us too long to respond in the closing of our Seaport location and our financial results reflect this.
As we’ve discussed on previous calls, we identify the location in Times Square that for multiple reasons did not result in an execute lease. The pursued of this Times Square location cost us significant time and resources. However, we have since identified another location and are in the final stages of lease negotiations.
This location is not in Times Square -- in the Times Square area, but it’s another high profile area with significant tourist traffic. While I have not a liberty to provide any information at this time on the specific location, the square footage or our intentions with respect to the experiences we plan to deliver in this new location. Opening at this location in New York for summer season is the company's number one priority.